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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Sep. 30, 2019	Dec. 02, 2019	Mar. 31, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	POWELL INDUSTRIES INC,
Entity Central Index Key	0000080420
Document Type	10-K
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Public Float			$ 234
Entity Common Stock, Shares Outstanding		11,589,313

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Current Assets:
Cash and cash equivalents	$ 118,639	$ 36,584
Short-term investments	6,042	13,170
Restricted cash	0	19,154
Accounts receivable, less allowance for doubtful accounts of $301 and $157	112,093	92,548
Contract assets	55,374	82,545
Inventories	29,202	21,352
Income taxes receivable	233	6,904
Prepaid expenses	4,335	3,775
Other current assets	2,650	630
Total Current Assets	328,568	276,662
Property, plant and equipment, net	120,812	128,764
Restricted cash	0	5,987
Goodwill and intangible assets, net	1,337	1,514
Other assets	5,117	5,937
Deferred income taxes	11,577	11,087
Total Assets	467,411	429,951
Current Liabilities:
Current maturities of long-term debt	400	400
Accounts payable	51,180	40,714
Contract liabilities	71,464	43,174
Accrued compensation and benefits	20,182	22,274
Accrued product warranty	2,946	2,604
Income taxes payable	913	897
Other current liabilities	10,811	7,786
Total Current Liabilities	157,896	117,849
Long-term debt, net of current maturities	800	1,200
Deferred compensation (Note J)	6,447	5,902
Other long-term liabilities	3,115	3,356
Total Liabilities	168,258	128,307
Commitments and Contingencies (Note H)
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; 12,372,766 and 12,280,556 shares issued, respectively	124	123
Additional paid-in capital	59,153	56,769
Retained earnings	289,422	291,530
Treasury stock, 806,018 shares at cost	(24,999)	(24,999)
Accumulated other comprehensive loss	(24,547)	(21,779)
Total Stockholders' Equity	299,153	301,644
Total Liabilities and Stockholders' Equity	$ 467,411	$ 429,951

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 301	$ 157
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	12,372,766	12,280,556
Treasury stock (in shares)	806,018	806,018

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenues	$ 517,180	$ 448,716	$ 395,911
Cost of goods sold	430,204	383,361	345,142
Gross profit	86,976	65,355	50,769
Selling, general and administrative expenses	69,950	66,768	61,524
Research and development expenses	6,327	6,717	6,906
Amortization of intangible assets	177	205	355
Insurance proceeds	(950)	0	0
Restructuring, separation and other expenses, net	11	787	1,322
Operating income (loss)	11,461	(9,122)	(19,338)
Other income (Note F)	0	(747)	(2,029)
Interest expense	230	207	168
Interest income	(1,103)	(883)	(558)
Income (loss) before income taxes	12,334	(7,699)	(16,919)
Income tax provision (benefit)	2,444	(547)	(7,433)
Net income (loss)	$ 9,890	$ (7,152)	$ (9,486)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.85	$ (0.62)	$ (0.83)
Diluted (in dollars per share)	$ 0.85	$ (0.62)	$ (0.83)
Weighted average shares:
Basic (in shares)	11,571	11,507	11,453
Diluted (in shares)	11,634	11,507	11,453
Dividends per share (in dollars per share)	$ 1.04	$ 1.04	$ 1.04

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 9,890	$ (7,152)	$ (9,486)
Foreign currency translation adjustments	(2,743)	(3,100)	4,822
Postretirement benefit adjustment, net of tax	(25)	75	192
Comprehensive income (loss)	$ 7,122	$ (10,177)	$ (4,472)

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income/(Loss)
Beginning balance (in shares) at Sep. 30, 2016		12,199			(806)
Beginning balance at Sep. 30, 2016	$ 335,317	$ 122	$ 52,003	$ 331,959	$ (24,999)	$ (23,768)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(9,486)			(9,486)
Foreign currency translation adjustments	4,822					4,822
Stock-based compensation (in shares)		18
Stock-based compensation	2,724		2,724
Shares withheld in lieu of employee tax withholding	(398)		(398)
Issuance of restricted stock (in shares)		17
Issuance of restricted stock	0
Dividends paid	(11,875)			(11,875)
Postretirement benefit adjustment, net of tax	192					192
Ending balance (in shares) at Sep. 30, 2017		12,234			(806)
Ending balance at Sep. 30, 2017	321,296	$ 122	54,329	310,598	$ (24,999)	(18,754)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(7,152)			(7,152)
Foreign currency translation adjustments	(3,100)					(3,100)
Stock-based compensation (in shares)		32
Stock-based compensation	3,152		3,152
Shares withheld in lieu of employee tax withholding	(712)		(712)
Issuance of restricted stock (in shares)		15
Issuance of restricted stock	1	$ 1
Dividends paid	(11,916)			(11,916)
Postretirement benefit adjustment, net of tax	75					75
Ending balance (in shares) at Sep. 30, 2018		12,281			(806)
Ending balance at Sep. 30, 2018	301,644	$ 123	56,769	291,530	$ (24,999)	(21,779)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	9,890			9,890
Foreign currency translation adjustments	(2,743)					(2,743)
Stock-based compensation (in shares)		78
Stock-based compensation	3,839	$ 1	3,838
Shares withheld in lieu of employee tax withholding	(1,454)		(1,454)
Issuance of restricted stock (in shares)		14
Issuance of restricted stock	0
Dividends paid	(11,998)			(11,998)
Postretirement benefit adjustment, net of tax	(25)					(25)
Ending balance (in shares) at Sep. 30, 2019		12,373			(806)
Ending balance at Sep. 30, 2019	$ 299,153	$ 124	$ 59,153	$ 289,422	$ (24,999)	$ (24,547)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (PARENTHETICAL) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Statement of Stockholders' Equity [Abstract]
Postretirement benefit adjustment, tax	$ 7	$ 20	$ 103

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Operating Activities:
Net income (loss)	$ 9,890	$ (7,152)	$ (9,486)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	12,032	12,903	12,755
Stock-based compensation	3,839	3,152	2,724
Bad debt expense (recovery)	233	111	(160)
Deferred income taxes	820	(2,170)	100
Gain on amended supply agreement	0	(507)	(2,029)
Gain on cash surrender value of life insurance	0	(240)	0
Cash received from amended supply agreement	0	0	2,333
Changes in operating assets and liabilities:
Accounts receivable, net	(20,193)	(37,176)	47,983
Contract assets and liabilities, net	55,333	(14,117)	(3,270)
Inventories	(7,989)	(3,023)	8,213
Income taxes	6,681	996	(6,758)
Prepaid expenses and other current assets	(2,626)	(237)	453
Accounts payable	9,550	8,152	(2,417)
Accrued liabilities	1,419	8,859	(11,676)
Other, net	(230)	1,906	(1,950)
Net cash provided by (used in) operating activities	68,759	(28,543)	36,815
Investing Activities:
Purchases of short-term investments	(5,869)	(22,261)	(60,018)
Maturities of short-term investments	13,088	35,248	33,189
Purchases of property, plant and equipment, net	(4,255)	(4,415)	(3,624)
Proceeds from life insurance policy	0	1,861	0
Net cash provided by (used in) investing activities	2,964	10,433	(30,453)
Financing Activities:
Payments on industrial development revenue bonds	(400)	(400)	(400)
Shares withheld in lieu of employee tax withholding	(1,454)	(712)	(398)
Dividends paid	(11,998)	(11,916)	(11,875)
Net cash used in financing activities	(13,852)	(13,028)	(12,673)
Net increase (decrease) in cash, cash equivalents and restricted cash	57,871	(31,138)	(6,311)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(957)	(347)	1,801
Cash, cash equivalents and restricted cash at beginning of period	61,725	93,210	97,720
Cash, cash equivalents and restricted cash at end of period	$ 118,639	$ 61,725	$ 93,210

Business and Organization	12 Months Ended
Business and Organization	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	Business and Organization 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 company 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 which (1) distribute, control and monitor the flow of electrical energy and (2) provide protection to motors, transformers and other electrically powered equipment. Our principal products include integrated power control room substations (PCRs®), custom-engineered modules, electrical houses (E-Houses), traditional and arc-resistant distribution switchgear and control gear, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers and bus duct systems. These products are designed for application voltages ranging from 480 volts to 38,000 volts and are used in oil and gas refining, onshore and offshore oil and gas production, petrochemical, liquid natural gas terminals, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper and other heavy industrial markets. Our product scope includes designs tested to meet both U.S. and international standards, under both the American National Standards Institute (ANSI) and International Electrotechnical Commission. We assist customers by providing value-added services such as spare parts, field service inspection, installation, commissioning, modification and repair, retrofit and retrofill components for existing systems and replacement circuit breakers for switchgear that is obsolete or that is no longer produced by the original manufacturer. We seek to establish long-term relationships with the end users of our systems as well as the design and construction engineering firms contracted by those end users. We believe that our culture of safety and focus on customer satisfaction along with our financial strength allow us to continue to capitalize on opportunities in the industries we serve. References to Fiscal 2019, Fiscal 2018 and Fiscal 2017 used throughout these Notes to Consolidated Financial Statements relate to our fiscal years ended September 30, 2019, 2018 and 2017, respectively.

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of Powell and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (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 recognition and estimated cost recognition on our customer contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable) 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 because the ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during periods in which temporary differences become deductible. Estimates routinely change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our prior estimates.

Cash and Investments

Cash and cash equivalents

Cash and 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 Consolidated Balance Sheets.

Short-term Investments - Short-term investments include time deposits with original maturities of three months or more.

Restricted Cash - Restricted cash included cash and cash equivalents that were unavailable for withdrawal or usage for general obligations and represented a pledged cash collateral balance that was required under our prior credit agreement and was held in an interest-bearing savings account. See Note G for further discussion on restricted cash.

Supplemental Disclosures of Cash Flow Information (in thousands):



	Year Ended September 30,
	2019			2018			2017
Cash paid (received) during the period for:
Interest paid, net of interest income	$	(873	)	$	(676	)	(384	)
Income taxes paid, net of refunds	(5,219		)	354			(764	)
Non-cash capital expenditures	1,248			129			634

Fair Value of Financial Instruments

Financial instruments include cash, cash equivalents, short-term investments, restricted cash, receivables, deferred compensation, payables and debt obligations. Except as described below, due to the short-term nature of account receivables and account payables, the book value is representative of their fair value. The carrying value of debt approximates fair value as interest rates are indexed to the Federal Funds Rate or the bank’s prime rate.

Accounts Receivable

Accounts receivable are stated net of allowances for doubtful accounts. We maintain and continually assess the adequacy of the allowance for doubtful accounts representing our estimate for losses resulting from the inability of our customers to pay amounts due to us. This estimated allowance is based on historical experience of uncollected accounts, the level of past due accounts, the overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and expectations of future conditions that could impact the collectability of accounts receivable. Future changes in our customers’ operating performance and cash flows, or in general economic conditions, could have an impact on their ability to fully pay these amounts, which could have a material impact on our operating results. In most cases, receivables are not collateralized. However, we utilize letters of credit to secure payment on projects when possible. As of September 30, 2019 and 2018, accounts receivable included retention amounts of $5.6 million and $4.2 million, respectively. Retention amounts are in accordance with applicable provisions of contracts and become due upon completion of contractual requirements. Of the retained amount at September 30, 2019, $4.9 million is expected to be collected in the next twelve months and is recorded in accounts receivable. The remaining $0.7 million is recorded in other assets and is expected to be collected in Fiscal 2021.

Contract Balances

Contract assets, previously referred to as costs and estimated earnings in excess of billings on uncompleted contracts are recorded when revenues are recognized in excess of amounts billed for fixed-price contracts as determined by the billing milestone schedule. Contract assets are transferred to accounts receivable when billing milestones have been met, or we have an unconditional right to payment.

Contract liabilities, previously referred to as billings in excess of costs and estimated earnings on uncompleted contracts, typically represent advance payments from contractual billing milestones and billings in excess of revenue recognized. It is unusual to have advanced milestone payments with a term greater than one year, which could represent a financing component on the contract.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period and are generally classified as current.

Inventories

Inventories are stated at the lower of cost or net realizable value using weighted-average methods and include the cost of materials, labor and manufacturing overhead. We use estimates in determining the level of reserves required to state inventory at the lower of cost or net realizable value. Our estimates are based on market activity levels, production requirements, the physical condition of products and technological innovation. Changes in any of these factors may result in adjustments to the carrying value of inventory.

Property, Plant and Equipment

Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and improvements, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the Consolidated Statements of Operations.

We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value may not be realizable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if recording an impairment of such asset is necessary. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. This requires us to make long-term forecasts of the future revenues and the costs related to the assets subject to review. Forecasts require assumptions about demand for our products and future market conditions. Estimating future cash flows requires significant judgment, and our projections may vary from cash flows eventually realized. Future events and unanticipated changes to assumptions could require a provision for impairment in a future period. The effect of any impairment would be reflected in income (loss) from operations in the Consolidated Statements of Operations. In addition, we estimate the useful lives of our property, plant and equipment and periodically review these estimates to determine whether these lives are appropriate.

Income Taxes

We account for income taxes under the asset and liability method, based on the income tax laws and rates in the countries in which operations are conducted, and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Developing our provision for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. In assessing the extent to which net deferred tax assets may be realized, we consider whether it is more likely than not that some portion or all of the net deferred tax assets may not be realized. The ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Estimates may change as new events occur, estimates of future taxable income during the carryforward period are reduced or increased, additional information becomes available or operating environments change, which may result in a full or partial reversal of the valuation allowance. We will continue to assess the adequacy of the valuation allowance on a quarterly basis. Our judgments and tax strategies are subject to audit by various taxing authorities.

The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accounting literature also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial statements.

Revenue Recognition

Our revenues are primarily generated from the manufacturing of custom-engineered products and systems under long-term fixed-price contracts that may last from one month to several years, depending on the contract. Revenue from these contracts is generally recognized over time utilizing the cost-to-cost method to measure the extent of progress toward the completion of the performance obligation and the recognition of revenue over time. We believe that this method is the most accurate representation of our performance because it directly measures the value of the services transferred to the customer over time as we incur costs on our contracts. Contract costs include all direct materials, labor and indirect costs related to contract performance, which may include indirect labor, supplies, tools, repairs and depreciation costs.

We also have contracts to provide value-added services such as field service inspection, installation, commissioning, modification and repair, as well as retrofit and retrofill components for existing systems. As a practical expedient, if the service contract terms give us the right to invoice the customer for an amount that corresponds directly with the value of our performance completed to date (i.e., a service contract in which we bill a fixed amount for each hour of service provided), then we recognize revenue over time in each reporting period corresponding to the amount with which we have the right to invoice. Our performance obligations are satisfied as the work progresses.

We also have sales orders for spare parts and replacement circuit breakers for switchgear that are obsolete or that are no longer produced by the original manufacturer. Revenues from these sales orders are recognized at a point in time when we fulfill our performance obligation to the customer, which is typically upon shipment.

Additionally, some contracts may contain a cancellation clause that could limit the amount of revenue we are able to recognize over time. In these instances, revenue and costs associated with these contracts are deferred and recognized at a point in time when the performance obligation is fulfilled.

Selling and administrative costs incurred in relation to obtaining a contract are typically expensed as incurred. We periodically utilize a third-party sales agent to obtain a contract and will pay a commission to that agent. We record the full commission liability to the third-party sales agent at the order date, with a corresponding deferred asset. As the project progresses, we record commission expense based on percentage of completion rates that correlate to the project and reduce the deferred asset. Once we have been paid by the customer, we pay the commission, and the deferred liability is reduced.

Warranty Costs

We provide for estimated warranty costs with the recognition of revenue based upon historical rates applicable to individual product lines. In addition, specific provisions are made when the costs of such warranties are expected to exceed accruals. Our standard terms and conditions of sale include a warranty for parts and service for the earlier of 18 months from the date of shipment or 12 months from the date of energization, whichever occurs first. Occasionally projects require warranty terms that are longer than our standard terms due to the nature of the project. Extended warranty terms may be negotiated and included in our contracts. We use past experience and historical claims to determine the estimated liability. Actual results could differ from our estimate.

Research and Development Expense

Research and development activities are directed toward the development of new products and processes as well as improvements in existing products and processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. Such amounts were $6.3 million, $6.7 million and $6.9 million in Fiscal 2019, 2018 and 2017, respectively.

Foreign Currency Translation

The functional currency for our foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the U.S. Dollar have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and all revenues and expenses are translated at average rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive loss in stockholders’ equity.

Stock-Based Compensation

We measure stock-based compensation cost at the grant date based on the fair value of the award. Compensation expense is recognized over the period during which the recipient is required to provide service in exchange for the awards, typically the vesting period. Excess income tax benefits related to share-based compensation expense is recognized as income tax expense or benefit in the Consolidated Statement of Operations. Cash paid when directly withholding shares on an employee's behalf for tax withholding purposes is classified as a financing activity. We account for forfeitures as they occur, rather than estimate expected forfeitures.

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. Effective October 1, 2018, we adopted this standard using a modified retrospective basis. After evaluating the impact of this new standard on contracts outstanding as of October 1, 2018, we determined that no adjustment to retained earnings was necessary. See Note E for further discussion of revenue.

In February 2016, the FASB issued a new topic on leases that 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 topic is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years which will be our fiscal year ending September 30, 2020. In Fiscal 2018, we acquired new lease software designed to assist in our compliance with this new topic. We anticipate recording right-of-use assets and lease liabilities in similar amounts of less than $10 million on our Consolidated Balance Sheets as of October 1, 2019, and do not anticipate a material adjustment to retained earnings will be necessary. We do not expect this topic to have a significant effect on our Consolidated Statements of Operations or Statements of Cash Flows.

In November 2016, the FASB issued a new topic on the statement of cash flows that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this topic in Fiscal 2019, and our Consolidated Cash Flow Statements for all periods reflect this presentation.

In May 2017, the FASB issued a new topic on modification accounting with regards to stock-based compensation. This new topic clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an equity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. We adopted this topic in Fiscal 2019, and it has not had a material impact on our Consolidated Balance Sheets or Statements of Operations.

Earnings Per Share

12 Months Ended

Sep. 30, 2019

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):



	Year Ended September 30,
	2019		2018			2017
Numerator:
Net income (loss)	$	9,890	$	(7,152	)	$	(9,486	)
Denominator:
Weighted average basic shares	11,571		11,507			11,453
Dilutive effect of restricted stock units	63		—			—
Weighted average diluted shares with assumed conversions	11,634		11,507			11,453

Earnings (loss) per share:
Basic	$	0.85	$	(0.62	)	$	(0.83	)
Diluted	$	0.85	$	(0.62	)	$	(0.83	)

For the years ended September 30, 2018 and 2017, we incurred net losses; therefore, all potential common shares were deemed to be anti-dilutive.

Detail of Selected Balance Sheet Accounts

12 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Detail of Selected Balance Sheet Accounts

Allowance for Doubtful Accounts

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



	September 30,
	2019			2018
Balance at beginning of period	$	157		$	179
Bad debt expense	233			111
Uncollectible accounts written off, net of recoveries	(81		)	(125		)
Change due to foreign currency translation	(8		)	(8		)
Balance at end of period	$	301		$	157

Inventories

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



	September 30,
	2019			2018
Raw materials, parts and subassemblies	$	31,781		$	24,563
Work-in-progress	1,100			1,080
Provision for excess and obsolete inventory	(3,679		)	(4,291		)
Total inventories	$	29,202		$	21,352

Property, Plant and Equipment

Property, plant and equipment are summarized below (in thousands):



	September 30,						Range of
	2019			2018			Asset Lives
Land	$	21,963		$	22,207		—
Buildings and improvements	122,404			123,320			3 - 39 Years
Machinery and equipment	106,137			104,542			3 - 15 Years
Furniture and fixtures	3,611			3,799			3 - 10 Years
Construction in process	2,118			357			—
	$	256,233		$	254,225
Less: Accumulated depreciation	(135,421		)	(125,461		)
Total property, plant and equipment, net	$	120,812		$	128,764

There were no assets under capital lease as of September 30, 2019 or September 30, 2018. Depreciation expense was $11.9 million, $12.7 million and $12.4 million for fiscal years 2019, 2018, and 2017, respectively.

Accrued Product Warranty

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



	September 30,
	2019			2018
Balance at beginning of period	$	2,604		$	3,174
Increase to warranty expense	3,004			2,031
Deduction for warranty charges	(2,649		)	(2,574		)
Change due to foreign currency translation	(13		)	(27		)
Balance at end of period	$	2,946		$	2,604

Revenue

12 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue

On October 1, 2018, we adopted the new revenue recognition standard using the modified retrospective transition method. We applied the guidance in the standard to customer contracts that were not substantially complete at that time and we determined that no adjustment to retained earnings was necessary. Financial results for reporting periods after October 1, 2018 are reported under the new standard; however, financial results for prior periods were not adjusted and will continue to be presented in accordance with the previous standard.

Revenue Recognition

The majority of our revenues are generated from the manufacturing of custom-engineered products and systems under long-term fixed-price contracts under which we agree to manufacture various products such as traditional and arc-resistant distribution switchgear and control gear, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers and bus duct systems. These products may be sold separately as an engineered solution, but are typically integrated into custom-built enclosures which we also build. These enclosures are referred to as power control room substations (PCRs®), custom-engineered modules or electrical houses (E-Houses). Some contracts may also include the installation and the commissioning of these enclosures.

Revenue from these contracts is generally recognized over time utilizing the cost-to-cost method to measure the extent of progress toward the completion of the performance obligation and the recognition of revenue over time. We believe that this method is the most accurate representation of our performance, because it directly measures the value of the services transferred to the customer over time as we incur costs on our contracts. Contract costs include all direct materials, labor, and indirect costs related to contract performance, which may include indirect labor, supplies, tools, repairs and depreciation costs.

We also have sales orders for spare parts and replacement circuit breakers for switchgear that are obsolete or that are no longer produced by the original manufacturer. Revenues from these sales orders are recognized at the time we fulfill our performance obligation to the customer, which is typically upon shipment and represented approximately 6% of revenues for the year ended September 30, 2019.

Performance Obligations

A performance obligation is a promise in a contract or with a customer to transfer a distinct good or service. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligations are satisfied. To determine the proper revenue recognition for contracts, we evaluate whether a contract should be accounted for as more than one performance obligation or, less commonly, whether two or more contracts should be combined and accounted for as one performance obligation. This evaluation of performance obligations requires significant judgment. The majority of our contracts have a single performance obligation where multiple engineered products and services are combined into a single custom-engineered solution. Our contracts generally include a standard assurance warranty that typically ends 18 months after shipment. Occasionally, we provide service-type warranties that will extend the warranty period. These extended warranties qualify as a separate performance obligation, and revenue is deferred and recognized over the warranty period. If we determine during the evaluation of the contract that there are multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract.

Remaining unsatisfied performance obligations, which we refer to as backlog, represent the estimated transaction price for goods and services for which we have a material right, but work has not been performed. As of September 30, 2019, we had backlog of $419.0 million, of which approximately $345 million is expected to be recognized as revenue within the next twelve months. Backlog may not be indicative of future operating results as orders may be cancelled or modified by our customers. Our backlog does not include service and maintenance-type contracts for which we have the right to invoice as services are performed.

Contract Estimates

Actual revenues and project costs may vary from previous estimates due to changes in a variety of factors. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the availability of materials, and the effect of any delays on our project performance. We periodically review our job performance, job conditions, estimated profitability and final contract settlements, including our estimate of total costs and make revisions to costs and income in the period in which the revisions are probable and reasonably estimable. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period.

For the years ended September 30, 2019 and 2018, our operating results were positively impacted by $5.1 million and $3.9 million, respectively, as a result of changes in contract estimates related to projects in progress at the beginning of the respective period. These changes in estimates resulted primarily from favorable project execution and negotiations of variable consideration, discussed below, as well as other changes in facts and circumstances during these periods.

Variable Consideration

It is common for our long-term contracts to contain variable consideration that can either increase or decrease the transaction price. Due to the nature of our contracts, estimating total cost and revenue can be complex and subject to variability due to change orders, back charges, spare parts, early completion bonuses, customer allowances and liquidated damages. We estimate the amount of variable consideration based on the expected value method, which is the sum of probability-weighted amount, or the most likely amount method, which uses various factors including experience with similar transactions and assessment of our anticipated performance. Variable consideration is included in the transaction price if legally enforceable and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved.

Contract Modifications

Contracts may be modified for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the enforceable rights and obligations under the contract. Most of our contract modifications are for goods and services that are not distinct from the existing performance obligation. Contract modifications result in a cumulative catch-up adjustment to revenue based on our measure of progress for the performance obligation.

Contract Balances

The timing of revenue recognition, billings and cash collections affects accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) in our Consolidated Balance Sheet.

Contract assets, previously referred to as costs and estimated earnings in excess of billings on uncompleted contracts, are recorded when revenues are recognized in excess of amounts billed for fixed-price contracts as determined by the billing milestone schedule. Contract assets are transferred to accounts receivable when billing milestones have been met, or we have an unconditional right to payment.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period and are generally classified as current.

Contract assets and liabilities as of September 30, 2019 and September 30, 2018 are summarized below (in thousands):



	September 30,
	2019			2018
Contract assets	$	55,374		$	82,545
Contract liabilities	(71,464		)	(43,174		)
Net contract asset (liability)	$	(16,090	)	$	39,371

The decrease in net contract asset to a contract liability at September 30, 2019 from September 30, 2018 was primarily due to our progress towards completion on our projects and the timing of contract billing milestones and new orders. To determine the amount of revenue recognized during the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. During the year ended September 30, 2019, we recognized revenue of approximately $39.5 million related to contract liabilities outstanding at September 30, 2018.

The timing of our invoice process is typically dependent on the completion of certain milestones and contract terms and subject to agreement by our customer. Payment is typically expected within 30 days of invoice. Any uncollected invoiced amounts for our performance obligations recognized over time, including contract retentions, are recorded as accounts receivable in the Consolidated Balance Sheets. Certain contracts contain retention provisions that become due upon completion of contractual requirements. As of September 30, 2019 and September 30, 2018, accounts receivable included retention amounts of $5.6 million and $4.2 million, respectively. Of the retained amount at September 30, 2019, $4.9 million is expected to be collected in the next twelve months.

Disaggregation of Revenue

The following tables present our disaggregated revenue by geographic destination and market sector for the year ended September 30, 2019 (in thousands):



	2019
United States	$	406,609
Canada	64,326
Europe, Middle East and Africa	32,166
Asia/Pacific	11,405
Mexico, Central and South America	2,674
Total revenues by geographic destination	$	517,180



	2019
Oil and gas	$	242,291
Petrochemical	93,391
Electric utility	84,993
Traction power	26,781
All others	69,724
Total revenues by market sector	$	517,180

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Our intangible assets consist of goodwill of $1.0 million, which is not being amortized, and purchased technology of $0.3 million, which is amortized over its estimated useful life. No impairment expense has been recorded for the last three fiscal years.

Intangible assets balances, subject to amortization, at September 30, 2019 and 2018 consisted of the following (in thousands):



	September 30, 2019							September 30, 2018
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Purchased technology	$	11,749	$	(11,415	)	$	334	$	11,749	$	(11,239	)	$	510

Amortization of intangible assets recorded for the years ended September 30, 2019, 2018 and 2017 was $0.2 million, $0.2 million and $0.4 million, respectively.

Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands):



Years Ended September 30,	Total
2020	$	177
2021	157
2022	—
2023	—
2024	—

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 its requirements for ANSI medium-voltage switchgear and circuit breakers and other related equipment and components (the Products). 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. The final balance of $2.3 million was received in April 2017. 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 total proceeds from GE exceeded the unamortized balance of our intangible asset. We amortized this deferred credit over the four-year life of the agreement and recorded $0.5 million in other income in Fiscal 2018, and $2.0 million in both Fiscal 2017 and 2016.

Long-Term Debt

12 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

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



	September 30,
	2019			2018
Industrial development revenue bonds	$	1,200		$	1,600
Less: current portion	(400		)	(400		)
Total long-term debt	$	800		$	1,200

The annual maturities of long-term debt as of September 30, 2019, were as follows (in thousands):



Year Ending September 30,	Long‑Term Debt Maturities
2020	$	400
2021	400
2022	—
2023	—
2024	—
Total long-term debt maturities	$	800

U.S. Revolver

On September 27, 2019, we entered into an Amended and Restated Credit Agreement with Bank of America, N.A. (the "U.S. Revolver"), which replaced our prior credit agreement. The U.S. Revolver is a $75.0 million revolving credit facility, which is available for both borrowings and letters of credit and expires September 2024. As of September 30, 2019, there were no amounts borrowed under this facility and letters of credit outstanding were $13.4 million. As of September 30, 2019, $61.6 million was available for the issuance of letters of credit and borrowing under the U.S. Revolver. In addition, the U.S. Revolver includes a right of the Company to request from time to time an increase in the revolving line of credit of up to $50.0 million, provided that (i) no default exists, (ii) each request must be in a minimum amount of $15.0 million (or, if less, the remaining portion of the increase), (iii) the Company may make a maximum of four such requests and (iv) each lender may agree whether or not to increase its revolving commitment.

We are required to maintain certain financial covenants, the most significant of which are a consolidated leverage ratio greater than 3.0 to 1.0 and a consolidated interest coverage ratio of less than 3.0 to 1.0. Additionally, we must maintain a consolidated cash balance of $30 million at all times. The U.S. Revolver also contains a "material adverse effect" clause which is 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. As of September 30, 2019, we were in compliance with all of the financial covenants of the U.S. Revolver.

As of September 30, 2018, the balance in the cash collateral account was $25.1 million and was recorded as restricted cash in our Consolidated Balance Sheets, which was required by our prior credit agreement. The portion of the cash collateral account associated with the outstanding letters of credit that were due to expire beyond twelve months was classified as non-current restricted cash. Our U.S. Revolver removes the previous requirement for all letters of credit and borrowings to be collateralized at 102%.

The U.S. Revolver allows the Company to elect that any borrowing under the facility bear an interest rate based on either the base rate or the eurocurrency rate, in each case, plus the applicable rate. The base rate is generally the highest of (a) the federal funds rate plus 0.50%, (b) the Bank of America prime rate and (c) the London Interbank Offered Rate (“LIBOR”) plus 1.00%, subject to certain interest rate floors set forth in the U.S. Revolver. The eurocurrency rate is generally (i) LIBOR for credit extensions denominated in U.S. dollars, euros or pound sterling, (ii) the Canadian dollar offered rate for credit extensions denominated in Canadian dollars and (iii) the rate designated by Bank of America for credit extensions denominated in other currencies. The applicable rate is generally a range from (0.25)% to 0.25% for base rate loans and 1.25% to 1.75% for eurocurrency rate loans, in each case based on the Company's consolidated leverage ratio, provided that the applicable rate is initially (0.25)% for base rate loans and 1.25% for eurocurrency rate loans until January 1, 2020.

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. 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 and letters of credit outstanding under the U.S. Revolver may be accelerated and may become immediately due and payable.

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. 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 annual principal payment. 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 1.69% as of September 30, 2019. As of September 30, 2019, we were in compliance with all of the covenants of the Bonds.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Leases

We lease certain offices, facilities and equipment under operating leases expiring at various dates through 2023. We also sublease certain facilities that we are no longer occupying. Our sublease terms do not fully cover the existing rental commitments on certain facilities.

At September 30, 2019, the future minimum annual rental commitments and expected receipts under non-cancelable operating leases having terms in excess of one year were as follows (in thousands):



Years Ended September 30,	Operating Leases Payments		Operating Sublease Income
2020	$	3,040	$	(877	)
2021	2,859		(1,028		)
2022	2,612		(1,159		)
2023	1,508		(943		)
2024	85		—
Thereafter	—		—
Total lease commitments	$	10,104	$	(4,007	)

Lease expense and sublease income from third parties was as follows (in thousands):



	Year Ended September 30,
	2019			2018			2017
Lease expense	$	3,493		$	3,432		$	3,734
Sublease income from third parties	(1,280		)	(1,487		)	(1,389		)

In Fiscal 2019, we recorded additional lease expense of $0.7 million related to certain facility leases in Canada that are no longer utilized in our operations. In Fiscal 2018, we incurred approximately $0.8 million due to anticipated losses on the sublet of a Canadian facility we exited in a prior period.

Letters of Credit, Bank Guarantees and Bonds

Certain customers require us to post letters of credit, bank guarantees or surety bonds. These security instruments 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 bank guarantee, or performance by the surety under a bond. To date, there have been no significant expenses related to security instruments for the periods reported. We were contingently liable for letters of credit of $13.4 million as of September 30, 2019. We also had outstanding surety bonds totaling $170.5 million, with additional bonding capacity of $579.5 million available, at September 30, 2019.

We have an $11.1 million facility agreement (Facility Agreement) between Powell (UK) Limited and a large international bank that provides Powell (UK) Limited the ability to enter into bank guarantees as well as forward exchange contracts and currency options. At September 30, 2019, we had outstanding guarantees totaling $5.7 million and amounts available under this Facility Agreement were $5.4 million. The Facility Agreement expires in May 2020 and 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 September 30, 2019, 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 September 30, 2019, our exposure to possible liquidated damages was $2.0 million, of which approximately $0.9 million was probable. Based on our actual or projected failure to meet these various contractual commitments, $0.8 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 unrecorded 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.

Income Taxes

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The components of the income tax provision (benefit) were as follows (in thousands):



	Year Ended September 30,
	2019			2018			2017
Current:
Federal	$	1,350		$	973		$	(7,782	)
State	186			201			(101		)
Foreign	88			449			350
	1,624			1,623			(7,533		)
Deferred:
Federal	366			(1,834		)	392
State	457			(247		)	(515		)
Foreign	(3		)	(89		)	223
	820			(2,170		)	100
Total income tax provision (benefit)	$	2,444		$	(547	)	$	(7,433	)

Income (loss) before income taxes was as follows (in thousands):



	Year Ended September 30,
	2019		2018			2017
U.S.	$	11,859	$	(2,103	)	$	(19,932	)
Other than U.S.	475		(5,596		)	3,013
Income (loss) before income taxes	$	12,334	$	(7,699	)	$	(16,919	)

A reconciliation of the statutory U.S. income tax rate and the effective income tax rate, as computed on earnings before income tax provision in each of the three years presented in the Consolidated Statements of Operations, was as follows:



	Year Ended September 30,
	2019		2018		2017
Statutory rate	21	%	25	%	35	%
State income taxes, net of federal benefit	4		(2	)	2
Research and development credit	(7	)	9		9
Foreign rate differential	1		1		2
Foreign withholding	1		(3	)	—
Foreign valuation allowance	(2	)	(20	)	2
NOL carryback impact on deductions	—		—		(4	)
Deferred tax rate differential	—		(4	)	—
Other	2		1		(2	)
Effective rate	20	%	7	%	44	%

On December 22, 2017, the new tax law lowered the corporate tax rate from 35% to 21% effective January 1, 2018. As a result, the U.S. federal statutory rate for Fiscal 2019 is 21%, compared to the blended statutory rate of 24.5% effective for Fiscal 2018.

Our income tax provision (benefit) reflects an effective tax rate on pre-tax results of 20% in Fiscal 2019 compared to 7% and 44% in Fiscal 2018 and 2017, respectively. The effective rate for Fiscal 2019 approximated the U.S. federal statutory rate as favorable adjustments related to the utilization of net operating loss carryforwards in Canada that were fully reserved with a valuation allowance and the Research and Development Tax Credit (R&D Tax Credit) were largely offset by unfavorable adjustments primarily related to state income taxes and other permanent items. Due to the loss position in Fiscal 2018, the effective tax rate was negatively impacted by foreign losses reserved for with a valuation allowance as well as $0.5 million of tax expense related to the re-measurement of U.S. deferred tax assets as a result of tax reform. Likewise, due to the loss in Fiscal 2017, the effective tax rate was favorably impacted by the relative amounts of income/loss recognized in the various tax jurisdictions, the utilization of net operating loss carryforwards in Canada that have been fully reserved with a valuation allowance, the lower tax rate in the U.K., as well as $0.9 million of discrete items recognized during the year, primarily related to the R&D Tax Credit.

We have not recorded deferred income taxes on $19.4 million of undistributed earnings of our foreign subsidiaries because of management’s intent to indefinitely reinvest such earnings. Upon distribution of these earnings in the form of dividends or otherwise, we may be subject to U.S. income taxes and foreign withholding taxes. It is not practical, however, to estimate the amount of taxes that may be payable on the eventual remittance of these earnings.

We are subject to income tax in the U.S., multiple state jurisdictions and certain international jurisdictions, primarily the U.K. and Canada. We do not consider any state in which we do business to be a major tax jurisdiction. We remain open to examination in the other jurisdictions as follows: Canada 2012 – 2018, United Kingdom 2017 – 2018 and the United States 2013 – 2018. As of September 30, 2019, we did not have any state audits underway that would have a material impact on our financial position or results of operations.

The net deferred income tax asset was comprised of the following (in thousands):



	September 30,
	2019			2018
Gross assets	$	18,486		$	22,480
Gross liabilities and valuation allowance	(13,369		)	(16,543		)
Net deferred income tax asset	$	5,117		$	5,937

The tax effect of temporary differences between U.S. GAAP accounting and federal income tax accounting creating deferred income tax assets and liabilities was as follows (in thousands):



	September 30,
	2019			2018
Deferred Tax Assets:
Net operating loss	$	10,636		$	13,444
Credit carryforwards	2,895			3,987
Deferred compensation	1,590			1,456
Uniform capitalization and inventory	983			1,043
Stock-based compensation	744			879
Reserve for accrued employee benefits	752			791
Warranty accrual	341			448
Accrued legal	115			154
Postretirement benefits liability	110			112
Goodwill	44			54
Other	276			112
Deferred tax assets	18,486			22,480
Deferred Tax Liabilities:
Depreciation and amortization	(5,138		)	(6,946		)
Deferred tax liabilities	(5,138		)	(6,946		)
Less: valuation allowance	(8,231		)	(9,597		)
Net deferred tax asset	$	5,117		$	5,937

As of September 30, 2019, we had tax credit carryforwards of $2.0 million not reserved with a valuation allowance that are available to reduce future U.S. federal tax liabilities. The majority of these tax credit carryforwards expire beginning in 2037. In addition, we had international net operating loss carryforwards of $2.9 million that were not reserved with a valuation allowance available to offset future taxable income in the respective jurisdictions, with less than 10% expiring in 2029 and the remainder having an indefinite carryforward period.

We have established a valuation allowance in the amount of $8.2 million primarily related to the Canadian net deferred tax assets. In assessing the realizability of net deferred tax assets, we consider whether it is more likely than not that some portion or all of the net deferred tax assets may not be realized. The ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible.

A rollforward of the valuation allowance for the past three years is summarized below:



Balance at September 30, 2016	$	8,439
Charged to cost and expenses	(260		)
Charged to other accounts	588
Balance at September 30, 2017	$	8,767
Charged to cost and expenses	1,575
Charged to other accounts	(745		)
Balance at September 30, 2018	$	9,597
Charged to cost and expenses	(209		)
Charged to other accounts	(1,157		)
Balance at September 30, 2019	$	8,231

A reconciliation of the beginning and ending amount of the unrecognized tax benefits that if recognized would affect the effective tax rate follows (in thousands):



	Year Ended September 30,
	2019		2018		2017
Balance at beginning of period	$	1,854	$	1,219	$	1,046
Increases related to tax positions taken during the current period	240		180		179
Increases related to tax positions taken during a prior period	609		455		338
Decreases related to expiration of statute of limitations	—		—		—
Decreases related to settlement with taxing authorities	—		—		(344		)
Balance at end of period	$	2,703	$	1,854	$	1,219

Our policy is to recognize interest and penalties related to income tax matters as tax expense. The amount of interest and penalty expense recorded for the year ended September 30, 2019 was not material.

Due to the expiration of certain federal statutes of limitations and voluntary filings, management believes that, within the next 12 months, it is reasonably possible that the unrecognized tax benefits will decrease by approximately $0.9 million and would positively impact our effective tax rate. We are unable to make reasonably reliable estimates regarding the timing of future cash outflows, if any, associated with the remaining unrecognized tax benefits.

In November 2018, we received a refund of $6.6 million related to the U.S. federal carryback claim filed for the Fiscal 2017 net operating loss. Subsequently, we were notified that the IRS would conduct a review of the carryback claim. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with management’s expectations, we could be required to adjust our provision for income tax in the period such resolution occurs.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Sep. 30, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans Retirement Plans We have defined employee contribution plans for substantially all of our U.S. employees (401(k) plan) and our Canadian employees (Registered Retirement Savings Plan). We recognized expenses under these plans primarily related to matching contributions of $3.2 million, $2.8 million and $2.8 million in Fiscal 2019, 2018 and 2017, respectively. Deferred Compensation We offer a non-qualified deferred compensation plan to a select group of management and highly compensated individuals. The plan permits the deferral of up to 50% of a participant’s base salary and/or 100% of a participant’s annual incentive bonus. The deferrals are held in a separate trust, an irrevocable rabbi trust (the Rabbi Trust), which has been established to administer the plan. The Rabbi Trust is intended to be used as a source of funds to match respective funding obligations to participants. The assets of the trust are subject to the claims of our creditors in the event that we become insolvent. Consequently, the Rabbi Trust qualifies as a grantor trust for income tax purposes. We make periodic payments into company-owned life insurance policies held in this Rabbi Trust to fund the expected obligations arising under this plan. The assets and liabilities of the plan are recorded in other assets and deferred compensation, respectively, in the accompanying Consolidated Balance Sheets. Changes in the deferred compensation balance are recorded to compensation expense and reflected within the selling, general and administrative line in the Consolidated Statements of Operations. The plan is not qualified under Section 401 of the Internal Revenue code. We recorded net compensation expense adjustments of $0.2 million related to this plan in Fiscal 2019. At September 30, 2019, total assets held by the trustee were $6.8 million and recorded in other assets and the liability was $6.2 million and recorded in other long-term liabilities in our Consolidated Balance Sheets. Of the $6.8 million of assets held by the trustee, $6.7 million is invested in company-owned life insurance policies and the remainder in mutual funds. Certain former executives were provided an executive benefit plan that provides for fixed payments upon normal retirement on or after age 65 and the completion of at least 10 years of continuous employment. The estimated present value of these payments was accrued over the service life of these individuals, and $0.2 million is recorded in deferred compensation related to this executive benefit plan. To assist in funding the deferred compensation liability, we invested in company-owned life insurance policies. The cash surrender value of these policies is presented in other assets and was $3.2 million at September 30, 2019. Retiree Medical Plan We have a plan that extends health benefits to retirees that are also available to active employees under our existing health plans. This plan is unfunded. The plan provides coverage for employees with at least 10 years of service who are age 55 or older but less than 65. The retiree is required to pay the COBRA rate less a subsidy provided by us based on years of service at the time of retirement. The unfunded liability is recorded in other long-term liabilities and was $0.9 million as of both September 30, 2019 and 2018. Our net periodic postretirement benefit expenses have been less than $0.1 million for the last three fiscal years. Due to the immateriality of the costs and liabilities of this plan, no further disclosure is being presented.

Stock-Based Compensation

12 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

We have the following stock-based compensation plans:

2014 Equity Incentive Plan

In February 2014, our stockholders approved and adopted at the Annual Meeting of Stockholders the 2014 Equity Incentive Plan (the 2014 Plan), which replaced our 2006 Equity Compensation Plan (2006 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.

In accordance with the 2014 Plan, the compensation committee has authorized grants of 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. Typically, these grants vest over a three-year period from their date of issuance. Fifty to 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 to fifty percent of the grant is earned based on the three-year earnings performance of the Company following the grant date. At September 30, 2019, there were 131,850 RSUs outstanding. The RSUs do not have voting rights but 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.

Total RSU activity (number of shares) for the past fiscal year is summarized below:



	Number of Restricted Stock Units		Weighted Average Grant Value Per Share
Outstanding at September 30, 2018	190,500		$	33.73
Granted	77,150		34.89
Vested	(117,684	)	33.57
Forfeited/cancelled	(18,116	)	33.75
Outstanding at September 30, 2019	131,850		$	33.76

We have reserved 750,000 shares of common stock for issuance under the 2014 Plan. As of September 30, 2019, there were 554,801 shares of common stock available for future grants.

2014 Non-Employee Director Equity Incentive Plan

In February 2014, our stockholders approved the 2014 Non-Employee Director Equity Incentive Plan (the 2014 Director Plan). The total number of shares of common stock reserved under the plan is 150,000 shares. The plan is administered by the compensation committee. Eligibility to participate in the plan is limited to those individuals who are members of the Board of Directors of the Company and who are not employees of the Company or any affiliate of the Company.

Under the terms of the 2014 Director Plan, the maximum number of shares that may be granted during any calendar year to any individual is 12,000 shares. The total number of shares that may be issued for awards to any single participant during a calendar year for other stock-based awards (excluding stock options and SARs) is 4,000 shares. The Compensation Committee has determined that each non-employee director will receive 2,000 restricted shares of the Company’s common stock annually. Fifty percent of the restricted stock granted to each of our non-employee directors vests immediately, while the remaining fifty percent vests on the anniversary of the grant date. Compensation expense is based on the closing share price on the grant date and recognized immediately for the first fifty percent of the restricted stock granted, while compensation expense for the remaining fifty percent will be recognized over the remaining vesting period.

Under this 2014 Director Plan, in February 2019, 7,000 shares of common stock and 7,000 shares of restricted stock were issued to our non-employee directors at a price of $34.02 per share. In February 2018, we issued 6,000 shares of restricted stock to our non-employee directors at a price of $27.88 per share, and in April 2018, we issued 1,000 shares of restricted stock to a single non-employee director at a price of $27.15. The total number of shares of common stock available for future awards under the 2014 Director plan was 56,600 shares as of September 30, 2019.

At both September 30, 2019 and 2018, there were 7,000 shares of unvested restricted stock outstanding. Total compensation expense related to restricted stock grants under all plans was $0.5 million, $0.5 million and $0.7 million for the years ended September 30, 2019, 2018 and 2017, respectively. Total compensation expense related to RSUs under all plans was $3.3 million, $2.7 million and $2.0 million for the years ended September 30, 2019, 2018 and 2017, respectively.

We record the amortization of non-vested restricted stock and restricted stock units as an increase to additional paid-in capital. As of September 30, 2019 and 2018, amounts of deferred compensation expense not yet recognized related to non-vested stock and RSUs totaled $1.0 million and $1.2 million, respectively. As of September 30, 2019, the total weighted average remaining contractual life of our non-vested restricted stock and RSUs is approximately six months and 1.4 years, respectively.

Fair Value Measurements

12 Months Ended

Sep. 30, 2019

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 that 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 September 30, 2019 (in thousands):



	Fair Value Measurements at September 30, 2019
	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, 2019
Assets:
Cash and cash equivalents	$	118,639	$	—	$	—	$	118,639
Short-term investments	6,042		—		—		6,042
Other assets	—		6,825		—		6,825
Liabilities:
Deferred compensation	—		6,249		—		6,249

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, 2018 (in thousands):



	Fair Value Measurements at September 30, 2018
	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, 2018
Assets:
Cash and cash equivalents	$	36,584	$	—	$	—	$	36,584
Short-term investments	13,170		—		—		13,170
Restricted cash	25,141		—		—		25,141
Other assets	—		6,817		—		6,817
Liabilities:
Deferred compensation	—		5,644		—		5,644

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.

Cash and cash equivalents

Cash and 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 Consolidated Balance Sheets.

Short-term Investments - Short-term investments include time deposits with original maturities of three months or more.

Restricted Cash - Restricted cash represented a pledged cash collateral balance, which was required under our prior credit agreement and was held in an interest-bearing savings account. See Note G for further discussion on restricted cash.

Other Assets and Deferred Compensation – We hold investments in an irrevocable Rabbi Trust for our deferred compensation plan. The assets are primarily related to company-owned life insurance policies and are included in other assets in the accompanying Consolidated Balance Sheets. Because the mutual funds and company-owned life insurance policies are combined in the plan, they are therefore categorized as Level 2 in the fair value measurement hierarchy. The deferred compensation liability represents the investment options that the plan participants have designated to serve as the basis for measurement of the notional value of their accounts. Because the deferred compensation liability is intended to offset the plan assets, it is therefore also categorized as Level 2 in the fair value measurement hierarchy.

- 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

Geographic Information

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Geographic Information

Revenues by country represent sales to unaffiliated customers as determined by the ultimate destination of our products and services, summarized for the last three fiscal years by region in the table below (in thousands):



	Year Ended September 30,
	2019		2018		2017
United States	$	406,609	$	335,743	$	279,352
Canada	64,326		42,235		45,540
Middle East and Africa	18,420		38,490		26,639
Far East	11,405		12,976		3,877
Europe	13,746		10,538		21,194
Mexico, Central and South America	2,674		8,734		19,309
Total revenues	$	517,180	$	448,716	$	395,911



	September 30,
	2019		2018
Long-lived assets:
United States	$	71,325	$	76,016
Canada	44,933		48,126
United Kingdom	4,554		4,622
Total	$	120,812	$	128,764

Long-lived assets by country consist of property, plant and equipment, net of accumulated depreciation and are determined based on the location of the tangible assets.

Quarterly Information

12 Months Ended

Sep. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Information

The table below sets forth the unaudited consolidated operating results by fiscal quarter for the years ended September 30, 2019 and 2018 (in thousands, except per share data):



	2019 Quarters
	First			Second		Third		Fourth		2019
Revenues	$	109,351		$	123,737	$	135,588	$	148,504	$	517,180
Gross profit	14,631			20,075		23,715		28,555		86,976
Net income (loss)	(2,695		)	958		5,089		6,538		9,890
Earnings (loss) per share:
Basic	$	(0.23	)	$	0.08	$	0.44	$	0.56	$	0.85
Diluted	$	(0.23	)	$	0.08	$	0.44	$	0.56	$	0.85



	2018 Quarters
	First			Second			Third		Fourth		2018
Revenues	$	90,184		$	101,505		$	122,130	$	134,897	$	448,716
Gross profit	10,554			12,421			18,375		24,005		65,355
Net income (loss)	(5,662		)	(3,330		)	301		1,539		(7,152		)
Earnings (loss) per share:
Basic	$	(0.49	)	$	(0.29	)	$	0.03	$	0.13	$	(0.62	)
Diluted	$	(0.49	)	$	(0.29	)	$	0.03	$	0.13	$	(0.62	)

The sum of the individual earnings per share amounts may not agree with year-to-date earnings per share as each period’s computation is based on the weighted-average number of shares outstanding during the period.

Subsequent Events	12 Months Ended
Subsequent Events	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On November 4, 2019, our Board of Directors declared a quarterly cash dividend on our common stock in the amount of $0.26 per share. The dividend is payable on December 18, 2019 to shareholders of record at the close of business on November 20, 2019.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Powell and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (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 recognition and estimated cost recognition on our customer contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable) 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 because the ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during periods in which temporary differences become deductible. Estimates routinely change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our prior estimates.
Cash and Investments	Cash and Investments Cash and cash equivalents Cash and 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 Consolidated Balance Sheets. Short-term Investments - Short-term investments include time deposits with original maturities of three months or more. Restricted Cash - Restricted cash included cash and cash equivalents that were unavailable for withdrawal or usage for general obligations and represented a pledged cash collateral balance that was required under our prior credit agreement and was held in an interest-bearing savings account. See Note G for further discussion on restricted cash.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Financial instruments include cash, cash equivalents, short-term investments, restricted cash, receivables, deferred compensation, payables and debt obligations. Except as described below, due to the short-term nature of account receivables and account payables, the book value is representative of their fair value. The carrying value of debt approximates fair value as interest rates are indexed to the Federal Funds Rate or the bank’s prime rate.
Accounts Receivable	Accounts Receivable Accounts receivable are stated net of allowances for doubtful accounts. We maintain and continually assess the adequacy of the allowance for doubtful accounts representing our estimate for losses resulting from the inability of our customers to pay amounts due to us. This estimated allowance is based on historical experience of uncollected accounts, the level of past due accounts, the overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and expectations of future conditions that could impact the collectability of accounts receivable. Future changes in our customers’ operating performance and cash flows, or in general economic conditions, could have an impact on their ability to fully pay these amounts, which could have a material impact on our operating results. In most cases, receivables are not collateralized. However, we utilize letters of credit to secure payment on projects when possible.
Revenue Recognition	Revenue Recognition Our revenues are primarily generated from the manufacturing of custom-engineered products and systems under long-term fixed-price contracts that may last from one month to several years, depending on the contract. Revenue from these contracts is generally recognized over time utilizing the cost-to-cost method to measure the extent of progress toward the completion of the performance obligation and the recognition of revenue over time. We believe that this method is the most accurate representation of our performance because it directly measures the value of the services transferred to the customer over time as we incur costs on our contracts. Contract costs include all direct materials, labor and indirect costs related to contract performance, which may include indirect labor, supplies, tools, repairs and depreciation costs. We also have contracts to provide value-added services such as field service inspection, installation, commissioning, modification and repair, as well as retrofit and retrofill components for existing systems. As a practical expedient, if the service contract terms give us the right to invoice the customer for an amount that corresponds directly with the value of our performance completed to date (i.e., a service contract in which we bill a fixed amount for each hour of service provided), then we recognize revenue over time in each reporting period corresponding to the amount with which we have the right to invoice. Our performance obligations are satisfied as the work progresses. We also have sales orders for spare parts and replacement circuit breakers for switchgear that are obsolete or that are no longer produced by the original manufacturer. Revenues from these sales orders are recognized at a point in time when we fulfill our performance obligation to the customer, which is typically upon shipment. Additionally, some contracts may contain a cancellation clause that could limit the amount of revenue we are able to recognize over time. In these instances, revenue and costs associated with these contracts are deferred and recognized at a point in time when the performance obligation is fulfilled. Selling and administrative costs incurred in relation to obtaining a contract are typically expensed as incurred. We periodically utilize a third-party sales agent to obtain a contract and will pay a commission to that agent. We record the full commission liability to the third-party sales agent at the order date, with a corresponding deferred asset. As the project progresses, we record commission expense based on percentage of completion rates that correlate to the project and reduce the deferred asset. Once we have been paid by the customer, we pay the commission, and the deferred liability is reduced. Contract Balances Contract assets, previously referred to as costs and estimated earnings in excess of billings on uncompleted contracts are recorded when revenues are recognized in excess of amounts billed for fixed-price contracts as determined by the billing milestone schedule. Contract assets are transferred to accounts receivable when billing milestones have been met, or we have an unconditional right to payment. Contract liabilities, previously referred to as billings in excess of costs and estimated earnings on uncompleted contracts, typically represent advance payments from contractual billing milestones and billings in excess of revenue recognized. It is unusual to have advanced milestone payments with a term greater than one year, which could represent a financing component on the contract. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period and are generally classified as current. Variable Consideration It is common for our long-term contracts to contain variable consideration that can either increase or decrease the transaction price. Due to the nature of our contracts, estimating total cost and revenue can be complex and subject to variability due to change orders, back charges, spare parts, early completion bonuses, customer allowances and liquidated damages. We estimate the amount of variable consideration based on the expected value method, which is the sum of probability-weighted amount, or the most likely amount method, which uses various factors including experience with similar transactions and assessment of our anticipated performance. Variable consideration is included in the transaction price if legally enforceable and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved. Contract Modifications Contracts may be modified for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the enforceable rights and obligations under the contract. Most of our contract modifications are for goods and services that are not distinct from the existing performance obligation. Contract modifications result in a cumulative catch-up adjustment to revenue based on our measure of progress for the performance obligation. Contract Balances The timing of revenue recognition, billings and cash collections affects accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) in our Consolidated Balance Sheet. Contract assets, previously referred to as costs and estimated earnings in excess of billings on uncompleted contracts, are recorded when revenues are recognized in excess of amounts billed for fixed-price contracts as determined by the billing milestone schedule. Contract assets are transferred to accounts receivable when billing milestones have been met, or we have an unconditional right to payment. Contract liabilities, previously referred to as billings in excess of costs and estimated earnings on uncompleted contracts, typically represent advance payments from contractual billing milestones and billings in excess of revenue recognized. It is unusual to have advanced milestone payments with a term greater than one year, which could represent a financing component on the contract. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period and are generally classified as current. Contract Estimates Actual revenues and project costs may vary from previous estimates due to changes in a variety of factors. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the availability of materials, and the effect of any delays on our project performance. We periodically review our job performance, job conditions, estimated profitability and final contract settlements, including our estimate of total costs and make revisions to costs and income in the period in which the revisions are probable and reasonably estimable. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. Performance Obligations A performance obligation is a promise in a contract or with a customer to transfer a distinct good or service. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligations are satisfied. To determine the proper revenue recognition for contracts, we evaluate whether a contract should be accounted for as more than one performance obligation or, less commonly, whether two or more contracts should be combined and accounted for as one performance obligation. This evaluation of performance obligations requires significant judgment. The majority of our contracts have a single performance obligation where multiple engineered products and services are combined into a single custom-engineered solution. Our contracts generally include a standard assurance warranty that typically ends 18 months after shipment. Occasionally, we provide service-type warranties that will extend the warranty period. These extended warranties qualify as a separate performance obligation, and revenue is deferred and recognized over the warranty period. If we determine during the evaluation of the contract that there are multiple performance obligations, we allocate the transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Remaining unsatisfied performance obligations, which we refer to as backlog, represent the estimated transaction price for goods and services for which we have a material right, but work has not been performed.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value using weighted-average methods and include the cost of materials, labor and manufacturing overhead. We use estimates in determining the level of reserves required to state inventory at the lower of cost or net realizable value. Our estimates are based on market activity levels, production requirements, the physical condition of products and technological innovation. Changes in any of these factors may result in adjustments to the carrying value of inventory.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and improvements, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the Consolidated Statements of Operations. We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value may not be realizable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if recording an impairment of such asset is necessary. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. This requires us to make long-term forecasts of the future revenues and the costs related to the assets subject to review. Forecasts require assumptions about demand for our products and future market conditions. Estimating future cash flows requires significant judgment, and our projections may vary from cash flows eventually realized. Future events and unanticipated changes to assumptions could require a provision for impairment in a future period. The effect of any impairment would be reflected in income (loss) from operations in the Consolidated Statements of Operations. In addition, we estimate the useful lives of our property, plant and equipment and periodically review these estimates to determine whether these lives are appropriate.
Income Taxes	Income Taxes We account for income taxes under the asset and liability method, based on the income tax laws and rates in the countries in which operations are conducted, and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Developing our provision for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. In assessing the extent to which net deferred tax assets may be realized, we consider whether it is more likely than not that some portion or all of the net deferred tax assets may not be realized. The ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Estimates may change as new events occur, estimates of future taxable income during the carryforward period are reduced or increased, additional information becomes available or operating environments change, which may result in a full or partial reversal of the valuation allowance. We will continue to assess the adequacy of the valuation allowance on a quarterly basis. Our judgments and tax strategies are subject to audit by various taxing authorities. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accounting literature also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial statements.
Warranty Costs	Warranty Costs We provide for estimated warranty costs with the recognition of revenue based upon historical rates applicable to individual product lines. In addition, specific provisions are made when the costs of such warranties are expected to exceed accruals. Our standard terms and conditions of sale include a warranty for parts and service for the earlier of 18 months from the date of shipment or 12 months from the date of energization, whichever occurs first. Occasionally projects require warranty terms that are longer than our standard terms due to the nature of the project. Extended warranty terms may be negotiated and included in our contracts. We use past experience and historical claims to determine the estimated liability. Actual results could differ from our estimate.
Research and Development Expense	Research and Development Expense Research and development activities are directed toward the development of new products and processes as well as improvements in existing products and processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred.
Foreign Currency Translation	Foreign Currency Translation The functional currency for our foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the U.S. Dollar have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and all revenues and expenses are translated at average rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive loss in stockholders’ equity.
Stock-Based Compensation	Stock-Based Compensation We measure stock-based compensation cost at the grant date based on the fair value of the award. Compensation expense is recognized over the period during which the recipient is required to provide service in exchange for the awards, typically the vesting period. Excess income tax benefits related to share-based compensation expense is recognized as income tax expense or benefit in the Consolidated Statement of Operations. Cash paid when directly withholding shares on an employee's behalf for tax withholding purposes is classified as a financing activity. We account for forfeitures as they occur, rather than estimate expected forfeitures.
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. Effective October 1, 2018, we adopted this standard using a modified retrospective basis. After evaluating the impact of this new standard on contracts outstanding as of October 1, 2018, we determined that no adjustment to retained earnings was necessary. See Note E for further discussion of revenue. In February 2016, the FASB issued a new topic on leases that 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 topic is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years which will be our fiscal year ending September 30, 2020. In Fiscal 2018, we acquired new lease software designed to assist in our compliance with this new topic. We anticipate recording right-of-use assets and lease liabilities in similar amounts of less than $10 million on our Consolidated Balance Sheets as of October 1, 2019, and do not anticipate a material adjustment to retained earnings will be necessary. We do not expect this topic to have a significant effect on our Consolidated Statements of Operations or Statements of Cash Flows. In November 2016, the FASB issued a new topic on the statement of cash flows that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this topic in Fiscal 2019, and our Consolidated Cash Flow Statements for all periods reflect this presentation. In May 2017, the FASB issued a new topic on modification accounting with regards to stock-based compensation. This new topic clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an equity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. We adopted this topic in Fiscal 2019, and it has not had a material impact on our Consolidated Balance Sheets or Statements of Operations.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Supplemental Disclosures of Cash Flow Information

Supplemental Disclosures of Cash Flow Information (in thousands):



	Year Ended September 30,
	2019			2018			2017
Cash paid (received) during the period for:
Interest paid, net of interest income	$	(873	)	$	(676	)	(384	)
Income taxes paid, net of refunds	(5,219		)	354			(764	)
Non-cash capital expenditures	1,248			129			634

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2019

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):



	Year Ended September 30,
	2019		2018			2017
Numerator:
Net income (loss)	$	9,890	$	(7,152	)	$	(9,486	)
Denominator:
Weighted average basic shares	11,571		11,507			11,453
Dilutive effect of restricted stock units	63		—			—
Weighted average diluted shares with assumed conversions	11,634		11,507			11,453

Earnings (loss) per share:
Basic	$	0.85	$	(0.62	)	$	(0.83	)
Diluted	$	0.85	$	(0.62	)	$	(0.83	)

Detail of Selected Balance Sheet Accounts (Tables)

12 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Activity in Allowance for Doubtful Accounts

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



	September 30,
	2019			2018
Balance at beginning of period	$	157		$	179
Bad debt expense	233			111
Uncollectible accounts written off, net of recoveries	(81		)	(125		)
Change due to foreign currency translation	(8		)	(8		)
Balance at end of period	$	301		$	157

Components of Inventories

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



	September 30,
	2019			2018
Raw materials, parts and subassemblies	$	31,781		$	24,563
Work-in-progress	1,100			1,080
Provision for excess and obsolete inventory	(3,679		)	(4,291		)
Total inventories	$	29,202		$	21,352

Schedule of Property, Plant and Equipment

Property, plant and equipment are summarized below (in thousands):



	September 30,						Range of
	2019			2018			Asset Lives
Land	$	21,963		$	22,207		—
Buildings and improvements	122,404			123,320			3 - 39 Years
Machinery and equipment	106,137			104,542			3 - 15 Years
Furniture and fixtures	3,611			3,799			3 - 10 Years
Construction in process	2,118			357			—
	$	256,233		$	254,225
Less: Accumulated depreciation	(135,421		)	(125,461		)
Total property, plant and equipment, net	$	120,812		$	128,764

Activity in Warranty Accrual

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



	September 30,
	2019			2018
Balance at beginning of period	$	2,604		$	3,174
Increase to warranty expense	3,004			2,031
Deduction for warranty charges	(2,649		)	(2,574		)
Change due to foreign currency translation	(13		)	(27		)
Balance at end of period	$	2,946		$	2,604

Revenue (Tables)

12 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Contract Assets and Liabilities

Contract assets and liabilities as of September 30, 2019 and September 30, 2018 are summarized below (in thousands):



	September 30,
	2019			2018
Contract assets	$	55,374		$	82,545
Contract liabilities	(71,464		)	(43,174		)
Net contract asset (liability)	$	(16,090	)	$	39,371

Disaggregation of Revenue

The following tables present our disaggregated revenue by geographic destination and market sector for the year ended September 30, 2019 (in thousands):



	2019
United States	$	406,609
Canada	64,326
Europe, Middle East and Africa	32,166
Asia/Pacific	11,405
Mexico, Central and South America	2,674
Total revenues by geographic destination	$	517,180



	2019
Oil and gas	$	242,291
Petrochemical	93,391
Electric utility	84,993
Traction power	26,781
All others	69,724
Total revenues by market sector	$	517,180

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets Subject to Amortization

Intangible assets balances, subject to amortization, at September 30, 2019 and 2018 consisted of the following (in thousands):



	September 30, 2019							September 30, 2018
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Purchased technology	$	11,749	$	(11,415	)	$	334	$	11,749	$	(11,239	)	$	510

Schedule of Estimated Amortization Expense

Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands):



Years Ended September 30,	Total
2020	$	177
2021	157
2022	—
2023	—
2024	—

Long-Term Debt (Tables)

12 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Components of Long-Term Debt

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



	September 30,
	2019			2018
Industrial development revenue bonds	$	1,200		$	1,600
Less: current portion	(400		)	(400		)
Total long-term debt	$	800		$	1,200

Schedule of Maturities of Long-Term Debt

The annual maturities of long-term debt as of September 30, 2019, were as follows (in thousands):



Year Ending September 30,	Long‑Term Debt Maturities
2020	$	400
2021	400
2022	—
2023	—
2024	—
Total long-term debt maturities	$	800

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Subparagraph (SX 210.4-08.(e),(f))
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-Section 55
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Annual Rental Commitments Under Leases

At September 30, 2019, the future minimum annual rental commitments and expected receipts under non-cancelable operating leases having terms in excess of one year were as follows (in thousands):



Years Ended September 30,	Operating Leases Payments		Operating Sublease Income
2020	$	3,040	$	(877	)
2021	2,859		(1,028		)
2022	2,612		(1,159		)
2023	1,508		(943		)
2024	85		—
Thereafter	—		—
Total lease commitments	$	10,104	$	(4,007	)

Schedule of Lease Expense and Sublease Income

Lease expense and sublease income from third parties was as follows (in thousands):



	Year Ended September 30,
	2019			2018			2017
Lease expense	$	3,493		$	3,432		$	3,734
Sublease income from third parties	(1,280		)	(1,487		)	(1,389		)

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) were as follows (in thousands):



	Year Ended September 30,
	2019			2018			2017
Current:
Federal	$	1,350		$	973		$	(7,782	)
State	186			201			(101		)
Foreign	88			449			350
	1,624			1,623			(7,533		)
Deferred:
Federal	366			(1,834		)	392
State	457			(247		)	(515		)
Foreign	(3		)	(89		)	223
	820			(2,170		)	100
Total income tax provision (benefit)	$	2,444		$	(547	)	$	(7,433	)

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes was as follows (in thousands):



	Year Ended September 30,
	2019		2018			2017
U.S.	$	11,859	$	(2,103	)	$	(19,932	)
Other than U.S.	475		(5,596		)	3,013
Income (loss) before income taxes	$	12,334	$	(7,699	)	$	(16,919	)

Schedule of Effective Income Tax Rate Reconciliation



	Year Ended September 30,
	2019		2018		2017
Statutory rate	21	%	25	%	35	%
State income taxes, net of federal benefit	4		(2	)	2
Research and development credit	(7	)	9		9
Foreign rate differential	1		1		2
Foreign withholding	1		(3	)	—
Foreign valuation allowance	(2	)	(20	)	2
NOL carryback impact on deductions	—		—		(4	)
Deferred tax rate differential	—		(4	)	—
Other	2		1		(2	)
Effective rate	20	%	7	%	44	%

Schedule of Deferred Tax Assets and Liabilities

The net deferred income tax asset was comprised of the following (in thousands):



	September 30,
	2019			2018
Gross assets	$	18,486		$	22,480
Gross liabilities and valuation allowance	(13,369		)	(16,543		)
Net deferred income tax asset	$	5,117		$	5,937

The tax effect of temporary differences between U.S. GAAP accounting and federal income tax accounting creating deferred income tax assets and liabilities was as follows (in thousands):



	September 30,
	2019			2018
Deferred Tax Assets:
Net operating loss	$	10,636		$	13,444
Credit carryforwards	2,895			3,987
Deferred compensation	1,590			1,456
Uniform capitalization and inventory	983			1,043
Stock-based compensation	744			879
Reserve for accrued employee benefits	752			791
Warranty accrual	341			448
Accrued legal	115			154
Postretirement benefits liability	110			112
Goodwill	44			54
Other	276			112
Deferred tax assets	18,486			22,480
Deferred Tax Liabilities:
Depreciation and amortization	(5,138		)	(6,946		)
Deferred tax liabilities	(5,138		)	(6,946		)
Less: valuation allowance	(8,231		)	(9,597		)
Net deferred tax asset	$	5,117		$	5,937

Schedule of Valuation Allowance

A rollforward of the valuation allowance for the past three years is summarized below:



Balance at September 30, 2016	$	8,439
Charged to cost and expenses	(260		)
Charged to other accounts	588
Balance at September 30, 2017	$	8,767
Charged to cost and expenses	1,575
Charged to other accounts	(745		)
Balance at September 30, 2018	$	9,597
Charged to cost and expenses	(209		)
Charged to other accounts	(1,157		)
Balance at September 30, 2019	$	8,231

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the unrecognized tax benefits that if recognized would affect the effective tax rate follows (in thousands):



	Year Ended September 30,
	2019		2018		2017
Balance at beginning of period	$	1,854	$	1,219	$	1,046
Increases related to tax positions taken during the current period	240		180		179
Increases related to tax positions taken during a prior period	609		455		338
Decreases related to expiration of statute of limitations	—		—		—
Decreases related to settlement with taxing authorities	—		—		(344		)
Balance at end of period	$	2,703	$	1,854	$	1,219

Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Restricted Stock Units Activity

Total RSU activity (number of shares) for the past fiscal year is summarized below:



	Number of Restricted Stock Units		Weighted Average Grant Value Per Share
Outstanding at September 30, 2018	190,500		$	33.73
Granted	77,150		34.89
Vested	(117,684	)	33.57
Forfeited/cancelled	(18,116	)	33.75
Outstanding at September 30, 2019	131,850		$	33.76

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2019

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 September 30, 2019 (in thousands):



	Fair Value Measurements at September 30, 2019
	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, 2019
Assets:
Cash and cash equivalents	$	118,639	$	—	$	—	$	118,639
Short-term investments	6,042		—		—		6,042
Other assets	—		6,825		—		6,825
Liabilities:
Deferred compensation	—		6,249		—		6,249

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, 2018 (in thousands):



	Fair Value Measurements at September 30, 2018
	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, 2018
Assets:
Cash and cash equivalents	$	36,584	$	—	$	—	$	36,584
Short-term investments	13,170		—		—		13,170
Restricted cash	25,141		—		—		25,141
Other assets	—		6,817		—		6,817
Liabilities:
Deferred compensation	—		5,644		—		5,644

Geographic Information (Tables)

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Revenues from External Customers by Geographical Areas



	Year Ended September 30,
	2019		2018		2017
United States	$	406,609	$	335,743	$	279,352
Canada	64,326		42,235		45,540
Middle East and Africa	18,420		38,490		26,639
Far East	11,405		12,976		3,877
Europe	13,746		10,538		21,194
Mexico, Central and South America	2,674		8,734		19,309
Total revenues	$	517,180	$	448,716	$	395,911

Schedule of Long-Lived Assets by Geographical Areas



	September 30,
	2019		2018
Long-lived assets:
United States	$	71,325	$	76,016
Canada	44,933		48,126
United Kingdom	4,554		4,622
Total	$	120,812	$	128,764

Quarterly Information (Tables)

12 Months Ended

Sep. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The table below sets forth the unaudited consolidated operating results by fiscal quarter for the years ended September 30, 2019 and 2018 (in thousands, except per share data):



	2019 Quarters
	First			Second		Third		Fourth		2019
Revenues	$	109,351		$	123,737	$	135,588	$	148,504	$	517,180
Gross profit	14,631			20,075		23,715		28,555		86,976
Net income (loss)	(2,695		)	958		5,089		6,538		9,890
Earnings (loss) per share:
Basic	$	(0.23	)	$	0.08	$	0.44	$	0.56	$	0.85
Diluted	$	(0.23	)	$	0.08	$	0.44	$	0.56	$	0.85



	2018 Quarters
	First			Second			Third		Fourth		2018
Revenues	$	90,184		$	101,505		$	122,130	$	134,897	$	448,716
Gross profit	10,554			12,421			18,375		24,005		65,355
Net income (loss)	(5,662		)	(3,330		)	301		1,539		(7,152		)
Earnings (loss) per share:
Basic	$	(0.49	)	$	(0.29	)	$	0.03	$	0.13	$	(0.62	)
Diluted	$	(0.49	)	$	(0.29	)	$	0.03	$	0.13	$	(0.62	)

Summary of Significant Accounting Policies - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Cash paid (received) during the period for:
Interest paid, net of interest income	$ (873)	$ (676)	$ (384)
Income taxes paid, net of refunds	(5,219)	354	(764)
Non-cash capital expenditures	$ 1,248	$ 129	$ 634

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Revenue from External Customer [Line Items]
Retention amounts included in accounts receivable	$ 5,600	$ 4,200
Retention amounts expected to be collected in next fiscal year	$ 4,900
Warranty for parts and services date of shipment	18 months
Warranty parts and services date of energization	12 months
Research and development expenses	$ 6,327	6,717	$ 6,906
Minimum
Revenue from External Customer [Line Items]
Long-term contract beginning	1 month
Accounts Receivable
Revenue from External Customer [Line Items]
Retention amounts included in accounts receivable	$ 5,600	$ 4,200
Other Assets
Revenue from External Customer [Line Items]
Retention amounts expected to be collected in Fiscal 2021	$ 700

Summary of Significant Accounting Policies - New Accouting Standards (Details) - Forecast - Accounting Standards Update 2016-02 $ in Millions	Oct. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset recorded with adoption of new accounting standards	$ 10
Lease liability recorded with adoption of new accounting standards	$ 10

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ 6,538	$ 5,089	$ 958	$ (2,695)	$ 1,539	$ 301	$ (3,330)	$ (5,662)	$ 9,890	$ (7,152)	$ (9,486)
Denominator:
Weighted average basic shares (in shares)									11,571	11,507	11,453
Dilutive effect of restricted stock units (in shares)									63	0	0
Weighted average diluted shares with assumed conversions (in shares)									11,634	11,507	11,453
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.56	$ 0.44	$ 0.08	$ (0.23)	$ 0.13	$ 0.03	$ (0.29)	$ (0.49)	$ 0.85	$ (0.62)	$ (0.83)
Diluted (in dollars per share)	$ 0.56	$ 0.44	$ 0.08	$ (0.23)	$ 0.13	$ 0.03	$ (0.29)	$ (0.49)	$ 0.85	$ (0.62)	$ (0.83)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Subparagraph (d)
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
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+ Details

- Definition

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

+ References + Details

Detail of Selected Balance Sheet Accounts - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 157	$ 179
Bad debt expense	233	111	$ (160)
Uncollectible accounts written off, net of recoveries	(81)	(125)
Change due to foreign currency translation	(8)	(8)
Balance at end of period	$ 301	$ 157	$ 179

Detail of Selected Balance Sheet Accounts - Components of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials, parts and subassemblies	$ 31,781	$ 24,563
Work-in-progress	1,100	1,080
Provision for excess and obsolete inventory	(3,679)	(4,291)
Total inventories	$ 29,202	$ 21,352

Detail of Selected Balance Sheet Accounts - Schedule of Property, Plant And Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 256,233	$ 254,225
Less: Accumulated depreciation	(135,421)	(125,461)
Total property, plant and equipment, net	120,812	128,764
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	21,963	22,207
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 122,404	123,320
Buildings and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Asset lives	3 years
Buildings and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Asset lives	39 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 106,137	104,542
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Asset lives	3 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Asset lives	15 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 3,611	3,799
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Asset lives	3 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Asset lives	10 years
Construction in process
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 2,118	$ 357

Detail of Selected Balance Sheet Accounts - Narrative (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 256,233,000	$ 254,225,000
Depreciation	11,900,000	12,700,000	$ 12,400,000
Assets under capital leases
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 0	$ 0

Detail of Selected Balance Sheet Accounts - Activity in Warranty Accrual (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 2,604	$ 3,174
Increase to warranty expense	3,004	2,031
Deduction for warranty charges	(2,649)	(2,574)
Change due to foreign currency translation	(13)	(27)
Balance at end of period	$ 2,946	$ 2,604

Revenue - Revenue Recognition (Details) - Revenue from Contract with Customer Benchmark	12 Months Ended
	Sep. 30, 2019
Transferred over Time
Revenue from External Customer [Line Items]
Revenue from sales orders, percentage	94.00%
Transferred at Point in Time
Revenue from External Customer [Line Items]
Revenue from sales orders, percentage	6.00%

Revenue - Performance Obligations (Details) $ in Millions	Sep. 30, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 419.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 345.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year

Revenue - Contract Estimates (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Change in contract estimates related to projects in progress	$ 5.1	$ 3.9

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Contract assets	$ 55,374	$ 82,545
Contract liabilities	(71,464)	(43,174)
Net contract asset (liability)	(16,090)	39,371
Revenue recognized related to contract liabilities	39,500
Retention amounts included in accounts receivable	5,600	$ 4,200
Retention amounts expected to be collected in next twelve months	$ 4,900

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 517,180	$ 448,716	$ 395,911
Oil and gas
Disaggregation of Revenue [Line Items]
Revenue	242,291
Petrochemical
Disaggregation of Revenue [Line Items]
Revenue	93,391
Electric utility
Disaggregation of Revenue [Line Items]
Revenue	84,993
Traction power
Disaggregation of Revenue [Line Items]
Revenue	26,781
All others
Disaggregation of Revenue [Line Items]
Revenue	69,724
United States
Disaggregation of Revenue [Line Items]
Revenue	406,609	335,743	279,352
Canada
Disaggregation of Revenue [Line Items]
Revenue	64,326	42,235	45,540
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenue	32,166
Asia/Pacific
Disaggregation of Revenue [Line Items]
Revenue	11,405
Mexico, Central and South America
Disaggregation of Revenue [Line Items]
Revenue	$ 2,674	$ 8,734	$ 19,309

Goodwill and Intangible Assets - Narrative (Details) - USD ($)			1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 30, 2013	Aug. 07, 2006	Apr. 30, 2017	Dec. 31, 2012	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Goodwill					$ 1,000,000
Impairment of goodwill					0	$ 0	$ 0
Amortization of intangible assets					177,000	205,000	355,000
Cash received from amended supply agreement	$ 10,000,000		$ 2,300,000		0	0	2,333,000
Additional amount paid on execution of agreement	$ 7,000,000
Acquired finite-lived intangible assets, period	3 years
Deferred credit									$ 8,100,000
Deferred credit amortization period				4 years
Gains in other income					0	747,000	2,029,000
Other Income
Finite-Lived Intangible Assets [Line Items]
Gains in other income						500,000	$ 2,000,000	$ 2,000,000
Purchased Technology
Finite-Lived Intangible Assets [Line Items]
Purchased technology					$ 334,000	$ 510,000
Supply Agreement
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible asset		15 years

Goodwill and Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - Purchased Technology - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 11,749	$ 11,749
Accumulated Amortization	(11,415)	(11,239)
Net Carrying Value	$ 334	$ 510

Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands	Sep. 30, 2019 USD ($)
September 30,
2020	$ 177
2021	157
2022	0
2023	0
2024	$ 0

Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Debt Disclosure [Abstract]
Industrial development revenue bonds	$ 1,200	$ 1,600
Less: current portion	(400)	(400)
Total long-term debt	$ 800	$ 1,200

Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Year Ending September 30,
2020	$ 400
2021	400
2022	0
2023	0
2024	0
Total long-term debt maturities	$ 800	$ 1,200

Long-Term Debt - Narrative (Details)	Sep. 27, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Oct. 31, 2001 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility borrowings, outstanding amount		$ 1,200,000	$ 1,600,000
U.S. Revolver \| Amended And Restated Credit Agreement
Line of Credit Facility [Line Items]
Revolving credit facility	$ 75,000,000
Revolving credit facility borrowings, outstanding amount		0
Amount of credit facility remaining borrowing capacity		61,600,000
Revolving credit facility, increase (up to)	50,000,000.0
Revolving credit facility, minimum of (or less)	$ 15,000,000
Debt covenant, consolidated leverage ratio (greater than)	3.0
Debt covenant, consolidated interest coverage ratio (less than)	3.0
Cash collateral pledged balance	$ 30,000,000
Restricted cash			$ 25,100,000
Cash collateral percent of outstanding debt (at least)	102.00%
Percentage of voting capital stock pledged as collateral	100.00%
Non-domestic subsidiaries of voting capital stock	65.00%
U.S. Revolver \| Amended And Restated Credit Agreement \| Federal Funds Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
U.S. Revolver \| Amended And Restated Credit Agreement \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
U.S. Revolver \| Financial Standby Letter of Credit \| Amended And Restated Credit Agreement
Line of Credit Facility [Line Items]
Guarantee liability		13,400,000
Industrial Development Revenue Bonds
Line of Credit Facility [Line Items]
Borrowings				$ 8,000,000
Reimbursement agreement requires annual redemptions		$ 400,000
Interest rate		1.69%
Minimum \| U.S. Revolver \| Amended And Restated Credit Agreement \| Eurocurrency Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Minimum \| U.S. Revolver \| Amended And Restated Credit Agreement \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	(0.25%)
Maximum \| U.S. Revolver \| Amended And Restated Credit Agreement \| Eurocurrency Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%
Maximum \| U.S. Revolver \| Amended And Restated Credit Agreement \| Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.25%

Commitments and Contingencies - Schedule of Future Minimum Annual Rental Commitments Under Leases (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Operating Leases Payments
2020	$ 3,040
2021	2,859
2022	2,612
2023	1,508
2024	85
Thereafter	0
Total lease commitments	10,104
Operating Sublease Income
2020	(877)
2021	(1,028)
2022	(1,159)
2023	(943)
2024	0
Thereafter	0
Total lease commitments	$ (4,007)

Commitments and Contingencies - Schedule of Rental Expense and Sublease Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Lease expense	$ 3,493	$ 3,432	$ 3,734
Sublease income from third parties	$ (1,280)	$ (1,487)	$ (1,389)

Commitments and Contingencies - Narrative (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Guarantor Obligations [Line Items]
Rent expense	$ 3,493,000	$ 3,432,000	$ 3,734,000
Additional bonding capacity	579,500,000
Loss contingency, estimate of actual or projected loss	2,000,000
Probable liquidated damages	900,000
Failure to meet contractual commitments, reduction to revenue	800,000
Facility Agreement \| Powell (UK) Limited
Guarantor Obligations [Line Items]
Guarantee liability	5,700,000
Revolving credit facility	11,068,200
Amount of credit facility remaining borrowing capacity	5,400,000
Surety Bond
Guarantor Obligations [Line Items]
Guarantee liability	170,500,000
Canada
Guarantor Obligations [Line Items]
Rent expense	$ 700,000	$ 800,000

Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Current:
Federal	$ 1,350	$ 973	$ (7,782)
State	186	201	(101)
Foreign	88	449	350
Current income tax provision	1,624	1,623	(7,533)
Deferred:
Federal	366	(1,834)	392
State	457	(247)	(515)
Foreign	(3)	(89)	223
Deferred income tax provision	820	(2,170)	100
Total income tax provision (benefit)	$ 2,444	$ (547)	$ (7,433)

Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
U.S.	$ 11,859	$ (2,103)	$ (19,932)
Other than U.S.	475	(5,596)	3,013
Income (loss) before income taxes	$ 12,334	$ (7,699)	$ (16,919)

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Statutory rate	21.00%	25.00%	35.00%
State income taxes, net of federal benefit	4.00%	(2.00%)	2.00%
Research and development credit	(7.00%)	9.00%	9.00%
Foreign rate differential	1.00%	1.00%	2.00%
Foreign withholding	1.00%	(3.00%)	0.00%
Foreign valuation allowance	(2.00%)	(20.00%)	2.00%
NOL carryback impact on deductions	(0.00%)	(0.00%)	(4.00%)
Deferred tax rate differential	0.00%	(4.00%)	0.00%
Other	2.00%	1.00%	(2.00%)
Effective rate	20.00%	7.00%	44.00%

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Nov. 30, 2018
Income Tax Contingency [Line Items]
Blended tax rate		24.50%
Effective tax rate	20.00%	7.00%	44.00%
Tax expense		$ 500
Undistributed earnings of foreign subsidiaries	$ 19,400
Tax credit carryforwards	2,000
Valuation allowance related to deferred tax assets	8,231	$ 9,597
Decrease in unrecognized tax benefits due to expiration of certain federal statutes of limitations	900
Refund related to U.S. federal carryback claim				$ 6,600
R&D Tax Credit
Income Tax Contingency [Line Items]
Retroactive tax benefit			$ 900
International
Income Tax Contingency [Line Items]
Operating loss carryforwards	$ 2,900

Income Taxes - Schedule of Components of Deferred Income Tax Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Gross assets	$ 18,486	$ 22,480
Gross liabilities and valuation allowance	13,369	16,543
Net deferred income tax asset	$ 5,117	$ 5,937

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Deferred Tax Assets:
Net operating loss	$ 10,636	$ 13,444
Credit carryforwards	2,895	3,987
Deferred compensation	1,590	1,456
Uniform capitalization and inventory	983	1,043
Stock-based compensation	744	879
Reserve for accrued employee benefits	752	791
Warranty accrual	341	448
Accrued legal	115	154
Postretirement benefits liability	110	112
Goodwill	44	54
Other	276	112
Deferred tax assets	18,486	22,480
Deferred Tax Liabilities:
Depreciation and amortization	(5,138)	(6,946)
Deferred tax liabilities	(5,138)	(6,946)
Less: valuation allowance	(8,231)	(9,597)
Net deferred income tax asset	$ 5,117	$ 5,937

Income Taxes - Schedule of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 9,597	$ 8,767	$ 8,439
Charged to cost and expenses	(209)	1,575	(260)
Charged to other accounts	(1,157)	(745)	588
Ending balance	$ 8,231	$ 9,597	$ 8,767

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of period	$ 1,854	$ 1,219	$ 1,046
Increases related to tax positions taken during the current period	240	180	179
Increases related to tax positions taken during a prior period	609	455	338
Decreases related to expiration of statute of limitations	0	0	0
Decreases related to settlement with taxing authorities	0	0	(344)
Balance at end of period	$ 2,703	$ 1,854	$ 1,219

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Defined contribution plan recognized expenses	$ 3.2	$ 2.8	$ 2.8
Deferred compensation, retirement age	65 years
Deferred compensation requisite service period	10 years
Deferred compensation recorded liability	$ 0.2
Cash surrender value of life insurance	$ 3.2
Maximum
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Age older but less than	65 years
Retiree medical plan
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred compensation requisite service period	10 years
Unfunded liability	$ 0.9	0.9
Retiree medical plan \| Minimum
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Age older but less than	55 years
Retiree medical plan \| Maximum
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Net periodic postretirement benefit cost (less than)	$ 0.1	$ 0.1	$ 0.1
Deferred compensation plan
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Percentage of employee based salary permitted for deferral under the plan	50.00%
Percentage of employee annual bonus permitted for deferral under the plan	100.00%
Deferred compensation expense adjustment	$ 0.2
Deferred compensation plan assets	6.8
Deferred compensation liability	6.2
Deferred compensation plan \| Company owned life insurance policies
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred compensation plan assets	$ 6.7

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended				12 Months Ended
	Feb. 28, 2019	Apr. 30, 2018	Feb. 28, 2018	Feb. 28, 2014	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance (in shares)					750,000
Number of shares available for grant (in shares)					554,801
2014 Non-Employee Director Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance (in shares)				150,000	56,600
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock outstanding (in shares)					131,850	190,500
Compensation expense					$ 3.3	$ 2.7	$ 2.0
Amounts not yet recognized related to non-vested stock totaled					$ 1.0	1.2
Weighted average remaining contractual life					1 year 5 months 9 days
Restricted Stock Units (RSUs) \| 2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					3 years
Restricted Stock Units (RSUs) \| 2014 Equity Incentive Plan \| Time Based Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					3 years
Restricted Stock Units (RSUs) \| 2014 Equity Incentive Plan \| Performance 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					$ 0.5	$ 0.5	$ 0.7
Weighted average remaining contractual life					6 months
Restricted Stock \| Vesting of First Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					50.00%
Restricted Stock \| Vesting of Second Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					50.00%
Restricted Stock \| 2014 Non-Employee Director Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock outstanding (in shares)					7,000	7,000
Maximum number of shares granted to any individual (in shares)				12,000
Number of shares issued to any individual (in shares)				4,000
Restricted stock issuable to eligible Board of Directors members annually (in shares)				2,000
Shares issued under the plan (in shares)	7,000	1,000	6,000
Shares issued, price per share (in dollars per share)	$ 34.02	$ 27.15	$ 27.88
Common Stock \| 2014 Non-Employee Director Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under the plan (in shares)	7,000
Minimum \| 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					50.00%
Minimum \| Restricted Stock Units (RSUs) \| 2014 Equity Incentive Plan \| Performance Based Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target RSUs granted range					40.00%
Maximum \| 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%
Maximum \| Restricted Stock Units (RSUs) \| 2014 Equity Incentive Plan \| Performance Based Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target RSUs granted range					50.00%

Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)	12 Months Ended
	Sep. 30, 2019 $ / shares shares
Number of Restricted Stock Units
Outstanding Beginning Balance (in shares) \| shares	190,500
Granted (in shares) \| shares	77,150
Vested (in shares) \| shares	(117,684)
Forfeited (in shares) \| shares	(18,116)
Outstanding Ending Balance (in shares) \| shares	131,850
Weighted Average Grant Value Per Share
Outstanding Beginning Balance (in dollars per share) \| $ / shares	$ 33.73
Granted (in dollars per share) \| $ / shares	34.89
Vested (in dollars per share) \| $ / shares	33.57
Forfeited (in dollars per share) \| $ / shares	33.75
Outstanding Ending Balance (in dollars per share) \| $ / shares	$ 33.76

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Assets:
Cash and cash equivalents	$ 118,639	$ 36,584
Short-term investments	6,042	13,170
Restricted cash		25,141
Other assets	6,825	6,817
Liabilities:
Deferred compensation	6,249	5,644
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents	118,639	36,584
Short-term investments	6,042	13,170
Restricted cash		25,141
Other assets	0	0
Liabilities:
Deferred compensation	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Short-term investments	0	0
Restricted cash		0
Other assets	6,825	6,817
Liabilities:
Deferred compensation	6,249	5,644
Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	0	0
Short-term investments	0	0
Restricted cash		0
Other assets	0	0
Liabilities:
Deferred compensation	$ 0	$ 0

Geographic Information - Schedule of Revenues from External Customers by Geographical Areas (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 517,180	$ 448,716	$ 395,911
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	406,609	335,743	279,352
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	64,326	42,235	45,540
Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	18,420	38,490	26,639
Far East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	11,405	12,976	3,877
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	13,746	10,538	21,194
Mexico, Central and South America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 2,674	$ 8,734	$ 19,309

Geographic Information - Schedule of Long-Lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 120,812	$ 128,764
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	71,325	76,016
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	44,933	48,126
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 4,554	$ 4,622

Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 148,504	$ 135,588	$ 123,737	$ 109,351	$ 134,897	$ 122,130	$ 101,505	$ 90,184	$ 517,180	$ 448,716
Gross profit	28,555	23,715	20,075	14,631	24,005	18,375	12,421	10,554	86,976	65,355	$ 50,769
Net income (loss)	$ 6,538	$ 5,089	$ 958	$ (2,695)	$ 1,539	$ 301	$ (3,330)	$ (5,662)	$ 9,890	$ (7,152)	$ (9,486)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.56	$ 0.44	$ 0.08	$ (0.23)	$ 0.13	$ 0.03	$ (0.29)	$ (0.49)	$ 0.85	$ (0.62)	$ (0.83)
Diluted (in dollars per share)	$ 0.56	$ 0.44	$ 0.08	$ (0.23)	$ 0.13	$ 0.03	$ (0.29)	$ (0.49)	$ 0.85	$ (0.62)	$ (0.83)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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

+ References + Details

Subsequent Events (Details) - $ / shares		12 Months Ended
Subsequent Events (Details) - $ / shares	Nov. 04, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Subsequent Event [Line Items]
Cash dividends declared (in dollars per share)		$ 1.04	$ 1.04	$ 1.04
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared (in dollars per share)	$ 0.26