Document and Entity Information
Document and Entity Information | 3 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | MATTHEWS INTERNATIONAL CORP |
Entity Central Index Key | 63,296 |
Current Fiscal Year End Date | --09-30 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 32,291,571 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 60,142 | $ 57,515 |
Accounts receivable, net | 320,115 | 319,566 |
Inventories | 179,336 | 171,445 |
Other current assets | 53,784 | 46,533 |
Total current assets | 613,377 | 595,059 |
Investments | 49,946 | 37,667 |
Property, plant and equipment: Cost | 596,107 | 570,879 |
Less accumulated depreciation | (342,263) | (335,346) |
Property, plant, and equipment, net | 253,844 | 235,533 |
Deferred income taxes | 1,890 | 2,456 |
Other assets | 58,887 | 51,758 |
Goodwill | 948,687 | 897,794 |
Other intangible assets, net | 455,744 | 424,382 |
Total assets | 2,382,375 | 2,244,649 |
Current liabilities: | ||
Long-term debt, current maturities | 31,390 | 29,528 |
Trade accounts payable | 57,267 | 66,607 |
Accrued compensation | 45,471 | 62,210 |
Accrued income taxes | 31,211 | 21,386 |
Other current liabilities | 127,332 | 105,401 |
Total current liabilities | 292,671 | 285,132 |
Long-term debt | 994,255 | 881,602 |
Accrued pension | 104,341 | 103,273 |
Postretirement benefits | 19,366 | 19,273 |
Deferred income taxes | 101,449 | 139,430 |
Other liabilities | 39,664 | 25,680 |
Total liabilities | 1,551,746 | 1,454,390 |
Shareholders' equity-Matthews: | ||
Common stock | 36,334 | 36,334 |
Additional paid-in capital | 120,294 | 123,432 |
Retained earnings | 977,939 | 948,830 |
Accumulated other comprehensive loss | (143,904) | (154,115) |
Treasury stock, at cost | (160,577) | (164,774) |
Total shareholders' equity-Matthews | 830,086 | 789,707 |
Noncontrolling interests | 543 | 552 |
Total shareholders' equity | 830,629 | 790,259 |
Total liabilities and shareholders' equity | $ 2,382,375 | $ 2,244,649 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 369,454 | $ 348,998 |
Cost of sales | (238,755) | (221,731) |
Gross profit | 130,699 | 127,267 |
Selling and administrative expenses | (112,775) | (108,204) |
Operating profit | 17,924 | 19,063 |
Investment income | 467 | 337 |
Interest expense | (7,801) | (6,148) |
Other income (deductions), net | (659) | (555) |
Income before income taxes | 9,931 | 12,697 |
Income tax benefit (provision) | 25,227 | (2,489) |
Net income | 35,158 | 10,208 |
Net loss attributable to noncontrolling interests | 22 | 114 |
Net income attributable to Matthews shareholders | $ 35,180 | $ 10,322 |
Earnings per share attributable to Matthews shareholders: | ||
Basic (in dollars per share) | $ 1.11 | $ 0.32 |
Diluted (in dollars per share) | $ 1.10 | $ 0.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss): | $ 35,158 | $ 10,208 |
Other comprehensive income (loss) (OCI), net of tax: | ||
Foreign currency translation adjustment | 7,611 | (31,283) |
Pension plans and other postretirement benefits | 1,018 | 1,536 |
Unrecognized gain on derivatives: | ||
Net change from periodic revaluation | 1,633 | 5,100 |
Net amount reclassified to earnings | (38) | 493 |
Net change in unrecognized gain on derivatives | 1,595 | 5,593 |
OCI, net of tax | 10,224 | (24,154) |
Comprehensive income (loss) | 45,382 | (13,946) |
Noncontrolling Interest | ||
Net income (loss): | (22) | (114) |
Other comprehensive income (loss) (OCI), net of tax: | ||
Foreign currency translation adjustment | 13 | 59 |
Pension plans and other postretirement benefits | 0 | 0 |
Unrecognized gain on derivatives: | ||
Net change from periodic revaluation | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 |
Net change in unrecognized gain on derivatives | 0 | 0 |
OCI, net of tax | 13 | 59 |
Comprehensive income (loss) | (9) | (55) |
Matthews | ||
Net income (loss): | 35,180 | 10,322 |
Other comprehensive income (loss) (OCI), net of tax: | ||
Foreign currency translation adjustment | 7,598 | (31,342) |
Pension plans and other postretirement benefits | 1,018 | 1,536 |
Unrecognized gain on derivatives: | ||
Net change from periodic revaluation | 1,633 | 5,100 |
Net amount reclassified to earnings | (38) | 493 |
Net change in unrecognized gain on derivatives | 1,595 | 5,593 |
OCI, net of tax | 10,211 | (24,213) |
Comprehensive income (loss) | $ 45,391 | $ (13,891) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non- controlling interests |
Balance at Sep. 30, 2016 | $ 709,334 | $ 36,334 | $ 117,088 | $ 896,224 | $ (181,868) | $ (159,113) | $ 669 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,208 | 10,322 | (114) | ||||
Minimum pension liability | 1,536 | 1,536 | |||||
Translation adjustment | (31,283) | (31,342) | 59 | ||||
Fair value of derivatives | 5,593 | 5,593 | 0 | ||||
Comprehensive income (loss) | (13,946) | (55) | |||||
Stock-based compensation | 6,097 | 6,097 | |||||
Purchase of treasury stock | (6,499) | (6,499) | |||||
Issuance of treasury stock | 14 | (7,893) | 7,907 | ||||
Dividends | (5,389) | (5,389) | |||||
Balance at Dec. 31, 2016 | 689,611 | 36,334 | 115,292 | 901,157 | (206,081) | (157,705) | 614 |
Balance at Sep. 30, 2017 | 790,259 | 36,334 | 123,432 | 948,830 | (154,115) | (164,774) | 552 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 35,158 | 35,180 | (22) | ||||
Minimum pension liability | 1,018 | 1,018 | |||||
Translation adjustment | 7,611 | 7,598 | 13 | ||||
Fair value of derivatives | 1,595 | 1,595 | 0 | ||||
Comprehensive income (loss) | 45,382 | (9) | |||||
Stock-based compensation | 5,474 | 5,474 | |||||
Purchase of treasury stock | (4,415) | (4,415) | |||||
Issuance of treasury stock | 0 | (8,922) | 8,922 | ||||
Cancellations of treasury stock | 0 | 310 | (310) | ||||
Dividends | (6,071) | (6,071) | |||||
Balance at Dec. 31, 2017 | $ 830,629 | $ 36,334 | $ 120,294 | $ 977,939 | $ (143,904) | $ (160,577) | $ 543 |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Purchase of treasury stock (in shares) | 75,765 | 95,229 |
Issuance of treasury stock (in shares) | 223,971 | 205,623 |
Cancellations of treasury stock (in shares) | 5,214 | 0 |
Dividends, per share (in dollars per share) | $ 0.19 | $ 0.17 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 35,158 | $ 10,208 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,238 | 15,159 |
Stock-based compensation expense | 5,474 | 6,097 |
Deferred tax benefit | (38,052) | (1,861) |
(Gain) loss on sale of assets | (576) | 55 |
Unrealized gain on investments | (489) | (809) |
Changes in working capital items | (9,999) | (12,808) |
Increase in other assets | (5,336) | (1,177) |
Decrease in other liabilities | (1,931) | (928) |
Increase in pension and postretirement benefits | 2,833 | 3,318 |
Other operating activities, net | 3,317 | (1,208) |
Net cash provided by operating activities | 7,637 | 16,046 |
Cash flows from investing activities: | ||
Capital expenditures | (11,647) | (5,069) |
Acquisitions, net of cash acquired | (85,964) | (10,733) |
Proceeds from sale of assets | 1,163 | 7 |
Purchases of investments | (11,730) | 0 |
Net cash used in investing activities | (108,178) | (15,795) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 509,622 | 133,454 |
Payments on long-term debt | (396,321) | (67,533) |
Proceeds from the exercise of stock options | 0 | 14 |
Purchases of treasury stock | (4,415) | (6,499) |
Dividends | (6,071) | (5,389) |
Net cash provided by financing activities | 102,815 | 54,047 |
Effect of exchange rate changes on cash | 353 | (3,602) |
Net change in cash and cash equivalents | 2,627 | 50,696 |
Non-cash investing and financing activities: | ||
Acquisition of long-term asset under financing arrangement | $ 14,544 | $ 0 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Dec. 31, 2017 | |
Nature of Operations [Abstract] | |
Nature of Operations | Nature of Operations Matthews International Corporation ("Matthews" or the "Company"), founded in 1850 and incorporated in Pennsylvania in 1902, is a global provider of brand solutions, memorialization products and industrial technologies. Brand solutions include brand development, deployment and delivery (consisting of brand management, pre-media services, printing plates and cylinders, and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets and cremation equipment primarily for the cemetery and funeral home industries. Industrial technologies include marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. The Company has facilities in the United States, Europe, Asia, Canada, Australia, and Central and South America. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information for commercial and industrial companies and the instructions to Form 10‑Q and Rule 10‑01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2018 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10‑K for the year ended September 30, 2017 . The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control. Investments in certain companies over which the Company exerts significant influence, but does not control the financial and operating decisions, are accounted for as equity method investments. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. All intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements: Issued In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-12, Derivatives and Hedging (Topic 815) , which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for the Company beginning in fiscal year 2020. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) , which provides new guidance intended to clarify and reduce complexities in applying stock compensation guidance to a change to the terms or conditions of share-based payment awards. This ASU is effective for the Company beginning in fiscal year 2019. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which provides new guidance intended to improve the disclosure requirements related to the service cost component of net benefit cost. This ASU is effective for the Company beginning in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Note 2. Basis of Presentation (continued) In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides new guidance intended to make the definition of a business more operable and allow for more consistency in application. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , which provides new guidance intended to clarify the presentation of certain cash flow items including debt prepayments, debt extinguishment costs, contingent considerations payments, and insurance proceeds, among other things. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019, and early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This ASU requires lessees to recognize assets and liabilities that arise from financing and operating leases on the Consolidated Balance Sheet. The implementation of this standard will require application of the new guidance at the beginning of the earliest comparative period presented, once adopted. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2020, and does allow for early adoption. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which provides new guidance intended to improve the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 . This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. The FASB issued ASU 2015-14 in August 2015 which resulted in a deferral of the original effective date of ASU 2014-09. During 2016 and 2017, the FASB issued six ASUs that address implementation issues and correct or improve certain aspects of the new revenue recognition guidance, including ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Identifying Performance Obligations and Licensing , ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) and ASU 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) . These ASUs do not change the core principles in the revenue recognition guidance outlined above. ASU No. 2014-09 and the related ASUs referenced above are effective for Matthews beginning October 1, 2018. The Company has completed its initial detailed assessment of all global revenue arrangements and related impact of the new standard compared to historical accounting policies on a representative sample of contracts and it does not expect the adoption of these ASUs will have a material impact on its consolidated financial statements. The Company is continuing to assess the ultimate impact that the adoption of this standard will have on its consolidated financial statements and related disclosure. In addition, the Company is evaluating the changes that will be required in its internal controls as a result of the adoption of this new standard. The Company is planning to adopt the provisions of these ASUs using the modified retrospective method for existing transactions on October 1, 2018. Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which provides new guidance intended to simplify the subsequent measurement of goodwill and removing Step 2 from the goodwill impairment process. The Company has early adopted this ASU in the first quarter ended December 31, 2017. The adoption of this ASU had no impact on the Company's consolidated financial statements, but modifies the methodology to assess and measure goodwill impairment prospectively. Note 2. Basis of Presentation (continued) In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The Company early adopted this ASU in the fourth quarter of fiscal 2017, which resulted in a reduction to income tax expense of $1,234 , and a corresponding favorable impact on diluted earnings per share of $0.04 , both of which have been retroactively included in the first quarter results for fiscal 2017. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which provides new guidance to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this ASU in the first quarter ended December 31, 2017 had no impact on the Company's consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level fair value hierarchy is used to prioritize the inputs used in valuations, as defined below: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: December 31, 2017 September 30, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 6,573 $ — $ 6,573 $ — $ 3,990 $ — $ 3,990 Equity and fixed income mutual funds — 22,029 — 22,029 — 21,649 — 21,649 Other investments — 5,895 — 5,895 — 5,810 — 5,810 Total assets at fair value $ — $ 34,497 $ — $ 34,497 $ — $ 31,449 $ — $ 31,449 Liabilities: Derivatives (1) $ — $ — $ — $ — $ — $ 31 $ — $ 31 Total liabilities at fair value $ — $ — $ — $ — $ — $ 31 $ — $ 31 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, 2017 September 30, 2017 Raw materials $ 30,622 $ 29,396 Work in process 64,645 61,917 Finished goods 84,069 80,132 $ 179,336 $ 171,445 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company has a domestic credit facility with a syndicate of financial institutions that includes a $900,000 senior secured revolving credit facility and a $250,000 senior secured amortizing term loan. The term loan requires scheduled principal payments of 5.0% of the outstanding principal in year one, 7.5% in year two, and 10.0% in years three through five, payable in quarterly installments. The balance of the revolving credit facility and the term loan are due on the maturity date of April 26, 2021 . Borrowings under both the revolving credit facility and the term loan bear interest at LIBOR plus a factor ranging from 0.75% to 2.00% ( 1.25% at December 31, 2017 ) based on the Company's secured leverage ratio. The secured leverage ratio is defined as net secured indebtedness divided by adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). The Company is required to pay an annual commitment fee ranging from 0.15% to 0.25% (based on the Company's leverage ratio) of the unused portion of the revolving credit facility. The domestic credit facility requires the Company to maintain certain leverage and interest coverage ratios. A portion of the facility (not to exceed $35,000 ) is available for the issuance of trade and standby letters of credit. Outstanding borrowings on the revolving credit facility at December 31, 2017 and September 30, 2017 were $337,000 and $525,000 , respectively. Outstanding borrowings on the term loan at December 31, 2017 and September 30, 2017 were $227,591 and $232,479 , respectively. The weighted-average interest rate on outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps) at December 31, 2017 and December 31, 2016 was 2.93% and 2.65% , respectively. In December 2017, the Company issued $300,000 aggregate principal amount of 5.25% senior unsecured notes due December 1, 2025 (the "2025 Senior Notes"). The 2025 Senior Notes bear interest at a rate of 5.25% per annum with interest payable semi-annually in arrears on June 1 and December 1 of each year beginning on June 1, 2018. The Company's obligations under the 2025 Senior Notes are guaranteed by certain of the Company's direct and indirect wholly-owned domestic subsidiaries. The Company is subject to certain covenants and other restrictions in connection with the 2025 Senior Notes. The proceeds from the 2025 Senior Notes were used primarily to reduce indebtedness under the Company's domestic credit facility. The Company incurred direct financing fees and costs in connection with 2025 Senior Notes of $4,068 , which will be deferred and amortized over the term of the 2025 Senior Notes. The Company has a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions, which matures on April 4, 2019. Under the Securitization Facility, the Company and certain of its domestic subsidiaries sell, on a continuous basis without recourse, their trade receivables to Matthews Receivables Funding Corporation, LLC (“Matthews RFC”), a wholly-owned bankruptcy-remote subsidiary of the Company. Matthews RFC in turn assigns a collateral interest in these receivables to certain financial institutions, and then may borrow funds under the Securitization Facility. The Securitization Facility does not qualify for sale treatment. Accordingly, the trade receivables and related debt obligations remain on the Company's Consolidated Balance Sheet. Borrowings under the Securitization Facility bear interest at LIBOR plus 0.75% . The Company is required to pay an annual commitment fee ranging from 0.25% to 0.35% of the unused portion of the Securitization Facility. Outstanding borrowings under the Securitization Facility at December 31, 2017 and September 30, 2017 were $101,400 and $95,825 , respectively. At December 31, 2017 , the interest rate on borrowings under this facility was 2.31% . Note 5. Debt (continued) The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: December 31, 2017 September 30, 2017 Pay fixed swaps - notional amount $ 409,375 $ 414,063 Net unrealized gain (loss) $ 6,573 $ 3,959 Weighted-average maturity period (years) 3.1 3.3 Weighted-average received rate 1.56 % 1.23 % Weighted-average pay rate 1.34 % 1.34 % The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. The interest rate swaps have been designated as cash flow hedges of future variable interest payments, which are considered probable of occurring. Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective. The fair value of the interest rate swaps reflected an unrealized gain of $6,573 ( $4,010 after tax) at December 31, 2017 and an unrealized gain, net of unrealized losses, of $3,959 ( $2,415 after tax) at September 30, 2017 . The net unrealized gain is included in shareholders' equity as part of accumulated other comprehensive income ("AOCI"). Assuming market rates remain constant with the rates at December 31, 2017 , a gain (net of tax) of approximately $1,178 included in AOCI is expected to be recognized in earnings over the next twelve months. At December 31, 2017 and September 30, 2017 , the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives December 31, 2017 September 30, 2017 Current assets: Other current assets $ 1,931 $ 1,098 Long-term assets: Other assets 4,642 2,892 Current liabilities: Other current liabilities — (7 ) Long-term liabilities: Other liabilities — (24 ) Total derivatives $ 6,573 $ 3,959 The gains recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain Recognized in Income on Derivative Amount of Gain Recognized in Income on Derivatives Three Months Ended 2017 2016 Interest rate swaps Interest expense $ 63 $ 807 Note 5. Debt (continued) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain Recognized in AOCI on Derivatives Location of Gain (Loss) Reclassified From AOCI into Income (Effective Portion*) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion*) December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Interest rate swaps $ 1,633 $ 5,100 Interest expense $ 38 $ (493 ) *There is no ineffective portion or amount excluded from effectiveness testing. The Company, through certain of its European subsidiaries, has a credit facility with a European bank, which is guaranteed by Matthews International Corporation. The maximum amount of borrowing available under this facility is €35.0 million ( $41,931 ). The credit facility matures in December 2018 and the Company intends to extend this facility. Outstanding borrowings under the credit facility totaled €26.2 million ( $31,416 ) and €22.1 million ( $26,126 ) at December 31, 2017 and September 30, 2017 , respectively. The weighted-average interest rate on outstanding borrowings under this facility at December 31, 2017 and 2016 was 2.00% and 1.75% , respectively. The Company’s German subsidiary, Matthews Europe GmbH & Co. KG, has €15.0 million ( $17,971 ) of senior unsecured notes with European banks. The notes are guaranteed by Matthews International Corporation and mature in November 2019. A portion of the notes ( €5.0 million ) have a fixed interest rate of 1.40% , and the remainder bear interest at Euro LIBOR plus 1.40% . The weighted-average interest rate on the notes at December 31, 2017 and 2016 was 1.40% . The Company, through its Italian subsidiary, Matthews International S.p.A., has several loans with various Italian banks. Outstanding borrowings on these loans totaled €2.1 million ( $2,500 ) and €2.6 million ( $3,079 ) at December 31, 2017 and September 30, 2017 , respectively. The maturity dates for these loans range from January 2018 through November 2019. Matthews International S.p.A. also has multiple on-demand lines of credit totaling €11.3 million ( $13,574 ) with the same Italian banks. Outstanding borrowings on these lines were €4.1 million ( $4,885 ) and €4.0 million ( $4,735 ) at December 31, 2017 and September 30, 2017 , respectively. The weighted-average interest rate on outstanding Matthews International S.p.A. borrowings at December 31, 2017 and 2016 was 2.27% and 1.58% , respectively. Other debt totaled $926 and $1,032 at December 31, 2017 and September 30, 2017 , respectively. The weighted-average interest rate on these outstanding borrowings was 4.62% and 5.77% at December 31, 2017 and 2016 , respectively. In September 2014, a claim was filed seeking to draw upon a letter of credit issued by the Company of £8,570,000 ( $11,564 at December 31, 2017 ) with respect to a performance guarantee on a project in Saudi Arabia. Management assessed the customer's demand to be without merit and initiated an action with the court in the United Kingdom (the "Court"). Pursuant to this action, an order was issued by the Court in January 2015 requiring that, upon receipt by the customer, the funds were to be remitted by the customer to the Court pending resolution of the dispute between the parties. As a result, the Company made payment on the draw to the financial institution for the letter of credit and the funds were ultimately received by the customer. The customer did not remit the funds to the Court as ordered. On June 14, 2016, the Court ruled completely in favor of Matthews following a trial on the merits. However, as the customer has neither yet remitted the funds nor complied with the final, un-appealed orders of the Court, it is possible the resolution of this matter could have an unfavorable financial impact on Matthews’ results of operations. The Company has determined that resolution of this matter may take an extended period of time and therefore has classified the funded letter of credit within other assets on the Consolidated Balance Sheets as of December 31, 2017 and September 30, 2017 . The Company will continue to assess collectability related to this matter as facts and circumstances evolve. As of December 31, 2017 and September 30, 2017 , the fair value of the Company's long-term debt, including current maturities, approximated the carrying value included in the Consolidated Balance Sheets. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments The Company maintains an equity incentive plan (the "2012 Equity Incentive Plan") that provides for grants of stock options, restricted shares, stock-based performance units and certain other types of stock-based awards. Under the 2012 Equity Incentive Plan, which has a ten -year term, the maximum number of shares available for grants or awards is an aggregate of 2,500,000 . At December 31, 2017 , there were 121,038 shares reserved for future issuance under the 2012 Equity Incentive Plan. The 2012 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors. With respect to outstanding restricted share grants, generally one-half of the shares vest on the third anniversary of the grant, one-quarter of the shares vest in one-third increments upon the attainment of pre-defined levels of adjusted earnings per share, and the remaining one-quarter of the shares vest in one-third increments upon attainment of pre-defined levels of appreciation in the market value of the Company's Class A Common Stock. Additionally, restricted shares cannot vest until the first anniversary of the grant date. Unvested restricted shares generally expire on the earlier of three or five years from the date of grant, upon employment termination, or within specified time limits following voluntary employment termination (with the consent of the Company), retirement or death. The Company issues restricted shares from treasury shares. For the three -month periods ended December 31, 2017 and 2016 , stock-based compensation cost totaled $5,474 and $6,097 , respectively. The three -month periods ended December 31, 2017 and 2016 included $2,850 and $3,337 of stock-based compensation cost, respectively, that was recognized at the time of grant for retirement-eligible employees. The associated future income tax benefit recognized for stock-based compensation was $1,341 and $2,378 for the three -month periods ended December 31, 2017 and 2016 , respectively. There were no stock options exercised during the three-month period ended December 31, 2017 . For the three -month period ended December 31, 2016 , the amount of cash received from the exercise of stock options was $14 . In connection with these exercises, the tax benefits realized by the Company was $3 for the three -month period ended December 31, 2016 . The intrinsic value of options (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) exercised during the three -month period ended December 31, 2016 and was $9 . The transactions for restricted stock for the three months ended December 31, 2017 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2017 501,184 $ 53.65 Granted 234,100 57.05 Vested (168,280 ) 51.54 Expired or forfeited (5,214 ) 59.51 Non-vested at December 31, 2017 561,790 $ 55.64 As of December 31, 2017 , the total unrecognized compensation cost related to unvested restricted stock was $13,338 and is expected to be recognized over a weighted average period of 1.8 years. The fair value of each restricted stock grant is estimated on the date of grant using a binomial lattice valuation model. The following table indicates the assumptions used in estimating the fair value of restricted stock granted during the three -month periods ended December 31, 2017 and 2016 . Three Months Ended 2017 2016 Expected volatility 20.5 % 20.2 % Dividend yield 1.0 % 1.1 % Average risk-free interest rate 2.0 % 1.7 % Average expected term (years) 2.1 2.1 Note 6. Share-Based Payments (continued) The risk-free interest rate is based on United States Treasury yields at the date of grant. The dividend yield is based on the most recent dividend payment and average stock price over the 12 months prior to the grant date. Expected volatilities are based on the historical volatility of the Company's stock price. The expected term for grants in the years ended September 30, 2018 , 2017 and 2016 represents an estimate of the average period of time for restricted shares to vest. The option characteristics for each grant are considered separately for valuation purposes. The Company maintains the 1994 Director Fee Plan and the Amended and Restated 2014 Director Fee Plan (collectively, the "Director Fee Plans"). There will be no further fees or share-based awards granted under the 1994 Director Fee Plan. Under the Amended and Restated 2014 Director Fee Plan, non-employee directors (except for the Chairman of the Board) each receive, as an annual retainer fee for fiscal 2018 , either cash or shares of the Company's Class A Common Stock with a value equal to $85 . The annual retainer fee for fiscal 2018 paid to a non-employee Chairman of the Board is $185 . Where the annual retainer fee is provided in shares, each director may elect to be paid these shares on a current basis or have such shares credited to a deferred stock account as phantom stock, with such shares to be paid to the director subsequent to leaving the Board. The value of deferred shares is recorded in other liabilities. A total of 16,139 shares had been deferred under the Director Fee Plans as of December 31, 2017 . Additionally, non-employee directors each receive an annual stock-based grant (non-statutory stock options, stock appreciation rights and/or restricted shares) with a value of $125 for fiscal 2018 . A total of 22,300 stock options have been granted under the Director Fee Plans. At December 31, 2017 , there were no options outstanding. Additionally, 161,724 shares of restricted stock have been granted under the Director Fee Plans, 58,574 of which were issued under the Amended and Restated 2014 Director Fee Plan. 25,157 share of restricted stock are unvested at December 31, 2017 . A total of 150,000 shares have been authorized to be issued under the Amended and Restated 2014 Director Fee Plan. |
Earnings Per Share Attributable
Earnings Per Share Attributable to Matthews' Shareholders | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Matthews' Shareholders | Earnings Per Share Attributable to Matthews' Shareholders The information used to compute earnings per share attributable to Matthews' common shareholders was as follows: Three Months Ended 2017 2016 Net income attributable to Matthews shareholders $ 35,180 $ 10,322 Weighted-average shares outstanding (in thousands): Basic shares 31,738 32,250 Effect of dilutive securities 132 198 Diluted shares 31,870 32,448 Anti-dilutive securities excluded from the dilution calculation were insignificant for the three months ended December 31, 2017 and 2016 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company provides defined benefit pension and other postretirement plans to certain employees. Net periodic pension and other postretirement benefit cost for the plans included the following: Three months ended December 31, Pension Other Postretirement 2017 2016 2017 2016 Service cost $ 2,039 $ 2,138 $ 84 $ 98 Interest cost 2,049 1,841 158 157 Expected return on plan assets (2,534 ) (2,312 ) — — Amortization: Prior service cost (35 ) (45 ) (49 ) (49 ) Net actuarial loss 1,752 2,509 — — Net benefit cost $ 3,271 $ 4,131 $ 193 $ 206 Benefit payments under the Company's principal retirement plan are made from plan assets, while benefit payments under the postretirement benefit plan are made from the Company's operating funds. Under IRS regulations, the Company is not required to make any significant contributions to its principal retirement plan in fiscal year 2018 . Contributions made and anticipated for fiscal year 2018 are as follows: Contributions Pension Other Postretirement Contributions during the three months ended December 31, 2017: Supplemental retirement plan $ 184 $ — Other postretirement plan — 437 Additional contributions expected in fiscal 2018: Supplemental retirement plan $ 582 $ — Other postretirement plan — 607 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in AOCI by component, net of tax, for the three -month periods ended December 31, 2017 and 2016 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2017 $ (43,623 ) $ (112,907 ) $ 2,415 $ (154,115 ) OCI before reclassification — 7,598 1,633 9,231 Amounts reclassified from AOCI (a) 1,018 — (b) (38 ) 980 Net current-period OCI 1,018 7,598 1,595 10,211 Balance, December 31, 2017 $ (42,605 ) $ (105,309 ) $ 4,010 $ (143,904 ) Attributable to noncontrolling interest: Balance, September 30, 2017 — $ 396 — $ 396 OCI before reclassification — 13 — 13 Net current-period OCI — 13 — 13 Balance, December 31, 2017 — $ 409 — $ 409 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2016 $ (56,050 ) $ (122,259 ) $ (3,559 ) $ (181,868 ) OCI before reclassification — (31,342 ) 5,100 (26,242 ) Amounts reclassified from AOCI (a) 1,536 — (b) 493 2,029 Net current-period OCI 1,536 (31,342 ) 5,593 (24,213 ) Balance, December 31, 2016 $ (54,514 ) $ (153,601 ) $ 2,034 $ (206,081 ) Attributable to noncontrolling interest: Balance, September 30, 2016 — $ 277 — $ 277 OCI before reclassification — 59 — 59 Net current-period OCI — 59 — 59 Balance, December 31, 2016 — $ 336 — $ 336 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 8). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 5). Note 9. Accumulated Other Comprehensive Income (continued) Reclassifications out of AOCI for the three -month periods ended December 31, 2017 and 2016 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended Three Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 84 (a) $ 94 Actuarial losses (1,752 ) (a) (2,509 ) (1,668 ) (b) (2,415 ) Income before income tax (650 ) (879 ) Income taxes $ (1,018 ) $ (1,536 ) Net income Derivatives Interest rate swap contracts $ 63 $ (807 ) Interest expense 63 (b) (807 ) Income before income tax 25 (314 ) Income taxes $ 38 $ (493 ) Net income (a) Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 8. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year. The Company's consolidated income taxes for the three months ended December 31, 2017 were a benefit of $25,227 , compared to income tax expense of $2,489 for the first three months of fiscal 2017 . The differences between the Company's fiscal 2018 first quarter effective tax rate and the fiscal 2017 first quarter effective tax rate, as well as the Company’s fiscal 2018 blended U.S. Federal statutory rate of 24.5% primarily resulted from the impacts of the U.S. tax reform enactment discussed below. The current quarter income tax benefit also reflected the impact of the realization of certain tax credits in connection with the Company's recent international structuring. The U.S. Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35.0% to 21.0% effective January 1, 2018, which results in a blended U.S. statutory tax rate of 24.5% for the Company in fiscal 2018 . The Act also requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred, and creates new taxes on certain foreign-sourced earnings. At December 31, 2017 , the Company has not finalized its accounting for the tax effects of the Act; however, as described below, management has made a reasonable estimate of the effects on existing deferred tax balances and has recorded an estimated amount for its one-time transition tax. For the items for which the Company was able to determine a reasonable estimate, a provisional net tax benefit of $24,553 was recognized, which is included entirely as a component of income tax benefit (provision) for the three months ended December 31, 2017 . The two main components of this provisional amount are discussed below. Provisional amounts Deferred tax assets and liabilities : The Company remeasured certain deferred tax assets and liabilities based on the rates at which these deferred tax amounts are expected to reverse in the future, which is generally 21.0% or 24.5% . This remeasurement resulted in a tax benefit of $38,010 being recognized during the three months ended December 31, 2017 . The Company is still analyzing certain aspects of the Act, estimating the timing of reversals, and refining its calculations, which could potentially affect the measurement of these balances, or potentially generate new deferred tax amounts. Note 10. Income Taxes (continued) Foreign tax effects : The Company recorded a provisional amount for its one-time transition tax for all of its foreign subsidiaries, resulting in an increase in income tax expense of $13,457 for the three months ended December 31, 2017 . The one-time transition tax was calculated using an estimate of the Company’s total post-1986 earnings and profits (“E&P”) that were previously deferred from U.S. income taxes. The Company has not yet finalized its calculation of the total post-1986 E&P and tax pools for its foreign subsidiaries and has not fully analyzed the state income tax effects. The calculation of the one-time transition tax is also impacted by the amount of foreign E&P held in cash and other specified assets. The tax amount may change when the Company finalizes its calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation. No additional income taxes have been provided for any remaining undistributed foreign earnings or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. The Company had unrecognized tax benefits (excluding penalties and interest) of $7,994 and $7,968 on December 31, 2017 and September 30, 2017 , respectively, which would impact the annual effective rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $3,699 in the next 12 months primarily due to the completion of an audit. The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. Total penalties and interest accrued were $1,786 and $1,779 at December 31, 2017 and September 30, 2017 , respectively. These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions. The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions. As of December 31, 2017 , the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2013 and forward United States – State 2013 and forward Canada 2013 and forward Germany 2009 and forward United Kingdom 2015 and forward Australia 2013 and forward Singapore 2013 and forward |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company manages its businesses under three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment includes brand development, deployment and delivery (consisting of brand management, pre-media services, printing plates and cylinders and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets and cremation equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. Management evaluates segment performance based on operating profit (before income taxes) and does not allocate non-operating items such as investment income, interest expense, other income (deductions), net and noncontrolling interest amongst the segments. Note 11. Segment Information (continued) Information about the Company's segments is as follows: Three Months Ended 2017 2016 Sales: SGK Brand Solutions $ 191,766 $ 175,801 Memorialization 144,889 145,622 Industrial Technologies 32,799 27,575 $ 369,454 $ 348,998 Operating profit: SGK Brand Solutions $ 3,152 $ 4,190 Memorialization 14,454 14,367 Industrial Technologies 318 506 $ 17,924 $ 19,063 |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal 2018: On November 28, 2017, the Company acquired Compass Engineering Group, Inc. ("Compass") for $49,793 (net of cash acquired, subject to a working capital true-up). Compass provides high-quality material handling control solutions and is included in the Company's Industrial Technologies segment. The preliminary purchase price allocation related to the Compass acquisition is not finalized as of December 31, 2017, and is subject to changes as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. During the first quarter of fiscal 2018, the Company completed several additional smaller acquisitions for an aggregate purchase price of $36,171 (net of cash acquired and holdback amounts, subject to working capital true-ups). These additional acquisitions strengthen the Company's operations across the SGK Brand Solutions and Memorialization segments. The preliminary purchase price allocations for the acquisitions are not finalized as of December 31, 2017 and are subject to change as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. Fiscal 2017: On March 1, 2017, the Company acquired GJ Creative Limited ("Equator") for £30.5 million ( $37,596 ) (net of cash acquired). Equator provides design expertise capable of taking brands from creation to shelf under one roof, and is included in the Company's SGK Brand Solutions segment. The preliminary purchase price allocation related to the Equator acquisition is not finalized as of December 31, 2017 , and is subject to changes as the Company obtains additional information related to working capital items, fixed assets, intangible assets, and other assets and liabilities. On February 28, 2017, the Company acquired certain net assets of RAF Technology, Inc. ("RAF") for $8,717 (net of cash acquired). RAF is a global leader in pattern and optical character recognition software, and is included in the Company's Industrial Technologies segment. The Company finalized the allocation of purchase price related to the RAF acquisition in the fourth quarter of fiscal 2017, resulting in an immaterial adjustment to certain working capital accounts. On January 13, 2017, the Company acquired VCG (Holdings) Limited ("VCG") for £8.8 million ( $10,695 ) (net of cash acquired). VCG is a leading graphics, plate-making, and creative design company and is included in the Company's SGK Brand Solutions segment. The Company finalized the allocation of purchase price related to the VCG acquisition in the first quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital and intangible asset amounts. Note 12. Acquisitions (continued) On January 3, 2017, the Company acquired A. + E. Ungricht GmbH + Co KG ("Ungricht") for €24.0 million ( $25,185 ) (net of cash acquired). Ungricht is a leading European provider of pre-press services and gravure printing forms, located in Germany, and is included in the Company's SGK Brand Solutions segment. The Company finalized the allocation of purchase price related to the Ungricht acquisition in the first quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital and intangible asset amounts. On November 30, 2016, the Company acquired Guidance Automation Limited ("Guidance") for £8.0 million ( $9,974 ) (net of cash acquired). Guidance provides technological solutions for autonomous warehouse vehicles and is included in the Company's Industrial Technologies segment. The Company finalized the allocation of purchase price related to the Guidance acquisition in the fourth quarter of fiscal 2017, resulting in an immaterial adjustment to certain working capital and intangible asset accounts. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Goodwill $ 491,895 $ 347,507 $ 69,144 $ 908,546 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2017 486,143 342,507 69,144 897,794 Additions during period 8,603 17,152 21,112 46,867 Translation and other adjustments 2,795 1,055 176 4,026 Goodwill 503,293 365,714 90,432 959,439 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at December 31, 2017 $ 497,541 $ 360,714 $ 90,432 $ 948,687 The Company performed its annual impairment review in the second quarter of fiscal 2017 and determined that estimated fair value for all reporting units exceeded carrying value, therefore no adjustments to the carrying value of goodwill were necessary. Note 13. Goodwill and Other Intangible Assets (continued) The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2017 and September 30, 2017 , respectively. Carrying Amount Accumulated Amortization Net December 31, 2017: Trade names $ 168,467 $ — * $ 168,467 Trade names 8,504 (2,284 ) 6,220 Customer relationships 364,554 (90,611 ) 273,943 Copyrights/patents/other 19,092 (11,978 ) 7,114 $ 560,617 $ (104,873 ) $ 455,744 September 30, 2017 : Trade names $ 168,467 $ — * $ 168,467 Trade names 5,522 (2,030 ) 3,492 Customer relationships 333,632 (84,560 ) 249,072 Copyrights/patents/other 14,787 (11,436 ) 3,351 *Not subject to amortization $ 522,408 $ (98,026 ) $ 424,382 The net change in intangible assets during the three months ended December 31, 2017 included the impact of foreign currency fluctuations during the period, additional amortization, and additions related to the fiscal 2018 acquisitions. Amortization expense on intangible assets was $6,681 and $4,941 for the three-month periods ended December 31, 2017 and 2016 , respectively. Amortization expense is estimated to be $22,201 for the remainder of fiscal 2018 , $27,747 in 2019 , $25,925 in 2020 , $24,350 in 2021 and $22,928 in 2022 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | Issued In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-12, Derivatives and Hedging (Topic 815) , which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for the Company beginning in fiscal year 2020. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) , which provides new guidance intended to clarify and reduce complexities in applying stock compensation guidance to a change to the terms or conditions of share-based payment awards. This ASU is effective for the Company beginning in fiscal year 2019. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which provides new guidance intended to improve the disclosure requirements related to the service cost component of net benefit cost. This ASU is effective for the Company beginning in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Note 2. Basis of Presentation (continued) In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides new guidance intended to make the definition of a business more operable and allow for more consistency in application. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , which provides new guidance intended to clarify the presentation of certain cash flow items including debt prepayments, debt extinguishment costs, contingent considerations payments, and insurance proceeds, among other things. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019, and early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This ASU requires lessees to recognize assets and liabilities that arise from financing and operating leases on the Consolidated Balance Sheet. The implementation of this standard will require application of the new guidance at the beginning of the earliest comparative period presented, once adopted. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2020, and does allow for early adoption. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which provides new guidance intended to improve the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 . This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. The FASB issued ASU 2015-14 in August 2015 which resulted in a deferral of the original effective date of ASU 2014-09. During 2016 and 2017, the FASB issued six ASUs that address implementation issues and correct or improve certain aspects of the new revenue recognition guidance, including ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Identifying Performance Obligations and Licensing , ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) and ASU 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) . These ASUs do not change the core principles in the revenue recognition guidance outlined above. ASU No. 2014-09 and the related ASUs referenced above are effective for Matthews beginning October 1, 2018. The Company has completed its initial detailed assessment of all global revenue arrangements and related impact of the new standard compared to historical accounting policies on a representative sample of contracts and it does not expect the adoption of these ASUs will have a material impact on its consolidated financial statements. The Company is continuing to assess the ultimate impact that the adoption of this standard will have on its consolidated financial statements and related disclosure. In addition, the Company is evaluating the changes that will be required in its internal controls as a result of the adoption of this new standard. The Company is planning to adopt the provisions of these ASUs using the modified retrospective method for existing transactions on October 1, 2018. Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which provides new guidance intended to simplify the subsequent measurement of goodwill and removing Step 2 from the goodwill impairment process. The Company has early adopted this ASU in the first quarter ended December 31, 2017. The adoption of this ASU had no impact on the Company's consolidated financial statements, but modifies the methodology to assess and measure goodwill impairment prospectively. Note 2. Basis of Presentation (continued) In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The Company early adopted this ASU in the fourth quarter of fiscal 2017, which resulted in a reduction to income tax expense of $1,234 , and a corresponding favorable impact on diluted earnings per share of $0.04 , both of which have been retroactively included in the first quarter results for fiscal 2017. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which provides new guidance to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this ASU in the first quarter ended December 31, 2017 had no impact on the Company's consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: December 31, 2017 September 30, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 6,573 $ — $ 6,573 $ — $ 3,990 $ — $ 3,990 Equity and fixed income mutual funds — 22,029 — 22,029 — 21,649 — 21,649 Other investments — 5,895 — 5,895 — 5,810 — 5,810 Total assets at fair value $ — $ 34,497 $ — $ 34,497 $ — $ 31,449 $ — $ 31,449 Liabilities: Derivatives (1) $ — $ — $ — $ — $ — $ 31 $ — $ 31 Total liabilities at fair value $ — $ — $ — $ — $ — $ 31 $ — $ 31 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 31, 2017 September 30, 2017 Raw materials $ 30,622 $ 29,396 Work in process 64,645 61,917 Finished goods 84,069 80,132 $ 179,336 $ 171,445 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Interest Rate Contracts | The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: December 31, 2017 September 30, 2017 Pay fixed swaps - notional amount $ 409,375 $ 414,063 Net unrealized gain (loss) $ 6,573 $ 3,959 Weighted-average maturity period (years) 3.1 3.3 Weighted-average received rate 1.56 % 1.23 % Weighted-average pay rate 1.34 % 1.34 % |
Interest Rate Swap Contracts as Reflected on Balance Sheet | At December 31, 2017 and September 30, 2017 , the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives December 31, 2017 September 30, 2017 Current assets: Other current assets $ 1,931 $ 1,098 Long-term assets: Other assets 4,642 2,892 Current liabilities: Other current liabilities — (7 ) Long-term liabilities: Other liabilities — (24 ) Total derivatives $ 6,573 $ 3,959 |
Gain (Loss) on Derivatives | The gains recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain Recognized in Income on Derivative Amount of Gain Recognized in Income on Derivatives Three Months Ended 2017 2016 Interest rate swaps Interest expense $ 63 $ 807 Note 5. Debt (continued) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain Recognized in AOCI on Derivatives Location of Gain (Loss) Reclassified From AOCI into Income (Effective Portion*) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion*) December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Interest rate swaps $ 1,633 $ 5,100 Interest expense $ 38 $ (493 ) *There is no ineffective portion or amount excluded from effectiveness testing. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Activity | The transactions for restricted stock for the three months ended December 31, 2017 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2017 501,184 $ 53.65 Granted 234,100 57.05 Vested (168,280 ) 51.54 Expired or forfeited (5,214 ) 59.51 Non-vested at December 31, 2017 561,790 $ 55.64 |
Assumptions used in Estimating Fair Value | The following table indicates the assumptions used in estimating the fair value of restricted stock granted during the three -month periods ended December 31, 2017 and 2016 . Three Months Ended 2017 2016 Expected volatility 20.5 % 20.2 % Dividend yield 1.0 % 1.1 % Average risk-free interest rate 2.0 % 1.7 % Average expected term (years) 2.1 2.1 |
Earnings Per Share Attributab26
Earnings Per Share Attributable to Matthews' Shareholders (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Information Used to Compute Earnings per Share Attributable to Matthews' Common Shareholders | The information used to compute earnings per share attributable to Matthews' common shareholders was as follows: Three Months Ended 2017 2016 Net income attributable to Matthews shareholders $ 35,180 $ 10,322 Weighted-average shares outstanding (in thousands): Basic shares 31,738 32,250 Effect of dilutive securities 132 198 Diluted shares 31,870 32,448 |
Pension and Other Postretirem27
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension and Other Postretirement Benefit Cost | Net periodic pension and other postretirement benefit cost for the plans included the following: Three months ended December 31, Pension Other Postretirement 2017 2016 2017 2016 Service cost $ 2,039 $ 2,138 $ 84 $ 98 Interest cost 2,049 1,841 158 157 Expected return on plan assets (2,534 ) (2,312 ) — — Amortization: Prior service cost (35 ) (45 ) (49 ) (49 ) Net actuarial loss 1,752 2,509 — — Net benefit cost $ 3,271 $ 4,131 $ 193 $ 206 |
Contributions Made and Anticipated for the Current Fiscal Year | Contributions made and anticipated for fiscal year 2018 are as follows: Contributions Pension Other Postretirement Contributions during the three months ended December 31, 2017: Supplemental retirement plan $ 184 $ — Other postretirement plan — 437 Additional contributions expected in fiscal 2018: Supplemental retirement plan $ 582 $ — Other postretirement plan — 607 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in AOCI by Component | The changes in AOCI by component, net of tax, for the three -month periods ended December 31, 2017 and 2016 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2017 $ (43,623 ) $ (112,907 ) $ 2,415 $ (154,115 ) OCI before reclassification — 7,598 1,633 9,231 Amounts reclassified from AOCI (a) 1,018 — (b) (38 ) 980 Net current-period OCI 1,018 7,598 1,595 10,211 Balance, December 31, 2017 $ (42,605 ) $ (105,309 ) $ 4,010 $ (143,904 ) Attributable to noncontrolling interest: Balance, September 30, 2017 — $ 396 — $ 396 OCI before reclassification — 13 — 13 Net current-period OCI — 13 — 13 Balance, December 31, 2017 — $ 409 — $ 409 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2016 $ (56,050 ) $ (122,259 ) $ (3,559 ) $ (181,868 ) OCI before reclassification — (31,342 ) 5,100 (26,242 ) Amounts reclassified from AOCI (a) 1,536 — (b) 493 2,029 Net current-period OCI 1,536 (31,342 ) 5,593 (24,213 ) Balance, December 31, 2016 $ (54,514 ) $ (153,601 ) $ 2,034 $ (206,081 ) Attributable to noncontrolling interest: Balance, September 30, 2016 — $ 277 — $ 277 OCI before reclassification — 59 — 59 Net current-period OCI — 59 — 59 Balance, December 31, 2016 — $ 336 — $ 336 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 8). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 5). |
Reclassifications out of AOCI | Reclassifications out of AOCI for the three -month periods ended December 31, 2017 and 2016 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended Three Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 84 (a) $ 94 Actuarial losses (1,752 ) (a) (2,509 ) (1,668 ) (b) (2,415 ) Income before income tax (650 ) (879 ) Income taxes $ (1,018 ) $ (1,536 ) Net income Derivatives Interest rate swap contracts $ 63 $ (807 ) Interest expense 63 (b) (807 ) Income before income tax 25 (314 ) Income taxes $ 38 $ (493 ) Net income (a) Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 8. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Tax Years Subject to Examination | As of December 31, 2017 , the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2013 and forward United States – State 2013 and forward Canada 2013 and forward Germany 2009 and forward United Kingdom 2015 and forward Australia 2013 and forward Singapore 2013 and forward |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Information About the Company's Segments | Information about the Company's segments is as follows: Three Months Ended 2017 2016 Sales: SGK Brand Solutions $ 191,766 $ 175,801 Memorialization 144,889 145,622 Industrial Technologies 32,799 27,575 $ 369,454 $ 348,998 Operating profit: SGK Brand Solutions $ 3,152 $ 4,190 Memorialization 14,454 14,367 Industrial Technologies 318 506 $ 17,924 $ 19,063 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Attributable to Each Segment | A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Goodwill $ 491,895 $ 347,507 $ 69,144 $ 908,546 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2017 486,143 342,507 69,144 897,794 Additions during period 8,603 17,152 21,112 46,867 Translation and other adjustments 2,795 1,055 176 4,026 Goodwill 503,293 365,714 90,432 959,439 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at December 31, 2017 $ 497,541 $ 360,714 $ 90,432 $ 948,687 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2017 and September 30, 2017 , respectively. Carrying Amount Accumulated Amortization Net December 31, 2017: Trade names $ 168,467 $ — * $ 168,467 Trade names 8,504 (2,284 ) 6,220 Customer relationships 364,554 (90,611 ) 273,943 Copyrights/patents/other 19,092 (11,978 ) 7,114 $ 560,617 $ (104,873 ) $ 455,744 September 30, 2017 : Trade names $ 168,467 $ — * $ 168,467 Trade names 5,522 (2,030 ) 3,492 Customer relationships 333,632 (84,560 ) 249,072 Copyrights/patents/other 14,787 (11,436 ) 3,351 *Not subject to amortization $ 522,408 $ (98,026 ) $ 424,382 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction to income tax expense | $ 1,234 | ||
Diluted (in dollars per share) | $ 1.10 | $ 0.32 | |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Diluted (in dollars per share) | $ 0.04 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Assets: | ||
Derivatives | $ 6,573 | $ 3,990 |
Equity and fixed income mutual funds | 22,029 | 21,649 |
Other investments | 5,895 | 5,810 |
Total assets at fair value | 34,497 | 31,449 |
Liabilities: | ||
Derivatives | 0 | 31 |
Total liabilities at fair value | 0 | 31 |
Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Other investments | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Derivatives | 6,573 | 3,990 |
Equity and fixed income mutual funds | 22,029 | 21,649 |
Other investments | 5,895 | 5,810 |
Total assets at fair value | 34,497 | 31,449 |
Liabilities: | ||
Derivatives | 0 | 31 |
Total liabilities at fair value | 0 | 31 |
Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Other investments | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Inventories, net [Abstract] | ||
Raw materials | $ 30,622 | $ 29,396 |
Work in process | 64,645 | 61,917 |
Finished goods | 84,069 | 80,132 |
Inventories | $ 179,336 | $ 171,445 |
Debt - Narrative (Details)
Debt - Narrative (Details) £ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017EUR (€) | Sep. 30, 2017EUR (€) | Dec. 31, 2016 | Sep. 30, 2014GBP (£) | |
Line of Credit Facility [Line Items] | ||||||
Other debt | $ 926,000 | $ 1,032,000 | ||||
Other current assets | $ 53,784,000 | 46,533,000 | ||||
Matthews International S.p.A | ||||||
Line of Credit Facility [Line Items] | ||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.27% | 2.27% | 1.58% | |||
Designated as Hedging Instrument | ||||||
Line of Credit Facility [Line Items] | ||||||
Unrealized gain (loss) on fair value of interest rate swaps, before tax | $ 6,573,000 | 3,959,000 | ||||
Unrealized gain (loss) on fair value of interest rate swaps, after tax | 4,010,000 | 2,415,000 | ||||
Unrealized gain (loss) expected to be recognized over the next 12 months | $ 1,178,000 | |||||
Senior Notes | Matthews Europe GmbH & Co. KG | ||||||
Line of Credit Facility [Line Items] | ||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.40% | 1.40% | 1.40% | |||
Debt issued amount | $ 17,971,000 | € 15,000,000 | ||||
Fixed interest rate (as a percent) | 1.40% | 1.40% | ||||
Portion of debt subject to fixed interest rate | € | € 5,000,000 | |||||
LIBOR | Senior Notes | Matthews Europe GmbH & Co. KG | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate on borrowings (as a percent) | 1.40% | |||||
Senior Notes 2025 | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt issued amount | $ 300,000,000 | |||||
Fixed interest rate (as a percent) | 5.25% | 5.25% | ||||
Financing fees and expenses | $ 4,068,000 | |||||
Securitization Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum amount of borrowings available | 115,000,000 | |||||
Outstanding borrowings | $ 101,400,000 | 95,825,000 | ||||
Interest rate on facility (as a percent) | 2.31% | 2.31% | ||||
Securitization Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee (as a percent) | 0.25% | |||||
Securitization Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee (as a percent) | 0.35% | |||||
Securitization Facility | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate on borrowings (as a percent) | 0.75% | |||||
Other Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 4.62% | 4.62% | 5.77% | |||
Revolving Credit Facility | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate during period (as a percent) | 1.75% | |||||
Revolving Credit Facility | LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate on borrowings (as a percent) | 0.75% | |||||
Revolving Credit Facility | LIBOR | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate on borrowings (as a percent) | 2.00% | |||||
Revolving Credit Facility | April 2016 Debt Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum amount of borrowings available | $ 900,000,000 | |||||
Maturity date | Apr. 26, 2021 | |||||
Revolving Credit Facility | April 2016 Debt Amendment | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Annual commitment fee range on unused portion (as a percent) | 0.15% | |||||
Revolving Credit Facility | April 2016 Debt Amendment | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Annual commitment fee range on unused portion (as a percent) | 0.25% | |||||
Term Loan | April 2016 Debt Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum amount of borrowings available | $ 250,000,000 | |||||
Long term debt outstanding principal payment in year 1 (as a percent) | 5.00% | 5.00% | ||||
Long term debt outstanding principal payment in year 2 (as a percent) | 7.50% | 7.50% | ||||
Long term debt outstanding principal payment in year 3 (as a percent) | 10.00% | 10.00% | ||||
Long term debt outstanding principal payment in year 4 (as a percent) | 10.00% | 10.00% | ||||
Long term debt outstanding principal payment in year 5 (as a percent) | 10.00% | 10.00% | ||||
Outstanding borrowings | $ 227,591,000 | 232,479,000 | ||||
Term Loan | April 2016 Debt Amendment | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate during period (as a percent) | 1.25% | |||||
Term Loan | April 2016 Debt Amendment | LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate on borrowings (as a percent) | 0.75% | |||||
Term Loan | April 2016 Debt Amendment | LIBOR | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate on borrowings (as a percent) | 2.00% | |||||
Domestic Revolving Credit Facility | April 2016 Debt Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum available for issuance of trade and standby letters of credit | $ 35,000,000 | |||||
Outstanding borrowings | $ 337,000,000 | 525,000,000 | ||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.93% | 2.93% | 2.65% | |||
Lines of Credit with Italian Banks | Matthews International S.p.A | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum amount of borrowings available | $ 13,574,000 | € 11,300,000 | ||||
Outstanding borrowings | 4,885,000 | 4,735,000 | 4,100,000 | € 4,000,000 | ||
Long-term Debt | 2,500,000 | 3,079,000 | 2,100,000 | 2,600,000 | ||
Letter of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Other current assets | 11,564,000 | £ 8,570 | ||||
Foreign Line of Credit | Credit Facility With European Bank | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum amount of borrowings available | 41,931,000 | 35,000,000 | ||||
Outstanding borrowings | $ 31,416,000 | $ 26,126,000 | € 26,200,000 | € 22,100,000 | ||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.00% | 2.00% | 1.75% |
Debt - Interest Rate Contracts
Debt - Interest Rate Contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap contracts - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Sep. 30, 2017 | |
Derivative [Line Items] | ||
Pay fixed swaps - notional amount | $ 409,375 | $ 414,063 |
Net unrealized gain (loss) | $ 6,573 | $ 3,959 |
Weighted-average maturity period (years) | 3 years 1 month 24 days | 3 years 3 months 24 days |
Weighted-average received rate (as a percent) | 1.56% | 1.23% |
Weighted-average pay rate (as a percent) | 1.34% | 1.34% |
Debt - Interest Rate Swap Contr
Debt - Interest Rate Swap Contracts as Reflected on Balance Sheet (Details) - Designated as Hedging Instrument - Interest Rate Swaps - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ 6,573 | $ 3,959 |
Current assets: Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 1,931 | 1,098 |
Long-term assets: Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 4,642 | 2,892 |
Current Liabilities: Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 0 | (7) |
Long-Term Liabilities: Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 0 | $ (24) |
Debt - Gain (Loss) on Derivativ
Debt - Gain (Loss) on Derivatives (Details) - Cash Flow Hedging - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in AOCI on Derivatives | $ 1,633 | $ 5,100 |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Income on Derivatives | 63 | 807 |
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 38 | $ (493) |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options exercised (in shares) | 0 | |
Proceeds from the exercise of stock options | $ 0 | $ 14 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards unvested (in shares) | 25,157 | |
2012 Equity Incentive Plan | Stock Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of plan | 10 years | |
Maximum number of shares available for grants or awards (in shares) | 2,500,000 | |
Shares reserved for future issuance under award plan (in shares) | 121,038 | |
All Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation cost | $ 5,474 | 6,097 |
Proceeds from the exercise of stock options | 14 | |
Intrinsic value of options exercised | 9 | |
All Plans | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Future income tax benefit from compensation expense recognized | 3 | |
All Plans | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost on non-vested awards | $ 13,338 | |
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 1 year 9 months 18 days | |
All Plans | Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 3 years | |
All Plans | Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 5 years | |
All Plans | Before Fiscal 2013 | Restricted Stock | After 3 Years | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting increment | 50.00% | |
Vesting period | 3 years | |
All Plans | Before Fiscal 2013 | Restricted Stock | Attainment of Pre-Defined Levels of Appreciation in Market Value | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting increment | 16.66% | |
Retirement Eligible Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation cost | $ 2,850 | 3,337 |
Future income tax benefit from compensation expense recognized | $ 1,341 | $ 2,378 |
2014 Director Fee Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for grants or awards (in shares) | 150,000 | |
Annual retainer fee paid to non-employee directors | $ 85 | |
Annual retainer fee paid to non-employee Chairman of the Board | $ 185 | |
Director Fee Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 0 | |
Shares deferred under stock based compensation plan (in shares) | 16,139 | |
Value of annual stock based grant | $ 125 | |
Total stock options granted to date (in shares) | 22,300 | |
Total restricted stock awards granted to date (in shares) | 161,724 | |
Restricted stock awards unvested (in shares) | 58,574 |
Share-Based Payments - Assumpti
Share-Based Payments - Assumptions used in Estimating Fair Value (Details) - All Plans - Restricted Stock | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility (as a percent) | 20.50% | 20.20% |
Dividend yield (as a percent) | 1.00% | 1.10% |
Average risk-free interest rate (as a percent) | 2.00% | 1.70% |
Average expected term (years) | 2 years 30 days | 2 years 29 days |
Share-Based Payments Share-Base
Share-Based Payments Share-Based Payments - Restricted Stock Activity (Details) - All Plans - Restricted Stock | 3 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Shares | |
Non-vested at beginning of period (in shares) | shares | 501,184 |
Granted (in shares) | shares | 234,100 |
Vested (in shares) | shares | (168,280) |
Expired or forfeited (in shares) | shares | (5,214) |
Non-vested at end of period (in shares) | shares | 561,790 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 53.65 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 57.05 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 51.54 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 59.51 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 55.64 |
Earnings Per Share Attributab42
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Matthews shareholders | $ 35,180 | $ 10,322 |
Weighted-average shares outstanding [Abstract] | ||
Basic shares | 31,738 | 32,250 |
Effect of dilutive securities | 132 | 198 |
Diluted shares | 31,870 | 32,448 |
Antidilutive securities excluded from dilution calculation (in shares) | 0 | 0 |
Pension and Other Postretirem43
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension | ||
Net periodic benefit cost [Abstract] | ||
Service cost | $ 2,039 | $ 2,138 |
Interest cost | 2,049 | 1,841 |
Expected return on plan assets | (2,534) | (2,312) |
Amortization: | ||
Prior service cost | (35) | (45) |
Net actuarial loss | 1,752 | 2,509 |
Net benefit cost | 3,271 | 4,131 |
Supplemental retirement plan | ||
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | ||
Pension | 184 | |
Other Postretirement | 0 | |
Additional contributions expected in fiscal 2018: | 582 | |
Other Postretirement | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 84 | 98 |
Interest cost | 158 | 157 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
Prior service cost | (49) | (49) |
Net actuarial loss | 0 | 0 |
Net benefit cost | 193 | $ 206 |
Defined Benefit Plan, Expected Future Employer Contributions [Abstract] | ||
Pension | 0 | |
Other Postretirement | 437 | |
Additional contributions expected in fiscal 2018: | $ 607 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Attributable to Matthews: | ||
Beginning balance | $ 789,707 | |
OCI, net of tax | 10,224 | $ (24,154) |
Ending balance | 830,086 | |
Attributable to noncontrolling interest: | ||
Beginning balance | 552 | |
OCI, net of tax | 10,224 | (24,154) |
Ending balance | 543 | |
Post-retirement benefit plans | ||
Attributable to Matthews: | ||
Beginning balance | (43,623) | (56,050) |
OCI before reclassification | 0 | 0 |
Amounts reclassified from AOCI | 1,018 | 1,536 |
OCI, net of tax | 1,018 | 1,536 |
Ending balance | (42,605) | (54,514) |
Attributable to noncontrolling interest: | ||
OCI before reclassification | 0 | 0 |
Amounts reclassified from AOCI | 1,018 | 1,536 |
OCI, net of tax | 1,018 | 1,536 |
Currency translation adjustment | ||
Attributable to Matthews: | ||
Beginning balance | (112,907) | (122,259) |
OCI before reclassification | 7,598 | (31,342) |
Amounts reclassified from AOCI | 0 | 0 |
OCI, net of tax | 7,598 | (31,342) |
Ending balance | (105,309) | (153,601) |
Attributable to noncontrolling interest: | ||
OCI before reclassification | 7,598 | (31,342) |
Amounts reclassified from AOCI | 0 | 0 |
OCI, net of tax | 7,598 | (31,342) |
Derivatives | ||
Attributable to Matthews: | ||
Beginning balance | 2,415 | (3,559) |
OCI before reclassification | 1,633 | 5,100 |
Amounts reclassified from AOCI | (38) | 493 |
OCI, net of tax | 1,595 | 5,593 |
Ending balance | 4,010 | 2,034 |
Attributable to noncontrolling interest: | ||
OCI before reclassification | 1,633 | 5,100 |
Amounts reclassified from AOCI | (38) | 493 |
OCI, net of tax | 1,595 | 5,593 |
Accumulated Other Comprehensive (Loss) Income | ||
Attributable to Matthews: | ||
Beginning balance | (154,115) | (181,868) |
OCI before reclassification | 9,231 | (26,242) |
Amounts reclassified from AOCI | 980 | 2,029 |
OCI, net of tax | 10,211 | (24,213) |
Ending balance | (143,904) | (206,081) |
Attributable to noncontrolling interest: | ||
OCI before reclassification | 9,231 | (26,242) |
Amounts reclassified from AOCI | 980 | 2,029 |
OCI, net of tax | 10,211 | (24,213) |
Post-retirement benefit plans | ||
Attributable to Matthews: | ||
OCI before reclassification | 0 | 0 |
OCI, net of tax | 0 | 0 |
Attributable to noncontrolling interest: | ||
Beginning balance | 0 | 0 |
OCI before reclassification | 0 | 0 |
OCI, net of tax | 0 | 0 |
Ending balance | 0 | 0 |
Currency translation adjustment | ||
Attributable to Matthews: | ||
OCI before reclassification | 13 | 59 |
OCI, net of tax | 13 | 59 |
Attributable to noncontrolling interest: | ||
Beginning balance | 396 | 277 |
OCI before reclassification | 13 | 59 |
OCI, net of tax | 13 | 59 |
Ending balance | 409 | 336 |
Derivatives | ||
Attributable to Matthews: | ||
OCI before reclassification | 0 | 0 |
OCI, net of tax | 0 | 0 |
Attributable to noncontrolling interest: | ||
Beginning balance | 0 | 0 |
OCI before reclassification | 0 | 0 |
OCI, net of tax | 0 | 0 |
Ending balance | 0 | 0 |
Noncontrolling Interest | ||
Attributable to Matthews: | ||
OCI before reclassification | 13 | 59 |
OCI, net of tax | 13 | 59 |
Attributable to noncontrolling interest: | ||
OCI before reclassification | 13 | 59 |
OCI, net of tax | 13 | 59 |
AOCI Attributable to Noncontrolling Interest | ||
Attributable to noncontrolling interest: | ||
Beginning balance | 396 | 277 |
Ending balance | $ 409 | $ 336 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives | ||
Interest expense | $ (7,801) | $ (6,148) |
Income before income tax | 9,931 | 12,697 |
Income taxes | (25,227) | 2,489 |
Net income attributable to Matthews shareholders | 35,180 | 10,322 |
Prior service (cost) credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income tax | (84) | (94) |
Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income tax | (1,752) | (2,509) |
Post-retirement benefit plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income tax | (1,668) | (2,415) |
Income taxes | (650) | (879) |
Net income | (1,018) | (1,536) |
Derivatives | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 38 | (493) |
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivatives | ||
Income before income tax | 63 | (807) |
Income taxes | 25 | (314) |
Net income attributable to Matthews shareholders | 38 | (493) |
Derivatives | Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivatives | ||
Interest expense | $ 63 | $ (807) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 21, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||||
Income tax expense (benefit) | $ (25,227) | $ 2,489 | |||
Blended rate (as a percent) | 24.50% | ||||
Federal statutory rate (as a percent) | 35.00% | ||||
Provisional tax benefit change in tax rate | $ 24,553 | ||||
Tax benefit change in deferred tax assets | 38,010 | ||||
Tax expense repatriation of foreign earnings | 13,457 | ||||
Unrecognized tax benefits | 7,994 | $ 7,968 | |||
Unrecognized tax benefits that would impact effective tax rate | 3,699 | ||||
Total penalties and interest accrued | $ 1,786 | $ 1,779 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Federal statutory rate (as a percent) | 21.00% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 369,454 | $ 348,998 |
Operating profit | 17,924 | 19,063 |
SGK Brand Solutions | ||
Segment Reporting Information [Line Items] | ||
Sales | 191,766 | 175,801 |
Operating profit | 3,152 | 4,190 |
Memorialization | ||
Segment Reporting Information [Line Items] | ||
Sales | 144,889 | 145,622 |
Operating profit | 14,454 | 14,367 |
Industrial Technologies | ||
Segment Reporting Information [Line Items] | ||
Sales | 32,799 | 27,575 |
Operating profit | $ 318 | $ 506 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands, € in Millions, £ in Millions | Nov. 28, 2017USD ($) | Mar. 01, 2017USD ($) | Mar. 01, 2017GBP (£) | Feb. 28, 2017USD ($) | Jan. 13, 2017USD ($) | Jan. 13, 2017GBP (£) | Jan. 03, 2017USD ($) | Jan. 03, 2017EUR (€) | Nov. 30, 2016USD ($) | Nov. 30, 2016GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 85,964 | $ 10,733 | ||||||||||
Compass Engineering Group, Inc | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 49,793 | |||||||||||
Additional Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 36,171 | |||||||||||
GJ Creative Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 37,596 | £ 30.5 | ||||||||||
RAF Technology, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 8,717 | |||||||||||
VCG (Holdings) Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 10,695 | £ 8.8 | ||||||||||
Ungricht | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 25,185 | € 24 | ||||||||||
Guidance Automation Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition price | $ 9,974 | £ 8 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Segment (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 908,546 |
Accumulated impairment losses | (10,752) |
Balance at Beginning of Period | 897,794 |
Additions during period | 46,867 |
Translation and other adjustments | 4,026 |
Goodwill | 959,439 |
Accumulated impairment losses | (10,752) |
Balance at End of Period | 948,687 |
SGK Brand Solutions | |
Goodwill [Roll Forward] | |
Goodwill | 491,895 |
Accumulated impairment losses | (5,752) |
Balance at Beginning of Period | 486,143 |
Additions during period | 8,603 |
Translation and other adjustments | 2,795 |
Goodwill | 503,293 |
Accumulated impairment losses | (5,752) |
Balance at End of Period | 497,541 |
Memorialization | |
Goodwill [Roll Forward] | |
Goodwill | 347,507 |
Accumulated impairment losses | (5,000) |
Balance at Beginning of Period | 342,507 |
Additions during period | 17,152 |
Translation and other adjustments | 1,055 |
Goodwill | 365,714 |
Accumulated impairment losses | (5,000) |
Balance at End of Period | 360,714 |
Industrial Technologies | |
Goodwill [Roll Forward] | |
Goodwill | 69,144 |
Accumulated impairment losses | 0 |
Balance at Beginning of Period | 69,144 |
Additions during period | 21,112 |
Translation and other adjustments | 176 |
Goodwill | 90,432 |
Accumulated impairment losses | 0 |
Balance at End of Period | $ 90,432 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 560,617 | $ 522,408 |
Accumulated Amortization | (104,873) | (98,026) |
Net | 455,744 | 424,382 |
Trade Names Not Subject to Amortization | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 168,467 | 168,467 |
Net | 168,467 | 168,467 |
Trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 8,504 | 5,522 |
Accumulated Amortization | (2,284) | (2,030) |
Net | 6,220 | 3,492 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 364,554 | 333,632 |
Accumulated Amortization | (90,611) | (84,560) |
Net | 273,943 | 249,072 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 19,092 | 14,787 |
Accumulated Amortization | (11,978) | (11,436) |
Net | $ 7,114 | $ 3,351 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on intangible assets | $ 6,681 | $ 4,941 |
Future amortization expense [Abstract] | ||
Future amortization expense for the remainder 2018 | 22,201 | |
Future amortization expense 2019 | 27,747 | |
Future amortization expense 2020 | 25,925 | |
Future amortization expense 2021 | 24,350 | |
Future amortization expense 2022 | $ 22,928 |