Document and Entity Information
Document and Entity Information | 9 Months Ended |
Jun. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 0-09115 |
Entity Registrant Name | MATTHEWS INTERNATIONAL CORP |
Entity Incorporation, State or Country Code | PA |
Entity Tax Identification Number | 25-0644320 |
Entity Address, Address Line One | Two Northshore Center, |
Entity Address, City or Town | Pittsburgh, |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 15212‑5851 |
City Area Code | (412) |
Local Phone Number | 442-8200 |
Title of 12(b) Security | Class A Common Stock, $1.00 par value |
Trading Symbol | MATW |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 31,488,459 |
Entity Central Index Key | 0000063296 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 33,603 | $ 41,572 |
Accounts receivable, net | 318,717 | 331,463 |
Inventories, net | 188,658 | 180,451 |
Other current assets | 73,467 | 61,592 |
Total current assets | 614,445 | 615,078 |
Investments | 88,887 | 45,430 |
Property, plant and equipment, net | 247,169 | 252,775 |
Deferred income taxes | 2,680 | 1,837 |
Other assets | 36,210 | 49,820 |
Goodwill | 935,107 | 948,894 |
Other intangible assets, net | 420,795 | 443,910 |
Total assets | 2,345,293 | 2,357,744 |
Current liabilities: | ||
Long-term debt, current maturities | 58,080 | 31,260 |
Trade accounts payable | 68,318 | 70,044 |
Accrued compensation | 41,415 | 51,490 |
Accrued income taxes | 12,102 | 11,413 |
Other current liabilities | 134,132 | 122,195 |
Total current liabilities | 314,047 | 286,402 |
Long-term debt | 921,520 | 929,342 |
Accrued pension | 86,024 | 82,035 |
Postretirement benefits | 17,457 | 17,753 |
Deferred income taxes | 115,593 | 121,519 |
Other liabilities | 42,227 | 51,979 |
Total liabilities | 1,496,868 | 1,489,030 |
Shareholders' equity-Matthews: | ||
Common stock | 36,334 | 36,334 |
Additional paid-in capital | 136,211 | 129,252 |
Retained earnings | 1,050,091 | 1,040,378 |
Accumulated other comprehensive loss | (179,874) | (164,298) |
Treasury stock, at cost | (195,920) | (173,315) |
Total shareholders' equity-Matthews | 846,842 | 868,351 |
Noncontrolling interests | 1,583 | 363 |
Total shareholders' equity | 848,425 | 868,714 |
Total liabilities and shareholders' equity | $ 2,345,293 | $ 2,357,744 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 379,294 | $ 411,621 | $ 1,144,871 | $ 1,195,136 |
Cost of sales | (242,116) | (259,006) | (745,001) | (760,428) |
Gross profit | 137,178 | 152,615 | 399,870 | 434,708 |
Selling expense | (32,857) | (36,000) | (102,238) | (110,108) |
Administrative expense | (65,087) | (68,961) | (200,346) | (211,451) |
Intangible amortization | (9,543) | (8,334) | (27,165) | (23,264) |
Operating profit | 29,691 | 39,320 | 70,121 | 89,885 |
Investment income | 655 | 538 | 1,394 | 931 |
Interest expense | (10,508) | (9,719) | (31,068) | (26,782) |
Other income (deductions), net | (1,425) | (1,482) | (3,416) | (5,162) |
Income before income taxes | 18,413 | 28,657 | 37,031 | 58,872 |
Income tax (provision) benefit | (3,989) | (4,312) | (4,429) | 18,703 |
Net income | 14,424 | 24,345 | 32,602 | 77,575 |
Net loss attributable to noncontrolling interests | 205 | 69 | 541 | 201 |
Net income attributable to Matthews shareholders | $ 14,629 | $ 24,414 | $ 33,143 | $ 77,776 |
Earnings per share attributable to Matthews shareholders: | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.77 | $ 1.05 | $ 2.45 |
Diluted (in dollars per share) | $ 0.46 | $ 0.77 | $ 1.05 | $ 2.44 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income attributable to Matthews shareholders | $ 14,629 | $ 24,414 | $ 33,143 | $ 77,776 |
Net income (loss) attributable to noncontrolling interests | (205) | (69) | (541) | (201) |
Net income | 14,424 | 24,345 | 32,602 | 77,575 |
Unrecognized (loss) gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 312 | (37,419) | (15,576) | (11,646) |
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | (5) | (23) | 1 | 80 |
OCI, net of tax | 307 | (37,442) | (15,575) | (11,566) |
Comprehensive (loss) income attributable to Matthews shareholders | 14,941 | (13,005) | 17,567 | 66,130 |
Comprehensive (loss) income attributable to noncontrolling interest | (210) | (92) | (540) | (121) |
Comprehensive (loss) income | 14,731 | (13,097) | 17,027 | 66,009 |
Foreign Currency Translation Adjustment, Matthews | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 2,639 | (38,669) | (9,791) | (19,658) |
Net change from periodic revaluation | 2,639 | (38,669) | (9,791) | (19,658) |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
OCI, net of tax | 2,639 | (38,669) | (9,791) | (19,658) |
Pension Plans and Other Postretirement Benefits, Matthews | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 705 | 1,256 | 2,168 | 3,296 |
Net Investment Gain (Loss), Matthews | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change from periodic revaluation | (2,372) | 393 | (6,074) | 5,286 |
Net amount reclassified to earnings | (660) | (399) | (1,879) | (570) |
Gain (Loss), Net, Derivatives, Matthews | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | (3,032) | (6) | (7,953) | 4,716 |
Foreign Currency Translation Adjustment, Noncontrolling Interest | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | (5) | (23) | 1 | 80 |
Net change from periodic revaluation | (5) | (23) | 1 | 80 |
OCI, net of tax | (5) | (23) | 1 | 80 |
Pension Plans and Other Postretirement Benefits, Noncontrolling Interest | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net Investment Gain (Loss), Noncontrolling Interest | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change from periodic revaluation | 0 | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Gain (Loss), Net, Derivatives, Noncontrolling Interest | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustment | ||||
Unrecognized (loss) gain on derivatives: | ||||
OCI, net of tax | 2,634 | (38,692) | (9,790) | (19,578) |
Pension Plans and Other Postretirement Benefits | ||||
Unrecognized (loss) gain on derivatives: | ||||
OCI, net of tax | 705 | 1,256 | 2,168 | 3,296 |
Net Investment Gain (Loss), Noncontrolling Interest | ||||
Unrecognized (loss) gain on derivatives: | ||||
Net change from periodic revaluation | (2,372) | 393 | (6,074) | 5,286 |
Net amount reclassified to earnings | (660) | (399) | (1,879) | (570) |
Gain (Loss), Net, Derivatives | ||||
Unrecognized (loss) gain on derivatives: | ||||
OCI, net of tax | $ (3,032) | $ (6) | $ (7,953) | $ 4,716 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non- controlling Interests |
Beginning 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 (loss) | 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 | |||||
Comprehensive (loss) income | 45,382 | ||||||
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) | |||||
Ending balance at Dec. 31, 2017 | 830,629 | 36,334 | 120,294 | 977,939 | (143,904) | (160,577) | 543 |
Beginning 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 (loss) | 77,575 | ||||||
Comprehensive (loss) income | 66,009 | ||||||
Reclassification of accumulated other comprehensive (loss) income ('AOCI') tax effect | (8,814) | ||||||
Ending balance at Jun. 30, 2018 | 833,180 | 36,334 | 126,273 | 1,016,892 | (174,575) | (172,175) | 431 |
Beginning balance at Dec. 31, 2017 | 830,629 | 36,334 | 120,294 | 977,939 | (143,904) | (160,577) | 543 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 18,072 | 18,182 | (110) | ||||
Minimum pension liability | 1,022 | 1,022 | |||||
Translation adjustment | 11,503 | 11,413 | 90 | ||||
Fair value of derivatives | 3,127 | 3,127 | |||||
Comprehensive (loss) income | 33,724 | ||||||
Stock-based compensation | 2,658 | 2,658 | |||||
Purchase of treasury stock | (13,890) | (13,890) | |||||
Issuance of treasury stock | 5,000 | 883 | 4,117 | ||||
Dividends | (6,039) | (6,039) | |||||
Ending balance at Mar. 31, 2018 | 852,082 | 36,334 | 123,835 | 990,082 | (128,342) | (170,350) | 523 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 24,345 | 24,414 | (69) | ||||
Minimum pension liability | 1,256 | 1,256 | |||||
Translation adjustment | (38,692) | (38,669) | (23) | ||||
Fair value of derivatives | (6) | (6) | |||||
Comprehensive (loss) income | (13,097) | ||||||
Stock-based compensation | 2,399 | 2,399 | |||||
Purchase of treasury stock | (1,786) | (1,786) | |||||
Cancellations of treasury stock | 0 | 39 | (39) | ||||
Dividends | (6,418) | (6,418) | |||||
Reclassification of accumulated other comprehensive (loss) income ('AOCI') tax effect | 0 | 8,814 | (8,814) | ||||
Ending balance at Jun. 30, 2018 | 833,180 | 36,334 | 126,273 | 1,016,892 | (174,575) | (172,175) | 431 |
Beginning balance at Sep. 30, 2018 | 868,714 | 36,334 | 129,252 | 1,040,378 | (164,298) | (173,315) | 363 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 2,984 | 3,097 | (113) | ||||
Minimum pension liability | 729 | 729 | |||||
Translation adjustment | (12,577) | (12,564) | (13) | ||||
Fair value of derivatives | (2,901) | (2,901) | |||||
Comprehensive (loss) income | (11,765) | ||||||
Stock-based compensation | 3,647 | 3,647 | |||||
Purchase of treasury stock | (7,751) | (7,751) | |||||
Issuance of treasury stock | 0 | (115) | 115 | ||||
Cancellations of treasury stock | 0 | 891 | (891) | ||||
Dividends | (6,414) | (6,414) | |||||
Acquisition | 1,760 | 1,760 | |||||
Ending balance at Dec. 31, 2018 | 844,015 | 36,334 | 133,675 | 1,032,885 | (179,034) | (181,842) | 1,997 |
Beginning balance at Sep. 30, 2018 | 868,714 | 36,334 | 129,252 | 1,040,378 | (164,298) | (173,315) | 363 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 32,602 | ||||||
Translation adjustment | 1,002 | ||||||
Comprehensive (loss) income | 17,027 | ||||||
Ending balance at Jun. 30, 2019 | 848,425 | 36,334 | 136,211 | 1,050,091 | (179,874) | (195,920) | 1,583 |
Beginning balance at Dec. 31, 2018 | 844,015 | 36,334 | 133,675 | 1,032,885 | (179,034) | (181,842) | 1,997 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 15,194 | 15,417 | (223) | ||||
Minimum pension liability | 734 | 734 | |||||
Translation adjustment | 153 | 134 | 19 | ||||
Fair value of derivatives | (2,020) | (2,020) | |||||
Comprehensive (loss) income | 14,061 | ||||||
Stock-based compensation | 1,366 | 1,366 | |||||
Purchase of treasury stock | (5,535) | (5,535) | |||||
Cancellations of treasury stock | 0 | 14 | (14) | ||||
Dividends | (6,446) | (6,446) | |||||
Ending balance at Mar. 31, 2019 | 847,461 | 36,334 | 135,055 | 1,041,856 | (180,186) | (187,391) | 1,793 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 14,424 | 14,629 | (205) | ||||
Minimum pension liability | 705 | 705 | |||||
Translation adjustment | 2,634 | 2,639 | (5) | ||||
Fair value of derivatives | (3,032) | (3,032) | |||||
Comprehensive (loss) income | 14,731 | ||||||
Stock-based compensation | 1,156 | 1,156 | |||||
Purchase of treasury stock | (8,529) | (8,529) | |||||
Dividends | (6,394) | (6,394) | |||||
Ending balance at Jun. 30, 2019 | $ 848,425 | $ 36,334 | $ 136,211 | $ 1,050,091 | $ (179,874) | $ (195,920) | $ 1,583 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Purchase of treasury stock (in shares) | 240,155 | 143,092 | 186,417 | 35,734 | 260,621 | 75,765 |
Issuance of treasury stock (in shares) | 2,822 | 102,856 | 223,971 | |||
Cancellations of treasury stock (in shares) | 41 | 19,433 | 650 | 5,214 | ||
Dividends, per share (in dollars per share) | $ 0.2 | $ 0.2 | $ 0.20 | $ 0.19 | $ 0.19 | $ 0.19 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 32,602 | $ 77,575 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 60,759 | 57,052 |
Stock-based compensation expense | 6,169 | 10,531 |
Deferred tax benefit | (4,031) | (43,272) |
Gain on sale of assets | (210) | (925) |
Loss on divestiture | 4,465 | 0 |
Unrealized loss (gain) on investments | 680 | (771) |
Changes in working capital items | (14,543) | (5,897) |
Increase in other assets | (379) | (11,932) |
Increase in other liabilities | 3,042 | 8,932 |
Other operating activities, net | 860 | (8,487) |
Net cash provided by operating activities | 89,414 | 82,806 |
Cash flows from investing activities: | ||
Capital expenditures | (31,963) | (32,150) |
Acquisitions, net of cash acquired | (11,525) | (119,953) |
Proceeds from sale of assets | 1,508 | 3,358 |
Proceeds from divestiture | 8,254 | 0 |
Purchases of investments | (33,073) | (11,871) |
Net cash used in investing activities | (66,799) | (160,616) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 424,842 | 681,297 |
Payments on long-term debt | (408,447) | (566,891) |
Purchases of treasury stock | (21,815) | (20,091) |
Dividends | (19,254) | (18,528) |
Acquisition holdback and contingent consideration payments | (3,350) | 0 |
Other financing activities | (2,139) | 0 |
Net cash (used in) provided by financing activities | (30,163) | 75,787 |
Effect of exchange rate changes on cash | (421) | (1,777) |
Net change in cash and cash equivalents | (7,969) | (3,800) |
Non-cash investing and financing activities: | ||
Acquisition of long-term asset under financing arrangement | $ 0 | $ 14,544 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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 consist of brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. 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 North America, Europe, Asia, Australia, and Central and South America. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2019 | |
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 nine months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2019 . 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, 2018 . 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. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications are not material to the prior year presentation. New Accounting Pronouncements: Issued In August 2018, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2021. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements including the consideration of costs and benefits. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2020. 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 August 2017, the FASB issued ASU No. 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 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. Subsequently, the FASB issued several ASUs that address implementation issues and correct or improve certain aspects of the new lease guidance, including ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and ASU 2019-01, Leases (Topic 842): Codification Improvements . These ASUs do not change the core principles in the lease guidance outlined above. ASU No. 2018-11 provides an additional transition method to adopt ASU No. 2016-02. Under the new transition method, an entity initially applies the new leases standard at the adoption date versus at the beginning of the earliest period presented and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has elected to use this transition method at the adoption date of October 1, 2019. ASU No. 2016-02 and the related ASUs referenced above are effective for the Company beginning in interim periods starting in fiscal year 2020. The Company is in the process of assessing the impact these ASUs will have on its consolidated financial statements. Adopted In May 2017, the FASB issued ASU No. 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. The adoption of this ASU in the first quarter ended December 31, 2018 had no impact on the Company's 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. ASU 2017-07 requires a company to present the service cost components of net periodic benefit cost in the same income statement line as other employee compensation costs, with the remaining components of net periodic benefit cost presented separately from the service cost components and outside of any subtotal of operating income, if one is presented. The Company adopted this standard on October 1, 2018 applying the presentation requirements retrospectively. For the three months ended June 30, 2018 , the Company reclassified net benefit costs of $ 714 , $ 226 and $ 485 , from cost of sales, selling expense and administrative expense, respectively, to other income (deductions), net. For the nine months ended June 30, 2018 , the Company reclassified net benefit costs of $ 2,142 , $ 678 and $ 1,455 from cost of sales, selling expense and administrative expense, respectively, to other income (deductions), net. 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. The adoption of this ASU in the first quarter ended December 31, 2018 had no impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted ASU 2016-16 on October 1, 2018 using the modified retrospective method which resulted in a decrease to retained earnings and other assets of $ 4,176 . 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. The adoption of this ASU in the first quarter ended December 31, 2018 did not have a material impact on the Company's consolidated financial statements. Note 2. Basis of Presentation (continued) 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. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10), that provides guidance related to implementation issues and corrects or improves certain aspects of the financial instruments guidance. The adoption of these ASUs in the first quarter ended December 31, 2018 had no 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. The Company adopted the provisions of these ASUs in the first fiscal quarter of 2019, using the modified retrospective method. The adoption of these ASUs did not impact the Company's consolidated financial statements and therefore, there was no cumulative effect adjustment recognized to retained earnings on October 1, 2018. Refer to Note 3, “Revenue Recognition,” for a further discussion. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various delivery terms applicable to the Company’s sales. For substantially all transactions, control passes in accordance with agreed upon delivery terms, including in certain circumstances, customer acceptance. This approach is consistent with the Company’s historical revenue recognition methodology. In limited instances revenue is recognized over time as critical milestones are met and as services are provided. Transaction price, for revenue recognition, is allocated to each performance obligation consisting of the stand alone selling price, estimates of rebates and other sales or contract renewal incentives, and cash discounts and sales returns ("Variable Consideration"). Estimates are made for Variable Consideration based on contract terms and historical experience of actual results and are applied to the performance obligations as they are satisfied. The Company delivers a variety of products and services through its business segments. The SGK Brand Solutions segment delivers brand management, pre-media services, printing plates and cylinders, engineered products, and imaging services for consumer goods and retail customers, merchandising display systems, and marketing and design services primarily to the consumer goods and retail industries. The Memorialization segment produces and delivers bronze and granite memorials and other memorialization products, caskets and cremation equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment delivers marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products for the warehousing and industrial industries. Each product or service delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. Certain revenue related to mausoleum construction and significant engineering projects, including cremation and incineration projects, and marking and industrial automation projects, are recognized over time using the input method measuring progress toward completion of such projects. Amounts recognized using the over time method were less than 5 % of the Company's consolidated revenue for the three and nine months ended June 30, 2019 and 2018 . The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Note 3. Revenue Recognition (continued) The Company disaggregates revenue from contracts with customers by geography, as it believes geographic regions best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Disaggregated sales by segment and region for the three and nine months ended June 30, 2019 and 2018 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2019 2018 2019 2018 2019 2018 2019 2018 North America $ 77,223 $ 87,665 $ 146,131 $ 150,418 $ 31,589 $ 38,071 $ 254,943 $ 276,154 Central and South America 1,619 1,734 — — — — 1,619 1,734 Europe 89,254 98,313 9,847 9,065 7,076 7,175 106,177 114,553 Australia 2,912 3,457 2,239 2,496 — — 5,151 5,953 Asia 10,922 11,807 — — 482 1,420 11,404 13,227 Total Sales $ 181,930 $ 202,976 $ 158,217 $ 161,979 $ 39,147 $ 46,666 $ 379,294 $ 411,621 SGK Brand Solutions Memorialization Industrial Technologies Consolidated Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 North America $ 235,975 $ 264,227 $ 440,865 $ 439,679 $ 90,291 $ 91,539 $ 767,131 $ 795,445 Central and South America 4,316 4,870 — — — — 4,316 4,870 Europe 275,842 288,886 26,611 28,079 20,448 22,537 322,901 339,502 Australia 8,772 9,467 6,803 7,799 — — 15,575 17,266 Asia 32,976 34,344 — — 1,972 3,709 34,948 38,053 Total Sales $ 557,881 $ 601,794 $ 474,279 $ 475,557 $ 112,711 $ 117,785 $ 1,144,871 $ 1,195,136 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2019 | |
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. Note 4. Fair Value Measurements (continued) The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: June 30, 2019 September 30, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 1,458 $ — $ 1,458 $ — $ 11,309 $ — $ 11,309 Equity and fixed income mutual funds — 22,984 — 22,984 — 22,758 — 22,758 Life insurance policies — 4,236 — 4,236 — 5,894 — 5,894 Total assets at fair value $ — $ 28,678 $ — $ 28,678 $ — $ 39,961 $ — $ 39,961 Liabilities: Derivatives (1) $ — $ 683 $ — $ 683 $ — $ — $ — $ — Total liabilities at fair value $ — $ 683 $ — $ 683 $ — $ — $ — $ — (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 | 9 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: June 30, 2019 September 30, 2018 Raw materials $ 37,373 $ 34,880 Work in process 76,351 67,827 Finished goods 74,934 77,744 $ 188,658 $ 180,451 |
Debt
Debt | 9 Months Ended |
Jun. 30, 2019 | |
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. A portion of the revolving credit facility (not to exceed $150,000 ) can be drawn in foreign currencies. 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. Pursuant to the terms of the domestic credit facility agreement, principal payments may be made on the term loan prior to the scheduled due dates. 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 (Euro LIBOR for balances drawn in Euros) plus a factor ranging from 0.75% to 2.00% ( 1.50% at June 30, 2019 ) based on the Company's secured leverage ratio. The secured leverage ratio is defined as net secured indebtedness divided by EBITDA (earnings before interest, income taxes, depreciation and amortization) as defined within the domestic credit facility agreement. 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 U.S. dollar denominated borrowings on the revolving credit facility at June 30, 2019 and September 30, 2018 were $360,058 and $319,500 , respectively. During the third quarter of fiscal 2019, the Company borrowed €125.0 million on the revolving credit facility. Proceeds from the Euro denominated borrowing were used to make a principal payment of $140,000 on the outstanding balance of the term loan. Outstanding Euro denominated borrowings on the revolving credit facility at June 30, 2019 were €125.0 million ( $142,194 ). There were no Euro denominated borrowings on the revolving credit facility at September 30, 2018 . Outstanding borrowings on the term loan at June 30, 2019 and September 30, 2018 were $53,456 and $212,086 , respectively. The weighted-average interest rate Note 6. Debt (continued) on outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at June 30, 2019 and June 30, 2018 was 2.75% and 2.82% , respectively. The Company has $300,000 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. 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 Company has a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions which matures on April 11, 2020 and the Company intends to extend this facility. 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 June 30, 2019 and September 30, 2018 were $98,850 and $102,250 , respectively. At June 30, 2019 and 2018 , the interest rate on borrowings under this facility was 3.15% and 2.84% , respectively. The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: June 30, 2019 September 30, 2018 Pay fixed swaps - notional amount $ 300,000 $ 343,750 Net unrealized gain $ 775 $ 11,309 Weighted-average maturity period (years) 2.2 2.7 Weighted-average received rate 2.40 % 2.26 % Weighted-average pay rate 1.40 % 1.37 % 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, net of unrealized losses, of $775 ( $585 after tax) at June 30, 2019 and an unrealized gain of $11,309 ( $8,538 after tax) at September 30, 2018 . The net unrealized gain is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Assuming market rates remain constant with the rates at June 30, 2019 , a gain (net of tax) of approximately $452 included in AOCI is expected to be recognized in earnings over the next twelve months. Note 6. Debt (continued) At June 30, 2019 and September 30, 2018 , the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives June 30, 2019 September 30, 2018 Current assets: Other current assets $ 821 $ 3,867 Long-term assets: Other assets 637 7,442 Current liabilities: Other current liabilities (222 ) — Long-term liabilities: Other liabilities (461 ) — Total derivatives $ 775 $ 11,309 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 Amount of Gain Recognized in Income on Derivatives Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest rate swaps Interest expense $ 874 $ 490 $ 2,489 $ 755 The Company recognized the following (losses) gains in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in AOCI on Derivatives Location of Gain Reclassified From AOCI into Income (Effective Portion*) Amount of Gain Reclassified from AOCI into Income (Effective Portion*) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest rate swaps $ (6,074 ) $ 5,286 Interest expense $ 1,879 $ 570 *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. The maximum amount of borrowing available under this facility is €35.0 million ( $39,814 ). The credit facility matures in December 2019 and the Company intends to extend this facility. Outstanding borrowings under the credit facility totaled €4.3 million ( $4,899 ) and €2.8 million ( $3,211 ) at June 30, 2019 and September 30, 2018 , respectively. The weighted-average interest rate on outstanding borrowings under this facility at June 30, 2019 and 2018 was 1.25% and 1.75% , respectively. The Company’s German subsidiary, Matthews Europe GmbH & Co. KG, has €15.0 million ( $17,063 ) of senior unsecured notes with European banks. The notes are guaranteed by Matthews 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 June 30, 2019 and 2018 was 1.40% . Other debt totaled $2,917 and $5,399 at June 30, 2019 and September 30, 2018 , respectively. The weighted-average interest rate on these outstanding borrowings was 5.81% and 3.08% at June 30, 2019 and 2018 , respectively. The Company uses certain foreign currency debt instruments as net investment hedges of foreign operations. Currency losses of $1,002 (net of income taxes of $325 ), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment for the three and nine months ended June 30, 2019 . The Company did not have any net investment hedges in the prior year. Note 6. Debt (continued) In September 2014, a claim was filed by a customer seeking to draw upon a letter of credit issued by the Company of £8,570,000 ( $10,887 at June 30, 2019 ) with respect to a performance guarantee on an environmental solutions 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 "U.K. Court"). Pursuant to this action, an order was issued by the U.K. Court in January 2015 requiring that, upon receipt by the customer, the funds were to be remitted by the customer to the U.K. 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 U.K. Court as ordered. On June 14, 2016, the U.K Court ruled completely in favor of Matthews following a trial on the merits. However, the ongoing dispute involves litigation in multiple foreign jurisdictions because the contract between the parties includes a venue clause requiring the venue for any litigation to be in the United Kingdom, while the enforcement of any final judgment is required to be executed in Saudi Arabia. The Company is currently pursuing a trial on the merits in Saudi Arabia which is scheduled to conclude in calendar year 2019. It is necessary to obtain an equivalent favorable ruling in the courts of Saudi Arabia to effectively enforce judgment and commence collection efforts. The Company remains confident regarding the pending trial on the merits in Saudi Arabia and expects to be in a position to enforce the judgment and initiate collection efforts following completion of that trial. However, as the customer has neither yet remitted the funds nor complied with the final, un-appealed orders of the U.K. Court, it is possible the resolution of this matter could have an unfavorable financial impact on Matthews’ results of operations. The Company’s level of success in recovering funds from the customer will depend upon a number of factors including, a successful completion of the pending trial on the merits in Saudi Arabia, the availability of recoverable funds, and the subsequent level of cooperation from the Saudi Arabian government to enforce a potential judgment against the creditor. 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 June 30, 2019 and September 30, 2018 . The Company will continue to assess the accounting and collectability related to this matter as facts and circumstances evolve. As of June 30, 2019 and September 30, 2018 , the fair value of the Company's long-term debt, including current maturities, approximated the carrying value included in the Consolidated Balance Sheets. The Company was in compliance with all of its debt covenants as of June 30, 2019 . |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments The Company maintains an equity incentive plan (the "2017 Equity Incentive Plan") that provides for grants of stock options, restricted shares, restricted share units, stock-based performance units and certain other types of stock-based awards. Under the 2017 Equity Incentive Plan, which has a ten -year term, the maximum number of shares available for grants or awards is an aggregate of 1,700,000 . At June 30, 2019 , there were 1,700,000 shares reserved for future issuance under the 2017 Equity Incentive Plan, including 262,200 restricted share units that were granted during the first quarter of fiscal 2019 . The 2017 Equity Incentive plan is administered by the Compensation Committee of the Board of Directors. With respect to the 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. With respect to the restricted share unit grants, units generally vest on the third anniversary of the grant date. The number of units that vest depend on certain time and performance thresholds. Approximately forty percent of the shares vest based on time, while the remaining vest based on pre-defined performance thresholds. The Company issues common stock from treasury shares once vested. For the three-month periods ended June 30, 2019 and 2018 , stock-based compensation cost totaled $1,156 and $2,399 , respectively. For the nine-month periods ended June 30, 2019 and 2018 , stock-based compensation cost totaled and $6,169 and $10,531 , respectively. The nine -month periods ended June 30, 2019 and 2018 included $1,849 and $2,850 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 $283 and $588 for the three-month periods ended June 30, 2019 and 2018 , respectively, and $1,153 and $2,108 for the nine -month periods ended June 30, 2019 and 2018 , respectively. Note 7. Share-Based Payments (continued) The transactions for restricted shares and restricted share units for the nine months ended June 30, 2019 were as follows: Shares /Units Weighted- average Grant-date Fair Value Non-vested at September 30, 2018 554,233 $ 55.71 Granted 262,200 42.21 Vested (180,256 ) 57.94 Expired or forfeited (19,601 ) 45.97 Non-vested at June 30, 2019 616,576 $ 49.63 As of June 30, 2019 , the total unrecognized compensation cost related to unvested restricted stock was $8,854 and is expected to be recognized over a weighted average period of 2.1 years. The Company maintains the 2019 Director Fee Plan, the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan (collectively, the "Director Fee Plans"). The 2019 Director Fee Plan was approved by the Company’s shareholders at the 2019 Annual Meeting of Shareholders on February 21, 2019. There will be no further fees or share-based awards granted under the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan. Under the 2019 Director Fee Plan, non-employee directors (except for the Chairman of the Board) each receive, as an annual retainer fee for fiscal 2019 , either cash or shares of the Company's Class A Common Stock with a value equal to $85 . The annual retainer fee for fiscal 2019 paid to the 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 total number of shares of stock that have been authorized to be issued under the 2019 Director Fee Plan or credited to a deferred stock compensation account for subsequent issuance is 150,000 shares of Common Stock (subject to adjustment upon certain events such as stock dividends or stock splits). The value of deferred shares is recorded in other liabilities. A total of 25,583 shares had been deferred under the Director Fee Plans as of June 30, 2019 . Additionally, non-employee directors each receive an annual stock-based grant (non-statutory stock options, stock appreciation rights and/or restricted shares or units) with a value of $125 for fiscal 2019 . 196,266 restricted shares and restricted share units have been granted under the Director Fee Plans, 23,037 of which were issued under the 2019 Director Fee Plan. 34,542 restricted shares and restricted share units are unvested at June 30, 2019 |
Earnings Per Share Attributable
Earnings Per Share Attributable to Matthews' Shareholders | 9 Months Ended |
Jun. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Net income attributable to Matthews shareholders $ 14,629 $ 24,414 $ 33,143 $ 77,776 Weighted-average shares outstanding (in thousands): Basic shares 31,347 31,631 31,487 31,693 Effect of dilutive securities 147 150 138 132 Diluted shares 31,494 31,781 31,625 31,825 Anti-dilutive securities excluded from the dilution calculation were insignificant for the three and nine months ended June 30, 2019 and 2018 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Jun. 30, 2019 | |
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 June 30, Pension Other Postretirement 2019 2018 2019 2018 Service cost $ 2,000 $ 2,039 $ 61 $ 84 Interest cost * 2,301 2,049 180 158 Expected return on plan assets * (2,596 ) (2,534 ) — — Amortization: Prior service cost (46 ) (35 ) (49 ) (49 ) Net actuarial loss (gain) * 1,081 1,753 (15 ) — Net benefit cost $ 2,740 $ 3,272 $ 177 $ 193 Nine months ended June 30, Pension Other Postretirement 2019 2018 2019 2018 Service cost $ 6,000 $ 6,117 $ 183 $ 252 Interest cost * 6,903 6,147 540 474 Expected return on plan assets * (7,788 ) (7,602 ) — — Amortization: Prior service cost (138 ) (105 ) (147 ) (147 ) Net actuarial loss (gain) * 3,242 5,257 (45 ) — Net benefit cost $ 8,219 $ 9,814 $ 531 $ 579 * Non-service components of pension and postretirement expense are included in other income (deductions), net. 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 2019 . Contributions made and anticipated for fiscal year 2019 are as follows: Contributions Pension Other Postretirement Contributions during the nine months ended June 30, 2019: Supplemental retirement plan $ 587 $ — Other postretirement plan — 914 Additional contributions expected in fiscal 2019: Supplemental retirement plan $ 270 $ — Other postretirement plan — 161 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2019 $ (36,413 ) $ (147,390 ) $ 3,617 $ (180,186 ) OCI before reclassification — 2,639 (2,372 ) 267 Amounts reclassified from AOCI 705 (a) — (660 ) (b) 45 Net current-period OCI 705 2,639 (3,032 ) 312 Balance, June 30, 2019 $ (35,708 ) $ (144,751 ) $ 585 $ (179,874 ) Attributable to noncontrolling interest: Balance, March 31, 2019 — $ 473 — $ 473 OCI before reclassification — (5 ) — (5 ) Net current-period OCI — (5 ) — (5 ) Balance, June 30, 2019 — 468 — 468 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2018 $ (41,583 ) $ (93,896 ) $ 7,137 $ (128,342 ) OCI before reclassification — (38,669 ) 393 (38,276 ) Amounts reclassified from AOCI 1,256 (a) — (399 ) (b) 857 Net current-period OCI 1,256 (38,669 ) (6 ) (37,419 ) Reclassification of AOCI tax effects (9,884 ) (c) — 1,070 (c) (8,814 ) Balance, June 30, 2018 $ (50,211 ) $ (132,565 ) $ 8,201 $ (174,575 ) Attributable to noncontrolling interest: Balance, March 31, 2018 — $ 499 — $ 499 OCI before reclassification — (23 ) — (23 ) Net current-period OCI — (23 ) — (23 ) Balance, June 30, 2018 — 476 — 476 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 9). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 6). (c) Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . Note 10. Accumulated Other Comprehensive Income (continued) The changes in AOCI by component, net of tax, for the nine -month periods ended June 30, 2019 and 2018 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2018 $ (37,876 ) $ (134,960 ) $ 8,538 $ (164,298 ) OCI before reclassification — (9,791 ) (6,074 ) (15,865 ) Amounts reclassified from AOCI 2,168 (a) — (1,879 ) (b) 289 Net current-period OCI 2,168 (9,791 ) (7,953 ) (15,576 ) Balance, June 30, 2019 $ (35,708 ) $ (144,751 ) $ 585 $ (179,874 ) Attributable to noncontrolling interest: Balance, September 30, 2018 — $ 467 — $ 467 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, June 30, 2019 — 468 — 468 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 — (19,658 ) 5,286 (14,372 ) Amounts reclassified from AOCI 3,296 (a) — (570 ) (b) 2,726 Net current-period OCI 3,296 (19,658 ) 4,716 (11,646 ) Reclassification of AOCI tax effects (9,884 ) (c) — 1,070 (c) (8,814 ) Balance, June 30, 2018 $ (50,211 ) $ (132,565 ) $ 8,201 $ (174,575 ) Attributable to noncontrolling interest: Balance, September 30, 2017 — $ 396 — $ 396 OCI before reclassification — 80 — 80 Net current-period OCI — 80 — 80 Balance, June 30, 2018 — 476 — 476 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 9). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 6). (c) Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . Note 10. Accumulated Other Comprehensive Income (continued) Reclassifications out of AOCI for the three and nine -month periods ended June 30, 2019 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended June 30, 2019 Nine Months Ended June 30, 2019 Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 95 (a) $ 285 Actuarial losses (1,066 ) (a) (3,197 ) (971 ) (b) (2,912 ) Income before income tax 266 744 Income taxes $ (705 ) $ (2,168 ) Net income Derivatives Interest rate swap contracts $ 874 $ 2,489 Interest expense 874 (b) 2,489 Income before income tax (214 ) (610 ) Income taxes $ 660 $ 1,879 Net income Reclassifications out of AOCI for the three and nine -month periods ended June 30, 2018 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended June 30, 2018 Nine Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 84 (a) $ 252 Actuarial losses (1,753 ) (a) (5,257 ) (1,669 ) (b) (5,005 ) Income before income tax 413 1,709 Income taxes $ (1,256 ) $ (3,296 ) Net income Derivatives Interest rate swap contracts $ 490 $ 755 Interest expense 490 (b) 755 Income before income tax (91 ) (185 ) Income taxes $ 399 $ 570 Net income (a) Prior service cost 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. Actuarial losses are reported in other income (deductions), net. For additional information, see Note 9. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2019 | |
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 nine months ended June 30, 2019 were an expense of $4,429 , compared to an income tax benefit of $18,703 for the first nine months of fiscal 2018 . The differences between the Company’s fiscal 2019 nine month effective tax rate and the fiscal 2018 nine month effective tax rate primarily resulted from the implementation of the U.S. Tax Cuts and Jobs Act (the "Tax Act”) during fiscal 2018. The Company’s fiscal 2019 nine month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to tax planning completed during the second quarter of fiscal 2019 that resulted in a discrete tax benefit. As of December 31, 2018, the Company completed its analysis of the impact of the Tax Act in accordance with U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118 and the amounts are no longer considered provisional. Foreign tax effects : The Company completed the estimate for its one-time transition tax for all of its foreign subsidiaries, resulting in a decrease in income tax expense of $ 300 for the three months ended December 31, 2018. 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. 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. Global intangible low taxed income ("GILTI") : The Tax Act created a new requirement that certain income earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. Under U.S. GAAP, the Company is permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred or to factor such amounts into the Company's measurement of its deferred taxes. The Company has made the election to treat taxes due on future inclusions related to GILTI as current period expense. The Company was able to make reasonable estimates to calculate a provision that is included in the current period expense. The Company will continue to evaluate and update this provision and the application of ASC 740 - Income Taxes . The Company had unrecognized tax benefits (excluding penalties and interest) of $14,531 and $14,827 on June 30, 2019 and September 30, 2018 , respectively, of which $10,423 and $10,718 would impact the annual effective rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $2,438 in the next 12 months primarily due to the completion of audits and the expiration of the statute of limitations. The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. Total penalties and interest accrued were $2,767 and $2,229 at June 30, 2019 and September 30, 2018 , 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 June 30, 2019 , the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2015 and forward United States – State 2014 and forward Canada 2015 and forward Germany 2015 and forward United Kingdom 2017 and forward Australia 2015 and forward Singapore 2014 and forward |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2019 | |
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 consists of brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. 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. Beginning in fiscal 2019, the Company changed its primary measure of segment profitability from operating profit to adjusted earnings before interest, income taxes, depreciation and amortization ("adjusted EBITDA"). Adjusted EBITDA is defined by the Company as earnings before interest, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of its operating results. These items include stock-based compensation, the non-service portion of pension and postretirement expense, acquisition costs, ERP integration costs, and strategic initiatives and other charges. This presentation is consistent with how the Company's chief operating decision maker (the “CODM”) evaluates the results of operations and makes strategic decisions about the business. For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss. In addition, the CODM manages and evaluates the operating performance of the segments, as described above, on a pre-corporate cost allocation basis. Accordingly, for segment reporting purposes, the Company has discontinued allocating corporate costs to its reportable segments beginning in fiscal 2019. Corporate costs include management and administrative support to the Company, which consists of certain aspects of the Company’s executive management, legal, compliance, human resources, information technology (including operational support) and finance departments. These costs are included within "Corporate and Non-Operating" in the following table to reconcile to consolidated adjusted EBITDA and are not considered a separate reportable segment. Management does not allocate non-operating items such as investment income, other income (deductions), net and noncontrolling interest to the segments. Note 12. Segment Information (continued) The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income. Segment financial information for the three and nine months ended June 30, 2018 has been revised to present the prior period information on a comparable basis. Three Months Ended Nine Months Ended 2019 2018 2019 2018 Sales: SGK Brand Solutions $ 181,930 $ 202,976 $ 557,881 $ 601,794 Memorialization 158,217 161,979 474,279 475,557 Industrial Technologies 39,147 46,666 112,711 117,785 Consolidated Sales $ 379,294 $ 411,621 $ 1,144,871 $ 1,195,136 Adjusted EBITDA: SGK Brand Solutions $ 29,891 $ 37,003 $ 86,612 $ 102,954 Memorialization 36,075 39,677 101,361 107,598 Industrial Technologies 7,278 8,241 15,665 16,809 Corporate and Non-Operating (14,290 ) (15,709 ) (42,015 ) (49,198 ) Total Adjusted EBITDA $ 58,954 $ 69,212 $ 161,623 $ 178,163 Acquisition costs (1)** (2,980 ) (3,519 ) (8,386 ) (9,309 ) ERP integration costs (2)** (2,355 ) (2,710 ) (6,337 ) (8,278 ) Strategic initiatives and other charges (3)** (1,037 ) (647 ) (3,149 ) (2,862 ) Loss on divestiture (4) — — (4,465 ) — Joint Venture depreciation, amortization and interest expense (5) (866 ) — (866 ) — Stock-based compensation (1,156 ) (2,399 ) (6,169 ) (10,531 ) Non-service pension and postretirement expense (6) (951 ) (1,426 ) (2,852 ) (4,276 ) Depreciation and amortization * (20,483 ) (20,066 ) (60,759 ) (57,052 ) Interest expense (10,508 ) (9,719 ) (31,068 ) (26,782 ) Net loss attributable to noncontrolling interests (205 ) (69 ) (541 ) (201 ) Income before income taxes 18,413 28,657 37,031 58,872 Income tax (provision) benefit (3,989 ) (4,312 ) (4,429 ) 18,703 Net income $ 14,424 $ 24,345 $ 32,602 $ 77,575 (1) Includes certain non-recurring costs associated with recent acquisition activities. (2) Represents costs associated with global ERP system integration efforts. (3) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (4) Represents a loss on the sale of a controlling interest in a Memorialization business. (5) Represents the Company's portion of depreciation, intangible amortization and interest expense incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment. (6) Non-service pension and postretirement expense includes interest cost, expected return on plan assets and amortization of actuarial gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans. * Depreciation and amortization was $12,757 and $11,718 for the SGK Brand Solutions segment, $4,840 and $5,463 for the Memorialization segment, $1,545 and $1,554 for the Industrial Technologies segment, and $1,341 and $1,331 for Corporate and Non-Operating, for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization was $ 37,364 and $34,550 for the SGK Brand Solutions segment, $14,898 and $14,777 for the Memorialization segment, $4,630 and $4,156 for the Industrial Technologies segment, and $3,867 and $3,569 for Corporate and Non-Operating, for the nine months ended June 30, 2019 and 2018, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $449 and $2,299 for the SGK Brand Solutions segment and $5,923 and $4,108 for Corporate and Non-Operating, for the three months ended June 30, 2019 and 2018, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 467 for the Memorialization segment and $ 2 for the Industrial Technologies segment for the three months ended June 30, 2018. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $3,858 and $5,484 for the SGK Brand Solutions segment and $14,014 and $12,979 for Corporate and Non-Operating, for the nine months ended June 30, 2019 and 2018, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 1,397 for the Memorialization segment and $ 589 for the Industrial Technologies segment for the nine months ended June 30, 2018. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Fiscal 2019: On November 1, 2018 the Company acquired 80% ownership of Frost Converting Systems, Inc. (“Frost”) for a purchase price of approximately $ 7,183 (net of cash acquired and holdback amounts, subject to working capital adjustments). Frost is a leading global supplier of high-performance rotary dies for embossing, creasing and cutting of paperboard packaging and is included in the Company's SGK Brand Solutions segment. The preliminary purchase price allocation related to the Frost acquisition is not finalized as of June 30, 2019 , 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 2019, the Company completed the sale of a 51% ownership interest in a small Memorialization business. Net proceeds from this sale totaled approximately $ 8,254 , and the transaction resulted in the recognition of a $ 4,465 loss, which is included as a component of administrative expenses for the nine months ended June 30, 2019 . Immediately following the transaction, the Company retained a non-controlling interest in this business, which will be accounted for as an equity-method investment. During fiscal 2019, the Company completed a small acquisition in the Memorialization segment for a purchase price of $ 3,094 (net of cash acquired and holdback amounts, subject to working capital adjustments). The preliminary purchase price allocation is not finalized as of June 30, 2019 and is subject to changes as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. Fiscal 2018: On February 1, 2018, the Company acquired certain net assets of Star Granite and Bronze International, Inc. ("Star Granite") for a total purchase price of $35,961 , consisting of cash of $30,961 (net of cash acquired and holdback amounts) and shares of Matthews common stock valued at $5,000 . Star Granite manufactures and distributes granite and other memorialization products to cemetery and other customers across the United States and is included in the Company's Memorialization segment. Annual sales for this business were approximately $31,000 prior to the acquisition. The Company finalized the allocation of the purchase price related to the Star Granite acquisition in the second quarter of fiscal 2019, resulting in an immaterial adjustment to certain working capital accounts. On November 28, 2017, the Company acquired Compass Engineering Group, Inc. ("Compass") for $51,887 (net of cash acquired). Compass provides high-quality material handling control solutions and is included in the Company's Industrial Technologies segment. Annual sales for this business were approximately $24,000 prior to the acquisition. The Company finalized the allocation of the purchase price related to the Compass acquisition in the fourth quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital accounts. During fiscal 2018, the Company completed several additional smaller acquisitions for an aggregate purchase price of $39,465 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jun. 30, 2019 | |
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 $ 491,070 $ 376,550 $ 92,026 $ 959,646 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2018 485,318 371,550 92,026 948,894 Additions during period 1,506 3,592 — 5,098 Divestiture during period — (14,970 ) — $ (14,970 ) Translation and other adjustments (4,319 ) 623 (219 ) (3,915 ) Goodwill $ 488,257 $ 365,795 $ 91,807 $ 945,859 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at June 30, 2019 $ 482,505 $ 360,795 $ 91,807 $ 935,107 The Company performed its annual impairment review in the second quarter of fiscal 2019 and determined that estimated fair value for all reporting units exceeded carrying value, therefore no adjustments to the carrying value of goodwill were necessary. Recent market conditions in the United States have unfavorably impacted the operating results of one of the reporting units in the Company's SGK Brand Solutions segment. The estimated fair value of this reporting unit exceeded the carrying value (expressed as a percentage of carrying value) by approximately 10%, resulting in no goodwill impairment for the reporting unit. If the reporting unit's operating results deteriorate further, an impairment charge could be recognized in future periods. The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of June 30, 2019 and September 30, 2018 , respectively. Carrying Amount Accumulated Amortization Net June 30, 2019 Trade names $ 33,547 $ — * $ 33,547 Trade names 145,795 (11,696 ) 134,099 Customer relationships 376,392 (130,550 ) 245,842 Copyrights/patents/other 20,706 (13,399 ) 7,307 $ 576,440 $ (155,645 ) $ 420,795 September 30, 2018 : Trade names $ 126,047 $ — * $ 126,047 Trade names 53,523 (5,444 ) 48,079 Customer relationships 372,382 (110,760 ) 261,622 Copyrights/patents/other 20,848 (12,686 ) 8,162 *Not subject to amortization $ 572,800 $ (128,890 ) $ 443,910 The net change in intangible assets during the nine months ended June 30, 2019 included the impact of foreign currency fluctuations during the period, additional amortization, additions related to the Frost acquisition, and reductions from the divestiture of a Memorialization business. During the second quarter of fiscal 2019, the Company reassessed certain of its trade names and converted them from indefinite-lived to definite-lived, and accordingly, these intangible assets are now subject to amortization. Amortization expense on intangible assets was $9,543 and $8,334 for the three-month periods ended June 30, 2019 and 2018 , respectively. For the nine-month periods ended June 30, 2019 and 2018 , amortization expense was $27,165 and $23,264 , respectively. Amortization expense is estimated to be $9,705 for the remainder of fiscal 2019 , $37,226 in 2020 , $35,753 in 2021 , $34,112 in 2022 and $32,504 in 2023 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: Issued In August 2018, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2021. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements including the consideration of costs and benefits. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2020. 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 August 2017, the FASB issued ASU No. 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 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. Subsequently, the FASB issued several ASUs that address implementation issues and correct or improve certain aspects of the new lease guidance, including ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and ASU 2019-01, Leases (Topic 842): Codification Improvements . These ASUs do not change the core principles in the lease guidance outlined above. ASU No. 2018-11 provides an additional transition method to adopt ASU No. 2016-02. Under the new transition method, an entity initially applies the new leases standard at the adoption date versus at the beginning of the earliest period presented and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has elected to use this transition method at the adoption date of October 1, 2019. ASU No. 2016-02 and the related ASUs referenced above are effective for the Company beginning in interim periods starting in fiscal year 2020. The Company is in the process of assessing the impact these ASUs will have on its consolidated financial statements. Adopted In May 2017, the FASB issued ASU No. 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. The adoption of this ASU in the first quarter ended December 31, 2018 had no impact on the Company's 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. ASU 2017-07 requires a company to present the service cost components of net periodic benefit cost in the same income statement line as other employee compensation costs, with the remaining components of net periodic benefit cost presented separately from the service cost components and outside of any subtotal of operating income, if one is presented. The Company adopted this standard on October 1, 2018 applying the presentation requirements retrospectively. For the three months ended June 30, 2018 , the Company reclassified net benefit costs of $ 714 , $ 226 and $ 485 , from cost of sales, selling expense and administrative expense, respectively, to other income (deductions), net. For the nine months ended June 30, 2018 , the Company reclassified net benefit costs of $ 2,142 , $ 678 and $ 1,455 from cost of sales, selling expense and administrative expense, respectively, to other income (deductions), net. 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. The adoption of this ASU in the first quarter ended December 31, 2018 had no impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted ASU 2016-16 on October 1, 2018 using the modified retrospective method which resulted in a decrease to retained earnings and other assets of $ 4,176 . 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. The adoption of this ASU in the first quarter ended December 31, 2018 did not have a material impact on the Company's consolidated financial statements. Note 2. Basis of Presentation (continued) 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. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10), that provides guidance related to implementation issues and corrects or improves certain aspects of the financial instruments guidance. The adoption of these ASUs in the first quarter ended December 31, 2018 had no 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. The Company adopted the provisions of these ASUs in the first fiscal quarter of 2019, using the modified retrospective method. The adoption of these ASUs did not impact the Company's consolidated financial statements and therefore, there was no cumulative effect adjustment recognized to retained earnings on October 1, 2018. Refer to Note 3, “Revenue Recognition,” for a further discussion. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated sales by segment and region for the three and nine months ended June 30, 2019 and 2018 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2019 2018 2019 2018 2019 2018 2019 2018 North America $ 77,223 $ 87,665 $ 146,131 $ 150,418 $ 31,589 $ 38,071 $ 254,943 $ 276,154 Central and South America 1,619 1,734 — — — — 1,619 1,734 Europe 89,254 98,313 9,847 9,065 7,076 7,175 106,177 114,553 Australia 2,912 3,457 2,239 2,496 — — 5,151 5,953 Asia 10,922 11,807 — — 482 1,420 11,404 13,227 Total Sales $ 181,930 $ 202,976 $ 158,217 $ 161,979 $ 39,147 $ 46,666 $ 379,294 $ 411,621 SGK Brand Solutions Memorialization Industrial Technologies Consolidated Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 North America $ 235,975 $ 264,227 $ 440,865 $ 439,679 $ 90,291 $ 91,539 $ 767,131 $ 795,445 Central and South America 4,316 4,870 — — — — 4,316 4,870 Europe 275,842 288,886 26,611 28,079 20,448 22,537 322,901 339,502 Australia 8,772 9,467 6,803 7,799 — — 15,575 17,266 Asia 32,976 34,344 — — 1,972 3,709 34,948 38,053 Total Sales $ 557,881 $ 601,794 $ 474,279 $ 475,557 $ 112,711 $ 117,785 $ 1,144,871 $ 1,195,136 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 September 30, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 1,458 $ — $ 1,458 $ — $ 11,309 $ — $ 11,309 Equity and fixed income mutual funds — 22,984 — 22,984 — 22,758 — 22,758 Life insurance policies — 4,236 — 4,236 — 5,894 — 5,894 Total assets at fair value $ — $ 28,678 $ — $ 28,678 $ — $ 39,961 $ — $ 39,961 Liabilities: Derivatives (1) $ — $ 683 $ — $ 683 $ — $ — $ — $ — Total liabilities at fair value $ — $ 683 $ — $ 683 $ — $ — $ — $ — (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) | 9 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: June 30, 2019 September 30, 2018 Raw materials $ 37,373 $ 34,880 Work in process 76,351 67,827 Finished goods 74,934 77,744 $ 188,658 $ 180,451 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 September 30, 2018 Pay fixed swaps - notional amount $ 300,000 $ 343,750 Net unrealized gain $ 775 $ 11,309 Weighted-average maturity period (years) 2.2 2.7 Weighted-average received rate 2.40 % 2.26 % Weighted-average pay rate 1.40 % 1.37 % |
Interest Rate Swap Contracts as Reflected on Balance Sheet | At June 30, 2019 and September 30, 2018 , the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives June 30, 2019 September 30, 2018 Current assets: Other current assets $ 821 $ 3,867 Long-term assets: Other assets 637 7,442 Current liabilities: Other current liabilities (222 ) — Long-term liabilities: Other liabilities (461 ) — Total derivatives $ 775 $ 11,309 |
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 Amount of Gain Recognized in Income on Derivatives Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest rate swaps Interest expense $ 874 $ 490 $ 2,489 $ 755 The Company recognized the following (losses) gains in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in AOCI on Derivatives Location of Gain Reclassified From AOCI into Income (Effective Portion*) Amount of Gain Reclassified from AOCI into Income (Effective Portion*) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest rate swaps $ (6,074 ) $ 5,286 Interest expense $ 1,879 $ 570 *There is no ineffective portion or amount excluded from effectiveness testing. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Activity | The transactions for restricted shares and restricted share units for the nine months ended June 30, 2019 were as follows: Shares /Units Weighted- average Grant-date Fair Value Non-vested at September 30, 2018 554,233 $ 55.71 Granted 262,200 42.21 Vested (180,256 ) 57.94 Expired or forfeited (19,601 ) 45.97 Non-vested at June 30, 2019 616,576 $ 49.63 |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Matthews' Shareholders (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Net income attributable to Matthews shareholders $ 14,629 $ 24,414 $ 33,143 $ 77,776 Weighted-average shares outstanding (in thousands): Basic shares 31,347 31,631 31,487 31,693 Effect of dilutive securities 147 150 138 132 Diluted shares 31,494 31,781 31,625 31,825 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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 June 30, Pension Other Postretirement 2019 2018 2019 2018 Service cost $ 2,000 $ 2,039 $ 61 $ 84 Interest cost * 2,301 2,049 180 158 Expected return on plan assets * (2,596 ) (2,534 ) — — Amortization: Prior service cost (46 ) (35 ) (49 ) (49 ) Net actuarial loss (gain) * 1,081 1,753 (15 ) — Net benefit cost $ 2,740 $ 3,272 $ 177 $ 193 Nine months ended June 30, Pension Other Postretirement 2019 2018 2019 2018 Service cost $ 6,000 $ 6,117 $ 183 $ 252 Interest cost * 6,903 6,147 540 474 Expected return on plan assets * (7,788 ) (7,602 ) — — Amortization: Prior service cost (138 ) (105 ) (147 ) (147 ) Net actuarial loss (gain) * 3,242 5,257 (45 ) — Net benefit cost $ 8,219 $ 9,814 $ 531 $ 579 * Non-service components of pension and postretirement expense are included in other income (deductions), net. |
Contributions Made and Anticipated for the Current Fiscal Year | Contributions made and anticipated for fiscal year 2019 are as follows: Contributions Pension Other Postretirement Contributions during the nine months ended June 30, 2019: Supplemental retirement plan $ 587 $ — Other postretirement plan — 914 Additional contributions expected in fiscal 2019: Supplemental retirement plan $ 270 $ — Other postretirement plan — 161 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2019 $ (36,413 ) $ (147,390 ) $ 3,617 $ (180,186 ) OCI before reclassification — 2,639 (2,372 ) 267 Amounts reclassified from AOCI 705 (a) — (660 ) (b) 45 Net current-period OCI 705 2,639 (3,032 ) 312 Balance, June 30, 2019 $ (35,708 ) $ (144,751 ) $ 585 $ (179,874 ) Attributable to noncontrolling interest: Balance, March 31, 2019 — $ 473 — $ 473 OCI before reclassification — (5 ) — (5 ) Net current-period OCI — (5 ) — (5 ) Balance, June 30, 2019 — 468 — 468 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2018 $ (41,583 ) $ (93,896 ) $ 7,137 $ (128,342 ) OCI before reclassification — (38,669 ) 393 (38,276 ) Amounts reclassified from AOCI 1,256 (a) — (399 ) (b) 857 Net current-period OCI 1,256 (38,669 ) (6 ) (37,419 ) Reclassification of AOCI tax effects (9,884 ) (c) — 1,070 (c) (8,814 ) Balance, June 30, 2018 $ (50,211 ) $ (132,565 ) $ 8,201 $ (174,575 ) Attributable to noncontrolling interest: Balance, March 31, 2018 — $ 499 — $ 499 OCI before reclassification — (23 ) — (23 ) Net current-period OCI — (23 ) — (23 ) Balance, June 30, 2018 — 476 — 476 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 9). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 6). (c) Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . Note 10. Accumulated Other Comprehensive Income (continued) The changes in AOCI by component, net of tax, for the nine -month periods ended June 30, 2019 and 2018 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2018 $ (37,876 ) $ (134,960 ) $ 8,538 $ (164,298 ) OCI before reclassification — (9,791 ) (6,074 ) (15,865 ) Amounts reclassified from AOCI 2,168 (a) — (1,879 ) (b) 289 Net current-period OCI 2,168 (9,791 ) (7,953 ) (15,576 ) Balance, June 30, 2019 $ (35,708 ) $ (144,751 ) $ 585 $ (179,874 ) Attributable to noncontrolling interest: Balance, September 30, 2018 — $ 467 — $ 467 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, June 30, 2019 — 468 — 468 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 — (19,658 ) 5,286 (14,372 ) Amounts reclassified from AOCI 3,296 (a) — (570 ) (b) 2,726 Net current-period OCI 3,296 (19,658 ) 4,716 (11,646 ) Reclassification of AOCI tax effects (9,884 ) (c) — 1,070 (c) (8,814 ) Balance, June 30, 2018 $ (50,211 ) $ (132,565 ) $ 8,201 $ (174,575 ) Attributable to noncontrolling interest: Balance, September 30, 2017 — $ 396 — $ 396 OCI before reclassification — 80 — 80 Net current-period OCI — 80 — 80 Balance, June 30, 2018 — 476 — 476 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 9). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 6). (c) Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . |
Reclassifications out of AOCI | Reclassifications out of AOCI for the three and nine -month periods ended June 30, 2019 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended June 30, 2019 Nine Months Ended June 30, 2019 Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 95 (a) $ 285 Actuarial losses (1,066 ) (a) (3,197 ) (971 ) (b) (2,912 ) Income before income tax 266 744 Income taxes $ (705 ) $ (2,168 ) Net income Derivatives Interest rate swap contracts $ 874 $ 2,489 Interest expense 874 (b) 2,489 Income before income tax (214 ) (610 ) Income taxes $ 660 $ 1,879 Net income Reclassifications out of AOCI for the three and nine -month periods ended June 30, 2018 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended June 30, 2018 Nine Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 84 (a) $ 252 Actuarial losses (1,753 ) (a) (5,257 ) (1,669 ) (b) (5,005 ) Income before income tax 413 1,709 Income taxes $ (1,256 ) $ (3,296 ) Net income Derivatives Interest rate swap contracts $ 490 $ 755 Interest expense 490 (b) 755 Income before income tax (91 ) (185 ) Income taxes $ 399 $ 570 Net income (a) Prior service cost 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. Actuarial losses are reported in other income (deductions), net. For additional information, see Note 9. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax Years Subject to Examination | As of June 30, 2019 , the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2015 and forward United States – State 2014 and forward Canada 2015 and forward Germany 2015 and forward United Kingdom 2017 and forward Australia 2015 and forward Singapore 2014 and forward |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Information About the Company's Segments | The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income. Segment financial information for the three and nine months ended June 30, 2018 has been revised to present the prior period information on a comparable basis. Three Months Ended Nine Months Ended 2019 2018 2019 2018 Sales: SGK Brand Solutions $ 181,930 $ 202,976 $ 557,881 $ 601,794 Memorialization 158,217 161,979 474,279 475,557 Industrial Technologies 39,147 46,666 112,711 117,785 Consolidated Sales $ 379,294 $ 411,621 $ 1,144,871 $ 1,195,136 Adjusted EBITDA: SGK Brand Solutions $ 29,891 $ 37,003 $ 86,612 $ 102,954 Memorialization 36,075 39,677 101,361 107,598 Industrial Technologies 7,278 8,241 15,665 16,809 Corporate and Non-Operating (14,290 ) (15,709 ) (42,015 ) (49,198 ) Total Adjusted EBITDA $ 58,954 $ 69,212 $ 161,623 $ 178,163 Acquisition costs (1)** (2,980 ) (3,519 ) (8,386 ) (9,309 ) ERP integration costs (2)** (2,355 ) (2,710 ) (6,337 ) (8,278 ) Strategic initiatives and other charges (3)** (1,037 ) (647 ) (3,149 ) (2,862 ) Loss on divestiture (4) — — (4,465 ) — Joint Venture depreciation, amortization and interest expense (5) (866 ) — (866 ) — Stock-based compensation (1,156 ) (2,399 ) (6,169 ) (10,531 ) Non-service pension and postretirement expense (6) (951 ) (1,426 ) (2,852 ) (4,276 ) Depreciation and amortization * (20,483 ) (20,066 ) (60,759 ) (57,052 ) Interest expense (10,508 ) (9,719 ) (31,068 ) (26,782 ) Net loss attributable to noncontrolling interests (205 ) (69 ) (541 ) (201 ) Income before income taxes 18,413 28,657 37,031 58,872 Income tax (provision) benefit (3,989 ) (4,312 ) (4,429 ) 18,703 Net income $ 14,424 $ 24,345 $ 32,602 $ 77,575 (1) Includes certain non-recurring costs associated with recent acquisition activities. (2) Represents costs associated with global ERP system integration efforts. (3) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (4) Represents a loss on the sale of a controlling interest in a Memorialization business. (5) Represents the Company's portion of depreciation, intangible amortization and interest expense incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment. (6) Non-service pension and postretirement expense includes interest cost, expected return on plan assets and amortization of actuarial gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans. * Depreciation and amortization was $12,757 and $11,718 for the SGK Brand Solutions segment, $4,840 and $5,463 for the Memorialization segment, $1,545 and $1,554 for the Industrial Technologies segment, and $1,341 and $1,331 for Corporate and Non-Operating, for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization was $ 37,364 and $34,550 for the SGK Brand Solutions segment, $14,898 and $14,777 for the Memorialization segment, $4,630 and $4,156 for the Industrial Technologies segment, and $3,867 and $3,569 for Corporate and Non-Operating, for the nine months ended June 30, 2019 and 2018, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $449 and $2,299 for the SGK Brand Solutions segment and $5,923 and $4,108 for Corporate and Non-Operating, for the three months ended June 30, 2019 and 2018, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 467 for the Memorialization segment and $ 2 for the Industrial Technologies segment for the three months ended June 30, 2018. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $3,858 and $5,484 for the SGK Brand Solutions segment and $14,014 and $12,979 for Corporate and Non-Operating, for the nine months ended June 30, 2019 and 2018, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 1,397 for the Memorialization segment and $ 589 for the Industrial Technologies segment for the nine months ended June 30, 2018. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
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 $ 491,070 $ 376,550 $ 92,026 $ 959,646 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2018 485,318 371,550 92,026 948,894 Additions during period 1,506 3,592 — 5,098 Divestiture during period — (14,970 ) — $ (14,970 ) Translation and other adjustments (4,319 ) 623 (219 ) (3,915 ) Goodwill $ 488,257 $ 365,795 $ 91,807 $ 945,859 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at June 30, 2019 $ 482,505 $ 360,795 $ 91,807 $ 935,107 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of June 30, 2019 and September 30, 2018 , respectively. Carrying Amount Accumulated Amortization Net June 30, 2019 Trade names $ 33,547 $ — * $ 33,547 Trade names 145,795 (11,696 ) 134,099 Customer relationships 376,392 (130,550 ) 245,842 Copyrights/patents/other 20,706 (13,399 ) 7,307 $ 576,440 $ (155,645 ) $ 420,795 September 30, 2018 : Trade names $ 126,047 $ — * $ 126,047 Trade names 53,523 (5,444 ) 48,079 Customer relationships 372,382 (110,760 ) 261,622 Copyrights/patents/other 20,848 (12,686 ) 8,162 *Not subject to amortization $ 572,800 $ (128,890 ) $ 443,910 |
Basis of Presentation New Accou
Basis of Presentation New Accounting Pronouncements Adopted (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net benefit costs reclassified into other income (deductions), net | $ (1,425) | $ (1,482) | $ (3,416) | $ (5,162) | |
Accounting Standards Update 2016-16 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative tax adjustment for intra-entity transfers | $ (4,176) | ||||
Cost of Sales | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adoption of ASU 2017-07 | 714 | 2,142 | |||
Net benefit costs reclassified into other income (deductions), net | 714 | 2,142 | |||
Selling Expense | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adoption of ASU 2017-07 | 226 | 678 | |||
Net benefit costs reclassified into other income (deductions), net | 226 | 678 | |||
Administrative Expense | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adoption of ASU 2017-07 | 485 | 1,455 | |||
Net benefit costs reclassified into other income (deductions), net | $ 485 | $ 1,455 | |||
Retained Earnings | Accounting Standards Update 2016-16 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative tax adjustment for intra-entity transfers | (4,176) | ||||
Other Assets | Accounting Standards Update 2016-16 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative tax adjustment for intra-entity transfers | $ (4,176) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 379,294 | $ 411,621 | $ 1,144,871 | $ 1,195,136 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 254,943 | 276,154 | 767,131 | 795,445 |
Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,619 | 1,734 | 4,316 | 4,870 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 106,177 | 114,553 | 322,901 | 339,502 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 5,151 | 5,953 | 15,575 | 17,266 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 11,404 | 13,227 | 34,948 | 38,053 |
SGK Brand Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 181,930 | 202,976 | 557,881 | 601,794 |
SGK Brand Solutions | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 77,223 | 87,665 | 235,975 | 264,227 |
SGK Brand Solutions | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,619 | 1,734 | 4,316 | 4,870 |
SGK Brand Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 89,254 | 98,313 | 275,842 | 288,886 |
SGK Brand Solutions | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 2,912 | 3,457 | 8,772 | 9,467 |
SGK Brand Solutions | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 10,922 | 11,807 | 32,976 | 34,344 |
Memorialization | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 158,217 | 161,979 | 474,279 | 475,557 |
Memorialization | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 146,131 | 150,418 | 440,865 | 439,679 |
Memorialization | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Memorialization | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 9,847 | 9,065 | 26,611 | 28,079 |
Memorialization | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 2,239 | 2,496 | 6,803 | 7,799 |
Memorialization | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 39,147 | 46,666 | 112,711 | 117,785 |
Industrial Technologies | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 31,589 | 38,071 | 90,291 | 91,539 |
Industrial Technologies | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 7,076 | 7,175 | 20,448 | 22,537 |
Industrial Technologies | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 482 | $ 1,420 | $ 1,972 | $ 3,709 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Assets: | ||
Derivatives | $ 1,458 | $ 11,309 |
Equity and fixed income mutual funds | 22,984 | 22,758 |
Life insurance policies | 4,236 | 5,894 |
Total assets at fair value | 28,678 | 39,961 |
Liabilities: | ||
Derivatives | 683 | 0 |
Total liabilities at fair value | 683 | 0 |
Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Life insurance policies | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Derivatives | 1,458 | 11,309 |
Equity and fixed income mutual funds | 22,984 | 22,758 |
Life insurance policies | 4,236 | 5,894 |
Total assets at fair value | 28,678 | 39,961 |
Liabilities: | ||
Derivatives | 683 | 0 |
Total liabilities at fair value | 683 | 0 |
Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Life insurance policies | 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 | Jun. 30, 2019 | Sep. 30, 2018 |
Inventories, net [Abstract] | ||
Raw materials | $ 37,373 | $ 34,880 |
Work in process | 76,351 | 67,827 |
Finished goods | 74,934 | 77,744 |
Inventories | $ 188,658 | $ 180,451 |
Debt - Narrative (Details)
Debt - Narrative (Details) £ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019EUR (€) | Sep. 30, 2018EUR (€) | Sep. 30, 2014GBP (£) | |
Line of Credit Facility [Line Items] | |||||||||||
Other debt | $ 2,917,000 | $ 2,917,000 | $ 5,399,000 | ||||||||
Foreign currency translation adjustment, net of tax | 2,634,000 | $ 153,000 | $ (12,577,000) | $ (38,692,000) | $ 11,503,000 | $ 7,611,000 | 1,002,000 | ||||
Foreign currency translation adjustment, tax | 325,000 | ||||||||||
Other current assets | 73,467,000 | 73,467,000 | 61,592,000 | ||||||||
Designated as Hedging Instrument | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Unrealized gain (loss) on fair value of interest rate swaps, before tax | 775,000 | 11,309,000 | |||||||||
Unrealized gain (loss) on fair value of interest rate swaps, after tax | 585,000 | 8,538,000 | |||||||||
Unrealized gain (loss) expected to be recognized over the next 12 months | $ 452,000 | $ 452,000 | |||||||||
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% | 1.40% | |||||||
Debt issued amount | $ 17,063,000 | $ 17,063,000 | € 15,000,000 | ||||||||
Fixed interest rate (as a percent) | 1.40% | 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 | $ 300,000,000 | |||||||||
Fixed interest rate (as a percent) | 5.25% | 5.25% | 5.25% | ||||||||
Securitization Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum amount of borrowings available | $ 115,000,000 | $ 115,000,000 | |||||||||
Outstanding borrowings | $ 98,850,000 | $ 98,850,000 | 102,250,000 | ||||||||
Interest rate on facility (as a percent) | 3.15% | 2.84% | 3.15% | 3.15% | |||||||
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) | 5.81% | 3.08% | 5.81% | 5.81% | |||||||
Revolving Credit Facility | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate during period (as a percent) | 1.50% | ||||||||||
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 | $ 900,000,000 | |||||||||
Maximum borrowing amount drawn In foreign currency | 150,000,000 | $ 150,000,000 | |||||||||
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 | $ 250,000,000 | |||||||||
Long term debt outstanding principal payment in year 1 (as a percent) | 5.00% | 5.00% | 5.00% | ||||||||
Long term debt outstanding principal payment in year 2 (as a percent) | 7.50% | 7.50% | 7.50% | ||||||||
Long term debt outstanding principal payment in year 3 (as a percent) | 10.00% | 10.00% | 10.00% | ||||||||
Outstanding borrowings | $ 53,456,000 | $ 53,456,000 | 212,086,000 | ||||||||
Additional unscheduled principal payment | $ 140,000,000 | ||||||||||
Long term debt outstanding principal payment in year 4 (as a percent) | 10.00% | 10.00% | 10.00% | ||||||||
Long term debt outstanding principal payment in year 5 (as a percent) | 10.00% | 10.00% | 10.00% | ||||||||
Term Loan | April 2016 Debt Amendment | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate during period (as a percent) | 1.50% | ||||||||||
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 | $ 35,000,000 | |||||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.75% | 2.82% | 2.75% | 2.75% | |||||||
Foreign Line of Credit | Credit Facility With European Bank | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum amount of borrowings available | $ 39,814,000 | $ 39,814,000 | € 35,000,000 | ||||||||
Outstanding borrowings | $ 4,899,000 | $ 4,899,000 | 3,211,000 | € 4,300,000 | € 2,800,000 | ||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.25% | 1.75% | 1.25% | 1.25% | |||||||
Letter of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Other current assets | $ 10,887,000 | $ 10,887,000 | £ 8,570 | ||||||||
United States of America, Dollars | Domestic Revolving Credit Facility | April 2016 Debt Amendment | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Outstanding borrowings | 360,058,000 | 360,058,000 | $ 319,500,000 | ||||||||
Euro Member Countries, Euro | Domestic Revolving Credit Facility | April 2016 Debt Amendment | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Outstanding borrowings | $ 142,194,000 | $ 142,194,000 | € 125,000,000 |
Debt - Interest Rate Contracts
Debt - Interest Rate Contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap contracts - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||
Pay fixed swaps - notional amount | $ 300,000,000 | $ 343,750,000 |
Net unrealized gain | $ 775,000 | $ 11,309,000 |
Weighted-average maturity period (years) | 2 years 2 months 12 days | 2 years 8 months 12 days |
Weighted-average received rate (as a percent) | 2.40% | 2.26% |
Weighted-average pay rate (as a percent) | 1.40% | 1.37% |
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 | Jun. 30, 2019 | Sep. 30, 2018 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ 775 | $ 11,309 |
Current assets: Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 821 | 3,867 |
Long-term assets: Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 637 | 7,442 |
Current Liabilities: Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | (222) | 0 |
Long-Term Liabilities: Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ (461) | $ 0 |
Debt - Gain (Loss) on Derivativ
Debt - Gain (Loss) on Derivatives (Details) - Cash Flow Hedging - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in AOCI on Derivatives | $ (6,074) | $ 5,286 | ||
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Recognized in Income on Derivatives | $ 874 | $ 490 | 2,489 | 755 |
Amount of Gain Reclassified from AOCI into Income (Effective Portion) | $ 1,879 | $ 570 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation cost | $ 1,156 | $ 2,399 | $ 6,169 | $ 10,531 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted under the 2017 Equity incentive plan | 262,200 | |||
Percent of shares vested on time | 40.00% | |||
Unrecognized compensation cost on non-vested awards | $ 8,854 | $ 8,854 | ||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 2 years 1 month 6 days | |||
Restricted stock awards unvested (in shares) | 34,542 | 34,542 | ||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 3 years | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 5 years | |||
Restricted Stock | After 3 Years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting increment | 50.00% | |||
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 | 25.00% | |||
Restricted Stock | Attainment of Pre-Defined Levels of Adjusted Earnings Per Share | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting increment | 25.00% | |||
2017 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) | 1,700,000 | 1,700,000 | ||
Shares reserved for future issuance under award plan (in shares) | 1,700,000 | 1,700,000 | ||
2017 Equity Incentive Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted under the 2017 Equity incentive plan | 262,200 | |||
Retirement Eligible Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation cost | $ 1,849 | 2,850 | ||
Future income tax benefit from compensation expense recognized | $ 283 | $ 588 | 1,153 | $ 2,108 |
2014 Director Fee Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual retainer fee paid to non-employee directors | 85 | |||
Annual retainer fee paid to non-employee Chairman of the Board | $ 185 | |||
2019 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 | 150,000 | ||
Director Fee Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares deferred under stock based compensation plan (in shares) | 25,583 | 25,583 | ||
Value of annual stock based grant | $ 125 | |||
Total restricted stock awards granted to date (in shares) | 196,266 | 196,266 | ||
Restricted stock awards unvested (in shares) | 23,037 | 23,037 |
Share-Based Payments - Restrict
Share-Based Payments - Restricted Stock Activity (Details) - Restricted Stock | 9 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares /Units | |
Non-vested at beginning of period (in shares) | 554,233 |
Granted (in shares) | 262,200 |
Vested (in shares) | (180,256) |
Expired or forfeited (in shares) | (19,601) |
Non-vested at end of period (in shares) | 616,576 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 55.71 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 42.21 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 57.94 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 45.97 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 49.63 |
2017 Equity Incentive Plan | |
Shares /Units | |
Granted (in shares) | 262,200 |
Earnings Per Share Attributab_3
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Matthews shareholders | $ 14,629 | $ 24,414 | $ 33,143 | $ 77,776 |
Weighted-average shares outstanding [Abstract] | ||||
Basic shares (in shares) | 31,347 | 31,631 | 31,487 | 31,693 |
Effect of dilutive securities (in shares) | 147 | 150 | 138 | 132 |
Diluted shares (in shares) | 31,494 | 31,781 | 31,625 | 31,825 |
Antidilutive securities excluded from dilution calculation (in shares) | 0 | 0 | 0 | 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | $ 2,000 | $ 2,039 | $ 6,000 | $ 6,117 |
Interest cost | 2,301 | 2,049 | 6,903 | 6,147 |
Expected return on plan assets | (2,596) | (2,534) | (7,788) | (7,602) |
Amortization: | ||||
Prior service cost | (46) | (35) | (138) | (105) |
Net actuarial loss (gain) | 1,081 | 1,753 | 3,242 | 5,257 |
Net benefit cost | 2,740 | 3,272 | 8,219 | 9,814 |
Other Postretirement | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 61 | 84 | 183 | 252 |
Interest cost | 180 | 158 | 540 | 474 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
Prior service cost | (49) | (49) | (147) | (147) |
Net actuarial loss (gain) | (15) | 0 | (45) | 0 |
Net benefit cost | 177 | $ 193 | 531 | $ 579 |
Contributions during the nine months ended June 30, 2019: | ||||
Other Postretirement | 914 | |||
Additional contributions expected in fiscal 2019: | ||||
Supplemental retirement plan | 161 | 161 | ||
Supplemental retirement plan | ||||
Contributions during the nine months ended June 30, 2019: | ||||
Pension | 587 | |||
Additional contributions expected in fiscal 2019: | ||||
Supplemental retirement plan | $ 270 | $ 270 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Attributable to Matthews: | ||||
Beginning balance | $ 847,461 | $ 852,082 | $ 868,714 | $ 790,259 |
OCI, net of tax | 307 | (37,442) | (15,575) | (11,566) |
Reclassification of accumulated other comprehensive (loss) income ('AOCI') tax effect | 0 | |||
Ending balance | 848,425 | 833,180 | 848,425 | 833,180 |
Post-retirement benefit plans | ||||
Attributable to Matthews: | ||||
Beginning balance | (36,413) | (41,583) | (37,876) | (43,623) |
OCI before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 705 | 1,256 | 2,168 | 3,296 |
OCI, net of tax | 705 | 1,256 | 2,168 | 3,296 |
Reclassification of accumulated other comprehensive (loss) income ('AOCI') tax effect | (9,884) | (9,884) | ||
Ending balance | (35,708) | (50,211) | (35,708) | (50,211) |
Currency translation adjustment | ||||
Attributable to Matthews: | ||||
Beginning balance | (147,390) | (93,896) | (134,960) | (112,907) |
OCI before reclassification | 2,639 | (38,669) | (9,791) | (19,658) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
OCI, net of tax | 2,639 | (38,669) | (9,791) | (19,658) |
Reclassification of accumulated other comprehensive (loss) income ('AOCI') tax effect | 0 | 0 | ||
Ending balance | (144,751) | (132,565) | (144,751) | (132,565) |
Derivatives | ||||
Attributable to Matthews: | ||||
Beginning balance | 3,617 | 7,137 | 8,538 | 2,415 |
OCI before reclassification | (2,372) | 393 | (6,074) | 5,286 |
Amounts reclassified from AOCI | (660) | (399) | (1,879) | (570) |
OCI, net of tax | (3,032) | (6) | (7,953) | 4,716 |
Reclassification of accumulated other comprehensive (loss) income ('AOCI') tax effect | 1,070 | 1,070 | ||
Ending balance | 585 | 8,201 | 585 | 8,201 |
AOCI Attributable to Parent | ||||
Attributable to Matthews: | ||||
Beginning balance | (180,186) | (128,342) | (164,298) | (154,115) |
OCI before reclassification | 267 | (38,276) | (15,865) | (14,372) |
Amounts reclassified from AOCI | 45 | 857 | 289 | 2,726 |
OCI, net of tax | 312 | (37,419) | (15,576) | (11,646) |
Reclassification of accumulated other comprehensive (loss) income ('AOCI') tax effect | (8,814) | (8,814) | ||
Ending balance | (179,874) | (174,575) | (179,874) | (174,575) |
Post-retirement benefit plans | ||||
Attributable to Matthews: | ||||
Beginning balance | 0 | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 | 0 |
OCI, net of tax | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
Currency translation adjustment | ||||
Attributable to Matthews: | ||||
Beginning balance | 473 | 499 | 467 | 396 |
OCI before reclassification | (5) | (23) | 1 | 80 |
OCI, net of tax | (5) | (23) | 1 | 80 |
Ending balance | 468 | 476 | 468 | 476 |
Derivatives | ||||
Attributable to Matthews: | ||||
Beginning balance | 0 | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 | 0 |
OCI, net of tax | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
AOCI Attributable to Noncontrolling Interest | ||||
Attributable to Matthews: | ||||
Beginning balance | 473 | 499 | 467 | 396 |
OCI before reclassification | (5) | (23) | 1 | 80 |
OCI, net of tax | (5) | (23) | 1 | 80 |
Ending balance | $ 468 | $ 476 | $ 468 | $ 476 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivatives | ||||||||
Interest expense | $ 10,508 | $ 9,719 | $ 31,068 | $ 26,782 | ||||
Income before income tax | 18,413 | 28,657 | 37,031 | 58,872 | ||||
Income taxes | (3,989) | (4,312) | (4,429) | 18,703 | ||||
Net income | 14,424 | $ 15,194 | $ 2,984 | 24,345 | $ 18,072 | $ 35,158 | 32,602 | 77,575 |
Prior service (cost) credit | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income before income tax | 95 | 84 | 285 | 252 | ||||
Actuarial losses | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income before income tax | (1,066) | (1,753) | (3,197) | (5,257) | ||||
Post-retirement benefit plans | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income before income tax | (971) | (1,669) | (2,912) | (5,005) | ||||
Net income | (705) | (1,256) | (2,168) | (3,296) | ||||
Derivatives | ||||||||
Income taxes | (266) | (413) | (744) | (1,709) | ||||
Derivatives | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net income | 660 | 399 | 1,879 | 570 | ||||
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Derivatives | ||||||||
Income before income tax | 874 | 490 | 2,489 | 755 | ||||
Income taxes | (214) | (91) | (610) | (185) | ||||
Net income | 660 | 399 | 1,879 | 570 | ||||
Derivatives | Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Derivatives | ||||||||
Interest expense | $ 874 | $ 490 | $ 2,489 | $ 755 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax expense (benefit) | $ 3,989 | $ 4,312 | $ 4,429 | $ (18,703) | ||
Federal statutory rate (as a percent) | 21.00% | |||||
Tax expense repatriation of foreign earnings | $ 300 | |||||
Unrecognized tax benefits | 14,531 | $ 14,531 | $ 14,827 | |||
Unrecognized tax benefits that would impact effective tax rate | 10,423 | 10,423 | 10,718 | |||
Decrease reasonably possible in next 12 months | 2,438 | 2,438 | ||||
Total penalties and interest accrued | $ 2,767 | $ 2,767 | $ 2,229 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||||||
Number of operating segments | segment | 3 | |||||||
Segment Reporting Information [Line Items] | ||||||||
Sales | $ 379,294 | $ 411,621 | $ 1,144,871 | $ 1,195,136 | ||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||||
Adjusted EBITDA: | 58,954 | 69,212 | 161,623 | 178,163 | ||||
Non-Operating Income and Expenses [Abstract] | ||||||||
Acquisition costs | (2,980) | (3,519) | (8,386) | (9,309) | ||||
ERP integration costs | (2,355) | (2,710) | (6,337) | (8,278) | ||||
Strategic initiatives and other charges | (1,037) | (647) | (3,149) | (2,862) | ||||
Loss on divestiture | 0 | 0 | (4,465) | 0 | ||||
Joint Venture depreciation, amortization and interest expense | (866) | 0 | (866) | 0 | ||||
Stock-based compensation | (1,156) | (2,399) | (6,169) | (10,531) | ||||
Non-service pension and postretirement expense | (951) | (1,426) | (2,852) | (4,276) | ||||
Depreciation and amortization | (20,483) | (20,066) | (60,759) | (57,052) | ||||
Interest expense | (10,508) | (9,719) | (31,068) | (26,782) | ||||
Net loss attributable to noncontrolling interests | (205) | (69) | (541) | (201) | ||||
Income before income taxes | 18,413 | 28,657 | 37,031 | 58,872 | ||||
Income tax (provision) benefit | (3,989) | (4,312) | (4,429) | 18,703 | ||||
Net income | 14,424 | $ 15,194 | $ 2,984 | 24,345 | $ 18,072 | $ 35,158 | 32,602 | 77,575 |
SGK Brand Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales | 181,930 | 202,976 | 557,881 | 601,794 | ||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||||
Adjusted EBITDA: | 29,891 | 37,003 | 86,612 | 102,954 | ||||
Non-Operating Income and Expenses [Abstract] | ||||||||
Depreciation and amortization | (12,757) | (11,718) | (37,364) | (34,550) | ||||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 449 | 2,299 | 3,858 | 5,484 | ||||
Memorialization | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales | 158,217 | 161,979 | 474,279 | 475,557 | ||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||||
Adjusted EBITDA: | 36,075 | 39,677 | 101,361 | 107,598 | ||||
Non-Operating Income and Expenses [Abstract] | ||||||||
Depreciation and amortization | (4,840) | (5,463) | (14,898) | (14,777) | ||||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 467 | 1,397 | ||||||
Industrial Technologies | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Sales | 39,147 | 46,666 | 112,711 | 117,785 | ||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||||
Adjusted EBITDA: | 7,278 | 8,241 | 15,665 | 16,809 | ||||
Non-Operating Income and Expenses [Abstract] | ||||||||
Depreciation and amortization | (1,545) | (1,554) | (4,630) | (4,156) | ||||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 2 | 589 | ||||||
Corporate and Non-Operating | ||||||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||||
Adjusted EBITDA: | (14,290) | (15,709) | (42,015) | (49,198) | ||||
Non-Operating Income and Expenses [Abstract] | ||||||||
Depreciation and amortization | (1,341) | (1,331) | (3,867) | (3,569) | ||||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | $ 5,923 | $ 4,108 | $ 14,014 | $ 12,979 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Feb. 01, 2018 | Nov. 28, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Payment to acquire business, net of cash acquired | $ 11,525 | $ 119,953 | |||||
Percentage of ownership sold | 51.00% | ||||||
Proceeds from sale of ownership interest | 8,254 | 0 | |||||
Loss on divestiture | 4,465 | $ 0 | |||||
Frost Converting Systems | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of ownership acquired | 80.00% | ||||||
Payment to acquire business, net of cash acquired | $ 7,183 | ||||||
Memorialization Business | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business, net of cash acquired | $ 3,094 | ||||||
Star Granite Bronze International, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business, net of cash acquired | $ 30,961 | ||||||
Total purchase price | 35,961 | ||||||
Value of common stock issued in acquisition | 5,000 | ||||||
Annual sales of acquired entity, last annual period | $ 31,000 | ||||||
Compass Engineering Group, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business, net of cash acquired | $ 51,887 | ||||||
Annual sales of acquired entity, last annual period | $ 24,000 | ||||||
Additional Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire business, net of cash acquired | $ 39,465 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | |
Goodwill [Line Items] | ||
Goodwill | $ 959,646 | |
Accumulated impairment losses | (10,752) | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | 948,894 | |
Additions during period | 5,098 | |
Divestiture during period | (14,970) | |
Translation and other adjustments | (3,915) | |
Goodwill | 945,859 | |
Accumulated impairment losses | (10,752) | |
Balance at end of period | 948,894 | $ 935,107 |
SGK Brand Solutions | ||
Goodwill [Line Items] | ||
Goodwill | 491,070 | |
Accumulated impairment losses | (5,752) | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | 485,318 | |
Additions during period | 1,506 | |
Divestiture during period | 0 | |
Translation and other adjustments | (4,319) | |
Goodwill | 488,257 | |
Accumulated impairment losses | (5,752) | |
Balance at end of period | 485,318 | 482,505 |
Memorialization | ||
Goodwill [Line Items] | ||
Goodwill | 376,550 | |
Accumulated impairment losses | (5,000) | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | 371,550 | |
Additions during period | 3,592 | |
Divestiture during period | (14,970) | |
Translation and other adjustments | 623 | |
Goodwill | 365,795 | |
Accumulated impairment losses | (5,000) | |
Balance at end of period | 371,550 | 360,795 |
Industrial Technologies | ||
Goodwill [Line Items] | ||
Goodwill | 92,026 | |
Accumulated impairment losses | 0 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | 92,026 | |
Additions during period | 0 | |
Divestiture during period | 0 | |
Translation and other adjustments | (219) | |
Goodwill | 91,807 | |
Accumulated impairment losses | 0 | |
Balance at end of period | $ 92,026 | $ 91,807 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 576,440 | $ 572,800 |
Accumulated Amortization | (155,645) | (128,890) |
Net | 420,795 | 443,910 |
Trade Names Not Subject to Amortization | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 33,547 | 126,047 |
Net | 33,547 | 126,047 |
Trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 145,795 | 53,523 |
Accumulated Amortization | (11,696) | (5,444) |
Net | 134,099 | 48,079 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 376,392 | 372,382 |
Accumulated Amortization | (130,550) | (110,760) |
Net | 245,842 | 261,622 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 20,706 | 20,848 |
Accumulated Amortization | (13,399) | (12,686) |
Net | $ 7,307 | $ 8,162 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $ 9,543 | $ 8,334 | $ 27,165 | $ 23,264 |
Future amortization expense [Abstract] | ||||
Future amortization expense for the remainder 2019 | 9,705 | 9,705 | ||
Future amortization expense 2020 | 37,226 | 37,226 | ||
Future amortization expense 2021 | 35,753 | 35,753 | ||
Future amortization expense 2022 | 34,112 | 34,112 | ||
Future amortization expense 2023 | $ 32,504 | $ 32,504 |