Cover Page
Cover Page | 6 Months Ended |
Mar. 31, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2021 |
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, $1.00 par value |
Trading Symbol | MATW |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 31,656,210 |
Entity Central Index Key | 0000063296 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 46,980 | $ 41,334 |
Accounts receivable, net | 292,703 | 295,185 |
Inventories, net | 186,522 | 175,100 |
Other current assets | 73,410 | 63,954 |
Total current assets | 599,615 | 575,573 |
Investments | 49,048 | 63,250 |
Property, plant and equipment, net | 228,362 | 236,788 |
Operating lease right-of-use assets | 78,944 | 72,011 |
Deferred income taxes | 3,457 | 3,757 |
Goodwill | 777,823 | 765,388 |
Other intangible assets, net | 305,295 | 333,498 |
Other assets | 21,216 | 22,368 |
Total assets | 2,063,760 | 2,072,633 |
Current liabilities: | ||
Long-term debt, current maturities | 4,274 | 26,824 |
Current portion of operating lease liabilities | 24,458 | 23,942 |
Trade accounts payable | 89,321 | 82,921 |
Accrued compensation | 57,547 | 58,058 |
Accrued income taxes | 2,764 | 3,612 |
Other current liabilities | 145,906 | 121,511 |
Total current liabilities | 324,270 | 316,868 |
Long-term debt | 778,209 | 807,710 |
Operating lease liabilities | 55,984 | 49,297 |
Accrued pension | 150,995 | 149,848 |
Postretirement benefits | 18,629 | 18,600 |
Deferred income taxes | 83,861 | 78,911 |
Other liabilities | 32,213 | 39,966 |
Total liabilities | 1,444,161 | 1,461,200 |
Shareholders' equity-Matthews: | ||
Common stock | 36,334 | 36,334 |
Additional paid-in capital | 143,324 | 135,187 |
Retained earnings | 848,254 | 859,002 |
Accumulated other comprehensive loss | (224,493) | (240,719) |
Treasury stock, at cost | (184,373) | (178,997) |
Total shareholders' equity-Matthews | 619,046 | 610,807 |
Noncontrolling interests | 553 | 626 |
Total shareholders' equity | 619,599 | 611,433 |
Total liabilities and shareholders' equity | $ 2,063,760 | $ 2,072,633 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 417,154 | $ 374,800 | $ 803,811 | $ 739,744 |
Cost of sales | (276,143) | (250,036) | (537,302) | (499,253) |
Gross profit | 141,011 | 124,764 | 266,509 | 240,491 |
Selling expense | (32,360) | (33,182) | (63,155) | (65,445) |
Administrative expense | (70,749) | (68,399) | (139,858) | (138,864) |
Intangible amortization | (22,930) | (17,872) | (38,151) | (35,814) |
Goodwill write-down | 0 | (90,408) | 0 | (90,408) |
Operating profit (loss) | 14,972 | (85,097) | 25,345 | (90,040) |
Investment income (loss) | 969 | (1,108) | 2,046 | 191 |
Interest expense | (7,233) | (9,613) | (14,961) | (18,853) |
Other income (deductions), net | (2,584) | (1,843) | (4,318) | (4,662) |
Income (loss) before income taxes | 6,124 | (97,661) | 8,112 | (113,364) |
Income tax (provision) benefit | (972) | 11,066 | (4,952) | 16,463 |
Net income (loss) | 5,152 | (86,595) | 3,160 | (96,901) |
Net (income) loss attributable to noncontrolling interests | (163) | 231 | 71 | 71 |
Net income (loss) attributable to Matthews shareholders | $ 4,989 | $ (86,364) | $ 3,231 | $ (96,830) |
Earnings (loss) per share attributable to Matthews shareholders: | ||||
Basic (in dollars per share) | $ 0.16 | $ (2.77) | $ 0.10 | $ (3.11) |
Diluted (in dollars per share) | $ 0.16 | $ (2.77) | $ 0.10 | $ (3.11) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net income (loss) attributable to Matthews shareholders | $ 4,989 | $ (86,364) | $ 3,231 | $ (96,830) |
Net income (loss) attributable to noncontrolling interests | 163 | (231) | (71) | (71) |
Net income (loss) | 5,152 | (86,595) | 3,160 | (96,901) |
Unrecognized gain (loss) on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | (3,988) | (33,263) | 16,226 | (20,134) |
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 1 | 1 | (2) | (4) |
Net current-period OCI | (3,987) | (33,262) | 16,224 | (20,138) |
Comprehensive (loss) income attributable to Matthews shareholders | 1,001 | (119,627) | 19,457 | (116,964) |
Comprehensive (loss) income attributable to noncontrolling interest | 164 | (230) | (73) | (75) |
Comprehensive income (loss) | 1,165 | (119,857) | 19,384 | (117,039) |
Foreign Currency Translation Adjustment | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net current-period OCI | (8,897) | (30,647) | 8,155 | (19,541) |
Foreign Currency Translation Adjustment, Matthews | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | (8,898) | (30,648) | 8,157 | (19,537) |
Net current-period OCI | (8,898) | (30,648) | 8,157 | (19,537) |
Net change from periodic revaluation | (8,898) | (30,648) | 8,157 | (19,537) |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustment, Noncontrolling Interest | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 1 | 1 | (2) | (4) |
Net current-period OCI | 1 | 1 | (2) | (4) |
Net change from periodic revaluation | 1 | 1 | (2) | (4) |
Pension Plans and Other Postretirement Benefits | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net current-period OCI | 2,255 | 1,827 | 4,379 | 3,554 |
Pension Plans and Other Postretirement Benefits, Matthews | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 2,255 | 1,827 | 4,379 | 3,554 |
Pension Plans and Other Postretirement Benefits, Noncontrolling Interest | ||||
Unrecognized gain (loss) 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 gain (loss) on derivatives: | ||||
Net change from periodic revaluation | 2,088 | (4,305) | 2,441 | (3,739) |
Net amount reclassified to earnings | 567 | (137) | 1,249 | (412) |
Net Investment Gain (Loss), Matthews | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net change from periodic revaluation | 2,088 | (4,305) | 2,441 | (3,739) |
Net amount reclassified to earnings | 567 | (137) | 1,249 | (412) |
Net Investment Gain (Loss), Noncontrolling Interest | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net change from periodic revaluation | 0 | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Gain (Loss), Net, Derivatives | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net current-period OCI | 2,655 | (4,442) | 3,690 | (4,151) |
Gain (Loss), Net, Derivatives, Matthews | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 2,655 | (4,442) | 3,690 | (4,151) |
Gain (Loss), Net, Derivatives, Noncontrolling Interest | ||||
Unrecognized gain (loss) on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | $ 0 | $ 0 | $ 0 | $ 0 |
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, 2019 | $ 719,236 | $ 36,334 | $ 137,774 | $ 972,594 | $ (228,361) | $ (200,235) | $ 1,130 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (10,306) | (10,466) | 160 | ||||
Minimum pension liability | 1,727 | 1,727 | |||||
Translation adjustment | 11,106 | 11,111 | (5) | ||||
Fair value of derivatives | 291 | 291 | |||||
Comprehensive income (loss) | 2,818 | ||||||
Stock-based compensation | 2,031 | 2,031 | |||||
Purchase of treasury stock | (1,845) | (1,845) | |||||
Issuance of treasury stock | 0 | (450) | 450 | ||||
Cancellations of treasury stock | 0 | 1,171 | (1,171) | ||||
Dividends | (6,535) | (6,535) | |||||
Ending balance at Dec. 31, 2019 | 715,705 | 36,334 | 140,526 | 955,593 | (215,232) | (202,801) | 1,285 |
Beginning balance at Sep. 30, 2019 | 719,236 | 36,334 | 137,774 | 972,594 | (228,361) | (200,235) | 1,130 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (96,901) | ||||||
Comprehensive income (loss) | (117,039) | ||||||
Ending balance at Mar. 31, 2020 | 591,202 | 36,334 | 143,034 | 862,581 | (248,495) | (203,307) | 1,055 |
Beginning balance at Sep. 30, 2019 | 719,236 | 36,334 | 137,774 | 972,594 | (228,361) | (200,235) | 1,130 |
Ending balance at Sep. 30, 2020 | 611,433 | 36,334 | 135,187 | 859,002 | (240,719) | (178,997) | 626 |
Beginning balance at Dec. 31, 2019 | 715,705 | 36,334 | 140,526 | 955,593 | (215,232) | (202,801) | 1,285 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (86,595) | (86,364) | (231) | ||||
Minimum pension liability | 1,827 | 1,827 | |||||
Translation adjustment | (30,647) | (30,648) | 1 | ||||
Fair value of derivatives | (4,442) | (4,442) | |||||
Comprehensive income (loss) | (119,857) | ||||||
Stock-based compensation | 2,508 | 2,508 | |||||
Purchase of treasury stock | (506) | (506) | |||||
Dividends | (6,648) | (6,648) | |||||
Ending balance at Mar. 31, 2020 | 591,202 | 36,334 | 143,034 | 862,581 | (248,495) | (203,307) | 1,055 |
Beginning balance at Sep. 30, 2020 | 611,433 | 36,334 | 135,187 | 859,002 | (240,719) | (178,997) | 626 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (1,992) | (1,758) | (234) | ||||
Minimum pension liability | 2,124 | 2,124 | |||||
Translation adjustment | 17,052 | 17,055 | (3) | ||||
Fair value of derivatives | 1,035 | 1,035 | |||||
Comprehensive income (loss) | 18,219 | ||||||
Stock-based compensation | 3,246 | 3,246 | |||||
Purchase of treasury stock | (4,237) | (4,237) | |||||
Issuance of treasury stock | 0 | (407) | 407 | ||||
Cancellations of treasury stock | 0 | 1,982 | (1,982) | ||||
Dividends | (6,808) | (6,808) | |||||
Ending balance at Dec. 31, 2020 | 621,853 | 36,334 | 140,008 | 850,436 | (220,505) | (184,809) | 389 |
Beginning balance at Sep. 30, 2020 | 611,433 | 36,334 | 135,187 | 859,002 | (240,719) | (178,997) | 626 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 3,160 | ||||||
Comprehensive income (loss) | 19,384 | ||||||
Ending balance at Mar. 31, 2021 | 619,599 | 36,334 | 143,324 | 848,254 | (224,493) | (184,373) | 553 |
Beginning balance at Dec. 31, 2020 | 621,853 | 36,334 | 140,008 | 850,436 | (220,505) | (184,809) | 389 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 5,152 | 4,989 | 163 | ||||
Minimum pension liability | 2,255 | 2,255 | |||||
Translation adjustment | (8,897) | (8,898) | 1 | ||||
Fair value of derivatives | 2,655 | 2,655 | |||||
Comprehensive income (loss) | 1,165 | ||||||
Stock-based compensation | 4,001 | 4,001 | |||||
Purchase of treasury stock | (249) | (249) | |||||
Issuance of treasury stock | 0 | (685) | 685 | ||||
Dividends | (7,171) | (7,171) | |||||
Ending balance at Mar. 31, 2021 | $ 619,599 | $ 36,334 | $ 143,324 | $ 848,254 | $ (224,493) | $ (184,373) | $ 553 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Purchase of treasury stock | 6,000 | 162,291 | 20,750 | 52,104 |
Issuance of treasury stock | 17,357 | 10,300 | 11,225 | |
Cancellations of treasury stock | 34,727 | 17,509 | ||
Dividends, per share (in dollars per share) | $ 0.215 | $ 0.215 | $ 0.21 | $ 0.21 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 3,160 | $ (96,901) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 62,530 | 58,250 |
Stock-based compensation expense | 7,247 | 4,539 |
Deferred tax provision (benefit) | 930 | (6,155) |
(Gain) loss on sale of assets, net | (511) | 27 |
Unrealized (gain) loss on investments | (844) | 70 |
Loss from equity-method investments | 0 | 1,345 |
Goodwill write-down | 0 | 90,408 |
Changes in working capital items | 2,730 | 19,384 |
Decrease in other assets | 2,556 | 5,587 |
Increase (decrease) in other liabilities | 12,962 | (1,107) |
Other operating activities, net | 1,422 | (9,452) |
Net cash provided by operating activities | 92,182 | 65,995 |
Cash flows from investing activities: | ||
Capital expenditures | (15,819) | (19,082) |
Acquisitions, net of cash acquired | (13,100) | 0 |
Proceeds from sale of assets | 2,065 | 181 |
Proceeds from sale of investments | 15,000 | 0 |
Investments and advances | 0 | (9,637) |
Net cash used in investing activities | (11,854) | (28,538) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 249,833 | 942,692 |
Payments on long-term debt | (303,781) | (921,359) |
Purchases of treasury stock | (4,486) | (2,351) |
Dividends | (13,979) | (13,183) |
Acquisition holdback and contingent consideration payments | (1,556) | (1,739) |
Other financing activities | (1,484) | (3,475) |
Net cash (used in) provided by financing activities | (75,453) | 585 |
Effect of exchange rate changes on cash | 771 | (1,006) |
Net change in cash and cash equivalents | 5,646 | 37,036 |
Cash and cash equivalents at beginning of year | 41,334 | 35,302 |
Cash and cash equivalents at end of period | $ 46,980 | $ 72,338 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Mar. 31, 2021 | |
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 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. Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets, and cremation and incineration 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 | 6 Months Ended |
Mar. 31, 2021 | |
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 six months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2021. 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, 2020. The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control. Investments in certain companies over which the Company exerts significant influence, but does not control the financial and operating decisions, are accounted for as equity method investments. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. All intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements: Adopted 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. The adoption of this ASU in the first quarter ended December 31, 2020 had no material impact on the Company's consolidated financial statements and the Form 10-K disclosures for the year ended September 30, 2021 will reflect the adoption of this ASU. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) , which provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each report date. Subsequently, the FASB issued ASU No. 2019-11, C odification Improvements to Topic 326, Financial Instruments—Credit Losses and ASU No. 2020-02, Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842), that provide certain amendments to the new guidance. The adoption of these ASUs in the first quarter ended December 31, 2020 had no material impact on the Company's consolidated financial statements. Note 2. Basis of Presentation (continued) The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the six months ended March 31, 2021: Accounts Receivable Allowance for Doubtful Accounts Balance at October 1, 2020 $ 9,618 Current period expense / (deductions) (621) Translation and other adjustments (1) (216) Balance at March 31, 2021 $ 8,781 (1) Includes the impact of foreign currency fluctuations and amounts determined not to be collectible (including direct write-offs), net of recoveries. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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 and incineration 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. 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 six months ended March 31, 2021 and 2020 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2021 2020 2021 2020 2021 2020 2021 2020 North America $ 66,282 $ 75,448 $ 190,253 $ 152,253 $ 32,260 $ 32,380 $ 288,795 $ 260,081 Central and South America 1,319 1,360 — — — — 1,319 1,360 Europe 89,190 83,015 12,662 7,637 7,013 7,453 108,865 98,105 Australia 3,456 2,937 2,542 1,929 — — 5,998 4,866 Asia 10,777 10,095 — — 1,400 293 12,177 10,388 Total Sales $ 171,024 $ 172,855 $ 205,457 $ 161,819 $ 40,673 $ 40,126 $ 417,154 $ 374,800 SGK Brand Solutions Memorialization Industrial Technologies Consolidated Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 2021 2020 2021 2020 North America $ 136,684 $ 151,678 $ 360,577 $ 296,298 $ 59,895 $ 60,679 $ 557,156 $ 508,655 Central and South America 2,694 3,196 — — — — 2,694 3,196 Europe 170,999 165,428 23,102 15,466 13,004 14,379 207,105 195,273 Australia 6,937 5,939 5,052 4,460 — — 11,989 10,399 Asia 21,850 21,494 — — 3,017 727 24,867 22,221 Total Sales $ 339,164 $ 347,735 $ 388,731 $ 316,224 $ 75,916 $ 75,785 $ 803,811 $ 739,744 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level fair value hierarchy is used to prioritize the inputs used in valuations, as defined below: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: March 31, 2021 September 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 471 $ — $ 471 $ — $ — $ — $ — Equity and fixed income mutual funds — 25,455 — 25,455 — 24,610 — 24,610 Life insurance policies — 4,626 — 4,626 — 4,621 — 4,621 Total assets at fair value $ — $ 30,552 $ — $ 30,552 $ — $ 29,231 $ — $ 29,231 Liabilities: Derivatives (1) $ — $ 3,376 $ — $ 3,376 $ — $ 7,792 $ — $ 7,792 Total liabilities at fair value $ — $ 3,376 $ — $ 3,376 $ — $ 7,792 $ — $ 7,792 (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 | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: March 31, 2021 September 30, 2020 Raw materials $ 38,112 $ 36,157 Work in process 75,206 70,128 Finished goods 73,204 68,815 $ 186,522 $ 175,100 |
Investments
Investments | 6 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Non-current investments consisted of the following: March 31, 2021 September 30, 2020 Equity and fixed income mutual funds $ 25,455 $ 24,610 Life insurance policies 4,626 4,621 Other (primarily cost-method) investments 18,967 34,019 $ 49,048 $ 63,250 |
Debt
Debt | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt at March 31, 2021 and September 30, 2020 consisted of the following: March 31, 2021 September 30, 2020 Revolving credit facilities $ 367,352 $ 416,793 Securitization facility 97,590 67,700 Senior secured term loan — 22,359 2025 Senior Notes 297,526 297,256 Other borrowings 12,022 20,742 Finance lease obligations 7,993 9,684 782,483 834,534 Less current maturities (4,274) (26,824) $ 778,209 $ 807,710 The Company has a domestic credit facility with a syndicate of financial institutions that includes a $750,000 senior secured revolving credit facility, which matures in March 2025, and a $35,000 senior secured amortizing term loan. The senior secured amortizing term loan was paid in full in March 2021. A portion of the revolving credit facility (not to exceed $350,000) can be drawn in foreign currencies. Borrowings under the revolving credit facility bear interest at LIBOR (Euro LIBOR for balances drawn in Euros) plus a factor ranging from 0.75% to 2.00% (1.25% at March 31, 2021) 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 0.30% (based on the Company's leverage ratio) of the unused portion of the revolving credit facility. The Company incurred debt issuance costs in connection with the domestic credit facility. Unamortized costs were $2,481 and $2,734 at March 31, 2021 and September 30, 2020, respectively. 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 March 31, 2021 and September 30, 2020 were $250,000 and $257,439, respectively. Outstanding Euro denominated borrowings on the revolving credit facility at March 31, 2021 and September 30, 2020 were €97.0 million ($113,764) and €117.0 million ($137,188), respectively. There were no outstanding borrowings on the term loan as of March 31, 2021. Outstanding borrowings on the term loan at September 30, 2020 were $22,359. The weighted-average interest rate on the outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at March 31, 2021 and March 31, 2020 was 2.17% and 2.40%, 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 incurred direct financing fees and costs in connection with the 2025 Senior Notes. Unamortized costs were $2,474 and $2,744 at March 31, 2021 and September 30, 2020, respectively. The Company has a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions which matures in March 2022. 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 March 31, 2021 and September 30, 2020 were $97,590 and $67,700, respectively. At March 31, 2021 and 2020, the interest rate on borrowings under this facility was 0.86% and 1.74%, respectively. Note 7. Debt (continued) The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: March 31, 2021 September 30, 2020 Pay fixed swaps - notional amount $ 250,000 $ 312,500 Net unrealized loss $ (2,905) $ (7,792) Weighted-average maturity period (years) 2.7 2.6 Weighted-average received rate 0.11 % 0.15 % Weighted-average pay rate 1.34 % 1.34 % The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. The interest rate swaps have been designated as cash flow hedges of future variable interest payments, which are considered probable of occurring. Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective. The fair value of the interest rate swaps reflected an unrealized loss, net of unrealized gains, of $2,905 ($2,194 after tax) at March 31, 2021 and an unrealized loss of $7,792 ($5,884 after tax) at September 30, 2020, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Assuming market rates remain constant with the rates at March 31, 2021, a loss (net of tax) of approximately $1,772 included in AOCI is expected to be recognized in earnings over the next twelve months. At March 31, 2021 and September 30, 2020, the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives March 31, 2021 September 30, 2020 Current assets: Other current assets $ 78 $ — Long-term assets: Other assets 393 — Current liabilities: Other current liabilities (2,425) (3,164) Long-term liabilities: Other liabilities (951) (4,628) Total derivatives $ (2,905) $ (7,792) The (losses) gains recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivative Amount of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives Three Months Ended Six Months Ended 2021 2020 2021 2020 Interest rate swaps Interest expense $ (751) $ 182 $ (1,654) $ 546 Note 7. Debt (continued) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Location of (Loss) Gain Reclassified From AOCI into Income (Effective Portion*) Amount of (Loss) Gain March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Interest rate swaps $ 2,441 $ (3,739) Interest expense $ (1,249) $ 412 *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 €25.0 million ($29,321), which includes €8.0 million ($9,383) for bank guarantees. The credit facility matures in December 2021 and the Company intends to continue to extend this facility. Outstanding borrowings under the credit facility totaled €3.1 million ($3,587) and €18.9 million ($22,166) at March 31, 2021 and September 30, 2020, respectively. The weighted-average interest rate on outstanding borrowings under this facility at March 31, 2021 and 2020 was 2.25% and 1.25%, respectively. The Company uses certain foreign currency debt instruments as net investment hedges of foreign operations. Currency losses of $4,852 (net of income taxes of $1,575) and currency losses of $4,377 (net of income taxes of $1,420), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at March 31, 2021 and September 30, 2020, respectively. As of March 31, 2021 and September 30, 2020, the fair value of the Company's long-term debt, including current maturities, which is classified as Level 2 in the fair value hierarchy, approximated the carrying value included in the Consolidated Balance Sheets. The Company was in compliance with all of its debt covenants as of March 31, 2021. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, there were 1,700,000 shares reserved for future issuance under the 2017 Equity Incentive Plan. 1,064,910 restricted share units have been granted under the 2017 Equity Incentive Plan and are outstanding as of March 31, 2021. 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 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. Such performance thresholds include adjusted earnings per share, return on invested capital, appreciation in the market value of the Company's Class A Common Stock, or other targets established by the Compensation Committee of the Board of Directors. Approximately 45% of the outstanding share units vest based on time, while the remaining vest based on pre-defined performance thresholds. The Company issues common stock from treasury shares once vested. Note 8. Share-Based Payments (continued) For the three-month periods ended March 31, 2021 and 2020, stock-based compensation cost totaled $4,001 and $2,508, respectively. For the six-month periods ended March 31, 2021 and 2020, stock-based compensation cost totaled $7,247 and $4,539, respectively. The associated future income tax benefit recognized for stock-based compensation was $738 and $614 for the three-month periods ended March 31, 2021 and 2020, respectively, and $976 and $793 for the six-month periods ended March 31, 2021 and 2020, respectively. The transactions for restricted shares and restricted share units for the six months ended March 31, 2021 were as follows: Shares /Units Weighted- Non-vested at September 30, 2020 750,322 $ 40.88 Granted 499,050 30.06 Vested (104,895) 56.11 Expired or forfeited (36,667) 57.05 Non-vested at March 31, 2021 1,107,810 $ 34.03 As of March 31, 2021, the total unrecognized compensation cost related to unvested restricted stock was $17,602 and is expected to be recognized over a weighted average period of 2.2 years. The fair value of certain restricted share units that are subject to performance conditions are estimated on the date of grant using a binomial lattice valuation model. The following table indicates the assumptions used in estimating the fair value of certain restricted share units granted during the six-month period ended March 31, 2021. Six Months Ended Expected volatility 42.9 % Dividend yield 3.2 % Average risk-free interest rate 0.2 % Average expected term (years) 3.0 The risk-free interest rate is based on United States Treasury yields at the date of grant. The dividend yield is based on the most recent dividend payment and average stock price over the 12 months prior to the grant date. Expected volatilities are based on the historical volatility of the Company's stock price. The expected term for grants in the six months ended March 31, 2021 represents an estimate of the average period of time for restricted share units to vest. |
Earnings Per Share Attributable
Earnings Per Share Attributable to Matthews' Shareholders | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Matthews' Shareholders | Earnings Per Share Attributable to Matthews' Shareholders The information used to compute earnings (loss) per share attributable to Matthews' common shareholders was as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Net income (loss) attributable to Matthews shareholders $ 4,989 $ (86,364) $ 3,231 $ (96,830) Weighted-average shares outstanding (in thousands): Basic shares 31,665 31,150 31,697 31,141 Effect of dilutive securities 418 — 337 — Diluted shares 32,083 31,150 32,034 31,141 Anti-dilutive securities excluded from the dilution calculation were insignificant for the three and six months ended March 31, 2021. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, Pension Other Postretirement 2021 2020 2021 2020 Service cost $ 1,983 $ 2,170 $ 50 $ 64 Interest cost * 1,546 1,933 94 140 Expected return on plan assets * (2,762) (2,232) — — Amortization: Prior service cost (41) (47) (91) (23) Net actuarial loss * 3,023 2,386 — — Net benefit cost $ 3,749 $ 4,210 $ 53 $ 181 Six months ended March 31, Pension Other Postretirement 2021 2020 2021 2020 Service cost $ 4,196 $ 4,340 $ 100 $ 128 Interest cost * 3,094 3,866 188 280 Expected return on plan assets * (5,525) (4,464) — — Amortization: Prior service cost (58) (94) (182) (46) Net actuarial loss * 6,044 4,773 — — Net benefit cost $ 7,751 $ 8,421 $ 106 $ 362 * 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. In April 2021, subsequent to the date of the balance sheet, the Company contributed $15,000 to its principal retirement plan. Under IRS regulations, no further contributions are required to be made to the Company's principal retirement plan during fiscal 2021. Note 10. Pension and Other Postretirement Benefit Plans (continued) Contributions made and anticipated for fiscal year 2021 are as follows: Contributions Pension Other Postretirement Contributions during the six months ended March 31, 2021: Supplemental retirement plan $ 408 $ — Other postretirement plan — 228 Additional contributions expected in fiscal 2021: Principal retirement plan * $ 15,000 $ — Supplemental retirement plan 497 — Other postretirement plan — 603 * Contribution was made in April 2021 (see above). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and 2020 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2020 $ (80,830) $ (134,826) $ (4,849) $ (220,505) OCI before reclassification — (8,898) 2,088 (6,810) Amounts reclassified from AOCI 2,255 (a) — 567 (b) 2,822 Net current-period OCI 2,255 (8,898) 2,655 (3,988) Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, December 31, 2020 $ — $ 365 $ — $ 365 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, March 31, 2021 $ — $ 366 $ — $ 366 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2019 $ (70,016) $ (145,103) $ (113) $ (215,232) OCI before reclassification — (30,648) (4,305) (34,953) Amounts reclassified from AOCI 1,827 (a) — (137) (b) 1,690 Net current-period OCI 1,827 (30,648) (4,442) (33,263) Balance, March 31, 2020 $ (68,189) $ (175,751) $ (4,555) $ (248,495) Attributable to noncontrolling interest: Balance, December 31, 2019 $ — $ 370 $ — $ 370 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, March 31, 2020 $ — $ 371 $ — $ 371 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). Note 11. Accumulated Other Comprehensive Income (continued) The changes in AOCI by component, net of tax, for the six-month periods ended March 31, 2021 and 2020 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification — 8,157 2,441 10,598 Amounts reclassified from AOCI 4,379 (a) — 1,249 (b) 5,628 Net current-period OCI 4,379 8,157 3,690 16,226 Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, September 30, 2020 $ — $ 368 $ — $ 368 OCI before reclassification — (2) — (2) Net current-period OCI — (2) — (2) Balance, March 31, 2021 $ — $ 366 $ — $ 366 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2019 $ (71,743) $ (156,214) $ (404) $ (228,361) OCI before reclassification — (19,537) (3,739) (23,276) Amounts reclassified from AOCI 3,554 (a) — (412) (b) 3,142 Net current-period OCI 3,554 (19,537) (4,151) (20,134) Balance, March 31, 2020 $ (68,189) $ (175,751) $ (4,555) $ (248,495) Attributable to noncontrolling interest: Balance, September 30, 2019 $ — $ 375 $ — $ 375 OCI before reclassification — (4) — (4) Net current-period OCI — (4) — (4) Balance, March 31, 2020 $ — $ 371 $ — $ 371 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). Note 11. Accumulated Other Comprehensive Income (continued) Reclassifications out of AOCI for the three and six-month periods ended March 31, 2021 and 2020 were as follows: Amount reclassified from AOCI Three Months Ended March 31, 2021 Six Months Ended March 31, 2021 Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 132 $ 240 Actuarial losses (a) (3,023) (6,044) (2,891) (5,804) Income before income tax (b) 636 1,425 Income taxes $ (2,255) $ (4,379) Net income Derivatives Interest rate swap contracts $ (751) $ (1,654) Interest expense (751) (1,654) Income before income tax (b) 184 405 Income taxes $ (567) $ (1,249) Net income Amount reclassified from AOCI Three Months Ended March 31, 2020 Six Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 70 $ 140 Actuarial losses (a) (2,386) (4,773) (2,316) (4,633) Income before income tax (b) 489 1,079 Income taxes $ (1,827) $ (3,554) Net income Derivatives Interest rate swap contracts $ 182 $ 546 Interest expense 182 546 Income before income tax (b) (45) (134) Income taxes $ 137 $ 412 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 10. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2021 | |
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 six months ended March 31, 2021 were an expense of $4,952, compared to a benefit of $16,463 for the first six months of fiscal 2020. The difference between the Company’s consolidated income taxes for the first six months of fiscal 2021 versus the same period for fiscal 2020 primarily resulted from fiscal 2021 having consolidated pre-tax income while fiscal 2020 had a pre-tax loss. Additionally, fiscal 2021 included discrete tax expenses related to foreign operating losses, discrete tax benefits related to expirations of uncertain tax liabilities, a net operating loss (“NOL”) carryback to tax years where the U.S. federal statutory rate was 35%, and additional foreign tax credits. Fiscal 2020 included discrete tax benefits resulting from the closure of several tax audits. The Company’s fiscal 2021 six-month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to discrete tax expenses related to foreign operating losses, discrete tax benefits related to expirations of uncertain tax liabilities, a NOL carryback to tax years where the U.S. federal statutory rate was 35%, and additional foreign tax credits. Additionally, state taxes, foreign statutory rate differentials, and tax credits all affected the fiscal 2021 effective tax rate. The Company’s fiscal 2020 six-month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to state taxes, foreign statutory rate differentials, tax credits, the goodwill write-down, and discrete tax benefits recognized in fiscal 2020. The Company had unrecognized tax benefits (excluding penalties and interest) of $10,351 and $10,483 on March 31, 2021 and September 30, 2020, respectively, of which $7,137 and $7,066 would impact the annual effective rate at March 31, 2021 and September 30, 2020, respectively. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $7,606 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 $2,146 and $2,172 at March 31, 2021 and September 30, 2020, 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 March 31, 2021, the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2017 and forward United States – State 2016 and forward Canada 2017 and forward Germany 2019 and forward United Kingdom 2019 and forward Singapore 2017 and forward Australia 2016 and forward |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2021 | |
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 and incineration 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. The Company's primary measure of segment profitability is 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 Note 13. Segment Information (continued) 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 does not allocate corporate costs to its reportable segments. 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. The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income. Three Months Ended Six Months Ended 2021 2020 2021 2020 Sales: SGK Brand Solutions $ 171,024 $ 172,855 $ 339,164 $ 347,735 Memorialization 205,457 161,819 388,731 316,224 Industrial Technologies 40,673 40,126 75,916 75,785 Consolidated Sales $ 417,154 $ 374,800 $ 803,811 $ 739,744 Adjusted EBITDA: SGK Brand Solutions $ 20,832 $ 22,224 $ 42,168 $ 40,962 Memorialization 51,606 35,193 95,678 65,286 Industrial Technologies 5,809 6,212 9,302 10,526 Corporate and Non-Operating (17,307) (14,232) (31,445) (27,147) Total Adjusted EBITDA $ 60,940 $ 49,397 $ 115,703 $ 89,627 Acquisition related items (1)** 702 (742) 360 (2,221) ERP integration costs (2)** (216) (750) (359) (1,415) Strategic initiatives and other charges: (3)** Workforce reductions and related costs (1,792) (1,387) (8,818) (3,649) Other cost-reduction initiatives (3,787) (7,750) (7,468) (16,208) Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (4) (1,572) (663) (2,696) (663) Goodwill write-down (5) — (90,408) — (90,408) Joint Venture depreciation, amortization, interest expense and other charges (6) — (1,462) — (2,259) Stock-based compensation (4,001) (2,508) (7,247) (4,539) Non-service pension and postretirement expense (7) (1,901) (2,227) (3,801) (4,455) Depreciation and amortization * (35,179) (29,317) (62,530) (58,250) Interest expense (7,233) (9,613) (14,961) (18,853) Net income (loss) attributable to noncontrolling interests 163 (231) (71) (71) Income (loss) before income taxes 6,124 (97,661) 8,112 (113,364) Income tax (provision) benefit (972) 11,066 (4,952) 16,463 Net income (loss) $ 5,152 $ (86,595) $ 3,160 $ (96,901) Note 13. Segment Information (continued) (1) Includes certain non-recurring items 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) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. (5) Represents the goodwill write-down for two reporting units within the SGK Brand Solutions segment. (6) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other non-recurring charges incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment. (7) 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 $26,740 and $21,785 for the SGK Brand Solutions segment, $5,709 and $4,839 for the Memorialization segment, $1,401 and $1,428 for the Industrial Technologies segment, and $1,329 and $1,265 for Corporate and Non-Operating, for the three months ended March 31, 2021 and 2020, respectively. Depreciation and amortization was $45,887 and $43,441 for the SGK Brand Solutions segment, $11,178 and $9,475 for the Memorialization segment, $2,842 and $2,870 for the Industrial Technologies segment, and $2,623 and $2,464 for Corporate and Non-Operating, for the six months ended March 31, 2021 and 2020, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $2,991 and $3,818 for the SGK Brand Solutions segment, income of $335 and charges of $730 for the Memorialization segment, and charges of $2,437 and $5,813 for Corporate and Non-Operating, for the three months ended March 31, 2021 and 2020, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $268 for the Industrial Technologies segment, for the three months ended March 31, 2020. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $10,346 and $7,264 for the SGK Brand Solutions segment, $795 and $1,057 for the Memorialization segment, and $5,144 and $14,904 for Corporate and Non-Operating, for the six months ended March 31, 2021 and 2020, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $268 for the Industrial Technologies segment, for the six months ended March 31, 2020. |
Acquisitions
Acquisitions | 6 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal 2021:In January 2021, the Company acquired a memorialization business that produces and distributes cemetery products for a purchase price of $13,100, subject to working capital adjustments. The preliminary purchase price allocation is not finalized as of March 31, 2021 and is subject to changes as the Company obtains additional information related to fixed assets and other assets, and liabilities. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Mar. 31, 2021 | |
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 Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2020 $ 311,737 $ 361,682 $ 91,969 $ 765,388 Additions during period — 4,796 — 4,796 Translation and other adjustments 6,526 372 741 7,639 Net goodwill at March 31, 2021 $ 318,263 $ 366,850 $ 92,710 $ 777,823 The net goodwill balances at March 31, 2021 and September 30, 2020 included $178,732 of accumulated impairment losses. Accumulated impairment losses at March 31, 2021 and September 30, 2020 were $173,732 and $5,000 for the SGK Brand Solutions and Memorialization segments, respectively. Note 15. Goodwill and Other Intangible Assets (continued) The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2021 (January 1, 2021) and determined that the estimated fair values for all goodwill reporting units exceeded their carrying values, therefore no impairment charges were necessary. The estimated fair value of the Company's Graphics Imaging reporting unit, within the SGK Brand Solutions segment, exceeded the carrying value (expressed as a percentage of carrying value) by approximately 5%. If current projections are not achieved or specific valuation factors outside the Company’s control (such as discount rates and continued economic and industry impacts of COVID-19) significantly change, goodwill write-downs may be necessary in future periods. The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of March 31, 2021 and September 30, 2020, respectively. Carrying Accumulated Net March 31, 2021: Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,934 (83,129) 65,805 Customer relationships 389,565 (186,391) 203,174 Copyrights/patents/other 20,831 (15,055) 5,776 $ 589,870 $ (284,575) $ 305,295 September 30, 2020 : Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,867 (64,462) 84,405 Customer relationships 379,246 (166,892) 212,354 Copyrights/patents/other 20,704 (14,505) 6,199 $ 579,357 $ (245,859) $ 333,498 The net change in intangible assets during the six months ended March 31, 2021 included the impact of foreign currency fluctuations during the period, additional amortization and additions related to a memorialization acquisition. During the second quarter of fiscal 2021, the Company reassessed the useful lives for certain of its customer relationships. As a result of this reassessment, the Company reduced the remaining useful lives for these customer relationships to reflect their estimated remaining duration, utilizing actual historical customer attrition rates. Amortization expense on intangible assets was $22,930 and $17,872 for the three-month periods ended March 31, 2021 and 2020, respectively. For the six month period ended March 31, 2021 and 2020, amortization expense was $38,151 and $35,814, respectively. Amortization expense is estimated to be $45,840 for the remainder of fiscal 2021, $56,923 in 2022, $40,484 in 2023, $35,062 in 2024 and $19,737 in 2025. The accelerated amortization related to the fiscal 2019 reduction in useful lives for certain discontinued trade names is scheduled to continue through the first quarter of fiscal 2022. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn April 20, 2021, subsequent to the date of the balance sheet, the Compensation Committee of the Company's Board of Directors approved a resolution to freeze all future benefit accruals for all participants in the Company’s supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan, effective April 30, 2021. Consequently, participants in these plans will no longer earn additional benefits after April 30, 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: Adopted 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. The adoption of this ASU in the first quarter ended December 31, 2020 had no material impact on the Company's consolidated financial statements and the Form 10-K disclosures for the year ended September 30, 2021 will reflect the adoption of this ASU. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) , which provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each report date. Subsequently, the FASB issued ASU No. 2019-11, C odification Improvements to Topic 326, Financial Instruments—Credit Losses and ASU No. 2020-02, Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842), that provide certain amendments to the new guidance. The adoption of these ASUs in the first quarter ended December 31, 2020 had no material impact on the Company's consolidated financial statements. Note 2. Basis of Presentation (continued) The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the six months ended March 31, 2021: Accounts Receivable Allowance for Doubtful Accounts Balance at October 1, 2020 $ 9,618 Current period expense / (deductions) (621) Translation and other adjustments (1) (216) Balance at March 31, 2021 $ 8,781 (1) Includes the impact of foreign currency fluctuations and amounts determined not to be collectible (including direct write-offs), net of recoveries. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the six months ended March 31, 2021: Accounts Receivable Allowance for Doubtful Accounts Balance at October 1, 2020 $ 9,618 Current period expense / (deductions) (621) Translation and other adjustments (1) (216) Balance at March 31, 2021 $ 8,781 (1) Includes the impact of foreign currency fluctuations and amounts determined not to be collectible (including direct write-offs), net of recoveries. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated sales by segment and region for the three and six months ended March 31, 2021 and 2020 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2021 2020 2021 2020 2021 2020 2021 2020 North America $ 66,282 $ 75,448 $ 190,253 $ 152,253 $ 32,260 $ 32,380 $ 288,795 $ 260,081 Central and South America 1,319 1,360 — — — — 1,319 1,360 Europe 89,190 83,015 12,662 7,637 7,013 7,453 108,865 98,105 Australia 3,456 2,937 2,542 1,929 — — 5,998 4,866 Asia 10,777 10,095 — — 1,400 293 12,177 10,388 Total Sales $ 171,024 $ 172,855 $ 205,457 $ 161,819 $ 40,673 $ 40,126 $ 417,154 $ 374,800 SGK Brand Solutions Memorialization Industrial Technologies Consolidated Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 2021 2020 2021 2020 North America $ 136,684 $ 151,678 $ 360,577 $ 296,298 $ 59,895 $ 60,679 $ 557,156 $ 508,655 Central and South America 2,694 3,196 — — — — 2,694 3,196 Europe 170,999 165,428 23,102 15,466 13,004 14,379 207,105 195,273 Australia 6,937 5,939 5,052 4,460 — — 11,989 10,399 Asia 21,850 21,494 — — 3,017 727 24,867 22,221 Total Sales $ 339,164 $ 347,735 $ 388,731 $ 316,224 $ 75,916 $ 75,785 $ 803,811 $ 739,744 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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: March 31, 2021 September 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 471 $ — $ 471 $ — $ — $ — $ — Equity and fixed income mutual funds — 25,455 — 25,455 — 24,610 — 24,610 Life insurance policies — 4,626 — 4,626 — 4,621 — 4,621 Total assets at fair value $ — $ 30,552 $ — $ 30,552 $ — $ 29,231 $ — $ 29,231 Liabilities: Derivatives (1) $ — $ 3,376 $ — $ 3,376 $ — $ 7,792 $ — $ 7,792 Total liabilities at fair value $ — $ 3,376 $ — $ 3,376 $ — $ 7,792 $ — $ 7,792 (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) | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, 2021 September 30, 2020 Raw materials $ 38,112 $ 36,157 Work in process 75,206 70,128 Finished goods 73,204 68,815 $ 186,522 $ 175,100 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Current Investments | Non-current investments consisted of the following: March 31, 2021 September 30, 2020 Equity and fixed income mutual funds $ 25,455 $ 24,610 Life insurance policies 4,626 4,621 Other (primarily cost-method) investments 18,967 34,019 $ 49,048 $ 63,250 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt at March 31, 2021 and September 30, 2020 consisted of the following: March 31, 2021 September 30, 2020 Revolving credit facilities $ 367,352 $ 416,793 Securitization facility 97,590 67,700 Senior secured term loan — 22,359 2025 Senior Notes 297,526 297,256 Other borrowings 12,022 20,742 Finance lease obligations 7,993 9,684 782,483 834,534 Less current maturities (4,274) (26,824) $ 778,209 $ 807,710 |
Interest Rate Contracts | The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: March 31, 2021 September 30, 2020 Pay fixed swaps - notional amount $ 250,000 $ 312,500 Net unrealized loss $ (2,905) $ (7,792) Weighted-average maturity period (years) 2.7 2.6 Weighted-average received rate 0.11 % 0.15 % Weighted-average pay rate 1.34 % 1.34 % |
Interest Rate Swap Contracts as Reflected on Balance Sheet | At March 31, 2021 and September 30, 2020, the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives March 31, 2021 September 30, 2020 Current assets: Other current assets $ 78 $ — Long-term assets: Other assets 393 — Current liabilities: Other current liabilities (2,425) (3,164) Long-term liabilities: Other liabilities (951) (4,628) Total derivatives $ (2,905) $ (7,792) |
Gain (Loss) on Derivatives | The (losses) gains recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivative Amount of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives Three Months Ended Six Months Ended 2021 2020 2021 2020 Interest rate swaps Interest expense $ (751) $ 182 $ (1,654) $ 546 Note 7. Debt (continued) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Location of (Loss) Gain Reclassified From AOCI into Income (Effective Portion*) Amount of (Loss) Gain March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Interest rate swaps $ 2,441 $ (3,739) Interest expense $ (1,249) $ 412 *There is no ineffective portion or amount excluded from effectiveness testing. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Activity | The transactions for restricted shares and restricted share units for the six months ended March 31, 2021 were as follows: Shares /Units Weighted- Non-vested at September 30, 2020 750,322 $ 40.88 Granted 499,050 30.06 Vested (104,895) 56.11 Expired or forfeited (36,667) 57.05 Non-vested at March 31, 2021 1,107,810 $ 34.03 |
Schedule of Assumptions Used in Estimating Fair Value | The following table indicates the assumptions used in estimating the fair value of certain restricted share units granted during the six-month period ended March 31, 2021. Six Months Ended Expected volatility 42.9 % Dividend yield 3.2 % Average risk-free interest rate 0.2 % Average expected term (years) 3.0 |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Matthews' Shareholders (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Information Used to Compute Earnings per Share Attributable to Matthews' Common Shareholders | The information used to compute earnings (loss) per share attributable to Matthews' common shareholders was as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Net income (loss) attributable to Matthews shareholders $ 4,989 $ (86,364) $ 3,231 $ (96,830) Weighted-average shares outstanding (in thousands): Basic shares 31,665 31,150 31,697 31,141 Effect of dilutive securities 418 — 337 — Diluted shares 32,083 31,150 32,034 31,141 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, Pension Other Postretirement 2021 2020 2021 2020 Service cost $ 1,983 $ 2,170 $ 50 $ 64 Interest cost * 1,546 1,933 94 140 Expected return on plan assets * (2,762) (2,232) — — Amortization: Prior service cost (41) (47) (91) (23) Net actuarial loss * 3,023 2,386 — — Net benefit cost $ 3,749 $ 4,210 $ 53 $ 181 Six months ended March 31, Pension Other Postretirement 2021 2020 2021 2020 Service cost $ 4,196 $ 4,340 $ 100 $ 128 Interest cost * 3,094 3,866 188 280 Expected return on plan assets * (5,525) (4,464) — — Amortization: Prior service cost (58) (94) (182) (46) Net actuarial loss * 6,044 4,773 — — Net benefit cost $ 7,751 $ 8,421 $ 106 $ 362 |
Contributions Made and Anticipated for the Current Fiscal Year | Contributions made and anticipated for fiscal year 2021 are as follows: Contributions Pension Other Postretirement Contributions during the six months ended March 31, 2021: Supplemental retirement plan $ 408 $ — Other postretirement plan — 228 Additional contributions expected in fiscal 2021: Principal retirement plan * $ 15,000 $ — Supplemental retirement plan 497 — Other postretirement plan — 603 * Contribution was made in April 2021 (see above). |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and 2020 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2020 $ (80,830) $ (134,826) $ (4,849) $ (220,505) OCI before reclassification — (8,898) 2,088 (6,810) Amounts reclassified from AOCI 2,255 (a) — 567 (b) 2,822 Net current-period OCI 2,255 (8,898) 2,655 (3,988) Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, December 31, 2020 $ — $ 365 $ — $ 365 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, March 31, 2021 $ — $ 366 $ — $ 366 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2019 $ (70,016) $ (145,103) $ (113) $ (215,232) OCI before reclassification — (30,648) (4,305) (34,953) Amounts reclassified from AOCI 1,827 (a) — (137) (b) 1,690 Net current-period OCI 1,827 (30,648) (4,442) (33,263) Balance, March 31, 2020 $ (68,189) $ (175,751) $ (4,555) $ (248,495) Attributable to noncontrolling interest: Balance, December 31, 2019 $ — $ 370 $ — $ 370 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, March 31, 2020 $ — $ 371 $ — $ 371 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). Note 11. Accumulated Other Comprehensive Income (continued) The changes in AOCI by component, net of tax, for the six-month periods ended March 31, 2021 and 2020 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification — 8,157 2,441 10,598 Amounts reclassified from AOCI 4,379 (a) — 1,249 (b) 5,628 Net current-period OCI 4,379 8,157 3,690 16,226 Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, September 30, 2020 $ — $ 368 $ — $ 368 OCI before reclassification — (2) — (2) Net current-period OCI — (2) — (2) Balance, March 31, 2021 $ — $ 366 $ — $ 366 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2019 $ (71,743) $ (156,214) $ (404) $ (228,361) OCI before reclassification — (19,537) (3,739) (23,276) Amounts reclassified from AOCI 3,554 (a) — (412) (b) 3,142 Net current-period OCI 3,554 (19,537) (4,151) (20,134) Balance, March 31, 2020 $ (68,189) $ (175,751) $ (4,555) $ (248,495) Attributable to noncontrolling interest: Balance, September 30, 2019 $ — $ 375 $ — $ 375 OCI before reclassification — (4) — (4) Net current-period OCI — (4) — (4) Balance, March 31, 2020 $ — $ 371 $ — $ 371 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). |
Reclassifications out of AOCI | Reclassifications out of AOCI for the three and six-month periods ended March 31, 2021 and 2020 were as follows: Amount reclassified from AOCI Three Months Ended March 31, 2021 Six Months Ended March 31, 2021 Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 132 $ 240 Actuarial losses (a) (3,023) (6,044) (2,891) (5,804) Income before income tax (b) 636 1,425 Income taxes $ (2,255) $ (4,379) Net income Derivatives Interest rate swap contracts $ (751) $ (1,654) Interest expense (751) (1,654) Income before income tax (b) 184 405 Income taxes $ (567) $ (1,249) Net income Amount reclassified from AOCI Three Months Ended March 31, 2020 Six Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 70 $ 140 Actuarial losses (a) (2,386) (4,773) (2,316) (4,633) Income before income tax (b) 489 1,079 Income taxes $ (1,827) $ (3,554) Net income Derivatives Interest rate swap contracts $ 182 $ 546 Interest expense 182 546 Income before income tax (b) (45) (134) Income taxes $ 137 $ 412 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 10. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Tax Years Subject to Examination | As of March 31, 2021, the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2017 and forward United States – State 2016 and forward Canada 2017 and forward Germany 2019 and forward United Kingdom 2019 and forward Singapore 2017 and forward Australia 2016 and forward |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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. Three Months Ended Six Months Ended 2021 2020 2021 2020 Sales: SGK Brand Solutions $ 171,024 $ 172,855 $ 339,164 $ 347,735 Memorialization 205,457 161,819 388,731 316,224 Industrial Technologies 40,673 40,126 75,916 75,785 Consolidated Sales $ 417,154 $ 374,800 $ 803,811 $ 739,744 Adjusted EBITDA: SGK Brand Solutions $ 20,832 $ 22,224 $ 42,168 $ 40,962 Memorialization 51,606 35,193 95,678 65,286 Industrial Technologies 5,809 6,212 9,302 10,526 Corporate and Non-Operating (17,307) (14,232) (31,445) (27,147) Total Adjusted EBITDA $ 60,940 $ 49,397 $ 115,703 $ 89,627 Acquisition related items (1)** 702 (742) 360 (2,221) ERP integration costs (2)** (216) (750) (359) (1,415) Strategic initiatives and other charges: (3)** Workforce reductions and related costs (1,792) (1,387) (8,818) (3,649) Other cost-reduction initiatives (3,787) (7,750) (7,468) (16,208) Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (4) (1,572) (663) (2,696) (663) Goodwill write-down (5) — (90,408) — (90,408) Joint Venture depreciation, amortization, interest expense and other charges (6) — (1,462) — (2,259) Stock-based compensation (4,001) (2,508) (7,247) (4,539) Non-service pension and postretirement expense (7) (1,901) (2,227) (3,801) (4,455) Depreciation and amortization * (35,179) (29,317) (62,530) (58,250) Interest expense (7,233) (9,613) (14,961) (18,853) Net income (loss) attributable to noncontrolling interests 163 (231) (71) (71) Income (loss) before income taxes 6,124 (97,661) 8,112 (113,364) Income tax (provision) benefit (972) 11,066 (4,952) 16,463 Net income (loss) $ 5,152 $ (86,595) $ 3,160 $ (96,901) Note 13. Segment Information (continued) (1) Includes certain non-recurring items 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) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. (5) Represents the goodwill write-down for two reporting units within the SGK Brand Solutions segment. (6) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other non-recurring charges incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment. (7) 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 $26,740 and $21,785 for the SGK Brand Solutions segment, $5,709 and $4,839 for the Memorialization segment, $1,401 and $1,428 for the Industrial Technologies segment, and $1,329 and $1,265 for Corporate and Non-Operating, for the three months ended March 31, 2021 and 2020, respectively. Depreciation and amortization was $45,887 and $43,441 for the SGK Brand Solutions segment, $11,178 and $9,475 for the Memorialization segment, $2,842 and $2,870 for the Industrial Technologies segment, and $2,623 and $2,464 for Corporate and Non-Operating, for the six months ended March 31, 2021 and 2020, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $2,991 and $3,818 for the SGK Brand Solutions segment, income of $335 and charges of $730 for the Memorialization segment, and charges of $2,437 and $5,813 for Corporate and Non-Operating, for the three months ended March 31, 2021 and 2020, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $268 for the Industrial Technologies segment, for the three months ended March 31, 2020. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $10,346 and $7,264 for the SGK Brand Solutions segment, $795 and $1,057 for the Memorialization segment, and $5,144 and $14,904 for Corporate and Non-Operating, for the six months ended March 31, 2021 and 2020, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $268 for the Industrial Technologies segment, for the six months ended March 31, 2020. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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 Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2020 $ 311,737 $ 361,682 $ 91,969 $ 765,388 Additions during period — 4,796 — 4,796 Translation and other adjustments 6,526 372 741 7,639 Net goodwill at March 31, 2021 $ 318,263 $ 366,850 $ 92,710 $ 777,823 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of March 31, 2021 and September 30, 2020, respectively. Carrying Accumulated Net March 31, 2021: Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,934 (83,129) 65,805 Customer relationships 389,565 (186,391) 203,174 Copyrights/patents/other 20,831 (15,055) 5,776 $ 589,870 $ (284,575) $ 305,295 September 30, 2020 : Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,867 (64,462) 84,405 Customer relationships 379,246 (166,892) 212,354 Copyrights/patents/other 20,704 (14,505) 6,199 $ 579,357 $ (245,859) $ 333,498 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit loss, beginning balance | $ 9,618 |
Current period expense / (deductions) | (621) |
Translations and other adjustments | (216) |
Allowance for credit loss, ending balance | $ 8,781 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 417,154 | $ 374,800 | $ 803,811 | $ 739,744 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 288,795 | 260,081 | 557,156 | 508,655 |
Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,319 | 1,360 | 2,694 | 3,196 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 108,865 | 98,105 | 207,105 | 195,273 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 5,998 | 4,866 | 11,989 | 10,399 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 12,177 | 10,388 | 24,867 | 22,221 |
SGK Brand Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 171,024 | 172,855 | 339,164 | 347,735 |
SGK Brand Solutions | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 66,282 | 75,448 | 136,684 | 151,678 |
SGK Brand Solutions | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,319 | 1,360 | 2,694 | 3,196 |
SGK Brand Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 89,190 | 83,015 | 170,999 | 165,428 |
SGK Brand Solutions | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 3,456 | 2,937 | 6,937 | 5,939 |
SGK Brand Solutions | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 10,777 | 10,095 | 21,850 | 21,494 |
Memorialization | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 205,457 | 161,819 | 388,731 | 316,224 |
Memorialization | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 190,253 | 152,253 | 360,577 | 296,298 |
Memorialization | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Memorialization | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 12,662 | 7,637 | 23,102 | 15,466 |
Memorialization | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 2,542 | 1,929 | 5,052 | 4,460 |
Memorialization | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 40,673 | 40,126 | 75,916 | 75,785 |
Industrial Technologies | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 32,260 | 32,380 | 59,895 | 60,679 |
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 | 7,013 | 7,453 | 13,004 | 14,379 |
Industrial Technologies | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,400 | $ 293 | $ 3,017 | $ 727 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Assets: | ||
Life insurance policies | $ 18,967 | $ 34,019 |
Recurring | ||
Assets: | ||
Derivatives | 471 | 0 |
Equity and fixed income mutual funds | 25,455 | 24,610 |
Life insurance policies | 4,626 | 4,621 |
Total assets at fair value | 30,552 | 29,231 |
Liabilities: | ||
Derivatives | 3,376 | 7,792 |
Total liabilities at fair value | 3,376 | 7,792 |
Recurring | 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 |
Recurring | Level 2 | ||
Assets: | ||
Derivatives | 471 | 0 |
Equity and fixed income mutual funds | 25,455 | 24,610 |
Life insurance policies | 4,626 | 4,621 |
Total assets at fair value | 30,552 | 29,231 |
Liabilities: | ||
Derivatives | 3,376 | 7,792 |
Total liabilities at fair value | 3,376 | 7,792 |
Recurring | 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 | Mar. 31, 2021 | Sep. 30, 2020 |
Inventories, net [Abstract] | ||
Raw materials | $ 38,112 | $ 36,157 |
Work in process | 75,206 | 70,128 |
Finished goods | 73,204 | 68,815 |
Inventories | $ 186,522 | $ 175,100 |
Investments - Non-Current Inves
Investments - Non-Current Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 25,455 | $ 24,610 |
Life insurance policies | 4,626 | 4,621 |
Other (primarily cost-method) investments | 18,967 | 34,019 |
Total non-current investments | $ 49,048 | $ 63,250 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Memorialization Business | |
Schedule of Investments [Line Items] | |
Proceeds from redeemable preferred stock | $ 15,000 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 782,483 | $ 834,534 |
Finance lease obligations | 7,993 | 9,684 |
Less current maturities | (4,274) | (26,824) |
Total long-term debt and lease obligations, excluding current maturities | 778,209 | 807,710 |
Senior secured term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 22,359 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 297,526 | 297,256 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | 12,022 | 20,742 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 367,352 | 416,793 |
Securitization Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 97,590 | $ 67,700 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2021EUR (€) | Sep. 30, 2020EUR (€) | |
Line of Credit Facility [Line Items] | ||||||||
Foreign currency translation adjustment, net of tax | $ 8,897,000 | $ (17,052,000) | $ 30,647,000 | $ (11,106,000) | ||||
Designated as Hedging Instrument | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unrealized loss expected to be recognized over the next 12 months | (1,772,000) | $ (1,772,000) | ||||||
Foreign currency translation adjustment, net of tax | 4,852,000 | $ 4,377,000 | ||||||
Foreign currency translation adjustment, tax | 1,575,000 | 1,420,000 | ||||||
Designated as Hedging Instrument | Interest rate swap contracts | Cash Flow Hedging | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unrealized loss on fair value of interest rate swaps, before tax | (2,905,000) | (7,792,000) | ||||||
Unrealized loss on fair value of interest rate swaps, after tax | (2,194,000) | (5,884,000) | ||||||
2025 Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unamortized debt costs | 2,474,000 | 2,474,000 | 2,744,000 | |||||
Senior Notes 2025 | 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 | $ 97,590,000 | $ 97,590,000 | 67,700,000 | |||||
Interest rate on facility (as a percent) | 0.86% | 1.74% | 0.86% | 0.86% | ||||
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% | |||||||
Revolving Credit Facility | March 2020 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 750,000,000 | $ 750,000,000 | ||||||
Maximum borrowing amount drawn In foreign currency | 350,000,000 | 350,000,000 | ||||||
Unamortized debt costs | 2,481,000 | $ 2,481,000 | 2,734,000 | |||||
Revolving Credit Facility | March 2020 Debt Amendment | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Annual commitment fee range on unused portion (as a percent) | 0.15% | |||||||
Revolving Credit Facility | March 2020 Debt Amendment | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Annual commitment fee range on unused portion (as a percent) | 0.30% | |||||||
Term Loan | March 2020 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | 35,000,000 | $ 35,000,000 | ||||||
Outstanding borrowings | 0 | $ 0 | 22,359,000 | |||||
Term Loan | March 2020 Debt Amendment | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period (as a percent) | 1.25% | |||||||
Term Loan | March 2020 Debt Amendment | LIBOR | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings (as a percent) | 0.75% | |||||||
Term Loan | March 2020 Debt Amendment | LIBOR | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings (as a percent) | 2.00% | |||||||
Domestic Revolving Credit Facility | March 2020 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) | 2.17% | 2.40% | 2.17% | 2.17% | ||||
Foreign Line of Credit | Credit Facility With European Bank | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 29,321,000 | $ 29,321,000 | € 25,000,000 | |||||
Outstanding borrowings | $ 3,587,000 | $ 3,587,000 | 22,166,000 | € 3,100,000 | € 18,900,000 | |||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.25% | 1.25% | 2.25% | 2.25% | ||||
Foreign Line of Credit | Credit Facility With European Bank | Bank Guarantees | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 9,383,000 | $ 9,383,000 | € 8,000,000 | |||||
United States of America, Dollars | Domestic Revolving Credit Facility | March 2020 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | 250,000,000 | 250,000,000 | 257,439,000 | |||||
Euro Member Countries, Euro | Domestic Revolving Credit Facility | March 2020 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | $ 113,764,000 | $ 113,764,000 | $ 137,188,000 | € 97,000,000 | € 117,000,000 |
Debt - Interest Rate Contracts
Debt - Interest Rate Contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap contracts - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||
Pay fixed swaps - notional amount | $ 250,000 | $ 312,500 |
Net unrealized loss | $ (2,905) | $ (7,792) |
Weighted-average maturity period (years) | 2 years 8 months 12 days | 2 years 7 months 6 days |
Weighted-average received rate (as a percent) | 0.11% | 0.15% |
Weighted-average pay rate (as a percent) | 1.34% | 1.34% |
Debt - Interest Rate Swap Contr
Debt - Interest Rate Swap Contracts as Reflected on Balance Sheet (Details) - Designated as Hedging Instrument - Interest Rate Swaps - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ (2,905) | $ (7,792) |
Current Assets: Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 78 | 0 |
Long-Term Assets: Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 393 | 0 |
Current Liabilities: Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | (2,425) | (3,164) |
Long-Term Liabilities: Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ (951) | $ (4,628) |
Debt - Gain (Loss) on Derivativ
Debt - Gain (Loss) on Derivatives (Details) - Cash Flow Hedging - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 2,441 | $ (3,739) | ||
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Income on Derivatives | $ (751) | $ 182 | (1,654) | 546 |
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion*) | $ (1,249) | $ 412 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation cost | $ 4,001 | $ 2,508 | $ 7,247 | $ 4,539 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued under the 2017 Equity incentive plan | 499,050 | |||
Percent of shares vested on time | 45.00% | |||
Unrecognized compensation cost on non-vested awards | $ 17,602 | $ 17,602 | ||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 2 years 2 months 12 days | |||
Restricted stock awards unvested (in shares) | 74,639 | 74,639 | ||
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 issued under the 2017 Equity incentive plan | 1,064,910 | |||
Retirement Eligible Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future income tax benefit from compensation expense recognized | $ 738 | $ 614 | $ 976 | $ 793 |
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) | 38,327 | 38,327 | ||
Value of annual stock based grant | $ 125 | |||
Total restricted stock awards granted to date (in shares) | 271,807 | 271,807 | ||
Restricted stock awards unvested (in shares) | 98,578 | 98,578 |
Share-Based Payments - Restrict
Share-Based Payments - Restricted Stock Activity (Details) - Restricted Stock | 6 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Shares /Units | |
Non-vested at beginning of period (in shares) | 750,322 |
Granted (in shares) | 499,050 |
Vested (in shares) | (104,895) |
Expired or forfeited (in shares) | (36,667) |
Non-vested at end of period (in shares) | 1,107,810 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 40.88 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 30.06 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 56.11 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 57.05 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 34.03 |
2017 Equity Incentive Plan | |
Shares /Units | |
Granted (in shares) | 1,064,910 |
Share-Based Payments - Assumpti
Share-Based Payments - Assumptions Used in Estimating Fair Value of Restricted Share Units Granted (Details) | 6 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Expected volatility | 42.90% |
Dividend yield | 3.20% |
Average risk-free interest rate | 0.20% |
Average expected term (years) | 3 years |
Earnings Per Share Attributab_3
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Matthews shareholders | $ 4,989 | $ (86,364) | $ 3,231 | $ (96,830) |
Weighted-average shares outstanding (in thousands): | ||||
Basic shares | 31,665 | 31,150 | 31,697 | 31,141 |
Effect of dilutive securities | 418 | 0 | 337 | 0 |
Diluted shares | 32,083 | 31,150 | 32,034 | 31,141 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Subsequent Event | |||||
Amortization: | |||||
Employer contribution | $ 15,000,000 | ||||
Pension | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | $ 1,983,000 | $ 2,170,000 | $ 4,196,000 | $ 4,340,000 | |
Interest cost * | 1,546,000 | 1,933,000 | 3,094,000 | 3,866,000 | |
Expected return on plan assets * | (2,762,000) | (2,232,000) | (5,525,000) | (4,464,000) | |
Amortization: | |||||
Prior service cost | (41,000) | (47,000) | (58,000) | (94,000) | |
Net actuarial loss * | 3,023,000 | 2,386,000 | 6,044,000 | 4,773,000 | |
Net benefit cost | 3,749,000 | 4,210,000 | 7,751,000 | 8,421,000 | |
Additional contributions expected in fiscal 2021: | |||||
Supplemental retirement plan | 15,000,000 | 15,000,000 | |||
Other Postretirement | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | 50,000 | 64,000 | 100,000 | 128,000 | |
Interest cost * | 94,000 | 140,000 | 188,000 | 280,000 | |
Expected return on plan assets * | 0 | 0 | 0 | 0 | |
Amortization: | |||||
Prior service cost | (91,000) | (23,000) | (182,000) | (46,000) | |
Net actuarial loss * | 0 | 0 | 0 | 0 | |
Net benefit cost | 53,000 | $ 181,000 | 106,000 | $ 362,000 | |
Contributions during the six months ended March 31, 2021: | |||||
Other Postretirement | 228,000 | ||||
Additional contributions expected in fiscal 2021: | |||||
Supplemental retirement plan | 603,000 | 603,000 | |||
Supplemental retirement plan | |||||
Contributions during the six months ended March 31, 2021: | |||||
Pension | 408,000 | ||||
Additional contributions expected in fiscal 2021: | |||||
Supplemental retirement plan | $ 497,000 | $ 497,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Attributable to Matthews: | ||||
Beginning balance | $ 621,853 | $ 715,705 | $ 611,433 | $ 719,236 |
Net current-period OCI | (3,987) | (33,262) | 16,224 | (20,138) |
Ending balance | 619,599 | 591,202 | 619,599 | 591,202 |
AOCI Attributable to Parent | ||||
Attributable to Matthews: | ||||
Beginning balance | (220,505) | (215,232) | (240,719) | (228,361) |
OCI before reclassification | (6,810) | (34,953) | 10,598 | (23,276) |
Amounts reclassified from AOCI | 2,822 | 1,690 | 5,628 | 3,142 |
Net current-period OCI | (3,988) | (33,263) | 16,226 | (20,134) |
Ending balance | (224,493) | (248,495) | (224,493) | (248,495) |
Post-retirement benefit plans | ||||
Attributable to Matthews: | ||||
Beginning balance | (80,830) | (70,016) | (82,954) | (71,743) |
OCI before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 2,255 | 1,827 | 4,379 | 3,554 |
Net current-period OCI | 2,255 | 1,827 | 4,379 | 3,554 |
Ending balance | (78,575) | (68,189) | (78,575) | (68,189) |
Currency translation adjustment | ||||
Attributable to Matthews: | ||||
Beginning balance | (134,826) | (145,103) | (151,881) | (156,214) |
OCI before reclassification | (8,898) | (30,648) | 8,157 | (19,537) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net current-period OCI | (8,898) | (30,648) | 8,157 | (19,537) |
Ending balance | (143,724) | (175,751) | (143,724) | (175,751) |
Derivatives | ||||
Attributable to Matthews: | ||||
Beginning balance | (4,849) | (113) | (5,884) | (404) |
OCI before reclassification | 2,088 | (4,305) | 2,441 | (3,739) |
Amounts reclassified from AOCI | 567 | (137) | 1,249 | (412) |
Net current-period OCI | 2,655 | (4,442) | 3,690 | (4,151) |
Ending balance | (2,194) | (4,555) | (2,194) | (4,555) |
AOCI Attributable to Noncontrolling Interest | ||||
Attributable to Matthews: | ||||
Beginning balance | 365 | 370 | 368 | 375 |
OCI before reclassification | 1 | 1 | (2) | (4) |
Net current-period OCI | 1 | 1 | (2) | (4) |
Ending balance | 366 | 371 | 366 | 371 |
Post-retirement benefit plans | ||||
Attributable to Matthews: | ||||
Beginning balance | 0 | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
Currency translation adjustment | ||||
Attributable to Matthews: | ||||
Beginning balance | 365 | 370 | 368 | 375 |
OCI before reclassification | 1 | 1 | (2) | (4) |
Net current-period OCI | 1 | 1 | (2) | (4) |
Ending balance | 366 | 371 | 366 | 371 |
Derivatives | ||||
Attributable to Matthews: | ||||
Beginning balance | 0 | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Derivatives | ||||||
Interest expense | $ 7,233 | $ 9,613 | $ 14,961 | $ 18,853 | ||
Income before income tax | 6,124 | (97,661) | 8,112 | (113,364) | ||
Income taxes | (972) | 11,066 | (4,952) | 16,463 | ||
Net income (loss) | 5,152 | $ (1,992) | (86,595) | $ (10,306) | 3,160 | (96,901) |
Prior service credit | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income tax | 132 | 70 | 240 | 140 | ||
Actuarial losses | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income tax | (3,023) | (2,386) | (6,044) | (4,773) | ||
Post-retirement benefit plans | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income tax | (2,891) | (2,316) | (5,804) | (4,633) | ||
Net income | (2,255) | (1,827) | (4,379) | (3,554) | ||
Derivatives | ||||||
Income taxes | (636) | (489) | (1,425) | (1,079) | ||
Derivatives | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income | (567) | 137 | (1,249) | 412 | ||
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Derivatives | ||||||
Income before income tax | (751) | 182 | (1,654) | 546 | ||
Income taxes | 184 | (45) | 405 | (134) | ||
Net income (loss) | (567) | 137 | (1,249) | 412 | ||
Derivatives | Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Derivatives | ||||||
Interest expense | $ (751) | $ 182 | $ (1,654) | $ 546 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 972 | $ (11,066) | $ 4,952 | $ (16,463) | |
Federal statutory rate (as a percent) | 35.00% | 21.00% | |||
Unrecognized tax benefits | 10,351 | $ 10,351 | $ 10,483 | ||
Unrecognized tax benefits that would impact effective tax rate | 7,137 | 7,137 | 7,066 | ||
Decrease reasonably possible in next 12 months | 7,606 | 7,606 | |||
Total penalties and interest accrued | $ 2,146 | $ 2,146 | $ 2,172 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of operating segments | segment | 3 | |||||
Segment Reporting Information [Line Items] | ||||||
Sales | $ 417,154 | $ 374,800 | $ 803,811 | $ 739,744 | ||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 60,940 | 49,397 | 115,703 | 89,627 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Acquisition related items | 702 | (742) | 360 | (2,221) | ||
ERP integration costs | (216) | (750) | (359) | (1,415) | ||
Workforce reductions and related costs | (1,792) | (1,387) | (8,818) | (3,649) | ||
Other cost-reduction initiatives | (3,787) | (7,750) | (7,468) | (16,208) | ||
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs | (1,572) | (663) | (2,696) | (663) | ||
Goodwill write-down | 0 | (90,408) | 0 | (90,408) | ||
Joint Venture depreciation, amortization, interest expense and other charges | 0 | (1,462) | 0 | (2,259) | ||
Stock-based compensation | (4,001) | (2,508) | (7,247) | (4,539) | ||
Non-service pension and postretirement expense | (1,901) | (2,227) | (3,801) | (4,455) | ||
Depreciation and amortization | 35,179 | 29,317 | 62,530 | 58,250 | ||
Interest expense | (7,233) | (9,613) | (14,961) | (18,853) | ||
Net income (loss) attributable to noncontrolling interests | 163 | (231) | (71) | (71) | ||
Income (loss) before income taxes | 6,124 | (97,661) | 8,112 | (113,364) | ||
Income tax (provision) benefit | (972) | 11,066 | (4,952) | 16,463 | ||
Net income (loss) | 5,152 | $ (1,992) | (86,595) | $ (10,306) | 3,160 | (96,901) |
SGK Brand Solutions | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 171,024 | 172,855 | 339,164 | 347,735 | ||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 20,832 | 22,224 | 42,168 | 40,962 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Depreciation and amortization | 26,740 | 21,785 | 45,887 | 43,441 | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 2,991 | 3,818 | 10,346 | 7,264 | ||
Memorialization | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 205,457 | 161,819 | 388,731 | 316,224 | ||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 51,606 | 35,193 | 95,678 | 65,286 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Depreciation and amortization | 5,709 | 4,839 | 11,178 | 9,475 | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | (335) | 730 | 795 | 1,057 | ||
Industrial Technologies | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 40,673 | 40,126 | 75,916 | 75,785 | ||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 5,809 | 6,212 | 9,302 | 10,526 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Depreciation and amortization | 1,401 | 1,428 | 2,842 | 2,870 | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 268 | 268 | ||||
Corporate and Non-Operating | ||||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | (17,307) | (14,232) | (31,445) | (27,147) | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Depreciation and amortization | 1,329 | 1,265 | 2,623 | 2,464 | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | $ 2,437 | $ 5,813 | $ 5,144 | $ 14,904 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | |||
Payment to acquire business, net of cash acquired | $ 13,100 | $ 0 | |
Memorialization Business | |||
Business Acquisition [Line Items] | |||
Payment to acquire business, net of cash acquired | $ 13,100 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Segment (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 765,388 |
Additions during period | 4,796 |
Translation and other adjustments | 7,639 |
Balance at end of period | 777,823 |
SGK Brand Solutions | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 311,737 |
Additions during period | 0 |
Translation and other adjustments | 6,526 |
Balance at end of period | 318,263 |
Memorialization | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 361,682 |
Additions during period | 4,796 |
Translation and other adjustments | 372 |
Balance at end of period | 366,850 |
Industrial Technologies | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 91,969 |
Additions during period | 0 |
Translation and other adjustments | 741 |
Balance at end of period | $ 92,710 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Goodwill [Line Items] | |||||
Accumulated impairment charges | $ 178,732 | $ 178,732 | $ 178,732 | ||
Amortization expense on intangible assets | 22,930 | $ 17,872 | 38,151 | $ 35,814 | |
Future amortization expense [Abstract] | |||||
Future amortization expense for the remainder 2021 | 45,840 | 45,840 | |||
Future amortization expense 2022 | 56,923 | 56,923 | |||
Future amortization expense 2023 | 40,484 | 40,484 | |||
Future amortization expense 2024 | 35,062 | 35,062 | |||
Future amortization expense 2025 | 19,737 | 19,737 | |||
SGK Brand Solutions | |||||
Goodwill [Line Items] | |||||
Accumulated impairment charges | 173,732 | 173,732 | 173,732 | ||
Memorialization | |||||
Goodwill [Line Items] | |||||
Accumulated impairment charges | $ 5,000 | $ 5,000 | $ 5,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 589,870 | $ 579,357 |
Accumulated Amortization | (284,575) | (245,859) |
Net | 305,295 | 333,498 |
Indefinite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 30,540 | 30,540 |
Net | 30,540 | 30,540 |
Definite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 148,934 | 148,867 |
Accumulated Amortization | (83,129) | (64,462) |
Net | 65,805 | 84,405 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 389,565 | 379,246 |
Accumulated Amortization | (186,391) | (166,892) |
Net | 203,174 | 212,354 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 20,831 | 20,704 |
Accumulated Amortization | (15,055) | (14,505) |
Net | $ 5,776 | $ 6,199 |