Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2021 | Oct. 31, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Quarterly Report | true | ||
Document Period End Date | Sep. 30, 2021 | ||
Current Fiscal Year End Date | --09-30 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.2 | ||
Entity Common Stock, Shares Outstanding | 31,470,112 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Specified portions of the Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report. | ||
Entity Central Index Key | 0000063296 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 49,176 | $ 41,334 |
Accounts receivable, net of allowance for doubtful accounts of $10,654 and $9,618, respectively | 309,818 | 295,185 |
Inventories | 189,088 | 175,100 |
Other current assets | 76,083 | 63,954 |
Total current assets | 624,165 | 575,573 |
Restricted cash | 19,167 | 0 |
Investments | 30,438 | 63,250 |
Property, plant and equipment, net | 223,707 | 236,788 |
Operating lease right-of-use-assets | 80,262 | 72,011 |
Deferred income taxes | 3,489 | 3,757 |
Goodwill | 773,787 | 765,388 |
Other intangible assets, net | 261,542 | 333,498 |
Other assets | 15,521 | 22,368 |
Total assets | 2,032,078 | 2,072,633 |
Current liabilities: | ||
Long-term debt, current maturities | 4,624 | 26,824 |
Current portion of operating lease liabilities | 25,151 | 23,942 |
Trade accounts payable | 112,722 | 82,921 |
Accrued compensation | 68,938 | 58,058 |
Accrued income taxes | 4,235 | 3,612 |
Other current liabilities | 138,555 | 121,511 |
Total current liabilities | 354,225 | 316,868 |
Long-term debt | 759,086 | 807,710 |
Operating lease liabilities | 57,272 | 49,297 |
Accrued pension | 84,803 | 149,848 |
Postretirement benefits | 17,958 | 18,600 |
Deferred income taxes | 97,416 | 78,911 |
Other liabilities | 24,915 | 39,966 |
Total liabilities | 1,395,675 | 1,461,200 |
Shareholders' equity-Matthews: | ||
Class A common stock, $1.00 par value; authorized 70,000,000 shares; 36,333,992 shares issued | 36,334 | 36,334 |
Preferred stock, $100 par value, authorized 10,000 shares, none issued | 0 | 0 |
Additional paid-in capital | 149,484 | 135,187 |
Retained earnings | 834,208 | 859,002 |
Accumulated other comprehensive loss | (192,739) | (240,719) |
Treasury stock, 4,863,879 and 4,502,420 shares, respectively, at cost | (190,739) | (178,997) |
Total shareholders' equity-Matthews | 636,548 | 610,807 |
Noncontrolling interests | (145) | 626 |
Total shareholders' equity | 636,403 | 611,433 |
Total liabilities and shareholders' equity | $ 2,032,078 | $ 2,072,633 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Allowance for doubtful accounts | $ 10,654 | $ 9,618 |
Shareholders' equity-Matthews: | ||
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, authorized (in shares) | 10,000 | 10,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Treasury stock, at cost (in shares) | 4,863,879 | 4,502,420 |
Class A common stock | ||
Shareholders' equity-Matthews: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, issued (in shares) | 36,333,992 | 36,333,992 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | |||
Sales | $ 1,671,030 | $ 1,498,306 | $ 1,537,276 |
Cost of sales | (1,129,198) | (1,000,537) | (994,810) |
Gross profit | 541,832 | 497,769 | 542,466 |
Selling expense | (130,199) | (125,117) | (133,368) |
Administrative expense | (285,366) | (274,923) | (275,467) |
Intangible amortization | (84,233) | (71,514) | (45,756) |
Goodwill write-downs | 0 | (90,408) | (77,572) |
Operating profit (loss) | 42,034 | (64,193) | 10,303 |
Investment income | 2,645 | 1,962 | 1,494 |
Interest expense | (28,684) | (34,885) | (40,962) |
Other income (deductions), net | (6,762) | (9,221) | (8,918) |
Income (loss) before income taxes | 9,233 | ||
Income tax (provision) benefit | (6,375) | 18,685 | (806) |
Net income (loss) | 2,858 | (87,652) | (38,889) |
Net loss attributable to noncontrolling interests | 52 | 497 | 901 |
Net income (loss) attributable to Matthews shareholders | $ 2,910 | $ (87,155) | $ (37,988) |
Earnings (loss) per share attributable to Matthews shareholders: | |||
Basic (in dollars per share) | $ 0.09 | $ (2.79) | $ (1.21) |
Diluted (in dollars per share) | $ 0.09 | $ (2.79) | $ (1.21) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) attributable to Matthews shareholders | $ 2,910 | $ (87,155) | $ (37,988) |
Net income (loss) attributable to noncontrolling interest | (52) | (497) | (901) |
Net income (loss) | 2,858 | (87,652) | (38,889) |
Unrecognized gain on derivatives: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 47,980 | (12,358) | (64,063) |
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | (127) | (7) | (92) |
Net current-period OCI | 47,853 | (12,365) | (64,155) |
Comprehensive income (loss) attributable to Matthews shareholders | 50,890 | (99,513) | (102,051) |
Comprehensive income (loss) attributable to noncontrolling interest | (179) | (504) | (993) |
Comprehensive income (loss) | 50,711 | (100,017) | (103,044) |
Foreign Currency Translation Adjustment | |||
Unrecognized gain on derivatives: | |||
Net current-period OCI | (3,497) | 4,326 | (21,346) |
Foreign Currency Translation Adjustment, Matthews | |||
Unrecognized gain on derivatives: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | (3,370) | 4,333 | (21,254) |
Net change from periodic revaluation | (3,370) | 4,333 | (21,254) |
Net amount reclassified to earnings | 0 | 0 | 0 |
Net current-period OCI | (3,370) | 4,333 | (21,254) |
Foreign Currency Translation Adjustment, Noncontrolling Interest | |||
Unrecognized gain on derivatives: | |||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | (127) | (7) | (92) |
Net change from periodic revaluation | (127) | (7) | (92) |
Net current-period OCI | (127) | (7) | (92) |
Pension Plans and Other Postretirement Benefits | |||
Unrecognized gain on derivatives: | |||
Net current-period OCI | 47,024 | (11,211) | (33,867) |
Pension Plans and Other Postretirement Benefits, Matthews | |||
Unrecognized gain on derivatives: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 47,024 | (11,211) | (33,867) |
Pension Plans and Other Postretirement Benefits, Noncontrolling Interest | |||
Unrecognized gain on derivatives: | |||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 | 0 |
Net Investment Gain (Loss), Including Noncontrolling Interest | |||
Unrecognized gain on derivatives: | |||
Net change from periodic revaluation | 1,873 | (6,130) | (6,540) |
Net amount reclassified to earnings | 2,453 | 650 | (2,402) |
Net Investment Gain (Loss), Matthews | |||
Unrecognized gain on derivatives: | |||
Net change from periodic revaluation | 1,873 | (6,130) | (6,540) |
Net amount reclassified to earnings | 2,453 | 650 | (2,402) |
Net Investment Gain (Loss), Noncontrolling Interest | |||
Unrecognized gain on derivatives: | |||
Net change from periodic revaluation | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 |
Gain (Loss), Net, Derivatives | |||
Unrecognized gain on derivatives: | |||
Net current-period OCI | 4,326 | (5,480) | (8,942) |
Gain (Loss), Net, Derivatives, Matthews | |||
Unrecognized gain on derivatives: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 4,326 | (5,480) | (8,942) |
Net change from periodic revaluation | 1,873 | (6,130) | (6,540) |
Net amount reclassified to earnings | 2,453 | 650 | (2,402) |
Net current-period OCI | 4,326 | (5,480) | (8,942) |
Gain (Loss), Net, Derivatives, Noncontrolling Interest | |||
Unrecognized gain on derivatives: | |||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 | 0 |
Net change from periodic revaluation | 0 | 0 | 0 |
Net current-period OCI | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income (net of tax) | Treasury Stock | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative tax adjustment for intra-entity transfers | $ 868,714 | $ (4,176) | $ 36,334 | $ 129,252 | $ 1,040,378 | $ (4,176) | $ (164,298) | $ (173,315) | $ 363 |
Beginning Balance at Sep. 30, 2018 | 868,714 | $ (4,176) | 36,334 | 129,252 | 1,040,378 | $ (4,176) | (164,298) | (173,315) | 363 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (38,889) | (37,988) | (901) | ||||||
Pension plans and other postretirement benefits | (33,867) | (33,867) | |||||||
Translation adjustment | (21,346) | (21,254) | (92) | ||||||
Fair value of derivatives | (8,942) | (8,942) | |||||||
Comprehensive income (loss) | (103,044) | ||||||||
Stock-based compensation | 7,729 | 7,729 | |||||||
Purchase of treasury stock | (26,127) | (26,127) | |||||||
Issuance of treasury stock | 0 | (154) | 154 | ||||||
Cancellations of treasury stock | 0 | 947 | (947) | ||||||
Dividends | (25,620) | (25,620) | |||||||
Acquisition | 1,760 | 1,760 | |||||||
Pension contribution of shares of treasury stock | 0 | ||||||||
Ending 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] | |||||||||
Cumulative tax adjustment for intra-entity transfers | 719,236 | 36,334 | 137,774 | 972,594 | (228,361) | (200,235) | 1,130 | ||
Net income (loss) | (87,652) | (87,155) | (497) | ||||||
Pension plans and other postretirement benefits | (11,211) | (11,211) | |||||||
Translation adjustment | 4,326 | 4,333 | (7) | ||||||
Fair value of derivatives | (5,480) | (5,480) | |||||||
Comprehensive income (loss) | (100,017) | ||||||||
Stock-based compensation | 8,096 | 8,096 | |||||||
Purchase of treasury stock | (4,428) | (4,428) | |||||||
Issuance of treasury stock | 0 | (486) | 486 | ||||||
Cancellations of treasury stock | 0 | 1,527 | (1,527) | ||||||
Dividends | (26,437) | (26,437) | |||||||
Pension contribution of shares of treasury stock | 14,983 | (11,724) | 26,707 | ||||||
Ending 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] | |||||||||
Cumulative tax adjustment for intra-entity transfers | 611,433 | 36,334 | 135,187 | 859,002 | (240,719) | (178,997) | 626 | ||
Net income (loss) | 2,858 | 2,910 | (52) | ||||||
Pension plans and other postretirement benefits | 47,024 | 47,024 | |||||||
Translation adjustment | (3,497) | (3,370) | (127) | ||||||
Fair value of derivatives | 4,326 | 4,326 | |||||||
Comprehensive income (loss) | 50,711 | ||||||||
Stock-based compensation | 15,581 | 15,581 | |||||||
Purchase of treasury stock | (11,858) | (11,858) | |||||||
Issuance of treasury stock | 0 | (2,097) | 2,097 | ||||||
Cancellations of treasury stock | 0 | 1,981 | (1,981) | ||||||
Dividends | (27,704) | (27,704) | |||||||
Pension contribution of shares of treasury stock | 0 | ||||||||
Transactions with noncontrolling interests | (1,760) | (1,168) | (592) | ||||||
Ending Balance at Sep. 30, 2021 | 636,403 | 36,334 | 149,484 | 834,208 | (192,739) | (190,739) | (145) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative tax adjustment for intra-entity transfers | $ 636,403 | $ 36,334 | $ 149,484 | $ 834,208 | $ (192,739) | $ (190,739) | $ (145) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Purchase of treasury stock (in shares) | 380,109 | 173,576 | 709,970 |
Issuance of treasury stock (in shares) | 53,377 | 12,125 | 3,782 |
Cancellation of treasury stock (in shares) | 34,727 | 23,461 | 20,114 |
Contribution of treasury stock (in shares) | 668,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 2,858 | $ (87,652) | $ (38,889) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 133,512 | 119,058 | 90,793 |
Stock-based compensation expense | 15,581 | 8,096 | 7,729 |
Deferred tax provision (benefit) | 4,158 | (16,607) | (6,783) |
Gain on sale of assets, net | (412) | (348) | (8,567) |
(Gain) loss on sale of ownership interests in subsidiaries | (11,208) | 6,469 | |
Losses from equity-method investments | 0 | 3,498 | 2,050 |
Realized loss on cost-method investments | 0 | 0 | 4,731 |
Other investment gains | (1,364) | (2,066) | (305) |
Goodwill write-downs | 0 | 90,408 | 77,572 |
Changes in working capital items | 12,982 | 46,367 | (12,482) |
Decrease in other assets | 15,115 | 16,392 | 4,677 |
(Decrease) increase in other liabilities | (16,346) | 4,886 | 7,540 |
Other operating activities, net | (3,273) | 9,623 | (3,452) |
Net cash provided by operating activities | 162,811 | 180,447 | 131,083 |
Cash flows from investing activities: | |||
Capital expenditures | (34,313) | (34,849) | (37,688) |
Acquisitions, net of cash acquired | (15,623) | (1,000) | (11,504) |
Proceeds from sale of assets | 2,776 | 624 | 13,253 |
Proceeds from sale of investments | 34,167 | 0 | 0 |
Proceeds from sale of ownership interests in subsidiaries | 42,210 | 8,254 | |
Investments and advances | 0 | (9,703) | (33,074) |
Net cash used in investing activities | (12,993) | (2,718) | (60,759) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 625,628 | 1,154,809 | 503,693 |
Payments on long-term debt | (702,395) | (1,281,092) | (519,731) |
Purchases of treasury stock | (11,858) | (4,428) | (26,127) |
Dividends | (27,704) | (26,437) | (25,620) |
Acquisition holdback and contingent consideration payments | (1,781) | (10,215) | (4,421) |
Transactions with noncontrolling interests | (1,760) | 0 | 0 |
Other financing activities | (2,982) | (4,889) | (2,836) |
Net cash used in financing activities | (122,852) | (172,252) | (75,042) |
Effect of exchange rate changes on cash | 43 | 555 | (1,552) |
Net change in cash, cash equivalents and restricted cash | 27,009 | 6,032 | (6,270) |
Cash, cash equivalents and restricted cash at beginning of year | 41,334 | 35,302 | 41,572 |
Cash, cash equivalents and restricted cash at end of year | 68,343 | 41,334 | 35,302 |
Cash paid during the year for: | |||
Interest | 28,824 | 35,269 | 41,453 |
Income taxes | 9,166 | 20,734 | 15,467 |
Non-cash investing and financing activities: | |||
Contribution of treasury stock to the Company's principal defined benefit retirement plan ("DB Plan") | $ 0 | $ 14,983 | $ 0 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Sep. 30, 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 (including energy solutions), 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation: 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. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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. Reclassifications: Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications are not material to the prior year presentation. Cash, Cash Equivalents and Restricted Cash: The Company considers all investments purchased with a remaining maturity of three months or less to be cash equivalents. Restricted cash represents amounts held for specific purposes, which are not available for general business use. The carrying amount of cash, cash equivalents and restricted cash approximates fair value due to the short-term maturities of these instruments. Trade Receivables and Allowance for Doubtful Accounts: Trade receivables are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due. The allowance for doubtful accounts is based on an evaluation of historical collection experience, the aging of accounts receivable, and economic trends and forecasts, and also reflects adjustments for specific customer accounts for which available facts and circumstances indicate collectability may be uncertain. Inventories: Inventories are stated at the lower of cost or net realizable value with cost generally determined under the average cost method. Inventory costs include material, labor, and applicable manufacturing overhead (including depreciation) and other direct costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Property, Plant and Equipment: Property, plant and equipment are carried at cost. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the assets, which generally range from 10 to 45 years for buildings and 3 to 12 years for machinery and equipment. Gains or losses from the disposition of assets are reflected in operating profit. The cost of maintenance and repairs is charged to expense as incurred. Renewals and betterments of a nature considered to extend the useful lives of the assets are capitalized. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets is determined by evaluating the estimated undiscounted net cash flows of the operations to which the assets relate. An impairment loss would be recognized when the carrying amount of the assets exceeds the fair value, which is based on a discounted cash flow analysis. No such charges were recognized during the years presented. Leases: A lease exists at contract inception if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset, as well as the right to direct the use of that asset. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments, and a corresponding right-of-use ("ROU") asset. As a majority of the Company’s leases do not provide an implicit interest rate within the lease, an incremental borrowing rate is used to determine the ROU asset and lease liability which is based on information available at the commencement date. Options to purchase, extend or terminate a lease are included in the ROU asset and lease liability when it is reasonably certain an option will be exercised. Renewal options are most prevalent in the Company’s real estate leases. In general, the Company has not included renewal options for leases in the ROU asset and lease liability because the likelihood of renewal is not considered to be reasonably certain. In addition, leases may include variable lease payments, for items such as maintenance and utilities, which are expensed as incurred as variable lease expense. The Company applies the practical expedient to not separate lease components from non-lease components for all asset classes. In addition, the Company applies the practical expedient to utilize a portfolio approach for certain equipment asset classes, primarily information technology, as the application of the lease model to the portfolio would not differ materially from the application of the lease model to the individual leases within the portfolio. There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. Leases not meeting the finance lease criteria are classified as operating leases. ROU assets and corresponding lease liabilities are recorded on the Consolidated Balance Sheet. ROU assets for operating leases are classified in other assets, and ROU assets for finance leases are classified in property, plant and equipment, net on the Consolidated Balance Sheet. For operating leases, short-term lease liabilities are classified in other current liabilities, and long-term lease liabilities are classified in other liabilities on the Consolidated Balance Sheet. For finance leases, short-term lease liabilities are classified in long-term debt, current maturities, and long-term lease liabilities are classified in long-term debt on the Consolidated Balance Sheet. Leases with an initial lease term of twelve months or less have not been recognized on the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense, while the expense for finance leases is recognized as depreciation expense and interest expense using the interest method of recognition. On the cash flow statement, payments for operating leases are classified as operating activities. Payments for finance leases are classified as a financing activity, with the exception of the interest component of the payment which is classified as an operating activity. Goodwill and Other Intangible Assets: Intangible assets with finite useful lives are amortized over their estimated useful lives, ranging from 2 to 15 years, and are reviewed when appropriate for possible impairment, similar to property, plant and equipment. Goodwill and intangible assets with indefinite lives are not amortized, but are tested annually for impairment, or when circumstances indicate that a possible impairment may exist. In general, when the carrying value of these assets exceeds the implied fair value, an impairment loss must be recognized. A significant decline in cash flows generated from these assets may result in a write-down of the carrying values of the related assets. For purposes of testing goodwill for impairment, the Company uses a combination of valuation techniques, including discounted cash flows and other market indicators. For purposes of testing indefinite-lived intangible assets, the Company generally uses a relief from royalty method. Pension and Other Postretirement Plans: Pension assets and liabilities are determined on an actuarial basis and are affected by the market value of plan assets, estimates of the expected return on plan assets and the discount rate used to determine the present value of benefit obligations. Actual changes in the fair market value of plan assets and differences between the actual return on plan assets, the expected return on plan assets and changes in the selected discount rate will affect the amount of pension cost. Differences between actual and expected results or changes in the value of the obligations and plan assets are initially recognized through other comprehensive income and subsequently amortized to the Consolidated Statement of Income. Environmental: Costs that mitigate or prevent future environmental issues or extend the life or improve equipment utilized in current operations are capitalized and depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company's obligation is probable and reasonably estimable. Accruals for losses from environmental remediation obligations do not consider the effects of inflation, and anticipated expenditures are not discounted to their present value. Derivatives and Hedging: Derivatives are held as part of a formal documented hedging program. All derivatives are held for purposes other than trading. Matthews measures effectiveness by formally assessing, at least quarterly, the historical and probable future high correlation of changes in the fair value or future cash flows of the hedged item. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, gains and losses on the derivative will be recorded in other income (deductions) at that time. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) ("OCI"), net of tax, and are reclassified to earnings in a manner consistent with the underlying hedged item. The cash flows from derivative activities are recognized in the statement of cash flows in a manner consistent with the underlying hedged item. Foreign Currency: The functional currency of the Company's foreign subsidiaries is generally the local currency. Balance sheet accounts for foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet date. Gains or losses that result from this process are recorded in accumulated other comprehensive income (loss). The revenue and expense accounts of foreign subsidiaries are translated into U.S. dollars at the average exchange rates that prevailed during the period. Realized gains and losses from foreign currency transactions are presented in the Statement of Income in a consistent manner with the underlying transaction based upon the provisions of Accounting Standards Codification ("ASC") 830 "Foreign Currency Matters." Comprehensive Income (Loss): Comprehensive income (loss) consists of net income adjusted for changes, net of any related income tax effect, in cumulative foreign currency translation, the fair value of derivatives, unrealized investment gains and losses and remeasurement of pension and other postretirement liabilities. Treasury Stock: Treasury stock is carried at cost. The cost of treasury shares sold is determined under the average cost method. Revenue Recognition: Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. For substantially all transactions, control passes in accordance with agreed upon delivery terms, including in certain circumstances, customer acceptance. This approach is consistent with the Company’s historical revenue recognition methodology. In limited instances revenue is recognized over time as critical milestones are met and as services are provided. Transaction price, for revenue recognition, is allocated to each performance obligation consisting of the stand alone selling price for goods and services, as well as warranties. Transaction price also reflects estimates of rebates, other sales or contract renewal incentives, cash discounts and sales returns ("Variable Consideration"). Estimates are made for Variable Consideration based on contract terms and historical experience of actual results and are applied to the performance obligations as they are satisfied. Each product or service delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. Certain revenue related to mausoleum construction and significant engineering projects, including purpose-built engineered products (primarily in support of the electric vehicle and energy storage industries), cremation and incineration projects, and marking and industrial automation projects, are recognized over time using the input method measuring progress toward completion of such projects. Amounts recognized using the over time method were approximately 10% of the Company's consolidated revenue for the year ended September 30, 2021, and less than 5% of the Company's consolidated revenue for the years ended September 30, 2020 and 2019. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Refer to Note 4, “Revenue Recognition,” for a further discussion. Shipping and Handling Fees and Costs: All fees billed to the customer for shipping and handling are classified as a component of net revenues. All costs associated with shipping and handling are classified as a component of cost of sales or selling expense. Research and Development Expenses: Research and development costs are expensed as incurred and were approximately $13,206, $13,363 and $15,043 for the years ended September 30, 2021, 2020 and 2019, respectively. Stock-Based Compensation: Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the employee requisite service period. Income Taxes: Deferred tax assets and liabilities are provided for the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred income taxes have not been provided on undistributed earnings of foreign subsidiaries since they have either been previously taxed, or are exempt from tax, and such earnings are considered to be reinvested indefinitely in foreign operations. Earnings Per Share: Basic earnings per share is computed by dividing net income by the average number of common shares outstanding. Diluted earnings per share is computed using the treasury stock method, which assumes the issuance of common stock for all dilutive securities. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS: Adopted In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) which simplifies the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in Topic 740 and also simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company early adopted this ASU in the quarter ended March 31, 2020. The adoption of this ASU had no significant impact on the Company's consolidated financial statements, but modifies the methodology to assess certain tax principles in Topic 740 prospectively. In August 2018, the FASB issued 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. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements including the consideration of costs and benefits. The adoption of this ASU in the first quarter ended December 31, 2019 had no impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) , which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The adoption of this ASU in the first quarter ended December 31, 2019 had no impact on the Company's consolidated financial statements. 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, Codification 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. The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the year ended September 30, 2021: Accounts Receivable Allowance for Doubtful Accounts Balance at October 1, 2020 $ 9,618 Current period expense 2,182 Deductions (1) (1,146) Balance at September 30, 2021 $ 10,654 (1) Amounts determined not to be collectible (including direct write-offs), net of recoveries. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) , which provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This ASU requires lessees to recognize assets and liabilities that arise from financing and operating leases on the Consolidated Balance Sheet. Subsequently, the FASB issued several ASUs that address implementation issues and correct or improve certain aspects of the new lease guidance, including ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and ASU 2019-01, Leases (Topic 842): Codification Improvements . These ASUs do not change the core principles in the lease guidance outlined above. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Sep. 30, 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 (including energy solutions), imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for 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 years ended September 30, 2021, 2020 and 2019 were as follows: North America Central and South America Europe Australia Asia Consolidated SGK Brand Solutions: 2021 $ 288,054 $ 5,036 $ 372,080 $ 13,336 $ 48,389 $ 726,895 2020 305,527 6,304 326,776 12,097 42,389 693,093 2019 320,553 5,853 362,088 11,767 43,608 743,869 Memorialization: 2021 $ 710,926 $ — $ 47,858 $ 10,232 $ — $ 769,016 2020 611,496 — 35,557 8,982 — 656,035 2019 590,575 — 37,199 9,118 — 636,892 Industrial Technologies: 2021 $ 142,416 $ — $ 26,336 $ — $ 6,367 $ 175,119 2020 120,682 — 25,498 — 2,998 149,178 2019 127,140 — 26,966 — 2,409 156,515 Consolidated: 2021 $ 1,141,396 $ 5,036 $ 446,274 $ 23,568 $ 54,756 $ 1,671,030 2020 1,037,705 6,304 387,831 21,079 45,387 1,498,306 2019 1,038,268 5,853 426,253 20,885 46,017 1,537,276 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 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. As of September 30, 2021 and 2020, the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 209 $ — $ 209 Equity and fixed income mutual funds — 6,936 — 6,936 Life insurance policies — 4,626 — 4,626 Total assets at fair value $ — $ 11,771 $ — $ 11,771 Liabilities: Derivatives (1) $ — $ 2,232 $ — $ 2,232 Total liabilities at fair value $ — $ 2,232 $ — $ 2,232 (1) Interest rate swaps and cross currency swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Equity and fixed income mutual funds $ — $ 24,610 $ — $ 24,610 Life insurance policies — 4,621 — 4,621 Total assets at fair value $ — $ 29,231 $ — $ 29,231 Liabilities: Derivatives (1) $ — $ 7,792 $ — $ 7,792 Total liabilities at fair value $ — $ 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. The carrying values for other financial assets and liabilities approximated fair value for the years ended September 30, 2021 and 2020. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES: Inventories at September 30, 2021 and 2020 consisted of the following: 2021 2020 Raw materials $ 37,673 $ 36,157 Work in process 75,997 70,128 Finished goods 75,418 68,815 $ 189,088 $ 175,100 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS: At September 30, 2021 and 2020, non-current investments were as follows: 2021 2020 Equity and fixed income mutual funds $ 6,936 $ 24,610 Life insurance policies 4,626 4,621 Equity-method investments 458 446 Other (primarily cost-method) investments 18,418 33,573 $ 30,438 $ 63,250 Equity and fixed income mutual funds primarily represent investments held in trust for the Company's non-qualified Supplemental Retirement Plan ("SERP") and are classified as trading securities and recorded at fair value. The market value of these investments exceeded cost by $138 at September 30, 2020. During fiscal 2021, the Company sold certain investments held in trust for its SERP. Such amounts totaled $19,167 and were reported as restricted cash as of September 30, 2021. Realized and unrealized gains and losses are recorded in investment income. During fiscal 2020, the Company made investments of $9,482 in a non-consolidated Memorialization subsidiary. The Company subsequently sold its ownership interest in this subsidiary in fiscal 2020 for $42,210 of cash and $15,000 of senior preferred shares. In connection with this sale transaction, the Company recognized a pre-tax gain of $11,208 which was recorded as a component of administrative expenses for the year ended September 30, 2020. During fiscal 2021, the Company received $15,000 for the full redemption of the senior preferred shares. The senior preferred shares were included within other investments in the table above for the year ended September 30, 2020. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment and the related accumulated depreciation at September 30, 2021 and 2020 were as follows: 2021 2020 Buildings $ 109,912 $ 113,231 Machinery, equipment and other 485,691 486,282 595,603 599,513 Less accumulated depreciation (400,281) (391,436) 195,322 208,077 Land 16,619 16,660 Construction in progress 11,766 12,051 $ 223,707 $ 236,788 Depreciation expense, including amortization of assets under finance lease, was $49,279, $47,544 and $45,037 for each of the three years ended September 30, 2021, 2020 and 2019, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: Long-term debt at September 30, 2021 and 2020 consisted of the following: 2021 2020 Revolving credit facilities $ 350,597 $ 416,793 Securitization facility 95,990 67,700 Senior secured term loan — 22,359 2025 Senior Notes 297,796 297,256 Other borrowings 10,150 20,742 Finance lease obligations 9,177 9,684 Total debt 763,710 834,534 Less current maturities (4,624) (26,824) Long-term debt $ 759,086 $ 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% (1.00% at September 30, 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 $2,182 and $2,734 at September 30, 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 September 30, 2021 and 2020 were $349,780 and $257,439, respectively. There were no outstanding Euro denominated borrowings on the revolving credit facility at September 30, 2021. Outstanding Euro denominated borrowings on the revolving credit facility at September 30, 2020 were €117.0 million ($137,188). There were no outstanding borrowings on the term loan as of September 30, 2021. Outstanding borrowings on the term loan at September 30, 2020 were $22,359. The weighted-average interest rate on outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at September 30, 2021 and 2020 was 2.03% and 2.41%, 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 2025 Senior Notes. Unamortized costs were $2,204 and $2,744 at September 30, 2021 and 2020, respectively. The Company has a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions, which matures in March 2022 and the Company intends to extend this facility. Under the Securitization Facility, the Company and certain of its domestic subsidiaries sell, on a continuous basis without recourse, their trade receivables to Matthews Receivables Funding Corporation, LLC (“Matthews RFC”), a wholly-owned bankruptcy-remote subsidiary of the Company. Matthews RFC in turn assigns a collateral interest in these receivables to certain financial institutions, and then may borrow funds under the Securitization Facility. The Securitization Facility does not qualify for sale treatment. Accordingly, the trade receivables and related debt obligations remain on the Company's Consolidated Balance Sheet. Borrowings under the Securitization Facility bear interest at LIBOR plus 0.75%. The Company is required to pay an annual commitment fee ranging from 0.25% to 0.35% of the unused portion of the Securitization Facility. Outstanding borrowings under the Securitization Facility at September 30, 2021 and 2020 were $95,990 and $67,700, respectively. The interest rate on borrowings under this facility at September 30, 2021 and 2020 was 0.83% and 0.90%, respectively. The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: September 30, 2021 September 30, 2020 Pay fixed swaps - notional amount $ 250,000 $ 312,500 Net unrealized loss $ (2,062) $ (7,792) Weighted-average maturity period (years) 2.2 2.6 Weighted-average received rate 0.08 % 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 $2,062 ($1,558 after tax) and an unrealized loss of $7,792 ($5,884 after tax) at September 30, 2021 and 2020, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income ("AOCI"). Assuming market rates remain constant with the rates at September 30, 2021, a loss (net of tax) of approximately $1,428 included in AOCI is expected to be recognized in earnings over the next twelve months. At September 30, 2021 and 2020, the interest rate swap contracts were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: 2021 2020 Current assets: Other current assets $ 31 $ — Long-term assets: Other assets 139 — Current liabilities: Other current liabilities (1,922) (3,164) Long-term liabilities: Other liabilities (310) (4,628) Total derivatives $ (2,062) $ (7,792) The (losses) gains recognized on derivatives was as follows: Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives 2021 2020 2019 Interest rate swaps Interest expense $(3,249) $(861) $3,181 The Company recognized the following (losses) gains in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Location of (Loss) Gain Reclassified from AOCI into Income Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion*) 2021 2020 2019 (Effective Portion*) 2021 2020 2019 Interest rate swaps $1,873 $(6,130) $(6,540) Interest expense $(2,453) $(650) $2,402 * 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 borrowings available under this facility is €25.0 million ($28,976), which includes €8.0 million ($9,272) 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 €704,000 ($817) and €18.9 million ($22,166) at September 30, 2021 and 2020, respectively. The weighted-average interest rate on outstanding borrowings under this facility was 2.25% and 1.25% at September 30, 2021 and 2020, respectively. Other borrowings totaled $10,150 and $20,742 at September 30, 2021 and 2020, respectively. The weighted-average interest rate on these borrowings was 2.19% and 2.10% at September 30, 2021 and 2020, respectively. During fiscal 2021, the Company entered into a U.S. Dollar/Euro cross currency swap with a notional amount of $94,464 as of September 30, 2021, which was designated as a net investment hedge of foreign operations. The swap contract matures in seven years. The Company assesses hedge effectiveness for this contract based on changes in fair value attributable to changes in spot prices. A gain of $22 (net of income taxes of $7) which represented an effective hedge of net investments, was reported as a component of AOCI within currency translation adjustment for fiscal 2021. Income of $63, which represented the recognized portion of the fair value excluded from the assessment of hedge effectiveness, was included in current period earnings as a component of interest expense for fiscal 2021. The Company previously used certain foreign currency debt instruments as net investment hedges of foreign operations. Currency losses of $5,370 (net of income taxes of $1,743) 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 for fiscal 2021 and 2020, respectively. In September 2014, a claim was filed by a customer seeking to draw upon a letter of credit issued by the Company of £8,570,000 ($11,535 at September 30, 2021) with respect to a performance guarantee on an incineration equipment project in Saudi Arabia. Management assessed the customer's demand to be without merit and initiated an action with the court in the United Kingdom (the "U.K. Court"). Pursuant to this action, an order was issued by the U.K. Court in January 2015 requiring that, upon receipt by the customer, the funds were to be remitted by the customer to the U.K. Court pending resolution of the dispute between the parties. As a result, the Company made payment on the draw to the financial institution for the letter of credit and the funds were ultimately received by the customer. The customer did not remit the funds to the U.K. Court as ordered. On June 14, 2016, the U.K. Court ruled completely in favor of Matthews following a trial on the merits. However, the dispute involved litigation in multiple foreign jurisdictions because the contract between the parties included a venue clause requiring the venue for any litigation to be in the United Kingdom, while the enforcement of any final judgment was required to be executed in Saudi Arabia. Thus, the Company pursued a trial on the merits in Saudi Arabia. On November 9, 2020, the judge in the Commercial Court of Saudi Arabia issued a final judgment against the customer in the amount of £10,450,000 (representing the full claim amount plus interest) in favor of Matthews and the customer did not appeal the ruling by the Commercial Court. As result, the judgment is now final and enforceable in Saudi Arabia. The Company is assessing options to enforce and collect upon the judgment and its level of success in recovering funds from the customer will depend upon several factors, including the availability of recoverable funds, and the level of support of the Saudi Arabian government to enforce the judgment against the customer. During fiscal 2020 and fiscal 2021, the Saudi Arabian government enforced restrictions on travel to Mecca due to the COVID-19 pandemic. As a result, the Company was not able to support the operation of the incineration equipment for the local agency responsible for its operation during the prior two (2) Hajj Pilgrimages. Consequently, the Company continues to have concerns regarding the level of anticipated support from the government in its collection efforts. As a result of these concerns and other collectability risks, the Company established a reserve for the full value of the funded letter of credit as of June 30, 2020, and has made no adjustments to the reserve since that time. The Company will continue to assess the accounting and collectability related to this matter as facts and circumstances evolve. As of September 30, 2021 and 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 September 30, 2021 Aggregate maturities by fiscal year of long-term debt, including other borrowings, is as follows: 2022 $ 97,757 (a) 2023 1,058 2024 1,055 2025 350,854 2026 298,892 Thereafter 4,917 754,533 Finance lease obligations 9,177 (b) $ 763,710 (a) The Company maintains certain debt facilities with current maturity dates in fiscal 2022 that it intends and has the ability to extend beyond fiscal 2022 totaling $96,807. These balances have been classified as non-current on the Company's Consolidated Balance Sheet. (b) Aggregate maturities of finance lease obligations can be found in Note 10, "Leases." |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES: The Company’s lease portfolio includes various contracts for real estate, vehicles, information technology and other equipment. The following table presents the balance sheet and lease classification for the Company's lease portfolio as of September 30, 2021 and 2020, respectively: Balance Sheet Classification Lease Classification 2021 2020 Non-current assets: Property, plant and equipment, net Finance $ 12,337 $ 9,185 Other assets Operating 80,262 72,011 Total lease assets $ 92,599 $ 81,196 Current liabilities: Long-term debt, current maturities Finance $ 3,674 $ 3,515 Other current liabilities Operating 25,151 23,942 Non-current liabilities: Long-term debt Finance 5,503 6,169 Other liabilities Operating 57,272 49,297 Total lease liabilities $ 91,600 $ 82,923 The following table presents the components of lease cost for the years ended September 30, 2021 and 2020, respectively: 2021 2020 Finance lease cost: Amortization of ROU assets $ 4,016 $ 2,112 Interest on lease liabilities 248 206 Operating lease cost (a) 21,716 23,735 Variable lease cost (a) 6,752 5,298 Sublease income (83) (732) Total lease cost $ 32,649 $ 30,619 (a) Annual lease cost under operating leases were $28,468, $29,033 and $38,015 in fiscal 2021, 2020 and 2019, respectively. Supplemental information regarding the Company's leases follows: For the Year Ended September 30, 2021 2020 Cash paid for finance and operating lease liabilities: Operating cash flows from finance leases $ 255 $ 207 Operating cash flows from operating leases $ 28,246 $ 29,309 Financing cash flows from finance leases $ 4,134 $ 2,064 ROU assets obtained in exchange for new finance lease liabilities $ 3,687 $ 2,613 ROU assets obtained in exchange for new operating lease liabilities $ 16,341 $ 12,442 September 30, 2021 September 30, 2020 Weighted-average remaining lease term - finance leases (years) 3.85 4.39 Weighted-average remaining lease term - operating leases (years) 3.82 3.52 Weighted-discount rate - finance leases 2.70 % 2.89 % Weighted-discount rate - operating leases 2.28 % 2.82 % Maturities of lease obligations by fiscal year were as follows as of September 30, 2021: Operating Leases Finance Leases 2022 $ 26,643 $ 3,927 2023 20,953 2,125 2024 15,588 1,222 2025 10,777 565 2026 7,863 456 Thereafter 4,341 1,592 Total future minimum lease payments 86,165 9,887 Less: Interest 3,742 710 Present value of lease liabilities: $ 82,423 $ 9,177 |
LEASES | LEASES: The Company’s lease portfolio includes various contracts for real estate, vehicles, information technology and other equipment. The following table presents the balance sheet and lease classification for the Company's lease portfolio as of September 30, 2021 and 2020, respectively: Balance Sheet Classification Lease Classification 2021 2020 Non-current assets: Property, plant and equipment, net Finance $ 12,337 $ 9,185 Other assets Operating 80,262 72,011 Total lease assets $ 92,599 $ 81,196 Current liabilities: Long-term debt, current maturities Finance $ 3,674 $ 3,515 Other current liabilities Operating 25,151 23,942 Non-current liabilities: Long-term debt Finance 5,503 6,169 Other liabilities Operating 57,272 49,297 Total lease liabilities $ 91,600 $ 82,923 The following table presents the components of lease cost for the years ended September 30, 2021 and 2020, respectively: 2021 2020 Finance lease cost: Amortization of ROU assets $ 4,016 $ 2,112 Interest on lease liabilities 248 206 Operating lease cost (a) 21,716 23,735 Variable lease cost (a) 6,752 5,298 Sublease income (83) (732) Total lease cost $ 32,649 $ 30,619 (a) Annual lease cost under operating leases were $28,468, $29,033 and $38,015 in fiscal 2021, 2020 and 2019, respectively. Supplemental information regarding the Company's leases follows: For the Year Ended September 30, 2021 2020 Cash paid for finance and operating lease liabilities: Operating cash flows from finance leases $ 255 $ 207 Operating cash flows from operating leases $ 28,246 $ 29,309 Financing cash flows from finance leases $ 4,134 $ 2,064 ROU assets obtained in exchange for new finance lease liabilities $ 3,687 $ 2,613 ROU assets obtained in exchange for new operating lease liabilities $ 16,341 $ 12,442 September 30, 2021 September 30, 2020 Weighted-average remaining lease term - finance leases (years) 3.85 4.39 Weighted-average remaining lease term - operating leases (years) 3.82 3.52 Weighted-discount rate - finance leases 2.70 % 2.89 % Weighted-discount rate - operating leases 2.28 % 2.82 % Maturities of lease obligations by fiscal year were as follows as of September 30, 2021: Operating Leases Finance Leases 2022 $ 26,643 $ 3,927 2023 20,953 2,125 2024 15,588 1,222 2025 10,777 565 2026 7,863 456 Thereafter 4,341 1,592 Total future minimum lease payments 86,165 9,887 Less: Interest 3,742 710 Present value of lease liabilities: $ 82,423 $ 9,177 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY:The authorized common stock of the Company consists of 70,000,000 shares of Class A Common Stock, $1.00 par value.The Company has a stock repurchase program. The buy-back program is designed to increase shareholder value, enlarge the Company's holdings of its common stock, and add to earnings per share. Repurchased shares may be retained in treasury, utilized for acquisitions, or reissued to employees or other purchasers, subject to the restrictions set forth in the Company's Restated Articles of Incorporation. On July 28, 2021, the Company's Board of Directors approved the continuation of the stock repurchase program and increased the authorization for stock repurchases by an additional 2,500,000 shares. Under the current authorization, 2,658,627 shares remain available for repurchase as of September 30, 2021. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Sep. 30, 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 478,963 time-based restricted share units, 585,947 performance-based restricted share units, and 75,000 stock options have been granted under the 2017 Equity Incentive Plan. 1,087,445 of these share-based awards are outstanding as of September 30, 2021. The 2017 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors (the "Committee"). For the years ended September 30, 2021, 2020 and 2019, stock-based compensation cost totaled $15,581, $8,096 and $7,729, respectively. The associated future income tax benefit recognized was $3,247, $1,665 and $1,535 for the years ended September 30, 2021, 2020 and 2019, respectively. 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 Committee. Approximately 42% 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. The transactions for restricted shares and restricted share units for the year ended September 30, 2021 were as follows: Shares Weighted- Non-vested at September 30, 2020 750,322 $ 40.88 Granted 499,050 30.06 Vested (127,540) 51.90 Expired or forfeited (38,467) 55.79 Non-vested at September 30, 2021 1,083,365 $ 34.07 During the third quarter of fiscal 2021, 75,000 stock options were granted under the 2017 Equity Incentive Plan. The option price for each stock option granted was $41.70, which was equal to the fair market value of the Company's Class A Common Stock on the date of grant. These options vest in one-third increments annually over three years from the grant date. Unvested stock options expire on the earlier of five years from the date of grant, or upon employment termination, retirement or death. The Company generally settles employee stock option exercises with treasury shares. As of September 30, 2021, the total unrecognized compensation cost related to all unvested stock-based awards was $10,858 which is expected to be recognized over a weighted-average period of 1.8 years. The fair value of certain restricted share units that are subject to performance conditions and the fair value of stock options 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 stock-based awards granted during the year ended September 30, 2021. Restricted Stock Expected volatility 42.9 % 41.9 % Dividend yield 3.2 % 3.1 % Average risk-free interest rate 0.2 % 0.5 % Average expected term (years) 3.0 5.0 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 year ended September 30, 2021 represents an estimate of the average period of time for restricted share units and stock options to vest. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The information used to compute earnings (loss) per share attributable to Matthews' common shareholders was as follows: 2021 2020 2019 Net income (loss) attributable to Matthews shareholders $ 2,910 $ (87,155) $ (37,988) Weighted-average shares outstanding (in thousands): Basic shares 31,696 31,190 31,416 Effect of dilutive securities 291 — — Diluted shares 31,987 31,190 31,416 Anti-dilutive securities excluded from the dilutive calculation were insignificant for the fiscal year ended September 30, 2021. During periods in which the Company incurs a net loss, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 12 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT PLANS | PENSION AND OTHER POSTRETIREMENT PLANS: The Company provides defined benefit pension and other postretirement plans to certain employees. Effective January 1, 2014, the Company's DB Plan was closed to new participants. In April 2021, the Committee approved resolutions to freeze all future benefit accruals for all participants in the Company's SERP and the defined benefit portion of the Officers Retirement Restoration Plan (“ORRP”), effective April 30, 2021. In August 2021, the Committee approved the termination of the SERP and the defined benefit portion of the ORRP. In September 2021, the Company notified SERP and ORRP participants of its intention to fully settle the obligations of the SERP and ORRP in early fiscal 2023. In August 2021, the Company's Board of Directors approved the freeze of all future benefit accruals for the Company's DB Plan, effective September 30, 2021, and the planned termination of the DB Plan in early fiscal 2022. At such time, the Company notified all plan participants of the Company's intentions to terminate and fully settle the obligations of the DB Plan early in fiscal 2022. The freezing of the DB Plan, SERP, and ORRP triggered curtailments, which resulted in the remeasurement of the projected benefit obligations and the immediate recognition of prior service costs in earnings, which were previously included within AOCI. The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2021 and 2020: Pension Other Postretirement 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation, beginning of year $ 318,887 $ 289,957 $ 19,431 $ 20,952 Service cost 7,919 8,679 201 227 Interest cost 6,145 7,735 376 501 Actuarial (gain) loss (8,045) 23,827 (660) (1,402) Curtailment gain (17,324) — — — Special termination benefits 315 — — — Exchange (gain) loss (133) 799 — — Benefit payments (13,838) (12,110) (507) (847) Benefit obligation, end of year (1) 293,926 318,887 18,841 19,431 Change in plan assets: Fair value, beginning of year (2) 168,134 155,313 — — Actual return 37,789 8,705 — — Benefit payments (13,838) (12,110) (507) (847) Employer contributions 16,259 16,226 507 847 Fair value, end of year (2) 208,344 168,134 — — Funded status (2) (85,582) (150,753) (18,841) (19,431) Unrecognized actuarial loss 49,545 110,971 16 676 Unrecognized prior service (credit) cost (309) 343 (1,684) (2,048) Net amount recognized $ (36,346) $ (39,439) $ (20,509) $ (20,803) Amounts recognized in the consolidated balance sheet: Current liability $ (779) $ (905) $ (883) $ (831) Noncurrent benefit liability (84,803) (149,848) (17,958) (18,600) Accumulated other comprehensive loss (income) 49,236 111,314 (1,668) (1,372) Net amount recognized $ (36,346) $ (39,439) $ (20,509) $ (20,803) Amounts recognized in accumulated other comprehensive loss (income): Net actuarial loss $ 49,545 $ 110,971 $ 16 $ 676 Prior service (credit) cost (309) 343 (1,684) (2,048) Net amount recognized $ 49,236 $ 111,314 $ (1,668) $ (1,372) (1) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), asset, salary and other experience, and curtailments impacted benefit obligations. (2) The fair value of plan assets and funded status do not include the value of investments and restricted cash held in trust for the Company's non-qualified SERP. The combined value of these investments and restricted cash totaled $26,103 and $24,610 as of September 30, 2021 and 2020, respectively. Refer to Note 7, "Investments" for further details. Based upon actuarial valuations performed as of September 30, 2021 and 2020, the accumulated benefit obligation for the Company's defined benefit pension plans was $293,926 and $295,674 at September 30, 2021 and 2020, respectively, and the projected benefit obligation for the Company's defined benefit pension plans was $293,926 and $318,887 at September 30, 2021 and 2020, respectively. Net periodic pension and other postretirement benefit cost for the plans included the following: Pension Other Postretirement 2021 2020 2019 2021 2020 2019 Service cost $ 7,919 $ 8,679 $ 7,998 $ 201 $ 227 $ 244 Interest cost * 6,145 7,735 9,202 376 501 718 Expected return on plan assets * (10,809) (10,214) (10,304) — — — Amortization: Prior service cost (127) (186) (186) (364) (464) (195) Net actuarial loss * 9,769 9,767 4,245 — — (59) Curtailment gain * (220) — — — — — Special termination benefits * 315 — — — — — Prior-service cost write-offs * 261 — — — — — Net benefit cost $ 13,253 $ 15,781 $ 10,955 $ 213 $ 264 $ 708 * Non-service components of pension and postretirement expense are included in other income (deductions), net. Matthews has elected to utilize a full yield curve approach in the estimation of the service and interest cost components of net periodic benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Benefit payments under the Company's DB Plan are made from plan assets, while benefit payments under the SERP and postretirement benefit plan are funded from the Company's operating cash. Contributions made in fiscal 2021 are as follows: Contributions Pension Other Postretirement Principal defined benefit retirement plan $ 15,000 $ — Supplemental retirement plan 806 — Other retirement plans 453 — Other postretirement plan — 507 In November 2021, subsequent to the date of the balance sheet, the Company contributed $20,000 to the DB Plan. Also in November 2021, lump sum distributions of $178,230 from the DB Plan were made to plan participants, resulting in the settlement of a substantial portion of the DB Plan obligations. This settlement of the DB Plan obligations is expected to result in the recognition of a non-cash charge in excess of $30,000 in the first quarter of fiscal 2022. This amount represents the immediate recognition of a portion of the deferred AOCI balances related to the DB Plan, and is based on current estimates as of September 30, 2021. The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year. The measurement date of annual actuarial valuations for the Company's DB Plan and other postretirement benefit plans was September 30, for fiscal 2021, 2020 and 2019. The weighted-average assumptions for those plans were: Pension Other Postretirement 2021 2020 2019 2021 2020 2019 Discount rate 2.79 % 2.62 % 3.13 % 2.83 % 2.63 % 3.10 % Return on plan assets 3.10 % 6.75 % 6.75 % — — — Compensation increase 3.50 % 3.50 % 3.50 % — — — In October 2014, the Society of Actuaries' Retirement Plans Experience Committee ("RPEC") released new mortality tables known as RP 2014. Each year, RPEC releases an update to the mortality improvement assumption that was released with the RP 2014 tables. The Company considered the RPEC mortality and mortality improvement tables and performed a review of its own mortality history to assess the appropriateness of the RPEC tables for use in generating financial results. In fiscal years 2021, 2020 and 2019, the Company elected to value its DB Plan and other postretirement benefit plan liabilities using the base RP 2014 mortality table and a slightly modified fully generational mortality improvement assumption. The revised assumption uses the most recent RPEC mortality improvement table for all years where the RPEC tables are based on finalized data, and the most recently published Social Security Administration Intermediate mortality improvement for subsequent years. The Company's investment policy, as established by the Company's pension board, specifies the types of investments appropriate for the plans, asset allocation guidelines, criteria for the selection of investment managers, procedures to monitor overall investment performance as well as investment manager performance. It also provides guidelines enabling plan fiduciaries to fulfill their responsibilities. The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2021 and 2020 and weighted-average target allocation were as follows: Plan Assets at Target Asset Category 2021 2020 Allocation * Equity securities $ 4,075 $ 118,677 — % Fixed income, cash and cash equivalents 189,958 34,184 100 % Other investments 14,311 15,273 — % $ 208,344 $ 168,134 100 % * Target allocation relates to the Company's DB Plan as of September 30, 2021. During fiscal 2021, the investment policy for the Company's DB Plan was updated to establish modified asset allocation targets. The updated investment objective is intended to reduce risk assets in favor of fixed income investments as a result of the planned termination and expected settlement of the DB Plan in fiscal 2022. Based on an analysis of the historical and expected future performance of the plan's assets and information provided by its independent investment advisor, the Company set the long-term rate of return assumption for its DB Plan's assets at 3.10% in 2021 for purposes of determining pension cost and funded status under current guidance. The Company's discount rate assumption used in determining the present value of the projected benefit obligation is based upon published indices. The Company categorizes plan assets within a three level fair value hierarchy (see Note 5, "Fair Value Measurements" for a further discussion of the fair value hierarchy). The valuation methodologies used to measure the fair value of pension assets, including the level in the fair value hierarchy in which each type of pension plan asset is classified as follows. Equity securities consist of direct investments in the stocks of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1. Mutual funds are valued at the closing price of shares held by the Plan at year end. As such, these mutual fund investments are classified as Level 1. Fixed income securities consist of publicly traded fixed interest obligations (primarily U.S. government notes and corporate and agency bonds). Such investments are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data. As such, U.S. government notes are included in Level 1, and the remainder of the fixed income securities are included in Level 2. Cash and cash equivalents consist of direct cash holdings and short-term money market mutual funds. These values are valued based on cost, which approximates fair value, and as such, are classified as Level 1. Other investments consist primarily of real estate, commodities, private equity holdings and hedge fund investments. These holdings are valued by investment managers based on the most recent information available. The valuation information used by investment managers may not be readily observable. As such, these investments are classified as Level 3. The Company's defined benefit pension plans' asset categories at September 30, 2021 and 2020 were as follows: September 30, 2021 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks (1) $ 4,075 $ — $ — $ 4,075 Fixed income securities 10,403 101,133 — 111,536 Cash and cash equivalents 78,422 — — 78,422 Other investments — — 14,311 14,311 Total $ 92,900 $ 101,133 $ 14,311 $ 208,344 (1) Includes $4,075 of of Matthews Class A Common Stock in Level 1. September 30, 2020 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks (1) $ 37,089 $ — $ — $ 37,089 Equity securities - mutual funds 81,588 — — 81,588 Fixed income securities 11,738 20,086 — 31,824 Cash and cash equivalents 2,360 — — 2,360 Other investments — — 15,273 15,273 Total $ 132,775 $ 20,086 $ 15,273 $ 168,134 (1) Includes $14,936 of of Matthews Class A Common Stock in Level 1. Changes in the fair value of Level 3 assets at September 30, 2021 and 2020 are summarized as follows: Asset Category Fair Value, Beginning of Period Acquisitions Dispositions Realized Gains Unrealized Gains (Losses) Fair Value, End of Period Other investments: Fiscal Year Ended: September 30, 2021 $ 15,273 $ 236 $ (2,144) $ 272 $ 674 $ 14,311 September 30, 2020 10,860 10,835 (6,326) 220 (316) 15,273 Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits * Other Postretirement Benefits 2022 $ 12,152 $ 884 2023 35,644 906 2024 12,609 924 2025 12,673 937 2026 13,057 940 2027-2031 67,218 4,546 $ 153,353 $ 9,137 * Pension benefit amounts do not reflect the planned termination and expected settlement of the DB Plan in fiscal 2022 (see above for further details). For measurement purposes, a rate of increase of 6.5% in the per capita cost of health care benefits was assumed for 2022; the rate was assumed to decrease gradually to 4.0% for 2070 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported. The Company sponsors defined contribution plans for hourly and salary employees. The expense associated with the contributions made to these plans was $9,186, $8,692, and $8,176 for the fiscal years ended September 30, 2021, 2020 and 2019, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME: The changes in AOCI by component, net of tax, for the years ended September 30, 2021, 2020, and 2019 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2018 $ (37,876) $ (134,960) $ 8,538 $ (164,298) OCI before reclassification (36,784) (21,254) (6,540) (64,578) Amounts reclassified from AOCI 2,917 (a) — (2,402) (b) 515 Net current-period OCI (33,867) (21,254) (8,942) (64,063) Balance, September 30, 2019 $ (71,743) $ (156,214) $ (404) $ (228,361) OCI before reclassification (18,094) 4,333 (6,130) (19,891) Amounts reclassified from AOCI 6,883 (a) — 650 (b) 7,533 Net current-period OCI (11,211) 4,333 (5,480) (12,358) Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification 39,822 (3,370) 1,873 38,325 Amounts reclassified from AOCI 7,202 (a) — 2,453 (b) 9,655 Net current-period OCI 47,024 (3,370) 4,326 47,980 Balance, September 30, 2021 $ (35,930) $ (155,251) $ (1,558) $ (192,739) Attributable to noncontrolling interest: Balance, September 30, 2018 $ — $ 467 $ — $ 467 OCI before reclassification — (92) — (92) Net current-period OCI — (92) — (92) Balance, September 30, 2019 — 375 — 375 OCI before reclassification — (7) — (7) Net current-period OCI — (7) — (7) Balance, September 30, 2020 — 368 — 368 OCI before reclassification — (127) — (127) Net current-period OCI — (127) — (127) Balance, September 30, 2021 $ — $ 241 $ — $ 241 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 14). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 9). Accumulated other comprehensive loss at September 30, 2021 and 2020 consisted of the following: 2021 2020 Cumulative foreign currency translation $ (155,251) $ (151,881) Fair value of derivatives, net of tax of $504 and $1,908, respectively (1,558) (5,884) Minimum pension liabilities, net of tax of $11,638 and $26,988, respectively (35,930) (82,954) $ (192,739) $ (240,719) Reclassifications out of AOCI for the years ended September 30, 2021, 2020 and 2019 were as follows: Details about AOCI Components September 30, 2021 September 30, 2020 September 30, 2019 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 491 $ 650 $ 381 Actuarial losses (9,769) (9,767) (4,245) Other income (deductions), net Prior service cost write-off (261) — — Other income (deductions), net (9,539) (9,117) (3,864) Income before income tax (b) 2,337 2,234 947 Income taxes $ (7,202) $ (6,883) $ (2,917) Net income Derivatives Interest rate swap contracts $ (3,249) $ (861) $ 3,181 Interest expense (3,249) (861) 3,181 Income before income tax (b) 796 211 (779) Income taxes $ (2,453) $ (650) $ 2,402 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. For additional information, see Note 14. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The income tax provision (benefit) consisted of the following: 2021 2020 2019 Current: Federal $ (3,741) $ (12,354) $ 3,308 State 3,579 (1,030) 2,232 Foreign 2,379 11,306 2,049 2,217 (2,078) 7,589 Deferred: Federal 5,829 4,710 (5,472) State 169 2,880 (2,782) Foreign (1,840) (24,197) 1,471 4,158 (16,607) (6,783) Total $ 6,375 $ (18,685) $ 806 The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows: 2021 2020 2019 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Effect of state income taxes, net of federal deduction 37.5 % (1.9) % 2.7 % Foreign statutory taxes compared to federal statutory rate (18.6) % 3.4 % (0.8) % Share-based compensation 24.5 % (1.4) % (3.1) % Termination of SERP 28.6 % — % — % Tax credits (26.6) % 1.8 % 4.9 % Tax basis difference — % — % 9.8 % Sale of SERP-related investments 23.8 % — % — % Goodwill write-down — % (9.4) % (40.2) % Tax rate differential on net operating loss carryback (21.4) % 4.2 % — % Other 0.2 % (0.1) % 3.6 % Effective tax rate 69.0 % 17.6 % (2.1) % The Company's consolidated income taxes for the year ended September 30, 2021 were an expense of $6,375, compared to a benefit of $18,685 for fiscal 2020, and an expense of $806 for fiscal 2019. The difference between the Company's consolidated income taxes for fiscal 2021 compared to fiscal 2020 primarily resulted from fiscal 2021 having consolidated income before income taxes, compared to fiscal 2020 having a consolidated loss, which reflected the goodwill write-down recorded in the second quarter of fiscal 2020, that was partially non-deductible. Additionally, the fiscal 2021 tax rate was negatively impacted by the termination of the Company's SERP, which resulted in certain expenses that are nondeductible for tax purposes. The fiscal 2021 effective tax rate benefited from research and development and foreign tax credits, the reduction of uncertain tax positions due to the expiration of the statute of limitations in certain jurisdictions, and the completion of a state tax audit, and the tax benefit of the NOL carryback. The Company’s fiscal 2020 effective tax rate was negatively affected by the non-deductible portion of the goodwill write-down along with certain other non-deductible expenses. The fiscal 2020 effective tax rate benefited from research and development and foreign tax credits, the reduction of uncertain tax positions due to the completion of a foreign tax audit, and the tax benefit of the NOL carryback. The difference between the Company's effective tax rate for fiscal 2020 versus fiscal 2019 primarily resulted from partially non-deductible goodwill write downs of differing amounts in both periods, as well as a benefit for an expected net operating loss (“NOL”) carryback in fiscal 2020. The fiscal 2019 effective tax rate benefited from research and development and foreign tax credits and the elimination, achieved through tax planning, of a taxable basis difference. The Company's foreign subsidiaries had income before income taxes for the year ended September 30, 2021 of approximately $6,685, loss before income taxes for the year ended September 30, 2020 of approximately $68,343 and income before income taxes for the year ended September 30, 2019 of approximately $11,042. Deferred income taxes have not been provided on undistributed earnings of foreign subsidiaries since they have either been previously taxed, or are now exempt from tax, under the U.S. Tax Cuts and Jobs Act, and such earnings are considered to be reinvested indefinitely in foreign operations. At September 30, 2021, undistributed earnings of foreign subsidiaries for which deferred income taxes have not been provided approximated $358,342. The components of deferred tax assets and liabilities at September 30, 2021 and 2020 are as follows: 2021 2020 Deferred tax assets: Pension and postretirement benefits $ 11,832 $ 39,705 Accruals and reserves not currently deductible 8,753 12,258 Income tax credit carryforward 5,206 5,308 Operating and capital loss carryforwards 51,438 34,146 Stock options 4,944 4,062 Other 1,320 8,376 Total deferred tax assets 83,493 103,855 Valuation allowances (28,619) (22,527) Net deferred tax assets 54,874 81,328 Deferred tax liabilities: Depreciation (23,224) (27,671) Unrealized gains and losses (886) 389 Goodwill and intangible assets (113,476) (123,259) Other (11,215) (5,941) Total deferred tax liabilities (148,801) (156,482) Net deferred tax liability $ (93,927) $ (75,154) At September 30, 2021, the Company had foreign net operating loss carryforwards of $218,691 and foreign capital loss carryforwards of $21,037. The Company has recorded deferred tax assets of $3,045 for state net operating loss carryforwards, which will be available to offset future income tax liabilities. If not used, state net operating losses will begin to expire in 2022. Certain of the foreign net operating losses begin to expire in 2022 while the majority of the Company's foreign net operating losses have no expiration period. Certain of these carryforwards are subject to limitations on use due to tax rules affecting acquired tax attributes, loss sharing between group members, and business continuation. Therefore, the Company has established tax-effected valuation allowances against these tax benefits in the amount of $28,619 at September 30, 2021. Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2021 2020 2019 Balance, beginning of year $ 10,483 $ 15,526 $ 14,827 Increases for tax positions of prior years — 500 — Decreases for tax positions of prior years (288) (2,727) — Increases based on tax positions related to the current year 628 939 1,420 Decreases due to lapse of statute of limitation (8,016) (3,755) (721) Balance, end of year $ 2,807 $ 10,483 $ 15,526 The Company had unrecognized tax benefits of $2,807 at September 30, 2021, which would impact the annual effective tax rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $414 in the next 12 months primarily due to the completion of audits and the expiration of the statute of limitation related to specific tax positions. The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. Total penalties and interest accrued were $691 and $2,172 at September 30, 2021 and 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 limitation expires for those tax jurisdictions. As of September 30, 2021, the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2018 and forward United States - State 2017 and forward Canada 2017 and forward Germany 2019 and forward United Kingdom 2020 and forward Australia 2017 and forward Singapore 2017 and forward |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES: The Company is party to various legal proceedings, the eventual outcome of which are not predictable. Although the ultimate disposition of these proceedings is not presently determinable, management is of the opinion that they should not result in liabilities in an amount which would materially affect the Company's consolidated financial position, results of operations or cash flows. The Company has employment agreements with certain employees, the terms of which expire at various dates between fiscal 2022 and 2025. The agreements generally provide for base salary and bonus levels and include non-compete provisions. The aggregate commitment for salaries under these agreements at September 30, 2021 was $7,168. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION: Changes in working capital items as presented in the Consolidated Statements of Cash Flows consisted of the following: 2021 2020 2019 Current assets: Accounts receivable $ (13,423) $ 24,055 $ 8,779 Inventories (12,839) 5,976 830 Other current assets (15,618) (14,803) 10,317 (41,880) 15,228 19,926 Current liabilities: Trade accounts payable 29,621 8,363 3,715 Accrued compensation 10,791 15,512 (8,832) Accrued income taxes 601 (2,384) (5,416) Other current liabilities 13,849 9,648 (21,875) 54,862 31,139 (32,408) Net change $ 12,982 $ 46,367 $ (12,482) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 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 (including energy solutions), 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. Effective in the first quarter of fiscal 2022, the Company transferred its surfaces and engineered products businesses from the SGK Brand Solutions segment to the Industrial Technologies segment. This business segment change is consistent with internal management structure and reporting changes effective for fiscal 2022. 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 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 accounting policies of the segments are the same as those described in Note 2 "Summary of Significant Accounting Policies". Intersegment sales are accounted for at negotiated prices. Segment assets include those assets that are used in the Company's operations within each segment. Assets classified under "Corporate and Non-Operating" principally consist of cash and cash equivalents, investments, deferred income taxes and corporate headquarters' assets. Long-lived assets include property, plant and equipment (net of accumulated depreciation), goodwill, and other intangible assets (net of accumulated amortization). Information about the Company's segments follows: SGK Brand Solutions Memorialization Industrial Technologies Corporate and Non-Operating Consolidated Sales to external customers: 2021 $ 726,895 $ 769,016 $ 175,119 $ — $ 1,671,030 2020 693,093 656,035 149,178 — 1,498,306 2019 743,869 636,892 156,515 — 1,537,276 Intersegment sales: 2021 55 — — — 55 2020 29 4 281 — 314 2019 703 25 48 — 776 Depreciation and amortization: 2021 99,490 23,043 5,602 5,377 133,512 2020 87,597 20,527 5,771 5,163 119,058 2019 59,684 19,731 6,195 5,183 90,793 Adjusted EBITDA: 2021 99,665 165,653 26,659 (64,227) 227,750 2020 90,644 146,285 22,753 (56,602) 203,080 2019 119,493 134,286 24,082 (56,989) 220,872 Total assets: 2021 961,996 807,215 197,715 65,152 2,032,078 2020 1,014,097 779,886 192,948 85,702 2,072,633 2019 1,106,276 830,377 191,533 62,417 2,190,603 Capital expenditures: 2021 19,117 11,969 1,278 1,949 34,313 2020 20,250 11,282 1,598 1,719 34,849 2019 22,310 9,352 2,382 3,644 37,688 A reconciliation of adjusted EBITDA to net income follows: 2021 2020 2019 Total Adjusted EBITDA $ 227,750 $ 203,080 $ 220,872 Acquisition related items (1)** (541) (3,440) (10,084) ERP integration costs (2)** (1,037) (2,296) (7,508) Strategic initiatives and other charges: (3)** Workforce reductions and related costs (10,644) (9,232) (5,061) Other cost-reduction initiatives (17,317) (25,718) (9,176) Legal matter reserve (4) — (10,566) — Non-recurring / incremental COVID-19 costs (5)*** (5,312) (3,908) — Goodwill write-downs (6) — (90,408) (77,572) Net realized gains (losses) on divestitures and asset dispositions: Gain (loss) on sale of ownership interests in subsidiaries (7) — 11,208 (6,469) Realized loss on cost-method investments (8) — — (4,731) Net gains from the sale of buildings and vacant properties (9) — — 7,347 Joint Venture depreciation, amortization, interest expense and other charges (10) — (4,732) (1,514) Stock-based compensation (15,581) (8,096) (7,729) Non-service pension and postretirement expense (11) (5,837) (7,789) (3,802) Depreciation and amortization * (133,512) (119,058) (90,793) Interest expense (28,684) (34,885) (40,962) Net loss attributable to noncontrolling interests (52) (497) (901) Income (loss) before income taxes 9,233 (106,337) (38,083) Income tax (provision) benefit (6,375) 18,685 (806) Net income (loss) $ 2,858 $ (87,652) $ (38,889) (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 primarily associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (4) Represents a reserve established for a legal matter involving a letter of credit for a customer in Saudi Arabia within the Memorialization segment (see Note 9, "Long Term Debt"). (5) 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. (6) Represents goodwill write-downs within the SGK Brand Solutions segment (see Note 21, "Goodwill and Other Intangible Assets"). (7) Represents the gain (loss) on the sale of ownership interests in subsidiaries within the Memorialization segment. (8) Includes gains/losses related to cost-method investments, and related assets, within the SGK Brand Solutions and Memorialization segments. (9) Includes significant building and vacant property transactions resulting in a gain of $8,663 within the Industrial Technologies segment and losses of $915 and $401 within the SGK Brand Solutions and Memorialization segments, respectively. (10) 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. (11) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, and curtailment 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. Curtailment gains and losses are excluded from Adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits. 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 $99,490, $87,597, and $59,684 for the SGK Brand Solutions segment, $23,043, $20,527, and $19,731 for the Memorialization segment, $5,602, $5,771, and $6,195 for the Industrial Technologies segment, and $5,377, $5,163, and $5,183 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021, 2020, and 2019, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $16,349, $14,737, and $8,903 for the SGK Brand Solutions segment and $11,267, $22,985, and $19,853 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021, 2020, and 2019, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $1,923 and $2,696 for the Memorialization segment for the fiscal years ended September 30, 2021, and 2020, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $268 and $3,073 for the Industrial Technologies segment for the fiscal years ended September 30, 2020 and 2019, respectively. *** Non-recurring/incremental COVID-19 costs were $1,563 and $1,453 for the SGK Brand Solutions segment, $3,646 and $1,819 for the Memorialization segment, $14 and $21 for the Industrial Technologies segment, and $89 and $615 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021 and 2020, respectively. Information about the Company's operations by geographic area follows: North America Central and South America Europe Australia Asia Consolidated Sales to external customers: 2021 $ 1,141,396 $ 5,036 $ 446,274 $ 23,568 $ 54,756 $ 1,671,030 2020 1,037,705 6,304 387,831 21,079 45,387 1,498,306 2019 1,038,268 5,853 426,253 20,885 46,017 1,537,276 Long-lived assets: 2021 890,545 14,226 277,655 21,012 55,598 1,259,036 2020 957,393 14,063 286,990 21,746 55,482 1,335,674 2019 1,047,505 15,585 342,802 21,278 57,729 1,484,899 |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES: Fiscal 2021: In April 2021, the Company completed a small acquisition in the hydrogen fuel cell industry within the SGK Brand Solutions segment for a purchase price of $2,523 (net of cash acquired and holdback amounts). The preliminary purchase price allocation is not finalized as of September 30, 2021 and is subject to changes as the Company finalizes the valuation of acquired intangible assets, and obtains additional information related to other assets and liabilities. In January 2021, the Company acquired a memorialization business that produces and distributes cemetery products for a purchase price of $13,100. The Company finalized the allocation of the purchase price in the fourth quarter of fiscal 2021, resulting in an immaterial adjustment to certain working capital accounts. Fiscal 2020: During fiscal 2020, the Company completed a small acquisition in the Memorialization segment for a purchase price of $1,000 (net of cash acquired and holdback amounts). The Company finalized the allocation of the purchase price in the fourth quarter of fiscal 2021, resulting in an immaterial adjustment to certain working capital accounts. Fiscal 2019: On November 1, 2018 the Company acquired 80% ownership of Frost Converting Systems, Inc. (“Frost”) for a purchase price of approximately $7,162 (net of cash acquired and holdback amounts). Frost is a leading global supplier of high-performance rotary dies for embossing, creasing and cutting of paperboard packaging and is included in the Company's SGK Brand Solutions segment. The Company finalized the allocation of the purchase price related to the Frost acquisition in the fourth quarter of fiscal 2019, resulting in an immaterial adjustment to certain working capital accounts. During fiscal 2019, the Company completed small acquisitions in the Memorialization segment for a combined purchase price of $3,094 (net of cash acquired and holdback amounts). The Company finalized the purchase price allocations related to these acquisitions in the first quarter of fiscal 2020, resulting in an immaterial adjustment to certain working capital accounts. During fiscal 2019, the Company completed the sale of a 51% ownership interest in a Memorialization business. Net proceeds from this sale totaled approximately $8,254, and the transaction resulted in the recognition of a $5,587 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS: Changes to goodwill during the years ended September 30, 2021 and 2020, follow. SGK Brand Solutions Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2019 $ 395,704 $ 359,737 $ 91,366 $ 846,807 Translation and other adjustments 6,441 1,945 603 8,989 Goodwill write-down (90,408) — — (90,408) Net goodwill at September 30, 2020 311,737 361,682 91,969 765,388 Additions during period — 4,775 — 4,775 Translation and other adjustments 3,113 (97) 608 3,624 Net goodwill at September 30, 2021 $ 314,850 $ 366,360 $ 92,577 $ 773,787 The net goodwill balances at September 30, 2021 and 2020 included $178,732 of accumulated impairment losses. Accumulated impairment losses at September 30, 2021 and 2020 were $173,732 and $5,000 for the SGK Brand Solutions and Memorialization segments, respectively. Fiscal 2021: In fiscal 2021, the additions to SGK Brand Solutions goodwill and Memorialization goodwill reflect acquisitions of small businesses within each segment. 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. Fiscal 2020: On January 30, 2020, the World Health Organization declared an outbreak of COVID-19 to be a Public Health Emergency of International Concern, and subsequently recognized COVID-19 as a global pandemic in March 2020. Widespread efforts have been deployed by multiple countries around the world to prevent the virus from spreading, including temporary closures of non-essential businesses, event cancellations, travel restrictions, quarantines, and other disruptive actions. Substantially all of the Company’s operations have remained open during the COVID-19 pandemic, as they have been considered “essential” businesses during this time. However, the Company has experienced some commercial impact and business disruptions in certain segments and geographic locations as a result of COVID-19. In its assessment of the potential impacts of COVID-19 on the estimated future earnings and cash flows for the SGK Brand Solutions segment, and in light of the limited excess fair values over carrying values for its two reporting units, management determined that COVID-19 represented a triggering event, resulting in a re-evaluation of the goodwill for its reporting units within the SGK Brand Solutions segment (Graphics Imaging and Cylinders, Surfaces and Engineered Products), as of March 31, 2020. As a result of this interim assessment, the Company recorded a goodwill write-down totaling $90,408 during the fiscal 2020 second quarter. Subsequent to this write-down, the fair values of the two reporting units within the SGK Brand Solutions segment (Graphics Imaging and Cylinders, Surfaces and Engineered Products) approximated their carrying values at March 31, 2020. The fair values for these reporting units were determined using level 3 inputs (including estimates of revenue growth, EBITDA contribution and the discount rates) and a combination of the income approach using the estimated discounted cash flows and a market-based valuation methodology. Fiscal 2019: During the fourth quarter of fiscal 2019, the Company initiated an in-depth review of the commercial and cost structure of the SGK Brand Solutions segment as a result of continued challenging market conditions affecting the segment. This review identified certain opportunities to improve the segment’s profitability and reduce its operating cost structure and, as a result, the Company revised its estimates of future earnings and cash flows for the Graphics Imaging reporting unit. In response to these revised projections, the Company re-evaluated the goodwill for the Graphics Imaging reporting unit, as of September 1, 2019. As a result of this interim assessment, the Company recorded a goodwill write-down of $77,600 during the fiscal 2019 fourth quarter. The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2021 and 2020, respectively. Carrying Accumulated Net September 30, 2021 Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,867 (104,211) 44,656 Customer relationships 388,699 (210,361) 178,338 Copyrights/patents/other 23,584 (15,576) 8,008 $ 591,690 $ (330,148) $ 261,542 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 fiscal 2021 included the impact of foreign currency fluctuations during the period, additional amortization and additions related to current year acquisitions. 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. During fiscal 2019, the Company reassessed its trade name strategy for the SGK Brand Solutions segment, in conjunction with an overall assessment and shift of its commercial structure and strategy for this segment, and initiated a plan to reduce its global trade names for its core brand solutions businesses. As a result of this change, the Company began to discontinue the use of certain trade names within the SGK Brand Solutions segment. Accordingly, the remaining useful lives of the impacted trade names were reduced to reflect the Company’s brand migration plans and an estimated time period for the discontinued trade names to be classified as defensive assets. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT:In November 2021, subsequent to the date of the balance sheet, the Company contributed $20,000 to the DB Plan. Also in November 2021, lump sum distributions of $178,230 from the DB Plan were made to plan participants, resulting in the settlement of a substantial portion of the DB Plan obligations. This settlement of the DB Plan obligations is expected to result in the recognition of a non-cash charge in excess of $30,000 in the first quarter of fiscal 2022. This amount represents the immediate recognition of a portion of the deferred AOCI balances related to the DB Plan, and is based on current estimates as of September 30, 2021. See Note 14, "Pension and Other Postretirement Plans" for further discussion. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Additions Description Balance at Beginning of Period Charged to Expense Charged to other Accounts (1) Deductions (2) Balance at End of Period (Dollar amounts in thousands) Allowance for Doubtful Accounts: Fiscal Year Ended: September 30, 2021 $ 9,618 $ 2,182 $ — $ (1,146) $ 10,654 September 30, 2020 10,846 1,736 15 (2,979) 9,618 September 30, 2019 11,158 2,787 20 (3,119) 10,846 (1) Amount comprised principally of acquisitions and purchase accounting adjustments in connection with acquisitions, and amounts reclassified to other accounts. (2) Amounts determined not to be collectible (including direct write-offs), net of recoveries. Description Balance at Beginning of Period Provision Charged To Expense (1) Allowance Changes Other Additions (Deductions) (2) Balance at End of Period (Dollar amounts in thousands) Deferred Tax Asset Valuation Allowance: Fiscal Year Ended: September 30, 2021 $ 22,527 $ 5,709 $ — $ 383 $ 28,619 September 30, 2020 15,352 6,982 — 193 22,527 September 30, 2019 15,188 821 — (657) 15,352 (1) Amounts relate primarily to adjustments in net operating loss carryforwards which are precluded from use. (2) Consists principally of adjustments related to foreign exchange. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: 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. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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. |
Reclassifications | Reclassifications: Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications are not material to the prior year presentation. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash: The Company considers all investments purchased with a remaining maturity of three months or less to be cash equivalents. Restricted cash represents amounts held for specific purposes, which are not available for general business use. The carrying amount of cash, cash equivalents and restricted cash approximates fair value due to the short-term maturities of these instruments. |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts: Trade receivables are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due. The allowance for doubtful accounts is based on an evaluation of historical collection experience, the aging of accounts receivable, and economic trends and forecasts, and also reflects adjustments for specific customer accounts for which available facts and circumstances indicate collectability may be uncertain. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value with cost generally determined under the average cost method. Inventory costs include material, labor, and applicable manufacturing overhead (including depreciation) and other direct costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are carried at cost. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the assets, which generally range from 10 to 45 years for buildings and 3 to 12 years for machinery and equipment. Gains or losses from the disposition of assets are reflected in operating profit. The cost of maintenance and repairs is charged to expense as incurred. Renewals and betterments of a nature considered to extend the useful lives of the assets are capitalized. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets is determined by evaluating the estimated undiscounted net cash flows of the operations to which the assets relate. An impairment loss would be recognized when the carrying amount of the assets exceeds the fair value, which is based on a discounted cash flow analysis. No such charges were recognized during the years presented. |
Leases | Leases: A lease exists at contract inception if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset, as well as the right to direct the use of that asset. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments, and a corresponding right-of-use ("ROU") asset. As a majority of the Company’s leases do not provide an implicit interest rate within the lease, an incremental borrowing rate is used to determine the ROU asset and lease liability which is based on information available at the commencement date. Options to purchase, extend or terminate a lease are included in the ROU asset and lease liability when it is reasonably certain an option will be exercised. Renewal options are most prevalent in the Company’s real estate leases. In general, the Company has not included renewal options for leases in the ROU asset and lease liability because the likelihood of renewal is not considered to be reasonably certain. In addition, leases may include variable lease payments, for items such as maintenance and utilities, which are expensed as incurred as variable lease expense. The Company applies the practical expedient to not separate lease components from non-lease components for all asset classes. In addition, the Company applies the practical expedient to utilize a portfolio approach for certain equipment asset classes, primarily information technology, as the application of the lease model to the portfolio would not differ materially from the application of the lease model to the individual leases within the portfolio. There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. Leases not meeting the finance lease criteria are classified as operating leases. ROU assets and corresponding lease liabilities are recorded on the Consolidated Balance Sheet. ROU assets for operating leases are classified in other assets, and ROU assets for finance leases are classified in property, plant and equipment, net on the Consolidated Balance Sheet. For operating leases, short-term lease liabilities are classified in other current liabilities, and long-term lease liabilities are classified in other liabilities on the Consolidated Balance Sheet. For finance leases, short-term lease liabilities are classified in long-term debt, current maturities, and long-term lease liabilities are classified in long-term debt on the Consolidated Balance Sheet. Leases with an initial lease term of twelve months or less have not been recognized on the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense, while the expense for finance leases is recognized as depreciation expense and interest expense using the interest method of recognition. On the cash flow statement, payments for operating leases are classified as operating activities. Payments for finance leases are classified as a financing activity, with the exception of the interest component of the payment which is classified as an operating activity. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Intangible assets with finite useful lives are amortized over their estimated useful lives, ranging from 2 to 15 years, and are reviewed when appropriate for possible impairment, similar to property, plant and equipment. Goodwill and intangible assets with indefinite lives are not amortized, but are tested annually for impairment, or when circumstances indicate that a possible impairment may exist. In general, when the carrying value of these assets exceeds the implied fair value, an impairment loss must be recognized. A significant decline in cash flows generated from these assets may result in a write-down of the carrying values of the related assets. For purposes of testing goodwill for impairment, the Company uses a combination of valuation techniques, including discounted cash flows and other market indicators. For purposes of testing indefinite-lived intangible assets, the Company generally uses a relief from royalty method. |
Pension and Other Postretirement Plans | Pension and Other Postretirement Plans:Pension assets and liabilities are determined on an actuarial basis and are affected by the market value of plan assets, estimates of the expected return on plan assets and the discount rate used to determine the present value of benefit obligations. Actual changes in the fair market value of plan assets and differences between the actual return on plan assets, the expected return on plan assets and changes in the selected discount rate will affect the amount of pension cost. Differences between actual and expected results or changes in the value of the obligations and plan assets are initially recognized through other comprehensive income and subsequently amortized to the Consolidated Statement of Income. |
Environmental | Environmental: Costs that mitigate or prevent future environmental issues or extend the life or improve equipment utilized in current operations are capitalized and depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company's obligation is probable and reasonably estimable. Accruals for losses from environmental remediation obligations do not consider the effects of inflation, and anticipated expenditures are not discounted to their present value. |
Derivatives and Hedging | Derivatives and Hedging: Derivatives are held as part of a formal documented hedging program. All derivatives are held for purposes other than trading. Matthews measures effectiveness by formally assessing, at least quarterly, the historical and probable future high correlation of changes in the fair value or future cash flows of the hedged item. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, gains and losses on the derivative will be recorded in other income (deductions) at that time. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) ("OCI"), net of tax, and are reclassified to earnings in a manner consistent with the underlying hedged item. The cash flows from derivative activities are recognized in the statement of cash flows in a manner consistent with the underlying hedged item. |
Foreign Currency | Foreign Currency: The functional currency of the Company's foreign subsidiaries is generally the local currency. Balance sheet accounts for foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet date. Gains or losses that result from this process are recorded in accumulated other comprehensive income (loss). The revenue and expense accounts of foreign subsidiaries are translated into U.S. dollars at the average exchange rates that prevailed during the period. Realized gains and losses from foreign currency transactions are presented in the Statement of Income in a consistent manner with the underlying transaction based upon the provisions of Accounting Standards Codification ("ASC") 830 "Foreign Currency Matters." |
Comprehensive Income (Loss) | Comprehensive Income (Loss): Comprehensive income (loss) consists of net income adjusted for changes, net of any related income tax effect, in cumulative foreign currency translation, the fair value of derivatives, unrealized investment gains and losses and remeasurement of pension and other postretirement liabilities. |
Treasury Stock | Treasury Stock: Treasury stock is carried at cost. The cost of treasury shares sold is determined under the average cost method. |
Revenue Recognition | Revenue Recognition: Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. For substantially all transactions, control passes in accordance with agreed upon delivery terms, including in certain circumstances, customer acceptance. This approach is consistent with the Company’s historical revenue recognition methodology. In limited instances revenue is recognized over time as critical milestones are met and as services are provided. Transaction price, for revenue recognition, is allocated to each performance obligation consisting of the stand alone selling price for goods and services, as well as warranties. Transaction price also reflects estimates of rebates, other sales or contract renewal incentives, cash discounts and sales returns ("Variable Consideration"). Estimates are made for Variable Consideration based on contract terms and historical experience of actual results and are applied to the performance obligations as they are satisfied. Each product or service delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. Certain revenue related to mausoleum construction and significant engineering projects, including purpose-built engineered products (primarily in support of the electric vehicle and energy storage industries), cremation and incineration projects, and marking and industrial automation projects, are recognized over time using the input method measuring progress toward completion of such projects. Amounts recognized using the over time method were approximately 10% of the Company's consolidated revenue for the year ended September 30, 2021, and less than 5% of the Company's consolidated revenue for the years ended September 30, 2020 and 2019. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Refer to Note 4, “Revenue Recognition,” for a further discussion. Shipping and Handling Fees and Costs: All fees billed to the customer for shipping and handling are classified as a component of net revenues. All costs associated with shipping and handling are classified as a component of cost of sales or selling expense. |
Research and Development Expenses | Research and Development Expenses: Research and development costs are expensed as incurred and were approximately $13,206, $13,363 and $15,043 for the years ended September 30, 2021, 2020 and 2019, respectively. |
Stock-Based Compensation | Stock-Based Compensation:Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the employee requisite service period. |
Income Taxes | Income Taxes:Deferred tax assets and liabilities are provided for the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred income taxes have not been provided on undistributed earnings of foreign subsidiaries since they have either been previously taxed, or are exempt from tax, and such earnings are considered to be reinvested indefinitely in foreign operations. |
Earnings Per Share | Earnings Per Share: Basic earnings per share is computed by dividing net income by the average number of common shares outstanding. Diluted earnings per share is computed using the treasury stock method, which assumes the issuance of common stock for all dilutive securities. |
Accounting Pronouncements | Adopted In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) which simplifies the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in Topic 740 and also simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company early adopted this ASU in the quarter ended March 31, 2020. The adoption of this ASU had no significant impact on the Company's consolidated financial statements, but modifies the methodology to assess certain tax principles in Topic 740 prospectively. In August 2018, the FASB issued 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. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements including the consideration of costs and benefits. The adoption of this ASU in the first quarter ended December 31, 2019 had no impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) , which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The adoption of this ASU in the first quarter ended December 31, 2019 had no impact on the Company's consolidated financial statements. 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, Codification 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. The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the year ended September 30, 2021: Accounts Receivable Allowance for Doubtful Accounts Balance at October 1, 2020 $ 9,618 Current period expense 2,182 Deductions (1) (1,146) Balance at September 30, 2021 $ 10,654 (1) Amounts determined not to be collectible (including direct write-offs), net of recoveries. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) , which provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This ASU requires lessees to recognize assets and liabilities that arise from financing and operating leases on the Consolidated Balance Sheet. Subsequently, the FASB issued several ASUs that address implementation issues and correct or improve certain aspects of the new lease guidance, including ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and ASU 2019-01, Leases (Topic 842): Codification Improvements . These ASUs do not change the core principles in the lease guidance outlined above. |
ACCOUNTING PRONOUNCEMENTS (Tabl
ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the year ended September 30, 2021: Accounts Receivable Allowance for Doubtful Accounts Balance at October 1, 2020 $ 9,618 Current period expense 2,182 Deductions (1) (1,146) Balance at September 30, 2021 $ 10,654 (1) Amounts determined not to be collectible (including direct write-offs), net of recoveries. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated sales by segment and region for the years ended September 30, 2021, 2020 and 2019 were as follows: North America Central and South America Europe Australia Asia Consolidated SGK Brand Solutions: 2021 $ 288,054 $ 5,036 $ 372,080 $ 13,336 $ 48,389 $ 726,895 2020 305,527 6,304 326,776 12,097 42,389 693,093 2019 320,553 5,853 362,088 11,767 43,608 743,869 Memorialization: 2021 $ 710,926 $ — $ 47,858 $ 10,232 $ — $ 769,016 2020 611,496 — 35,557 8,982 — 656,035 2019 590,575 — 37,199 9,118 — 636,892 Industrial Technologies: 2021 $ 142,416 $ — $ 26,336 $ — $ 6,367 $ 175,119 2020 120,682 — 25,498 — 2,998 149,178 2019 127,140 — 26,966 — 2,409 156,515 Consolidated: 2021 $ 1,141,396 $ 5,036 $ 446,274 $ 23,568 $ 54,756 $ 1,671,030 2020 1,037,705 6,304 387,831 21,079 45,387 1,498,306 2019 1,038,268 5,853 426,253 20,885 46,017 1,537,276 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | As of September 30, 2021 and 2020, the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 209 $ — $ 209 Equity and fixed income mutual funds — 6,936 — 6,936 Life insurance policies — 4,626 — 4,626 Total assets at fair value $ — $ 11,771 $ — $ 11,771 Liabilities: Derivatives (1) $ — $ 2,232 $ — $ 2,232 Total liabilities at fair value $ — $ 2,232 $ — $ 2,232 (1) Interest rate swaps and cross currency swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Equity and fixed income mutual funds $ — $ 24,610 $ — $ 24,610 Life insurance policies — 4,621 — 4,621 Total assets at fair value $ — $ 29,231 $ — $ 29,231 Liabilities: Derivatives (1) $ — $ 7,792 $ — $ 7,792 Total liabilities at fair value $ — $ 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) | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at September 30, 2021 and 2020 consisted of the following: 2021 2020 Raw materials $ 37,673 $ 36,157 Work in process 75,997 70,128 Finished goods 75,418 68,815 $ 189,088 $ 175,100 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Current Investments | At September 30, 2021 and 2020, non-current investments were as follows: 2021 2020 Equity and fixed income mutual funds $ 6,936 $ 24,610 Life insurance policies 4,626 4,621 Equity-method investments 458 446 Other (primarily cost-method) investments 18,418 33,573 $ 30,438 $ 63,250 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment and Related Accumulated Depreciation | Property, plant and equipment and the related accumulated depreciation at September 30, 2021 and 2020 were as follows: 2021 2020 Buildings $ 109,912 $ 113,231 Machinery, equipment and other 485,691 486,282 595,603 599,513 Less accumulated depreciation (400,281) (391,436) 195,322 208,077 Land 16,619 16,660 Construction in progress 11,766 12,051 $ 223,707 $ 236,788 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt at September 30, 2021 and 2020 consisted of the following: 2021 2020 Revolving credit facilities $ 350,597 $ 416,793 Securitization facility 95,990 67,700 Senior secured term loan — 22,359 2025 Senior Notes 297,796 297,256 Other borrowings 10,150 20,742 Finance lease obligations 9,177 9,684 Total debt 763,710 834,534 Less current maturities (4,624) (26,824) Long-term debt $ 759,086 $ 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: September 30, 2021 September 30, 2020 Pay fixed swaps - notional amount $ 250,000 $ 312,500 Net unrealized loss $ (2,062) $ (7,792) Weighted-average maturity period (years) 2.2 2.6 Weighted-average received rate 0.08 % 0.15 % Weighted-average pay rate 1.34 % 1.34 % |
Interest Rate Swap Contracts Reflected in Consolidated Balance Sheets | At September 30, 2021 and 2020, the interest rate swap contracts were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: 2021 2020 Current assets: Other current assets $ 31 $ — Long-term assets: Other assets 139 — Current liabilities: Other current liabilities (1,922) (3,164) Long-term liabilities: Other liabilities (310) (4,628) Total derivatives $ (2,062) $ (7,792) |
Gains (Losses) Recognized on Derivatives | The (losses) gains recognized on derivatives was as follows: Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives 2021 2020 2019 Interest rate swaps Interest expense $(3,249) $(861) $3,181 The Company recognized the following (losses) gains in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Location of (Loss) Gain Reclassified from AOCI into Income Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion*) 2021 2020 2019 (Effective Portion*) 2021 2020 2019 Interest rate swaps $1,873 $(6,130) $(6,540) Interest expense $(2,453) $(650) $2,402 * There is no ineffective portion or amount excluded from effectiveness testing. |
Aggregate Maturities of Long-Term Debt | Aggregate maturities by fiscal year of long-term debt, including other borrowings, is as follows: 2022 $ 97,757 (a) 2023 1,058 2024 1,055 2025 350,854 2026 298,892 Thereafter 4,917 754,533 Finance lease obligations 9,177 (b) $ 763,710 (a) The Company maintains certain debt facilities with current maturity dates in fiscal 2022 that it intends and has the ability to extend beyond fiscal 2022 totaling $96,807. These balances have been classified as non-current on the Company's Consolidated Balance Sheet. (b) Aggregate maturities of finance lease obligations can be found in Note 10, "Leases." |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | The following table presents the balance sheet and lease classification for the Company's lease portfolio as of September 30, 2021 and 2020, respectively: Balance Sheet Classification Lease Classification 2021 2020 Non-current assets: Property, plant and equipment, net Finance $ 12,337 $ 9,185 Other assets Operating 80,262 72,011 Total lease assets $ 92,599 $ 81,196 Current liabilities: Long-term debt, current maturities Finance $ 3,674 $ 3,515 Other current liabilities Operating 25,151 23,942 Non-current liabilities: Long-term debt Finance 5,503 6,169 Other liabilities Operating 57,272 49,297 Total lease liabilities $ 91,600 $ 82,923 |
Summary of Components of Lease Cost | The following table presents the components of lease cost for the years ended September 30, 2021 and 2020, respectively: 2021 2020 Finance lease cost: Amortization of ROU assets $ 4,016 $ 2,112 Interest on lease liabilities 248 206 Operating lease cost (a) 21,716 23,735 Variable lease cost (a) 6,752 5,298 Sublease income (83) (732) Total lease cost $ 32,649 $ 30,619 (a) Annual lease cost under operating leases were $28,468, $29,033 and $38,015 in fiscal 2021, 2020 and 2019, respectively. Supplemental information regarding the Company's leases follows: For the Year Ended September 30, 2021 2020 Cash paid for finance and operating lease liabilities: Operating cash flows from finance leases $ 255 $ 207 Operating cash flows from operating leases $ 28,246 $ 29,309 Financing cash flows from finance leases $ 4,134 $ 2,064 ROU assets obtained in exchange for new finance lease liabilities $ 3,687 $ 2,613 ROU assets obtained in exchange for new operating lease liabilities $ 16,341 $ 12,442 September 30, 2021 September 30, 2020 Weighted-average remaining lease term - finance leases (years) 3.85 4.39 Weighted-average remaining lease term - operating leases (years) 3.82 3.52 Weighted-discount rate - finance leases 2.70 % 2.89 % Weighted-discount rate - operating leases 2.28 % 2.82 % |
Schedule of Maturities of Lease Obligations | Maturities of lease obligations by fiscal year were as follows as of September 30, 2021: Operating Leases Finance Leases 2022 $ 26,643 $ 3,927 2023 20,953 2,125 2024 15,588 1,222 2025 10,777 565 2026 7,863 456 Thereafter 4,341 1,592 Total future minimum lease payments 86,165 9,887 Less: Interest 3,742 710 Present value of lease liabilities: $ 82,423 $ 9,177 |
Schedule of Maturities of Finance Lease Obligations | Maturities of lease obligations by fiscal year were as follows as of September 30, 2021: Operating Leases Finance Leases 2022 $ 26,643 $ 3,927 2023 20,953 2,125 2024 15,588 1,222 2025 10,777 565 2026 7,863 456 Thereafter 4,341 1,592 Total future minimum lease payments 86,165 9,887 Less: Interest 3,742 710 Present value of lease liabilities: $ 82,423 $ 9,177 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Activity | The transactions for restricted shares and restricted share units for the year ended September 30, 2021 were as follows: Shares Weighted- Non-vested at September 30, 2020 750,322 $ 40.88 Granted 499,050 30.06 Vested (127,540) 51.90 Expired or forfeited (38,467) 55.79 Non-vested at September 30, 2021 1,083,365 $ 34.07 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table indicates the assumptions used in estimating the fair value of certain stock-based awards granted during the year ended September 30, 2021. Restricted Stock Expected volatility 42.9 % 41.9 % Dividend yield 3.2 % 3.1 % Average risk-free interest rate 0.2 % 0.5 % Average expected term (years) 3.0 5.0 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 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: 2021 2020 2019 Net income (loss) attributable to Matthews shareholders $ 2,910 $ (87,155) $ (37,988) Weighted-average shares outstanding (in thousands): Basic shares 31,696 31,190 31,416 Effect of dilutive securities 291 — — Diluted shares 31,987 31,190 31,416 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans | The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2021 and 2020: Pension Other Postretirement 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation, beginning of year $ 318,887 $ 289,957 $ 19,431 $ 20,952 Service cost 7,919 8,679 201 227 Interest cost 6,145 7,735 376 501 Actuarial (gain) loss (8,045) 23,827 (660) (1,402) Curtailment gain (17,324) — — — Special termination benefits 315 — — — Exchange (gain) loss (133) 799 — — Benefit payments (13,838) (12,110) (507) (847) Benefit obligation, end of year (1) 293,926 318,887 18,841 19,431 Change in plan assets: Fair value, beginning of year (2) 168,134 155,313 — — Actual return 37,789 8,705 — — Benefit payments (13,838) (12,110) (507) (847) Employer contributions 16,259 16,226 507 847 Fair value, end of year (2) 208,344 168,134 — — Funded status (2) (85,582) (150,753) (18,841) (19,431) Unrecognized actuarial loss 49,545 110,971 16 676 Unrecognized prior service (credit) cost (309) 343 (1,684) (2,048) Net amount recognized $ (36,346) $ (39,439) $ (20,509) $ (20,803) Amounts recognized in the consolidated balance sheet: Current liability $ (779) $ (905) $ (883) $ (831) Noncurrent benefit liability (84,803) (149,848) (17,958) (18,600) Accumulated other comprehensive loss (income) 49,236 111,314 (1,668) (1,372) Net amount recognized $ (36,346) $ (39,439) $ (20,509) $ (20,803) Amounts recognized in accumulated other comprehensive loss (income): Net actuarial loss $ 49,545 $ 110,971 $ 16 $ 676 Prior service (credit) cost (309) 343 (1,684) (2,048) Net amount recognized $ 49,236 $ 111,314 $ (1,668) $ (1,372) (1) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), asset, salary and other experience, and curtailments impacted benefit obligations. (2) The fair value of plan assets and funded status do not include the value of investments and restricted cash held in trust for the Company's non-qualified SERP. The combined value of these investments and restricted cash totaled $26,103 and $24,610 as of September 30, 2021 and 2020, respectively. Refer to Note 7, "Investments" for further details. |
Net Periodic Pension and Other Postretirement Benefit Cost | Net periodic pension and other postretirement benefit cost for the plans included the following: Pension Other Postretirement 2021 2020 2019 2021 2020 2019 Service cost $ 7,919 $ 8,679 $ 7,998 $ 201 $ 227 $ 244 Interest cost * 6,145 7,735 9,202 376 501 718 Expected return on plan assets * (10,809) (10,214) (10,304) — — — Amortization: Prior service cost (127) (186) (186) (364) (464) (195) Net actuarial loss * 9,769 9,767 4,245 — — (59) Curtailment gain * (220) — — — — — Special termination benefits * 315 — — — — — Prior-service cost write-offs * 261 — — — — — Net benefit cost $ 13,253 $ 15,781 $ 10,955 $ 213 $ 264 $ 708 * Non-service components of pension and postretirement expense are included in other income (deductions), net. |
Contributions During Fiscal Year | Contributions made in fiscal 2021 are as follows: Contributions Pension Other Postretirement Principal defined benefit retirement plan $ 15,000 $ — Supplemental retirement plan 806 — Other retirement plans 453 — Other postretirement plan — 507 |
Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans | The weighted-average assumptions for those plans were: Pension Other Postretirement 2021 2020 2019 2021 2020 2019 Discount rate 2.79 % 2.62 % 3.13 % 2.83 % 2.63 % 3.10 % Return on plan assets 3.10 % 6.75 % 6.75 % — — — Compensation increase 3.50 % 3.50 % 3.50 % — — — |
Weighted Average Asset Allocation and Target Allocation | The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2021 and 2020 and weighted-average target allocation were as follows: Plan Assets at Target Asset Category 2021 2020 Allocation * Equity securities $ 4,075 $ 118,677 — % Fixed income, cash and cash equivalents 189,958 34,184 100 % Other investments 14,311 15,273 — % $ 208,344 $ 168,134 100 % * Target allocation relates to the Company's DB Plan as of September 30, 2021. During fiscal 2021, the investment policy for the Company's DB Plan was updated to establish modified asset allocation targets. The updated investment objective is intended to reduce risk assets in favor of fixed income investments as a result of the planned termination and expected settlement of the DB Plan in fiscal 2022. |
Fair Value Allocation of Plan Assets | The Company's defined benefit pension plans' asset categories at September 30, 2021 and 2020 were as follows: September 30, 2021 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks (1) $ 4,075 $ — $ — $ 4,075 Fixed income securities 10,403 101,133 — 111,536 Cash and cash equivalents 78,422 — — 78,422 Other investments — — 14,311 14,311 Total $ 92,900 $ 101,133 $ 14,311 $ 208,344 (1) Includes $4,075 of of Matthews Class A Common Stock in Level 1. September 30, 2020 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks (1) $ 37,089 $ — $ — $ 37,089 Equity securities - mutual funds 81,588 — — 81,588 Fixed income securities 11,738 20,086 — 31,824 Cash and cash equivalents 2,360 — — 2,360 Other investments — — 15,273 15,273 Total $ 132,775 $ 20,086 $ 15,273 $ 168,134 (1) Includes $14,936 of of Matthews Class A Common Stock in Level 1. |
Changes in Fair Value of Level 3 Plan Assets | Changes in the fair value of Level 3 assets at September 30, 2021 and 2020 are summarized as follows: Asset Category Fair Value, Beginning of Period Acquisitions Dispositions Realized Gains Unrealized Gains (Losses) Fair Value, End of Period Other investments: Fiscal Year Ended: September 30, 2021 $ 15,273 $ 236 $ (2,144) $ 272 $ 674 $ 14,311 September 30, 2020 10,860 10,835 (6,326) 220 (316) 15,273 |
Benefit Payments Expected to be Paid | Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits * Other Postretirement Benefits 2022 $ 12,152 $ 884 2023 35,644 906 2024 12,609 924 2025 12,673 937 2026 13,057 940 2027-2031 67,218 4,546 $ 153,353 $ 9,137 * Pension benefit amounts do not reflect the planned termination and expected settlement of the DB Plan in fiscal 2022 (see above for further details). |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Change in AOCI by Component, Net of Tax | The changes in AOCI by component, net of tax, for the years ended September 30, 2021, 2020, and 2019 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2018 $ (37,876) $ (134,960) $ 8,538 $ (164,298) OCI before reclassification (36,784) (21,254) (6,540) (64,578) Amounts reclassified from AOCI 2,917 (a) — (2,402) (b) 515 Net current-period OCI (33,867) (21,254) (8,942) (64,063) Balance, September 30, 2019 $ (71,743) $ (156,214) $ (404) $ (228,361) OCI before reclassification (18,094) 4,333 (6,130) (19,891) Amounts reclassified from AOCI 6,883 (a) — 650 (b) 7,533 Net current-period OCI (11,211) 4,333 (5,480) (12,358) Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification 39,822 (3,370) 1,873 38,325 Amounts reclassified from AOCI 7,202 (a) — 2,453 (b) 9,655 Net current-period OCI 47,024 (3,370) 4,326 47,980 Balance, September 30, 2021 $ (35,930) $ (155,251) $ (1,558) $ (192,739) Attributable to noncontrolling interest: Balance, September 30, 2018 $ — $ 467 $ — $ 467 OCI before reclassification — (92) — (92) Net current-period OCI — (92) — (92) Balance, September 30, 2019 — 375 — 375 OCI before reclassification — (7) — (7) Net current-period OCI — (7) — (7) Balance, September 30, 2020 — 368 — 368 OCI before reclassification — (127) — (127) Net current-period OCI — (127) — (127) Balance, September 30, 2021 $ — $ 241 $ — $ 241 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 14). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 9). Accumulated other comprehensive loss at September 30, 2021 and 2020 consisted of the following: 2021 2020 Cumulative foreign currency translation $ (155,251) $ (151,881) Fair value of derivatives, net of tax of $504 and $1,908, respectively (1,558) (5,884) Minimum pension liabilities, net of tax of $11,638 and $26,988, respectively (35,930) (82,954) $ (192,739) $ (240,719) |
Reclassifications out of AOCI | Reclassifications out of AOCI for the years ended September 30, 2021, 2020 and 2019 were as follows: Details about AOCI Components September 30, 2021 September 30, 2020 September 30, 2019 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 491 $ 650 $ 381 Actuarial losses (9,769) (9,767) (4,245) Other income (deductions), net Prior service cost write-off (261) — — Other income (deductions), net (9,539) (9,117) (3,864) Income before income tax (b) 2,337 2,234 947 Income taxes $ (7,202) $ (6,883) $ (2,917) Net income Derivatives Interest rate swap contracts $ (3,249) $ (861) $ 3,181 Interest expense (3,249) (861) 3,181 Income before income tax (b) 796 211 (779) Income taxes $ (2,453) $ (650) $ 2,402 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. For additional information, see Note 14. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The income tax provision (benefit) consisted of the following: 2021 2020 2019 Current: Federal $ (3,741) $ (12,354) $ 3,308 State 3,579 (1,030) 2,232 Foreign 2,379 11,306 2,049 2,217 (2,078) 7,589 Deferred: Federal 5,829 4,710 (5,472) State 169 2,880 (2,782) Foreign (1,840) (24,197) 1,471 4,158 (16,607) (6,783) Total $ 6,375 $ (18,685) $ 806 |
Reconciliation of Federal Statutory Tax Rate to Consolidated Effective Tax Rate | The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows: 2021 2020 2019 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Effect of state income taxes, net of federal deduction 37.5 % (1.9) % 2.7 % Foreign statutory taxes compared to federal statutory rate (18.6) % 3.4 % (0.8) % Share-based compensation 24.5 % (1.4) % (3.1) % Termination of SERP 28.6 % — % — % Tax credits (26.6) % 1.8 % 4.9 % Tax basis difference — % — % 9.8 % Sale of SERP-related investments 23.8 % — % — % Goodwill write-down — % (9.4) % (40.2) % Tax rate differential on net operating loss carryback (21.4) % 4.2 % — % Other 0.2 % (0.1) % 3.6 % Effective tax rate 69.0 % 17.6 % (2.1) % |
Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities at September 30, 2021 and 2020 are as follows: 2021 2020 Deferred tax assets: Pension and postretirement benefits $ 11,832 $ 39,705 Accruals and reserves not currently deductible 8,753 12,258 Income tax credit carryforward 5,206 5,308 Operating and capital loss carryforwards 51,438 34,146 Stock options 4,944 4,062 Other 1,320 8,376 Total deferred tax assets 83,493 103,855 Valuation allowances (28,619) (22,527) Net deferred tax assets 54,874 81,328 Deferred tax liabilities: Depreciation (23,224) (27,671) Unrealized gains and losses (886) 389 Goodwill and intangible assets (113,476) (123,259) Other (11,215) (5,941) Total deferred tax liabilities (148,801) (156,482) Net deferred tax liability $ (93,927) $ (75,154) |
Changes in Gross Unrecognized Tax Benefits | Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2021 2020 2019 Balance, beginning of year $ 10,483 $ 15,526 $ 14,827 Increases for tax positions of prior years — 500 — Decreases for tax positions of prior years (288) (2,727) — Increases based on tax positions related to the current year 628 939 1,420 Decreases due to lapse of statute of limitation (8,016) (3,755) (721) Balance, end of year $ 2,807 $ 10,483 $ 15,526 |
Summary of Income Tax Contingencies | As of September 30, 2021, the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2018 and forward United States - State 2017 and forward Canada 2017 and forward Germany 2019 and forward United Kingdom 2020 and forward Australia 2017 and forward Singapore 2017 and forward |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Changes in Working Capital Items as Presented in the Consolidated Statements of Cash Flows | Changes in working capital items as presented in the Consolidated Statements of Cash Flows consisted of the following: 2021 2020 2019 Current assets: Accounts receivable $ (13,423) $ 24,055 $ 8,779 Inventories (12,839) 5,976 830 Other current assets (15,618) (14,803) 10,317 (41,880) 15,228 19,926 Current liabilities: Trade accounts payable 29,621 8,363 3,715 Accrued compensation 10,791 15,512 (8,832) Accrued income taxes 601 (2,384) (5,416) Other current liabilities 13,849 9,648 (21,875) 54,862 31,139 (32,408) Net change $ 12,982 $ 46,367 $ (12,482) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Information about the Company's segments follows: SGK Brand Solutions Memorialization Industrial Technologies Corporate and Non-Operating Consolidated Sales to external customers: 2021 $ 726,895 $ 769,016 $ 175,119 $ — $ 1,671,030 2020 693,093 656,035 149,178 — 1,498,306 2019 743,869 636,892 156,515 — 1,537,276 Intersegment sales: 2021 55 — — — 55 2020 29 4 281 — 314 2019 703 25 48 — 776 Depreciation and amortization: 2021 99,490 23,043 5,602 5,377 133,512 2020 87,597 20,527 5,771 5,163 119,058 2019 59,684 19,731 6,195 5,183 90,793 Adjusted EBITDA: 2021 99,665 165,653 26,659 (64,227) 227,750 2020 90,644 146,285 22,753 (56,602) 203,080 2019 119,493 134,286 24,082 (56,989) 220,872 Total assets: 2021 961,996 807,215 197,715 65,152 2,032,078 2020 1,014,097 779,886 192,948 85,702 2,072,633 2019 1,106,276 830,377 191,533 62,417 2,190,603 Capital expenditures: 2021 19,117 11,969 1,278 1,949 34,313 2020 20,250 11,282 1,598 1,719 34,849 2019 22,310 9,352 2,382 3,644 37,688 A reconciliation of adjusted EBITDA to net income follows: 2021 2020 2019 Total Adjusted EBITDA $ 227,750 $ 203,080 $ 220,872 Acquisition related items (1)** (541) (3,440) (10,084) ERP integration costs (2)** (1,037) (2,296) (7,508) Strategic initiatives and other charges: (3)** Workforce reductions and related costs (10,644) (9,232) (5,061) Other cost-reduction initiatives (17,317) (25,718) (9,176) Legal matter reserve (4) — (10,566) — Non-recurring / incremental COVID-19 costs (5)*** (5,312) (3,908) — Goodwill write-downs (6) — (90,408) (77,572) Net realized gains (losses) on divestitures and asset dispositions: Gain (loss) on sale of ownership interests in subsidiaries (7) — 11,208 (6,469) Realized loss on cost-method investments (8) — — (4,731) Net gains from the sale of buildings and vacant properties (9) — — 7,347 Joint Venture depreciation, amortization, interest expense and other charges (10) — (4,732) (1,514) Stock-based compensation (15,581) (8,096) (7,729) Non-service pension and postretirement expense (11) (5,837) (7,789) (3,802) Depreciation and amortization * (133,512) (119,058) (90,793) Interest expense (28,684) (34,885) (40,962) Net loss attributable to noncontrolling interests (52) (497) (901) Income (loss) before income taxes 9,233 (106,337) (38,083) Income tax (provision) benefit (6,375) 18,685 (806) Net income (loss) $ 2,858 $ (87,652) $ (38,889) (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 primarily associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (4) Represents a reserve established for a legal matter involving a letter of credit for a customer in Saudi Arabia within the Memorialization segment (see Note 9, "Long Term Debt"). (5) 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. (6) Represents goodwill write-downs within the SGK Brand Solutions segment (see Note 21, "Goodwill and Other Intangible Assets"). (7) Represents the gain (loss) on the sale of ownership interests in subsidiaries within the Memorialization segment. (8) Includes gains/losses related to cost-method investments, and related assets, within the SGK Brand Solutions and Memorialization segments. (9) Includes significant building and vacant property transactions resulting in a gain of $8,663 within the Industrial Technologies segment and losses of $915 and $401 within the SGK Brand Solutions and Memorialization segments, respectively. (10) 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. (11) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, and curtailment 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. Curtailment gains and losses are excluded from Adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits. 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 $99,490, $87,597, and $59,684 for the SGK Brand Solutions segment, $23,043, $20,527, and $19,731 for the Memorialization segment, $5,602, $5,771, and $6,195 for the Industrial Technologies segment, and $5,377, $5,163, and $5,183 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021, 2020, and 2019, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $16,349, $14,737, and $8,903 for the SGK Brand Solutions segment and $11,267, $22,985, and $19,853 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021, 2020, and 2019, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $1,923 and $2,696 for the Memorialization segment for the fiscal years ended September 30, 2021, and 2020, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $268 and $3,073 for the Industrial Technologies segment for the fiscal years ended September 30, 2020 and 2019, respectively. *** Non-recurring/incremental COVID-19 costs were $1,563 and $1,453 for the SGK Brand Solutions segment, $3,646 and $1,819 for the Memorialization segment, $14 and $21 for the Industrial Technologies segment, and $89 and $615 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021 and 2020, respectively. Information about the Company's operations by geographic area follows: North America Central and South America Europe Australia Asia Consolidated Sales to external customers: 2021 $ 1,141,396 $ 5,036 $ 446,274 $ 23,568 $ 54,756 $ 1,671,030 2020 1,037,705 6,304 387,831 21,079 45,387 1,498,306 2019 1,038,268 5,853 426,253 20,885 46,017 1,537,276 Long-lived assets: 2021 890,545 14,226 277,655 21,012 55,598 1,259,036 2020 957,393 14,063 286,990 21,746 55,482 1,335,674 2019 1,047,505 15,585 342,802 21,278 57,729 1,484,899 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Attributable to Each Segment | Changes to goodwill during the years ended September 30, 2021 and 2020, follow. SGK Brand Solutions Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2019 $ 395,704 $ 359,737 $ 91,366 $ 846,807 Translation and other adjustments 6,441 1,945 603 8,989 Goodwill write-down (90,408) — — (90,408) Net goodwill at September 30, 2020 311,737 361,682 91,969 765,388 Additions during period — 4,775 — 4,775 Translation and other adjustments 3,113 (97) 608 3,624 Net goodwill at September 30, 2021 $ 314,850 $ 366,360 $ 92,577 $ 773,787 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2021 and 2020, respectively. Carrying Accumulated Net September 30, 2021 Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,867 (104,211) 44,656 Customer relationships 388,699 (210,361) 178,338 Copyrights/patents/other 23,584 (15,576) 8,008 $ 591,690 $ (330,148) $ 261,542 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 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Trade Receivables and Allowance for Doubtful Accounts [Abstract] | |||
Period past due for which a finance charge may be applied | 30 days | ||
Research and Development Expenses [Abstract] | |||
Research and development costs | $ 13,206 | $ 13,363 | $ 15,043 |
Revenue Benchmark | Product Concentration Risk | Transferred over Time | |||
Revenue Recognition [Abstract] | |||
Concentration risk, percentage | 10.00% | 5.00% | 5.00% |
Minimum | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Useful lives of intangibles | 2 years | ||
Maximum | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Useful lives of intangibles | 15 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 10 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 45 years | ||
Machinery, equipment and other | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 3 years | ||
Machinery, equipment and other | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 12 years |
ACCOUNTING PRONOUNCEMENTS - Nar
ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-02 | |||
Operating lease right-of-use-assets | $ 80,262 | $ 72,011 | ||
Operating lease liabilities | $ 82,423 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use-assets | $ 80,000 | |||
Operating lease liabilities | $ 80,000 |
ACCOUNTING PRONOUNCEMENTS - Acc
ACCOUNTING PRONOUNCEMENTS - Accounts Receivable, Allowance for Credit Loss (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit loss, beginning balance | $ 9,618 |
Current period expense | 2,182 |
Deductions | (1,146) |
Allowance for credit loss, ending balance | $ 10,654 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 1,671,030 | $ 1,498,306 | $ 1,537,276 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,141,396 | 1,037,705 | 1,038,268 |
Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,036 | 6,304 | 5,853 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 446,274 | 387,831 | 426,253 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 23,568 | 21,079 | 20,885 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 54,756 | 45,387 | 46,017 |
SGK Brand Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 726,895 | 693,093 | 743,869 |
SGK Brand Solutions | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 288,054 | 305,527 | 320,553 |
SGK Brand Solutions | Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,036 | 6,304 | 5,853 |
SGK Brand Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 372,080 | 326,776 | 362,088 |
SGK Brand Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 13,336 | 12,097 | 11,767 |
SGK Brand Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 48,389 | 42,389 | 43,608 |
Memorialization | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 769,016 | 656,035 | 636,892 |
Memorialization | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 710,926 | 611,496 | 590,575 |
Memorialization | Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Memorialization | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 47,858 | 35,557 | 37,199 |
Memorialization | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 10,232 | 8,982 | 9,118 |
Memorialization | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Industrial Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 175,119 | 149,178 | 156,515 |
Industrial Technologies | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 142,416 | 120,682 | 127,140 |
Industrial Technologies | Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Industrial Technologies | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 26,336 | 25,498 | 26,966 |
Industrial Technologies | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Industrial Technologies | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 6,367 | $ 2,998 | $ 2,409 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Assets: | ||
Equity and fixed income mutual funds | $ 6,936 | |
Life insurance policies | 18,418 | $ 33,573 |
Recurring | ||
Assets: | ||
Derivatives | 209 | |
Equity and fixed income mutual funds | 6,936 | 24,610 |
Life insurance policies | 4,626 | 4,621 |
Total assets at fair value | 11,771 | 29,231 |
Liabilities: | ||
Derivatives | 2,232 | 7,792 |
Total liabilities at fair value | 2,232 | 7,792 |
Recurring | Level 1 | ||
Assets: | ||
Derivatives | 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 | 209 | |
Equity and fixed income mutual funds | 6,936 | 24,610 |
Life insurance policies | 4,626 | 4,621 |
Total assets at fair value | 11,771 | 29,231 |
Liabilities: | ||
Derivatives | 2,232 | 7,792 |
Total liabilities at fair value | 2,232 | 7,792 |
Recurring | Level 3 | ||
Assets: | ||
Derivatives | 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 | Sep. 30, 2021 | Sep. 30, 2020 |
Inventories, net [Abstract] | ||
Raw materials | $ 37,673 | $ 36,157 |
Work in process | 75,997 | 70,128 |
Finished goods | 75,418 | 68,815 |
Inventories | $ 189,088 | $ 175,100 |
INVESTMENTS - Non-Current Inves
INVESTMENTS - Non-Current Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 6,936 | |
Life insurance policies | 4,626 | $ 4,621 |
Equity-method investments | 458 | 446 |
Other (primarily cost-method) investments | 18,418 | 33,573 |
Total non-current investments | $ 30,438 | $ 63,250 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Investments [Line Items] | ||||
Trading securities cost (in excess of) or below market value | $ 138 | |||
Restricted cash | $ 19,167 | 0 | ||
Payments to equity-method investments | 9,482 | |||
Proceeds from sale of ownership interests in subsidiaries | $ 0 | 42,210 | $ 8,254 | |
Receivable with imputed interest, net amount | 15,000 | |||
(Gain) loss on sale of ownership interests in subsidiaries | $ 0 | $ (11,208) | $ 6,469 | |
Memorialization Business | ||||
Schedule of Investments [Line Items] | ||||
Proceeds from redemption of preferred shares | $ 15,000 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, net | $ 223,707 | $ 236,788 |
Buildings, Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 595,603 | 599,513 |
Less accumulated depreciation | (400,281) | (391,436) |
Total property, plant and equipment, net | 195,322 | 208,077 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 109,912 | 113,231 |
Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 485,691 | 486,282 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,619 | 16,660 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 11,766 | $ 12,051 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 49,279 | $ 47,544 | $ 45,037 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 763,710 | $ 834,534 |
Finance lease obligations | 9,177 | 9,684 |
Less current maturities | (4,624) | (26,824) |
Total long-term debt and capital lease obligations, excluding current maturities | 759,086 | 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 | 297,796 | 297,256 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,150 | 20,742 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 350,597 | 416,793 |
Securitization facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 95,990 | $ 67,700 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) £ in Thousands | Nov. 09, 2020GBP (£) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2021EUR (€) | Sep. 30, 2020EUR (€) | Sep. 30, 2014GBP (£) |
Debt Instrument [Line Items] | |||||||
Other borrowings | $ 763,710,000 | $ 834,534,000 | |||||
Currency translation adjustment gain (loss) | (5,370,000) | (4,377,000) | |||||
Currency translation adjustment, tax | (1,743,000) | (1,420,000) | |||||
Contested letter of credit | £ | £ 10,450 | ||||||
Designated as Hedging Instrument | |||||||
Debt Instrument [Line Items] | |||||||
Loss included in AOCI expected to be recognized over the next 12 months | 1,428,000 | ||||||
Interest Rate Swaps | Cash Flow Hedging | Interest Expense | |||||||
Debt Instrument [Line Items] | |||||||
Currency translation adjustment gain (loss) | (2,453,000) | (650,000) | $ 2,402,000 | ||||
Interest Rate Swaps | Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Debt Instrument [Line Items] | |||||||
Net unrealized loss | 2,062,000 | 7,792,000 | |||||
Net unrealized loss after tax | 1,558,000 | 5,884,000 | |||||
Derivative, notional amount | 250,000,000 | 312,500,000 | |||||
Currency Swap | Net Investment Hedging | Designated as Hedging Instrument | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, notional amount | $ 94,464,000 | ||||||
Derivative, term of contract | 7 years | ||||||
Net investment hedge, gain, after reclassification and tax | $ 22,000 | ||||||
Net investment hedge, gain, after reclassification, tax | (7,000) | ||||||
Currency Swap | Net Investment Hedging | Designated as Hedging Instrument | Interest Expense | |||||||
Debt Instrument [Line Items] | |||||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments and Tax | 63,000 | ||||||
Securitization facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 115,000,000 | ||||||
Outstanding borrowings | $ 95,990,000 | $ 67,700,000 | |||||
Interest rate (as a percent) | 0.83% | 0.90% | 0.83% | 0.90% | |||
Securitization facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate (as a percent) | 0.75% | ||||||
Securitization facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (as a percent) | 0.25% | ||||||
Securitization facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (as a percent) | 0.35% | ||||||
Line of Credit | March 2020 Debt Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.03% | 2.41% | 2.03% | 2.41% | |||
2025 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt issued | $ 300,000,000 | ||||||
Fixed interest rate (as a percent) | 5.25% | 5.25% | |||||
Debt issuance costs | $ 2,204,000 | $ 2,744,000 | |||||
Other borrowings | $ 297,796,000 | $ 297,256,000 | |||||
Other borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.19% | 2.10% | 2.19% | 2.10% | |||
Other borrowings | $ 10,150,000 | $ 20,742,000 | |||||
Revolving Credit Facility | March 2020 Debt Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing amount drawn In foreign currency | 350,000,000 | ||||||
Unamortized costs | 2,182,000 | 2,734,000 | |||||
Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Other borrowings | 350,597,000 | 416,793,000 | |||||
Revolving Credit Facility | Line of Credit | March 2020 Debt Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 750,000,000 | ||||||
Outstanding borrowings | $ 349,780,000 | 257,439,000 | |||||
Revolving Credit Facility | Line of Credit | March 2020 Debt Amendment | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on borrowings (as a percent) | 1.00% | 1.00% | |||||
Revolving Credit Facility | Line of Credit | March 2020 Debt Amendment | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Annual commitment fee range on unused portion | 0.15% | ||||||
Revolving Credit Facility | Line of Credit | March 2020 Debt Amendment | Minimum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on borrowings, based on leverage ratio | 0.75% | ||||||
Revolving Credit Facility | Line of Credit | March 2020 Debt Amendment | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Annual commitment fee range on unused portion | 0.30% | ||||||
Revolving Credit Facility | Line of Credit | March 2020 Debt Amendment | Maximum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on borrowings, based on leverage ratio | 2.00% | ||||||
Senior secured term loan | Line of Credit | March 2020 Debt Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | $ 35,000,000 | ||||||
Standby Letters of Credit | Line of Credit | March 2020 Debt Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 35,000,000 | ||||||
Line of Credit | Euro Member Countries, Euro | March 2020 Debt Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | 0 | 137,188,000 | € 117,000,000 | ||||
Foreign Line of Credit | Credit Facility With European Bank | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 28,976,000 | € 25,000,000 | |||||
Outstanding borrowings | $ 817,000 | $ 22,166,000 | € 704,000 | € 18,900,000 | |||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.25% | 1.25% | 2.25% | 1.25% | |||
Foreign Line of Credit | Bank Guarantees | Credit Facility With European Bank | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | $ 9,272,000 | € 8,000,000 | |||||
Term Loan | March 2020 Debt Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding borrowings | 0 | $ 22,359,000 | |||||
Letter of Credit | Other current assets | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | $ 11,535,000 | £ 8,570 |
LONG-TERM DEBT - Interest Rate
LONG-TERM DEBT - Interest Rate Swaps (Details) - Interest Rate Swaps - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Pay fixed swaps - notional amount | $ 250,000 | $ 312,500 |
Net unrealized loss | $ (2,062) | $ (7,792) |
Weighted-average maturity period (years) | 2 years 2 months 12 days | 2 years 7 months 6 days |
Weighted-average received rate (as a percent) | 0.08% | 0.15% |
Weighted-average pay rate (as a percent) | 1.34% | 1.34% |
LONG-TERM DEBT - Derivatives De
LONG-TERM DEBT - Derivatives Designated as Hedging Instruments (Details) - Interest Rate Swaps - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Total derivatives | $ (2,062) | $ (7,792) |
Other current assets | ||
Debt Instrument [Line Items] | ||
Assets derivatives | 31 | 0 |
Other assets | ||
Debt Instrument [Line Items] | ||
Assets derivatives | 139 | 0 |
Other current liabilities | ||
Debt Instrument [Line Items] | ||
Liability derivatives | (1,922) | (3,164) |
Other liabilities | ||
Debt Instrument [Line Items] | ||
Liability derivatives | $ (310) | $ (4,628) |
LONG-TERM DEBT - Loss Recognize
LONG-TERM DEBT - Loss Recognized on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion*) | $ (5,370) | $ (4,377) | |
Cash Flow Hedging | Interest Rate Swaps | |||
Debt Instrument [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 1,873 | (6,130) | $ (6,540) |
Interest Expense | Cash Flow Hedging | Interest Rate Swaps | |||
Debt Instrument [Line Items] | |||
Amount of (Loss) Gain Recognized in Income on Derivatives | (3,249) | (861) | 3,181 |
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion*) | $ (2,453) | $ (650) | $ 2,402 |
LONG-TERM DEBT - Aggregate Matu
LONG-TERM DEBT - Aggregate Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 97,757 | |
2023 | 1,058 | |
2024 | 1,055 | |
2025 | 350,854 | |
2026 | 298,892 | |
Thereafter | 4,917 | |
Aggregate maturities long-term debt | 754,533 | |
Finance lease liabilities | 9,177 | $ 9,684 |
Long-term debt | 763,710 | $ 834,534 |
Debt facilities in 2022 with ability to extend | $ 96,807 |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities, Lessee (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Lease Assets [Abstract] | ||
Finance lease, right-of-use asset | $ 12,337 | $ 9,185 |
Operating lease right-of-use-assets | 80,262 | 72,011 |
Total lease assets | 92,599 | 81,196 |
Lease Liabilities [Abstract] | ||
Finance lease, liability, current | 3,674 | 3,515 |
Current portion of operating lease liabilities | 25,151 | 23,942 |
Finance lease, liability, noncurrent | 5,503 | 6,169 |
Operating lease liabilities | 57,272 | 49,297 |
Total lease liabilities | $ 91,600 | $ 82,923 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term debt, current maturities | Long-term debt, current maturities |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lease, Cost [Abstract] | |||
Amortization of ROU assets | $ 4,016 | $ 2,112 | |
Interest on lease liabilities | 248 | 206 | |
Operating lease cost | 21,716 | 23,735 | |
Variable lease cost | 6,752 | 5,298 | |
Sublease income | (83) | (732) | |
Total lease cost | 32,649 | 30,619 | |
Annual rental expense under operating leases | 28,468 | 29,033 | $ 38,015 |
Cash paid for finance and operating lease liabilities: | |||
Operating cash flows from finance leases | 255 | 207 | |
Operating cash flows from operating leases | 28,246 | 29,309 | |
Financing cash flows from finance leases | 4,134 | 2,064 | |
ROU assets obtained in exchange for new finance lease liabilities | 3,687 | 2,613 | |
ROU assets obtained in exchange for new operating lease liabilities | $ 16,341 | $ 12,442 | |
Weighted Average Remaining Lease Term [Abstract] | |||
Weighted-average remaining lease term - finance leases (years) | 3 years 10 months 6 days | 4 years 4 months 20 days | |
Weighted-average remaining lease term - operating leases (years) | 3 years 9 months 25 days | 3 years 6 months 7 days | |
Weighted Average Discount Rate [Abstract] | |||
Weighted-discount rate - finance leases | 2.70% | 2.89% | |
Weighted-discount rate - operating leases | 2.28% | 2.82% |
LEASES - Maturities of Lease Ob
LEASES - Maturities of Lease Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Operating Leases | ||
2022 | $ 26,643 | |
2023 | 20,953 | |
2024 | 15,588 | |
2025 | 10,777 | |
2026 | 7,863 | |
Thereafter | 4,341 | |
Total future minimum lease payments | 86,165 | |
Less: Interest | 3,742 | |
Present value of lease liabilities: | 82,423 | |
Finance Leases | ||
2022 | 3,927 | |
2023 | 2,125 | |
2024 | 1,222 | |
2025 | 565 | |
2026 | 456 | |
Thereafter | 1,592 | |
Total future minimum lease payments | 9,887 | |
Less: Interest | 710 | |
Present value of lease liabilities: | $ 9,177 | $ 9,684 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - Class A common stock - $ / shares | Sep. 30, 2021 | Jul. 28, 2021 | Sep. 30, 2020 |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Matthews Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Shares authorized for repurchase (in shares) | 2,500,000 | ||
Shares remaining for repurchase (in shares) | 2,658,627 |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 30, 2021 |
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Total stock-based compensation cost | $ 15,581 | $ 8,096 | $ 7,729 | |||
Restricted Stock | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Percent of shares vested on time | 42.00% | |||||
Share-based Payment Arrangement, Option | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Expiration period (in years) | 5 years | |||||
Award vesting period | 3 years | |||||
Equity Incentive Plan 2017 | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Term of plan (in years) | 10 years | |||||
Maximum number of shares available for grants or awards (in shares) | 1,700,000 | 1,700,000 | ||||
Shares issued (in shares) | 37,640 | |||||
Grants in period (in shares) | 75,000 | |||||
Share-based awards outstanding (in shares) | 1,087,445 | 1,087,445 | ||||
Grants in period, exercise price (in dollars per share) | $ 41.70 | |||||
Equity Incentive Plan 2017 | Subsequent Event | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Shares reserved for future issuance under award plan (in shares) | 3,450,000 | |||||
Equity Incentive Plan 2017 | Time-Based Restricted Share Units | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 478,963 | |||||
Director Fee Plan, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 478,963 | |||||
Equity Incentive Plan 2017 | Performance-Based Restricted Share Units | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 585,947 | |||||
Director Fee Plan, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 585,947 | |||||
All Plans | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Total stock-based compensation cost | $ 15,581 | 8,096 | 7,729 | |||
Future income tax benefit from compensation expense recognized | 3,247 | $ 1,665 | $ 1,535 | |||
Unrecognized compensation cost on unvested awards | $ 10,858 | $ 10,858 | ||||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 1 year 9 months 18 days | |||||
All Plans | Restricted Stock | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 499,050 | |||||
Director Fee Plan, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 499,050 | |||||
Unvested shares (in shares) | 1,083,365 | 1,083,365 | 750,322 | |||
All Plans | Restricted Stock | Minimum | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Expiration period (in years) | 3 years | |||||
All Plans | Restricted Stock | Maximum | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Expiration period (in years) | 5 years | |||||
Director Fee Plans | ||||||
Director Fee Plan, aggregate disclosures [Abstract] | ||||||
Shares deferred under the director fee plan (in shares) | 38,657 | 38,657 | ||||
Value of annual stock-based grant | $ 125 | |||||
Director Fee Plans | Restricted Stock | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 271,807 | |||||
Director Fee Plan, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 271,807 | |||||
2019 Director Fee Plan | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Shares reserved for future issuance under award plan (in shares) | 150,000 | 150,000 | ||||
Director Fee Plan, aggregate disclosures [Abstract] | ||||||
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 | Restricted Stock | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 98,578 | |||||
Director Fee Plan, aggregate disclosures [Abstract] | ||||||
Grants in period (in shares) | 98,578 | |||||
Unvested shares (in shares) | 74,639 | 74,639 | ||||
Share-based Payment Arrangement, Tranche One | Restricted Stock | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Vesting percentage | 50.00% | |||||
Share-based Payment Arrangement, Tranche One | Share-based Payment Arrangement, Option | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Vesting percentage | 33.33% | |||||
Share-based Payment Arrangement, Tranche Two | Restricted Stock | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Vesting percentage | 25.00% | |||||
Share-based Payment Arrangement, Tranche Two | Share-based Payment Arrangement, Option | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Vesting percentage | 33.33% | |||||
Share-based Payment Arrangement, Tranche Three | Restricted Stock | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Vesting percentage | 25.00% | |||||
Share-based Payment Arrangement, Tranche Three | Share-based Payment Arrangement, Option | ||||||
Share-based compensation, aggregate disclosures [Abstract] | ||||||
Vesting percentage | 33.33% |
SHARE-BASED PAYMENTS - Restrict
SHARE-BASED PAYMENTS - Restricted Stock Activity (Details) - All Plans - Restricted Stock | 12 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Shares | |
Non-vested at beginning of period (in shares) | shares | 750,322 |
Granted (in shares) | shares | 499,050 |
Vested (in shares) | shares | (127,540) |
Expired or forfeited (in shares) | shares | (38,467) |
Non-vested at end of period (in shares) | shares | 1,083,365 |
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 | 51.90 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 55.79 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 34.07 |
SHARE-BASED PAYMENTS - Assumpti
SHARE-BASED PAYMENTS - Assumptions Used in Estimating Fair Value (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 42.90% |
Dividend yield | 3.20% |
Average risk-free interest rate | 0.20% |
Average expected term (years) | 3 years |
Share-based Payment Arrangement, Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 41.90% |
Dividend yield | 3.10% |
Average risk-free interest rate | 0.50% |
Average expected term (years) | 5 years |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Matthews shareholders | $ 2,910 | $ (87,155) | $ (37,988) |
Weighted-average shares outstanding (in thousands): | |||
Basic shares (in shares) | 31,696 | 31,190 | 31,416 |
Effect of dilutive securities (in shares) | 291 | 0 | 0 |
Diluted shares (in shares) | 31,987 | 31,190 | 31,416 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT PLANS - Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Change in plan assets: | |||
Fair value, beginning of year | $ 168,134 | ||
Fair value, end of year | 208,344 | $ 168,134 | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Assets held-in-trust | 26,103 | 24,610 | |
Pension | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 318,887 | 289,957 | |
Service cost | 7,919 | 8,679 | $ 7,998 |
Interest cost | 6,145 | 7,735 | 9,202 |
Actuarial (gain) loss | (8,045) | 23,827 | |
Curtailment gain | (17,324) | 0 | |
Special termination benefits | 315 | 0 | |
Exchange (gain) loss | (133) | 799 | |
Benefit payments | (13,838) | (12,110) | |
Benefit obligation, end of year | 293,926 | 318,887 | 289,957 |
Change in plan assets: | |||
Fair value, beginning of year | 168,134 | 155,313 | |
Actual return | 37,789 | 8,705 | |
Benefit payments | (13,838) | (12,110) | |
Employer contributions | 16,259 | 16,226 | |
Fair value, end of year | 208,344 | 168,134 | 155,313 |
Funded status | (85,582) | (150,753) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (779) | (905) | |
Noncurrent benefit liability | (84,803) | (149,848) | |
Accumulated other comprehensive loss (income) | 49,236 | 111,314 | |
Net amount recognized | (36,346) | (39,439) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Net actuarial loss | 49,545 | 110,971 | |
Prior service (credit) cost | (309) | 343 | |
Other Postretirement | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 19,431 | 20,952 | |
Service cost | 201 | 227 | 244 |
Interest cost | 376 | 501 | 718 |
Actuarial (gain) loss | (660) | (1,402) | |
Curtailment gain | 0 | 0 | |
Special termination benefits | 0 | 0 | |
Exchange (gain) loss | 0 | 0 | |
Benefit payments | (507) | (847) | |
Benefit obligation, end of year | 18,841 | 19,431 | 20,952 |
Change in plan assets: | |||
Fair value, beginning of year | 0 | 0 | |
Actual return | 0 | 0 | |
Benefit payments | (507) | (847) | |
Employer contributions | 507 | 847 | |
Fair value, end of year | 0 | 0 | $ 0 |
Funded status | (18,841) | (19,431) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (883) | (831) | |
Noncurrent benefit liability | (17,958) | (18,600) | |
Accumulated other comprehensive loss (income) | (1,668) | (1,372) | |
Net amount recognized | (20,509) | (20,803) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Net actuarial loss | 16 | 676 | |
Prior service (credit) cost | $ (1,684) | $ (2,048) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT PLANS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Contribution plan expense | $ 9,186 | $ 8,692 | $ 8,176 | ||
Forecast | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash charge (in excess of) | $ 30,000 | ||||
Subsequent Event | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 20,000 | ||||
Benefit payments | $ 178,230 | ||||
Pension | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | 293,926 | 295,674 | |||
Projected benefit obligation | 293,926 | 318,887 | |||
Employer contributions | 16,259 | 16,226 | |||
Benefit payments | $ 13,838 | $ 12,110 | |||
Return on plan assets | 3.10% | 6.75% | 6.75% | ||
Other Postretirement | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 507 | $ 847 | |||
Benefit payments | $ 507 | $ 847 | |||
Return on plan assets | 0.00% | 0.00% | 0.00% | ||
Per capita cost of health care benefits assumed for next fiscal year (as a percent) | 6.50% | ||||
Ultimate health care cost trend rate (as a percent) | 4.00% |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT PLANS - Net Periodic Pension and Other Postretirement Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 7,919 | $ 8,679 | $ 7,998 |
Interest cost | 6,145 | 7,735 | 9,202 |
Expected return on plan assets | (10,809) | (10,214) | (10,304) |
Prior service cost | (127) | (186) | (186) |
Net actuarial loss | 9,769 | 9,767 | 4,245 |
Curtailment gain | (220) | 0 | 0 |
Special termination benefits | 315 | 0 | 0 |
Prior-service cost write-off | 261 | 0 | 0 |
Net benefit cost | 13,253 | 15,781 | 10,955 |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 201 | 227 | 244 |
Interest cost | 376 | 501 | 718 |
Expected return on plan assets | 0 | 0 | 0 |
Prior service cost | (364) | (464) | (195) |
Net actuarial loss | 0 | 0 | (59) |
Curtailment gain | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 |
Prior-service cost write-off | 0 | 0 | 0 |
Net benefit cost | $ 213 | $ 264 | $ 708 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT PLANS - Contributions During Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Principal Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | $ 15,000 |
Other Postretirement | 0 |
Supplemental retirement plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 806 |
Other Postretirement | 0 |
Other retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 453 |
Other Postretirement | 0 |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 0 |
Other Postretirement | $ 507 |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT PLANS - Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans (Details) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.79% | 2.62% | 3.13% |
Return on plan assets | 3.10% | 6.75% | 6.75% |
Compensation increase | 3.50% | 3.50% | 3.50% |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.83% | 2.63% | 3.10% |
Return on plan assets | 0.00% | 0.00% | 0.00% |
Compensation increase | 0.00% | 0.00% | 0.00% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT PLANS - Weighted Average Asset Allocation and Target Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 208,344 | $ 168,134 | |
Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 208,344 | 168,134 | $ 155,313 |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 100.00% | ||
Equity securities | Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 4,075 | 118,677 | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 0.00% | ||
Fixed income, cash and cash equivalents | Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 189,958 | 34,184 | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 100.00% | ||
Other investments | Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 14,311 | $ 15,273 | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 0.00% |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT PLANS - Fair Value Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 208,344 | $ 168,134 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 92,900 | 132,775 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 101,133 | 20,086 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,311 | 15,273 |
Equity securities - stocks | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,075 | 37,089 |
Equity securities - stocks | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,075 | 37,089 |
Equity securities - stocks | Level 1 | Class A common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,075 | 14,936 |
Equity securities - stocks | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities - stocks | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities - mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 81,588 | |
Equity securities - mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 81,588 | |
Equity securities - mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Equity securities - mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 111,536 | 31,824 |
Fixed income securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,403 | 11,738 |
Fixed income securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 101,133 | 20,086 |
Fixed income securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 78,422 | 2,360 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 78,422 | 2,360 |
Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,311 | 15,273 |
Other investments | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other investments | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other investments | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 14,311 | $ 15,273 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT PLANS - Changes in Fair Value of Level 3 Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | $ 168,134 | |
Fair value, end of year | 208,344 | $ 168,134 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 15,273 | |
Fair value, end of year | 14,311 | 15,273 |
Pension | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 168,134 | 155,313 |
Fair value, end of year | 208,344 | 168,134 |
Pension | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 15,273 | 10,860 |
Acquisitions | 236 | 10,835 |
Dispositions | (2,144) | (6,326) |
Realized Gains | 272 | 220 |
Unrealized Gains (Losses) | 674 | (316) |
Fair value, end of year | $ 14,311 | $ 15,273 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT PLANS - Benefit Payments Expected to be Paid (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 12,152 |
2023 | 35,644 |
2024 | 12,609 |
2025 | 12,673 |
2026 | 13,057 |
2027-2031 | 67,218 |
Total | 153,353 |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 884 |
2023 | 906 |
2024 | 924 |
2025 | 937 |
2026 | 940 |
2027-2031 | 4,546 |
Total | $ 9,137 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Change in AOCI by Component, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 611,433 | $ 719,236 | $ 868,714 |
Net current-period OCI | 47,853 | (12,365) | (64,155) |
Ending Balance | 636,403 | 611,433 | 719,236 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (240,719) | (228,361) | (164,298) |
OCI before reclassification | 38,325 | (19,891) | (64,578) |
Amounts reclassified from AOCI | 9,655 | 7,533 | 515 |
Net current-period OCI | 47,980 | (12,358) | (64,063) |
Ending Balance | (192,739) | (240,719) | (228,361) |
Postretirement Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (82,954) | (71,743) | (37,876) |
OCI before reclassification | 39,822 | (18,094) | (36,784) |
Amounts reclassified from AOCI | 7,202 | 6,883 | 2,917 |
Net current-period OCI | 47,024 | (11,211) | (33,867) |
Ending Balance | (35,930) | (82,954) | (71,743) |
Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (151,881) | (156,214) | (134,960) |
OCI before reclassification | (3,370) | 4,333 | (21,254) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current-period OCI | (3,370) | 4,333 | (21,254) |
Ending Balance | (155,251) | (151,881) | (156,214) |
Derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (5,884) | (404) | 8,538 |
OCI before reclassification | 1,873 | (6,130) | (6,540) |
Amounts reclassified from AOCI | 2,453 | 650 | (2,402) |
Net current-period OCI | 4,326 | (5,480) | (8,942) |
Ending Balance | (1,558) | (5,884) | (404) |
Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 368 | 375 | 467 |
OCI before reclassification | (127) | (7) | (92) |
Net current-period OCI | (127) | (7) | (92) |
Ending Balance | 241 | 368 | 375 |
Postretirement Benefit Plans attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Currency Translation Adjustment attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 368 | 375 | 467 |
OCI before reclassification | (127) | (7) | (92) |
Net current-period OCI | (127) | (7) | (92) |
Ending Balance | 241 | 368 | 375 |
Derivatives attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 |
Ending Balance | $ 0 | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ 636,548 | $ 610,807 |
Fair value of derivatives, tax | 504 | 1,908 |
Pension liability, tax | 11,638 | 26,988 |
Cumulative foreign currency translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (155,251) | (151,881) |
Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (1,558) | (5,884) |
Minimum pension liabilities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (35,930) | (82,954) |
Accumulated Other Comprehensive (Loss) Income (net of tax) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ (192,739) | $ (240,719) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of goods and services sold | $ (1,129,198) | $ (1,000,537) | $ (994,810) |
Other income (deductions), net | (6,762) | (9,221) | (8,918) |
Income (loss) before income taxes | 9,233 | ||
Income tax (provision) benefit | (6,375) | 18,685 | (806) |
Net income (loss) | 2,858 | (87,652) | (38,889) |
Interest expense | (28,684) | (34,885) | (40,962) |
Postretirement Benefit Plans | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income taxes | (9,539) | (9,117) | (3,864) |
Income tax (provision) benefit | 2,337 | 2,234 | 947 |
Net income (loss) | (7,202) | (6,883) | (2,917) |
Prior service (cost) credit | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of goods and services sold | 491 | 650 | 381 |
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (deductions), net | (9,769) | (9,767) | (4,245) |
Prior service cost write-off | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (deductions), net | (261) | 0 | 0 |
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income taxes | (3,249) | (861) | 3,181 |
Income tax (provision) benefit | 796 | 211 | (779) |
Net income (loss) | (2,453) | (650) | 2,402 |
Interest expense | $ (3,249) | $ (861) | $ 3,181 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current: | |||
Federal | $ (3,741) | $ (12,354) | $ 3,308 |
State | 3,579 | (1,030) | 2,232 |
Foreign | 2,379 | 11,306 | 2,049 |
Total provision for income taxes, current | 2,217 | (2,078) | 7,589 |
Deferred: | |||
Federal | 5,829 | 4,710 | (5,472) |
State | 169 | 2,880 | (2,782) |
Foreign | (1,840) | (24,197) | 1,471 |
Deferred | 4,158 | (16,607) | (6,783) |
Total | $ 6,375 | $ (18,685) | $ 806 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Federal Statutory Tax Rate to Consolidated Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Effect of state income taxes, net of federal deduction | 37.50% | (1.90%) | 2.70% |
Foreign statutory taxes compared to federal statutory rate | (18.60%) | 3.40% | (0.80%) |
Share-based compensation | 24.50% | (1.40%) | (3.10%) |
Termination of SERP | 28.60% | 0.00% | 0.00% |
Tax credits | (26.60%) | 1.80% | 4.90% |
Tax basis difference | 0.00% | 0.00% | 9.80% |
Sale of SERP-related investments | 23.80% | 0.00% | 0.00% |
Goodwill write-down | 0.00% | (9.40%) | (40.20%) |
Tax rate differential on net operating loss carryback | (21.40%) | 4.20% | 0.00% |
Other | 0.20% | (0.10%) | 3.60% |
Effective tax rate | 69.00% | 17.60% | (2.10%) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) | $ 6,375 | $ (18,685) | $ 806 |
Foreign subsidiaries income (loss) before income taxes | 6,685 | (68,343) | $ 11,042 |
Undistributed earnings of foreign subsidiaries | 358,342 | ||
Valuation allowances | 28,619 | 22,527 | |
Unrecognized tax benefits | 2,807 | ||
Change in unrecognized tax benefits | 414 | ||
Total penalties and interest accrued | 691 | $ 2,172 | |
Capital Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of tax credit carryforward | 21,037 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of operating loss carryforwards | 218,691 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of operating loss carryforwards | $ 3,045 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 11,832 | $ 39,705 |
Accruals and reserves not currently deductible | 8,753 | 12,258 |
Income tax credit carryforward | 5,206 | 5,308 |
Operating and capital loss carryforwards | 51,438 | 34,146 |
Stock options | 4,944 | 4,062 |
Other | 1,320 | 8,376 |
Total deferred tax assets | 83,493 | 103,855 |
Valuation allowances | (28,619) | (22,527) |
Net deferred tax assets | 54,874 | 81,328 |
Deferred tax liabilities: | ||
Depreciation | (23,224) | (27,671) |
Unrealized gains and losses | (886) | 389 |
Goodwill and intangible assets | (113,476) | (123,259) |
Other | (11,215) | (5,941) |
Total deferred tax liabilities | (148,801) | (156,482) |
Net deferred tax liability | $ (93,927) | $ (75,154) |
INCOME TAXES - Changes in Gross
INCOME TAXES - Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 10,483 | $ 15,526 | $ 14,827 |
Increases for tax positions of prior years | 0 | 500 | 0 |
Decreases for tax positions of prior years | (288) | (2,727) | 0 |
Increases based on tax positions related to the current year | 628 | 939 | 1,420 |
Decreases due to lapse of statute of limitation | (8,016) | (3,755) | (721) |
Balance, end of year | $ 2,807 | $ 10,483 | $ 15,526 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Employment Agreements | |
Long-term Purchase Commitment [Line Items] | |
Aggregate commitment amount for salaries | $ 7,168 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current assets: | |||
Accounts receivable | $ (13,423) | $ 24,055 | $ 8,779 |
Inventories | (12,839) | 5,976 | 830 |
Other current assets | (15,618) | (14,803) | 10,317 |
Total change in current assets | (41,880) | 15,228 | 19,926 |
Current liabilities: | |||
Trade accounts payable | 29,621 | 8,363 | 3,715 |
Accrued compensation | 10,791 | 15,512 | (8,832) |
Accrued income taxes | 601 | (2,384) | (5,416) |
Other current liabilities | 13,849 | 9,648 | (21,875) |
Total change in current liabilities | 54,862 | 31,139 | (32,408) |
Net change | $ 12,982 | $ 46,367 | $ (12,482) |
SEGMENT INFORMATION - Informati
SEGMENT INFORMATION - Information about the Company's Segments (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of reporting segments | segment | 3 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 1,671,030 | $ 1,498,306 | $ 1,537,276 |
Depreciation and amortization | 133,512 | 119,058 | 90,793 |
Adjusted EBITDA | 227,750 | 203,080 | 220,872 |
Total assets | 2,032,078 | 2,072,633 | 2,190,603 |
Capital expenditures | 34,313 | 34,849 | 37,688 |
SGK Brand Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 726,895 | 693,093 | 743,869 |
Memorialization | |||
Segment Reporting Information [Line Items] | |||
Sales | 769,016 | 656,035 | 636,892 |
Operating Segments | SGK Brand Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 726,895 | 693,093 | 743,869 |
Depreciation and amortization | 99,490 | 87,597 | 59,684 |
Adjusted EBITDA | 99,665 | 90,644 | 119,493 |
Total assets | 961,996 | 1,014,097 | 1,106,276 |
Capital expenditures | 19,117 | 20,250 | 22,310 |
Operating Segments | Memorialization | |||
Segment Reporting Information [Line Items] | |||
Sales | 769,016 | 656,035 | 636,892 |
Depreciation and amortization | 23,043 | 20,527 | 19,731 |
Adjusted EBITDA | 165,653 | 146,285 | 134,286 |
Total assets | 807,215 | 779,886 | 830,377 |
Capital expenditures | 11,969 | 11,282 | 9,352 |
Operating Segments | Industrial Technologies | |||
Segment Reporting Information [Line Items] | |||
Sales | 175,119 | 149,178 | 156,515 |
Depreciation and amortization | 5,602 | 5,771 | 6,195 |
Adjusted EBITDA | 26,659 | 22,753 | 24,082 |
Total assets | 197,715 | 192,948 | 191,533 |
Capital expenditures | 1,278 | 1,598 | 2,382 |
Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 55 | 314 | 776 |
Intersegment Sales | SGK Brand Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 55 | 29 | 703 |
Intersegment Sales | Memorialization | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 4 | 25 |
Intersegment Sales | Industrial Technologies | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 281 | 48 |
Corporate and Non-Operating | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | 0 |
Depreciation and amortization | 5,377 | 5,163 | 5,183 |
Adjusted EBITDA | (64,227) | (56,602) | (56,989) |
Total assets | 65,152 | 85,702 | 62,417 |
Capital expenditures | $ 1,949 | $ 1,719 | $ 3,644 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | $ 227,750 | $ 203,080 | $ 220,872 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Acquisition related items | (541) | (3,440) | (10,084) | ||
ERP integration costs | (1,037) | (2,296) | (7,508) | ||
Workforce reductions and related costs | (10,644) | (9,232) | (5,061) | ||
Other cost-reduction initiatives | (17,317) | (25,718) | (9,176) | ||
Legal matter reserve | 0 | (10,566) | 0 | ||
Non-recurring / incremental COVID-19 costs | (5,312) | (3,908) | 0 | ||
Goodwill write-downs | $ (90,408) | $ (77,600) | 0 | (90,408) | (77,572) |
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Gain (loss) on sale of ownership interests in a subsidiaries | 0 | 11,208 | (6,469) | ||
Realized loss on cost-method investments | 0 | 0 | (4,731) | ||
Net gains from the sale of buildings and vacant properties | 0 | 0 | 7,347 | ||
Joint Venture depreciation, amortization, interest expense and other charges | 0 | (4,732) | (1,514) | ||
Stock-based compensation | (15,581) | (8,096) | (7,729) | ||
Non-service pension and postretirement expense | (5,837) | (7,789) | (3,802) | ||
Depreciation and amortization | (133,512) | (119,058) | (90,793) | ||
Interest expense | (28,684) | (34,885) | (40,962) | ||
Net loss attributable to noncontrolling interests | (52) | (497) | (901) | ||
Income (loss) before income taxes | 9,233 | (106,337) | (38,083) | ||
Income tax (provision) benefit | (6,375) | 18,685 | (806) | ||
Net income (loss) | 2,858 | (87,652) | (38,889) | ||
SGK Brand Solutions | |||||
Non-Operating Income and Expenses [Abstract] | |||||
Goodwill write-downs | (90,408) | ||||
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 16,349 | 14,737 | 8,903 | ||
Memorialization | |||||
Non-Operating Income and Expenses [Abstract] | |||||
Goodwill write-downs | 0 | ||||
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 1,923 | 2,696 | |||
Industrial Technologies | |||||
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 268 | 3,073 | |||
Operating Segments | SGK Brand Solutions | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | 99,665 | 90,644 | 119,493 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (1,563) | (1,453) | |||
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Depreciation and amortization | (99,490) | (87,597) | (59,684) | ||
Net gains (losses) from the sale of buildings and vacant properties | (915) | ||||
Operating Segments | Memorialization | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | 165,653 | 146,285 | 134,286 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (3,646) | (1,819) | |||
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Depreciation and amortization | (23,043) | (20,527) | (19,731) | ||
Net gains (losses) from the sale of buildings and vacant properties | (401) | ||||
Operating Segments | Industrial Technologies | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | 26,659 | 22,753 | 24,082 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (14) | (21) | |||
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Depreciation and amortization | (5,602) | (5,771) | (6,195) | ||
Net gains (losses) from the sale of buildings and vacant properties | 8,663 | ||||
Corporate, Non-Segment | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | (64,227) | (56,602) | (56,989) | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (89) | (615) | |||
Net realized gains (losses) on divestitures and asset dispositions: | |||||
Depreciation and amortization | (5,377) | (5,163) | (5,183) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | $ 11,267 | $ 22,985 | $ 19,853 |
SEGMENT INFORMATION - Informa_2
SEGMENT INFORMATION - Information about the Company's Operations by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 1,671,030 | $ 1,498,306 | $ 1,537,276 |
Long-lived assets | 1,259,036 | 1,335,674 | 1,484,899 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,141,396 | 1,037,705 | 1,038,268 |
Long-lived assets | 890,545 | 957,393 | 1,047,505 |
Central and South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 5,036 | 6,304 | 5,853 |
Long-lived assets | 14,226 | 14,063 | 15,585 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 446,274 | 387,831 | 426,253 |
Long-lived assets | 277,655 | 286,990 | 342,802 |
Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 23,568 | 21,079 | 20,885 |
Long-lived assets | 21,012 | 21,746 | 21,278 |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 54,756 | 45,387 | 46,017 |
Long-lived assets | $ 55,598 | $ 55,482 | $ 57,729 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Apr. 30, 2021 | Jan. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition [Line Items] | |||||||
Cash payment to acquire business | $ 15,623 | $ 1,000 | $ 11,504 | ||||
Percentage of voting rights sold | 51.00% | ||||||
Proceeds from sale of ownership interests in subsidiaries | $ 0 | 42,210 | $ 8,254 | ||||
(Gain) loss on sale of ownership interest in subsidiary | $ 0 | 11,208 | (6,469) | ||||
Net income (loss) attributable to noncontrolling interest | $ (52) | (497) | (901) | ||||
SGK Brand Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment to acquire business | $ 2,523 | ||||||
Memorialization Business | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment to acquire business | $ 13,100 | $ 1,000 | 3,094 | ||||
Frost Converting Systems | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment to acquire business | $ 7,162 | ||||||
Percentage of voting interests acquired | 80.00% | ||||||
Memorialization Business | |||||||
Business Acquisition [Line Items] | |||||||
(Gain) loss on sale of ownership interest in subsidiary | (5,587) | ||||||
Net income (loss) attributable to noncontrolling interest | $ (882) |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Roll Forward] | |||||
Goodwill beginning of period | $ 765,388 | $ 846,807 | |||
Translation and other adjustments | 3,624 | 8,989 | |||
Goodwill write-down | $ (90,408) | $ (77,600) | 0 | (90,408) | $ (77,572) |
Additions during period | 4,775 | ||||
Goodwill end of period | 846,807 | 773,787 | 765,388 | 846,807 | |
SGK Brand Solutions | |||||
Goodwill [Roll Forward] | |||||
Goodwill beginning of period | 311,737 | 395,704 | |||
Translation and other adjustments | 3,113 | 6,441 | |||
Goodwill write-down | (90,408) | ||||
Additions during period | 0 | ||||
Goodwill end of period | 395,704 | 314,850 | 311,737 | 395,704 | |
Memorialization | |||||
Goodwill [Roll Forward] | |||||
Goodwill beginning of period | 361,682 | 359,737 | |||
Translation and other adjustments | (97) | 1,945 | |||
Goodwill write-down | 0 | ||||
Additions during period | 4,775 | ||||
Goodwill end of period | 359,737 | 366,360 | 361,682 | 359,737 | |
Industrial Technologies | |||||
Goodwill [Roll Forward] | |||||
Goodwill beginning of period | 91,969 | 91,366 | |||
Translation and other adjustments | 608 | 603 | |||
Goodwill write-down | 0 | ||||
Additions during period | 0 | ||||
Goodwill end of period | $ 91,366 | $ 92,577 | $ 91,969 | $ 91,366 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)reporting_unit | Sep. 30, 2019USD ($) | |
Goodwill [Line Items] | |||||
Accumulated goodwill impairment loss | $ 178,732 | $ 178,732 | |||
Number of reporting units | reporting_unit | 2 | ||||
Goodwill write-down | $ 90,408 | $ 77,600 | 0 | $ 90,408 | $ 77,572 |
Amortization expense on intangible assets | 84,233 | 71,514 | $ 45,756 | ||
Future amortization expense [Abstract] | |||||
Future amortization expense 2022 | 57,569 | ||||
Future amortization expense 2023 | 41,064 | ||||
Future amortization expense 2024 | 35,505 | ||||
Future amortization expense 2025 | 19,711 | ||||
Future amortization expense 2026 | $ 14,686 | ||||
Graphics Imaging | |||||
Goodwill [Line Items] | |||||
Percent of fair value exceeding carrying value | 5.00% | ||||
SGK Brand Solutions | |||||
Goodwill [Line Items] | |||||
Accumulated goodwill impairment loss | $ 173,732 | 173,732 | |||
Goodwill write-down | 90,408 | ||||
Memorialization | |||||
Goodwill [Line Items] | |||||
Accumulated goodwill impairment loss | $ 5,000 | 5,000 | |||
Goodwill write-down | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 591,690 | $ 579,357 |
Accumulated Amortization | (330,148) | (245,859) |
Net | 261,542 | 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 | 148,867 | 148,867 |
Accumulated Amortization | (104,211) | (64,462) |
Net | 44,656 | 84,405 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 388,699 | 379,246 |
Accumulated Amortization | (210,361) | (166,892) |
Net | 178,338 | 212,354 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 23,584 | 20,704 |
Accumulated Amortization | (15,576) | (14,505) |
Net | $ 8,008 | $ 6,199 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Nov. 30, 2021 | Dec. 31, 2021 | |
Forecast | ||
Subsequent Event [Line Items] | ||
Non-cash charge (in excess of) | $ 30,000 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Employer contributions | $ 20,000 | |
Benefit payments | $ 178,230 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Allowance for Doubtful Accounts | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | $ 9,618 | $ 10,846 | $ 11,158 |
Additions charged to expense | 1,736 | 2,787 | |
Additions charged to other Accounts | 0 | 15 | 20 |
Deductions | (2,979) | (3,119) | |
Balance at End of Period | 9,618 | 10,846 | |
Deferred Tax Asset Valuation Allowance | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | 22,527 | 15,352 | 15,188 |
Additions charged to expense | 5,709 | 6,982 | 821 |
Additions charged to other Accounts | 0 | 0 | 0 |
Deductions | 383 | 193 | (657) |
Balance at End of Period | $ 28,619 | $ 22,527 | $ 15,352 |