Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 31, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,100 | ||
Entity Common Stock, Shares Outstanding | 30,384,251 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Specified portions of the Proxy Statement for the 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report. | ||
Entity Central Index Key | 0000063296 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Pittsburgh, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 42,101 | $ 69,016 |
Accounts receivable, net of allowance for doubtful accounts of $10,784 and $10,138, respectively | 207,526 | 221,015 |
Inventories | 260,409 | 225,440 |
Restricted cash, current | 0 | 2,398 |
Contract assets | 74,646 | 48,210 |
Other current assets | 63,575 | 62,537 |
Total current assets | 648,257 | 628,616 |
Investments | 24,988 | 25,976 |
Property, plant and equipment, net | 270,326 | 256,065 |
Operating lease right-of-use-assets | 71,629 | 71,974 |
Deferred income taxes | 2,269 | 3,610 |
Goodwill | 698,109 | 675,421 |
Other intangible assets, net | 160,478 | 202,154 |
Other assets | 11,325 | 18,955 |
Total assets | 1,887,381 | 1,882,771 |
Current liabilities: | ||
Long-term debt, current maturities | 3,696 | 3,277 |
Current portion of operating lease liabilities | 23,983 | 22,869 |
Trade accounts payable | 114,316 | 121,359 |
Accrued compensation | 58,872 | 58,272 |
Accrued income taxes | 12,561 | 9,277 |
Contract liabilities | 36,935 | 31,871 |
Other current liabilities | 144,237 | 164,450 |
Total current liabilities | 394,600 | 411,375 |
Long-term debt | 786,484 | 795,291 |
Operating lease liabilities | 50,189 | 51,445 |
Deferred income taxes | 71,255 | 92,589 |
Other liabilities | 59,572 | 44,995 |
Total liabilities | 1,362,100 | 1,395,695 |
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 | 168,211 | 160,255 |
Retained earnings | 714,727 | 706,749 |
Accumulated other comprehensive loss | (174,404) | (190,191) |
Treasury stock, 5,864,778 and 6,035,940 shares, respectively, at cost | (219,200) | (225,795) |
Total shareholders' equity-Matthews | 525,668 | 487,352 |
Noncontrolling interests | (387) | (276) |
Total shareholders' equity | 525,281 | 487,076 |
Total liabilities and shareholders' equity | $ 1,887,381 | $ 1,882,771 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Allowance for doubtful accounts | $ 10,784 | $ 10,138 |
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 (in shares) | 5,864,778 | 6,035,940 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 1,880,896 | $ 1,762,403 | $ 1,671,030 |
Cost of sales | (1,303,224) | (1,240,125) | (1,129,198) |
Gross profit | 577,672 | 522,278 | 541,832 |
Selling expense | (140,119) | (128,362) | (130,199) |
Administrative expense | (307,368) | (298,315) | (285,366) |
Intangible amortization | (42,068) | (57,084) | (84,233) |
Goodwill write-downs | 0 | (82,454) | 0 |
Operating profit (loss) | 88,117 | (43,937) | 42,034 |
Interest expense | (44,648) | (27,725) | (28,684) |
Other income (deductions), net | (2,559) | (32,557) | (4,117) |
Income (loss) before income taxes | 40,910 | (104,219) | 9,233 |
Income tax (provision) benefit | (1,774) | 4,391 | (6,375) |
Net income (loss) | 39,136 | (99,828) | 2,858 |
Net loss attributable to noncontrolling interests | 155 | 54 | 52 |
Net income (loss) attributable to Matthews shareholders | $ 39,291 | $ (99,774) | $ 2,910 |
Earnings (loss) per share attributable to Matthews shareholders: | |||
Basic (in dollars per share) | $ 1.28 | $ (3.18) | $ 0.09 |
Diluted (in dollars per share) | $ 1.26 | $ (3.18) | $ 0.09 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income (loss) attributable to Matthews shareholders | $ 39,291 | $ (99,774) | $ 2,910 |
Net income (loss) attributable to noncontrolling interest | (155) | (54) | (52) |
Net income (loss) | 39,136 | (99,828) | 2,858 |
Unrecognized gain on cash flow hedges: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 15,787 | 2,548 | 47,980 |
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 11 | 14 | (127) |
Net current-period OCI | 15,798 | 2,562 | 47,853 |
Comprehensive income (loss) attributable to Matthews shareholders | 55,078 | (97,226) | 50,890 |
Comprehensive income (loss) attributable to noncontrolling interest | (144) | (40) | (179) |
Comprehensive income (loss) | 54,934 | (97,266) | 50,711 |
Foreign Currency Translation Adjustment | |||
Unrecognized gain on cash flow hedges: | |||
Net current-period OCI | 13,125 | (48,045) | (3,497) |
Foreign Currency Translation Adjustment, Matthews | |||
Unrecognized gain on cash flow hedges: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 13,114 | (48,059) | (3,370) |
Net change from periodic revaluation | 13,979 | (46,817) | (3,322) |
Net amount reclassified to earnings | (865) | (1,242) | (48) |
Net current-period OCI | 13,114 | (48,059) | (3,370) |
Foreign Currency Translation Adjustment, Noncontrolling Interest | |||
Unrecognized gain on cash flow hedges: | |||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 11 | 14 | (127) |
Net change from periodic revaluation | 11 | 14 | (127) |
Net current-period OCI | 11 | 14 | (127) |
Pension Plans and Other Postretirement Benefits | |||
Unrecognized gain on cash flow hedges: | |||
Net current-period OCI | 1,578 | 41,112 | 47,024 |
Pension Plans and Other Postretirement Benefits, Matthews | |||
Unrecognized gain on cash flow hedges: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 1,578 | 41,112 | 47,024 |
Pension Plans and Other Postretirement Benefits, Noncontrolling Interest | |||
Unrecognized gain on cash flow hedges: | |||
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 cash flow hedges: | |||
Net change from periodic revaluation | 3,056 | 8,148 | 1,873 |
Net amount reclassified to earnings | (1,961) | 1,347 | 2,453 |
Net Investment Gain (Loss), Matthews | |||
Unrecognized gain on cash flow hedges: | |||
Net change from periodic revaluation | 3,056 | 8,148 | 1,873 |
Net amount reclassified to earnings | (1,961) | 1,347 | 2,453 |
Net Investment Gain (Loss), Noncontrolling Interest | |||
Unrecognized gain on cash flow hedges: | |||
Net change from periodic revaluation | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 |
Gain (Loss), Net, Derivatives | |||
Unrecognized gain on cash flow hedges: | |||
Net current-period OCI | 1,095 | 9,495 | 4,326 |
Gain (Loss), Net, Derivatives, Matthews | |||
Unrecognized gain on cash flow hedges: | |||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 1,095 | 9,495 | 4,326 |
Net change from periodic revaluation | 3,056 | 8,148 | 1,873 |
Net amount reclassified to earnings | (1,961) | 1,347 | 2,453 |
Net current-period OCI | 1,095 | 9,495 | 4,326 |
Gain (Loss), Net, Derivatives, Noncontrolling Interest | |||
Unrecognized gain on cash flow hedges: | |||
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 | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income (net of tax) | Treasury Stock | Noncontrolling Interest |
Beginning Balance at Sep. 30, 2020 | $ 611,433 | $ 36,334 | $ 135,187 | $ 859,002 | $ (240,719) | $ (178,997) | $ 626 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net 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 cash flow hedges | 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) | |||||
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] | |||||||
Net income (loss) | (99,828) | (99,774) | (54) | ||||
Pension plans and other postretirement benefits | 41,112 | 41,112 | |||||
Translation adjustment | (48,045) | (48,059) | 14 | ||||
Fair value of cash flow hedges | 9,495 | 9,495 | |||||
Comprehensive income (loss) | (97,266) | ||||||
Stock-based compensation | 17,432 | 17,432 | |||||
Purchase of treasury stock | (41,717) | (41,717) | |||||
Issuance of treasury stock | 0 | (8,767) | 8,767 | ||||
Cancellations of treasury stock | 0 | 2,106 | (2,106) | ||||
Dividends | (27,685) | (27,685) | |||||
Divestiture | (91) | (91) | |||||
Ending Balance at Sep. 30, 2022 | 487,076 | 36,334 | 160,255 | 706,749 | (190,191) | (225,795) | (276) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 39,136 | 39,291 | (155) | ||||
Pension plans and other postretirement benefits | 1,578 | 1,578 | |||||
Translation adjustment | 13,125 | 13,114 | 11 | ||||
Fair value of cash flow hedges | 1,095 | 1,095 | |||||
Comprehensive income (loss) | 54,934 | ||||||
Stock-based compensation | 17,308 | 17,308 | |||||
Purchase of treasury stock | (2,857) | (2,857) | |||||
Issuance of treasury stock | 100 | (11,310) | 11,410 | ||||
Cancellations of treasury stock | 0 | 1,958 | (1,958) | ||||
Dividends | (31,313) | (31,313) | |||||
Transactions with noncontrolling interests | 33 | 33 | |||||
Ending Balance at Sep. 30, 2023 | $ 525,281 | $ 36,334 | $ 168,211 | $ 714,727 | $ (174,404) | $ (219,200) | $ (387) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Purchase of treasury stock (in shares) | 99,829 | 1,363,785 | 380,109 |
Issuance of treasury stock (in shares) | 305,318 | 223,033 | 53,377 |
Cancellation of treasury stock (in shares) | 34,327 | 31,309 | 34,727 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 39,136 | $ (99,828) | $ 2,858 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 96,530 | 104,056 | 133,512 |
Stock-based compensation expense | 17,308 | 17,432 | 15,581 |
Deferred tax (benefit) provision | (21,626) | (32,962) | 4,158 |
Gain on divestitures and sale of assets, net | (2,980) | (3,390) | (412) |
Asset write-downs | 0 | 10,050 | 0 |
Goodwill write-downs | 0 | 82,454 | 0 |
Defined benefit plan settlement losses | 1,271 | 30,856 | 0 |
Defined benefit plan settlement payments | (24,242) | (35,706) | 0 |
Proceeds from the settlement of cash flow hedges | 10,474 | 0 | 0 |
Changes in working capital items | (35,503) | 29,590 | 12,982 |
Decrease in other assets | 9,339 | 20,093 | 15,115 |
Decrease in other liabilities | (8,863) | (9,699) | (16,346) |
Other operating activities, net | (1,320) | 13,914 | (4,637) |
Net cash provided by operating activities | 79,524 | 126,860 | 162,811 |
Cash flows from investing activities: | |||
Capital expenditures | (50,598) | (61,321) | (34,313) |
Acquisitions, net of cash acquired | (15,341) | (44,469) | (15,623) |
Purchases of investments | (1,606) | (2,198) | 0 |
Proceeds from sale of assets | 2,120 | 4,955 | 2,776 |
Proceeds from divestitures | 6,700 | 344 | 0 |
Proceeds from sale of investments | 0 | 8,771 | 34,167 |
Proceeds from the settlement of net investment hedges | 0 | 13,066 | 0 |
Net cash used in investing activities | (58,725) | (80,852) | (12,993) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 865,747 | 777,809 | 625,628 |
Payments on long-term debt | (883,971) | (742,121) | (702,395) |
Purchases of treasury stock | (2,857) | (41,717) | (11,858) |
Dividends | (28,202) | (27,685) | (27,704) |
Acquisition holdback and contingent consideration payments | 0 | (725) | (1,781) |
Transactions with noncontrolling interests | 0 | 0 | (1,760) |
Other financing activities | (912) | (2,774) | (2,982) |
Net cash used in financing activities | (50,195) | (37,213) | (122,852) |
Effect of exchange rate changes on cash | 83 | (5,724) | 43 |
Net change in cash, cash equivalents and restricted cash | (29,313) | 3,071 | 27,009 |
Cash, cash equivalents and restricted cash at beginning of year | 71,414 | 68,343 | 41,334 |
Cash, cash equivalents and restricted cash at end of year | 42,101 | 71,414 | 68,343 |
Cash paid during the year for: | |||
Interest | 43,525 | 27,411 | 28,824 |
Income taxes | $ 18,014 | $ 13,647 | $ 9,166 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Sep. 30, 2023 | |
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 memorialization products, industrial technologies and brand solutions. The Company manages its businesses under three segments: Memorialization, Industrial Technologies and SGK Brand Solutions. Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries. Industrial Technologies includes the design, manufacturing, service and distribution of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. SGK Brand Solutions consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. 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, 2023 | |
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 and any variable interest entities for which the Company is the primary beneficiary. 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. 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, except as disclosed in Note 23, “Asset Write-Downs." 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 liabilities are determined on an actuarial basis and are affected by the discount rate used to determine the present value of benefit obligations which will affect the amount of pension cost. Differences between actual and expected results or changes in the value of the obligations 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 generally 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 hedging 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." The Company applies highly inflationary accounting for subsidiaries when the cumulative inflation rate for a three-year period meets or exceeds 100 percent. Under highly inflationary accounting, the financial statements of these subsidiaries are remeasured into the Company's reporting currency (U.S. dollar) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than accumulated other comprehensive loss on the Consolidated Balance Sheets , until such time as the applicable economy is no longer considered highly inflationary. Effective April 1, 2022, the Company applies highly inflationary accounting to its Turkish subsidiaries. As of September 30, 2023 and 2022, the Company had net monetary assets related to its Turkish subsidiaries of $4,271 and $5,022, respectively. Exchange losses related to highly inflationary accounting totaled $1,360 and $1,473 in fiscal 2023 and 2022, respectively, and were included in the Consolidated Statements of Income within other income (deductions), net. 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 cash flow hedges, 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. 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. The Company elected to apply the practical expedient under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers which exempts the adjustment of the consideration for the existence of a significant financing component when the period between the transfer of the services and the payment for such services is one year or less. 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 solutions industries), cremation and incineration projects, and product identification and warehouse automation projects, are recognized over time using the input method measuring progress toward completion of such projects. Contract assets include unbilled amounts resulting from sales under contracts where revenue is recognized over time and revenue exceeds the amount that can be billed to the customer based on the terms of the contract. Contract liabilities include customer deposits that are made prior to the satisfaction of performance obligations for a contract. 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 $15,560, $15,536 and $13,206 for the years ended September 30, 2023, 2022 and 2021, 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, or 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, 2023 | |
Accounting Policies [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS: Issued In October 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805) which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract asset/liability, and payment terms and their effect on subsequent revenue recognized by the acquirer. This ASU is effective for the Company beginning in interim periods starting in fiscal 2024. While the impact of this ASU is dependent on the nature of any future transactions, the Company currently does not expect this ASU to have a significant impact on its consolidated financial statements. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50) which enhances the transparency of supplier finance programs by addressing disclosure requirements. Specifically, the amendment requires disclosure of key program terms, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. The ASU will be effective beginning in the first quarter of fiscal 2024, except for the rollforward requirement, which is effective in fiscal year 2025. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Adopted In July 2023, the FASB issued ASU No. 2023-03, Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock (SEC Update) which enhances the transparency of stock based compensation and material nonpublic information at the time of a grant. The adoption of this ASU in the fourth quarter of fiscal 2023 had no material impact on the Company's consolidated financial statements. 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 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 years ended September 30, 2023, 2022 and 2021. Description Balance at Beginning of Period Charged to Expense Charged to other Accounts Deductions (1) Balance at Allowance for Doubtful Accounts: Fiscal Year Ended: September 30, 2023 $ 10,138 $ 1,625 $ — $ (979) $ 10,784 September 30, 2022 10,654 1,368 — (1,884) 10,138 September 30, 2021 9,618 2,182 — (1,146) 10,654 (1) Amounts determined not to be collectible (including direct write-offs), net of recoveries. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION: 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, 2023, 2022 and 2021 were as follows: North America Central and South America Europe Australia Asia Consolidated Memorialization: 2023 $ 799,153 $ — $ 32,745 $ 11,099 $ — $ 842,997 2022 788,791 — 41,184 10,149 — 840,124 2021 710,926 — 47,858 10,232 — 769,016 Industrial Technologies: 2023 $ 164,334 $ — $ 333,759 $ — $ 7,658 $ 505,751 2022 155,977 — 172,985 — 6,561 335,523 2021 142,516 — 135,612 — 6,367 284,495 SGK Brand Solutions: 2023 $ 255,751 $ 5,260 $ 206,232 $ 8,814 $ 56,091 $ 532,148 2022 285,499 4,729 230,437 11,057 55,034 586,756 2021 287,954 5,036 262,804 13,336 48,389 617,519 Consolidated: 2023 $ 1,219,238 $ 5,260 $ 572,736 $ 19,913 $ 63,749 $ 1,880,896 2022 1,230,267 4,729 444,606 21,206 61,595 1,762,403 2021 1,141,396 5,036 446,274 23,568 54,756 1,671,030 Revenue from products or services provided to customers over time accounted for approximately 15%, 12%, and 11% of revenue for the years ended September 30, 2023, 2022, and 2021, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022, the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 4,006 $ — $ 4,006 Equity and fixed income mutual funds — 699 — 699 Life insurance policies — 4,926 — 4,926 Total assets at fair value $ — $ 9,631 $ — $ 9,631 Liabilities: Derivatives (1) $ — $ 2,766 $ — $ 2,766 Total liabilities at fair value $ — $ 2,766 $ — $ 2,766 September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 14,421 $ — $ 14,421 Equity and fixed income mutual funds — — — — Life insurance policies — 4,439 — 4,439 Total assets at fair value $ — $ 18,860 $ — $ 18,860 (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. The carrying values for other financial assets and liabilities approximated fair value for the years ended September 30, 2023 and 2022. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES: Inventories at September 30, 2023 and 2022 consisted of the following: 2023 2022 Raw materials $ 70,451 $ 52,586 Work in process 108,400 94,804 Finished goods 81,558 78,050 $ 260,409 $ 225,440 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS: At September 30, 2023 and 2022, non-current investments were as follows: 2023 2022 Equity and fixed income mutual funds $ 699 $ — Life insurance policies 4,926 4,439 Equity-method investments 323 2,729 Other (primarily cost-method) investments 19,040 18,808 $ 24,988 $ 25,976 During fiscal 2023, the Company purchased the remaining ownership interest in a small Industrial Technologies business, which was previously held as an equity-method investment. See Note 21, "Acquisitions and Divestitures." |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022 were as follows: 2023 2022 Buildings $ 144,585 $ 137,827 Machinery, equipment and other 493,313 477,004 637,898 614,831 Less accumulated depreciation (416,663) (404,548) 221,235 210,283 Land 20,943 20,209 Construction in progress 28,148 25,573 $ 270,326 $ 256,065 Depreciation expense, including amortization of assets under finance lease, was $54,462, $46,972 and $49,279 for each of the three years ended September 30, 2023, 2022 and 2021, respectively. |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS: Long-term debt at September 30, 2023 and 2022 consisted of the following: 2023 2022 Revolving credit facilities $ 463,168 $ 480,107 2025 Senior Notes 298,500 297,961 Other borrowings 19,241 13,434 Finance lease obligations 9,271 7,066 Total debt 790,180 798,568 Less current maturities (3,696) (3,277) Long-term debt $ 786,484 $ 795,291 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. A portion of the revolving credit facility (not to exceed $350,000) can be drawn in foreign currencies. In March 2023, an amendment to the domestic credit facility implemented SOFR as the replacement of LIBOR as the benchmark interest rate under the facility. The Company accounted for the change in reference rate as a non-substantial modification. Borrowings under the revolving credit facility now bear interest at SOFR, plus a 0.10% per annum rate spread adjustment, plus a factor ranging from 0.75% to 2.00% (1.25% at September 30, 2023) based on the Company's secured leverage ratio. Previously, borrowings under the revolving credit facility bore interest at LIBOR plus a factor ranging from 0.75% to 2.00% 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 $949 and $1,522 at September 30, 2023 and September 30, 2022, respectively. The domestic credit facility requires the Company to maintain certain leverage and interest coverage ratios. A portion of the facility (not to exceed $55,000) 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, 2023 and 2022 were $405,000 and $427,960, respectively. Outstanding Euro denominated borrowings on the revolving credit facility at September 30, 2023 and 2022 were €55.0 million ($58,168) and €45.0 million ($44,097), respectively. 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, 2023 and 2022 was 5.95% and 3.13%, respectively. The Company has $299,625 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 $1,125 and $1,664 at September 30, 2023 and 2022, respectively. 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. In March 2022, Matthews RFC entered into a receivables purchase agreement (“RPA”) to sell up to $125,000 of receivables to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” within the RPA) equal to the gross receivables transferred. The parties intend that the transfers of receivables to the Purchasers constitute purchases and sales of receivables. Matthews RFC has guaranteed to each Purchaser the prompt payment of sold receivables, and has granted a security interest in its assets for the benefit of the Purchasers. Under the RPA, which matures in March 2024, each Purchaser’s share of capital accrues yield at a floating rate plus an applicable margin. The Company is the master servicer under the RPA, and is responsible for administering and collecting receivables. The proceeds of the RPA are classified as operating activities in the Company’s Consolidated Statements of Cash Flows. Cash received from collections of sold receivables may be used to fund additional purchases of receivables on a revolving basis, or to reduce all or any portion of the outstanding capital of the Purchasers. The fair value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded. As of September 30, 2023 and 2022, the amount sold to the Purchasers was $101,800 and $96,590, respectively, which was derecognized from the Consolidated Balance Sheets. As collateral against sold receivables, Matthews RFC maintains a certain level of unsold receivables, which was $57,897 and $44,262 as of September 30, 2023 and 2022, respectively. The following table sets forth a summary of receivables sold as part of the RPA: For the Year Ended September 30, 2023 2022 Gross receivables sold $ 393,493 $ 424,789 Cash collections reinvested (388,283) (328,199) Net cash proceeds received $ 5,210 $ 96,590 In March 2023, the Company, through its U.K. subsidiary, entered into a non-recourse factoring arrangement. In connection with this arrangement, the Company periodically sells trade receivables to a third-party purchaser in exchange for cash. These transfers of financial assets are recorded at the time the Company surrenders control of the assets. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are de-recognized from the Company's Consolidated Balance Sheets upon transfer. The principal amount of receivables sold under this arrangement was $55,159 during the fiscal year ended September 30, 2023. The discounts on the trade receivables sold are included within administrative expense in the Consolidated Statements of Income. The proceeds from the sale of receivables are classified as operating activities in the Company's Consolidated Statements of Cash Flows. As of September 30, 2023, the amount of factored receivables that remained outstanding was $18,045. 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 €10.0 million ($10,576). The facility also provides €18.5 million ($19,566) for bank guarantees. This facility has no stated maturity date and is available until terminated. There were no outstanding borrowings under the credit facility at September 30, 2023. Outstanding borrowings under the credit facility totaled €8.2 million ($8,050) at September 30, 2022. The weighted-average interest rate on outstanding borrowings under this facility was 2.25% at September 30, 2022. Other borrowings totaled $19,241 and $13,434 at September 30, 2023 and 2022, respectively. The weighted-average interest rate on these borrowings was 2.95% and 1.85% at September 30, 2023 and 2022, respectively. As of September 30, 2023 and 2022, 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, 2023. Aggregate maturities by fiscal year of long-term debt, including other borrowings, is as follows: 2024 $ 3,696 2025 406,032 2026 303,256 2027 1,101 2028 1,198 Thereafter 65,626 780,909 Finance lease obligations 9,271 (a) $ 790,180 (a) Aggregate maturities of finance lease obligations can be found in Note 10, "Leases." |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022, respectively: Balance Sheet Classification Lease Classification 2023 2022 Non-current assets: Property, plant and equipment, net Finance $ 10,804 $ 10,727 Operating lease right-of-use-assets Operating 71,629 71,974 Total lease assets $ 82,433 $ 82,701 Current liabilities: Long-term debt, current maturities Finance $ 2,683 $ 2,284 Other current liabilities Operating 23,983 22,869 Non-current liabilities: Long-term debt Finance 6,588 4,782 Operating lease liabilities Operating 50,189 51,445 Total lease liabilities $ 83,443 $ 81,380 The following table presents the components of lease cost for the years ended September 30, 2023, 2022 and 2021, respectively: 2023 2022 2021 Finance lease cost: Amortization of ROU assets $ 2,791 $ 3,816 $ 4,016 Interest on lease liabilities 248 205 248 Operating lease cost 21,546 21,675 21,716 Variable lease cost 10,601 10,486 6,752 Sublease income (89) (279) (83) Total lease cost $ 35,097 $ 35,903 $ 32,649 Supplemental information regarding the Company's leases follows: For the Year Ended September 30, 2023 2022 2021 Cash paid for finance and operating lease liabilities: Operating cash flows from finance leases $ 259 $ 211 $ 255 Operating cash flows from operating leases 27,194 27,648 28,246 Financing cash flows from finance leases 2,642 3,691 4,134 ROU assets obtained in exchange for new finance lease liabilities 4,745 1,516 3,687 ROU assets obtained in exchange for new operating lease liabilities 8,294 10,365 16,341 September 30, 2023 2022 2021 Weighted-average remaining lease term - finance leases (years) 4.47 4.28 3.85 Weighted-average remaining lease term - operating leases (years) 3.52 3.62 3.82 Weighted-discount rate - finance leases 4.48 % 3.08 % 2.70 % Weighted-discount rate - operating leases 3.47 % 2.45 % 2.28 % Maturities of lease obligations by fiscal year were as follows as of September 30, 2023: Operating Leases Finance Leases 2024 $ 26,123 $ 3,034 2025 20,619 2,145 2026 16,027 1,695 2027 8,381 1,293 2028 4,788 877 Thereafter 3,475 1,263 Total future minimum lease payments 79,413 10,307 Less: Interest 5,241 1,036 Present value of lease liabilities: $ 74,172 $ 9,271 |
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, 2023 and 2022, respectively: Balance Sheet Classification Lease Classification 2023 2022 Non-current assets: Property, plant and equipment, net Finance $ 10,804 $ 10,727 Operating lease right-of-use-assets Operating 71,629 71,974 Total lease assets $ 82,433 $ 82,701 Current liabilities: Long-term debt, current maturities Finance $ 2,683 $ 2,284 Other current liabilities Operating 23,983 22,869 Non-current liabilities: Long-term debt Finance 6,588 4,782 Operating lease liabilities Operating 50,189 51,445 Total lease liabilities $ 83,443 $ 81,380 The following table presents the components of lease cost for the years ended September 30, 2023, 2022 and 2021, respectively: 2023 2022 2021 Finance lease cost: Amortization of ROU assets $ 2,791 $ 3,816 $ 4,016 Interest on lease liabilities 248 205 248 Operating lease cost 21,546 21,675 21,716 Variable lease cost 10,601 10,486 6,752 Sublease income (89) (279) (83) Total lease cost $ 35,097 $ 35,903 $ 32,649 Supplemental information regarding the Company's leases follows: For the Year Ended September 30, 2023 2022 2021 Cash paid for finance and operating lease liabilities: Operating cash flows from finance leases $ 259 $ 211 $ 255 Operating cash flows from operating leases 27,194 27,648 28,246 Financing cash flows from finance leases 2,642 3,691 4,134 ROU assets obtained in exchange for new finance lease liabilities 4,745 1,516 3,687 ROU assets obtained in exchange for new operating lease liabilities 8,294 10,365 16,341 September 30, 2023 2022 2021 Weighted-average remaining lease term - finance leases (years) 4.47 4.28 3.85 Weighted-average remaining lease term - operating leases (years) 3.52 3.62 3.82 Weighted-discount rate - finance leases 4.48 % 3.08 % 2.70 % Weighted-discount rate - operating leases 3.47 % 2.45 % 2.28 % Maturities of lease obligations by fiscal year were as follows as of September 30, 2023: Operating Leases Finance Leases 2024 $ 26,123 $ 3,034 2025 20,619 2,145 2026 16,027 1,695 2027 8,381 1,293 2028 4,788 877 Thereafter 3,475 1,263 Total future minimum lease payments 79,413 10,307 Less: Interest 5,241 1,036 Present value of lease liabilities: $ 74,172 $ 9,271 |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | The Company operates internationally and utilizes certain derivative financial instruments to manage its foreign currency, debt and interest rate exposures. At September 30, 2023 and 2022, derivative instruments were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: September 30, 2023 September 30, 2022 Interest Rate Swaps Cross-Currency Swaps Interest Rate Swaps Cross-Currency Swaps Current assets: Other current assets $ 920 $ — $ 3,358 $ — Long-term assets: Other assets 3,086 — 7,341 3,722 Long-term liabilities: Other liabilities — (2,766) — — Total derivatives $ 4,006 $ (2,766) $ 10,699 $ 3,722 The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges: September 30, 2023 September 30, 2022 Notional amount $ 175,000 $ 125,000 Weighted-average maturity period (years) 4.1 3.1 Weighted-average received rate 5.32 % 3.14 % Weighted-average pay rate 3.83 % 1.04 % The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. In order to transition the Company's swaps from LIBOR-based to SOFR-based rates, the LIBOR-based swaps were settled during the second quarter of fiscal 2023, resulting in cash proceeds of $10,474. Concurrently, the Company entered into new interest rate swaps with SOFR-based rates with a notional amount of $175,000. 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 a net unrealized gain of $4,006 ($2,991 after tax) and $10,699 ($7,937 after tax) at September 30, 2023 and 2022, respectively, that is included in shareholders' equity as part of accumulated other comprehensive income ("AOCI"). Unrecognized gains of $8,084 ($6,041 after tax) related to the terminated LIBOR-based swaps were also included in AOCI as of September 30, 2023. Assuming market rates remain constant with the rates at September 30, 2023, a gain (net of tax) of approximately $3,850 included in AOCI is expected to be recognized in earnings over the next twelve months. The Company has a U.S. Dollar/Euro cross currency swap with a notional amount of $81,392 as of September 30, 2023 and 2022, which has been designated as a net investment hedge of foreign operations. The swap contract matures in September 2027. The Company assesses hedge effectiveness for this contract based on changes in fair value attributable to changes in spot prices. A loss of $2,065 (net of income taxes of $701) and a gain of $2,782 (net of income taxes of $940), which represented effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at September 30, 2023 and 2022, respectively. Income of $1,159 and $1,645, which represented the recognized portion of the fair value of cross currency swaps excluded from the assessment of hedge effectiveness, was included in current period earnings as a component of interest expense for fiscal 2023 and fiscal 2022, respectively. At September 30, 2023 and 2022, the swap totaled $2,766 and $3,722, respectively, and was included in other accrued liabilities and other assets 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), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at September 30, 2021. The Company enters into certain derivative contracts in accordance with its risk management strategy that do not meet the criteria for hedge accounting but which have the economic impact of largely mitigating foreign currency exposure. Changes in the fair value of these economic hedges are recorded in current period earnings as a component of other income (deductions), net. During fiscal 2022, net gains from economic hedges Refer to Note 16, "Accumulated Other Comprehensive Income" for further details regarding amounts recorded in AOCI and the Consolidated Statements of Income (Loss) related to derivatives. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2023 | |
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. Under the current authorization, 1,195,013 shares remain available for repurchase as of September 30, 2023. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS: The Company maintains an equity incentive plan (as amended and restated, 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 1,041,615 time-based restricted share units, 1,313,162 performance-based restricted share units, and 75,000 stock options have been granted under the 2017 Equity Incentive Plan. 1,803,697 of these share-based awards are outstanding as of September 30, 2023. The 2017 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors (the "Committee"). The number of shares issued under performance-based restricted share units may be up to 200% of the number of performance-based restricted share units, based on the satisfaction of specific criteria established by the plan administrator. For the years ended September 30, 2023, 2022 and 2021, stock-based compensation cost totaled $17,308, $17,432 and $15,581, respectively. The associated future income tax benefit recognized was $3,821, $3,821 and $3,247 for the years ended September 30, 2023, 2022 and 2021, respectively. 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 43% 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, 2023 were as follows: Shares Weighted- Non-vested at September 30, 2022 1,459,233 $ 33.78 Granted 618,050 27.69 Vested (211,158) 34.94 Expired or forfeited (137,428) 40.89 Non-vested at September 30, 2023 1,728,697 $ 30.90 During 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, 2023, the total unrecognized compensation cost related to all unvested stock-based awards was $18,305 which is expected to be recognized over a weighted-average period of 1.9 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, 2023 | |
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: 2023 2022 2021 Net income (loss) attributable to Matthews shareholders $ 39,291 $ (99,774) $ 2,910 Weighted-average shares outstanding (in thousands): Basic shares 30,795 31,367 31,696 Effect of dilutive securities 494 — 291 Diluted shares 31,289 31,367 31,987 Dividends declared per common share $ 0.92 $ 0.88 $ 0.86 Anti-dilutive securities excluded from the dilutive calculation were insignificant for the fiscal years ended September 30, 2023 and 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, 2023 | |
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 principal defined benefit retirement plan ("DB Plan") was closed to new participants. As of September 30, 2023 and 2022, all of the Company's defined benefit plans are unfunded. In April 2021, the Committee approved resolutions to freeze all future benefit accruals for all participants in the Company's non-qualified Supplemental Retirement Plan ("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 in fiscal 2021, which were previously included within AOCI. In the first quarter of fiscal 2022, the Company terminated its DB Plan and made plan contributions totaling $35,706 to fully fund the planned settlement of the DB Plan obligations. Also during the first quarter of fiscal 2022, lump sum distributions of $185,958 were made from the DB Plan to plan participants, and non-participating annuity contracts totaling $56,274 were purchased by the DB Plan for plan participants, resulting in the full settlement of the DB Plan obligations. The settlement of the DB Plan obligations resulted in the recognition of a non-cash charge of $30,856, which has been presented as a component of other income (deductions), net for the year ended September 30, 2022. This amount represents the immediate recognition of the remaining portion of the deferred AOCI balances related to the DB Plan. In the first quarter of fiscal 2023, the Company made lump sum payments totaling $24,242 to fully settle the SERP and defined benefit portion of the ORRP obligations. The settlement of these plan obligations resulted in the recognition of a non-cash charge of $1,271, which has been presented as a component of other income (deductions), net for the year ended September 30, 2023. This amount represents the immediate recognition of the deferred AOCI balances related to the SERP and ORRP. During fiscal 2023, the remaining funds held in a rabbi trust associated with the SERP were transferred to the Company. Consequently, these amounts are no longer classified as restricted cash. 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, 2023 and 2022: Pension Other Postretirement 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation, beginning of year $ 36,609 $ 293,926 $ 12,813 $ 18,841 Acquisitions (1) — 9,829 — — Service cost 163 392 76 165 Interest cost 497 1,127 644 411 Actuarial gain (512) (19,978) (641) (5,989) Settlement (24,242) (242,232) — — Exchange loss (gain) 979 (3,093) — — Benefit payments (598) (3,362) (517) (615) Benefit obligation, end of year (2) 12,896 36,609 12,375 12,813 Change in plan assets: Fair value, beginning of year — 208,344 — — Actual return — 368 — — Benefit payments (598) (3,362) (517) (615) Employer contributions 24,840 36,882 517 615 Settlement (24,242) (242,232) — — Fair value, end of year — — — — Funded status (12,896) (36,609) (12,375) (12,813) Unrecognized actuarial (gain) loss (1,518) 5,140 (5,906) (5,973) Unrecognized prior service (credit) cost — (4,815) (956) (1,320) Net amount recognized $ (14,414) $ (36,284) $ (19,237) $ (20,106) Amounts recognized in the consolidated balance sheet: Current liability $ (68) $ (24,172) $ (876) $ (830) Noncurrent benefit liability (12,828) (12,437) (11,499) (11,983) Accumulated other comprehensive (income) loss (1,518) 325 (6,862) (7,293) Net amount recognized $ (14,414) $ (36,284) $ (19,237) $ (20,106) Amounts recognized in accumulated other comprehensive (income) loss: Net actuarial (gain) loss $ (1,518) $ 5,140 $ (5,906) $ (5,973) Prior service (credit) cost — (4,815) (956) (1,320) Net amount recognized $ (1,518) $ 325 $ (6,862) $ (7,293) (1) Fiscal 2022 reflects benefit obligations assumed in connection with the acquisition of OLBRICH and R+S Automotive. For additional information, see Note 21. (2) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), asset, salary and other experience, and curtailments impacted benefit obligations. Based upon actuarial valuations performed as of September 30, 2023 and 2022, the accumulated benefit obligation for the Company's defined benefit pension plans was $12,896 and $36,609 at September 30, 2023 and 2022, respectively, and the projected benefit obligation for the Company's defined benefit pension plans was $12,896 and $36,609 at September 30, 2023 and 2022, respectively. Net periodic pension and other postretirement benefit cost for the plans included the following: Pension Other Postretirement 2023 2022 2021 2023 2022 2021 Service cost $ 163 $ 392 $ 7,919 $ 76 $ 165 $ 201 Interest cost * 497 1,127 6,145 644 411 376 Expected return on plan assets * — (1,040) (10,809) — — — Amortization: Prior service cost — (152) (127) (364) (364) (364) Net actuarial (gain) loss * (64) 469 9,769 (708) — — Curtailment gain * — — (220) — — — Special termination benefits * — — 315 — — — Prior-service cost write-offs * — — 261 — — — Settlement* 1,271 30,856 — — — — Net benefit cost $ 1,867 $ 31,652 $ 13,253 $ (352) $ 212 $ 213 * 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 were made from plan assets, while benefit payments under the SERP were made from the Company's operating funds. Benefit payments under the Company's postretirement benefit plan are made from the Company's operating funds. Contributions made in fiscal 2023 are as follows: Contributions Pension Other Postretirement Supplemental retirement plan $ 23,469 $ — Other retirement plans 1,371 — Other postretirement plan — 517 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 pension and other postretirement benefit plans was September 30, for fiscal 2023, 2022 and 2021. The weighted-average assumptions for those plans were: Pension Other Postretirement 2023 2022 2021 2023 2022 2021 Discount rate 4.13 % 4.01 % 2.79 % 5.86 % 5.37 % 2.83 % Return on plan assets — % — % 3.10 % — — — Compensation increase — % — % 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 October 2019, the Society of Actuaries released updated base mortality tables denoted PRI-2012, replacing the RP-2014 base tables. In fiscal years 2023, 2022 and 2021, the Company elected to value its pension and other postretirement benefit plan liabilities using the base PRI-2012 mortality table and a slightly modified fully generational mortality improvement assumption. The revised assumption uses the most recent RPEC Scale MP 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. Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits Other Postretirement Benefits 2024 $ 616 $ 876 2025 623 896 2026 628 910 2027 637 893 2028 650 893 2029-2033 3,499 4,287 $ 6,653 $ 8,755 For measurement purposes, a rate of increase of 7.0% in the per capita cost of health care benefits was assumed for 2024; the rate was assumed to decrease gradually to 4.0% for 2073 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 $13,297, $12,442, and $9,186 for the fiscal years ended September 30, 2023, 2022 and 2021, respectively. The Company also provides a non-qualified deferred compensation plan for certain executives that permits participants to defer an amount of income into the plan during each calendar year. The expense associated with the contributions made to this plan was $1,385 for the fiscal year ended September 30, 2023. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023, 2022, and 2021 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Cash Flow Hedges Total Attributable to Matthews: Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification 39,822 (3,322) 1,873 38,373 Amounts reclassified from AOCI 7,202 (a) (48) (b) 2,453 (b) 9,607 Net current-period OCI 47,024 (3,370) 4,326 47,980 Balance, September 30, 2021 $ (35,930) $ (155,251) $ (1,558) $ (192,739) OCI before reclassification 17,851 (46,817) 8,148 (20,818) Amounts reclassified from AOCI 23,261 (a) (1,242) (b) 1,347 (b) 23,366 Net current-period OCI 41,112 (48,059) 9,495 2,548 Balance, September 30, 2022 $ 5,182 $ (203,310) $ 7,937 $ (190,191) OCI before reclassification 1,476 13,979 3,056 18,511 Amounts reclassified from AOCI 102 (a) (865) (b) (1,961) (b) (2,724) Net current-period OCI 1,578 13,114 1,095 15,787 Balance, September 30, 2023 $ 6,760 $ (190,196) $ 9,032 $ (174,404) Attributable to noncontrolling interest: Balance, September 30, 2020 $ — $ 368 $ — $ 368 OCI before reclassification — (127) — (127) Net current-period OCI — (127) — (127) Balance, September 30, 2021 $ — $ 241 $ — $ 241 OCI before reclassification — 14 — 14 Net current-period OCI — 14 — 14 Balance, September 30, 2022 $ — $ 255 $ — $ 255 OCI before reclassification — 11 — 11 Net current-period OCI — 11 — 11 Balance, September 30, 2023 $ — $ 266 $ — $ 266 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 15). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 11). Accumulated other comprehensive loss at September 30, 2023 and 2022 consisted of the following: 2023 2022 Cumulative foreign currency translation $ (190,196) $ (203,310) Fair value of cash flow hedges, net of tax of $1,015 and $2,762, respectively 9,032 7,937 Minimum pension liabilities, net of tax of $1,620 and $1,786, respectively 6,760 5,182 $ (174,404) $ (190,191) Reclassifications out of AOCI for the years ended September 30, 2023, 2022 and 2021 were as follows: Details about AOCI Components September 30, 2023 September 30, 2022 September 30, 2021 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 364 $ 516 $ 491 Actuarial gains (losses) 772 (469) (9,769) Other income (deductions), net Prior service cost write-off — — (261) Other income (deductions), net Settlement losses (1,271) (30,856) — Other income (deductions), net (135) (30,809) (9,539) Income before income tax (b) 33 7,548 2,337 Income taxes $ (102) $ (23,261) $ (7,202) Net income Derivatives Cash flow hedges $ 2,626 $ (1,786) $ (3,249) Interest expense Net investment hedges 1,159 1,645 63 Interest expense 3,785 (141) (3,186) Income before income tax (b) (959) 36 781 Income taxes $ 2,826 $ (105) $ (2,405) 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 15. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The income tax provision (benefit) consisted of the following: 2023 2022 2021 Current: Federal $ 13,967 $ 13,481 $ (3,741) State 4,381 4,676 3,579 Foreign 5,052 10,414 2,379 23,400 28,571 2,217 Deferred: Federal (14,466) (24,239) 5,829 State (1,887) (3,895) 169 Foreign (5,273) (4,828) (1,840) (21,626) (32,962) 4,158 Total $ 1,774 $ (4,391) $ 6,375 The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows: 2023 2022 2021 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Effect of state income taxes, net of federal deduction 3.8 % 0.2 % 37.5 % Foreign statutory taxes compared to federal statutory rate (0.7) % 1.6 % (18.6) % Share-based compensation 3.6 % (1.1) % 24.5 % Termination of SERP — % — % 28.6 % Tax credits (7.0) % 1.2 % (26.6) % Sale of SERP-related investments — % — % 23.8 % Goodwill write-down — % (11.2) % — % Tax rate differential on net operating loss carryback — % — % (21.4) % Nontaxable income (7.5) % 0.8 % (9.9) % Utilization of foreign losses with valuation allowance (5.6) % — % — % Other * (3.3) % (8.3) % 10.1 % Effective tax rate 4.3 % 4.2 % 69.0 % * In Fiscal 2022, "Other" primarily consists of foreign net operating losses that had a full valuation allowance. The Company's consolidated income taxes for the year ended September 30, 2023 were an expense of $1,774, compared to a benefit of $4,391 for fiscal 2022, and an expense of $6,375 for fiscal 2021. The difference between the Company's consolidated income taxes for fiscal 2023 compared to fiscal 2022 partially resulted from fiscal 2023 having consolidated income before income taxes compared to fiscal 2022 having a consolidated loss before income taxes. The fiscal 2023 tax rate was negatively impacted by share-based compensation. Additionally, the fiscal 2023 tax rate benefited from research and development and foreign tax credits and the utilization of foreign tax net operating losses with a valuation allowance. The fiscal 2022 consolidated loss reflected a goodwill write-down recorded in the fourth quarter of fiscal 2022 that was primarily non-deductible. The fiscal 2022 effective tax rate also benefited from research and development and foreign tax credits. The fiscal 2022 effective tax rate was negatively impacted by foreign net operating losses requiring a full valuation allowance. The Company's foreign subsidiaries had income before income taxes for the year ended September 30, 2023 of approximately $43,090, loss before income taxes for the year ended September 30, 2022 of approximately $47,653 and income before income taxes for the year ended September 30, 2021 of approximately $6,685. 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, or such earnings are considered to be reinvested indefinitely in foreign operations. At September 30, 2023, undistributed earnings of foreign subsidiaries for which deferred income taxes have not been provided approximated $368,306. The components of deferred tax assets and liabilities at September 30, 2023 and 2022 are as follows: 2023 2022 Deferred tax assets: Pension and postretirement benefits $ 5,544 $ 9,051 Accruals and reserves not currently deductible 11,158 10,909 Income tax credit carryforward 4,970 5,796 Operating and capital loss carryforwards 59,956 54,875 Stock options 8,007 7,103 Research and development capitalization 11,028 — Other 3,016 50 Total deferred tax assets 103,679 87,784 Valuation allowances (22,506) (27,552) Net deferred tax assets 81,173 60,232 Deferred tax liabilities: Depreciation (23,547) (27,317) Unrealized gains and losses (2,969) (2,793) Goodwill and intangible assets (97,415) (98,715) Revenue recognized over time (21,226) (10,847) Other (5,002) (9,539) Total deferred tax liabilities (150,159) (149,211) Net deferred tax liability $ (68,986) $ (88,979) At September 30, 2023, the Company had foreign net operating loss carryforwards of $292,206. 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 $22,506 at September 30, 2023. The Company has recorded deferred tax assets of $2,756 for state net operating loss carryforwards, which will be available to offset future income tax liabilities. Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2023 2022 2021 Balance, beginning of year $ 4,123 $ 2,807 $ 10,483 Increases for tax positions of prior years 100 1,393 — Decreases for tax positions of prior years — (200) (288) Increases based on tax positions related to the current year 769 551 628 Decreases due to lapse of statute of limitation (1,213) (428) (8,016) Balance, end of year $ 3,779 $ 4,123 $ 2,807 The Company had unrecognized tax benefits of $3,779 at September 30, 2023, which would impact the annual effective tax rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $2,648 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 $730 and $876 at September 30, 2023 and 2022, 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, 2023, the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2020 and forward United States - State 2019 and forward Canada 2019 and forward Germany 2019 and forward United Kingdom 2022 and forward Australia 2018 and forward Singapore 2019 and forward |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2023 | |
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. In the normal course of business, the Company may provide certain customers with performance guarantees, and at times letters of credit or surety bonds. The terms of these agreements expire at various dates between fiscal 2024 and 2026. In general, the Company would only be liable for the amounts of these guarantees in the event that non-performance by the Company permits termination of the related contract by the Company's customer. The Company maintains it is in compliance with its performance obligations under all contracts for which there is a performance guarantee, and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse effect on 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 2024 and 2027. 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, 2023 was $5,838. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Sep. 30, 2023 | |
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: 2023 2022 2021 Current assets: Accounts receivable $ 26,457 $ 74,013 $ (13,423) Inventories (23,990) (23,459) (12,839) Other current assets (26,724) (15,770) (15,618) (24,257) 34,784 (41,880) Current liabilities: Trade accounts payable (9,215) 7,437 29,621 Accrued compensation (648) (10,760) 10,791 Accrued income taxes 3,343 5,745 601 Other current liabilities (4,726) (7,616) 13,849 (11,246) (5,194) 54,862 Net change $ (35,503) $ 29,590 $ 12,982 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION: The Company manages its businesses under three segments: Memorialization, Industrial Technologies and SGK Brand Solutions. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes the design, manufacturing, service and distribution of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. 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 and divestiture 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: Memorialization Industrial Technologies SGK Brand Solutions Corporate and Non-Operating Consolidated Sales to external customers: 2023 $ 842,997 $ 505,751 $ 532,148 $ — $ 1,880,896 2022 840,124 335,523 586,756 — 1,762,403 2021 769,016 284,495 617,519 — 1,671,030 Intersegment sales: 2023 — 1,829 1,073 — 2,902 2022 — 1,057 1,295 — 2,352 2021 — 2,146 2,376 — 4,522 Depreciation and amortization: 2023 23,738 23,184 44,842 4,766 96,530 2022 23,228 11,387 64,173 5,268 104,056 2021 23,043 11,427 93,665 5,377 133,512 Adjusted EBITDA: 2023 163,986 66,278 57,128 (61,583) 225,809 2022 151,849 56,762 60,120 (58,323) 210,408 2021 165,653 34,889 91,435 (64,227) 227,750 Total assets: 2023 794,129 482,444 572,601 38,207 1,887,381 2022 800,666 414,019 631,291 36,795 1,882,771 2021 807,215 285,710 874,001 65,152 2,032,078 Capital expenditures: 2023 16,868 16,253 14,589 2,888 50,598 2022 28,899 13,646 14,287 4,489 61,321 2021 11,969 8,620 11,775 1,949 34,313 A reconciliation of adjusted EBITDA to net income follows: 2023 2022 2021 Total Adjusted EBITDA $ 225,809 $ 210,408 $ 227,750 Acquisition and divestiture related items (1)** (5,293) (7,898) (541) Strategic initiatives and other charges (2)** (13,923) (28,060) (28,998) Non-recurring / incremental COVID-19 costs (3)*** — (2,985) (5,312) Highly inflationary accounting losses (primarily non-cash) (4) (1,360) (1,473) — Defined benefit plan termination related items (5) — 429 — Asset write-downs, net (6) — (10,050) — Goodwill write-downs (7) — (82,454) — Stock-based compensation (17,308) (17,432) (15,581) Non-service pension and postretirement expense (8) (1,640) (31,823) (5,837) Depreciation and amortization * (96,530) (104,056) (133,512) Interest expense, including RPA and factoring financing fees (9) (48,690) (28,771) (28,684) Net loss attributable to noncontrolling interests (155) (54) (52) Income (loss) before income taxes 40,910 (104,219) 9,233 Income tax (provision) benefit (1,774) 4,391 (6,375) Net income (loss) $ 39,136 $ (99,828) $ 2,858 (1) Includes certain non-recurring costs associated with recent acquisition and divestiture activity, and also includes a gain of $1,827 in fiscal year 2023 related to the divestiture of a business in the Industrial Technologies segment. (2) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels and costs associated with global ERP system integration efforts, net of loss recoveries of $2,154 in fiscal year 2023 related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015. (3) 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. (4) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries. (5) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. (6) Represents asset write-downs, net of recoveries within the SGK Brand Solutions segment (see Note 23, "Asset Write-Downs"). (7) Represents goodwill write-downs within the SGK Brand Solutions segment (see Note 22, "Goodwill and Other Intangible Assets"). (8) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement 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 and settlement 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 or settlements of plan obligations. 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. (9) Includes fees for receivables sold under the RPA and factoring arrangements totaling $4,042 and $1,046 for the fiscal years ended September 30, 2023 and 2022, respectively. * Depreciation and amortization was $23,738, $23,228, and $23,043 for the Memorialization segment, $23,184, $11,387, and $11,427 for the Industrial Technologies segment, $44,842, $64,173, and $93,665 for the SGK Brand Solutions segment, and $4,766, $5,268, and $5,377 for Corporate and Non-Operating, for the fiscal years ended September 30, 2023, 2022, and 2021, respectively. ** Acquisition and divestiture costs, ERP integration costs, and strategic initiatives and other charges were $1,002, $3,517, and $1,923 for the Memorialization segment, $4,108, $5,631, and $4,026 for the Industrial Technologies segment, $10,905, $19,359, and $12,323 for the SGK Brand Solutions segment, and $3,201, $7,451, and $11,267 for Corporate and Non-Operating, for the fiscal years ended September 30, 2023, 2022, and 2021, respectively. *** Non-recurring/incremental COVID-19 costs were $1,314, and $3,646 for the Memorialization segment, $6, and $38 for the Industrial Technologies segment, $1,199, and $1,539 for the SGK Brand Solutions segment, and $466, and $89 for Corporate and Non-Operating, for the fiscal years ended September 30, 2022, and 2021 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: 2023 $ 1,219,238 $ 5,260 $ 572,736 $ 19,913 $ 63,749 $ 1,880,896 2022 1,230,267 4,729 444,606 21,206 61,595 1,762,403 2021 1,141,396 5,036 446,274 23,568 54,756 1,671,030 Long-lived assets: 2023 806,182 11,690 255,748 14,099 41,194 1,128,913 2022 822,566 10,787 242,614 14,895 42,778 1,133,640 2021 890,545 14,226 277,655 21,012 55,598 1,259,036 |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES: Fiscal 2023: In September 2023, the Company completed a small divestiture within the Industrial Technologies segment. Net proceeds from the divestiture totaled approximately $6,700, and the transaction resulted in a pre-tax gain of $1,827, which was recorded as a component of administrative expenses for the year ended September 30, 2023. The transaction also included $2,250 of contingent consideration, which represents the maximum amount the Company could potentially recognize at the resolution of the two-year contingency period. In March 2023, the Company purchased the remaining ownership interest in a non-consolidated Industrial Technologies subsidiary for $4,759 (net of cash acquired and holdbacks). The preliminary purchase price allocation was not finalized as of September 30, 2023 and remains subject to change as the Company obtains additional information related to working capital and other assets and liabilities. In February 2023, the Company acquired Eagle Granite Company ("Eagle") within the Memorialization segment for a total purchase price of $18,384, consisting of cash of $8,650 (net of cash acquired) and a deferred purchase price amount of $9,734, which is scheduled to be paid to the seller two years from the acquisition date. In addition, the Company recorded a liability of approximately $1,030 for potential future contingent consideration related to certain earnout provisions, which, if owed, is scheduled to be paid to the seller four years from the acquisition date. Eagle serves cemeteries and monument companies with a full complement of granite memorialization products. The Company finalized the allocation of the purchase price in the fourth quarter of fiscal 2023, resulting in an immaterial adjustment to certain working capital accounts. During the first fiscal quarter of 2023, the Company completed small acquisitions within the SGK Brand Solutions segment for a combined purchase price of $1,932 (net of cash acquired and holdbacks). The Company finalized the purchase price allocations in the fourth quarter of fiscal 2023, resulting in an immaterial adjustment to certain tax accounts. Fiscal 2022: In August 2022, the Company acquired German-based engineering firms OLBRICH and R+S Automotive for a purchase price of approximately €43,700 ($44,469) (net of cash acquired) within the Industrial Technologies segment. OLBRICH is a production and intelligent equipment manufacturer, specializing in purpose-built rotary processing equipment, including equipment used in the manufacturing of dry and wet electrodes for lithium-ion batteries used in electric vehicles and components for hydrogen fuel cells and electrolyzers, with additional strong positions in Specialty & Pharma, Packaging and Home & Décor. R+S Automotive is a specialty engineering services provider of automation, plant and tooling concepts for automotive manufacturing companies around the world. Annual sales for these businesses were approximately $140,000 prior to the acquisition. The Company finalized the allocation of the purchase price in the fourth quarter of fiscal 2023, resulting in an immaterial adjustment to certain working capital, tax, and other accounts. Fiscal 2021: In April 2021, the Company completed a small acquisition in the hydrogen fuel cell industry within the Industrial Technologies segment for a purchase price of $2,523 (net of cash acquired and holdback amounts). The Company finalized the allocation of the purchase price in the first quarter of fiscal 2022, resulting in an immaterial adjustment to certain working capital accounts. 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. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022, follow. Memorialization Industrial Technologies SGK Brand Solutions Consolidated Net goodwill at September 30, 2021 $ 366,360 $ 92,577 $ 314,850 $ 773,787 Additions during period — 17,013 — 17,013 Translation and other adjustments (4,578) (2,568) (25,779) (32,925) Goodwill write-down — — (82,454) (82,454) Net goodwill at September 30, 2022 361,782 107,022 206,617 675,421 Additions during period 2,322 6,757 2,100 11,179 Divestiture during period — (2,525) — (2,525) Translation and other adjustments 1,911 3,819 8,304 14,034 Net goodwill at September 30, 2023 $ 366,015 $ 115,073 $ 217,021 $ 698,109 The net goodwill balances at September 30, 2023 and 2022 included $261,186 of accumulated impairment losses. Accumulated impairment losses at September 30, 2023 and 2022 were $5,000, $23,946, and $232,240 for the Memorialization, Industrial Technologies and SGK Brand Solutions segments, respectively. Fiscal 2023: In fiscal 2023, the additions reflect the acquisition of Eagle Granite Company within the Memorialization segment, the purchase of the remaining ownership interest in an Industrial Technologies subsidiary, and small acquisitions within the SGK Brand Solutions segment. The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2023 (January 1, 2023) 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 SGK Brand Solutions reporting unit exceeded the carrying value (expressed as a percentage of carrying value) by approximately 9% as of January 1, 2023. In light of the limited excess fair value over carrying value and further declines experienced by the SGK Brand Solutions reporting unit, management determined that a triggering event occurred during the fourth quarter of fiscal 2023, resulting in an interim assessment of goodwill for the reporting unit, as of September 1, 2023. The results of this review indicated that the estimated fair value of the Company's SGK Brand Solutions reporting unit exceeded the carrying value (expressed as a percentage of carrying value) by approximately 4%. The fair value for the reporting unit was 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. If current projections are not achieved or specific valuation factors outside the Company's control (such as discount rates and continued economic and industry challenges) significantly change, additional goodwill write-downs may be necessary in future periods. Fiscal 2022: In fiscal 2022, the additions to Industrial Technologies goodwill reflects the acquisition of OLBRICH and R+S Automotive. In fiscal 2022, in its assessment of the potential impacts of weakened economic conditions (particularly in Europe), increases in the cost of certain materials, labor, and other inflation-related pressures, and unfavorable changes in foreign exchange rates on the estimated future earnings and cash flows for the SGK Brand Solutions reporting unit, and in light of the limited excess fair value over carrying value for this reporting unit, management determined a triggering event occurred, resulting in a re-evaluation of goodwill for the reporting unit, as of September 1, 2022. As a result of this interim assessment, the Company recorded a goodwill write-down totaling $82,454 during the fiscal 2022 fourth quarter. Subsequent to this write-down, the fair value of the SGK Brand Solutions reporting unit approximated its carrying value at September 1, 2022. The fair value for the reporting unit was 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. The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2023 and 2022, respectively. Carrying Accumulated Net September 30, 2023 Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 151,185 (122,474) 28,711 Customer relationships 378,161 (280,910) 97,251 Copyrights/patents/other 19,375 (15,399) 3,976 $ 579,261 $ (418,783) $ 160,478 September 30, 2022 Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 150,528 (117,572) 32,956 Customer relationships 380,593 (248,464) 132,129 Copyrights/patents/other 20,878 (14,349) 6,529 $ 582,539 $ (380,385) $ 202,154 The net change in intangible assets during fiscal 2023 included the impact of foreign currency fluctuations during the period, additional amortization, additions related to the Eagle acquisition, and disposals related to a small divestiture within the Industrial Technologies segment. |
ASSET WRITE-DOWNS
ASSET WRITE-DOWNS | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
ASSET WRITE-DOWNS | ASSET WRITE-DOWNS:The Company has certain operations in Russia within its SGK Brand Solutions segment. During fiscal 2022, in light of the war between Russia and Ukraine, and the resulting regional instability and evolving political and economic conditions within the region, the Company evaluated certain of its assets for recoverability and impairment. As a result of this assessment, and due to the uncertainty in projecting future cash flows for the Company's operations in Russia, the Company recorded asset write-downs totaling $10,050 (net of recoveries) during fiscal 2022 to reduce the carrying value of these assets to zero. Asset write-downs (primarily related to property, plant and equipment) totaling $9,686 and $364 were reported within cost of sales and administrative expense, respectively, for the year ended September 30, 2022. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2023 | |
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 Deductions (1) Balance at End of Period (Dollar amounts in thousands) Allowance for Doubtful Accounts: Fiscal Year Ended: September 30, 2023 $ 10,138 $ 1,625 $ — $ (979) $ 10,784 September 30, 2022 10,654 1,368 — (1,884) 10,138 September 30, 2021 9,618 2,182 — (1,146) 10,654 (1) Amounts determined not to be collectible (including direct write-offs), net of recoveries. Description Balance at Beginning of Period Provision (Credited) Charged To Expense (1, 3) Allowance Changes Other (Deductions) Additions (2) Balance at End of Period (Dollar amounts in thousands) Deferred Tax Asset Valuation Allowance: Fiscal Year Ended: September 30, 2023 $ 27,552 $ (4,709) $ — $ (337) $ 22,506 September 30, 2022 28,619 (1,300) — 233 27,552 September 30, 2021 22,527 5,709 — 383 28,619 (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. (3) Fiscal 2022 amount is comprised of a $5,004 benefit related to non-survivability of deferred tax assets with full valuation allowance due to entity dissolution and a $3,704 expense primarily related to adjustments in net operating loss carryforwards which are precluded from use. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to Matthews shareholders | $ 39,291 | $ (99,774) | $ 2,910 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
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 and any variable interest entities for which the Company is the primary beneficiary. 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. |
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, except as disclosed in Note 23, “Asset Write-Downs." |
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 liabilities are determined on an actuarial basis and are affected by the discount rate used to determine the present value of benefit obligations which will affect the amount of pension cost. Differences between actual and expected results or changes in the value of the obligations 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 generally 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 hedging 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." The Company applies highly inflationary accounting for subsidiaries when the cumulative inflation rate for a three-year period meets or exceeds 100 percent. Under highly inflationary accounting, the financial statements of these subsidiaries are remeasured into the Company's reporting currency (U.S. dollar) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than accumulated other comprehensive loss on the Consolidated Balance Sheets , until such time as the applicable economy is no longer considered highly inflationary. |
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 cash flow hedges, 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. 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. The Company elected to apply the practical expedient under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers which exempts the adjustment of the consideration for the existence of a significant financing component when the period between the transfer of the services and the payment for such services is one year or less. 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 solutions industries), cremation and incineration projects, and product identification and warehouse automation projects, are recognized over time using the input method measuring progress toward completion of such projects. Contract assets include unbilled amounts resulting from sales under contracts where revenue is recognized over time and revenue exceeds the amount that can be billed to the customer based on the terms of the contract. Contract liabilities include customer deposits that are made prior to the satisfaction of performance obligations for a contract. 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 $15,560, $15,536 and $13,206 for the years ended September 30, 2023, 2022 and 2021, 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, or 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 | Issued In October 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805) which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract asset/liability, and payment terms and their effect on subsequent revenue recognized by the acquirer. This ASU is effective for the Company beginning in interim periods starting in fiscal 2024. While the impact of this ASU is dependent on the nature of any future transactions, the Company currently does not expect this ASU to have a significant impact on its consolidated financial statements. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50) which enhances the transparency of supplier finance programs by addressing disclosure requirements. Specifically, the amendment requires disclosure of key program terms, amounts outstanding, balance sheet presentation, and a rollforward of amounts outstanding during the annual period. The ASU will be effective beginning in the first quarter of fiscal 2024, except for the rollforward requirement, which is effective in fiscal year 2025. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Adopted In July 2023, the FASB issued ASU No. 2023-03, Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock (SEC Update) which enhances the transparency of stock based compensation and material nonpublic information at the time of a grant. The adoption of this ASU in the fourth quarter of fiscal 2023 had no material impact on the Company's consolidated financial statements. 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 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. |
ACCOUNTING PRONOUNCEMENTS (Tabl
ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounts receivable allowance for doubtful accounts | The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the years ended September 30, 2023, 2022 and 2021. Description Balance at Beginning of Period Charged to Expense Charged to other Accounts Deductions (1) Balance at Allowance for Doubtful Accounts: Fiscal Year Ended: September 30, 2023 $ 10,138 $ 1,625 $ — $ (979) $ 10,784 September 30, 2022 10,654 1,368 — (1,884) 10,138 September 30, 2021 9,618 2,182 — (1,146) 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated sales by segment and region for the years ended September 30, 2023, 2022 and 2021 were as follows: North America Central and South America Europe Australia Asia Consolidated Memorialization: 2023 $ 799,153 $ — $ 32,745 $ 11,099 $ — $ 842,997 2022 788,791 — 41,184 10,149 — 840,124 2021 710,926 — 47,858 10,232 — 769,016 Industrial Technologies: 2023 $ 164,334 $ — $ 333,759 $ — $ 7,658 $ 505,751 2022 155,977 — 172,985 — 6,561 335,523 2021 142,516 — 135,612 — 6,367 284,495 SGK Brand Solutions: 2023 $ 255,751 $ 5,260 $ 206,232 $ 8,814 $ 56,091 $ 532,148 2022 285,499 4,729 230,437 11,057 55,034 586,756 2021 287,954 5,036 262,804 13,336 48,389 617,519 Consolidated: 2023 $ 1,219,238 $ 5,260 $ 572,736 $ 19,913 $ 63,749 $ 1,880,896 2022 1,230,267 4,729 444,606 21,206 61,595 1,762,403 2021 1,141,396 5,036 446,274 23,568 54,756 1,671,030 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | As of September 30, 2023 and 2022, the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 4,006 $ — $ 4,006 Equity and fixed income mutual funds — 699 — 699 Life insurance policies — 4,926 — 4,926 Total assets at fair value $ — $ 9,631 $ — $ 9,631 Liabilities: Derivatives (1) $ — $ 2,766 $ — $ 2,766 Total liabilities at fair value $ — $ 2,766 $ — $ 2,766 September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 14,421 $ — $ 14,421 Equity and fixed income mutual funds — — — — Life insurance policies — 4,439 — 4,439 Total assets at fair value $ — $ 18,860 $ — $ 18,860 (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. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at September 30, 2023 and 2022 consisted of the following: 2023 2022 Raw materials $ 70,451 $ 52,586 Work in process 108,400 94,804 Finished goods 81,558 78,050 $ 260,409 $ 225,440 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Current Investments | At September 30, 2023 and 2022, non-current investments were as follows: 2023 2022 Equity and fixed income mutual funds $ 699 $ — Life insurance policies 4,926 4,439 Equity-method investments 323 2,729 Other (primarily cost-method) investments 19,040 18,808 $ 24,988 $ 25,976 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022 were as follows: 2023 2022 Buildings $ 144,585 $ 137,827 Machinery, equipment and other 493,313 477,004 637,898 614,831 Less accumulated depreciation (416,663) (404,548) 221,235 210,283 Land 20,943 20,209 Construction in progress 28,148 25,573 $ 270,326 $ 256,065 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt at September 30, 2023 and 2022 consisted of the following: 2023 2022 Revolving credit facilities $ 463,168 $ 480,107 2025 Senior Notes 298,500 297,961 Other borrowings 19,241 13,434 Finance lease obligations 9,271 7,066 Total debt 790,180 798,568 Less current maturities (3,696) (3,277) Long-term debt $ 786,484 $ 795,291 |
Summary of Receivables Sold | The following table sets forth a summary of receivables sold as part of the RPA: For the Year Ended September 30, 2023 2022 Gross receivables sold $ 393,493 $ 424,789 Cash collections reinvested (388,283) (328,199) Net cash proceeds received $ 5,210 $ 96,590 |
Aggregate Maturities of Long-Term Debt | Aggregate maturities by fiscal year of long-term debt, including other borrowings, is as follows: 2024 $ 3,696 2025 406,032 2026 303,256 2027 1,101 2028 1,198 Thereafter 65,626 780,909 Finance lease obligations 9,271 (a) $ 790,180 (a) Aggregate maturities of finance lease obligations can be found in Note 10, "Leases." |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022, respectively: Balance Sheet Classification Lease Classification 2023 2022 Non-current assets: Property, plant and equipment, net Finance $ 10,804 $ 10,727 Operating lease right-of-use-assets Operating 71,629 71,974 Total lease assets $ 82,433 $ 82,701 Current liabilities: Long-term debt, current maturities Finance $ 2,683 $ 2,284 Other current liabilities Operating 23,983 22,869 Non-current liabilities: Long-term debt Finance 6,588 4,782 Operating lease liabilities Operating 50,189 51,445 Total lease liabilities $ 83,443 $ 81,380 |
Summary of Components of Lease Cost | The following table presents the components of lease cost for the years ended September 30, 2023, 2022 and 2021, respectively: 2023 2022 2021 Finance lease cost: Amortization of ROU assets $ 2,791 $ 3,816 $ 4,016 Interest on lease liabilities 248 205 248 Operating lease cost 21,546 21,675 21,716 Variable lease cost 10,601 10,486 6,752 Sublease income (89) (279) (83) Total lease cost $ 35,097 $ 35,903 $ 32,649 Supplemental information regarding the Company's leases follows: For the Year Ended September 30, 2023 2022 2021 Cash paid for finance and operating lease liabilities: Operating cash flows from finance leases $ 259 $ 211 $ 255 Operating cash flows from operating leases 27,194 27,648 28,246 Financing cash flows from finance leases 2,642 3,691 4,134 ROU assets obtained in exchange for new finance lease liabilities 4,745 1,516 3,687 ROU assets obtained in exchange for new operating lease liabilities 8,294 10,365 16,341 September 30, 2023 2022 2021 Weighted-average remaining lease term - finance leases (years) 4.47 4.28 3.85 Weighted-average remaining lease term - operating leases (years) 3.52 3.62 3.82 Weighted-discount rate - finance leases 4.48 % 3.08 % 2.70 % Weighted-discount rate - operating leases 3.47 % 2.45 % 2.28 % |
Schedule of Maturities of Operating Lease Obligations | Maturities of lease obligations by fiscal year were as follows as of September 30, 2023: Operating Leases Finance Leases 2024 $ 26,123 $ 3,034 2025 20,619 2,145 2026 16,027 1,695 2027 8,381 1,293 2028 4,788 877 Thereafter 3,475 1,263 Total future minimum lease payments 79,413 10,307 Less: Interest 5,241 1,036 Present value of lease liabilities: $ 74,172 $ 9,271 |
Schedule of Maturities of Finance Lease Obligations | Maturities of lease obligations by fiscal year were as follows as of September 30, 2023: Operating Leases Finance Leases 2024 $ 26,123 $ 3,034 2025 20,619 2,145 2026 16,027 1,695 2027 8,381 1,293 2028 4,788 877 Thereafter 3,475 1,263 Total future minimum lease payments 79,413 10,307 Less: Interest 5,241 1,036 Present value of lease liabilities: $ 74,172 $ 9,271 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swap Contracts Reflected in Consolidated Balance Sheets | At September 30, 2023 and 2022, derivative instruments were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: September 30, 2023 September 30, 2022 Interest Rate Swaps Cross-Currency Swaps Interest Rate Swaps Cross-Currency Swaps Current assets: Other current assets $ 920 $ — $ 3,358 $ — Long-term assets: Other assets 3,086 — 7,341 3,722 Long-term liabilities: Other liabilities — (2,766) — — Total derivatives $ 4,006 $ (2,766) $ 10,699 $ 3,722 |
Interest Rate Contracts | The following table presents information related to interest rate swaps entered into by the Company and designated as cash flow hedges: September 30, 2023 September 30, 2022 Notional amount $ 175,000 $ 125,000 Weighted-average maturity period (years) 4.1 3.1 Weighted-average received rate 5.32 % 3.14 % Weighted-average pay rate 3.83 % 1.04 % |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Activity | The transactions for restricted shares and restricted share units for the year ended September 30, 2023 were as follows: Shares Weighted- Non-vested at September 30, 2022 1,459,233 $ 33.78 Granted 618,050 27.69 Vested (211,158) 34.94 Expired or forfeited (137,428) 40.89 Non-vested at September 30, 2023 1,728,697 $ 30.90 |
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, 2023 | |
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: 2023 2022 2021 Net income (loss) attributable to Matthews shareholders $ 39,291 $ (99,774) $ 2,910 Weighted-average shares outstanding (in thousands): Basic shares 30,795 31,367 31,696 Effect of dilutive securities 494 — 291 Diluted shares 31,289 31,367 31,987 Dividends declared per common share $ 0.92 $ 0.88 $ 0.86 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022: Pension Other Postretirement 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation, beginning of year $ 36,609 $ 293,926 $ 12,813 $ 18,841 Acquisitions (1) — 9,829 — — Service cost 163 392 76 165 Interest cost 497 1,127 644 411 Actuarial gain (512) (19,978) (641) (5,989) Settlement (24,242) (242,232) — — Exchange loss (gain) 979 (3,093) — — Benefit payments (598) (3,362) (517) (615) Benefit obligation, end of year (2) 12,896 36,609 12,375 12,813 Change in plan assets: Fair value, beginning of year — 208,344 — — Actual return — 368 — — Benefit payments (598) (3,362) (517) (615) Employer contributions 24,840 36,882 517 615 Settlement (24,242) (242,232) — — Fair value, end of year — — — — Funded status (12,896) (36,609) (12,375) (12,813) Unrecognized actuarial (gain) loss (1,518) 5,140 (5,906) (5,973) Unrecognized prior service (credit) cost — (4,815) (956) (1,320) Net amount recognized $ (14,414) $ (36,284) $ (19,237) $ (20,106) Amounts recognized in the consolidated balance sheet: Current liability $ (68) $ (24,172) $ (876) $ (830) Noncurrent benefit liability (12,828) (12,437) (11,499) (11,983) Accumulated other comprehensive (income) loss (1,518) 325 (6,862) (7,293) Net amount recognized $ (14,414) $ (36,284) $ (19,237) $ (20,106) Amounts recognized in accumulated other comprehensive (income) loss: Net actuarial (gain) loss $ (1,518) $ 5,140 $ (5,906) $ (5,973) Prior service (credit) cost — (4,815) (956) (1,320) Net amount recognized $ (1,518) $ 325 $ (6,862) $ (7,293) (1) Fiscal 2022 reflects benefit obligations assumed in connection with the acquisition of OLBRICH and R+S Automotive. For additional information, see Note 21. (2) Gains and losses related to changes in assumptions (e.g., discount rate, mortality, etc.), asset, salary and other experience, and curtailments impacted benefit obligations. |
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 2023 2022 2021 2023 2022 2021 Service cost $ 163 $ 392 $ 7,919 $ 76 $ 165 $ 201 Interest cost * 497 1,127 6,145 644 411 376 Expected return on plan assets * — (1,040) (10,809) — — — Amortization: Prior service cost — (152) (127) (364) (364) (364) Net actuarial (gain) loss * (64) 469 9,769 (708) — — Curtailment gain * — — (220) — — — Special termination benefits * — — 315 — — — Prior-service cost write-offs * — — 261 — — — Settlement* 1,271 30,856 — — — — Net benefit cost $ 1,867 $ 31,652 $ 13,253 $ (352) $ 212 $ 213 * Non-service components of pension and postretirement expense are included in other income (deductions), net. |
Contributions During Fiscal Year | Contributions made in fiscal 2023 are as follows: Contributions Pension Other Postretirement Supplemental retirement plan $ 23,469 $ — Other retirement plans 1,371 — Other postretirement plan — 517 |
Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans | The weighted-average assumptions for those plans were: Pension Other Postretirement 2023 2022 2021 2023 2022 2021 Discount rate 4.13 % 4.01 % 2.79 % 5.86 % 5.37 % 2.83 % Return on plan assets — % — % 3.10 % — — — Compensation increase — % — % 3.50 % — — — |
Benefit Payments Expected to be Paid | Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits Other Postretirement Benefits 2024 $ 616 $ 876 2025 623 896 2026 628 910 2027 637 893 2028 650 893 2029-2033 3,499 4,287 $ 6,653 $ 8,755 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023, 2022, and 2021 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Cash Flow Hedges Total Attributable to Matthews: Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification 39,822 (3,322) 1,873 38,373 Amounts reclassified from AOCI 7,202 (a) (48) (b) 2,453 (b) 9,607 Net current-period OCI 47,024 (3,370) 4,326 47,980 Balance, September 30, 2021 $ (35,930) $ (155,251) $ (1,558) $ (192,739) OCI before reclassification 17,851 (46,817) 8,148 (20,818) Amounts reclassified from AOCI 23,261 (a) (1,242) (b) 1,347 (b) 23,366 Net current-period OCI 41,112 (48,059) 9,495 2,548 Balance, September 30, 2022 $ 5,182 $ (203,310) $ 7,937 $ (190,191) OCI before reclassification 1,476 13,979 3,056 18,511 Amounts reclassified from AOCI 102 (a) (865) (b) (1,961) (b) (2,724) Net current-period OCI 1,578 13,114 1,095 15,787 Balance, September 30, 2023 $ 6,760 $ (190,196) $ 9,032 $ (174,404) Attributable to noncontrolling interest: Balance, September 30, 2020 $ — $ 368 $ — $ 368 OCI before reclassification — (127) — (127) Net current-period OCI — (127) — (127) Balance, September 30, 2021 $ — $ 241 $ — $ 241 OCI before reclassification — 14 — 14 Net current-period OCI — 14 — 14 Balance, September 30, 2022 $ — $ 255 $ — $ 255 OCI before reclassification — 11 — 11 Net current-period OCI — 11 — 11 Balance, September 30, 2023 $ — $ 266 $ — $ 266 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 15). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 11). Accumulated other comprehensive loss at September 30, 2023 and 2022 consisted of the following: 2023 2022 Cumulative foreign currency translation $ (190,196) $ (203,310) Fair value of cash flow hedges, net of tax of $1,015 and $2,762, respectively 9,032 7,937 Minimum pension liabilities, net of tax of $1,620 and $1,786, respectively 6,760 5,182 $ (174,404) $ (190,191) |
Reclassifications out of AOCI | Reclassifications out of AOCI for the years ended September 30, 2023, 2022 and 2021 were as follows: Details about AOCI Components September 30, 2023 September 30, 2022 September 30, 2021 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 364 $ 516 $ 491 Actuarial gains (losses) 772 (469) (9,769) Other income (deductions), net Prior service cost write-off — — (261) Other income (deductions), net Settlement losses (1,271) (30,856) — Other income (deductions), net (135) (30,809) (9,539) Income before income tax (b) 33 7,548 2,337 Income taxes $ (102) $ (23,261) $ (7,202) Net income Derivatives Cash flow hedges $ 2,626 $ (1,786) $ (3,249) Interest expense Net investment hedges 1,159 1,645 63 Interest expense 3,785 (141) (3,186) Income before income tax (b) (959) 36 781 Income taxes $ 2,826 $ (105) $ (2,405) 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 15. (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, 2023 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The income tax provision (benefit) consisted of the following: 2023 2022 2021 Current: Federal $ 13,967 $ 13,481 $ (3,741) State 4,381 4,676 3,579 Foreign 5,052 10,414 2,379 23,400 28,571 2,217 Deferred: Federal (14,466) (24,239) 5,829 State (1,887) (3,895) 169 Foreign (5,273) (4,828) (1,840) (21,626) (32,962) 4,158 Total $ 1,774 $ (4,391) $ 6,375 |
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: 2023 2022 2021 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Effect of state income taxes, net of federal deduction 3.8 % 0.2 % 37.5 % Foreign statutory taxes compared to federal statutory rate (0.7) % 1.6 % (18.6) % Share-based compensation 3.6 % (1.1) % 24.5 % Termination of SERP — % — % 28.6 % Tax credits (7.0) % 1.2 % (26.6) % Sale of SERP-related investments — % — % 23.8 % Goodwill write-down — % (11.2) % — % Tax rate differential on net operating loss carryback — % — % (21.4) % Nontaxable income (7.5) % 0.8 % (9.9) % Utilization of foreign losses with valuation allowance (5.6) % — % — % Other * (3.3) % (8.3) % 10.1 % Effective tax rate 4.3 % 4.2 % 69.0 % * In Fiscal 2022, "Other" primarily consists of foreign net operating losses that had a full valuation allowance. |
Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities at September 30, 2023 and 2022 are as follows: 2023 2022 Deferred tax assets: Pension and postretirement benefits $ 5,544 $ 9,051 Accruals and reserves not currently deductible 11,158 10,909 Income tax credit carryforward 4,970 5,796 Operating and capital loss carryforwards 59,956 54,875 Stock options 8,007 7,103 Research and development capitalization 11,028 — Other 3,016 50 Total deferred tax assets 103,679 87,784 Valuation allowances (22,506) (27,552) Net deferred tax assets 81,173 60,232 Deferred tax liabilities: Depreciation (23,547) (27,317) Unrealized gains and losses (2,969) (2,793) Goodwill and intangible assets (97,415) (98,715) Revenue recognized over time (21,226) (10,847) Other (5,002) (9,539) Total deferred tax liabilities (150,159) (149,211) Net deferred tax liability $ (68,986) $ (88,979) |
Changes in Gross Unrecognized Tax Benefits | Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2023 2022 2021 Balance, beginning of year $ 4,123 $ 2,807 $ 10,483 Increases for tax positions of prior years 100 1,393 — Decreases for tax positions of prior years — (200) (288) Increases based on tax positions related to the current year 769 551 628 Decreases due to lapse of statute of limitation (1,213) (428) (8,016) Balance, end of year $ 3,779 $ 4,123 $ 2,807 |
Summary of Income Tax Contingencies | As of September 30, 2023, the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2020 and forward United States - State 2019 and forward Canada 2019 and forward Germany 2019 and forward United Kingdom 2022 and forward Australia 2018 and forward Singapore 2019 and forward |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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: 2023 2022 2021 Current assets: Accounts receivable $ 26,457 $ 74,013 $ (13,423) Inventories (23,990) (23,459) (12,839) Other current assets (26,724) (15,770) (15,618) (24,257) 34,784 (41,880) Current liabilities: Trade accounts payable (9,215) 7,437 29,621 Accrued compensation (648) (10,760) 10,791 Accrued income taxes 3,343 5,745 601 Other current liabilities (4,726) (7,616) 13,849 (11,246) (5,194) 54,862 Net change $ (35,503) $ 29,590 $ 12,982 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Information about the Company's segments follows: Memorialization Industrial Technologies SGK Brand Solutions Corporate and Non-Operating Consolidated Sales to external customers: 2023 $ 842,997 $ 505,751 $ 532,148 $ — $ 1,880,896 2022 840,124 335,523 586,756 — 1,762,403 2021 769,016 284,495 617,519 — 1,671,030 Intersegment sales: 2023 — 1,829 1,073 — 2,902 2022 — 1,057 1,295 — 2,352 2021 — 2,146 2,376 — 4,522 Depreciation and amortization: 2023 23,738 23,184 44,842 4,766 96,530 2022 23,228 11,387 64,173 5,268 104,056 2021 23,043 11,427 93,665 5,377 133,512 Adjusted EBITDA: 2023 163,986 66,278 57,128 (61,583) 225,809 2022 151,849 56,762 60,120 (58,323) 210,408 2021 165,653 34,889 91,435 (64,227) 227,750 Total assets: 2023 794,129 482,444 572,601 38,207 1,887,381 2022 800,666 414,019 631,291 36,795 1,882,771 2021 807,215 285,710 874,001 65,152 2,032,078 Capital expenditures: 2023 16,868 16,253 14,589 2,888 50,598 2022 28,899 13,646 14,287 4,489 61,321 2021 11,969 8,620 11,775 1,949 34,313 A reconciliation of adjusted EBITDA to net income follows: 2023 2022 2021 Total Adjusted EBITDA $ 225,809 $ 210,408 $ 227,750 Acquisition and divestiture related items (1)** (5,293) (7,898) (541) Strategic initiatives and other charges (2)** (13,923) (28,060) (28,998) Non-recurring / incremental COVID-19 costs (3)*** — (2,985) (5,312) Highly inflationary accounting losses (primarily non-cash) (4) (1,360) (1,473) — Defined benefit plan termination related items (5) — 429 — Asset write-downs, net (6) — (10,050) — Goodwill write-downs (7) — (82,454) — Stock-based compensation (17,308) (17,432) (15,581) Non-service pension and postretirement expense (8) (1,640) (31,823) (5,837) Depreciation and amortization * (96,530) (104,056) (133,512) Interest expense, including RPA and factoring financing fees (9) (48,690) (28,771) (28,684) Net loss attributable to noncontrolling interests (155) (54) (52) Income (loss) before income taxes 40,910 (104,219) 9,233 Income tax (provision) benefit (1,774) 4,391 (6,375) Net income (loss) $ 39,136 $ (99,828) $ 2,858 (1) Includes certain non-recurring costs associated with recent acquisition and divestiture activity, and also includes a gain of $1,827 in fiscal year 2023 related to the divestiture of a business in the Industrial Technologies segment. (2) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels and costs associated with global ERP system integration efforts, net of loss recoveries of $2,154 in fiscal year 2023 related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015. (3) 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. (4) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries. (5) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. (6) Represents asset write-downs, net of recoveries within the SGK Brand Solutions segment (see Note 23, "Asset Write-Downs"). (7) Represents goodwill write-downs within the SGK Brand Solutions segment (see Note 22, "Goodwill and Other Intangible Assets"). (8) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement 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 and settlement 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 or settlements of plan obligations. 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. (9) Includes fees for receivables sold under the RPA and factoring arrangements totaling $4,042 and $1,046 for the fiscal years ended September 30, 2023 and 2022, respectively. * Depreciation and amortization was $23,738, $23,228, and $23,043 for the Memorialization segment, $23,184, $11,387, and $11,427 for the Industrial Technologies segment, $44,842, $64,173, and $93,665 for the SGK Brand Solutions segment, and $4,766, $5,268, and $5,377 for Corporate and Non-Operating, for the fiscal years ended September 30, 2023, 2022, and 2021, respectively. ** Acquisition and divestiture costs, ERP integration costs, and strategic initiatives and other charges were $1,002, $3,517, and $1,923 for the Memorialization segment, $4,108, $5,631, and $4,026 for the Industrial Technologies segment, $10,905, $19,359, and $12,323 for the SGK Brand Solutions segment, and $3,201, $7,451, and $11,267 for Corporate and Non-Operating, for the fiscal years ended September 30, 2023, 2022, and 2021, respectively. *** Non-recurring/incremental COVID-19 costs were $1,314, and $3,646 for the Memorialization segment, $6, and $38 for the Industrial Technologies segment, $1,199, and $1,539 for the SGK Brand Solutions segment, and $466, and $89 for Corporate and Non-Operating, for the fiscal years ended September 30, 2022, and 2021 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: 2023 $ 1,219,238 $ 5,260 $ 572,736 $ 19,913 $ 63,749 $ 1,880,896 2022 1,230,267 4,729 444,606 21,206 61,595 1,762,403 2021 1,141,396 5,036 446,274 23,568 54,756 1,671,030 Long-lived assets: 2023 806,182 11,690 255,748 14,099 41,194 1,128,913 2022 822,566 10,787 242,614 14,895 42,778 1,133,640 2021 890,545 14,226 277,655 21,012 55,598 1,259,036 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Attributable to Each Segment | Changes to goodwill during the years ended September 30, 2023 and 2022, follow. Memorialization Industrial Technologies SGK Brand Solutions Consolidated Net goodwill at September 30, 2021 $ 366,360 $ 92,577 $ 314,850 $ 773,787 Additions during period — 17,013 — 17,013 Translation and other adjustments (4,578) (2,568) (25,779) (32,925) Goodwill write-down — — (82,454) (82,454) Net goodwill at September 30, 2022 361,782 107,022 206,617 675,421 Additions during period 2,322 6,757 2,100 11,179 Divestiture during period — (2,525) — (2,525) Translation and other adjustments 1,911 3,819 8,304 14,034 Net goodwill at September 30, 2023 $ 366,015 $ 115,073 $ 217,021 $ 698,109 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2023 and 2022, respectively. Carrying Accumulated Net September 30, 2023 Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 151,185 (122,474) 28,711 Customer relationships 378,161 (280,910) 97,251 Copyrights/patents/other 19,375 (15,399) 3,976 $ 579,261 $ (418,783) $ 160,478 September 30, 2022 Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 150,528 (117,572) 32,956 Customer relationships 380,593 (248,464) 132,129 Copyrights/patents/other 20,878 (14,349) 6,529 $ 582,539 $ (380,385) $ 202,154 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 12 Months Ended |
Sep. 30, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
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 | $ 15,560 | $ 15,536 | $ 13,206 |
Other Nonoperating Income (Expense) | |||
Foreign Currency [Abstract] | |||
Exchange loss due to highly inflationary accounting | 1,360 | 1,473 | |
Turkish Subsidiaries | |||
Foreign Currency [Abstract] | |||
Net monetary assets | $ 4,271 | $ 5,022 | |
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 - Acc
ACCOUNTING PRONOUNCEMENTS - Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit loss, beginning balance | $ 10,138 | $ 10,654 | $ 9,618 |
Charged to Expense | 1,625 | 1,368 | 2,182 |
Charged to other Accounts | 0 | 0 | 0 |
Deductions | (979) | (1,884) | (1,146) |
Allowance for credit loss, ending balance | $ 10,784 | $ 10,138 | $ 10,654 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 1,880,896 | $ 1,762,403 | $ 1,671,030 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,219,238 | 1,230,267 | 1,141,396 |
Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,260 | 4,729 | 5,036 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 572,736 | 444,606 | 446,274 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 19,913 | 21,206 | 23,568 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 63,749 | 61,595 | 54,756 |
Memorialization | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 842,997 | 840,124 | 769,016 |
Memorialization | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 799,153 | 788,791 | 710,926 |
Memorialization | Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Memorialization | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 32,745 | 41,184 | 47,858 |
Memorialization | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 11,099 | 10,149 | 10,232 |
Memorialization | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Industrial Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 505,751 | 335,523 | 284,495 |
Industrial Technologies | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 164,334 | 155,977 | 142,516 |
Industrial Technologies | Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Industrial Technologies | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 333,759 | 172,985 | 135,612 |
Industrial Technologies | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Industrial Technologies | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 7,658 | 6,561 | 6,367 |
SGK Brand Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 532,148 | 586,756 | 617,519 |
SGK Brand Solutions | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 255,751 | 285,499 | 287,954 |
SGK Brand Solutions | Central and South America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 5,260 | 4,729 | 5,036 |
SGK Brand Solutions | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 206,232 | 230,437 | 262,804 |
SGK Brand Solutions | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 8,814 | 11,057 | 13,336 |
SGK Brand Solutions | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 56,091 | $ 55,034 | $ 48,389 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Benchmark | Product Concentration Risk | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 15% | 12% | 11% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Assets: | ||
Equity and fixed income mutual funds | $ 699 | $ 0 |
Life insurance policies | $ 19,040 | $ 18,808 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Total assets | Total assets |
Liabilities: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | |
Recurring | ||
Assets: | ||
Derivatives | $ 4,006 | $ 14,421 |
Equity and fixed income mutual funds | 699 | 0 |
Life insurance policies | 4,926 | 4,439 |
Total assets at fair value | 9,631 | 18,860 |
Liabilities: | ||
Derivatives | 2,766 | |
Total liabilities at fair value | 2,766 | |
Recurring | Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Life insurance policies | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | |
Total liabilities at fair value | 0 | |
Recurring | Level 2 | ||
Assets: | ||
Derivatives | 4,006 | 14,421 |
Equity and fixed income mutual funds | 699 | 0 |
Life insurance policies | 4,926 | 4,439 |
Total assets at fair value | 9,631 | 18,860 |
Liabilities: | ||
Derivatives | 2,766 | |
Total liabilities at fair value | 2,766 | |
Recurring | Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Life insurance policies | 0 | 0 |
Total assets at fair value | 0 | $ 0 |
Liabilities: | ||
Derivatives | 0 | |
Total liabilities at fair value | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Inventories, net [Abstract] | ||
Raw materials | $ 70,451 | $ 52,586 |
Work in process | 108,400 | 94,804 |
Finished goods | 81,558 | 78,050 |
Inventories | $ 260,409 | $ 225,440 |
INVESTMENTS - Non-Current Inves
INVESTMENTS - Non-Current Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 699 | $ 0 |
Life insurance policies | 4,926 | 4,439 |
Equity-method investments | 323 | 2,729 |
Other (primarily cost-method) investments | 19,040 | 18,808 |
Total non-current investments | $ 24,988 | $ 25,976 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, net | $ 270,326 | $ 256,065 |
Buildings, Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 637,898 | 614,831 |
Less accumulated depreciation | (416,663) | (404,548) |
Total property, plant and equipment, net | 221,235 | 210,283 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 144,585 | 137,827 |
Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 493,313 | 477,004 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 20,943 | 20,209 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 28,148 | $ 25,573 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 54,462 | $ 46,972 | $ 49,279 |
DEBT AND FINANCING ARRANGEMEN_3
DEBT AND FINANCING ARRANGEMENTS - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 790,180 | $ 798,568 |
Finance lease obligations | 9,271 | 7,066 |
Less current maturities | (3,696) | (3,277) |
Total long-term debt and capital lease obligations, excluding current maturities | 786,484 | 795,291 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 298,500 | 297,961 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | 19,241 | 13,434 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 463,168 | $ 480,107 |
DEBT AND FINANCING ARRANGEMEN_4
DEBT AND FINANCING ARRANGEMENTS - Narrative (Details) | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 EUR (€) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | |
Debt Instrument [Line Items] | ||||
Other borrowings | $ 790,180,000 | $ 798,568,000 | ||
Receivables Purchase Agreement | ||||
Debt Instrument [Line Items] | ||||
Facility limit | 125,000,000 | |||
Gain (loss) on sale of financing receivable | 0 | |||
Receivables sold to purchasers | 101,800,000 | 96,590,000 | ||
Unsold receivables | 57,897,000 | $ 44,262,000 | ||
Principal amount of receivables sold | 55,159,000 | |||
Factored accounts receivable, outstanding | $ 18,045,000 | |||
Line of Credit | March 2020 Debt Amendment | ||||
Debt Instrument [Line Items] | ||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 5.95% | 5.95% | 3.13% | 3.13% |
2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 299,625,000 | |||
Fixed interest rate (as a percent) | 5.25% | 5.25% | ||
Debt issuance costs | $ 1,125,000 | $ 1,664,000 | ||
Other borrowings | $ 298,500,000 | $ 297,961,000 | ||
Other borrowings | ||||
Debt Instrument [Line Items] | ||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.95% | 2.95% | 1.85% | 1.85% |
Other borrowings | $ 19,241,000 | $ 13,434,000 | ||
Revolving Credit Facility | March 2020 Debt Amendment | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount drawn In foreign currency | 350,000,000 | |||
Unamortized costs | $ 949,000 | 1,522,000 | ||
Revolving Credit Facility | March 2020 Debt Amendment | SOFR | ||||
Debt Instrument [Line Items] | ||||
Rate spread adjustment (as a percent) | 0.10% | |||
Interest rate during period (as a percent) | 1.25% | |||
Revolving Credit Facility | March 2020 Debt Amendment | Minimum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate (as a percent) | 0.75% | |||
Revolving Credit Facility | March 2020 Debt Amendment | Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate (as a percent) | 0.75% | |||
Revolving Credit Facility | March 2020 Debt Amendment | Maximum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate (as a percent) | 2% | |||
Revolving Credit Facility | March 2020 Debt Amendment | Maximum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate (as a percent) | 2% | |||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Other borrowings | $ 463,168,000 | 480,107,000 | ||
Revolving Credit Facility | Line of Credit | March 2020 Debt Amendment | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of borrowings available | $ 750,000,000 | |||
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 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Annual commitment fee range on unused portion | 0.30% | |||
Standby Letters of Credit | Line of Credit | March 2020 Debt Amendment | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of borrowings available | $ 55,000,000 | |||
Foreign Line of Credit | Credit Facility With European Bank | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of borrowings available | 10,576,000 | € 10,000,000 | ||
Outstanding borrowings | 0 | $ 8,050,000 | € 8,200,000 | |
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.25% | 2.25% | ||
Foreign Line of Credit | Bank Guarantees | Credit Facility With European Bank | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of borrowings available | $ 19,566,000 | € 18,500,000 |
DEBT AND FINANCING ARRANGEMEN_5
DEBT AND FINANCING ARRANGEMENTS - Summary of Receivables Sold (Details) - Receivables Purchase Agreement - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Gross receivables sold | $ 393,493 | $ 424,789 |
Cash collections reinvested | (388,283) | (328,199) |
Net cash proceeds received | $ 5,210 | $ 96,590 |
DEBT AND FINANCING ARRANGEMEN_6
DEBT AND FINANCING ARRANGEMENTS - Aggregate Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 3,696 | |
2025 | 406,032 | |
2026 | 303,256 | |
2027 | 1,101 | |
2028 | 1,198 | |
Thereafter | 65,626 | |
Aggregate maturities long-term debt | 780,909 | |
Finance lease liabilities | 9,271 | $ 7,066 |
Long-term debt | $ 790,180 | $ 798,568 |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities, Lessee (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Lease Assets [Abstract] | ||
Finance lease, right-of-use asset | $ 10,804 | $ 10,727 |
Operating lease right-of-use-assets | 71,629 | 71,974 |
Total lease assets | 82,433 | 82,701 |
Lease Liabilities [Abstract] | ||
Finance lease, liability, current | 2,683 | 2,284 |
Current portion of operating lease liabilities | 23,983 | 22,869 |
Finance lease, liability, noncurrent | 6,588 | 4,782 |
Operating lease liabilities | 50,189 | 51,445 |
Total lease liabilities | $ 83,443 | $ 81,380 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term debt, current maturities | Long-term debt, current maturities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease, Cost [Abstract] | |||
Amortization of ROU assets | $ 2,791 | $ 3,816 | $ 4,016 |
Interest on lease liabilities | 248 | 205 | 248 |
Operating lease cost | 21,546 | 21,675 | 21,716 |
Variable lease cost | 10,601 | 10,486 | 6,752 |
Sublease income | (89) | (279) | (83) |
Total lease cost | 35,097 | 35,903 | 32,649 |
Cash paid for finance and operating lease liabilities: | |||
Operating cash flows from finance leases | 259 | 211 | 255 |
Operating cash flows from operating leases | 27,194 | 27,648 | 28,246 |
Financing cash flows from finance leases | 2,642 | 3,691 | 4,134 |
ROU assets obtained in exchange for new finance lease liabilities | 4,745 | 1,516 | 3,687 |
ROU assets obtained in exchange for new operating lease liabilities | $ 8,294 | $ 10,365 | $ 16,341 |
Weighted Average Remaining Lease Term [Abstract] | |||
Weighted-average remaining lease term - finance leases (years) | 4 years 5 months 19 days | 4 years 3 months 10 days | 3 years 10 months 6 days |
Weighted-average remaining lease term - operating leases (years) | 3 years 6 months 7 days | 3 years 7 months 13 days | 3 years 9 months 25 days |
Weighted Average Discount Rate [Abstract] | |||
Weighted-discount rate - finance leases | 4.48% | 3.08% | 2.70% |
Weighted-discount rate - operating leases | 3.47% | 2.45% | 2.28% |
LEASES - Maturities of Lease Ob
LEASES - Maturities of Lease Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Operating Leases | ||
2024 | $ 26,123 | |
2025 | 20,619 | |
2026 | 16,027 | |
2027 | 8,381 | |
2028 | 4,788 | |
Thereafter | 3,475 | |
Total future minimum lease payments | 79,413 | |
Less: Interest | 5,241 | |
Present value of lease liabilities: | 74,172 | |
Finance Leases | ||
2024 | 3,034 | |
2025 | 2,145 | |
2026 | 1,695 | |
2027 | 1,293 | |
2028 | 877 | |
Thereafter | 1,263 | |
Total future minimum lease payments | 10,307 | |
Less: Interest | 1,036 | |
Present value of lease liabilities: | $ 9,271 | $ 7,066 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Interest Rate Swap Contracts Reflected in Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Interest Rate Swaps | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ 4,006 | $ 10,699 |
Cross-Currency Swaps | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | (2,766) | 3,722 |
Other current assets | Interest Rate Swaps | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 920 | 3,358 |
Other current assets | Cross-Currency Swaps | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 0 | 0 |
Other assets | Interest Rate Swaps | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 3,086 | 7,341 |
Other assets | Cross-Currency Swaps | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 0 | 3,722 |
Other liabilities | Interest Rate Swaps | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 0 | 0 |
Other liabilities | Cross-Currency Swaps | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ (2,766) | $ 0 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Interest Rate Contracts (Details) - Interest Rate Swaps - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 175,000 | $ 125,000 | $ 175,000 |
Weighted-average maturity period (years) | 4 years 1 month 6 days | 3 years 1 month 6 days | |
Weighted-average received rate | 5.32% | 3.14% | |
Weighted-average pay rate | 3.83% | 1.04% |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) contract | Sep. 30, 2022 USD ($) contract | Sep. 30, 2021 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Economic hedge contracts, outstanding | contract | 0 | 0 | ||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (deductions), net | |||
Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Unrealized gain expected to be recognized over the next 12 months | $ 3,850 | |||
Not Designated as Hedging Instrument, Economic Hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain from economic hedges | $ 4,677 | |||
Interest Rate Swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Cash proceeds from cross currency swap | $ 10,474 | |||
Derivative, notional amount | $ 175,000 | 175,000 | 125,000 | |
Net unrealized gain on derivative | 4,006 | 10,699 | ||
Net unrealized gain on derivative, after tax | 2,991 | 7,937 | ||
Cross-Currency Swaps | Net Investment Hedging | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | 81,392 | |||
Net gains (losses) recognized in AOCI (effective portion) | (2,065) | 2,782 | ||
Net investment hedge, gain, after reclassification, tax expense (benefit) | 701 | (940) | ||
Currency translation adjustment gain, recognized as income | $ 5,370 | |||
Derivative asset, noncurrent | 2,766 | 3,722 | ||
Currency translation adjustment, tax | $ 1,743 | |||
Cross-Currency Swaps | Net Investment Hedging | Designated as Hedging Instrument | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Currency translation adjustment gain, recognized as income | 1,159 | $ 1,645 | ||
LIBOR-Based Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Unrecognized gain on derivative | 8,084 | |||
Unrecognized gain on derivative, after tax | $ 6,041 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - Class A common stock - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
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 remaining for repurchase (in shares) | 1,195,013 |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Nov. 30, 2021 | |
Share-based compensation, aggregate disclosures [Abstract] | ||||
Total stock-based compensation cost | $ 17,308 | $ 17,432 | $ 15,581 | |
Restricted Stock | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Percent of shares vested on time | 43% | |||
Stock Options | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Award vesting period | 3 years | |||
Expiration period (in years) | 5 years | |||
Equity Incentive Plan 2017 | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Term of plan (in years) | 10 years | |||
Shares reserved for future issuance under award plan (in shares) | 3,450,000 | |||
Shares issued (in shares) | 496,508 | |||
Grants in period (in shares) | 75,000 | 75,000 | ||
Share-based awards outstanding (in shares) | 1,803,697 | |||
Grants in period, exercise price (in dollars per share) | $ 41.70 | |||
Equity Incentive Plan 2017 | Time-Based Restricted Share Units | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Grants in period (in shares) | 1,041,615 | |||
Equity Incentive Plan 2017 | Performance-Based Restricted Share Units | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Grants in period (in shares) | 1,313,162 | |||
All Plans | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Total stock-based compensation cost | $ 17,308 | 17,432 | $ 15,581 | |
Future income tax benefit from compensation expense recognized | 3,821 | $ 3,821 | $ 3,247 | |
Unrecognized compensation cost on unvested awards | $ 18,305 | |||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 1 year 10 months 24 days | |||
All Plans | Restricted Stock | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Grants in period (in shares) | 618,050 | |||
Unvested shares (in shares) | 1,728,697 | 1,459,233 | ||
Amended 2017 Plan | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Percentage of outstanding stock, maximum | 200% | |||
Director Fee Plans | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Shares deferred under the director fee plan (in shares) | 45,218 | |||
Value of annual stock-based grant | $ 140 | |||
Director Fee Plans | Restricted Stock | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Grants in period (in shares) | 336,127 | |||
2019 Director Fee Plan | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Shares reserved for future issuance under award plan (in shares) | 300,000 | |||
Annual retainer fee paid to non-employee directors | $ 90 | |||
Annual retainer fee paid to non-employee chairman of the board | $ 210 | |||
2019 Director Fee Plan | Restricted Stock | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Grants in period (in shares) | 162,898 | |||
Unvested shares (in shares) | 60,057 | |||
Tranche One | Restricted Stock | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Vesting percentage | 50% | |||
Tranche One | Stock Options | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Vesting percentage | 33.33% | |||
Tranche Two | Restricted Stock | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Vesting percentage | 25% | |||
Tranche Two | Stock Options | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Vesting percentage | 33.33% | |||
Tranche Three | Restricted Stock | ||||
Share-based compensation, aggregate disclosures [Abstract] | ||||
Vesting percentage | 25% | |||
Tranche Three | Stock Options | ||||
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, 2023 $ / shares shares | |
Shares | |
Non-vested at beginning of period (in shares) | shares | 1,459,233 |
Granted (in shares) | shares | 618,050 |
Vested (in shares) | shares | (211,158) |
Expired or forfeited (in shares) | shares | (137,428) |
Non-vested at end of period (in shares) | shares | 1,728,697 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 33.78 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 27.69 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 34.94 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 40.89 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 30.90 |
SHARE-BASED PAYMENTS - Assumpti
SHARE-BASED PAYMENTS - Assumptions Used in Estimating Fair Value (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Restricted Share Units | |
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 |
Stock Options | |
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 Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Matthews shareholders | $ 39,291 | $ (99,774) | $ 2,910 |
Weighted-average shares outstanding (in thousands): | |||
Basic shares (in shares) | 30,795 | 31,367 | 31,696 |
Effect of dilutive securities (in shares) | 494 | 0 | 291 |
Diluted shares (in shares) | 31,289 | 31,367 | 31,987 |
Dividends declared per common share (in dollars per share) | $ 0.92 | $ 0.88 | $ 0.86 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT PLANS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash charge (in excess of) | $ (24,242) | $ (35,706) | $ 0 | ||
Contribution plan expense | 13,297 | 12,442 | 9,186 | ||
DB Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 35,706 | ||||
Benefit payments | 185,958 | ||||
Settlement | $ 56,274 | ||||
Non-cash charge (in excess of) | 30,856 | ||||
SERP, DB, and ORRP Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit payments | $ 24,242 | ||||
Non-cash charge (in excess of) | $ 1,271 | ||||
Pension | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | 24,840 | 36,882 | |||
Benefit payments | 598 | 3,362 | |||
Settlement | 24,242 | 242,232 | |||
Non-cash charge (in excess of) | 1,271 | 30,856 | 0 | ||
Accumulated benefit obligation | 12,896 | 36,609 | |||
Projected benefit obligation | 12,896 | 36,609 | |||
Other Postretirement | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | 517 | 615 | |||
Benefit payments | 517 | 615 | |||
Settlement | 0 | 0 | |||
Non-cash charge (in excess of) | $ 0 | $ 0 | $ 0 | ||
Per capita cost of health care benefits assumed for next fiscal year (as a percent) | 7% | ||||
Ultimate health care cost trend rate (as a percent) | 4% | ||||
Nonqualified Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contribution plan expense | $ 1,385 |
PENSION AND OTHER POSTRETIREM_4
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | $ 36,609 | $ 293,926 | |
Acquisitions | 0 | 9,829 | |
Service cost | 163 | 392 | $ 7,919 |
Interest cost | 497 | 1,127 | 6,145 |
Actuarial gain | (512) | (19,978) | |
Settlement | (24,242) | (242,232) | |
Exchange loss (gain) | 979 | (3,093) | |
Benefit payments | (598) | (3,362) | |
Benefit obligation, end of year | 12,896 | 36,609 | 293,926 |
Change in plan assets: | |||
Fair value, beginning of year | 0 | 208,344 | |
Actual return | 0 | 368 | |
Benefit payments | (598) | (3,362) | |
Employer contributions | 24,840 | 36,882 | |
Settlement | (24,242) | (242,232) | |
Fair value, end of year | 0 | 0 | 208,344 |
Funded status | (12,896) | (36,609) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (68) | (24,172) | |
Noncurrent benefit liability | (12,828) | (12,437) | |
Accumulated other comprehensive (income) loss | (1,518) | 325 | |
Net amount recognized | (14,414) | (36,284) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Actuarial loss | (1,518) | 5,140 | |
Prior service (credit) cost | 0 | (4,815) | |
Other Postretirement | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 12,813 | 18,841 | |
Acquisitions | 0 | 0 | |
Service cost | 76 | 165 | 201 |
Interest cost | 644 | 411 | 376 |
Actuarial gain | (641) | (5,989) | |
Settlement | 0 | 0 | |
Exchange loss (gain) | 0 | 0 | |
Benefit payments | (517) | (615) | |
Benefit obligation, end of year | 12,375 | 12,813 | 18,841 |
Change in plan assets: | |||
Fair value, beginning of year | 0 | 0 | |
Actual return | 0 | 0 | |
Benefit payments | (517) | (615) | |
Employer contributions | 517 | 615 | |
Settlement | 0 | 0 | |
Fair value, end of year | 0 | 0 | $ 0 |
Funded status | (12,375) | (12,813) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (876) | (830) | |
Noncurrent benefit liability | (11,499) | (11,983) | |
Accumulated other comprehensive (income) loss | (6,862) | (7,293) | |
Net amount recognized | (19,237) | (20,106) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Actuarial loss | (5,906) | (5,973) | |
Prior service (credit) cost | $ (956) | $ (1,320) |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (deductions), net | Other income (deductions), net | Other income (deductions), net |
Non-cash charge (in excess of) | $ (24,242) | $ (35,706) | $ 0 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 163 | 392 | 7,919 |
Interest cost | 497 | 1,127 | 6,145 |
Expected return on plan assets | 0 | (1,040) | (10,809) |
Prior service cost | 0 | (152) | (127) |
Net actuarial loss | (64) | 469 | 9,769 |
Curtailment gain | 0 | 0 | (220) |
Special termination benefits | 0 | 0 | 315 |
Prior-service cost write-off | 0 | 0 | 261 |
Non-cash charge (in excess of) | 1,271 | 30,856 | 0 |
Net benefit cost | 1,867 | 31,652 | 13,253 |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 76 | 165 | 201 |
Interest cost | 644 | 411 | 376 |
Expected return on plan assets | 0 | 0 | 0 |
Prior service cost | (364) | (364) | (364) |
Net actuarial loss | (708) | 0 | 0 |
Curtailment gain | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 |
Prior-service cost write-off | 0 | 0 | 0 |
Non-cash charge (in excess of) | 0 | 0 | 0 |
Net benefit cost | $ (352) | $ 212 | $ 213 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT PLANS - Contributions During Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Supplemental retirement plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | $ 23,469 |
Other Postretirement | 0 |
Other retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 1,371 |
Other Postretirement | 0 |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 0 |
Other Postretirement | $ 517 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.13% | 4.01% | 2.79% |
Return on plan assets | 0% | 0% | 3.10% |
Compensation increase | 0% | 0% | 3.50% |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.86% | 5.37% | 2.83% |
Return on plan assets | 0% | 0% | 0% |
Compensation increase | 0% | 0% | 0% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT PLANS - Benefit Payments Expected to be Paid (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 616 |
2025 | 623 |
2026 | 628 |
2027 | 637 |
2028 | 650 |
2029-2033 | 3,499 |
Total | 6,653 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 876 |
2025 | 896 |
2026 | 910 |
2027 | 893 |
2028 | 893 |
2029-2033 | 4,287 |
Total | $ 8,755 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 487,076 | $ 636,403 | $ 611,433 |
Net current-period OCI | 15,798 | 2,562 | 47,853 |
Ending Balance | 525,281 | 487,076 | 636,403 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (190,191) | (192,739) | (240,719) |
OCI before reclassification | 18,511 | (20,818) | 38,373 |
Amounts reclassified from AOCI | (2,724) | 23,366 | 9,607 |
Net current-period OCI | 15,787 | 2,548 | 47,980 |
Ending Balance | (174,404) | (190,191) | (192,739) |
Postretirement Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 5,182 | (35,930) | (82,954) |
OCI before reclassification | 1,476 | 17,851 | 39,822 |
Amounts reclassified from AOCI | 102 | 23,261 | 7,202 |
Net current-period OCI | 1,578 | 41,112 | 47,024 |
Ending Balance | 6,760 | 5,182 | (35,930) |
Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (203,310) | (155,251) | (151,881) |
OCI before reclassification | 13,979 | (46,817) | (3,322) |
Amounts reclassified from AOCI | (865) | (1,242) | (48) |
Net current-period OCI | 13,114 | (48,059) | (3,370) |
Ending Balance | (190,196) | (203,310) | (155,251) |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 7,937 | (1,558) | (5,884) |
OCI before reclassification | 3,056 | 8,148 | 1,873 |
Amounts reclassified from AOCI | (1,961) | 1,347 | 2,453 |
Net current-period OCI | 1,095 | 9,495 | 4,326 |
Ending Balance | 9,032 | 7,937 | (1,558) |
Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 255 | 241 | 368 |
OCI before reclassification | 11 | 14 | (127) |
Net current-period OCI | 11 | 14 | (127) |
Ending Balance | 266 | 255 | 241 |
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 | 255 | 241 | 368 |
OCI before reclassification | 11 | 14 | (127) |
Net current-period OCI | 11 | 14 | (127) |
Ending Balance | 266 | 255 | 241 |
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, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ 525,668 | $ 487,352 |
Fair value of derivatives, tax | 1,015 | 2,762 |
Pension liability, tax | (1,620) | (1,786) |
Cumulative foreign currency translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (190,196) | (203,310) |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | 9,032 | 7,937 |
Minimum pension liabilities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | 6,760 | 5,182 |
Accumulated Other Comprehensive (Loss) Income (net of tax) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ (174,404) | $ (190,191) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of goods and services sold | $ (1,303,224) | $ (1,240,125) | $ (1,129,198) |
Other income (deductions), net | (2,559) | (32,557) | (4,117) |
Income (loss) before income taxes | 40,910 | (104,219) | 9,233 |
Income tax (provision) benefit | (1,774) | 4,391 | (6,375) |
Net income (loss) | 39,136 | (99,828) | 2,858 |
Interest expense | (44,648) | (27,725) | (28,684) |
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 | (135) | (30,809) | (9,539) |
Income tax (provision) benefit | 33 | 7,548 | 2,337 |
Net income (loss) | (102) | (23,261) | (7,202) |
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 | 364 | 516 | 491 |
Actuarial gains (losses) | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (deductions), net | 772 | (469) | (9,769) |
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 | 0 | 0 | (261) |
Settlement losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (deductions), net | (1,271) | (30,856) | 0 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income taxes | 3,785 | (141) | (3,186) |
Income tax (provision) benefit | (959) | 36 | 781 |
Net income (loss) | 2,826 | (105) | (2,405) |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | 2,626 | (1,786) | (3,249) |
Net investment hedge | Reclassification out of Accumulated Other Comprehensive Income | Cross-Currency Swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ 1,159 | $ 1,645 | $ 63 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current: | |||
Federal | $ 13,967 | $ 13,481 | $ (3,741) |
State | 4,381 | 4,676 | 3,579 |
Foreign | 5,052 | 10,414 | 2,379 |
Total provision for income taxes, current | 23,400 | 28,571 | 2,217 |
Deferred: | |||
Federal | (14,466) | (24,239) | 5,829 |
State | (1,887) | (3,895) | 169 |
Foreign | (5,273) | (4,828) | (1,840) |
Deferred | (21,626) | (32,962) | 4,158 |
Total | $ 1,774 | $ (4,391) | $ 6,375 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Federal Statutory Tax Rate to Consolidated Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21% | 21% | 21% |
Effect of state income taxes, net of federal deduction | 3.80% | 0.20% | 37.50% |
Foreign statutory taxes compared to federal statutory rate | (0.70%) | 1.60% | (18.60%) |
Share-based compensation | 3.60% | (1.10%) | 24.50% |
Termination of SERP | 0% | 0% | 28.60% |
Tax credits | (7.00%) | 1.20% | (26.60%) |
Sale of SERP-related investments | 0% | 0% | 23.80% |
Goodwill write-down | 0% | (11.20%) | 0% |
Tax rate differential on net operating loss carryback | 0% | 0% | (21.40%) |
Nontaxable income | (7.50%) | 0.80% | (9.90%) |
Tax rate differential on net operating loss carryback | (5.60%) | 0% | 0% |
Other | (3.30%) | (8.30%) | 10.10% |
Effective tax rate | 4.30% | 4.20% | 69% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) | $ 1,774 | $ (4,391) | $ 6,375 |
Foreign subsidiaries income (loss) before income taxes | 43,090 | (47,653) | $ 6,685 |
Undistributed earnings of foreign subsidiaries | 368,306 | ||
Valuation allowances | 22,506 | 27,552 | |
Unrecognized tax benefits | 3,779 | ||
Change in unrecognized tax benefits | 2,648 | ||
Total penalties and interest accrued | 730 | $ 876 | |
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of operating loss carryforwards | 292,206 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of operating loss carryforwards | $ 2,756 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 5,544 | $ 9,051 |
Accruals and reserves not currently deductible | 11,158 | 10,909 |
Income tax credit carryforward | 4,970 | 5,796 |
Operating and capital loss carryforwards | 59,956 | 54,875 |
Stock options | 8,007 | 7,103 |
Research and development capitalization | 11,028 | 0 |
Other | 3,016 | 50 |
Total deferred tax assets | 103,679 | 87,784 |
Valuation allowances | (22,506) | (27,552) |
Net deferred tax assets | 81,173 | 60,232 |
Deferred tax liabilities: | ||
Depreciation | (23,547) | (27,317) |
Unrealized gains and losses | (2,969) | (2,793) |
Goodwill and intangible assets | (97,415) | (98,715) |
Revenue recognized over time | (21,226) | (10,847) |
Other | (5,002) | (9,539) |
Total deferred tax liabilities | (150,159) | (149,211) |
Net deferred tax liability | $ (68,986) | $ (88,979) |
INCOME TAXES - Changes in Gross
INCOME TAXES - Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 4,123 | $ 2,807 | $ 10,483 |
Increases for tax positions of prior years | 100 | 1,393 | 0 |
Decreases for tax positions of prior years | 0 | (200) | (288) |
Increases based on tax positions related to the current year | 769 | 551 | 628 |
Decreases due to lapse of statute of limitation | (1,213) | (428) | (8,016) |
Balance, end of year | $ 3,779 | $ 4,123 | $ 2,807 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Employment Agreements | |
Long-term Purchase Commitment [Line Items] | |
Aggregate commitment amount for salaries | $ 5,838 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current assets: | |||
Accounts receivable | $ 26,457 | $ 74,013 | $ (13,423) |
Inventories | (23,990) | (23,459) | (12,839) |
Other current assets | (26,724) | (15,770) | (15,618) |
Total change in current assets | (24,257) | 34,784 | (41,880) |
Current liabilities: | |||
Trade accounts payable | (9,215) | 7,437 | 29,621 |
Accrued compensation | (648) | (10,760) | 10,791 |
Accrued income taxes | 3,343 | 5,745 | 601 |
Other current liabilities | (4,726) | (7,616) | 13,849 |
Total change in current liabilities | (11,246) | (5,194) | 54,862 |
Net change | $ (35,503) | $ 29,590 | $ 12,982 |
SEGMENT INFORMATION - Informati
SEGMENT INFORMATION - Information about the Company's Segments (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reporting segments | segment | 3 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 1,880,896 | $ 1,762,403 | $ 1,671,030 |
Depreciation and amortization | 96,530 | 104,056 | 133,512 |
Adjusted EBITDA | 225,809 | 210,408 | 227,750 |
Total assets | 1,887,381 | 1,882,771 | 2,032,078 |
Capital expenditures | 50,598 | 61,321 | 34,313 |
Memorialization | |||
Segment Reporting Information [Line Items] | |||
Sales | 842,997 | 840,124 | 769,016 |
Industrial Technologies | |||
Segment Reporting Information [Line Items] | |||
Sales | 505,751 | 335,523 | 284,495 |
SGK Brand Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 532,148 | 586,756 | 617,519 |
Operating Segments | Memorialization | |||
Segment Reporting Information [Line Items] | |||
Sales | 842,997 | 840,124 | 769,016 |
Depreciation and amortization | 23,738 | 23,228 | 23,043 |
Adjusted EBITDA | 163,986 | 151,849 | 165,653 |
Total assets | 794,129 | 800,666 | 807,215 |
Capital expenditures | 16,868 | 28,899 | 11,969 |
Operating Segments | Industrial Technologies | |||
Segment Reporting Information [Line Items] | |||
Sales | 505,751 | 335,523 | 284,495 |
Depreciation and amortization | 23,184 | 11,387 | 11,427 |
Adjusted EBITDA | 66,278 | 56,762 | 34,889 |
Total assets | 482,444 | 414,019 | 285,710 |
Capital expenditures | 16,253 | 13,646 | 8,620 |
Operating Segments | SGK Brand Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 532,148 | 586,756 | 617,519 |
Depreciation and amortization | 44,842 | 64,173 | 93,665 |
Adjusted EBITDA | 57,128 | 60,120 | 91,435 |
Total assets | 572,601 | 631,291 | 874,001 |
Capital expenditures | 14,589 | 14,287 | 11,775 |
Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,902 | 2,352 | 4,522 |
Intersegment Sales | Memorialization | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | 0 |
Intersegment Sales | Industrial Technologies | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,829 | 1,057 | 2,146 |
Intersegment Sales | SGK Brand Solutions | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,073 | 1,295 | 2,376 |
Corporate and Non-Operating | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | 0 |
Depreciation and amortization | 4,766 | 5,268 | 5,377 |
Adjusted EBITDA | (61,583) | (58,323) | (64,227) |
Total assets | 38,207 | 36,795 | 65,152 |
Capital expenditures | $ 2,888 | $ 4,489 | $ 1,949 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Net Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | $ 225,809 | $ 210,408 | $ 227,750 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Acquisition and divestiture costs | (5,293) | (7,898) | (541) | ||
Strategic initiatives and other charges | (13,923) | (28,060) | (28,998) | ||
Non-recurring / incremental COVID-19 costs | 0 | (2,985) | (5,312) | ||
Highly inflationary accounting losses (primarily non-cash) | (1,360) | (1,473) | 0 | ||
Defined benefit plan termination related items | 0 | 429 | 0 | ||
Asset write-downs, net | 0 | (10,050) | 0 | ||
Goodwill write-downs | 0 | (82,454) | 0 | ||
Stock-based compensation | (17,308) | (17,432) | (15,581) | ||
Non-service pension and postretirement expense | (1,640) | (31,823) | (5,837) | ||
Depreciation and amortization | (96,530) | (104,056) | (133,512) | ||
Interest expense | (48,690) | (28,771) | (28,684) | ||
Net loss attributable to noncontrolling interests | (155) | (54) | (52) | ||
Income (loss) before income taxes | 40,910 | (104,219) | 9,233 | ||
Income tax (provision) benefit | (1,774) | 4,391 | (6,375) | ||
Net income (loss) | 39,136 | (99,828) | 2,858 | ||
Gain on divestitures | 2,980 | 3,390 | 412 | ||
Loss recovery | 2,154 | ||||
RPA financing fees | 4,042 | 1,046 | |||
Memorialization | |||||
Non-Operating Income and Expenses [Abstract] | |||||
Goodwill write-downs | 0 | ||||
Industrial Technologies | |||||
Non-Operating Income and Expenses [Abstract] | |||||
Goodwill write-downs | 0 | ||||
Gain on divestitures | $ 1,827 | 1,827 | |||
SGK Brand Solutions | |||||
Non-Operating Income and Expenses [Abstract] | |||||
Goodwill write-downs | $ 82,454 | (82,454) | |||
Operating Segments | Memorialization | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | 163,986 | 151,849 | 165,653 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (1,314) | (3,646) | |||
Depreciation and amortization | (23,738) | (23,228) | (23,043) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 1,002 | 3,517 | 1,923 | ||
Operating Segments | Industrial Technologies | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | 66,278 | 56,762 | 34,889 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (6) | (38) | |||
Depreciation and amortization | (23,184) | (11,387) | (11,427) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 4,108 | 5,631 | 4,026 | ||
Operating Segments | SGK Brand Solutions | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | 57,128 | 60,120 | 91,435 | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (1,199) | (1,539) | |||
Depreciation and amortization | (44,842) | (64,173) | (93,665) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 10,905 | 19,359 | 12,323 | ||
Corporate, Non-Segment | |||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | |||||
Adjusted EBITDA | (61,583) | (58,323) | (64,227) | ||
Non-Operating Income and Expenses [Abstract] | |||||
Non-recurring / incremental COVID-19 costs | (466) | (89) | |||
Depreciation and amortization | (4,766) | (5,268) | (5,377) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | $ 3,201 | $ 7,451 | $ 11,267 |
SEGMENT INFORMATION - Informa_2
SEGMENT INFORMATION - Information about the Company's Operations by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 1,880,896 | $ 1,762,403 | $ 1,671,030 |
Long-lived assets | 1,128,913 | 1,133,640 | 1,259,036 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,219,238 | 1,230,267 | 1,141,396 |
Long-lived assets | 806,182 | 822,566 | 890,545 |
Central and South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 5,260 | 4,729 | 5,036 |
Long-lived assets | 11,690 | 10,787 | 14,226 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 572,736 | 444,606 | 446,274 |
Long-lived assets | 255,748 | 242,614 | 277,655 |
Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 19,913 | 21,206 | 23,568 |
Long-lived assets | 14,099 | 14,895 | 21,012 |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 63,749 | 61,595 | 54,756 |
Long-lived assets | $ 41,194 | $ 42,778 | $ 55,598 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Feb. 28, 2023 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2022 EUR (€) | Apr. 30, 2021 USD ($) | Jan. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Proceeds from divestitures | $ 6,700 | $ 344 | $ 0 | ||||||||
Gain on divestitures | 2,980 | 3,390 | 412 | ||||||||
Cash payment to acquire business | 15,341 | $ 44,469 | $ 15,623 | ||||||||
OLBRICH and R+S Automotive | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payment to acquire business | $ 44,469 | € 43.7 | |||||||||
Revenues | $ 140,000 | ||||||||||
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 | ||||||||||
Industrial Technologies | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from divestitures | $ 6,700 | ||||||||||
Gain on divestitures | 1,827 | $ 1,827 | |||||||||
Contingent consideration receivable | $ 2,250 | ||||||||||
Contingent consideration receivable, contingency period | 2 years | ||||||||||
Cash payment to acquire business | $ 4,759 | ||||||||||
Memorialization | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payment to acquire business | $ 8,650 | ||||||||||
Purchase price | 18,384 | ||||||||||
Deferred purchase price amount | $ 9,734 | ||||||||||
Deferred purchase price amount, payment term | 2 years | ||||||||||
Contingent consideration liability | $ 1,030 | ||||||||||
Contingent consideration liability, payment term | 4 years | ||||||||||
SGK Brand Solutions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payment to acquire business | $ 1,932 |
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 | ||
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Roll Forward] | ||||
Goodwill beginning of period | $ 675,421 | $ 773,787 | ||
Additions during period | 11,179 | 17,013 | ||
Divestiture during period | (2,525) | |||
Translation and other adjustments | 14,034 | (32,925) | ||
Goodwill write-downs | 0 | (82,454) | $ 0 | |
Goodwill end of period | $ 675,421 | 698,109 | 675,421 | 773,787 |
Memorialization | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning of period | 361,782 | 366,360 | ||
Additions during period | 2,322 | 0 | ||
Divestiture during period | 0 | |||
Translation and other adjustments | 1,911 | (4,578) | ||
Goodwill write-downs | 0 | |||
Goodwill end of period | 361,782 | 366,015 | 361,782 | 366,360 |
Industrial Technologies | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning of period | 107,022 | 92,577 | ||
Additions during period | 6,757 | 17,013 | ||
Divestiture during period | (2,525) | |||
Translation and other adjustments | 3,819 | (2,568) | ||
Goodwill write-downs | 0 | |||
Goodwill end of period | 107,022 | 115,073 | 107,022 | 92,577 |
SGK Brand Solutions | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning of period | 206,617 | 314,850 | ||
Additions during period | 2,100 | 0 | ||
Divestiture during period | 0 | |||
Translation and other adjustments | 8,304 | (25,779) | ||
Goodwill write-downs | 82,454 | (82,454) | ||
Goodwill end of period | $ 206,617 | $ 217,021 | $ 206,617 | $ 314,850 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 01, 2023 | Jan. 01, 2023 | |
Goodwill [Line Items] | ||||||
Accumulated goodwill impairment loss | $ 261,186 | $ 261,186 | $ 261,186 | |||
Goodwill write-down | 0 | 82,454 | $ 0 | |||
Amortization expense on intangible assets | 42,068 | 57,084 | $ 84,233 | |||
Future amortization expense [Abstract] | ||||||
Future amortization expense 2024 | 35,380 | |||||
Future amortization expense 2025 | 20,394 | |||||
Future amortization expense 2026 | 14,158 | |||||
Future amortization expense 2027 | 13,081 | |||||
Future amortization expense 2028 | 11,030 | |||||
SGK Brand Solutions | ||||||
Goodwill [Line Items] | ||||||
Percent of fair value exceeding carrying value | 4% | 9% | ||||
Memorialization | ||||||
Goodwill [Line Items] | ||||||
Accumulated goodwill impairment loss | 5,000 | 5,000 | 5,000 | |||
Goodwill write-down | 0 | |||||
Industrial Technologies | ||||||
Goodwill [Line Items] | ||||||
Accumulated goodwill impairment loss | 23,946 | 23,946 | 23,946 | |||
Goodwill write-down | 0 | |||||
SGK Brand Solutions | ||||||
Goodwill [Line Items] | ||||||
Accumulated goodwill impairment loss | 232,240 | $ 232,240 | 232,240 | |||
Goodwill write-down | $ (82,454) | $ 82,454 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 579,261 | $ 582,539 |
Accumulated Amortization | (418,783) | (380,385) |
Net | 160,478 | 202,154 |
Definite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 151,185 | 150,528 |
Accumulated Amortization | (122,474) | (117,572) |
Net | 28,711 | 32,956 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 378,161 | 380,593 |
Accumulated Amortization | (280,910) | (248,464) |
Net | 97,251 | 132,129 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 19,375 | 20,878 |
Accumulated Amortization | (15,399) | (14,349) |
Net | 3,976 | 6,529 |
Indefinite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 30,540 | 30,540 |
Net | $ 30,540 | $ 30,540 |
ASSET WRITE-DOWNS (Details)
ASSET WRITE-DOWNS (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Asset write-downs | $ 0 | $ 10,050,000 | $ 0 |
Assets, carrying value | 0 | ||
Cost of Sales | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Asset write-downs | 9,686,000 | ||
General and Administrative Expense | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Asset write-downs | $ 364,000 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred Tax Assets, Dissolved | |||
Valuation and qualifying accounts [Roll Forward] | |||
Valuation allowance, increase (decrease) | $ (5,004) | ||
Deferred Tax Assets, Net Operating Loss | |||
Valuation and qualifying accounts [Roll Forward] | |||
Valuation allowance, increase (decrease) | 3,704 | ||
Allowance for Doubtful Accounts: | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | $ 10,138 | 10,654 | $ 9,618 |
(Credited) Charged to Expense | 1,625 | 1,368 | 2,182 |
Additions charged to other accounts | 0 | 0 | 0 |
Other (Deductions) Additions | (979) | (1,884) | (1,146) |
Balance at End of Period | 10,784 | 10,138 | 10,654 |
Deferred Tax Asset Valuation Allowance: | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | 27,552 | 28,619 | 22,527 |
(Credited) Charged to Expense | (4,709) | (1,300) | 5,709 |
Additions charged to other accounts | 0 | 0 | 0 |
Other (Deductions) Additions | (337) | 233 | 383 |
Balance at End of Period | $ 22,506 | $ 27,552 | $ 28,619 |
Uncategorized Items - matw-2023
Label | Element | Value |
Revolving Credit Facility [Member] | March 2020 Debt Amendment [Member] | Euro Denominated Borrowings [Member] | ||
Long-Term Line of Credit | us-gaap_LineOfCredit | $ 58,168,000 |
Long-Term Line of Credit | us-gaap_LineOfCredit | $ 45,000,000 |
Long-Term Line of Credit | us-gaap_LineOfCredit | $ 55,000,000 |
Long-Term Line of Credit | us-gaap_LineOfCredit | $ 44,097,000 |
Revolving Credit Facility [Member] | March 2020 Debt Amendment [Member] | U.S. Dollar Denominated Borrowings [Member] | ||
Long-Term Line of Credit | us-gaap_LineOfCredit | 405,000,000 |
Long-Term Line of Credit | us-gaap_LineOfCredit | $ 427,960,000 |