Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 18, 2021 | Mar. 31, 2021 | |
Cover Abstract | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-33288 | ||
Entity Registrant Name | HAYNES INTERNATIONAL INC | ||
Entity Central Index Key | 0000858655 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 06-1185400 | ||
Entity Address, Address Line One | 1020 West Park Avenue | ||
Entity Address, City or Town | Kokomo | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46904-9013 | ||
City Area Code | 765 | ||
Local Phone Number | 456-6000 | ||
Title of 12(b) Security | Common Stock, par value $.001 per share | ||
Trading Symbol | HAYN | ||
Security Exchange Name | NASDAQ | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 264,030,452 | ||
Entity Common Stock, Shares Outstanding | 12,565,790 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 47,726 | $ 47,238 |
Accounts receivable, less allowance for doubtful accounts of $545 and $553 at September 30, 2020 and September 30, 2021, respectively | 57,964 | 51,118 |
Inventories | 248,495 | 246,124 |
Income taxes receivable | 1,292 | 3,770 |
Other current assets | 6,129 | 3,285 |
Total current assets | 361,606 | 351,535 |
Property, plant and equipment, net | 147,248 | 159,819 |
Deferred income taxes | 16,397 | 30,551 |
Other assets | 10,829 | 8,974 |
Goodwill | 4,789 | 4,789 |
Other intangible assets, net | 5,586 | 5,056 |
Total assets | 546,455 | 560,724 |
Current liabilities: | ||
Accounts payable | 47,680 | 17,555 |
Accrued expenses | 20,100 | 14,757 |
Income taxes payable | 379 | |
Accrued pension and postretirement benefits | 3,554 | 3,403 |
Deferred revenue-current portion | 2,500 | 2,500 |
Total current liabilities | 74,213 | 38,215 |
Long-term obligations (less current portion) | 8,301 | 8,509 |
Deferred revenue (less current portion) | 10,329 | 12,829 |
Deferred income taxes | 3,459 | 2,131 |
Operating lease liabilities | 664 | 1,719 |
Accrued pension benefits (less current portion) | 26,663 | 105,788 |
Accrued postretirement benefits (less current portion) | 79,505 | 90,032 |
Total liabilities | 203,134 | 259,223 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (40,000,000 shares authorized, 12,681,280 and 12,757,778 shares issued and 12,622,371 and 12,562,140 shares outstanding at September 30, 2020 and September 30, 2021, respectively) | 13 | 13 |
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0 shares issued and outstanding) | ||
Additional paid-in capital | 262,057 | 257,583 |
Accumulated earnings | 101,015 | 120,943 |
Treasury stock, 58,909 shares at September 30, 2020 and 195,638 shares at September 30, 2021 | (7,423) | (2,437) |
Accumulated other comprehensive loss | (12,341) | (74,601) |
Total stockholders' equity | 343,321 | 301,501 |
Total liabilities and stockholders' equity | $ 546,455 | $ 560,724 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 553 | $ 545 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,757,778 | 12,681,280 |
Common stock, shares outstanding (in shares) | 12,562,140 | 12,622,371 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 195,638 | 58,909 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net revenues | $ 337,661 | $ 380,530 | $ 490,215 |
Cost of sales | 297,931 | 335,898 | 424,712 |
Gross profit | 39,730 | 44,632 | 65,503 |
Selling, general and administrative expense | 43,470 | 40,307 | 44,195 |
Research and technical expense | 3,403 | 3,713 | 3,592 |
Operating income (loss) | (7,143) | 612 | 17,716 |
Nonoperating retirement benefit expense | 1,470 | 6,822 | 3,446 |
Interest income | (16) | (44) | (86) |
Interest expense | 1,186 | 1,332 | 986 |
Income (loss) before income taxes | (9,783) | (7,498) | 13,370 |
Provision for (benefit from) income taxes | (1,100) | (1,020) | 3,625 |
Net income (loss) | $ (8,683) | $ (6,478) | $ 9,745 |
Net income (loss) per share: | |||
Basic (dollars per share) | $ (0.71) | $ (0.53) | $ 0.78 |
Diluted (dollars per share) | $ (0.71) | $ (0.53) | $ 0.78 |
Weighted Average Common Shares Outstanding | |||
Basic (in shares) | 12,499,609 | 12,470,664 | 12,445,212 |
Diluted (in shares) | 12,499,609 | 12,470,664 | 12,480,908 |
Dividends declared per common share (dollars per share) | $ 0.88 | $ 0.88 | $ 0.88 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (8,683) | $ (6,478) | $ 9,745 |
Other comprehensive income (loss), net of tax: | |||
Pension and postretirement | 59,006 | 15,630 | (34,453) |
Foreign currency translation adjustment | 3,254 | 3,690 | (3,620) |
Other comprehensive income (loss) | 62,260 | 19,320 | (38,073) |
Comprehensive income (loss) | $ 53,577 | $ 12,842 | $ (28,328) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | AdjustmentAccumulated Earnings | AdjustmentAccumulated Other Comprehensive Income (Loss) | Common Stock | Additional Paid-in Capital | Accumulated Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Sep. 30, 2018 | $ 13 | $ 251,053 | $ 126,588 | $ (1,869) | $ (42,565) | $ 333,220 | ||
Balance (in shares) at Sep. 30, 2018 | 12,504,478 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 9,745 | 9,745 | ||||||
Dividends paid and accrued ($0.88 and $0.88 and $0.88 per share for the year ended September 30, 2019 and 2020 and 2021, respectively) | (11,037) | (11,037) | ||||||
Other comprehensive income (loss) | (38,073) | (38,073) | ||||||
Exercise of stock options | 215 | 215 | ||||||
Exercise of stock options (in shares) | 12,084 | |||||||
Issue restricted stock (less forfeitures) (in shares) | 8,294 | |||||||
Purchase of treasury stock | (370) | (370) | ||||||
Purchase of treasury stock (in shares) | (11,356) | |||||||
Stock compensation | 2,575 | 2,575 | ||||||
Balance (ASU 2018-02) at Sep. 30, 2019 | $ 13,283 | $ (13,283) | ||||||
Balance at Sep. 30, 2019 | $ 13 | 253,843 | 125,296 | (2,239) | (80,638) | 296,275 | ||
Balance (in shares) at Sep. 30, 2019 | 12,513,500 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (6,478) | (6,478) | ||||||
Dividends paid and accrued ($0.88 and $0.88 and $0.88 per share for the year ended September 30, 2019 and 2020 and 2021, respectively) | (11,158) | (11,158) | ||||||
Other comprehensive income (loss) | 19,320 | 19,320 | ||||||
Exercise of stock options | 422 | 422 | ||||||
Exercise of stock options (in shares) | 12,400 | |||||||
Issue restricted stock (less forfeitures) (in shares) | 101,911 | |||||||
Purchase of treasury stock | (198) | (198) | ||||||
Purchase of treasury stock (in shares) | (5,440) | |||||||
Stock compensation | 3,318 | 3,318 | ||||||
Balance at Sep. 30, 2020 | $ 13 | 257,583 | 120,943 | (2,437) | (74,601) | 301,501 | ||
Balance (in shares) at Sep. 30, 2020 | 12,622,371 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (8,683) | (8,683) | ||||||
Dividends paid and accrued ($0.88 and $0.88 and $0.88 per share for the year ended September 30, 2019 and 2020 and 2021, respectively) | (11,245) | (11,245) | ||||||
Other comprehensive income (loss) | 62,260 | 62,260 | ||||||
Issue restricted stock (less forfeitures) (in shares) | 76,498 | |||||||
Purchase of treasury stock | (4,986) | (4,986) | ||||||
Purchase of treasury stock (in shares) | (136,729) | |||||||
Stock compensation | 4,474 | 4,474 | ||||||
Balance at Sep. 30, 2021 | $ 13 | $ 262,057 | $ 101,015 | $ (7,423) | $ (12,341) | $ 343,321 | ||
Balance (in shares) at Sep. 30, 2021 | 12,562,140 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||
Dividend paid (in dollars per share) | $ 0.88 | $ 0.88 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (8,683) | $ (6,478) | $ 9,745 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 19,100 | 19,422 | 18,871 |
Amortization | 467 | 228 | 255 |
Pension and post-retirement expense - U.S. and U.K. | 8,100 | 13,624 | 8,819 |
Change in long-term obligations | 9 | 97 | 316 |
Stock compensation expense | 4,474 | 3,318 | 2,575 |
Deferred revenue | (2,500) | (2,500) | (2,500) |
Deferred income taxes | (2,436) | (1,219) | 1,872 |
Loss on disposition of property | 173 | 30 | 138 |
Change in assets and liabilities: | |||
Accounts receivable | (6,159) | 26,713 | (5,002) |
Inventories | (777) | 15,283 | 11,702 |
Other assets | (4,926) | 567 | (1,080) |
Accounts payable and accrued expenses | 33,869 | (21,196) | (204) |
Income taxes | 2,859 | (2,028) | 5,534 |
Accrued pension and postretirement benefits | (20,305) | (9,664) | (7,994) |
Net cash provided by (used in) operating activities | 23,265 | 36,197 | 43,047 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (5,949) | (9,374) | (10,041) |
Net cash provided by (used in) investing activities | (5,949) | (9,374) | (10,041) |
Cash flows from financing activities: | |||
Revolving credit facility borrowings | 30,000 | 16,600 | |
Revolving credit facility repayments | (30,000) | (16,600) | |
Dividends paid | (11,175) | (11,058) | (11,011) |
Proceeds from exercise of stock options | 422 | 215 | |
Payment for purchase of treasury stock | (4,986) | (198) | (370) |
Payment for debt issuance cost | (997) | ||
Payments on long-term obligations | (285) | (297) | (150) |
Net cash provided by (used in) financing activities | (17,443) | (11,131) | (11,316) |
Effect of exchange rates on cash | 615 | 508 | (454) |
Increase (decrease) in cash and cash equivalents: | 488 | 16,200 | 21,236 |
Cash and cash equivalents: | |||
Beginning of period | 47,238 | 31,038 | 9,802 |
End of period | 47,726 | 47,238 | 31,038 |
Supplemental disclosures of cash flow information: | |||
Interest (net of capitalized interest) | 855 | 1,242 | 928 |
Income taxes paid (refunded), net | (1,580) | 2,255 | (3,650) |
Capital expenditures incurred, but not yet paid | 666 | 75 | 490 |
Dividends declared but not yet paid | $ 210 | $ 139 | $ 26 |
Background and Organization
Background and Organization | 12 Months Ended |
Sep. 30, 2021 | |
Background and Organization | |
Background and Organization | Note 1. Background and Organization Description of Business Haynes International, Inc. and its subsidiaries (the “Company”, “Haynes”, “we”, “our” or “us”) develops, manufactures, markets and distributes technologically advanced, high-performance alloys primarily for use in the aerospace, industrial gas turbine and chemical processing industries. The Company’s products are high-temperature resistant alloys (“HTA”) and corrosion-resistant alloys (“CRA”). The Company’s HTA products are used by manufacturers of equipment that is subjected to extremely high temperatures, such as jet engines for the aerospace industry, gas turbine engines for power generation, waste incineration and industrial heating equipment. The Company’s CRA products are used in applications that require resistance to extreme corrosion, such as chemical processing, power plant emissions control and hazardous waste treatment. The Company produces its high-performance alloys primarily in sheet, coil and plate forms. In addition, the Company produces its products as seamless and welded tubulars, and in slab, bar, billets and wire forms. High-performance alloys are characterized by highly engineered, often proprietary, metallurgical formulations primarily of nickel, cobalt and other metals with complex physical properties. The complexity of the manufacturing process for high-performance alloys is reflected in the Company’s relatively high average selling price per pound, compared to the average selling price of other metals, such as carbon steel sheet, stainless steel sheet and aluminum. The high-performance alloy industry has significant barriers to entry such as the combination of (i) demanding end-user specifications, (ii) a multi-stage manufacturing process and (iii) the technical sales, marketing and manufacturing expertise required to develop and sell new applications. COVID-19 Pandemic COVID-19 related disruptions |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies A. Principles of Consolidation and Nature of Operations The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated. The Company has manufacturing facilities in Kokomo, Indiana; Mountain Home, North Carolina; and Arcadia, Louisiana with service centers in LaPorte, Indiana; LaMirada, California; Houston, Texas; Windsor, Connecticut; Openshaw, England; Lenzburg, Switzerland; Shanghai, China; and sales offices in Paris, France; Singapore; Milan, Italy; and Tokyo, Japan. B. Cash and Cash Equivalents The Company considers all highly liquid investment instruments, including investments with original maturities of three months or less at acquisition, to be cash equivalents, the carrying value of which approximates fair value due to the short maturity of these investments. C. Accounts Receivable The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company markets its products to a diverse customer base, both in the United States of America and overseas. Trade credit is extended based upon evaluation of each customer’s ability to perform its obligation, which is updated periodically. D. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of customer contracts are satisfied which occurs when control of the goods has been transferred to the customer and services have been performed. Allowances for sales returns are recorded as a component of net sales in the periods in which the related sales are recognized. The Company determines this allowance based on historical experience. Additionally, the Company recognizes revenue attributable to an up-front fee received from Titanium Metals Corporation (TIMET) as a result of a twenty-year agreement entered into on November 17, 2006 to provide conversion services to TIMET. See Note 16, Deferred Revenue for a description of accounting treatment relating to this up-front fee. E. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first-in, first-out (FIFO) method. The Company writes down its inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market or scrap value, if applicable, based upon assumptions about future demand and market conditions. F. Goodwill and Other Intangible Assets The Company has goodwill, trademarks, customer relationships and other intangibles as of September 30, 2021. As the customer relationships have a definite life, they are amortized over fifteen years. The Company reviews customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for goodwill and August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of the trademarks exceeds the fair value (determined using an income approach, based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist resulting in a charge to earnings to the extent of the impairment. The impairment test for goodwill is performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment loss in the event that the carrying amount is greater than the fair value. Any goodwill impairment loss recognized would not exceed the total carrying amount of goodwill allocated to that reporting unit. No impairment was recognized in the years ended September 30, 2019, 2020 or 2021 because the fair value exceeded the carrying values. During fiscal 2019, 2020 and 2021, there were no changes in the carrying amount of goodwill. Amortization of the customer relationships and other intangibles was $255, $228 and $467 for the years ended September 30, 2019, 2020 and 2021, respectively. The following represents a summary of intangible assets at September 30, 2020 and 2021: Gross Accumulated Carrying September 30, 2020 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (858) 1,242 Other 291 (277) 14 $ 6,191 $ (1,135) $ 5,056 Gross Accumulated Carrying September 30, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (995) 1,105 Other 997 (316) 681 $ 6,897 $ (1,311) $ 5,586 Estimated future Aggregate Amortization Expense: Year Ending September 30, 2022 $ 465 2023 462 2024 142 2025 123 2026 120 Thereafter 474 G. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost with depreciation calculated primarily by using the straight-line method based on estimated economic useful lives, which are generally as follows: Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 years Expenditures for maintenance and repairs and minor renewals are charged to expense; major renewals are capitalized. Upon retirement or sale of assets, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. The Company records capitalized interest for long-term construction projects to capture the cost of capital committed prior to the placed in service date as a part of the historical cost of acquiring the asset. Interest is not capitalized when the balance on the revolver is zero. The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. No impairment was recognized during the years ended September 30, 2019, 2020 or 2021. H. Environmental Remediation When it is probable that a liability has been incurred or an asset of the Company has been impaired, a loss is recognized assuming the amount of the loss can be reasonably estimated. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations and current technology. Such estimates take into consideration the expected costs of post-closure monitoring based on historical experience. Amounts accrued for post-closure monitoring are presented in Note 19, Long-term Obligations. I. Pension and Postretirement Benefits The Company has defined benefit pension and postretirement plans covering most of its current and former employees. Significant elements in determining the assets or liabilities and related income or expense for these plans are the expected return on plan assets, the discount rate used to value future payment streams, expected trends in health care costs and other actuarial assumptions. Annually, the Company evaluates the significant assumptions to be used to value its pension and postretirement plan assets and liabilities based on current market conditions and expectations of future costs. If actual results are less favorable than those projected by management, additional expense may be required in future periods. Salaried employees hired after December 31, 2005 and hourly employees hired after June 30, 2007 are not covered by the pension plan; however, they are eligible for an enhanced matching program of the defined contribution plan (401(k)). Effective December 31, 2007, the U.S. pension plan was amended to freeze benefits for all non-union employees in the U.S. Effective September 30, 2009, the U.K. pension plan was amended to freeze benefits for employees in the plan. Effective January 1, 2007, a plan amendment of the postretirement medical plan caps the Company’s liability related to retiree health care costs at $5,000 annually. Effective October 1, 2009, the U.S. postretirement plan was closed for all non-union employees. J. Foreign Currency Exchange The Company’s foreign operating entities’ financial statements are denominated in the functional currencies of each respective country, which are the local currencies. All assets and liabilities are translated to U.S. dollars using exchange rates in effect at the end of the year, and revenues and expenses are translated at the weighted average rate for the year. Translation gains or losses are recorded as a separate component of comprehensive income (loss) and transaction gains and losses are reflected in the consolidated statements of operations. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in selling, general and administrative expense. The Company has entered into foreign currency forward contracts (See Note 21, Foreign Currency Forward Contracts) with the purpose to reduce income statement volatility resulting from transaction gains and losses. K. Research and Technical Costs Research and technical costs related to the development of new products and processes are expensed as incurred. Research and technical costs for the fiscal years ended September 30, 2019, 2020 and 2021 were $3,592, $3,713 and $3,403, respectively. L. Income Taxes The Company accounts for deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. A valuation allowance is required if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of whether or not a valuation allowance is needed is based upon an evaluation of both positive and negative evidence. In its evaluation of the need for a valuation allowance, the Company utilizes prudent and feasible tax planning strategies. The ultimate amount of deferred tax assets realized could be different from those recorded, as influenced by potential changes in enacted tax laws and the availability of future taxable income. The Company records uncertain tax positions on the basis of a two-step process whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority (See Note 7, Income Taxes). M. Stock-based Compensation As described in Note 12, the Company has incentive compensation plans that provide for the issuance of restricted stock, restricted stock units, performance shares, stock options and stock appreciation rights to key employees and non-employee directors. To date, the Company has only issued restricted stock, performance shares and stock options. The stock-based compensation grants typically have a vesting period before the employee can take receipt of the stock or becomes eligible to exercises stock options. Employees earn and receive dividends from the restricted stock during this vesting period and accumulated dividends related to performance shares are paid to the employees at the time that the shares are received by the employee after the end of the vesting period. The Company recognizes compensation expense under the fair-value based method as a component of operating expenses. N. Financial Instruments and Concentrations of Risk The Company may periodically enter into forward currency exchange contracts to minimize the variability in the Company’s operating results arising from foreign exchange rate movements. The Company does not engage in foreign currency speculation. At September 30, 2020 and 2021, the Company had no foreign currency exchange contracts outstanding. To date, all foreign currency contracts have been settled prior to the end of the month in which they were initiated. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. At September 30, 2021, and periodically throughout the year, the Company has maintained cash balances in excess of federally insured limits. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the relatively short maturity of these instruments. During 2019, 2020 and 2021, the Company did not have sales to any group of affiliated customers that were greater than 10% of net revenues. The Company generally does not require collateral with the exception of letters of credit with certain foreign sales. Credit losses amounted to $530, $139 and $74 in fiscal 2019, 2020 and 2021, respectively, and were within management’s expectations. The Company does not believe it is significantly vulnerable to the risk of near-term severe impact from business concentrations with respect to customers, suppliers, products, markets or geographic areas. O. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) 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. On an on-going basis, management evaluates its estimates and judgments, including those related to bad debts, inventories, income taxes, asset impairment, incremental borrowing rates, retirement benefits and environmental matters. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, pension asset mix and in some cases, actuarial techniques, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company routinely reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. P. Earnings Per Share The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Basic and diluted net income per share were computed as follows: Years ended September 30, (in thousands, except share and per share data) 2019 2020 2021 Numerator: Basic and Diluted Net income (loss) $ 9,745 $ (6,478) $ (8,683) Dividends (11,037) (11,158) (11,245) Undistributed income (loss) (1,292) (17,636) (19,928) Percentage allocated to common shares (a) 100.0 % 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (1,292) (17,636) (19,928) Dividends paid on common shares outstanding 10,987 11,071 11,098 Net income (loss) available to common shares 9,695 (6,565) (8,830) Denominator: Basic and Diluted Weighted average common shares outstanding 12,445,212 12,470,664 12,499,609 Adjustment for dilutive potential common shares 35,696 — — Weighted average shares outstanding - Diluted 12,480,908 12,470,664 12,499,609 Basic net income (loss) per share $ 0.78 $ (0.53) $ (0.71) Diluted net income (loss) per share $ 0.78 $ (0.53) $ (0.71) Number of stock option shares excluded as their effect would be anti-dilutive 371,151 285,699 385,548 Number of restricted stock shares excluded as their effect would be anti-dilutive — 96,999 165,794 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive — 34,498 30,529 Number of performance share awards excluded as their effect would be anti-dilutive — 47,195 76,266 (a) Common shares outstanding 12,445,212 12,470,664 12,499,609 Unvested participating shares — — — 12,445,212 12,470,664 12,499,609 Q. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) The Company elected the package of practical expedients included in this guidance which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. The Company has elected the practical expedient to not separate lease components from non-lease components for all asset classes. The Company will recognize lease expense for operating leases in the consolidated statements of operations on a straight-line basis over the lease term. The Company also made a policy election to not recognize ROU asset and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term are reflected in the lease term when it is reasonably certain that the Company will exercise such options. The Company has expanded the disclosure of operating leases included in Note 20 Leases. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income comprehensive In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Sep. 30, 2021 | |
Revenues from Contracts with Customers | |
Revenues from Contracts with Customers | Note 3. Revenues from Contracts with Customers The Company applies a five-step analysis to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company’s revenue from contracts with customers is generated primarily from providing high-performance alloys, manufactured to the specifications of its customers, along with conversion services to certain customers. Performance Obligations Revenue is recognized when performance obligations under the terms of contracts with the customer are satisfied, which occurs when control of the goods and services has been transferred to the customer. This predominately occurs upon shipment or delivery of the product or when the service is performed. The Company may occasionally have customer agreements involving production and shipment of goods that would require revenue to be recognized over time due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. As of September 30, 2020 and September 30, 2021, the Company did not have any customer agreements that would require revenue to be recorded over time. Each customer purchase order or contract for goods transferred represents a single performance obligation for which revenue is recognized at either a point in time or over-time as described in the preceding paragraph. The standard terms and conditions of a customer purchase order include limited warranties and the right of customers to have products that do not meet specifications repaired or replaced, at the Company’s option. Such warranties do not represent a separate performance obligation. The customer agreement with Titanium Metals Corporation (“TIMET”) (See Note 16) includes the performance obligation to provide conversion services for up to ten million pounds of titanium metal annually over a twenty-year period which ends in fiscal 2027. The transaction price under this contract included a $50,000 up-front fee as well as conversion service fees based upon the fulfillment of conversion services requested at the option of TIMET. The $50,000 fee is allocated to the obligation to provide manufacturing capacity over time and, therefore, is recognized in income on a straight-line basis over the 20-year Transaction Price Each customer purchase order or contract sets forth the transaction price for the products and services purchased under that arrangement. Some customer arrangements may include variable consideration, such as volume rebates, which generally depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date. Revenue is measured as the amount of consideration expected to be received in exchange for the transfer of goods or services to customers. Revenue is derived from product sales or conversion services, and is reported net of sales discounts, rebates, incentives, returns and other allowances offered to customers, if applicable. Payment terms vary from customer to customer depending upon credit worthiness, prior payment history and other credit considerations. Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer of the goods are included in revenues and costs incurred by the Company for the delivery of goods and are classified as cost of sales in the consolidated statements of operations. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. Contract Balances As of September 30, 2020 and September 30, 2021, accounts receivable with customers were $51,663 and $58,517, respectively. Allowance for doubtful accounts as of September 30, 2020 and September 30, 2021 were $545 and $553, respectively, and are presented within accounts receivable, less allowance for doubtful accounts on the consolidated balance sheet. Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the purchase order or contract. As of September 30, 2020 and September 30, 2021, no contract liabilities have been recorded except for $15,329 and $12,829, respectively, for the TIMET agreement and $1,200 and $1,060 for accrued product returns, respectively. Practical Expedients The Company has elected to use the practical expedient that permits the omission of disclosure for remaining performance obligations which are expected to be satisfied within one year or less. Aside from the TIMET agreement, the Company does not have any remaining performance obligations in excess of one year or contracts that it does not have the right to invoice as of September 30, 2021. The Company does not adjust for the time value of money as the majority of its contracts have an original expected duration of one year or less; contracts that are greater than one year are related to net revenues that are constrained until the subsequent sales occur. Disaggregation of Revenue Revenue is disaggregated by end-use markets. The following table includes a breakdown of net revenues to the markets served by the Company for the fiscal years ended September 30, 2019, 2020 and 2021. Year Ended September 30, 2019 2020 2021 Net revenues (dollars in thousands) Aerospace $ 258,104 $ 191,980 $ 128,072 Chemical processing 89,651 63,170 63,147 Industrial gas turbine 59,430 56,576 66,772 Other markets 57,946 45,099 58,090 Total product revenue 465,131 356,825 316,081 Other revenue 25,084 23,705 21,580 Net revenues $ 490,215 $ 380,530 $ 337,661 See Note 14 for revenue disaggregated by geography and product group. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2021 | |
Inventories | |
Inventories | Note 4. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first-in, first-out (“FIFO”) method. The following is a summary of the major classes of inventories: September 30, September 30, 2020 2021 Raw Materials $ 22,163 $ 22,711 Work-in-process 110,717 138,609 Finished Goods 111,744 85,797 Other 1,500 1,378 $ 246,124 $ 248,495 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment The following is a summary of the major classes of property, plant and equipment: September 30, 2020 2021 Land and land improvements $ 10,066 $ 10,266 Buildings and improvements 46,135 46,241 Machinery and equipment 301,496 306,161 Construction in process 2,705 3,344 360,402 366,012 Less accumulated depreciation (200,583) (218,764) $ 159,819 $ 147,248 As of September 30, 2020 and 2021, the Company had $138 and $145, respectively, of assets under a finance lease for equipment related to the service center operation in Shanghai, China. Additionally, the Company had $6,640 and $6,073 of assets under finance leases for two buildings at the LaPorte, Indiana service center as of September 30, 2020 and 2021, respectively . |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Sep. 30, 2021 | |
Accrued Expenses | |
Accrued Expenses | Note 6. Accrued Expenses The following is a summary of the major classes of accrued expenses: September 30, 2020 2021 Employee compensation $ 8,826 $ 9,424 Taxes, other than income taxes 2,798 2,798 Accrued product returns 1,200 1,060 Utilities 714 1,000 Professional fees 464 836 Finance lease obligation, current 195 228 Employee termination liabilities 59 — Management incentive compensation — 3,411 Other 501 1,343 $ 14,757 $ 20,100 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | Note 7. Income Taxes The components of income (loss) before provision for income taxes and the provision for income taxes are as follows: Year Ended September 30, 2019 2020 2021 Income (loss) before income taxes: U.S. $ 790 $ (9,831) $ (11,417) Foreign 12,580 2,333 1,634 Total $ 13,370 $ (7,498) $ (9,783) Provision for (benefit from) income taxes: Current: U.S. Federal $ (267) $ (371) $ 741 Foreign 2,259 541 349 State 2 29 228 Total 1,994 199 1,318 Deferred: U.S. Federal 1,423 (2,266) (2,986) Foreign 132 56 470 State 62 (810) (317) Valuation allowance 14 1,801 415 Total 1,631 (1,219) (2,418) Total provision for (benefit from) income taxes $ 3,625 $ (1,020) $ (1,100) The provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate as follows: Year Ended September 30, 2019 2020 2021 Statutory federal tax rate 21.00 % 21.00 % 21.00 % Tax provision for income taxes at the statutory rate $ 2,808 $ (1,575) $ (2,054) Foreign tax rate differentials (157) 107 (59) Provision for state taxes, net of federal taxes 247 (145) (84) U.S. tax on distributed and undistributed earnings of foreign subsidiaries 486 (289) 198 Tax credits (499) (1,058) (691) Federal and state tax rate change impact on deferred tax asset 314 (60) 790 Change in valuation allowance 14 1,801 415 Stock compensation 655 24 138 Other, net (243) 175 247 Provision for (benefit from) income taxes at effective tax rate $ 3,625 $ (1,020) $ (1,100) Effective tax rate 27.1 % 13.6 % 11.2 % During fiscal 2019, the Company’s effective tax rate was higher than the federal statutory rate primarily due to state income taxes, the global intangible low-tax income tax (GILTI) and the forfeiture of stock options, restricted stock and performance share awards that occurred during the year. During fiscal 2020, the Company’s effective tax rate was lower than the federal statutory rate primarily due to an increased valuation allowance on tax credits that are not expected to be able to be utilized before they expire. During fiscal 2021, the Company’s effective tax rate was lower than the federal statutory rate primarily due to an increase in the UK tax rate and decreases in the state tax rates and apportionment, both of which resulted in a decrease in net deferred tax assets. Deferred tax assets (liabilities) are comprised of the following: September 30, 2020 2021 Deferred tax assets: Pension and postretirement benefits $ 44,626 $ 22,318 TIMET Agreement 3,585 2,976 Inventories 2,350 1,498 Accrued compensation and benefits 1,474 2,034 Accrued expenses and other 3,703 3,376 Tax attributes 4,892 11,638 Other assets 404 299 Valuation allowance (3,476) (3,891) Total deferred tax assets $ 57,558 $ 40,248 Deferred tax liabilities: Property, plant and equipment, net $ (27,434) $ (25,669) Intangible and other (1,186) (1,296) Other liabilities (518) (345) Total deferred tax liabilities $ (29,138) $ (27,310) Net deferred tax assets (liabilities) $ 28,420 $ 12,938 As of September 30, 2021, the Company had U.S. and state tax net operating loss carryforwards of $21,048 and $23,728, respectively, tax credits of $5,895 and foreign net operating loss carryforwards of $3,010. These U.S. losses may be carried forward indefinitely. The other tax attributes begin to expire in 2026, 2022, and 2024, respectively. The Company has recorded a valuation allowance against the foreign net operating loss carryforwards of $742 and federal and state tax credits of $3,149 because management does not believe that it is more likely than not that the amounts will be realized. Undistributed earnings of certain of the Company’s foreign subsidiaries amounted to approximately $70,949 at September 30, 2021. The Company considers most of those earnings reinvested indefinitely and, accordingly, aside from the one-time transition tax associated with the Tax Cuts and Jobs Act, no additional provision for U.S. income taxes has been provided. If such funds were to be repatriated, there could be minor currency gain/loss that would be subject to tax and any distribution could also be subject to applicable non-U.S. income and withholding taxes. As of September 30, 2021, the Company is open to examination in the U.S. for the 2017 through 2021 tax years and in various foreign jurisdictions from 2016 through 2021. The Company is also open to examination in various states in the U.S., none of which were individually material. As of September 30, 2020 and 2021, the Company had no uncertain tax positions. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2021 | |
Debt | |
Debt | Note 8. Debt U.S. revolving credit facility On October 19, 2020, the Company and JPMorgan Chase Bank, N.A. entered into a Credit Agreement (the “Credit Agreement”) and related Pledge and Security Agreement with certain other lenders (the “Security Agreement”, and, together with the Credit Agreement, the “Credit Documents”). The Credit Documents, which have a three-year term expiring in October 2023, replaced the Third Amended and Restated Loan and Security Agreement and related agreements, dated as of July 14, 2011, as amended, previously entered into between the Company and Wells Fargo Capital Finance, LLC with certain other lenders. As of September 30, 2021, the Credit Agreement had a zero balance. The Credit Agreement provides for revolving loans in the maximum amount of $100.0 million, subject to a borrowing base and certain reserves. The Credit Agreement permits an increase in the maximum revolving loan amount from $100.0 million up to an aggregate amount of $170.0 million at the request of the borrower if certain conditions are met. Borrowings under the Credit Agreement bear interest, at the Company’s option, at either JPMorgan’s “prime rate”, plus 1.25% - 1.75% per annum, or the adjusted Eurodollar rate used by the lender, plus 2.25% - 2.75% per annum (with a LIBOR floor of 0.5%). Effective October 25, 2021, the Credit Agreement will replace LIBOR with SOFR as the financial services industry and market participants are transitioning away from interbank offering rates. The Company must pay monthly, in arrears, a commitment fee of 0.425% per annum on the unused amount of the U.S. revolving credit facility total commitment. For letters of credit, the Company must pay a fronting fee of 0.125% per annum as well as customary fees for issuance, amendments and processing. The Company is subject to certain covenants as to fixed charge coverage ratios and other customary covenants, including covenants restricting the incurrence of indebtedness, the granting of liens and the sale of assets. The covenant pertaining to fixed charge coverage ratios is only effective in the event the amount of excess availability under the revolver is less than the greater of (i) 12.5% of the maximum credit revolving loan amount and (ii) $12.5 million. The Company is permitted to pay dividends and repurchase common stock if certain financial metrics are met. The Company may pay quarterly cash dividends up to $3.5 million per fiscal quarter so long as the Company is not in default under the Credit Documents. Borrowings under the Credit Agreement are collateralized by a pledge of substantially all of the U.S. assets of the Company, including the equity interests in its U.S. subsidiaries, but excluding the four-high Steckel rolling mill and related assets, which are pledged to Titanium Metals Corporation (“TIMET”) to secure the performance of the Company’s obligations under a Conversion Services Agreement with TIMET (see discussion of TIMET at Note 16). Borrowings under the Credit Agreement are also secured by a pledge of a 100% equity interest in each of the Company’s direct foreign subsidiaries. The Company’s U.K. subsidiary (Haynes International Ltd.) has an overdraft facility of 1,700 Pounds Sterling ($2,285), all of which was available September 30, 2021 available September 30, 2021 available September 30, 2021. |
Pension Plan and Retirement Ben
Pension Plan and Retirement Benefits | 12 Months Ended |
Sep. 30, 2021 | |
Pension Plan and Retirement Benefits | |
Pension Plan and Retirement Benefits | Note 9. Pension Plan and Retirement Benefits Defined Contribution Plans The Company sponsors a defined contribution plan (401(k)) for substantially all U.S. employees. The Company contributes an amount equal to 50% of an employee’s contribution to the plan up to a maximum contribution of 3% of the employee’s salary, except for all salaried employees and certain hourly employees (those hired after June 30, 2007 that are not eligible for the U.S. pension plan). The Company contributes an amount equal to 60% of an employee’s contribution to the plan up to a maximum contribution of 6% of the employee’s salary for these groups. Expenses associated with this plan for the years ended September 30, 2019, 2020 and 2021 totaled $1,940, $1,950 and $1,748, respectively. The Company sponsors certain profit sharing plans for the benefit of employees meeting certain eligibility requirements. There were no contributions to these plans for the years ended September 30, 2019, 2020 and 2021. Defined Benefit Plans The Company has non-contributory defined benefit pension plans which cover certain employees in the U.S. and the U.K. Benefits provided under the Company’s U.S. defined benefit pension plan are based on years of service and the employee’s final compensation. The Company’s funding policy is to contribute annually an amount deductible for federal income tax purposes based upon an actuarial cost method using actuarial and economic assumptions designed to achieve adequate funding of benefit obligations. In fiscal 2021, the Company accelerated funding as part of its capital allocation strategy and plans to continue to accelerate funding in fiscal 2022 and possibly in fiscal 2023 if needed as it strives to achieve a zero net liability. The Company has non-qualified pensions for a few former executives of the Company. Non-qualified pension plan expense for the years ended September 30, 2019, 2020 and 2021 was $98, $57 and $37, respectively. Accrued liabilities in the amount of $681 and $623 for these benefits are included in accrued pension and postretirement benefits liability at September 30, 2020 and 2021, respectively. In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for retired employees. Certain employees, depending on date of hire, become eligible for health care, and substantially all employees become eligible for life insurance, if they reach normal retirement age while working for the Company. The Company’s liability related to total retiree health care costs is limited to $5,000 annually. The Company made contributions of $4,500, $6,000, and $21,000 to fund its domestic Company-sponsored pension plan for the years ended September 30, 2019, 2020 and 2021, respectively. The Company’s U.K. subsidiary made contributions of $737, $517 and $0 for the years ended September 30, 2019, 2020 and 2021, respectively, to the U.K. pension plan. The Company uses a September 30 measurement date for its plans. The status of employee pension benefit plans and other postretirement benefit plans is summarized below: Defined Benefit Postretirement Pension Plans Health Care Benefits Year Ended Year Ended September 30, September 30, 2020 2021 2020 2021 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 321,478 $ 345,390 $ 113,834 $ 93,339 Service cost 5,546 5,795 1,416 1,095 Interest cost 8,866 7,481 3,493 2,292 Actuarial (gains) losses 24,183 (27,225) (22,564) (10,943) Benefits paid (13,676) (14,965) (2,840) (2,819) Administrative expenses (1,007) (1,010) — — Projected benefit obligation at end of year $ 345,390 $ 315,466 $ 93,339 $ 82,964 Change in Plan Assets: Fair value of plan assets at beginning of year $ 225,917 $ 245,546 $ — $ — Actual return on assets 27,795 47,132 — — Employer contributions 6,517 21,000 2,840 2,819 Benefits paid (13,676) (14,965) (2,840) (2,819) Administrative expenses (1,007) (1,010) — — Fair value of plan assets at end of year $ 245,546 $ 297,703 $ — $ — Funded Status of Plan: Unfunded status $ (99,844) $ (17,763) $ (93,339) $ (82,964) The actuarial loss incurred during the fiscal year ended September 30, 2020 for the Defined Benefit Pension Plan was primarily driven from a decrease in the discount rate applied against future expected benefit payments which resulted in an increase in the defined benefit obligation. The actuarial gain incurred during the fiscal year ended September 30, 2021 for the Defined Benefit Pension Plan was driven by higher returns on pension assets than were expected and an increase in the discount rate which resulted in an increase in pension assets and a decrease in the defined benefit obligation. Conversely, the actuarial gains incurred during the fiscal year ended September 30, 2020 and 2021 for the Postretirement Health Care Plan was primarily driven by reductions in healthcare costs incurred over the past three years. Amounts recognized in the consolidated balance sheets are as follows: Defined Benefit Postretirement Non-Qualified All Plans Pension Plans Health Care Benefits Pension Plans Combined September 30, September 30, September 30, September 30, 2020 2021 2020 2021 2020 2021 2020 2021 Accrued pension and postretirement benefits: Current $ — $ — $ (3,307) $ (3,459) $ (96) $ (95) $ (3,403) $ (3,554) Non - (99,844) (17,763) (90,032) (79,505) (585) (528) (190,461) (97,796) Accrued pension and postretirement benefits $ (99,844) $ (17,763) $ (93,339) $ (82,964) $ (681) $ (623) $ (193,864) $ (101,350) Accumulated other comprehensive loss: Net loss 84,873 19,150 239 (10,704) — — 85,112 8,446 Prior service cost 1,837 1,599 — — — — 1,837 1,599 Total accumulated other comprehensive loss $ 86,710 $ 20,749 $ 239 $ (10,704) $ — $ — $ 86,949 $ 10,045 The non-current portion of the defined benefit pension plan portion of accrued pension and postretirement benefits amounts to $99,844 and $17,763 in fiscal 2020 and 2021, respectively. These amounts include the UK pension plan net pension asset of $5,359 and $8,372, respectively, which is included in Other assets on the consolidated balance sheets as well as the US pension plan accrued pension liability of $105,203 and $26,135, respectively, which are recorded in accrued pension benefit (less current portion) on the consolidated balance sheet. The accumulated benefit obligation for the pension plans was $333,618 and $308,284 at September 30, 2020 and 2021, respectively. The cost of the Company’s postretirement benefits is accrued over the years that employees provide service to the date of their full eligibility for such benefits. The Company’s policy is to fund the cost of claims on an annual basis. The components of net periodic pension cost and postretirement health care benefit cost are as follows: Defined Benefit Pension Plans Year Ended September 30, 2019 2020 2021 Service cost $ 5,239 $ 5,546 $ 5,628 Interest cost 10,652 8,866 7,481 Expected return on assets (14,907) (15,061) (16,356) Amortization of prior service cost 228 228 239 Recognized actuarial loss 1,449 7,288 7,721 Net periodic cost $ 2,661 $ 6,867 $ 4,713 Postretirement Health Care Benefits Year Ended September 30, 2019 2020 2021 Service cost $ 318 $ 1,416 $ 1,095 Interest cost 4,353 3,493 2,292 Recognized actuarial loss 1,487 1,848 — Net periodic cost $ 6,158 $ 6,757 $ 3,387 Assumptions A 5.0%annual rate of increase for the costs of covered health care benefits for ages under 65 and a 5.0% annual rate of increase for ages over 65 were assumed for 2020 and 2021 and remained at 5.0% for the under 65 and over 65 age groups in the years thereafter. The actuarial present value of the projected pension benefit obligation and postretirement health care benefit obligation for the plans at September 30, 2020 and 2021 were determined based on the following assumptions: September 30, September 30, 2020 2021 Discount rate (postretirement health care) 2.50 % 2.75 % Discount rate (U.S. pension plan) 2.25 % 2.63 % Discount rate (U.K. pension plan) 1.50 % 2.00 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % The net periodic pension and postretirement health care benefit costs for the plans were determined using the following assumptions: Defined Benefit Pension and Postretirement Health Care Plans Year Ended September 30, 2019 2020 2021 Discount rate (postretirement health care plan) 4.13 % 3.13 % 2.50 % Discount rate (U.S. pension plan) 4.00 % 2.88 % 2.25 % Discount rate (U.K. pension plan) 2.80 % 1.70 % 1.50 % Expected return on plan assets (U.S. pension plan) 7.25 % 7.25 % 7.25 % Expected return on plan assets (U.K. pension plan) 3.20 % 2.20 % 2.00 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % 2.50 % Plan Assets and Investment Strategy The Company’s pension plan assets by level within the fair value hierarchy at September 30, 2020 and 2021, are presented in the table below. The pension plan assets were accounted for at fair value. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in U.S and International equities, and Fixed Income are held in mutual funds and common / collective funds which are valued using net asset value (NAV) provided by the administrator of the fund, and individual fixed income securities which consists of Level 1 and Level 2 assets. During fiscal 2021, the Company transitioned its investment in fixed income securities out of common collective funds to a diversified portfolio of bonds that more closely match the duration and risk of the projected benefit obligation. As of September 30, 2021, the fixed income portfolio consisted of 257 issuances of fixed income securities from 210 issuers. For more information on a description of the fair value hierarchy, see Note 17. September 30, 2020 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ — $ — $ 74,224 $ 74,224 Common /collective funds Bonds — — 89,426 89,426 U.S. common stock — — 33,088 33,088 International equity — — 26,828 26,828 Total U.S. $ — $ — $ 223,566 $ 223,566 U.K. Plan Assets: Equities $ — $ — $ 6,594 $ 6,594 Bonds — — 12,529 12,529 Other — — 2,857 2,857 Total U.K. $ — $ — $ 21,980 $ 21,980 Total pension plan assets $ — $ — $ 245,546 $ 245,546 September 30, 2021 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. corporate and government bonds $ 23,654 $ 169,953 $ — $ 193,607 U.S. common stock mutual funds — $ — $ 44,743 $ 44,743 Common /collective funds U.S. common stock — — 19,672 19,672 International equity — — 16,245 16,245 Total U.S. $ 23,654 $ 169,953 $ 80,660 $ 274,267 U.K. Plan Assets: Equities $ — $ — $ 8,202 $ 8,202 Bonds — — 12,890 12,890 Other — — 2,344 2,344 Total U.K. $ — $ — $ 23,436 $ 23,436 Total pension plan assets $ 23,654 $ 169,953 $ 104,096 $ 297,703 The primary financial objectives of the plans are to minimize cash contributions over the long term and preserve capital while maintaining a high degree of liquidity. A secondary financial objective is, where possible, to avoid significant downside risk in the short run. The objective is based on a long-term investment horizon so that interim fluctuations should be viewed with appropriate perspective. It is the policy of the U.S. pension plan to invest assets with an allocation to equities as shown below based on a matrix which determines the allocation between equities and fixed income based on the funding percentage of the plan. The balance of the assets is maintained in fixed income investments, and in cash holdings, to the extent permitted by the plan documents. Target asset classes as a percent of total assets as of September 30, 2021: Asset Class Target (1) Equity 30 % Fixed Income 70 % Real Estate and Other — % (1) The Company adjusts the target allocation based on the fair value of pension assets as a percentage of the projected pension obligation. In October 2021, the Company adjusted the target allocation to equity assets of 19% and fixed income assets of 81%. As a result of this change in allocation, the Company anticipates an expected long-term rate of return on plan assets of 5.25% In choosing the assumption for the expected long-term rate of return on U.S. pension plan assets, the Company takes into account the plan’s target asset allocation as well as capital market assumptions relating to the asset classes. The Company believes that its assumption the long-term rate of return on plan assets is reasonable, and comparable to the asset return assumptions of other companies, given the target allocation of the plan assets. Note that over very long historical periods, the realized return on plan assets has met or exceeded the expected rate of return. Also note that in recognition of the variability of future market returns, it is reasonable to consider a modest range around the expected future return, and there exists the potential for the use of a lower, or higher, expected rates of return in the future. The U.K. pension plan assets follow a more conservative investment objective due to the higher funding status of the plan. Contributions and Benefit Payments The Company has not yet determined the amounts to contribute to its domestic pension plans, domestic other postretirement benefit plans and the U.K. pension plan in fiscal 2022. Pension and postretirement health care benefits, which include expected future service, are expected to be paid out of the respective plans as follows: Postretirement Fiscal Year Ending September 30 Pension Health Care 2022 $ 15,712 $ 5,335 2023 16,090 5,584 2024 16,471 5,486 2025 16,749 5,445 2026 16,978 5,483 2027 - 2031 (in total) 86,154 27,238 |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Note 10. Legal, Environmental and Other Contingencies Legal The Company is regularly involved in litigation, both as a plaintiff and as a defendant, relating to its business and operations, including environmental, commercial, asbestos, employment and federal and/or state Equal Employment Opportunity Commission administrative actions. Future expenditures for environmental, employment, intellectual property and other legal matters cannot be determined with any degree of certainty. Environmental The Company has received permits from the Indiana Department of Environmental Management and the North Carolina Department of Environment and Natural Resources to close and provide post-closure environmental monitoring and care for certain areas of its Kokomo, Indiana and Mountain Home, North Carolina facilities, respectively. The Company is required to, among other things, monitor groundwater and to continue post-closure maintenance of the former disposal areas at each site. As a result, the Company is aware of elevated levels of certain contaminants in the groundwater, and additional testing and corrective action by the Company could be required. The Company is unable to estimate the costs of any further corrective action at these sites, if required. Accordingly, the Company cannot assure that the costs of any future corrective action at these or any other current or former sites would not have a material effect on the Company’s financial condition, results of operations or liquidity. As of September 30, 2021, the Company has accrued $566 for post-closure monitoring and maintenance activities, of which $496 is included in long-term obligations as it is not due within one year. Accruals for these costs are calculated by estimating the cost to monitor and maintain each post-closure site and multiplying that amount by the number of years remaining in the post-closure monitoring. Expected maturities of post-closure monitoring and maintenance activities (discounted) included in long-term obligations are as follows at September 30, 2021. Expected maturities of post-closure monitoring and maintenance activities (discounted) Year Ending September 30, 2023 $ 68 2024 89 2025 67 2026 68 2027 and thereafter 204 $ 496 |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Sep. 30, 2021 | |
Stockholder's Equity | |
Stockholder's Equity | Note 11. Stockholder’s Equity Dividends During fiscal years 2019, 2020, and 2021, the Company paid dividends of $11,011, $11,058 and $11,175, respectively. Treasury Stock Treasury stock activity for fiscal years 2019, 2020 and 2021 are as follows: Year Ended Year Ended Year Ended September 30, September 30, September 30, 2019 2020 2021 Number of shares at beginning of year 42,113 53,469 58,909 Repurchases of common stock to satisfy employee payroll taxes 11,356 5,440 23,751 Repurchases of common stock from share repurchase plan — — 112,978 Number of shares at end of year 53,469 58,909 195,638 Share Repurchase Plan On July 28, 2021, the Board of Directors authorized the use of up to $20 million of available cash to purchase shares of the Company's common stock through July 27, 2022. The Board adopted the repurchase plan because it believes that repurchasing the Company’s stock at current market prices presents an attractive capital allocation strategy for the Company given the available options for the use of capital. Under the share repurchase plan, the Company is authorized to repurchase outstanding shares of its common stock in the open market or in privately negotiated transactions pursuant to two separate agreements with a broker. Under the first agreement, the timing and amount of share repurchases will be determined by a 10b5-1 trading plan, and the Company may purchase additional shares under the second agreement at management’s discretion (subject to all applicable laws) based upon its evaluation of market conditions and other factors, in compliance with Rule 10b-18. In the fourth quarter of fiscal 2021, the Company repurchased 112,978 shares with an aggregate purchase price of $4,245, excluding commissions of $2, under the 10b5-1 agreement. As of September 30, 2021, there is $15,755 remaining under the July 2021 authorization that is available to be repurchased. The share repurchase plan may be suspended, modified or discontinued at any time, and the Company has no obligation to repurchase any amount of its common stock under the plan. The Company intends to make all repurchases and to administer the plan in accordance with applicable laws and regulatory guidelines, including Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934, as amended. In addition to the above-mentioned share repurchase plan, the Company repurchased 23,751 shares with an aggregate purchase price of $741 in order to satisfy payroll taxes related to employee stock-based compensation plans. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 12. Stock based Compensation Restricted Stock Plan On March 1, 2016, the Company adopted the 2016 Incentive Compensation Plan which provides for grants of restricted stock, restricted stock units and performance shares, among other awards. Up to 275,000 shares of restricted stock, restricted stock units and performance shares may be granted in the aggregate under this plan. Following the adoption of the 2016 Incentive Compensation Plan, the Company ceased granting awards from the 2009 restricted stock plan, although awards remain outstanding thereunder. On January 24, 2020, the Company adopted the 2020 Incentive Compensation Plan which provides for grants of restricted stock, restricted stock units and performance shares, among other awards. Up to 250,000 shares of restricted stock, restricted stock units and performance shares may be granted in the aggregate under this plan. Following the adoption of the 2020 Incentive Compensation Plan, the Company ceased granting awards from the 2016 Incentive Compensation Plan, although awards remain outstanding thereunder. Grants of restricted stock are comprised of shares of the Company’s common stock subject to transfer restrictions, which vest in accordance with the terms and conditions established by the Compensation Committee. The Compensation Committee may set vesting requirements based on the achievement of specific performance goals or the passage of time. Employees earn and receive dividends from the restricted stock during this vesting period. Restricted shares are subject to forfeiture if employment or service terminates prior to the vesting date or if any applicable performance goals are not met. The Company will assess, on an ongoing basis, the probability of whether the performance criteria will be achieved. The Company will recognize compensation expense over the performance period if it is deemed probable that the goals will be achieved. The fair value of the Company’s restricted stock is determined based upon the closing price of the Company’s common stock on the trading day immediately preceding the grant date. The Company’s plans provide for the adjustment of the number of shares covered by an outstanding grant and the maximum number of shares for which restricted stock may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. The shares of time-based restricted stock granted to employees vest on the third anniversary of their grant date if the recipient is still an employee of the Company on such date. The shares of restricted stock granted to non-employee directors will vest on the earlier of (a) the first anniversary of the date of grant or (b) the failure of such non-employee director to be re-elected at an annual meeting of the stockholders of the Company as a result of such non-employee director being excluded from the nominations for any reason other than cause. The following table summarizes the activity under the 2016 restricted stock plan and the 2020 Incentive Compensation Plan with respect to restricted stock for the year ended September 30, 2021: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2020 141,680 $ 27.71 Granted 55,718 $ 22.64 Forfeited / Canceled (500) $ 26.99 Vested (54,629) $ 24.97 Unvested at September 30, 2021 142,269 $ 26.78 Expected to vest 142,269 $ 26.78 Compensation expense related to restricted stock for the years ended September 30, 2019, 2020 and 2021 was $631, $1,160, and $2,024, respectively. The remaining unrecognized compensation expense related to restricted stock at September 30, 2021 was $1,484, to be recognized over a weighted average period of 0.96 years. During fiscal 2021, the Company repurchased 23,751 shares of stock from employees at an average purchase price of $31.20 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Deferred Restricted Stock On November 20, 2017, the Company adopted a deferred compensation plan that allows directors and officers the option to defer receipt of cash and stock compensation. Beginning in fiscal 2018, the Company has granted shares of restricted stock from the 2016 and 2020 Incentive Compensation Plans with respect to which elections have been made by certain individuals to defer receipt to a future period. Such shares vest in accordance with the parameters of the 2016 and 2020 Incentive Compensation Plans, however, receipt of the shares and any corresponding dividends are deferred until the end of the deferral period. In the event the deferred shares are forfeited prior to the vesting date, deferred dividends pertaining to those shares will also be forfeited. During the deferral period, the participants who elected to defer shares will not have voting rights with respect to those shares. The following table summarizes the activity under the 2016 Incentive Compensation Plan and the 2020 Incentive Compensation Plan with respect to deferred restricted stock for the year ended September 30, 2021. Weighted Average Fair Number of Value At Shares Grant Date Unvested and deferred at September 30, 2020 5,152 $ 31.78 Granted 7,398 $ 22.64 Vested and deferred (5,152) $ 31.78 Unvested and deferred at September 30, 2021 7,398 $ 22.64 Vested and deferred at September 30, 2021 21,435 $ 31.97 Compensation expense related to deferred restricted stock for the year ended September 30, 2019, 2020 and 2021 was $442, $271 and $188, respectively. The remaining unrecognized compensation expense related to restricted stock at September 30, 2021 was $28, to be recognized over a weighted average period of 0.17 years. Performance Shares In November 2019, the Company granted to certain employees, target numbers of performance shares under the 2016 Incentive Compensation Plan. The number of performance shares that will ultimately be earned, as well as the number of shares that will be distributed in settling those earned performance shares, if any, will not be determined until the end of the performance period. Performance shares earned will depend on the calculated total shareholder return of the Company at the end of the three-year period commencing from the beginning of the fiscal year in which the award was granted as compared to the total shareholder return of the Company’s peer group, as defined by the Compensation Committee for this purpose. The fair value of the performance shares is estimated as of the date of the grant using a Monte Carlo simulation model. The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to performance shares for the twelve months ended September 30, 2021. Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2020 61,362 $ 43.22 Granted 39,031 $ 28.23 Vested (13,200) $ 38.43 Unvested at September 30, 2021 87,193 $ 37.24 Compensation expense related to the performance shares for the years ended September 30, 2019, 2020 and 2021 was $738, $849 and $1,082, respectively. The remaining unrecognized compensation expense related to performance shares at September 30, 2021 was $1,150, to be recognized over a weighted average period of 1.51 years. Stock Option Plans The Company’s 2020 Incentive Compensation Plan and its previous stock option plans authorize, or formerly authorized, the granting of non-qualified stock options and stock appreciation rights to certain key employees and non-employee directors for the purchase of shares of the Company’s common stock. For the 2020 Incentive Compensation Plan, the maximum number of shares granted subject to options is 350,000. Following the adoption of the 2020 Incentive Compensation Plan, the Company ceased granting awards from its previous stock option plan, although awards remain outstanding from previous plans. Each plan provides for the adjustment of the maximum number of shares for which options may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. Unless the Compensation Committee determines otherwise, options are exercisable for a period of ten years from the date of grant and vest 33 1 / 3 % The Company has elected to use the Black-Scholes option pricing model to estimate fair value, which incorporates various assumptions including volatility, expected life, risk-free interest rates and dividend yields. The volatility is based on historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the stock option granted. The Company uses historical volatility because management believes such volatility is representative of prospective trends. The expected term of an award is based on historical exercise data. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the awards. The dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant. The following assumptions were used for grants during fiscal 2019, 2020 and 2021: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 24, 2020 $ 5.91 3.89 % 0.39 % 43 % 5 years November 19, 2019 $ 9.66 2.38 % 1.65 % 35 % 5 years May 24, 2019 (Part 1) $ 8.75 2.88 % 2.11 % 40 % 5 years May 24, 2019 (Part 2) $ 7.94 2.88 % 2.11 % 40 % 5 years May 24, 2019 (Part 3) $ 7.23 2.88 % 2.11 % 40 % 5 years February 25, 2019 $ 10.86 2.52 % 2.47 % 41 % 5 years November 21, 2018 $ 10.61 2.59 % 2.88 % 41 % 5 years The stock-based employee compensation expense for stock options for the years ended September 30, 2019, 2020 and 2021 was $764, $1,038 and $1,180, respectively. The remaining unrecognized compensation expense at September 30, 2021 was $1,193, to be recognized over a weighted average vesting period of 1.01 years. The following table summarizes the activity under the stock option plans for the year ended September 30, 2021: Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2020 561,457 $ 37.97 Granted 149,519 $ 22.64 Canceled (8,400) $ 40.26 Outstanding at September 30, 2021 702,576 $ 3,209 $ 34.68 6.81 yrs. Vested or expected to vest 638,826 $ 2,910 $ 34.68 4.88 yrs. Exercisable at September 30, 2021 413,584 $ 743 $ 38.85 5.63 yrs. |
Quarterly Data (unaudited)
Quarterly Data (unaudited) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Data (unaudited) | |
Quarterly Data (unaudited) | Note 13. Quarterly Data (unaudited) The unaudited quarterly results of operations of the Company for the years ended September 30, 2020 and 2021 are as follows: 2020 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 108,453 $ 111,563 $ 80,576 $ 79,938 Gross profit 18,743 19,296 2,639 3,954 Gross profit percentage of net revenues 17.3% 17.3% 3.3% 4.9% Net income (loss) 3,268 4,068 (8,097) (5,717) Net income (loss) per share: Basic $ 0.26 $ 0.32 ($ 0.65) ($ 0.46) Diluted $ 0.26 $ 0.32 ($ 0.65) ($ 0.46) 2021 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 72,177 $ 82,063 $ 88,143 $ 95,278 Gross profit 987 8,385 13,658 16,700 Gross profit percentage of net revenues 1.4% 10.2% 15.5% 17.5% Net income (loss) (8,027) (3,632) 422 2,554 Net income (loss) per share: Basic ($ 0.65) ($ 0.29) $ 0.03 $ 0.20 Diluted ($ 0.65) ($ 0.29) $ 0.03 $ 0.20 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting | |
Segment Reporting | Note 14. Segment Reporting The Company operates in one business segment: the design, manufacture, marketing and distribution of technologically advanced, high-performance alloys for use in the aerospace, industrial gas turbine, chemical processing and other industries. The Company has operations in the United States, Europe and China, which are summarized below. Sales between geographic areas are made at negotiated selling prices. Revenues from external customers are attributed to the geographic areas presented based on the destination of product shipments. Year Ended September 30, 2019 2020 2021 Net Revenue by Geography: United States $ 300,728 $ 230,764 $ 179,127 Europe 119,246 91,480 85,555 China 24,329 17,398 30,668 Other 45,912 40,888 42,311 Net Revenues $ 490,215 $ 380,530 $ 337,661 Net Revenue by Product Group: High-temperature resistant alloys $ 392,172 $ 308,229 $ 253,246 Corrosive-resistant alloys 98,043 72,301 84,415 Net revenues $ 490,215 $ 380,530 $ 337,661 September 30, 2020 2021 Long-lived Assets by Geography United States $ 152,915 $ 140,263 Europe 6,754 6,834 China 150 151 Total long-lived assets $ 159,819 $ 147,248 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2021 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | Note 15. Valuation and Qualifying Accounts Balance at Charges Balance at Beginning (credits) to End of of Period Expense Deductions (1) Period Allowance for doubtful accounts receivables: September 30, 2019 1,130 530 (1,219) 441 September 30, 2020 441 139 (35) 545 September 30, 2021 545 74 (66) 553 (1) Uncollectible accounts written off net of recoveries . |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Sep. 30, 2021 | |
Deferred Revenue | |
Deferred Revenue | Note 16. Deferred Revenue On November 17, 2006, the Company entered into a twenty-year agreement to provide conversion services to Titanium Metals Corporation (TIMET) for up to ten million pounds of titanium metal annually. TIMET paid the Company a $50,000 up-front fee and will also pay the Company for its processing services during the term of the agreement ( 20 years revenue recognized over the life of the contract. The cash received of $50,000 is recognized in income on a straight-line basis over the 20-year |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 17. Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value: ● Level 1—Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; ● Level 2—Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and ● Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. When available, the Company uses unadjusted quoted market prices to measure fair value. If quoted market prices are not available, fair value is based upon internally-developed models that use, where possible, current market-based or independently-sourced market parameters such as interest rates and currency rates. Items valued using internally-generated models are classified according to the lowest level input or value driver that is significant to the valuation. The valuation model used depends on the specific asset or liability being valued. Fixed income securities are held as individual bonds and are valued as either level 1 assets as they are quoted in active markets or level 2 assets. U.S and International equities, and Other Investments held in the Company’s pension plan are held as individual bonds or in mutual funds and common / collective funds which are valued using net asset value (NAV) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. These investments are not classified in the fair value hierarchy in accordance with guidance included in ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) The fair value of Cash and Cash Equivalents is determined using Level 1 information. The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and 2021: September 30, 2020 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ — $ — $ — $ 245,546 $ 245,546 Total fair value $ — $ — $ — $ 245,546 $ 245,546 September 30, 2021 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ 23,654 $ 169,953 $ — $ 104,096 $ 297,703 Total fair value $ 23,654 $ 169,953 $ — $ 104,096 $ 297,703 The Company had no other financial assets or liabilities measured at fair value on a recurring basis as of September 30, 2020 or 2021. |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Sep. 30, 2021 | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | Note 18. Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component Comprehensive income (loss) includes changes in equity that result from transactions and economic events from non-owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) items, including pension and foreign currency translation adjustments, net of tax when applicable. Comprehensive Income (Loss) Year Ended September 30, 2019 2020 2021 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income (loss) $ 9,745 $ (6,478) $ (8,683) Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ (48,052) 11,266 (36,786) $ 11,121 (2,381) 8,740 $ 68,941 (16,044) 52,897 Amortization of prior service cost 228 (58) 170 228 (58) 170 228 (52) 176 Amortization of (gain) loss 2,935 (772) 2,163 9,129 (2,409) 6,720 7,735 (1,802) 5,933 Foreign currency translation adjustment (3,620) — (3,620) 3,690 — 3,690 3,254 — 3,254 Other comprehensive income (loss) $ (48,509) $ 10,436 (38,073) $ 24,168 $ (4,848) 19,320 $ 80,158 $ (17,898) 62,260 Total comprehensive income (loss) $ (28,328) $ 12,842 $ 53,577 Accumulated Other Comprehensive Income (Loss) Year Ended September 30, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2019 $ (53,811) $ (13,316) $ (13,511) $ (80,638) Other comprehensive income (loss) before reclassifications (8,604) 17,344 3,690 12,430 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 228 — — 228 Actuarial losses (1) 7,281 1,848 — 9,129 Tax benefit (1,978) (489) — (2,467) Net current-period other comprehensive income (loss) (3,073) 18,703 3,690 19,320 Reclass due to adoption of ASU 2018-02 (8,509) (4,774) — (13,283) Accumulated other comprehensive income (loss) as of September 30, 2020 $ (65,393) $ 613 $ (9,821) $ (74,601) Year Ended September 30, 2021 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2020 $ (65,393) $ 613 $ (9,821) $ (74,601) Other comprehensive income (loss) before reclassifications 44,493 8,404 3,254 56,151 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 228 — — 228 Actuarial losses (1) 7,735 — — 7,735 Tax benefit (1,854) — — (1,854) Net current-period other comprehensive income (loss) 50,602 8,404 3,254 62,260 Accumulated other comprehensive income (loss) as of September 30, 2021 $ (14,791) $ 9,017 $ (6,567) $ (12,341) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations
Long-term Obligations | 12 Months Ended |
Sep. 30, 2021 | |
Long-term Obligations | |
Long-term Obligations | Note 19. Long-term Obligations The following table sets for the components of Long-term obligations as of September 30, 2020 and 2021. September 30, September 30, 2020 2021 Finance lease obligations $ 7,809 $ 7,613 Environmental post-closure monitoring and maintenance activities 602 566 Long-term disability 251 231 Deferred dividends 139 210 Less amounts due within one year (292) (319) Long-term obligations (less current portion) $ 8,509 $ 8,301 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | Note 20. Leases On October 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) Nature of the Leases The Company has operating and finance leases for buildings, equipment (e.g. trucks and forklifts), vehicles, and computer equipment. Leasing arrangements require fixed payments and also include an amount that is probable will be owed under residual value guarantees , if applicable. Some lease payments also include payments related to purchase or termination options when the lessee is reasonably certain to exercise the option or is not reasonably certain not to exercise the option, respectively. The leases have remaining terms of one to 15 years . For all leases with an initial expected term of more than 12 months 842 Company utilizes its collateralized incremental borrowing rate commensurate to the lease term as the discount rate for its leases, unless the Company can specifically determine the lessor’s implicit rate. On January 1, 2015, the Company entered into a finance lease agreement for the building that houses the assets and operations of LaPorte Custom Metal Processing (LCMP). The leased asset and obligation are recorded at the present value of the minimum lease payments. The asset is included in Property, plant and equipment, net on the Consolidated Balance Sheet and is depreciated over the 20-year The Company entered into a twenty-year 20-year Significant Judgments and Assumptions Determination of Whether a Contract Contains a Lease The Company determines whether a contract is or contains a lease at the inception of the contract. The contract is or contains a lease if the contract conveys the right to control the use of identified assets for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from use of the property, plant, and equipment and have the right to direct its use. Practical Expedients (Policy Elections) The Company elected certain practical expedients and transition relief, including the short-term lease recognition exemption, which excludes leases with a term of 12 months or less from recognition on the balance sheet, recognizing lease components and non-lease components together as a single lease component, and the transition relief package which, among other things, includes not reassessing the lease classification or whether a contract is or contains a lease. The following table sets forth the components of the Company’s lease cost for the year ended September 30, 2020 and 2021. September 30, September 30, 2020 2021 Finance lease cost: Amortization of right of use asset $ 430 $ 430 Interest on lease liabilities 825 806 Total finance lease cost $ 1,255 $ 1,236 Operating lease cost $ 1,402 $ 1,687 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 825 806 Operating cash flows from operating leases 1,402 1,687 Financing cash flows from finance leases 170 195 Total cash paid for amounts included in measurement of lease liabilities $ 2,397 $ 2,688 Lease costs associated with short term leases are not material. The following table sets forth the Company’s right of use assets and lease liabilities as of September 30, 2020 and 2021. September 30, September 30, 2020 2021 Finance lease assets (included in Property, plant and equipment, net) $ 6,503 $ 6,218 Operating right of use lease assets (included in Other assets) $ 1,718 $ 1,494 Finance lease liabilities Accrued expenses $ 195 $ 228 Long-term obligations (less current portion) 7,614 7,385 Total Finance lease liabilities $ 7,809 $ 7,613 Operating lease liabilities $ 1,718 $ 1,494 Operating lease payments due within one year are recorded in Accrued expenses on the Consolidated Balance Sheet. September 30, September 30, 2020 2021 Weighted average lease term (Years) Finance leases 15.1 14.1 Operating leases 3.2 2.5 Weighted average discount rate Finance leases 10.33 % 10.32 % Operating leases 5.25 % 5.25 % The following is a table of future minimum lease payments during each fiscal year under operating and finance leases and the present value of the net minimum lease payments as of September 30, 2021. Finance Operating Future minimum lease payments Leases Leases 2022 $ 1,012 $ 840 2023 1,024 435 2024 1,032 291 2025 1,037 72 2026 1,044 — Thereafter 9,458 — Total minimum lease payments 14,607 1,638 Less: amount representing interest (6,994) (144) Present value of net minimum lease payments $ 7,613 $ 1,494 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts | 12 Months Ended |
Sep. 30, 2021 | |
Foreign Currency Forward Contracts | |
Foreign Currency Forward Contracts | Note 21. Foreign Currency Forward Contracts The Company enters into foreign currency forward contracts with the purpose of reducing income statement volatility resulting from foreign currency denominated transactions. The Company has not designated the contacts as hedges; therefore, changes in fair value are recognized in earnings. All of these contracts are designed to be settled within the same fiscal quarter they are entered into and, accordingly, as of September 30, 2019, 2020 and 2021, there are no contracts that remain unsettled. As a result, there is no impact to the balance sheet as of September 30, 2020 or September 30, 2021. Foreign exchange contract gains and losses are recorded within Selling, General and Administrative expenses on the Consolidated Statements of Operations along with foreign currency transactional gains and losses as follows. Year Ended Year Ended Year Ended September 30, September 30, September 30, 2019 2020 2021 Foreign currency transactional gain (loss) $ 1,071 $ (567) $ (42) Foreign exchange forward contract gain (loss) (1,638) (273) (532) Net gain (loss) included in selling, general and administrative expense $ (567) $ (840) $ (574) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Nature of Operations | A. Principles of Consolidation and Nature of Operations The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated. The Company has manufacturing facilities in Kokomo, Indiana; Mountain Home, North Carolina; and Arcadia, Louisiana with service centers in LaPorte, Indiana; LaMirada, California; Houston, Texas; Windsor, Connecticut; Openshaw, England; Lenzburg, Switzerland; Shanghai, China; and sales offices in Paris, France; Singapore; Milan, Italy; and Tokyo, Japan. |
Cash and Cash Equivalents | B. Cash and Cash Equivalents The Company considers all highly liquid investment instruments, including investments with original maturities of three months or less at acquisition, to be cash equivalents, the carrying value of which approximates fair value due to the short maturity of these investments. |
Accounts Receivable | C. Accounts Receivable The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company markets its products to a diverse customer base, both in the United States of America and overseas. Trade credit is extended based upon evaluation of each customer’s ability to perform its obligation, which is updated periodically. |
Revenue Recognition | D. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of customer contracts are satisfied which occurs when control of the goods has been transferred to the customer and services have been performed. Allowances for sales returns are recorded as a component of net sales in the periods in which the related sales are recognized. The Company determines this allowance based on historical experience. Additionally, the Company recognizes revenue attributable to an up-front fee received from Titanium Metals Corporation (TIMET) as a result of a twenty-year agreement entered into on November 17, 2006 to provide conversion services to TIMET. See Note 16, Deferred Revenue for a description of accounting treatment relating to this up-front fee. |
Inventories | E. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first-in, first-out (FIFO) method. The Company writes down its inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market or scrap value, if applicable, based upon assumptions about future demand and market conditions. |
Goodwill and Other Intangible Assets | F. Goodwill and Other Intangible Assets The Company has goodwill, trademarks, customer relationships and other intangibles as of September 30, 2021. As the customer relationships have a definite life, they are amortized over fifteen years. The Company reviews customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for goodwill and August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of the trademarks exceeds the fair value (determined using an income approach, based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist resulting in a charge to earnings to the extent of the impairment. The impairment test for goodwill is performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment loss in the event that the carrying amount is greater than the fair value. Any goodwill impairment loss recognized would not exceed the total carrying amount of goodwill allocated to that reporting unit. No impairment was recognized in the years ended September 30, 2019, 2020 or 2021 because the fair value exceeded the carrying values. During fiscal 2019, 2020 and 2021, there were no changes in the carrying amount of goodwill. Amortization of the customer relationships and other intangibles was $255, $228 and $467 for the years ended September 30, 2019, 2020 and 2021, respectively. The following represents a summary of intangible assets at September 30, 2020 and 2021: Gross Accumulated Carrying September 30, 2020 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (858) 1,242 Other 291 (277) 14 $ 6,191 $ (1,135) $ 5,056 Gross Accumulated Carrying September 30, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (995) 1,105 Other 997 (316) 681 $ 6,897 $ (1,311) $ 5,586 Estimated future Aggregate Amortization Expense: Year Ending September 30, 2022 $ 465 2023 462 2024 142 2025 123 2026 120 Thereafter 474 |
Property, Plant and Equipment | G. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost with depreciation calculated primarily by using the straight-line method based on estimated economic useful lives, which are generally as follows: Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 years Expenditures for maintenance and repairs and minor renewals are charged to expense; major renewals are capitalized. Upon retirement or sale of assets, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. The Company records capitalized interest for long-term construction projects to capture the cost of capital committed prior to the placed in service date as a part of the historical cost of acquiring the asset. Interest is not capitalized when the balance on the revolver is zero. The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. No impairment was recognized during the years ended September 30, 2019, 2020 or 2021. |
Environmental Remediation | H. Environmental Remediation When it is probable that a liability has been incurred or an asset of the Company has been impaired, a loss is recognized assuming the amount of the loss can be reasonably estimated. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations and current technology. Such estimates take into consideration the expected costs of post-closure monitoring based on historical experience. Amounts accrued for post-closure monitoring are presented in Note 19, Long-term Obligations. |
Pension and Postretirement Benefits | I. Pension and Postretirement Benefits The Company has defined benefit pension and postretirement plans covering most of its current and former employees. Significant elements in determining the assets or liabilities and related income or expense for these plans are the expected return on plan assets, the discount rate used to value future payment streams, expected trends in health care costs and other actuarial assumptions. Annually, the Company evaluates the significant assumptions to be used to value its pension and postretirement plan assets and liabilities based on current market conditions and expectations of future costs. If actual results are less favorable than those projected by management, additional expense may be required in future periods. Salaried employees hired after December 31, 2005 and hourly employees hired after June 30, 2007 are not covered by the pension plan; however, they are eligible for an enhanced matching program of the defined contribution plan (401(k)). Effective December 31, 2007, the U.S. pension plan was amended to freeze benefits for all non-union employees in the U.S. Effective September 30, 2009, the U.K. pension plan was amended to freeze benefits for employees in the plan. Effective January 1, 2007, a plan amendment of the postretirement medical plan caps the Company’s liability related to retiree health care costs at $5,000 annually. Effective October 1, 2009, the U.S. postretirement plan was closed for all non-union employees. |
Foreign Currency Exchange | J. Foreign Currency Exchange The Company’s foreign operating entities’ financial statements are denominated in the functional currencies of each respective country, which are the local currencies. All assets and liabilities are translated to U.S. dollars using exchange rates in effect at the end of the year, and revenues and expenses are translated at the weighted average rate for the year. Translation gains or losses are recorded as a separate component of comprehensive income (loss) and transaction gains and losses are reflected in the consolidated statements of operations. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in selling, general and administrative expense. The Company has entered into foreign currency forward contracts (See Note 21, Foreign Currency Forward Contracts) with the purpose to reduce income statement volatility resulting from transaction gains and losses. |
Research and Technical Costs | K. Research and Technical Costs Research and technical costs related to the development of new products and processes are expensed as incurred. Research and technical costs for the fiscal years ended September 30, 2019, 2020 and 2021 were $3,592, $3,713 and $3,403, respectively. |
Income Taxes | L. Income Taxes The Company accounts for deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. A valuation allowance is required if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of whether or not a valuation allowance is needed is based upon an evaluation of both positive and negative evidence. In its evaluation of the need for a valuation allowance, the Company utilizes prudent and feasible tax planning strategies. The ultimate amount of deferred tax assets realized could be different from those recorded, as influenced by potential changes in enacted tax laws and the availability of future taxable income. The Company records uncertain tax positions on the basis of a two-step process whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority (See Note 7, Income Taxes). |
Stock-based Compensation | M. Stock-based Compensation As described in Note 12, the Company has incentive compensation plans that provide for the issuance of restricted stock, restricted stock units, performance shares, stock options and stock appreciation rights to key employees and non-employee directors. To date, the Company has only issued restricted stock, performance shares and stock options. The stock-based compensation grants typically have a vesting period before the employee can take receipt of the stock or becomes eligible to exercises stock options. Employees earn and receive dividends from the restricted stock during this vesting period and accumulated dividends related to performance shares are paid to the employees at the time that the shares are received by the employee after the end of the vesting period. The Company recognizes compensation expense under the fair-value based method as a component of operating expenses. |
Financial Instruments and Concentrations of Risk | N. Financial Instruments and Concentrations of Risk The Company may periodically enter into forward currency exchange contracts to minimize the variability in the Company’s operating results arising from foreign exchange rate movements. The Company does not engage in foreign currency speculation. At September 30, 2020 and 2021, the Company had no foreign currency exchange contracts outstanding. To date, all foreign currency contracts have been settled prior to the end of the month in which they were initiated. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. At September 30, 2021, and periodically throughout the year, the Company has maintained cash balances in excess of federally insured limits. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the relatively short maturity of these instruments. During 2019, 2020 and 2021, the Company did not have sales to any group of affiliated customers that were greater than 10% of net revenues. The Company generally does not require collateral with the exception of letters of credit with certain foreign sales. Credit losses amounted to $530, $139 and $74 in fiscal 2019, 2020 and 2021, respectively, and were within management’s expectations. The Company does not believe it is significantly vulnerable to the risk of near-term severe impact from business concentrations with respect to customers, suppliers, products, markets or geographic areas. |
Accounting Estimates | O. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) 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. On an on-going basis, management evaluates its estimates and judgments, including those related to bad debts, inventories, income taxes, asset impairment, incremental borrowing rates, retirement benefits and environmental matters. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, pension asset mix and in some cases, actuarial techniques, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company routinely reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. |
Earnings Per Share | P. Earnings Per Share The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Basic and diluted net income per share were computed as follows: Years ended September 30, (in thousands, except share and per share data) 2019 2020 2021 Numerator: Basic and Diluted Net income (loss) $ 9,745 $ (6,478) $ (8,683) Dividends (11,037) (11,158) (11,245) Undistributed income (loss) (1,292) (17,636) (19,928) Percentage allocated to common shares (a) 100.0 % 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (1,292) (17,636) (19,928) Dividends paid on common shares outstanding 10,987 11,071 11,098 Net income (loss) available to common shares 9,695 (6,565) (8,830) Denominator: Basic and Diluted Weighted average common shares outstanding 12,445,212 12,470,664 12,499,609 Adjustment for dilutive potential common shares 35,696 — — Weighted average shares outstanding - Diluted 12,480,908 12,470,664 12,499,609 Basic net income (loss) per share $ 0.78 $ (0.53) $ (0.71) Diluted net income (loss) per share $ 0.78 $ (0.53) $ (0.71) Number of stock option shares excluded as their effect would be anti-dilutive 371,151 285,699 385,548 Number of restricted stock shares excluded as their effect would be anti-dilutive — 96,999 165,794 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive — 34,498 30,529 Number of performance share awards excluded as their effect would be anti-dilutive — 47,195 76,266 (a) Common shares outstanding 12,445,212 12,470,664 12,499,609 Unvested participating shares — — — 12,445,212 12,470,664 12,499,609 |
Recently Issued Accounting Pronouncements | Q. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) The Company elected the package of practical expedients included in this guidance which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. The Company has elected the practical expedient to not separate lease components from non-lease components for all asset classes. The Company will recognize lease expense for operating leases in the consolidated statements of operations on a straight-line basis over the lease term. The Company also made a policy election to not recognize ROU asset and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term are reflected in the lease term when it is reasonably certain that the Company will exercise such options. The Company has expanded the disclosure of operating leases included in Note 20 Leases. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income comprehensive In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of finite-lived intangible assets | Gross Accumulated Carrying September 30, 2020 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (858) 1,242 Other 291 (277) 14 $ 6,191 $ (1,135) $ 5,056 Gross Accumulated Carrying September 30, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (995) 1,105 Other 997 (316) 681 $ 6,897 $ (1,311) $ 5,586 |
Schedule of indefinite-lived intangible assets | Gross Accumulated Carrying September 30, 2020 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (858) 1,242 Other 291 (277) 14 $ 6,191 $ (1,135) $ 5,056 Gross Accumulated Carrying September 30, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (995) 1,105 Other 997 (316) 681 $ 6,897 $ (1,311) $ 5,586 |
Schedule of estimated future aggregate amortization expense | Estimated future Aggregate Amortization Expense: Year Ending September 30, 2022 $ 465 2023 462 2024 142 2025 123 2026 120 Thereafter 474 |
Schedule of estimated economic useful lives of property, plant and equipment | Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 years |
Schedule of basic and diluted net income per share | Years ended September 30, (in thousands, except share and per share data) 2019 2020 2021 Numerator: Basic and Diluted Net income (loss) $ 9,745 $ (6,478) $ (8,683) Dividends (11,037) (11,158) (11,245) Undistributed income (loss) (1,292) (17,636) (19,928) Percentage allocated to common shares (a) 100.0 % 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (1,292) (17,636) (19,928) Dividends paid on common shares outstanding 10,987 11,071 11,098 Net income (loss) available to common shares 9,695 (6,565) (8,830) Denominator: Basic and Diluted Weighted average common shares outstanding 12,445,212 12,470,664 12,499,609 Adjustment for dilutive potential common shares 35,696 — — Weighted average shares outstanding - Diluted 12,480,908 12,470,664 12,499,609 Basic net income (loss) per share $ 0.78 $ (0.53) $ (0.71) Diluted net income (loss) per share $ 0.78 $ (0.53) $ (0.71) Number of stock option shares excluded as their effect would be anti-dilutive 371,151 285,699 385,548 Number of restricted stock shares excluded as their effect would be anti-dilutive — 96,999 165,794 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive — 34,498 30,529 Number of performance share awards excluded as their effect would be anti-dilutive — 47,195 76,266 (a) Common shares outstanding 12,445,212 12,470,664 12,499,609 Unvested participating shares — — — 12,445,212 12,470,664 12,499,609 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenues from Contracts with Customers | |
Schedule of disaggregation of revenue | Year Ended September 30, 2019 2020 2021 Net revenues (dollars in thousands) Aerospace $ 258,104 $ 191,980 $ 128,072 Chemical processing 89,651 63,170 63,147 Industrial gas turbine 59,430 56,576 66,772 Other markets 57,946 45,099 58,090 Total product revenue 465,131 356,825 316,081 Other revenue 25,084 23,705 21,580 Net revenues $ 490,215 $ 380,530 $ 337,661 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Inventories | |
Summary of major classes of inventories | September 30, September 30, 2020 2021 Raw Materials $ 22,163 $ 22,711 Work-in-process 110,717 138,609 Finished Goods 111,744 85,797 Other 1,500 1,378 $ 246,124 $ 248,495 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment | |
Summary of the major classes of property, plant and equipment | September 30, 2020 2021 Land and land improvements $ 10,066 $ 10,266 Buildings and improvements 46,135 46,241 Machinery and equipment 301,496 306,161 Construction in process 2,705 3,344 360,402 366,012 Less accumulated depreciation (200,583) (218,764) $ 159,819 $ 147,248 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accrued Expenses | |
Summary of the major classes of accrued expenses | September 30, 2020 2021 Employee compensation $ 8,826 $ 9,424 Taxes, other than income taxes 2,798 2,798 Accrued product returns 1,200 1,060 Utilities 714 1,000 Professional fees 464 836 Finance lease obligation, current 195 228 Employee termination liabilities 59 — Management incentive compensation — 3,411 Other 501 1,343 $ 14,757 $ 20,100 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Schedule of components of income before provision for income taxes | Year Ended September 30, 2019 2020 2021 Income (loss) before income taxes: U.S. $ 790 $ (9,831) $ (11,417) Foreign 12,580 2,333 1,634 Total $ 13,370 $ (7,498) $ (9,783) Provision for (benefit from) income taxes: Current: U.S. Federal $ (267) $ (371) $ 741 Foreign 2,259 541 349 State 2 29 228 Total 1,994 199 1,318 Deferred: U.S. Federal 1,423 (2,266) (2,986) Foreign 132 56 470 State 62 (810) (317) Valuation allowance 14 1,801 415 Total 1,631 (1,219) (2,418) Total provision for (benefit from) income taxes $ 3,625 $ (1,020) $ (1,100) |
Schedule of provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate | Year Ended September 30, 2019 2020 2021 Statutory federal tax rate 21.00 % 21.00 % 21.00 % Tax provision for income taxes at the statutory rate $ 2,808 $ (1,575) $ (2,054) Foreign tax rate differentials (157) 107 (59) Provision for state taxes, net of federal taxes 247 (145) (84) U.S. tax on distributed and undistributed earnings of foreign subsidiaries 486 (289) 198 Tax credits (499) (1,058) (691) Federal and state tax rate change impact on deferred tax asset 314 (60) 790 Change in valuation allowance 14 1,801 415 Stock compensation 655 24 138 Other, net (243) 175 247 Provision for (benefit from) income taxes at effective tax rate $ 3,625 $ (1,020) $ (1,100) Effective tax rate 27.1 % 13.6 % 11.2 % |
Schedule of deferred tax assets (liabilities) | September 30, 2020 2021 Deferred tax assets: Pension and postretirement benefits $ 44,626 $ 22,318 TIMET Agreement 3,585 2,976 Inventories 2,350 1,498 Accrued compensation and benefits 1,474 2,034 Accrued expenses and other 3,703 3,376 Tax attributes 4,892 11,638 Other assets 404 299 Valuation allowance (3,476) (3,891) Total deferred tax assets $ 57,558 $ 40,248 Deferred tax liabilities: Property, plant and equipment, net $ (27,434) $ (25,669) Intangible and other (1,186) (1,296) Other liabilities (518) (345) Total deferred tax liabilities $ (29,138) $ (27,310) Net deferred tax assets (liabilities) $ 28,420 $ 12,938 |
Pension Plan and Retirement B_2
Pension Plan and Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Pension Plan and Retirement Benefits | |
Schedule of status of employee pension benefit plans and other postretirement benefit plans | Defined Benefit Postretirement Pension Plans Health Care Benefits Year Ended Year Ended September 30, September 30, 2020 2021 2020 2021 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 321,478 $ 345,390 $ 113,834 $ 93,339 Service cost 5,546 5,795 1,416 1,095 Interest cost 8,866 7,481 3,493 2,292 Actuarial (gains) losses 24,183 (27,225) (22,564) (10,943) Benefits paid (13,676) (14,965) (2,840) (2,819) Administrative expenses (1,007) (1,010) — — Projected benefit obligation at end of year $ 345,390 $ 315,466 $ 93,339 $ 82,964 Change in Plan Assets: Fair value of plan assets at beginning of year $ 225,917 $ 245,546 $ — $ — Actual return on assets 27,795 47,132 — — Employer contributions 6,517 21,000 2,840 2,819 Benefits paid (13,676) (14,965) (2,840) (2,819) Administrative expenses (1,007) (1,010) — — Fair value of plan assets at end of year $ 245,546 $ 297,703 $ — $ — Funded Status of Plan: Unfunded status $ (99,844) $ (17,763) $ (93,339) $ (82,964) |
Schedule of amounts recognized in the consolidated balance sheets and amounts expected to be recognized from AOCI into the statement of operations in the following year | Defined Benefit Postretirement Non-Qualified All Plans Pension Plans Health Care Benefits Pension Plans Combined September 30, September 30, September 30, September 30, 2020 2021 2020 2021 2020 2021 2020 2021 Accrued pension and postretirement benefits: Current $ — $ — $ (3,307) $ (3,459) $ (96) $ (95) $ (3,403) $ (3,554) Non - (99,844) (17,763) (90,032) (79,505) (585) (528) (190,461) (97,796) Accrued pension and postretirement benefits $ (99,844) $ (17,763) $ (93,339) $ (82,964) $ (681) $ (623) $ (193,864) $ (101,350) Accumulated other comprehensive loss: Net loss 84,873 19,150 239 (10,704) — — 85,112 8,446 Prior service cost 1,837 1,599 — — — — 1,837 1,599 Total accumulated other comprehensive loss $ 86,710 $ 20,749 $ 239 $ (10,704) $ — $ — $ 86,949 $ 10,045 |
Schedule of components of net periodic pension and postretirement benefit cost | Defined Benefit Pension Plans Year Ended September 30, 2019 2020 2021 Service cost $ 5,239 $ 5,546 $ 5,628 Interest cost 10,652 8,866 7,481 Expected return on assets (14,907) (15,061) (16,356) Amortization of prior service cost 228 228 239 Recognized actuarial loss 1,449 7,288 7,721 Net periodic cost $ 2,661 $ 6,867 $ 4,713 Postretirement Health Care Benefits Year Ended September 30, 2019 2020 2021 Service cost $ 318 $ 1,416 $ 1,095 Interest cost 4,353 3,493 2,292 Recognized actuarial loss 1,487 1,848 — Net periodic cost $ 6,158 $ 6,757 $ 3,387 |
Schedule of assumptions used to determine actuarial present value of the projected pension benefit obligation and postretirement health care benefit obligation for the plans | September 30, September 30, 2020 2021 Discount rate (postretirement health care) 2.50 % 2.75 % Discount rate (U.S. pension plan) 2.25 % 2.63 % Discount rate (U.K. pension plan) 1.50 % 2.00 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % |
Schedule of assumptions used to determine net periodic pension and postretirement health care benefit costs for the plans | Defined Benefit Pension and Postretirement Health Care Plans Year Ended September 30, 2019 2020 2021 Discount rate (postretirement health care plan) 4.13 % 3.13 % 2.50 % Discount rate (U.S. pension plan) 4.00 % 2.88 % 2.25 % Discount rate (U.K. pension plan) 2.80 % 1.70 % 1.50 % Expected return on plan assets (U.S. pension plan) 7.25 % 7.25 % 7.25 % Expected return on plan assets (U.K. pension plan) 3.20 % 2.20 % 2.00 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % 2.50 % |
Schedule of plan assets by level within the fair value hierarchy | September 30, 2020 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ — $ — $ 74,224 $ 74,224 Common /collective funds Bonds — — 89,426 89,426 U.S. common stock — — 33,088 33,088 International equity — — 26,828 26,828 Total U.S. $ — $ — $ 223,566 $ 223,566 U.K. Plan Assets: Equities $ — $ — $ 6,594 $ 6,594 Bonds — — 12,529 12,529 Other — — 2,857 2,857 Total U.K. $ — $ — $ 21,980 $ 21,980 Total pension plan assets $ — $ — $ 245,546 $ 245,546 September 30, 2021 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. corporate and government bonds $ 23,654 $ 169,953 $ — $ 193,607 U.S. common stock mutual funds — $ — $ 44,743 $ 44,743 Common /collective funds U.S. common stock — — 19,672 19,672 International equity — — 16,245 16,245 Total U.S. $ 23,654 $ 169,953 $ 80,660 $ 274,267 U.K. Plan Assets: Equities $ — $ — $ 8,202 $ 8,202 Bonds — — 12,890 12,890 Other — — 2,344 2,344 Total U.K. $ — $ — $ 23,436 $ 23,436 Total pension plan assets $ 23,654 $ 169,953 $ 104,096 $ 297,703 |
Schedule of asset classes as a percent of total assets | Asset Class Target (1) Equity 30 % Fixed Income 70 % Real Estate and Other — % (1) The Company adjusts the target allocation based on the fair value of pension assets as a percentage of the projected pension obligation. In October 2021, the Company adjusted the target allocation to equity assets of 19% and fixed income assets of 81%. As a result of this change in allocation, the Company anticipates an expected long-term rate of return on plan assets of 5.25% |
Schedule of expected benefit payments | Postretirement Fiscal Year Ending September 30 Pension Health Care 2022 $ 15,712 $ 5,335 2023 16,090 5,584 2024 16,471 5,486 2025 16,749 5,445 2026 16,978 5,483 2027 - 2031 (in total) 86,154 27,238 |
Legal, Environmental and Othe_2
Legal, Environmental and Other Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Legal, Environmental and Other Contingencies | |
Schedule of expected maturities of post-closure monitoring and maintenance activities (discounted) | Expected maturities of post-closure monitoring and maintenance activities (discounted) Year Ending September 30, 2023 $ 68 2024 89 2025 67 2026 68 2027 and thereafter 204 $ 496 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Stockholder's Equity | |
Schedule of treasury stock activity | Year Ended Year Ended Year Ended September 30, September 30, September 30, 2019 2020 2021 Number of shares at beginning of year 42,113 53,469 58,909 Repurchases of common stock to satisfy employee payroll taxes 11,356 5,440 23,751 Repurchases of common stock from share repurchase plan — — 112,978 Number of shares at end of year 53,469 58,909 195,638 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Summary of activity under the restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2020 141,680 $ 27.71 Granted 55,718 $ 22.64 Forfeited / Canceled (500) $ 26.99 Vested (54,629) $ 24.97 Unvested at September 30, 2021 142,269 $ 26.78 Expected to vest 142,269 $ 26.78 |
Summary of activity under the deferred restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Unvested and deferred at September 30, 2020 5,152 $ 31.78 Granted 7,398 $ 22.64 Vested and deferred (5,152) $ 31.78 Unvested and deferred at September 30, 2021 7,398 $ 22.64 Vested and deferred at September 30, 2021 21,435 $ 31.97 |
Summary of activity under the 2016 Incentive Compensation Plan with respect to performance shares | Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2020 61,362 $ 43.22 Granted 39,031 $ 28.23 Vested (13,200) $ 38.43 Unvested at September 30, 2021 87,193 $ 37.24 |
Schedule of fair value assumptions used for grants under the stock option plan | Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 24, 2020 $ 5.91 3.89 % 0.39 % 43 % 5 years November 19, 2019 $ 9.66 2.38 % 1.65 % 35 % 5 years May 24, 2019 (Part 1) $ 8.75 2.88 % 2.11 % 40 % 5 years May 24, 2019 (Part 2) $ 7.94 2.88 % 2.11 % 40 % 5 years May 24, 2019 (Part 3) $ 7.23 2.88 % 2.11 % 40 % 5 years February 25, 2019 $ 10.86 2.52 % 2.47 % 41 % 5 years November 21, 2018 $ 10.61 2.59 % 2.88 % 41 % 5 years |
Summary of activity under the stock option plans | Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2020 561,457 $ 37.97 Granted 149,519 $ 22.64 Canceled (8,400) $ 40.26 Outstanding at September 30, 2021 702,576 $ 3,209 $ 34.68 6.81 yrs. Vested or expected to vest 638,826 $ 2,910 $ 34.68 4.88 yrs. Exercisable at September 30, 2021 413,584 $ 743 $ 38.85 5.63 yrs. |
Quarterly Data (unaudited) (Tab
Quarterly Data (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Data (unaudited) | |
Schedule of unaudited quarterly results of operations of the Company | 2020 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 108,453 $ 111,563 $ 80,576 $ 79,938 Gross profit 18,743 19,296 2,639 3,954 Gross profit percentage of net revenues 17.3% 17.3% 3.3% 4.9% Net income (loss) 3,268 4,068 (8,097) (5,717) Net income (loss) per share: Basic $ 0.26 $ 0.32 ($ 0.65) ($ 0.46) Diluted $ 0.26 $ 0.32 ($ 0.65) ($ 0.46) 2021 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 72,177 $ 82,063 $ 88,143 $ 95,278 Gross profit 987 8,385 13,658 16,700 Gross profit percentage of net revenues 1.4% 10.2% 15.5% 17.5% Net income (loss) (8,027) (3,632) 422 2,554 Net income (loss) per share: Basic ($ 0.65) ($ 0.29) $ 0.03 $ 0.20 Diluted ($ 0.65) ($ 0.29) $ 0.03 $ 0.20 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting | |
Schedule of revenues from external customers attributable to geographic areas | Year Ended September 30, 2019 2020 2021 Net Revenue by Geography: United States $ 300,728 $ 230,764 $ 179,127 Europe 119,246 91,480 85,555 China 24,329 17,398 30,668 Other 45,912 40,888 42,311 Net Revenues $ 490,215 $ 380,530 $ 337,661 Net Revenue by Product Group: High-temperature resistant alloys $ 392,172 $ 308,229 $ 253,246 Corrosive-resistant alloys 98,043 72,301 84,415 Net revenues $ 490,215 $ 380,530 $ 337,661 |
Schedule of long-lived assets by geographic areas | September 30, 2020 2021 Long-lived Assets by Geography United States $ 152,915 $ 140,263 Europe 6,754 6,834 China 150 151 Total long-lived assets $ 159,819 $ 147,248 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Valuation and Qualifying Accounts | |
Schedule of changes in valuation and qualifying accounts | Balance at Charges Balance at Beginning (credits) to End of of Period Expense Deductions (1) Period Allowance for doubtful accounts receivables: September 30, 2019 1,130 530 (1,219) 441 September 30, 2020 441 139 (35) 545 September 30, 2021 545 74 (66) 553 (1) Uncollectible accounts written off net of recoveries . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Schedule of company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis | September 30, 2020 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ — $ — $ — $ 245,546 $ 245,546 Total fair value $ — $ — $ — $ 245,546 $ 245,546 September 30, 2021 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ 23,654 $ 169,953 $ — $ 104,096 $ 297,703 Total fair value $ 23,654 $ 169,953 $ — $ 104,096 $ 297,703 |
Comprehensive Income (Loss) a_2
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Schedule of comprehensive income (loss) | Year Ended September 30, 2019 2020 2021 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income (loss) $ 9,745 $ (6,478) $ (8,683) Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ (48,052) 11,266 (36,786) $ 11,121 (2,381) 8,740 $ 68,941 (16,044) 52,897 Amortization of prior service cost 228 (58) 170 228 (58) 170 228 (52) 176 Amortization of (gain) loss 2,935 (772) 2,163 9,129 (2,409) 6,720 7,735 (1,802) 5,933 Foreign currency translation adjustment (3,620) — (3,620) 3,690 — 3,690 3,254 — 3,254 Other comprehensive income (loss) $ (48,509) $ 10,436 (38,073) $ 24,168 $ (4,848) 19,320 $ 80,158 $ (17,898) 62,260 Total comprehensive income (loss) $ (28,328) $ 12,842 $ 53,577 |
Schedule of accumulated other comprehensive income (loss) | Year Ended September 30, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2019 $ (53,811) $ (13,316) $ (13,511) $ (80,638) Other comprehensive income (loss) before reclassifications (8,604) 17,344 3,690 12,430 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 228 — — 228 Actuarial losses (1) 7,281 1,848 — 9,129 Tax benefit (1,978) (489) — (2,467) Net current-period other comprehensive income (loss) (3,073) 18,703 3,690 19,320 Reclass due to adoption of ASU 2018-02 (8,509) (4,774) — (13,283) Accumulated other comprehensive income (loss) as of September 30, 2020 $ (65,393) $ 613 $ (9,821) $ (74,601) Year Ended September 30, 2021 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2020 $ (65,393) $ 613 $ (9,821) $ (74,601) Other comprehensive income (loss) before reclassifications 44,493 8,404 3,254 56,151 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 228 — — 228 Actuarial losses (1) 7,735 — — 7,735 Tax benefit (1,854) — — (1,854) Net current-period other comprehensive income (loss) 50,602 8,404 3,254 62,260 Accumulated other comprehensive income (loss) as of September 30, 2021 $ (14,791) $ 9,017 $ (6,567) $ (12,341) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Long-term Obligations | |
Schedule of long-term obligations | September 30, September 30, 2020 2021 Finance lease obligations $ 7,809 $ 7,613 Environmental post-closure monitoring and maintenance activities 602 566 Long-term disability 251 231 Deferred dividends 139 210 Less amounts due within one year (292) (319) Long-term obligations (less current portion) $ 8,509 $ 8,301 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases | |
Schedule of lease costs | September 30, September 30, 2020 2021 Finance lease cost: Amortization of right of use asset $ 430 $ 430 Interest on lease liabilities 825 806 Total finance lease cost $ 1,255 $ 1,236 Operating lease cost $ 1,402 $ 1,687 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 825 806 Operating cash flows from operating leases 1,402 1,687 Financing cash flows from finance leases 170 195 Total cash paid for amounts included in measurement of lease liabilities $ 2,397 $ 2,688 |
Schedule of Balance Sheet operating and financing lease information | September 30, September 30, 2020 2021 Finance lease assets (included in Property, plant and equipment, net) $ 6,503 $ 6,218 Operating right of use lease assets (included in Other assets) $ 1,718 $ 1,494 Finance lease liabilities Accrued expenses $ 195 $ 228 Long-term obligations (less current portion) 7,614 7,385 Total Finance lease liabilities $ 7,809 $ 7,613 Operating lease liabilities $ 1,718 $ 1,494 Operating lease payments due within one year are recorded in Accrued expenses on the Consolidated Balance Sheet. September 30, September 30, 2020 2021 Weighted average lease term (Years) Finance leases 15.1 14.1 Operating leases 3.2 2.5 Weighted average discount rate Finance leases 10.33 % 10.32 % Operating leases 5.25 % 5.25 % |
Schedule of financing and operating lease maturity | The following is a table of future minimum lease payments during each fiscal year under operating and finance leases and the present value of the net minimum lease payments as of September 30, 2021. Finance Operating Future minimum lease payments Leases Leases 2022 $ 1,012 $ 840 2023 1,024 435 2024 1,032 291 2025 1,037 72 2026 1,044 — Thereafter 9,458 — Total minimum lease payments 14,607 1,638 Less: amount representing interest (6,994) (144) Present value of net minimum lease payments $ 7,613 $ 1,494 |
Foreign Currency Forward Cont_2
Foreign Currency Forward Contracts (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Foreign Currency Forward Contracts | |
Schedule of foreign exchange hedging gains and losses | Year Ended Year Ended Year Ended September 30, September 30, September 30, 2019 2020 2021 Foreign currency transactional gain (loss) $ 1,071 $ (567) $ (42) Foreign exchange forward contract gain (loss) (1,638) (273) (532) Net gain (loss) included in selling, general and administrative expense $ (567) $ (840) $ (574) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) | Nov. 17, 2006 |
Conversion Services Agreement | |
Revenue Recognition | |
Term of agreement to provide conversion services | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Intangible Assets | |||
Useful life | 15 years | ||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Change to goodwill | 0 | 0 | 0 |
Amortization of customer relationships, patents, non-competes and other intangibles | 467 | 228 | $ 255 |
Total intangible assets, Gross Amount | 6,897 | 6,191 | |
Finite-lived intangible assets, Accumulated Amortization | (1,311) | (1,135) | |
Carrying Amount | 5,586 | 5,056 | |
Customer relationships | |||
Intangible Assets | |||
Finite-lived intangible assets Gross Amount | 2,100 | 2,100 | |
Finite-lived intangible assets, Accumulated Amortization | (995) | (858) | |
Finite-lived intangible assets, Carrying Amount | 1,105 | 1,242 | |
Other Intangible Assets | |||
Intangible Assets | |||
Finite-lived intangible assets Gross Amount | 997 | 291 | |
Finite-lived intangible assets, Accumulated Amortization | (316) | (277) | |
Finite-lived intangible assets, Carrying Amount | 681 | 14 | |
Trademarks | |||
Intangible Assets | |||
Indefinite-lived intangible assets | $ 3,800 | 3,800 | |
Finite-lived intangible assets, Carrying Amount | $ 3,800 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Amortization Expense (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Estimate of Aggregate Amortization Expense: | |
2022 | $ 465 |
2023 | 462 |
2024 | 142 |
2025 | 123 |
2026 | 120 |
Thereafter | $ 474 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment | |||
Impairment recognized | $ 0 | $ 0 | $ 0 |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 14 years | ||
Land improvements | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Pension and Postretirement Benefits (Details) $ in Thousands | Jan. 01, 2007USD ($) |
Postretirement Health Care Benefits | |
Pension and Postretirement Benefits | |
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Research and Technical Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Research and Technical Costs | |||
Research and technical expense | $ 3,403 | $ 3,713 | $ 3,592 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Financial Instruments (Details) | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Financial Instruments | |||
Foreign currency exchange contracts outstanding | 0 | 0 | |
Credit losses | $ 74,000 | $ 139,000 | $ 530,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: Basic and Diluted | |||||||||||
Net income (loss) | $ 2,554 | $ 422 | $ (3,632) | $ (8,027) | $ (5,717) | $ (8,097) | $ 4,068 | $ 3,268 | $ (8,683) | $ (6,478) | $ 9,745 |
Dividends paid and accrued | (11,245) | (11,158) | (11,037) | ||||||||
Undistributed income (loss) - Basic | (19,928) | (17,636) | (1,292) | ||||||||
Undistributed income (loss) - Diluted | $ (19,928) | $ (17,636) | $ (1,292) | ||||||||
Percentage allocated to common shares | 100.00% | 100.00% | 100.00% | ||||||||
Undistributed income (loss) allocated to common shares - Basic | $ (19,928) | $ (17,636) | $ (1,292) | ||||||||
Undistributed income (loss) allocated to common shares - Diluted | (19,928) | (17,636) | (1,292) | ||||||||
Dividends paid on common shares outstanding | 11,098 | 11,071 | 10,987 | ||||||||
Net income (loss) available to common shares - Basic | (8,830) | (6,565) | 9,695 | ||||||||
Net income (loss) available to common shares - Diluted | $ (8,830) | $ (6,565) | $ 9,695 | ||||||||
Denominator: Basic and Diluted | |||||||||||
Weighted average shares outstanding - Basic (in shares) | 12,499,609 | 12,470,664 | 12,445,212 | ||||||||
Adjustment for dilutive potential common shares (in shares) | 35,696 | ||||||||||
Weighted average shares outstanding - Diluted (in shares) | 12,499,609 | 12,470,664 | 12,480,908 | ||||||||
Basic net income (loss) per share (in dollars per share) | $ 0.20 | $ 0.03 | $ (0.29) | $ (0.65) | $ (0.46) | $ (0.65) | $ 0.32 | $ 0.26 | $ (0.71) | $ (0.53) | $ 0.78 |
Diluted net income (loss) per share (in dollars per share) | $ 0.20 | $ 0.03 | $ (0.29) | $ (0.65) | $ (0.46) | $ (0.65) | $ 0.32 | $ 0.26 | $ (0.71) | $ (0.53) | $ 0.78 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Anti-dilutive Securities (Details) - shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee and Directors Stock Options | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 385,548 | 285,699 | 371,151 |
Restricted Stock | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 165,794 | 96,999 | |
Deferred Restricted Stock | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 30,529 | 34,498 | |
Performance Shares | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 76,266 | 47,195 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Weighted Average Common Shares (Details) - shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Percentage allocated to common shares - weighted average | |||
Weighted average shares outstanding - Basic (in shares) | 12,499,609 | 12,470,664 | 12,445,212 |
Total | 12,499,609 | 12,470,664 | 12,445,212 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2019 | Sep. 30, 2020 | Oct. 01, 2019 | |
Recently Issued Accounting Pronouncements | ||||
Lease, Practical Expedients, Package | true | true | ||
Accumulated other comprehensive income (loss) | $ (12,341) | $ (74,601) | ||
Retained earnings | $ 101,015 | $ 120,943 | ||
Adjustment | ASU 2018-02 | ||||
Recently Issued Accounting Pronouncements | ||||
Accumulated other comprehensive income (loss) | $ (13,283) | |||
Retained earnings | $ 13,283 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Other Information (Details) $ in Thousands, lb in Millions | Nov. 17, 2006USD ($)lb | Sep. 30, 2021USD ($)lb | Sep. 30, 2020USD ($) |
Revenues from Contracts with Customers | |||
Accounts receivable, gross | $ 58,517 | $ 51,663 | |
Accounts receivable, allowance for doubtful accounts | 553 | 545 | |
Contract liabilities | $ 12,829 | 15,329 | |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation | true | ||
Estimated product returns | $ 1,060 | $ 1,200 | |
Conversion Services Agreement | |||
Revenues from Contracts with Customers | |||
Revenue recognition period | 20 years | 20 years | |
Advance payments received | $ 50,000 | ||
Conversion Services Agreement | Maximum | |||
Revenues from Contracts with Customers | |||
Annual volume of titanium metal to be converted (in pounds) | lb | 10 | 10 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contracts with Customers | |||||||||||
Net revenues | $ 95,278 | $ 88,143 | $ 82,063 | $ 72,177 | $ 79,938 | $ 80,576 | $ 111,563 | $ 108,453 | $ 337,661 | $ 380,530 | $ 490,215 |
Product | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Net revenues | 316,081 | 356,825 | 465,131 | ||||||||
Aerospace | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Net revenues | 128,072 | 191,980 | 258,104 | ||||||||
Chemical processing | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Net revenues | 63,147 | 63,170 | 89,651 | ||||||||
Industrial gas turbine | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Net revenues | 66,772 | 56,576 | 59,430 | ||||||||
Other markets | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Net revenues | 58,090 | 45,099 | 57,946 | ||||||||
Other | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Net revenues | $ 21,580 | $ 23,705 | $ 25,084 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Inventories | ||
Raw Materials | $ 22,711 | $ 22,163 |
Work-in-process | 138,609 | 110,717 |
Finished Goods | 85,797 | 111,744 |
Other | 1,378 | 1,500 |
Total | $ 248,495 | $ 246,124 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Thousands | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($)item |
Property, plant and equipment | ||
Gross amount | $ 366,012 | $ 360,402 |
Less accumulated depreciation | (218,764) | (200,583) |
Net amount | 147,248 | 159,819 |
Finance lease assets | 6,218 | 6,503 |
Shanghai | ||
Property, plant and equipment | ||
Finance lease assets | 145 | 138 |
La Porte | ||
Property, plant and equipment | ||
Finance lease assets | $ 6,073 | $ 6,640 |
Number of leased buildings | item | 2 | 2 |
Land and land improvements | ||
Property, plant and equipment | ||
Gross amount | $ 10,266 | $ 10,066 |
Buildings and improvements | ||
Property, plant and equipment | ||
Gross amount | 46,241 | 46,135 |
Machinery and equipment | ||
Property, plant and equipment | ||
Gross amount | 306,161 | 301,496 |
Construction in process | ||
Property, plant and equipment | ||
Gross amount | $ 3,344 | $ 2,705 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Accrued Expenses | ||
Employee compensation | $ 9,424 | $ 8,826 |
Taxes, other than income taxes | 2,798 | 2,798 |
Accrued product returns | 1,060 | 1,200 |
Utilities | 1,000 | 714 |
Professional fees | 836 | 464 |
Finance lease obligation, current | 228 | 195 |
Employee termination liabilities | 59 | |
Management incentive compensation | 3,411 | |
Other | 1,343 | 501 |
Total accrued expenses | $ 20,100 | $ 14,757 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes | |||
Statutory federal tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Income (loss) before income taxes: | |||
U.S. | $ (11,417) | $ (9,831) | $ 790 |
Foreign | 1,634 | 2,333 | 12,580 |
Income (loss) before income taxes | (9,783) | (7,498) | 13,370 |
Current: | |||
U.S. Federal | 741 | (371) | (267) |
Foreign | 349 | 541 | 2,259 |
State | 228 | 29 | 2 |
Total | 1,318 | 199 | 1,994 |
Deferred: | |||
U.S. Federal | (2,986) | (2,266) | 1,423 |
Foreign | 470 | 56 | 132 |
State | (317) | (810) | 62 |
Valuation allowance | 415 | 1,801 | 14 |
Total | (2,418) | (1,219) | 1,631 |
Total provision for (benefit from) income taxes | $ (1,100) | $ (1,020) | $ 3,625 |
Income Taxes - Rate (Details)
Income Taxes - Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective income tax rate reconciliation | |||
Statutory federal tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Tax provision for income taxes at the statutory rate | $ (2,054) | $ (1,575) | $ 2,808 |
Foreign tax rate differentials | (59) | 107 | (157) |
Provision for state taxes, net of federal taxes | (84) | (145) | 247 |
U.S. tax on distributed and undistributed earnings of foreign subsidiaries | 198 | (289) | 486 |
Tax credits | (691) | (1,058) | (499) |
Federal and state tax rate change impact on deferred tax asset | 790 | (60) | 314 |
Change in valuation allowance | 415 | 1,801 | 14 |
Stock compensation | 138 | 24 | 655 |
Other, net | 247 | 175 | (243) |
Total provision for (benefit from) income taxes | $ (1,100) | $ (1,020) | $ 3,625 |
Effective tax rate (as a percent) | 11.20% | 13.60% | 27.10% |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 22,318 | $ 44,626 |
Inventories | 1,498 | 2,350 |
Accrued compensation and benefits | 2,034 | 1,474 |
Accrued expenses and other | 3,376 | 3,703 |
Tax attributes | 11,638 | 4,892 |
Other assets | 299 | 404 |
Valuation allowance | (3,891) | (3,476) |
Total deferred tax assets | 40,248 | 57,558 |
Deferred tax liabilities: | ||
Property, plant and equipment, net | (25,669) | (27,434) |
Intangible and other | (1,296) | (1,186) |
Other liabilities | (345) | (518) |
Total deferred tax liabilities | (27,310) | (29,138) |
Net deferred tax assets (liabilities) | 12,938 | 28,420 |
Conversion Services Agreement | ||
Deferred tax assets: | ||
TIMET Agreement | $ 2,976 | $ 3,585 |
Income Taxes - NOL (Details)
Income Taxes - NOL (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Net operating loss carryforwards | ||
Tax credit | $ 3,149,000 | |
Undistributed losses of foreign subsidiaries | 70,949,000 | |
Undistributed losses of foreign subsidiaries taxes | 0 | |
Uncertain tax positions | 0 | $ 0 |
U.S. | ||
Net operating loss carryforwards | ||
Net operating loss carryforwards | 21,048,000 | |
State | ||
Net operating loss carryforwards | ||
Net operating loss carryforwards | 23,728,000 | |
Tax credit | 5,895,000 | |
Foreign | ||
Net operating loss carryforwards | ||
Net operating loss carryforwards | 3,010,000 | |
Net operating loss carryforward valuation allowance | $ 742,000 |
Debt - US Revolving Credit Faci
Debt - US Revolving Credit Facility (Details) - USD ($) | Oct. 19, 2020 | Sep. 30, 2021 |
Credit Agreement | ||
Debt | ||
Term of debt agreement | 3 years | |
Maximum borrowing capacity | $ 100,000,000 | |
Increased maximum revolving loan amount at the request of the borrowers | $ 170,000,000 | |
Commitment fee (as a percent) | 0.425% | |
Excess availability, percentage, maximum | 12.50% | |
Excess availability, amount, maximum | $ 12,500,000 | |
Maximum quarterly amount of dividends which the Company may pay if in compliance with financial covenants | $ 3,500,000 | |
Percentage of equity interest in direct foreign subsidiaries pledged as collateral for borrowings | 100.00% | |
Credit Agreement | Prime rate | ||
Debt | ||
Floor rate (as a percent) | 0.50% | |
Credit Agreement | Minimum | Prime rate | ||
Debt | ||
Basis spread on variable rate (as a percent) | 1.25% | |
Credit Agreement | Minimum | Eurodollar rate | ||
Debt | ||
Basis spread on variable rate (as a percent) | 2.25% | |
Credit Agreement | Maximum | Prime rate | ||
Debt | ||
Basis spread on variable rate (as a percent) | 1.75% | |
Credit Agreement | Maximum | Eurodollar rate | ||
Debt | ||
Basis spread on variable rate (as a percent) | 2.75% | |
Letters of credit | ||
Debt | ||
Fronting fee (as a percent) | 0.125% | |
Domestic Line of Credit | ||
Debt | ||
Outstanding balance | $ 0 |
Debt - Overdraft Facilities (De
Debt - Overdraft Facilities (Details) - Sep. 30, 2021 € in Thousands, £ in Thousands, SFr in Thousands, $ in Thousands | GBP (£) | USD ($) | EUR (€) | CHF (SFr) |
Haynes International Ltd. overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | £ 1,700 | $ 2,285 | ||
Available borrowing capacity | £ 1,700 | 2,285 | ||
Haynes International S.A.R.L. overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | 278 | € 240 | ||
Available borrowing capacity | 278 | € 240 | ||
Haynes International AG overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | 1,068 | SFr 1,000 | ||
Available borrowing capacity | $ 1,068 | SFr 1,000 |
Pension Plan and Retirement B_3
Pension Plan and Retirement Benefits - Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
401(k) | |||
Defined Contribution Plans | |||
Expenses associated with plan | $ 1,748 | $ 1,950 | $ 1,940 |
401(k) | Employees with exceptions | |||
Defined Contribution Plans | |||
Percentage employer matches of the employee's percentage contribution matched. | 50.00% | ||
401(k) | Employees with exceptions | Maximum | |||
Defined Contribution Plans | |||
Percentage of employees' gross pay for which the employer contributes a matching contribution | 3.00% | ||
401(k) | Certain employees not eligible for U.S. pension plan | |||
Defined Contribution Plans | |||
Percentage employer matches of the employee's percentage contribution matched. | 60.00% | ||
401(k) | Certain employees not eligible for U.S. pension plan | Maximum | |||
Defined Contribution Plans | |||
Percentage of employees' gross pay for which the employer contributes a matching contribution | 6.00% | ||
Profit sharing plans | |||
Defined Contribution Plans | |||
Expenses associated with plan | $ 0 | $ 0 | $ 0 |
Pension Plan and Retirement B_4
Pension Plan and Retirement Benefits - Defined Benefit Plans - Expense (Details) - USD ($) $ in Thousands | Jan. 01, 2007 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Pension Plan and Retirement Benefits | ||||
Accrued pension and postretirement benefits | $ 101,350 | $ 193,864 | ||
Defined Benefit Pension Plans | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 4,713 | 6,867 | $ 2,661 | |
Accrued pension and postretirement benefits | 17,763 | 99,844 | ||
Contribution to plan | 21,000 | 6,517 | ||
Pension Plans Defined Benefit Us [Member] | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 21,000 | 6,000 | 4,500 | |
Pension Plans Defined Benefit Non Us [Member] | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 0 | 517 | 737 | |
Non-qualified pension plan | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 37 | 57 | 98 | |
Accrued pension and postretirement benefits | 623 | 681 | ||
Postretirement Health Care Benefits | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 3,387 | 6,757 | $ 6,158 | |
Accrued pension and postretirement benefits | 82,964 | 93,339 | ||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | |||
Contribution to plan | $ 2,819 | $ 2,840 |
Pension Plan and Retirement B_5
Pension Plan and Retirement Benefits - Defined Benefit Plans - Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Pension Plans | |||
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 345,390 | $ 321,478 | |
Service cost | 5,795 | 5,546 | |
Interest cost | 7,481 | 8,866 | $ 10,652 |
Actuarial gains (losses) | (27,225) | 24,183 | |
Benefits paid | (14,965) | (13,676) | |
Administrative expenses | (1,010) | (1,007) | |
Projected benefit obligation at end of year | 315,466 | 345,390 | 321,478 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 245,546 | 225,917 | |
Actual return on assets | 47,132 | 27,795 | |
Contribution to plan | 21,000 | 6,517 | |
Benefits paid | (14,965) | (13,676) | |
Administrative expenses | (1,010) | (1,007) | |
Fair value of plan assets at end of year | 297,703 | 245,546 | 225,917 |
Funded Status of Plan: | |||
Unfunded status | (17,763) | (99,844) | |
Postretirement Health Care Benefits | |||
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | 93,339 | 113,834 | |
Service cost | 1,095 | 1,416 | 318 |
Interest cost | 2,292 | 3,493 | 4,353 |
Actuarial gains (losses) | (10,943) | (22,564) | |
Benefits paid | (2,819) | (2,840) | |
Projected benefit obligation at end of year | 82,964 | 93,339 | $ 113,834 |
Change in Plan Assets: | |||
Contribution to plan | 2,819 | 2,840 | |
Benefits paid | (2,819) | (2,840) | |
Funded Status of Plan: | |||
Unfunded status | $ (82,964) | $ (93,339) |
Pension Plan and Retirement B_6
Pension Plan and Retirement Benefits - Defined Benefit Plans - Recognized in BS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Accrued pension and postretirement benefits: | ||
Current | $ (3,554) | $ (3,403) |
Non-current | (97,796) | (190,461) |
Accrued pension and postretirement benefits | (101,350) | (193,864) |
Accumulated other comprehensive loss: | ||
Net (gain) loss | 8,446 | 85,112 |
Prior service cost | 1,599 | 1,837 |
Total accumulated other comprehensive loss | 10,045 | 86,949 |
Accumulated benefit obligation | 308,284 | 333,618 |
Defined Benefit Pension Plans | ||
Accrued pension and postretirement benefits: | ||
Non-current | (17,763) | (99,844) |
Accrued pension and postretirement benefits | (17,763) | (99,844) |
Accumulated other comprehensive loss: | ||
Net (gain) loss | 19,150 | 84,873 |
Prior service cost | 1,599 | 1,837 |
Total accumulated other comprehensive loss | 20,749 | 86,710 |
Defined Benefit Pension Plans | Other assets | ||
Accrued pension and postretirement benefits: | ||
Noncurrent assets | 8,372 | 5,359 |
Non-current | (26,135) | (105,203) |
Postretirement Health Care Benefits | ||
Accrued pension and postretirement benefits: | ||
Current | (3,459) | (3,307) |
Non-current | (79,505) | (90,032) |
Accrued pension and postretirement benefits | (82,964) | (93,339) |
Accumulated other comprehensive loss: | ||
Net (gain) loss | (10,704) | 239 |
Total accumulated other comprehensive loss | (10,704) | 239 |
Non-qualified pension plan | ||
Accrued pension and postretirement benefits: | ||
Current | (95) | (96) |
Non-current | (528) | (585) |
Accrued pension and postretirement benefits | $ (623) | $ (681) |
Pension Plan and Retirement B_7
Pension Plan and Retirement Benefits - Defined Benefit Plans - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Pension Plans | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||
Service cost | $ 5,628 | $ 5,546 | $ 5,239 |
Service cost | 5,795 | 5,546 | |
Interest cost | 7,481 | 8,866 | 10,652 |
Expected return | (16,356) | (15,061) | (14,907) |
Amortization of prior service cost | 239 | 228 | 228 |
Recognized actuarial loss | 7,721 | 7,288 | 1,449 |
Net periodic benefit cost | 4,713 | 6,867 | 2,661 |
Postretirement Health Care Benefits | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||
Service cost | 1,095 | 1,416 | 318 |
Interest cost | 2,292 | 3,493 | 4,353 |
Recognized actuarial loss | 1,848 | 1,487 | |
Net periodic benefit cost | $ 3,387 | $ 6,757 | $ 6,158 |
Pension Plan and Retirement B_8
Pension Plan and Retirement Benefits - Benefit Obligation Assumptions (Details) - USD ($) $ in Thousands | Jan. 01, 2007 | Sep. 30, 2021 | Sep. 30, 2020 |
Pension Plans Defined Benefit Us [Member] | |||
Assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 2.63% | 2.25% | |
Rate of compensation increase (as a percent) | 2.50% | 2.50% | |
Pension Plans Defined Benefit Non Us [Member] | |||
Assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 2.00% | 1.50% | |
Postretirement Health Care Benefits | |||
Assumptions relating to health care cost trend rates | |||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5.00% | 5.00% | |
Effect of one percentage point change in assumed health care cost trend rates | |||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | ||
Assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 2.75% | 2.50% | |
Postretirement Health Care Benefits | Minimum | |||
Assumptions relating to health care cost trend rates | |||
Employee age required to participate in the plan | 65 years | 65 years | |
Postretirement Health Care Benefits | Maximum | |||
Assumptions relating to health care cost trend rates | |||
Employee age required to participate in the plan | 65 years | 65 years | |
Postretirement Health Care Benefits | Under 65 age group | |||
Assumptions relating to health care cost trend rates | |||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5.00% | 5.00% | |
Postretirement Health Care Benefits | Over 65 age group | |||
Assumptions relating to health care cost trend rates | |||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5.00% | 5.00% |
Pension Plan and Retirement B_9
Pension Plan and Retirement Benefits - Cost Assumptions (Details) | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Postretirement Health Care Benefits | ||||
Assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 2.50% | 3.13% | 4.13% | |
Pension Plans Defined Benefit Us [Member] | ||||
Assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 2.25% | 2.88% | 4.00% | |
Expected return on plan assets (as a percent) | 5.25% | 7.25% | 7.25% | 7.25% |
Rate of compensation increase (as a percent) | 2.50% | 2.50% | 2.50% | |
Pension Plans Defined Benefit Non Us [Member] | ||||
Assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 1.50% | 1.70% | 2.80% | |
Expected return on plan assets (as a percent) | 2.00% | 2.20% | 3.20% |
Pension Plan and Retirement _10
Pension Plan and Retirement Benefits - Plan Assets (Details) $ in Thousands | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Defined Benefit Pension Plans | |||
Asset allocation | |||
Total pension plan assets | $ 297,703 | $ 245,546 | $ 225,917 |
Defined Benefit Pension Plans | Level 1 | |||
Asset allocation | |||
Total pension plan assets | 23,654 | ||
Defined Benefit Pension Plans | Level 2 | |||
Asset allocation | |||
Total pension plan assets | 169,953 | ||
Defined Benefit Pension Plans | NAV | |||
Asset allocation | |||
Total pension plan assets | $ 104,096 | 245,546 | |
Pension Plans Defined Benefit Us [Member] | |||
Defined Benefit Plans | |||
Number of issuances of fixed income securities | item | 257 | ||
Number of issuers of fixed income securities | item | 210 | ||
Asset allocation | |||
Total pension plan assets | $ 274,267 | 223,566 | |
Pension Plans Defined Benefit Us [Member] | U.S. corporate and government bonds | |||
Asset allocation | |||
Total pension plan assets | 193,607 | ||
Pension Plans Defined Benefit Us [Member] | U.S. common stock mutual funds | |||
Asset allocation | |||
Total pension plan assets | 44,743 | 74,224 | |
Pension Plans Defined Benefit Us [Member] | Bonds | |||
Asset allocation | |||
Total pension plan assets | 89,426 | ||
Pension Plans Defined Benefit Us [Member] | U.S. common stock | |||
Asset allocation | |||
Total pension plan assets | 19,672 | 33,088 | |
Pension Plans Defined Benefit Us [Member] | International equity | |||
Asset allocation | |||
Total pension plan assets | 16,245 | 26,828 | |
Pension Plans Defined Benefit Us [Member] | Level 1 | |||
Asset allocation | |||
Total pension plan assets | 23,654 | ||
Pension Plans Defined Benefit Us [Member] | Level 1 | U.S. corporate and government bonds | |||
Asset allocation | |||
Total pension plan assets | 23,654 | ||
Pension Plans Defined Benefit Us [Member] | Level 2 | |||
Asset allocation | |||
Total pension plan assets | 169,953 | ||
Pension Plans Defined Benefit Us [Member] | Level 2 | U.S. corporate and government bonds | |||
Asset allocation | |||
Total pension plan assets | 169,953 | ||
Pension Plans Defined Benefit Us [Member] | NAV | |||
Asset allocation | |||
Total pension plan assets | 80,660 | 223,566 | |
Pension Plans Defined Benefit Us [Member] | NAV | U.S. common stock mutual funds | |||
Asset allocation | |||
Total pension plan assets | 44,743 | 74,224 | |
Pension Plans Defined Benefit Us [Member] | NAV | Bonds | |||
Asset allocation | |||
Total pension plan assets | 89,426 | ||
Pension Plans Defined Benefit Us [Member] | NAV | U.S. common stock | |||
Asset allocation | |||
Total pension plan assets | 19,672 | 33,088 | |
Pension Plans Defined Benefit Us [Member] | NAV | International equity | |||
Asset allocation | |||
Total pension plan assets | 16,245 | 26,828 | |
Pension Plans Defined Benefit Non Us [Member] | |||
Asset allocation | |||
Total pension plan assets | 23,436 | 21,980 | |
Pension Plans Defined Benefit Non Us [Member] | Bonds | |||
Asset allocation | |||
Total pension plan assets | 12,890 | 12,529 | |
Pension Plans Defined Benefit Non Us [Member] | Equity | |||
Asset allocation | |||
Total pension plan assets | 8,202 | 6,594 | |
Pension Plans Defined Benefit Non Us [Member] | Other | |||
Asset allocation | |||
Total pension plan assets | 2,344 | 2,857 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | |||
Asset allocation | |||
Total pension plan assets | 23,436 | 21,980 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Bonds | |||
Asset allocation | |||
Total pension plan assets | 12,890 | 12,529 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Equity | |||
Asset allocation | |||
Total pension plan assets | 8,202 | 6,594 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Other | |||
Asset allocation | |||
Total pension plan assets | $ 2,344 | $ 2,857 |
Pension Plan and Retirement _11
Pension Plan and Retirement Benefits - Investment Strategy (Details) | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 31, 2021 | |
Pension Plans Defined Benefit Us [Member] | |||||
Asset allocation | |||||
Plan's return on assets assumption (as a percent) | 5.25% | 7.25% | 7.25% | 7.25% | |
Pension Plans Defined Benefit Us [Member] | Equity | |||||
Asset allocation | |||||
Target plan asset allocation (as a percent) | 30.00% | 19.00% | |||
Pension Plans Defined Benefit Us [Member] | Fixed Income | |||||
Asset allocation | |||||
Target plan asset allocation (as a percent) | 70.00% | 81.00% | |||
Pension Plans Defined Benefit Non Us [Member] | |||||
Asset allocation | |||||
Plan's return on assets assumption (as a percent) | 2.00% | 2.20% | 3.20% |
Pension Plan and Retirement _12
Pension Plan and Retirement Benefits - Expected benefit payments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Defined Benefit Pension Plans | |
Expected benefit payments | |
2022 | $ 15,712 |
2023 | 16,090 |
2024 | 16,471 |
2025 | 16,749 |
2026 | 16,978 |
2027-2031 (in total) | 86,154 |
Postretirement Health Care Benefits | |
Expected benefit payments | |
2022 | 5,335 |
2023 | 5,584 |
2024 | 5,486 |
2025 | 5,445 |
2026 | 5,483 |
2027-2031 (in total) | $ 27,238 |
Legal, Environmental and Othe_3
Legal, Environmental and Other Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Environmental post-closure monitoring and maintenance activities | $ 566 | $ 602 |
Long Term Obligations | ||
Maturities of long-term obligations (discounted) | ||
2023 | 68 | |
2024 | 89 | |
2025 | 67 | |
2026 | 68 | |
2027 and thereafter | 204 | |
Long-term obligations (less current portion) | 496 | |
Pending litigation | ||
Environmental post-closure monitoring and maintenance activities | $ 566 |
Stockholder's Equity - Dividend
Stockholder's Equity - Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholder's Equity | |||
Dividends paid | $ 11,175 | $ 11,058 | $ 11,011 |
Stockholder's Equity - Treasury
Stockholder's Equity - Treasury stock activity (Details) - shares | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholder's Equity | ||||
Number of shares at beginning of year | 58,909 | 53,469 | 42,113 | |
Repurchases of common stock to satisfy employee payroll taxes | 23,751 | 23,751 | 5,440 | 11,356 |
Repurchases of common stock from share repurchase plan | 112,978 | |||
Number of shares at end of year | 195,638 | 195,638 | 58,909 | 53,469 |
Stockholder's Equity - Share Re
Stockholder's Equity - Share Repurchase Plan (Details) $ in Thousands | Jul. 28, 2021USD ($)agreement | Sep. 30, 2021USD ($)shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020shares | Sep. 30, 2019shares |
Stockholder's Equity | |||||
Repurchases of common stock from share repurchase plan | shares | 112,978 | ||||
Repurchases of common stock to satisfy employee payroll taxes | shares | 23,751 | 23,751 | 5,440 | 11,356 | |
Aggregate purchase price of shares repurchased to satisfy employee payroll taxes | $ 741 | ||||
Share Repurchase Plan | |||||
Stockholder's Equity | |||||
Available cash to purchase shares | $ 20,000 | ||||
Number of agreements with broker to repurchase shares | agreement | 2 | ||||
Repurchases of common stock from share repurchase plan | shares | 112,978 | ||||
Aggregate purchase price of shares repurchased from share repurchase plan | $ 4,245 | ||||
Payment of Commissions to repurchase stock | 2 | ||||
Remaining authorized repurchase amount | $ 15,755 | $ 15,755 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Plan and Performance Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Jan. 24, 2020 | Mar. 01, 2016 | |
Restricted Stock | 2009 Restricted Stock Plan | |||||
Restricted stock plan activity, number of shares | |||||
Unvested and deferred at beginning of the period (in shares) | 141,680 | ||||
Granted (in shares) | 55,718 | ||||
Forfeited / Canceled (in shares) | (500) | ||||
Vested and deferred (in shares) | (54,629) | ||||
Unvested and deferred at end of the period (in shares) | 142,269 | 141,680 | |||
Expected to vest (in shares) | 142,269 | ||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 27.71 | ||||
Granted (in dollars per share) | 22.64 | ||||
Forfeited / Canceled (in dollars per share) | 26.99 | ||||
Vested and deferred (in dollars per share) | 24.97 | ||||
Unvested and deferred at end of the period (in dollars per share) | 26.78 | $ 27.71 | |||
Expected to vest (in dollars per share) | $ 26.78 | ||||
Deferred Restricted Stock plan activity, number of shares | |||||
Vested (in shares) | 54,629 | ||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Vested and deferred (in dollars per share) | $ 24.97 | ||||
Restricted stock plan activity, other disclosures | |||||
Compensation expense | $ 2,024 | $ 1,160 | $ 631 | ||
Remaining unrecognized compensation expense | $ 1,484 | ||||
Weighted average period for recognition | 11 months 15 days | ||||
Restricted Stock | 2009 Restricted Stock Plan | Employee | |||||
Restricted stock plan activity, other disclosures | |||||
Repurchase of stock from employees (in shares) | 23,751 | ||||
Average purchase price (in dollars per share) | $ 31.20 | ||||
Restricted Stock | 2016 Restricted Stock Plan | |||||
Restricted stock plan activity, number of shares | |||||
Unvested and deferred at beginning of the period (in shares) | 5,152 | ||||
Granted (in shares) | 7,398 | ||||
Vested and deferred (in shares) | (5,152) | ||||
Unvested and deferred at end of the period (in shares) | 7,398 | 5,152 | |||
Expected to vest (in shares) | 21,435 | ||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 31.78 | ||||
Granted (in dollars per share) | 22.64 | ||||
Vested and deferred (in dollars per share) | 31.78 | ||||
Unvested and deferred at end of the period (in dollars per share) | 22.64 | $ 31.78 | |||
Expected to vest (in dollars per share) | $ 31.97 | ||||
Deferred Restricted Stock plan activity, number of shares | |||||
Vested (in shares) | 5,152 | ||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Vested and deferred (in dollars per share) | $ 31.78 | ||||
Restricted stock plan activity, other disclosures | |||||
Compensation expense | $ 188 | $ 271 | 442 | ||
Remaining unrecognized compensation expense | $ 28 | ||||
Weighted average period for recognition | 2 months 1 day | ||||
Restricted Stock, Restricted Stock Units and Performance Shares | |||||
Stock-Based Compensation | |||||
Number of shares authorized under the plan | 275,000 | ||||
Restricted Stock, Restricted Stock Units and Performance Shares | 2020 Incentive Compensation Plan | |||||
Stock-Based Compensation | |||||
Number of shares authorized under the plan | 250,000 | ||||
Performance Shares | |||||
Stock-Based Compensation | |||||
Award vesting period | 3 years | ||||
Performance Shares | Certain Employees | |||||
Restricted stock plan activity, number of shares | |||||
Unvested and deferred at beginning of the period (in shares) | 61,362 | ||||
Granted (in shares) | 39,031 | ||||
Vested and deferred (in shares) | (13,200) | ||||
Unvested and deferred at end of the period (in shares) | 87,193 | 61,362 | |||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 43.22 | ||||
Granted (in dollars per share) | 28.23 | ||||
Vested and deferred (in dollars per share) | 38.43 | ||||
Unvested and deferred at end of the period (in dollars per share) | $ 37.24 | $ 43.22 | |||
Deferred Restricted Stock plan activity, number of shares | |||||
Vested (in shares) | 13,200 | ||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Vested and deferred (in dollars per share) | $ 38.43 | ||||
Restricted stock plan activity, other disclosures | |||||
Compensation expense | $ 1,082 | $ 849 | $ 738 | ||
Remaining unrecognized compensation expense | $ 1,150 | ||||
Weighted average period for recognition | 1 year 6 months 3 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plans (Details) - Employee and Directors Stock Options - USD ($) $ / shares in Units, $ in Thousands | Nov. 24, 2020 | Nov. 19, 2019 | May 24, 2019 | Feb. 25, 2019 | Nov. 21, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Information relating to stock options | ||||||||
Expiration period | 10 years | |||||||
Vesting of awards per year (as a percent) | 33.33% | |||||||
Award vesting period | 3 years | |||||||
Fair value assumptions | ||||||||
Fair Value (in dollars per share) | $ 5.91 | $ 9.66 | $ 10.86 | $ 10.61 | ||||
Dividend Yield (as a percent) | 3.89% | 2.38% | 2.52% | 2.59% | ||||
Risk-Free Interest Rate (as a percent) | 0.39% | 1.65% | 2.47% | 2.88% | ||||
Expected Volatility (as a percent) | 43.00% | 35.00% | 41.00% | 41.00% | ||||
Expected Life | 5 years | 5 years | 5 years | 5 years | ||||
Stock-based employee compensation expense | $ 1,180 | $ 1,038 | $ 764 | |||||
Remaining unrecognized compensation expense | $ 1,193 | |||||||
Weighted average period for recognition | 1 year 3 days | |||||||
Activity under stock option plans, number of shares | ||||||||
Outstanding at beginning of the period (in shares) | 561,457 | |||||||
Granted (in shares) | 149,519 | |||||||
Canceled (in shares) | (8,400) | |||||||
Outstanding at end of the period (in shares) | 702,576 | 561,457 | ||||||
Vested or expected to vest (in shares) | 638,826 | |||||||
Exercisable at end of period (in shares) | 413,584 | |||||||
Outstanding at end of period, Aggregate Intrinsic Value | $ 3,209 | |||||||
Vested or expected to vest, Aggregate Intrinsic Value | 2,910 | |||||||
Exercisable at end of the period, Aggregate Intrinsic Value | $ 743 | |||||||
Weighted Average Exercise Prices | ||||||||
Outstanding at beginning of the period (in dollars per share) | $ 37.97 | |||||||
Granted (in dollars per share) | 22.64 | |||||||
Canceled (in dollars per share) | 40.26 | |||||||
Outstanding at end of period (in dollars per share) | 34.68 | $ 37.97 | ||||||
Vested or expected to vest (in dollars per share) | 34.68 | |||||||
Exercisable at end of the period (in dollars per share) | $ 38.85 | |||||||
Outstanding at end of the period, Weighted Average Remaining Contractual Life | 6 years 9 months 21 days | |||||||
Vested or expected to vest, Weighted Average Remaining Contractual Life | 4 years 10 months 17 days | |||||||
Exercisable at end of the period, Weighted Average Remaining Contractual Life | 5 years 7 months 17 days | |||||||
Exercise Price 1 | ||||||||
Fair value assumptions | ||||||||
Fair Value (in dollars per share) | $ 8.75 | |||||||
Dividend Yield (as a percent) | 2.88% | |||||||
Risk-Free Interest Rate (as a percent) | 2.11% | |||||||
Expected Volatility (as a percent) | 40.00% | |||||||
Expected Life | 5 years | |||||||
Exercise Price 2 | ||||||||
Fair value assumptions | ||||||||
Fair Value (in dollars per share) | $ 7.94 | |||||||
Dividend Yield (as a percent) | 2.88% | |||||||
Risk-Free Interest Rate (as a percent) | 2.11% | |||||||
Expected Volatility (as a percent) | 40.00% | |||||||
Expected Life | 5 years | |||||||
Exercise Price 3 | ||||||||
Fair value assumptions | ||||||||
Fair Value (in dollars per share) | $ 7.23 | |||||||
Dividend Yield (as a percent) | 2.88% | |||||||
Risk-Free Interest Rate (as a percent) | 2.11% | |||||||
Expected Volatility (as a percent) | 40.00% | |||||||
Expected Life | 5 years | |||||||
2020 Incentive Compensation Plan | ||||||||
Information relating to stock options | ||||||||
Number of shares authorized | 350,000 |
Quarterly Data (unaudited) (Det
Quarterly Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Quarterly Data (unaudited) | |||||||||||
Net revenues | $ 95,278 | $ 88,143 | $ 82,063 | $ 72,177 | $ 79,938 | $ 80,576 | $ 111,563 | $ 108,453 | $ 337,661 | $ 380,530 | $ 490,215 |
Gross profit | $ 16,700 | $ 13,658 | $ 8,385 | $ 987 | $ 3,954 | $ 2,639 | $ 19,296 | $ 18,743 | 39,730 | 44,632 | 65,503 |
Gross profit percentage of net revenue (as a percent) | 17.50% | 15.50% | 10.20% | 1.40% | 4.90% | 3.30% | 17.30% | 17.30% | |||
Net income (loss) | $ 2,554 | $ 422 | $ (3,632) | $ (8,027) | $ (5,717) | $ (8,097) | $ 4,068 | $ 3,268 | $ (8,683) | $ (6,478) | $ 9,745 |
Net income (loss) per share: | |||||||||||
Basic (dollars per share) | $ 0.20 | $ 0.03 | $ (0.29) | $ (0.65) | $ (0.46) | $ (0.65) | $ 0.32 | $ 0.26 | $ (0.71) | $ (0.53) | $ 0.78 |
Diluted (dollars per share) | $ 0.20 | $ 0.03 | $ (0.29) | $ (0.65) | $ (0.46) | $ (0.65) | $ 0.32 | $ 0.26 | $ (0.71) | $ (0.53) | $ 0.78 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting | |||||||||||
Number of Business Segment | segment | 1 | ||||||||||
Net revenues | $ 95,278 | $ 88,143 | $ 82,063 | $ 72,177 | $ 79,938 | $ 80,576 | $ 111,563 | $ 108,453 | $ 337,661 | $ 380,530 | $ 490,215 |
Long-lived assets | 147,248 | 159,819 | 147,248 | 159,819 | |||||||
High-temperature resistant alloys | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 253,246 | 308,229 | 392,172 | ||||||||
Corrosive-resistant alloys | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 84,415 | 72,301 | 98,043 | ||||||||
U.S. pension plan | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 179,127 | 230,764 | 300,728 | ||||||||
Long-lived assets | 140,263 | 152,915 | 140,263 | 152,915 | |||||||
Europe | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 85,555 | 91,480 | 119,246 | ||||||||
Long-lived assets | 6,834 | 6,754 | 6,834 | 6,754 | |||||||
China | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 30,668 | 17,398 | 24,329 | ||||||||
Long-lived assets | $ 151 | $ 150 | 151 | 150 | |||||||
Other | |||||||||||
Segment Reporting | |||||||||||
Net revenues | $ 42,311 | $ 40,888 | $ 45,912 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 545 | $ 441 | $ 1,130 |
Charges (credits) to Expense | 74 | 139 | 530 |
Deductions | (66) | (35) | (1,219) |
Balance at End of Period | $ 553 | $ 545 | $ 441 |
Deferred Revenue (Details)
Deferred Revenue (Details) - Conversion Services Agreement $ in Thousands, lb in Millions | Nov. 17, 2006USD ($)lb | Sep. 30, 2021lb |
Deferred revenue | ||
Term of agreement to provide conversion services | 20 years | |
Up-front/advance payment received | $ 50,000 | |
Up Front Fees Received | $ 50,000 | |
Additional volume of titanium metal to be converted on exercise of option by service receiver (in pounds) | lb | 10 | |
Liquidated damages | $ 25,000 | |
Revenue recognition period | 20 years | 20 years |
Maximum | ||
Deferred revenue | ||
Annual volume of titanium metal to be converted (in pounds) | lb | 10 | 10 |
Amount of loan offered by counterparty | $ 12,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value measurements on recurring basis - Total - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Assets: | ||
Total fair value | $ 297,703 | $ 245,546 |
Defined Benefit Pension Plans | ||
Assets: | ||
Total fair value | 297,703 | 245,546 |
Level 1 | ||
Assets: | ||
Total fair value | 23,654 | |
Level 1 | Defined Benefit Pension Plans | ||
Assets: | ||
Total fair value | 23,654 | |
Level 2 | ||
Assets: | ||
Total fair value | 169,953 | |
Level 2 | Defined Benefit Pension Plans | ||
Assets: | ||
Total fair value | 169,953 | |
NAV | ||
Assets: | ||
Total fair value | 104,096 | 245,546 |
NAV | Defined Benefit Pension Plans | ||
Assets: | ||
Total fair value | $ 104,096 | $ 245,546 |
Comprehensive Income (Loss) a_3
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Comprehensive Income (Loss) | |||||||||||
Net income (loss) | $ 2,554 | $ 422 | $ (3,632) | $ (8,027) | $ (5,717) | $ (8,097) | $ 4,068 | $ 3,268 | $ (8,683) | $ (6,478) | $ 9,745 |
Other comprehensive income (loss), Pre-tax | 80,158 | 24,168 | (48,509) | ||||||||
Other comprehensive income (loss), Tax | (17,898) | (4,848) | 10,436 | ||||||||
Other comprehensive income (loss) | 62,260 | 19,320 | (38,073) | ||||||||
Comprehensive income (loss) | 53,577 | 12,842 | (28,328) | ||||||||
Pension and postretirement: Net gain (loss) arising during period | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | 68,941 | 11,121 | (48,052) | ||||||||
Other comprehensive income (loss), Tax | (16,044) | (2,381) | 11,266 | ||||||||
Other comprehensive income (loss) | 52,897 | 8,740 | (36,786) | ||||||||
Pension and postretirement: Less: amortization of prior service cost | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | 228 | 228 | 228 | ||||||||
Other comprehensive income (loss), Tax | (52) | (58) | (58) | ||||||||
Other comprehensive income (loss) | 176 | 170 | 170 | ||||||||
Pension and postretirement: Less: amortization of gain (loss) | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | 7,735 | 9,129 | 2,935 | ||||||||
Other comprehensive income (loss), Tax | (1,802) | (2,409) | (772) | ||||||||
Other comprehensive income (loss) | 5,933 | 6,720 | 2,163 | ||||||||
Accumulated Translation Adjustment | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | 3,254 | 3,690 | (3,620) | ||||||||
Other comprehensive income (loss) | $ 3,254 | $ 3,690 | $ (3,620) |
Comprehensive Income (Loss) a_4
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component - Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated other comprehensive income (loss) | |||
Balance | $ 301,501 | $ 296,275 | $ 333,220 |
Other comprehensive income (loss) | 62,260 | 19,320 | (38,073) |
Balance | 343,321 | 301,501 | 296,275 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss) | |||
Balance | (74,601) | (80,638) | (42,565) |
Other comprehensive income (loss) before reclassifications | 56,151 | 12,430 | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (1,854) | (2,467) | |
Other comprehensive income (loss) | 62,260 | 19,320 | (38,073) |
Balance | (12,341) | (74,601) | (80,638) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | |||
Accumulated other comprehensive income (loss) | |||
Balance | (65,393) | (53,811) | |
Other comprehensive income (loss) before reclassifications | 44,493 | (8,604) | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (1,854) | (1,978) | |
Other comprehensive income (loss) | 50,602 | (3,073) | |
Balance | (14,791) | (65,393) | (53,811) |
Accumulated Defined Benefit Plans Adjustment | Postretirement Health Care Benefits | |||
Accumulated other comprehensive income (loss) | |||
Balance | 613 | (13,316) | |
Other comprehensive income (loss) before reclassifications | 8,404 | 17,344 | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (489) | ||
Other comprehensive income (loss) | 8,404 | 18,703 | |
Balance | 9,017 | 613 | (13,316) |
Pension and postretirement: Less: amortization of prior service cost | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 228 | 228 | |
Other comprehensive income (loss) | 176 | 170 | 170 |
Pension and postretirement: Less: amortization of prior service cost | Defined Benefit Pension Plans | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 228 | 228 | |
Pension and postretirement: Less: amortization of gain (loss) | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 7,735 | 9,129 | |
Other comprehensive income (loss) | 5,933 | 6,720 | 2,163 |
Pension and postretirement: Less: amortization of gain (loss) | Defined Benefit Pension Plans | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 7,735 | 7,281 | |
Pension and postretirement: Less: amortization of gain (loss) | Postretirement Health Care Benefits | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 1,848 | ||
Accumulated Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Balance | (9,821) | (13,511) | |
Other comprehensive income (loss) before reclassifications | 3,254 | 3,690 | |
Other comprehensive income (loss) | 3,254 | 3,690 | (3,620) |
Balance | $ (6,567) | (9,821) | $ (13,511) |
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (13,283) | ||
ASU 2018-02 | Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (8,509) | ||
ASU 2018-02 | Accumulated Defined Benefit Plans Adjustment | Postretirement Health Care Benefits | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (4,774) |
Long-term Obligations (Details)
Long-term Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Long-term obligations (less current portion) | ||
Finance lease obligations | $ 7,613 | $ 7,809 |
Environmental post-closure monitoring and maintenance activities | 566 | 602 |
Long-term disability | 231 | 251 |
Deferred dividends | 210 | 139 |
Less amounts due within one year | (319) | (292) |
Long-term obligations (less current portion) | $ 8,301 | $ 8,509 |
Leases - Other (Details)
Leases - Other (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Sep. 30, 2021 | Sep. 30, 2019 |
Lessee, Operating Lease, Existence of Residual Value Guarantee | true | ||
Lessee, Operating Lease, Existence of Option to Terminate | true | ||
Lease, Practical Expedients, Package | true | true | |
Construction costs related to buildout of the facility | |||
Lease term | 20 years | ||
Minimum | |||
Operating lease remaining term | 1 year | ||
Finance lease remaining term | 1 year | ||
Maximum | |||
Operating lease remaining term | 15 years | ||
Finance lease remaining term | 15 years | ||
Property Plant And Equipment | |||
Construction costs related to buildout of the facility | |||
Build out of facility | $ 4,100 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Finance lease cost: | ||
Amortization of right of use asset | $ 430 | $ 430 |
Interest on lease liabilities | 806 | 825 |
Total finance lease cost | 1,236 | 1,255 |
Operating lease costs: | ||
Operating lease cost | 1,687 | 1,402 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flow from finance leases | 806 | 825 |
Operating cash flow from operating leases | 1,687 | 1,402 |
Financing cash flows from finance leases | 195 | 170 |
Total cash paid for amount included in measurement of lease liabilities | $ 2,688 | $ 2,397 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Leases | ||
Finance lease assets (included in Property, plant and equipment, net) | $ 6,218 | $ 6,503 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Operating right of use lease assets (included in Other assets) | $ 1,494 | $ 1,718 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Prepaid Expenses and Deferred Costs, Noncurrent | Prepaid Expenses and Deferred Costs, Noncurrent |
Finance lease liabilities | ||
Accrued expenses | $ 228 | $ 195 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Long-term obligations (less current portion) | $ 7,385 | $ 7,614 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Capital Leases Future Minimum Payments And Accrual For Environmental Loss Contingencies Noncurrent | Capital Leases Future Minimum Payments And Accrual For Environmental Loss Contingencies Noncurrent |
Total Finance lease liabilities | $ 7,613 | $ 7,809 |
Operating lease liabilities | ||
Operating lease liabilities | $ 1,494 | $ 1,718 |
Weighted average lease term Finance leases | 14 years 1 month 6 days | 15 years 1 month 6 days |
Weighted average lease term Operating leases | 2 years 6 months | 3 years 2 months 12 days |
Weighted average discount rate Finance leases (as a percent) | 10.32% | 10.33% |
Weighted average discount rate Operating leases (as a percent) | 5.25% | 5.25% |
Leases - Rolling Maturity (Deta
Leases - Rolling Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Finance Leases Rolling Maturity | ||
2022 | $ 1,012 | |
2023 | 1,024 | |
2024 | 1,032 | |
2025 | 1,037 | |
2026 | 1,044 | |
Thereafter | 9,458 | |
Total minimum lease payments | 14,607 | |
Less: amount representing interest | (6,994) | |
Total Finance lease liabilities | 7,613 | $ 7,809 |
Operating Leases Rolling Maturity | ||
2022 | 840 | |
2023 | 435 | |
2024 | 291 | |
2025 | 72 | |
Total minimum lease payments | 1,638 | |
Less: amount representing interest | (144) | |
Present value of minimum lease payments | $ 1,494 | $ 1,718 |
Foreign Currency Forward Cont_3
Foreign Currency Forward Contracts (Details) - Selling, General and Administrative Expenses - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Foreign currency balance sheet hedging | |||
Foreign currency net gain (loss) | $ (574) | $ (840) | $ (567) |
Foreign Currency Transaction | |||
Foreign currency balance sheet hedging | |||
Foreign currency net gain (loss) | (42) | (567) | 1,071 |
Foreign Exchange Forward | |||
Foreign currency balance sheet hedging | |||
Foreign currency net gain (loss) | $ (532) | $ (273) | $ (1,638) |