Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 31, 2016 | Mar. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SIFCO INDUSTRIES INC | ||
Entity Central Index Key | 90,168 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 24,717,504 | ||
Entity Common Stock, Shares Outstanding | 5,525,256 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 119,121 | $ 109,301 |
Cost of goods sold | 107,039 | 93,569 |
Gross profit | 12,082 | 15,732 |
Selling, general and administrative expenses | 17,359 | 19,167 |
Goodwill impairment | 4,164 | 0 |
Amortization of intangible assets | 2,593 | 2,245 |
Loss on disposal or impairment of operating assets | 31 | 63 |
Operating loss | (12,065) | (5,743) |
Interest income | (51) | (10) |
Interest expense | 1,715 | 584 |
Foreign currency exchange loss, net | 33 | 215 |
Other income, net | (429) | (507) |
Loss from continuing operations before income tax benefit | (13,333) | (6,025) |
Income tax benefit | (1,998) | (2,444) |
Loss from continuing operations | (11,335) | (3,581) |
Income from discontinued operations, net of tax | 0 | 709 |
Net Loss | $ (11,335) | $ (2,872) |
Loss per share from continuing operations | ||
Basic (in dollars per share) | $ (2.07) | $ (0.66) |
Diluted (in dollars per share) | (2.07) | (0.66) |
Income per share from discontinued operations, net of tax | ||
Basic (in dollars per share) | 0 | 0.13 |
Diluted (in dollars per share) | 0 | 0.13 |
Net loss per share | ||
Basic (in dollars per share) | (2.07) | (0.53) |
Diluted (in dollars per share) | $ (2.07) | $ (0.53) |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||
Weighted-average number of common shares (basic) (in shares) | 5,475 | 5,438 |
Weighted-average number of common shares (diluted) (in shares) | 5,475 | 5,438 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (11,335) | $ (2,872) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment, net of tax $0 and $0, respectively | 108 | 120 |
Retirement plan liability adjustment, net of tax $0 and $850, respectively | (940) | (1,500) |
Interest rate swap agreement adjustment, net of tax $0 and $0, respectively | (30) | 5 |
Comprehensive loss | $ (12,197) | $ (4,247) |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment tax | $ 0 | $ 0 |
Retirement plan liability adjustment tax | 0 | 850 |
Interest rate swap agreement adjustment tax | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 471 | $ 667 |
Receivables, net of allowance for doubtful accounts of $706 and $1,127, respectively | 25,158 | 36,024 |
Inventories, net | 28,496 | 27,943 |
Refundable income taxes | 1,773 | 2,516 |
Deferred income taxes | 0 | 2,785 |
Prepaid expenses and other current assets | 2,177 | 1,600 |
Total current assets | 58,075 | 71,535 |
Property, plant and equipment, net | 48,958 | 54,865 |
Intangible assets, net | 11,138 | 13,265 |
Goodwill | 11,748 | 16,480 |
Other assets | 538 | 544 |
Total assets | 130,457 | 156,689 |
Current liabilities: | ||
Current maturities of long-term debt | 31,009 | 10,503 |
Accounts payable | 14,520 | 14,201 |
Accrued liabilities | 5,234 | 8,446 |
Total current liabilities | 50,763 | 33,150 |
Long-term debt, net of current maturities | 7,623 | 38,426 |
Deferred income taxes | 2,929 | 4,849 |
Pension liability | 8,341 | 6,743 |
Other long-term liabilities | 431 | 452 |
Shareholders’ equity: | ||
Serial preferred shares, no par value, authorized 1,000 shares | 0 | 0 |
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares – 5,525 at September 30, 2016 and 5,468 at September 30, 2015 | 5,525 | 5,468 |
Additional paid-in capital | 9,219 | 9,778 |
Retained earnings | 58,476 | 69,811 |
Accumulated other comprehensive loss | (12,850) | (11,988) |
Total shareholders’ equity | 60,370 | 73,069 |
Total liabilities and shareholders’ equity | $ 130,457 | $ 156,689 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 706 | $ 1,127 |
Serial preferred shares, no par value | ||
Serial preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized | 10,000,000 | 10,000,000 |
Common shares, shares issued | 5,525,000 | 5,468,000 |
Common shares, shares outstanding | 5,525,000 | 5,468,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (11,335) | $ (2,872) |
(Income) from discontinued operations, net of tax | 0 | (709) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 10,766 | 8,293 |
Amortization of debt issuance cost | 145 | 37 |
Loss (Gain) on disposal of operating assets | 31 | (10) |
LIFO expense (income) | (482) | 629 |
Share transactions under employee stock plan | (502) | 696 |
Deferred income taxes | 850 | (1,092) |
Purchase price inventory adjustment | 266 | 412 |
Other | (101) | 0 |
Goodwill impairment | 4,164 | 0 |
Other long-term liabilities | 605 | 506 |
Changes in operating assets and liabilities, net of acquisition: | ||
Receivables | 10,892 | (3,302) |
Inventories | (314) | (3,553) |
Refundable income taxes | 743 | (2,106) |
Prepaid expenses and other current assets | (572) | 681 |
Other assets | (76) | 333 |
Accounts payable | 424 | 1,909 |
Accrued liabilities | (3,223) | (1,123) |
Net cash provided by (used for) operating activities of continuing operations | 12,281 | (1,271) |
Net cash used for operating activities of discontinued operations | 0 | (516) |
Cash flows from investing activities: | ||
Acquisition of business | 275 | (16,994) |
Proceeds from disposal of property, plant and equipment | 0 | 2 |
Capital expenditures | (2,349) | (8,812) |
Net cash used for investing activities of continuing operations | (2,074) | (25,804) |
Net cash provided by investing activities of discontinued operations | 0 | 1,422 |
Cash flows from financing activities: | ||
Proceeds from term note | 0 | 20,000 |
Repayments of term note | (5,192) | (5,441) |
Proceeds from revolving credit agreement | 46,917 | 58,802 |
Repayments of revolving credit agreement | (50,667) | (48,731) |
Net payments of short-term debt borrowings | (1,480) | (270) |
Payments for debt financing | 0 | (724) |
Dividends paid | 0 | (1,090) |
Net cash provided by (used for) financing activities of continuing operations | (10,422) | 22,546 |
Decrease in cash and cash equivalents | (215) | (3,623) |
Cash and cash equivalents at beginning of year | 667 | 4,596 |
Effects of exchange rate changes on cash and cash equivalents | 19 | (306) |
Cash and cash equivalents at end of year | 471 | 667 |
Cash (paid) received during the year: | ||
Cash paid for interest | (1,420) | (613) |
Cash (paid) received for income taxes, net | 2,897 | (679) |
Non-cash investing and financing transactions: | ||
Additions to property, plant & equipment - incurred but not yet paid | $ 256 | $ 458 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Sep. 30, 2014 | $ 76,620 | $ 5,448 | $ 9,102 | $ 72,683 | $ (10,613) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (4,247) | (2,872) | (1,375) | ||
Performance and restricted share expense | 963 | 963 | |||
Share transactions under employee stock plans | (267) | 20 | (287) | ||
Ending Balance at Sep. 30, 2015 | 73,069 | 5,468 | 9,778 | 69,811 | (11,988) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (12,197) | (11,335) | (862) | ||
Performance and restricted share expense | (474) | (474) | |||
Share transactions under employee stock plans | (28) | 57 | (85) | ||
Ending Balance at Sep. 30, 2016 | $ 60,370 | $ 5,525 | $ 9,219 | $ 58,476 | $ (12,850) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A. DESCRIPTION OF BUSINESS SIFCO Industries, Inc. and its subsidiaries are engaged in the production of forgings and machined components primarily in the Aerospace and Energy ("A&E") market. The Company’s operations are conducted in a single business segment, "SIFCO" or "Company." In July 2015, SIFCO completed the acquisition of all of the outstanding equity of C Blade S.p.A. Forging & Manufacturing (“Maniago", previously disclosed as "C*Blade”), located in Maniago, Italy, from Riello Investimenti Partners SGR S.p.A., Giorgio Visentini, Giorgio Frassini, Giancarlo Sclabi and Matteo Talmassons. Financial information relating to the Company's acquisition in fiscal 2015 is referenced in Note 11. B. PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the consolidated statements of shareholders’ equity. C. CASH EQUIVALENTS The Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. A substantial majority of the Company’s cash and cash equivalent bank balances are within federally insured limits at September 30, 2016, however, balances exceed limits at September 30, 2015. D. CONCENTRATIONS OF CREDIT RISK Receivables are presented net of allowance for doubtful accounts of $706 and $1,127 at September 30, 2016 and 2015, respectively. Accounts receivable outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible. During fiscal 2016 and 2015, $581 and $0 , respectively, of accounts receivable were written off against the allowance for doubtful accounts. Bad debt expense totaled $359 and $487 in fiscal 2016 and fiscal 2015, respectively. Most of the Company’s receivables represent trade receivables due from manufacturers of turbine engines and aircraft components as well as turbine engine overhaul companies located throughout the world, including a significant concentration of U.S. based companies. In fiscal 2016, 21% of the Company’s consolidated net sales were from two of its largest customers; and 46% of the Company's consolidated net sales were from the four largest customers and their direct subcontractors, which individually accounted for 12% , 12% , 11% and 11% , of consolidated net sales, respectively. In fiscal 2015, 12% of the Company’s consolidated net sales were from one of its largest customers; and 38% of the Company's consolidated net sales were from two of the largest customers and their direct subcontractors which individually accounted for 22% , and 16% , of consolidated net sales, respectively. No other single customer or group represented greater than 10% of total net sales in fiscal 2016 and 2015. At September 30, 2016, two of the Company’s largest customers had outstanding net accounts receivable which individually accounted for 14% and 11% of the total net accounts receivable; and four of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 15% , 13% , 12% and 11% of total net accounts receivable, respectively. At September 30, 2015, one of the Company’s largest customers had outstanding net accounts receivable which accounted for 11% of total net accounts receivable; and two of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 18% and 16% of total, net receivables, respectively. The Company performs ongoing credit evaluations of its customers’ financial conditions. The Company believes its allowance for doubtful accounts is sufficient based on the credit exposures outstanding at September 30, 2016. E. INVENTORY VALUATION Inventories are stated at the lower of cost or market. For a portion of the Company's inventory, cost is determined using the last-in, first-out (“LIFO”) method. For approximately 44% and 38% of the Company’s inventories at September 30, 2016 and 2015, respectively, the LIFO method is used to value the Company’s inventories. The first-in, first-out (“FIFO”) method is used to value the remainder of the Company’s inventories. The Company maintains allowances for obsolete and excess inventory. The Company evaluates its allowances for obsolete and excess inventory each quarter, and requires at a minimum that reserves be established based on an analysis of the age of the inventory. In addition, if the Company identifies specific obsolescence, other than that identified by the aging criteria, an additional reserve will be recognized. Specific obsolescence and excess reserve requirements may arise due to technological or market changes, or based on cancellation of an order. The Company’s reserves for obsolete and excess inventory were $3,308 and $3,022 at September 30, 2016 and 2015, respectively. F. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost. Depreciation is generally computed using the straight-line method. Depreciation is provided in amounts sufficient to amortize the cost of the assets over their estimated useful lives. Depreciation provisions are based on estimated useful lives: (i) buildings, including building improvements - 5 to 40 years; (ii) machinery and equipment, including office and computer equipment - 3 to 20 years; (iii) software - 3 to 7 years (included in machinery and equipment); and (iv) leasehold improvements - remaining life or length of the lease (included in buildings). The Company's property, plant and equipment assets by major asset class at September 30 consist of: 2016 2015 Property, plant and equipment: Land $ 979 $ 975 Buildings 15,393 15,446 Machinery and equipment 82,665 80,687 Total property, plant and equipment 99,037 97,108 Accumulated depreciation 50,079 42,243 Property, plant and equipment, net $ 48,958 $ 54,865 The Company reviews the carrying value of its long-lived assets, including property, plant and equipment, at least annually or when events and circumstances warrant such a review. This review is performed using estimates of future undiscounted cash flows, which include proceeds from disposal of assets. If the carrying value of a long-lived asset is greater than the estimated undiscounted future cash flows, then the long-lived asset is considered impaired and an impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value. There have been no asset impairment charges as it relates to the above assets during fiscal 2016 and fiscal 2015. If an asset is determined to be impaired, the carrying value of such assets is reduced to its net realizable value. The gain/loss on disposal of operating assets is included as a separate line item in the accompanying consolidated statements of operations. Depreciation expense was $8,173 and $6,048 in fiscal 2016 and 2015, respectively. The Company’s Irish subsidiary sold its operating business in June 2007, but retained ownership of its Cork, Ireland facility. This property is subject to a lease arrangement with the acquirer of the business that expires in June 2027. Rental income is earned in quarterly installments of $103 . At September 30, 2016 and 2015, the carrying value of the property was $1,496 (accumulated depreciation of $ 1,437 ) and $1,570 (accumulated depreciation of $1,511 ), respectively. Rental income of $413 was recognized in each of fiscal years 2016 and 2015, respectively, and is recorded in other income, net on the consolidated statements of operations. G. GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the purchase price paid over the fair value of the net assets of an acquired business. Goodwill is subject to annual impairment testing and the Company has selected July 31 as the annual impairment testing date. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. If so, then a two-step impairment test is used to identify potential goodwill impairment. The first step of the goodwill impairment test compares the fair value of a reporting unit (as defined) with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired, and the second step of the goodwill impairment test is not required. The second step measures the amount of impairment, if any, by comparing the carrying value of the goodwill associated with a reporting unit to the implied fair value of the goodwill derived from the estimated overall fair value of the reporting unit and the individual fair values of the other assets and liabilities of the reporting unit. See Note 3 to for further discussion of the July 31, 2016 annual impairment test results. Intangible assets consist of identifiable intangibles acquired or recognized in the accounting for the acquisition of a business and include such items as a trade name, a non-compete agreement, below market lease, customer relationships and order backlog. Intangible assets are amortized over their useful lives ranging from one year to ten years . H. NET LOSS PER SHARE The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding. Net loss per diluted share is the same as net loss per basic share. The dilutive effect of the Company’s stock options, restricted shares and performance shares were as follows: September 30, 2016 2015 Loss from continuing operations $ (11,335 ) $ (3,581 ) Income from discontinued operations, net of tax — 709 Net loss $ (11,335 ) $ (2,872 ) Weighted-average common shares outstanding (basic) 5,475 5,438 Weighted-average common shares outstanding (diluted) 5,475 5,438 Net loss per share – basic Continuing operations $ (2.07 ) $ (0.66 ) Discontinued operations — 0.13 Net loss per share $ (2.07 ) $ (0.53 ) Net loss per share – diluted: Continuing operations $ (2.07 ) $ (0.66 ) Discontinued operations — 0.13 Net loss per share $ (2.07 ) $ (0.53 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 32 27 I. REVENUE RECOGNITION Revenue is generally recognized for products shipped or services performed when the following criteria are met: 1.) persuasive evidence of an arrangement exists; 2.) delivery has occurred; 3.) an established sales price has been set with the customer; and 4.) collectibility of the amounts due from the sale is reasonably assured. J. CAPITAL LEASE OBLIGATIONS Capital leases are accounted for as the acquisition of an asset and the commitment of an obligation by the lessee and as a sale or financing by the lessor. All other leases are accounted for as operating leases. K. IMPACT OF RECENTLY ADOPTED ACCOUNTING STANDARDS In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified as non-current in the statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016. The Company has elected to early adopt this ASU prospectively for the year ended September 30, 2016, as is permitted under the standard. Due to the prospective treatment, prior periods presented in these financial statements have not been adjusted. L. IMPACT OF NEWLY ISSUED ACCOUNTING STANDARDS In August 2016, the FASB issued ASU 2016-15, which amends certain cash flow issues which apply to all entities required to present a statement of cash flow. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” This ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs, along with subsequent updates, apply to all companies that enter into contracts with customers to transfer goods or services, and are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Companies have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. The Company is planning a bottoms up approach to analyze the standard's impact on its revenues by looking at historical policies and practices and identifying the differences from applying the new standard to its revenue stream. The Company has not selected a transition date or method nor has it determined the effect of the standard to its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern," which the intent is to define the Company's responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU will be effective for the Company as of October 1, 2017. The Company will prospectively apply the guidance to applicable conditions. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact on our condensed consolidated financial statements. On March 30, 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes a number of changes meant to simplify and improve accounting for share-based payments. The ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently considering early adoption of ASU 2016-09 in the next reporting period, as is permitted under the standard and has not yet determined the impact on our condensed consolidated financial statements. M. USE OF ESTIMATES Accounting principles generally accepted in the U.S. require management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent liabilities, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the period in preparing these financial statements. Actual results could differ from those estimates. In fiscal 2015, the Company changed how it estimates its workers' compensation reserve. The Company uses a third party actuary to evaluate its reserves annually. Effective in the first quarter of fiscal 2015, the Company changed to a new third party administrator that also evaluates the reserve on a monthly basis. The change in administrators resulted in a reduction in the Company's reserve and a corresponding decrease in expense of approximately $ 400 . The change is reflected in the Company's fiscal 2015 results. N. DERIVATIVE FINANCIAL INSTRUMENTS The Company periodically uses interest rate swap agreements to reduce risk related to variable-rate debt, which is subject to changes in market rates of interest. Interest rate swaps are designated as a cash flow hedges. At September 30, 2016, the Company held one interest rate swap with a notional amount of $8,214 . Cash flows related to the interest rate swap agreement are included in interest expense. The Company’s interest rate swap agreement and its variable-rate term debt were based upon LIBOR. At September 30, 2016, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note and its mark-to-market valuation is a $ 30 liability at September 30, 2016. As of September 30, 2015, no interest rate swap agreements were in place. O. RESEARCH AND DEVELOPMENT Research and development costs are expensed as they are incurred. Research and development expense was nominal in fiscal 2016 and 2015. P. DEFERRED FINANCING COSTS Debt issuance costs are capitalized and amortized over the life of the related debt. Amortization of deferred financing costs is included in interest expense in the consolidated statements of operations. Q. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as shown on the consolidated balance sheets at September 30 are as follows: 2016 2015 Foreign currency translation adjustment, net of income tax benefit of $0 and $0, respectively $ (5,623 ) $ (5,731 ) Net retirement plan liability adjustment, net of income tax benefit of ($3,758) and ($3,758), respectively (7,197 ) (6,257 ) Interest rate swap agreement, net of income tax benefit of $0 and $0, respectively (30 ) — Total accumulated other comprehensive loss $ (12,850 ) $ (11,988 ) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive loss, net of tax: Foreign Currency Translation Adjustment Retirement Plan Liability Adjustment Interest Rates Swap Adjustment Accumulated Other Comprehensive Loss Balance at September 30, 2014 $ (5,851 ) $ (4,757 ) $ (5 ) $ (10,613 ) Other comprehensive income (loss) before reclassifications 120 (1,846 ) 5 (1,721 ) Amounts reclassified from accumulated other comprehensive loss — 346 — 346 Net current-period other comprehensive loss $ 120 $ (1,500 ) $ 5 $ (1,375 ) Balance at September 30, 2015 $ (5,731 ) $ (6,257 ) $ — $ (11,988 ) Other comprehensive income (loss) before reclassifications 108 (1,991 ) (30 ) (1,913 ) Amounts reclassified from accumulated other comprehensive loss — 1,051 — 1,051 Net current-period other comprehensive loss 108 (940 ) (30 ) (862 ) Balance at September 30, 2016 $ (5,623 ) $ (7,197 ) $ (30 ) $ (12,850 ) The following table reflects the changes in accumulated other comprehensive loss related to the Company for September 30, 2016 and 2015: Amount reclassified from accumulated other comprehensive loss Details about accumulated other comprehensive loss components 2016 2015 Affected line item in the Consolidated Statement of Operations Amortization of Retirement plan liability: Net actuarial loss 828 545 (1) Settlements/curtailments 223 — (1) 1,051 545 Total before taxes — (199 ) Income tax expense $ 1,051 $ 346 Net of taxes (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 7 - Retirement benefit plans for further information. R. INCOME TAXES The Company files a consolidated U.S. federal income tax return and tax returns in various state and local jurisdictions. The Company’s Irish and Italian subsidiaries also file tax returns in the respective jurisdictions. The Company provides deferred income taxes for the temporary difference between the financial reporting basis and tax basis of the Company’s assets and liabilities. Such taxes are measured using the enacted tax rates that are assumed to be in effect when the differences reverse. Deductible temporary differences result principally from recording certain expenses in the financial statements in excess of amounts currently deductible for tax purposes. Taxable temporary differences result principally from tax depreciation in excess of book depreciation. The Company evaluates for uncertain tax positions taken at each balance sheet date. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest cumulative benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company's policy for interest and/or penalties related to underpayments of income taxes is to include interest and penalties in tax expenses. The Company maintains a valuation allowance against its deferred tax assets when management believes it is more likely than not that all or a portion of a deferred tax asset may not be realized. Changes in valuation allowances are recorded in the period of change. In determining whether a valuation allowance is warranted, the Company evaluates factors such as prior earnings history, expected future earnings, carry-back and carry-forward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. S. FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities Level 2 - Observable market based inputs or unobservable inputs that are corroborated by market data Level 3 - Unobservable inputs that are not corroborated by market data 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. The book value of cash equivalents, accounts receivable, accounts payable, and revolving credit facilities are considered to be representative of their fair values because of their short maturities. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in goodwill, other intangible assets and long-lived assets impairment analysis, the valuation of acquired intangibles and in the valuation of assets held for sale. Goodwill and intangible assets are valued using Level 3 inputs. T. SHARE-BASED COMPENSATION Share-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period). Share-based expense includes expense related to restricted shares and performance shares issued under the Company's 2007 Long-Term Incentive Plan. The Company recognizes share-based expense within selling, general, and administrative expense. U. SHIPPING AND HANDLING COSTS The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects shipping and handling costs in cost of sales. V. RECLASSIFICATIONS Certain amounts in prior years may have been reclassified to conform to the 2016 consolidated financial statement presentation. In fiscal 2016, the Company revised its classification within the Consolidated Statement of Cash Flows by moving prior year amount of $506 of other long-term liabilities caption from changes in operating assets and liabilities to adjustments to reconcile net loss to net cash provided by operating activities as these items are non-cash item and are not a part of operating assets and liabilities. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at September 30 consist of: 2016 2015 Raw materials and supplies $ 7,724 $ 7,212 Work-in-process 10,459 11,088 Finished goods 10,313 9,643 Total inventories $ 28,496 $ 27,943 If the FIFO method had been used for the entire Company, inventories would have been $8,026 and $8,508 higher than reported at September 30, 2016 and 2015 , respectively. LIFO income of $482 in fiscal 2016 and LIFO expense was $629 in fiscal 2015, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s intangible assets by major asset class subject to amortization as of: September 30, 2016 Weighted Average Life at September 30, Original Cost Accumulated Amortization Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 2,776 $ 1,240 $ 9 $ 1,545 Non-compete agreement 5 years 1,600 1,547 — 53 Below market lease 5 years 900 900 — — Technology asset 5 years 1,869 389 37 1,517 Customer relationships 10 years 15,568 7,571 26 8,023 Total intangible assets $ 22,713 $ 11,647 $ 72 $ 11,138 September 30, 2015 Intangible assets: Trade name 8 years $ 2,776 $ 886 $ 6 $ 1,896 Non-compete agreement 5 years 1,600 1,308 — 292 Below market lease 5 years 900 865 — 35 Technology asset 5 years 1,663 84 12 1,591 Customer relationships 10 years 15,352 5,912 11 9,451 Total intangible assets $ 22,291 $ 9,055 $ 29 $ 13,265 Included in the intangible assets at September 30, 2015 are assets acquired in connection with the purchase of substantially all the outstanding equity from Maniago on July 1, 2015, as discussed more fully in Note 11. During fiscal 2016, final purchase price adjustments for Maniago were made and reflected as shown in the table below, which are included as September 30, 2016. These acquired intangible assets consist of: Estimated Useful Life Initial Value Purchase Price Adjustment Final Value Intangible assets: Trade name 5 years $ 776 $ — $ 776 Technology asset 5 years 1,663 317 1,980 Customer relationships 10 years 1,552 105 1,657 Total intangible assets $ 3,991 $ 422 $ 4,413 The amortization expense on identifiable intangible assets for fiscal 2016 and 2015 was $2,593 and $2,245 , respectively. Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2017 $ 2,345 Fiscal year 2018 2,324 Fiscal year 2019 2,309 Fiscal year 2020 2,168 Fiscal year 2021 1,127 Goodwill is not amortized, but is subject to an annual impairment test. The Company tests its goodwill for impairment in the fourth fiscal quarter, and in interim periods if certain events occur indicating that the carrying amount of goodwill may be impaired. At the end of the second quarter of fiscal 2016, there was a triggering event, which resulted in the Company performing an interim impairment test at its Orange, California reporting unit and its Maniago reporting unit. It was determined at the time that the fair value exceeded its carrying value; therefore, step 2 of the two-step goodwill impairment test was unnecessary. The Company completed its annual impairment review of goodwill as of July 31, 2016, using judgment to determine whether to use a qualitative analysis or a quantitative fair value measurement for its goodwill impairment testing. The Company's fair value measurement approach combines the income (discounted cash flow method) and market valuation (market comparable method) techniques for each of the Company’s reporting units that carry goodwill. These valuation techniques use estimates and assumptions including, but not limited to, the determination of appropriate market comparables, projected future cash flows (including timing and profitability), discount rate reflecting the risk inherent in future cash flows, perpetual growth rate, and projected future economic and market conditions (level 3 inputs). Upon completion of the annual testing, goodwill for the Orange, California ("Orange") reporting unit was determined to be impaired based on a quantitative analysis, as the carrying value exceeded the fair value. During 2016, the Orange reporting unit did not meet revenue expectations due, in part, to a product mix resulting in lower margins and related business practices have not come to fruition for cost savings measures undertaken to address increased costs. Based on the results of the annual testing, the Company recorded goodwill impairment charges for the entire goodwill balance of the Orange reporting unit in the amount of $ 4,164 as the carrying value of the operating unit exceeded its fair value. As of September 30, 2016, the remaining value of goodwill associated with our reporting units totaled $ 11,748 . No other impairment charges were identified in connection with the annual goodwill impairment test with respect to any of the other identified reporting units. The fair values for our Alliance and Maniago reporting units were in excess of their carrying values. All of the goodwill is expected to be deductible for tax purposes. Changes in the net carrying amount of goodwill were as follows: Balance at September 30, 2014 $ 7,658 Goodwill acquired during the year 8,760 Currency translation 62 Balance at September 30, 2015 $ 16,480 Goodwill adjustment (589 ) Currency translation 21 Impairment adjustment (4,164 ) Balance at September 30, 2016 $ 11,748 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at September 30 consist of: 2016 2015 Accrued employee compensation and benefits $ 3,681 $ 3,875 Accrued legal and professional 124 2,069 Accrued workers’ compensation 324 688 Other accrued liabilities 1,105 1,814 Total accrued liabilities $ 5,234 $ 8,446 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at September 30 consists of: 2016 2015 Revolving credit agreement $ 12,751 $ 16,500 Foreign subsidiary borrowings 9,540 13,197 Capital lease obligations 153 252 Term loan 16,429 19,286 Less: unamortized debt issuance cost (241 ) (306 ) Term loan less unamortized debt issuance cost 16,188 18,980 Total debt 38,632 48,929 Less – current maturities (31,009 ) (10,503 ) Total long-term debt $ 7,623 $ 38,426 On June 26, 2015 the Company entered into a Credit and Security Agreement (the "2015 Credit Agreement") with its lender. The credit facility is comprised of (i) a five year revolving credit facility with a maximum borrowing amount of up to $25,000 , which reduces to $20,000 on January 1, 2016, and (ii) a five year term loan of $20,000 . Amounts borrowed under the 2015 credit facility are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The term loan under the 2015 Credit Agreement is repayable in quarterly installments of $714 beginning September 30, 2015 . The amounts borrowed under the 2015 Credit Agreement were used to repay the Company's existing revolver and term note, to fund the acquisition of Maniago on July 1, 2015, as referenced in Note 11 and for working capital and general corporate purposes. The 2015 Credit Agreement also has an accordion feature, which allows the Company to increase the availability by up to $15,000 upon consent of the existing lenders or upon additional lenders being joined to the facility. Borrowings bore interest at the LIBOR rate, prime rate, or the eurocurrency reference rate depending on the type of loan requested by the Company in each case, plus the applicable margin as set forth in the 2015 Credit Agreement. The revolver has a rate based on LIBOR plus 2.75% spread and a prime rate which resulted in a weighted average rate of 3.9% and 3.2% at September 30, 2016 and 2015, respectively and the term loan has a rate of 3.8% and 3.1% at September 30, 2016 and 2015, respectively, which was based on LIBOR plus 2.75% spread. This rate becomes effective at a fixed rate of 3.9% after giving effect to the interest rate swap agreement as of September 30, 2016. The interest rate swap was not in place as of September 30, 2015. There is also a commitment fee ranging from 0.15% to 0.35% , to be incurred on the unused balance. The bank loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum leverage ratio and to maintain a minimum fixed charge coverage ratio. As discussed in Note 13 Subsequent Event, on November 9, 2016, the Company entered into an Amended and Restated Credit and Security agreement ("Amended and Restated Agreement") with its lender. The new Amended and Restated Agreement matures on June 25, 2020 and consists of senior secured loans in an aggregate principal amount of up to $39,871 (the "Credit Facility"). The Credit Facility is comprised of (i) a senior secured revolving credit facility of a maximum borrowing amount of $35,000 , including swing line loans and letters of credit provided by the lender and (ii) senior secured term loan facility in the amount of $ 4,871 (the "Term Facility"). The new Term Facility is repayable in monthly installments of $81 beginning December 1, 2016. The terms of Credit Facility contain both a lockbox arrangement and subjective acceleration clause. As a result, the amounts outstanding on the revolving credit facility will be classified as a short term liability. The amounts borrowed under the Amended and Restated Agreement will be used to repay the amounts outstanding under the Company's existing Credit Agreement as of September 30, 2016, for working capital, for general corporate purposes and to pay fees and expenses associated with this transaction. In connection with entering into the Amended and Restated Agreement, the Company terminated its interest rate swap agreement with the lender. Upon closing of the Credit Facility, any defaults that may have existed under the 2015 Credit Agreement were waived and no longer in effect. As a result of the Amended and Restated Agreement and the inclusion of a lockbox arrangement and subjective acceleration clause, the revolver and all but $ 4,061 of the term loan at September 30, 2016 were classified as current maturities of long-term debt. Refer to Note 13 Subsequent Event for further discussion. The Company incurred debt issuance costs in connection with its 2015 Credit Agreement in the amount of $724 . As shown above, $241 of debt issuance costs as it relates to the term note, net of amortization of $81 , remains as of September 30, 2016. The remaining $301 debt issuance cost relates to the revolver. This portion is shown in the consolidated balance sheet as a deferred charge in other assets, net of amortization of $101 at September 30, 2016. Prior to the replacement of the revolver and term loan with the 2015 Credit Agreement as previously discussed, in October 2011, the Company entered into an amendment to its then existing credit agreement with its bank to increase the maximum borrowing amount from $30,000 to $40,000 , of which $10,000 was a five (5) year term loan and $30,000 was a five (5) year revolving loan, secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The term loan was repayable in quarterly installments of $500 starting December 1, 2011 . The term loan was repaid in the third quarter of fiscal year 2015 and replaced by the 2015 Credit Agreement discussed previously. As of September 30, 2016 and 2015, the total foreign debt borrowings were $ 9,540 and $13,197 , respectively, of which $5,833 and $7,542 , respectively is current. Current debt as of September 30, 2016 and 2015, consists of $3,262 and $3,184 of short-term borrowings, $2,014 and $2,371 is the current portion of long-term debt, and $ 557 and $1,987 , of factoring. Interest rates on the term notes are based on Euribor rates which range from 1.0% to 4.0% . The factoring programs are uncommitted, whereby the Company offers receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are not isolated from the Company, and effective control of the receivables is not passed to the unaffiliated financial institution, which does not have the right to pledge or sell the receivables. The Company accounts for the pledge of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated condensed balance sheets. There were $ 557 and $1,987 of short-term borrowings relating to this agreement at September 30, 2016 and 2015, respectively, classified within short-term debt. The carrying value of the receivables pledged as collateral was $ 599 and $ 1,620 at September 30, 2016 and 2015, respectively. Payments on long-term debt under the 2015 Credit Agreement (excluding capital lease obligations, see Note 9) over the next 5 years are as follows: Minimum long-term debt payments 2017 $ 4,871 2018 4,132 2019 4,019 2020 21,599 2021 252 2022 and thereafter — Total Minimum long-term debt payments 34,873 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss from continuing operations before income tax benefit are as follows: Years Ended September 30, 2016 2015 U.S. $ (11,506 ) $ (6,373 ) Non-U.S. (1,827 ) 348 Loss before income tax benefit $ (13,333 ) $ (6,025 ) Income taxes from continuing operations before income tax benefit consist of the following: Years Ended September 30, 2016 2015 Current income tax provision (benefit): U.S. federal $ (2,687 ) $ (2,560 ) U.S. state and local (111 ) 55 Non-U.S. 94 338 Total current tax benefit (2,704 ) (2,167 ) Deferred income tax provision (benefit): U.S. federal 1,481 (277 ) U.S. state and local 69 (83 ) Non-U.S. (844 ) 83 Total deferred tax provision (benefit) 706 (277 ) Income tax benefit $ (1,998 ) $ (2,444 ) The income tax benefit from continuing operations in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows: Years Ended September 30, 2016 2015 Loss before income tax benefit $ (13,333 ) $ (6,025 ) Less-U.S. state and local income tax benefit (111 ) (13 ) Loss before U.S. and non-U.S. federal income tax provision $ (13,222 ) $ (6,012 ) Income tax benefit at U.S. federal statutory rates $ (4,628 ) $ (2,104 ) Tax effect of: Foreign rate differential 254 334 Permanent items 8 438 Undistributed earnings of non-U.S. subsidiaries — (992 ) Prior year tax adjustments (56 ) (23 ) State and local income taxes (80 ) (113 ) Impact of tax law changes (338 ) — Federal tax credits (572 ) (92 ) Valuation allowance 3,309 147 Changes in uncertain tax positions (37 ) 58 Other 142 (97 ) Income tax benefit $ (1,998 ) $ (2,444 ) Deferred tax assets and liabilities at September 30 consist of the following: 2016 2015 Deferred tax assets: Net non-U.S. operating loss carryforwards $ 777 $ 595 Employee benefits 3,366 3,340 Inventory reserves 1,032 865 Allowance for doubtful accounts 234 377 Foreign tax credits to undistributed earnings 870 — Intangibles 4,364 1,936 Foreign tax credits 575 517 Other 2,307 1,007 Total deferred tax assets 13,525 8,637 Deferred tax liabilities: Depreciation (10,777 ) (9,022 ) Unremitted foreign earnings (65 ) (65 ) Prepaid expenses (566 ) (432 ) Other (647 ) (87 ) Total deferred tax liabilities (12,055 ) (9,606 ) Net deferred tax assets (liabilities) 1,470 (969 ) Valuation allowance (4,399 ) (1,095 ) Net deferred tax liabilities $ (2,929 ) $ (2,064 ) As a result of losses incurred in recent years, the Company’s U.S. jurisdiction entered into a three year cumulative loss position in the fourth quarter of fiscal 2016. A cumulative loss position is considered significant negative evidence in assessing the realizability of a deferred tax asset that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. Positive evidence was also considered, including taxable income available in the carryback period. Based on the weight of available positive and negative evidence, the Company established a valuation allowance of $ 3,259 in the fourth quarter of fiscal 2016 on its U.S. deferred tax assets. Of this amount, $838 relates to deferred tax assets that existed as of the beginning of the fiscal year. A valuation allowance had already been maintained on certain U.S. federal and state tax credit carryforwards with limited lives, the total U.S. valuation allowance as of September 30, 2016 is $3,902 . At September 30, 2016, the Company has a non-U.S. tax loss carryforward of approximately $6,132 , which primarily relates to the Company’s Irish and Italian subsidiaries. The Company's Irish subsidiary ceased operations in 2007 and therefore, a valuation allowance has been recorded against the deferred tax asset related to the Irish tax loss carryforward because it is unlikely that such operating loss can be utilized unless the Irish subsidiary resumes operations. The non-U.S. tax loss carryforward does not expire. The Company has $575 of foreign tax credit carryforwards that are subject to expiration in fiscal 2023-2026, $520 of U.S. general business tax credits that are subject to expiration in 2035-2036, and alternative minimum tax of $95 that do not expire. A valuation allowance has been recorded against the deferred tax assets related to the foreign tax credit carryforwards and U.S. general business credits. In addition, the Company has $165 of U.S. state tax credit carryforwards subject to expiration in fiscal 2022-2024 and $10,583 of U.S. state and local tax loss carryforwards subject to expiration in fiscal 2020-2036. The U.S. state tax credit carryforwards have been fully offset by a valuation allowance. A portion of the U.S. state and local tax loss carryforwards presented in the table above have been reduced by unrealized stock compensation deductions of $5 . The Company reported liabilities for uncertain tax positions, excluding any related interest and penalties, in fiscal 2016 and 2015 of $69 and $105 , respectively. If recognized, $69 of the fiscal 2016 uncertain tax positions would impact the effective tax rate. As of September 30, 2016, the Company had accrued interest of $21 and recognized $3 for interest and penalties in continuing operations. The Company classifies interest and penalties on uncertain tax positions as income tax expense. A summary of activity related to the Company’s uncertain tax position is as follows: 2016 2015 Balance at beginning of year $ 105 $ 56 Increase due to tax positions taken in current prior year — 49 Decrease due to lapse of statute of limitations (36 ) — Balance at end of year $ 69 $ 105 The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, Italy and various states and local jurisdictions. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for fiscal years prior to 2013, state and local income tax examinations for fiscal years prior to 2012, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2007. As of September 30, 2016, the Company has $9,766 of undistributed earnings of non-U.S. subsidiaries for which no deferred taxes have been provided as the Company intends to permanently reinvest these earnings outside the U.S. Quantification of the deferred tax liability associated with these undistributed earnings is not practicable. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Plans The Company and certain of its subsidiaries sponsor defined benefit pension plans covering most of its employees. The Company’s funding policy for its defined benefit pension plans is based on an actuarially determined cost method allowable under Internal Revenue Service regulations. One of the defined benefit pension plans covers substantially all non-union employees of the Company’s U.S. operations who were hired prior to March 1, 2003, and this plan was frozen in 2003, while another plan that covered union employees no longer has active participants due to the business closure. Consequently, although both plans continue, the non-union plan ceased the accrual of additional pension benefits for service subsequent to March 1, 2003, and the related union plan has had no participants accrue any additional benefits subsequent to December 31, 2013. The Company sponsors a defined pension plan for certain of its employees. The plan is a severance entitlement payable to the Italian employees who qualified prior to December 27, 2006. The plan is considered an unfunded defined benefit plan and is measured as the actuarial present value of the vested benefits to which the employees would be entitled if the employee separated at the consolidated balance sheet date. The Company uses a September 30 measurement date for its U.S. defined benefit pension plans. Net pension expense, benefit obligations and plan assets for the Company-sponsored defined benefit pension plans consists of the following: Years Ended September 30, 2016 2015 Service cost $ 280 $ 148 Interest cost 1,017 978 Expected return on plan assets (1,632 ) (1,671 ) Amortization of net loss 828 545 Settlement cost 223 — Net pension expense for defined benefit plan $ 716 $ — The status of all defined benefit pension plans at September 30 is as follows: 2016 2015 Benefit obligations: Benefit obligations at beginning of year $ 27,685 $ 26,140 Transfer in — 465 Service cost 280 148 Interest cost 1,017 978 Actuarial loss 2,405 1,328 Benefits paid (1,659 ) (1,377 ) Currency translation 3 3 Benefit obligations at end of year $ 29,731 $ 27,685 Plan assets: Plan assets at beginning of year $ 20,896 $ 22,110 Actual return on plan assets 2,061 117 Employer contributions 46 46 Benefits paid (1,659 ) (1,377 ) Plan assets at end of year $ 21,344 $ 20,896 Plans in which Benefit Obligations Exceed Assets at September 30, 2016 2015 Reconciliation of funded status: Plan assets less than projected benefit obligations $ (8,387 ) $ (6,789 ) Amounts recognized in accumulated other comprehensive loss: Net loss 10,926 10,003 Net amount recognized in the consolidated balance sheets $ 2,539 $ 3,214 Amounts recognized in the consolidated balance sheets are: Accrued liabilities (46 ) (46 ) Pension liability (8,341 ) (6,743 ) Accumulated other comprehensive loss – pretax 10,926 10,003 Net amount recognized in the consolidated balance sheets $ 2,539 $ 3,214 The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs during fiscal 2017 are as follows: Plans in which Plans in which Net loss $ — $ 887 Where applicable, the following weighted-average assumptions were used in developing the benefit obligation and the net pension expense for defined benefit pension plans: Years Ended 2016 2015 Discount rate for liabilities 3.1 % 3.9 % Discount rate for expenses 3.8 % 3.9 % Expected return on assets 8.0 % 8.0 % The Company holds investments in pooled separate accounts and common/collective trusts, in which the fair value of assets of the underlying funds are determined in the following ways: • U.S. equity securities are comprised of domestic equities that are priced using the closing price of the applicable nationally recognized stock exchange, as provided by industry standard vendors such as Interactive Data Corporation. • Non-U.S. equity securities are comprised of international equities. These securities are priced using the closing price from the applicable foreign stock exchange. • U.S. bond funds are comprised of domestic fixed income securities. Securities are priced by industry standards vendors, such as Interactive Data Corporation, using inputs such as benchmark yields, reported trades, broker/dealer quotes, or issuer spreads. ◦ Included as part of the U.S. bond funds, are private placement funds, for which fair market value is not always commercially available, the fair value of these investments is primarily determined using a discounted cash flow model, which utilizes a discount rate based upon the average of spread surveys collected from private-market intermediaries who are active in both primary and secondary transactions, and takes into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. • Non-U.S. bond funds are comprised of international fixed income securities. Securities are priced by Interactive Data Corporation, using inputs such as benchmark yields, reported trades, broker/dealer quotes, or issuer spreads. • Stable value fund is comprised of short-term securities and cash equivalent securities, which seek to provide high current income consistent with the preservation of principal and liquidity. As permitted under relevant securities laws, securities in this type of fund are valued initially at cost and thereafter adjusted for amortization of any discount or premium. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. However, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement result. The following tables set forth the asset allocation of the Company’s defined benefit pension plan assets and summarize the fair values and levels within the fair value hierarchy for such plan assets as of September 30, 2016 and 2015: September 30, 2016 Asset Amount Level 1 Level 2 Level 3 U.S. equity securities: Large value $ 492 $ — $ 492 $ — Large blend 9,593 — 9,593 — Large growth 503 — 503 — Mid blend 57 — 57 — Small blend 56 — 56 — Non-U.S. equity securities: Foreign large blend 1,565 — 1,565 — Diversified emerging markets 18 — 18 — U.S. debt securities: Inflation protected bond 537 — 537 — Intermediate term bond 7,747 — 5,562 2,185 High inflation bond 360 — 360 — Non-U.S. debt securities: Emerging markets bonds 66 — 66 — Stable value: Short-term bonds 350 — 350 — Total plan assets at fair value $ 21,344 $ — $ 19,159 $ 2,185 September 30, 2015 Asset Amount Level 1 Level 2 Level 3 U.S. equity securities: Large value $ 487 $ — $ 487 $ — Large blend 9,268 — 9,268 — Large growth 515 — 515 — Mid blend 109 — 109 — Small blend 102 — 102 — Non-U.S. equity securities: Foreign large blend 1,559 — 1,559 — Diversified emerging markets 35 — 35 — U.S. debt securities: Inflation protected bond 489 — 489 — Intermediate term bond 7,538 — 5,493 2,045 High inflation bond 340 — 340 — Non-U.S. debt securities: Emerging markets bonds 56 — 56 — Stable value: Short-term bonds 398 — 398 — Total plan assets at fair value $ 20,896 $ — $ 18,851 $ 2,045 Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2016 and 2015 were as follows: 2016 2015 Balance at beginning of year $ 2,045 $ 2,102 Actual return on plan assets 126 76 Purchases and sales of plan assets, net 14 (133 ) Balance at end of year $ 2,185 $ 2,045 Investment objectives relative to the assets of the Company’s defined benefit pension plans are to (i) optimize the long-term return on the plans’ assets while assuming an acceptable level of investment risk; (ii) maintain an appropriate diversification across asset categories and among investment managers; and (iii) maintain a careful monitoring of the risk level within each asset category. Asset allocation objectives are established to promote optimal expected returns and volatility characteristics given the long-term time horizon for fulfilling the obligations of the Company’s defined benefit pension plans. Selection of the appropriate asset allocation for the plans’ assets was based upon a review of the expected return and risk characteristics of each asset category in relation to the anticipated timing of future plan benefit payment obligations. The Company has a long-term objective for the allocation of plan assets. However, the Company realizes that actual allocations at any point in time will likely vary from this objective due principally to (i) the impact of market conditions on plan asset values and (ii) required cash contributions to and distribution from the plans. The “Asset Allocation Range” listed below anticipates these potential scenarios and provides flexibility for the Plan’s investments to vary around the objective without triggering a reallocation of the assets, as noted by the following: Percent of Plan Assets at September 30, Asset Allocation Range 2016 2015 U.S. equities 50 % 50 % 30% to 70% Non-U.S. equities 7 % 8 % 0% to 20% U.S. debt securities 41 % 40 % 20% to 70% Non-U.S. debt securities — % — % 0% to 10% Other securities 2 % 2 % 0% to 60% Total 100 % 100 % External consultants assist the Company with monitoring the appropriateness of the above investment strategy and the related asset mix and performance. To develop the expected long-term rate of return assumptions on plan assets, generally the Company uses long-term historical information for the target asset mix selected. Adjustments are made to the expected long-term rate of return assumptions when deemed necessary based upon revised expectations of future investment performance of the overall investments markets. The Company does not anticipate making any contributions to its defined benefit pension plans during fiscal 2017. The Company has carryover balances from previous periods that may be available for use as a credit to reduce the amount of contributions that the Company is required to make to certain of its defined benefit pension plans in fiscal 2017. The Company’s ability to elect to use such carryover balances will be determined based on the actual funded status of each defined benefit pension plan relative to the plan’s minimum regulatory funding requirements. The following defined benefit payment amounts are expected to be made in the future: Years Ending September 30, Projected Benefit Payments 2017 $ 2,414 2018 1,850 2019 1,576 2020 1,808 2021 1,849 2022-2026 8,648 Multi-Employer Plans The Company contributes to one (1) U.S. multi-employer retirement plan for certain union employees, as follow: Pension Fund Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions by the Company Surcharge Imposed Expiration of Collective Bargaining Agreement 2016 2015 2016 2015 Fund ¹ Green Green No $ 65 $ 49 No 5/31/2020 ¹ The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund utilized the special 30 -year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008. The plan's year-end to which the zone status relates is December 31, 2015 and 2014. The risks of participating in the multi-employer retirement plan are different from a single-employer plan in that (i) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company chooses to stop participating in the multi-employer retirement plan, the Company may be required to pay the plan an amount based on the unfunded status of the plan, referred to as a withdrawal liability. Defined Contribution Plans Substantially all non-union U.S. employees of the Company and its U.S. subsidiaries are eligible to participate in the Company’s U.S. defined contribution plan. The Company makes non-discretionary, regular matching contributions to this plan equal to an amount that represents one hundred percent ( 100% ) of a participant’s deferral contribution up to one percent ( 1% ) of eligible compensation plus eighty percent ( 80% ) of a participant’s deferral contribution between one percent ( 1% ) and six percent ( 6% )of eligible compensation. The Company’s regular matching contribution expense for its U.S. defined contribution plan in fiscal 2016 and 2015 was $647 and $694 , respectively. This defined contribution plan provides that the Company may also make an additional discretionary matching contribution during those periods in which the Company achieves certain performance levels. The Company did not provide additional discretionary matching contributions in either fiscal 2016 and 2015. The Company sponsors a separate defined contribution plan for certain of its U.S. union employees. The Company's contribution to this plan is based on a specified amount per hour based on the provisions of the applicable collective bargaining agreement. The Company sponsors a defined contribution plan for certain of its employees Maniago union employees. The plan is a severance entitlement payable plan to Italian employees based on local government laws, which qualifies as a defined contribution plan. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has awarded performance and restricted shares under its shareholder approved 2007 Long-Term Incentive Plan (“2007 Plan”). The aggregate number of shares that may be awarded under the 2007 Plan is 600 less any shares previously awarded and subject to an adjustment for the forfeiture of any unvested shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2007 Plan may be made in multiple forms including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such awards are exercisable no later than ten years from date of grant. The performance shares that have been awarded under the 2007 Plan generally provide for the issuance of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the making of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 150% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives. With respect to such performance shares, compensation expense is being accrued. During each future reporting period, such expense may be subject to adjustment based upon the Company’s financial performance, which impacts the number of common shares that it expects to issue upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of grant. The vesting of such shares is determined at the end of the performance period. The Company has awarded restricted shares to certain of its directors, officers and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one (1) year or three (3) years. If all outstanding share awards are ultimately earned and issued at the target number of shares, then at September 30, 2016 there are approximately 252 shares that remain available for award. If any of the outstanding share awards are ultimately earned and issued at greater than the target number of shares, up to a maximum of 150% of such target, then a fewer number of shares would be available for award. Stock-based compensation under the 2007 Plan was a $474 benefit (due to performance share awards not achieving minimum target thresholds) and $963 expense during fiscal 2016 and 2015, respectively. The Company did no t record income tax benefits in Additional Paid-in Capital related to shares that were earned under the 2007 Plan in fiscal 2016 and amount was minimal in fiscal 2015. As of September 30, 2016, there was $761 of total unrecognized compensation cost related to the performance and restricted shares awarded under the 2007 Plan. The Company expects to recognize this cost over the next two (2) years. The following is a summary of activity related to performance shares: 2016 2015 Number of Shares Weighted Average Fair Value at Date of Grant Number of Weighted Average Outstanding at beginning of year 98 $ 28.50 174 $ 24.86 Restricted shares awarded 59 9.53 25 29.88 Restricted shares earned (20 ) 29.59 (33 ) 24.68 Performance shares awarded 102 10.40 56 28.61 Performance shares earned — — (11 ) 20.75 Awards forfeited (93 ) 20.58 (113 ) 25.16 Outstanding at end of year 146 $ 13.07 98 $ 28.50 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company may be involved in ordinary, routine legal actions. The Company cannot reasonably estimate future costs, if any, related to these matters; however, it does not believe any such matters are material to its financial condition or results of operations. The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations; however, it is possible that the Company’s future operating results could be affected by future costs of litigation. The Company leases various facilities and equipment under operating leases expiring through 2034. The Company recorded rent expense of $1,313 and $1,306 in fiscal 2016 and 2015, respectively. At September 30, 2016, minimum rental commitments under non-cancelable leases are as follows: Year ending September 30, Capital Leases Operating Leases 2017 $ 50 $ 1,598 2018 54 1,583 2019 46 1,558 2020 — 1,544 2021 — 1,357 Thereafter — 19,118 Total minimum lease payments $ 150 $ 26,758 Plus: Amount representing interest $ 3 Present value of minimum lease payments $ 153 Amortization of the cost of equipment under capital leases is included in depreciation expense. At September 30, assets recorded under capital leases consist of the following: 2016 2015 Machinery and equipment $ 250 $ 646 Accumulated depreciation (60 ) (32 ) |
Business Information
Business Information | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Information | Business Information The Company identifies itself as one reportable segment, SIFCO, which is a manufacturer of forgings and machined components for the Aerospace & Energy ("A&E) markets. Geographic net sales are based on location of customer. The United States of America is the single largest country for unaffiliated customer sales, accounting for 62% and 70% of consolidated net sales in fiscal 2016 and 2015, respectively. No other single country represents greater than 10% of consolidated net sales in fiscal 2016 and 2015. Net sales to unaffiliated customers located in various European countries accounted for 22% and 16% of consolidated net sales in fiscal 2016 and 2015, respectively. Net sales to unaffiliated customers located in various Asian countries accounted for 4% and 4% of consolidated net sales in fiscal 2016 and 2015, respectively. During fiscal 2015, severance costs was incurred by the company related to one of its executive officers in the amount of $ 964 . Substantially all of the Company's operations and identifiable assets are located within the United States with the exception of its non-U.S. subsidiaries located in Maniago, Italy (see Note 11 for discussion on acquisition of Maniago) and Cork, Ireland. The identifiable assets for the Company's foreign subsidiaries as of September 30, 2016 was $ 37,196 compared with $ 45,235 as of September 30, 2015. 2016 2015 Long-Lived Assets United States $ 44,108 54,013 Europe 28,274 31,141 $ 72,382 85,154 At September 30, 2016, approximately 287 of the hourly plant personnel are represented by three separate collective bargaining units. The table below shows the expiration dates of the collective bargaining agreements. Plant locations Expiration date Cleveland, Ohio May 31, 2020 Alliance, Ohio July 31, 2017 Maniago, Italy * December 31, 2015 * Negotiations in process. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisition On July 1, 2015, the Company completed the acquisition of all of the outstanding equity of Maniago. This acquisition resulted in a major milestone for the Company to bring SIFCO back to being a multi-national A&E company that has locations near its worldwide customer base. Maniago's forging and machining capabilities and European location will help serve the energy market with high quality, cost effective solutions for their growing businesses. The forging business is operated at two facilities, located in Maniago, Italy. The purchase price for the forging business, net of the assumed debt was approximately $16,719 , after a $ 275 purchase price adjustment received and recorded in the first quarter of fiscal 2016 for adjustments principally related to the final working capital level and indebtedness adjustment. In addition, the Company has assumed certain current operating liabilities and indebtedness of the forging business. The Company recorded net sales of $6,000 and net operating income of $ 209 from the date of acquisition through September 30, 2015. The Maniago purchase transaction is accounted for under the purchase method of accounting. The Company completed the purchase accounting related to the Maniago acquisition. The fair values of assets acquired and liabilities assumed, were based upon appraisals, other studies and additional information available at the time of the acquisition of Maniago (level 3 inputs). The Company believes that such information provided a reasonable basis for determining the fair values of the assets acquired and liabilities assumed. To the extent the purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired and assumed, such excess was allocated to goodwill. The following table summarizes the Company's purchase price allocation of the estimated fair values of the assets acquired and liabilities assumed: July 1, 2015 Purchase price adjustments Final purchase price Assets acquired: Accounts receivable $ 6,740 $ 25 $ 6,765 Inventory 6,477 83 6,560 Prepaid & other current assets 1,999 (9 ) 1,990 Property and equipment 16,923 — 16,923 Intangible assets 3,991 443 4,434 Goodwill 8,760 (619 ) 8,141 44,890 (77 ) 44,813 Liabilities assumed: Current maturities of long-term debt 7,920 — 7,920 Accounts payable and accrued liabilities 8,279 59 8,338 Long-term debt 6,437 — 6,437 Other long-term liabilities 5,260 139 5,399 Total purchase price $ 16,994 $ (275 ) $ 16,719 As part of the acquisition of Maniago, the Company incurred transaction related costs which were expensed as incurred. Such costs related to legal and professional expenses and other expenses that are included in the consolidated statements of operations within selling, general and administrative expenses of approximately $ 2,681 in fiscal 2015. The results of operations of Maniago from its respective date of acquisition are included in the Company’s consolidated statements of operations. The following unaudited pro forma information presents a summary of the results of operations for the Company including Maniago as if the acquisitions had occurred on October 1, 2014: (Unaudited) Years Ended September 30, 2015 Net sales $ 130,401 Net loss $ (2,772 ) Net loss per share (basic) $ (0.51 ) Net loss per share (diluted) $ (0.51 ) |
Discontinued Operations, Assets
Discontinued Operations, Assets Held for Sale, and Business Divestiture | 12 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations, Assets Held for Sale, and Business Divestiture | Discontinued Operations, Assets Held for Sale, and Business Divestiture As part of the Company's strategy to focus on the A&E market, the Company decided in the fourth quarter of fiscal 2013 to exit the Turbine Component Services and Repair ("Repair Group"). The results of operations and cash flows from the Repair Group have been classified as discontinued operations for all periods presented. On January 30, 2015, the Company completed the sale of the building and land for cash proceeds of $1,422 , net of selling expenses. The financial results of Repair Group included in discontinued operations were as follows: Years Ended September 30, 2015 Net sales $ — Income before income tax provision 1,160 Income tax provision 451 Income from discontinued operations, net of tax $ 709 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent event | Subsequent event On November 9, 2016, the Company entered into an Amended and Restated agreement with its lender. The new Amended and Restated Agreement matures on June 25, 2020 and the Credit Facility consists an aggregate principal amount of up to $39,871 . The Credit Facility is comprised of (i) a senior secured revolving credit facility of a maximum borrowing amount of $35,000 , including swing line loans and letters of credit provided by the lender and (ii) senior secured Term Facility in the amount of $ 4,871 . The new Term Facility is repayable in monthly installments of $81 beginning December 1, 2016. The terms of Credit Facility contain both a lockbox arrangement and subjective acceleration clause. As a result, the amounts outstanding on the revolving credit facility will be classified as a current maturities of long-term debt. The amounts borrowed under the Amended and Restated Agreement will be used to repay the amounts outstanding under the Company's existing Credit Agreement as of September 30, 2016, for working capital, for general corporate purposes and to pay fees and expenses associated with this transaction. In connection with entering into the Amended and Restated Agreement, the Company terminated its interest rate swap agreement with the lender. Amounts borrowed under the Credit Facility are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its first-tier non-U.S. subsidiaries. Borrowings will bear interest at the LIBOR rate or prime rate, depending on the type of loan requested by the Company, in each case, plus the applicable margin as set forth in the Amended and Restated Agreement. The bank loans contain affirmative and negative covenants customary for a transaction of this type which, among other things, require the Company to maintain a minimum consolidated adjusted EBITDA and maintain a minimum fixed charge coverage ratio. The Credit Agreement also contains covenants which, among other things, limit the Company's ability to: incur unfunded capital expenditures; incur additional debt; make certain investments; create or permit certain liens; merge, consolidate or sell assets outside of the ordinary course of business; and engage in other activities customarily restricted in such agreements, in each case subject to exceptions permitted by the Credit Agreement. The Credit Agreement also contains customary representations and warranties and default provisions (with customary grace periods, as applicable) and provides that, upon the occurrence and continuation of an event of default, payment of all amounts payable under the Credit Facility may be accelerated and/or the lenders’ commitments may be terminated. In addition, upon the occurrence of certain insolvency or bankruptcy related events of default, such commitments will automatically terminate and all amounts outstanding under the Credit Facility will automatically become immediately due and payable. The cost associated to new agreement is approximately $ 700 . |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II SIFCO Industries, Inc. and Subsidiaries Valuation and Qualifying Accounts Years Ended September 30, 2016 and 2015 (Amounts in thousands) Balance at Beginning of Period Additions (Reductions) Charged to Expense Additions (Reductions) Charged to Other Accounts Deductions Balance at End of Period Year Ended September 30, 2016 Deducted from asset accounts Allowance for doubtful accounts $ 1,127 359 (199 ) (581 ) (a) $ 706 Inventory obsolescence reserve 3,022 571 — (285 ) (b) $ 3,308 Inventory LIFO reserve 8,508 (482 ) — — $ 8,026 Deferred tax valuation allowance 1,095 3,304 — — $ 4,399 Accrual for estimated liability Workers’ compensation reserve 688 157 — (521 ) (c) $ 324 Year Ended September 30, 2015 Deducted from asset accounts Allowance for doubtful accounts $ 333 $ 487 $ 307 $ — (a) $ 1,127 Inventory obsolescence reserve 1,407 138 1,804 (327 ) (b) 3,022 Inventory LIFO reserve 7,879 629 — — 8,508 Deferred tax valuation allowance 822 273 — — 1,095 Accrual for estimated liability Workers’ compensation reserve 937 626 (326 ) (549 ) (c) 688 (a) Accounts determined to be uncollectible, net of recoveries (b) Inventory sold or otherwise disposed (c) Payment of workers’ compensation claims |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS SIFCO Industries, Inc. and its subsidiaries are engaged in the production of forgings and machined components primarily in the Aerospace and Energy ("A&E") market. The Company’s operations are conducted in a single business segment, "SIFCO" or "Company." |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the consolidated statements of shareholders’ equity. |
CASH EQUIVALENTS | CASH EQUIVALENTS The Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. A substantial majority of the Company’s cash and cash equivalent bank balances are within federally insured limits at September 30, 2016, however, balances exceed limits at September 30, 2015. |
CONCENTRATIONS OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK Receivables are presented net of allowance for doubtful accounts of $706 and $1,127 at September 30, 2016 and 2015, respectively. Accounts receivable outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible. During fiscal 2016 and 2015, $581 and $0 , respectively, of accounts receivable were written off against the allowance for doubtful accounts. Bad debt expense totaled $359 and $487 in fiscal 2016 and fiscal 2015, respectively. Most of the Company’s receivables represent trade receivables due from manufacturers of turbine engines and aircraft components as well as turbine engine overhaul companies located throughout the world, including a significant concentration of U.S. based companies. In fiscal 2016, 21% of the Company’s consolidated net sales were from two of its largest customers; and 46% of the Company's consolidated net sales were from the four largest customers and their direct subcontractors, which individually accounted for 12% , 12% , 11% and 11% , of consolidated net sales, respectively. In fiscal 2015, 12% of the Company’s consolidated net sales were from one of its largest customers; and 38% of the Company's consolidated net sales were from two of the largest customers and their direct subcontractors which individually accounted for 22% , and 16% , of consolidated net sales, respectively. No other single customer or group represented greater than 10% of total net sales in fiscal 2016 and 2015. At September 30, 2016, two of the Company’s largest customers had outstanding net accounts receivable which individually accounted for 14% and 11% of the total net accounts receivable; and four of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 15% , 13% , 12% and 11% of total net accounts receivable, respectively. At September 30, 2015, one of the Company’s largest customers had outstanding net accounts receivable which accounted for 11% of total net accounts receivable; and two of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 18% and 16% of total, net receivables, respectively. The Company performs ongoing credit evaluations of its customers’ financial conditions. The Company believes its allowance for doubtful accounts is sufficient based on the credit exposures outstanding at September 30, 2016. |
INVENTORY VALUATION | INVENTORY VALUATION Inventories are stated at the lower of cost or market. For a portion of the Company's inventory, cost is determined using the last-in, first-out (“LIFO”) method. For approximately 44% and 38% of the Company’s inventories at September 30, 2016 and 2015, respectively, the LIFO method is used to value the Company’s inventories. The first-in, first-out (“FIFO”) method is used to value the remainder of the Company’s inventories. The Company maintains allowances for obsolete and excess inventory. The Company evaluates its allowances for obsolete and excess inventory each quarter, and requires at a minimum that reserves be established based on an analysis of the age of the inventory. In addition, if the Company identifies specific obsolescence, other than that identified by the aging criteria, an additional reserve will be recognized. Specific obsolescence and excess reserve requirements may arise due to technological or market changes, or based on cancellation of an order. |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost. Depreciation is generally computed using the straight-line method. Depreciation is provided in amounts sufficient to amortize the cost of the assets over their estimated useful lives. Depreciation provisions are based on estimated useful lives: (i) buildings, including building improvements - 5 to 40 years; (ii) machinery and equipment, including office and computer equipment - 3 to 20 years; (iii) software - 3 to 7 years (included in machinery and equipment); and (iv) leasehold improvements - remaining life or length of the lease (included in buildings). The Company reviews the carrying value of its long-lived assets, including property, plant and equipment, at least annually or when events and circumstances warrant such a review. This review is performed using estimates of future undiscounted cash flows, which include proceeds from disposal of assets. If the carrying value of a long-lived asset is greater than the estimated undiscounted future cash flows, then the long-lived asset is considered impaired and an impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value. There have been no asset impairment charges as it relates to the above assets during fiscal 2016 and fiscal 2015. If an asset is determined to be impaired, the carrying value of such assets is reduced to its net realizable value. The gain/loss on disposal of operating assets is included as a separate line item in the accompanying consolidated statements of operations. |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the purchase price paid over the fair value of the net assets of an acquired business. Goodwill is subject to annual impairment testing and the Company has selected July 31 as the annual impairment testing date. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. If so, then a two-step impairment test is used to identify potential goodwill impairment. The first step of the goodwill impairment test compares the fair value of a reporting unit (as defined) with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired, and the second step of the goodwill impairment test is not required. The second step measures the amount of impairment, if any, by comparing the carrying value of the goodwill associated with a reporting unit to the implied fair value of the goodwill derived from the estimated overall fair value of the reporting unit and the individual fair values of the other assets and liabilities of the reporting unit. See Note 3 to for further discussion of the July 31, 2016 annual impairment test results. Intangible assets consist of identifiable intangibles acquired or recognized in the accounting for the acquisition of a business and include such items as a trade name, a non-compete agreement, below market lease, customer relationships and order backlog. Intangible assets are amortized over their useful lives ranging from one year to ten years . |
NET LOSS PER SHARE | NET LOSS PER SHARE The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding. Net loss per diluted share is the same as net loss per basic share. |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue is generally recognized for products shipped or services performed when the following criteria are met: 1.) persuasive evidence of an arrangement exists; 2.) delivery has occurred; 3.) an established sales price has been set with the customer; and 4.) collectibility of the amounts due from the sale is reasonably assured. |
CAPITAL LEASE OBLIGATIONS | CAPITAL LEASE OBLIGATIONS Capital leases are accounted for as the acquisition of an asset and the commitment of an obligation by the lessee and as a sale or financing by the lessor. All other leases are accounted for as operating leases. |
IMPACT OF RECENTLY ADOPTED AND NEWLY ISSUED ACCOUNTING STANDARDS | IMPACT OF RECENTLY ADOPTED ACCOUNTING STANDARDS In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified as non-current in the statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016. The Company has elected to early adopt this ASU prospectively for the year ended September 30, 2016, as is permitted under the standard. Due to the prospective treatment, prior periods presented in these financial statements have not been adjusted. L. IMPACT OF NEWLY ISSUED ACCOUNTING STANDARDS In August 2016, the FASB issued ASU 2016-15, which amends certain cash flow issues which apply to all entities required to present a statement of cash flow. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” This ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs, along with subsequent updates, apply to all companies that enter into contracts with customers to transfer goods or services, and are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Companies have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. The Company is planning a bottoms up approach to analyze the standard's impact on its revenues by looking at historical policies and practices and identifying the differences from applying the new standard to its revenue stream. The Company has not selected a transition date or method nor has it determined the effect of the standard to its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern," which the intent is to define the Company's responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU will be effective for the Company as of October 1, 2017. The Company will prospectively apply the guidance to applicable conditions. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact on our condensed consolidated financial statements. On March 30, 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes a number of changes meant to simplify and improve accounting for share-based payments. The ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently considering early adoption of ASU 2016-09 in the next reporting period, as is permitted under the standard and has not yet determined the impact on our condensed consolidated financial statements. |
USE OF ESTIMATES | USE OF ESTIMATES Accounting principles generally accepted in the U.S. require management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent liabilities, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the period in preparing these financial statements. Actual results could differ from those estimates. |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company periodically uses interest rate swap agreements to reduce risk related to variable-rate debt, which is subject to changes in market rates of interest. Interest rate swaps are designated as a cash flow hedges. |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs are expensed as they are incurred. |
DEFERRED FINANCING COSTS | DEFERRED FINANCING COSTS Debt issuance costs are capitalized and amortized over the life of the related debt. Amortization of deferred financing costs is included in interest expense in the consolidated statements of operations. |
INCOME TAXES | INCOME TAXES The Company files a consolidated U.S. federal income tax return and tax returns in various state and local jurisdictions. The Company’s Irish and Italian subsidiaries also file tax returns in the respective jurisdictions. The Company provides deferred income taxes for the temporary difference between the financial reporting basis and tax basis of the Company’s assets and liabilities. Such taxes are measured using the enacted tax rates that are assumed to be in effect when the differences reverse. Deductible temporary differences result principally from recording certain expenses in the financial statements in excess of amounts currently deductible for tax purposes. Taxable temporary differences result principally from tax depreciation in excess of book depreciation. The Company evaluates for uncertain tax positions taken at each balance sheet date. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest cumulative benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company's policy for interest and/or penalties related to underpayments of income taxes is to include interest and penalties in tax expenses. The Company maintains a valuation allowance against its deferred tax assets when management believes it is more likely than not that all or a portion of a deferred tax asset may not be realized. Changes in valuation allowances are recorded in the period of change. In determining whether a valuation allowance is warranted, the Company evaluates factors such as prior earnings history, expected future earnings, carry-back and carry-forward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities Level 2 - Observable market based inputs or unobservable inputs that are corroborated by market data Level 3 - Unobservable inputs that are not corroborated by market data 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. The book value of cash equivalents, accounts receivable, accounts payable, and revolving credit facilities are considered to be representative of their fair values because of their short maturities. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in goodwill, other intangible assets and long-lived assets impairment analysis, the valuation of acquired intangibles and in the valuation of assets held for sale. Goodwill and intangible assets are valued using Level 3 inputs. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period). Share-based expense includes expense related to restricted shares and performance shares issued under the Company's 2007 Long-Term Incentive Plan. The Company recognizes share-based expense within selling, general, and administrative expense. |
SHIPPING AND HANDLING COSTS | SHIPPING AND HANDLING COSTS The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects shipping and handling costs in cost of sales. |
RECLASSIFICATIONS | RECLASSIFICATIONS Certain amounts in prior years may have been reclassified to conform to the 2016 consolidated financial statement presentation. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment by Major Asset Class | The Company's property, plant and equipment assets by major asset class at September 30 consist of: 2016 2015 Property, plant and equipment: Land $ 979 $ 975 Buildings 15,393 15,446 Machinery and equipment 82,665 80,687 Total property, plant and equipment 99,037 97,108 Accumulated depreciation 50,079 42,243 Property, plant and equipment, net $ 48,958 $ 54,865 |
Dilutive Effect of The Company's Stock Options, Restricted Shares, and Performance Shares | The dilutive effect of the Company’s stock options, restricted shares and performance shares were as follows: September 30, 2016 2015 Loss from continuing operations $ (11,335 ) $ (3,581 ) Income from discontinued operations, net of tax — 709 Net loss $ (11,335 ) $ (2,872 ) Weighted-average common shares outstanding (basic) 5,475 5,438 Weighted-average common shares outstanding (diluted) 5,475 5,438 Net loss per share – basic Continuing operations $ (2.07 ) $ (0.66 ) Discontinued operations — 0.13 Net loss per share $ (2.07 ) $ (0.53 ) Net loss per share – diluted: Continuing operations $ (2.07 ) $ (0.66 ) Discontinued operations — 0.13 Net loss per share $ (2.07 ) $ (0.53 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 32 27 |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as shown on the consolidated balance sheets at September 30 are as follows: 2016 2015 Foreign currency translation adjustment, net of income tax benefit of $0 and $0, respectively $ (5,623 ) $ (5,731 ) Net retirement plan liability adjustment, net of income tax benefit of ($3,758) and ($3,758), respectively (7,197 ) (6,257 ) Interest rate swap agreement, net of income tax benefit of $0 and $0, respectively (30 ) — Total accumulated other comprehensive loss $ (12,850 ) $ (11,988 ) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive loss, net of tax: Foreign Currency Translation Adjustment Retirement Plan Liability Adjustment Interest Rates Swap Adjustment Accumulated Other Comprehensive Loss Balance at September 30, 2014 $ (5,851 ) $ (4,757 ) $ (5 ) $ (10,613 ) Other comprehensive income (loss) before reclassifications 120 (1,846 ) 5 (1,721 ) Amounts reclassified from accumulated other comprehensive loss — 346 — 346 Net current-period other comprehensive loss $ 120 $ (1,500 ) $ 5 $ (1,375 ) Balance at September 30, 2015 $ (5,731 ) $ (6,257 ) $ — $ (11,988 ) Other comprehensive income (loss) before reclassifications 108 (1,991 ) (30 ) (1,913 ) Amounts reclassified from accumulated other comprehensive loss — 1,051 — 1,051 Net current-period other comprehensive loss 108 (940 ) (30 ) (862 ) Balance at September 30, 2016 $ (5,623 ) $ (7,197 ) $ (30 ) $ (12,850 ) |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table reflects the changes in accumulated other comprehensive loss related to the Company for September 30, 2016 and 2015: Amount reclassified from accumulated other comprehensive loss Details about accumulated other comprehensive loss components 2016 2015 Affected line item in the Consolidated Statement of Operations Amortization of Retirement plan liability: Net actuarial loss 828 545 (1) Settlements/curtailments 223 — (1) 1,051 545 Total before taxes — (199 ) Income tax expense $ 1,051 $ 346 Net of taxes (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 7 - Retirement benefit plans for further information. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at September 30 consist of: 2016 2015 Raw materials and supplies $ 7,724 $ 7,212 Work-in-process 10,459 11,088 Finished goods 10,313 9,643 Total inventories $ 28,496 $ 27,943 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets by Major Class Subject to Amortization | The Company’s intangible assets by major asset class subject to amortization as of: September 30, 2016 Weighted Average Life at September 30, Original Cost Accumulated Amortization Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 2,776 $ 1,240 $ 9 $ 1,545 Non-compete agreement 5 years 1,600 1,547 — 53 Below market lease 5 years 900 900 — — Technology asset 5 years 1,869 389 37 1,517 Customer relationships 10 years 15,568 7,571 26 8,023 Total intangible assets $ 22,713 $ 11,647 $ 72 $ 11,138 September 30, 2015 Intangible assets: Trade name 8 years $ 2,776 $ 886 $ 6 $ 1,896 Non-compete agreement 5 years 1,600 1,308 — 292 Below market lease 5 years 900 865 — 35 Technology asset 5 years 1,663 84 12 1,591 Customer relationships 10 years 15,352 5,912 11 9,451 Total intangible assets $ 22,291 $ 9,055 $ 29 $ 13,265 |
Acquired Intangible Assets from Business Acquisition | These acquired intangible assets consist of: Estimated Useful Life Initial Value Purchase Price Adjustment Final Value Intangible assets: Trade name 5 years $ 776 $ — $ 776 Technology asset 5 years 1,663 317 1,980 Customer relationships 10 years 1,552 105 1,657 Total intangible assets $ 3,991 $ 422 $ 4,413 |
Expected Future Amortization Expense | Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2017 $ 2,345 Fiscal year 2018 2,324 Fiscal year 2019 2,309 Fiscal year 2020 2,168 Fiscal year 2021 1,127 |
Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill were as follows: Balance at September 30, 2014 $ 7,658 Goodwill acquired during the year 8,760 Currency translation 62 Balance at September 30, 2015 $ 16,480 Goodwill adjustment (589 ) Currency translation 21 Impairment adjustment (4,164 ) Balance at September 30, 2016 $ 11,748 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at September 30 consist of: 2016 2015 Accrued employee compensation and benefits $ 3,681 $ 3,875 Accrued legal and professional 124 2,069 Accrued workers’ compensation 324 688 Other accrued liabilities 1,105 1,814 Total accrued liabilities $ 5,234 $ 8,446 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | ebt at September 30 consists of: 2016 2015 Revolving credit agreement $ 12,751 $ 16,500 Foreign subsidiary borrowings 9,540 13,197 Capital lease obligations 153 252 Term loan 16,429 19,286 Less: unamortized debt issuance cost (241 ) (306 ) Term loan less unamortized debt issuance cost 16,188 18,980 Total debt 38,632 48,929 Less – current maturities (31,009 ) (10,503 ) Total long-term debt $ 7,623 $ 38,426 |
Schedule of Maturities of Long-Term Debt | Payments on long-term debt under the 2015 Credit Agreement (excluding capital lease obligations, see Note 9) over the next 5 years are as follows: Minimum long-term debt payments 2017 $ 4,871 2018 4,132 2019 4,019 2020 21,599 2021 252 2022 and thereafter — Total Minimum long-term debt payments 34,873 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss from Continuing Operations Before Income Tax Benefit | The components of loss from continuing operations before income tax benefit are as follows: Years Ended September 30, 2016 2015 U.S. $ (11,506 ) $ (6,373 ) Non-U.S. (1,827 ) 348 Loss before income tax benefit $ (13,333 ) $ (6,025 ) |
Schedule of Income Taxes from Continuing Operations Before Income Tax Benefit | Income taxes from continuing operations before income tax benefit consist of the following: Years Ended September 30, 2016 2015 Current income tax provision (benefit): U.S. federal $ (2,687 ) $ (2,560 ) U.S. state and local (111 ) 55 Non-U.S. 94 338 Total current tax benefit (2,704 ) (2,167 ) Deferred income tax provision (benefit): U.S. federal 1,481 (277 ) U.S. state and local 69 (83 ) Non-U.S. (844 ) 83 Total deferred tax provision (benefit) 706 (277 ) Income tax benefit $ (1,998 ) $ (2,444 ) |
Income Tax Benefit from Continuing Operations | The income tax benefit from continuing operations in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows: Years Ended September 30, 2016 2015 Loss before income tax benefit $ (13,333 ) $ (6,025 ) Less-U.S. state and local income tax benefit (111 ) (13 ) Loss before U.S. and non-U.S. federal income tax provision $ (13,222 ) $ (6,012 ) Income tax benefit at U.S. federal statutory rates $ (4,628 ) $ (2,104 ) Tax effect of: Foreign rate differential 254 334 Permanent items 8 438 Undistributed earnings of non-U.S. subsidiaries — (992 ) Prior year tax adjustments (56 ) (23 ) State and local income taxes (80 ) (113 ) Impact of tax law changes (338 ) — Federal tax credits (572 ) (92 ) Valuation allowance 3,309 147 Changes in uncertain tax positions (37 ) 58 Other 142 (97 ) Income tax benefit $ (1,998 ) $ (2,444 ) |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at September 30 consist of the following: 2016 2015 Deferred tax assets: Net non-U.S. operating loss carryforwards $ 777 $ 595 Employee benefits 3,366 3,340 Inventory reserves 1,032 865 Allowance for doubtful accounts 234 377 Foreign tax credits to undistributed earnings 870 — Intangibles 4,364 1,936 Foreign tax credits 575 517 Other 2,307 1,007 Total deferred tax assets 13,525 8,637 Deferred tax liabilities: Depreciation (10,777 ) (9,022 ) Unremitted foreign earnings (65 ) (65 ) Prepaid expenses (566 ) (432 ) Other (647 ) (87 ) Total deferred tax liabilities (12,055 ) (9,606 ) Net deferred tax assets (liabilities) 1,470 (969 ) Valuation allowance (4,399 ) (1,095 ) Net deferred tax liabilities $ (2,929 ) $ (2,064 ) |
Summary of Activity Related to Uncertain Tax Position | A summary of activity related to the Company’s uncertain tax position is as follows: 2016 2015 Balance at beginning of year $ 105 $ 56 Increase due to tax positions taken in current prior year — 49 Decrease due to lapse of statute of limitations (36 ) — Balance at end of year $ 69 $ 105 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Pension Expense for Defined Benefit Plans | Net pension expense, benefit obligations and plan assets for the Company-sponsored defined benefit pension plans consists of the following: Years Ended September 30, 2016 2015 Service cost $ 280 $ 148 Interest cost 1,017 978 Expected return on plan assets (1,632 ) (1,671 ) Amortization of net loss 828 545 Settlement cost 223 — Net pension expense for defined benefit plan $ 716 $ — |
Roll Forward of Defined Benefit Pension Plan Obligationas and Assets | The status of all defined benefit pension plans at September 30 is as follows: 2016 2015 Benefit obligations: Benefit obligations at beginning of year $ 27,685 $ 26,140 Transfer in — 465 Service cost 280 148 Interest cost 1,017 978 Actuarial loss 2,405 1,328 Benefits paid (1,659 ) (1,377 ) Currency translation 3 3 Benefit obligations at end of year $ 29,731 $ 27,685 Plan assets: Plan assets at beginning of year $ 20,896 $ 22,110 Actual return on plan assets 2,061 117 Employer contributions 46 46 Benefits paid (1,659 ) (1,377 ) Plan assets at end of year $ 21,344 $ 20,896 |
Net Plan Assets Recognized in the Consolidated Balance Sheets | Plans in which Benefit Obligations Exceed Assets at September 30, 2016 2015 Reconciliation of funded status: Plan assets less than projected benefit obligations $ (8,387 ) $ (6,789 ) Amounts recognized in accumulated other comprehensive loss: Net loss 10,926 10,003 Net amount recognized in the consolidated balance sheets $ 2,539 $ 3,214 Amounts recognized in the consolidated balance sheets are: Accrued liabilities (46 ) (46 ) Pension liability (8,341 ) (6,743 ) Accumulated other comprehensive loss – pretax 10,926 10,003 Net amount recognized in the consolidated balance sheets $ 2,539 $ 3,214 |
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Costs | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs during fiscal 2017 are as follows: Plans in which Plans in which Net loss $ — $ 887 |
Weighted-Average Assumptions Used in Developing Benefit Obligation and Net Pension Expense | Where applicable, the following weighted-average assumptions were used in developing the benefit obligation and the net pension expense for defined benefit pension plans: Years Ended 2016 2015 Discount rate for liabilities 3.1 % 3.9 % Discount rate for expenses 3.8 % 3.9 % Expected return on assets 8.0 % 8.0 % |
Fair Values and Asset Allocation Ranges of Defined Benefit Plan Investments | The “Asset Allocation Range” listed below anticipates these potential scenarios and provides flexibility for the Plan’s investments to vary around the objective without triggering a reallocation of the assets, as noted by the following: Percent of Plan Assets at September 30, Asset Allocation Range 2016 2015 U.S. equities 50 % 50 % 30% to 70% Non-U.S. equities 7 % 8 % 0% to 20% U.S. debt securities 41 % 40 % 20% to 70% Non-U.S. debt securities — % — % 0% to 10% Other securities 2 % 2 % 0% to 60% Total 100 % 100 % The following tables set forth the asset allocation of the Company’s defined benefit pension plan assets and summarize the fair values and levels within the fair value hierarchy for such plan assets as of September 30, 2016 and 2015: September 30, 2016 Asset Amount Level 1 Level 2 Level 3 U.S. equity securities: Large value $ 492 $ — $ 492 $ — Large blend 9,593 — 9,593 — Large growth 503 — 503 — Mid blend 57 — 57 — Small blend 56 — 56 — Non-U.S. equity securities: Foreign large blend 1,565 — 1,565 — Diversified emerging markets 18 — 18 — U.S. debt securities: Inflation protected bond 537 — 537 — Intermediate term bond 7,747 — 5,562 2,185 High inflation bond 360 — 360 — Non-U.S. debt securities: Emerging markets bonds 66 — 66 — Stable value: Short-term bonds 350 — 350 — Total plan assets at fair value $ 21,344 $ — $ 19,159 $ 2,185 September 30, 2015 Asset Amount Level 1 Level 2 Level 3 U.S. equity securities: Large value $ 487 $ — $ 487 $ — Large blend 9,268 — 9,268 — Large growth 515 — 515 — Mid blend 109 — 109 — Small blend 102 — 102 — Non-U.S. equity securities: Foreign large blend 1,559 — 1,559 — Diversified emerging markets 35 — 35 — U.S. debt securities: Inflation protected bond 489 — 489 — Intermediate term bond 7,538 — 5,493 2,045 High inflation bond 340 — 340 — Non-U.S. debt securities: Emerging markets bonds 56 — 56 — Stable value: Short-term bonds 398 — 398 — Total plan assets at fair value $ 20,896 $ — $ 18,851 $ 2,045 |
Changes in the Fair Value of Level 3 Defined Benefit Plan Investments | Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2016 and 2015 were as follows: 2016 2015 Balance at beginning of year $ 2,045 $ 2,102 Actual return on plan assets 126 76 Purchases and sales of plan assets, net 14 (133 ) Balance at end of year $ 2,185 $ 2,045 |
Schedule of Projected Future Defined Benefit Plan Payments | The following defined benefit payment amounts are expected to be made in the future: Years Ending September 30, Projected Benefit Payments 2017 $ 2,414 2018 1,850 2019 1,576 2020 1,808 2021 1,849 2022-2026 8,648 |
Schedule of Contributions in U.S. Multi-Employer Retirement Plan for Certain Union Employees | The Company contributes to one (1) U.S. multi-employer retirement plan for certain union employees, as follow: Pension Fund Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions by the Company Surcharge Imposed Expiration of Collective Bargaining Agreement 2016 2015 2016 2015 Fund ¹ Green Green No $ 65 $ 49 No 5/31/2020 ¹ The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund utilized the special 30 -year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Activity Related to Performance Shares | The following is a summary of activity related to performance shares: 2016 2015 Number of Shares Weighted Average Fair Value at Date of Grant Number of Weighted Average Outstanding at beginning of year 98 $ 28.50 174 $ 24.86 Restricted shares awarded 59 9.53 25 29.88 Restricted shares earned (20 ) 29.59 (33 ) 24.68 Performance shares awarded 102 10.40 56 28.61 Performance shares earned — — (11 ) 20.75 Awards forfeited (93 ) 20.58 (113 ) 25.16 Outstanding at end of year 146 $ 13.07 98 $ 28.50 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Rental Commitments Under Non-Cancelable Leases | At September 30, 2016, minimum rental commitments under non-cancelable leases are as follows: Year ending September 30, Capital Leases Operating Leases 2017 $ 50 $ 1,598 2018 54 1,583 2019 46 1,558 2020 — 1,544 2021 — 1,357 Thereafter — 19,118 Total minimum lease payments $ 150 $ 26,758 Plus: Amount representing interest $ 3 Present value of minimum lease payments $ 153 |
Schedule of Capital Leased Assets | At September 30, assets recorded under capital leases consist of the following: 2016 2015 Machinery and equipment $ 250 $ 646 Accumulated depreciation (60 ) (32 ) |
Business Information (Tables)
Business Information (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | 2016 2015 Long-Lived Assets United States $ 44,108 54,013 Europe 28,274 31,141 $ 72,382 85,154 |
Schedule of Maturities of Bargaining Agreements | The table below shows the expiration dates of the collective bargaining agreements. Plant locations Expiration date Cleveland, Ohio May 31, 2020 Alliance, Ohio July 31, 2017 Maniago, Italy * December 31, 2015 * Negotiations in process. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Purchase Price Allocation of the Estimated Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the Company's purchase price allocation of the estimated fair values of the assets acquired and liabilities assumed: July 1, 2015 Purchase price adjustments Final purchase price Assets acquired: Accounts receivable $ 6,740 $ 25 $ 6,765 Inventory 6,477 83 6,560 Prepaid & other current assets 1,999 (9 ) 1,990 Property and equipment 16,923 — 16,923 Intangible assets 3,991 443 4,434 Goodwill 8,760 (619 ) 8,141 44,890 (77 ) 44,813 Liabilities assumed: Current maturities of long-term debt 7,920 — 7,920 Accounts payable and accrued liabilities 8,279 59 8,338 Long-term debt 6,437 — 6,437 Other long-term liabilities 5,260 139 5,399 Total purchase price $ 16,994 $ (275 ) $ 16,719 |
Pro Forma Results of Operations of Acquired Subsidiary | The following unaudited pro forma information presents a summary of the results of operations for the Company including Maniago as if the acquisitions had occurred on October 1, 2014: (Unaudited) Years Ended September 30, 2015 Net sales $ 130,401 Net loss $ (2,772 ) Net loss per share (basic) $ (0.51 ) Net loss per share (diluted) $ (0.51 ) |
Discontinued Operations, Asse35
Discontinued Operations, Assets Held for Sale, and Business Divestiture (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Repair Group | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Financial Results in Discontinued Operations | The financial results of Repair Group included in discontinued operations were as follows: Years Ended September 30, 2015 Net sales $ — Income before income tax provision 1,160 Income tax provision 451 Income from discontinued operations, net of tax $ 709 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment by Major Asset Class (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 99,037 | $ 97,108 |
Accumulated depreciation | 50,079 | 42,243 |
Property, plant and equipment, net | 48,958 | 54,865 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 979 | 975 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 15,393 | 15,446 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 82,665 | $ 80,687 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Dilutive Effect of The Company's Stock Options, Restricted Shares, and Performance Shares(Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||
Loss from continuing operations | $ (11,335) | $ (3,581) |
Income from discontinued operations, net of tax | 0 | 709 |
Net Loss | $ (11,335) | $ (2,872) |
Dilutive effect of the Company's stock options | ||
Weighted-average common shares outstanding (basic) | 5,475 | 5,438 |
Weighted-average common shares outstanding (diluted) | 5,475 | 5,438 |
Net loss per share – basic | ||
Continuing operations (in dollars per share) | $ (2.07) | $ (0.66) |
Discontinued operations (in dollars per share) | 0 | 0.13 |
Net loss (in dollars per share) | (2.07) | (0.53) |
Net loss per share – diluted: | ||
Continuing operations (in dollars per share) | (2.07) | (0.66) |
Discontinued operations (in dollars per share) | 0 | 0.13 |
Net loss (in dollars per share) | $ (2.07) | $ (0.53) |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share | 32 | 27 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 73,069 | $ 76,620 |
Other comprehensive income (loss) before reclassifications | (1,913) | (1,721) |
Amounts reclassified from accumulated other comprehensive loss | 1,051 | 346 |
Net current-period other comprehensive loss | (862) | (1,375) |
Ending Balance | 60,370 | 73,069 |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated comprehensive loss, tax benefit | 0 | 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (5,731) | (5,851) |
Other comprehensive income (loss) before reclassifications | 108 | 120 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive loss | 108 | 120 |
Ending Balance | (5,623) | (5,731) |
Retirement Plan Liability Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated comprehensive loss, tax benefit | 3,758 | 3,758 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (6,257) | (4,757) |
Other comprehensive income (loss) before reclassifications | (1,991) | (1,846) |
Amounts reclassified from accumulated other comprehensive loss | 1,051 | 346 |
Net current-period other comprehensive loss | (940) | (1,500) |
Ending Balance | (7,197) | (6,257) |
Interest Rates Swap Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated comprehensive loss, tax benefit | 0 | 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | (5) |
Other comprehensive income (loss) before reclassifications | (30) | 5 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive loss | (30) | 5 |
Ending Balance | (30) | 0 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (11,988) | (10,613) |
Ending Balance | $ (12,850) | $ (11,988) |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Reclassification Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Net actuarial loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount reclassified from accumulated other comprehensive loss, before taxes | [1] | $ (828) | $ (545) |
Settlements/curtailments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount reclassified from accumulated other comprehensive loss, before taxes | [1] | 223 | 0 |
Retirement Plan Liability Adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount reclassified from accumulated other comprehensive loss, before taxes | 1,051 | 545 | |
Income tax expense | 0 | (199) | |
Net of taxes | $ 1,051 | $ 346 | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 7 - Retirement benefit plans for further information. |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Sep. 30, 2016USD ($)CustomerinstrumentSegment | Sep. 30, 2015USD ($)CustomerSegment | |
Accounting Policies [Line Items] | ||
Number of operating segments | Segment | 1 | 1 |
Allowance for doubtful accounts | $ 706,000 | $ 1,127,000 |
Accounts receivable, written off | 581,000 | 0 |
Bad debt expense | $ 359,000 | $ 487,000 |
Percentage of inventory estimated using LIFO method | 44.00% | 38.00% |
Reserve for obsolete and excess inventory | $ 3,308,000 | $ 3,022,000 |
Property, plant and equipment, impairment | 0 | 0 |
Depreciation expense | 8,173,000 | 6,048,000 |
Cork, Ireland facility, accumulated depreciation | 50,079,000 | 42,243,000 |
Decrease in workers' compensation expense | 400,000 | |
Research and development expense | 0 | 0 |
Other long-term liabilities | $ 605,000 | 506,000 |
Interest Rate Swap | Cash Flow Hedging | ||
Accounting Policies [Line Items] | ||
Number of interest rate swaps | instrument | 1 | |
Interest rate swap agreement amount | $ 8,214,000 | |
Interest rate swap fair value | 30,000 | |
Subsidiaries | ||
Accounting Policies [Line Items] | ||
Rental income, quarterly installment | 103,000 | |
Cork, Ireland facility, carrying value | 1,496,000 | 1,570,000 |
Cork, Ireland facility, accumulated depreciation | 1,437,000 | 1,511,000 |
Rental income | $ 413,000 | $ 413,000 |
Minimum | ||
Accounting Policies [Line Items] | ||
Intangible assets amortized over useful lives (in years) | 1 year | |
Maximum | ||
Accounting Policies [Line Items] | ||
Intangible assets amortized over useful lives (in years) | 10 years | |
Building and Building Improvements | Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 5 years | |
Building and Building Improvements | Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 40 years | |
Machinery and Equipment | Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 3 years | |
Machinery and Equipment | Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 20 years | |
Computer Software | Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 3 years | |
Computer Software | Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 7 years | |
Customer Concentration Risk | Sales Revenue, Net | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 21.00% | |
Number of major customer | Customer | 2 | 1 |
Customer Concentration Risk | Sales Revenue, Net | Total Customers And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 46.00% | 38.00% |
Number of major customer | Customer | 4 | 2 |
Customer Concentration Risk | Sales Revenue, Net | Major Customer One And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 12.00% | 22.00% |
Customer Concentration Risk | Sales Revenue, Net | Major Customer Two And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 12.00% | 16.00% |
Customer Concentration Risk | Sales Revenue, Net | Major Customer Three And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | |
Customer Concentration Risk | Sales Revenue, Net | Major Customer Four And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | |
Customer Concentration Risk | Sales Revenue, Net | Customer One | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 12.00% | |
Customer Concentration Risk | Accounts Receivable | ||
Accounting Policies [Line Items] | ||
Number of major customer | Customer | 2 | 1 |
Customer Concentration Risk | Accounts Receivable | Total Customers And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Number of major customer | Customer | 4 | 2 |
Customer Concentration Risk | Accounts Receivable | Major Customer One And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 15.00% | 18.00% |
Customer Concentration Risk | Accounts Receivable | Major Customer Two And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 13.00% | 16.00% |
Customer Concentration Risk | Accounts Receivable | Major Customer Three And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 12.00% | |
Customer Concentration Risk | Accounts Receivable | Major Customer Four And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | |
Customer Concentration Risk | Accounts Receivable | Customer One | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 14.00% | 11.00% |
Customer Concentration Risk | Accounts Receivable | Customer Two | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | |
Scenario, Previously Reported | ||
Accounting Policies [Line Items] | ||
Reclassification of other operating liabilities | $ 506,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Components of inventories | ||
Raw materials and supplies | $ 7,724 | $ 7,212 |
Work-in-process | 10,459 | 11,088 |
Finished goods | 10,313 | 9,643 |
Total inventories | $ 28,496 | $ 27,943 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | ||
Additional amount that would have been reported in inventory if FIFO method had been used | $ 8,026 | $ 8,508 |
LIFO expense (income) | $ (482) | $ 629 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Intangible Assets by Major Class Subject to Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Components of intangible assets by major class subject to amortization | ||
Original Cost | $ 22,713 | $ 22,291 |
Accumulated Amortization | 11,647 | 9,055 |
Currency Translation | 72 | 29 |
Net Book Value | $ 11,138 | $ 13,265 |
Trade name | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 8 years | 8 years |
Original Cost | $ 2,776 | $ 2,776 |
Accumulated Amortization | 1,240 | 886 |
Currency Translation | 9 | 6 |
Net Book Value | $ 1,545 | $ 1,896 |
Non-compete agreement | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 5 years | 5 years |
Original Cost | $ 1,600 | $ 1,600 |
Accumulated Amortization | 1,547 | 1,308 |
Currency Translation | 0 | 0 |
Net Book Value | $ 53 | $ 292 |
Below market lease | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 5 years | 5 years |
Original Cost | $ 900 | $ 900 |
Accumulated Amortization | 900 | 865 |
Currency Translation | 0 | 0 |
Net Book Value | $ 0 | $ 35 |
Technology asset | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 5 years | 5 years |
Original Cost | $ 1,869 | $ 1,663 |
Accumulated Amortization | 389 | 84 |
Currency Translation | 37 | 12 |
Net Book Value | $ 1,517 | $ 1,591 |
Customer relationships | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 10 years | 10 years |
Original Cost | $ 15,568 | $ 15,352 |
Accumulated Amortization | 7,571 | 5,912 |
Currency Translation | 26 | 11 |
Net Book Value | $ 8,023 | $ 9,451 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Acquired Intangible Assets from Business Acquisition (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Initial Value | $ 4,413 |
Purchase Price Adjustment | 422 |
Scenario, Previously Reported | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Initial Value | $ 3,991 |
Trade name | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Initial Value | $ 776 |
Purchase Price Adjustment | 0 |
Trade name | Scenario, Previously Reported | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Initial Value | $ 776 |
Technology asset | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Initial Value | $ 1,980 |
Purchase Price Adjustment | 317 |
Technology asset | Scenario, Previously Reported | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Initial Value | $ 1,663 |
Customer relationships | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 10 years |
Initial Value | $ 1,657 |
Purchase Price Adjustment | 105 |
Customer relationships | Scenario, Previously Reported | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Initial Value | $ 1,552 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Expected Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Amortization Expense | |
Fiscal year 2017 | $ 2,345 |
Fiscal year 2018 | 2,324 |
Fiscal year 2019 | 2,309 |
Fiscal year 2020 | 2,168 |
Fiscal year 2021 | $ 1,127 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Changes in Net Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 16,480 | $ 7,658 |
Goodwill acquired during the year | 8,760 | |
Goodwill adjustment | (589) | |
Currency translation | 21 | 62 |
Impairment adjustment | (4,164) | 0 |
Balance at end of period | $ 11,748 | $ 16,480 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 2,593 | $ 2,245 | |
Goodwill impairment | 4,164 | 0 | |
Goodwill | $ 11,748 | $ 16,480 | $ 7,658 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Components of Accrued liabilities | ||
Accrued employee compensation and benefits | $ 3,681 | $ 3,875 |
Accrued legal and professional | 124 | 2,069 |
Accrued workers’ compensation | 324 | 688 |
Other accrued liabilities | 1,105 | 1,814 |
Total accrued liabilities | $ 5,234 | $ 8,446 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Components of long-term debt | ||
Total debt | $ 38,632 | $ 48,929 |
Less – current maturities | (31,009) | (10,503) |
Total long-term debt | 7,623 | 38,426 |
Capital lease obligations | ||
Components of long-term debt | ||
Total debt | 153 | 252 |
Term loan | ||
Components of long-term debt | ||
Long-term debt, gross | 16,429 | 19,286 |
Less: unamortized debt issuance cost | (241) | (306) |
Total debt | 16,188 | 18,980 |
Revolving credit agreement | Line of Credit | ||
Components of long-term debt | ||
Total debt | 12,751 | 16,500 |
Foreign subsidiary borrowings | ||
Components of long-term debt | ||
Total debt | $ 9,540 | $ 13,197 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 09, 2016 | Jun. 26, 2015 | Oct. 31, 2011 | Sep. 30, 2016 | Jan. 01, 2016 | Sep. 30, 2015 | Sep. 30, 2011 |
Line Of Credit Facility [Line Items] | |||||||
Outstanding borrowings | $ 34,873,000 | ||||||
Current maturities of long-term debt | 31,009,000 | $ 10,503,000 | |||||
Foreign subsidiary borrowings | |||||||
Line Of Credit Facility [Line Items] | |||||||
Outstanding borrowings | 9,540,000 | 13,197,000 | |||||
Foreign debt borrowings, current | 5,833,000 | 7,542,000 | |||||
Foreign debt borrowings, short-term borrowings | 3,262,000 | 3,184,000 | |||||
Current maturities of long-term debt | 2,014,000 | 2,371,000 | |||||
Foreign debt borrowings, factoring payable, current | 557,000 | 1,987,000 | |||||
Receivables pledged as collateral, carrying value | $ 599,000 | $ 1,620,000 | |||||
Foreign subsidiary borrowings | Euro Interbank Offered Rate (Euribor) | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Euribor variable interest rates | 1.00% | ||||||
Foreign subsidiary borrowings | Euro Interbank Offered Rate (Euribor) | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Euribor variable interest rates | 4.00% | ||||||
2015 Credit Agreement | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt issuance costs, gross | $ 724,000 | ||||||
2015 Credit Agreement | Term loan | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt agreement term | 5 years | ||||||
Issued amount of debt | $ 20,000,000 | ||||||
Installment payment | $ 714,000 | ||||||
Installment payment starting date | Sep. 30, 2015 | ||||||
Debt issuance costs, term loan, net | $ 241,000 | ||||||
Accumulated amortization of debt issuance costs, term loan | $ 81,000 | ||||||
2015 Credit Agreement | Term loan | London Interbank Offered Rate (LIBOR) | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread on LIBOR | 2.75% | ||||||
Weighted average interest rate | 3.80% | 3.10% | |||||
Fixed interest rate after effect of interest rate swap | 3.90% | ||||||
2015 Credit Agreement | Revolving credit agreement | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt agreement term | 5 years | ||||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | $ 20,000,000 | |||||
Percentage of stock of non-U.S. subsidiaries pledged | 65.00% | ||||||
Accordion feature, amount of increase in borrowing capacity | $ 15,000,000 | ||||||
Debt issuance costs, revolver, net | $ 301,000 | ||||||
Accumulated amortization of debt issuance costs, revolver | $ 101,000 | ||||||
2015 Credit Agreement | Revolving credit agreement | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Commitment fee | 0.15% | ||||||
2015 Credit Agreement | Revolving credit agreement | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Commitment fee | 0.35% | ||||||
2015 Credit Agreement | Revolving credit agreement | London Interbank Offered Rate (LIBOR) | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread on LIBOR | 2.75% | ||||||
Weighted average interest rate | 3.90% | 3.20% | |||||
2016 Amended and Restated Credit and Security Agreement | Line of Credit | Subsequent Event | |||||||
Line Of Credit Facility [Line Items] | |||||||
Revolving credit facility, maximum borrowing capacity | $ 39,871,000 | ||||||
Percentage of stock of non-U.S. subsidiaries pledged | 65.00% | ||||||
Debt issuance costs, gross | $ 700,000 | ||||||
2016 Amended and Restated Credit and Security Agreement | Revolving credit agreement | Line of Credit | Subsequent Event | |||||||
Line Of Credit Facility [Line Items] | |||||||
Revolving credit facility, maximum borrowing capacity | 35,000,000 | ||||||
2016 Amended and Restated Credit and Security Agreement | Secured Debt | Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Outstanding borrowings | $ 4,061,000 | ||||||
2016 Amended and Restated Credit and Security Agreement | Secured Debt | Line of Credit | Subsequent Event | |||||||
Line Of Credit Facility [Line Items] | |||||||
Issued amount of debt | 4,871,000 | ||||||
Installment payment | $ 81,000 | ||||||
2011 Credit Agreement Amendment | Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Revolving credit facility, maximum borrowing capacity | $ 40,000,000 | $ 30,000,000 | |||||
Percentage of stock of non-U.S. subsidiaries pledged | 65.00% | ||||||
Installment payment | $ 500,000 | ||||||
Installment payment starting date | Dec. 1, 2011 | ||||||
2011 Credit Agreement Amendment | Revolving credit agreement | Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt agreement term | 5 years | ||||||
Revolving credit facility, maximum borrowing capacity | $ 30,000,000 | ||||||
2011 Credit Agreement Amendment | Secured Debt | Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt agreement term | 5 years | ||||||
Issued amount of debt | $ 10,000,000 |
Debt - Schedule of Minimum Long
Debt - Schedule of Minimum Long-term Debt Payments (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 4,871 |
2,018 | 4,132 |
2,019 | 4,019 |
2,020 | 21,599 |
2,021 | 252 |
2022 and thereafter | 0 |
Total Minimum long-term debt payments | $ 34,873 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Loss from Continuing Operations Before Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Components of income Before Income tax provision | ||
U.S. | $ (11,506) | $ (6,373) |
Non-U.S. | (1,827) | 348 |
Loss from continuing operations before income tax benefit | $ (13,333) | $ (6,025) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes from Continuing Operations Before Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Current income tax provision (benefit): | ||
U.S. federal | $ (2,687) | $ (2,560) |
U.S. state and local | (111) | 55 |
Non-U.S. | 94 | 338 |
Total current tax benefit | (2,704) | (2,167) |
Deferred income tax provision (benefit): | ||
U.S. federal | 1,481 | (277) |
U.S. state and local | 69 | (83) |
Non-U.S. | (844) | 83 |
Total deferred tax provision (benefit) | 706 | (277) |
Income tax benefit | $ (1,998) | $ (2,444) |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Provision Accompanying Consolidated Statements of Operation | ||
Loss before income tax benefit | $ (13,333) | $ (6,025) |
Less-U.S. state and local income tax benefit | (111) | (13) |
Loss before U.S. and non-U.S. federal income tax provision | (13,222) | (6,012) |
Income tax benefit at U.S. federal statutory rates | (4,628) | (2,104) |
Tax effect of: | ||
Foreign rate differential | 254 | 334 |
Permanent items | 8 | 438 |
Undistributed earnings of non-U.S. subsidiaries | 0 | (992) |
Prior year tax adjustments | (56) | (23) |
State and local income taxes | (80) | (113) |
Impact of tax law changes | (338) | 0 |
Federal tax credits | (572) | (92) |
Valuation allowance | 3,309 | 147 |
Changes in uncertain tax positions | (37) | 58 |
Other | 142 | (97) |
Income tax benefit | $ (1,998) | $ (2,444) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets: | ||
Net non-U.S. operating loss carryforwards | $ 777 | $ 595 |
Employee benefits | 3,366 | 3,340 |
Inventory reserves | 1,032 | 865 |
Allowance for doubtful accounts | 234 | 377 |
Foreign tax credits to undistributed earnings | 870 | 0 |
Intangibles | 4,364 | 1,936 |
Foreign tax credits | 575 | 517 |
Other | 2,307 | 1,007 |
Total deferred tax assets | 13,525 | 8,637 |
Deferred tax liabilities: | ||
Depreciation | (10,777) | (9,022) |
Unremitted foreign earnings | (65) | (65) |
Prepaid expenses | (566) | (432) |
Other | (647) | (87) |
Total deferred tax liabilities | (12,055) | (9,606) |
Net deferred tax assets (liabilities) | 1,470 | (969) |
Valuation allowance | (4,399) | (1,095) |
Net deferred tax liabilities | $ (2,929) | $ (2,064) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Uncertain Tax Position (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of activity related to uncertain tax positions | ||
Balance at beginning of year | $ 105 | $ 56 |
Increase due to tax positions taken in current prior year | 0 | 49 |
Decrease due to lapse of statute of limitations | (36) | 0 |
Balance at end of year | $ 69 | $ 105 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Change in valuation allowance | $ (3,309) | $ (147) | |
Valuation allowance | $ 4,399 | 4,399 | 1,095 |
Alternative minimum tax | 95 | 95 | |
Portion of tax loss carryforward offset by unrealized stock compensation deduction | 5 | ||
Liability for uncertain tax positions, excluding any related interest and penalties | 69 | 69 | 105 |
Portion of liability related to uncertain tax position which, if recognized, would impact the effective tax rate | 69 | 69 | |
Accrued (reversal of accrued) interest | 21 | 21 | |
Interest and penalties from continuing operations | 3 | ||
Undistributed earnings of foreign subsidiaries | 9,766 | 9,766 | |
Revenue commissioners, Ireland | Subsidiaries | |||
Operating Loss Carryforwards [Line Items] | |||
Non US tax loss carryforward | 6,132 | 6,132 | |
Foreign tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Non US tax loss carryforward | 575 | 575 | |
Domestic tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Change in valuation allowance | 3,259 | ||
Deferred tax assets, net | $ 838 | ||
Valuation allowance | 3,902 | 3,902 | |
Non US tax loss carryforward | 520 | 520 | |
State tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Non US tax loss carryforward | 165 | 165 | |
State and local jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Non US tax loss carryforward | $ 10,583 | $ 10,583 |
Retirement Benefit Plans - Net
Retirement Benefit Plans - Net Pension Expense for Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Components of net periodic benefit cost | ||
Service cost | $ 280 | $ 148 |
Interest cost | 1,017 | 978 |
United States Pension Plan of US Entity | ||
Components of net periodic benefit cost | ||
Service cost | 280 | 148 |
Interest cost | 1,017 | 978 |
Expected return on plan assets | (1,632) | (1,671) |
Amortization of net loss | 828 | 545 |
Settlement cost | 223 | 0 |
Net pension expense for defined benefit plan | $ 716 | $ 0 |
Retirement Benefit Plans - Roll
Retirement Benefit Plans - Roll Forward of Defined Benefit Pension Plan Obligationas and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Benefit obligations: | ||
Benefit obligations at beginning of year | $ 27,685 | $ 26,140 |
Transfer in | 0 | 465 |
Service cost | 280 | 148 |
Interest cost | 1,017 | 978 |
Actuarial loss | 2,405 | 1,328 |
Benefits paid | (1,659) | (1,377) |
Currency translation | 3 | 3 |
Plan assets at end of year | 29,731 | 27,685 |
Plan assets: | ||
Plan assets at beginning of year | 20,896 | 22,110 |
Actual return on plan assets | 2,061 | 117 |
Employer contributions | 46 | 46 |
Benefits paid | (1,659) | (1,377) |
Plan assets at end of year | $ 21,344 | $ 20,896 |
Retirement Benefit Plans - Ne60
Retirement Benefit Plans - Net Plan Assets Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Reconciliation of funded status: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | $ (8,387) | $ (6,789) |
Amounts recognized in accumulated other comprehensive loss: | ||
Net loss, Plans in which Benefit Obligations Exceed Assets | 10,926 | 10,003 |
Net amount recognized in the consolidated balance sheets, Plans in which Benefit Obligations Exceed Assets | 2,539 | 3,214 |
Amounts recognized in the consolidated balance sheets are: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (8,387) | (6,789) |
Accumulated other comprehensive loss pretax, Plans in which Benefit Obligations Exceed Assets | 10,926 | 10,003 |
Accrued liabilities | ||
Reconciliation of funded status: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (46) | (46) |
Amounts recognized in the consolidated balance sheets are: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (46) | (46) |
Pension liability | ||
Reconciliation of funded status: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (8,341) | (6,743) |
Amounts recognized in the consolidated balance sheets are: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | $ (8,341) | $ (6,743) |
Retirement Benefit Plans - Amou
Retirement Benefit Plans - Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Costs (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |
Net loss, Plans in which Assets Exceed Benefit Obligations | $ 0 |
Net loss, Plans in which Benefit Obligations Exceed Assets | $ 887 |
Retirement Benefit Plans - Weig
Retirement Benefit Plans - Weighted-Average Assumptions Used in Developing Benefit Obligation and Net Pension Expense (Details) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Developing the benefit obligation and the net pension expense for defined benefit pension plans | ||
Discount rate for liabilities | 3.10% | 3.90% |
Discount rate for expenses | 3.80% | 3.90% |
Expected return on assets | 8.00% | 8.00% |
Retirement Benefit Plans - Fair
Retirement Benefit Plans - Fair Values of Defined Benefit Plan Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | $ 21,344 | $ 20,896 | $ 22,110 |
Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 19,159 | 18,851 | |
Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 2,185 | 2,045 | $ 2,102 |
Large value | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 492 | 487 | |
Large value | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Large value | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 492 | 487 | |
Large value | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Large blend | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 9,593 | 9,268 | |
Large blend | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Large blend | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 9,593 | 9,268 | |
Large blend | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Large growth | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 503 | 515 | |
Large growth | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Large growth | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 503 | 515 | |
Large growth | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Mid blend | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 57 | 109 | |
Mid blend | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Mid blend | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 57 | 109 | |
Mid blend | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Small blend | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 56 | 102 | |
Small blend | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Small blend | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 56 | 102 | |
Small blend | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Foreign large blend | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 1,565 | 1,559 | |
Foreign large blend | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Foreign large blend | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 1,565 | 1,559 | |
Foreign large blend | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Diversified emerging markets | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 18 | 35 | |
Diversified emerging markets | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Diversified emerging markets | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 18 | 35 | |
Diversified emerging markets | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Inflation protected bond | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 537 | 489 | |
Inflation protected bond | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Inflation protected bond | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 537 | 489 | |
Inflation protected bond | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Intermediate term bond | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 7,747 | 7,538 | |
Intermediate term bond | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Intermediate term bond | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 5,562 | 5,493 | |
Intermediate term bond | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 2,185 | 2,045 | |
High inflation bond | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 360 | 340 | |
High inflation bond | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
High inflation bond | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 360 | 340 | |
High inflation bond | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Emerging markets bonds | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 66 | 56 | |
Emerging markets bonds | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Emerging markets bonds | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 66 | 56 | |
Emerging markets bonds | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Short-term bonds | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 350 | 398 | |
Short-term bonds | Level 1 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 0 | 0 | |
Short-term bonds | Level 2 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | 350 | 398 | |
Short-term bonds | Level 3 | |||
Amounts recognized in the consolidated balance sheets are: | |||
Asset Amount | $ 0 | $ 0 |
Retirement Benefit Plans - Chan
Retirement Benefit Plans - Changes in the Fair Value of Level 3 Defined Benefit Plan Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in the fair value of the Company's Level 3 investments | ||
Plan assets at beginning of year | $ 20,896 | $ 22,110 |
Actual return on plan assets | 2,061 | 117 |
Plan assets at end of year | 21,344 | 20,896 |
Level 3 | ||
Changes in the fair value of the Company's Level 3 investments | ||
Plan assets at beginning of year | 2,045 | 2,102 |
Actual return on plan assets | 126 | 76 |
Purchases and sales of plan assets, net | 14 | (133) |
Plan assets at end of year | $ 2,185 | $ 2,045 |
Retirement Benefit Plans - Asse
Retirement Benefit Plans - Asset Allocation Ranges of Defined Benefit Plan Investments (Details) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 100.00% | 100.00% |
U.S. equities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 50.00% | 50.00% |
Asset Allocations Range Minimum | 30.00% | |
Asset Allocations Range Maximum | 70.00% | |
Non-U.S. equities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 7.00% | 8.00% |
Asset Allocations Range Minimum | 0.00% | |
Asset Allocations Range Maximum | 20.00% | |
U.S. debt securities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 41.00% | 40.00% |
Asset Allocations Range Minimum | 20.00% | |
Asset Allocations Range Maximum | 70.00% | |
Non-U.S. debt securities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 0.00% | 0.00% |
Asset Allocations Range Minimum | 0.00% | |
Asset Allocations Range Maximum | 10.00% | |
Other securities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 2.00% | 2.00% |
Asset Allocations Range Minimum | 0.00% | |
Asset Allocations Range Maximum | 60.00% |
Retirement Benefit Plans - Sche
Retirement Benefit Plans - Schedule of Projected Future Defined Benefit Plan Payments (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Projected Benefit Payments | |
2,017 | $ 2,414 |
2,018 | 1,850 |
2,019 | 1,576 |
2,020 | 1,808 |
2,021 | 1,849 |
2022-2026 | $ 8,648 |
Retirement Benefit Plans - Sc67
Retirement Benefit Plans - Schedule of Contributions in U.S. Multi-Employer Retirement Plan for Certain Union Employees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Multiemployer Plans [Line Items] | |||
Amortization Period of Losses Utilized under Pension Fund | 30 years | ||
Fund | |||
Multiemployer Plans [Line Items] | |||
Pension Protection Act Zone Status | [1] | Green | Green |
FIP/RP Status Pending/ Implemented | [1] | No | |
Contributions by the Company | [1] | $ 65 | $ 49 |
Surcharge Imposed | [1] | No | |
Expiration of Collective Bargaining Agreement | [1] | May 31, 2020 | |
[1] | The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund utilized the special 30-year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008. |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Percentage of non-discretionary regular matching contribution of company | 100.00% | |
Percentage of eligible compensation of deferral contribution, minimum | 1.00% | |
Percentage of eligible compensation | 80.00% | |
Percentage of eligible compensation of deferral contribution, maximum | 6.00% | |
Matching contribution expense for defined contribution plan | $ 647 | $ 694 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding share awards earned and issued at greater than the target number of shares | 150.00% | |
Restricted shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 3 years | |
Restricted shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 1 year | |
2007 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate number of shares that may be awarded | 600,000 | |
Exercise period for shares awarded under 2007 Plan | 10 years | |
Stock options may be awarded | 252,000 | |
Stock-based compensation expense (benefit) | $ (474,000) | $ 963,000 |
Income tax benefits resulting from issuance common shares | 0 | $ 0 |
Total unrecognized compensation cost related to performance and restricted shares awarded | $ 761,000 | |
Period of recognized compensation cost | 2 years | |
2007 Plan | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise period for performance shares awarded under 2007 Plan | 3 years | |
2007 Plan | Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common shares earned as percentage of initial target number shares awarded | 150.00% | |
2007 Plan | Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ultimate number of common shares that may be earned | 0 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Activity Related to Performance Shares (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Outstanding at beginning of period, Number of Shares | 98 | 174 |
Shares forfeited, Number of Shares | (93) | (113) |
Outstanding at end of period, Number of Shares | 146 | 98 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at beginning of period, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 28.50 | $ 24.86 |
Shares forfeited, Weighted Average Fair Value at Date of Grant (in dollars per share) | 20.58 | 25.16 |
Outstanding at end of period, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 13.07 | $ 28.50 |
Restricted shares | ||
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Shares awarded, Number of Shares | 59 | 25 |
Shares earned, Number of Shares | (20) | (33) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares awarded, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 9.53 | $ 29.88 |
Shares earned, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 29.59 | $ 24.68 |
Performance shares | ||
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Shares awarded, Number of Shares | 102 | 56 |
Shares earned, Number of Shares | 0 | (11) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares awarded, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 10.40 | $ 28.61 |
Shares earned, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 0 | $ 20.75 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent Expense | $ 1,313 | $ 1,306 |
Commitments and Contingencies72
Commitments and Contingencies - Schedule of Minimum Rental Commitments Under Non-Cancelable Leases (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Capital Leases | |
2,017 | $ 50 |
2,018 | 54 |
2,019 | 46 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total minimum lease payments | 150 |
Plus: Amount representing interest | 3 |
Present value of minimum lease payments | 153 |
Operating Leases | |
2,017 | 1,598 |
2,018 | 1,583 |
2,019 | 1,558 |
2,020 | 1,544 |
2,021 | 1,357 |
Thereafter | 19,118 |
Total minimum lease payments | $ 26,758 |
Commitments and Contingencies73
Commitments and Contingencies - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Machinery and equipment | $ 250 | $ 646 |
Accumulated depreciation | $ (60) | $ (32) |
Business Information - Addition
Business Information - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016USD ($)bargaining_unitsegmentemployee | Sep. 30, 2015USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of reportable segments | segment | 1 | |
Severance Costs | $ 964 | |
Identifiable assets | $ 72,382 | 85,154 |
Number of Employees Represented by Separate Collective Bargaining Units | employee | 287 | |
Number of Collective Bargain Units | bargaining_unit | 3 | |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Identifiable assets | $ 28,274 | 31,141 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Identifiable assets | 44,108 | 54,013 |
Ireland and Italy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Identifiable assets | $ 37,196 | $ 45,235 |
Sales Revenue, Net | Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk based on geographic location, percent | 22.00% | 16.00% |
Sales Revenue, Net | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk based on geographic location, percent | 62.00% | 70.00% |
Sales Revenue, Net | Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk based on geographic location, percent | 4.00% | 4.00% |
Business Information - Long-liv
Business Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 72,382 | $ 85,154 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 44,108 | 54,013 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 28,274 | $ 31,141 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) $ in Thousands | Jul. 01, 2015USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)facility | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Selling, general and administrative expenses | $ 17,359 | $ 19,167 | |||
CBlade S.p.A. Forging & Manufacturing | |||||
Business Acquisition [Line Items] | |||||
Number of operated facilities | facility | 2 | ||||
Purchase price, net of assumed debt | $ 16,719 | ||||
Purchase price adjustment | $ 275 | ||||
Net sales recorded from the date of acquisition | $ 6,000 | ||||
Net operating income from the date of acquisition | $ 209 | ||||
Selling, general and administrative expenses | $ 2,681 |
Business Acquisition - Purchase
Business Acquisition - Purchase Price Allocation of the Estimated Fair Values of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jul. 01, 2015 | Sep. 30, 2014 | |
Assets acquired: | |||||
Goodwill | $ 11,748 | $ 16,480 | $ 7,658 | ||
CBlade S.p.A. Forging & Manufacturing | |||||
Assets acquired: | |||||
Accounts receivable | 6,765 | ||||
Inventory | 6,560 | ||||
Prepaid & other current assets | 1,990 | ||||
Property and equipment | 16,923 | ||||
Intangible assets | 4,434 | ||||
Goodwill | 8,141 | ||||
Assets | 44,813 | ||||
Liabilities assumed: | |||||
Current maturities of long-term debt | 7,920 | ||||
Accounts payable and accrued liabilities | 8,338 | ||||
Long-term debt | 6,437 | ||||
Other long-term liabilities | 5,399 | ||||
Total purchase price | $ 16,719 | ||||
Assets acquired: | |||||
Accounts receivable | $ 25 | ||||
Inventory | 83 | ||||
Prepaid & other current assets | (9) | ||||
Property and equipment | 0 | ||||
Intangible assets | 443 | ||||
Goodwill | (619) | ||||
Assets acquired, purchase price adjustment | (77) | ||||
Liabilities assumed: | |||||
Current maturities of long-term debt | 0 | ||||
Accounts payable and accrued liabilities | 59 | ||||
Long-term debt | 0 | ||||
Other long-term liabilities | 139 | ||||
Total purchase price | $ (275) | ||||
CBlade S.p.A. Forging & Manufacturing | Scenario, Previously Reported | |||||
Assets acquired: | |||||
Accounts receivable | $ 6,740 | ||||
Inventory | 6,477 | ||||
Prepaid & other current assets | 1,999 | ||||
Property and equipment | 16,923 | ||||
Intangible assets | 3,991 | ||||
Goodwill | 8,760 | ||||
Assets | 44,890 | ||||
Liabilities assumed: | |||||
Current maturities of long-term debt | 7,920 | ||||
Accounts payable and accrued liabilities | 8,279 | ||||
Long-term debt | 6,437 | ||||
Other long-term liabilities | 5,260 | ||||
Total purchase price | $ 16,994 |
Business Acquisition - Pro Form
Business Acquisition - Pro Forma Results of Operations of Acquired Subsidiary (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($)$ / shares | |
Pro forma results of operations | |
Net sales | $ | $ 130,401 |
Net loss | $ | $ (2,772) |
Net loss per share (basic) (in dollars per share) | $ / shares | $ (0.51) |
Net loss per share (diluted) (in dollars per share) | $ / shares | $ (0.51) |
Discontinued Operations, Asse79
Discontinued Operations, Assets Held for Sale, and Business Divestiture - Additional Information (Detail) $ in Thousands | Jan. 30, 2015USD ($) |
Discontinued Operations, Held-for-sale or Disposed of by Sale | Repair Group | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash proceeds | $ 1,422 |
Discontinued Operations, Asse80
Discontinued Operations, Assets Held for Sale, and Business Divestiture - Financial Results in Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | $ 0 | $ 709 |
Discontinued Operations, Held-for-sale or Disposed of by Sale | Repair Group | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 0 | |
Income before income tax provision | 1,160 | |
Income tax provision | 451 | |
Income from discontinued operations, net of tax | $ 709 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event - 2016 Amended and Restated Credit and Security Agreement - Line of Credit | Nov. 09, 2016USD ($) |
Subsequent Event [Line Items] | |
Revolving credit facility, maximum borrowing capacity | $ 39,871,000 |
Percentage of stock of non-U.S. subsidiaries pledged | 65.00% |
Debt issuance costs, gross | $ 700,000 |
Revolving Credit Facility | |
Subsequent Event [Line Items] | |
Revolving credit facility, maximum borrowing capacity | 35,000,000 |
Secured Debt | |
Subsequent Event [Line Items] | |
Issued amount of debt | 4,871,000 |
Installment payment | $ 81,000 |
Valuation and Qualifying Acco82
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | $ 1,127 | $ 333 | |
Additions (Reductions) Charged to Expense | 359 | 487 | |
Additions (Reductions) Charged to Other Accounts | (199) | 307 | |
Deductions | [1] | (581) | 0 |
Valuation allowances and reserves, ending balance | 706 | 1,127 | |
Inventory obsolescence reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 3,022 | 1,407 | |
Additions (Reductions) Charged to Expense | 571 | 138 | |
Additions (Reductions) Charged to Other Accounts | 0 | 1,804 | |
Deductions | [2] | (285) | (327) |
Valuation allowances and reserves, ending balance | 3,308 | 3,022 | |
Inventory LIFO reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 8,508 | 7,879 | |
Additions (Reductions) Charged to Expense | (482) | 629 | |
Additions (Reductions) Charged to Other Accounts | 0 | 0 | |
Deductions | 0 | 0 | |
Valuation allowances and reserves, ending balance | 8,026 | 8,508 | |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 1,095 | 822 | |
Additions (Reductions) Charged to Expense | 3,304 | 273 | |
Additions (Reductions) Charged to Other Accounts | 0 | 0 | |
Deductions | 0 | 0 | |
Valuation allowances and reserves, ending balance | 4,399 | 1,095 | |
Workers’ compensation reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 688 | 937 | |
Additions (Reductions) Charged to Expense | 157 | 626 | |
Additions (Reductions) Charged to Other Accounts | 0 | (326) | |
Deductions | [3] | (521) | (549) |
Valuation allowances and reserves, ending balance | $ 324 | $ 688 | |
[1] | Accounts determined to be uncollectible, net of recoveries | ||
[2] | Inventory sold or otherwise disposed | ||
[3] | (c)Payment of workers’ compensation claims |