CMC Materials (CCMP) 10-Q 4 Feb 21 2021 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Dec. 31, 2020	Jan. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	000-30205
Entity Registrant Name	CMC Materials, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-4324765
Entity Address, Address Line One	870 North Commons Drive
Entity Address, City or Town	Aurora
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60504
City Area Code	630
Local Phone Number	375-6631
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	CCMP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,166,737
Entity Central Index Key	0001102934
Current Fiscal Year End Date	--09-30
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 287,863	$ 283,143
Cost of sales	164,959	154,461
Gross profit	122,904	128,682
Operating expenses:
Research, development and technical	12,428	12,811
Selling, general and administrative	55,920	54,439
Asset impairment charges	7,347	0
Total operating expenses	75,695	67,250
Operating income	47,209	61,432
Interest expense	9,608	11,920
Interest income	23	315
Other income (expense), net	1,452	(397)
Income before income taxes	39,076	49,430
Provision for income taxes	7,546	10,881
Net income	$ 31,530	$ 38,549
Basic earnings per share (in dollars per share)	$ 1.08	$ 1.32
Diluted earnings per share (in dollars per share)	$ 1.07	$ 1.30
Weighted average basic shares outstanding (in shares)	29,123,000	29,137,000
Weighted average diluted shares outstanding (in shares)	29,598,000	29,694,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 31,530	$ 38,549
Other comprehensive income, net of tax:
Foreign currency translation adjustment	21,625	15,851
Net unrealized (loss) gain on cash flow hedges	(2,386)	4,259
Other comprehensive income, net of tax	19,239	20,110
Comprehensive income	$ 50,769	$ 58,659

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 278,895	$ 257,354
Accounts receivable, less allowance for doubtful accounts of $643 at December 31, 2020 and $583 at September 30, 2020	139,840	134,023
Inventories	157,355	159,134
Prepaid expenses and other current assets	27,830	26,558
Total current assets	603,920	577,069
Property, plant and equipment, net	365,871	362,067
Goodwill	721,621	718,647
Other intangible assets, net	652,593	670,964
Deferred income taxes	7,984	7,713
Other long-term assets	38,957	40,007
Total assets	2,390,946	2,376,467
Current liabilities:
Accounts payable	49,266	49,254
Current portion of long-term debt	10,650	10,650
Accrued expenses, income taxes payable and other current liabilities	98,874	121,442
Total current liabilities	158,790	181,346
Long-term debt, net of current portion	908,834	910,764
Deferred income taxes	108,175	112,212
Other long-term liabilities	106,419	97,832
Total liabilities	1,282,218	1,302,154
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common Stock Authorized: 200,000 shares, $0.001 par value; Issued: 40,092 shares at December 31, 2020, and 39,914 shares at September 30, 2020	40	40
Capital in excess of par value of common stock	1,030,677	1,019,803
Retained earnings	572,441	553,718
Accumulated other comprehensive income (loss)	5,135	(14,104)
Treasury stock at cost, 10,931 shares at December 31, 2020, and 10,834 shares at September 30, 2020	(499,565)	(485,144)
Total stockholders’ equity	1,108,728	1,074,313
Total liabilities and stockholders’ equity	$ 2,390,946	$ 2,376,467

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 643	$ 583
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, issued (in shares)	40,092,000	39,914,000
Treasury stock (in shares)	10,931,000	10,834,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 31,530	$ 38,549
Adjustments to reconcile Net income to net cash provided by operating activities:
Depreciation and amortization	31,891	31,642
Impairment of assets	7,347	0
Share-based compensation expense	5,851	4,763
Deferred income tax expense (benefit)	(4,342)	1,434
Non-cash foreign exchange (gain)	(867)	(98)
Amortization of debt issuance costs	776	783
Accretion on Asset Retirement Obligations	146	106
(Gain) loss on disposal of assets	(65)	6
Other	(16)	1,803
Changes in operating assets and liabilities:
Accounts receivable	(3,989)	2,204
Inventories	4,023	(10,037)
Prepaid expenses and other assets	2,290	(2,455)
Accounts payable	1,190	(5,587)
Accrued expenses, income taxes payable and other liabilities	(21,727)	(14,989)
Net cash provided by operating activities	54,038	48,124
Cash flows from investing activities:
Additions to property, plant and equipment	(11,939)	(26,013)
Proceeds from the sale of assets	353	543
Net cash used in investing activities	(11,586)	(25,470)
Cash flows from financing activities:
Dividends paid	(13,260)	(12,487)
Repurchases of common stock under Share Repurchase Program	(9,201)	0
Repurchases of common stock withheld for taxes	(5,220)	(2,897)
Proceeds from issuance of stock	5,023	1,448
Repayment of long-term debt	(2,663)	(5,326)
Other financing activities	(43)	(2)
Net cash used in financing activities	(25,364)	(19,264)
Effect of exchange rate changes on cash	4,453	2,443
Increase in cash and cash equivalents	21,541	5,833
Cash and cash equivalents at beginning of period	257,354	188,495
Cash and cash equivalents at end of period	278,895	194,328
Supplemental Cash Flow Information:
Purchases of property, plant and equipment in accrued liabilities and accounts payable at the end of the period	3,645	9,043
Cash paid during the period for lease liabilities	1,997	1,897
Right of use asset obtained in exchange for lease liabilities	$ 454	$ 1,155

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Capital In Excess of Par	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment	Treasury Stock
Beginning balance, common stock (in shares) at Sep. 30, 2019		39,592,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans (in shares)		127,000
Issuance of common stock under stock plans		$ 0
Ending balance, common stock (in shares) at Dec. 31, 2019		39,719,000
Balance at beginning of period at Sep. 30, 2019		$ 40	$ 988,980	$ 461,501		$ (23,238)		$ (446,906)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201802Member
Share-based compensation expense			4,763
Exercise of stock options			1,298
Exercise of stock options			0
Issuance of restricted stock under Deposit Share Program			150
Net income	$ 38,549			38,549
Dividends				(12,351)
Cumulative effect of accounting changes					$ 488		$ (488)
Foreign currency translation adjustment	15,851					15,851
Cash flow hedges	4,259					4,259
Beginning balance, treasure stock (in shares) at Sep. 30, 2019								10,491,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock under Share Repurchase Program (in shares)								0
Repurchases of common stock under Share Repurchase Program								$ 0
Repurchase of commons stock - other (in shares)								23,000
Repurchases of common stock - other								$ (2,897)
Ending balance, treasury stock (in shares) at Dec. 31, 2019								10,514,000
Balance at end of period at Dec. 31, 2019	$ 1,029,999	$ 40	995,191	488,187		(3,616)		$ (449,803)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends per share of common stock (in dollars per share)	$ 0.42
Beginning balance, common stock (in shares) at Sep. 30, 2020		39,914,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock plans (in shares)		178,000
Issuance of common stock under stock plans		$ 0
Ending balance, common stock (in shares) at Dec. 31, 2020		40,092,000
Balance at beginning of period at Sep. 30, 2020	$ 1,074,313	$ 40	1,019,803	553,718		(14,104)		$ (485,144)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense			5,851
Exercise of stock options			1,437
Exercise of stock options			3,371
Issuance of restricted stock under Deposit Share Program			215
Net income	31,530			31,530
Dividends				(12,807)
Foreign currency translation adjustment	21,625					21,625
Cash flow hedges	$ (2,386)					(2,386)
Beginning balance, treasure stock (in shares) at Sep. 30, 2020	10,834,000							10,834,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock under Share Repurchase Program (in shares)								62,000
Repurchases of common stock under Share Repurchase Program								$ (9,201)
Repurchase of commons stock - other (in shares)								35,000
Repurchases of common stock - other								$ (5,220)
Ending balance, treasury stock (in shares) at Dec. 31, 2020	10,931,000							10,931,000
Balance at end of period at Dec. 31, 2020	$ 1,108,728	$ 40	$ 1,030,677	$ 572,441		$ 5,135		$ (499,565)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends per share of common stock (in dollars per share)	$ 0.44

Background and Basis of Present

Background and Basis of Presentation	3 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	BACKGROUND AND BASIS OF PRESENTATION CMC Materials, Inc. (“CMC”, “the Company”, “us”, “we”, or “our”) is a leading global supplier of consumable materials, primarily to semiconductor manufacturers. The Company's products play a critical role in the production of advanced semiconductor devices, helping to enable the manufacture of smaller, faster and more complex devices by its customers. We operate our business within two reportable segments: Electronic Materials and Performance Materials. The Electronic Materials segment consists of our chemical mechanical planarization ("CMP") slurries business, CMP pads business, and electronic chemicals business. The Performance Materials segment consists of our pipeline and industrial materials (“PIM”) business, wood treatment business, and QED Technologies International, Inc. (“QED”) business. The unaudited Consolidated Financial Statements have been prepared by CMC pursuant to the rules of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these unaudited Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of CMC’s financial position, cash flows, and results of operations for the periods presented. The results may not be indicative of the results that may be expected for the fiscal year ending September 30, 2021. This Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and related notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The Consolidated Financial Statements include the accounts of CMC and its subsidiaries. All intercompany transactions and balances between the companies have been eliminated. In the Consolidated Statements of Cash Flows of this Quarterly Report on Form 10-Q, the presentation for Repurchases of common stock under Cash flows from financing activities has been updated for the first quarter of fiscal year 2020 to conform to the current presentation. The amount for that fiscal year that related to common shares withheld for taxes and included in Repurchases of common stock previously, is now presented separately under “Repurchases of common stock withheld for taxes.” In the Consolidated Statements of Cash Flows of this Quarterly Report on Form 10-Q, the presentation for Provision for doubtful accounts has been updated for the first quarter of fiscal year 2020 to conform to the current presentation. The amount for that fiscal year that related to the Provision for doubtful accounts is now presented separately under “Other.” USE OF ESTIMATES The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates under different assumptions or conditions.

Summary Of Significant Accounti

Summary Of Significant Accounting Policies And Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS Significant Accounting Policies and Estimates There have been no material changes made to the Company’s significant accounting policies disclosed in Note 2 of "Notes to the Consolidated Financial Statements" included in Item 8 of Part II of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Recently Adopted Accounting Pronouncements Accounting Standards Update (“ASU”) No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326) and subsequent amendments, requires financial assets measured at amortized cost to be presented at the net amount expected to be collected using an allowance account and provides that credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. The Company adopted these standards effective October 1, 2020 using the modified retrospective approach, which did not impact our results of operations or financial condition. Upon adoption, no adjustment was made to retained earnings or the Allowance for doubtful accounts at October 1, 2020. The Company is exposed to credit losses primarily through trade receivables for the sales of the Company’s products. The Company’s expected credit loss allowance for trade receivable is developed using historical credit loss experience and current and future economic and market conditions. The Company assesses credit risks for these trade receivables and groups them based on similar risk to determine the expected credit loss allowance. Due to the short-term nature of the Company’s trade receivables, the estimate of the expected credit loss allowance is mainly based on historical experience, accounts receivable balances, and the financial condition of customers. ASU No. 2018-13 “Fair Value Measurement” (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, provides specific guidance on various disclosure requirements in Topic 820, including removal, modification and addition to current disclosure requirements. The Company adopted this standard effective October 1, 2020, which did not have a material impact on our financial statement disclosures. ASU No. 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software” (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force), requires a customer in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset or expense related to the service contract. The Company adopted this standard effective October 1, 2020, which did not have a material impact on our results of operations or financial condition. Accounting Pronouncements Issued But Not Yet Adopted ASU No. 2019-12 “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes, was issued to simplify Topic 740 through improving consistency and removing certain exceptions to general principles. ASU 2019-12 will be effective for us beginning October 1, 2021. We are currently evaluating the impact of implementing this standard on our financial statements. ASU No. 2020-04 "Reference Rate Reform” (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” provides optional guidance for accounting for contracts, hedging relationships, and other transactions affected by the reference rate reform, if certain criteria are met. The provisions of this standard are available for election through December 31, 2022. We are currently evaluating the impact of the reference rate reform on our contracts and the resulting impact of adopting this standard on our financial statements.

Revenue From Contracts With Cus

Revenue From Contracts With Customers	3 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue From Contracts With Customers	REVENUE FROM CONTRACTS WITH CUSTOMERS The Company disaggregates revenue by product area and segment as it best depicts the nature and amount of the Company’s revenue. See Note 15 of this Report on Form 10-Q for more information. The following table provides information about contract liability balances: Consolidated Balance Sheet Location December 31, 2020 September 30, 2020 Contract liabilities (current) Accrued expenses, income taxes payable and other current liabilities $ 8,150 $ 8,501 Contract liabilities (noncurrent) Other long-term liabilities 1,476 1,288 The amount of revenue recognized during the three months ended December 31, 2020 and 2019 that was included in the opening current contract liability balances in our Performance Materials segment was $2,453 and $2,258, respectively. The amount of revenue recognized during the three months ended December 31, 2020 and 2019 that was included in our opening contract liability balances in our Electronic Materials segment was not material. The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are partially or wholly unsatisfied as of the end of the reporting period for contracts with an original duration of greater than one year and (2) when the Company expects to recognize this revenue. Less Than 1 Year 1-3 Years Total Revenue expected to be recognized on contract liability amounts as of December 31, 2020 $ 1,016 $ 1,476 $ 2,492

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company is required to record certain assets and liabilities at fair value. The valuation methods used for determining the fair value of these financial instruments by hierarchy are as follows: Level 1 Cash and cash equivalents consist of various bank accounts used to support our operations and investments in institutional money-market funds that are traded in active markets. Other long-term investments represent the fair value of investments under our supplemental employee retirement plan ("SERP"). The fair value of the investments is determined through quoted market prices within actively traded markets. Level 2 Derivative financial instruments include foreign exchange contracts and an interest rate swap contract. The fair value of our derivative instruments is estimated using standard valuation models and market-based observable inputs over the contractual term, including one-month London Inter-bank Offered Rate ("LIBOR") based yield curves for the interest rate swap, and forward rates and/or the Overnight Index Swap curve for forward foreign exchange contracts, among others. Level 3 No level 3 financial instruments The following table presents financial instruments, other than debt, that we measured at fair value on a recurring basis. See Note 9 of this Report on Form 10-Q for a discussion of our debt. In instances where the inputs used to measure the fair value of an asset fall into more than one level of the hierarchy, we have classified them based on the lowest level input that is significant to the determination of the fair value. December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Assets: Cash and cash equivalents $ 278,895 $ — $ — $ 278,895 Other long-term investments 1,282 — — 1,282 Derivative financial instruments — 289 — 289 Liabilities: Derivative financial instruments — 6,734 — 6,734 September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Assets: Cash and cash equivalents $ 257,354 $ — $ — $ 257,354 Other long-term investments 1,214 — — 1,214 Derivative financial instruments — 27 — 27 Liabilities: Derivative financial instruments — 38,157 — 38,157

Inventories

Inventories	3 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consisted of the following: December 31, 2020 September 30, 2020 Raw materials $ 66,595 $ 66,591 Work in process 14,660 15,148 Finished goods 76,100 77,395 Total $ 157,355 $ 159,134

Impairment - Wood Treatment

Impairment - Wood Treatment	3 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Impairment - Wood Treatment	IMPAIRMENT - WOOD TREATMENT As a result of our previously announced planned closure of the Company's wood treatment business’ facilities by approximately the end of calendar year 2021 and the finite remaining cash flow through the closure date, the company concluded that it is more likely than not that the fair value of the wood treatment reporting unit is below its carrying value, requiring the wood treatment asset group and reporting unit to be tested for impairment. Impairment of Long-Lived Assets The Company tested the recoverability of its long-lived assets and determined the carrying amount of the assets exceeded the sum of the expected undiscounted future cash flows, and as a result, we compared the fair value of the wood treatment asset group, which was determined based on a discounted cash flow model, to its carrying value. We recognized a non-cash pre-tax impairment charge of $3,266 for the quarter ended December 31, 2020. There is no remaining carrying value of definite-lived intangible assets or Property, plant and equipment in the wood treatment asset group after this impairment. As a result of the previously announced planned facility closures by approximately the end of calendar 2021, the Company adjusted the remaining useful lives such that they do not extend beyond such date. Key assumptions in testing the assets for recoverability and development of the fair value of the asset group included projected future revenue and gross margin. As the inputs for testing recoverability, including estimates of future revenue and gross margin, are not generally observable in active markets, the Company considers such measurements to be Level 3 measurements in the fair value hierarchy. The duration of the future revenue and gross margin estimates are limited to the period through the closure date. Impairment of Goodwill The fair value of the wood treatment reporting unit, which was determined based on a discounted cash flow model, did not exceed the carrying value of the reporting unit. Key assumptions in our goodwill impairment test included projected future revenue and gross margin. As a result, the Company recorded a $4,081 non-cash, pre-tax impairment charge during the first quarter ended December 31, 2020. As the Company approaches the closure date of the facilities and there are finite estimated future cash flows, the carrying value of the wood treatment reporting unit will not be recoverable, resulting in future impairments of goodwill. The remaining carrying value of the wood treatment reporting unit as of December 31, 2020 includes $30.9 million of goodwill, which will be periodically impaired through the closure date, resulting in no fair value ascribed to the wood treatment business by the date of closure. The amount of the periodic impairments will vary depending on the timing of the remaining future cash flows of the business and carrying value of the reporting unit at each reporting period. Presentation of Impairment Charge The long-lived assets and goodwill impairment charges, both included in the Performance Materials segment, are presented within Asset impairment charges and the related tax benefit of $606 is included in the Provision for income taxes for the quarter ended December 31, 2020 in the Consolidated Statements of Income. The impairment charge related to goodwill was not tax deductible. The impairment charge was allocated as follows: Three Months Ended Property, plant, and equipment, net $ 91 Goodwill 4,081 Other intangible assets – Product technology 583 Other intangible assets – Acquired patents and licenses 173 Other intangible assets – Customer relationships, distribution rights, and other 2,419 Total Asset impairment charges $ 7,347 Goodwill activity for each of the Company’s reportable segments for the three months ended December 31, 2020: Electronic Materials Performance Materials Total Balance at September 30, 2020 $ 360,425 $ 358,222 $ 718,647 Foreign currency translation impact 5,602 1,453 7,055 Impairment — (4,081) (4,081) Balance at December 31, 2020 $ 366,027 $ 355,594 $ 721,621

Other Long-Term Assets

Other Long-Term Assets	3 Months Ended
	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Long-Term Assets	OTHER LONG-TERM ASSETS Other long-term assets consisted of the following: December 31, 2020 September 30, 2020 Right of use asset $ 30,260 $ 30,999 Vendor contract assets 2,481 2,889 SERP investment 1,282 1,214 Prepaid unamortized debt issuance cost - revolver 494 537 Other long-term assets 4,440 4,368 Total $ 38,957 $ 40,007

Accrued Expenses, Income Taxes

Accrued Expenses, Income Taxes Payable And Other Current Liabilities	3 Months Ended
	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued Expenses, Income Taxes Payable And Other Current Liabilities	ACCRUED EXPENSES, INCOME TAXES PAYABLE AND OTHER CURRENT LIABILITIES Accrued expenses, income taxes payable and other current liabilities consisted of the following: December 31, 2020 September 30, 2020 Accrued compensation $ 27,078 $ 46,465 Income taxes payable 15,909 16,216 Dividends payable 13,216 13,669 Contract liabilities (current) 8,150 8,501 Current portion of operating lease liability 6,602 6,513 Current portion of terminated swap liability (See Note 10) 5,855 — Taxes, other than income taxes 5,517 5,044 Goods and services received, not yet invoiced 4,479 3,957 Interest rate swap liability (See Note 10) 2,869 11,992 Accrued interest 114 29 Other 9,085 9,056 Total $ 98,874 $ 121,442

Debt

Debt	3 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Debt	DEBT Total debt consisted of the following: December 31, 2020 September 30, 2020 Senior Secured Term Loan Facility, one-month LIBOR plus 2.00% $ 933,700 $ 936,363 Less: Unamortized debt issuance costs (14,216) (14,949) Total debt 919,484 921,414 Less: Current maturities and short-term debt (10,650) (10,650) Total long-term debt excluding current maturities $ 908,834 $ 910,764 The Company’s credit agreement (“Amended Credit Agreement”) includes a Senior Secured Term Loan Facility ("Term Loan Facility") and a revolving credit facility (“Revolving Credit Facility”). As of December 31, 2020, there was no borrowings outstanding under the Revolving Credit Facility and our available credit was $200,000, which includes our letter of credit sub-facility. At December 31, 2020 and September 30, 2020, the fair value of the Term Loan Facility, using level 2 inputs, approximated its carrying value as the loan bears a floating market rate of interest. As of December 31, 2020, scheduled principal repayments of the Term Loan Facility were as follows: Fiscal Year Principal Repayments Remainder of 2021 $ 7,987 2022 10,650 2023 10,650 2024 10,650 2025 10,650 Greater than 5 years 883,113 Total $ 933,700

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	DERIVATIVE FINANCIAL INSTRUMENTS We are exposed to various market risks, including risks associated with interest rates and foreign currency exchange rates. We enter into certain derivative transactions to mitigate the volatility associated with these exposures. Cash Flow Hedges - Interest Rate Swap Contract During the quarter, the Company entered into a new interest rate swap agreement to extend the duration of its existing swap arrangement and to take advantage of lower interest rates. The existing interest rate swap, which was in a loss position of $35.3 million, was terminated, and the hedging relationship was de-designated. The liability for the terminated interest rate swap is not measured at fair value. The current and long-term portion of the liability for the terminated swap are recorded in Accrued expenses, income taxes payable and other current liabilities and Other long-term liabilities, respectively, on the Consolidated Balance Sheet and will be paid over the remaining term of the new swap. The loss amount for the terminated swap is included in Accumulated other comprehensive loss and will be amortized on a straight-lined basis into interest expense through January 31, 2024, the remaining term of the original swap. The new interest rate swap is a floating-to-fixed interest rate swap contract to hedge the variability in LIBOR-based interest payments on a portion of our outstanding variable rate debt. The notional amount is scheduled to decrease quarterly and will expire on January 29, 2027. The new interest rate swap was designated as a cash flow hedge based on certain quantitative and qualitative assessments and we have determined that the hedge is highly effective and qualifies for hedge accounting. Foreign Currency Contracts Not Designated as Hedges We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures. These foreign exchange contracts do not qualify for hedge accounting. The notional amount of our derivative instruments are as follows: December 31, 2020 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract - new agreement $ 560,003 $ — Interest rate swap contract - terminated agreement — 571,000 Derivatives not designated as hedging instruments Foreign exchange contracts to purchase U.S. dollars $ 5,418 $ 8,054 Foreign exchange contracts to sell U.S. dollars 27,725 25,105 The fair value of our derivative instruments included in the Consolidated Balance Sheets was as follows: Derivative Assets Derivative Liabilities Consolidated Balance Sheet Location December 31, 2020 September 30, 2020 December 31, 2020 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract Accrued expenses, income taxes payable and other current liabilities $ — $ — $ 2,869 $ 11,992 Other long-term liabilities — — 3,813 26,000 Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid expenses and other current assets $ 289 $ 27 $ — $ — Accrued expenses, income taxes payable and other current liabilities — — 52 165 The following table summarizes the effect of our derivative instruments on our Consolidated Statements of Income: Gain (Loss) Recognized in Statement of Income Three Months Ended December 31, Consolidated Statement of Income Location 2020 2019 Derivatives designated as hedging instruments Interest rate swap contract Interest expense $ (2,445) $ (1,170) Terminated interest rate swap contract Interest expense (929) — Derivatives not designated as hedging instruments Foreign exchange contracts Other income (expense), net $ 122 $ 6 The following table summarizes the effect of our derivative instruments on Accumulated other comprehensive income: Amount of Gain (Loss) Recognized in Other Comprehensive Income Three Months Ended December 31, 2020 2019 Derivatives designated as hedging instruments Interest rate swap contract $ (6,449) $ 4,314 We expect approximately $14,013 to be reclassified from Accumulated other comprehensive income (loss) into Interest expense during the next twelve months related to our interest rate swap based on projected rates of the LIBOR forward curve as of December 31, 2020. This amount includes the amortization of the loss associated with the terminated swap arrangement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES In 2019, a fire occurred at the warehouse of the wood treatment facility of our subsidiary KMG-Bernuth, Inc (“KMG-Bernuth”), in Tuscaloosa, Alabama, which processes pentachlorophenol (“penta”) for sale to customers in the U.S. and Canada. The warehouse fire, which we believe originated from non-hazardous waste materials temporarily stored in the warehouse for recycling purposes, caused no injuries. KMG-Bernuth commenced and completed cleanup with oversight from certain local, state and federal authorities. We recorded expense for the fire waste cleanup and disposal of affected inventory in Cost of sales. No expense was recorded during the three months ended December 31, 2020. Although we believe we have completed cleanup efforts related to the fire incident, there are potential other costs that cannot be reasonably estimated as of this time related to the fire incident due to the nature of federally-regulated penta-related requirements. In addition, we are working with our insurance carriers on possible recovery of losses and costs related to the fire incident, and have to date received recovery in the amount of $468. At this point we cannot reasonably estimate whether we will receive any additional insurance recoveries, or if so, the amount of such recoveries. Separately, in connection with the acquisition of KMG Chemicals, Inc. (“Acquisition”), through KMG-Bernuth, we assumed a contingency related to the Star Lake Canal Superfund Site near Beaumont, Texas (“Star Lake”). In 2014, prior to the Acquisition, the United States Environmental Protection Agency (“EPA”) had notified KMG-Bernuth, that the EPA considered it to be a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, in connection with Star Lake. The EPA has estimated that related remediation will cost approximately $22.0 million. KMG-Bernuth and seven other cooperating parties entered into an agreement with the EPA in September 2016 to complete a remedial design of the remediation actions for the site. Although KMG-Bernuth has not conceded liability with respect to Star Lake, a reserve in connection with the remediation was established, and as of December 31, 2020, the reserve remaining was $553. The remediation work will be performed under a separate future agreement. For more information regarding these plans, refer to Note 20 of “Notes to the Consolidated Financial Statements” included in Item 8 of Part II of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. PURCHASE OBLIGATIONS

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The table below summarizes the components of Accumulated other comprehensive income (loss), net of income tax expense (benefit): Three Months Ended December 31, 2020 2019 Beginning Balance $ (14,104) $ (23,238) Foreign currency translation adjustment 21,543 15,819 Income tax benefit 82 32 Foreign currency translation adjustment, net of tax 21,625 15,851 Unrealized gain loss on cash flow hedges: Change in fair value (6,449) 4,314 Reclassification adjustment into earnings 3,374 1,170 Income tax benefit (expense) 689 (1,225) Unrealized (loss) gain on cash flow hedges, net of tax (2,386) 4,259 Effect of the adoption of the stranded tax effect accounting standard — (497) Income tax benefit — 9 Effect of the adoption of the stranded tax effect accounting standard, net of tax — (488) Net Change 19,239 19,622 Ending Balance $ 5,135 $ (3,616) During the first quarter of fiscal 2020, the Company adopted ASU No. 2018-02 regarding the reclassification of stranded tax effects resulting from the change in the U.S. federal corporate income tax rate under the Tax Cuts and Jobs Act (the “Tax Act”) and as a result, we reclassified $488 of stranded tax effects from Accumulated other comprehensive income to Retained earnings.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES In December 2020, the U.S. enacted the Consolidated Appropriations Act (“CAA”), which extends certain provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and provides new COVID-19 pandemic (“Pandemic”) relief provisions. As with the CARES Act, the CAA did not have a material impact on our Provision for income taxes for the three months ended December 31, 2020. The Company’s effective income tax rate was 19.3% and 22.0% for the three months ended December 31, 2020 and 2019, respectively. The decrease in our effective tax rate for the three months ended December 31, 2020 compared to the prior year is primarily attributable to a higher tax benefit related to share-based compensation and foreign derived intangible income, partially offset by unfavorable impact from impairment of our wood treatment reporting unit.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE Basic and diluted earnings per share were calculated as follows: Three Months Ended December 31, 2020 2019 Numerator: Net income available to common shares $ 31,530 $ 38,549 Denominator: Weighted average common shares 29,123 29,137 Weighted average effect of dilutive securities 475 557 Diluted weighted average common shares 29,598 29,694 Earnings per share: Basic $ 1.08 $ 1.32 Diluted $ 1.07 $ 1.30 Shares excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive were as follows: Three Months Ended December 31, 2020 2019 Outstanding stock options 15 36

Segment Reporting

Segment Reporting	3 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Segment Reporting	SEGMENT REPORTING We identify our segments based on our management structure and the financial information used by our chief executive officer, who is our chief operating decision maker, to assess segment performance and allocate resources among our operating units. We have the following two reportable segments: Electronic Materials Electronic Materials includes products and solutions for the semiconductor industry and consists of our CMP slurries business, CMP pads business, and electronic chemicals business. Performance Materials Performance Materials consists of our PIM business, wood treatment business, and QED business. Our chief operating decision maker evaluates segment performance based upon revenue and segment adjusted EBITDA. Segment adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, adjusted for certain items that affect comparability from period to period. These adjustments include Acquisition and integration-related expenses, certain costs related to the KMG-Bernuth warehouse fire, net of insurance recovery, impairment and net restructuring charges related to the wood treatment business, and costs related to the Pandemic, net of grants received. We exclude these items from earnings when presenting our adjusted EBITDA measure because we believe they are not indicative of a segment's regular, ongoing operating performance. Adjusted EBITDA is also the basis of a performance metric for our fiscal 2021 Short-Term Incentive Program ("STIP"). In addition, our chief operating decision maker does not use assets by segment to evaluate performance or allocate resources, and therefore, we do not disclose assets by segment. The two segments operate independently and serve different markets and customers, as a result there are no sales between segments. Revenue from external customers by segment are as follows: Three Months Ended December 31, 2020 2019 Segment Revenue: Electronic Materials: CMP Slurries $ 134,721 $ 122,326 Electronic Chemicals 80,006 77,582 CMP Pads 22,071 20,813 Total Electronic Materials 236,798 220,721 Performance Materials: PIM 25,907 45,141 Wood Treatment 17,323 10,674 QED 7,835 6,607 Total Performance Materials 51,065 62,422 Total $ 287,863 $ 283,143 Capital expenditures by segment are as follows: Three Months Ended December 31, 2020 2019 Capital Expenditures: Electronic Materials $ 5,434 $ 8,485 Performance Materials 1,310 16,369 Corporate 3,475 1,512 Total $ 10,219 $ 26,366 Adjusted EBITDA by segment is as follows: Three Months Ended December 31, 2020 2019 Net income $ 31,530 $ 38,549 Interest expense 9,608 11,920 Interest income (23) (315) Income taxes 7,546 10,881 Depreciation and amortization 31,891 31,642 EBITDA 80,552 92,677 Charges related to asset impairment of wood treatment 7,347 — Acquisition and integration-related expenses 2,369 2,204 Costs related to the Pandemic, net of grants received 1,262 — Net costs related to restructuring of the wood treatment business 26 — Costs related to KMG-Bernuth warehouse fire, net of insurance recovery — 392 Consolidated adjusted EBITDA $ 91,556 $ 95,273 Segment adjusted EBITDA: Electronic Materials $ 80,756 $ 81,198 Performance Materials 22,975 27,478 Unallocated corporate expenses (12,175) (13,403) Consolidated Adjusted EBITDA $ 91,556 $ 95,273 The unallocated portions of corporate functions, including finance, legal, human resources, information technology, and corporate development, are not directly attributable to a reportable segment.

Summary Of Significant Accoun_2

Summary Of Significant Accounting Policies And Recent Accounting Pronouncements (Policies)	3 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Use of Estimates	USE OF ESTIMATES The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates under different assumptions or conditions.
Significant Accounting Policies and Estimates, Recently Adopted Accounting Pronouncements and Accounting Pronouncements Issues But Not Yet Adopted	Significant Accounting Policies and Estimates There have been no material changes made to the Company’s significant accounting policies disclosed in Note 2 of "Notes to the Consolidated Financial Statements" included in Item 8 of Part II of our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Recently Adopted Accounting Pronouncements Accounting Standards Update (“ASU”) No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326) and subsequent amendments, requires financial assets measured at amortized cost to be presented at the net amount expected to be collected using an allowance account and provides that credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. The Company adopted these standards effective October 1, 2020 using the modified retrospective approach, which did not impact our results of operations or financial condition. Upon adoption, no adjustment was made to retained earnings or the Allowance for doubtful accounts at October 1, 2020. The Company is exposed to credit losses primarily through trade receivables for the sales of the Company’s products. The Company’s expected credit loss allowance for trade receivable is developed using historical credit loss experience and current and future economic and market conditions. The Company assesses credit risks for these trade receivables and groups them based on similar risk to determine the expected credit loss allowance. Due to the short-term nature of the Company’s trade receivables, the estimate of the expected credit loss allowance is mainly based on historical experience, accounts receivable balances, and the financial condition of customers. ASU No. 2018-13 “Fair Value Measurement” (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, provides specific guidance on various disclosure requirements in Topic 820, including removal, modification and addition to current disclosure requirements. The Company adopted this standard effective October 1, 2020, which did not have a material impact on our financial statement disclosures. ASU No. 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software” (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force), requires a customer in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset or expense related to the service contract. The Company adopted this standard effective October 1, 2020, which did not have a material impact on our results of operations or financial condition. Accounting Pronouncements Issued But Not Yet Adopted ASU No. 2019-12 “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes, was issued to simplify Topic 740 through improving consistency and removing certain exceptions to general principles. ASU 2019-12 will be effective for us beginning October 1, 2021. We are currently evaluating the impact of implementing this standard on our financial statements. ASU No. 2020-04 "Reference Rate Reform” (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” provides optional guidance for accounting for contracts, hedging relationships, and other transactions affected by the reference rate reform, if certain criteria are met. The provisions of this standard are available for election through December 31, 2022. We are currently evaluating the impact of the reference rate reform on our contracts and the resulting impact of adopting this standard on our financial statements.

Revenue From Contracts With C_2

Revenue From Contracts With Customers (Tables)	3 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Reconciliation of Contract Liability Balances	The following table provides information about contract liability balances: Consolidated Balance Sheet Location December 31, 2020 September 30, 2020 Contract liabilities (current) Accrued expenses, income taxes payable and other current liabilities $ 8,150 $ 8,501 Contract liabilities (noncurrent) Other long-term liabilities 1,476 1,288
Transaction Price Allocated to Remaining Performance Obligation	The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are partially or wholly unsatisfied as of the end of the reporting period for contracts with an original duration of greater than one year and (2) when the Company expects to recognize this revenue. Less Than 1 Year 1-3 Years Total Revenue expected to be recognized on contract liability amounts as of December 31, 2020 $ 1,016 $ 1,476 $ 2,492

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	The following table presents financial instruments, other than debt, that we measured at fair value on a recurring basis. See Note 9 of this Report on Form 10-Q for a discussion of our debt. In instances where the inputs used to measure the fair value of an asset fall into more than one level of the hierarchy, we have classified them based on the lowest level input that is significant to the determination of the fair value. December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Assets: Cash and cash equivalents $ 278,895 $ — $ — $ 278,895 Other long-term investments 1,282 — — 1,282 Derivative financial instruments — 289 — 289 Liabilities: Derivative financial instruments — 6,734 — 6,734 September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Assets: Cash and cash equivalents $ 257,354 $ — $ — $ 257,354 Other long-term investments 1,214 — — 1,214 Derivative financial instruments — 27 — 27 Liabilities: Derivative financial instruments — 38,157 — 38,157

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: December 31, 2020 September 30, 2020 Raw materials $ 66,595 $ 66,591 Work in process 14,660 15,148 Finished goods 76,100 77,395 Total $ 157,355 $ 159,134

Impairment - Wood Treatment (Ta

Impairment - Wood Treatment (Tables)	3 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Long-lived Asset Impairment	The impairment charge was allocated as follows: Three Months Ended Property, plant, and equipment, net $ 91 Goodwill 4,081 Other intangible assets – Product technology 583 Other intangible assets – Acquired patents and licenses 173 Other intangible assets – Customer relationships, distribution rights, and other 2,419 Total Asset impairment charges $ 7,347
Goodwill Activity	Goodwill activity for each of the Company’s reportable segments for the three months ended December 31, 2020: Electronic Materials Performance Materials Total Balance at September 30, 2020 $ 360,425 $ 358,222 $ 718,647 Foreign currency translation impact 5,602 1,453 7,055 Impairment — (4,081) (4,081) Balance at December 31, 2020 $ 366,027 $ 355,594 $ 721,621

Other Long-Term Assets (Tables)

Other Long-Term Assets (Tables)	3 Months Ended
	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Long-term Assets	Other long-term assets consisted of the following: December 31, 2020 September 30, 2020 Right of use asset $ 30,260 $ 30,999 Vendor contract assets 2,481 2,889 SERP investment 1,282 1,214 Prepaid unamortized debt issuance cost - revolver 494 537 Other long-term assets 4,440 4,368 Total $ 38,957 $ 40,007

Accrued Expenses, Income Taxe_2

Accrued Expenses, Income Taxes Payable And Other Current Liabilities (Tables)	3 Months Ended
	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued Expenses, Income Taxes Payable and Other Current Liabilities	Accrued expenses, income taxes payable and other current liabilities consisted of the following: December 31, 2020 September 30, 2020 Accrued compensation $ 27,078 $ 46,465 Income taxes payable 15,909 16,216 Dividends payable 13,216 13,669 Contract liabilities (current) 8,150 8,501 Current portion of operating lease liability 6,602 6,513 Current portion of terminated swap liability (See Note 10) 5,855 — Taxes, other than income taxes 5,517 5,044 Goods and services received, not yet invoiced 4,479 3,957 Interest rate swap liability (See Note 10) 2,869 11,992 Accrued interest 114 29 Other 9,085 9,056 Total $ 98,874 $ 121,442

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Schedule of Total Debt	Total debt consisted of the following: December 31, 2020 September 30, 2020 Senior Secured Term Loan Facility, one-month LIBOR plus 2.00% $ 933,700 $ 936,363 Less: Unamortized debt issuance costs (14,216) (14,949) Total debt 919,484 921,414 Less: Current maturities and short-term debt (10,650) (10,650) Total long-term debt excluding current maturities $ 908,834 $ 910,764
Schedule of Principal Repayments of Debt	As of December 31, 2020, scheduled principal repayments of the Term Loan Facility were as follows: Fiscal Year Principal Repayments Remainder of 2021 $ 7,987 2022 10,650 2023 10,650 2024 10,650 2025 10,650 Greater than 5 years 883,113 Total $ 933,700

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The notional amount of our derivative instruments are as follows: December 31, 2020 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract - new agreement $ 560,003 $ — Interest rate swap contract - terminated agreement — 571,000 Derivatives not designated as hedging instruments Foreign exchange contracts to purchase U.S. dollars $ 5,418 $ 8,054 Foreign exchange contracts to sell U.S. dollars 27,725 25,105
Schedule of Derivative Instruments In The Consolidated Balance Sheets	The fair value of our derivative instruments included in the Consolidated Balance Sheets was as follows: Derivative Assets Derivative Liabilities Consolidated Balance Sheet Location December 31, 2020 September 30, 2020 December 31, 2020 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract Accrued expenses, income taxes payable and other current liabilities $ — $ — $ 2,869 $ 11,992 Other long-term liabilities — — 3,813 26,000 Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid expenses and other current assets $ 289 $ 27 $ — $ — Accrued expenses, income taxes payable and other current liabilities — — 52 165
Schedule of Derivative Instruments on Consolidated Statements of Income	The following table summarizes the effect of our derivative instruments on our Consolidated Statements of Income: Gain (Loss) Recognized in Statement of Income Three Months Ended December 31, Consolidated Statement of Income Location 2020 2019 Derivatives designated as hedging instruments Interest rate swap contract Interest expense $ (2,445) $ (1,170) Terminated interest rate swap contract Interest expense (929) — Derivatives not designated as hedging instruments Foreign exchange contracts Other income (expense), net $ 122 $ 6 The following table summarizes the effect of our derivative instruments on Accumulated other comprehensive income: Amount of Gain (Loss) Recognized in Other Comprehensive Income Three Months Ended December 31, 2020 2019 Derivatives designated as hedging instruments Interest rate swap contract $ (6,449) $ 4,314

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	The table below summarizes the components of Accumulated other comprehensive income (loss), net of income tax expense (benefit): Three Months Ended December 31, 2020 2019 Beginning Balance $ (14,104) $ (23,238) Foreign currency translation adjustment 21,543 15,819 Income tax benefit 82 32 Foreign currency translation adjustment, net of tax 21,625 15,851 Unrealized gain loss on cash flow hedges: Change in fair value (6,449) 4,314 Reclassification adjustment into earnings 3,374 1,170 Income tax benefit (expense) 689 (1,225) Unrealized (loss) gain on cash flow hedges, net of tax (2,386) 4,259 Effect of the adoption of the stranded tax effect accounting standard — (497) Income tax benefit — 9 Effect of the adoption of the stranded tax effect accounting standard, net of tax — (488) Net Change 19,239 19,622 Ending Balance $ 5,135 $ (3,616)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	Basic and diluted earnings per share were calculated as follows: Three Months Ended December 31, 2020 2019 Numerator: Net income available to common shares $ 31,530 $ 38,549 Denominator: Weighted average common shares 29,123 29,137 Weighted average effect of dilutive securities 475 557 Diluted weighted average common shares 29,598 29,694 Earnings per share: Basic $ 1.08 $ 1.32 Diluted $ 1.07 $ 1.30
Schedule of Shares Exclude From Calculation of Diluted Earnings Per Share	Shares excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive were as follows: Three Months Ended December 31, 2020 2019 Outstanding stock options 15 36

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Schedule of Segment Revenue	Revenue from external customers by segment are as follows: Three Months Ended December 31, 2020 2019 Segment Revenue: Electronic Materials: CMP Slurries $ 134,721 $ 122,326 Electronic Chemicals 80,006 77,582 CMP Pads 22,071 20,813 Total Electronic Materials 236,798 220,721 Performance Materials: PIM 25,907 45,141 Wood Treatment 17,323 10,674 QED 7,835 6,607 Total Performance Materials 51,065 62,422 Total $ 287,863 $ 283,143
Schedule of Capital Expenditures by Segment	Capital expenditures by segment are as follows: Three Months Ended December 31, 2020 2019 Capital Expenditures: Electronic Materials $ 5,434 $ 8,485 Performance Materials 1,310 16,369 Corporate 3,475 1,512 Total $ 10,219 $ 26,366
Schedule of Segment Adjusted EBITDA	Adjusted EBITDA by segment is as follows: Three Months Ended December 31, 2020 2019 Net income $ 31,530 $ 38,549 Interest expense 9,608 11,920 Interest income (23) (315) Income taxes 7,546 10,881 Depreciation and amortization 31,891 31,642 EBITDA 80,552 92,677 Charges related to asset impairment of wood treatment 7,347 — Acquisition and integration-related expenses 2,369 2,204 Costs related to the Pandemic, net of grants received 1,262 — Net costs related to restructuring of the wood treatment business 26 — Costs related to KMG-Bernuth warehouse fire, net of insurance recovery — 392 Consolidated adjusted EBITDA $ 91,556 $ 95,273 Segment adjusted EBITDA: Electronic Materials $ 80,756 $ 81,198 Performance Materials 22,975 27,478 Unallocated corporate expenses (12,175) (13,403) Consolidated Adjusted EBITDA $ 91,556 $ 95,273

Background and Basis of Prese_2

Background and Basis of Presentation (Details)	3 Months Ended
	Dec. 31, 2020segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Revenue From Contracts With C_3

Revenue From Contracts With Customers - Reconciliation of Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2020
Contract with Customer, Liability [Abstract]
Contract liabilities (current)	$ 8,150		$ 8,501
Contract liabilities (noncurrent)	1,476		$ 1,288
Change in Contract with Customer, Liability [Abstract]
Revenue recognized in contract liability	$ 2,453	$ 2,258

Revenue From Contracts With C_4

Revenue From Contracts With Customers - Transaction Price Allocated to Remaining Performance Obligations (Details) $ in Thousands	Dec. 31, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized on contract liability amounts as of end of period	$ 2,492
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized on contract liability amounts as of end of period	$ 1,016
Revenue, Performance Obligation [Abstract]
Revenue expected to be recognized on contract liability, satisfaction period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized on contract liability amounts as of end of period	$ 1,476
Revenue, Performance Obligation [Abstract]
Revenue expected to be recognized on contract liability, satisfaction period	2 years

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - Recurring - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Assets:
Cash and cash equivalents	$ 278,895	$ 257,354
Other long-term investments	1,282	1,214
Derivative financial instruments	289	27
Liabilities:
Derivative financial instruments	6,734	38,157
Level 1
Assets:
Cash and cash equivalents	278,895	257,354
Other long-term investments	1,282	1,214
Derivative financial instruments	0	0
Liabilities:
Derivative financial instruments	0	0
Level 2
Assets:
Cash and cash equivalents	0	0
Other long-term investments	0	0
Derivative financial instruments	289	27
Liabilities:
Derivative financial instruments	6,734	38,157
Level 3
Assets:
Cash and cash equivalents	0	0
Other long-term investments	0	0
Derivative financial instruments	0	0
Liabilities:
Derivative financial instruments	$ 0	$ 0

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Inventory, Net, Items Net of Reserve Alternative [Abstract]
Raw materials	$ 66,595	$ 66,591
Work in process	14,660	15,148
Finished goods	76,100	77,395
Total	$ 157,355	$ 159,134

Impairment - Wood Treatment - N

Impairment - Wood Treatment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2020
Impaired Long-Lived Assets Held and Used [Line Items]
Goodwill impairment loss	$ 4,081
Goodwill	721,621		$ 718,647
Recognized tax benefit	(7,546)	$ (10,881)
Wood Treatment
Impaired Long-Lived Assets Held and Used [Line Items]
Long-lived asset impairment	3,266
Intangible assets	0
Goodwill impairment loss	4,081
Goodwill	30,900
Recognized tax benefit	$ 606

Impairment - Wood Treatment - L

Impairment - Wood Treatment - Long-lived Asset Impairment (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of property, plant and equipment	$ 7,347	$ 0
Goodwill	4,081
Total Asset impairment charges	7,347	0
Wood Treatment
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of property, plant and equipment	91
Goodwill	4,081
Total Asset impairment charges	7,347	$ 0
Wood Treatment | Product technology
Impaired Long-Lived Assets Held and Used [Line Items]
Other intangible assets	583
Wood Treatment | Acquired patents and licenses
Impaired Long-Lived Assets Held and Used [Line Items]
Other intangible assets	173
Wood Treatment | Customer relationships, distribution rights, and other
Impaired Long-Lived Assets Held and Used [Line Items]
Other intangible assets	$ 2,419

Impairment - Wood Treatment - G

Impairment - Wood Treatment - Goodwill Activity (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 718,647
Foreign currency translation impact	7,055
Impairment	(4,081)
Goodwill, ending balance	721,621
Electronic Materials
Goodwill [Roll Forward]
Goodwill, beginning balance	360,425
Foreign currency translation impact	5,602
Impairment	0
Goodwill, ending balance	366,027
Performance Materials
Goodwill [Roll Forward]
Goodwill, beginning balance	358,222
Foreign currency translation impact	1,453
Impairment	(4,081)
Goodwill, ending balance	$ 355,594

Other Long-Term Assets (Details

Other Long-Term Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Other long-term assets [Abstract]
Right of use asset	$ 30,260	$ 30,999
Vendor contract assets	2,481	2,889
SERP investment	1,282	1,214
Prepaid unamortized debt issuance cost - revolver	494	537
Other long-term assets	4,440	4,368
Total	$ 38,957	$ 40,007

Accrued Expenses, Income Taxe_3

Accrued Expenses, Income Taxes Payable And Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Payables and Accruals [Abstract]
Accrued compensation	$ 27,078	$ 46,465
Income taxes payable	15,909	16,216
Dividends payable	13,216	13,669
Contract liabilities (current)	8,150	8,501
Current portion of operating lease liability	6,602	6,513
Current portion of terminated swap liability (See Note 10)	5,855	0
Taxes, other than income taxes	5,517	5,044
Goods and services received, not yet invoiced	4,479	3,957
Interest rate swap liability (See Note 10)	2,869	11,992
Accrued interest	114	29
Other	9,085	9,056
Total	$ 98,874	$ 121,442

Debt - Total Debt (Details)

Debt - Total Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Sep. 30, 2020
Debt Instrument [Line Items]
Less: Unamortized debt issuance costs	$ (14,216)	$ (14,949)
Total	919,484	921,414
Less: Current maturities and short-term debt	(10,650)	(10,650)
Long-term debt, net of current portion	908,834	910,764
Senior secured term loan facility
Debt Instrument [Line Items]
Long-term debt	$ 933,700	$ 936,363
Senior secured term loan facility | Senior secured term loan facility | LIBOR | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%

Debt - Narrative (Details)

Debt - Narrative (Details) - Revolving credit facility - Line of credit	Dec. 31, 2020USD ($)
Amended Credit Agreement
Debt Instrument [Line Items]
Available credit remaining	$ 200,000,000
Credit Agreement
Debt Instrument [Line Items]
Borrowings outstanding	$ 0

Debt - Principal Repayments (De

Debt - Principal Repayments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Principal Repayments
Total	$ 919,484	$ 921,414
Term loan facility
Principal Repayments
Remainder of 2021	7,987
2022	10,650
2023	10,650
2024	10,650
2025	10,650
Greater than 5 years	883,113
Total	$ 933,700

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020USD ($)
Derivative Instruments [Abstract]
Gain (loss) reclassified from accumulated other comprehensive income into interest expense, estimated time to transfer	12 months
Interest rate swap contract
Derivative Instruments [Abstract]
Interest rate swap, in loss position	$ 35,300
Reclassified from accumulated other comprehensive income into interest expense	$ 14,013

Derivative Financial Instrume_4

Derivative Financial Instruments - Notional Amounts (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Interest rate swap contract
Derivative [Line Items]
Derivative notional amount	$ 560,003	$ 571,000
Foreign exchange contracts | Buy
Derivative [Line Items]
Derivative notional amount	5,418	8,054
Foreign exchange contracts | Sell
Derivative [Line Items]
Derivative notional amount	$ 27,725	$ 25,105

Derivative Financial Instrume_5

Derivative Financial Instruments - Fair Value of Derivative Instruments in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Derivatives designated as hedging instruments | Interest rate swap contract | Accrued expenses, income taxes payable and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 0	$ 0
Derivative Liabilities	2,869	11,992
Derivatives designated as hedging instruments | Interest rate swap contract | Other long-term liabilities
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Derivative Liabilities	3,813	26,000
Derivatives not designated as hedging instruments | Foreign exchange contracts | Accrued expenses, income taxes payable and other current liabilities
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Derivative Liabilities	52	165
Derivatives not designated as hedging instruments | Foreign exchange contracts | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets	289	27
Derivative Liabilities	$ 0	$ 0

Derivative Financial Instrume_6

Derivative Financial Instruments - Effect of Derivative Instruments on the Consolidated Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Derivatives designated as hedging instruments | Interest rate swap contract | Interest expense
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain (Loss) Recognized in Statement of Income	$ (2,445)	$ (1,170)
Derivatives designated as hedging instruments | Terminated interest rate swap contract | Interest expense
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain (Loss) Recognized in Statement of Income	(929)	0
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other income (expense), net
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Gain (Loss) Recognized in Statement of Income	$ 122	$ 6

Derivative Financial Instrume_7

Derivative Financial Instruments - Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Interest rate swap contract
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income	$ (6,449)	$ 4,314

Commitments and Contingencies (

Commitments and Contingencies (Details)	1 Months Ended	3 Months Ended
	Sep. 30, 2016USD ($)	Dec. 31, 2020USD ($)	Sep. 30, 2017party
Environmental Exit Cost [Line Items]
Loss contingency, receivable		$ 468,000
Abrasive particle supply agreement
Environmental Exit Cost [Line Items]
Purchase obligation		21,695,000
KMG-Bernuth
Environmental Exit Cost [Line Items]
Remediation expense recognized		0
Estimated remediation cost	$ 22,000,000
Number of other parties in agreement | party			7
Estimated reserve, remaining		$ 553,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,074,313
Other comprehensive income, net of tax	19,239	$ 20,110
Net Change		19,622
Balance at end of period	1,108,728	1,029,999
Effect of adoption of the stranded tax effect account standard
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Foreign currency translation adjustment	0
Income tax benefit	0
Other comprehensive income, net of tax	0
Effect of the adoption of the stranded tax effect accounting standard		(497)
Income tax benefit		9
Effect of the adoption of the stranded tax effect accounting standard, net of tax		(488)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(14,104)	(23,238)
Balance at end of period	5,135	(3,616)
Accumulated foreign currency adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Foreign currency translation adjustment	21,543	15,819
Income tax benefit	82	32
Other comprehensive income, net of tax	21,625	15,851
Interest rate swap contract
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Income tax benefit	689	(1,225)
Other comprehensive income, net of tax	(2,386)	4,259
Change in fair value	(6,449)	4,314
Reclassification adjustment into earnings	$ 3,374	$ 1,170

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	19.30%	22.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income available to common shares	$ 31,530	$ 38,549
Denominator:
Weighted average common shares (in shares)	29,123,000	29,137,000
Weighted average effect of dilutive securities
Weighted average effect of dilutive securities (in shares)	475,000	557,000
Diluted weighted average common shares (in shares)	29,598,000	29,694,000
Earnings per share:
Basic (in dollars per share)	$ 1.08	$ 1.32
Diluted (in dollars per share)	$ 1.07	$ 1.30
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding stock options (in shares)	15,000	36,000

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	3 Months Ended
	Dec. 31, 2020segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Reporting - Revenue fro

Segment Reporting - Revenue from External Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 287,863	$ 283,143
Electronic Materials | Operating segment
Segment Reporting Information [Line Items]
Revenue	236,798	220,721
Electronic Materials | CMP Slurries | Operating segment
Segment Reporting Information [Line Items]
Revenue	134,721	122,326
Electronic Materials | Electronic Chemicals | Operating segment
Segment Reporting Information [Line Items]
Revenue	80,006	77,582
Electronic Materials | CMP Pads | Operating segment
Segment Reporting Information [Line Items]
Revenue	22,071	20,813
Performance Materials | Operating segment
Segment Reporting Information [Line Items]
Revenue	51,065	62,422
Performance Materials | PIM | Operating segment
Segment Reporting Information [Line Items]
Revenue	25,907	45,141
Performance Materials | Wood Treatment | Operating segment
Segment Reporting Information [Line Items]
Revenue	17,323	10,674
Performance Materials | QED | Operating segment
Segment Reporting Information [Line Items]
Revenue	$ 7,835	$ 6,607

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation from Segment Adjusted EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net income	$ 31,530	$ 38,549
Interest expense	9,608	11,920
Interest income	(23)	(315)
Income taxes	7,546	10,881
Depreciation and amortization	31,891	31,642
EBITDA	80,552	92,677
Asset impairment charges	7,347	0
Acquisition and integration-related expenses	2,369	2,204
Costs related to the Pandemic, net of grants received	1,262	0
Net costs related to restructuring of the wood treatment business	26	0
Costs related to KMG-Bernuth warehouse fire, net of insurance recovery	0	392
Consolidated adjusted EBITDA	91,556	95,273
Wood Treatment
Segment Reporting Information [Line Items]
Income taxes	(606)
Asset impairment charges	7,347	0
Operating segment | Electronic Materials
Segment Reporting Information [Line Items]
Consolidated adjusted EBITDA	80,756	81,198
Operating segment | Performance Materials
Segment Reporting Information [Line Items]
Consolidated adjusted EBITDA	22,975	27,478
Unallocated corporate
Segment Reporting Information [Line Items]
Unallocated corporate expenses	$ (12,175)	$ (13,403)

Segment Reporting - Capital Exp

Segment Reporting - Capital Expenditures (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Capital expenditures	$ 10,219	$ 26,366
Operating segment | Electronic Materials
Segment Reporting Information [Line Items]
Capital expenditures	5,434	8,485
Operating segment | Performance Materials
Segment Reporting Information [Line Items]
Capital expenditures	1,310	16,369
Unallocated corporate
Segment Reporting Information [Line Items]
Capital expenditures	$ 3,475	$ 1,512