Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 $0.001 per share | |
Trading Symbol | CCMP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,222,355 | |
Entity Central Index Key | 0001102934 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 309,516 | $ 274,727 | $ 887,907 | $ 842,063 |
Cost of sales | 180,320 | 152,973 | 512,061 | 470,525 |
Gross profit | 129,196 | 121,754 | 375,846 | 371,538 |
Operating expenses: | ||||
Research, development and technical | 13,654 | 12,165 | 39,007 | 38,206 |
Selling, general and administrative | 56,242 | 51,847 | 170,700 | 162,495 |
Impairment charges | 3,090 | 0 | 218,658 | 0 |
Total operating expenses | 72,986 | 64,012 | 428,365 | 200,701 |
Operating income (loss) | 56,210 | 57,742 | (52,519) | 170,837 |
Interest expense | 9,551 | 10,406 | 28,667 | 33,079 |
Interest income | 11 | 131 | 47 | 589 |
Other (expense) income, net | (427) | (201) | 541 | (1,608) |
Income (loss) before income taxes | 46,243 | 47,266 | (80,598) | 136,739 |
Provision for income taxes | 12,601 | 12,741 | 4,038 | 30,766 |
Net income (loss) | $ 33,642 | $ 34,525 | $ (84,636) | $ 105,973 |
Basic earnings per share (in dollars per share) | $ 1.15 | $ 1.19 | $ (2.90) | $ 3.63 |
Diluted earnings per share (in dollars per share) | $ 1.13 | $ 1.17 | $ (2.90) | $ 3.58 |
Weighted average basic shares outstanding (in shares) | 29,260 | 29,079 | 29,197 | 29,157 |
Weighted average diluted shares outstanding (in shares) | 29,682 | 29,456 | 29,197 | 29,603 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ 33,642 | $ 34,525 | $ (84,636) | $ 105,973 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 2,575 | 9,086 | 10,385 | 5,212 |
Net unrealized (loss) gain on cash flow hedges | (2,104) | (334) | 13,326 | (13,382) |
Other comprehensive income (loss), net of tax | 471 | 8,752 | 23,711 | (8,170) |
Comprehensive income (loss) | $ 34,113 | $ 43,277 | $ (60,925) | $ 97,803 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 228,506 | $ 257,354 |
Accounts receivable, less allowance for credit losses of $524 at June 30, 2021 and $583 at September 30, 2020 | 170,346 | 134,023 |
Inventories | 169,147 | 159,134 |
Prepaid expenses and other current assets | 25,901 | 26,558 |
Total current assets | 593,900 | 577,069 |
Property, plant and equipment, net | 357,304 | 362,067 |
Goodwill | 590,806 | 718,647 |
Other intangible assets, net | 648,006 | 670,964 |
Deferred income taxes | 8,005 | 7,713 |
Other long-term assets | 51,804 | 40,007 |
Total assets | 2,249,825 | 2,376,467 |
Current liabilities: | ||
Accounts payable | 55,737 | 49,254 |
Current portion of long-term debt | 10,650 | 10,650 |
Accrued expenses, income taxes payable and other current liabilities | 129,497 | 121,442 |
Total current liabilities | 195,884 | 181,346 |
Long-term debt, net of current portion | 904,967 | 910,764 |
Deferred income taxes | 76,995 | 112,212 |
Other long-term liabilities | 90,732 | 97,832 |
Total liabilities | 1,268,578 | 1,302,154 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Common Stock Authorized: 200,000 shares, $0.001 par value; Issued: 40,217 shares at June 30, 2021, and 39,914 shares at September 30, 2020 | 40 | 40 |
Capital in excess of par value of common stock | 1,048,329 | 1,019,803 |
Retained earnings | 429,078 | 553,718 |
Accumulated other comprehensive income (loss) | 9,607 | (14,104) |
Treasury stock at cost, 10,973 shares at June 30, 2021, and 10,834 shares at September 30, 2020 | (505,807) | (485,144) |
Total stockholders’ equity | 981,247 | 1,074,313 |
Total liabilities and stockholders’ equity | $ 2,249,825 | $ 2,376,467 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 524 | $ 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) | 40,217,000 | 39,914,000 |
Treasury stock (in shares) | 10,973,000 | 10,834,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (84,636) | $ 105,973 |
Adjustments to reconcile Net (loss) income to net cash provided by operating activities: | ||
Impairment charges | 218,658 | 0 |
Depreciation and amortization | 98,107 | 95,516 |
Deferred income tax benefit | (40,153) | (9,469) |
Share-based compensation expense | 15,200 | 12,191 |
Amortization of terminated interest rate swap contract | 6,501 | 0 |
Amortization of debt issuance costs | 2,320 | 2,345 |
Loss (gain) on disposal of assets | 581 | (338) |
Non-cash foreign exchange (gain) loss | (443) | 146 |
Accretion on Asset Retirement Obligations | 439 | 406 |
Other | (1,747) | 303 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (32,683) | 8,130 |
Inventories | (7,758) | (16,442) |
Prepaid expenses and other assets | (6,182) | 9,786 |
Accounts payable | 8,723 | (5,591) |
Accrued expenses, income taxes payable and other liabilities | 2,866 | 1,127 |
Net cash provided by operating activities | 179,793 | 204,083 |
Cash flows from investing activities: | ||
Acquisition of a business, net of cash acquired | (126,129) | 0 |
Additions to property, plant and equipment | (31,574) | (107,015) |
Proceeds from the sale of assets | 2,613 | 1,587 |
Net cash used in investing activities | (155,090) | (105,428) |
Cash flows from financing activities: | ||
Dividends paid | (39,570) | (37,527) |
Repurchases of common stock under Share Repurchase Program | (15,171) | (35,009) |
Proceeds from issuance of stock | 13,326 | 10,960 |
Repayment of long-term debt | (7,988) | (17,988) |
Repurchases of common stock withheld for taxes | (5,492) | (3,112) |
Proceeds from revolving line of credit | 0 | 150,000 |
Other financing activities | (219) | (123) |
Net cash (used in) provided by financing activities | (55,114) | 67,201 |
Effect of exchange rate changes on cash | 1,563 | 357 |
(Decrease) increase in cash and cash equivalents | (28,848) | 166,213 |
Cash and cash equivalents at beginning of period | 257,354 | 188,495 |
Cash and cash equivalents at end of period | 228,506 | 354,708 |
Supplemental Cash Flow Information: | ||
Purchases of property, plant and equipment in accrued liabilities and accounts payable at the end of the period | 2,128 | 9,609 |
Cash paid during the period for lease liabilities | 6,183 | 5,647 |
Right of use asset obtained in exchange for lease liabilities | 2,996 | 6,351 |
ITS purchase consideration in accrued liabilities at the end of the period | $ 748 | $ 0 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ 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 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under stock plans (in shares) | 275 | |||||||
Ending balance, common stock (in shares) at Jun. 30, 2020 | 39,867 | |||||||
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] | ||||||||
Share-based compensation expense | 12,191 | |||||||
Exercise of stock options | 8,274 | |||||||
Issuance of common stock under stock plans | 0 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 2,536 | |||||||
Issuance of restricted stock under Deposit Share Program | 150 | |||||||
Cumulative effect of accounting changes | $ 488 | $ (488) | ||||||
Net (loss) income | $ 105,973 | 105,973 | ||||||
Dividends | (38,176) | |||||||
Foreign currency translation adjustment | 5,212 | 5,212 | ||||||
Cash flow hedges | (13,382) | (13,382) | ||||||
Repurchases of common stock under Share Repurchase Program | (35,009) | |||||||
Repurchases of common stock - other | (3,112) | |||||||
Balance at end of period at Jun. 30, 2020 | $ 1,025,034 | $ 40 | 1,012,131 | 529,786 | (31,896) | $ (485,027) | ||
Beginning balance, treasure stock (in shares) at Sep. 30, 2019 | 10,491 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock under Share Repurchase Program (in shares) | 317 | |||||||
Repurchase of commons stock - other (in shares) | 25 | |||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2020 | 10,833 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends per share of common stock (in dollars per share) | $ 1.30 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | |||||||
Beginning balance, common stock (in shares) at Mar. 31, 2020 | 39,855 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under stock plans (in shares) | 12 | |||||||
Ending balance, common stock (in shares) at Jun. 30, 2020 | 39,867 | |||||||
Balance at beginning of period at Mar. 31, 2020 | $ 40 | 1,008,311 | 508,126 | (40,648) | $ (466,419) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation expense | 3,194 | |||||||
Exercise of stock options | 626 | |||||||
Issuance of common stock under stock plans | 0 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 0 | |||||||
Issuance of restricted stock under Deposit Share Program | 0 | |||||||
Cumulative effect of accounting changes | 0 | 0 | ||||||
Net (loss) income | $ 34,525 | 34,525 | ||||||
Dividends | (12,865) | |||||||
Foreign currency translation adjustment | 9,086 | 9,086 | ||||||
Cash flow hedges | (334) | (334) | ||||||
Repurchases of common stock under Share Repurchase Program | (18,595) | |||||||
Repurchases of common stock - other | (13) | |||||||
Balance at end of period at Jun. 30, 2020 | $ 1,025,034 | $ 40 | 1,012,131 | 529,786 | (31,896) | $ (485,027) | ||
Beginning balance, treasure stock (in shares) at Mar. 31, 2020 | 10,673 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock under Share Repurchase Program (in shares) | 160 | |||||||
Repurchase of commons stock - other (in shares) | 0 | |||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2020 | 10,833 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends per share of common stock (in dollars per share) | $ 0.44 | |||||||
Beginning balance, common stock (in shares) at Sep. 30, 2020 | 39,914 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under stock plans (in shares) | 303 | |||||||
Ending balance, common stock (in shares) at Jun. 30, 2021 | 40,217 | |||||||
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 | 15,200 | |||||||
Exercise of stock options | 7,089 | |||||||
Issuance of common stock under stock plans | 0 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 6,022 | |||||||
Issuance of restricted stock under Deposit Share Program | 215 | |||||||
Cumulative effect of accounting changes | 0 | 0 | ||||||
Net (loss) income | (84,636) | (84,636) | ||||||
Dividends | (40,004) | |||||||
Foreign currency translation adjustment | 10,385 | 10,385 | ||||||
Cash flow hedges | 13,326 | 13,326 | ||||||
Repurchases of common stock under Share Repurchase Program | (15,171) | |||||||
Repurchases of common stock - other | (5,492) | |||||||
Balance at end of period at Jun. 30, 2021 | $ 981,247 | $ 40 | 1,048,329 | 429,078 | 9,607 | $ (505,807) | ||
Beginning balance, treasure stock (in shares) at Sep. 30, 2020 | 10,834 | 10,834 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock under Share Repurchase Program (in shares) | 102 | |||||||
Repurchase of commons stock - other (in shares) | 37 | |||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2021 | 10,973 | 10,973 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends per share of common stock (in dollars per share) | $ 1.36 | |||||||
Beginning balance, common stock (in shares) at Mar. 31, 2021 | 40,187 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under stock plans (in shares) | 30 | |||||||
Ending balance, common stock (in shares) at Jun. 30, 2021 | 40,217 | |||||||
Balance at beginning of period at Mar. 31, 2021 | $ 40 | 1,041,252 | 408,983 | 9,136 | $ (500,582) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation expense | 4,030 | |||||||
Exercise of stock options | 396 | |||||||
Issuance of common stock under stock plans | 0 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 2,651 | |||||||
Issuance of restricted stock under Deposit Share Program | 0 | |||||||
Cumulative effect of accounting changes | $ 0 | $ 0 | ||||||
Net (loss) income | $ 33,642 | 33,642 | ||||||
Dividends | (13,547) | |||||||
Foreign currency translation adjustment | 2,575 | 2,575 | ||||||
Cash flow hedges | (2,104) | (2,104) | ||||||
Repurchases of common stock under Share Repurchase Program | (5,169) | |||||||
Repurchases of common stock - other | (56) | |||||||
Balance at end of period at Jun. 30, 2021 | $ 981,247 | $ 40 | $ 1,048,329 | $ 429,078 | $ 9,607 | $ (505,807) | ||
Beginning balance, treasure stock (in shares) at Mar. 31, 2021 | 10,938 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of common stock under Share Repurchase Program (in shares) | 35 | |||||||
Repurchase of commons stock - other (in shares) | 0 | |||||||
Ending balance, treasury stock (in shares) at Jun. 30, 2021 | 10,973 | 10,973 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends per share of common stock (in dollars per share) | $ 0.46 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Jun. 30, 2021 | |
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. On April 1, 2021 (“Acquisition Date”), the Company completed the acquisition of 100% of International Test Solutions, LLC (“ITS”) (“Acquisition”), which has expanded the Company’s portfolio of critical enabling solutions in the semiconductor manufacturing process. The Consolidated Financial Statements included in this Report on Form 10-Q include the financial results of ITS from the Acquisition Date. 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, electronic chemicals business, and the materials technologies business, which currently comprises the ITS 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 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 Report on Form 10-Q, the presentation for the Provision for credit losses and the presentation for Repurchases of common stock under Cash flows from financing activities have been updated for the nine months ended June 30, 2020 to conform to the current presentation. The amounts for fiscal year 2020 related to the Provision for credit losses are now presented under “Other” and common shares withheld for taxes and included in Repurchases of common stock previously, are now presented separately under “Repurchases of common stock withheld for taxes.” 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 | 9 Months Ended |
Jun. 30, 2021 | |
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 credit losses 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 receivables 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, 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 evaluating the impact of implementing this standard and currently do not expect it to have a material impact. 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 | 9 Months Ended |
Jun. 30, 2021 | |
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 17 of this Report on Form 10-Q for more information. The following table provides information about contract liability balances: Consolidated Balance Sheet Location June 30, 2021 September 30, 2020 Contract liabilities (current) Accrued expenses, income taxes payable and other current liabilities $ 9,495 $ 8,501 Contract liabilities (noncurrent) Other long-term liabilities 2,003 1,288 The amount of revenue recognized during the three and nine months ended June 30, 2021 that was included in the opening current contract liability balances in our Performance Materials segment was $1,012 and $4,721, respectively, and $400 and $3,427 for the three and nine months ended June 30, 2020, respectively. The amount of revenue recognized during the three and nine months ended June 30, 2021 and 2020 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 3-5 Years Total Revenue expected to be recognized on contract liability amounts as of June 30, 2021 $ 976 $ 1,968 $ 35 $ 2,979 |
Business Combination
Business Combination | 9 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | BUSINESS COMBINATION The Company completed the Acquisition for purchase consideration of $129,071, inclusive of working capital adjustments, or $126,877 net of cash acquired, which it funded entirely from cash on hand. ITS designs and produces high-performance consumables used to optimize critical semiconductor testing processes, thus expanding CMC’s product offerings. ITS is part of our Electronic Materials business segment. The Acquisition was accounted for using the acquisition method of accounting, and ITS’s results of operations are included in our unaudited Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Loss) from the Acquisition Date. The Acquisition would not have materially affected the Company’s results of operations or financial position for any periods presented. Based on the preliminary acquisition accounting, the Company allocated $81,960 and $37,200 of the purchase price to goodwill and intangible assets, respectively. The goodwill is primarily attributable to anticipated revenue growth from the combined company product portfolio and is expected to be deductible for income tax purposes. The following table sets forth the components of identifiable intangible assets acquired, their estimated useful lives, and amortization method as of the Acquisition Date: Fair Value Estimated Useful Life Amortization Method Technology and know-how $ 25,400 10 Straight-line Customer relationships 8,100 20 Accelerated Trade name 3,700 10 Straight-line Total intangible assets $ 37,200 The intangible assets subject to amortization have a weighted average useful life of 12.2 years. The fair value of acquired identifiable intangible assets was determined using Level 3 inputs for the “income approach” on an individual asset basis. The key assumptions used in the calculation of the discounted cash flows include projected revenue, operating expenses, and obsolescence rate. The valuations and the underlying assumptions have been deemed reasonable by the Company’s management. There are inherent uncertainties and management judgment required in these determinations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Jun. 30, 2021 | |
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 measure at fair value on a recurring basis. See Note 11 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 it based on the lowest level input that is significant to the determination of the fair value. Level 1 Level 2 Level 3 Total Fair Value June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 Assets: Cash and cash equivalents $ 228,506 $ 257,354 $ — $ — $ — $ — $ 228,506 $ 257,354 Other long-term investments 1,438 1,214 — — — — 1,438 1,214 Derivative financial instruments — — 10,995 27 — — 10,995 27 Liabilities: Derivative financial instruments — — 3,322 38,157 — — 3,322 38,157 |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: June 30, 2021 September 30, 2020 Raw materials $ 66,599 $ 66,591 Work in process 19,903 15,148 Finished goods 82,645 77,395 Total $ 169,147 $ 159,134 |
Goodwill
Goodwill | 9 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill activity for each of the Company’s reportable segments for the nine months ended June 30, 2021 is as follows: Electronic Materials Performance Materials Total Balance at September 30, 2020 1 $ 360,425 $ 358,222 $ 718,647 Additions due to acquisition 81,960 — 81,960 Foreign currency translation impact 3,684 1,907 5,591 Impairment — (215,392) (215,392) Balance at June 30, 2021 $ 446,069 $ 144,737 $ 590,806 1 There are no accumulated impairment amounts at September 30, 2020. During the quarter, the Company recorded goodwill within the Electronic Materials segment of $81,960 from the Acquisition discussed in Note 4. During the second quarter, the Company recorded impairment charges related to the PIM and wood treatment reporting units within the Performance Materials segment. As a result of lower than anticipated recovery from a drop in demand for our PIM products due to the ongoing impact of the COVID-19 Pandemic (“Pandemic”), combined with a near-to-mid term increase in raw material cost for the PIM business, we determined that it was more likely than not that the fair value of the PIM reporting unit was below its carrying value, requiring the PIM reporting unit to be tested for impairment at March 31, 2021. Based on the results of the interim impairment test, the Company concluded that the carrying value of the PIM reporting unit exceeded the estimated fair value, and recognized a non-cash, pre-tax goodwill impairment charge of $201,550 for the three months ended March 31, 2021. The goodwill impairment charge is included in the Performance Materials segment and presented within Impairment charges, and the related tax benefit of $23,539 for the nine months ended June 30, 2021 is included in the Provision for income taxes in the Consolidated Statements of Income (Loss). The remaining carrying value of the PIM reporting unit as of June 30, 2021 of $581,716 includes $118,568 of goodwill and $46,000 of indefinite lived intangible assets. In performing the impairment test, the estimated fair value of the PIM reporting unit was determined based on an average of a discounted cash flow model and a market approach based on earnings before interest, taxes, and depreciation for a group of guideline comparable companies. Key assumptions in estimating the fair value of the reporting unit included projected future revenue and gross margin, a 10.75% discount rate and a terminal growth rate of 3%. The Company’s projections for revenue and gross margin are based on the Company’s multiyear forecast. Components of the discount rate are the cost of equity and the cost of debt, each of which requires judgment by management to estimate. The Company developed its cost of equity estimate based on perceived risks and predictability of future cash flows. As the inputs for testing, 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 reporting unit’s carrying value used in an impairment test represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash, investments, and debt. The Company estimated the fair value of its indefinite-lived intangible tradename utilizing its best estimate of future cash flows and royalty rate assumptions as of the period ending March 31, 2021. Additionally, the Company recorded non-cash, pre-tax goodwill impairment charges of $3,090 and $13,842 for the three and nine months ended June 30, 2021, related to the wood treatment asset group and reporting unit due to the previously announced planned closure of the facilities. See Note 8 of this Report on Form 10-Q for a discussion of the wood treatment impairment. |
Impairment - Wood Treatment
Impairment - Wood Treatment | 9 Months Ended |
Jun. 30, 2021 | |
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 and the finite remaining cash flow through the closure dates, the Company concluded that it was more likely than not that the fair value of the wood treatment reporting unit was below its carrying value, requiring the wood treatment asset group and reporting unit to be tested for impairment. Impairment of Long-Lived Assets As a result of the previously announced planned facilities closures due to the strategic decision to exit the wood treatment business, the Company previously adjusted the remaining assets’ useful lives such that they do not extend beyond the expected closure dates of the facilities. 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, resulting in no remaining carrying value of definite-lived intangible assets or Property, plant and equipment as of that 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 dates. 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 non-cash, pre-tax impairment charges of $3,090 and $13,842 for the three and nine months ended June 30, 2021, respectively. As the Company approaches the closure dates 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 June 30, 2021 includes $21.2 million of goodwill, which will be periodically impaired through the closure dates, resulting in no fair value ascribed to the wood treatment business by the dates 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 Charges The long-lived assets and goodwill impairment charges, both included in the Performance Materials segment, are presented within Impairment charges and the related tax benefit of $606 for the nine months ended June 30, 2021 is included in the Provision for income taxes in the Consolidated Statements of Income (Loss). The impairment charges related to goodwill are not tax deductible, therefore there is no related tax benefit for the three months ended June 30, 2021. The impairment charges for wood treatment for the respective periods are as follows: Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Property, plant, and equipment, net $ — $ 91 Goodwill 3,090 13,842 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 wood treatment impairment charges $ 3,090 $ 17,108 Additionally, the Company recorded a non-cash, pre-tax goodwill impairment charge of $201,550 for the nine month period ended June 30, 2021, related to the PIM reporting unit. See Note 7 of this Report on Form 10-Q for a discussion of the PIM impairment. |
Other Long-Term Assets
Other Long-Term Assets | 9 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | OTHER LONG-TERM ASSETS June 30, 2021 September 30, 2020 Right of use asset $ 32,849 $ 30,999 Interest rate swap (See Note 12) 10,955 — Vendor contract assets 1,713 2,889 SERP investment 1,438 1,214 Prepaid unamortized debt issuance cost - revolver 408 537 Other long-term assets 4,441 4,368 Total $ 51,804 $ 40,007 |
Accrued Expenses, Income Taxes
Accrued Expenses, Income Taxes Payable And Other Current Liabilities | 9 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses, Income Taxes Payable And Other Current Liabilities | ACCRUED EXPENSES, INCOME TAXES PAYABLE AND OTHER CURRENT LIABILITIES June 30, 2021 September 30, 2020 Accrued compensation $ 42,233 $ 46,465 Income taxes payable 15,505 16,216 Dividends payable 14,103 13,669 Asset retirement obligation 12,097 — Contract liabilities (current) 9,495 8,501 Current portion of operating lease liability 7,520 6,513 Current portion of terminated swap liability (See Note 12) 5,855 — Taxes, other than income taxes 5,691 5,044 Goods and services received, not yet invoiced 3,031 3,957 Interest rate swap liability (See Note 12) 2,965 11,992 Accrued interest 108 29 Other 10,894 9,056 Total $ 129,497 $ 121,442 |
Debt
Debt | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT June 30, 2021 September 30, 2020 Senior Secured Term Loan Facility, one-month LIBOR plus 2.00% $ 928,375 $ 936,363 Less: Unamortized debt issuance costs (12,758) (14,949) Total debt 915,617 921,414 Less: Current maturities and short-term debt (10,650) (10,650) Total long-term debt excluding current maturities $ 904,967 $ 910,764 The Company’s credit agreement as amended (“Amended Credit Agreement”) includes a Senior Secured Term Loan Facility (“Term Loan Facility”) and a revolving credit facility (“Revolving Credit Facility”). As of June 30, 2021, there were no borrowings outstanding under the Revolving Credit Facility and our available credit was $200,000, which includes our letter of credit sub-facility. On July 2, 2021, the Company amended the Amended Credit Agreement to increase the aggregate amount of the Revolving Credit Facility from $200,000 to $350,000 and to extend the maturity to July 2026. Interest rates and other material terms applicable to the Amended Credit Agreement are unchanged. At June 30, 2021 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 June 30, 2021, scheduled principal repayments of the Term Loan Facility are as follows: Fiscal Year Principal Repayments Remainder of 2021 $ 2,662 2022 10,650 2023 10,650 2024 10,650 2025 10,650 Greater than 5 years 883,113 Total $ 928,375 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 30, 2021 | |
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 first quarter of fiscal 2021, 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 amounts of our derivative instruments are as follows: June 30, 2021 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract - new agreement $ 556,808 $ — Interest rate swap contract - terminated agreement — 571,000 Derivatives not designated as hedging instruments Foreign exchange contracts to purchase U.S. dollars $ 4,263 $ 8,054 Foreign exchange contracts to sell U.S. dollars 25,355 25,105 The fair values of our derivative instruments included in the Consolidated Balance Sheets are as follows: Derivative Assets Derivative Liabilities Consolidated Balance Sheet Location June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract Other long-term assets $ 10,955 $ — $ — $ — Accrued expenses, income taxes payable and other current liabilities — — 2,965 11,992 Other long-term liabilities — — — 26,000 Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid expenses and other current assets $ 40 $ 27 $ — $ — Accrued expenses, income taxes payable and other current liabilities — — 357 165 The following table summarizes the effects of our derivative instruments on our Consolidated Statements of Income (loss): Gain (Loss) Recognized in Statement of Income Three Months Ended June 30, Nine Months Ended June 30, Consolidated Statement of Income Location 2021 2020 2021 2020 Derivatives designated as hedging instruments Interest rate swap contract Interest expense $ (787) $ (3,262) $ (4,041) $ (5,799) Terminated interest rate swap contract Interest expense (2,786) — (6,501) — Derivatives not designated as hedging instruments Foreign exchange contracts Other income (expense), net $ (74) $ (128) $ (711) $ (390) The following table summarizes the effects of our derivative instruments on Accumulated other comprehensive income (loss): Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as hedging instruments Interest rate swap contract $ (6,284) $ (3,694) $ 6,628 $ (23,034) We expect approximately $14,109 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 June 30, 2021. This amount includes the amortization of the loss associated with the terminated swap arrangement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES In fiscal 2019, a fire, which involved non-hazardous waste materials and caused no injuries, 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. KMG-Bernuth commenced and completed cleanup with oversight from certain local, state and federal authorities, and we recorded related expense and for disposal of affected inventory in Cost of sales. We recorded $26 of expense during the three and nine months ended June 30, 2021. We recorded $1,688 of expense during the nine months ended June 30, 2020. Although we believe we have completed cleanup efforts related to the fire incident, there are potential other related costs that cannot be reasonably estimated as of this time due to the nature of federally-regulated penta-related requirements. In addition, we continue to work with our insurance carriers on possible recovery of losses and costs related to the fire incident. During the nine months ended June 30, 2021, we received insurance recoveries of $1,076. 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 our acquisition of KMG Chemicals, Inc. (“KMG”) in November 2018, 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 of KMG, 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 remedial design was established, and as of June 30, 2021, the reserve remaining was $204. The remediation work will be performed under a separate future agreement. For more information, 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 We have $12,918 of contractual commitments through December 2022 under an abrasive particle supply agreement and a contractual commitment of $11,311 through December 2021 to purchase non-water based carrier fluid. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Jun. 30, 2021 | |
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 June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Beginning Balance $ 9,136 $ (40,648) $ (14,104) $ (23,238) Foreign currency translation adjustment 2,648 9,048 10,428 5,113 Income tax (expense) benefit (73) 38 (43) 99 Foreign currency translation adjustment, net of tax 2,575 9,086 10,385 5,212 Unrealized gain (loss) on cash flow hedges: Change in fair value (6,284) (3,694) 6,628 (23,034) Reclassification adjustment into earnings 3,573 3,262 10,542 5,799 Income tax benefit (expense) 607 98 (3,844) 3,853 Unrealized (loss) gain on cash flow hedges, net of tax (2,104) (334) 13,326 (13,382) 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 471 8,752 23,711 (8,658) Ending Balance $ 9,607 $ (31,896) $ 9,607 $ (31,896) 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 | 9 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The U.S. enacted the Consolidated Appropriations Act (“CAA”) in December 2020 and the American Rescue Plan (“Rescue Plan”) in March 2021. Both the CAA and Rescue Plan extended certain provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and provided additional Pandemic relief provisions. As with the CARES Act, the CAA and Rescue Plan did not have a material impact on our Provision for income taxes for the three and nine months ended June 30, 2021. The Company recorded income tax expense of $12,601 for the three months ended June 30, 2021, compared to $12,741 for the three months ended June 30, 2020. The Company recorded an income tax expense of $4,038 for the nine months ended June 30, 2021, compared to $30,766 for the nine months ended June 30, 2020. The Company’s effective income tax rate was 27.2% and (5.0)% for the three and nine months ended June 30, 2021, respectively, compared to an effective tax rate of 27.0% and 22.5% for the three and nine months ended June 30, 2020, respectively. The change in our effective tax rate for the nine months ended June 30, 2021 compared to the prior year is primarily due to the unfavorable impact of the impairment related to the PIM and wood treatment reporting units, partially offset by higher tax benefit related to foreign derived intangible income. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income (loss) available to common shares $ 33,642 $ 34,525 $ (84,636) $ 105,973 Denominator: Weighted average common shares 29,260 29,079 29,197 29,157 Weighted average effect of dilutive securities 422 377 — 446 Diluted weighted average common shares 29,682 29,456 29,197 29,603 Earnings (loss) per share: Basic $ 1.15 $ 1.19 $ (2.90) $ 3.63 Diluted $ 1.13 $ 1.17 $ (2.90) $ 3.58 For the nine months ended June 30, 2021, no dilutive shares were calculated, as the dilutive shares in a net loss situation would be anti-dilutive. Shares excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Outstanding stock options 13 124 — 96 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jun. 30, 2021 | |
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, electronic chemicals business, and materials technologies business, which comprises the ITS 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 charges, 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 adjusted EBITDA 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 June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Segment Revenue: Electronic Materials: CMP slurries $ 135,972 $ 117,680 $ 410,887 $ 359,828 Electronic chemicals 84,140 78,614 244,244 234,693 CMP pads 25,561 24,073 69,887 65,476 Materials technologies 5,396 — 5,396 — Total Electronic Materials 251,069 220,367 730,414 659,997 Performance Materials: PIM 29,605 27,111 81,499 116,732 Wood treatment 19,104 18,801 51,973 44,449 QED 9,738 8,448 24,021 20,885 Total Performance Materials 58,447 54,360 157,493 182,066 Total $ 309,516 $ 274,727 $ 887,907 $ 842,063 Capital expenditures by segment are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Capital Expenditures: Electronic Materials $ 6,274 $ 6,141 $ 17,966 $ 19,720 Performance Materials 560 33,550 2,827 79,247 Corporate 1,569 3,900 7,544 8,967 Total $ 8,403 $ 43,591 $ 28,337 $ 107,934 Adjusted EBITDA by segment is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 33,642 $ 34,525 $ (84,636) $ 105,973 Interest expense 9,551 10,406 28,667 33,079 Interest income (11) (131) (47) (589) Income taxes 12,601 12,741 4,038 30,766 Depreciation and amortization 33,927 31,324 98,107 95,516 EBITDA 89,710 88,865 46,129 264,745 Impairment charges 3,090 — 218,658 — Acquisition and integration-related expenses 3,353 2,735 7,889 7,785 Costs related to the Pandemic, net of grants received (200) 112 641 349 Net costs related to restructuring of the wood treatment business 24 (293) 96 (293) Costs related to KMG-Bernuth warehouse fire, net of insurance recovery 26 622 (1,050) 1,220 Consolidated adjusted EBITDA $ 96,003 $ 92,041 $ 272,363 $ 273,806 Segment adjusted EBITDA: Electronic Materials $ 82,521 $ 76,855 $ 244,592 $ 227,662 Performance Materials 25,465 26,959 67,190 84,370 Unallocated corporate expenses (11,983) (11,773) (39,419) (38,226) Consolidated Adjusted EBITDA $ 96,003 $ 92,041 $ 272,363 $ 273,806 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) | 9 Months Ended |
Jun. 30, 2021 | |
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 credit losses 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 receivables 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, 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 evaluating the impact of implementing this standard and currently do not expect it to have a material impact. 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) | 9 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Reconciliation of Contract Liability Balances | The following table provides information about contract liability balances: Consolidated Balance Sheet Location June 30, 2021 September 30, 2020 Contract liabilities (current) Accrued expenses, income taxes payable and other current liabilities $ 9,495 $ 8,501 Contract liabilities (noncurrent) Other long-term liabilities 2,003 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 3-5 Years Total Revenue expected to be recognized on contract liability amounts as of June 30, 2021 $ 976 $ 1,968 $ 35 $ 2,979 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Components of identifiable intangible assets acquired and their estimated useful lives | The following table sets forth the components of identifiable intangible assets acquired, their estimated useful lives, and amortization method as of the Acquisition Date: Fair Value Estimated Useful Life Amortization Method Technology and know-how $ 25,400 10 Straight-line Customer relationships 8,100 20 Accelerated Trade name 3,700 10 Straight-line Total intangible assets $ 37,200 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The following table presents financial instruments, other than debt, that we measure at fair value on a recurring basis. See Note 11 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 it based on the lowest level input that is significant to the determination of the fair value. Level 1 Level 2 Level 3 Total Fair Value June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 Assets: Cash and cash equivalents $ 228,506 $ 257,354 $ — $ — $ — $ — $ 228,506 $ 257,354 Other long-term investments 1,438 1,214 — — — — 1,438 1,214 Derivative financial instruments — — 10,995 27 — — 10,995 27 Liabilities: Derivative financial instruments — — 3,322 38,157 — — 3,322 38,157 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: June 30, 2021 September 30, 2020 Raw materials $ 66,599 $ 66,591 Work in process 19,903 15,148 Finished goods 82,645 77,395 Total $ 169,147 $ 159,134 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Activity | Goodwill activity for each of the Company’s reportable segments for the nine months ended June 30, 2021 is as follows: Electronic Materials Performance Materials Total Balance at September 30, 2020 1 $ 360,425 $ 358,222 $ 718,647 Additions due to acquisition 81,960 — 81,960 Foreign currency translation impact 3,684 1,907 5,591 Impairment — (215,392) (215,392) Balance at June 30, 2021 $ 446,069 $ 144,737 $ 590,806 |
Impairment - Wood Treatment (Ta
Impairment - Wood Treatment (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Long-lived Asset Impairment | The impairment charges for wood treatment for the respective periods are as follows: Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Property, plant, and equipment, net $ — $ 91 Goodwill 3,090 13,842 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 wood treatment impairment charges $ 3,090 $ 17,108 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-term Assets | June 30, 2021 September 30, 2020 Right of use asset $ 32,849 $ 30,999 Interest rate swap (See Note 12) 10,955 — Vendor contract assets 1,713 2,889 SERP investment 1,438 1,214 Prepaid unamortized debt issuance cost - revolver 408 537 Other long-term assets 4,441 4,368 Total $ 51,804 $ 40,007 |
Accrued Expenses, Income Taxe_2
Accrued Expenses, Income Taxes Payable And Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses, Income Taxes Payable and Other Current Liabilities | June 30, 2021 September 30, 2020 Accrued compensation $ 42,233 $ 46,465 Income taxes payable 15,505 16,216 Dividends payable 14,103 13,669 Asset retirement obligation 12,097 — Contract liabilities (current) 9,495 8,501 Current portion of operating lease liability 7,520 6,513 Current portion of terminated swap liability (See Note 12) 5,855 — Taxes, other than income taxes 5,691 5,044 Goods and services received, not yet invoiced 3,031 3,957 Interest rate swap liability (See Note 12) 2,965 11,992 Accrued interest 108 29 Other 10,894 9,056 Total $ 129,497 $ 121,442 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt | June 30, 2021 September 30, 2020 Senior Secured Term Loan Facility, one-month LIBOR plus 2.00% $ 928,375 $ 936,363 Less: Unamortized debt issuance costs (12,758) (14,949) Total debt 915,617 921,414 Less: Current maturities and short-term debt (10,650) (10,650) Total long-term debt excluding current maturities $ 904,967 $ 910,764 |
Schedule of Principal Repayments of Debt | As of June 30, 2021, scheduled principal repayments of the Term Loan Facility are as follows: Fiscal Year Principal Repayments Remainder of 2021 $ 2,662 2022 10,650 2023 10,650 2024 10,650 2025 10,650 Greater than 5 years 883,113 Total $ 928,375 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts of our derivative instruments are as follows: June 30, 2021 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract - new agreement $ 556,808 $ — Interest rate swap contract - terminated agreement — 571,000 Derivatives not designated as hedging instruments Foreign exchange contracts to purchase U.S. dollars $ 4,263 $ 8,054 Foreign exchange contracts to sell U.S. dollars 25,355 25,105 |
Schedule of Derivative Instruments in the Consolidated Balance Sheets | The fair values of our derivative instruments included in the Consolidated Balance Sheets are as follows: Derivative Assets Derivative Liabilities Consolidated Balance Sheet Location June 30, 2021 September 30, 2020 June 30, 2021 September 30, 2020 Derivatives designated as hedging instruments Interest rate swap contract Other long-term assets $ 10,955 $ — $ — $ — Accrued expenses, income taxes payable and other current liabilities — — 2,965 11,992 Other long-term liabilities — — — 26,000 Derivatives not designated as hedging instruments Foreign exchange contracts Prepaid expenses and other current assets $ 40 $ 27 $ — $ — Accrued expenses, income taxes payable and other current liabilities — — 357 165 |
Schedule of Derivative Instruments on Consolidated Statements of Income | The following table summarizes the effects of our derivative instruments on our Consolidated Statements of Income (loss): Gain (Loss) Recognized in Statement of Income Three Months Ended June 30, Nine Months Ended June 30, Consolidated Statement of Income Location 2021 2020 2021 2020 Derivatives designated as hedging instruments Interest rate swap contract Interest expense $ (787) $ (3,262) $ (4,041) $ (5,799) Terminated interest rate swap contract Interest expense (2,786) — (6,501) — Derivatives not designated as hedging instruments Foreign exchange contracts Other income (expense), net $ (74) $ (128) $ (711) $ (390) The following table summarizes the effects of our derivative instruments on Accumulated other comprehensive income (loss): Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as hedging instruments Interest rate swap contract $ (6,284) $ (3,694) $ 6,628 $ (23,034) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
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 June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Beginning Balance $ 9,136 $ (40,648) $ (14,104) $ (23,238) Foreign currency translation adjustment 2,648 9,048 10,428 5,113 Income tax (expense) benefit (73) 38 (43) 99 Foreign currency translation adjustment, net of tax 2,575 9,086 10,385 5,212 Unrealized gain (loss) on cash flow hedges: Change in fair value (6,284) (3,694) 6,628 (23,034) Reclassification adjustment into earnings 3,573 3,262 10,542 5,799 Income tax benefit (expense) 607 98 (3,844) 3,853 Unrealized (loss) gain on cash flow hedges, net of tax (2,104) (334) 13,326 (13,382) 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 471 8,752 23,711 (8,658) Ending Balance $ 9,607 $ (31,896) $ 9,607 $ (31,896) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income (loss) available to common shares $ 33,642 $ 34,525 $ (84,636) $ 105,973 Denominator: Weighted average common shares 29,260 29,079 29,197 29,157 Weighted average effect of dilutive securities 422 377 — 446 Diluted weighted average common shares 29,682 29,456 29,197 29,603 Earnings (loss) per share: Basic $ 1.15 $ 1.19 $ (2.90) $ 3.63 Diluted $ 1.13 $ 1.17 $ (2.90) $ 3.58 |
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 are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Outstanding stock options 13 124 — 96 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenue | Revenue from external customers by segment are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Segment Revenue: Electronic Materials: CMP slurries $ 135,972 $ 117,680 $ 410,887 $ 359,828 Electronic chemicals 84,140 78,614 244,244 234,693 CMP pads 25,561 24,073 69,887 65,476 Materials technologies 5,396 — 5,396 — Total Electronic Materials 251,069 220,367 730,414 659,997 Performance Materials: PIM 29,605 27,111 81,499 116,732 Wood treatment 19,104 18,801 51,973 44,449 QED 9,738 8,448 24,021 20,885 Total Performance Materials 58,447 54,360 157,493 182,066 Total $ 309,516 $ 274,727 $ 887,907 $ 842,063 |
Schedule of Capital Expenditures by Segment | Capital expenditures by segment are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Capital Expenditures: Electronic Materials $ 6,274 $ 6,141 $ 17,966 $ 19,720 Performance Materials 560 33,550 2,827 79,247 Corporate 1,569 3,900 7,544 8,967 Total $ 8,403 $ 43,591 $ 28,337 $ 107,934 |
Schedule of Segment Adjusted EBITDA | Adjusted EBITDA by segment is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 33,642 $ 34,525 $ (84,636) $ 105,973 Interest expense 9,551 10,406 28,667 33,079 Interest income (11) (131) (47) (589) Income taxes 12,601 12,741 4,038 30,766 Depreciation and amortization 33,927 31,324 98,107 95,516 EBITDA 89,710 88,865 46,129 264,745 Impairment charges 3,090 — 218,658 — Acquisition and integration-related expenses 3,353 2,735 7,889 7,785 Costs related to the Pandemic, net of grants received (200) 112 641 349 Net costs related to restructuring of the wood treatment business 24 (293) 96 (293) Costs related to KMG-Bernuth warehouse fire, net of insurance recovery 26 622 (1,050) 1,220 Consolidated adjusted EBITDA $ 96,003 $ 92,041 $ 272,363 $ 273,806 Segment adjusted EBITDA: Electronic Materials $ 82,521 $ 76,855 $ 244,592 $ 227,662 Performance Materials 25,465 26,959 67,190 84,370 Unallocated corporate expenses (11,983) (11,773) (39,419) (38,226) Consolidated Adjusted EBITDA $ 96,003 $ 92,041 $ 272,363 $ 273,806 |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) - segment | 9 Months Ended | |
Jun. 30, 2021 | Apr. 01, 2021 | |
Business Acquisition [Line Items] | ||
Number of reportable segments | 2 | |
ITS | ||
Business Acquisition [Line Items] | ||
Acquisition of ITS | 100.00% |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Reconciliation of Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Contract with Customer, Liability [Abstract] | |||||
Contract liabilities (current) | $ 9,495 | $ 9,495 | $ 8,501 | ||
Contract liabilities (noncurrent) | 2,003 | 2,003 | $ 1,288 | ||
Change in Contract with Customer, Liability [Abstract] | |||||
Revenue recognized in contract liability | $ 1,012 | $ 400 | $ 4,721 | $ 3,427 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Transaction Price Allocated to Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized on contract liability amounts as of end of period | $ 2,979 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized on contract liability amounts as of end of period | $ 976 |
Revenue, Performance Obligation [Abstract] | |
Revenue expected to be recognized on contract liability, satisfaction period | 3 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 | $ 1,968 |
Revenue, Performance Obligation [Abstract] | |
Revenue expected to be recognized on contract liability, satisfaction period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized on contract liability amounts as of end of period | $ 35 |
Revenue, Performance Obligation [Abstract] | |
Revenue expected to be recognized on contract liability, satisfaction period | 2 years |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||
Purchase consideration of cash acquired | $ 126,129 | $ 0 | |
Additions due to acquisition | 81,960 | ||
Electronic Materials | |||
Business Acquisition [Line Items] | |||
Additions due to acquisition | $ 81,960 | ||
ITS | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 129,071 | ||
Purchase consideration of cash acquired | 126,877 | ||
Fair Value | $ 37,200 | ||
Weighted average useful life | 12 years 2 months 12 days | ||
ITS | Electronic Materials | |||
Business Acquisition [Line Items] | |||
Additions due to acquisition | $ 81,960 |
Business Combinations - Identif
Business Combinations - Identifiable Intangible Assets Acquired (Details) - ITS $ in Thousands | Apr. 01, 2021USD ($) |
Indefinite-lived Intangible Assets [Line Items] | |
Fair Value | $ 37,200 |
Technology and know-how | |
Indefinite-lived Intangible Assets [Line Items] | |
Fair Value | $ 25,400 |
Estimated Useful Life (years) | 10 years |
Customer relationships | |
Indefinite-lived Intangible Assets [Line Items] | |
Fair Value | $ 8,100 |
Estimated Useful Life (years) | 20 years |
Trade name | |
Indefinite-lived Intangible Assets [Line Items] | |
Fair Value | $ 3,700 |
Estimated Useful Life (years) | 10 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Assets: | ||
Derivative financial instruments | $ 10,955 | $ 0 |
Recurring | ||
Assets: | ||
Cash and cash equivalents | 228,506 | 257,354 |
Other long-term investments | 1,438 | 1,214 |
Derivative financial instruments | 10,995 | 27 |
Liabilities: | ||
Derivative financial instruments | 3,322 | 38,157 |
Recurring | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 228,506 | 257,354 |
Other long-term investments | 1,438 | 1,214 |
Derivative financial instruments | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Other long-term investments | 0 | 0 |
Derivative financial instruments | 10,995 | 27 |
Liabilities: | ||
Derivative financial instruments | 3,322 | 38,157 |
Recurring | 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 | Jun. 30, 2021 | Sep. 30, 2020 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw materials | $ 66,599 | $ 66,591 |
Work in process | 19,903 | 15,148 |
Finished goods | 82,645 | 77,395 |
Total | $ 169,147 | $ 159,134 |
Goodwill - Goodwill Rollforward
Goodwill - Goodwill Rollforward (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2021 | Sep. 30, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 718,647,000 | |
Additions due to acquisition | 81,960,000 | |
Foreign currency translation impact | 5,591,000 | |
Impairment | (215,392,000) | |
Goodwill, ending balance | 590,806,000 | |
Accumulated impairment amounts | $ 0 | |
Electronic Materials | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 360,425,000 | |
Additions due to acquisition | 81,960,000 | |
Foreign currency translation impact | 3,684,000 | |
Impairment | 0 | |
Goodwill, ending balance | 446,069,000 | |
Performance Materials | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 358,222,000 | |
Additions due to acquisition | 0 | |
Foreign currency translation impact | 1,907,000 | |
Impairment | (215,392,000) | |
Goodwill, ending balance | $ 144,737,000 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 590,806,000 | $ 590,806,000 | $ 718,647,000 | |||
Goodwill impairment loss | 215,392,000 | |||||
Tax benefit | $ (12,601,000) | $ (12,741,000) | $ (4,038,000) | $ (30,766,000) | ||
Discount rate | 10.75% | 10.75% | ||||
Terminal growth rate | 3.00% | 3.00% | ||||
Additions due to acquisition | $ 81,960,000 | |||||
Wood treatment | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 21,200,000 | 21,200,000 | ||||
Goodwill impairment loss | 3,090,000 | 13,842,000 | ||||
Tax benefit | 606,000 | |||||
Intangible assets | 0 | 0 | ||||
Electronic Materials | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 446,069,000 | 446,069,000 | 360,425,000 | |||
Goodwill impairment loss | 0 | |||||
Additions due to acquisition | 81,960,000 | |||||
Performance Materials | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 144,737,000 | 144,737,000 | $ 358,222,000 | |||
Goodwill impairment loss | 215,392,000 | |||||
Additions due to acquisition | 0 | |||||
Performance Materials | PIM | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 118,568,000 | 118,568,000 | ||||
Goodwill impairment loss | $ 201,550,000 | |||||
Tax benefit | 23,539,000 | |||||
Intangible assets | 581,716,000 | 581,716,000 | ||||
Other intangible assets not subject to amortization | $ 46,000,000 | $ 46,000,000 |
Impairment - Wood Treatment - N
Impairment - Wood Treatment - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Impairment charges | $ 218,658,000 | $ 0 | |||||
Goodwill impairment loss | 215,392,000 | ||||||
Goodwill | $ 590,806,000 | 590,806,000 | $ 718,647,000 | ||||
Tax benefit | (12,601,000) | $ (12,741,000) | (4,038,000) | $ (30,766,000) | |||
Performance Materials | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Goodwill impairment loss | 215,392,000 | ||||||
Goodwill | 144,737,000 | 144,737,000 | $ 358,222,000 | ||||
PIM | Performance Materials | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Intangible assets | 581,716,000 | 581,716,000 | |||||
Goodwill impairment loss | $ 201,550,000 | ||||||
Goodwill | 118,568,000 | 118,568,000 | |||||
Tax benefit | 23,539,000 | ||||||
Wood treatment | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Impairment charges | $ 3,266,000 | ||||||
Intangible assets | 0 | 0 | |||||
Goodwill impairment loss | 3,090,000 | 13,842,000 | |||||
Goodwill | $ 21,200,000 | 21,200,000 | |||||
Tax benefit | $ 606,000 |
Impairment - Wood Treatment - L
Impairment - Wood Treatment - Long-lived Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of property, plant and equipment | $ 218,658 | $ 0 | |||
Goodwill | 215,392 | ||||
Total wood treatment impairment charges | $ 3,090 | $ 0 | 218,658 | $ 0 | |
Wood treatment | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of property, plant and equipment | $ 3,266 | ||||
Goodwill | 3,090 | 13,842 | |||
Total wood treatment impairment charges | 3,090 | 17,108 | |||
Wood treatment | Product technology | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Other intangible assets | 0 | 583 | |||
Wood treatment | Acquired patents and licenses | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Other intangible assets | 0 | 173 | |||
Wood treatment | Customer relationships | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Other intangible assets | 0 | 2,419 | |||
Property, Plant and Equipment | Wood treatment | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of property, plant and equipment | $ 0 | $ 91 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Other long-term assets [Abstract] | ||
Right of use asset | $ 32,849 | $ 30,999 |
Interest rate swap (See Note 12) | 10,955 | 0 |
Vendor contract assets | 1,713 | 2,889 |
SERP investment | 1,438 | 1,214 |
Prepaid unamortized debt issuance cost - revolver | 408 | 537 |
Other long-term assets | 4,441 | 4,368 |
Total | $ 51,804 | $ 40,007 |
Accrued Expenses, Income Taxe_3
Accrued Expenses, Income Taxes Payable And Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 42,233 | $ 46,465 |
Income taxes payable | 15,505 | 16,216 |
Dividends payable | 14,103 | 13,669 |
Asset retirement obligation | 12,097 | 0 |
Contract liabilities (current) | 9,495 | 8,501 |
Current portion of operating lease liability | 7,520 | 6,513 |
Current portion of terminated swap liability (See Note 12) | 5,855 | 0 |
Taxes, other than income taxes | 5,691 | 5,044 |
Goods and services received, not yet invoiced | 3,031 | 3,957 |
Interest rate swap liability (See Note 12) | 2,965 | 11,992 |
Accrued interest | 108 | 29 |
Other | 10,894 | 9,056 |
Total | $ 129,497 | $ 121,442 |
Debt - Total Debt (Details)
Debt - Total Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Less: Unamortized debt issuance costs | $ (12,758) | $ (14,949) |
Total | 915,617 | 921,414 |
Less: Current maturities and short-term debt | (10,650) | (10,650) |
Long-term debt, net of current portion | 904,967 | 910,764 |
Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 928,375 | $ 936,363 |
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 - USD ($) | Jul. 02, 2021 | Jul. 01, 2021 | Jun. 30, 2021 |
Credit Agreement | Line of credit | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility, outstanding | $ 0 | ||
Amended Credit Agreement | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Borrowings outstanding | $ 350,000,000 | $ 200,000,000 | |
Amended Credit Agreement | Line of credit | |||
Debt Instrument [Line Items] | |||
Available credit remaining | $ 200,000,000 |
Debt - Principal Repayments (De
Debt - Principal Repayments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Principal Repayments | ||
Total | $ 915,617 | $ 921,414 |
Term loan facility | ||
Principal Repayments | ||
Remainder of 2021 | 2,662 | |
2022 | 10,650 | |
2023 | 10,650 | |
2024 | 10,650 | |
2025 | 10,650 | |
Greater than 5 years | 883,113 | |
Total | $ 928,375 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020 | Jun. 30, 2021 | |
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 | $ 14,109 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Notional Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Interest rate swap contract | Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 556,808 | $ 571,000 |
Foreign exchange contracts | Buy | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative notional amount | 4,263 | 8,054 |
Foreign exchange contracts | Sell | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 25,355 | $ 25,105 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value of Derivative Instruments in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Derivatives designated as hedging instruments | Interest rate swap contract | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 10,955 | $ 0 |
Derivative Liabilities | 0 | 0 |
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 | 2,965 | 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 | 0 | 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 | 357 | 165 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 40 | 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 | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
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 | $ (787) | $ (3,262) | $ (4,041) | $ (5,799) |
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 | (2,786) | 0 | (6,501) | 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 | $ (74) | $ (128) | $ (711) | $ (390) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest rate swap contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (6,284) | $ (3,694) | $ 6,628 | $ (23,034) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($)party | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Environmental Exit Cost [Line Items] | ||||
Insurance recoveries to date | $ 1,076 | |||
Abrasive particle supply agreement | ||||
Environmental Exit Cost [Line Items] | ||||
Purchase obligation | $ 12,918 | 12,918 | ||
Non-water Based Carrier Fluid | ||||
Environmental Exit Cost [Line Items] | ||||
Purchase obligation | 11,311 | 11,311 | ||
KMG-Bernuth | ||||
Environmental Exit Cost [Line Items] | ||||
Remediation expense recognized | 26 | 26 | $ 1,688 | |
Estimated remediation cost | $ 22,000 | |||
Number of other parties in agreement | party | 7 | |||
Estimated reserve, remaining | $ 204 | $ 204 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 1,074,313 | |||
Other comprehensive income (loss), net of tax | $ 471 | $ 8,752 | 23,711 | $ (8,170) |
Net Change | 471 | 8,752 | 23,711 | (8,658) |
Balance at end of period | 981,247 | 1,025,034 | 981,247 | 1,025,034 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | (497) |
Income tax (expense) benefit | 0 | 0 | 0 | 9 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (488) |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 9,136 | (40,648) | (14,104) | (23,238) |
Balance at end of period | 9,607 | (31,896) | 9,607 | (31,896) |
Accumulated foreign currency adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Foreign currency translation adjustment | 2,648 | 9,048 | 10,428 | 5,113 |
Income tax (expense) benefit | (73) | 38 | (43) | 99 |
Other comprehensive income (loss), net of tax | 2,575 | 9,086 | 10,385 | 5,212 |
Interest rate swap contract | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Income tax (expense) benefit | 607 | 98 | (3,844) | 3,853 |
Other comprehensive income (loss), net of tax | (2,104) | (334) | 13,326 | (13,382) |
Change in fair value | (6,284) | (3,694) | 6,628 | (23,034) |
Reclassification adjustment into earnings | $ 3,573 | $ 3,262 | $ 10,542 | $ 5,799 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 12,601 | $ 12,741 | $ 4,038 | $ 30,766 |
Effective tax rate | 27.20% | 27.00% | (5.00%) | 22.50% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net income (loss) available to common shares | $ 33,642 | $ 34,525 | $ (84,636) | $ 105,973 |
Denominator: | ||||
Weighted average common shares (in shares) | 29,260 | 29,079 | 29,197 | 29,157 |
Weighted average effect of dilutive securities | ||||
Weighted average effect of dilutive securities (in shares) | 422 | 377 | 0 | 446 |
Diluted weighted average common shares (in shares) | 29,682 | 29,456 | 29,197 | 29,603 |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 1.15 | $ 1.19 | $ (2.90) | $ 3.63 |
Diluted (in dollars per share) | $ 1.13 | $ 1.17 | $ (2.90) | $ 3.58 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding stock options (in shares) | 13 | 124 | 0 | 96 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Jun. 30, 2021segment | |
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 | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 309,516 | $ 274,727 | $ 887,907 | $ 842,063 |
Electronic Materials | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 251,069 | 220,367 | 730,414 | 659,997 |
Electronic Materials | CMP slurries | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 135,972 | 117,680 | 410,887 | 359,828 |
Electronic Materials | Electronic chemicals | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 84,140 | 78,614 | 244,244 | 234,693 |
Electronic Materials | CMP pads | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 25,561 | 24,073 | 69,887 | 65,476 |
Electronic Materials | Materials technologies | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,396 | 5,396 | ||
Performance Materials | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 58,447 | 54,360 | 157,493 | 182,066 |
Performance Materials | PIM | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 29,605 | 27,111 | 81,499 | 116,732 |
Performance Materials | Wood treatment | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 19,104 | 18,801 | 51,973 | 44,449 |
Performance Materials | QED | Operating segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 9,738 | $ 8,448 | $ 24,021 | $ 20,885 |
Segment Reporting - Capital Exp
Segment Reporting - Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 8,403 | $ 43,591 | $ 28,337 | $ 107,934 |
Operating segment | Electronic Materials | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 6,274 | 6,141 | 17,966 | 19,720 |
Operating segment | Performance Materials | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 560 | 33,550 | 2,827 | 79,247 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 1,569 | $ 3,900 | $ 7,544 | $ 8,967 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation from Segment Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) | $ 33,642 | $ 34,525 | $ (84,636) | $ 105,973 |
Interest expense | 9,551 | 10,406 | 28,667 | 33,079 |
Interest income | (11) | (131) | (47) | (589) |
Income taxes | 12,601 | 12,741 | 4,038 | 30,766 |
Depreciation and amortization | 33,927 | 31,324 | 98,107 | 95,516 |
EBITDA | 89,710 | 88,865 | 46,129 | 264,745 |
Impairment charges | 3,090 | 0 | 218,658 | 0 |
Acquisition and integration-related expenses | 3,353 | 2,735 | 7,889 | 7,785 |
Costs related to the Pandemic, net of grants received | (200) | 112 | 641 | 349 |
Net costs related to restructuring of the wood treatment business | 24 | (293) | 96 | (293) |
Costs related to KMG-Bernuth warehouse fire, net of insurance recovery | 26 | 622 | (1,050) | 1,220 |
Consolidated adjusted EBITDA | 96,003 | 92,041 | 272,363 | 273,806 |
Operating segment | Electronic Materials | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated adjusted EBITDA | 82,521 | 76,855 | 244,592 | 227,662 |
Operating segment | Performance Materials | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated adjusted EBITDA | 25,465 | 26,959 | 67,190 | 84,370 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expenses | $ (11,983) | $ (11,773) | $ (39,419) | $ (38,226) |