Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | MATTHEWS INTERNATIONAL CORP |
Entity Central Index Key | 63296 |
Current Fiscal Year End Date | -21 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 32,976,591 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $69,484 | $75,604 |
Accounts receivable, net | 267,571 | 282,730 |
Inventories | 154,501 | 152,842 |
Deferred income taxes | 13,690 | 13,283 |
Other current assets | 41,020 | 49,456 |
Total current assets | 546,266 | 573,915 |
Investments | 27,088 | 23,130 |
Property, plant and equipment: Cost | 460,379 | 459,388 |
Less accumulated depreciation | -254,490 | -250,073 |
Property, plant, and equipment, net | 205,889 | 209,315 |
Deferred income taxes | 5,592 | 4,019 |
Other assets | 18,590 | 20,027 |
Goodwill | 805,132 | 819,467 |
Other intangible assets, net | 362,915 | 381,862 |
Total assets | 1,971,472 | 2,031,735 |
Current liabilities: | ||
Long-term debt, current maturities | 14,671 | 15,228 |
Trade accounts payable | 53,008 | 72,040 |
Accrued compensation | 49,064 | 60,690 |
Accrued income taxes | 2,955 | 7,079 |
Deferred income taxes | 101 | 235 |
Other current liabilities | 101,653 | 98,011 |
Total current liabilities | 221,452 | 253,283 |
Long-term debt | 705,481 | 714,027 |
Accrued pension | 78,956 | 78,550 |
Postretirement benefits | 20,421 | 20,351 |
Deferred income taxes | 124,035 | 129,335 |
Other liabilities | 55,780 | 53,296 |
Total liabilities | 1,206,125 | 1,248,842 |
Shareholders' equity-Matthews: | ||
Common stock | 36,334 | 36,334 |
Additional paid-in capital | 110,787 | 113,225 |
Retained earnings | 816,689 | 806,040 |
Accumulated other comprehensive loss | -92,985 | -66,817 |
Treasury stock, at cost | -109,414 | -109,950 |
Total shareholders' equity-Matthews | 761,411 | 778,832 |
Noncontrolling interests | 3,936 | 4,061 |
Total shareholders' equity | 765,347 | 782,893 |
Total liabilities and shareholders' equity | $1,971,472 | $2,031,735 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||
Sales | $343,584 | $229,945 |
Cost of sales | -218,914 | -148,569 |
Gross profit | 124,670 | 81,376 |
Selling and administrative expenses | -99,085 | -66,697 |
Operating profit | 25,585 | 14,679 |
Investment income | 271 | 874 |
Interest expense | -5,333 | -2,901 |
Other deductions, net | -435 | -665 |
Income before income taxes | 20,088 | 11,987 |
Income taxes | -5,252 | -4,081 |
Net income | 14,836 | 7,906 |
Net loss attributable to noncontrolling interests | 115 | 8 |
Net income attributable to Matthews shareholders | $14,951 | $7,914 |
Earnings per share attributable to Matthews shareholders: | ||
Basic (in dollars per share) | $0.45 | $0.29 |
Diluted (in dollars per share) | $0.45 | $0.29 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net income (loss): | $14,836 | $7,906 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | -26,292 | 2,689 |
Pension plans and other postretirement benefits | 925 | 528 |
Unrecognized gain (loss) on derivatives: | ||
Net change from periodic revaluation | -1,468 | 577 |
Net amount reclassified to earnings | 657 | 656 |
Net change in unrecognized gain (loss) on derivatives | -811 | 1,233 |
Other comprehensive income (loss), net of tax | -26,178 | 4,450 |
Comprehensive income (loss) | -11,342 | 12,356 |
Matthews [Member] | ||
Net income (loss): | 14,951 | 7,914 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | -26,282 | 2,546 |
Pension plans and other postretirement benefits | 925 | 528 |
Unrecognized gain (loss) on derivatives: | ||
Net change from periodic revaluation | -1,468 | 577 |
Net amount reclassified to earnings | 657 | 656 |
Net change in unrecognized gain (loss) on derivatives | -811 | 1,233 |
Other comprehensive income (loss), net of tax | -26,168 | 4,307 |
Comprehensive income (loss) | -11,217 | 12,221 |
Noncontrolling Interest [Member] | ||
Net income (loss): | -115 | -8 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | -10 | 143 |
Pension plans and other postretirement benefits | 0 | 0 |
Unrecognized gain (loss) on derivatives: | ||
Net change from periodic revaluation | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 |
Net change in unrecognized gain (loss) on derivatives | 0 | |
Other comprehensive income (loss), net of tax | -10 | 143 |
Comprehensive income (loss) | ($125) | $135 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Non-controlling Interests [Member] | Total |
In Thousands | |||||||
Balance at Sep. 30, 2013 | $36,334 | $47,315 | $775,762 | ($26,940) | ($283,006) | $3,465 | $552,930 |
Net income | 0 | 0 | 7,914 | 0 | 0 | -8 | 7,906 |
Pension adjustments | 0 | 0 | 0 | 528 | 0 | 0 | 528 |
Translation adjustment | 0 | 0 | 0 | 2,546 | 0 | 143 | 2,689 |
Fair value of derivatives | 0 | 0 | 0 | 1,233 | 0 | 0 | 1,233 |
Comprehensive income (loss) | 12,356 | ||||||
Stock-based compensation | 0 | 1,574 | 0 | 0 | 0 | 0 | 1,574 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | -4,195 | 0 | -4,195 |
Issuance of treasury stock | 0 | -6,268 | 0 | 0 | 8,079 | 0 | 1,811 |
Cancellation of treasury stock | 3,068 | -3,068 | |||||
Dividends | 0 | 0 | -3,026 | 0 | 0 | 0 | -3,026 |
Balance at Dec. 31, 2013 | 36,334 | 45,689 | 780,650 | -22,633 | -282,190 | 3,600 | 561,450 |
Balance at Sep. 30, 2014 | 36,334 | 113,225 | 806,040 | -66,817 | -109,950 | 4,061 | 782,893 |
Net income | 0 | 0 | 14,951 | 0 | 0 | -115 | 14,836 |
Pension adjustments | 0 | 0 | 0 | 925 | 0 | 0 | 925 |
Translation adjustment | 0 | 0 | 0 | -26,282 | 0 | -10 | -26,292 |
Fair value of derivatives | 0 | 0 | 0 | -811 | 0 | 0 | -811 |
Comprehensive income (loss) | -11,342 | ||||||
Stock-based compensation | 0 | 2,525 | 0 | 0 | 0 | 2,525 | |
Purchase of treasury stock | 0 | 0 | 0 | 0 | -8,016 | 0 | -8,016 |
Issuance of treasury stock | 0 | -6,164 | 0 | 0 | 9,753 | 0 | 3,589 |
Cancellation of treasury stock | 1,201 | -1,201 | |||||
Dividends | 0 | 0 | -4,302 | 0 | 0 | 0 | -4,302 |
Balance at Dec. 31, 2014 | $36,334 | $110,787 | $816,689 | ($92,985) | ($109,414) | $3,936 | $765,347 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | ||
Purchase of treasury stock, shares (in shares) | 173,749 | 102,177 |
Issuance of treasury stock, shares (in shares) | 303,214 | 259,208 |
Cancellation of treasury stock, shares (in shares) | 32,739 | 74,930 |
Dividends, per share (in dollars per share) | $0.13 | $0.11 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net income | $14,836 | $7,906 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,428 | 9,264 |
Stock-based compensation expense | 2,525 | 1,574 |
(Increase) decrease in deferred taxes | -7,605 | 90 |
Gain on sale of assets | -31 | -598 |
Unrealized gain on investments | 0 | -700 |
Changes in working capital items | -12,704 | -7,554 |
(Increase) decrease in other assets | -98 | 2,645 |
Decrease in other liabilities | -1,395 | -3,524 |
Increase in pension and postretirement benefits | 1,945 | 2,318 |
Other, net | -3,609 | 851 |
Net cash provided by operating activities | 9,292 | 12,272 |
Cash flows from investing activities: | ||
Capital expenditures | -9,268 | -4,569 |
Proceeds from sale of assets | 629 | 12 |
Proceeds from sale of subsidiary | 10,418 | 0 |
Net cash provided by (used in) investing activities | 1,779 | -4,557 |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 10,928 | 7,683 |
Payments on long-term debt | -17,925 | -6,263 |
Proceeds from the sale of treasury stock | 3,727 | 1,655 |
Purchases of treasury stock | -8,016 | -3,995 |
Dividends | -4,302 | -3,026 |
Net cash used in financing activities | -15,588 | -3,946 |
Effect of exchange rate changes on cash | -1,603 | 137 |
Net change in cash and cash equivalents | ($6,120) | $3,906 |
Nature_of_Operations
Nature of Operations | 3 Months Ended |
Dec. 31, 2014 | |
Nature of Operations [Abstract] | |
Nature of Operations | Note 1.  Nature of Operations |
Matthews International Corporation ("Matthews" or the "Company"), founded in 1850 and incorporated in Pennsylvania in 1902, is a provider principally of brand solutions, memorialization products and industrial products.  Brand solutions includes brand development, deployment and management; printing plates and cylinders; pre-media services and imaging services for consumer packaged goods and retail customers; merchandising display systems; and marketing and design services. Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets and cremation equipment for the cemetery and funeral home industries. Industrial products include marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. | |
The Company has manufacturing and marketing facilities in the United States, Central and South America, Canada, Europe, Australia and Asia. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 2.  Basis of Presentation |
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information for commercial and industrial companies and the instructions to Form 10‑Q and Rule 10‑01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10‑K for the year ended September 30, 2014. The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control. All intercompany accounts and transactions have been eliminated. | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassifications and Revision: | |
Certain amounts in the consolidated financial statements of the prior year have been revised to conform to the current period's presentation. These revisions are not material to the prior year presentation. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 3.  Fair Value Measurements | ||||||||||||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a three level fair value hierarchy to prioritize the inputs used in valuations, as defined below: | |||||||||||||||||||||||||||||||||
Level 1:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||
Level 2:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||||||||||||||||||
Level 3:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Unobservable inputs for the asset or liability. | |||||||||||||||||||||||||||||||||
The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: | |||||||||||||||||||||||||||||||||
31-Dec-14 | 30-Sep-14 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Derivatives (1) | $ | - | $ | 696 | $ | 696 | $ | - | $ | 2,457 | - | $ | 2,457 | ||||||||||||||||||||
Trading securities | $ | 19,038 | - | - | $ | 19,038 | $ | 19,038 | - | - | $ | 19,038 | |||||||||||||||||||||
Total assets at | $ | 19,038 | $ | 696 | - | $ | 19,734 | $ | 19,038 | $ | 2,457 | - | $ | 21,495 | |||||||||||||||||||
  fair value | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Derivatives (1) | - | $ | 1,696 | - | $ | 1,696 | $ | - | $ | 2,127 | - | $ | 2,127 | ||||||||||||||||||||
Total liabilities | - | $ | 1,696 | - | $ | 1,696 | $ | - | $ | 2,127 | - | $ | 2,127 | ||||||||||||||||||||
  at fair value | |||||||||||||||||||||||||||||||||
(1)Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories
Inventories | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 4.  Inventories | ||||||||
Inventories consisted of the following: | |||||||||
31-Dec-14 | 30-Sep-14 | ||||||||
Raw materials | $ | 45,486 | $ | 46,152 | |||||
Work in process | 39,147 | 38,631 | |||||||
Finished goods | 69,868 | 68,059 | |||||||
$ | 154,501 | $ | 152,842 |
Debt
Debt | 3 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Debt [Abstract] | ||||||||||||||||||
Debt | Note 5.  Debt | |||||||||||||||||
The Company has a domestic Revolving Credit Facility with a syndicate of financial institutions. In connection with the acquisition of Schawk in July 2014, the Company entered into amendments to the Revolving Credit Facility to amend certain terms of the Revolving Credit Facility and increase the maximum amount of borrowings available under the facility from $500,000 to $900,000. Borrowings under the amended facility bear interest at LIBOR plus a factor ranging from .75% to 2.00% (1.75% at December 31, 2014) based on the Company's leverage ratio. The leverage ratio is defined as net indebtedness divided by EBITDA (earnings before interest, taxes, depreciation and amortization). The Company is required to pay an annual commitment fee ranging from .15% to .25% (based on the Company's leverage ratio) of the unused portion of the facility. | ||||||||||||||||||
The Revolving Credit Facility requires the Company to maintain certain leverage and interest coverage ratios. A portion of the facility (not to exceed $30,000) is available for the issuance of trade and standby letters of credit. Outstanding borrowings on the Revolving Credit Facility at December 31, 2014 and September 30, 2014 were $670,000 and $680,000, respectively. The weighted-average interest rate on outstanding borrowings at December 31, 2014 and December 31, 2013 was 2.51% and 2.54%, respectively. | ||||||||||||||||||
The Company has entered into the following interest rate swaps: | ||||||||||||||||||
Effective Date | Amount | Fixed Interest Rate | Interest Rate Spread at December 31, 2014 | |||||||||||||||
Maturity Date | ||||||||||||||||||
Oct-11 | Â Â 25,000 | 1.67% | 1.75% | Oct-15 | ||||||||||||||
Mar-12 | Â Â 25,000 | 2.44% | 1.75% | Mar-15 | ||||||||||||||
Jun-12 | Â Â 40,000 | 1.88% | 1.75% | Jun-22 | ||||||||||||||
Aug-12 | Â Â 35,000 | 1.74% | 1.75% | Jun-22 | ||||||||||||||
Sep-12 | Â Â 25,000 | 3.03% | 1.75% | Dec-15 | ||||||||||||||
Sep-12 | Â Â 25,000 | 1.24% | 1.75% | Mar-17 | ||||||||||||||
Nov-12 | Â Â 25,000 | 1.33% | 1.75% | Nov-15 | ||||||||||||||
May-14 | Â Â 25,000 | 1.35% | 1.75% | May-18 | ||||||||||||||
Nov-14 | Â Â 25,000 | 1.26% | 1.75% | Jun-18 | ||||||||||||||
Mar-15 | Â Â 25,000 | 1.49% | 1.75% | Mar-19 | ||||||||||||||
The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. The interest rate swaps have been designated as cash flow hedges of the future variable interest payments under the Revolving Credit Facility which are considered probable of occurring. Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective. | ||||||||||||||||||
The fair value of the interest rate swaps reflected an unrealized loss, net of unrealized gains, of $1,000 ($610 after tax) at December 31, 2014 and an unrealized gain, net of unrealized losses, of $330 ($201 after tax) at September 30, 2014. The net unrealized gain and loss are included in shareholders' equity as part of accumulated other comprehensive income ("AOCI"). Assuming market rates remain constant with the rates at December 31, 2014, a loss (net of tax) of approximately $859 included in AOCI is expected to be recognized in earnings over the next twelve months. | ||||||||||||||||||
At December 31, 2014 and September 30, 2014, the interest rate swap contracts were reflected in the consolidated balance sheets as follows: | ||||||||||||||||||
Derivatives | 31-Dec-14 | 30-Sep-14 | ||||||||||||||||
Current assets: | ||||||||||||||||||
Other current assets | $ | 99 | $ | 324 | ||||||||||||||
Long-term assets: | ||||||||||||||||||
 Other assets | 597 | 2,133 | ||||||||||||||||
Current liabilities: | ||||||||||||||||||
Other current liabilities | (1,508 | ) | (1,808 | ) | ||||||||||||||
Long-term liabilities: | ||||||||||||||||||
Other liabilities | (188 | ) | (319 | ) | ||||||||||||||
Total derivatives | $ | (1,000 | ) | $ | 330 | |||||||||||||
The loss recognized on derivatives was as follows: | ||||||||||||||||||
Location of | ||||||||||||||||||
Derivatives in | Loss | Amount of Loss | ||||||||||||||||
Cash Flow | Recognized in | Recognized in Income | ||||||||||||||||
Hedging | Income on | on Derivatives | ||||||||||||||||
Relationships | Derivative | Three Months Ended December 31, | ||||||||||||||||
  2014 | 2013 | |||||||||||||||||
    | ||||||||||||||||||
Interest rate swaps | Interest expense | ($1,077) | ($1,076) | |||||||||||||||
The Company recognized the following gains or losses in AOCI: | ||||||||||||||||||
Location of | ||||||||||||||||||
Gain or | ||||||||||||||||||
   (Loss) | ||||||||||||||||||
Reclassified | Amount of Loss | |||||||||||||||||
Amount of Gain or (Loss) | from | Reclassified from | ||||||||||||||||
Derivatives in | Recognized in | AOCI into | AOCI into Income | |||||||||||||||
Cash Flow | AOCI on Derivatives | Income | (Effective Portion*) | |||||||||||||||
Hedging Relationships | 31-Dec-14 | 31-Dec-13 | (Effective | 31-Dec-14 | 31-Dec-13 | |||||||||||||
Portion*) | ||||||||||||||||||
Interest rate swaps | ($1,468) | $577 | Interest expense | ($657) | ($656) | |||||||||||||
*There is no ineffective portion or amount excluded from effectiveness testing. | ||||||||||||||||||
The Company, through certain of its European subsidiaries, has a credit facility with a European bank. The maximum amount of borrowings available under this facility is 25.0 million Euros ($30,248). Outstanding borrowings under the credit facility totaled 21.1 million Euros ($25,589) and 17.5 million Euros ($22,055) at December 31, 2014 and September 30, 2014, respectively. The weighted-average interest rate on outstanding borrowings under this facility at December 31, 2014 and 2013 was 1.27% and 1.37%, respectively. | ||||||||||||||||||
The Company, through its German subsidiary, Saueressig GmbH & Co. KG ("Saueressig"), has several loans with various European banks. Outstanding borrowings under these loans totaled 1.5 million Euros ($1,757) and 1.2 million Euros ($1,576) at December 31, 2014 and September 30, 2014, respectively. The weighted-average interest rate on outstanding borrowings of Saueressig at December 31, 2014 and 2013 was 4.24% and 4.04%, respectively. | ||||||||||||||||||
The Company, through its German subsidiary, Wetzel GmbH ("Wetzel"), has several loans with various European banks. Outstanding borrowings on these loans totaled 2.7 million Euros ($3,264) and 2.9 million Euros ($3,624) at December 31, 2014 and September 30, 2014. The weighted-average interest rate on outstanding borrowings of Wetzel at December 31, 2014 and 2013 was 5.74% and 7.53%, respectively. | ||||||||||||||||||
The Company, through its wholly-owned subsidiary, Matthews International S.p.A., has several loans with various Italian banks. Outstanding borrowings on these loans totaled 4.5 million Euros ($5,418) and 5.5 million Euros ($6,922) at December 31, 2014 and September 30, 2014, respectively. Matthews International S.p.A. also has three lines of credit totaling 11.3 million Euros ($13,708) with the same Italian banks. Outstanding borrowings on these lines were 4.1 million Euros ($4,935) and 4.8 million Euros ($6,063) at December 31, 2014 and September 30, 2014, respectively. The weighted-average interest rate on outstanding Matthews International S.p.A. borrowings at December 31, 2014 and 2013 was 3.18% and 3.16%, respectively. | ||||||||||||||||||
As of December 31, 2014 and September 30, 2014 the fair value of the Company's long-term debt, including current maturities, approximated the carrying value included in the Condensed Consolidated Balance Sheet. |
Share_Based_Payments
Share Based Payments | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-Based Payments [Abstract] | |||||||||||||||||
Share-Based Payments | Note 6.  Share-Based Payments | ||||||||||||||||
The Company maintains an equity incentive plan (the "2012 Equity Incentive Plan") that provides for grants of stock options, restricted shares, stock-based performance units and certain other types of stock-based awards. The Company also maintains an equity incentive plan (the "2007 Equity Incentive Plan") and a stock incentive plan (the "1992 Incentive Stock Plan") that previously provided for grants of stock options, restricted shares and certain other types of stock-based awards. Under the 2012 Equity Incentive Plan, which has a ten-year term, the maximum number of shares available for grants or awards is an aggregate of 2,500,000. There will be no further grants under the 2007 Equity Incentive Plan or the 1992 Incentive Stock Plan. At December 31, 2014, there were 1,496,798 shares reserved for future issuance under the 2012 Equity Incentive Plan. All plans are administered by the Compensation Committee of the Board of Directors. | |||||||||||||||||
The option price for each stock option granted under any of the plans may not be less than the fair market value of the Company's common stock on the date of grant. Outstanding stock options are generally exercisable in one-third increments upon the attainment of pre-defined levels of appreciation in the market value of the Company's Class A Common Stock. In addition, options generally vest in one-third increments after three, four and five years, respectively, from the grant date (but, in any event, not until the attainment of the market value thresholds). The options expire on the earlier of ten years from the date of grant, upon employment termination, or within specified time limits following voluntary employment termination (with the consent of the Company), retirement or death. The Company generally settles employee stock option exercises with treasury shares. | |||||||||||||||||
With respect to outstanding restricted share grants, for grants made prior to fiscal 2013, generally one-half of the shares vest on the third anniversary of the grant, with the remaining one-half of the shares vesting in one-third increments upon attainment of pre-defined levels of appreciation in the market value of the Company's Class A Common Stock. For grants made in and after fiscal 2013, generally one-half of the shares vest on the third anniversary of the grant, one-quarter of the shares vest in one-third increments upon the attainment of pre-defined levels of adjusted earnings per share, and the remaining one-quarter of the shares vest in one-third increments upon attainment of pre-defined levels of appreciation in the market value of the Company's Class A Common Stock. Additionally, restricted shares cannot vest until the first anniversary of the grant date. Unvested restricted shares generally expire on the earlier of five years from the date of grant, upon employment termination, or within specified time limits following voluntary employment termination (with the consent of the Company), retirement or death. The Company issues restricted shares from treasury shares. | |||||||||||||||||
For the three-month periods ended December 31, 2014 and 2013, total stock-based compensation cost totaled $2,525 and $1,574, respectively. The associated future income tax benefit recognized was $985 and $614 for the three-month periods ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
For the three-month periods ended December 31, 2014 and 2013, the amount of cash received from the exercise of stock options was $3,727 and $1,855, respectively. In connection with these exercises, the tax benefits realized by the Company for the three-month periods ended December 31, 2014 and 2013 were $315 and $177, respectively. | |||||||||||||||||
The transactions for restricted stock for the three months ended December 31, 2014 were as follows: | |||||||||||||||||
Weighted- | |||||||||||||||||
average | |||||||||||||||||
grant-date | |||||||||||||||||
Shares | fair value | ||||||||||||||||
Non-vested at September 30, 2014 | 575,150 | $ | 33.83 | ||||||||||||||
Granted | 205,370 | 40.13 | |||||||||||||||
Vested | (138,584 | ) | 34.76 | ||||||||||||||
Expired or forfeited | (32,739 | ) | 24.23 | ||||||||||||||
Non-vested at December 31, 2014 | 609,197 | 36.26 | |||||||||||||||
As of December 31, 2014, the total unrecognized compensation cost related to unvested restricted stock was $13,585 and is expected to be recognized over a weighted average period of 2.1 years. | |||||||||||||||||
The transactions for shares under options for the quarter ended December 31, 2014 were as follows: | |||||||||||||||||
Weighted- | |||||||||||||||||
Weighted- | average | Aggregate | |||||||||||||||
average | remaining | intrinsic | |||||||||||||||
Shares | exercise price | contractual term | value | ||||||||||||||
Outstanding, September 30, 2014 | 512,322 | $38.62 | |||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (97,844 | ) | 38.09 | ||||||||||||||
Expired or forfeited | (68,557 | ) | 36.52 | ||||||||||||||
Outstanding, December 31, 2014 | 345,921 | 39.19 | 1.4 | $3,280 | |||||||||||||
Exercisable, December 31, 2014 | 101,933 | 38.76 | 1.3 | $1,010 | |||||||||||||
No options vested during the three months ended December 31, 2014 and 2013, respectively. The intrinsic value of options (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) exercised during the three-month periods ended December 31, 2014 and 2013 was $841 and $488, respectively. | |||||||||||||||||
The transactions for non-vested options for the quarter ended December 31, 2014 were as follows: | |||||||||||||||||
Weighted-average | |||||||||||||||||
grant-date | |||||||||||||||||
Non-vested shares | Shares | fair value | |||||||||||||||
Non-vested at September 30, 2014 | 312,442 | $11.21 | |||||||||||||||
Expired or forfeited | (68,454 | ) | 11.7 | ||||||||||||||
Non-vested at December 31, 2014 | 243,988 | 11.07 | |||||||||||||||
The fair value of each restricted stock grant is estimated on the date of grant using a binomial lattice valuation model. The following table indicates the assumptions used in estimating fair value of restricted stock granted during the periods ended December 31, 2014 and 2013. | |||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 22.2 | % | 26.6 | % | |||||||||||||
Dividend yield | 1 | % | 1.1 | % | |||||||||||||
Average risk-free interest rate | 1.7 | % | 1.4 | % | |||||||||||||
Average expected term (years) | 1.8 | 2 | |||||||||||||||
The risk-free interest rate is based on United States Treasury yields at the date of grant. The dividend yield is based on the most recent dividend payment and average stock price over the 12 months prior to the grant date. Expected volatilities are based on the historical volatility of the Company's stock price. The expected term for grants in the years ended September 30, 2014, 2013 and 2012 represents an estimate of the average period of time for restricted shares to vest. The option characteristics for each grant are considered separately for valuation purposes. | |||||||||||||||||
The Company maintains the 1994 Director Fee Plan, and, after approval by the Company's shareholders in February 2014, the 2014 Director Fee Plan (collectively, the "Director Fee Plans"). After adoption of the 2014 Director Fee Plan, there will be no further fees or share-based awards under the 1994 Director Fee Plan. Under the 2014 Director Fee Plan, directors (except for the Chairman of the Board) who are not also officers of the Company each receive, as an annual retainer fee for fiscal 2015, either cash or shares of the Company's Class A Common Stock with a value equal to $75. The annual retainer fee for fiscal 2015, paid to a non-employee Chairman of the Board is $175. Where the annual retainer fee is provided in shares, each director may elect to be paid these shares on a current basis or have such shares credited to a deferred stock account as phantom stock, with such shares to be paid to the director subsequent to leaving the Board. The value of deferred shares is recorded in other liabilities. A total of 17,005 shares had been deferred under the Director Fee Plans at December 31, 2014. Additionally, directors who are not also officers of the Company each receive an annual stock-based grant (non-statutory stock options, stock appreciation rights and/or restricted shares) with a value of $110 for fiscal 2015. A total of 22,300 stock options have been granted under the Director Fee Plans. At December 31, 2014, there were no options outstanding. Additionally, 120,503 shares of restricted stock have been granted under the Director Fee Plans, 37,457 of which were unvested at December 31, 2014. A total of 150,000 shares have been authorized to be issued under the 2014 Director Fee Plan. |
Earnings_Per_Share_Attributabl
Earnings Per Share Attributable to Matthews Shareholders | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share Attributable to Matthews Shareholders [Abstract] | |||||||||
Earnings Per Share Attributable to Matthews Shareholders | Note 7.  Earnings Per Share Attributable to Matthews Shareholders | ||||||||
The information used to compute earnings per share attributable to Matthews' common shareholders was as follows: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net income attributable to Matthews shareholders | $ | 14,951 | $ | 7,914 | |||||
Less: dividends and undistributed earnings | 5 | 41 | |||||||
allocated to participating securities | |||||||||
Net income available to Matthews shareholders | $ | 14,946 | $ | 7,873 | |||||
Weighted-average shares outstanding (in thousands): | |||||||||
Basic shares | 32,919 | 27,125 | |||||||
Effect of dilutive securities | 174 | 227 | |||||||
Diluted shares | 33,093 | 27,352 | |||||||
There were no anti-dilutive securities for the three months ended December 31, 2014 or 2013. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Pension and Other Postretirement Benefit Plans [Abstract] | |||||||||||||||||
Pension and Other Postretirement Benefit Plans | Note 8.  Pension and Other Postretirement Benefit Plans | ||||||||||||||||
The Company provides defined benefit pension and other postretirement plans to certain employees. Net periodic pension and other postretirement benefit cost for the plans included the following: | |||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 1,655 | $ | 1,582 | $ | 114 | $ | 109 | |||||||||
Interest cost | 2,145 | 2,213 | 221 | 230 | |||||||||||||
Expected return on plan assets | (2,470 | ) | (2,396 | ) | - | - | |||||||||||
Amortization: | |||||||||||||||||
   Prior service cost | (45 | ) | (52 | ) | (49 | ) | (22 | ) | |||||||||
   Net actuarial loss (gain) | 1,564 | 991 | - | (49 | ) | ||||||||||||
Net benefit cost | $ | 2,849 | $ | 2,338 | $ | 286 | $ | 268 | |||||||||
Benefit payments under the Company's principal retirement plan are made from plan assets, while benefit payments under the postretirement benefit plan are made from the Company's operating funds. Under IRS regulations, the Company is not required to make any significant contributions to its principal retirement plan in fiscal year 2015. | |||||||||||||||||
Contributions made and anticipated for fiscal year 2015 are as follows: | |||||||||||||||||
Contributions | Pension | Other Postretirement | |||||||||||||||
Contributions during the three months ended December 31, 2014: | |||||||||||||||||
   Supplemental retirement plan | $ | 181 | $ | - | |||||||||||||
   Other postretirement plan | - | 231 | |||||||||||||||
Additional contributions expected in fiscal 2015: | |||||||||||||||||
   Supplemental retirement plan | 552 | - | |||||||||||||||
   Other postretirement plan | - | 695 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||
Accumulated Other Comprehensive Income | Note 9.  Accumulated Other Comprehensive Income | |||||||||||||||||
The change in AOCI by component, net of tax, for the three month periods ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||
Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||||||||
Attributable to Matthews: | ||||||||||||||||||
Balance, September 30, 2013Â | $ | (30,100 | ) | $ | 3,714 | $ | (554 | ) | $ | (26,940 | ) | |||||||
OCI before reclassification | - | 2,546 | 577 | 3,123 | ||||||||||||||
Amounts reclassified from AOCI | Â (a) | 528 | - | (b) | 656 | 1,184 | ||||||||||||
Net current-period OCI | 528 | 2,546 | 1,233 | 4,307 | ||||||||||||||
Balance, December 31, 2013 | $ | (29,572 | ) | $ | 6,260 | $ | 679 | $ | (22,633 | ) | ||||||||
Attributable to noncontrolling interest: | ||||||||||||||||||
Balance, September 30, 2013 | - | $ | 401 | - | $ | 401 | ||||||||||||
OCI before reclassification | - | 143 | - | 143 | ||||||||||||||
Net current-period OCI | - | 143 | - | 143 | ||||||||||||||
Balance, December 31, 2013 | - | $ | 544 | - | $ | 544 | ||||||||||||
Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||||||||
Attributable to Matthews: | ||||||||||||||||||
Balance, September 30, 2014 | $ | (39,651 | ) | $ | -27,367 | $ | 201 | $ | (66,817 | ) | ||||||||
OCI before reclassification | - | -26,282 | (1,468 | ) | (27,750 | ) | ||||||||||||
Amounts reclassified from AOCI | Â (a) | 925 | Â (b) | 657 | 1,582 | |||||||||||||
Net current-period OCI | 925 | -26,282 | (811 | ) | (26,168 | ) | ||||||||||||
Balance, December 31, 2014 | $ | (38,726 | ) | $ | -53,649 | $ | (610 | ) | $ | (92,985 | ) | |||||||
Attributable to noncontrolling interest: | ||||||||||||||||||
Balance, September 30, 2014 | - | $ | 516 | - | $ | 516 | ||||||||||||
OCI before reclassification | - | -10 | - | (10 | ) | |||||||||||||
Net current-period OCI | - | -10 | - | (10 | ) | |||||||||||||
Balance, December 31, 2014 | - | $ | 506 | - | $ | 506 | ||||||||||||
(a) | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see note 8). | |||||||||||||||||
(b) | Amounts were included in interest expense in the periods the hedged item affected earnings (see note 5). | |||||||||||||||||
Reclassifications out of AOCI for the three month periods ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||
2014 | 2013 | Affected line item in the Statement of income | ||||||||||||||||
Details about AOCI Components | ||||||||||||||||||
     | ||||||||||||||||||
Postretirement benefit plans | Â Â Â Â | |||||||||||||||||
     Prior service (cost) credit | $ | 94 | $ | 74 | (a) | |||||||||||||
     Actuarial losses | (1,564 | ) | (942 | ) | (a) | |||||||||||||
(1,470 | ) | (868 | ) | (b) | Total before tax | |||||||||||||
(545 | ) | (340 | ) | Tax provision (benefit) | ||||||||||||||
$ | (925 | ) | $ | (528 | ) | Net of tax | ||||||||||||
Derivatives | Â Â Â Â | |||||||||||||||||
     Interest rate swap contracts | $ | (1,077 | ) | $ | (1,076 | ) | Interest expense | |||||||||||
(1,077 | ) | (1,076 | ) | (b) | Total before tax | |||||||||||||
(420 | ) | (420 | ) | Tax provision (benefit) | ||||||||||||||
$ | (657 | ) | $ | (656 | ) | Net of tax | ||||||||||||
(a) | Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 8. | |||||||||||||||||
(b) | For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Dec. 31, 2014 | ||
Income Taxes [Abstract] | ||
Income Taxes | Note 10.  Income Taxes | |
Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year. The Company's effective tax rate for the three months ended December 31, 2014 was 26.1%, compared to 34.1% for the first quarter of fiscal 2014.  The decrease in the effective tax rate for the fiscal 2015 first quarter primarily reflected the benefit of the utilization of certain tax attributes as a result of legal structure reorganization in foreign jurisdictions. The difference between the Company's fiscal 2015 first quarter effective tax rate and the Federal statutory rate of 35.0% primarily reflected the impact of state taxes, offset by lower foreign income taxes. | ||
The Company had unrecognized tax benefits (excluding penalties and interest) of $4,453 and $4,311 on December 31, 2014 and September 30, 2014, respectively, all of which, if recorded, would impact the 2015 annual effective tax rate. | ||
The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. The Company included $28 in interest and penalties in the provision for income taxes for the first quarter of fiscal 2015. Total penalties and interest accrued were $2,163 and $2,135 at December 31, 2014 and September 30, 2014, respectively.  These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions. | ||
The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions.  As of December 31, 2014, the tax years that remain subject to examination by major jurisdiction generally are: | ||
United States – Federal | 2011 and forward | |
United States – State | 2010 and forward | |
Canada | 2009 and forward | |
Europe | 2009 and forward | |
United Kingdom | 2013 and forward | |
Australia | 2010 and forward | |
Asia | 2008 and forward |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Information [Abstract] | |||||||||
Segment Information | Note 11.  Segment Information | ||||||||
In the first quarter of fiscal 2015, the Company changed its segment reporting to reflect a realignment of its operations, and changes in the management of its business. The Company is now managing and reporting its businesses under three segments: SGK Brand Solutions, Memorialization and Industrial. The SGK Brand Solutions segment is comprised of graphics imaging products and services, including Schawk, Inc. ("Schawk"), merchandising display systems, and marketing and design services. The Memorialization segment is comprised of the Company's cemetery products, funeral home products and cremation operations. The Industrial segment is comprised of the Company's marking and automation products and fulfillment systems. Prior periods have been restated to conform with the current presentation. Management evaluates segment performance based on operating profit (before income taxes) and does not allocate non-operating items such as investment income, interest expense, other income (deductions), net and minority interest. | |||||||||
Information about the Company's segments follows: | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Sales to external customers: | |||||||||
SGK Brand Solutions | $ | 200,834 | $ | 91,062 | |||||
Memorialization | 116,223 | 117,360 | |||||||
Industrial | 26,527 | 21,523 | |||||||
343,584 | $ | 229,945 | |||||||
Operating profit: | |||||||||
SGK Brand Solutions | $ | 1,850 | $ | 1,318 | |||||
Memorialization | 21,486 | 12,221 | |||||||
Industrial | 2,249 | 1,140 | |||||||
$ | 25,585 | $ | 14,679 |
Acquisitions
Acquisitions | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Acquisitions [Abstract] | |||||||||
Acquisitions | Note 12.  Acquisitions | ||||||||
On July 29, 2014, the Company acquired Schawk, a leading global brand development, activation and brand deployment company headquartered in Des Plaines, Illinois. Under the terms of the transaction, Schawk shareholders received $11.80 cash and 0.20582 shares of Matthews' common stock for each Schawk share held. Based on the closing price of Matthews' stock on July 28, 2014, the transaction represented an implied price of $20.74 per share and a total enterprise value (which included net outstanding debt, net of cash acquired) of $616,686. Schawk provides comprehensive brand development and brand deployment services to clients primarily in the consumer packaged goods, retail and life sciences markets. Schawk creates and sells its clients' brands, produces brand assets and protects brand equities to help drive brand performance. Schawk delivers its services through more than 155 locations in over 20 countries across North and South America, Europe, Asia and Australia. The preliminary purchase price allocation related to the Schawk acquisition is not finalized as of December 31, 2014, and is based upon a preliminary valuation which is subject to change as the Company obtains additional information, including with respect to fixed assets, intangible assets, certain liabilities and related taxes. | |||||||||
The following information presents a summary of the consolidated results of Matthews combined with Schawk as if the acquisition had occurred on October 1, 2013: | |||||||||
Three Months Ended, December 31, | |||||||||
2014 | 2013 | ||||||||
Sales | $ | 343,584 | $ | 344,225 | |||||
Income before income taxes | 20,088 | 16,668 | |||||||
Net income | 14,836 | 10,306 | |||||||
Earnings per share | $0.45 | $0.31 | |||||||
The unaudited pro forma results for the three months ended December 31, 2013 have been prepared for comparative purposes only and include certain adjustments, such as interest expense on acquisition debt and acquisition related costs. The pro forma information does not purport to be indicative of the results of operations which actually would have resulted had the acquisition occurred on the date indicated, or which may result in the future. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | |||||||||||||||||
Goodwill and Other Intangible Assets | Note 13.  Goodwill and Other Intangible Assets | ||||||||||||||||
Goodwill is not amortized, but is subject to periodic review for impairment. In general, when the carrying value of a reporting unit exceeds its implied fair value, an impairment loss must be recognized. For purposes of testing for impairment, the Company uses a combination of valuation techniques, including discounted cash flows. Intangible assets are amortized over their estimated useful lives, unless such lives are considered to be indefinite. The Company performs its annual impairment review of goodwill and indefinite lived trade names in the second fiscal quarter. A significant decline in cash flows generated from these assets may result in a write-down of the carrying values of the related assets. The Company performed its annual impairment reviews in the second quarters of fiscal 2014 and 2013 and determined that no adjustments to the carrying values of goodwill were necessary. Recent economic conditions in Europe have unfavorably impacted the operating results of the graphics imaging business within the SGK Brand Solutions segment. For the graphics imaging reporting unit in 2014, the estimated fair value exceeded its carrying value by less than 10%, resulting in no goodwill impairment for the unit. While the graphics imaging reporting unit passed the first step of the impairment test, if its operating profits or another significant assumption were to deteriorate in the future, it could adversely affect the estimated fair value of the reporting unit. Factors that could have a negative impact on the estimated fair value of the graphics imaging reporting unit include a further delay in the recovery of the European market, continued pricing pressure, declines in expected volumes, and an increase in discount rates. If the Company is unsuccessful in its plans to recover the profitability of this business, the estimated fair value could decline and lead to a potential goodwill impairment in the future. The graphics imaging reporting unit did not include Schawk at the time of the fiscal 2014 impairment review. Schawk will be included in the graphics imaging reporting unit for the fiscal 2015 impairment review. | |||||||||||||||||
A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows: | |||||||||||||||||
SGK Brand Solutions | Memorialization | Industrial | Consolidated | ||||||||||||||
Goodwill | $ | 501,050 | $ | 278,282 | $ | 50,887 | $ | 830,219 | |||||||||
Accumulated impairment losses | (5,752 | ) | (5,000 | ) | - | (10,752 | ) | ||||||||||
Balance at September 30, 2014 | 495,298 | 273,282 | 50,887 | 819,467 | |||||||||||||
Additions during period | - | - | - | - | |||||||||||||
Translation and other adjustments | (12,829 | ) | (1,439 | ) | (69 | ) | (14,335 | ) | |||||||||
Goodwill | 488,223 | 276,843 | 50,818 | 815,884 | |||||||||||||
Accumulated impairment losses | (5,752 | ) | (5,000 | ) | - | (10,752 | ) | ||||||||||
Balance at December 31, 2014 | $ | 482,471 | $ | 271,843 | $ | 50,818 | $ | 805,132 | |||||||||
The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2014 and September 30, 2014, respectively. | |||||||||||||||||
Carrying | Accumulated | Dispositions | |||||||||||||||
Amount | Amortization | Net | |||||||||||||||
December 31, 2014: | |||||||||||||||||
Trade names | $ | 142,356 | $ | - | * | $ | - | $ | 142,356 | ||||||||
Trade names | 2,765 | (2,107 | ) | - | 658 | ||||||||||||
Customer relationships | 254,743 | (28,926 | ) | (7,715 | ) | 218,102 | |||||||||||
Copyrights/patents/other | 14,441 | (9,752 | ) | (2,890 | ) | 1,799 | |||||||||||
$ | 414,305 | $ | (40,785 | ) | $ | (10,605 | ) | $ | 362,915 | ||||||||
September 30, 2014: | |||||||||||||||||
Trade names | $ | 142,529 | $ | - | * | $ | - | $ | 142,529 | ||||||||
Trade names | 2,854 | (2,121 | ) | - | 733 | ||||||||||||
Customer relationships | 258,441 | (24,785 | ) | - | 233,656 | ||||||||||||
Copyrights/patents/other | 14,528 | (9,584 | ) | - | 4,944 | ||||||||||||
$ | 418,352 | $ | (36,490 | ) | $ | - | $ | 381,862 | |||||||||
* Not subject to amortization | |||||||||||||||||
The net change in intangible assets during the three months ended December 31, 2014 included the impact of foreign currency fluctuations during the period and additional amortization. In addition, the Company completed the sale of a majority ownership in its Schawk Digital Solutions business, which was acquired in 2014 as part of the Schawk acquisition. Net proceeds from this transaction totaled approximately $10,400, and the sale primarily resulted in the disposal of working capital and intangible assets, and the recognition of a cost-basis investment in this business. No gain or loss was recognized on the sale. | |||||||||||||||||
Amortization expense on intangible assets was $4,650 and $1,174 for the three-month periods ended December 31, 2014 and 2013, respectively. The remaining amortization expense is estimated to be $14,552 in 2015, $18,308 in 2016, $17,295 in 2017, $16,170 in 2018 and $15,298 in 2019. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||
Fair value of assets and liabilities measured on a recurring basis | The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: | ||||||||||||||||||||||||||||||||
31-Dec-14 | 30-Sep-14 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Derivatives (1) | $ | - | $ | 696 | $ | 696 | $ | - | $ | 2,457 | - | $ | 2,457 | ||||||||||||||||||||
Trading securities | $ | 19,038 | - | - | $ | 19,038 | $ | 19,038 | - | - | $ | 19,038 | |||||||||||||||||||||
Total assets at | $ | 19,038 | $ | 696 | - | $ | 19,734 | $ | 19,038 | $ | 2,457 | - | $ | 21,495 | |||||||||||||||||||
  fair value | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Derivatives (1) | - | $ | 1,696 | - | $ | 1,696 | $ | - | $ | 2,127 | - | $ | 2,127 | ||||||||||||||||||||
Total liabilities | - | $ | 1,696 | - | $ | 1,696 | $ | - | $ | 2,127 | - | $ | 2,127 | ||||||||||||||||||||
  at fair value | |||||||||||||||||||||||||||||||||
(1)Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Inventory | Inventories consisted of the following: | ||||||||
31-Dec-14 | 30-Sep-14 | ||||||||
Raw materials | $ | 45,486 | $ | 46,152 | |||||
Work in process | 39,147 | 38,631 | |||||||
Finished goods | 69,868 | 68,059 | |||||||
$ | 154,501 | $ | 152,842 |
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Debt [Abstract] | ||||||||||||||||||
Interest rate swaps | The Company has entered into the following interest rate swaps: | |||||||||||||||||
Effective Date | Amount | Fixed Interest Rate | Interest Rate Spread at December 31, 2014 | |||||||||||||||
Maturity Date | ||||||||||||||||||
Oct-11 | Â Â 25,000 | 1.67% | 1.75% | Oct-15 | ||||||||||||||
Mar-12 | Â Â 25,000 | 2.44% | 1.75% | Mar-15 | ||||||||||||||
Jun-12 | Â Â 40,000 | 1.88% | 1.75% | Jun-22 | ||||||||||||||
Aug-12 | Â Â 35,000 | 1.74% | 1.75% | Jun-22 | ||||||||||||||
Sep-12 | Â Â 25,000 | 3.03% | 1.75% | Dec-15 | ||||||||||||||
Sep-12 | Â Â 25,000 | 1.24% | 1.75% | Mar-17 | ||||||||||||||
Nov-12 | Â Â 25,000 | 1.33% | 1.75% | Nov-15 | ||||||||||||||
May-14 | Â Â 25,000 | 1.35% | 1.75% | May-18 | ||||||||||||||
Nov-14 | Â Â 25,000 | 1.26% | 1.75% | Jun-18 | ||||||||||||||
Mar-15 | Â Â 25,000 | 1.49% | 1.75% | Mar-19 | ||||||||||||||
Derivatives designated as hedging instruments | At December 31, 2014 and September 30, 2014, the interest rate swap contracts were reflected in the consolidated balance sheets as follows: | |||||||||||||||||
Derivatives | 31-Dec-14 | 30-Sep-14 | ||||||||||||||||
Current assets: | ||||||||||||||||||
Other current assets | $ | 99 | $ | 324 | ||||||||||||||
Long-term assets: | ||||||||||||||||||
 Other assets | 597 | 2,133 | ||||||||||||||||
Current liabilities: | ||||||||||||||||||
Other current liabilities | (1,508 | ) | (1,808 | ) | ||||||||||||||
Long-term liabilities: | ||||||||||||||||||
Other liabilities | (188 | ) | (319 | ) | ||||||||||||||
Total derivatives | $ | (1,000 | ) | $ | 330 | |||||||||||||
Loss recognized on derivatives | The loss recognized on derivatives was as follows: | |||||||||||||||||
Location of | ||||||||||||||||||
Derivatives in | Loss | Amount of Loss | ||||||||||||||||
Cash Flow | Recognized in | Recognized in Income | ||||||||||||||||
Hedging | Income on | on Derivatives | ||||||||||||||||
Relationships | Derivative | Three Months Ended December 31, | ||||||||||||||||
  2014 | 2013 | |||||||||||||||||
    | ||||||||||||||||||
Interest rate swaps | Interest expense | ($1,077) | ($1,076) | |||||||||||||||
The Company recognized the following gains or losses in AOCI: | ||||||||||||||||||
Location of | ||||||||||||||||||
Gain or | ||||||||||||||||||
   (Loss) | ||||||||||||||||||
Reclassified | Amount of Loss | |||||||||||||||||
Amount of Gain or (Loss) | from | Reclassified from | ||||||||||||||||
Derivatives in | Recognized in | AOCI into | AOCI into Income | |||||||||||||||
Cash Flow | AOCI on Derivatives | Income | (Effective Portion*) | |||||||||||||||
Hedging Relationships | 31-Dec-14 | 31-Dec-13 | (Effective | 31-Dec-14 | 31-Dec-13 | |||||||||||||
Portion*) | ||||||||||||||||||
Interest rate swaps | ($1,468) | $577 | Interest expense | ($657) | ($656) | |||||||||||||
*There is no ineffective portion or amount excluded from effectiveness testing. |
Share_Based_Payments_Tables
Share Based Payments (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-Based Payments [Abstract] | |||||||||||||||||
Restricted stock activity | The transactions for restricted stock for the three months ended December 31, 2014 were as follows: | ||||||||||||||||
Weighted- | |||||||||||||||||
average | |||||||||||||||||
grant-date | |||||||||||||||||
Shares | fair value | ||||||||||||||||
Non-vested at September 30, 2014 | 575,150 | $ | 33.83 | ||||||||||||||
Granted | 205,370 | 40.13 | |||||||||||||||
Vested | (138,584 | ) | 34.76 | ||||||||||||||
Expired or forfeited | (32,739 | ) | 24.23 | ||||||||||||||
Non-vested at December 31, 2014 | 609,197 | 36.26 | |||||||||||||||
Stock option activity | The transactions for shares under options for the quarter ended December 31, 2014 were as follows: | ||||||||||||||||
Weighted- | |||||||||||||||||
Weighted- | average | Aggregate | |||||||||||||||
average | remaining | intrinsic | |||||||||||||||
Shares | exercise price | contractual term | value | ||||||||||||||
Outstanding, September 30, 2014 | 512,322 | $38.62 | |||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (97,844 | ) | 38.09 | ||||||||||||||
Expired or forfeited | (68,557 | ) | 36.52 | ||||||||||||||
Outstanding, December 31, 2014 | 345,921 | 39.19 | 1.4 | $3,280 | |||||||||||||
Exercisable, December 31, 2014 | 101,933 | 38.76 | 1.3 | $1,010 | |||||||||||||
Non-vested options activity | The transactions for non-vested options for the quarter ended December 31, 2014 were as follows: | ||||||||||||||||
Weighted-average | |||||||||||||||||
grant-date | |||||||||||||||||
Non-vested shares | Shares | fair value | |||||||||||||||
Non-vested at September 30, 2014 | 312,442 | $11.21 | |||||||||||||||
Expired or forfeited | (68,454 | ) | 11.7 | ||||||||||||||
Non-vested at December 31, 2014 | 243,988 | 11.07 | |||||||||||||||
Assumptions used in estimating fair value | The fair value of each restricted stock grant is estimated on the date of grant using a binomial lattice valuation model. The following table indicates the assumptions used in estimating fair value of restricted stock granted during the periods ended December 31, 2014 and 2013. | ||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 22.2 | % | 26.6 | % | |||||||||||||
Dividend yield | 1 | % | 1.1 | % | |||||||||||||
Average risk-free interest rate | 1.7 | % | 1.4 | % | |||||||||||||
Average expected term (years) | 1.8 | 2 |
Earnings_Per_Share_Attributabl1
Earnings Per Share Attributable to Matthews Shareholders (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share Attributable to Matthews Shareholders [Abstract] | |||||||||
Information used to compute earnings per share attributable to Matthews' common shareholders | The information used to compute earnings per share attributable to Matthews' common shareholders was as follows: | ||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Net income attributable to Matthews shareholders | $ | 14,951 | $ | 7,914 | |||||
Less: dividends and undistributed earnings | 5 | 41 | |||||||
allocated to participating securities | |||||||||
Net income available to Matthews shareholders | $ | 14,946 | $ | 7,873 | |||||
Weighted-average shares outstanding (in thousands): | |||||||||
Basic shares | 32,919 | 27,125 | |||||||
Effect of dilutive securities | 174 | 227 | |||||||
Diluted shares | 33,093 | 27,352 | |||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Pension and Other Postretirement Benefit Plans [Abstract] | |||||||||||||||||
Net periodic pension and other postretirement benefit cost | The Company provides defined benefit pension and other postretirement plans to certain employees. Net periodic pension and other postretirement benefit cost for the plans included the following: | ||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 1,655 | $ | 1,582 | $ | 114 | $ | 109 | |||||||||
Interest cost | 2,145 | 2,213 | 221 | 230 | |||||||||||||
Expected return on plan assets | (2,470 | ) | (2,396 | ) | - | - | |||||||||||
Amortization: | |||||||||||||||||
   Prior service cost | (45 | ) | (52 | ) | (49 | ) | (22 | ) | |||||||||
   Net actuarial loss (gain) | 1,564 | 991 | - | (49 | ) | ||||||||||||
Net benefit cost | $ | 2,849 | $ | 2,338 | $ | 286 | $ | 268 | |||||||||
Contributions made and anticipated for the current fiscal year | Contributions made and anticipated for fiscal year 2015 are as follows: | ||||||||||||||||
Contributions | Pension | Other Postretirement | |||||||||||||||
Contributions during the three months ended December 31, 2014: | |||||||||||||||||
   Supplemental retirement plan | $ | 181 | $ | - | |||||||||||||
   Other postretirement plan | - | 231 | |||||||||||||||
Additional contributions expected in fiscal 2015: | |||||||||||||||||
   Supplemental retirement plan | 552 | - | |||||||||||||||
   Other postretirement plan | - | 695 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||
Change in AOCI by component | The change in AOCI by component, net of tax, for the three month periods ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||||||||
Attributable to Matthews: | ||||||||||||||||||
Balance, September 30, 2013Â | $ | (30,100 | ) | $ | 3,714 | $ | (554 | ) | $ | (26,940 | ) | |||||||
OCI before reclassification | - | 2,546 | 577 | 3,123 | ||||||||||||||
Amounts reclassified from AOCI | Â (a) | 528 | - | (b) | 656 | 1,184 | ||||||||||||
Net current-period OCI | 528 | 2,546 | 1,233 | 4,307 | ||||||||||||||
Balance, December 31, 2013 | $ | (29,572 | ) | $ | 6,260 | $ | 679 | $ | (22,633 | ) | ||||||||
Attributable to noncontrolling interest: | ||||||||||||||||||
Balance, September 30, 2013 | - | $ | 401 | - | $ | 401 | ||||||||||||
OCI before reclassification | - | 143 | - | 143 | ||||||||||||||
Net current-period OCI | - | 143 | - | 143 | ||||||||||||||
Balance, December 31, 2013 | - | $ | 544 | - | $ | 544 | ||||||||||||
Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||||||||
Attributable to Matthews: | ||||||||||||||||||
Balance, September 30, 2014 | $ | (39,651 | ) | $ | -27,367 | $ | 201 | $ | (66,817 | ) | ||||||||
OCI before reclassification | - | -26,282 | (1,468 | ) | (27,750 | ) | ||||||||||||
Amounts reclassified from AOCI | Â (a) | 925 | Â (b) | 657 | 1,582 | |||||||||||||
Net current-period OCI | 925 | -26,282 | (811 | ) | (26,168 | ) | ||||||||||||
Balance, December 31, 2014 | $ | (38,726 | ) | $ | -53,649 | $ | (610 | ) | $ | (92,985 | ) | |||||||
Attributable to noncontrolling interest: | ||||||||||||||||||
Balance, September 30, 2014 | - | $ | 516 | - | $ | 516 | ||||||||||||
OCI before reclassification | - | -10 | - | (10 | ) | |||||||||||||
Net current-period OCI | - | -10 | - | (10 | ) | |||||||||||||
Balance, December 31, 2014 | - | $ | 506 | - | $ | 506 | ||||||||||||
(a) | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see note 8). | |||||||||||||||||
(b) | Amounts were included in interest expense in the periods the hedged item affected earnings (see note 5). | |||||||||||||||||
Reclassifications out of AOCI | Reclassifications out of AOCI for the three month periods ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||
2014 | 2013 | Affected line item in the Statement of income | ||||||||||||||||
Details about AOCI Components | ||||||||||||||||||
     | ||||||||||||||||||
Postretirement benefit plans | Â Â Â Â | |||||||||||||||||
     Prior service (cost) credit | $ | 94 | $ | 74 | (a) | |||||||||||||
     Actuarial losses | (1,564 | ) | (942 | ) | (a) | |||||||||||||
(1,470 | ) | (868 | ) | (b) | Total before tax | |||||||||||||
(545 | ) | (340 | ) | Tax provision (benefit) | ||||||||||||||
$ | (925 | ) | $ | (528 | ) | Net of tax | ||||||||||||
Derivatives | Â Â Â Â | |||||||||||||||||
     Interest rate swap contracts | $ | (1,077 | ) | $ | (1,076 | ) | Interest expense | |||||||||||
(1,077 | ) | (1,076 | ) | (b) | Total before tax | |||||||||||||
(420 | ) | (420 | ) | Tax provision (benefit) | ||||||||||||||
$ | (657 | ) | $ | (656 | ) | Net of tax | ||||||||||||
(a) | Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 8. | |||||||||||||||||
(b) | For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |
Dec. 31, 2014 | ||
Income Taxes [Abstract] | ||
Tax years subject to examination | The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions.  As of December 31, 2014, the tax years that remain subject to examination by major jurisdiction generally are: | |
United States – Federal | 2011 and forward | |
United States – State | 2010 and forward | |
Canada | 2009 and forward | |
Europe | 2009 and forward | |
United Kingdom | 2013 and forward | |
Australia | 2010 and forward | |
Asia | 2008 and forward |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Information [Abstract] | |||||||||
Information about the segments | Information about the Company's segments follows: | ||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Sales to external customers: | |||||||||
SGK Brand Solutions | $ | 200,834 | $ | 91,062 | |||||
Memorialization | 116,223 | 117,360 | |||||||
Industrial | 26,527 | 21,523 | |||||||
343,584 | $ | 229,945 | |||||||
Operating profit: | |||||||||
SGK Brand Solutions | $ | 1,850 | $ | 1,318 | |||||
Memorialization | 21,486 | 12,221 | |||||||
Industrial | 2,249 | 1,140 | |||||||
$ | 25,585 | $ | 14,679 |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Acquisitions [Abstract] | |||||||||
Summary of Unaudited Pro-Forma Information | The following information presents a summary of the consolidated results of Matthews combined with Schawk as if the acquisition had occurred on October 1, 2013: | ||||||||
Three Months Ended, December 31, | |||||||||
2014 | 2013 | ||||||||
Sales | $ | 343,584 | $ | 344,225 | |||||
Income before income taxes | 20,088 | 16,668 | |||||||
Net income | 14,836 | 10,306 | |||||||
Earnings per share | $0.45 | $0.31 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | |||||||||||||||||
Goodwill attributable to each segment | A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows: | ||||||||||||||||
SGK Brand Solutions | Memorialization | Industrial | Consolidated | ||||||||||||||
Goodwill | $ | 501,050 | $ | 278,282 | $ | 50,887 | $ | 830,219 | |||||||||
Accumulated impairment losses | (5,752 | ) | (5,000 | ) | - | (10,752 | ) | ||||||||||
Balance at September 30, 2014 | 495,298 | 273,282 | 50,887 | 819,467 | |||||||||||||
Additions during period | - | - | - | - | |||||||||||||
Translation and other adjustments | (12,829 | ) | (1,439 | ) | (69 | ) | (14,335 | ) | |||||||||
Goodwill | 488,223 | 276,843 | 50,818 | 815,884 | |||||||||||||
Accumulated impairment losses | (5,752 | ) | (5,000 | ) | - | (10,752 | ) | ||||||||||
Balance at December 31, 2014 | $ | 482,471 | $ | 271,843 | $ | 50,818 | $ | 805,132 | |||||||||
Other intangible assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2014 and September 30, 2014, respectively. | ||||||||||||||||
Carrying | Accumulated | Dispositions | |||||||||||||||
Amount | Amortization | Net | |||||||||||||||
December 31, 2014: | |||||||||||||||||
Trade names | $ | 142,356 | $ | - | * | $ | - | $ | 142,356 | ||||||||
Trade names | 2,765 | (2,107 | ) | - | 658 | ||||||||||||
Customer relationships | 254,743 | (28,926 | ) | (7,715 | ) | 218,102 | |||||||||||
Copyrights/patents/other | 14,441 | (9,752 | ) | (2,890 | ) | 1,799 | |||||||||||
$ | 414,305 | $ | (40,785 | ) | $ | (10,605 | ) | $ | 362,915 | ||||||||
September 30, 2014: | |||||||||||||||||
Trade names | $ | 142,529 | $ | - | * | $ | - | $ | 142,529 | ||||||||
Trade names | 2,854 | (2,121 | ) | - | 733 | ||||||||||||
Customer relationships | 258,441 | (24,785 | ) | - | 233,656 | ||||||||||||
Copyrights/patents/other | 14,528 | (9,584 | ) | - | 4,944 | ||||||||||||
$ | 418,352 | $ | (36,490 | ) | $ | - | $ | 381,862 | |||||||||
* Not subject to amortization |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring [Member], USD $) | Dec. 31, 2014 | Sep. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Assets [Abstract] | ||||
Derivatives | $696 | [1] | $2,457 | [1] |
Trading securities | 19,038 | 19,038 | ||
Total assets at fair value | 19,734 | 21,495 | ||
Liabilities [Abstract] | ||||
Derivatives | 1,696 | [1] | 2,127 | [1] |
Total liabilities at fair value | 1,696 | 2,127 | ||
Level 1 [Member] | ||||
Assets [Abstract] | ||||
Derivatives | 0 | [1] | 0 | [1] |
Trading securities | 19,038 | 19,038 | ||
Total assets at fair value | 19,038 | 19,038 | ||
Liabilities [Abstract] | ||||
Derivatives | 0 | [1] | 0 | [1] |
Total liabilities at fair value | 0 | 0 | ||
Level 2 [Member] | ||||
Assets [Abstract] | ||||
Derivatives | 696 | [1] | 2,457 | [1] |
Trading securities | 0 | 0 | ||
Total assets at fair value | 696 | 2,457 | ||
Liabilities [Abstract] | ||||
Derivatives | 1,696 | [1] | 2,127 | [1] |
Total liabilities at fair value | 1,696 | 2,127 | ||
Level 3 [Member] | ||||
Assets [Abstract] | ||||
Derivatives | 0 | [1] | ||
Trading securities | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Liabilities [Abstract] | ||||
Derivatives | 0 | [1] | 0 | [1] |
Total liabilities at fair value | $0 | $0 | ||
[1] | Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory, net [Abstract] | ||
Raw Materials | $45,486 | $46,152 |
Work in process | 39,147 | 38,631 |
Finished goods | 69,868 | 68,059 |
Inventories | $154,501 | $152,842 |
Debt_Details
Debt (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | ||
USD ($) | USD ($) | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap 1 [Member] | Interest Rate Swap 2 [Member] | Interest Rate Swap 3 [Member] | Interest Rate Swap 4 [Member] | Interest Rate Swap 5 [Member] | Interest Rate Swap 6 [Member] | Interest Rate Swap 7 [Member] | Interest Rate Swap 8 [Member] | Interest Rate Swap 9 [Member] | Interest Rate Swap 10 [Member] | Domestic Revolving Credit Facility [Member] | Domestic Revolving Credit Facility [Member] | Domestic Revolving Credit Facility [Member] | Domestic Revolving Credit Facility [Member] | Domestic Revolving Credit Facility [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Lines of Credit with Italian Banks [Member] | Lines of Credit with Italian Banks [Member] | Lines of Credit with Italian Banks [Member] | Lines of Credit with Italian Banks [Member] | Matthews International S.p.A [Member] | Matthews International S.p.A [Member] | Matthews International S.p.A [Member] | Matthews International S.p.A [Member] | Matthews International S.p.A [Member] | Matthews International S.p.A [Member] | Saueressig [Member] | Saueressig [Member] | Saueressig [Member] | Saueressig [Member] | Saueressig [Member] | Wetzel GmbH [Member] | Wetzel GmbH [Member] | Wetzel GmbH [Member] | Wetzel GmbH [Member] | Wetzel GmbH [Member] | |||
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | Lines of Credit with Italian Banks [Member] | Lines of Credit with Italian Banks [Member] | Lines of Credit with Italian Banks [Member] | Lines of Credit with Italian Banks [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | Credit Facility With European Bank [Member] | |||||||||
USD ($) | USD ($) | Interest Expense [Member] | Interest Expense [Member] | USD ($) | USD ($) | Current assets: Other Current Assets [Member] | Current assets: Other Current Assets [Member] | Long-term assets: Other Assets [Member] | Long-term assets: Other Assets [Member] | Current Liabilities: Other Current Liabilities [Member] | Current Liabilities: Other Current Liabilities [Member] | Long-Term Liabilities: Other Liabilities [Member] | Long-Term Liabilities: Other Liabilities [Member] | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | |||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | LinesofCredit | ||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum amount of borrowings available | $900,000 | $500,000 | $30,248 | € 25,000 | $13,708 | € 11,300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate on borrowings, based on leverage ratio | LIBOR plus a factor ranging from .75% to 2.00% based on the Companybs leverage ratio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate on borrowings, based on leverage ratio (in hundredths) | 0.75% | 2.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate on borrowings (in hundredths) | 1.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual commitment fee range on unused portion | .15% to .25% (based on the Company's leverage ratio) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual commitment fee range on unused portion (in hundredths) | 0.15% | 0.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum available for issuance of trade and standby letters of credit | 30,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding borrowings | 670,000 | 680,000 | 25,589 | 21,100 | 22,055 | 17,500 | 4,935 | 4,100 | 6,063 | 4,800 | 5,418 | 4,500 | 6,922 | 5,500 | 1,757 | 1,500 | 1,576 | 1,200 | 3,264 | 2,700 | 3,624 | 2,900 | ||||||||||||||||||||||||||||||||||||
Weighted-average interest rate on outstanding borrowings (in hundredths) | 2.51% | 2.54% | 1.27% | 1.27% | 1.37% | 3.18% | 3.16% | 4.24% | 4.24% | 4.04% | 5.74% | 5.74% | 7.53% | |||||||||||||||||||||||||||||||||||||||||||||
Number of lines of credit | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Date | Oct-11 | Mar-12 | Jun-12 | Aug-12 | Sep-12 | Sep-12 | Nov-12 | May-14 | Nov-14 | Mar-15 | ||||||||||||||||||||||||||||||||||||||||||||||||
Amount | 25,000 | 25,000 | 40,000 | 35,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Interest Rate (in hundredths) | 1.67% | 2.44% | 1.88% | 1.74% | 3.03% | 1.24% | 1.33% | 1.35% | 1.26% | 1.49% | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||||||||||||||||||||||||||||||||||||||||||
Maturity Date | Oct-15 | Mar-15 | Jun-22 | Jun-22 | Dec-15 | Mar-17 | Nov-15 | May-18 | Jun-18 | Mar-19 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cash flow hedges [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on fair value of interest rate swaps | -1,000 | 330 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on fair value of interest rate swaps, after tax | -610 | 201 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss expected to be recognized over the next 12 months | -859 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets derivatives | 99 | 324 | 597 | 2,133 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability derivatives | -1,508 | -1,808 | -188 | -319 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | -1,000 | 330 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of loss recognized in income (loss) on derivatives | -1,077 | -1,076 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) recognized in AOCI on derivatives | -1,468 | 577 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into income (effective portion) | ($657) | [1] | ($656) | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | There is no ineffective portion or amount excluded from effectiveness testing. |
Share_Based_Payments_Details
Share Based Payments (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based compensation, aggregate disclosures [Abstract] | ||
Total stock-based compensation cost | $2,525 | $1,574 |
Future income tax benefit from compensation expense recognized | 985 | 614 |
Cash received from stock options exercised | 3,727 | 1,855 |
Tax benefit realized from options exercised | 315 | 177 |
2007 Equity Incentive Plan [Member] | ||
Share-based compensation, aggregate disclosures [Abstract] | ||
Term of plan | 10 years | |
Maximum number of shares available for grants or awards (in shares) | 2,500,000 | |
Shares reserved for future issuance under award plan (in shares) | 1,496,798 | |
Restricted Stock [Member] | ||
Share-based compensation, aggregate disclosures [Abstract] | ||
Vesting rights | With respect to outstanding restricted share grants, for grants made prior to fiscal 2013, generally one-half of the shares vest on the third anniversary of the grant, with the remaining one-half of the shares vesting in one-third increments upon attainment of pre-defined levels of appreciation in the market value of the Companybs Class A Common Stock. | |
Award expiration | Unvested restricted shares generally expire on the earlier of five years from the date of grant, upon employment termination, or within specified time limits following voluntary employment termination (with the consent of the Company), retirement or death. The Company issues restricted shares from treasury shares. | |
Restricted stock activity [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 575,150 | |
Granted (in shares) | 205,370 | |
Vested (in shares) | -138,584 | |
Expired or forfeited (in shares) | -32,739 | |
Non-vested at end of period (in shares) | 609,197 | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $33.83 | |
Granted, weighted-average grant-date fair value (in dollars per share) | $40.13 | |
Vested, weighted-average grant-date fair value (in dollars per share) | $34.76 | |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $24.23 | |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $36.26 | |
Unrecognized compensation cost [Abstract] | ||
Unrecognized compensation cost on non-vested awards | 13,585 | |
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 2 years 1 month 6 days | |
Fair value assumptions [Abstract] | ||
Expected volatility (in hundredths) | 22.20% | 26.60% |
Dividend yield (in hundredths) | 1.00% | 1.10% |
Average risk free interest rate (in hundredths) | 1.70% | 1.40% |
Average expected term | 1 year 9 months 18 days | 2 years |
Stock Options [Member] | ||
Share-based compensation, aggregate disclosures [Abstract] | ||
Exercisable rights | Outstanding stock options are generally exercisable in one-third increments upon the attainment of pre-defined levels of appreciation in the market value of the Companybs Class A Common Stock. | |
Vesting rights | Options generally vest in one-third increments after three, four and five years, respectively, from the grant date (but, in any event, not until the attainment of the market value thresholds) | |
Award expiration | The options expire on the earlier of ten years from the date of grant, upon employment termination, or within specified time limits following voluntary employment termination (with the consent of the Company), retirement or death. The Company generally settles employee stock option exercises with treasury shares., upon employment termination, or within specified time limits following voluntary employment termination (with the consent of the Company), retirement or death. The Company generally settles employee stock option exercises with treasury shares. | |
Stock option activity [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 512,322 | |
Granted (in shares) | 0 | |
Exercised (in shares) | -97,844 | |
Expired or forfeited (in shares) | -68,557 | |
Outstanding, end of period (in shares) | 345,921 | |
Exercisable (in shares) | 101,933 | |
Outstanding, weighted-average exercise price, beginning of period (in dollars per share) | $38.62 | |
Granted, weighted-average exercise price (in dollars per share) | $0 | |
Exercised, weighted-average exercise price (in dollars per share) | $38.09 | |
Expired or forfeited, weighted-average exercise price (in dollars per share) | $36.52 | |
Outstanding, weighted-average exercise price, end of period (in dollars per share) | $39.19 | |
Exercisable, weighted-average exercise price (in dollars per share) | $38.76 | |
Outstanding, weighted-average remaining contractual term | 1 year 4 months 24 days | |
Outstanding, aggregate intrinsic value | 3,280 | |
Exercisable, weighted-average remaining contractual term | 1 year 3 months 18 days | |
Exercisable, aggregate intrinsic value | 1,010 | |
Intrinsic value of options exercised | 841 | 488 |
Non-vested options activity [Roll Forward] | ||
Non-vested at beginning of period (in shares) | 312,442 | |
Expired or forfeited (in shares) | -68,454 | |
Non-vested at end of period (in shares) | 243,988 | |
Non-vested, weighted-average grant-date fair value, beginning of period (in dollars per share) | $11.21 | |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $11.70 | |
Non-vested, weighted-average grant-date fair value, end of period (in dollars per share) | $11.07 | |
Director Fee Plan, aggregate disclosures [Abstract] | ||
Option awards outstanding (in shares) | 345,921 | |
Director Fee Plan [Member] | ||
Share-based compensation, aggregate disclosures [Abstract] | ||
Shares reserved for future issuance under award plan (in shares) | 150,000 | |
Stock option activity [Roll Forward] | ||
Outstanding, end of period (in shares) | 0 | |
Director Fee Plan, aggregate disclosures [Abstract] | ||
Annual retainer fee paid to non-employee directors | 75 | |
Annual retainer fee paid to non-employee Chairman of the Board | 175 | |
Shares deferred under the Director Fee Plan (in shares) | 17,005 | |
Value of annual stock based grant | $110 | |
Total stock options granted to date (in shares) | 22,300 | |
Option awards outstanding (in shares) | 0 | |
Total restricted stock awards granted to date (in shares) | 120,503 | |
Restricted stock awards unvested (in shares) | 37,457 |
Earnings_Per_Share_Attributabl2
Earnings Per Share Attributable to Matthews Shareholders (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share Attributable to Matthews Shareholders [Abstract] | ||
Net income attributable to Matthews shareholders | $14,951 | $7,914 |
Less: dividends and undistributed earnings allocated to participating securities | 5 | 41 |
Net income available to Matthews shareholders | $14,946 | $7,873 |
Weighted-average shares outstanding [Abstract] | ||
Basic shares (in shares) | 32,919,000 | 27,125,000 |
Effect of dilutive securities (in shares) | 174,000 | 227,000 |
Diluted shares (in shares) | 33,093,000 | 27,352,000 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | $1,655 | $1,582 |
Interest cost | 2,145 | 2,213 |
Expected return on plan assets | -2,470 | -2,396 |
Amortization [Abstract] | ||
Prior service cost | -45 | -52 |
Net actuarial loss (gain) | 1,564 | 991 |
Net benefit cost | 2,849 | 2,338 |
Other Postretirement [Member] | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 114 | 109 |
Interest cost | 221 | 230 |
Expected return on plan assets | 0 | 0 |
Amortization [Abstract] | ||
Prior service cost | -49 | -22 |
Net actuarial loss (gain) | 0 | -49 |
Net benefit cost | 286 | 268 |
Benefit plan contributions [Abstract] | ||
Other postretirement plan | 231 | |
Additional contributions expected in fiscal 2015 | 695 | |
Supplemental Retirement Plan [Member] | ||
Benefit plan contributions [Abstract] | ||
Supplemental retirement plan | 181 | |
Additional contributions expected in fiscal 2015 | $552 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | ($66,817) | |||
Other comprehensive income (loss), net of tax | -26,178 | 4,450 | ||
Balance | -92,985 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | -5,333 | -2,901 | ||
Total before tax | 20,088 | 11,987 | ||
Income taxes | -5,252 | -4,081 | ||
Net income | 14,836 | 7,906 | ||
Matthews [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | -66,817 | -26,940 | ||
OCI before reclassification | -27,750 | 3,123 | ||
Amounts reclassified from AOCI | 1,582 | 1,184 | ||
Other comprehensive income (loss), net of tax | -26,168 | 4,307 | ||
Balance | -92,985 | -22,633 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 14,951 | 7,914 | ||
Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 516 | 401 | ||
OCI before reclassification | -10 | 143 | ||
Other comprehensive income (loss), net of tax | -10 | 143 | ||
Balance | 506 | 544 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | -115 | -8 | ||
Post-retirement Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Prior service (cost) credit | 94 | [1] | 74 | [1] |
Actuarial losses | -1,564 | [1] | -942 | [1] |
Total before tax | -1,470 | [2] | -868 | [2] |
Income taxes | -545 | -340 | ||
Net income | -925 | -528 | ||
Post-retirement Benefit Plans [Member] | Matthews [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | -39,651 | -30,100 | ||
OCI before reclassification | 0 | 0 | ||
Amounts reclassified from AOCI | 925 | [3] | 528 | [3] |
Other comprehensive income (loss), net of tax | 925 | 528 | ||
Balance | -38,726 | -29,572 | ||
Post-retirement Benefit Plans [Member] | Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 0 | 0 | ||
OCI before reclassification | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Balance | 0 | 0 | ||
Currency Translation Adjustment [Member] | Matthews [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | -27,367 | 3,714 | ||
OCI before reclassification | -26,282 | 2,546 | ||
Amounts reclassified from AOCI | 0 | [3] | 0 | [3] |
Other comprehensive income (loss), net of tax | -26,282 | 2,546 | ||
Balance | -53,649 | 6,260 | ||
Currency Translation Adjustment [Member] | Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 516 | 401 | ||
OCI before reclassification | -10 | 143 | ||
Other comprehensive income (loss), net of tax | -10 | 143 | ||
Balance | 506 | 544 | ||
Derivatives [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | -1,077 | -1,076 | ||
Total before tax | -1,077 | [2] | -1,076 | [2] |
Income taxes | -420 | -420 | ||
Net income | -657 | -656 | ||
Derivatives [Member] | Matthews [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 201 | -554 | ||
OCI before reclassification | -1,468 | 577 | ||
Amounts reclassified from AOCI | 657 | [4] | 656 | [4] |
Other comprehensive income (loss), net of tax | -811 | 1,233 | ||
Balance | -610 | 679 | ||
Derivatives [Member] | Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 0 | 0 | ||
OCI before reclassification | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Balance | $0 | $0 | ||
[1] | Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 8. | |||
[2] | For pre-tax items, positive amounts represent income and negative amounts represent expense. | |||
[3] | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see note 8). | |||
[4] | Amounts were included in interest expense in the periods the hedged item affected earnings (see note 5). |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Income Taxes [Abstract] | |||
Effective tax rate (in hundredths) | 26.10% | 34.10% | |
Federal statutory rate (in hundredths) | 35.00% | ||
Unrecognized tax benefits that would impact effective tax rate | $4,453 | $4,311 | |
Interest and penalties on tax uncertainties | 28 | ||
Total penalties and interest accrued | $2,163 | $2,135 | |
United States - Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2011 and forward | ||
United States - State [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2010 and forward | ||
Canada [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2009 and forward | ||
Europe [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2009 and forward | ||
United Kingdom [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2013 and forward | ||
Australia [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2010 and forward | ||
Asia [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2008 and forward |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment | ||
Segment Information [Abstract] | ||
Number of operating segments | 3 | |
Segment Reporting Information [Line Items] | ||
Sales to external customers | $343,584 | $229,945 |
Operating profit | 25,585 | 14,679 |
Reporting Segments [Member] | Memorialization [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 116,223 | 117,360 |
Operating profit | 21,486 | 12,221 |
Reporting Segments [Member] | Brand Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 200,834 | 91,062 |
Operating profit | 1,850 | 1,318 |
Reporting Segments [Member] | Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales to external customers | 26,527 | 21,523 |
Operating profit | $2,249 | $1,140 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 29, 2014 | |
Indefinite-lived intangible assets [Abstract] | |||
Sales | $343,584,000 | $344,225,000 | |
Income before income taxes | 20,088,000 | 16,668,000 | |
Net income | 14,836,000 | 10,306,000 | |
Earnings per share | $0.45 | $0.31 | |
Schawk, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price payable for each SGK share in cash (in dollars per share) | $11.80 | ||
Purchase price payable for each SGK share in common stock (in shares) | 0.20582 | ||
Implied price of entity's common stock (in dollars per share) | $20.74 | ||
Total enterprise value | $616,686,000,000 | ||
Number of service deliverable locations | 155 | ||
Number of service deliverable countries | 20 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | ||
Goodwill [Roll Forward] | |||||
Goodwill, gross | $830,219 | ||||
Accumulated impairment losses | -10,752 | ||||
Goodwill | 819,467 | ||||
Additions during period | 0 | ||||
Translation and other adjustments | -14,335 | ||||
Goodwill, gross | 815,884 | ||||
Accumulated impairment losses | -10,752 | ||||
Goodwill | 805,132 | ||||
Other Intangible Assets [Abstract] | |||||
Carrying Amount | 414,305 | 418,352 | |||
Accumulated Amortization | -40,785 | -36,490 | |||
Dispositions | -10,605 | 0 | |||
Net | 362,915 | 381,862 | |||
Net proceeds from acquisition | 10,400 | ||||
Amortization expense on intangible assets | 4,650 | 1,174 | |||
Future amortization expense [Abstract] | |||||
Future amortization expense 2015 | 14,552 | ||||
Future amortization expense 2016 | 18,308 | ||||
Future amortization expense 2017 | 17,295 | ||||
Future amortization expense 2018 | 16,170 | ||||
Future amortization expense 2019 | 15,298 | ||||
Trade Names Not Subject to Amortization [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Carrying Amount | 142,356 | 142,529 | |||
Accumulated Amortization | 0 | [1] | 0 | [1] | |
Dispositions | 0 | 0 | |||
Net | 142,356 | 142,529 | |||
Trade Names [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Carrying Amount | 2,765 | 2,854 | |||
Accumulated Amortization | -2,107 | -2,121 | |||
Dispositions | 0 | 0 | |||
Net | 658 | 733 | |||
Customer Relationships [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Carrying Amount | 254,743 | 258,441 | |||
Accumulated Amortization | -28,926 | -24,785 | |||
Dispositions | -7,715 | 0 | |||
Net | 218,102 | 233,656 | |||
Copyrights/Patents/Other [Member] | |||||
Other Intangible Assets [Abstract] | |||||
Carrying Amount | 14,441 | 14,528 | |||
Accumulated Amortization | -9,752 | -9,584 | |||
Dispositions | -2,890 | 0 | |||
Net | 1,799 | 4,944 | |||
Graphics Imaging [Member] | |||||
Goodwill [Roll Forward] | |||||
Estimated fair value exceeded its carrying value (in hundredths) | 10.00% | ||||
SGK Brand Solutions [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, gross | 501,050 | ||||
Accumulated impairment losses | -5,752 | ||||
Goodwill | 495,298 | ||||
Additions during period | 0 | ||||
Translation and other adjustments | -12,829 | ||||
Goodwill, gross | 488,223 | ||||
Accumulated impairment losses | -5,752 | ||||
Goodwill | 482,471 | ||||
Memorialization [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, gross | 278,282 | ||||
Accumulated impairment losses | -5,000 | ||||
Goodwill | 273,282 | ||||
Additions during period | 0 | ||||
Translation and other adjustments | -1,439 | ||||
Goodwill, gross | 276,843 | ||||
Accumulated impairment losses | -5,000 | ||||
Goodwill | 271,843 | ||||
Industrial [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, gross | 50,887 | ||||
Accumulated impairment losses | 0 | ||||
Goodwill | 50,887 | ||||
Additions during period | 0 | ||||
Translation and other adjustments | -69 | ||||
Goodwill, gross | 50,818 | ||||
Accumulated impairment losses | 0 | ||||
Goodwill | $50,818 | ||||
[1] | Not subject to amortization |