Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MATTHEWS INTERNATIONAL CORP | |
Entity Central Index Key | 63,296 | |
Current Fiscal Year End Date | --09-30 | |
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 | 32,964,476 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 69,788 | $ 63,003 |
Accounts receivable, net | 268,306 | 282,730 |
Inventories | 142,911 | 152,842 |
Deferred income taxes | 13,589 | 18,197 |
Other current assets | 54,274 | 49,456 |
Total current assets | 548,868 | 566,228 |
Investments | 26,937 | 23,130 |
Property, plant and equipment: Cost | 466,601 | 459,388 |
Less accumulated depreciation | (267,609) | (250,073) |
Property, plant, and equipment, net | 198,992 | 209,315 |
Deferred income taxes | 6,062 | 4,019 |
Other assets | 14,271 | 20,027 |
Goodwill | 788,936 | 819,467 |
Other intangible assets, net | 346,316 | 381,862 |
Total assets | 1,930,382 | 2,024,048 |
Current liabilities: | ||
Long-term debt, current maturities | 11,981 | 15,228 |
Trade accounts payable | 61,445 | 72,040 |
Accrued compensation | 63,595 | 60,690 |
Accrued income taxes | 5,324 | 7,079 |
Deferred income tax | 111 | 235 |
Other current liabilities | 106,558 | 98,011 |
Total current liabilities | 249,014 | 253,283 |
Long-term debt | 676,418 | 714,027 |
Accrued pension | 80,263 | 78,550 |
Postretirement benefits | 20,430 | 20,351 |
Deferred income taxes | 124,291 | 129,335 |
Other liabilities | 28,444 | 53,296 |
Total liabilities | 1,178,860 | 1,248,842 |
Shareholders' equity-Matthews: | ||
Common stock | 36,334 | 36,334 |
Additional paid-in capital | 114,428 | 113,225 |
Retained earnings | 831,914 | 798,353 |
Accumulated other comprehensive loss | (124,400) | (66,817) |
Treasury stock, at cost | (110,451) | (109,950) |
Total shareholders' equity-Matthews | 747,825 | 771,145 |
Noncontrolling interests | 3,697 | 4,061 |
Total shareholders' equity | 751,522 | 775,206 |
Total liabilities and shareholders' equity | $ 1,930,382 | $ 2,024,048 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||||
Sales | $ 364,752 | $ 279,983 | $ 1,057,730 | $ 756,765 |
Cost of sales | (229,316) | (175,753) | (669,929) | (480,977) |
Gross profit | 135,436 | 104,230 | 387,801 | 275,788 |
Selling and administrative expenses | (108,031) | (72,400) | (315,536) | (208,736) |
Operating profit | 27,405 | 31,830 | 72,265 | 67,052 |
Investment income | 58 | 456 | 1,031 | 1,683 |
Interest expense | (4,849) | (2,785) | (15,116) | (8,240) |
Other income (deductions), net | 9,845 | (899) | 6,420 | (2,773) |
Income before income taxes | 32,459 | 28,602 | 64,600 | 57,722 |
Income taxes | (9,245) | (9,185) | (18,314) | (19,616) |
Net income | 23,214 | 19,417 | 46,286 | 38,106 |
Net (income) loss attributable to noncontrolling interests | (74) | (376) | 189 | (286) |
Net income attributable to Matthews shareholders | $ 23,140 | $ 19,041 | $ 46,475 | $ 37,820 |
Earnings per share attributable to Matthews shareholders: | ||||
Basic (in dollars per share) | $ 0.70 | $ 0.70 | $ 1.41 | $ 1.38 |
Diluted (in dollars per share) | $ 0.70 | $ 0.69 | $ 1.40 | $ 1.37 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income (loss): | $ 23,214 | $ 19,417 | $ 46,286 | $ 38,106 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 8,274 | 597 | (59,727) | 3,312 |
Pension plans and other postretirement benefits | 876 | 565 | 2,766 | 1,622 |
Unrecognized gain (loss) on derivatives: | ||||
Net change from periodic revaluation | 664 | (1,965) | (2,548) | (2,437) |
Net amount reclassified to earnings | 581 | 1,212 | 1,846 | 2,511 |
Net change in unrecognized gain (loss) on derivatives | 1,245 | (753) | (702) | 74 |
Other comprehensive income (loss), net of tax | 10,395 | 409 | (57,663) | 5,008 |
Comprehensive income (loss) | 33,609 | 19,826 | (11,377) | 43,114 |
Matthews [Member] | ||||
Net income (loss): | 23,140 | 19,041 | 46,475 | 37,820 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 8,283 | 477 | (59,647) | 3,246 |
Pension plans and other postretirement benefits | 876 | 565 | 2,766 | 1,622 |
Unrecognized gain (loss) on derivatives: | ||||
Net change from periodic revaluation | 664 | (1,965) | (2,548) | (2,437) |
Net amount reclassified to earnings | 581 | 1,212 | 1,846 | 2,511 |
Net change in unrecognized gain (loss) on derivatives | 1,245 | (753) | (702) | 74 |
Other comprehensive income (loss), net of tax | 10,404 | 289 | (57,583) | 4,942 |
Comprehensive income (loss) | 33,544 | 19,330 | (11,108) | 42,762 |
Noncontrolling Interest [Member] | ||||
Net income (loss): | 74 | 376 | (189) | 286 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (9) | 120 | (80) | 66 |
Pension plans and other postretirement benefits | 0 | 0 | 0 | 0 |
Unrecognized gain (loss) on derivatives: | ||||
Net change from periodic revaluation | 0 | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Net change in unrecognized gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (9) | 120 | (80) | 66 |
Comprehensive income (loss) | $ 65 | $ 496 | $ (269) | $ 352 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | 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 |
Balance at Sep. 30, 2013 | $ 36,334 | $ 47,315 | $ 769,124 | $ (26,940) | $ (283,006) | $ 3,465 | $ 546,292 |
Net income | 0 | 0 | 37,820 | 0 | 0 | 286 | 38,106 |
Minimum pension liability | 0 | 0 | 0 | 1,622 | 0 | 0 | 1,622 |
Translation adjustment | 0 | 0 | 0 | 3,246 | 0 | 66 | 3,312 |
Fair value of derivatives | 0 | 0 | 0 | 74 | 0 | 0 | 74 |
Comprehensive income (loss) | 43,114 | ||||||
Stock-based compensation | 0 | 4,906 | 0 | 0 | 0 | 4,906 | |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (4,639) | 0 | (4,639) |
Issuance of treasury stock | 0 | (6,796) | 0 | 0 | 8,785 | 0 | 1,989 |
Cancellation of treasury stock | 3,156 | (3,156) | |||||
Dividends | 0 | 0 | (9,118) | 0 | 0 | 0 | (9,118) |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | (165) | (165) |
Balance at Jun. 30, 2014 | 36,334 | 48,581 | 797,826 | (21,998) | (282,016) | 3,652 | 582,379 |
Balance at Sep. 30, 2014 | 36,334 | 113,225 | 798,353 | (66,817) | (109,950) | 4,061 | 775,206 |
Net income | 0 | 0 | 46,475 | 0 | 0 | (189) | 46,286 |
Minimum pension liability | 0 | 0 | 0 | 2,766 | 0 | 0 | 2,766 |
Translation adjustment | 0 | 0 | 0 | (59,647) | 0 | (80) | (59,727) |
Fair value of derivatives | 0 | 0 | 0 | (702) | 0 | 0 | (702) |
Comprehensive income (loss) | (11,377) | ||||||
Stock-based compensation | 0 | 6,838 | 0 | 0 | 0 | 6,838 | |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (9,897) | 0 | (9,897) |
Issuance of treasury stock | 0 | (6,919) | 0 | 0 | 10,680 | 0 | 3,761 |
Cancellation of treasury stock | 1,284 | (1,284) | |||||
Dividends | 0 | 0 | (12,914) | 0 | 0 | 0 | (12,914) |
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | (95) | (95) |
Balance at Jun. 30, 2015 | $ 36,334 | $ 114,428 | $ 831,914 | $ (124,400) | $ (110,451) | $ 3,697 | $ 751,522 |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | ||
Purchase of treasury stock, shares (in shares) | 212,783 | 112,863 |
Issuance of treasury stock, shares (in shares) | 332,183 | 218,578 |
Cancellation of treasury stock, shares (in shares) | 34,789 | 77,597 |
Dividends, per share (in dollars per share) | $ 0.39 | $ 0.33 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 46,286 | $ 38,106 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 47,071 | 28,020 |
Stock-based compensation expense | 6,838 | 4,906 |
Changes in deferred taxes | (12,528) | (751) |
Gain on sale of assets | (153) | (571) |
Unrealized gain on investments | (617) | (1,283) |
Trade name write-offs | 4,842 | 0 |
Changes in working capital items | 22,242 | (10,987) |
Decrease (increase) in other assets | 2,792 | (1,835) |
Decrease in other liabilities | (14,416) | (1,125) |
Increase in pension and postretirement benefits | 6,199 | 6,190 |
Other, net | (6,217) | 1,745 |
Net cash provided by operating activities | 102,339 | 62,415 |
Cash flows from investing activities: | ||
Capital expenditures | (34,665) | (18,754) |
Acquisitions, net of cash acquired | (1,703) | 0 |
Proceeds from sale of assets | 912 | 45 |
Proceeds from sale of subsidiary | 10,418 | 0 |
Restricted cash | (12,925) | 0 |
Net cash used in investing activities | (37,963) | (18,709) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 47,421 | 20,352 |
Payments on long-term debt | (82,325) | (28,479) |
Payments on contingent consideration | 0 | (3,703) |
Proceeds from the sale of treasury stock | 3,907 | 2,045 |
Purchases of treasury stock | (9,897) | (4,639) |
Dividends | (12,914) | (9,118) |
Distributions to noncontrolling interests | (95) | (165) |
Net cash used in financing activities | (53,903) | (23,707) |
Effect of exchange rate changes on cash | (3,688) | 526 |
Net change in cash and cash equivalents | 6,785 | 20,525 |
Non-cash investing and financing activities: | ||
Acquisition of equipment under capital lease | $ 0 | $ 949 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Jun. 30, 2015 | |
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 include brand development, deployment and delivery (consisting of brand 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 production and marketing facilities in the United States, Central and South America, Canada, Europe, Australia and Asia. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2015 | |
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 nine months ended June 30, 2015 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 Revisions: The Company identified a theft of funds by an employee that had occurred over a multi-year period through May 2015 which was not previously reflected in the Company's results of operations. The cumulative amount of the loss has been determined to be approximately $14,771. The corresponding pre-tax earnings amounts applicable to fiscal years 2015, 2014 and 2013 were approximately $2,170, $1,720, and $1,257, respectively. Pursuant to the guidance of Staff Accounting Bulletin ("SAB") No. 99, "Materiality", the Company evaluated the materiality of these amounts quantitatively and qualitatively, and has concluded that the amounts described above were not material to any of its annual or quarterly prior period financial statements or trends of financial results. However, because of the significance of the cumulative out-of-period correction to the fiscal 2015 third quarter, the prior period financial statements have been revised, in accordance with SAB No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements". The following table reconciles the effect of the adjustments to the previously reported Consolidated Statements of Income for the three and nine month periods ended June 30, 2014: Three months ended June 30, 2014 Nine months ended June 30, 2014 Previously Reported Adjustment As Adjusted Previously Reported Adjustment As Adjusted Consolidated Statements of Income Other income (deductions), net $ (535 )* $ (364 ) $ (899 ) $ (1,641 )* $ (1,132 ) $ (2,773 ) Income before income taxes 28,966 (364 ) 28,602 58,854 (1,132 ) 57,722 Income taxes (9,327 ) 142 (9,185 ) (20,058 ) 442 (19,616 ) Net income 19,639 (222 ) 19,417 38,796 (690 ) 38,106 Net income attributable to Matthews shareholders 19,263 (222 ) 19,041 38,510 (690 ) 37,820 Comprehensive income 20,048 (222 ) 19,826 43,804 (690 ) 43,114 Earnings per share: Basic 0.70 - 0.70 1.41 (0.03 ) 1.38 Diluted 0.70 (0.01 ) 0.69 1.40 (0.03 ) 1.37 *Certain other reclassification adjustments are also reflected in the previously reported amounts to conform to the current period's presentation. These reclassification adjustments are not material to the prior year presentation. The following table reconciles the effect of the adjustments to the previously reported Consolidated Statement of Cash Flows for the nine month period ended June 30, 2014: Nine months ended June 30, 2014 Previously Reported Adjustment As Adjusted Consolidated Statements of Cash Flows Net income $ 38,796 $ (690 ) 38,106 Changes in deferred taxes (309 ) (442 ) (751 ) Net cash provided by operating activities 63,547 (1,132 ) 62,415 Net change in cash and cash equivalents 21,657 (1,132 ) 20,525 There was no impact to the Consolidated Statements of Comprehensive Income or the Consolidated Statements of Shareholders' Equity for any of the respective periods other than the impact on Net Income. In addition, the immaterial corrections did not affect the Company's compliance with debt covenants. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2015 | |
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. A three level fair value hierarchy is used to prioritize the inputs used in valuations, as defined below: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: 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: June 30, 2015 September 30, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) - $ 622 - $ 622 - $ 2,457 - $ 2,457 Trading $ 19,438 - - 19,438 $ 19,038 - - $ 19,038 Total assets at $ 19,438 $ 622 - $ 20,060 $ 19,038 $ 2,457 - $ 21,495 Liabilities: Derivatives (1) - $ 1,444 - $ 1,444 - $ 2,127 - $ 2,127 Total liabilities - $ 1,444 - $ 1,444 - $ 2,127 - $ 2,127 (1) Interest rate swaps are valued based on observable market swap rates. |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Note 4. Inventories Inventories consisted of the following: June 30, 2015 September 30, 2014 Raw materials $ 44,836 $ 46,152 Work in process 34,006 38,631 Finished goods 64,069 68,059 $ 142,911 $ 152,842 |
Debt
Debt | 9 Months Ended |
Jun. 30, 2015 | |
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, Inc. ("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 June 30, 2015) 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 June 30, 2015 and September 30, 2014 were $655,425 and $680,000, respectively. The weighted-average interest rate on outstanding borrowings at June 30, 2015 and 2014 was 2.51% and 2.55%, respectively. The Company has entered into the following interest rate swaps: Effective Date Amount Fixed Interest Rate Interest Rate Spread at June 30, 2015 Maturity Date October 2011 $25,000 1.67% 1.75% October 2015 June 2012 $40,000 1.88% 1.75% June 2022 August 2012 $35,000 1.74% 1.75% June 2022 September 2012 $25,000 3.03% 1.75% December 2015 September 2012 $25,000 1.24% 1.75% March 2017 November 2012 $25,000 1.33% 1.75% November 2015 May 2014 $25,000 1.35% 1.75% May 2018 November 2014 $25,000 1.26% 1.75% June 2018 March 2015 $25,000 1.49% 1.75% March 2019 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 of $822 ($501 after tax) at June 30, 2015 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 June 30, 2015, a loss (net of tax) of approximately $527 included in AOCI is expected to be recognized in earnings over the next twelve months. At June 30, 2015 and September 30, 2014, the interest rate swap contracts were reflected in the consolidated balance sheets as follows: Derivatives June 30, 2015 September 30, 2014 Current assets: Other current assets $ 89 $ 324 Long-term assets: Other assets 534 2,133 Current liabilities: Other current liabilities (953 ) (1,808 ) Long-term liabilities: Other liabilities (492 ) (319 ) Total derivatives $ (822 ) $ 330 The loss recognized on derivatives was as follows: Derivatives in Location of Loss Amount of Amount of Cash Flow Recognized in Loss Recognized Loss Recognized Hedging Income on in Income in Income Relationships Derivative on Derivatives on Derivatives Three Months ended June 30, Nine Months ended June 30, 2015 2014 2015 2014 Interest rate swaps Interest expense $(953) $(1,987) $(3,026) $(4,117) The Company recognized the following gains or losses in AOCI: Location of Gain or (Loss) Amount of Loss Reclassified Reclassified from Amount of (Loss) From AOCI into Derivatives in Recognized in AOCI into Income Cash Flow AOCI on Derivatives Income (Effective Portion*) Hedging Relationships June 30, 2015 June 30, 2014 (Effective Portion*) June 30, 2015 June 30, 2014 Interest rate swaps $(2,548) $(2,437) Interest expense $(1,846) $(2,511) *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 35.0 million Euros ($38,994). Outstanding borrowings under the credit facility totaled 11.3 million Euros ($12,586) and 17.5 million Euros ($22,055) at June 30, 2015 and September 30, 2014, respectively. The weighted-average interest rate on outstanding borrowings under this facility at June 30, 2015 and 2014 was 1.50% and 1.35%, 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 1.6 million Euros ($1,790) and 1.2 million Euros ($1,576) at June 30, 2015 and September 30, 2014, respectively. The weighted-average interest rate on outstanding borrowings of Saueressig at June 30, 2015 and 2014 was 3.85% and 4.04%, respectively. The Company, through its German subsidiary, Wetzel GmbH ("Wetzel"), has several loans with various European banks. Outstanding borrowings under these loans totaled 2.4 million Euros ($2,650) and 2.9 million Euros ($3,624) at June 30, 2015 and September 30, 2014, respectively. The weighted-average interest rate on outstanding borrowings of Wetzel at June 30, 2015 and 2014 was 5.82% and 7.62%, 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 4.6 million Euros ($5,094) and 5.5 million Euros ($6,922) at June 30, 2015 and September 30, 2014, respectively. Matthews International S.p.A. also has three lines of credit In September 2014, a claim seeking to draw upon a letter of credit issued by the Company of $12,925 was filed with respect to a project for a customer. In January 2015, the Company made payment on the draw to the financial institution for the letter of credit. Pursuant to an action initiated by the Company, a court order has been issued requiring these funds to ultimately be remitted to the court pending resolution of the dispute between the parties. While it is possible the resolution of this matter could be unfavorable to the Company, management has assessed the customer's claim to be without merit and, based on information available as of this filing, expects that the ultimate resolution of this matter will not have a material adverse effect on Matthews' financial condition, results of operations or cash flows. As of June 30, 2015, the Company has presented the funded letter of credit within other current assets on the Condensed Consolidated Balance Sheet. As of June 30, 2015 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 | 9 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015, there were 1,476,798 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 Class A 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 date, 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 June 30, 2015 and 2014, total stock-based compensation cost totaled $2,274 and $1,667, respectively. For the nine-month periods ended June 30, 2015 and 2014, total stock-based compensation cost totaled $6,838 and $4,906, respectively. The associated future income tax benefit recognized was $887 and $650 for the three-month periods ended June 30, 2015 and 2014, respectively, and $2,667 and $1,913 for the nine-month periods ended June 30, 2015 and 2014, respectively. For the three-month periods ended June 30, 2015 and 2014, the amount of cash received from the exercise of stock options was $129 and $217, respectively. For the nine-month periods ended June 30, 2015 and 2014, the amount of cash received from the exercise of stock options was $3,907 and $2,045, respectively. In connection with these exercises, the tax benefits realized by the Company were $16 and $1 for the three-month period ended June 30, 2015 and 2014, respectively, and $337 and $186 for the nine-month periods ended June 30, 2015 and 2014, respectively. The transactions for restricted stock for the nine months ended June 30, 2015 were as follows: Weighted- average grant-date Shares fair value Non-vested at September 30, 2014 575,150 $ 33.83 Granted 215,370 40.07 Vested (158,992 ) 34.42 Expired or forfeited (36,294 ) 28.53 Non-vested at June 30, 2015 595,234 36.26 As of June 30, 2015, the total unrecognized compensation cost related to unvested restricted stock was $9,774 and is expected to be recognized over a weighted average period of 1.7 years. The transactions for shares under options for the nine months ended June 30, 2015 were as follows: Weighted- Weighted- average Aggregate average remaining intrinsic Shares exercise price contractual term value Outstanding, September 30, 2014 512,322 $38.62 Exercised (102,544 ) 38.10 Expired or forfeited (69,173 ) 36.53 Outstanding, June 30, 2015 340,605 39.20 1.0 $4,747 Exercisable, June 30, 2015 97,000 38.78 0.8 1,392 No options vested during the three-month and nine-month periods ended June 30, 2015 and 2014, 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 nine-month periods ended June 30, 2015 and 2014 was $897 and $510, The transactions for non-vested options for the nine months ended June 30, 2015 were as follows: Weighted-average grant-date Shares fair value Non-vested at September 30, 2014 312,442 $11.21 Expired or forfeited (68,837 ) 11.70 Non-vested at June 30, 2015 243,605 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 for the nine months ended June 30, 2015 and 2014. Nine Months Ended June 30, 2015 2014 Expected volatility 22.2 % 26.6 % Dividend yield 1.0 % 1.1 % Average risk-free interest rate 1.7 % 1.4 % Average expected term (years) 1.8 2.0 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 the 2014 Director Fee Plan (collectively, the "Director Fee Plans"). Since adoption of the 2014 Director Fee Plan, there have been no further fees or share-based awards granted under the 1994 Director Fee Plan. Under the 2014 Director Fee Plan, non-employee directors (except for the Chairman of the Board) 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 June 30, 2015. Additionally, non-employee directors 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 June 30, 2015, there were no options outstanding. Additionally, 136,568 shares of restricted stock have been granted under the Director Fee Plans, 33,418 of which were unvested at June 30, 2015. A total of 150,000 shares have been authorized under the 2014 Director Fee Plan. |
Earnings Per Share Attributable
Earnings Per Share Attributable to Matthews' Shareholders | 9 Months Ended |
Jun. 30, 2015 | |
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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Net income attributable to Matthews shareholders $ 23,140 $ 19,041 $ 46,475 $ 37,820 Less: dividends and undistributed earnings 2 35 8 128 Net income available to Matthews shareholders $ 23,138 $ 19,006 $ 46,467 $ 37,692 Weighted-average shares outstanding (in thousands): Basic shares 32,962 27,294 32,947 27,223 Effect of dilutive securities 234 197 258 227 Diluted shares 33,196 27,491 33,205 27,450 There were no anti-dilutive securities for the three and nine months ended June 30, 2015 or 2014. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Jun. 30, 2015 | |
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 June 30, Pension Other Postretirement 2015 2014 2015 2014 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 ) (23 ) Net actuarial loss (gain) 1,564 991 - (49 ) Net benefit cost $ 2,849 $ 2,338 $ 286 $ 267 Nine months ended June 30, Pension Other Postretirement 2015 2014 2015 2014 Service cost $ 4,965 $ 4,746 $ 342 $ 327 Interest cost 6,435 6,639 663 690 Expected return on plan assets (7,410 ) (7,188 ) - - Amortization: Prior service cost (135 ) (156 ) (147 ) (66 ) Net actuarial loss (gain) 4,692 2,973 - (147 ) Net benefit cost $ 8,547 $ 7,014 $ 858 $ 804 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 nine months ended June 30, 2015: Supplemental retirement plan $ 543 $ - Other postretirement plan - 1,019 Additional contributions expected in fiscal 2015: Supplemental retirement plan 190 - Other postretirement plan - 250 Prior to its acquisition by Matthews, Schawk participated in a multi-employer pension fund pursuant to certain collective bargaining agreements. In 2012, Schawk bargained to withdraw from the fund, and recorded a withdrawal liability at the conclusion of the negotiations, based on the present value of installment payments expected to be paid through 2034. During the third quarter of fiscal 2015, the Company finalized an agreement to settle this installment payment obligation in exchange for a lump-sum payment of $18,157. This settlement liability is recorded within other current liabilities on the Condensed Consolidated Balance Sheet at June 30, 2015, since full payment is expected to be made during the fourth quarter of fiscal 2015. This settlement also resulted in an $11,522 gain recognized in other income (deductions), net during the third quarter of fiscal 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 9. Accumulated Other Comprehensive Income The changes in AOCI by component, net of tax, for the three month periods ended June 30, 2015 and 2014 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2015 $ (37,761 ) $ (95,297 ) $ (1,746 ) $ (134,804 ) OCI before reclassification - 8,283 664 8,947 Amounts reclassified from AOCI (a) 876 - (b) 581 1,457 Net current-period OCI 876 8,283 1,245 10,404 Balance, June 30, 2015 $ (36,885 ) $ (87,014 ) $ (501 ) $ (124,400 ) Attributable to noncontrolling interest: Balance, March 31, 2015 - $ 445 - $ 445 OCI before reclassification - (9 ) - (9 ) Net current-period OCI - (9 ) - (9 ) Balance, June 30, 2015 - $ 436 - $ 436 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2014 $ (29,043 ) $ 6,483 $ 273 $ (22,287 ) OCI before reclassification - 477 (1,965 ) (1,488 ) Amounts reclassified from AOCI (a) 565 - (b) 1,212 1,777 Net current-period OCI 565 477 (753 ) 289 Balance, June 30, 2014 $ (28,478 ) $ 6,960 $ (480 ) $ (21,998 ) Attributable to noncontrolling interest: Balance, March 31, 2014 - $ 347 - $ 347 OCI before reclassification - 120 - 120 Net current-period OCI - 120 - 120 Balance, June 30, 2014 - $ 467 - $ 467 (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). The changes in AOCI by component, net of tax, for the nine month periods ended June 30, 2015 and 2014 were as follows: 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 - (59,647 ) (2,548 ) (62,195 ) Amounts reclassified from AOCI (a) 2,766 - (b) 1,846 4,612 Net current-period OCI 2,766 (59,647 ) (702 ) (57,583 ) Balance, June 30, 2015 $ (36,885 ) $ (87,014 ) $ (501 ) $ (124,400 ) Attributable to noncontrolling interest: Balance, September 30, 2014 - $ 516 - $ 516 OCI before reclassification - (80 ) - (80 ) Net current-period OCI - (80 ) - (80 ) Balance, June 30, 2015 - $ 436 - $ 436 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2013 $ (30,100 ) $ 3,714 $ (554 ) $ (26,940 ) OCI before reclassification - 3,246 (2,437 ) 809 Amounts reclassified from AOCI (a) 1,622 - (b) 2,511 4,133 Net current-period OCI 1,622 3,246 74 4,942 Balance, June 30, 2014 $ (28,478 ) $ 6,960 $ (480 ) $ (21,998 ) Attributable to noncontrolling interest: Balance, September 30, 2013 - $ 401 - $ 401 OCI before reclassification - 66 - 66 Net current-period OCI - 66 - 66 Balance, June 30, 2014 - $ 467 - $ 467 (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 and nine month periods ended June 30, 2015 were as follows: Amount reclassified from AOCI Details about AOCI Components Three months ended June 30, 2015 Nine months ended June 30, 2015 Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 94 (a) $ 282 Actuarial losses (1,564 ) (a) (4,692 ) (1,470 ) (b) (4,410 ) Total before tax (594 ) (1,644 ) Tax provision (benefit) $ (876 ) $ (2,766 ) Net of tax Derivatives Interest rate swap contracts $ (953 ) $ (3,026 ) Interest expense (953 ) (b) (3,026 ) Total before tax (372 ) (1,180 ) Tax provision (benefit) $ (581 ) $ (1,846 ) Net of tax Reclassifications out of AOCI for the three and nine month periods ended June 30, 2014 were as follows: Amount reclassified from AOCI Details about AOCI Components Three months ended June 30, 2014 Nine months ended June 30, 2014 Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 75 (a) $ 222 Actuarial losses (942 ) (a) (2,826 ) (867 ) (b) (2,604 ) Total before tax (302 ) (982 ) Tax provision (benefit) $ (565 ) $ (1,622 ) Net of tax Derivatives Interest rate swap contracts $ (1,987 ) $ (4,117 ) Interest expense (1,987 ) (b) (4,117 ) Total before tax (775 ) (1,606 ) Tax provision (benefit) $ (1,212 ) $ (2,511 ) 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 | 9 Months Ended |
Jun. 30, 2015 | |
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 nine months ended June 30, 2015 was 28.3%, compared to 34.0% for the nine months ended June 30, 2014. The decrease in the effective tax rate for the first nine months of fiscal 2015 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 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 $4,337 and $4,311 on June 30, 2015 and September 30, 2014, respectively, all of which, if recorded, would impact the 2015 annual effective tax rate. Total penalties and interest accrued were $2,060 and $2,135 at June 30, 2015 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 June 30, 2015, the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2012 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 | 9 Months Ended |
Jun. 30, 2015 | |
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, 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. Information about the Company's segments follows: Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Sales to external customers SGK Brand Solutions $ 205,082 $ 116,338 $ 597,638 $ 305,741 Memorialization 125,598 137,926 372,076 380,937 Industrial 34,072 25,719 88,016 70,087 $ 364,752 $ 279,983 $ 1,057,730 $ 756,765 Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Operating profit SGK Brand Solutions $ 5,286 $ 6,614 $ 5,536 $ 9,219 Memorialization 17,715 22,410 57,374 52,057 Industrial 4,404 2,806 9,355 5,776 $ 27,405 $ 31,830 $ 72,265 $ 67,052 |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | Note 12. Acquisitions On June 15, 2015, the Company acquired the remaining interest in ImTech, a business engaged in designing and manufacturing industrial printing products and specialty ink products, for $1,703. On June 8, 2015, the Company and its wholly-owned subsidiary, The York Group, Inc. ("York"), entered into a purchase agreement with Aurora Products Group, LLC ("Aurora"), the sellers identified therein, and Kohlberg Management VII, L.P., in its capacity as the sellers' representative. Upon the terms and subject to the conditions set forth in the purchase agreement, York will acquire all of the outstanding equity interests of Aurora, resulting in Aurora becoming an indirect wholly-owned subsidiary of Matthews. Aurora provides burial, cremation, and technology products to funeral home clients and distributors in the United States and Canada. Matthews expects to fund the acquisition through cash on hand and borrowings under its existing credit facility. The purchase price for the Aurora Transaction is $214.0 million in cash on a debt-free basis subject to a working capital adjustment. Additional consideration of $10.0 million is payable contingent upon the achievement of a specified increased level of adjusted earnings before interest, taxes, depreciation and amortization for the last full twelve (12) months prior to the closing. Matthews expects to consummate the Aurora Transaction in the fourth quarter of fiscal 2015, subject to customary closing conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act") or early termination of the waiting period under the HSR Act. 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 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 June 30, 2015, 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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Sales $ 364,752 $ 384,292 $ 1,057,730 $ 1,077,240 Income before income taxes 32,459 28,647 64,600 62,725 Net income 23,140 19,531 46,475 42,813 Earnings per share $.70 $.59 $1.40 $1.30 The unaudited pro forma results for the three and nine months ended June 30, 2014 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 A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | Note 13. Goodwill and Other Intangible Assets Goodwill related to business combinations is not amortized, but is subject to annual review for impairment. In general, when the carrying value of a reporting unit exceeds its implied fair value, an impairment loss may need to be recognized. For purposes of testing for impairment, the Company uses a combination of valuation techniques, including discounted cash flows. A number of assumptions and estimates are involved in the application of the discounted cash flow model to forecast operating cash flows, including sales volumes and pricing, costs to produce, tax rates, capital spending, working capital changes, and discount rates. The Company estimates future cash flows using volume and pricing assumptions based largely on existing customer relationships and contracts, and operating cost assumptions management believes are reasonable based on historical performance and projected future performance as reflected in its most recent operating plans and projections. The discount rates used in the discounted cash flow analyses were developed with the assistance of valuation experts and management believes the discount rates appropriately reflect the risks associated with the Company's operating cash flows. In order to further validate the reasonableness of the estimated fair values of the reporting units as of the valuation date, a reconciliation of the aggregate fair values of all reporting units to market capitalization was performed using a reasonable control premium. The Company performed its annual impairment review in the second quarter of fiscal 2015 and determined that the estimated fair value for all reporting units exceeded carrying value, therefore no adjustments to the carrying value of goodwill were necessary at March 31, 2015. Trade names with indefinite lives are tested for impairment annually in the second quarter. In connection with the integration of Schawk, the Company discontinued the use of certain trade names and recognized write-offs of approximately $4,842 in the SGK Brand Solutions segment during the second quarter of fiscal 2015. 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 - - 2,226 2,226 Translation and other adjustments (29,094 ) (3,556 ) (107 ) (32,757 ) Goodwill 471,956 274,726 53,006 799,688 Accumulated impairment losses (5,752 ) (5,000 ) - (10,752 ) Balance at June 30, 2015 $ 466,204 $ 269,726 $ 53,006 $ 788,936 The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of June 30, 2015 and September 30, 2014, respectively. Carrying Accumulated Amount Amortization Net June 30, 2015: Trade names $ 137,927 $ - * $ 137,927 Trade names 1,806 (1,687 ) 119 Customer relationships 244,049 (37,123 ) 206,926 Copyrights/patents/other 11,480 (10,136 ) 1,344 $ 395,262 $ (48,946 ) $ 346,316 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 nine months ended June 30, 2015 included the impact of foreign currency fluctuations during the period, additional amortization, and trade name write-offs of approximately $4,842 in the SGK Brand Solutions segment. 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 $4,651 and $901 for the three-month periods ended June 30, 2015 and 2014, respectively. For the nine month periods ended June 30, 2015 and 2014, amortization expense was $13,872 and $3,284, respectively. Amortization expense is estimated to be $4,615 for the remainder of 2015, $18,137 in 2016, $17,157 in 2017, $16,018 in 2018 and $15,131 in 2019. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
Effects of the adjustments to the previously reported consolidated statements reconciliation | The following table reconciles the effect of the adjustments to the previously reported Consolidated Statements of Income for the three and nine month periods ended June 30, 2014: Three months ended June 30, 2014 Nine months ended June 30, 2014 Previously Reported Adjustment As Adjusted Previously Reported Adjustment As Adjusted Consolidated Statements of Income Other income (deductions), net $ (535 )* $ (364 ) $ (899 ) $ (1,641 )* $ (1,132 ) $ (2,773 ) Income before income taxes 28,966 (364 ) 28,602 58,854 (1,132 ) 57,722 Income taxes (9,327 ) 142 (9,185 ) (20,058 ) 442 (19,616 ) Net income 19,639 (222 ) 19,417 38,796 (690 ) 38,106 Net income attributable to Matthews shareholders 19,263 (222 ) 19,041 38,510 (690 ) 37,820 Comprehensive income 20,048 (222 ) 19,826 43,804 (690 ) 43,114 Earnings per share: Basic 0.70 - 0.70 1.41 (0.03 ) 1.38 Diluted 0.70 (0.01 ) 0.69 1.40 (0.03 ) 1.37 *Certain other reclassification adjustments are also reflected in the previously reported amounts to conform to the current period's presentation. These reclassification adjustments are not material to the prior year presentation. The following table reconciles the effect of the adjustments to the previously reported Consolidated Statement of Cash Flows for the nine month period ended June 30, 2014: Nine months ended June 30, 2014 Previously Reported Adjustment As Adjusted Consolidated Statements of Cash Flows Net income $ 38,796 $ (690 ) 38,106 Changes in deferred taxes (309 ) (442 ) (751 ) Net cash provided by operating activities 63,547 (1,132 ) 62,415 Net change in cash and cash equivalents 21,657 (1,132 ) 20,525 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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: June 30, 2015 September 30, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) - $ 622 - $ 622 - $ 2,457 - $ 2,457 Trading $ 19,438 - - 19,438 $ 19,038 - - $ 19,038 Total assets at $ 19,438 $ 622 - $ 20,060 $ 19,038 $ 2,457 - $ 21,495 Liabilities: Derivatives (1) - $ 1,444 - $ 1,444 - $ 2,127 - $ 2,127 Total liabilities - $ 1,444 - $ 1,444 - $ 2,127 - $ 2,127 (1) Interest rate swaps are valued based on observable market swap rates. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Inventories consisted of the following: June 30, 2015 September 30, 2014 Raw materials $ 44,836 $ 46,152 Work in process 34,006 38,631 Finished goods 64,069 68,059 $ 142,911 $ 152,842 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 Maturity Date October 2011 $25,000 1.67% 1.75% October 2015 June 2012 $40,000 1.88% 1.75% June 2022 August 2012 $35,000 1.74% 1.75% June 2022 September 2012 $25,000 3.03% 1.75% December 2015 September 2012 $25,000 1.24% 1.75% March 2017 November 2012 $25,000 1.33% 1.75% November 2015 May 2014 $25,000 1.35% 1.75% May 2018 November 2014 $25,000 1.26% 1.75% June 2018 March 2015 $25,000 1.49% 1.75% March 2019 |
Derivatives designated as hedging instruments | At June 30, 2015 and September 30, 2014, the interest rate swap contracts were reflected in the consolidated balance sheets as follows: Derivatives June 30, 2015 September 30, 2014 Current assets: Other current assets $ 89 $ 324 Long-term assets: Other assets 534 2,133 Current liabilities: Other current liabilities (953 ) (1,808 ) Long-term liabilities: Other liabilities (492 ) (319 ) Total derivatives $ (822 ) $ 330 |
Loss recognized on derivatives | The loss recognized on derivatives was as follows: Derivatives in Location of Loss Amount of Amount of Cash Flow Recognized in Loss Recognized Loss Recognized Hedging Income on in Income in Income Relationships Derivative on Derivatives on Derivatives Three Months ended June 30, Nine Months ended June 30, 2015 2014 2015 2014 Interest rate swaps Interest expense $(953) $(1,987) $(3,026) $(4,117) The Company recognized the following gains or losses in AOCI: Location of Gain or (Loss) Amount of Loss Reclassified Reclassified from Amount of (Loss) From AOCI into Derivatives in Recognized in AOCI into Income Cash Flow AOCI on Derivatives Income (Effective Portion*) Hedging Relationships June 30, 2015 June 30, 2014 (Effective Portion*) June 30, 2015 June 30, 2014 Interest rate swaps $(2,548) $(2,437) Interest expense $(1,846) $(2,511) *There is no ineffective portion or amount excluded from effectiveness testing. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Share-Based Payments [Abstract] | |
Restricted stock activity | The transactions for restricted stock for the nine months ended June 30, 2015 were as follows: Weighted- average grant-date Shares fair value Non-vested at September 30, 2014 575,150 $ 33.83 Granted 215,370 40.07 Vested (158,992 ) 34.42 Expired or forfeited (36,294 ) 28.53 Non-vested at June 30, 2015 595,234 36.26 |
Stock option activity | The transactions for shares under options for the nine months ended June 30, 2015 were as follows: Weighted- Weighted- average Aggregate average remaining intrinsic Shares exercise price contractual term value Outstanding, September 30, 2014 512,322 $38.62 Exercised (102,544 ) 38.10 Expired or forfeited (69,173 ) 36.53 Outstanding, June 30, 2015 340,605 39.20 1.0 $4,747 Exercisable, June 30, 2015 97,000 38.78 0.8 1,392 |
Non-vested options activity | The transactions for non-vested options for the nine months ended June 30, 2015 were as follows: Weighted-average grant-date Shares fair value Non-vested at September 30, 2014 312,442 $11.21 Expired or forfeited (68,837 ) 11.70 Non-vested at June 30, 2015 243,605 11.07 |
Assumptions used in estimating fair value | The following table indicates the assumptions used in estimating fair value of restricted stock for the nine months ended June 30, 2015 and 2014. Nine Months Ended June 30, 2015 2014 Expected volatility 22.2 % 26.6 % Dividend yield 1.0 % 1.1 % Average risk-free interest rate 1.7 % 1.4 % Average expected term (years) 1.8 2.0 |
Earnings Per Share Attributab26
Earnings Per Share Attributable to Matthews' Shareholders (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Net income attributable to Matthews shareholders $ 23,140 $ 19,041 $ 46,475 $ 37,820 Less: dividends and undistributed earnings 2 35 8 128 Net income available to Matthews shareholders $ 23,138 $ 19,006 $ 46,467 $ 37,692 Weighted-average shares outstanding (in thousands): Basic shares 32,962 27,294 32,947 27,223 Effect of dilutive securities 234 197 258 227 Diluted shares 33,196 27,491 33,205 27,450 |
Pension and Other Postretirem27
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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 June 30, Pension Other Postretirement 2015 2014 2015 2014 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 ) (23 ) Net actuarial loss (gain) 1,564 991 - (49 ) Net benefit cost $ 2,849 $ 2,338 $ 286 $ 267 Nine months ended June 30, Pension Other Postretirement 2015 2014 2015 2014 Service cost $ 4,965 $ 4,746 $ 342 $ 327 Interest cost 6,435 6,639 663 690 Expected return on plan assets (7,410 ) (7,188 ) - - Amortization: Prior service cost (135 ) (156 ) (147 ) (66 ) Net actuarial loss (gain) 4,692 2,973 - (147 ) Net benefit cost $ 8,547 $ 7,014 $ 858 $ 804 |
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 nine months ended June 30, 2015: Supplemental retirement plan $ 543 $ - Other postretirement plan - 1,019 Additional contributions expected in fiscal 2015: Supplemental retirement plan 190 - Other postretirement plan - 250 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Change in AOCI by component | The changes in AOCI by component, net of tax, for the three month periods ended June 30, 2015 and 2014 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2015 $ (37,761 ) $ (95,297 ) $ (1,746 ) $ (134,804 ) OCI before reclassification - 8,283 664 8,947 Amounts reclassified from AOCI (a) 876 - (b) 581 1,457 Net current-period OCI 876 8,283 1,245 10,404 Balance, June 30, 2015 $ (36,885 ) $ (87,014 ) $ (501 ) $ (124,400 ) Attributable to noncontrolling interest: Balance, March 31, 2015 - $ 445 - $ 445 OCI before reclassification - (9 ) - (9 ) Net current-period OCI - (9 ) - (9 ) Balance, June 30, 2015 - $ 436 - $ 436 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, March 31, 2014 $ (29,043 ) $ 6,483 $ 273 $ (22,287 ) OCI before reclassification - 477 (1,965 ) (1,488 ) Amounts reclassified from AOCI (a) 565 - (b) 1,212 1,777 Net current-period OCI 565 477 (753 ) 289 Balance, June 30, 2014 $ (28,478 ) $ 6,960 $ (480 ) $ (21,998 ) Attributable to noncontrolling interest: Balance, March 31, 2014 - $ 347 - $ 347 OCI before reclassification - 120 - 120 Net current-period OCI - 120 - 120 Balance, June 30, 2014 - $ 467 - $ 467 (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). The changes in AOCI by component, net of tax, for the nine month periods ended June 30, 2015 and 2014 were as follows: 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 - (59,647 ) (2,548 ) (62,195 ) Amounts reclassified from AOCI (a) 2,766 - (b) 1,846 4,612 Net current-period OCI 2,766 (59,647 ) (702 ) (57,583 ) Balance, June 30, 2015 $ (36,885 ) $ (87,014 ) $ (501 ) $ (124,400 ) Attributable to noncontrolling interest: Balance, September 30, 2014 - $ 516 - $ 516 OCI before reclassification - (80 ) - (80 ) Net current-period OCI - (80 ) - (80 ) Balance, June 30, 2015 - $ 436 - $ 436 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2013 $ (30,100 ) $ 3,714 $ (554 ) $ (26,940 ) OCI before reclassification - 3,246 (2,437 ) 809 Amounts reclassified from AOCI (a) 1,622 - (b) 2,511 4,133 Net current-period OCI 1,622 3,246 74 4,942 Balance, June 30, 2014 $ (28,478 ) $ 6,960 $ (480 ) $ (21,998 ) Attributable to noncontrolling interest: Balance, September 30, 2013 - $ 401 - $ 401 OCI before reclassification - 66 - 66 Net current-period OCI - 66 - 66 Balance, June 30, 2014 - $ 467 - $ 467 (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 and nine month periods ended June 30, 2015 were as follows: Amount reclassified from AOCI Details about AOCI Components Three months ended June 30, 2015 Nine months ended June 30, 2015 Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 94 (a) $ 282 Actuarial losses (1,564 ) (a) (4,692 ) (1,470 ) (b) (4,410 ) Total before tax (594 ) (1,644 ) Tax provision (benefit) $ (876 ) $ (2,766 ) Net of tax Derivatives Interest rate swap contracts $ (953 ) $ (3,026 ) Interest expense (953 ) (b) (3,026 ) Total before tax (372 ) (1,180 ) Tax provision (benefit) $ (581 ) $ (1,846 ) Net of tax Reclassifications out of AOCI for the three and nine month periods ended June 30, 2014 were as follows: Amount reclassified from AOCI Details about AOCI Components Three months ended June 30, 2014 Nine months ended June 30, 2014 Affected line item in the Statement of income Postretirement benefit plans Prior service (cost) credit $ 75 (a) $ 222 Actuarial losses (942 ) (a) (2,826 ) (867 ) (b) (2,604 ) Total before tax (302 ) (982 ) Tax provision (benefit) $ (565 ) $ (1,622 ) Net of tax Derivatives Interest rate swap contracts $ (1,987 ) $ (4,117 ) Interest expense (1,987 ) (b) (4,117 ) Total before tax (775 ) (1,606 ) Tax provision (benefit) $ (1,212 ) $ (2,511 ) 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) | 9 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Tax years subject to examination | As of June 30, 2015, the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2012 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) | 9 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Information about the segments | Information about the Company's segments follows: Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Sales to external customers SGK Brand Solutions $ 205,082 $ 116,338 $ 597,638 $ 305,741 Memorialization 125,598 137,926 372,076 380,937 Industrial 34,072 25,719 88,016 70,087 $ 364,752 $ 279,983 $ 1,057,730 $ 756,765 Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Operating profit SGK Brand Solutions $ 5,286 $ 6,614 $ 5,536 $ 9,219 Memorialization 17,715 22,410 57,374 52,057 Industrial 4,404 2,806 9,355 5,776 $ 27,405 $ 31,830 $ 72,265 $ 67,052 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Sales $ 364,752 $ 384,292 $ 1,057,730 $ 1,077,240 Income before income taxes 32,459 28,647 64,600 62,725 Net income 23,140 19,531 46,475 42,813 Earnings per share $.70 $.59 $1.40 $1.30 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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 - - 2,226 2,226 Translation and other adjustments (29,094 ) (3,556 ) (107 ) (32,757 ) Goodwill 471,956 274,726 53,006 799,688 Accumulated impairment losses (5,752 ) (5,000 ) - (10,752 ) Balance at June 30, 2015 $ 466,204 $ 269,726 $ 53,006 $ 788,936 |
Other intangible assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of June 30, 2015 and September 30, 2014, respectively. Carrying Accumulated Amount Amortization Net June 30, 2015: Trade names $ 137,927 $ - * $ 137,927 Trade names 1,806 (1,687 ) 119 Customer relationships 244,049 (37,123 ) 206,926 Copyrights/patents/other 11,480 (10,136 ) 1,344 $ 395,262 $ (48,946 ) $ 346,316 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 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Reclassifications and Revisions [Abstract] | |||||||
Cumulative theft determined | $ (14,771) | ||||||
Pre-tax earnings amount | $ 2,170 | 2,170 | $ 1,720 | $ 1,257 | |||
Consolidated Statements of Income [Abstract] | |||||||
Other income (deductions), net | 9,845 | $ (899) | 6,420 | $ (2,773) | |||
Income before income taxes | 32,459 | 28,602 | 64,600 | 57,722 | |||
Income taxes | (9,245) | (9,185) | (18,314) | (19,616) | |||
Net income | 23,214 | 19,417 | 46,286 | 38,106 | |||
Net income attributable to Matthews shareholders | 23,140 | 19,041 | 46,475 | 37,820 | |||
Comprehensive income | $ 33,609 | $ 19,826 | $ (11,377) | $ 43,114 | |||
Earnings per share: | |||||||
Basic (in dollars per share) | $ 0.70 | $ 0.70 | $ 1.41 | $ 1.38 | |||
Diluted (in dollars per share) | $ 0.70 | $ 0.69 | $ 1.40 | $ 1.37 | |||
Consolidated Statements of Cash Flows [Abstract] | |||||||
Net income | $ 23,214 | $ 19,417 | $ 46,286 | $ 38,106 | |||
Changes in deferred taxes | (12,528) | (751) | |||||
Net cash provided by operating activities | 102,339 | 62,415 | |||||
Net change in cash and cash equivalents | $ 6,785 | 20,525 | |||||
Previously Reported [Member] | |||||||
Consolidated Statements of Income [Abstract] | |||||||
Other income (deductions), net | [1] | (535) | (1,641) | ||||
Income before income taxes | 28,966 | 58,854 | |||||
Income taxes | (9,327) | (20,058) | |||||
Net income | 19,639 | 38,796 | |||||
Net income attributable to Matthews shareholders | 19,263 | 38,510 | |||||
Comprehensive income | $ 20,048 | $ 43,804 | |||||
Earnings per share: | |||||||
Basic (in dollars per share) | $ 0.70 | $ 1.41 | |||||
Diluted (in dollars per share) | $ 0.70 | $ 1.40 | |||||
Consolidated Statements of Cash Flows [Abstract] | |||||||
Net income | $ 19,639 | $ 38,796 | |||||
Changes in deferred taxes | (309) | ||||||
Net cash provided by operating activities | 63,547 | ||||||
Net change in cash and cash equivalents | 21,657 | ||||||
Adjustment [Member] | |||||||
Consolidated Statements of Income [Abstract] | |||||||
Other income (deductions), net | (364) | (1,132) | |||||
Income before income taxes | (364) | (1,132) | |||||
Income taxes | 142 | 442 | |||||
Net income | (222) | (690) | |||||
Net income attributable to Matthews shareholders | (222) | (690) | |||||
Comprehensive income | $ (222) | $ (690) | |||||
Earnings per share: | |||||||
Basic (in dollars per share) | $ 0 | $ (0.03) | |||||
Diluted (in dollars per share) | $ (0.01) | $ (0.03) | |||||
Consolidated Statements of Cash Flows [Abstract] | |||||||
Net income | $ (222) | $ (690) | |||||
Changes in deferred taxes | (442) | ||||||
Net cash provided by operating activities | (1,132) | ||||||
Net change in cash and cash equivalents | $ (1,132) | ||||||
[1] | Certain other reclassification adjustments are also reflected in the previously reported amounts to conform to the current period's presentation. These reclassification adjustments are not material to the prior year presentation. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | |
Assets [Abstract] | |||
Derivatives | [1] | $ 622 | $ 2,457 |
Trading securities | 19,438 | 19,038 | |
Total assets at fair value | 20,060 | 21,495 | |
Liabilities [Abstract] | |||
Derivatives | [1] | 1,444 | 2,127 |
Total liabilities at fair value | 1,444 | 2,127 | |
Level 1 [Member] | |||
Assets [Abstract] | |||
Derivatives | [1] | 0 | 0 |
Trading securities | 19,438 | 19,038 | |
Total assets at fair value | 19,438 | 19,038 | |
Liabilities [Abstract] | |||
Derivatives | [1] | 0 | 0 |
Total liabilities at fair value | 0 | 0 | |
Level 2 [Member] | |||
Assets [Abstract] | |||
Derivatives | [1] | 622 | 2,457 |
Trading securities | 0 | 0 | |
Total assets at fair value | 622 | 2,457 | |
Liabilities [Abstract] | |||
Derivatives | [1] | 1,444 | 2,127 |
Total liabilities at fair value | 1,444 | 2,127 | |
Level 3 [Member] | |||
Assets [Abstract] | |||
Derivatives | [1] | 0 | 0 |
Trading securities | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities [Abstract] | |||
Derivatives | [1] | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | Interest rate swaps are valued based on observable market swap rates. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Inventory, net [Abstract] | ||
Raw materials | $ 44,836 | $ 46,152 |
Work in process | 34,006 | 38,631 |
Finished goods | 64,069 | 68,059 |
Inventories | $ 142,911 | $ 152,842 |
Debt (Details)
Debt (Details) € in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015USD ($)LinesofCredit | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)LinesofCredit | Jun. 30, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2015EUR (€)LinesofCredit | Sep. 30, 2014EUR (€) | ||
Line of Credit Facility [Line Items] | ||||||||
Other current assets | $ 54,274 | $ 54,274 | $ 49,456 | |||||
Interest rate cash flow hedges [Abstract] | ||||||||
Unrealized gain (loss) on fair value of interest rate swaps, before tax | (822) | (330) | ||||||
Unrealized gain (loss) on fair value of interest rate swaps, after tax | (501) | (201) | ||||||
Unrealized loss expected to be recognized over the next 12 months | (527) | (527) | ||||||
Domestic Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 900,000 | $ 900,000 | 500,000 | |||||
Interest rate on borrowings (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maximum available for issuance of trade and standby letters of credit | $ 30,000 | $ 30,000 | ||||||
Outstanding borrowings | $ 655,425 | $ 655,425 | 680,000 | |||||
Weighted-average interest rate on outstanding borrowings (in hundredths) | 2.51% | 2.55% | 2.51% | 2.55% | 2.51% | |||
Domestic Revolving Credit Facility [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Annual commitment fee range on unused portion (in hundredths) | 0.15% | |||||||
Domestic Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Annual commitment fee range on unused portion (in hundredths) | 0.25% | |||||||
Domestic Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings, based on leverage ratio (in hundredths) | 0.75% | |||||||
Domestic Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings, based on leverage ratio (in hundredths) | 2.00% | |||||||
Credit Facility With European Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 38,994 | $ 38,994 | € 35,000 | |||||
Outstanding borrowings | $ 12,586 | $ 12,586 | 22,055 | € 11,300 | € 17,500 | |||
Weighted-average interest rate on outstanding borrowings (in hundredths) | 1.50% | 1.35% | 1.50% | 1.35% | 1.50% | |||
Lines of Credit with Italian Banks [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | $ 4,020 | $ 4,020 | 6,063 | € 3,600 | 4,800 | |||
Letter of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Other current assets | $ 12,925 | $ 12,925 | ||||||
Matthews International S.p.A [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Weighted-average interest rate on outstanding borrowings (in hundredths) | 3.21% | 3.13% | 3.21% | 3.13% | 3.21% | |||
Matthews International S.p.A [Member] | Lines of Credit with Italian Banks [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 12,623 | $ 12,623 | € 11,300 | |||||
Outstanding borrowings | $ 5,094 | $ 5,094 | 6,922 | € 4,600 | 5,500 | |||
Number of lines of credit | LinesofCredit | 3 | 3 | 3 | |||||
Saueressig [Member] | Credit Facility With European Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | $ 1,790 | $ 1,790 | 1,576 | € 1,060 | 1,200 | |||
Weighted-average interest rate on outstanding borrowings (in hundredths) | 3.85% | 4.04% | 3.85% | 4.04% | 3.85% | |||
Wetzel GmbH [Member] | Credit Facility With European Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | $ 2,650 | $ 2,650 | 3,624 | € 2,400 | € 2,900 | |||
Weighted-average interest rate on outstanding borrowings (in hundredths) | 5.82% | 7.62% | 5.82% | 7.62% | 5.82% | |||
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Total derivatives | $ (822) | $ (822) | 330 | |||||
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Current assets: Other Current Assets [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Assets derivatives | 89 | 89 | 324 | |||||
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Long-term assets: Other Assets [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Assets derivatives | 534 | 534 | 2,133 | |||||
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Current Liabilities: Other Current Liabilities [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Liability derivatives | (953) | (953) | (1,808) | |||||
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Long-Term Liabilities: Other Liabilities [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Liability derivatives | (492) | $ (492) | $ (319) | |||||
Interest Rate Swap 1 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | October 2,011 | |||||||
Amount | $ 25,000 | $ 25,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.67% | 1.67% | 1.67% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | October 2,015 | |||||||
Interest Rate Swap 2 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | June 2,012 | |||||||
Amount | $ 40,000 | $ 40,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.88% | 1.88% | 1.88% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | June 2,022 | |||||||
Interest Rate Swap 3 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | August 2,012 | |||||||
Amount | $ 35,000 | $ 35,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.74% | 1.74% | 1.74% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | June 2,022 | |||||||
Interest Rate Swap 4 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | September 2,012 | |||||||
Amount | $ 25,000 | $ 25,000 | ||||||
Fixed Interest Rate (in hundredths) | 3.03% | 3.03% | 3.03% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | December 2,015 | |||||||
Interest Rate Swap 5 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | September 2,012 | |||||||
Amount | $ 25,000 | $ 25,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.24% | 1.24% | 1.24% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | March 2,017 | |||||||
Interest Rate Swap 6 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | November 2,012 | |||||||
Amount | $ 25,000 | $ 25,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.33% | 1.33% | 1.33% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | November 2,015 | |||||||
Interest Rate Swap 7 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | May 2,014 | |||||||
Amount | $ 25,000 | $ 25,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.35% | 1.35% | 1.35% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | May 2,018 | |||||||
Interest Rate Swap 8 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | November 2,014 | |||||||
Amount | $ 25,000 | $ 25,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.26% | 1.26% | 1.26% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | June 2,018 | |||||||
Interest Rate Swap 9 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Effective Date | March 2,015 | |||||||
Amount | $ 25,000 | $ 25,000 | ||||||
Fixed Interest Rate (in hundredths) | 1.49% | 1.49% | 1.49% | |||||
Interest Rate Spread (in hundredths) | 1.75% | 1.75% | 1.75% | |||||
Maturity Date | March 2,019 | |||||||
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of (loss) recognized in AOCI on derivatives | $ (2,548) | $ (2,437) | ||||||
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of loss recognized in income (loss) on derivatives | $ (953) | $ (1,987) | (3,026) | (4,117) | ||||
Amount of gain or (loss) reclassified from AOCI into income (effective portion) | [1] | $ (1,846) | $ (2,511) | |||||
[1] | There is no ineffective portion or amount excluded from effectiveness testing. |
Share-Based Payments (Details)
Share-Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based compensation, aggregate disclosures [Abstract] | ||||
Total stock-based compensation cost | $ 2,274 | $ 1,667 | $ 6,838 | $ 4,906 |
Future income tax benefit from compensation expense recognized | 887 | 650 | 2,667 | 1,913 |
Cash received from stock options exercised | 129 | 217 | 3,907 | 2,045 |
Tax benefit realized from options exercised | $ 16 | $ 1 | $ 337 | $ 186 |
2012 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) | 1,476,798 | |||
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 date, 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. | |||
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) | 215,370 | |||
Vested (in shares) | (158,992) | |||
Expired or forfeited (in shares) | (36,294) | |||
Non-vested at end of period (in shares) | 595,234 | 595,234 | ||
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) | 40.07 | |||
Vested, weighted-average grant-date fair value (in dollars per share) | 34.42 | |||
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | 28.53 | |||
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ 36.26 | $ 36.26 | ||
Unrecognized compensation cost [Abstract] | ||||
Unrecognized compensation cost on non-vested awards | $ 9,774 | |||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 1 year 8 months 12 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 Company’s 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 | |||
Exercised (in shares) | (102,544) | |||
Expired or forfeited (in shares) | (69,173) | |||
Outstanding, end of period (in shares) | 340,605 | 340,605 | ||
Exercisable (in shares) | 97,000 | 97,000 | ||
Outstanding, weighted-average exercise price, beginning of period (in dollars per share) | $ 38.62 | |||
Exercised, weighted-average exercise price (in dollars per share) | 38.10 | |||
Expired or forfeited, weighted-average exercise price (in dollars per share) | 36.53 | |||
Outstanding, weighted-average exercise price, end of period (in dollars per share) | $ 39.20 | $ 39.20 | ||
Exercisable, weighted-average exercise price (in dollars per share) | $ 38.78 | |||
Outstanding, weighted-average remaining contractual term | 1 year | |||
Outstanding, aggregate intrinsic value | $ 4,747 | |||
Exercisable, weighted-average remaining contractual term | 9 months 18 days | |||
Exercisable, aggregate intrinsic value | $ 1,392 | |||
Intrinsic value of options exercised | $ 897 | $ 510 | ||
Non-vested options activity [Roll Forward] | ||||
Non-vested at beginning of period (in shares) | 312,442 | |||
Expired or forfeited (in shares) | (68,837) | |||
Non-vested at end of period (in shares) | 243,605 | 243,605 | ||
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 | $ 11.07 | ||
Director Fee Plan, aggregate disclosures [Abstract] | ||||
Option awards outstanding (in shares) | 340,605 | 512,322 | ||
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 | 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 | 0 | ||
Total restricted stock awards granted to date (in shares) | 136,568 | |||
Restricted stock awards unvested (in shares) | 33,418 |
Earnings Per Share Attributab38
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share Attributable to Matthews' Shareholders [Abstract] | ||||
Net income attributable to Matthews shareholders | $ 23,140 | $ 19,041 | $ 46,475 | $ 37,820 |
Less: dividends and undistributed earnings allocated to participating securities | 2 | 35 | 8 | 128 |
Net income available to Matthews shareholders | $ 23,138 | $ 19,006 | $ 46,467 | $ 37,692 |
Weighted-average shares outstanding [Abstract] | ||||
Basic shares (in shares) | 32,962,000 | 27,294,000 | 32,947,000 | 27,223,000 |
Effect of dilutive securities (in shares) | 234,000 | 197,000 | 258,000 | 227,000 |
Diluted shares (in shares) | 33,196,000 | 27,491,000 | 33,205,000 | 27,450,000 |
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 | 0 | 0 |
Pension and Other Postretirem39
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Benefit plan contributions [Abstract] | ||||
Agreement to settle installment payment obligation in exchange for a lump-sum payment | $ 18,157 | |||
Settlement of gain recognized in other income (deductions) | 11,522 | |||
Pension [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 1,655 | $ 1,582 | $ 4,965 | $ 4,746 |
Interest cost | 2,145 | 2,213 | 6,435 | 6,639 |
Expected return on plan assets | (2,470) | (2,396) | (7,410) | (7,188) |
Amortization [Abstract] | ||||
Prior service cost | (45) | (52) | (135) | (156) |
Net actuarial loss (gain) | 1,564 | 991 | 4,692 | 2,973 |
Net benefit cost | 2,849 | 2,338 | 8,547 | 7,014 |
Other Postretirement [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 114 | 109 | 342 | 327 |
Interest cost | 221 | 230 | 663 | 690 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization [Abstract] | ||||
Prior service cost | (49) | (23) | (147) | (66) |
Net actuarial loss (gain) | 0 | (49) | 0 | (147) |
Net benefit cost | $ 286 | $ 267 | 858 | $ 804 |
Benefit plan contributions [Abstract] | ||||
Other postretirement plan | 1,019 | |||
Additional contributions expected in fiscal 2015 | 250 | |||
Supplemental Retirement Plan [Member] | ||||
Benefit plan contributions [Abstract] | ||||
Supplemental retirement plan | 543 | |||
Additional contributions expected in fiscal 2015 | $ 190 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | $ (66,817) | ||||
Other comprehensive income (loss), net of tax | $ 10,395 | $ 409 | (57,663) | $ 5,008 | |
Balance | (124,400) | (124,400) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | (4,849) | (2,785) | (15,116) | (8,240) | |
Total before tax | 32,459 | 28,602 | 64,600 | 57,722 | |
Income taxes | (9,245) | (9,185) | (18,314) | (19,616) | |
Net income | 23,214 | 19,417 | 46,286 | 38,106 | |
Matthews [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (134,804) | (22,287) | (66,817) | (26,940) | |
OCI before reclassification | 8,947 | (1,488) | (62,195) | 809 | |
Amounts reclassified from AOCI | 1,457 | 1,777 | 4,612 | 4,133 | |
Other comprehensive income (loss), net of tax | 10,404 | 289 | (57,583) | 4,942 | |
Balance | (124,400) | (21,998) | (124,400) | (21,998) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income | 23,140 | 19,041 | 46,475 | 37,820 | |
Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 445 | 347 | 516 | 401 | |
OCI before reclassification | (9) | 120 | (80) | 66 | |
Other comprehensive income (loss), net of tax | (9) | 120 | (80) | 66 | |
Balance | 436 | 467 | 436 | 467 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income | 74 | 376 | (189) | 286 | |
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 | [1] | 94 | 75 | 282 | 222 |
Actuarial losses | [1] | (1,564) | (942) | (4,692) | (2,826) |
Total before tax | [2] | (1,470) | (867) | (4,410) | (2,604) |
Income taxes | (594) | (302) | (1,644) | (982) | |
Net income | (876) | (565) | (2,766) | (1,622) | |
Post-retirement Benefit Plans [Member] | Matthews [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (37,761) | (29,043) | (39,651) | (30,100) | |
OCI before reclassification | 0 | 0 | 0 | 0 | |
Amounts reclassified from AOCI | [3] | 876 | 565 | 2,766 | 1,622 |
Other comprehensive income (loss), net of tax | 876 | 565 | 2,766 | 1,622 | |
Balance | (36,885) | (28,478) | (36,885) | (28,478) | |
Post-retirement Benefit Plans [Member] | Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 0 | 0 | 0 | 0 | |
OCI before reclassification | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | |
Balance | 0 | 0 | 0 | 0 | |
Currency Translation Adjustment [Member] | Matthews [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (95,297) | 6,483 | (27,367) | 3,714 | |
OCI before reclassification | 8,283 | 477 | (59,647) | 3,246 | |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 8,283 | 477 | (59,647) | 3,246 | |
Balance | (87,014) | 6,960 | (87,014) | 6,960 | |
Currency Translation Adjustment [Member] | Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 445 | 347 | 516 | 401 | |
OCI before reclassification | (9) | 120 | (80) | 66 | |
Other comprehensive income (loss), net of tax | (9) | 120 | (80) | 66 | |
Balance | 436 | 467 | 436 | 467 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | (953) | (1,987) | (3,026) | (4,117) | |
Total before tax | [2] | (953) | (1,987) | (3,026) | (4,117) |
Income taxes | (372) | (775) | (1,180) | (1,606) | |
Net income | (581) | (1,212) | (1,846) | (2,511) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Matthews [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (1,746) | 273 | 201 | (554) | |
OCI before reclassification | 664 | (1,965) | (2,548) | (2,437) | |
Amounts reclassified from AOCI | [4] | 581 | 1,212 | 1,846 | 2,511 |
Other comprehensive income (loss), net of tax | 1,245 | (753) | (702) | 74 | |
Balance | (501) | (480) | (501) | (480) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 0 | 0 | 0 | 0 | |
OCI before reclassification | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | |
Balance | $ 0 | $ 0 | $ 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 ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Income Taxes [Abstract] | |||
Effective tax rate (in hundredths) | 28.30% | 34.00% | |
Federal statutory rate (in hundredths) | 35.00% | ||
Unrecognized tax benefits that would impact effective tax rate | $ 4,337 | $ 4,311 | |
Total penalties and interest accrued | $ 2,060 | $ 2,135 | |
United States - Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Years under examination | 2012 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) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | |
Segment Information [Abstract] | ||||
Number of operating segments | Segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | $ 364,752 | $ 279,983 | $ 1,057,730 | $ 756,765 |
Operating profit | 27,405 | 31,830 | 72,265 | 67,052 |
Reporting Segments [Member] | SGK Brand Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 205,082 | 116,338 | 597,638 | 305,741 |
Operating profit | 5,286 | 6,614 | 5,536 | 9,219 |
Reporting Segments [Member] | Memorialization [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 125,598 | 137,926 | 372,076 | 380,937 |
Operating profit | 17,715 | 22,410 | 57,374 | 52,057 |
Reporting Segments [Member] | Industrial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales to external customers | 34,072 | 25,719 | 88,016 | 70,087 |
Operating profit | $ 4,404 | $ 2,806 | $ 9,355 | $ 5,776 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | Jun. 15, 2015USD ($) | Jun. 08, 2015USD ($) | Jul. 29, 2014USD ($)LocationCountry$ / sharesshares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares |
Indefinite-lived intangible assets [Abstract] | |||||||
Sales | $ 364,752 | $ 348,292 | $ 1,057,730 | $ 1,077,240 | |||
Income before income taxes | 32,459 | 28,647 | 64,600 | 62,725 | |||
Net income | $ 23,140 | $ 19,531 | $ 46,475 | $ 42,813 | |||
Earnings per share | $ / shares | $ 0.70 | $ 0.59 | $ 1.40 | $ 1.30 | |||
Schawk, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price payable for each SGK share in cash (in dollars per share) | $ / shares | $ 11.80 | ||||||
Purchase price payable for each SGK share in common stock (in shares) | shares | 0.20582 | ||||||
Implied price of entity's common stock (in dollars per share) | $ / shares | $ 20.74 | ||||||
Total enterprise value | $ 616,686 | ||||||
Number of service deliverable locations | Location | 155 | ||||||
Number of service deliverable countries | Country | 20 | ||||||
Aurora Products Group, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price of acquisition | $ 214,000 | ||||||
Additional purchase price of acquisition | $ 10,000 | ||||||
ImTech [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price of acquisition | $ 1,703 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets, Goodwill (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross | $ 830,219 |
Accumulated impairment losses | (10,752) |
Goodwill | 819,467 |
Additions during period | 2,226 |
Translation and other adjustments | (32,757) |
Goodwill, gross | 799,688 |
Accumulated impairment losses | (10,752) |
Goodwill | 788,936 |
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 | (29,094) |
Goodwill, gross | 471,956 |
Accumulated impairment losses | (5,752) |
Goodwill | 466,204 |
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 | (3,556) |
Goodwill, gross | 274,726 |
Accumulated impairment losses | (5,000) |
Goodwill | 269,726 |
Industrial [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross | 50,887 |
Accumulated impairment losses | 0 |
Goodwill | 50,887 |
Additions during period | 2,226 |
Translation and other adjustments | (107) |
Goodwill, gross | 53,006 |
Accumulated impairment losses | 0 |
Goodwill | $ 53,006 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | ||
Other Intangible Assets [Abstract] | |||||||
Carrying Amount | $ 395,262 | $ 395,262 | $ 418,352 | ||||
Accumulated Amortization | (48,946) | (48,946) | (36,490) | ||||
Net | 346,316 | 346,316 | 381,862 | ||||
Net proceeds from acquisition | 10,400 | ||||||
Amortization expense on intangible assets | 4,651 | $ 901 | 13,872 | $ 3,284 | |||
Future amortization expense [Abstract] | |||||||
Future amortization expense for the remainder 2015 | 4,615 | 4,615 | |||||
Future amortization expense 2016 | 18,137 | 18,137 | |||||
Future amortization expense 2017 | 17,157 | 17,157 | |||||
Future amortization expense 2018 | 16,018 | 16,018 | |||||
Future amortization expense 2019 | 15,131 | 15,131 | |||||
Trade Names Not Subject to Amortization [Member] | |||||||
Other Intangible Assets [Abstract] | |||||||
Carrying Amount | 137,927 | 137,927 | 142,529 | ||||
Accumulated Amortization | [1] | 0 | 0 | 0 | |||
Net | 137,927 | 137,927 | 142,529 | ||||
Trade Names [Member] | |||||||
Other Intangible Assets [Abstract] | |||||||
Carrying Amount | 1,806 | 1,806 | 2,854 | ||||
Accumulated Amortization | (1,687) | (1,687) | (2,121) | ||||
Net | 119 | 119 | 733 | ||||
Customer Relationships [Member] | |||||||
Other Intangible Assets [Abstract] | |||||||
Carrying Amount | 244,049 | 244,049 | 258,441 | ||||
Accumulated Amortization | (37,123) | (37,123) | (24,785) | ||||
Net | 206,926 | 206,926 | 233,656 | ||||
Copyrights/Patents/Other [Member] | |||||||
Other Intangible Assets [Abstract] | |||||||
Carrying Amount | 11,480 | 11,480 | 14,528 | ||||
Accumulated Amortization | (10,136) | (10,136) | (9,584) | ||||
Net | 1,344 | 1,344 | $ 4,944 | ||||
SGK Brand Solutions [Member] | Trade Names [Member] | |||||||
Other Intangible Assets [Abstract] | |||||||
Impairment Loss | $ 4,842 | $ 4,842 | $ 4,842 | ||||
[1] | Not subject to amortization |