Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 31, 2017 | Mar. 31, 2017 | |
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 Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2.1 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 32,148,579 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 57,515 | $ 55,711 |
Accounts receivable, net of allowance for doubtful accounts of $11,622 and $11,516, respectively | 319,566 | 294,915 |
Inventories | 171,445 | 162,472 |
Other current assets | 46,533 | 61,086 |
Total current assets | 595,059 | 574,184 |
Investments | 37,667 | 31,365 |
Property, plant and equipment, net | 235,533 | 219,492 |
Deferred income taxes | 2,456 | 775 |
Other assets | 51,758 | 19,895 |
Goodwill | 897,794 | 851,489 |
Other intangible assets, net | 424,382 | 393,841 |
Total assets | 2,244,649 | 2,091,041 |
Current liabilities: | ||
Long-term debt, current maturities | 29,528 | 27,747 |
Trade accounts payable | 66,607 | 58,118 |
Accrued compensation | 62,210 | 63,737 |
Accrued income taxes | 21,386 | 15,527 |
Other current liabilities | 105,401 | 94,219 |
Total current liabilities | 285,132 | 259,348 |
Long-term debt | 881,602 | 844,807 |
Accrued pension | 103,273 | 110,941 |
Postretirement benefits | 19,273 | 22,143 |
Deferred income taxes | 139,430 | 107,038 |
Other liabilities | 25,680 | 37,430 |
Total liabilities | 1,454,390 | 1,381,707 |
Shareholders' equity-Matthews: | ||
Class A common stock, $1.00 par value; authorized 70,000,000 shares; 36,333,992 shares issued | 36,334 | 36,334 |
Preferred stock, $100 par value, authorized 10,000 shares, none issued | 0 | 0 |
Additional paid-in capital | 123,432 | 117,088 |
Retained earnings | 948,830 | 896,224 |
Accumulated other comprehensive loss | (154,115) | (181,868) |
Treasury stock, 4,185,413 and 4,192,307 shares, respectively, at cost | (164,774) | (159,113) |
Total shareholders' equity-Matthews | 789,707 | 708,665 |
Noncontrolling interests | 552 | 669 |
Total shareholders' equity | 790,259 | 709,334 |
Total liabilities and shareholders' equity | $ 2,244,649 | $ 2,091,041 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Allowance for doubtful accounts | $ 11,622 | $ 11,516 |
Shareholders' equity-Matthews: | ||
Preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, authorized (in shares) | 10,000 | 10,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Treasury stock, at cost (in shares) | 4,185,413 | 4,192,307 |
Class A common stock | ||
Shareholders' equity-Matthews: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, issued (in shares) | 36,333,992 | 36,333,992 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | |||
Sales | $ 1,515,608 | $ 1,480,464 | $ 1,426,068 |
Cost of sales | (952,221) | (924,010) | (896,693) |
Gross profit | 563,387 | 556,454 | 529,375 |
Selling expense | (144,174) | (140,924) | (143,299) |
Administrative expense | (306,610) | (296,715) | (281,053) |
Operating profit | 112,603 | 118,815 | 105,023 |
Investment income | 2,468 | 2,061 | 175 |
Interest expense | (26,371) | (24,344) | (20,610) |
Other income (deductions), net | 7,587 | (1,298) | 5,064 |
Income before income taxes | 96,287 | 95,234 | 89,652 |
Income taxes | (22,354) | (29,073) | (26,364) |
Net income | 73,933 | 66,161 | 63,288 |
Net loss (income) attributable to noncontrolling interests | 435 | 588 | 161 |
Net income attributable to Matthews shareholders | $ 74,368 | $ 66,749 | $ 63,449 |
Earnings per share attributable to Matthews shareholders: | |||
Basic (in dollars per share) | $ 2.31 | $ 2.04 | $ 1.93 |
Diluted (in dollars per share) | $ 2.28 | $ 2.03 | $ 1.91 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income (loss) | $ 73,933 | $ 66,161 | $ 63,288 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment | 9,471 | (17,744) | (77,387) |
Pension plans and other postretirement benefits | 12,427 | (12,576) | (3,823) |
Unrecognized gain (loss) on derivatives: | |||
Net change from periodic revaluation | 7,043 | (3,230) | (4,841) |
Net amount reclassified to earnings | (1,069) | 1,919 | 2,392 |
Net change in unrecognized gain (loss) on derivatives | 5,974 | (1,311) | (2,449) |
Net current-period OCI | 27,872 | (31,631) | (83,659) |
Comprehensive income (loss) | 101,805 | 34,530 | (20,371) |
Noncontrolling Interest | |||
Net income (loss) | (435) | (588) | (161) |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment | 119 | (89) | (150) |
Pension plans and other postretirement benefits | 0 | 0 | 0 |
Unrecognized gain (loss) on derivatives: | |||
Net change from periodic revaluation | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 |
Net change in unrecognized gain (loss) on derivatives | 0 | 0 | 0 |
Net current-period OCI | 119 | (89) | (150) |
Comprehensive income (loss) | (316) | (677) | (311) |
Matthews | |||
Net income (loss) | 74,368 | 66,749 | 63,449 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment | 9,352 | (17,655) | (77,237) |
Pension plans and other postretirement benefits | 12,427 | (12,576) | (3,823) |
Unrecognized gain (loss) on derivatives: | |||
Net change from periodic revaluation | 7,043 | (3,230) | (4,841) |
Net amount reclassified to earnings | (1,069) | 1,919 | 2,392 |
Net change in unrecognized gain (loss) on derivatives | 5,974 | (1,311) | (2,449) |
Net current-period OCI | 27,753 | (31,542) | (83,509) |
Comprehensive income (loss) | $ 102,121 | $ 35,207 | $ (20,060) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income (net of tax) | Treasury Stock | Noncontrolling Interest |
Beginning Balance at Sep. 30, 2014 | $ 775,206 | $ 36,334 | $ 113,225 | $ 798,353 | $ (66,817) | $ (109,950) | $ 4,061 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 63,288 | 63,449 | (161) | ||||
Minimum pension liability | (3,823) | (3,823) | |||||
Translation adjustment | (77,387) | (77,237) | (150) | ||||
Fair value of derivatives | (2,449) | (2,449) | 0 | ||||
Comprehensive income (loss) | (20,371) | (311) | |||||
Stock-based compensation | 9,097 | 9,097 | |||||
Purchase of treasury stock | (14,567) | (14,567) | |||||
Issuance of treasury stock | 3,432 | (7,336) | 10,768 | ||||
Cancellations of treasury stock | 1,284 | (1,284) | |||||
Dividends | (17,847) | (17,847) | |||||
Distribution to noncontrolling interests | (95) | (95) | |||||
Transactions with noncontrolling interests | (809) | (380) | (429) | ||||
Ending Balance at Sep. 30, 2015 | 734,046 | 36,334 | 115,890 | 843,955 | (150,326) | (115,033) | 3,226 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 66,161 | 66,749 | (588) | ||||
Minimum pension liability | (12,576) | (12,576) | |||||
Translation adjustment | (17,744) | (17,655) | (89) | ||||
Fair value of derivatives | (1,311) | (1,311) | 0 | ||||
Comprehensive income (loss) | 34,530 | (677) | |||||
Stock-based compensation | 10,612 | 10,612 | |||||
Purchase of treasury stock | (57,998) | (57,998) | |||||
Issuance of treasury stock | 8,190 | (5,972) | 14,162 | ||||
Cancellations of treasury stock | 244 | (244) | |||||
Dividends | (14,480) | (14,480) | |||||
Transactions with noncontrolling interests | (5,566) | (3,686) | (1,880) | ||||
Ending Balance at Sep. 30, 2016 | 709,334 | 36,334 | 117,088 | 896,224 | (181,868) | (159,113) | 669 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 73,933 | 74,368 | (435) | ||||
Minimum pension liability | 12,427 | 12,427 | |||||
Translation adjustment | 9,471 | 9,352 | 119 | ||||
Fair value of derivatives | 5,974 | 5,974 | 0 | ||||
Comprehensive income (loss) | 101,805 | (316) | |||||
Stock-based compensation | 14,562 | 14,562 | |||||
Purchase of treasury stock | (14,025) | (14,025) | |||||
Issuance of treasury stock | 146 | (8,397) | 8,543 | ||||
Cancellations of treasury stock | 179 | (179) | |||||
Dividends | (21,762) | (21,762) | |||||
Transactions with noncontrolling interests | 199 | 199 | |||||
Ending Balance at Sep. 30, 2017 | $ 790,259 | $ 36,334 | $ 123,432 | $ 948,830 | $ (154,115) | $ (164,774) | $ 552 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Purchase of treasury stock, shares (in shares) | 212,424 | 1,132,452 | 304,859 |
Issuance of treasury stock, shares (in shares) | 221,958 | 404,307 | 334,850 |
Cancellation of treasury stock, shares (in shares) | 2,640 | 5,237 | 34,789 |
Dividends, per share (in dollars per share) | $ 0.54 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 73,933 | $ 66,161 | $ 63,288 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 67,981 | 65,480 | 62,620 |
Stock-based compensation expense | 14,562 | 10,612 | 9,097 |
Change in deferred taxes | 9,725 | (3,971) | 9,188 |
Gain on sale of assets | (776) | (73) | (276) |
Unrealized (gain) loss on investments | (2,660) | (1,426) | 377 |
Trade name write-offs | 0 | 0 | 4,842 |
Changes in working capital items | 5,784 | 13,715 | (2,751) |
(Increase) decrease in other assets | (17,256) | (5,591) | 4,064 |
(Decrease) increase in other liabilities | (7,150) | 5,397 | (8,041) |
Increase (decrease) in pension and postretirement benefit obligations | 9,689 | (2,465) | 8,652 |
Other operating activities, net | (4,533) | (7,565) | (9,996) |
Net cash provided by operating activities | 149,299 | 140,274 | 141,064 |
Cash flows from investing activities: | |||
Capital expenditures | (44,935) | (41,682) | (48,251) |
Acquisitions, net of cash acquired | (98,235) | (6,937) | (213,470) |
Proceeds from sale of assets | 3,764 | 1,478 | 1,062 |
Proceeds from sale of subsidiary | 0 | 0 | 10,418 |
Purchases of investments | (2,211) | 0 | 0 |
Restricted cash | 0 | 0 | (12,925) |
Net cash used in investing activities | (141,617) | (47,141) | (263,166) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 417,043 | 90,421 | 279,377 |
Payments on long-term debt | (388,447) | (120,380) | (100,218) |
Payment on contingent consideration | 0 | 0 | (484) |
Purchases of treasury stock | (14,025) | (57,998) | (14,567) |
Proceeds from the exercise of stock options | 14 | 6,406 | 4,015 |
Dividends | (21,762) | (19,413) | (17,847) |
Transactions with noncontrolling interests | 0 | (5,566) | (904) |
Settlement of multi-employer pension plan obligation | 0 | 0 | (18,157) |
Other financing activities | 0 | (2,318) | 0 |
Net cash (used in) provided by financing activities | (7,177) | (108,848) | 131,215 |
Effect of exchange rate changes on cash | 1,299 | (770) | 80 |
Net change in cash and cash equivalents | 1,804 | (16,485) | 9,193 |
Cash and cash equivalents at beginning of year | 55,711 | 72,196 | 63,003 |
Cash and cash equivalents at end of year | 57,515 | 55,711 | 72,196 |
Cash paid during the year for: | |||
Interest | 26,271 | 24,133 | 19,663 |
Income taxes | $ 8,472 | $ 11,855 | $ 11,663 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Sep. 30, 2017 | |
Nature of Operations [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS: Matthews International Corporation ("Matthews" or the "Company"), founded in 1850 and incorporated in Pennsylvania in 1902, is a global provider of brand solutions, memorialization products and industrial technologies. Brand solutions include brand development, deployment and delivery (consisting of brand management, pre-media services, printing plates and cylinders, 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 primarily for the cemetery and funeral home industries. Industrial technologies 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 facilities in the United States, Europe, Asia, Canada, Australia, and Central and South America. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation: The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control. Investments in certain companies over which the Company exerts significant influence, but does not control the financial and operating decisions, are accounted for as equity method investments. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. All intercompany accounts and transactions have been eliminated. Use of Estimates: 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 the 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. Cash and Cash Equivalents: The Company considers all investments purchased with a remaining maturity of three months or less to be cash equivalents. The carrying amount of cash and cash equivalents approximates fair value due to the short-term maturities of these instruments. Trade Receivables and Allowance for Doubtful Accounts: Trade receivables are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due. The allowance for doubtful accounts is based on an evaluation of specific customer accounts for which available facts and circumstances indicate collectability may be uncertain. Inventories: Inventories are stated at the lower of cost or market with cost generally determined under the average cost method. Inventory costs include material, labor, and applicable manufacturing overhead (including depreciation) and other direct costs. Property, Plant and Equipment: Property, plant and equipment are carried at cost. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the assets, which generally range from 10 to 45 years for buildings and 3 to 12 years for machinery and equipment. Gains or losses from the disposition of assets are reflected in operating profit. The cost of maintenance and repairs is charged to expense as incurred. Renewals and betterments of a nature considered to extend the useful lives of the assets are capitalized. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets is determined by evaluating the estimated undiscounted net cash flows of the operations to which the assets relate. An impairment loss would be recognized when the carrying amount of the assets exceeds the fair value, which is based on a discounted cash flow analysis. No such charges were recognized during the years presented. Goodwill and Other Intangible Assets: Intangible assets with finite useful lives are amortized over their estimated useful lives, ranging from 2 to 20 years, and are reviewed when appropriate for possible impairment, similar to property, plant and equipment. Goodwill and intangible assets with indefinite lives are not amortized, but are tested annually for impairment, or when circumstances indicate that a possible impairment may exist. In general, when the carrying value of these assets exceeds the implied fair value, an impairment loss must be recognized. A significant decline in cash flows generated from these assets may result in a write-down of the carrying values of the related assets. For purposes of testing goodwill for impairment, the Company uses a combination of valuation techniques, including discounted cash flows. For purposes of testing indefinite-lived intangible assets, the Company generally uses a relief from royalty method. Pension and Other Postretirement Plans: Pension assets and liabilities are determined on an actuarial basis and are affected by the market value of plan assets, estimates of the expected return on plan assets and the discount rate used to determine the present value of benefit obligations. Actual changes in the fair market value of plan assets and differences between the actual return on plan assets, the expected return on plan assets and changes in the selected discount rate will affect the amount of pension cost. Differences between actual and expected results or changes in the value of the obligations and plan assets are initially recognized through other comprehensive income and subsequently amortized to the Consolidated Statement of Income. Environmental: Costs that mitigate or prevent future environmental issues or extend the life or improve equipment utilized in current operations are capitalized and depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company's obligation is probable and reasonably estimable. Accruals for losses from environmental remediation obligations do not consider the effects of inflation, and anticipated expenditures are not discounted to their present value. Derivatives and Hedging: Derivatives are held as part of a formal documented hedging program. All derivatives are held for purposes other than trading. Matthews measures effectiveness by formally assessing, at least quarterly, the historical and probable future high correlation of changes in the fair value or future cash flows of the hedged item. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, gains and losses on the derivative will be recorded in other income (deductions) at that time. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) ("OCI"), net of tax, and are reclassified to earnings in a manner consistent with the underlying hedged item. The cash flows from derivative activities are recognized in the statement of cash flows in a manner consistent with the underlying hedged item. Foreign Currency: The functional currency of the Company's foreign subsidiaries is generally the local currency. Balance sheet accounts for foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet date. Gains or losses that result from this process are recorded in accumulated other comprehensive income (loss). The revenue and expense accounts of foreign subsidiaries are translated into U.S. dollars at the average exchange rates that prevailed during the period. Realized gains and losses from foreign currency transactions are presented in the Statement of Income in a consistent manner with the underlying transaction based upon the provisions of Accounting Standards Codification ("ASC") 830 "Foreign Currency Matters." Comprehensive Income (Loss): Comprehensive income (loss) consists of net income adjusted for changes, net of any related income tax effect, in cumulative foreign currency translation, the fair value of derivatives, unrealized investment gains and losses and minimum pension liability. Treasury Stock: Treasury stock is carried at cost. The cost of treasury shares sold is determined under the average cost method. Revenue Recognition: Revenues are generally recognized when title, ownership, and risk of loss pass to the customer, which is typically at the time of product shipment and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product and customer. Revenues from brand development and deployment services are recognized using the completed performance method, which is typically when the customer receives the final deliverable. For arrangements with customer acceptance provisions, revenue is recognized when the customer approves the final deliverable. For pre-need sales of memorials and vases, revenue is recognized when the memorial has been manufactured to the customer's specifications (e.g., name and birth date), title has been transferred to the customer and the memorial and vase are placed in storage for future delivery. A liability has been recorded for the estimated costs of finishing pre-need bronze memorials and vases that have been manufactured and placed in storage prior to July 1, 2003 for future delivery. Beginning July 1, 2003, revenue is deferred by the Company on the portion of pre-need sales attributable to the final finishing and storage of the pre-need merchandise. Deferred revenue for final finishing is recognized at the time the pre-need merchandise is finished and shipped to the customer. Deferred revenue related to storage is recognized on a straight-line basis over the estimated average time that pre-need merchandise is held in storage. At September 30, 2017 , the Company held 330,716 memorials and 221,713 vases in its storage facilities under the pre-need sales program. Revenues from mausoleum construction and significant engineering projects, including certain roto-gravure projects, cremation units and marking and industrial automation projects, are recognized under the percentage-of-completion method of accounting using the cost-to-cost basis for measuring progress toward completion. As work is performed under contracts, estimates of the costs to complete are regularly reviewed and updated. As changes in estimates of total costs at completion on projects are identified, appropriate earnings adjustments are recorded using the cumulative catch-up method. Provisions for estimated losses on uncompleted contracts are recorded during the period in which such losses become evident. Shipping and Handling Fees and Costs: All fees billed to the customer for shipping and handling are classified as a component of net revenues. All costs associated with shipping and handling are classified as a component of cost of sales or selling expense. Research and Development Expenses: Research and development costs are expensed as incurred and were approximately $16,362 , $14,793 and $13,033 for the years ended September 30, 2017 , 2016 and 2015 , respectively. Stock-Based Compensation: Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the employee requisite service period. A binomial lattice model is utilized to determine the fair value of awards that have vesting conditions based on market targets. Income Taxes: Deferred tax assets and liabilities are provided for the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred income taxes for U.S. tax purposes have not been provided on certain undistributed earnings of foreign subsidiaries, as such earnings are considered to be reinvested indefinitely. To the extent earnings are expected to be returned in the foreseeable future, the associated deferred tax liabilities are provided. The Company has not determined the deferred tax liability associated with these undistributed earnings, as such determination is not practicable, due to the complexities of the hypothetical calculation. Earnings Per Share: Basic earnings per share is computed by dividing net income by the average number of common shares outstanding. Diluted earnings per share is computed using the treasury stock method, which assumes the issuance of common stock for all dilutive securities. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS: Issued In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-12, Derivatives and Hedging (Topic 815) , which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for the Company beginning in fiscal year 2020. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) , which provides new guidance intended to clarify and reduce complexities in applying stock compensation guidance to a change to the terms or conditions of share-based payment awards. This ASU is effective for the Company beginning in fiscal year 2019. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which provides new guidance intended to improve the disclosure requirements related to the service cost component of net benefit cost. This ASU is effective for the Company beginning in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which provides new guidance intended to simplify the subsequent measurement of goodwill and removing Step 2 from the goodwill impairment process. This ASU is effective for the Company beginning in fiscal year 2021, and does allow for early adoption. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides new guidance intended to make the definition of a business more operable and allow for more consistency in application. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , which provides new guidance intended to clarify the presentation of certain cash flow items including debt prepayments, debt extinguishment costs, contingent considerations payments, and insurance proceeds, among other things. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019, and early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This ASU requires lessees to recognize assets and liabilities that arise from financing and operating leases on the Consolidated Balance Sheet. The implementation of this standard will require application of the new guidance at the beginning of the earliest comparative period presented, once adopted. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2020, and does allow for early adoption. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which provides new guidance intended to improve the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which provides new guidance to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new inventory measurement requirements are effective for the Company's 2018 fiscal year, and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 . This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. The FASB issued ASU 2015-14 in August 2015 which resulted in a deferral of the original effective date of ASU 2014-09. During 2016, the FASB issued four ASUs that address implementation issues and correct or improve certain aspects of the new revenue recognition guidance, including ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Identifying Performance Obligations and Licensing , ASU 2016-12, Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . These ASUs do not change the core principles in the revenue recognition guidance outlined above. ASU No. 2014-09 and the related ASUs referenced above are effective for Matthews beginning October 1, 2018. The Company is in the process of completing its initial detailed review of all global revenue arrangements in accordance with these ASUs and assessing the impact these ASUs will have on its consolidated financial statements. Adopted In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which provides new guidance intended to simplify the accounting surrounding share-based compensation. Under the new guidance, all excess tax benefits related to share-based compensation are recognized as a component of income tax expense, and will no longer be recognized within additional paid-in capital. The Company has early adopted this ASU in the fourth quarter of fiscal 2017, which, under the prospective method, includes retroactive application of the ASU beginning October 1, 2016 (beginning of the fiscal year). This ASU allows for an accounting policy election to estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company elected to maintain its current forfeitures policy and will continue to include an estimate of those forfeitures when recognizing stock-based compensation expense. The adoption of this ASU in fiscal 2017 resulted in a reduction to income tax expense of $1,234 , and a corresponding favorable impact on diluted earnings per share of $0.04 , both of which have been retroactively included in the first quarter results for fiscal 2017. In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718), which provides new guidance intended to clarify the diverse accounting treatment for certain share-based payments. Share-based payments with performance targets that could be achieved after the requisite service period should be treated as performance conditions under the existing guidance in ASC Topic 718. The adoption of this ASU in the first quarter ended December 31, 2016 had no impact on the Company's consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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. As of September 30, 2017 and 2016 , the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2017 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 3,990 $ — $ 3,990 Equity and fixed income mutual funds — 21,649 — 21,649 Other investments — 5,810 — 5,810 Total assets at fair value $ — $ 31,449 $ — $ 31,449 Liabilities: Derivatives (1) $ — $ 31 $ — $ 31 Total liabilities at fair value $ — $ 31 $ — $ 31 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 193 $ — $ 193 Equity and fixed income mutual funds — 19,790 — 19,790 Other investments — 5,127 — 5,127 Total assets at fair value $ — $ 25,110 $ — $ 25,110 Liabilities: Derivatives (1) $ — $ 6,027 $ — $ 6,027 Total liabilities at fair value $ — $ 6,027 $ — $ 6,027 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES: Inventories at September 30, 2017 and 2016 consisted of the following: 2017 2016 Raw materials $ 29,396 $ 29,597 Work in process 61,917 54,357 Finished goods 80,132 78,518 $ 171,445 $ 162,472 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS: Investment securities are recorded at fair value and are classified as trading securities. Investments classified as trading securities primarily consisted of equity and fixed income mutual funds. The market value of these investments exceeded cost by $785 and $414 at September 30, 2017 and 2016 , respectively. Realized and unrealized gains and losses are recorded in investment income. Realized gains (losses) for fiscal 2017 , 2016 and 2015 were not material. Other investments include ownership interests in various entities of less than 20% , which are recorded under the cost method of accounting. At September 30, 2017 and 2016 , non-current investments were as follows: 2017 2016 Equity and fixed income mutual funds $ 21,649 $ 19,790 Other investments 16,018 11,575 $ 37,667 $ 31,365 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment and the related accumulated depreciation at September 30, 2017 and 2016 were as follows: 2017 2016 Buildings $ 104,604 $ 102,153 Machinery and equipment 412,980 378,650 517,584 480,803 Less accumulated depreciation (335,346 ) (305,613 ) 182,238 175,190 Land 16,845 19,705 Construction in progress 36,450 24,597 $ 235,533 $ 219,492 Depreciation expense, including amortization of assets under capital lease, was $44,668 , $44,659 and $43,820 for each of the three years ended September 30, 2017 , 2016 and 2015 , respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: Long-term debt at September 30, 2017 and 2016 consisted of the following: 2017 2016 Revolving credit facilities $ 551,126 $ 608,000 Securitization facility 95,825 — Senior secured term loan 232,479 246,449 Notes payable to banks 21,831 5,301 Short-term borrowings 4,735 8,617 Capital lease obligations 5,134 4,187 911,130 872,554 Less current maturities (29,528 ) (27,747 ) $ 881,602 $ 844,807 The Company has a domestic credit facility with a syndicate of financial institutions that includes a $900,000 senior secured revolving credit facility and a $250,000 senior secured term loan. The term loan requires scheduled principal payments of 5.0% of the outstanding principal in year one, 7.5% in year two, and 10.0% in years three through five, payable in quarterly installments. The balance of the revolving credit facility and the term loan are due on the maturity date of April 26, 2021. Borrowings under both the revolving credit facility and the term loan bear interest at LIBOR plus a factor ranging from 0.75% to 2.00% ( 1.75% at September 30, 2017 ) based on the Company's leverage ratio. The leverage ratio is defined as net indebtedness divided by adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). The Company is required to pay an annual commitment fee ranging from 0.15% to 0.25% (based on the Company's leverage ratio) of the unused portion of the revolving credit facility. The domestic credit facility requires the Company to maintain certain leverage and interest coverage ratios. A portion of the facility (not to exceed $35,000 ) is available for the issuance of trade and standby letters of credit. Outstanding borrowings on the revolving credit facility at September 30, 2017 and 2016 were $525,000 and $608,000 , respectively. Outstanding borrowings on the term loan at September 30, 2017 and 2016 was $232,479 and $246,449 , respectively. The weighted-average interest rate on outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps) at September 30, 2017 and 2016 was 3.01% and 2.59% , respectively. During fiscal 2017, the Company entered into a two -year $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions. Under the Securitization Facility, the Company and certain of its domestic subsidiaries sell, on a continuous basis without recourse, their trade receivables to Matthews Receivables Funding Corporation, LLC (“Matthews RFC”), a wholly-owned bankruptcy-remote subsidiary of the Company. Matthews RFC in turn assigns a collateral interest in these receivables to certain financial institutions, and then may borrow funds under the Securitization Facility. The Securitization Facility does not qualify for sale treatment. Accordingly, the trade receivables and related debt obligations remain on the Company's Consolidated Balance Sheet. Borrowings under the Securitization Facility bear interest at LIBOR plus 0.75% . The Company is required to pay an annual commitment fee ranging from 0.25% to 0.35% of the unused portion of the Securitization Facility. The Company had $95,825 in outstanding borrowings under the Securitization Facility as of September 30, 2017 . At September 30, 2017 , the interest rate on borrowings under this facility was 1.98% . The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: September 30, 2017 September 30, 2016 Pay fixed swaps - notional amount $ 414,063 $ 403,125 Net unrealized gain (loss) $ 3,959 $ (5,834 ) Weighted-average maturity period (years) 3.3 3.9 Weighted-average received rate 1.23 % 0.53 % Weighted-average pay rate 1.34 % 1.26 % 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 future variable interest payments 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 gain, net of unrealized losses, of $3,959 ( $2,415 after tax) and an unrealized loss, net of unrealized gains, of $5,834 ( $3,559 after tax) at September 30, 2017 and 2016 , respectively, that is included in shareholders' equity as part of accumulated other comprehensive income ("AOCI"). Assuming market rates remain constant with the rates at September 30, 2017 , a gain (net of tax) of approximately $666 included in AOCI is expected to be recognized in earnings over the next twelve months. At September 30, 2017 and 2016 , the interest rate swap contracts were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: 2017 2016 Current assets: Other current assets $ 1,098 $ 43 Long-term assets: Other assets 2,892 150 Current liabilities: Other current liabilities (7 ) (1,529 ) Long-term liabilities: Other liabilities (24 ) (4,498 ) Total derivatives $ 3,959 $ (5,834 ) The gains (losses) recognized on derivatives was as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives 2017 2016 2015 Interest rate swaps Interest expense $1,752 $(3,146) $(3,922) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income(Effective Portion*) 2017 2016 2015 (Effective Portion*) 2017 2016 2015 Interest rate swaps $7,043 $(3,230) $(4,841) Interest expense $1,069 $(1,919) $(2,392) *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, which is guaranteed by Matthews International Corporation. The maximum amount of borrowings available under this facility is €35.0 million ( $41,345 ). The credit facility matures in December 2018 and the Company intends to extend this facility. Outstanding borrowings under this facility were €22.1 million ( $26,126 ) at September 30, 2017 . There were no outstanding borrowings under this facility at September 30, 2016 . The weighted-average interest rate on this facility at September 30, 2017 was 1.75% . In November 2016, the Company’s German subsidiary, Matthews Europe GmbH & Co. KG, issued €15.0 million ( $17,719 at September 30, 2017 ) of senior unsecured notes with European banks. The notes are guaranteed by Matthews International Corporation and mature in November 2019. A portion of the notes ( €5.0 million ) have a fixed interest rate of 1.40% , and the remainder bear interest at Euro LIBOR plus 1.40% . The weighted-average interest rate on the notes at September 30, 2017 was 1.40% . The Company, through its Italian subsidiary, Matthews International S.p.A., has several loans with various Italian banks. Outstanding borrowings on these loans totaled €2.6 million ( $3,079 ) and €3.2 million ( $3,538 ) at September 30, 2017 and 2016 , respectively. The maturity dates for these loans range from October 2017 through November 2019. Matthews International S.p.A. also has multiple on-demand lines of credit totaling €11.3 million ( $13,384 ) with the same Italian banks. Outstanding borrowings on these lines were €4.0 million ( $4,735 ) and €5.2 million ( $5,801 ) at September 30, 2017 and 2016 , respectively. The weighted-average interest rate on outstanding Matthews International S.p.A. borrowings at September 30, 2017 and 2016 was 2.20% and 1.80% , respectively. Other debt totaled $1,032 and $4,579 at September 30, 2017 and 2016 , respectively. The weighted-average interest rate on these outstanding borrowings was 5.04% and 3.31% at September 30, 2017 and 2016 , respectively. In September 2014, a claim was filed seeking to draw upon a letter of credit issued by the Company of £8,570,000 ( $11,477 at September 30, 2017 ) with respect to a performance guarantee on a project in Saudi Arabia. Management assessed the customer's demand to be without merit and initiated an action with the court in the United Kingdom (the "Court"). Pursuant to this action, an order was issued by the Court in January 2015 requiring that, upon receipt by the customer, the funds were to be remitted by the customer to the Court pending resolution of the dispute between the parties. As a result, the Company made payment on the draw to the financial institution for the letter of credit and the funds were ultimately received by the customer. The customer did not remit the funds to the Court as ordered. On June 14, 2016, the Court ruled completely in favor of Matthews following a trial on the merits. However, as the customer has neither yet remitted the funds nor complied with the final, un-appealed orders of the Court, it is possible the resolution of this matter could have an unfavorable financial impact on Matthews’ results of operations. As of September 30, 2017, the Company has determined that resolution of this matter may take an extended period of time and therefore has reclassified the funded letter of credit from other current assets to other assets on the Consolidated Balance Sheet. The Company will continue to assess collectability related to this matter as facts and circumstances evolve. As of September 30, 2016, the Company presented the funded letter of credit within other current assets on the Consolidated Balance Sheet. As of September 30, 2017 and 2016 , the fair value of the Company's long-term debt, including current maturities, which is classified as Level 2 in the fair value hierarchy, approximated the carrying value included in the Consolidated Balance Sheets. Aggregate maturities of long-term debt, including short-term borrowings and capital leases, is as follows: 2018 $ 29,528 2019 166,012 2020 25,487 2021 687,504 2022 242 Thereafter 2,357 $ 911,130 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY: The authorized common stock of the Company consists of 70,000,000 shares of Class A Common Stock, $1.00 par value. The Company has a stock repurchase program. The buy-back program is designed to increase shareholder value, enlarge the Company's holdings of its common stock, and add to earnings per share. Repurchased shares may be retained in treasury, utilized for acquisitions, or reissued to employees or other purchasers, subject to the restrictions of the Company's Restated Articles of Incorporation. Under the current authorization, the Company's Board of Directors has authorized the repurchase of a total of 5,000,000 shares of Matthews' common stock under the program, of which 1,816,146 shares remain available for repurchase as of September 30, 2017 . |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED PAYMENTS | 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. Under the 2012 Equity Incentive Plan, which has a ten years term, the maximum number of shares available for grants or awards is an aggregate of 2,500,000 . At September 30, 2017 , there were 589,238 shares reserved for future issuance under the 2012 Equity Incentive Plan. The 2012 Equity Incentive Plan is 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. As of September 30, 2017 , there were no stock options outstanding. With respect to outstanding restricted share grants, for grants made prior to fiscal 2013, generally one-half of the shares vested on the third anniversary of the grant, with the remaining one-half of the shares vesting in one-third increments upon attainment of pre-defined levels of appreciation in the market value of the Company's Class A Common Stock. For grants made in and after fiscal 2013, generally one-half of the shares vest on the third anniversary of the grant, one-quarter of the shares vest in one-third increments upon the attainment of pre-defined levels of adjusted earnings per share, and the remaining one-quarter of the shares vest in one-third increments upon attainment of pre-defined levels of appreciation in the market value of the Company's Class A Common Stock. Additionally, restricted shares cannot vest until the first anniversary of the grant date. Unvested restricted shares generally expire on the earlier of three or 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 years ended September 30, 2017 , 2016 and 2015 , stock-based compensation cost totaled $14,562 , $10,612 and $9,097 , respectively. The year ended September 30, 2017 included $3,337 of stock-based compensation cost that was recognized at the time of grant for retirement-eligible employees. The associated future income tax benefit recognized was $5,534 , $4,139 and $3,548 for the years ended September 30, 2017 , 2016 and 2015 , respectively. The amount of cash received from the exercise of stock options was $14 , $6,406 and $4,015 , for the years ended September 30, 2017 , 2016 and 2015 , respectively. In connection with these exercises, the tax benefits realized by the Company were $3 , $932 and $350 for the years ended September 30, 2017 , 2016 and 2015 , respectively. The transactions for restricted stock for the year ended September 30, 2017 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2016 522,710 $ 45.10 Granted 216,655 66.61 Vested (231,231 ) 46.57 Expired or forfeited (6,950 ) 50.29 Non-vested at September 30, 2017 501,184 $ 53.65 As of September 30, 2017 , the total unrecognized compensation cost related to unvested restricted stock was $7,205 which is expected to be recognized over a weighted-average period of 1.5 years. The transactions for shares under options for the year ended September 30, 2017 were as follows: Shares Weighted- average Exercise Price Weighted- average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, September 30, 2016 77,733 $ 40.56 Exercised (333 ) 40.56 Expired or forfeited (77,400 ) 40.56 Outstanding, September 30, 2017 — $ — — $ — Exercisable, September 30, 2017 — $ — — $ — No options vested during the year ended September 30, 2017 and 2016 , 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 years ended September 30, 2017 , 2016 and 2015 was $9 , $2,692 and $931 , respectively. The transactions for non-vested option shares for the year ended September 30, 2017 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2016 77,400 $ 12.29 Expired or forfeited (77,400 ) 12.29 Non-vested at September 30, 2017 — $ — 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 years ended September 30, 2017 , 2016 and 2015 . 2017 2016 2015 Expected volatility 20.2 % 20.7 % 22.2 % Dividend yield 1.1 % 1.0 % 1.0 % Average risk-free interest rate 1.7 % 1.7 % 1.7 % Average expected term (years) 2.1 2.1 1.8 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, 2017 , 2016 and 2015 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 Amended and Restated 2014 Director Fee Plan (collectively, the "Director Fee Plans"). There will be no further fees or share-based awards granted under the 1994 Director Fee Plan. Under the Amended and Restated 2014 Director Fee Plan, non-employee directors (except for the Chairman of the Board) each receive, as an annual retainer fee for fiscal 2017 , either cash or shares of the Company's Class A Common Stock with a value equal to $75 . The annual retainer fee for fiscal 2017 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 16,139 shares had been deferred under the Director Fee Plans at September 30, 2017 . 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 $125 for fiscal year 2017 . A total of 22,300 stock options have been granted under the Director Fee Plans. At September 30, 2017 , there were no options outstanding. Additionally, 161,724 shares of restricted stock have been granted under the Director Fee Plans, 58,574 of which were issued under the Amended and Restated 2014 Director Fee Plan. 25,157 shares of restricted stock are unvested at September 30, 2017 . A total of 150,000 shares have been authorized to be issued under the Amended and Restated 2014 Director Fee Plan. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The information used to compute earnings per share attributable to Matthews' common shareholders was as follows: 2017 2016 2015 Net income attributable to Matthews shareholders $ 74,368 $ 66,749 $ 63,449 Less: dividends and undistributed earnings allocated to participating securities — — 10 Net income available to Matthews shareholders $ 74,368 $ 66,749 $ 63,439 Weighted-average shares outstanding (in thousands): Basic shares 32,240 32,642 32,939 Effect of dilutive securities 330 262 257 Diluted shares 32,570 32,904 33,196 Anti-dilutive securities excluded from the dilutive calculation were insignificant for the fiscal years ended September 30, 2017 , 2016 , and 2015 . |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT PLANS | PENSION AND OTHER POSTRETIREMENT PLANS: The Company provides defined benefit pension and other postretirement plans to certain employees. Effective January 1, 2014, the Company's principal retirement plan was closed to new participants. The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2017 and 2016 : Pension Other Postretirement 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation, beginning of year $ 263,566 $ 238,727 $ 23,290 $ 20,424 Service cost 8,553 7,446 392 402 Interest cost 7,362 9,725 626 845 Actuarial (gain) loss (4,264 ) 26,841 (2,600 ) 2,931 Exchange loss (gain) 589 (6 ) — — Benefit payments (16,134 ) (19,167 ) (1,392 ) (1,312 ) Benefit obligation, end of year 259,672 263,566 20,316 23,290 Change in plan assets: Fair value, beginning of year 151,864 142,225 — — Actual return 12,586 11,244 — — Benefit payments (1) (16,134 ) (19,167 ) (1,392 ) (1,312 ) Employer contributions 7,318 17,562 1,392 1,312 Fair value, end of year 155,634 151,864 — — Funded status (104,039 ) (111,701 ) (20,317 ) (23,291 ) Unrecognized actuarial loss (gain) 73,616 92,310 (1,469 ) 1,130 Unrecognized prior service cost (690 ) (1,048 ) (720 ) (916 ) Net amount recognized $ (31,113 ) $ (20,439 ) $ (22,506 ) $ (23,077 ) Amounts recognized in the consolidated balance sheet: Current liability $ (766 ) $ (760 ) $ (1,044 ) $ (1,148 ) Noncurrent benefit liability (103,273 ) (110,941 ) (19,273 ) (22,143 ) Accumulated other comprehensive loss (income) 72,926 91,262 (2,189 ) 214 Net amount recognized $ (31,113 ) $ (20,439 ) $ (22,506 ) $ (23,077 ) Amounts recognized in accumulated other comprehensive loss (income): Net actuarial loss (income) $ 73,616 $ 92,310 $ (1,469 ) $ 1,130 Prior service cost (690 ) (1,048 ) (720 ) (916 ) Net amount recognized $ 72,926 $ 91,262 $ (2,189 ) $ 214 (1) Pension benefit payments in fiscal 2017 and 2016 include $5,655 and $9,300 of lump sum distributions, respectively, that were made to certain terminated vested employees as settlements of the employees' pension obligations. These distributions did not meet the threshold to qualify as settlements under U.S. GAAP and therefore, no unamortized actuarial losses were recognized in the Statements of Income upon completion of the lump sum distributions. Based upon actuarial valuations performed as of September 30, 2017 and 2016 , the accumulated benefit obligation for the Company's defined benefit pension plans was $238,307 and $240,329 at September 30, 2017 and 2016 , respectively, and the projected benefit obligation for the Company's defined benefit pension plans was $259,672 and $263,566 at September 30, 2017 and 2016 , respectively. Net periodic pension and other postretirement benefit cost for the plans included the following: Pension Other Postretirement 2017 2016 2015 2017 2016 2015 Service cost $ 8,553 $ 7,446 $ 6,764 $ 392 $ 402 $ 454 Interest cost 7,362 9,725 8,740 626 845 885 Expected return on plan assets (9,249 ) (9,625 ) (10,151 ) — — — Amortization: Prior service cost (181 ) (183 ) (180 ) (195 ) (195 ) (195 ) Net actuarial loss (gain) 10,034 7,468 6,203 — — — Net benefit cost $ 16,519 $ 14,831 $ 11,376 $ 823 $ 1,052 $ 1,144 Effective September 30, 2016, the Company changed the method used to estimate the service and interest components of net periodic benefit cost for its pensions. This change, compared to the previous method, resulted in a decrease in the service and interest components for pension cost beginning in fiscal 2017. Historically, the Company estimated these service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Matthews has elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. This change was made to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not affect the measurement of the total benefit obligations. The Company has accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and accordingly, has accounted for it prospectively. This change resulted in a reduction of service and interest costs of approximately $1,960 in fiscal 2017. Benefit payments under the Company's principal retirement plan are made from plan assets, while benefit payments under the supplemental retirement plan and postretirement benefit plan are made from the Company's operating cash. Under I.R.S. regulations, the Company was required to make a $5,109 contribution to its principal retirement plan in fiscal 2017 . The Company is no t required to make any significant cash contributions to its principal retirement plan in fiscal 2018 . Contributions made in fiscal 2017 are as follows: Contributions Pension Other Postretirement Principal retirement plan $ 6,180 $ — Supplemental retirement plan 725 — Other retirement plans 413 — Other postretirement plan — 1,392 Amounts of AOCI expected to be recognized in net periodic benefit costs in fiscal 2018 include: Pension Benefits Other Postretirement Benefits Net actuarial loss $ 7,010 $ — Prior service cost (138 ) (195 ) The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year. The measurement date of annual actuarial valuations for the Company's principal retirement and other postretirement benefit plans was September 30, for fiscal 2017 , 2016 and 2015 . The weighted-average assumptions for those plans were: Pension Other Postretirement 2017 2016 2015 2017 2016 2015 Discount rate 3.76 % 3.51 % 4.25 % 3.72 % 3.42 % 4.25 % Return on plan assets 6.75 % 7.25 % 7.75 % — — — Compensation increase 3.50 % 3.50 % 3.50 % — — — In October 2014, the Society of Actuaries' Retirement Plans Experience Committee (RPEC) released new mortality tables known as RP 2014. Each year, RPEC releases an update to the mortality improvement assumption that was released with the RP 2014 tables. The Company considered the RPEC mortality and mortality improvement tables and performed a review of its own mortality history to assess the appropriateness of the RPEC tables for use in generating financial results. In fiscal years 2017 , 2016 and 2015 , the Company elected to value its principal retirement and other postretirement benefit plan liabilities using the base RP 2014 mortality table and a slightly modified fully generational mortality improvement assumption. The revised assumption uses the most recent RPEC mortality improvement table for all years where the RPEC tables are based on finalized data, and the most recently published Social Security Administration Intermediate mortality improvement for subsequent years. The underlying basis of the investment strategy of the Company's defined benefit plans is to ensure the assets are invested to achieve a positive rate of return over the long term sufficient to meet the plans' actuarial interest rate and provide for the payment of benefit obligations and expenses in perpetuity in a secure and prudent fashion, maintain a prudent risk level that balances growth with the need to preserve capital, diversify plan assets so as to minimize the risk of large losses or excessive fluctuations in market value from year to year, achieve investment results over the long term that compare favorably with other pension plans and appropriate indices. The Company's investment policy, as established by the Company's pension board, specifies the types of investments appropriate for the plans, asset allocation guidelines, criteria for the selection of investment managers, procedures to monitor overall investment performance as well as investment manager performance. It also provides guidelines enabling plan fiduciaries to fulfill their responsibilities. Effective August 1, 2017, the Company merged the IDL, Inc. retirement income plan and the Aurora Casket Company, LLC pension plan into the Company’s principal pension plan. No changes were made to the benefit formulas, vesting provisions, or to the employees covered by the plans. The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2017 and 2016 and weighted-average target allocation were as follows: Plan Assets at Target Asset Category 2017 2016 Allocation* Equity securities $ 77,245 $ 58,849 50 % Fixed income, cash and cash equivalents 49,008 72,495 30 % Other investments 29,381 20,520 20 % $ 155,634 $ 151,864 100 % * Target allocation relates to the Company's primary defined benefit pension plan Based on an analysis of the historical and expected future performance of the plan's assets and information provided by its independent investment advisor, the Company set the long-term rate of return assumption for its primary defined benefit pension plans' assets at 6.75% in 2017 for purposes of determining pension cost and funded status under current guidance. The Company's discount rate assumption used in determining the present value of the projected benefit obligation is based upon published indices. The Company categorizes plan assets within a three level fair value hierarchy (see Note 4 for a further discussion of the fair value hierarchy). The valuation methodologies used to measure the fair value of pension assets, including the level in the fair value hierarchy in which each type of pension plan asset is classified as follows. Equity securities consist of direct investments in the stocks of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1. Mutual funds are valued at the closing price of shares held by the Plan at year end. As such, these mutual fund investments are classified as Level 1. Fixed income securities consist of publicly traded fixed interest obligations (primarily U.S. government notes and corporate and agency bonds). Such investments are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data. As such, U.S. government notes are included in Level 1, and the remainder of the fixed income securities are included in Level 2. Cash and cash equivalents consist of direct cash holdings and short-term money market mutual funds. These values are valued based on cost, which approximates fair value, and as such, are classified as Level 1. Other investments consist primarily of real estate, commodities, private equity holdings and hedge fund investments. These holdings are valued by investment managers based on the most recent information available. The valuation information used by investment managers may not be readily observable. As such, these investments are classified as Level 3. The Company's defined benefit pension plans' asset categories at September 30, 2017 and 2016 were as follows: September 30, 2017 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks $ 42,731 $ — $ — $ 42,731 Equity securities - mutual funds 34,514 — — 34,514 Fixed income securities 30,032 14,870 — 44,902 Cash and cash equivalents 4,106 — — 4,106 Other investments 19,901 — 9,480 29,381 Total $ 131,284 $ 14,870 $ 9,480 $ 155,634 September 30, 2016 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks $ 35,912 $ — $ — $ 35,912 Equity securities - mutual funds 22,937 — — 22,937 Fixed income securities 41,099 11,732 — 52,831 Cash and cash equivalents 19,664 — — 19,664 Other investments 7,694 10 12,816 20,520 Total $ 127,306 $ 11,742 $ 12,816 $ 151,864 Changes in the fair value of Level 3 assets at September 30, 2017 and 2016 are summarized as follows: Asset Category Fair Value, Beginning of Period Acquisitions Dispositions Realized Gains Unrealized Gains (Losses) Fair Value, End of Period Other investments: Fiscal Year Ended: September 30, 2017 $ 12,816 $ — $ (3,286 ) $ 418 $ (468 ) $ 9,480 September 30, 2016 13,982 — (941 ) 449 (674 ) 12,816 Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits Other Postretirement Benefits 2018 $ 10,137 $ 1,044 2019 10,586 1,072 2020 10,983 1,013 2021 11,447 1,044 2022 12,811 1,094 2023-2027 72,463 6,004 $ 128,427 $ 11,271 For measurement purposes, a rate of increase of 7.3% in the per capita cost of health care benefits was assumed for 2018 ; the rate was assumed to decrease gradually to 4.0% for 2058 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported. An increase in the assumed health care cost trend rates by one percentage point would have increased the accumulated postretirement benefit obligation as of September 30, 2017 by $718 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $47 . A decrease in the assumed health care cost trend rates by one percentage point would have decreased the accumulated postretirement benefit obligation as of September 30, 2017 by $822 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $54 . Prior to its acquisition by Matthews, Schawk, Inc. ("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 the installment payments expected to be paid through 2034. During fiscal 2015, the Company finalized an agreement to settle this installment payment obligation in exchange for a lump-sum payment of $18,157 , which is presented within cash flows from financing activities on the Consolidated Statement of Cash Flows. This settlement also resulted in an $11,522 gain recognized in other income (deductions), net during fiscal 2015. The Company sponsors defined contribution plans for hourly and salary employees. The expense associated with the contributions made to these plans was $8,620 , $8,117 , and $6,819 for the fiscal years ended September 30, 2017 , 2016 and 2015 , respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME: The changes in AOCI by component, net of tax, for the years ended September 30, 2017 , 2016 and 2015 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2014 $ (39,651 ) $ (27,367 ) $ 201 $ (66,817 ) OCI before reclassification (7,378 ) (77,237 ) (4,841 ) (89,456 ) Amounts reclassified from AOCI (a) 3,555 — (b) 2,392 5,947 Net current-period OCI (3,823 ) (77,237 ) (2,449 ) (83,509 ) Balance, September 30, 2015 $ (43,474 ) $ (104,604 ) $ (2,248 ) $ (150,326 ) OCI before reclassification (16,901 ) (17,655 ) (3,230 ) (37,786 ) Amounts reclassified from AOCI (a) 4,325 — (b) 1,919 6,244 Net current-period OCI (12,576 ) (17,655 ) (1,311 ) (31,542 ) Balance, September 30, 2016 $ (56,050 ) $ (122,259 ) $ (3,559 ) $ (181,868 ) OCI before reclassification 6,536 9,352 7,043 22,931 Amounts reclassified from AOCI (a) 5,891 — (b) (1,069 ) 4,822 Net current-period OCI 12,427 9,352 5,974 27,753 Balance, September 30, 2017 $ (43,623 ) $ (112,907 ) $ 2,415 $ (154,115 ) Attributable to noncontrolling interest: Balance, September 30, 2014 $ — $ 516 $ — $ 516 OCI before reclassification — (150 ) — (150 ) Net current-period OCI — (150 ) — (150 ) Balance, September 30, 2015 $ — $ 366 $ — $ 366 OCI before reclassification — (89 ) — (89 ) Net current-period OCI — (89 ) — (89 ) Balance, September 30, 2016 $ — $ 277 $ — $ 277 OCI before reclassification — 119 — 119 Net current-period OCI — 119 — 119 Balance, September 30, 2017 $ — $ 396 $ — $ 396 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 8). Accumulated other comprehensive loss at September 30, 2017 and 2016 consisted of the following: 2017 2016 Cumulative foreign currency translation $ (112,907 ) $ (122,259 ) Fair value of derivatives, net of tax of $1,544 and $2,275, respectively 2,415 (3,559 ) Minimum pension liabilities, net of tax of $27,114 and $35,426, respectively (43,623 ) (56,050 ) $ (154,115 ) $ (181,868 ) Reclassifications out of AOCI for the years ended September 30, 2017 , 2016 and 2015 were as follows: Details about AOCI Components September 30, 2017 September 30, 2016 September 30, 2015 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 376 $ 378 $ 375 Actuarial losses (a) (10,034 ) (7,468 ) (6,203 ) (b) (9,658 ) (7,090 ) (5,828 ) Income before income tax (3,767 ) (2,765 ) (2,273 ) Income taxes $ (5,891 ) $ (4,325 ) $ (3,555 ) Net income Derivatives Interest rate swap contracts $ 1,752 $ (3,146 ) $ (3,922 ) Interest expense (b) 1,752 (3,146 ) (3,922 ) Income before income tax 683 (1,227 ) (1,530 ) Income taxes $ 1,069 $ (1,919 ) $ (2,392 ) Net income (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 12. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The provision for income taxes consisted of the following: 2017 2016 2015 Current: Federal $ 1,542 $ 18,733 $ 655 State 628 1,829 1,466 Foreign 10,459 12,482 10,599 12,629 33,044 12,720 Deferred: Federal 11,887 (3,066 ) 13,279 State 905 (2,412 ) 645 Foreign (3,067 ) 1,507 (280 ) 9,725 (3,971 ) 13,644 Total $ 22,354 $ 29,073 $ 26,364 During 2017, the Company adopted ASU 2016-09 and recorded current year tax benefits related to share-based payments as a component of income tax expense (See Note 3, Accounting Pronouncements). The tax benefits related to share-based payments recorded as a component of income tax expense for the year ended September 30, 2017 were $1,234 . The tax benefits related to share-based payments recorded directly to additional paid-in capital for the years ended September 30, 2016 , and 2015 were $1,720 , and $418 , respectively. The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows: 2017 2016 2015 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Effect of state income taxes, net of federal deduction 1.4 % (0.6 )% 1.8 % Foreign taxes less than federal statutory rate (7.2 )% (3.5 )% (3.2 )% Share-based compensation (1.2 )% — % — % Other (4.8 )% (0.4 )% (4.2 )% Effective tax rate 23.2 % 30.5 % 29.4 % The Company's effective tax rate for fiscal 2017 was 23.2% , compared to 30.5% for fiscal 2016 . Fiscal 2017 reflects the benefits from lower foreign taxes, organizational structure changes, primarily initiated in connection with acquisition integration, increased benefits from credits and incentives, and the impact of other tax benefits specific to the current year. The difference between the Company's effective tax rate and the Federal statutory rate of 35.0% primarily reflected lower foreign income taxes and the benefit of credits and incentives, offset by the impact of state taxes. The Company's foreign subsidiaries had income before income taxes for the years ended September 30, 2017 , 2016 and 2015 of approximately $24,118 , $48,864 and $40,024 , respectively. Deferred income taxes for U.S. tax purposes have not been provided on certain undistributed earnings of foreign subsidiaries, as such earnings are considered to be reinvested indefinitely. At September 30, 2017 , undistributed earnings of foreign subsidiaries for which deferred U.S. income taxes have not been provided approximated $596,281 . The Company has not determined the deferred tax liability associated with these undistributed earnings, as such determination is not practicable due to the complexity of the hypothetical calculation. The components of deferred tax assets and liabilities at September 30, 2017 and 2016 are as follows: 2017 2016 Deferred tax assets: Pension and postretirement benefits $ 45,654 $ 46,282 Accruals and reserves not currently deductible 20,579 26,214 Income tax credit carryforward 3,313 10,080 Operating and capital loss carryforwards 23,610 25,258 Stock options 8,614 6,544 Other 2,782 5,246 Total deferred tax assets 104,552 119,624 Valuation allowances (20,866 ) (22,412 ) Net deferred tax assets 83,686 97,212 Deferred tax liabilities: Depreciation (4,763 ) (5,207 ) Unrealized gains and losses (10,446 ) (5,640 ) Goodwill and intangible assets (203,957 ) (190,541 ) Other (1,494 ) (2,087 ) (220,660 ) (203,475 ) Net deferred tax liability $ (136,974 ) $ (106,263 ) At September 30, 2017 , the Company had foreign net operating loss carryforwards of $84,175 and foreign capital loss carryforwards of $20,930 . The Company has recorded deferred tax assets of $2,232 for state net operating loss carryforwards, and various non-U.S. income tax credit carryforwards of $3,080 which will be available to offset future income tax liabilities. If not used, state net operating losses will begin to expire in 2018 . Certain of the foreign net operating losses begin to expire in 2018 while the majority of the Company's foreign net operating losses have no expiration period. Certain of these carryforwards are subject to limitations on use due to tax rules affecting acquired tax attributes, loss sharing between group members, and business continuation. Therefore, the Company has established tax-effected valuation allowances against these tax benefits in the amount of $20,866 at September 30, 2017 . Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2017 2016 2015 Balance, beginning of year $ 13,820 $ 4,086 $ 4,311 Increase from acquisition — — — Increases for tax positions of prior years 839 5,762 475 Decreases for tax positions of prior years (5,890 ) (166 ) (155 ) Increases based on tax positions related to the current year 378 5,456 635 Decreases due to settlements with taxing authorities — — (27 ) Decreases due to lapse of statute of limitation (1,179 ) (1,318 ) (1,153 ) Balance, end of year $ 7,968 $ 13,820 $ 4,086 The Company had unrecognized tax benefits of $7,968 at September 30, 2017 , which would impact the annual effective tax rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $3,587 in the next 12 months primarily due to the expiration of statutes of limitation related to specific tax positions. The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. Total penalties and interest accrued were $1,779 and $2,088 at September 30, 2017 and 2016 , 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 limitation expires for those tax jurisdictions. As of September 30, 2017 , the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2013 and forward United States - State 2013 and forward Canada 2013 and forward Germany 2009 and forward United Kingdom 2015 and forward Australia 2013 and forward Singapore 2012 and forward |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES: The Company operates various production, warehouse and office facilities and equipment under operating lease agreements. Annual rentals under these and other operating leases were $36,400 , $32,716 and $31,766 in fiscal 2017 , 2016 and 2015 , respectively. Future minimum rental commitments under non-cancelable operating lease arrangements for fiscal years 2018 through 2022 are $21,939 , $15,562 , $11,992 , $8,559 and $5,276 , respectively. The Company is party to various legal proceedings, the eventual outcome of which are not predictable. Although the ultimate disposition of these proceedings is not presently determinable, management is of the opinion that they should not result in liabilities in an amount which would materially affect the Company's consolidated financial position, results of operations or cash flows. The Company has employment agreements with certain employees, the terms of which expire at various dates between fiscal 2017 and 2019. The agreements generally provide for base salary and bonus levels and include non-compete provisions. The aggregate commitment for salaries under these agreements at September 30, 2017 was $5,652 . The Company is involved in a dispute with a customer related to a project in Saudi Arabia. It is possible the resolution of this matter could have an unfavorable financial impact on Matthews’ results of operations. See further discussion in Note 8. |
ENVIRONMENTAL MATTERS
ENVIRONMENTAL MATTERS | 12 Months Ended |
Sep. 30, 2017 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL MATTERS | ENVIRONMENTAL MATTERS: The Company's operations are subject to various federal, state and local laws and regulations relating to the protection of the environment. These laws and regulations impose limitations on the discharge of materials into the environment and require the Company to obtain and operate in compliance with conditions of permits and other government authorizations. As such, the Company has developed environmental, health and safety policies and procedures that include the proper handling, storage and disposal of hazardous materials. The Company is party to various environmental matters. These include obligations to investigate and mitigate the effects on the environment of the disposal of certain materials at various operating and non-operating sites. The Company is currently performing environmental assessments and remediation at these sites, as appropriate. At September 30, 2017 , an accrual of $2,928 had been recorded for environmental remediation (of which $750 was classified in other current liabilities), representing management's best estimate of the probable and reasonably estimable costs of known remediation obligations for one of the Company's subsidiaries. The accrual does not consider the effects of inflation and anticipated expenditures are not discounted to their present value. While final resolution of these contingencies could result in costs different than current accruals, management believes the ultimate outcome will not have a significant effect on the Company's consolidated results of operations or financial position. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION: Changes in working capital items as presented in the Consolidated Statements of Cash Flows consisted of the following: 2017 2016 2015 Current assets: Accounts receivable $ (7,045 ) $ (10,632 ) $ 7,566 Inventories (2,289 ) 10,453 17,001 Other current assets 4,447 12,434 (14,567 ) (4,887 ) 12,255 10,000 Current liabilities: Trade accounts payable 5,672 (11,083 ) (9,103 ) Accrued compensation (2,469 ) 147 (183 ) Accrued income taxes 5,054 4,079 3,389 Other current liabilities 2,414 8,317 (6,854 ) 10,671 1,460 (12,751 ) Net change $ 5,784 $ 13,715 $ (2,751 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION: The Company manages its businesses under three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment includes 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). The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets and cremation equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. Management evaluates segment performance based on operating profit (before income taxes) and does not allocate non-operating items such as investment income, interest expense, other income (deductions), net and noncontrolling interest amongst the segments. The accounting policies of the segments are the same as those described in Summary of Significant Accounting Policies (Note 2). Intersegment sales are accounted for at negotiated prices. Operating profit is total revenue less operating expenses. Segment assets include those assets that are used in the Company's operations within each segment. Assets classified under "Other" principally consist of cash and cash equivalents, investments, deferred income taxes and corporate headquarters' assets. Long-lived assets include property, plant and equipment (net of accumulated depreciation), goodwill, and other intangible assets (net of accumulated amortization). Information about the Company's segments follows: SGK Brand Solutions Memorialization Industrial Technologies Other Consolidated Sales to external customers: 2017 $ 770,181 $ 615,882 $ 129,545 $ — $ 1,515,608 2016 755,975 610,142 114,347 — 1,480,464 2015 798,339 508,058 119,671 — 1,426,068 Intersegment sales: 2017 356 — 2 — 358 2016 346 43 99 — 488 2015 478 77 25 — 580 Depreciation and amortization: 2017 41,941 19,808 2,863 3,369 67,981 2016 41,238 19,223 2,503 2,516 65,480 2015 46,594 12,410 2,294 1,322 62,620 Operating profit: 2017 24,919 80,652 7,032 — 112,603 2016 42,909 68,252 7,654 — 118,815 2015 21,864 70,064 13,095 — 105,023 Total assets: 2017 1,276,295 741,148 161,472 65,734 2,244,649 2016 1,177,816 735,985 122,179 55,061 2,091,041 2015 1,157,771 762,028 115,664 108,148 2,143,611 Capital expenditures: 2017 22,941 8,078 4,622 9,294 44,935 2016 22,043 11,870 3,461 4,308 41,682 2015 23,676 10,922 5,866 7,787 48,251 Information about the Company's operations by geographic area follows: United States Central and South America Canada Europe Australia Asia Consolidated Sales to external customers: 2017 $ 1,014,906 $ 6,518 $ 29,018 $ 396,242 $ 21,507 $ 47,417 $ 1,515,608 2016 1,018,129 10,160 27,589 360,678 20,043 43,865 1,480,464 2015 936,513 8,806 30,367 398,533 21,225 30,624 1,426,068 Long-lived assets: 2017 1,027,891 13,882 41,971 382,940 24,887 66,138 1,557,709 2016 1,000,870 13,267 41,393 334,847 23,768 50,677 1,464,822 2015 1,016,703 17,488 41,690 349,533 22,072 50,650 1,498,136 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS: Fiscal 2017: On March 1, 2017, the Company acquired GJ Creative Limited ("Equator") for £30.5 million ( $37,596 ) (net of cash acquired). Equator provides design expertise capable of taking brands from creation to shelf under one roof, and is included in the Company's SGK Brand Solutions segment. The preliminary purchase price allocation related to the Equator acquisition is not finalized as of September 30, 2017 , and is subject to changes as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. On February 28, 2017, the Company acquired certain net assets of RAF Technology, Inc. ("RAF") for $8,717 (net of cash acquired). RAF is a global leader in pattern and optical character recognition software, and is included in the Company's Industrial Technologies segment. The Company finalized the allocation of purchase price related to the RAF acquisition in the fourth quarter of fiscal 2017, resulting in an immaterial adjustment to certain working capital accounts. On January 13, 2017, the Company acquired VCG (Holdings) Limited ("VCG") for £8.8 million ( $10,695 ) (net of cash acquired). VCG is a leading graphics, plate-making, and creative design company and is included in the Company's SGK Brand Solutions segment. The preliminary purchase price allocation related to the VCG acquisition is not finalized as of September 30, 2017 , and is subject to change as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. On January 3, 2017, the Company acquired A. + E. Ungricht GmbH + Co KG ("Ungricht") for €24.0 million ( $25,185 ) (net of cash acquired). Ungricht is a leading European provider of pre-press services and gravure printing forms, located in Germany, and is included in the Company's SGK Brand Solutions segment. The preliminary purchase price allocation related to the Ungricht acquisition is not finalized as of September 30, 2017 , and is subject to change as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. On November 30, 2016, the Company acquired Guidance Automation Limited ("Guidance") for £8.0 million ( $9,974 ) (net of cash acquired). Guidance provides technological solutions for autonomous warehouse vehicles and is included in the Company's Industrial Technologies segment. The Company finalized the allocation of purchase price related to the Guidance acquisition in the fourth quarter of fiscal 2017, resulting in an immaterial adjustment to certain working capital and intangible asset accounts. Fiscal 2016: On February 1, 2016, the Company acquired certain net assets of Digital Design, Inc. ("DDI") for $8,773 (net of cash acquired and holdback amount). DDI is a manufacturer and seller of ink jet printing systems and is included in the Company's Industrial Technologies segment. The Company finalized the allocation of purchase price related to the DDI acquisition during fiscal 2017, resulting in an immaterial adjustment to certain working capital accounts. Fiscal 2015: On August 19, 2015, the Company acquired Aurora Products Group, LLC ("Aurora") for $210,026 (net of cash acquired). Aurora provides burial, cremation, and technology products to funeral home clients and distributors in the United States and Canada. The acquisition was designed to expand the Company's memorialization product offerings and geographic distribution footprint in the United States. During fiscal 2016, the Company finalized the allocation of purchase price related to the Aurora acquisition, resulting in immaterial adjustments to property, plant and equipment, goodwill, certain working capital accounts and deferred taxes. The final allocation of the purchase price resulted in goodwill of $73,927 , which was assigned to the Memorialization segment, $76,340 of intangible assets, of which $30,540 is not subject to amortization, $26,268 of property, plant and equipment, and $33,491 of other net assets, primarily working capital. Approximately $44,000 of the goodwill is expected to be deductible for tax purposes. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS: Changes to goodwill during the years ended September 30, 2017 and 2016 , follow. SGK Brand Solutions Memorialization Industrial Technologies Consolidated Goodwill $ 466,647 $ 346,946 $ 52,887 $ 866,480 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2015 460,895 341,946 52,887 855,728 Additions during period — — 3,958 3,958 Translation and other adjustments (8,137 ) 170 (230 ) (8,197 ) Goodwill 458,510 347,116 56,615 862,241 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2016 452,758 342,116 56,615 851,489 Additions during period 21,361 158 11,694 33,213 Translation and other adjustments 12,024 233 835 13,092 Goodwill 491,895 347,507 69,144 908,546 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2017 $ 486,143 $ 342,507 $ 69,144 $ 897,794 The Company performed its annual impairment review of goodwill in the second quarter of fiscal 2017 and determined that estimated fair value for all reporting units exceeded carrying value, therefore no adjustments to the carrying value of goodwill were necessary. In fiscal 2017, the additions to SGK Brand Solutions goodwill primarily reflects the acquisitions of Equator, VCG and Ungricht. The additions to Industrial Technologies goodwill primarily reflects the acquisitions of RAF and Guidance. In fiscal 2016, the addition to Industrial Technologies goodwill reflects the acquisition of DDI. In fiscal 2015, the addition to Memorialization goodwill primarily reflects the acquisition of Aurora, and the addition to Industrial Technologies goodwill primarily reflects the acquisition of a small printing products business. The amount reflected in translation and other adjustments for the SGK Brand Solutions segment includes the impact of purchase price adjustments. The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2017 and 2016 , respectively. Carrying Amount Accumulated Amortization Net September 30, 2017 Trade names $ 168,467 $ — * $ 168,467 Trade names 5,522 (2,030 ) 3,492 Customer relationships 333,632 (84,560 ) 249,072 Copyrights/patents/other 14,787 (11,436 ) 3,351 $ 522,408 $ (98,026 ) $ 424,382 September 30, 2016 Trade names $ 168,467 $ — * $ 168,467 Trade names 1,814 (1,802 ) 12 Customer relationships 286,595 (61,706 ) 224,889 Copyrights/patents/other 11,066 (10,593 ) 473 $ 467,942 $ (74,101 ) $ 393,841 *Not subject to amortization The net change in intangible assets during fiscal 2017 included the impact of foreign currency fluctuations during the period, additional amortization, and additions related to the Guidance, Ungricht, VCG, RAF and Equator acquisitions. Amortization expense on intangible assets was $23,313 , $20,821 , and $18,800 in fiscal 2017 , 2016 and 2015 , respectively. Fiscal year amortization expense is estimated to be $24,187 in 2018 , $22,731 in 2019 , $21,281 in 2020 , $20,237 in 2021 and $19,161 in 2022 . |
RELATED PARTY TRANSACTION RELAT
RELATED PARTY TRANSACTION RELATED PARTY TRANSACTION | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | RELATED PARTY TRANSACTION: In May 2016, the Company purchased 970,000 common shares from members of the Schawk family, including David A. Schawk (who is a member of the Board of Directors of the Company and the Company's President, SGK Brand Solutions) and certain family members of Mr. Schawk and/or trusts established for the benefit of Mr. Schawk or his family members. The purchase price for the shares purchase was $50.6921625 per share, which was equal to 96.76% of the average of the high and low trading prices for the common stock as reported on the Nasdaq Global Select Market on May 12, 2016. |
LEGAL MATTER LEGAL MATTER
LEGAL MATTER LEGAL MATTER | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL MATTER | LEGAL MATTER: During fiscal 2017, the Company recognized loss recoveries of $11,325 related to the previously disclosed theft of funds by a former employee initially identified in fiscal 2015. |
SUPPLEMENTARY FINANCIAL INFORMA
SUPPLEMENTARY FINANCIAL INFORMATION | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION | Selected Quarterly Financial Data (Unaudited): The following table sets forth certain items included in the Company's unaudited consolidated financial statements for each quarter of fiscal 2017 and fiscal 2016 . Quarter Ended December 31 March 31 June 30 September 30 Year Ended September 30 (Dollar amounts in thousands, except per share data) FISCAL YEAR 2017: Sales $ 348,998 $ 380,916 $ 389,630 $ 396,064 $ 1,515,608 Gross profit 127,267 138,422 144,094 153,604 563,387 Operating profit 19,063 26,828 36,786 29,926 112,603 Net income attributable to Matthews shareholders 10,322 (1) 14,920 29,485 19,641 74,368 Earnings per share: Basic $ 0.32 (1) $ 0.46 $ 0.91 $ 0.61 $ 2.31 Diluted 0.32 (1) 0.46 0.91 0.60 2.28 FISCAL YEAR 2016: Sales $ 354,232 $ 367,176 $ 382,061 $ 376,995 $ 1,480,464 Gross profit 126,567 137,760 145,297 146,830 556,454 Operating profit 12,038 26,435 40,670 39,672 118,815 Net income attributable to Matthews shareholders 4,614 14,357 23,915 23,863 66,749 Earnings per share: Basic $ 0.14 $ 0.44 $ 0.73 $ 0.74 $ 2.04 Diluted 0.14 0.43 0.73 0.74 2.03 (1) Results for the first quarter of fiscal 2017 have been revised to reflect the adoption of ASU 2016-09. The adoption of this ASU resulted in a reduction to income tax expense of $1,234 and a corresponding favorable impact on earnings per share of $0.04 . |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Additions Description Balance at Beginning of Period Charged to Expense Charged to other Accounts(1) Deductions(2) Balance at End of Period (Dollar amounts in thousands) Allowance for Doubtful Accounts: Fiscal Year Ended: September 30, 2017 $ 11,516 $ 1,733 $ 642 $ (2,269 ) $ 11,622 September 30, 2016 10,015 3,055 435 (1,989 ) 11,516 September 30, 2015 10,937 2,101 (134 ) (2,889 ) 10,015 (1) Amount comprised principally of acquisitions and purchase accounting adjustments in connection with acquisitions, and amounts reclassified to other accounts. (2) Amounts determined not to be collectible (including direct write-offs), net of recoveries. Description Balance at Beginning of Period Provision Charged (Credited) To Expense(1) Allowance Changes(2) Other Deductions(3) Balance at End of Period (Dollar amounts in thousands) Deferred Tax Asset Valuation Allowance: Fiscal Year Ended: September 30, 2017 $ 22,412 $ (1,279 ) $ — $ (267 ) $ 20,866 September 30, 2016 20,977 2,438 — (1,003 ) 22,412 September 30, 2015 24,540 399 (1,705 ) (2,257 ) 20,977 (1) Amounts relate primarily to adjustments in net operating loss carryforwards which are precluded from use. (2) Fiscal 2015 amounts primarily reflect a release of a valuation allowance resulting from a fiscal 2015 legal structure reorganization in foreign jurisdictions that enabled the utilization of certain tax attributes. (3) Consists principally of adjustments related to foreign exchange. |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control. Investments in certain companies over which the Company exerts significant influence, but does not control the financial and operating decisions, are accounted for as equity method investments. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates: 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 the 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents: The Company considers all investments purchased with a remaining maturity of three months or less to be cash equivalents. The carrying amount of cash and cash equivalents approximates fair value due to the short-term maturities of these instruments. |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts: Trade receivables are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due. The allowance for doubtful accounts is based on an evaluation of specific customer accounts for which available facts and circumstances indicate collectability may be uncertain. |
Inventories | Inventories: Inventories are stated at the lower of cost or market with cost generally determined under the average cost method. Inventory costs include material, labor, and applicable manufacturing overhead (including depreciation) and other direct costs. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are carried at cost. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the assets, which generally range from 10 to 45 years for buildings and 3 to 12 years for machinery and equipment. Gains or losses from the disposition of assets are reflected in operating profit. The cost of maintenance and repairs is charged to expense as incurred. Renewals and betterments of a nature considered to extend the useful lives of the assets are capitalized. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets is determined by evaluating the estimated undiscounted net cash flows of the operations to which the assets relate. An impairment loss would be recognized when the carrying amount of the assets exceeds the fair value, which is based on a discounted cash flow analysis. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Intangible assets with finite useful lives are amortized over their estimated useful lives, ranging from 2 to 20 years, and are reviewed when appropriate for possible impairment, similar to property, plant and equipment. Goodwill and intangible assets with indefinite lives are not amortized, but are tested annually for impairment, or when circumstances indicate that a possible impairment may exist. In general, when the carrying value of these assets exceeds the implied fair value, an impairment loss must be recognized. A significant decline in cash flows generated from these assets may result in a write-down of the carrying values of the related assets. For purposes of testing goodwill for impairment, the Company uses a combination of valuation techniques, including discounted cash flows. For purposes of testing indefinite-lived intangible assets, the Company generally uses a relief from royalty method |
Pension and Other Postretirement Plans | Pension and Other Postretirement Plans: Pension assets and liabilities are determined on an actuarial basis and are affected by the market value of plan assets, estimates of the expected return on plan assets and the discount rate used to determine the present value of benefit obligations. Actual changes in the fair market value of plan assets and differences between the actual return on plan assets, the expected return on plan assets and changes in the selected discount rate will affect the amount of pension cost. |
Environmental | Environmental: Costs that mitigate or prevent future environmental issues or extend the life or improve equipment utilized in current operations are capitalized and depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company's obligation is probable and reasonably estimable. Accruals for losses from environmental remediation obligations do not consider the effects of inflation, and anticipated expenditures are not discounted to their present value. |
Derivatives and Hedging | Derivatives and Hedging: Derivatives are held as part of a formal documented hedging program. All derivatives are held for purposes other than trading. Matthews measures effectiveness by formally assessing, at least quarterly, the historical and probable future high correlation of changes in the fair value or future cash flows of the hedged item. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, gains and losses on the derivative will be recorded in other income (deductions) at that time. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) ("OCI"), net of tax, and are reclassified to earnings in a manner consistent with the underlying hedged item. The cash flows from derivative activities are recognized in the statement of cash flows in a manner consistent with the underlying hedged item. |
Foreign Currency | Foreign Currency: The functional currency of the Company's foreign subsidiaries is generally the local currency. Balance sheet accounts for foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet date. Gains or losses that result from this process are recorded in accumulated other comprehensive income (loss). The revenue and expense accounts of foreign subsidiaries are translated into U.S. dollars at the average exchange rates that prevailed during the period. Realized gains and losses from foreign currency transactions are presented in the Statement of Income in a consistent manner with the underlying transaction based upon the provisions of Accounting Standards Codification ("ASC") 830 "Foreign Currency Matters." |
Comprehensive Income (Loss) | Comprehensive Income (Loss): Comprehensive income (loss) consists of net income adjusted for changes, net of any related income tax effect, in cumulative foreign currency translation, the fair value of derivatives, unrealized investment gains and losses and minimum pension liability. |
Treasury Stock | Treasury Stock: Treasury stock is carried at cost. The cost of treasury shares sold is determined under the average cost method. |
Revenue Recognition | Revenue Recognition: Revenues are generally recognized when title, ownership, and risk of loss pass to the customer, which is typically at the time of product shipment and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product and customer. Revenues from brand development and deployment services are recognized using the completed performance method, which is typically when the customer receives the final deliverable. For arrangements with customer acceptance provisions, revenue is recognized when the customer approves the final deliverable. For pre-need sales of memorials and vases, revenue is recognized when the memorial has been manufactured to the customer's specifications (e.g., name and birth date), title has been transferred to the customer and the memorial and vase are placed in storage for future delivery. A liability has been recorded for the estimated costs of finishing pre-need bronze memorials and vases that have been manufactured and placed in storage prior to July 1, 2003 for future delivery. Beginning July 1, 2003, revenue is deferred by the Company on the portion of pre-need sales attributable to the final finishing and storage of the pre-need merchandise. Deferred revenue for final finishing is recognized at the time the pre-need merchandise is finished and shipped to the customer. Deferred revenue related to storage is recognized on a straight-line basis over the estimated average time that pre-need merchandise is held in storage. At September 30, 2017 , the Company held 330,716 memorials and 221,713 vases in its storage facilities under the pre-need sales program. Revenues from mausoleum construction and significant engineering projects, including certain roto-gravure projects, cremation units and marking and industrial automation projects, are recognized under the percentage-of-completion method of accounting using the cost-to-cost basis for measuring progress toward completion. As work is performed under contracts, estimates of the costs to complete are regularly reviewed and updated. As changes in estimates of total costs at completion on projects are identified, appropriate earnings adjustments are recorded using the cumulative catch-up method. Provisions for estimated losses on uncompleted contracts are recorded during the period in which such losses become evident. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs: All fees billed to the customer for shipping and handling are classified as a component of net revenues. All costs associated with shipping and handling are classified as a component of cost of sales or selling expense. |
Research and Development Expenses | Research and Development Expenses: Research and development costs are expensed as incurred and were approximately $16,362 , $14,793 and $13,033 for the years ended September 30, 2017 , 2016 and 2015 , respectively. |
Stock-Based Payment | Stock-Based Compensation: Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the employee requisite service period. A binomial lattice model is utilized to determine the fair value of awards that have vesting conditions based on market targets. |
Income Taxes | Income Taxes: Deferred tax assets and liabilities are provided for the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred income taxes for U.S. tax purposes have not been provided on certain undistributed earnings of foreign subsidiaries, as such earnings are considered to be reinvested indefinitely. To the extent earnings are expected to be returned in the foreseeable future, the associated deferred tax liabilities are provided. The Company has not determined the deferred tax liability associated with these undistributed earnings, as such determination is not practicable, due to the complexities of the hypothetical calculation. |
Earnings Per Share | Earnings Per Share: Basic earnings per share is computed by dividing net income by the average number of common shares outstanding. Diluted earnings per share is computed using the treasury stock method, which assumes the issuance of common stock for all dilutive securities. |
Accounting Pronouncements | Issued In August 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-12, Derivatives and Hedging (Topic 815) , which provides new guidance intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for the Company beginning in fiscal year 2020. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) , which provides new guidance intended to clarify and reduce complexities in applying stock compensation guidance to a change to the terms or conditions of share-based payment awards. This ASU is effective for the Company beginning in fiscal year 2019. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which provides new guidance intended to improve the disclosure requirements related to the service cost component of net benefit cost. This ASU is effective for the Company beginning in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which provides new guidance intended to simplify the subsequent measurement of goodwill and removing Step 2 from the goodwill impairment process. This ASU is effective for the Company beginning in fiscal year 2021, and does allow for early adoption. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides new guidance intended to make the definition of a business more operable and allow for more consistency in application. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) , which provides new guidance intended to clarify the presentation of certain cash flow items including debt prepayments, debt extinguishment costs, contingent considerations payments, and insurance proceeds, among other things. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019, and early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. This ASU requires lessees to recognize assets and liabilities that arise from financing and operating leases on the Consolidated Balance Sheet. The implementation of this standard will require application of the new guidance at the beginning of the earliest comparative period presented, once adopted. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2020, and does allow for early adoption. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which provides new guidance intended to improve the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which provides new guidance to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new inventory measurement requirements are effective for the Company's 2018 fiscal year, and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 . This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. The FASB issued ASU 2015-14 in August 2015 which resulted in a deferral of the original effective date of ASU 2014-09. During 2016, the FASB issued four ASUs that address implementation issues and correct or improve certain aspects of the new revenue recognition guidance, including ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Identifying Performance Obligations and Licensing , ASU 2016-12, Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . These ASUs do not change the core principles in the revenue recognition guidance outlined above. ASU No. 2014-09 and the related ASUs referenced above are effective for Matthews beginning October 1, 2018. The Company is in the process of completing its initial detailed review of all global revenue arrangements in accordance with these ASUs and assessing the impact these ASUs will have on its consolidated financial statements. Adopted In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which provides new guidance intended to simplify the accounting surrounding share-based compensation. Under the new guidance, all excess tax benefits related to share-based compensation are recognized as a component of income tax expense, and will no longer be recognized within additional paid-in capital. The Company has early adopted this ASU in the fourth quarter of fiscal 2017, which, under the prospective method, includes retroactive application of the ASU beginning October 1, 2016 (beginning of the fiscal year). This ASU allows for an accounting policy election to estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company elected to maintain its current forfeitures policy and will continue to include an estimate of those forfeitures when recognizing stock-based compensation expense. The adoption of this ASU in fiscal 2017 resulted in a reduction to income tax expense of $1,234 , and a corresponding favorable impact on diluted earnings per share of $0.04 , both of which have been retroactively included in the first quarter results for fiscal 2017. In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718), which provides new guidance intended to clarify the diverse accounting treatment for certain share-based payments. Share-based payments with performance targets that could be achieved after the requisite service period should be treated as performance conditions under the existing guidance in ASC Topic 718. The adoption of this ASU in the first quarter ended December 31, 2016 had no impact on the Company's consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | As of September 30, 2017 and 2016 , the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2017 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 3,990 $ — $ 3,990 Equity and fixed income mutual funds — 21,649 — 21,649 Other investments — 5,810 — 5,810 Total assets at fair value $ — $ 31,449 $ — $ 31,449 Liabilities: Derivatives (1) $ — $ 31 $ — $ 31 Total liabilities at fair value $ — $ 31 $ — $ 31 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. September 30, 2016 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 193 $ — $ 193 Equity and fixed income mutual funds — 19,790 — 19,790 Other investments — 5,127 — 5,127 Total assets at fair value $ — $ 25,110 $ — $ 25,110 Liabilities: Derivatives (1) $ — $ 6,027 $ — $ 6,027 Total liabilities at fair value $ — $ 6,027 $ — $ 6,027 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at September 30, 2017 and 2016 consisted of the following: 2017 2016 Raw materials $ 29,396 $ 29,597 Work in process 61,917 54,357 Finished goods 80,132 78,518 $ 171,445 $ 162,472 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Current Investments | At September 30, 2017 and 2016 , non-current investments were as follows: 2017 2016 Equity and fixed income mutual funds $ 21,649 $ 19,790 Other investments 16,018 11,575 $ 37,667 $ 31,365 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment and Related Accumulated Depreciation | Property, plant and equipment and the related accumulated depreciation at September 30, 2017 and 2016 were as follows: 2017 2016 Buildings $ 104,604 $ 102,153 Machinery and equipment 412,980 378,650 517,584 480,803 Less accumulated depreciation (335,346 ) (305,613 ) 182,238 175,190 Land 16,845 19,705 Construction in progress 36,450 24,597 $ 235,533 $ 219,492 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt at September 30, 2017 and 2016 consisted of the following: 2017 2016 Revolving credit facilities $ 551,126 $ 608,000 Securitization facility 95,825 — Senior secured term loan 232,479 246,449 Notes payable to banks 21,831 5,301 Short-term borrowings 4,735 8,617 Capital lease obligations 5,134 4,187 911,130 872,554 Less current maturities (29,528 ) (27,747 ) $ 881,602 $ 844,807 |
Interest Rate Contracts | The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: September 30, 2017 September 30, 2016 Pay fixed swaps - notional amount $ 414,063 $ 403,125 Net unrealized gain (loss) $ 3,959 $ (5,834 ) Weighted-average maturity period (years) 3.3 3.9 Weighted-average received rate 1.23 % 0.53 % Weighted-average pay rate 1.34 % 1.26 % |
Interest Rate Swap Contracts Reflected in Consolidated Balance Sheets | At September 30, 2017 and 2016 , the interest rate swap contracts were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: 2017 2016 Current assets: Other current assets $ 1,098 $ 43 Long-term assets: Other assets 2,892 150 Current liabilities: Other current liabilities (7 ) (1,529 ) Long-term liabilities: Other liabilities (24 ) (4,498 ) Total derivatives $ 3,959 $ (5,834 ) |
Gains (Losses) Recognized on Derivatives | The gains (losses) recognized on derivatives was as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives 2017 2016 2015 Interest rate swaps Interest expense $1,752 $(3,146) $(3,922) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income(Effective Portion*) 2017 2016 2015 (Effective Portion*) 2017 2016 2015 Interest rate swaps $7,043 $(3,230) $(4,841) Interest expense $1,069 $(1,919) $(2,392) *There is no ineffective portion or amount excluded from effectiveness testing. |
Aggregate Maturities of Long-Term Debt | Aggregate maturities of long-term debt, including short-term borrowings and capital leases, is as follows: 2018 $ 29,528 2019 166,012 2020 25,487 2021 687,504 2022 242 Thereafter 2,357 $ 911,130 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Activity | The transactions for restricted stock for the year ended September 30, 2017 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2016 522,710 $ 45.10 Granted 216,655 66.61 Vested (231,231 ) 46.57 Expired or forfeited (6,950 ) 50.29 Non-vested at September 30, 2017 501,184 $ 53.65 |
Stock Option Activity | The transactions for shares under options for the year ended September 30, 2017 were as follows: Shares Weighted- average Exercise Price Weighted- average Remaining Contractual Term Aggregate Intrinsic Value Outstanding, September 30, 2016 77,733 $ 40.56 Exercised (333 ) 40.56 Expired or forfeited (77,400 ) 40.56 Outstanding, September 30, 2017 — $ — — $ — Exercisable, September 30, 2017 — $ — — $ — |
Non-vested Options Activity | The transactions for non-vested option shares for the year ended September 30, 2017 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2016 77,400 $ 12.29 Expired or forfeited (77,400 ) 12.29 Non-vested at September 30, 2017 — $ — |
Assumptions Used in Estimating Fair Value | The fair value of each restricted stock grant is estimated on the date of grant using a binomial lattice valuation model. The following table indicates the assumptions used in estimating fair value of restricted stock for the years ended September 30, 2017 , 2016 and 2015 . 2017 2016 2015 Expected volatility 20.2 % 20.7 % 22.2 % Dividend yield 1.1 % 1.0 % 1.0 % Average risk-free interest rate 1.7 % 1.7 % 1.7 % Average expected term (years) 2.1 2.1 1.8 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [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: 2017 2016 2015 Net income attributable to Matthews shareholders $ 74,368 $ 66,749 $ 63,449 Less: dividends and undistributed earnings allocated to participating securities — — 10 Net income available to Matthews shareholders $ 74,368 $ 66,749 $ 63,439 Weighted-average shares outstanding (in thousands): Basic shares 32,240 32,642 32,939 Effect of dilutive securities 330 262 257 Diluted shares 32,570 32,904 33,196 |
PENSION AND OTHER POSTRETIREM41
PENSION AND OTHER POSTRETIREMENT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans | The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2017 and 2016 : Pension Other Postretirement 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation, beginning of year $ 263,566 $ 238,727 $ 23,290 $ 20,424 Service cost 8,553 7,446 392 402 Interest cost 7,362 9,725 626 845 Actuarial (gain) loss (4,264 ) 26,841 (2,600 ) 2,931 Exchange loss (gain) 589 (6 ) — — Benefit payments (16,134 ) (19,167 ) (1,392 ) (1,312 ) Benefit obligation, end of year 259,672 263,566 20,316 23,290 Change in plan assets: Fair value, beginning of year 151,864 142,225 — — Actual return 12,586 11,244 — — Benefit payments (1) (16,134 ) (19,167 ) (1,392 ) (1,312 ) Employer contributions 7,318 17,562 1,392 1,312 Fair value, end of year 155,634 151,864 — — Funded status (104,039 ) (111,701 ) (20,317 ) (23,291 ) Unrecognized actuarial loss (gain) 73,616 92,310 (1,469 ) 1,130 Unrecognized prior service cost (690 ) (1,048 ) (720 ) (916 ) Net amount recognized $ (31,113 ) $ (20,439 ) $ (22,506 ) $ (23,077 ) Amounts recognized in the consolidated balance sheet: Current liability $ (766 ) $ (760 ) $ (1,044 ) $ (1,148 ) Noncurrent benefit liability (103,273 ) (110,941 ) (19,273 ) (22,143 ) Accumulated other comprehensive loss (income) 72,926 91,262 (2,189 ) 214 Net amount recognized $ (31,113 ) $ (20,439 ) $ (22,506 ) $ (23,077 ) Amounts recognized in accumulated other comprehensive loss (income): Net actuarial loss (income) $ 73,616 $ 92,310 $ (1,469 ) $ 1,130 Prior service cost (690 ) (1,048 ) (720 ) (916 ) Net amount recognized $ 72,926 $ 91,262 $ (2,189 ) $ 214 (1) Pension benefit payments in fiscal 2017 and 2016 include $5,655 and $9,300 of lump sum distributions, respectively, that were made to certain terminated vested employees as settlements of the employees' pension obligations. These distributions did not meet the threshold to qualify as settlements under U.S. GAAP and therefore, no unamortized actuarial losses were recognized in the Statements of Income upon completion of the lump sum distributions. |
Net Periodic Pension and Other Postretirement Benefit Cost | Net periodic pension and other postretirement benefit cost for the plans included the following: Pension Other Postretirement 2017 2016 2015 2017 2016 2015 Service cost $ 8,553 $ 7,446 $ 6,764 $ 392 $ 402 $ 454 Interest cost 7,362 9,725 8,740 626 845 885 Expected return on plan assets (9,249 ) (9,625 ) (10,151 ) — — — Amortization: Prior service cost (181 ) (183 ) (180 ) (195 ) (195 ) (195 ) Net actuarial loss (gain) 10,034 7,468 6,203 — — — Net benefit cost $ 16,519 $ 14,831 $ 11,376 $ 823 $ 1,052 $ 1,144 |
Contributions During Fiscal Year | Contributions made in fiscal 2017 are as follows: Contributions Pension Other Postretirement Principal retirement plan $ 6,180 $ — Supplemental retirement plan 725 — Other retirement plans 413 — Other postretirement plan — 1,392 |
Amounts of AOCI Expected to be Recognized in Net Periodic Benefit Costs | Amounts of AOCI expected to be recognized in net periodic benefit costs in fiscal 2018 include: Pension Benefits Other Postretirement Benefits Net actuarial loss $ 7,010 $ — Prior service cost (138 ) (195 ) |
Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans | The measurement date of annual actuarial valuations for the Company's principal retirement and other postretirement benefit plans was September 30, for fiscal 2017 , 2016 and 2015 . The weighted-average assumptions for those plans were: Pension Other Postretirement 2017 2016 2015 2017 2016 2015 Discount rate 3.76 % 3.51 % 4.25 % 3.72 % 3.42 % 4.25 % Return on plan assets 6.75 % 7.25 % 7.75 % — — — Compensation increase 3.50 % 3.50 % 3.50 % — — — |
Weighted Average Asset Allocation and Target Allocation | The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2017 and 2016 and weighted-average target allocation were as follows: Plan Assets at Target Asset Category 2017 2016 Allocation* Equity securities $ 77,245 $ 58,849 50 % Fixed income, cash and cash equivalents 49,008 72,495 30 % Other investments 29,381 20,520 20 % $ 155,634 $ 151,864 100 % * Target allocation relates to the Company's primary defined benefit pension plan |
Fair Value Allocation of Plan Assets | The Company's defined benefit pension plans' asset categories at September 30, 2017 and 2016 were as follows: September 30, 2017 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks $ 42,731 $ — $ — $ 42,731 Equity securities - mutual funds 34,514 — — 34,514 Fixed income securities 30,032 14,870 — 44,902 Cash and cash equivalents 4,106 — — 4,106 Other investments 19,901 — 9,480 29,381 Total $ 131,284 $ 14,870 $ 9,480 $ 155,634 September 30, 2016 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks $ 35,912 $ — $ — $ 35,912 Equity securities - mutual funds 22,937 — — 22,937 Fixed income securities 41,099 11,732 — 52,831 Cash and cash equivalents 19,664 — — 19,664 Other investments 7,694 10 12,816 20,520 Total $ 127,306 $ 11,742 $ 12,816 $ 151,864 |
Changes in Fair Value of Level 3 Plan Assets | Changes in the fair value of Level 3 assets at September 30, 2017 and 2016 are summarized as follows: Asset Category Fair Value, Beginning of Period Acquisitions Dispositions Realized Gains Unrealized Gains (Losses) Fair Value, End of Period Other investments: Fiscal Year Ended: September 30, 2017 $ 12,816 $ — $ (3,286 ) $ 418 $ (468 ) $ 9,480 September 30, 2016 13,982 — (941 ) 449 (674 ) 12,816 |
Benefit Payments Expected to be Paid | Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits Other Postretirement Benefits 2018 $ 10,137 $ 1,044 2019 10,586 1,072 2020 10,983 1,013 2021 11,447 1,044 2022 12,811 1,094 2023-2027 72,463 6,004 $ 128,427 $ 11,271 |
ACCUMULATED OTHER COMPREHENSI42
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Change in AOCI by Component, Net of Tax | The changes in AOCI by component, net of tax, for the years ended September 30, 2017 , 2016 and 2015 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2014 $ (39,651 ) $ (27,367 ) $ 201 $ (66,817 ) OCI before reclassification (7,378 ) (77,237 ) (4,841 ) (89,456 ) Amounts reclassified from AOCI (a) 3,555 — (b) 2,392 5,947 Net current-period OCI (3,823 ) (77,237 ) (2,449 ) (83,509 ) Balance, September 30, 2015 $ (43,474 ) $ (104,604 ) $ (2,248 ) $ (150,326 ) OCI before reclassification (16,901 ) (17,655 ) (3,230 ) (37,786 ) Amounts reclassified from AOCI (a) 4,325 — (b) 1,919 6,244 Net current-period OCI (12,576 ) (17,655 ) (1,311 ) (31,542 ) Balance, September 30, 2016 $ (56,050 ) $ (122,259 ) $ (3,559 ) $ (181,868 ) OCI before reclassification 6,536 9,352 7,043 22,931 Amounts reclassified from AOCI (a) 5,891 — (b) (1,069 ) 4,822 Net current-period OCI 12,427 9,352 5,974 27,753 Balance, September 30, 2017 $ (43,623 ) $ (112,907 ) $ 2,415 $ (154,115 ) Attributable to noncontrolling interest: Balance, September 30, 2014 $ — $ 516 $ — $ 516 OCI before reclassification — (150 ) — (150 ) Net current-period OCI — (150 ) — (150 ) Balance, September 30, 2015 $ — $ 366 $ — $ 366 OCI before reclassification — (89 ) — (89 ) Net current-period OCI — (89 ) — (89 ) Balance, September 30, 2016 $ — $ 277 $ — $ 277 OCI before reclassification — 119 — 119 Net current-period OCI — 119 — 119 Balance, September 30, 2017 $ — $ 396 $ — $ 396 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 8). Accumulated other comprehensive loss at September 30, 2017 and 2016 consisted of the following: 2017 2016 Cumulative foreign currency translation $ (112,907 ) $ (122,259 ) Fair value of derivatives, net of tax of $1,544 and $2,275, respectively 2,415 (3,559 ) Minimum pension liabilities, net of tax of $27,114 and $35,426, respectively (43,623 ) (56,050 ) $ (154,115 ) $ (181,868 ) |
Reclassifications out of AOCI | Reclassifications out of AOCI for the years ended September 30, 2017 , 2016 and 2015 were as follows: Details about AOCI Components September 30, 2017 September 30, 2016 September 30, 2015 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 376 $ 378 $ 375 Actuarial losses (a) (10,034 ) (7,468 ) (6,203 ) (b) (9,658 ) (7,090 ) (5,828 ) Income before income tax (3,767 ) (2,765 ) (2,273 ) Income taxes $ (5,891 ) $ (4,325 ) $ (3,555 ) Net income Derivatives Interest rate swap contracts $ 1,752 $ (3,146 ) $ (3,922 ) Interest expense (b) 1,752 (3,146 ) (3,922 ) Income before income tax 683 (1,227 ) (1,530 ) Income taxes $ 1,069 $ (1,919 ) $ (2,392 ) Net income (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 12. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes consisted of the following: 2017 2016 2015 Current: Federal $ 1,542 $ 18,733 $ 655 State 628 1,829 1,466 Foreign 10,459 12,482 10,599 12,629 33,044 12,720 Deferred: Federal 11,887 (3,066 ) 13,279 State 905 (2,412 ) 645 Foreign (3,067 ) 1,507 (280 ) 9,725 (3,971 ) 13,644 Total $ 22,354 $ 29,073 $ 26,364 |
Reconciliation of Federal Statutory Tax Rate to Consolidated Effective Tax Rate | The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows: 2017 2016 2015 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Effect of state income taxes, net of federal deduction 1.4 % (0.6 )% 1.8 % Foreign taxes less than federal statutory rate (7.2 )% (3.5 )% (3.2 )% Share-based compensation (1.2 )% — % — % Other (4.8 )% (0.4 )% (4.2 )% Effective tax rate 23.2 % 30.5 % 29.4 % |
Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities at September 30, 2017 and 2016 are as follows: 2017 2016 Deferred tax assets: Pension and postretirement benefits $ 45,654 $ 46,282 Accruals and reserves not currently deductible 20,579 26,214 Income tax credit carryforward 3,313 10,080 Operating and capital loss carryforwards 23,610 25,258 Stock options 8,614 6,544 Other 2,782 5,246 Total deferred tax assets 104,552 119,624 Valuation allowances (20,866 ) (22,412 ) Net deferred tax assets 83,686 97,212 Deferred tax liabilities: Depreciation (4,763 ) (5,207 ) Unrealized gains and losses (10,446 ) (5,640 ) Goodwill and intangible assets (203,957 ) (190,541 ) Other (1,494 ) (2,087 ) (220,660 ) (203,475 ) Net deferred tax liability $ (136,974 ) $ (106,263 ) |
Changes in Gross Unrecognized Tax Benefits | Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2017 2016 2015 Balance, beginning of year $ 13,820 $ 4,086 $ 4,311 Increase from acquisition — — — Increases for tax positions of prior years 839 5,762 475 Decreases for tax positions of prior years (5,890 ) (166 ) (155 ) Increases based on tax positions related to the current year 378 5,456 635 Decreases due to settlements with taxing authorities — — (27 ) Decreases due to lapse of statute of limitation (1,179 ) (1,318 ) (1,153 ) Balance, end of year $ 7,968 $ 13,820 $ 4,086 |
Summary of Income Tax Contingencies | As of September 30, 2017 , the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2013 and forward United States - State 2013 and forward Canada 2013 and forward Germany 2009 and forward United Kingdom 2015 and forward Australia 2013 and forward Singapore 2012 and forward |
SUPPLEMENTAL CASH FLOW INFORM44
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Changes in Working Capital Items as Presented in the Consolidated Statements of Cash Flows | Changes in working capital items as presented in the Consolidated Statements of Cash Flows consisted of the following: 2017 2016 2015 Current assets: Accounts receivable $ (7,045 ) $ (10,632 ) $ 7,566 Inventories (2,289 ) 10,453 17,001 Other current assets 4,447 12,434 (14,567 ) (4,887 ) 12,255 10,000 Current liabilities: Trade accounts payable 5,672 (11,083 ) (9,103 ) Accrued compensation (2,469 ) 147 (183 ) Accrued income taxes 5,054 4,079 3,389 Other current liabilities 2,414 8,317 (6,854 ) 10,671 1,460 (12,751 ) Net change $ 5,784 $ 13,715 $ (2,751 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Information about the Company's segments follows: SGK Brand Solutions Memorialization Industrial Technologies Other Consolidated Sales to external customers: 2017 $ 770,181 $ 615,882 $ 129,545 $ — $ 1,515,608 2016 755,975 610,142 114,347 — 1,480,464 2015 798,339 508,058 119,671 — 1,426,068 Intersegment sales: 2017 356 — 2 — 358 2016 346 43 99 — 488 2015 478 77 25 — 580 Depreciation and amortization: 2017 41,941 19,808 2,863 3,369 67,981 2016 41,238 19,223 2,503 2,516 65,480 2015 46,594 12,410 2,294 1,322 62,620 Operating profit: 2017 24,919 80,652 7,032 — 112,603 2016 42,909 68,252 7,654 — 118,815 2015 21,864 70,064 13,095 — 105,023 Total assets: 2017 1,276,295 741,148 161,472 65,734 2,244,649 2016 1,177,816 735,985 122,179 55,061 2,091,041 2015 1,157,771 762,028 115,664 108,148 2,143,611 Capital expenditures: 2017 22,941 8,078 4,622 9,294 44,935 2016 22,043 11,870 3,461 4,308 41,682 2015 23,676 10,922 5,866 7,787 48,251 Information about the Company's operations by geographic area follows: United States Central and South America Canada Europe Australia Asia Consolidated Sales to external customers: 2017 $ 1,014,906 $ 6,518 $ 29,018 $ 396,242 $ 21,507 $ 47,417 $ 1,515,608 2016 1,018,129 10,160 27,589 360,678 20,043 43,865 1,480,464 2015 936,513 8,806 30,367 398,533 21,225 30,624 1,426,068 Long-lived assets: 2017 1,027,891 13,882 41,971 382,940 24,887 66,138 1,557,709 2016 1,000,870 13,267 41,393 334,847 23,768 50,677 1,464,822 2015 1,016,703 17,488 41,690 349,533 22,072 50,650 1,498,136 |
GOODWILL AND OTHER INTANGIBLE46
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Attributable to Each Segment | Changes to goodwill during the years ended September 30, 2017 and 2016 , follow. SGK Brand Solutions Memorialization Industrial Technologies Consolidated Goodwill $ 466,647 $ 346,946 $ 52,887 $ 866,480 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2015 460,895 341,946 52,887 855,728 Additions during period — — 3,958 3,958 Translation and other adjustments (8,137 ) 170 (230 ) (8,197 ) Goodwill 458,510 347,116 56,615 862,241 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2016 452,758 342,116 56,615 851,489 Additions during period 21,361 158 11,694 33,213 Translation and other adjustments 12,024 233 835 13,092 Goodwill 491,895 347,507 69,144 908,546 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2017 $ 486,143 $ 342,507 $ 69,144 $ 897,794 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2017 and 2016 , respectively. Carrying Amount Accumulated Amortization Net September 30, 2017 Trade names $ 168,467 $ — * $ 168,467 Trade names 5,522 (2,030 ) 3,492 Customer relationships 333,632 (84,560 ) 249,072 Copyrights/patents/other 14,787 (11,436 ) 3,351 $ 522,408 $ (98,026 ) $ 424,382 September 30, 2016 Trade names $ 168,467 $ — * $ 168,467 Trade names 1,814 (1,802 ) 12 Customer relationships 286,595 (61,706 ) 224,889 Copyrights/patents/other 11,066 (10,593 ) 473 $ 467,942 $ (74,101 ) $ 393,841 *Not subject to amortization |
SUPPLEMENTARY FINANCIAL INFOR47
SUPPLEMENTARY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Components of Selected Quarterly Financial Data | The following table sets forth certain items included in the Company's unaudited consolidated financial statements for each quarter of fiscal 2017 and fiscal 2016 . Quarter Ended December 31 March 31 June 30 September 30 Year Ended September 30 (Dollar amounts in thousands, except per share data) FISCAL YEAR 2017: Sales $ 348,998 $ 380,916 $ 389,630 $ 396,064 $ 1,515,608 Gross profit 127,267 138,422 144,094 153,604 563,387 Operating profit 19,063 26,828 36,786 29,926 112,603 Net income attributable to Matthews shareholders 10,322 (1) 14,920 29,485 19,641 74,368 Earnings per share: Basic $ 0.32 (1) $ 0.46 $ 0.91 $ 0.61 $ 2.31 Diluted 0.32 (1) 0.46 0.91 0.60 2.28 FISCAL YEAR 2016: Sales $ 354,232 $ 367,176 $ 382,061 $ 376,995 $ 1,480,464 Gross profit 126,567 137,760 145,297 146,830 556,454 Operating profit 12,038 26,435 40,670 39,672 118,815 Net income attributable to Matthews shareholders 4,614 14,357 23,915 23,863 66,749 Earnings per share: Basic $ 0.14 $ 0.44 $ 0.73 $ 0.74 $ 2.04 Diluted 0.14 0.43 0.73 0.74 2.03 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($)memorialvase | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Trade Receivables and Allowance for Doubtful Accounts [Abstract] | |||
Period past due for which a finance charge may be applied | 30 days | ||
Revenue Recognition [Abstract] | |||
Number of memorials | memorial | 330,716 | ||
Number of vases | vase | 221,713 | ||
Research and Development Expenses [Abstract] | |||
Research and development costs | $ | $ 16,362 | $ 14,793 | $ 13,033 |
Minimum | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Useful lives of intangibles | 2 years | ||
Maximum | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Useful lives of intangibles | 20 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 10 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 45 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 12 years |
ACCOUNTING PRONOUNCEMENTS - Nar
ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Reduction to income tax expense | $ 1,234 | $ 1,234 | |||||||||
Diluted (in dollars per share) | $ 0.60 | $ 0.91 | $ 0.46 | $ 0.32 | $ 0.74 | $ 0.73 | $ 0.43 | $ 0.14 | $ 2.28 | $ 2.03 | $ 1.91 |
Accounting Standards Update 2016-09 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Diluted (in dollars per share) | $ 0.04 | $ 0.04 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Assets: | ||
Equity and fixed income mutual funds | $ 21,649 | $ 19,790 |
Other investments | 16,018 | 11,575 |
Recurring | ||
Assets: | ||
Derivatives | 3,990 | 193 |
Equity and fixed income mutual funds | 21,649 | 19,790 |
Other investments | 5,810 | 5,127 |
Total assets at fair value | 31,449 | 25,110 |
Liabilities: | ||
Derivatives | 31 | 6,027 |
Total liabilities at fair value | 31 | 6,027 |
Recurring | Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Other investments | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Derivatives | 3,990 | 193 |
Equity and fixed income mutual funds | 21,649 | 19,790 |
Other investments | 5,810 | 5,127 |
Total assets at fair value | 31,449 | 25,110 |
Liabilities: | ||
Derivatives | 31 | 6,027 |
Total liabilities at fair value | 31 | 6,027 |
Recurring | Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Other investments | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Inventories, net [Abstract] | ||
Raw materials | $ 29,396 | $ 29,597 |
Work in process | 61,917 | 54,357 |
Finished goods | 80,132 | 78,518 |
Inventories | $ 171,445 | $ 162,472 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading securities cost (in excess of) or below market value | $ 785 | $ 414 |
Maximum ownership interests in various entities recorded under the cost method | 20.00% |
INVESTMENTS - Non-Current Inves
INVESTMENTS - Non-Current Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 21,649 | $ 19,790 |
Other investments | 16,018 | 11,575 |
Total non-current investments | $ 37,667 | $ 31,365 |
PROPERTY, PLANT AND EQUIPMENT54
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, net | $ 235,533 | $ 219,492 | |
Depreciation expense | 44,668 | 44,659 | $ 43,820 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 104,604 | 102,153 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 412,980 | 378,650 | |
Buildings, Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 517,584 | 480,803 | |
Less accumulated depreciation | (335,346) | (305,613) | |
Total property, plant and equipment, net | 182,238 | 175,190 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 16,845 | 19,705 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 36,450 | $ 24,597 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 911,130 | $ 872,554 |
Less current maturities | (29,528) | (27,747) |
Total long-term debt and capital lease obligations, excluding current maturities | 881,602 | 844,807 |
Senior secured term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 232,479 | 246,449 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Long-term debt | 21,831 | 5,301 |
Short-term borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,735 | 8,617 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt | 5,134 | 4,187 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 551,126 | 608,000 |
Securitization facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 95,825 | $ 0 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) £ in Thousands | 12 Months Ended | ||||||
Sep. 30, 2017USD ($) | Sep. 30, 2017GBP (£) | Sep. 30, 2016USD ($) | Sep. 30, 2017EUR (€) | Nov. 30, 2016EUR (€) | Sep. 30, 2016EUR (€) | Apr. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Unrealized gain (loss) on fair value of interest rate swaps, before tax | $ 3,959,000 | $ 5,834,000 | |||||
Unrealized gain (loss) on fair value of interest rate swaps, after tax | 2,415,000 | 3,559,000 | |||||
Unrealized gain (loss) expected to be recognized over the next 12 months | 666,000 | ||||||
Other debt | 1,032,000 | $ 4,579,000 | |||||
Contested letter of credit | 11,325,000 | ||||||
Other current assets | |||||||
Debt Instrument [Line Items] | |||||||
Contested letter of credit | 11,477,000 | £ 8,570 | |||||
Securitization facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 115,000,000 | ||||||
Outstanding borrowings | $ 95,825,000 | ||||||
Debt instrument term (in years) | 2 years | 2 years | |||||
Interest rate (as a percent) | 1.98% | 1.98% | |||||
Securitization facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate (as a percent) | 0.75% | 0.75% | |||||
Securitization facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (as a percent) | 0.25% | 0.25% | |||||
Securitization facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (as a percent) | 0.35% | 0.35% | |||||
Other Debt | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 5.04% | 3.31% | 5.04% | 3.31% | |||
Senior Notes | Matthews Europe GmbH & Co. KG | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.40% | 1.40% | |||||
Debt issued | $ 17,719,000 | € 15,000,000 | |||||
Portion of debt bearing fixed interest | € | € 5,000,000 | ||||||
Fixed interest rate (as a percent) | 1.40% | ||||||
Revolving credit facilities | Domestic Credit Facility Amendment Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 3.01% | 2.59% | 3.01% | 2.59% | |||
Revolving Credit Facility | Revolving credit facilities | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on borrowings (as a percent) | 1.75% | 1.75% | |||||
Revolving Credit Facility | Revolving credit facilities | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Annual commitment fee range on unused portion | 0.15% | 0.15% | |||||
Revolving Credit Facility | Revolving credit facilities | Minimum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on borrowings, based on leverage ratio | 0.75% | 0.75% | |||||
Revolving Credit Facility | Revolving credit facilities | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Annual commitment fee range on unused portion | 0.25% | 0.25% | |||||
Revolving Credit Facility | Revolving credit facilities | Maximum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on borrowings, based on leverage ratio | 2.00% | 2.00% | |||||
Revolving Credit Facility | Revolving credit facilities | Domestic Credit Facility Amendment Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | $ 900,000,000 | ||||||
Outstanding borrowings | $ 525,000,000 | $ 608,000,000 | |||||
Senior secured term loan | Revolving credit facilities | Domestic Credit Facility Amendment Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | $ 250,000,000 | ||||||
Principal payment due in one year (as a percent) | 5.00% | 5.00% | |||||
Principal payment in year two (as a percent) | 7.50% | 7.50% | |||||
Principal payment years three through five (as a percent) | 10.00% | 10.00% | |||||
Outstanding borrowings | $ 232,479,000 | 246,449,000 | |||||
Standby Letters of Credit | Revolving credit facilities | Domestic Credit Facility Amendment Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 35,000,000 | ||||||
Foreign Line of Credit | Credit Facility With European Bank | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 41,345,000 | € 35,000,000 | |||||
Outstanding borrowings | $ 26,126,000 | 0 | € 22,100,000 | ||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.75% | 1.75% | |||||
Lines of Credit with Italian Banks | Matthews International S.p.A | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | $ 13,384,000 | € 11,300,000 | |||||
Outstanding borrowings | $ 4,735,000 | $ 5,801,000 | € 4,000,000 | € 5,200,000 | |||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.20% | 1.80% | 2.20% | 1.80% | |||
Long-term Debt | $ 3,079,000 | $ 3,538,000 | € 2,600,000 | € 3,200,000 |
LONG-TERM DEBT - Interest Rate
LONG-TERM DEBT - Interest Rate Swaps (Details) - Interest Rate Swaps - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||
Pay fixed swaps - notional amount | $ 414,063,000 | $ 403,125,000 |
Net unrealized gain (loss) | $ 3,959,000 | $ (5,834,000) |
Weighted-average maturity period (years) | 3 years 3 months 24 days | 3 years 10 months 24 days |
Weighted-average received rate (as a percent) | 1.23% | 0.53% |
Weighted-average pay rate (as a percent) | 1.34% | 1.26% |
LONG-TERM DEBT - Derivatives De
LONG-TERM DEBT - Derivatives Designated as Hedging Instruments (Details) - Interest Rate Swaps - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Total derivatives | $ 3,959 | $ (5,834) |
Other current assets | ||
Debt Instrument [Line Items] | ||
Assets derivatives | 1,098 | 43 |
Other assets | ||
Debt Instrument [Line Items] | ||
Assets derivatives | 2,892 | 150 |
Other current liabilities | ||
Debt Instrument [Line Items] | ||
Liability derivatives | (7) | (1,529) |
Other liabilities | ||
Debt Instrument [Line Items] | ||
Liability derivatives | $ (24) | $ (4,498) |
LONG-TERM DEBT - Loss Recognize
LONG-TERM DEBT - Loss Recognized on Derivatives (Details) - Cash Flow Hedging - Interest Rate Swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Expense | |||
Debt Instrument [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 1,752 | $ (3,146) | $ (3,922) |
Amount of Gain (Loss) Reclassified from AOCI into Income(Effective Portion) | 1,069 | (1,919) | (2,392) |
Other Comprehensive Income (Loss) | |||
Debt Instrument [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 7,043 | $ (3,230) | $ (4,841) |
LONG-TERM DEBT - Aggregate Matu
LONG-TERM DEBT - Aggregate Maturities of Long-Term Debt (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 29,528 |
2,019 | 166,012 |
2,020 | 25,487 |
2,021 | 687,504 |
2,022 | 242 |
Thereafter | 2,357 |
Aggregate maturities long-term debt | $ 911,130 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - Class A common stock - $ / shares | Sep. 30, 2017 | Sep. 30, 2016 |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Matthews Stock Repurchase Program | ||
Class of Stock [Line Items] | ||
Shares authorized for repurchase (in shares) | 5,000,000 | |
Shares remaining for repurchase (in shares) | 1,816,146 |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based compensation, aggregate disclosures [Abstract] | |||
Stock options outstanding | 0 | ||
Future income tax benefit from compensation expense recognized | $ 1,720 | $ 418 | |
Proceeds from the exercise of stock options | $ 14 | 6,406 | 4,015 |
All Plans | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Total stock-based compensation cost | 14,562 | 10,612 | 9,097 |
Future income tax benefit from compensation expense recognized | 5,534 | 4,139 | 3,548 |
Proceeds from the exercise of stock options | 14 | 6,406 | 4,015 |
Tax benefit realized from options exercised | $ 3 | $ 932 | 350 |
Options vested (in shares) | 0 | 0 | |
All Plans | Stock Options | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Stock options outstanding | 0 | 77,733 | |
Intrinsic value of options exercised | $ 9 | $ 2,692 | $ 931 |
All Plans | Restricted Stock | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized compensation cost on unvested awards | $ 7,205 | ||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 1 year 6 months | ||
All Plans | Restricted Stock | Prior to Fiscal Year 2013 | After 3 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 50.00% | ||
All Plans | Restricted Stock | Prior to Fiscal Year 2013 | After 4 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 16.67% | ||
All Plans | Restricted Stock | Prior to Fiscal Year 2013 | After 5 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 16.67% | ||
All Plans | Restricted Stock | Prior to Fiscal Year 2013 | After 6 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 16.66% | ||
All Plans | Restricted Stock | Fiscal 2013 and Thereafter | After 3 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 50.00% | ||
All Plans | Restricted Stock | Minimum | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Expiration period (in years) | 3 years | ||
All Plans | Restricted Stock | Maximum | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Expiration period (in years) | 5 years | ||
2012 Equity Incentive Plan | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Term of plan (in years) | 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) | 589,238 | ||
Retirement Eligible Employees | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Total stock-based compensation cost | $ 3,337 | ||
Pre-defined Levels of Adjusted Earnings Per Share | Restricted Stock | Fiscal 2013 and Thereafter | After 4 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 8.33% | ||
Pre-defined Levels of Adjusted Earnings Per Share | Restricted Stock | Fiscal 2013 and Thereafter | After 5 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 8.33% | ||
Pre-defined Levels of Adjusted Earnings Per Share | Restricted Stock | Fiscal 2013 and Thereafter | After 6 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 8.33% | ||
Pre-defined Levels of Appreciation in the Market Value of Common Stock | Restricted Stock | Fiscal 2013 and Thereafter | After 4 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 8.33% | ||
Pre-defined Levels of Appreciation in the Market Value of Common Stock | Restricted Stock | Fiscal 2013 and Thereafter | After 5 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 8.33% | ||
Pre-defined Levels of Appreciation in the Market Value of Common Stock | Restricted Stock | Fiscal 2013 and Thereafter | After 6 Years | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Vesting percentage | 8.33% | ||
Director Fee Plans | |||
Director Fee Plan, aggregate disclosures [Abstract] | |||
Shares deferred under the director fee plan (in shares) | 16,139 | ||
Value of annual stock-based grant | $ 125 | ||
Option awards outstanding and vested (in shares) | 0 | ||
Total restricted stock awards granted to date (in shares) | 161,724 | ||
Restricted stock awards unvested (in shares) | 25,157 | ||
Director Fee Plans | Stock Options | |||
Director Fee Plan, aggregate disclosures [Abstract] | |||
Total stock options granted to date (in shares) | 22,300 | ||
2014 Director Fee Plan | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Shares reserved for future issuance under award plan (in shares) | 150,000 | ||
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 | ||
Total restricted stock awards granted to date (in shares) | 58,574 |
SHARE-BASED PAYMENTS - Restrict
SHARE-BASED PAYMENTS - Restricted Stock Activity (Details) - All Plans - Restricted Stock | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 522,710 |
Granted (in shares) | shares | 216,655 |
Vested (in shares) | shares | (231,231) |
Expired or forfeited (in shares) | shares | (6,950) |
Non-vested at end of period (in shares) | shares | 501,184 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 45.10 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 66.61 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 46.57 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 50.29 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 53.65 |
SHARE-BASED PAYMENTS - Stock Op
SHARE-BASED PAYMENTS - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, end of period (in shares) | 0 |
All Plans | Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, beginning of period (in shares) | 77,733 |
Exercised (in shares) | (333) |
Expired or forfeited (in shares) | (77,400) |
Outstanding, end of period (in shares) | 0 |
Exercisable (in shares) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, weighted-average exercise price, beginning of period (in dollars per share) | $ / shares | $ 40.56 |
Exercised, weighted-average exercise price (in dollars per share) | $ / shares | 40.56 |
Expired or forfeited, weighted-average exercise price (in dollars per share) | $ / shares | 40.56 |
Outstanding, weighted-average exercise price, end of period (in dollars per share) | $ / shares | 0 |
Exercisable, weighted-average exercise price (in dollars per share) | $ / shares | $ 0 |
Outstanding, aggregate intrinsic value | $ | $ 0 |
Exercisable, aggregate intrinsic value | $ | $ 0 |
SHARE-BASED PAYMENTS - Non-vest
SHARE-BASED PAYMENTS - Non-vested Options Activity (Details) - All Plans - Stock Options | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested at beginning of period (in shares) | shares | 77,400 |
Expired or forfeited (in shares) | shares | (77,400) |
Non-vested at end of period (in shares) | shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 12.29 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 12.29 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 0 |
SHARE-BASED PAYMENTS - Assumpti
SHARE-BASED PAYMENTS - Assumptions Used in Estimating Fair Value (Details) - All Plans - Restricted Stock | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 20.20% | 20.70% | 22.20% |
Dividend yield | 1.10% | 1.00% | 1.00% |
Average risk-free interest rate | 1.70% | 1.70% | 1.70% |
Average expected term (years) | 2 years 1 month 6 days | 2 years 1 month 6 days | 1 year 9 months 18 days |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Matthews shareholders | $ 19,641 | $ 29,485 | $ 14,920 | $ 10,322 | $ 23,863 | $ 23,915 | $ 14,357 | $ 4,614 | $ 74,368 | $ 66,749 | $ 63,449 |
Less: dividends and undistributed earnings allocated to participating securities | 0 | 0 | 10 | ||||||||
Net income available to Matthews shareholders | $ 74,368 | $ 66,749 | $ 63,439 | ||||||||
Weighted-average shares outstanding (in thousands): | |||||||||||
Basic shares (in shares) | 32,240 | 32,642 | 32,939 | ||||||||
Effect of dilutive securities (in shares) | 330 | 262 | 257 | ||||||||
Diluted shares (in shares) | 32,570 | 32,904 | 33,196 |
PENSION AND OTHER POSTRETIREM68
PENSION AND OTHER POSTRETIREMENT PLANS - Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Change in plan assets: | |||
Fair value, beginning of year | $ 151,864 | ||
Fair value, end of year | 155,634 | $ 151,864 | |
Pension | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 263,566 | 238,727 | |
Service cost | 8,553 | 7,446 | $ 6,764 |
Interest cost | 7,362 | 9,725 | 8,740 |
Actuarial (gain) loss | (4,264) | 26,841 | |
Exchange loss (gain) | 589 | (6) | |
Benefit payments | (16,134) | (19,167) | |
Benefit obligation, end of year | 259,672 | 263,566 | 238,727 |
Change in plan assets: | |||
Fair value, beginning of year | 151,864 | 142,225 | |
Actual return | 12,586 | 11,244 | |
Benefit payments | (16,134) | (19,167) | |
Employer contributions | 7,318 | 17,562 | |
Fair value, end of year | 155,634 | 151,864 | 142,225 |
Funded status | (104,039) | (111,701) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (766) | (760) | |
Noncurrent benefit liability | (103,273) | (110,941) | |
Accumulated other comprehensive loss (income) | 72,926 | 91,262 | |
Net amount recognized | (31,113) | (20,439) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Net actuarial loss (income) | 73,616 | 92,310 | |
Prior service cost | (690) | (1,048) | |
Distributions to terminated employees | 5,655 | 9,300 | |
Other Postretirement | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 23,290 | 20,424 | |
Service cost | 392 | 402 | 454 |
Interest cost | 626 | 845 | 885 |
Actuarial (gain) loss | (2,600) | 2,931 | |
Exchange loss (gain) | 0 | 0 | |
Benefit payments | (1,392) | (1,312) | |
Benefit obligation, end of year | 20,316 | 23,290 | 20,424 |
Change in plan assets: | |||
Fair value, beginning of year | 0 | 0 | |
Actual return | 0 | 0 | |
Benefit payments | (1,392) | (1,312) | |
Employer contributions | 1,392 | 1,312 | |
Fair value, end of year | 0 | 0 | $ 0 |
Funded status | (20,317) | (23,291) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (1,044) | (1,148) | |
Noncurrent benefit liability | (19,273) | (22,143) | |
Accumulated other comprehensive loss (income) | (2,189) | 214 | |
Net amount recognized | (22,506) | (23,077) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Net actuarial loss (income) | (1,469) | 1,130 | |
Prior service cost | $ (720) | $ (916) |
PENSION AND OTHER POSTRETIREM69
PENSION AND OTHER POSTRETIREMENT PLANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement payment | $ 0 | $ 0 | $ 18,157,000 |
Contribution plan expense | 8,620,000 | 8,117,000 | $ 6,819,000 |
Change in Assumptions for Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reduction in service and interest cost | 1,960,000 | ||
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 238,307,000 | 240,329,000 | |
Projected benefit obligation | 259,672,000 | $ 263,566,000 | |
Required employer contributions | 5,109,000 | ||
Required plan contribution | $ 0 | ||
Target allocation of plan assets (as a percent) | 100.00% | ||
Return on plan assets | 6.75% | 7.25% | 7.75% |
Pension | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation of plan assets (as a percent) | 50.00% | ||
Pension | Fixed income, cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation of plan assets (as a percent) | 30.00% | ||
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Return on plan assets | 0.00% | 0.00% | 0.00% |
Per capita cost of health care benefits assumed for next fiscal year (as a percent) | 7.30% | ||
Ultimate health care cost trend rate (as a percent) | 4.00% | ||
Effect of one percentage point increase on accumulated postretirement benefit obligation | $ 718,000 | ||
Effect of one percentage point increase on service and interest cost components | 47,000 | ||
Effect of one percentage point decrease on accumulated postretirement benefit obligation | 822,000 | ||
Effect of one percentage point decrease on service and interest cost components | $ 54,000 | ||
Multiemployer Plan, Pension | Schawk Inc | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement payment | $ 18,157,000 | ||
Gain recognized on settlement | $ 11,522,000 |
PENSION AND OTHER POSTRETIREM70
PENSION AND OTHER POSTRETIREMENT PLANS - Net Periodic Pension and Other Postretirement Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8,553 | $ 7,446 | $ 6,764 |
Interest cost | 7,362 | 9,725 | 8,740 |
Expected return on plan assets | (9,249) | (9,625) | (10,151) |
Prior service cost | (181) | (183) | (180) |
Net actuarial loss (gain) | 10,034 | 7,468 | 6,203 |
Net benefit cost | 16,519 | 14,831 | 11,376 |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 392 | 402 | 454 |
Interest cost | 626 | 845 | 885 |
Expected return on plan assets | 0 | 0 | 0 |
Prior service cost | (195) | (195) | (195) |
Net actuarial loss (gain) | 0 | 0 | 0 |
Net benefit cost | $ 823 | $ 1,052 | $ 1,144 |
PENSION AND OTHER POSTRETIREM71
PENSION AND OTHER POSTRETIREMENT PLANS - Contributions During Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Principal retirement plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | $ 6,180 |
Other Postretirement | 0 |
Supplemental retirement plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 725 |
Other Postretirement | 0 |
Other retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 413 |
Other Postretirement | 0 |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 0 |
Other Postretirement | $ 1,392 |
PENSION AND OTHER POSTRETIREM72
PENSION AND OTHER POSTRETIREMENT PLANS - Amounts of AOCI Expected to be Recognized in Net Periodic Benefit Costs (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 7,010 |
Prior service cost | (138) |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 0 |
Prior service cost | $ (195) |
PENSION AND OTHER POSTRETIREM73
PENSION AND OTHER POSTRETIREMENT PLANS - Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.76% | 3.51% | 4.25% |
Return on plan assets | 6.75% | 7.25% | 7.75% |
Compensation increase | 3.50% | 3.50% | 3.50% |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.72% | 3.42% | 4.25% |
Return on plan assets | 0.00% | 0.00% | 0.00% |
Compensation increase | 0.00% | 0.00% | 0.00% |
PENSION AND OTHER POSTRETIREM74
PENSION AND OTHER POSTRETIREMENT PLANS - Weighted Average Asset Allocation and Target Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 155,634 | $ 151,864 | |
Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 155,634 | 151,864 | $ 142,225 |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 100.00% | ||
Equity securities | Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 77,245 | 58,849 | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 50.00% | ||
Fixed income, cash and cash equivalents | Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 49,008 | 72,495 | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 30.00% | ||
Other investments | Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 29,381 | $ 20,520 | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 20.00% |
PENSION AND OTHER POSTRETIREM75
PENSION AND OTHER POSTRETIREMENT PLANS - Fair Value Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 155,634 | $ 151,864 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 131,284 | 127,306 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,870 | 11,742 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9,480 | 12,816 |
Equity securities - stocks | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 42,731 | 35,912 |
Equity securities - stocks | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 42,731 | 35,912 |
Equity securities - stocks | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities - stocks | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities - mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 34,514 | 22,937 |
Equity securities - mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 34,514 | 22,937 |
Equity securities - mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities - mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 44,902 | 52,831 |
Fixed income securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 30,032 | 41,099 |
Fixed income securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,870 | 11,732 |
Fixed income securities | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,106 | 19,664 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,106 | 19,664 |
Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29,381 | 20,520 |
Other investments | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 19,901 | 7,694 |
Other investments | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 10 |
Other investments | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 9,480 | $ 12,816 |
PENSION AND OTHER POSTRETIREM76
PENSION AND OTHER POSTRETIREMENT PLANS - Changes in Fair Value of Level 3 Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | $ 151,864 | |
Fair value, end of year | 155,634 | $ 151,864 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 12,816 | |
Fair value, end of year | 9,480 | 12,816 |
Other investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 20,520 | |
Fair value, end of year | 29,381 | 20,520 |
Other investments | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 12,816 | |
Fair value, end of year | 9,480 | 12,816 |
Pension | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 151,864 | 142,225 |
Fair value, end of year | 155,634 | 151,864 |
Pension | Other investments | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 12,816 | 13,982 |
Acquisitions | 0 | 0 |
Dispositions | (3,286) | (941) |
Realized Gains | 418 | 449 |
Unrealized Gains (Losses) | (468) | (674) |
Fair value, end of year | $ 9,480 | $ 12,816 |
PENSION AND OTHER POSTRETIREM77
PENSION AND OTHER POSTRETIREMENT PLANS - Benefit Payments Expected to be Paid (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 10,137 |
2,019 | 10,586 |
2,020 | 10,983 |
2,021 | 11,447 |
2,022 | 12,811 |
2023-2027 | 72,463 |
Total | 128,427 |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 1,044 |
2,019 | 1,072 |
2,020 | 1,013 |
2,021 | 1,044 |
2,022 | 1,094 |
2023-2027 | 6,004 |
Total | $ 11,271 |
ACCUMULATED OTHER COMPREHENSI78
ACCUMULATED OTHER COMPREHENSIVE INCOME - Change in AOCI by Component, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 709,334 | $ 734,046 | $ 775,206 |
Net current-period OCI | 27,872 | (31,631) | (83,659) |
Ending Balance | 790,259 | 709,334 | 734,046 |
Postretirement Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (56,050) | (43,474) | (39,651) |
OCI before reclassification | 6,536 | (16,901) | (7,378) |
Amounts reclassified from AOCI | 5,891 | 4,325 | 3,555 |
Net current-period OCI | 12,427 | (12,576) | (3,823) |
Ending Balance | (43,623) | (56,050) | (43,474) |
Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (122,259) | (104,604) | (27,367) |
OCI before reclassification | 9,352 | (17,655) | (77,237) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current-period OCI | 9,352 | (17,655) | (77,237) |
Ending Balance | (112,907) | (122,259) | (104,604) |
Derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (3,559) | (2,248) | 201 |
OCI before reclassification | 7,043 | (3,230) | (4,841) |
Amounts reclassified from AOCI | (1,069) | 1,919 | 2,392 |
Net current-period OCI | 5,974 | (1,311) | (2,449) |
Ending Balance | 2,415 | (3,559) | (2,248) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (181,868) | (150,326) | (66,817) |
OCI before reclassification | 22,931 | (37,786) | (89,456) |
Amounts reclassified from AOCI | 4,822 | 6,244 | 5,947 |
Net current-period OCI | 27,753 | (31,542) | (83,509) |
Ending Balance | (154,115) | (181,868) | (150,326) |
Postretirement Benefit Plans attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Currency Translation Adjustment attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 277 | 366 | 516 |
OCI before reclassification | 119 | (89) | (150) |
Net current-period OCI | 119 | (89) | (150) |
Ending Balance | 396 | 277 | 366 |
Derivatives attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 277 | 366 | 516 |
OCI before reclassification | 119 | (89) | (150) |
Net current-period OCI | 119 | (89) | (150) |
Ending Balance | $ 396 | $ 277 | $ 366 |
ACCUMULATED OTHER COMPREHENSI79
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ 789,707 | $ 708,665 |
Fair value of derivatives, tax | 1,544 | 2,275 |
Pension liability, tax | 27,114 | 35,426 |
Cumulative foreign currency translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (112,907) | (122,259) |
Fair value of derivatives, net of tax of $1,544 and $2,275, respectively | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | 2,415 | (3,559) |
Minimum pension liabilities, net of tax of $27,114 and $35,426, respectively | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (43,623) | (56,050) |
Accumulated Other Comprehensive (Loss) Income (net of tax) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ (154,115) | $ (181,868) |
ACCUMULATED OTHER COMPREHENSI80
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivatives | |||
Interest expense | $ (26,371) | $ (24,344) | $ (20,610) |
Income before income tax | 96,287 | 95,234 | 89,652 |
Income taxes | (22,354) | (29,073) | (26,364) |
Net income | 73,933 | 66,161 | 63,288 |
Prior service (cost) credit | |||
Postretirement benefit plans | |||
Income before income tax | 376 | 378 | 375 |
Actuarial losses | |||
Postretirement benefit plans | |||
Income before income tax | (10,034) | (7,468) | (6,203) |
Postretirement Benefit Plans | |||
Postretirement benefit plans | |||
Income before income tax | (9,658) | (7,090) | (5,828) |
Income taxes | (3,767) | (2,765) | (2,273) |
Net income | (5,891) | (4,325) | (3,555) |
Derivatives | |||
Postretirement benefit plans | |||
Net income | 1,069 | (1,919) | (2,392) |
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivatives | |||
Interest expense | 1,752 | (3,146) | (3,922) |
Income before income tax | 1,752 | (3,146) | (3,922) |
Income taxes | (683) | 1,227 | 1,530 |
Net income | $ 1,069 | $ (1,919) | $ (2,392) |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current: | |||
Federal | $ 1,542 | $ 18,733 | $ 655 |
State | 628 | 1,829 | 1,466 |
Foreign | 10,459 | 12,482 | 10,599 |
Total provision for income taxes, current | 12,629 | 33,044 | 12,720 |
Deferred: | |||
Federal | 11,887 | (3,066) | 13,279 |
State | 905 | (2,412) | 645 |
Foreign | (3,067) | 1,507 | (280) |
Deferred | 9,725 | (3,971) | 13,644 |
Total | $ 22,354 | $ 29,073 | $ 26,364 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||
Reduction to income tax expense | $ 1,234 | $ 1,234 | |||
Share based compensation tax benefits | $ 1,720 | $ 418 | |||
Effective tax rate (as a percent) | 23.20% | 30.50% | 29.40% | ||
Federal statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% | ||
Foreign subsidiaries income before income taxes | $ 24,118 | $ 48,864 | $ 40,024 | ||
Undistributed earnings of foreign subsidiaries | 596,281 | ||||
Valuation allowances | (20,866) | (22,412) | |||
Unrecognized tax benefits | 7,968 | 13,820 | $ 4,086 | $ 4,311 | |
Change in unrecognized tax benefits | 3,587 | ||||
Total penalties and interest accrued | 1,779 | $ 2,088 | |||
Capital Loss Carryforward | |||||
Operating Loss Carryforwards [Line Items] | |||||
Amount of tax credit carryforward | 20,930 | ||||
Foreign Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Amount of operating loss carryforwards | 84,175 | ||||
Amount of tax credit carryforward | 3,080 | ||||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Amount of operating loss carryforwards | $ 2,232 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Federal Statutory Tax Rate to Consolidated Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Effect of state income taxes, net of federal deduction (as a percent) | 1.40% | (0.60%) | 1.80% |
Foreign taxes less than federal statutory rate (as a percent) | (7.20%) | (3.50%) | (3.20%) |
Share-based compensation (as a percent) | (1.20%) | 0.00% | 0.00% |
Other (as a percent) | (4.80%) | (0.40%) | (4.20%) |
Effective tax rate (as a percent) | 23.20% | 30.50% | 29.40% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 45,654 | $ 46,282 |
Accruals and reserves not currently deductible | 20,579 | 26,214 |
Income tax credit carryforward | 3,313 | 10,080 |
Operating and capital loss carryforwards | 23,610 | 25,258 |
Stock options | 8,614 | 6,544 |
Other | 2,782 | 5,246 |
Total deferred tax assets | 104,552 | 119,624 |
Valuation allowances | (20,866) | (22,412) |
Net deferred tax assets | 83,686 | 97,212 |
Deferred tax liabilities: | ||
Depreciation | (4,763) | (5,207) |
Unrealized gains and losses | (10,446) | (5,640) |
Goodwill and intangible assets | (203,957) | (190,541) |
Other | (1,494) | (2,087) |
Deferred tax liabilities | (220,660) | (203,475) |
Net deferred tax liability | $ (136,974) | $ (106,263) |
INCOME TAXES - Changes in Gross
INCOME TAXES - Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 13,820 | $ 4,086 | $ 4,311 |
Increase from acquisition | 0 | 0 | 0 |
Increases for tax positions of prior years | 839 | 5,762 | 475 |
Decreases for tax positions of prior years | (5,890) | (166) | (155) |
Increases based on tax positions related to the current year | 378 | 5,456 | 635 |
Decreases due to settlements with taxing authorities | 0 | 0 | (27) |
Decreases due to lapse of statute of limitation | (1,179) | (1,318) | (1,153) |
Balance, end of year | $ 7,968 | $ 13,820 | $ 4,086 |
COMMITMENTS AND CONTINGENT LI86
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Annual rental expense under operating leases | $ 36,400 | $ 32,716 | $ 31,766 |
Future minimum rental commitments under operating leases [Abstract] | |||
Fiscal year 2018 | 21,939 | ||
Fiscal year 2019 | 15,562 | ||
Fiscal year 2020 | 11,992 | ||
Fiscal year 2021 | 8,559 | ||
Fiscal year 2022 | 5,276 | ||
Employment Agreements | |||
Long-term Purchase Commitment [Line Items] | |||
Aggregate commitment amount for salaries | $ 5,652 |
ENVIRONMENTAL MATTERS (Details)
ENVIRONMENTAL MATTERS (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Environmental Remediation Obligations [Abstract] | |
Environmental remediation accrual | $ 2,928 |
Environmental remediation accrual classified in other current liabilities | $ 750 |
SUPPLEMENTAL CASH FLOW INFORM88
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current assets: | |||
Accounts receivable | $ (7,045) | $ (10,632) | $ 7,566 |
Inventories | (2,289) | 10,453 | 17,001 |
Other current assets | 4,447 | 12,434 | (14,567) |
Total change in current assets | (4,887) | 12,255 | 10,000 |
Current liabilities: | |||
Trade accounts payable | 5,672 | (11,083) | (9,103) |
Accrued compensation | (2,469) | 147 | (183) |
Accrued income taxes | 5,054 | 4,079 | 3,389 |
Other current liabilities | 2,414 | 8,317 | (6,854) |
Total change in current liabilities | 10,671 | 1,460 | (12,751) |
Net change | $ 5,784 | $ 13,715 | $ (2,751) |
SEGMENT INFORMATION - Informati
SEGMENT INFORMATION - Information about the Company's Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Segment Reporting [Abstract] | ||||||||||||
Number of reporting segments | segment | 3 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 396,064 | $ 389,630 | $ 380,916 | $ 348,998 | $ 376,995 | $ 382,061 | $ 367,176 | $ 354,232 | $ 1,515,608 | $ 1,480,464 | $ 1,426,068 | |
Depreciation and amortization | 67,981 | 65,480 | 62,620 | |||||||||
Operating profit | 29,926 | $ 36,786 | $ 26,828 | $ 19,063 | 39,672 | $ 40,670 | $ 26,435 | $ 12,038 | 112,603 | 118,815 | 105,023 | |
Total assets | 2,244,649 | 2,091,041 | 2,244,649 | 2,091,041 | $ 2,143,611 | |||||||
Capital expenditures | 44,935 | 41,682 | 48,251 | |||||||||
SGK Brand Solutions | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 770,181 | 755,975 | 798,339 | |||||||||
Memorialization | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 615,882 | 610,142 | 508,058 | |||||||||
Industrial Technologies | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 129,545 | 114,347 | 119,671 | |||||||||
Operating Segments | SGK Brand Solutions | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 41,941 | 41,238 | 46,594 | |||||||||
Operating profit | 24,919 | 42,909 | 21,864 | |||||||||
Total assets | 1,276,295 | 1,177,816 | 1,276,295 | 1,177,816 | 1,157,771 | |||||||
Capital expenditures | 22,941 | 22,043 | 23,676 | |||||||||
Operating Segments | Memorialization | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 19,808 | 19,223 | 12,410 | |||||||||
Operating profit | 80,652 | 68,252 | 70,064 | |||||||||
Total assets | 741,148 | 735,985 | 741,148 | 735,985 | 762,028 | |||||||
Capital expenditures | 8,078 | 11,870 | 10,922 | |||||||||
Operating Segments | Industrial Technologies | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 2,863 | 2,503 | 2,294 | |||||||||
Operating profit | 7,032 | 7,654 | 13,095 | |||||||||
Total assets | 161,472 | 122,179 | 161,472 | 122,179 | 115,664 | |||||||
Capital expenditures | 4,622 | 3,461 | 5,866 | |||||||||
Intersegment Sales | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 358 | 488 | 580 | |||||||||
Intersegment Sales | SGK Brand Solutions | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 356 | 346 | 478 | |||||||||
Intersegment Sales | Memorialization | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 0 | 43 | 77 | |||||||||
Intersegment Sales | Industrial Technologies | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 2 | 99 | 25 | |||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 3,369 | 2,516 | 1,322 | |||||||||
Total assets | $ 65,734 | $ 55,061 | 65,734 | 55,061 | $ 108,148 | |||||||
Capital expenditures | $ 9,294 | $ 4,308 | $ 7,787 |
SEGMENT INFORMATION - Informa90
SEGMENT INFORMATION - Information about the Company's Operations by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 396,064 | $ 389,630 | $ 380,916 | $ 348,998 | $ 376,995 | $ 382,061 | $ 367,176 | $ 354,232 | $ 1,515,608 | $ 1,480,464 | $ 1,426,068 | |
Long-lived assets | 1,557,709 | 1,464,822 | 1,557,709 | 1,464,822 | $ 1,498,136 | |||||||
United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | 1,014,906 | 1,018,129 | 936,513 | |||||||||
Long-lived assets | 1,027,891 | 1,000,870 | 1,027,891 | 1,000,870 | 1,016,703 | |||||||
Central and South America | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | 6,518 | 10,160 | 8,806 | |||||||||
Long-lived assets | 13,882 | 13,267 | 13,882 | 13,267 | 17,488 | |||||||
Canada | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | 29,018 | 27,589 | 30,367 | |||||||||
Long-lived assets | 41,971 | 41,393 | 41,971 | 41,393 | 41,690 | |||||||
Europe | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | 396,242 | 360,678 | 398,533 | |||||||||
Long-lived assets | 382,940 | 334,847 | 382,940 | 334,847 | 349,533 | |||||||
Australia | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | 21,507 | 20,043 | 21,225 | |||||||||
Long-lived assets | 24,887 | 23,768 | 24,887 | 23,768 | 22,072 | |||||||
Asia | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | 47,417 | 43,865 | $ 30,624 | |||||||||
Long-lived assets | $ 66,138 | $ 50,677 | $ 66,138 | $ 50,677 | $ 50,650 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ in Thousands, € in Millions | Mar. 01, 2017USD ($) | Mar. 01, 2017EUR (€) | Feb. 28, 2017USD ($) | Jan. 13, 2017USD ($) | Jan. 13, 2017EUR (€) | Jan. 03, 2017USD ($) | Jan. 03, 2017EUR (€) | Nov. 30, 2016USD ($) | Nov. 30, 2016EUR (€) | Feb. 01, 2016USD ($) | Aug. 19, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | $ 897,794 | $ 851,489 | $ 855,728 | |||||||||||
GJ Creative Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of acquisition | $ 37,596 | € 30.5 | ||||||||||||
RAF Technology, Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of acquisition | $ 8,717 | |||||||||||||
VCG (Holdings) Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of acquisition | $ 10,695 | € 8.8 | ||||||||||||
Ungricht | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of acquisition | $ 25,185 | € 24 | ||||||||||||
Guidance Automation Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of acquisition | $ 9,974 | € 8 | ||||||||||||
Digital Design, Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of acquisition | $ 8,773 | |||||||||||||
Aurora | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price of acquisition | $ 210,026 | |||||||||||||
Goodwill | 73,927 | |||||||||||||
Intangible assets acquired | 76,340 | |||||||||||||
Intangible assets not subject to amortization | 30,540 | |||||||||||||
Property plant and equipment acquired | 26,268 | |||||||||||||
Other net assets acquired | 33,491 | |||||||||||||
Goodwill expected to be deductible for tax purposes | $ 44,000 |
GOODWILL AND OTHER INTANGIBLE92
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 862,241 | $ 866,480 | |
Accumulated impairment losses | (10,752) | (10,752) | $ (10,752) |
Goodwill | 851,489 | 855,728 | |
Additions during period | 33,213 | 3,958 | |
Translation and other adjustments | (13,092) | 8,197 | |
Goodwill | 908,546 | 862,241 | |
Goodwill | 897,794 | 851,489 | |
SGK Brand Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill | 458,510 | 466,647 | |
Accumulated impairment losses | (5,752) | (5,752) | (5,752) |
Goodwill | 452,758 | 460,895 | |
Additions during period | 21,361 | 0 | |
Translation and other adjustments | (12,024) | 8,137 | |
Goodwill | 491,895 | 458,510 | |
Goodwill | 486,143 | 452,758 | |
Memorialization | |||
Goodwill [Roll Forward] | |||
Goodwill | 347,116 | 346,946 | |
Accumulated impairment losses | (5,000) | (5,000) | (5,000) |
Goodwill | 342,116 | 341,946 | |
Additions during period | 158 | 0 | |
Translation and other adjustments | (233) | (170) | |
Goodwill | 347,507 | 347,116 | |
Goodwill | 342,507 | 342,116 | |
Industrial Technologies | |||
Goodwill [Roll Forward] | |||
Goodwill | 56,615 | 52,887 | |
Accumulated impairment losses | 0 | 0 | $ 0 |
Goodwill | 56,615 | 52,887 | |
Additions during period | 11,694 | 3,958 | |
Translation and other adjustments | (835) | 230 | |
Goodwill | 69,144 | 56,615 | |
Goodwill | $ 69,144 | $ 56,615 |
GOODWILL AND OTHER INTANGIBLE93
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 522,408 | $ 467,942 |
Accumulated Amortization | (98,026) | (74,101) |
Net | 424,382 | 393,841 |
Trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 168,467 | 168,467 |
Net | 168,467 | 168,467 |
Trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 5,522 | 1,814 |
Accumulated Amortization | (2,030) | (1,802) |
Net | 3,492 | 12 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 333,632 | 286,595 |
Accumulated Amortization | (84,560) | (61,706) |
Net | 249,072 | 224,889 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 14,787 | 11,066 |
Accumulated Amortization | (11,436) | (10,593) |
Net | $ 3,351 | $ 473 |
GOODWILL AND OTHER INTANGIBLE94
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense on intangible assets | $ 23,313 | $ 20,821 | $ 18,800 |
Future amortization expense [Abstract] | |||
Future amortization expense 2018 | 24,187 | ||
Future amortization expense 2019 | 22,731 | ||
Future amortization expense 2020 | 21,281 | ||
Future amortization expense 2021 | 20,237 | ||
Future amortization expense 2022 | $ 19,161 |
RELATED PARTY TRANSACTION REL95
RELATED PARTY TRANSACTION RELATED PARTY TRANSACTION - Narrative (Details) - $ / shares | May 12, 2016 | May 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Related Party Transaction [Line Items] | |||||
Purchase of common shares | 212,424 | 1,132,452 | 304,859 | ||
Schawk Inc | Director and President | |||||
Related Party Transaction [Line Items] | |||||
Purchase of common shares | 970,000 | ||||
Purchase price (in dollars per share) | $ 50.6921625 | ||||
Average of high/low trading prices (as a percent) | 96.76% |
LEGAL MATTER (Details)
LEGAL MATTER (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Recognized loss recovery | $ 11,325 |
SUPPLEMENTARY FINANCIAL INFOR97
SUPPLEMENTARY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Sales | $ 396,064 | $ 389,630 | $ 380,916 | $ 348,998 | $ 376,995 | $ 382,061 | $ 367,176 | $ 354,232 | $ 1,515,608 | $ 1,480,464 | $ 1,426,068 |
Gross profit | 153,604 | 144,094 | 138,422 | 127,267 | 146,830 | 145,297 | 137,760 | 126,567 | 563,387 | 556,454 | 529,375 |
Operating profit | 29,926 | 36,786 | 26,828 | 19,063 | 39,672 | 40,670 | 26,435 | 12,038 | 112,603 | 118,815 | 105,023 |
Net income attributable to Matthews shareholders | $ 19,641 | $ 29,485 | $ 14,920 | $ 10,322 | $ 23,863 | $ 23,915 | $ 14,357 | $ 4,614 | $ 74,368 | $ 66,749 | $ 63,449 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.61 | $ 0.91 | $ 0.46 | $ 0.32 | $ 0.74 | $ 0.73 | $ 0.44 | $ 0.14 | $ 2.31 | $ 2.04 | $ 1.93 |
Diluted (in dollars per share) | $ 0.60 | $ 0.91 | $ 0.46 | $ 0.32 | $ 0.74 | $ 0.73 | $ 0.43 | $ 0.14 | $ 2.28 | $ 2.03 | $ 1.91 |
Reduction to income tax expense | $ 1,234 | $ 1,234 | |||||||||
Accounting Standards Update 2016-09 | |||||||||||
Earnings per share: | |||||||||||
Diluted (in dollars per share) | $ 0.04 | $ 0.04 |
SCHEDULE II - VALUATION AND Q98
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for Doubtful Accounts | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | $ 11,516 | $ 10,015 | $ 10,937 |
Additions charged to expense | 1,733 | 3,055 | 2,101 |
Additions charged to other Accounts | 642 | 435 | (134) |
Deductions | (2,269) | (1,989) | (2,889) |
Balance at End of Period | 11,622 | 11,516 | 10,015 |
Deferred Tax Asset Valuation Allowance | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | 22,412 | 20,977 | 24,540 |
Additions charged to expense | (1,279) | 2,438 | 399 |
Additions charged to other Accounts | 0 | 0 | (1,705) |
Deductions | (267) | (1,003) | (2,257) |
Balance at End of Period | $ 20,866 | $ 22,412 | $ 20,977 |