Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2018 | Oct. 31, 2018 | Mar. 31, 2018 | |
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 | $ 1.6 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Description | false | ||
Entity Common Stock, Shares Outstanding | 32,073,394 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 41,572 | $ 57,515 |
Accounts receivable, net of allowance for doubtful accounts of $11,158 and $11,622, respectively | 331,463 | 319,566 |
Inventories | 180,451 | 171,445 |
Other current assets | 62,937 | 46,533 |
Total current assets | 616,423 | 595,059 |
Investments | 45,430 | 37,667 |
Property, plant and equipment, net | 252,775 | 235,533 |
Deferred income taxes | 1,837 | 2,456 |
Other assets | 66,216 | 51,758 |
Goodwill | 948,894 | 897,794 |
Other intangible assets, net | 443,910 | 424,382 |
Total assets | 2,375,485 | 2,244,649 |
Current liabilities: | ||
Long-term debt, current maturities | 31,260 | 29,528 |
Trade accounts payable | 70,044 | 66,607 |
Accrued compensation | 51,490 | 62,210 |
Accrued income taxes | 11,413 | 21,386 |
Other current liabilities | 139,936 | 105,401 |
Total current liabilities | 304,143 | 285,132 |
Long-term debt | 929,342 | 881,602 |
Accrued pension | 82,035 | 103,273 |
Postretirement benefits | 17,753 | 19,273 |
Deferred income taxes | 121,519 | 139,430 |
Other liabilities | 51,979 | 25,680 |
Total liabilities | 1,506,771 | 1,454,390 |
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 | 129,252 | 123,432 |
Retained earnings | 1,040,378 | 948,830 |
Accumulated other comprehensive loss | (164,298) | (154,115) |
Treasury stock, 4,259,206 and 4,185,413 shares, respectively, at cost | (173,315) | (164,774) |
Total shareholders' equity-Matthews | 868,351 | 789,707 |
Noncontrolling interests | 363 | 552 |
Total shareholders' equity | 868,714 | 790,259 |
Total liabilities and shareholders' equity | $ 2,375,485 | $ 2,244,649 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 11,158 | $ 11,622 |
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) | 4,259,206 | 4,185,413 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | |||
Sales | $ 1,602,580 | $ 1,515,608 | $ 1,480,464 |
Cost of sales | (1,021,230) | (952,221) | (924,010) |
Gross profit | 581,350 | 563,387 | 556,454 |
Selling expense | (142,477) | (144,174) | (140,924) |
Administrative expense | (274,477) | (283,297) | (275,894) |
Intangible amortization | (31,562) | (23,313) | (20,821) |
Operating profit | 132,834 | 112,603 | 118,815 |
Investment income | 1,570 | 2,468 | 2,061 |
Interest expense | (37,427) | (26,371) | (24,344) |
Other income (deductions), net | 1,016 | 7,587 | (1,298) |
Income before income taxes | 97,993 | 96,287 | 95,234 |
Income tax benefit (provision) | 9,118 | (22,354) | (29,073) |
Net income | 107,111 | 73,933 | 66,161 |
Net loss attributable to noncontrolling interests | 260 | 435 | 588 |
Net income attributable to Matthews shareholders | $ 107,371 | $ 74,368 | $ 66,749 |
Earnings per share attributable to Matthews shareholders: | |||
Basic (in dollars per share) | $ 3.39 | $ 2.31 | $ 2.04 |
Diluted (in dollars per share) | $ 3.37 | $ 2.28 | $ 2.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) | $ 107,111 | $ 73,933 | $ 66,161 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment | (21,982) | 9,471 | (17,744) |
Pension plans and other postretirement benefits | 15,631 | 12,427 | (12,576) |
Unrecognized gain (loss) on derivatives: | |||
Net change from periodic revaluation | 6,095 | 7,043 | (3,230) |
Net amount reclassified to earnings | (1,042) | (1,069) | 1,919 |
Net change in unrecognized gain (loss) on derivatives | 5,053 | 5,974 | (1,311) |
Net current-period OCI | (1,298) | 27,872 | (31,631) |
Comprehensive income (loss) | 105,813 | 101,805 | 34,530 |
Noncontrolling Interest | |||
Net income (loss) | (260) | (435) | (588) |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment | 71 | 119 | (89) |
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 | 71 | 119 | (89) |
Comprehensive income (loss) | (189) | (316) | (677) |
Matthews | |||
Net income (loss) | 107,371 | 74,368 | 66,749 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment | (22,053) | 9,352 | (17,655) |
Pension plans and other postretirement benefits | 15,631 | 12,427 | (12,576) |
Unrecognized gain (loss) on derivatives: | |||
Net change from periodic revaluation | 6,095 | 7,043 | (3,230) |
Net amount reclassified to earnings | (1,042) | (1,069) | 1,919 |
Net change in unrecognized gain (loss) on derivatives | 5,053 | 5,974 | (1,311) |
Net current-period OCI | (1,369) | 27,753 | (31,542) |
Comprehensive income (loss) | $ 106,002 | $ 102,121 | $ 35,207 |
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, 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) | ||||
Pension plans and other postretirement benefits | (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) | ||||
Pension plans and other postretirement benefits | 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 | 0 | 199 | ||||
Ending Balance at Sep. 30, 2017 | 790,259 | 36,334 | 123,432 | 948,830 | (154,115) | (164,774) | 552 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 107,111 | 107,371 | (260) | ||||
Pension plans and other postretirement benefits | 15,631 | 15,631 | |||||
Translation adjustment | (21,982) | (22,053) | 71 | ||||
Fair value of derivatives | 5,053 | 5,053 | 0 | ||||
Comprehensive income (loss) | 105,813 | (189) | |||||
Stock-based compensation | 13,460 | 13,460 | |||||
Purchase of treasury stock | (21,181) | (21,181) | |||||
Issuance of treasury stock | 5,000 | (8,040) | 13,040 | ||||
Cancellations of treasury stock | 400 | (400) | |||||
Dividends | (24,637) | (24,637) | |||||
Reclassification of accumulated other comprehensive (loss) income (AOCI) tax effects | (8,814) | (8,814) | |||||
Ending Balance at Sep. 30, 2018 | $ 868,714 | $ 36,334 | $ 129,252 | $ 1,040,378 | $ (164,298) | $ (173,315) | $ 363 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Purchase of treasury stock, shares (in shares) | 393,864 | 212,424 | 1,132,452 |
Issuance of treasury stock, shares (in shares) | 326,827 | 221,958 | 404,307 |
Cancellation of treasury stock, shares (in shares) | 6,756 | 2,640 | 5,237 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 107,111 | $ 73,933 | $ 66,161 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 76,974 | 67,981 | 65,480 |
Stock-based compensation expense | 13,460 | 14,562 | 10,612 |
Deferred tax (benefit) provision | (23,125) | 9,725 | (3,971) |
Gain on sale of assets | (2,190) | (776) | (73) |
Gain on sale of investments | (3,771) | 0 | 0 |
Unrealized gain on investments | (1,304) | (2,660) | (1,426) |
Changes in working capital items | (9,934) | 5,784 | 13,715 |
Increase in other assets | (9,872) | (17,256) | (5,591) |
Increase (decrease) in other liabilities | 6,510 | (7,150) | 5,397 |
(Decrease) increase in pension and postretirement benefit obligations | (1,104) | 9,689 | (2,465) |
Other operating activities, net | (5,181) | (4,533) | (7,565) |
Net cash provided by operating activities | 147,574 | 149,299 | 140,274 |
Cash flows from investing activities: | |||
Capital expenditures | (43,200) | (44,935) | (41,682) |
Acquisitions, net of cash acquired | (121,065) | (98,235) | (6,937) |
Proceeds from sale of assets | 4,705 | 3,764 | 1,478 |
Proceeds from sale of investments | 9,158 | 0 | 0 |
Purchases of investments | (11,934) | (2,211) | 0 |
Net cash used in investing activities | (162,336) | (141,617) | (47,141) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 704,188 | 417,043 | 90,421 |
Payments on long-term debt | (651,166) | (388,447) | (120,380) |
Purchases of treasury stock | (21,181) | (14,025) | (57,998) |
Proceeds from the exercise of stock options | 0 | 14 | 6,406 |
Dividends | (24,637) | (21,762) | (19,413) |
Transactions with noncontrolling interests | 0 | 0 | (5,566) |
Other financing activities | (6,303) | 0 | (2,318) |
Net cash provided by (used in) financing activities | 901 | (7,177) | (108,848) |
Effect of exchange rate changes on cash | (2,082) | 1,299 | (770) |
Net change in cash and cash equivalents | (15,943) | 1,804 | (16,485) |
Cash and cash equivalents at beginning of year | 57,515 | 55,711 | 72,196 |
Cash and cash equivalents at end of year | 41,572 | 57,515 | 55,711 |
Cash paid during the year for: | |||
Interest | 37,232 | 26,271 | 24,133 |
Income taxes | 11,014 | 8,472 | 11,855 |
Non-cash investing and financing activities: | |||
Acquisition of long-term asset under financing arrangement | $ 14,544 | $ 0 | $ 0 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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 North America, Europe, Asia, Australia, and Central and South America. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2018 | |
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 net realizable value with cost generally determined under the average cost method. Inventory costs include material, labor, and applicable manufacturing overhead (including depreciation) and other direct costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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 15 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 and other market indicators. 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 remeasurement of pension and other postretirement liabilities. 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, 2018 , the Company held 329,341 memorials and 220,901 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 $24,984 , $20,722 and $16,362 for the years ended September 30, 2018 , 2017 and 2016 , 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 have not been provided on certain undistributed earnings of foreign subsidiaries since they have been included as a component of the U.S. Tax Cuts and Jobs Act transition tax, and such earnings are considered to be reinvested indefinitely. 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, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS: Issued In August 2018, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2021. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements including the consideration of costs and benefits. This ASU is effective for the Company beginning in interim periods starting 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 August 2017, the FASB issued ASU No. 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 No. 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 adoption of this ASU is not expected to have a material impact on the Company's 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. 2017-01, 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 October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The Company continues to evaluate the impact this standard will have on the Company’s financial statements but believes there will not be a material change once adopted. 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. 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. During 2017 and 2018, the FASB issued four ASUs that address implementation issues and correct or improve certain aspects of the new lease guidance, including ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , and ASU 2018-11, Leases (Topic 842): Targeted Improvements . These ASUs do not change the core principles in the lease guidance outlined above. ASU No. 2018-11 provides an additional transition method to adopt ASU No. 2016-02. Under the new transition method, an entity initially applies the new leases standard at the adoption date versus at the beginning of the earliest period presented and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU No. 2016-02 and the related ASUs referenced above are effective for the Company beginning in interim periods starting in fiscal year 2020, and allow for early adoption. The Company is in the process of assessing the impact these ASUs 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. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10), that provides guidance related to implementation issues and corrects or improves certain aspects of the financial instruments guidance. The adoption of these ASUs are 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 and 2017, the FASB issued six 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, ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) and ASU 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) . 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 has completed its assessment of all global revenue arrangements and related impact of the new standard compared to historical accounting policies and has concluded the adoption of these ASUs will not have a material impact on its consolidated financial statements. The Company adopted the provisions of these ASUs using the modified retrospective method, with the cumulative effect of initially applying it recognized at the date of initial application. There was no cumulative effect adjustment recognized to retained earnings on October 1, 2018. The Company is continuing to assess the ultimate impact that the adoption of this standard will have on its consolidated financial statement disclosures. Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) , which provides new guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. The amount of reclassification is the difference between the Company's historical U.S. income tax rate and the newly enacted 21% corporate income tax rate. The Company early adopted this ASU in the third quarter ended June 30, 2018. The adoption of this ASU resulted in a decrease to AOCI and corresponding increase to retained earnings of $8,814 . 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. The Company early adopted this ASU in the first quarter ended December 31, 2017. The adoption of this ASU had no impact on the Company's consolidated financial statements, but modifies the methodology to assess and measure goodwill impairment prospectively. 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 adoption of this ASU in the first quarter ended December 31, 2017 had no impact on the Company's consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
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, 2018 and 2017 , the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2018 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 11,309 $ — $ 11,309 Equity and fixed income mutual funds — 22,758 — 22,758 Life insurance policies — 5,894 — 5,894 Total assets at fair value $ — $ 39,961 $ — $ 39,961 Liabilities: Derivatives (1) $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. 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 Life insurance policies — 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. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES: Inventories at September 30, 2018 and 2017 consisted of the following: 2018 2017 Raw materials $ 34,880 $ 29,396 Work in process 67,827 61,917 Finished goods 77,744 80,132 $ 180,451 $ 171,445 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS: Equity and fixed income mutual funds are classified as trading securities and recorded at fair value. The market value of these investments exceeded cost by $838 and $785 at September 30, 2018 and 2017 , respectively. Realized and unrealized gains and losses are recorded in investment income. Realized gains (losses) for fiscal 2018 , 2017 and 2016 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, 2018 and 2017 , non-current investments were as follows: 2018 2017 Equity and fixed income mutual funds $ 22,758 $ 21,649 Life insurance policies 5,894 5,810 Other investments 16,778 10,208 $ 45,430 $ 37,667 During fiscal 2018, the Company purchased an $11,747 ownership interest in a company in the SGK Brand Solutions segment, which was recorded as a cost-method investment. In fiscal 2018, the Company also sold certain of its cost-method investments for net proceeds totaling $9,159 . In connection with these dispositions, the Company recognized $3,771 of pre-tax gains within other income (deductions), net. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 were as follows: 2018 2017 Buildings $ 113,027 $ 104,604 Machinery, equipment and other 452,846 412,980 565,873 517,584 Less accumulated depreciation (357,827 ) (335,346 ) 208,046 182,238 Land 18,017 16,845 Construction in progress 26,712 36,450 $ 252,775 $ 235,533 Depreciation expense, including amortization of assets under capital lease, was $45,412 , $44,668 and $44,659 for each of the three years ended September 30, 2018 , 2017 and 2016 , respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: Long-term debt at September 30, 2018 and 2017 consisted of the following: 2018 2017 Revolving credit facilities $ 322,711 $ 551,126 Securitization facility 102,250 95,825 Senior secured term loan 212,086 232,479 2025 Senior Notes 296,176 — Notes payable to banks 17,895 21,831 Short-term borrowings 4,915 4,735 Capital lease obligations 4,569 5,134 960,602 911,130 Less current maturities (31,260 ) (29,528 ) $ 929,342 $ 881,602 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 amortizing 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% ( 1.50% at September 30, 2018 ) based on the Company's leverage ratio. The secured leverage ratio is defined as net secured 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, 2018 and 2017 were $319,500 and $525,000 , respectively. Outstanding borrowings on the term loan at September 30, 2018 and 2017 was $212,086 and $232,479 , respectively. The weighted-average interest rate on outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps) at September 30, 2018 and 2017 was 3.12% and 3.01% , respectively. In December 2017, the Company issued $300,000 aggregate principal amount of 5.25% senior unsecured notes due December 1, 2025 (the "2025 Senior Notes"). The 2025 Senior Notes bear interest at a rate of 5.25% per annum with interest payable semi-annually in arrears on June 1 and December 1 of each year beginning on June 1, 2018. The Company's obligations under the 2025 Senior Notes are guaranteed by certain of the Company's direct and indirect wholly-owned domestic subsidiaries. The Company is subject to certain covenants and other restrictions in connection with the 2025 Senior Notes. The proceeds from the 2025 Senior Notes were used primarily to reduce indebtedness under the Company's domestic credit facility. The Company incurred direct financing fees and costs in connection with 2025 Senior Notes of $4,127 , which are being deferred and amortized over the term of the 2025 Senior Notes. The Company has a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions. The Securitization Facility was amended in April 2018 to extend the maturity date until April 11, 2020. 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. Outstanding borrowings under the Securitization Facility at September 30, 2018 and 2017 were $102,250 and $95,825 , respectively. The interest rate on borrowings under this facility at September 30, 2018 and 2017 was 3.01% and 1.98% , respectively. The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: September 30, 2018 September 30, 2017 Pay fixed swaps - notional amount $ 343,750 $ 414,063 Net unrealized gain (loss) $ 11,309 $ 3,959 Weighted-average maturity period (years) 2.7 3.3 Weighted-average received rate 2.26 % 1.23 % Weighted-average pay rate 1.37 % 1.34 % 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 $11,309 ( $8,538 after tax) and an unrealized gain, net of unrealized losses, of $3,959 ( $2,415 after tax) at September 30, 2018 and 2017 , 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, 2018 , a gain (net of tax) of approximately $2,920 included in AOCI is expected to be recognized in earnings over the next twelve months. At September 30, 2018 and 2017 , the interest rate swap contracts were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: 2018 2017 Current assets: Other current assets $ 3,867 $ 1,098 Long-term assets: Other assets 7,442 2,892 Current liabilities: Other current liabilities — (7 ) Long-term liabilities: Other liabilities — (24 ) Total derivatives $ 11,309 $ 3,959 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 2018 2017 2016 Interest rate swaps Interest expense $1,380 $1,752 $(3,146) 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*) 2018 2017 2016 (Effective Portion*) 2018 2017 2016 Interest rate swaps $6,095 $7,043 $(3,230) Interest expense $1,042 $1,069 $(1,919) *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. The maximum amount of borrowings available under this facility is €35.0 million ( $40,626 ). The credit facility matures in December 2018 and the Company intends to extend this facility. Outstanding borrowings under this facility were €2.8 million ( $3,211 ) and €22.1 million ( $26,126 ) at September 30, 2018 and 2017 , respectively. The weighted-average interest rate on outstanding borrowings under this facility was 1.75% and 1.75% at September 30, 2018 and 2017 , respectively. The Company’s German subsidiary, Matthews Europe GmbH & Co. KG, has €15.0 million ( $17,411 ) of senior unsecured notes with European banks. The notes are guaranteed by Matthews 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, 2018 and 2017 was 1.40% . Other debt totaled $5,399 and $8,846 at September 30, 2018 and 2017 , respectively. The weighted-average interest rate on these outstanding borrowings was 2.21% and 2.49% at September 30, 2018 and 2017 , respectively. In September 2014, a claim was filed seeking to draw upon a letter of credit issued by the Company of £8,570,000 ( $11,170 at September 30, 2018 ) with respect to a performance guarantee on an environmental solutions 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. The Company has determined that resolution of this matter may take an extended period of time and therefore has classified the funded letter of credit within other assets on the Consolidated Balance Sheets as of September 30, 2018 and 2017 . The Company will continue to assess collectability related to this matter as facts and circumstances further evolve. As of September 30, 2018 and 2017 , 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. The Company was in compliance with all of its debt covenants as of September 30, 2018 . Aggregate maturities of long-term debt, including short-term borrowings and capital leases, is as follows: 2019 $ 34,471 2020 145,176 2021 482,102 2022 325 2023 247 Thereafter 298,281 $ 960,602 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2018 | |
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 set forth in 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 1,422,282 shares remain available for repurchase as of September 30, 2018 . |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS: The Company maintains an equity incentive plan (the "2017 Equity Incentive Plan") that provides for grants of stock options, restricted shares, stock-based performance units and certain other types of stock-based awards. The Company also maintains an equity incentive plan (the "2012 Equity Incentive Plan") that previously provided for grants of stock options, restricted shares, stock-based performance units and certain other types of stock-based awards. Under the 2017 Equity Incentive Plan, which has a ten -year term, the maximum number of shares available for grants or awards is an aggregate of 1,700,000 . There will be no further grants under the 2012 Equity Incentive Plan. At September 30, 2018 , there were 1,700,000 shares reserved for future issuance under the 2017 Equity Incentive Plan. All Plans are administered by the Compensation Committee of the Board of Directors. With respect to outstanding restricted share grants, 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, 2018 , 2017 and 2016 , stock-based compensation cost totaled $13,460 , $14,562 and $10,612 , respectively. The years ended September 30, 2018 and 2017 included $2,850 and $3,337 , respectively, 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 $2,826 , $5,534 and $4,139 for the years ended September 30, 2018 , 2017 and 2016 , respectively. There were no stock options exercised during fiscal 2018. The amount of cash received from the exercise of stock options was $14 and $6,406 , for the years ended September 30, 2017 and 2016 , respectively. In connection with these exercises, the tax benefits realized by the Company were $3 and $932 for the years ended September 30, 2017 and 2016 , respectively. The transactions for restricted stock for the year ended September 30, 2018 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2017 501,184 $ 53.65 Granted 234,100 57.05 Vested (174,295 ) 51.41 Expired or forfeited (6,756 ) 59.72 Non-vested at September 30, 2018 554,233 $ 55.71 As of September 30, 2018 , the total unrecognized compensation cost related to unvested restricted stock was $6,190 which is expected to be recognized over a weighted-average period of 1.5 years. 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, 2018 , 2017 and 2016 . 2018 2017 2016 Expected volatility 20.5 % 20.2 % 20.7 % Dividend yield 1.0 % 1.1 % 1.0 % Average risk-free interest rate 2.0 % 1.7 % 1.7 % Average expected term (years) 2.1 2.1 2.1 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, 2018 , 2017 and 2016 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 2018 , either cash or shares of the Company's Class A Common Stock with a value equal to $85 . The annual retainer fee for fiscal 2018 paid to a non-employee Chairman of the Board is $185 . 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 22,745 shares had been deferred under the Director Fee Plans at September 30, 2018 . 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 2018 . A total of 22,300 stock options have been granted under the Director Fee Plans. At September 30, 2018 , there were no options outstanding. Additionally, 173,229 shares of restricted stock have been granted under the Director Fee Plans, 70,079 of which were issued under the Amended and Restated 2014 Director Fee Plan. 20,940 shares of restricted stock are unvested at September 30, 2018 . 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, 2018 | |
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: 2018 2017 2016 Net income available to Matthews shareholders $ 107,371 $ 74,368 $ 66,749 Weighted-average shares outstanding (in thousands): Basic shares 31,674 32,240 32,642 Effect of dilutive securities 187 330 262 Diluted shares 31,861 32,570 32,904 Anti-dilutive securities excluded from the dilutive calculation were insignificant for the fiscal years ended September 30, 2018 , 2017 , and 2016 . |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 : Pension Other Postretirement 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation, beginning of year $ 259,672 $ 263,566 $ 20,316 $ 23,290 Service cost 8,159 8,553 335 392 Interest cost 8,210 7,362 631 626 Actuarial gain (15,229 ) (4,264 ) (907 ) (2,600 ) Exchange (gain) loss (180 ) 589 — — Benefit payments (19,079 ) (16,134 ) (1,549 ) (1,392 ) Benefit obligation, end of year 241,553 259,672 18,826 20,316 Change in plan assets: Fair value, beginning of year 155,634 151,864 — — Actual return 10,914 12,586 — — Benefit payments (1) (19,079 ) (16,134 ) (1,549 ) (1,392 ) Employer contributions 11,193 7,318 1,549 1,392 Fair value, end of year 158,662 155,634 — — Funded status (82,892 ) (104,039 ) (18,828 ) (20,317 ) Unrecognized actuarial loss (gain) 53,405 73,616 (2,376 ) (1,469 ) Unrecognized prior service cost (552 ) (690 ) (525 ) (720 ) Net amount recognized $ (30,039 ) $ (31,113 ) $ (21,729 ) $ (22,506 ) Amounts recognized in the consolidated balance sheet: Current liability $ (857 ) $ (766 ) $ (1,075 ) $ (1,044 ) Noncurrent benefit liability (82,035 ) (103,273 ) (17,753 ) (19,273 ) Accumulated other comprehensive loss (income) 52,853 72,926 (2,901 ) (2,189 ) Net amount recognized $ (30,039 ) $ (31,113 ) $ (21,729 ) $ (22,506 ) Amounts recognized in accumulated other comprehensive loss (income): Net actuarial loss (income) $ 53,405 $ 73,616 $ (2,376 ) $ (1,469 ) Prior service cost (552 ) (690 ) (525 ) (720 ) Net amount recognized $ 52,853 $ 72,926 $ (2,901 ) $ (2,189 ) (1) Pension benefit payments in fiscal 2018 and 2017 includes $6,800 and $5,655 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, 2018 and 2017 , the accumulated benefit obligation for the Company's defined benefit pension plans was $224,265 and $238,307 at September 30, 2018 and 2017 , respectively, and the projected benefit obligation for the Company's defined benefit pension plans was $241,553 and $259,672 at September 30, 2018 and 2017 , respectively. Net periodic pension and other postretirement benefit cost for the plans included the following: Pension Other Postretirement 2018 2017 2016 2018 2017 2016 Service cost $ 8,159 $ 8,553 $ 7,446 $ 335 $ 392 $ 402 Interest cost 8,210 7,362 9,725 631 626 845 Expected return on plan assets (10,136 ) (9,249 ) (9,625 ) — — — Amortization: Prior service cost (138 ) (181 ) (183 ) (195 ) (195 ) (195 ) Net actuarial loss 7,018 10,034 7,468 — — — Net benefit cost $ 13,113 $ 16,519 $ 14,831 $ 771 $ 823 $ 1,052 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 not required to make any significant contributions to its principal retirement plan in fiscal 2018 . The Company is no t required to make any significant cash contributions to its principal retirement plan in fiscal 2019 . Contributions made in fiscal 2018 are as follows: Contributions Pension Other Postretirement Principal retirement plan $ 10,000 $ — Supplemental retirement plan 749 — Other retirement plans 444 — Other postretirement plan — 1,549 Amounts of AOCI expected to be recognized in net periodic benefit costs in fiscal 2019 include: Pension Benefits Other Postretirement Benefits Net actuarial loss $ 4,246 $ (59 ) Prior service cost (186 ) (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 2018 , 2017 and 2016 . The weighted-average assumptions for those plans were: Pension Other Postretirement 2018 2017 2016 2018 2017 2016 Discount rate 4.21 % 3.76 % 3.51 % 4.19 % 3.72 % 3.42 % Return on plan assets 6.75 % 6.75 % 7.25 % — — — 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 2018 , 2017 and 2016 , 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. The Company's defined benefit pension plans' weighted-average asset allocation at September 30, 2018 and 2017 and weighted-average target allocation were as follows: Plan Assets at Target Asset Category 2018 2017 Allocation* Equity securities $ 92,745 $ 77,245 50 % Fixed income, cash and cash equivalents 44,250 49,008 30 % Other investments 21,667 29,381 20 % $ 158,662 $ 155,634 100 % * 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 2018 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, 2018 and 2017 were as follows: September 30, 2018 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks $ 46,628 $ — $ — $ 46,628 Equity securities - mutual funds 46,117 — — 46,117 Fixed income securities 26,789 14,785 — 41,574 Cash and cash equivalents 2,676 — — 2,676 Other investments 11,552 — 10,115 21,667 Total $ 133,762 $ 14,785 $ 10,115 $ 158,662 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 Changes in the fair value of Level 3 assets at September 30, 2018 and 2017 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, 2018 $ 9,480 $ — $ (149 ) $ 261 $ 523 $ 10,115 September 30, 2017 12,816 — (3,286 ) 418 (468 ) 9,480 Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits Other Postretirement Benefits 2019 $ 10,348 $ 1,075 2020 10,602 1,036 2021 11,141 1,062 2022 12,408 1,098 2023 12,772 1,117 2024-2028 72,916 6,062 $ 130,187 $ 11,450 For measurement purposes, a rate of increase of 7.8% in the per capita cost of health care benefits was assumed for 2019 ; 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, 2018 by $705 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $46 . 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, 2018 by $622 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $40 . The Company sponsors defined contribution plans for hourly and salary employees. The expense associated with the contributions made to these plans was $8,685 , $8,620 , and $8,117 for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 , 2017 and 2016 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Derivatives Total Attributable to Matthews: 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 ) OCI before reclassification 10,584 (22,053 ) 6,095 (5,374 ) Amounts reclassified from AOCI (a) 5,047 — (b) (1,042 ) 4,005 Net current-period OCI 15,631 (22,053 ) 5,053 (1,369 ) Reclassification of AOCI tax effects (c) (9,884 ) — (c) 1,070 (8,814 ) Balance, September 30, 2018 $ (37,876 ) $ (134,960 ) $ 8,538 $ (164,298 ) Attributable to noncontrolling interest: 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 $ — $ 277 OCI before reclassification — 71 — 71 Net current-period OCI — 71 — 71 Balance, September 30, 2018 $ — $ 467 $ — $ 348 (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). (c) Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02 (see Note 3). Accumulated other comprehensive loss at September 30, 2018 and 2017 consisted of the following: 2018 2017 Cumulative foreign currency translation $ (134,960 ) $ (112,907 ) Fair value of derivatives, net of tax of $2,771 and $1,544, respectively 8,538 2,415 Minimum pension liabilities, net of tax of $12,076 and $27,114, respectively (37,876 ) (43,623 ) $ (164,298 ) $ (154,115 ) Reclassifications out of AOCI for the years ended September 30, 2018 , 2017 and 2016 were as follows: Details about AOCI Components September 30, 2018 September 30, 2017 September 30, 2016 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 333 $ 376 $ 378 Actuarial losses (a) (7,018 ) (10,034 ) (7,468 ) (b) (6,685 ) (9,658 ) (7,090 ) Income before income tax (1,638 ) (3,767 ) (2,765 ) Income taxes $ (5,047 ) $ (5,891 ) $ (4,325 ) Net income Derivatives Interest rate swap contracts $ 1,380 $ 1,752 $ (3,146 ) Interest expense (b) 1,380 1,752 (3,146 ) Income before income tax 338 683 (1,227 ) Income taxes $ 1,042 $ 1,069 $ (1,919 ) 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, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The income tax (benefit) provision consisted of the following: 2018 2017 2016 Current: Federal $ (2,577 ) $ 1,542 $ 18,733 State 1,051 628 1,829 Foreign 15,533 10,459 12,482 14,007 12,629 33,044 Deferred: Federal (24,094 ) 11,887 (3,066 ) State 1,315 905 (2,412 ) Foreign (346 ) (3,067 ) 1,507 (23,125 ) 9,725 (3,971 ) Total $ (9,118 ) $ 22,354 $ 29,073 The U.S. Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35.0% to 21.0% effective January 1, 2018, which results in a blended U.S. statutory tax rate of 24.5% for the Company in fiscal 2018. The Act also requires a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred, and creates new taxes on certain foreign-sourced earnings. At September 30, 2018 , the Company has not finalized its accounting for the tax effects of the Act; however, as described below, management has made a reasonable estimate of the effects on existing deferred tax balances and has recorded an estimated amount for its one-time transition tax. For the items for which the Company was able to determine a reasonable estimate, a provisional net tax benefit of $29,150 was recognized, which is included entirely as a component of income tax benefit (provision) for the year ended September 30, 2018 . The two main components of this provisional amount are discussed below. The Company continues to await additional guidance on certain aspects of the Act which could have a significant effect upon its income tax expense. Provisional amounts Deferred tax assets and liabilities : The Company re-measured certain deferred tax assets and liabilities based on the rates at which these deferred tax amounts are expected to reverse in the future, which is generally 21.0% or 24.5% . This re-measurement resulted in a tax benefit of $38,010 being recognized during the year ended September 30, 2018 . The Company is still analyzing certain aspects of the Act, estimating the timing of reversals, and refining its calculations, which could potentially affect the measurement of these balances, or potentially generate new deferred tax amounts. Foreign tax effects : The Company recorded a provisional amount for its one-time transition tax for all of its foreign subsidiaries, resulting in an increase in income tax expense of $8,860 for the year ended September 30, 2018 . The one-time transition tax was calculated using an estimate of the Company’s total post-1986 earnings and profits (“E&P”) that were previously deferred from U.S. income taxes. The Company has not yet finalized its determination of the total post-1986 E&P and tax pools for its foreign subsidiaries and has not fully analyzed the state income tax effects. The calculation of the one-time transition tax is also impacted by the amount of foreign E&P held in cash and other specified assets. The tax amount may change when the Company finalizes its calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and upon finalization of the calculation of cash and other specified assets. The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows: 2018 2017 2016 Federal statutory tax rate 24.5 % 35.0 % 35.0 % Effect of state income taxes, net of federal deduction 2.2 % 1.4 % (0.6 )% Foreign taxes greater (less) than federal statutory rate 1.4 % (7.2 )% (3.5 )% Share-based compensation (0.6 )% (1.2 )% — % U.S. manufacturing incentive (1.3 )% (1.8 )% (0.9 )% Tax credits (2.7 )% (2.6 )% 0.9 % Tax deductible basis difference (1.5 )% — % — % Transition tax 9.0 % — % — % U.S. statutory tax rate change on temporary differences (38.7 )% — % — % Other (1.6 )% (0.4 )% (0.4 )% Effective tax rate (9.3 )% 23.2 % 30.5 % The Company's consolidated income taxes for the year ended September 30, 2018 were a benefit of $9,118 , compared to income tax expense of $22,354 for fiscal 2017 . Fiscal 2018 primarily reflects the benefits from the U.S. tax reform enactment discussed above. The difference between the Company's fiscal 2018 effective tax rate and the blended U.S. federal statutory rate of 24.5% primarily reflected the re-measurement of U.S. deferred taxes and the benefit of credits and incentives, partially offset by the one-time transition tax and the impact of state taxes. The Company's foreign subsidiaries had income before income taxes for the years ended September 30, 2018 , 2017 and 2016 of approximately $56,424 , $24,118 and $48,864 , respectively. Deferred income taxes have not been provided on certain undistributed earnings of foreign subsidiaries since they have been included as a component of the U.S. Tax Cuts and Jobs Act transition tax, and such earnings are considered to be reinvested indefinitely. At September 30, 2018 , undistributed earnings of foreign subsidiaries for which deferred income taxes have not been provided approximated $289,702 . The components of deferred tax assets and liabilities at September 30, 2018 and 2017 are as follows: 2018 2017 Deferred tax assets: Pension and postretirement benefits $ 24,597 $ 45,654 Accruals and reserves not currently deductible 9,596 20,579 Income tax credit carryforward 3,216 3,313 Operating and capital loss carryforwards 20,807 23,610 Stock options 5,157 8,614 Other 3,963 2,782 Total deferred tax assets 67,336 104,552 Valuation allowances (14,137 ) (20,866 ) Net deferred tax assets 53,199 83,686 Deferred tax liabilities: Depreciation (16,156 ) (4,763 ) Unrealized gains and losses (8,637 ) (10,446 ) Goodwill and intangible assets (147,571 ) (203,957 ) Other (517 ) (1,494 ) (172,881 ) (220,660 ) Net deferred tax liability $ (119,682 ) $ (136,974 ) At September 30, 2018 , the Company had foreign net operating loss carryforwards of $60,705 and foreign capital loss carryforwards of $20,370 . The Company has recorded deferred tax assets of $4,684 for state net operating loss carryforwards, and various non-U.S. income tax credit carryforwards of $2,934 which will be available to offset future income tax liabilities. If not used, state net operating losses will begin to expire in 2019 . Certain of the foreign net operating losses begin to expire in 2019 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 $14,137 at September 30, 2018 . Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2018 2017 2016 Balance, beginning of year $ 7,968 $ 13,820 $ 4,086 Increases for tax positions of prior years 7,886 839 5,762 Decreases for tax positions of prior years — (5,890 ) (166 ) Increases based on tax positions related to the current year 882 378 5,456 Decreases due to lapse of statute of limitation (1,909 ) (1,179 ) (1,318 ) Balance, end of year $ 14,827 $ 7,968 $ 13,820 The Company had unrecognized tax benefits of $10,718 at September 30, 2018 , which would impact the annual effective tax rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $2,786 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 $2,229 and $1,779 at September 30, 2018 and 2017 , 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, 2018 , the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2015 and forward United States - State 2014 and forward Canada 2014 and forward Germany 2015 and forward United Kingdom 2017 and forward Australia 2014 and forward Singapore 2013 and forward |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2018 | |
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 $38,934 , $36,400 and $32,716 in fiscal 2018 , 2017 and 2016 , respectively. Future minimum rental commitments under non-cancelable operating lease arrangements for fiscal years 2019 through 2023 are $23,183 , $18,576 , $14,055 , $8,947 and $5,333 , 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, 2018 was $6,811 . 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, 2018 | |
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 of hazardous materials. The Company is party to various environmental matters. These include obligations to investigate and mitigate the effects on the environment 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, 2018 , an accrual of $2,000 had been recorded for environmental remediation (of which $585 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, 2018 | |
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: 2018 2017 2016 Current assets: Accounts receivable $ (790 ) $ (7,045 ) $ (10,632 ) Inventories (2,869 ) (2,289 ) 10,453 Other current assets (16,293 ) 4,447 12,434 (19,952 ) (4,887 ) 12,255 Current liabilities: Trade accounts payable 2,516 5,672 (11,083 ) Accrued compensation (10,940 ) (2,469 ) 147 Accrued income taxes (9,973 ) 5,054 4,079 Other current liabilities 28,415 2,414 8,317 10,018 10,671 1,460 Net change $ (9,934 ) $ 5,784 $ 13,715 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2018 | |
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: 2018 $ 805,274 $ 631,392 $ 165,914 $ — $ 1,602,580 2017 770,181 615,882 129,545 — 1,515,608 2016 755,975 610,142 114,347 — 1,480,464 Intersegment sales: 2018 310 2 9 — 321 2017 356 — 2 — 358 2016 346 43 99 — 488 Depreciation and amortization: 2018 47,055 20,005 5,796 4,118 76,974 2017 41,941 19,808 2,863 3,369 67,981 2016 41,238 19,223 2,503 2,516 65,480 Operating profit: 2018 35,443 86,370 11,021 — 132,834 2017 24,919 80,652 7,032 — 112,603 2016 42,909 68,252 7,654 — 118,815 Total assets: 2018 1,300,785 814,800 198,864 61,036 2,375,485 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 Capital expenditures: 2018 22,133 15,513 2,577 2,977 43,200 2017 22,941 8,078 4,622 9,294 44,935 2016 22,043 11,870 3,461 4,308 41,682 Information about the Company's operations by geographic area follows: North America Central and South America Europe Australia Asia Consolidated Sales to external customers: 2018 $ 1,066,367 $ 6,171 $ 456,078 $ 23,276 $ 50,688 $ 1,602,580 2017 1,043,924 6,518 396,242 21,507 47,417 1,515,608 2016 1,045,718 10,160 360,678 20,043 43,865 1,480,464 Long-lived assets: 2018 1,182,250 16,535 365,455 23,037 58,302 1,645,579 2017 1,069,862 13,882 382,940 24,887 66,138 1,557,709 2016 1,042,263 13,267 334,847 23,768 50,677 1,464,822 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS: Fiscal 2018: On February 1, 2018, the Company acquired certain net assets of Star Granite and Bronze International, Inc. ("Star Granite") for a total purchase price of $34,713 , consisting of cash of $29,713 (net of cash acquired and holdback amounts, subject to a working capital adjustment) and shares of Matthews common stock valued at $5,000 . Star Granite manufactures and distributes granite and other memorialization products to cemetery and other customers across the United States and is included in the Company's Memorialization segment. Annual sales for this business were approximately $31,000 prior to the acquisition. The preliminary purchase price allocation related to the Star Granite acquisition is not finalized as of September 30, 2018 , and is subject to changes as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. On November 28, 2017, the Company acquired Compass Engineering Group, Inc. ("Compass") for $51,887 (net of cash acquired, subject to a working capital adjustment). Compass provides high-quality material handling control solutions and is included in the Company's Industrial Technologies segment. Annual sales for this business were approximately $24,000 prior to the acquisition. The Company finalized the allocation of purchase price related to the Compass acquisition in the fourth quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital and intangible asset amounts. During the first nine months of fiscal 2018, the Company completed several additional smaller acquisitions for an aggregate purchase price of $39,465 (net of cash acquired and holdback amounts, subject to working capital adjustments). These additional acquisitions strengthen the Company's operations across the SGK Brand Solutions and Memorialization segments. The Company finalized the allocation of purchase price related to certain of these acquisitions in the fourth quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital amounts. The preliminary purchase price allocations for the remaining acquisitions are not finalized as of September 30, 2018 and are subject to changes as the Company obtains additional information related to fixed assets, intangible assets, and other assets and liabilities. 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. Annual sales for this business were approximately $30,000 prior to the acquisition. The Company finalized the allocation of purchase price related to the Equator acquisition in the second quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital and intangible asset amounts. 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 Company finalized the allocation of purchase price related to the VCG acquisition in the first quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital and intangible asset amounts. 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. Annual sales for this business were approximately $35,000 prior to the acquisition. The Company finalized the allocation of purchase price related to the Ungricht acquisition in the first quarter of fiscal 2018, resulting in an immaterial adjustment to certain working capital and intangible asset amounts. 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). 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. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 , follow. SGK Brand Solutions Memorialization Industrial Technologies Consolidated 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 Additions during period 8,743 29,059 22,877 60,679 Translation and other adjustments (9,568 ) (16 ) 5 (9,579 ) Goodwill 491,070 376,550 92,026 959,646 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2018 $ 485,318 $ 371,550 $ 92,026 $ 948,894 The Company performed its annual impairment review of goodwill in the second quarter of fiscal 2018 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 2018, the additions to SGK Brand Solutions goodwill reflects several smaller acquisitions. The additions to Memorialization goodwill reflects the acquisitions of Star Granite and several additional smaller acquisitions. The addition to Industrial Technologies goodwill reflects the acquisition of Compass. 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. The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2018 and 2017 , respectively. Carrying Amount Accumulated Amortization Net September 30, 2018 Trade names $ 126,047 $ — * $ 126,047 Trade names 53,523 (5,444 ) 48,079 Customer relationships 372,382 (110,760 ) 261,622 Copyrights/patents/other 20,848 (12,686 ) 8,162 $ 572,800 $ (128,890 ) $ 443,910 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 *Not subject to amortization The net change in intangible assets during fiscal 2018 included the impact of foreign currency fluctuations during the period, additional amortization, and additions related to acquisitions, primarily Star Granite and Compass. During fiscal 2018, the Company also converted certain of its trade names from indefinite-lived to definite-lived, and accordingly, these intangible assets are now subject to amortization. Amortization expense on intangible assets was $31,562 , $23,313 , and $20,821 in fiscal 2018 , 2017 and 2016 , respectively. Fiscal year amortization expense is estimated to be $32,128 in 2019 , $30,388 in 2020 , $28,976 in 2021 , $27,387 in 2022 and $25,815 in 2023 . |
RELATED PARTY TRANSACTION RELAT
RELATED PARTY TRANSACTION RELATED PARTY TRANSACTION | 12 Months Ended |
Sep. 30, 2018 | |
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 Group 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 | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 | |
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 2018 and fiscal 2017 . Quarter Ended December 31 March 31 June 30 September 30 Year Ended September 30 (Dollar amounts in thousands, except per share data) FISCAL YEAR 2018: Sales $ 369,454 $ 414,061 $ 411,621 $ 407,444 $ 1,602,580 Gross profit 130,699 149,966 151,901 148,784 581,350 Operating profit 17,924 29,791 37,895 47,224 132,834 Net income attributable to Matthews shareholders 35,180 18,182 24,414 29,595 107,371 Earnings per share: Basic $ 1.11 $ 0.57 $ 0.77 $ 0.94 $ 3.39 Diluted 1.10 0.57 0.77 0.93 3.37 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 14,920 29,485 19,641 74,368 Earnings per share: Basic $ 0.32 $ 0.46 $ 0.91 $ 0.61 $ 2.31 Diluted 0.32 0.46 0.91 0.60 2.28 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 $ 11,622 $ 855 $ 762 $ (2,081 ) $ 11,158 September 30, 2017 11,516 1,733 642 (2,269 ) 11,622 September 30, 2016 10,015 3,055 435 (1,989 ) 11,516 (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, 2018 $ 20,866 $ 2,482 $ (8,510 ) $ (701 ) $ 14,137 September 30, 2017 22,412 (1,279 ) — (267 ) 20,866 September 30, 2016 20,977 2,438 — (1,003 ) 22,412 (1) Amounts relate primarily to adjustments in net operating loss carryforwards which are precluded from use. (2) Fiscal 2018 amounts primarily reflect the release of valuation allowances due to the termination of net operating loss carryforwards upon the liquidation of non-U.S. holding companies as part of an entity reduction plan. (3) Consists principally of adjustments related to foreign exchange. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
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 net realizable value with cost generally determined under the average cost method. Inventory costs include material, labor, and applicable manufacturing overhead (including depreciation) and other direct costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. |
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 15 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 and other market indicators. 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. 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 | 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 remeasurement of pension and other postretirement liabilities. |
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, 2018 , the Company held 329,341 memorials and 220,901 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 $24,984 , $20,722 and $16,362 for the years ended September 30, 2018 , 2017 and 2016 , respectively. |
Stock-Based Compensation | 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 have not been provided on certain undistributed earnings of foreign subsidiaries since they have been included as a component of the U.S. Tax Cuts and Jobs Act transition tax, and such earnings are considered to be reinvested indefinitely. |
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 2018, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2021. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements including the consideration of costs and benefits. This ASU is effective for the Company beginning in interim periods starting 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 August 2017, the FASB issued ASU No. 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 No. 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 adoption of this ASU is not expected to have a material impact on the Company's 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. 2017-01, 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 October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) , which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The Company continues to evaluate the impact this standard will have on the Company’s financial statements but believes there will not be a material change once adopted. 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. 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. During 2017 and 2018, the FASB issued four ASUs that address implementation issues and correct or improve certain aspects of the new lease guidance, including ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , and ASU 2018-11, Leases (Topic 842): Targeted Improvements . These ASUs do not change the core principles in the lease guidance outlined above. ASU No. 2018-11 provides an additional transition method to adopt ASU No. 2016-02. Under the new transition method, an entity initially applies the new leases standard at the adoption date versus at the beginning of the earliest period presented and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU No. 2016-02 and the related ASUs referenced above are effective for the Company beginning in interim periods starting in fiscal year 2020, and allow for early adoption. The Company is in the process of assessing the impact these ASUs 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. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10), that provides guidance related to implementation issues and corrects or improves certain aspects of the financial instruments guidance. The adoption of these ASUs are 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 and 2017, the FASB issued six 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, ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842) and ASU 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) . 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 has completed its assessment of all global revenue arrangements and related impact of the new standard compared to historical accounting policies and has concluded the adoption of these ASUs will not have a material impact on its consolidated financial statements. The Company adopted the provisions of these ASUs using the modified retrospective method, with the cumulative effect of initially applying it recognized at the date of initial application. There was no cumulative effect adjustment recognized to retained earnings on October 1, 2018. The Company is continuing to assess the ultimate impact that the adoption of this standard will have on its consolidated financial statement disclosures. Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) , which provides new guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. The amount of reclassification is the difference between the Company's historical U.S. income tax rate and the newly enacted 21% corporate income tax rate. The Company early adopted this ASU in the third quarter ended June 30, 2018. The adoption of this ASU resulted in a decrease to AOCI and corresponding increase to retained earnings of $8,814 . 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. The Company early adopted this ASU in the first quarter ended December 31, 2017. The adoption of this ASU had no impact on the Company's consolidated financial statements, but modifies the methodology to assess and measure goodwill impairment prospectively. 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 adoption of this ASU in the first quarter ended December 31, 2017 had no impact on the Company's consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | As of September 30, 2018 and 2017 , the fair values of the Company's assets and liabilities measured on a recurring basis were categorized as follows: September 30, 2018 Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 11,309 $ — $ 11,309 Equity and fixed income mutual funds — 22,758 — 22,758 Life insurance policies — 5,894 — 5,894 Total assets at fair value $ — $ 39,961 $ — $ 39,961 Liabilities: Derivatives (1) $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. 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 Life insurance policies — 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. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at September 30, 2018 and 2017 consisted of the following: 2018 2017 Raw materials $ 34,880 $ 29,396 Work in process 67,827 61,917 Finished goods 77,744 80,132 $ 180,451 $ 171,445 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Current Investments | At September 30, 2018 and 2017 , non-current investments were as follows: 2018 2017 Equity and fixed income mutual funds $ 22,758 $ 21,649 Life insurance policies 5,894 5,810 Other investments 16,778 10,208 $ 45,430 $ 37,667 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 were as follows: 2018 2017 Buildings $ 113,027 $ 104,604 Machinery, equipment and other 452,846 412,980 565,873 517,584 Less accumulated depreciation (357,827 ) (335,346 ) 208,046 182,238 Land 18,017 16,845 Construction in progress 26,712 36,450 $ 252,775 $ 235,533 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt at September 30, 2018 and 2017 consisted of the following: 2018 2017 Revolving credit facilities $ 322,711 $ 551,126 Securitization facility 102,250 95,825 Senior secured term loan 212,086 232,479 2025 Senior Notes 296,176 — Notes payable to banks 17,895 21,831 Short-term borrowings 4,915 4,735 Capital lease obligations 4,569 5,134 960,602 911,130 Less current maturities (31,260 ) (29,528 ) $ 929,342 $ 881,602 |
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, 2018 September 30, 2017 Pay fixed swaps - notional amount $ 343,750 $ 414,063 Net unrealized gain (loss) $ 11,309 $ 3,959 Weighted-average maturity period (years) 2.7 3.3 Weighted-average received rate 2.26 % 1.23 % Weighted-average pay rate 1.37 % 1.34 % |
Interest Rate Swap Contracts Reflected in Consolidated Balance Sheets | At September 30, 2018 and 2017 , the interest rate swap contracts were reflected on a gross-basis in the consolidated balance sheets as follows: Derivatives: 2018 2017 Current assets: Other current assets $ 3,867 $ 1,098 Long-term assets: Other assets 7,442 2,892 Current liabilities: Other current liabilities — (7 ) Long-term liabilities: Other liabilities — (24 ) Total derivatives $ 11,309 $ 3,959 |
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 2018 2017 2016 Interest rate swaps Interest expense $1,380 $1,752 $(3,146) 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*) 2018 2017 2016 (Effective Portion*) 2018 2017 2016 Interest rate swaps $6,095 $7,043 $(3,230) Interest expense $1,042 $1,069 $(1,919) *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: 2019 $ 34,471 2020 145,176 2021 482,102 2022 325 2023 247 Thereafter 298,281 $ 960,602 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Activity | The transactions for restricted stock for the year ended September 30, 2018 were as follows: Shares Weighted- average Grant-date Fair Value Non-vested at September 30, 2017 501,184 $ 53.65 Granted 234,100 57.05 Vested (174,295 ) 51.41 Expired or forfeited (6,756 ) 59.72 Non-vested at September 30, 2018 554,233 $ 55.71 |
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, 2018 , 2017 and 2016 . 2018 2017 2016 Expected volatility 20.5 % 20.2 % 20.7 % Dividend yield 1.0 % 1.1 % 1.0 % Average risk-free interest rate 2.0 % 1.7 % 1.7 % Average expected term (years) 2.1 2.1 2.1 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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: 2018 2017 2016 Net income available to Matthews shareholders $ 107,371 $ 74,368 $ 66,749 Weighted-average shares outstanding (in thousands): Basic shares 31,674 32,240 32,642 Effect of dilutive securities 187 330 262 Diluted shares 31,861 32,570 32,904 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 : Pension Other Postretirement 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation, beginning of year $ 259,672 $ 263,566 $ 20,316 $ 23,290 Service cost 8,159 8,553 335 392 Interest cost 8,210 7,362 631 626 Actuarial gain (15,229 ) (4,264 ) (907 ) (2,600 ) Exchange (gain) loss (180 ) 589 — — Benefit payments (19,079 ) (16,134 ) (1,549 ) (1,392 ) Benefit obligation, end of year 241,553 259,672 18,826 20,316 Change in plan assets: Fair value, beginning of year 155,634 151,864 — — Actual return 10,914 12,586 — — Benefit payments (1) (19,079 ) (16,134 ) (1,549 ) (1,392 ) Employer contributions 11,193 7,318 1,549 1,392 Fair value, end of year 158,662 155,634 — — Funded status (82,892 ) (104,039 ) (18,828 ) (20,317 ) Unrecognized actuarial loss (gain) 53,405 73,616 (2,376 ) (1,469 ) Unrecognized prior service cost (552 ) (690 ) (525 ) (720 ) Net amount recognized $ (30,039 ) $ (31,113 ) $ (21,729 ) $ (22,506 ) Amounts recognized in the consolidated balance sheet: Current liability $ (857 ) $ (766 ) $ (1,075 ) $ (1,044 ) Noncurrent benefit liability (82,035 ) (103,273 ) (17,753 ) (19,273 ) Accumulated other comprehensive loss (income) 52,853 72,926 (2,901 ) (2,189 ) Net amount recognized $ (30,039 ) $ (31,113 ) $ (21,729 ) $ (22,506 ) Amounts recognized in accumulated other comprehensive loss (income): Net actuarial loss (income) $ 53,405 $ 73,616 $ (2,376 ) $ (1,469 ) Prior service cost (552 ) (690 ) (525 ) (720 ) Net amount recognized $ 52,853 $ 72,926 $ (2,901 ) $ (2,189 ) (1) Pension benefit payments in fiscal 2018 and 2017 includes $6,800 and $5,655 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 2018 2017 2016 2018 2017 2016 Service cost $ 8,159 $ 8,553 $ 7,446 $ 335 $ 392 $ 402 Interest cost 8,210 7,362 9,725 631 626 845 Expected return on plan assets (10,136 ) (9,249 ) (9,625 ) — — — Amortization: Prior service cost (138 ) (181 ) (183 ) (195 ) (195 ) (195 ) Net actuarial loss 7,018 10,034 7,468 — — — Net benefit cost $ 13,113 $ 16,519 $ 14,831 $ 771 $ 823 $ 1,052 |
Contributions During Fiscal Year | Contributions made in fiscal 2018 are as follows: Contributions Pension Other Postretirement Principal retirement plan $ 10,000 $ — Supplemental retirement plan 749 — Other retirement plans 444 — Other postretirement plan — 1,549 |
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 2019 include: Pension Benefits Other Postretirement Benefits Net actuarial loss $ 4,246 $ (59 ) Prior service cost (186 ) (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 2018 , 2017 and 2016 . The weighted-average assumptions for those plans were: Pension Other Postretirement 2018 2017 2016 2018 2017 2016 Discount rate 4.21 % 3.76 % 3.51 % 4.19 % 3.72 % 3.42 % Return on plan assets 6.75 % 6.75 % 7.25 % — — — 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, 2018 and 2017 and weighted-average target allocation were as follows: Plan Assets at Target Asset Category 2018 2017 Allocation* Equity securities $ 92,745 $ 77,245 50 % Fixed income, cash and cash equivalents 44,250 49,008 30 % Other investments 21,667 29,381 20 % $ 158,662 $ 155,634 100 % * Target allocation relates to the Company's primary defined benefit pension plan |
Fair Value Allocation of Plan Assets | he Company's defined benefit pension plans' asset categories at September 30, 2018 and 2017 were as follows: September 30, 2018 Asset Category Level 1 Level 2 Level 3 Total Equity securities - stocks $ 46,628 $ — $ — $ 46,628 Equity securities - mutual funds 46,117 — — 46,117 Fixed income securities 26,789 14,785 — 41,574 Cash and cash equivalents 2,676 — — 2,676 Other investments 11,552 — 10,115 21,667 Total $ 133,762 $ 14,785 $ 10,115 $ 158,662 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 |
Changes in Fair Value of Level 3 Plan Assets | Changes in the fair value of Level 3 assets at September 30, 2018 and 2017 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, 2018 $ 9,480 $ — $ (149 ) $ 261 $ 523 $ 10,115 September 30, 2017 12,816 — (3,286 ) 418 (468 ) 9,480 |
Benefit Payments Expected to be Paid | Benefit payments expected to be paid are as follows: Years ending September 30: Pension Benefits Other Postretirement Benefits 2019 $ 10,348 $ 1,075 2020 10,602 1,036 2021 11,141 1,062 2022 12,408 1,098 2023 12,772 1,117 2024-2028 72,916 6,062 $ 130,187 $ 11,450 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 , 2017 and 2016 were as follows: Postretirement Benefit Plans Currency Translation Adjustment Derivatives Total Attributable to Matthews: 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 ) OCI before reclassification 10,584 (22,053 ) 6,095 (5,374 ) Amounts reclassified from AOCI (a) 5,047 — (b) (1,042 ) 4,005 Net current-period OCI 15,631 (22,053 ) 5,053 (1,369 ) Reclassification of AOCI tax effects (c) (9,884 ) — (c) 1,070 (8,814 ) Balance, September 30, 2018 $ (37,876 ) $ (134,960 ) $ 8,538 $ (164,298 ) Attributable to noncontrolling interest: 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 $ — $ 277 OCI before reclassification — 71 — 71 Net current-period OCI — 71 — 71 Balance, September 30, 2018 $ — $ 467 $ — $ 348 (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). (c) Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02 (see Note 3). Accumulated other comprehensive loss at September 30, 2018 and 2017 consisted of the following: 2018 2017 Cumulative foreign currency translation $ (134,960 ) $ (112,907 ) Fair value of derivatives, net of tax of $2,771 and $1,544, respectively 8,538 2,415 Minimum pension liabilities, net of tax of $12,076 and $27,114, respectively (37,876 ) (43,623 ) $ (164,298 ) $ (154,115 ) |
Reclassifications out of AOCI | Reclassifications out of AOCI for the years ended September 30, 2018 , 2017 and 2016 were as follows: Details about AOCI Components September 30, 2018 September 30, 2017 September 30, 2016 Affected line item in the Statement of Income Postretirement benefit plans Prior service (cost) credit (a) $ 333 $ 376 $ 378 Actuarial losses (a) (7,018 ) (10,034 ) (7,468 ) (b) (6,685 ) (9,658 ) (7,090 ) Income before income tax (1,638 ) (3,767 ) (2,765 ) Income taxes $ (5,047 ) $ (5,891 ) $ (4,325 ) Net income Derivatives Interest rate swap contracts $ 1,380 $ 1,752 $ (3,146 ) Interest expense (b) 1,380 1,752 (3,146 ) Income before income tax 338 683 (1,227 ) Income taxes $ 1,042 $ 1,069 $ (1,919 ) 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The income tax (benefit) provision consisted of the following: 2018 2017 2016 Current: Federal $ (2,577 ) $ 1,542 $ 18,733 State 1,051 628 1,829 Foreign 15,533 10,459 12,482 14,007 12,629 33,044 Deferred: Federal (24,094 ) 11,887 (3,066 ) State 1,315 905 (2,412 ) Foreign (346 ) (3,067 ) 1,507 (23,125 ) 9,725 (3,971 ) Total $ (9,118 ) $ 22,354 $ 29,073 |
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: 2018 2017 2016 Federal statutory tax rate 24.5 % 35.0 % 35.0 % Effect of state income taxes, net of federal deduction 2.2 % 1.4 % (0.6 )% Foreign taxes greater (less) than federal statutory rate 1.4 % (7.2 )% (3.5 )% Share-based compensation (0.6 )% (1.2 )% — % U.S. manufacturing incentive (1.3 )% (1.8 )% (0.9 )% Tax credits (2.7 )% (2.6 )% 0.9 % Tax deductible basis difference (1.5 )% — % — % Transition tax 9.0 % — % — % U.S. statutory tax rate change on temporary differences (38.7 )% — % — % Other (1.6 )% (0.4 )% (0.4 )% Effective tax rate (9.3 )% 23.2 % 30.5 % |
Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities at September 30, 2018 and 2017 are as follows: 2018 2017 Deferred tax assets: Pension and postretirement benefits $ 24,597 $ 45,654 Accruals and reserves not currently deductible 9,596 20,579 Income tax credit carryforward 3,216 3,313 Operating and capital loss carryforwards 20,807 23,610 Stock options 5,157 8,614 Other 3,963 2,782 Total deferred tax assets 67,336 104,552 Valuation allowances (14,137 ) (20,866 ) Net deferred tax assets 53,199 83,686 Deferred tax liabilities: Depreciation (16,156 ) (4,763 ) Unrealized gains and losses (8,637 ) (10,446 ) Goodwill and intangible assets (147,571 ) (203,957 ) Other (517 ) (1,494 ) (172,881 ) (220,660 ) Net deferred tax liability $ (119,682 ) $ (136,974 ) |
Changes in Gross Unrecognized Tax Benefits | Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows: 2018 2017 2016 Balance, beginning of year $ 7,968 $ 13,820 $ 4,086 Increases for tax positions of prior years 7,886 839 5,762 Decreases for tax positions of prior years — (5,890 ) (166 ) Increases based on tax positions related to the current year 882 378 5,456 Decreases due to lapse of statute of limitation (1,909 ) (1,179 ) (1,318 ) Balance, end of year $ 14,827 $ 7,968 $ 13,820 |
Summary of Income Tax Contingencies | As of September 30, 2018 , the tax years that remain subject to examination by major jurisdiction generally are: United States - Federal 2015 and forward United States - State 2014 and forward Canada 2014 and forward Germany 2015 and forward United Kingdom 2017 and forward Australia 2014 and forward Singapore 2013 and forward |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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: 2018 2017 2016 Current assets: Accounts receivable $ (790 ) $ (7,045 ) $ (10,632 ) Inventories (2,869 ) (2,289 ) 10,453 Other current assets (16,293 ) 4,447 12,434 (19,952 ) (4,887 ) 12,255 Current liabilities: Trade accounts payable 2,516 5,672 (11,083 ) Accrued compensation (10,940 ) (2,469 ) 147 Accrued income taxes (9,973 ) 5,054 4,079 Other current liabilities 28,415 2,414 8,317 10,018 10,671 1,460 Net change $ (9,934 ) $ 5,784 $ 13,715 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Information about the Company's segments follows: SGK Brand Solutions Memorialization Industrial Technologies Other Consolidated Sales to external customers: 2018 $ 805,274 $ 631,392 $ 165,914 $ — $ 1,602,580 2017 770,181 615,882 129,545 — 1,515,608 2016 755,975 610,142 114,347 — 1,480,464 Intersegment sales: 2018 310 2 9 — 321 2017 356 — 2 — 358 2016 346 43 99 — 488 Depreciation and amortization: 2018 47,055 20,005 5,796 4,118 76,974 2017 41,941 19,808 2,863 3,369 67,981 2016 41,238 19,223 2,503 2,516 65,480 Operating profit: 2018 35,443 86,370 11,021 — 132,834 2017 24,919 80,652 7,032 — 112,603 2016 42,909 68,252 7,654 — 118,815 Total assets: 2018 1,300,785 814,800 198,864 61,036 2,375,485 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 Capital expenditures: 2018 22,133 15,513 2,577 2,977 43,200 2017 22,941 8,078 4,622 9,294 44,935 2016 22,043 11,870 3,461 4,308 41,682 Information about the Company's operations by geographic area follows: North America Central and South America Europe Australia Asia Consolidated Sales to external customers: 2018 $ 1,066,367 $ 6,171 $ 456,078 $ 23,276 $ 50,688 $ 1,602,580 2017 1,043,924 6,518 396,242 21,507 47,417 1,515,608 2016 1,045,718 10,160 360,678 20,043 43,865 1,480,464 Long-lived assets: 2018 1,182,250 16,535 365,455 23,037 58,302 1,645,579 2017 1,069,862 13,882 382,940 24,887 66,138 1,557,709 2016 1,042,263 13,267 334,847 23,768 50,677 1,464,822 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Attributable to Each Segment | Changes to goodwill during the years ended September 30, 2018 and 2017 , follow. SGK Brand Solutions Memorialization Industrial Technologies Consolidated 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 Additions during period 8,743 29,059 22,877 60,679 Translation and other adjustments (9,568 ) (16 ) 5 (9,579 ) Goodwill 491,070 376,550 92,026 959,646 Accumulated impairment losses (5,752 ) (5,000 ) — (10,752 ) Balance at September 30, 2018 $ 485,318 $ 371,550 $ 92,026 $ 948,894 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of September 30, 2018 and 2017 , respectively. Carrying Amount Accumulated Amortization Net September 30, 2018 Trade names $ 126,047 $ — * $ 126,047 Trade names 53,523 (5,444 ) 48,079 Customer relationships 372,382 (110,760 ) 261,622 Copyrights/patents/other 20,848 (12,686 ) 8,162 $ 572,800 $ (128,890 ) $ 443,910 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 *Not subject to amortization |
SUPPLEMENTARY FINANCIAL INFOR_2
SUPPLEMENTARY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 2018 and fiscal 2017 . Quarter Ended December 31 March 31 June 30 September 30 Year Ended September 30 (Dollar amounts in thousands, except per share data) FISCAL YEAR 2018: Sales $ 369,454 $ 414,061 $ 411,621 $ 407,444 $ 1,602,580 Gross profit 130,699 149,966 151,901 148,784 581,350 Operating profit 17,924 29,791 37,895 47,224 132,834 Net income attributable to Matthews shareholders 35,180 18,182 24,414 29,595 107,371 Earnings per share: Basic $ 1.11 $ 0.57 $ 0.77 $ 0.94 $ 3.39 Diluted 1.10 0.57 0.77 0.93 3.37 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 14,920 29,485 19,641 74,368 Earnings per share: Basic $ 0.32 $ 0.46 $ 0.91 $ 0.61 $ 2.31 Diluted 0.32 0.46 0.91 0.60 2.28 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)memorialvase | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
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 | 329,341 | ||
Number of vases | vase | 220,901 | ||
Research and Development Expenses [Abstract] | |||
Research and development costs | $ | $ 24,984 | $ 20,722 | $ 16,362 |
Minimum | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Useful lives of intangibles | 2 years | ||
Maximum | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Useful lives of intangibles | 15 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 10 years | 10 years | 10 years |
Buildings | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 45 years | 45 years | 45 years |
Machinery, equipment and other | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 3 years | 3 years | 3 years |
Machinery, equipment and other | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful lives of PPE | 12 years | 12 years | 12 years |
ACCOUNTING PRONOUNCEMENTS - Nar
ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - Accounting Standards Update 2018-02 $ in Thousands | Sep. 30, 2018USD ($) |
Accumulated Other Comprehensive (Loss) Income (net of tax) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification of AOCI tax effects | $ 8,814 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification of AOCI tax effects | $ (8,814) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Assets: | ||
Equity and fixed income mutual funds | $ 22,758 | $ 21,649 |
Life insurance policies | 16,778 | 10,208 |
Recurring | ||
Assets: | ||
Derivatives | 11,309 | 3,990 |
Equity and fixed income mutual funds | 22,758 | 21,649 |
Life insurance policies | 5,894 | 5,810 |
Total assets at fair value | 39,961 | 31,449 |
Liabilities: | ||
Derivatives | 0 | 31 |
Total liabilities at fair value | 0 | 31 |
Recurring | Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Life insurance policies | 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 | 11,309 | 3,990 |
Equity and fixed income mutual funds | 22,758 | 21,649 |
Life insurance policies | 5,894 | 5,810 |
Total assets at fair value | 39,961 | 31,449 |
Liabilities: | ||
Derivatives | 0 | 31 |
Total liabilities at fair value | 0 | 31 |
Recurring | Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Life insurance policies | 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, 2018 | Sep. 30, 2017 |
Inventories, net [Abstract] | ||
Raw materials | $ 34,880 | $ 29,396 |
Work in process | 67,827 | 61,917 |
Finished goods | 77,744 | 80,132 |
Inventories | $ 180,451 | $ 171,445 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Trading securities cost (in excess of) or below market value | $ 838 | $ 785 |
Maximum ownership interests in various entities recorded under the cost method | 20.00% | |
Ownership interest recorded as cost method investment | $ 11,747 | |
Proceeds from the sale of cost method investments | 9,159 | |
Realized gain on disposition of cost method investment | $ 3,771 |
INVESTMENTS - Non-Current Inves
INVESTMENTS - Non-Current Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 22,758 | $ 21,649 |
Life insurance policies | 5,894 | 5,810 |
Other investments | 16,778 | 10,208 |
Total non-current investments | $ 45,430 | $ 37,667 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, net | $ 252,775 | $ 235,533 | |
Depreciation expense | 45,412 | 44,668 | $ 44,659 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 113,027 | 104,604 | |
Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 452,846 | 412,980 | |
Buildings, Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 565,873 | 517,584 | |
Less accumulated depreciation | (357,827) | (335,346) | |
Total property, plant and equipment, net | 208,046 | 182,238 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 18,017 | 16,845 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 26,712 | $ 36,450 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 960,602 | $ 911,130 |
Less current maturities | (31,260) | (29,528) |
Total long-term debt and capital lease obligations, excluding current maturities | 929,342 | 881,602 |
Senior secured term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 212,086 | 232,479 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 296,176 | 0 |
Notes payable to banks | ||
Debt Instrument [Line Items] | ||
Long-term debt | 17,895 | 21,831 |
Short-term borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,915 | 4,735 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt | 4,569 | 5,134 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 322,711 | 551,126 |
Securitization facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 102,250 | $ 95,825 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) £ in Thousands | 12 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2018GBP (£) | Sep. 30, 2017USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Sep. 30, 2017EUR (€) | Apr. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Unrealized gain (loss) on fair value of interest rate swaps, before tax | $ 11,309,000 | $ 3,959,000 | |||||
Unrealized gain (loss) on fair value of interest rate swaps, after tax | 8,538,000 | 2,415,000 | |||||
Unrealized gain (loss) expected to be recognized over the next 12 months | 2,920,000 | ||||||
Other debt | 5,399,000 | 8,846,000 | |||||
Contested letter of credit | 11,325,000 | ||||||
Other current assets | |||||||
Debt Instrument [Line Items] | |||||||
Contested letter of credit | 11,170,000 | £ 8,570 | |||||
Securitization facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of borrowings available | 115,000,000 | ||||||
Outstanding borrowings | $ 102,250,000 | $ 95,825,000 | |||||
Interest rate (as a percent) | 3.01% | 1.98% | 3.01% | 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) | 2.21% | 2.49% | 2.21% | 2.49% | |||
2025 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Financing fees and costs | $ 4,127,000 | ||||||
Debt issued | $ 300,000,000 | ||||||
Fixed interest rate (as a percent) | 5.25% | ||||||
2025 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 | $ 17,411,000 | € 15,000,000 | |||||
Portion of debt bearing fixed interest | € | € 5,000,000 | ||||||
Fixed interest rate (as a percent) | 1.40% | 1.40% | |||||
Revolving credit facilities | Domestic Credit Facility Amendment Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 3.12% | 3.01% | 3.12% | 3.01% | |||
Revolving Credit Facility | Revolving credit facilities | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate on borrowings (as a percent) | 1.50% | 1.50% | |||||
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 | $ 319,500,000 | $ 525,000,000 | |||||
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 | $ 212,086,000 | 232,479,000 | |||||
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 | 40,626,000 | € 35,000,000 | |||||
Outstanding borrowings | $ 3,211,000 | $ 26,126,000 | € 2,800,000 | € 22,100,000 | |||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.75% | 1.75% | 1.75% | 1.75% |
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, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||
Pay fixed swaps - notional amount | $ 343,750,000 | $ 414,063,000 |
Net unrealized gain (loss) | $ 11,309,000 | $ 3,959,000 |
Weighted-average maturity period (years) | 2 years 8 months 24 days | 3 years 3 months 24 days |
Weighted-average received rate (as a percent) | 2.26% | 1.23% |
Weighted-average pay rate (as a percent) | 1.37% | 1.34% |
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, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Total derivatives | $ 11,309 | $ 3,959 |
Other current assets | ||
Debt Instrument [Line Items] | ||
Assets derivatives | 3,867 | 1,098 |
Other assets | ||
Debt Instrument [Line Items] | ||
Assets derivatives | 7,442 | 2,892 |
Other current liabilities | ||
Debt Instrument [Line Items] | ||
Liability derivatives | 0 | (7) |
Other liabilities | ||
Debt Instrument [Line Items] | ||
Liability derivatives | $ 0 | $ (24) |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest Expense | |||
Debt Instrument [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 1,380 | $ 1,752 | $ (3,146) |
Amount of Gain (Loss) Reclassified from AOCI into Income(Effective Portion) | 1,042 | 1,069 | (1,919) |
Other Comprehensive Income (Loss) | |||
Debt Instrument [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 6,095 | $ 7,043 | $ (3,230) |
LONG-TERM DEBT - Aggregate Matu
LONG-TERM DEBT - Aggregate Maturities of Long-Term Debt (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 34,471 |
2,020 | 145,176 |
2,021 | 482,102 |
2,022 | 325 |
2,023 | 247 |
Thereafter | 298,281 |
Aggregate maturities long-term debt | $ 960,602 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - Class A common stock - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
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) | 1,422,282 |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based compensation, aggregate disclosures [Abstract] | |||
Proceeds from the exercise of stock options | $ 0 | $ 14 | $ 6,406 |
All Plans | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Total stock-based compensation cost | 13,460 | 14,562 | 10,612 |
Future income tax benefit from compensation expense recognized | 2,826 | 5,534 | 4,139 |
Proceeds from the exercise of stock options | 14 | 6,406 | |
Tax benefit realized from options exercised | $ 3 | $ 932 | |
Options vested (in shares) | 0 | ||
All Plans | Restricted Stock | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized compensation cost on unvested awards | $ 6,190 | ||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 1 year 6 months | ||
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) | 1,700,000 | ||
Shares reserved for future issuance under award plan (in shares) | 1,700,000 | ||
Retirement Eligible Employees | |||
Share-based compensation, aggregate disclosures [Abstract] | |||
Total stock-based compensation cost | $ 2,850 | $ 3,337 | |
Director Fee Plans | |||
Director Fee Plan, aggregate disclosures [Abstract] | |||
Shares deferred under the director fee plan (in shares) | 22,745 | ||
Value of annual stock-based grant | $ 125 | ||
Option awards outstanding and vested (in shares) | 0 | ||
Total restricted stock awards granted to date (in shares) | 173,229 | ||
Restricted stock awards unvested (in shares) | 20,940 | ||
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 | $ 85 | ||
Annual retainer fee paid to non-employee chairman of the board | $ 185 | ||
Total restricted stock awards granted to date (in shares) | 70,079 |
SHARE-BASED PAYMENTS - Restrict
SHARE-BASED PAYMENTS - Restricted Stock Activity (Details) - Restricted Stock | 12 Months Ended |
Sep. 30, 2018$ / sharesshares | |
All Plans | |
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 | 501,184 |
Granted (in shares) | shares | 234,100 |
Vested (in shares) | shares | (174,295) |
Expired or forfeited (in shares) | shares | (6,756) |
Non-vested at end of period (in shares) | shares | 554,233 |
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 | $ 53.65 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 57.05 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 51.41 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 59.72 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 55.71 |
After 3 Years | Prior to Fiscal Year 2013 | All Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
After 3 Years | Fiscal 2013 and Thereafter | All Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
After 4 Years | Prior to Fiscal Year 2013 | All Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 16.67% |
After 4 Years | Fiscal 2013 and Thereafter | After 5 Years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.33% |
After 4 Years | Fiscal 2013 and Thereafter | After 6 Years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.33% |
After 5 Years | Prior to Fiscal Year 2013 | All Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 16.67% |
After 5 Years | Fiscal 2013 and Thereafter | After 5 Years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.33% |
After 5 Years | Fiscal 2013 and Thereafter | After 6 Years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.33% |
After 6 Years | Prior to Fiscal Year 2013 | All Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 16.66% |
After 6 Years | Fiscal 2013 and Thereafter | After 5 Years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.33% |
After 6 Years | Fiscal 2013 and Thereafter | After 6 Years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.33% |
SHARE-BASED PAYMENTS - Assumpti
SHARE-BASED PAYMENTS - Assumptions Used in Estimating Fair Value (Details) - All Plans - Restricted Stock | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 20.50% | 20.20% | 20.70% |
Dividend yield | 1.00% | 1.10% | 1.00% |
Average risk-free interest rate | 2.00% | 1.70% | 1.70% |
Average expected term (years) | 2 years 1 month 6 days | 2 years 1 month 6 days | 2 years 1 month 6 days |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Net income available to Matthews shareholders | $ 107,371 | $ 74,368 | $ 66,749 |
Weighted-average shares outstanding (in thousands): | |||
Basic shares (in shares) | 31,674 | 32,240 | 32,642 |
Effect of dilutive securities (in shares) | 187 | 330 | 262 |
Diluted shares (in shares) | 31,861 | 32,570 | 32,904 |
PENSION AND OTHER POSTRETIREM_3
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Change in plan assets: | |||
Fair value, beginning of year | $ 155,634 | ||
Fair value, end of year | 158,662 | $ 155,634 | |
Pension | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 259,672 | 263,566 | |
Service cost | 8,159 | 8,553 | $ 7,446 |
Interest cost | 8,210 | 7,362 | 9,725 |
Actuarial gain | (15,229) | (4,264) | |
Exchange (gain) loss | (180) | 589 | |
Benefit payments | (19,079) | (16,134) | |
Benefit obligation, end of year | 241,553 | 259,672 | 263,566 |
Change in plan assets: | |||
Fair value, beginning of year | 155,634 | 151,864 | |
Actual return | 10,914 | 12,586 | |
Benefit payments | (19,079) | (16,134) | |
Employer contributions | 11,193 | 7,318 | |
Fair value, end of year | 158,662 | 155,634 | 151,864 |
Funded status | (82,892) | (104,039) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (857) | (766) | |
Noncurrent benefit liability | (82,035) | (103,273) | |
Accumulated other comprehensive loss (income) | 52,853 | 72,926 | |
Net amount recognized | (30,039) | (31,113) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Net actuarial loss (income) | 53,405 | 73,616 | |
Prior service cost | (552) | (690) | |
Distributions to terminated employees | 6,800 | 5,655 | |
Other Postretirement | |||
Change in benefit obligation: | |||
Benefit obligation, beginning of year | 20,316 | 23,290 | |
Service cost | 335 | 392 | 402 |
Interest cost | 631 | 626 | 845 |
Actuarial gain | (907) | (2,600) | |
Exchange (gain) loss | 0 | 0 | |
Benefit payments | (1,549) | (1,392) | |
Benefit obligation, end of year | 18,826 | 20,316 | 23,290 |
Change in plan assets: | |||
Fair value, beginning of year | 0 | 0 | |
Actual return | 0 | 0 | |
Benefit payments | (1,549) | (1,392) | |
Employer contributions | 1,549 | 1,392 | |
Fair value, end of year | 0 | 0 | $ 0 |
Funded status | (18,828) | (20,317) | |
Amounts recognized in the consolidated balance sheet: | |||
Current liability | (1,075) | (1,044) | |
Noncurrent benefit liability | (17,753) | (19,273) | |
Accumulated other comprehensive loss (income) | (2,901) | (2,189) | |
Net amount recognized | (21,729) | (22,506) | |
Amounts recognized in accumulated other comprehensive loss (income): | |||
Net actuarial loss (income) | (2,376) | (1,469) | |
Prior service cost | $ (525) | $ (720) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT PLANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution plan expense | $ 8,685,000 | $ 8,620,000 | $ 8,117,000 |
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 | 224,265,000 | 238,307,000 | |
Projected benefit obligation | 241,553,000 | $ 259,672,000 | |
Required plan contribution | $ 0 | ||
Target allocation of plan assets (as a percent) | 100.00% | ||
Return on plan assets | 6.75% | 6.75% | 7.25% |
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) | 7.80% | ||
Ultimate health care cost trend rate (as a percent) | 4.00% | ||
Effect of one percentage point increase on accumulated postretirement benefit obligation | $ 705,000 | ||
Effect of one percentage point increase on service and interest cost components | 46,000 | ||
Effect of one percentage point decrease on accumulated postretirement benefit obligation | 622,000 | ||
Effect of one percentage point decrease on service and interest cost components | $ 40,000 |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT PLANS - Net Periodic Pension and Other Postretirement Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8,159 | $ 8,553 | $ 7,446 |
Interest cost | 8,210 | 7,362 | 9,725 |
Expected return on plan assets | (10,136) | (9,249) | (9,625) |
Prior service cost | (138) | (181) | (183) |
Net actuarial loss (gain) | 7,018 | 10,034 | 7,468 |
Net benefit cost | 13,113 | 16,519 | 14,831 |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 335 | 392 | 402 |
Interest cost | 631 | 626 | 845 |
Expected return on plan assets | 0 | 0 | 0 |
Prior service cost | (195) | (195) | (195) |
Net actuarial loss (gain) | 0 | 0 | 0 |
Net benefit cost | $ 771 | $ 823 | $ 1,052 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT PLANS - Contributions During Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Principal retirement plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | $ 10,000 |
Other Postretirement | 0 |
Supplemental retirement plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 749 |
Other Postretirement | 0 |
Other retirement plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 444 |
Other Postretirement | 0 |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension | 0 |
Other Postretirement | $ 1,549 |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT PLANS - Amounts of AOCI Expected to be Recognized in Net Periodic Benefit Costs (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 4,246 |
Prior service cost | (186) |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | (59) |
Prior service cost | $ (195) |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT PLANS - Weighted-Average Assumptions for Principal Retirement and Other Postretirement Benefit Plans (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.21% | 3.76% | 3.51% |
Return on plan assets | 6.75% | 6.75% | 7.25% |
Compensation increase | 3.50% | 3.50% | 3.50% |
Other Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.19% | 3.72% | 3.42% |
Return on plan assets | 0.00% | 0.00% | 0.00% |
Compensation increase | 0.00% | 0.00% | 0.00% |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT PLANS - Weighted Average Asset Allocation and Target Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 158,662 | $ 155,634 | |
Pension | |||
Defined Benefit Plan, Actual Plan Asset Allocations [Abstract] | |||
Fair value of plan assets | $ 158,662 | 155,634 | $ 151,864 |
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 | $ 92,745 | 77,245 | |
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 | $ 44,250 | 49,008 | |
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 | $ 21,667 | $ 29,381 | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||
Target allocation of plan assets (as a percent) | 20.00% |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT PLANS - Fair Value Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 158,662 | $ 155,634 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 133,762 | 131,284 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,785 | 14,870 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,115 | 9,480 |
Equity securities - stocks | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 46,628 | 42,731 |
Equity securities - stocks | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 46,628 | 42,731 |
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 | 46,117 | 34,514 |
Equity securities - mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 46,117 | 34,514 |
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 | 41,574 | 44,902 |
Fixed income securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26,789 | 30,032 |
Fixed income securities | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,785 | 14,870 |
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 | 2,676 | 4,106 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,676 | 4,106 |
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 | 21,667 | 29,381 |
Other investments | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11,552 | 19,901 |
Other investments | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other investments | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 10,115 | $ 9,480 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT PLANS - Changes in Fair Value of Level 3 Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | $ 155,634 | |
Fair value, end of year | 158,662 | $ 155,634 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 9,480 | |
Fair value, end of year | 10,115 | 9,480 |
Other investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 29,381 | |
Fair value, end of year | 21,667 | 29,381 |
Other investments | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 9,480 | |
Fair value, end of year | 10,115 | 9,480 |
Pension | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value, beginning of year | 155,634 | 151,864 |
Fair value, end of year | 158,662 | 155,634 |
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 | 9,480 | 12,816 |
Acquisitions | 0 | 0 |
Dispositions | (149) | (3,286) |
Realized Gains | 261 | 418 |
Unrealized Gains (Losses) | 523 | (468) |
Fair value, end of year | $ 10,115 | $ 9,480 |
PENSION AND OTHER POSTRETIRE_12
PENSION AND OTHER POSTRETIREMENT PLANS - Benefit Payments Expected to be Paid (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 10,348 |
2,019 | 10,602 |
2,020 | 11,141 |
2,021 | 12,408 |
2,022 | 12,772 |
2023-2027 | 72,916 |
Total | 130,187 |
Other Postretirement | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 1,075 |
2,019 | 1,036 |
2,020 | 1,062 |
2,021 | 1,098 |
2,022 | 1,117 |
2023-2027 | 6,062 |
Total | $ 11,450 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Change in AOCI by Component, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 790,259 | $ 709,334 | $ 734,046 |
Net current-period OCI | (1,298) | 27,872 | (31,631) |
Ending Balance | 868,714 | 790,259 | 709,334 |
Postretirement Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (43,623) | (56,050) | (43,474) |
OCI before reclassification | 10,584 | 6,536 | (16,901) |
Amounts reclassified from AOCI | 5,047 | 5,891 | 4,325 |
Reclassification of AOCI tax effects | (9,884) | ||
Net current-period OCI | 15,631 | 12,427 | (12,576) |
Ending Balance | (37,876) | (43,623) | (56,050) |
Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (112,907) | (122,259) | (104,604) |
OCI before reclassification | (22,053) | 9,352 | (17,655) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Reclassification of AOCI tax effects | 0 | ||
Net current-period OCI | (22,053) | 9,352 | (17,655) |
Ending Balance | (134,960) | (112,907) | (122,259) |
Derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 2,415 | (3,559) | (2,248) |
OCI before reclassification | 6,095 | 7,043 | (3,230) |
Amounts reclassified from AOCI | (1,042) | (1,069) | 1,919 |
Reclassification of AOCI tax effects | 1,070 | ||
Net current-period OCI | 5,053 | 5,974 | (1,311) |
Ending Balance | 8,538 | 2,415 | (3,559) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (154,115) | (181,868) | (150,326) |
OCI before reclassification | (5,374) | 22,931 | (37,786) |
Amounts reclassified from AOCI | 4,005 | 4,822 | 6,244 |
Reclassification of AOCI tax effects | (8,814) | ||
Net current-period OCI | (1,369) | 27,753 | (31,542) |
Ending Balance | (164,298) | (154,115) | (181,868) |
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 | 396 | 277 | 366 |
OCI before reclassification | 71 | 119 | (89) |
Net current-period OCI | 71 | 119 | (89) |
Ending Balance | 467 | 396 | 277 |
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 | 277 | 366 |
OCI before reclassification | 71 | 119 | (89) |
Net current-period OCI | 71 | 119 | (89) |
Ending Balance | $ 348 | $ 277 | $ 277 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ 868,351 | $ 789,707 |
Fair value of derivatives, tax | 2,771 | 1,544 |
Pension liability, tax | 12,076 | 27,114 |
Cumulative foreign currency translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (134,960) | (112,907) |
Fair value of derivatives, net of tax of $2,771 and $1,544, respectively | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | 8,538 | 2,415 |
Minimum pension liabilities, net of tax of $12,076 and $27,114, respectively | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | (37,876) | (43,623) |
Accumulated Other Comprehensive (Loss) Income (net of tax) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income | $ (164,298) | $ (154,115) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivatives | |||
Interest expense | $ (37,427) | $ (26,371) | $ (24,344) |
Income before income tax | 97,993 | 96,287 | 95,234 |
Income tax benefit (provision) | 9,118 | (22,354) | (29,073) |
Net income | 107,111 | 73,933 | 66,161 |
Prior service (cost) credit | |||
Postretirement benefit plans | |||
Income before income tax | 333 | 376 | 378 |
Actuarial losses | |||
Postretirement benefit plans | |||
Income before income tax | (7,018) | (10,034) | (7,468) |
Postretirement Benefit Plans | |||
Postretirement benefit plans | |||
Income before income tax | (6,685) | (9,658) | (7,090) |
Income taxes | (1,638) | (3,767) | (2,765) |
Net income | (5,047) | (5,891) | (4,325) |
Derivatives | |||
Postretirement benefit plans | |||
Net income | 1,042 | 1,069 | (1,919) |
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivatives | |||
Interest expense | 1,380 | 1,752 | (3,146) |
Income before income tax | 1,380 | 1,752 | (3,146) |
Income tax benefit (provision) | (338) | (683) | 1,227 |
Net income | $ 1,042 | $ 1,069 | $ (1,919) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Federal statutory tax rate | 24.50% | 35.00% | 35.00% |
Provisional net tax benefit | $ 29,150 | ||
Tax benefit recognized during the year | 38,010 | ||
One-time transition tax expense | 8,860 | ||
Income tax expense (benefit) | (9,118) | $ 22,354 | $ 29,073 |
Foreign subsidiaries income before income taxes | 56,424 | 24,118 | $ 48,864 |
Undistributed earnings of foreign subsidiaries | 289,702 | ||
Valuation allowances | (14,137) | (20,866) | |
Unrecognized tax benefits | 10,718 | ||
Change in unrecognized tax benefits | 2,786 | ||
Total penalties and interest accrued | 2,229 | $ 1,779 | |
Capital Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of tax credit carryforward | 20,370 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of operating loss carryforwards | 60,705 | ||
Amount of tax credit carryforward | 2,934 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of operating loss carryforwards | $ 4,684 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current: | |||
Federal | $ (2,577) | $ 1,542 | $ 18,733 |
State | 1,051 | 628 | 1,829 |
Foreign | 15,533 | 10,459 | 12,482 |
Total provision for income taxes, current | 14,007 | 12,629 | 33,044 |
Deferred: | |||
Federal | (24,094) | 11,887 | (3,066) |
State | 1,315 | 905 | (2,412) |
Foreign | (346) | (3,067) | 1,507 |
Deferred | (23,125) | 9,725 | (3,971) |
Total | $ (9,118) | $ 22,354 | $ 29,073 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Federal Statutory Tax Rate to Consolidated Effective Tax Rate (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 24.50% | 35.00% | 35.00% |
Effect of state income taxes, net of federal deduction | 2.20% | 1.40% | (0.60%) |
Foreign taxes less than federal statutory rate | 1.40% | (7.20%) | (3.50%) |
Share-based compensation | (0.60%) | (1.20%) | 0.00% |
U.S. manufacturing incentive | (1.30%) | (1.80%) | (0.90%) |
Tax credits | (2.70%) | (2.60%) | 0.90% |
Tax deductible basis difference | (1.50%) | 0.00% | 0.00% |
Transition tax | 9.00% | 0.00% | 0.00% |
U.S. statutory tax rate change on temporary differences | (38.70%) | 0.00% | 0.00% |
Other | (1.60%) | (0.40%) | (0.40%) |
Effective tax rate | (9.30%) | 23.20% | 30.50% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 24,597 | $ 45,654 |
Accruals and reserves not currently deductible | 9,596 | 20,579 |
Income tax credit carryforward | 3,216 | 3,313 |
Operating and capital loss carryforwards | 20,807 | 23,610 |
Stock options | 5,157 | 8,614 |
Other | 3,963 | 2,782 |
Total deferred tax assets | 67,336 | 104,552 |
Valuation allowances | (14,137) | (20,866) |
Net deferred tax assets | 53,199 | 83,686 |
Deferred tax liabilities: | ||
Depreciation | (16,156) | (4,763) |
Unrealized gains and losses | (8,637) | (10,446) |
Goodwill and intangible assets | (147,571) | (203,957) |
Other | (517) | (1,494) |
Deferred tax liabilities | (172,881) | (220,660) |
Net deferred tax liability | $ (119,682) | $ (136,974) |
INCOME TAXES - Changes in Gross
INCOME TAXES - Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 7,968 | $ 13,820 | $ 4,086 |
Increases for tax positions of prior years | 7,886 | 839 | 5,762 |
Decreases for tax positions of prior years | 0 | (5,890) | (166) |
Increases based on tax positions related to the current year | 882 | 378 | 5,456 |
Decreases due to lapse of statute of limitation | (1,909) | (1,179) | (1,318) |
Balance, end of year | $ 14,827 | $ 7,968 | $ 13,820 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Annual rental expense under operating leases | $ 38,934 | $ 36,400 | $ 32,716 |
Future minimum rental commitments under operating leases [Abstract] | |||
Fiscal year 2019 | 23,183 | ||
Fiscal year 2020 | 18,576 | ||
Fiscal year 2021 | 14,055 | ||
Fiscal year 2022 | 8,947 | ||
Fiscal year 2023 | 5,333 | ||
Employment Agreements | |||
Long-term Purchase Commitment [Line Items] | |||
Aggregate commitment amount for salaries | $ 6,811 |
ENVIRONMENTAL MATTERS (Details)
ENVIRONMENTAL MATTERS (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Environmental Remediation Obligations [Abstract] | |
Environmental remediation accrual | $ 2,000 |
Environmental remediation accrual classified in other current liabilities | $ 585 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current assets: | |||
Accounts receivable | $ (790) | $ (7,045) | $ (10,632) |
Inventories | (2,869) | (2,289) | 10,453 |
Other current assets | (16,293) | 4,447 | 12,434 |
Total change in current assets | (19,952) | (4,887) | 12,255 |
Current liabilities: | |||
Trade accounts payable | 2,516 | 5,672 | (11,083) |
Accrued compensation | (10,940) | (2,469) | 147 |
Accrued income taxes | (9,973) | 5,054 | 4,079 |
Other current liabilities | 28,415 | 2,414 | 8,317 |
Total change in current liabilities | 10,018 | 10,671 | 1,460 |
Net change | $ (9,934) | $ 5,784 | $ 13,715 |
SEGMENT INFORMATION - Informati
SEGMENT INFORMATION - Information about the Company's Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reporting segments | segment | 3 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 407,444 | $ 411,621 | $ 414,061 | $ 369,454 | $ 396,064 | $ 389,630 | $ 380,916 | $ 348,998 | $ 1,602,580 | $ 1,515,608 | $ 1,480,464 |
Depreciation and amortization | 76,974 | 67,981 | 65,480 | ||||||||
Operating profit | 47,224 | $ 37,895 | $ 29,791 | $ 17,924 | 29,926 | $ 36,786 | $ 26,828 | $ 19,063 | 132,834 | 112,603 | 118,815 |
Total assets | 2,375,485 | 2,244,649 | 2,375,485 | 2,244,649 | 2,091,041 | ||||||
Capital expenditures | 43,200 | 44,935 | 41,682 | ||||||||
SGK Brand Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 805,274 | 770,181 | 755,975 | ||||||||
Memorialization | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 631,392 | 615,882 | 610,142 | ||||||||
Industrial Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 165,914 | 129,545 | 114,347 | ||||||||
Operating Segments | SGK Brand Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 47,055 | 41,941 | 41,238 | ||||||||
Operating profit | 35,443 | 24,919 | 42,909 | ||||||||
Total assets | 1,300,785 | 1,276,295 | 1,300,785 | 1,276,295 | 1,177,816 | ||||||
Capital expenditures | 22,133 | 22,941 | 22,043 | ||||||||
Operating Segments | Memorialization | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 20,005 | 19,808 | 19,223 | ||||||||
Operating profit | 86,370 | 80,652 | 68,252 | ||||||||
Total assets | 814,800 | 741,148 | 814,800 | 741,148 | 735,985 | ||||||
Capital expenditures | 15,513 | 8,078 | 11,870 | ||||||||
Operating Segments | Industrial Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 5,796 | 2,863 | 2,503 | ||||||||
Operating profit | 11,021 | 7,032 | 7,654 | ||||||||
Total assets | 198,864 | 161,472 | 198,864 | 161,472 | 122,179 | ||||||
Capital expenditures | 2,577 | 4,622 | 3,461 | ||||||||
Intersegment Sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 321 | 358 | 488 | ||||||||
Intersegment Sales | SGK Brand Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 310 | 356 | 346 | ||||||||
Intersegment Sales | Memorialization | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2 | 0 | 43 | ||||||||
Intersegment Sales | Industrial Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 9 | 2 | 99 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 4,118 | 3,369 | 2,516 | ||||||||
Total assets | $ 61,036 | $ 65,734 | 61,036 | 65,734 | 55,061 | ||||||
Capital expenditures | $ 2,977 | $ 9,294 | $ 4,308 |
SEGMENT INFORMATION - Informa_2
SEGMENT INFORMATION - Information about the Company's Operations by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 407,444 | $ 411,621 | $ 414,061 | $ 369,454 | $ 396,064 | $ 389,630 | $ 380,916 | $ 348,998 | $ 1,602,580 | $ 1,515,608 | $ 1,480,464 |
Long-lived assets | 1,645,579 | 1,557,709 | 1,645,579 | 1,557,709 | 1,464,822 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,066,367 | 1,043,924 | 1,045,718 | ||||||||
Long-lived assets | 1,182,250 | 1,069,862 | 1,182,250 | 1,069,862 | 1,042,263 | ||||||
Central and South America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 6,171 | 6,518 | 10,160 | ||||||||
Long-lived assets | 16,535 | 13,882 | 16,535 | 13,882 | 13,267 | ||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 456,078 | 396,242 | 360,678 | ||||||||
Long-lived assets | 365,455 | 382,940 | 365,455 | 382,940 | 334,847 | ||||||
Australia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 23,276 | 21,507 | 20,043 | ||||||||
Long-lived assets | 23,037 | 24,887 | 23,037 | 24,887 | 23,768 | ||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 50,688 | 47,417 | 43,865 | ||||||||
Long-lived assets | $ 58,302 | $ 66,138 | $ 58,302 | $ 66,138 | $ 50,677 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ in Thousands, € in Millions | Feb. 01, 2018USD ($) | Nov. 28, 2017USD ($) | Mar. 01, 2017USD ($) | Mar. 01, 2017EUR (€) | Feb. 28, 2017USD ($) | Jan. 13, 2017USD ($) | Jan. 13, 2017EUR (€) | Jan. 03, 2017USD ($) | Jan. 03, 2017EUR (€) | Nov. 30, 2016USD ($) | Nov. 30, 2016EUR (€) | Feb. 01, 2016USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||
Cash payment to acquire business | $ 121,065 | $ 98,235 | $ 6,937 | |||||||||||||
Goodwill | $ 948,894 | $ 897,794 | $ 851,489 | |||||||||||||
Star Granite Bronze International, Inc | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Total purchase price of Star Granite and Bronze International, Inc. | $ 34,713 | |||||||||||||||
Cash payment to acquire business | 29,713 | |||||||||||||||
Shares issued in business acquisition | 5,000 | |||||||||||||||
Annual sales of business before acquisition | $ 31,000 | |||||||||||||||
Compass Engineering Group, Inc | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Cash payment to acquire business | $ 51,887 | |||||||||||||||
Annual sales of business before acquisition | $ 24,000 | |||||||||||||||
Series of Individually Immaterial Business Acquisitions | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Cash payment to acquire business | $ 39,465 | |||||||||||||||
GJ Creative Limited | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price of acquisition | $ 37,596 | € 30.5 | ||||||||||||||
Annual sales of business before acquisition | $ 30,000 | |||||||||||||||
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 | ||||||||||||||
Annual sales of business before acquisition | $ 35 | |||||||||||||||
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 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 908,546 | $ 862,241 | |
Accumulated impairment losses | (10,752) | (10,752) | $ (10,752) |
Goodwill | 897,794 | 851,489 | |
Additions during period | 60,679 | 33,213 | |
Translation and other adjustments | (9,579) | 13,092 | |
Goodwill | 959,646 | 908,546 | |
Goodwill | 948,894 | 897,794 | |
SGK Brand Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill | 491,895 | 458,510 | |
Accumulated impairment losses | (5,752) | (5,752) | (5,752) |
Goodwill | 486,143 | 452,758 | |
Additions during period | 8,743 | 21,361 | |
Translation and other adjustments | (9,568) | 12,024 | |
Goodwill | 491,070 | 491,895 | |
Goodwill | 485,318 | 486,143 | |
Memorialization | |||
Goodwill [Roll Forward] | |||
Goodwill | 347,507 | 347,116 | |
Accumulated impairment losses | (5,000) | (5,000) | (5,000) |
Goodwill | 342,507 | 342,116 | |
Additions during period | 29,059 | 158 | |
Translation and other adjustments | (16) | 233 | |
Goodwill | 376,550 | 347,507 | |
Goodwill | 371,550 | 342,507 | |
Industrial Technologies | |||
Goodwill [Roll Forward] | |||
Goodwill | 69,144 | 56,615 | |
Accumulated impairment losses | 0 | 0 | $ 0 |
Goodwill | 69,144 | 56,615 | |
Additions during period | 22,877 | 11,694 | |
Translation and other adjustments | 5 | 835 | |
Goodwill | 92,026 | 69,144 | |
Goodwill | $ 92,026 | $ 69,144 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 572,800 | $ 522,408 |
Accumulated Amortization | (128,890) | (98,026) |
Net | 443,910 | 424,382 |
Trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 126,047 | 168,467 |
Net | 126,047 | 168,467 |
Trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 53,523 | 5,522 |
Accumulated Amortization | (5,444) | (2,030) |
Net | 48,079 | 3,492 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 372,382 | 333,632 |
Accumulated Amortization | (110,760) | (84,560) |
Net | 261,622 | 249,072 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 20,848 | 14,787 |
Accumulated Amortization | (12,686) | (11,436) |
Net | $ 8,162 | $ 3,351 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense on intangible assets | $ 31,562 | $ 23,313 | $ 20,821 |
Future amortization expense [Abstract] | |||
Future amortization expense 2019 | 32,128 | ||
Future amortization expense 2020 | 30,388 | ||
Future amortization expense 2021 | 28,976 | ||
Future amortization expense 2022 | 27,387 | ||
Future amortization expense 2023 | $ 25,815 |
RELATED PARTY TRANSACTION REL_2
RELATED PARTY TRANSACTION RELATED PARTY TRANSACTION - Narrative (Details) - $ / shares | May 12, 2016 | May 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Related Party Transaction [Line Items] | |||||
Purchase of common shares (in shares) | 393,864 | 212,424 | 1,132,452 | ||
Schawk Inc | Director and President | |||||
Related Party Transaction [Line Items] | |||||
Purchase of common shares (in 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 INFOR_3
SUPPLEMENTARY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Sales | $ 407,444 | $ 411,621 | $ 414,061 | $ 369,454 | $ 396,064 | $ 389,630 | $ 380,916 | $ 348,998 | $ 1,602,580 | $ 1,515,608 | $ 1,480,464 |
Gross profit | 148,784 | 151,901 | 149,966 | 130,699 | 153,604 | 144,094 | 138,422 | 127,267 | 581,350 | 563,387 | 556,454 |
Operating profit | 47,224 | 37,895 | 29,791 | 17,924 | 29,926 | 36,786 | 26,828 | 19,063 | 132,834 | 112,603 | 118,815 |
Net income attributable to Matthews shareholders | $ 29,595 | $ 24,414 | $ 18,182 | $ 35,180 | $ 19,641 | $ 29,485 | $ 14,920 | $ 10,322 | $ 107,371 | $ 74,368 | $ 66,749 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.94 | $ 0.77 | $ 0.57 | $ 1.11 | $ 0.61 | $ 0.91 | $ 0.46 | $ 0.32 | $ 3.39 | $ 2.31 | $ 2.04 |
Diluted (in dollars per share) | $ 0.93 | $ 0.77 | $ 0.57 | $ 1.10 | $ 0.60 | $ 0.91 | $ 0.46 | $ 0.32 | $ 3.37 | $ 2.28 | $ 2.03 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for Doubtful Accounts | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | $ 11,622 | $ 11,516 | $ 10,015 |
Additions charged to expense | 855 | 1,733 | 3,055 |
Additions charged to other Accounts | 762 | 642 | 435 |
Deductions | (2,081) | (2,269) | (1,989) |
Balance at End of Period | 11,158 | 11,622 | 11,516 |
Deferred Tax Asset Valuation Allowance | |||
Valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | 20,866 | 22,412 | 20,977 |
Additions charged to expense | 2,482 | (1,279) | 2,438 |
Additions charged to other Accounts | (8,510) | 0 | 0 |
Deductions | (701) | (267) | (1,003) |
Balance at End of Period | $ 14,137 | $ 20,866 | $ 22,412 |