SEGMENT INFORMATION | SEGMENT INFORMATION: The Company manages its businesses under three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. 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. Beginning in fiscal 2019, the Company changed its primary measure of segment profitability from operating profit to adjusted earnings before interest, income taxes, depreciation and amortization ("adjusted EBITDA"). Adjusted EBITDA is defined by the Company as earnings before interest, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of its operating results. These items include stock-based compensation, the non-service portion of pension and postretirement expense, acquisition costs, ERP integration costs, and strategic initiatives and other charges. This presentation is consistent with how the Company's chief operating decision maker (the “CODM”) evaluates the results of operations and makes strategic decisions about the business. For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss. In addition, the CODM manages and evaluates the operating performance of the segments, as described above, on a pre-corporate cost allocation basis. Accordingly, for segment reporting purposes, the Company has discontinued allocating corporate costs to its reportable segments beginning in fiscal 2019. Corporate costs include management and administrative support to the Company, which consists of certain aspects of the Company’s executive management, legal, compliance, human resources, information technology (including operational support) and finance departments. These costs are included within "Corporate and Non-Operating" in the following table to reconcile to consolidated adjusted EBITDA and are not considered a separate reportable segment. Management does not allocate non-operating items such as investment income, other income (deductions), net and noncontrolling interest to 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. Segment assets include those assets that are used in the Company's operations within each segment. Assets classified under "Corporate and Non-Operating" 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: (Segment financial information for the fiscal years ended September 30, 2018 and 2017 has been revised to present the prior period information on a comparable basis.) SGK Brand Solutions Memorialization Industrial Technologies Corporate and Non-Operating Consolidated Sales to external customers: 2019 $ 743,869 $ 636,892 $ 156,515 $ — $ 1,537,276 2018 805,274 631,392 165,914 — 1,602,580 2017 770,181 615,882 129,545 — 1,515,608 Intersegment sales: 2019 703 25 48 — 776 2018 310 2 9 — 321 2017 356 — 2 — 358 Depreciation and amortization: 2019 59,684 19,731 6,195 5,183 90,793 2018 46,300 20,005 5,796 4,873 76,974 2017 41,941 19,808 2,863 3,369 67,981 Adjusted EBITDA: 2019 119,493 134,286 24,082 (56,989 ) 220,872 2018 150,233 145,487 25,864 (66,470 ) 255,114 2017 144,783 139,192 18,481 (63,773 ) 238,683 Total assets: 2019 1,106,276 830,377 191,533 62,417 2,190,603 2018 1,285,053 814,800 196,855 61,036 2,357,744 2017 1,276,295 741,148 161,472 65,734 2,244,649 Capital expenditures: 2019 22,310 9,352 2,382 3,644 37,688 2018 22,133 15,513 2,577 2,977 43,200 2017 22,941 8,078 4,622 9,294 44,935 A reconciliation of adjusted EBITDA to net income follows: 2019 2018 2017 Total Adjusted EBITDA 220,872 255,114 238,683 Acquisition costs (1)** $ (10,872 ) $ (10,918 ) $ (17,722 ) ERP integration costs (2)** (7,508 ) (10,864 ) (8,026 ) Strategic initiatives and other charges (3)** (13,449 ) (5,266 ) (9,209 ) Loss recoveries, net of costs (4) — — 10,683 Joint Venture depreciation, amortization and interest expense (5) (1,514 ) — — Goodwill write-down (6) (77,572 ) — — Net realized (losses) gains on divestitures and asset dispositions: Loss on divestitures (7) (6,469 ) — — Realized (loss) gain on cost-method investments (8) (4,731 ) 3,771 — Net gains from the sale of buildings and vacant properties (9) 7,347 — — Stock-based compensation (7,729 ) (13,460 ) (14,562 ) Non-service pension and postretirement expense (10) (3,802 ) (5,723 ) (8,773 ) Depreciation and amortization * (90,793 ) (76,974 ) (67,981 ) Interest expense (40,962 ) (37,427 ) (26,371 ) Net loss attributable to noncontrolling interests (901 ) (260 ) (435 ) (Loss) income before income taxes $ (38,083 ) 97,993 96,287 Income tax (provision) benefit (806 ) 9,118 (22,354 ) Net (loss) income (38,889 ) 107,111 73,933 (1) Includes certain non-recurring costs associated with recent acquisition activities. (2) Represents costs associated with global ERP system integration efforts. (3) Includes certain non-recurring costs primarily associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (4) Represents loss recoveries, net of related costs, related to the theft of funds by a former employee. (5) Represents the Company's portion of depreciation, intangible amortization and interest expense incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment. (6) Represents the goodwill write-down for a reporting unit within the SGK Brand Solutions segment. (7) Represents a loss on the sale of a controlling interest in a subsidiary and divestiture of a business within the Memorialization segment. (8) Includes gains/losses related to cost-method investments, and related assets, within SGK Brand Solutions and Memorialization segments. (9) Includes significant building and vacant property transactions resulting in a gain of $8,663 within the Industrial Technologies segment and losses of $915 and $401 within the SGK Brand Solutions and Memorialization segments, respectively. (10) Non-service pension and postretirement expense includes interest cost, expected return on plan assets and amortization of actuarial gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans. * Depreciation and amortization was $59,684 , $46,300 , and $41,941 for the SGK Brand Solutions segment, $19,731 , $20,005 , and $19,808 for the Memorialization segment, $6,195 , $5,796 , and $2,863 for the Industrial Technologies segment, and $5,183 , $4,873 , and $3,369 for Corporate and Non-Operating, for the fiscal years ended September 30, 2019 , 2018 , and 2017 , respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $8,903 , $11,044 , and $14,453 for the SGK Brand Solutions segment, $3,073 , $613 , and $612 for the Industrial Technologies segment, and $19,853 , $13,961 , and $19,050 for Corporate and Non-Operating, for the fiscal years ended September 30, 2019 , 2018 , and 2017 , respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $1,430 , and $842 for the Memorialization segment for the fiscal years ended September 30, 2018 , and 2017 , respectively. Information about the Company's operations by geographic area follows: North America Central and South America Europe Australia Asia Consolidated Sales to external customers: 2019 $ 1,038,268 $ 5,853 $ 426,253 $ 20,885 $ 46,017 $ 1,537,276 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 Long-lived assets: 2019 1,047,505 15,585 342,802 21,278 57,729 1,484,899 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 |