Cover Page
Cover Page | 3 Months Ended |
Dec. 31, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Entity File Number | 0-09115 |
Entity Registrant Name | MATTHEWS INTERNATIONAL CORP |
Entity Incorporation, State or Country Code | PA |
Entity Tax Identification Number | 25-0644320 |
Entity Address, Address Line One | Two Northshore Center, |
Entity Address, City or Town | Pittsburgh, |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 15212‑5851 |
City Area Code | (412) |
Local Phone Number | 442-8200 |
Title of 12(b) Security | Class A Common Stock, $1.00 par value |
Trading Symbol | MATW |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 31,290,095 |
Entity Central Index Key | 0000063296 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 39,384 | $ 35,302 |
Accounts receivable, net | 312,903 | 318,756 |
Inventories, net | 185,608 | 180,274 |
Other current assets | 56,453 | 49,384 |
Total current assets | 594,348 | 583,716 |
Investments | 91,286 | 85,501 |
Property, plant and equipment, net | 239,240 | 237,442 |
Deferred income taxes | 5,155 | 5,032 |
Other assets | 112,405 | 31,455 |
Goodwill | 856,989 | 846,807 |
Other intangible assets, net | 385,156 | 400,650 |
Total assets | 2,284,579 | 2,190,603 |
Current liabilities: | ||
Long-term debt, current maturities | 25,532 | 42,503 |
Trade accounts payable | 62,786 | 74,558 |
Accrued compensation | 33,450 | 42,545 |
Accrued income taxes | 1,164 | 5,997 |
Other current liabilities | 160,344 | 114,276 |
Total current liabilities | 283,276 | 279,879 |
Long-term debt | 941,395 | 898,194 |
Accrued pension | 135,790 | 133,762 |
Postretirement benefits | 19,986 | 19,963 |
Deferred income taxes | 105,710 | 102,482 |
Other liabilities | 82,717 | 37,087 |
Total liabilities | 1,568,874 | 1,471,367 |
Shareholders' equity-Matthews: | ||
Common stock | 36,334 | 36,334 |
Additional paid-in capital | 140,526 | 137,774 |
Retained earnings | 955,593 | 972,594 |
Accumulated other comprehensive loss | (215,232) | (228,361) |
Treasury stock, at cost | (202,801) | (200,235) |
Total shareholders' equity-Matthews | 714,420 | 718,106 |
Noncontrolling interests | 1,285 | 1,130 |
Total shareholders' equity | 715,705 | 719,236 |
Total liabilities and shareholders' equity | $ 2,284,579 | $ 2,190,603 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Sales | $ 364,944 | $ 374,177 |
Cost of sales | (249,217) | (247,766) |
Gross profit | 115,727 | 126,411 |
Selling expense | (32,263) | (35,029) |
Administrative expense | (70,465) | (67,103) |
Intangible amortization | (17,942) | (8,113) |
Operating (loss) profit | (4,943) | 16,166 |
Investment income (loss) | 1,299 | (1,352) |
Interest expense | (9,240) | (10,301) |
Other income (deductions), net | (2,819) | (924) |
(Loss) income before income taxes | (15,703) | 3,589 |
Income tax benefit (provision) | 5,397 | (605) |
Net (loss) income | (10,306) | 2,984 |
Net (income) loss attributable to noncontrolling interests | (160) | 113 |
Net (loss) income attributable to Matthews shareholders | $ (10,466) | $ 3,097 |
(Loss) earnings per share attributable to Matthews shareholders: | ||
Basic (in dollars per share) | $ (0.34) | $ 0.10 |
Diluted (in dollars per share) | $ (0.34) | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net (loss) income attributable to Matthews shareholders | $ (10,466) | $ 3,097 |
Net income (loss) attributable to noncontrolling interests | 160 | (113) |
Net (loss) income | (10,306) | 2,984 |
Unrecognized gain (loss) on derivatives: | ||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 13,129 | (14,736) |
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | (5) | (13) |
OCI, net of tax | 13,124 | (14,749) |
Comprehensive (loss) income attributable to Matthews shareholders | 2,663 | (11,639) |
Comprehensive (loss) income attributable to noncontrolling interest | 155 | (126) |
Comprehensive income (loss) | 2,818 | (11,765) |
Foreign Currency Translation Adjustment, Matthews | ||
Unrecognized gain (loss) on derivatives: | ||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 11,111 | (12,564) |
Net change from periodic revaluation | 11,111 | (12,564) |
Net amount reclassified to earnings | 0 | 0 |
OCI, net of tax | 11,111 | (12,564) |
Pension Plans and Other Postretirement Benefits, Matthews | ||
Unrecognized gain (loss) on derivatives: | ||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 1,727 | 729 |
Net Investment Gain (Loss), Matthews | ||
Unrecognized gain (loss) on derivatives: | ||
Net change from periodic revaluation | 566 | (2,346) |
Net amount reclassified to earnings | (275) | (555) |
Gain (Loss), Net, Derivatives, Matthews | ||
Unrecognized gain (loss) on derivatives: | ||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 291 | (2,901) |
Foreign Currency Translation Adjustment, Noncontrolling Interest | ||
Unrecognized gain (loss) on derivatives: | ||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | (5) | (13) |
Net change from periodic revaluation | (5) | (13) |
OCI, net of tax | (5) | (13) |
Pension Plans and Other Postretirement Benefits, Noncontrolling Interest | ||
Unrecognized gain (loss) on derivatives: | ||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 |
Net Investment Gain (Loss), Noncontrolling Interest | ||
Unrecognized gain (loss) on derivatives: | ||
Net change from periodic revaluation | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 |
Gain (Loss), Net, Derivatives, Noncontrolling Interest | ||
Unrecognized gain (loss) on derivatives: | ||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 |
Foreign Currency Translation Adjustment | ||
Unrecognized gain (loss) on derivatives: | ||
OCI, net of tax | 11,106 | (12,577) |
Pension Plans and Other Postretirement Benefits | ||
Unrecognized gain (loss) on derivatives: | ||
OCI, net of tax | 1,727 | 729 |
Net Investment Gain (Loss), Noncontrolling Interest | ||
Unrecognized gain (loss) on derivatives: | ||
Net change from periodic revaluation | 566 | (2,346) |
Net amount reclassified to earnings | (275) | (555) |
Gain (Loss), Net, Derivatives | ||
Unrecognized gain (loss) on derivatives: | ||
OCI, net of tax | $ 291 | $ (2,901) |
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 | Treasury Stock | Non- controlling Interests |
Beginning balance at Sep. 30, 2018 | $ 868,714 | $ 36,334 | $ 129,252 | $ 1,040,378 | $ (164,298) | $ (173,315) | $ 363 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 2,984 | 3,097 | (113) | ||||
Minimum pension liability | 729 | 729 | |||||
Translation adjustment | (12,577) | (12,564) | (13) | ||||
Fair value of derivatives | (2,901) | (2,901) | |||||
Comprehensive income (loss) | (11,765) | ||||||
Stock-based compensation | 3,647 | 3,647 | |||||
Purchase of treasury stock | (7,751) | (7,751) | |||||
Issuance of treasury stock | 0 | (115) | 115 | ||||
Cancellations of treasury stock | 0 | 891 | (891) | ||||
Dividends | (6,414) | (6,414) | |||||
Acquisitions | 1,760 | 1,760 | |||||
Ending balance at Dec. 31, 2018 | 844,015 | 36,334 | 133,675 | 1,032,885 | (179,034) | (181,842) | 1,997 |
Beginning balance at Sep. 30, 2019 | 719,236 | 36,334 | 137,774 | 972,594 | (228,361) | (200,235) | 1,130 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (10,306) | (10,466) | 160 | ||||
Minimum pension liability | 1,727 | 1,727 | |||||
Translation adjustment | 11,106 | 11,111 | (5) | ||||
Fair value of derivatives | 291 | 291 | |||||
Comprehensive income (loss) | 2,818 | ||||||
Stock-based compensation | 2,031 | 2,031 | |||||
Purchase of treasury stock | (1,845) | (1,845) | |||||
Issuance of treasury stock | 0 | (450) | 450 | ||||
Cancellations of treasury stock | 0 | 1,171 | (1,171) | ||||
Dividends | (6,535) | (6,535) | |||||
Ending balance at Dec. 31, 2019 | $ 715,705 | $ 36,334 | $ 140,526 | $ 955,593 | $ (215,232) | $ (202,801) | $ 1,285 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Purchase of treasury stock (in shares) | 52,104 | 186,417 |
Issuance of treasury stock (in shares) | 11,225 | 2,822 |
Cancellations of treasury stock (in shares) | 17,509 | 19,433 |
Dividends, per share (in dollars per share) | $ 0.21 | $ 0.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (10,306) | $ 2,984 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,933 | 19,226 |
Stock-based compensation expense | 2,031 | 3,647 |
Deferred tax provision | 2,392 | 1,050 |
Gain on sale of assets, net | 0 | (58) |
Loss on divestiture | 0 | 4,465 |
Unrealized (gain) loss on investments in mutual funds | (1,048) | 1,990 |
Loss from equity-method investments | 407 | 0 |
Changes in working capital items | (13,182) | (21,060) |
(Increase) decrease in other assets | (1,495) | 1,426 |
Decrease in other liabilities | (1,073) | (159) |
Other operating activities, net | (1,302) | (5,125) |
Net cash provided by operating activities | 5,357 | 8,386 |
Cash flows from investing activities: | ||
Capital expenditures | (9,722) | (8,458) |
Acquisitions, net of cash acquired | 0 | (8,404) |
Proceeds from sale of assets | 63 | 361 |
Proceeds from divestiture | 0 | 8,254 |
Purchases of investments | (4,570) | (7,371) |
Net cash used in investing activities | (14,229) | (15,618) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 153,567 | 149,366 |
Payments on long-term debt | (131,931) | (128,659) |
Purchases of treasury stock | (1,845) | (7,751) |
Dividends | (6,535) | (6,414) |
Acquisition holdback and contingent consideration payments | (652) | 0 |
Other financing activities | (688) | (724) |
Net cash provided by financing activities | 11,916 | 5,818 |
Effect of exchange rate changes on cash | 1,038 | (322) |
Net change in cash and cash equivalents | $ 4,082 | $ (1,736) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information for commercial and industrial companies and the instructions to Form 10‑Q and Rule 10‑01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10‑K for the year ended September 30, 2019 . 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. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements: Issued In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) which simplifies the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in Topic 740 and also simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2022. The Company is currently assessing the impact of the ASU on its financial statements. In August 2018, the FASB issued 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each report date. 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. Note 2. Basis of Presentation (continued) Adopted 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. The adoption of this ASU in the first quarter ended December 31, 2019 had no 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. The adoption of this ASU in the first quarter ended December 31, 2019 had no 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. Subsequently, the FASB issued several 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 , ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and ASU 2019-01, Leases (Topic 842): Codification 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 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. The Company adopted the standard using the transition method as of October 1, 2019. Under this approach, the Company recognized and recorded right-of-use ("ROU") assets and related lease liabilities on the Consolidated Balance Sheet of approximately $80 million with no impact to retained earnings. Reporting periods prior to October 1, 2019 continue to be presented in accordance with previous lease accounting guidance under GAAP. As part of the adoption, the Company elected the package of practical expedients permitted under the transition guidance which includes the ability to carry forward historical lease classification. Refer to Note 8, “Leases,” for a further discussion. |
Nature of Operations
Nature of Operations | 3 Months Ended |
Dec. 31, 2019 | |
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 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. Memorialization products consist primarily of bronze and granite memorials and other memorialization products, caskets, and cremation and incineration 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 North America, Europe, Asia, Australia, and Central and South America. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company delivers a variety of products and services through its business segments. The SGK Brand Solutions segment delivers brand management, pre-media services, printing plates and cylinders, engineered products, and imaging services for consumer goods and retail customers, merchandising display systems, and marketing and design services primarily to the consumer goods and retail industries. The Memorialization segment produces and delivers bronze and granite memorials and other memorialization products, caskets, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment delivers marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products for the warehousing and industrial industries. Note 3. Revenue Recognition (continued) The Company disaggregates revenue from contracts with customers by geography, as it believes geographic regions best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Disaggregated sales by segment and region for the three months ended December 31, 2019 and 2018 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, 2019 2018 2019 2018 2019 2018 2019 2018 North America $ 76,230 $ 79,582 $ 144,045 $ 143,293 $ 28,299 $ 27,714 $ 248,574 $ 250,589 Central and South America 1,836 1,217 — — — — 1,836 1,217 Europe 82,413 90,518 7,829 8,158 6,926 6,337 97,168 105,013 Australia 3,002 2,959 2,531 2,435 — — 5,533 5,394 Asia 11,399 11,024 — — 434 940 11,833 11,964 Total Sales $ 174,880 $ 185,300 $ 154,405 $ 153,886 $ 35,659 $ 34,991 $ 364,944 $ 374,177 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level fair value hierarchy is used to prioritize the inputs used in valuations, as defined below: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: December 31, 2019 September 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 669 $ — $ 669 $ — $ 845 $ — $ 845 Equity and fixed income mutual funds — 24,014 — 24,014 — 22,986 — 22,986 Life insurance policies — 4,089 — 4,089 — 4,030 — 4,030 Total assets at fair value $ — $ 28,772 $ — $ 28,772 $ — $ 27,861 $ — $ 27,861 Liabilities: Derivatives (1) $ — $ 818 $ — $ 818 $ — $ 1,379 $ — $ 1,379 Total liabilities at fair value $ — $ 818 $ — $ 818 $ — $ 1,379 $ — $ 1,379 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, 2019 September 30, 2019 Raw materials $ 38,220 $ 35,616 Work in process 79,108 76,297 Finished goods 68,280 68,361 $ 185,608 $ 180,274 |
Investments
Investments | 3 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Non-current investments consisted of the following: December 31, 2019 September 30, 2019 Equity and fixed income mutual funds $ 24,014 $ 22,986 Life insurance policies 4,089 4,030 Equity-method investments 44,273 39,761 Cost-method investments 18,910 18,724 $ 91,286 $ 85,501 During fiscal 2020, the Company made additional investments in a non-consolidated subsidiary totaling $ 4,900 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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. A portion of the revolving credit facility (not to exceed $150,000 ) can be drawn in foreign currencies. 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. Pursuant to the terms of the domestic credit facility agreement, principal payments may be made on the term loan prior to the scheduled due dates. 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 (Euro LIBOR for balances drawn in Euros) plus a factor ranging from 0.75% to 2.00% ( 1.50% at December 31, 2019 ) based on the Company's secured leverage ratio. The secured leverage ratio is defined as net secured indebtedness divided by EBITDA (earnings before interest, income taxes, depreciation and amortization) as defined within the domestic credit facility agreement. 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 U.S. dollar denominated borrowings on the revolving credit facility at December 31, 2019 and September 30, 2019 were $351,689 and $325,638 , respectively. Outstanding Euro denominated borrowings on the revolving credit facility at December 31, 2019 and September 30, 2019 were €125.0 million ( $140,206 ) and €125.0 million ( $136,470 ), respectively. Outstanding borrowings on the term loan at December 31, 2019 and September 30, 2019 were $47,287 and $53,497 , respectively. The weighted-average interest rate on the outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at December 31, 2019 and December 31, 2018 was 2.60% and 3.06% , respectively. The Company has $300,000 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. 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 Company incurred direct financing fees and costs in connection with the 2025 Senior Notes. Unamortized costs were $3,150 and $3,284 at December 31, 2019 and September 30, 2019 , respectively. Note 7. Debt (continued) The Company has a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions which matures on April 11, 2020 and the Company intends to extend this facility. 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 December 31, 2019 and September 30, 2019 were $106,720 and $93,950 , respectively. At December 31, 2019 and 2018 , the interest rate on borrowings under this facility was 2.51% and 3.25% , respectively. The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: December 31, 2019 September 30, 2019 Pay fixed swaps - notional amount $ 287,500 $ 293,750 Net unrealized loss $ (149 ) $ (534 ) Weighted-average maturity period (years) 1.7 1.9 Weighted-average received rate 1.76 % 2.02 % Weighted-average pay rate 1.43 % 1.41 % 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 loss, net of unrealized gains, of $149 ( $112 after tax) at December 31, 2019 and an unrealized loss, net of unrealized gains, of $534 ( $403 after tax) at September 30, 2019 , that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Assuming market rates remain constant with the rates at December 31, 2019 , a gain (net of tax) of approximately $118 included in AOCI is expected to be recognized in earnings over the next twelve months. At December 31, 2019 and September 30, 2019 , the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives December 31, 2019 September 30, 2019 Current assets: Other current assets $ 473 $ 548 Long-term assets: Other assets 196 297 Current liabilities: Other current liabilities (316 ) (484 ) Long-term liabilities: Other liabilities (502 ) (895 ) Total derivatives $ (149 ) $ (534 ) Note 7. Debt (continued) The gains recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain Recognized in Income on Derivative Amount of Gain Recognized in Income on Derivatives Three Months Ended 2019 2018 Interest rate swaps Interest expense $ 364 $ 735 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 Reclassified From AOCI into Income (Effective Portion*) Amount of Gain Reclassified from AOCI into Income (Effective Portion*) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Interest rate swaps $ 566 $ (2,346 ) Interest expense $ 275 $ 555 *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 borrowing available under this facility is €35.0 million ( $39,258 ). In the first quarter of fiscal 2020, the Company extended this facility to a current maturity of December 2020 and the Company intends to continue to extend this facility. Outstanding borrowings under the credit facility totaled €18.4 million ( $20,680 ) and €12.8 million ( $14,024 ) at December 31, 2019 and September 30, 2019 , respectively. The weighted-average interest rate on outstanding borrowings under this facility at December 31, 2019 and 2018 was 1.25% . The Company’s German subsidiary, Matthews Europe GmbH, had €15.0 million ( $16,533 ) of senior unsecured notes with European banks. The notes matured in November 2019 at which point they were paid. The weighted-average interest rate on the notes at December 31, 2018 was 1.40% . Finance lease liabilities included as a component of debt totaled $3,495 and $3,631 at December 31, 2019 and September 30, 2019 , respectively. See Note 8, "Leases" for further discussion on the Company's lease obligations. Other debt totaled $395 at September 30, 2019 . The weighted-average interest rate on other debt was 5.54% at December 31, 2018 . The Company uses certain foreign currency debt instruments as net investment hedges of foreign operations. Currency losses of $499 (net of income taxes of $162 ) and $3,320 (net of income taxes of $1,077 ), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at December 31, 2019 and September 30, 2019 , respectively. In September 2014, a claim was filed by a customer seeking to draw upon a letter of credit issued by the Company of £8,570,000 ( $11,301 at December 31, 2019 ) 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 "U.K. Court"). Pursuant to this action, an order was issued by the U.K. Court in January 2015 requiring that, upon receipt by the customer, the funds were to be remitted by the customer to the U.K. 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 U.K. Court as ordered. On June 14, 2016, the U.K Court ruled completely in favor of Matthews following a trial on the merits. However, the ongoing dispute involves litigation in multiple foreign jurisdictions because the contract between the parties includes a venue clause requiring the venue for any litigation to be in the United Kingdom, while the enforcement of any final judgment is required to be executed in Saudi Arabia. The Company continues to pursue a trial on the merits in Saudi Arabia which is now scheduled to conclude in calendar year 2020. It is necessary to obtain an equivalent favorable ruling in the courts of Saudi Arabia to effectively enforce the judgment and commence collection efforts. The Company remains confident regarding the pending trial on the merits in Saudi Arabia and expects to be in a position to enforce the judgment and initiate collection efforts following completion of that trial. However, as the customer has neither yet remitted the funds nor complied with the final, un-appealed orders of the U.K. Court, it is possible the resolution of this matter could have an unfavorable financial impact on Matthews’ results of operations. The Company’s level of success in recovering Note 7. Debt (continued) funds from the customer will depend upon a number of factors including a successful completion of the pending trial on the merits in Saudi Arabia, the availability of recoverable funds, and the subsequent level of cooperation from the Saudi Arabian government to enforce a potential judgment against the customer. 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 December 31, 2019 and September 30, 2019 . The Company will continue to assess the accounting and collectability related to this matter as facts and circumstances evolve. As of December 31, 2019 and September 30, 2019 , the fair value of the Company's long-term debt, including current maturities, approximated the carrying value included in the Consolidated Balance Sheets. The Company was in compliance with all of its debt covenants as of December 31, 2019 . |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company’s lease portfolio includes various contracts for real estate, vehicles, information technology and other equipment. At contract inception, a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset, as well as the right to direct the use of that asset. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments, and a corresponding right-of-use asset. As a majority of the Company’s leases do not provide an implicit interest rate within the lease, an incremental borrowing rate is used to determine the ROU asset and lease liability which is based on information available at the commencement date. Options to purchase, extend or terminate a lease are included in the ROU asset and lease liability when it is reasonably certain an option will be exercised. Renewal options are most prevalent in the Company’s real estate leases. In general, the Company has not included renewal options for leases in the ROU asset and lease liability because the likelihood of renewal was not determined to be reasonably certain. In addition, leases may include variable lease payments, for items such as maintenance and utilities, which are expensed as incurred as variable lease expense. There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. Leases not meeting the finance lease criteria are classified as operating leases. Effective October 1, 2019, ROU assets and corresponding lease liabilities are recorded on the Consolidated Balance Sheet. ROU assets for operating leases are classified in other assets, and ROU assets for finance leases are classified in property, plant and equipment, net on the Consolidated Balance Sheet. For operating leases, short-term lease liabilities are classified in other current liabilities, and long-term lease liabilities are classified in other liabilities on the Consolidated Balance Sheet. For finance leases, short-term lease liabilities are classified in long-term debt, current maturities, and long-term lease liabilities are classified in long-term debt on the Consolidated Balance Sheet. Leases with an initial lease term of twelve months or less have not been recognized on the Consolidated Balance Sheet. Reporting periods prior to October 1, 2019 continue to be presented in accordance with previous lease accounting guidance under GAAP. Note 8. Leases (continued) The following table presents the balance sheet and lease classification for the Company's lease portfolio: Balance Sheet Classification Lease Classification December 31, 2019 Non-current assets: Property, plant and equipment, net Finance $ 1,330 Other assets Operating 76,682 Total lease assets $ 78,012 Current liabilities: Long-term debt, current maturities Finance $ 532 Other current liabilities Operating 26,456 Non-current liabilities: Long-term debt Finance 2,963 Other liabilities Operating 51,007 Total lease liabilities $ 80,958 Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense, while the expense for finance leases is recognized as depreciation expense and interest expense using the interest method of recognition. On the cash flow statement, payments for operating leases are classified as operating activities. Payments for finance leases are classified as a financing activity, with the exception of the interest component of the payment which is classified as an operating activity. The following table presents the components of lease cost: Three Months Ended Operating lease cost $ 6,263 Variable lease cost 1,424 Sublease income (187 ) Total lease cost* $ 7,500 Supplemental information regarding the Company's leases follows: December 31, 2019 Operating cash flows from operating leases* $ 8,105 ROU assets obtained in exchange for new operating lease liabilities $ 2,071 Weighted-average remaining lease term - finance leases (years) 7.64 Weighted-average remaining lease term - operating leases (years) 3.54 Weighted-discount rate - finance leases 3.41 % Weighted-discount rate - operating leases 3.06 % * Lease cost and cash flows for finance leases were insignificant for the three months ended December 31, 2019. The Company elected the practical expedient to not separate lease components from non-lease components for all asset classes. In addition, the Company elected the practical expedient to utilize a portfolio approach for certain equipment asset classes, primarily information technology, as the application of the lease model to the portfolio would not differ materially from the application of the lease model to the individual leases within the portfolio. Note 8. Leases (continued) Maturities of lease obligations were as follows as of December 31, 2019 : Operating Leases Finance Leases 2020 $ 22,089 $ 517 2021 22,814 501 2022 14,930 383 2023 9,023 383 2024 5,870 374 Thereafter 7,387 2,095 Total future minimum lease payments 82,113 4,253 Less: Interest 4,650 758 Present value of lease liabilities: $ 77,463 $ 3,495 |
Leases | Leases The Company’s lease portfolio includes various contracts for real estate, vehicles, information technology and other equipment. At contract inception, a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset, as well as the right to direct the use of that asset. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments, and a corresponding right-of-use asset. As a majority of the Company’s leases do not provide an implicit interest rate within the lease, an incremental borrowing rate is used to determine the ROU asset and lease liability which is based on information available at the commencement date. Options to purchase, extend or terminate a lease are included in the ROU asset and lease liability when it is reasonably certain an option will be exercised. Renewal options are most prevalent in the Company’s real estate leases. In general, the Company has not included renewal options for leases in the ROU asset and lease liability because the likelihood of renewal was not determined to be reasonably certain. In addition, leases may include variable lease payments, for items such as maintenance and utilities, which are expensed as incurred as variable lease expense. There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. Leases not meeting the finance lease criteria are classified as operating leases. Effective October 1, 2019, ROU assets and corresponding lease liabilities are recorded on the Consolidated Balance Sheet. ROU assets for operating leases are classified in other assets, and ROU assets for finance leases are classified in property, plant and equipment, net on the Consolidated Balance Sheet. For operating leases, short-term lease liabilities are classified in other current liabilities, and long-term lease liabilities are classified in other liabilities on the Consolidated Balance Sheet. For finance leases, short-term lease liabilities are classified in long-term debt, current maturities, and long-term lease liabilities are classified in long-term debt on the Consolidated Balance Sheet. Leases with an initial lease term of twelve months or less have not been recognized on the Consolidated Balance Sheet. Reporting periods prior to October 1, 2019 continue to be presented in accordance with previous lease accounting guidance under GAAP. Note 8. Leases (continued) The following table presents the balance sheet and lease classification for the Company's lease portfolio: Balance Sheet Classification Lease Classification December 31, 2019 Non-current assets: Property, plant and equipment, net Finance $ 1,330 Other assets Operating 76,682 Total lease assets $ 78,012 Current liabilities: Long-term debt, current maturities Finance $ 532 Other current liabilities Operating 26,456 Non-current liabilities: Long-term debt Finance 2,963 Other liabilities Operating 51,007 Total lease liabilities $ 80,958 Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense, while the expense for finance leases is recognized as depreciation expense and interest expense using the interest method of recognition. On the cash flow statement, payments for operating leases are classified as operating activities. Payments for finance leases are classified as a financing activity, with the exception of the interest component of the payment which is classified as an operating activity. The following table presents the components of lease cost: Three Months Ended Operating lease cost $ 6,263 Variable lease cost 1,424 Sublease income (187 ) Total lease cost* $ 7,500 Supplemental information regarding the Company's leases follows: December 31, 2019 Operating cash flows from operating leases* $ 8,105 ROU assets obtained in exchange for new operating lease liabilities $ 2,071 Weighted-average remaining lease term - finance leases (years) 7.64 Weighted-average remaining lease term - operating leases (years) 3.54 Weighted-discount rate - finance leases 3.41 % Weighted-discount rate - operating leases 3.06 % * Lease cost and cash flows for finance leases were insignificant for the three months ended December 31, 2019. The Company elected the practical expedient to not separate lease components from non-lease components for all asset classes. In addition, the Company elected the practical expedient to utilize a portfolio approach for certain equipment asset classes, primarily information technology, as the application of the lease model to the portfolio would not differ materially from the application of the lease model to the individual leases within the portfolio. Note 8. Leases (continued) Maturities of lease obligations were as follows as of December 31, 2019 : Operating Leases Finance Leases 2020 $ 22,089 $ 517 2021 22,814 501 2022 14,930 383 2023 9,023 383 2024 5,870 374 Thereafter 7,387 2,095 Total future minimum lease payments 82,113 4,253 Less: Interest 4,650 758 Present value of lease liabilities: $ 77,463 $ 3,495 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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, restricted share units, 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 . At December 31, 2019 , there were 1,700,000 shares reserved for future issuance under the 2017 Equity Incentive Plan. 558,200 restricted share units have been granted under the 2017 Equity Incentive Plan and are outstanding as of December 31, 2019. The 2017 Equity Incentive plan is administered by the Compensation Committee of the Board of Directors. With respect to the 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. With respect to the restricted share unit grants, units generally vest on the third anniversary of the grant date. The number of units that vest depend on certain time and performance thresholds. Approximately thirty-eight percent of the shares vest based on time, while the remaining vest based on pre-defined performance thresholds. The Company issues common stock from treasury shares once vested. For the three-month periods ended December 31, 2019 and 2018 , stock-based compensation cost totaled $2,031 and $3,647 , respectively. The three -month periods ended December 31, 2019 and 2018 included $313 and $1,849 of stock-based compensation cost, respectively, that was recognized for retirement-eligible employees. The associated future income tax benefit recognized for stock-based compensation was $179 and $535 for the three-month periods ended December 31, 2019 and 2018 , respectively. The transactions for restricted shares and restricted share units for the three months ended December 31, 2019 were as follows: Shares /Units Weighted- average Grant-date Fair Value Non-vested at September 30, 2019 615,635 $ 49.61 Granted 296,000 35.29 Vested (125,190 ) 64.50 Expired or forfeited (20,690 ) 65.01 Non-vested at December 31, 2019 765,755 $ 41.22 Note 9. Share-Based Payments (continued) As of December 31, 2019 , the total unrecognized compensation cost related to unvested restricted stock was $15,410 and is expected to be recognized over a weighted average period of 2.4 years. The Company maintains the 2019 Director Fee Plan, the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan (collectively, the "Director Fee Plans"). There will be no further fees or share-based awards granted under the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan. Under the 2019 Director Fee Plan, non-employee directors (except for the Chairman of the Board) each receive, as an annual retainer fee for fiscal 2020 , either cash or shares of the Company's Class A Common Stock with a value equal to $85 . The annual retainer fee for fiscal 2020 paid to the 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 total number of shares of stock that have been authorized to be issued under the 2019 Director Fee Plan or credited to a deferred stock compensation account for subsequent issuance is 150,000 shares of Common Stock (subject to adjustment upon certain events such as stock dividends or stock splits). The value of deferred shares is recorded in other liabilities. A total of 25,767 shares had been deferred under the Director Fee Plans as of December 31, 2019 . Additionally, non-employee directors each receive an annual stock-based grant (non-statutory stock options, stock appreciation rights and/or restricted shares or units) with a value of $125 for fiscal 2020 . 196,266 restricted shares and restricted share units have been granted under the Director Fee Plans, 23,037 of which were issued under the 2019 Director Fee Plan. 34,542 restricted shares and restricted share units are unvested at December 31, 2019 |
Earnings Per Share Attributable
Earnings Per Share Attributable to Matthews' Shareholders | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Matthews' Shareholders | Earnings Per Share Attributable to Matthews' Shareholders The information used to compute (loss) earnings per share attributable to Matthews' common shareholders was as follows: Three Months Ended 2019 2018 Net (loss) income attributable to Matthews shareholders $ (10,466 ) $ 3,097 Weighted-average shares outstanding (in thousands): Basic shares 31,136 31,604 Effect of dilutive securities — 130 Diluted shares 31,136 31,734 Anti-dilutive securities excluded from the dilution calculation were insignificant for the three months ended December 31, 2019 and 2018 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company provides defined benefit pension and other postretirement plans to certain employees. Net periodic pension and other postretirement benefit cost for the plans included the following: Three months ended December 31, Pension Other Postretirement 2019 2018 2019 2018 Service cost $ 2,170 $ 2,000 $ 64 $ 61 Interest cost * 1,933 2,301 140 180 Expected return on plan assets * (2,232 ) (2,596 ) — — Amortization: Prior service cost (47 ) (46 ) (23 ) (49 ) Net actuarial loss (gain) * 2,387 1,061 — (15 ) Net benefit cost $ 4,211 $ 2,720 $ 181 $ 177 * Non-service components of pension and postretirement expense are included in other income (deductions), net. Benefit payments under the Company's principal retirement plan are made from plan assets, while benefit payments under the postretirement benefit plan are made from the Company's operating funds. Under IRS regulations, the Company is required to make contributions of approximately $4,333 to its principal retirement plan in fiscal 2020 . Contributions made and anticipated for fiscal year 2020 are as follows: Contributions Pension Other Postretirement Contributions during the three months ended December 31, 2019: Supplemental retirement plan $ 176 $ — Other postretirement plan — 206 Additional contributions expected in fiscal 2020: Principal retirement plan $ 4,333 $ — Supplemental retirement plan 706 — Other postretirement plan — 783 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in AOCI by component, net of tax, for the three -month periods ended December 31, 2019 and 2018 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2019 $ (71,743 ) $ (156,214 ) $ (404 ) $ (228,361 ) OCI before reclassification — 11,111 566 11,677 Amounts reclassified from AOCI 1,727 (a) — (275 ) (b) 1,452 Net current-period OCI 1,727 11,111 291 13,129 Balance, December 31, 2019 $ (70,016 ) $ (145,103 ) $ (113 ) $ (215,232 ) Attributable to noncontrolling interest: Balance, September 30, 2019 $ — $ 375 $ — $ 375 OCI before reclassification — (5 ) — (5 ) Net current-period OCI — (5 ) — (5 ) Balance, December 31, 2019 $ — $ 370 $ — $ 370 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2018 $ (37,876 ) $ (134,960 ) $ 8,538 $ (164,298 ) OCI before reclassification — (12,564 ) (2,346 ) (14,910 ) Amounts reclassified from AOCI 729 (a) — (555 ) (b) 174 Net current-period OCI 729 (12,564 ) (2,901 ) (14,736 ) Balance, December 31, 2018 $ (37,147 ) $ (147,524 ) $ 5,637 $ (179,034 ) Attributable to noncontrolling interest: Balance, September 30, 2018 $ — $ 467 $ — $ 467 OCI before reclassification — (13 ) — (13 ) Net current-period OCI — (13 ) — (13 ) Balance, December 31, 2018 $ — $ 454 $ — $ 454 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 11). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). Note 12. Accumulated Other Comprehensive Income (continued) Reclassifications out of AOCI for the three -month periods ended December 31, 2019 and 2018 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended December 31, 2019 Three Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service credit $ 70 (a) $ 95 Actuarial losses (2,387 ) (a) (1,046 ) (2,317 ) (b) (951 ) Income before income tax 590 222 Income taxes $ (1,727 ) $ (729 ) Net income Derivatives Interest rate swap contracts $ 364 $ 735 Interest expense 364 (b) 735 Income before income tax (89 ) (180 ) Income taxes $ 275 $ 555 Net income (a) Prior service cost 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. Actuarial losses are reported in other income (deductions), net. For additional information, see Note 11. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year. The Company's consolidated income taxes for the three months ended December 31, 2019 were a benefit of $5,397 , compared to an expense of $605 for the first three months of fiscal 2019 . The differences between the Company’s consolidated income taxes for the first three months of fiscal 2020 versus the same period for fiscal 2019 primarily resulted from the fiscal 2020 consolidated loss before income taxes and higher fiscal 2020 discrete benefits resulting from the closure of several tax audits during the current quarter. The Company’s fiscal 2020 three month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to state taxes, foreign statutory rate differentials, tax credits, and discrete tax benefits recognized in the quarter. The Company had unrecognized tax benefits (excluding penalties and interest) of $12,579 and $15,526 on December 31, 2019 and September 30, 2019 , respectively, of which $9,365 and $11,417 would impact the annual effective rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $3,340 in the next 12 months primarily due to the completion of audits and the expiration of the statute of limitations. The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. Total penalties and interest accrued were $2,730 and $2,880 at December 31, 2019 and September 30, 2019 , respectively. These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions. Note 13. Income Taxes (continued) The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions. As of December 31, 2019 , the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2016 and forward United States – State 2015 and forward Canada 2015 and forward Germany 2015 and forward United Kingdom 2018 and forward Australia 2015 and forward Singapore 2016 and forward |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
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 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 and incineration 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. The Company's primary measure of segment profitability is 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 does not allocate corporate costs to its reportable segments. 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. Note 14. Segment Information (continued) The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income. Three Months Ended 2019 2018 Sales: SGK Brand Solutions $ 174,880 $ 185,300 Memorialization 154,405 153,886 Industrial Technologies 35,659 34,991 Consolidated Sales $ 364,944 $ 374,177 Adjusted EBITDA: SGK Brand Solutions $ 18,738 $ 27,351 Memorialization 30,093 30,321 Industrial Technologies 4,314 3,595 Corporate and Non-Operating (12,915 ) (14,786 ) Total Adjusted EBITDA $ 40,230 $ 46,481 Acquisition costs (1)** (1,948 ) (2,032 ) ERP integration costs (2)** (665 ) (2,177 ) Strategic initiatives and other charges (3)** (10,251 ) — Loss on divestiture (4) — (4,465 ) Joint Venture depreciation, amortization, interest expense and other charges (5) (797 ) — Stock-based compensation (2,031 ) (3,647 ) Non-service pension and postretirement expense (6) (2,228 ) (931 ) Depreciation and amortization * (28,933 ) (19,226 ) Interest expense (9,240 ) (10,301 ) Net income (loss) attributable to noncontrolling interests 160 (113 ) (Loss) income before income taxes (15,703 ) 3,589 Income tax benefit (provision) 5,397 (605 ) Net (loss) income $ (10,306 ) $ 2,984 (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 associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (4) Represents a loss on the sale of a controlling interest in a subsidiary within the Memorialization segment. (5) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other non-recurring charges incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment. (6) 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 $ 21,656 and $11,442 for the SGK Brand Solutions segment, $4,636 and $5,019 for the Memorialization segment, $1,442 and $1,526 for the Industrial Technologies segment, and $1,199 and $1,239 for Corporate and Non-Operating, for the three months ended December 31, 2019 and 2018 , respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $3,446 and $601 for the SGK Brand Solutions segment and $9,090 and $3,608 for Corporate and Non-Operating, for the three months ended December 31, 2019 and 2018 , respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $328 for the Memorialization segment for the three months ended December 31, 2019 . |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Fiscal 2019: On November 1, 2018 the Company acquired 80% ownership of Frost Converting Systems, Inc. (“Frost”) for a purchase price of approximately $ 7,162 (net of cash acquired and holdback amounts, subject to working capital adjustments). Frost is a leading global supplier of high-performance rotary dies for embossing, creasing and cutting of paperboard packaging and is included in the Company's SGK Brand Solutions segment. The Company finalized the allocation of the purchase price related to the Frost acquisition in the fourth quarter of fiscal 2019, resulting in an immaterial adjustment to certain working capital accounts. During fiscal 2019, the Company completed small acquisitions in the Memorialization segment for a combined purchase price of $ 3,094 (net of cash acquired and holdback amounts, subject to working capital adjustments). The Company finalized the purchase price allocations related to these acquisitions in the first quarter of fiscal 2020, resulting in an immaterial adjustment to certain working capital accounts. During fiscal 2019, the Company completed the sale of a 51% ownership interest in a small Memorialization business. Net proceeds from this sale totaled approximately $ 8,254 , and the transaction resulted in the recognition of a $ 4,465 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2019 $ 395,704 $ 359,737 $ 91,366 $ 846,807 Additions during period — — — — Translation and other adjustments 8,565 935 682 10,182 Net goodwill at December 31, 2019 $ 404,269 $ 360,672 $ 92,048 $ 856,989 The net goodwill balances at December 31, 2019 and September 30, 2019 include $ 88,324 of accumulated impairment losses. Accumulated impairment losses were $ 83,324 and $ 5,000 for the SGK Brand Solutions and Memorialization segments, respectively. The Company performed its annual impairment review in the second quarter of fiscal 2019 and determined that estimated fair value for all reporting units exceeded carrying value. The Company performed an interim assessment of its Graphics Imaging reporting unit goodwill during the fourth quarter of fiscal 2019 and recorded a $ 77,572 goodwill write-down. Subsequent to this write-down, the fair value of the Graphics Imaging reporting unit, within the SGK Brand Solutions segment, approximated carrying value at September 30, 2019. If current projections are not achieved or specific valuation factors outside the Company’s control (such as discount rates) significantly change, additional goodwill write-downs may be necessary in future periods. Note 16. Goodwill and Other Intangible Assets (continued) The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2019 and September 30, 2019 , respectively. Carrying Amount Accumulated Amortization Net December 31, 2019 Trade names $ 30,540 $ — * $ 30,540 Trade names 148,730 (33,085 ) 115,645 Customer relationships 377,079 (144,867 ) 232,212 Copyrights/patents/other 20,561 (13,802 ) 6,759 $ 576,910 $ (191,754 ) $ 385,156 September 30, 2019 : Trade names $ 30,540 $ — * $ 30,540 Trade names 148,628 (22,653 ) 125,975 Customer relationships 374,515 (137,330 ) 237,185 Copyrights/patents/other 20,463 (13,513 ) 6,950 *Not subject to amortization $ 574,146 $ (173,496 ) $ 400,650 The net change in intangible assets during the three months ended December 31, 2019 included the impact of foreign currency fluctuations during the period and additional amortization. Amortization expense on intangible assets was $17,942 and $8,113 for the three-month periods ended December 31, 2019 and 2018 , respectively. Amortization expense is estimated to be $53,562 for the remainder of fiscal 2020 , $60,109 in 2021 , $46,729 in 2022 , $27,797 in 2023 and $26,177 in 2024 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: Issued In December 2019, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) which simplifies the accounting for income taxes. The amendments in this update remove certain exceptions to the general principles in Topic 740 and also simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2022. The Company is currently assessing the impact of the ASU on its financial statements. In August 2018, the FASB issued 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each report date. 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. Note 2. Basis of Presentation (continued) Adopted 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. The adoption of this ASU in the first quarter ended December 31, 2019 had no 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. The adoption of this ASU in the first quarter ended December 31, 2019 had no 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. Subsequently, the FASB issued several 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 , ASU 2018-11, Leases (Topic 842): Targeted Improvements, ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, and ASU 2019-01, Leases (Topic 842): Codification 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 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. The Company adopted the standard using the transition method as of October 1, 2019. Under this approach, the Company recognized and recorded right-of-use ("ROU") assets and related lease liabilities on the Consolidated Balance Sheet of approximately $80 million with no impact to retained earnings. Reporting periods prior to October 1, 2019 continue to be presented in accordance with previous lease accounting guidance under GAAP. As part of the adoption, the Company elected the package of practical expedients permitted under the transition guidance which includes the ability to carry forward historical lease classification. Refer to Note 8, “Leases,” for a further discussion. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated sales by segment and region for the three months ended December 31, 2019 and 2018 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, 2019 2018 2019 2018 2019 2018 2019 2018 North America $ 76,230 $ 79,582 $ 144,045 $ 143,293 $ 28,299 $ 27,714 $ 248,574 $ 250,589 Central and South America 1,836 1,217 — — — — 1,836 1,217 Europe 82,413 90,518 7,829 8,158 6,926 6,337 97,168 105,013 Australia 3,002 2,959 2,531 2,435 — — 5,533 5,394 Asia 11,399 11,024 — — 434 940 11,833 11,964 Total Sales $ 174,880 $ 185,300 $ 154,405 $ 153,886 $ 35,659 $ 34,991 $ 364,944 $ 374,177 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: December 31, 2019 September 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 669 $ — $ 669 $ — $ 845 $ — $ 845 Equity and fixed income mutual funds — 24,014 — 24,014 — 22,986 — 22,986 Life insurance policies — 4,089 — 4,089 — 4,030 — 4,030 Total assets at fair value $ — $ 28,772 $ — $ 28,772 $ — $ 27,861 $ — $ 27,861 Liabilities: Derivatives (1) $ — $ 818 $ — $ 818 $ — $ 1,379 $ — $ 1,379 Total liabilities at fair value $ — $ 818 $ — $ 818 $ — $ 1,379 $ — $ 1,379 (1) Interest rate swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 31, 2019 September 30, 2019 Raw materials $ 38,220 $ 35,616 Work in process 79,108 76,297 Finished goods 68,280 68,361 $ 185,608 $ 180,274 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Current Investments | Non-current investments consisted of the following: December 31, 2019 September 30, 2019 Equity and fixed income mutual funds $ 24,014 $ 22,986 Life insurance policies 4,089 4,030 Equity-method investments 44,273 39,761 Cost-method investments 18,910 18,724 $ 91,286 $ 85,501 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Interest Rate Contracts | The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: December 31, 2019 September 30, 2019 Pay fixed swaps - notional amount $ 287,500 $ 293,750 Net unrealized loss $ (149 ) $ (534 ) Weighted-average maturity period (years) 1.7 1.9 Weighted-average received rate 1.76 % 2.02 % Weighted-average pay rate 1.43 % 1.41 % |
Interest Rate Swap Contracts as Reflected on Balance Sheet | At December 31, 2019 and September 30, 2019 , the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows: Derivatives December 31, 2019 September 30, 2019 Current assets: Other current assets $ 473 $ 548 Long-term assets: Other assets 196 297 Current liabilities: Other current liabilities (316 ) (484 ) Long-term liabilities: Other liabilities (502 ) (895 ) Total derivatives $ (149 ) $ (534 ) |
Gain (Loss) on Derivatives | The gains recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of Gain Recognized in Income on Derivative Amount of Gain Recognized in Income on Derivatives Three Months Ended 2019 2018 Interest rate swaps Interest expense $ 364 $ 735 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 Reclassified From AOCI into Income (Effective Portion*) Amount of Gain Reclassified from AOCI into Income (Effective Portion*) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Interest rate swaps $ 566 $ (2,346 ) Interest expense $ 275 $ 555 *There is no ineffective portion or amount excluded from effectiveness testing. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Assets and Liabilities, Lessee | The following table presents the balance sheet and lease classification for the Company's lease portfolio: Balance Sheet Classification Lease Classification December 31, 2019 Non-current assets: Property, plant and equipment, net Finance $ 1,330 Other assets Operating 76,682 Total lease assets $ 78,012 Current liabilities: Long-term debt, current maturities Finance $ 532 Other current liabilities Operating 26,456 Non-current liabilities: Long-term debt Finance 2,963 Other liabilities Operating 51,007 Total lease liabilities $ 80,958 |
Summary of Components of Lease Cost | The following table presents the components of lease cost: Three Months Ended Operating lease cost $ 6,263 Variable lease cost 1,424 Sublease income (187 ) Total lease cost* $ 7,500 Supplemental information regarding the Company's leases follows: December 31, 2019 Operating cash flows from operating leases* $ 8,105 ROU assets obtained in exchange for new operating lease liabilities $ 2,071 Weighted-average remaining lease term - finance leases (years) 7.64 Weighted-average remaining lease term - operating leases (years) 3.54 Weighted-discount rate - finance leases 3.41 % Weighted-discount rate - operating leases 3.06 % * Lease cost and cash flows for finance leases were insignificant for the three months ended December 31, 2019. |
Schedule of Maturities of Lease Obligations | Maturities of lease obligations were as follows as of December 31, 2019 : Operating Leases Finance Leases 2020 $ 22,089 $ 517 2021 22,814 501 2022 14,930 383 2023 9,023 383 2024 5,870 374 Thereafter 7,387 2,095 Total future minimum lease payments 82,113 4,253 Less: Interest 4,650 758 Present value of lease liabilities: $ 77,463 $ 3,495 |
Schedule of Maturities of Lease Obligations | Maturities of lease obligations were as follows as of December 31, 2019 : Operating Leases Finance Leases 2020 $ 22,089 $ 517 2021 22,814 501 2022 14,930 383 2023 9,023 383 2024 5,870 374 Thereafter 7,387 2,095 Total future minimum lease payments 82,113 4,253 Less: Interest 4,650 758 Present value of lease liabilities: $ 77,463 $ 3,495 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Activity | The transactions for restricted shares and restricted share units for the three months ended December 31, 2019 were as follows: Shares /Units Weighted- average Grant-date Fair Value Non-vested at September 30, 2019 615,635 $ 49.61 Granted 296,000 35.29 Vested (125,190 ) 64.50 Expired or forfeited (20,690 ) 65.01 Non-vested at December 31, 2019 765,755 $ 41.22 |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Matthews' Shareholders (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Information Used to Compute Earnings per Share Attributable to Matthews' Common Shareholders | The information used to compute (loss) earnings per share attributable to Matthews' common shareholders was as follows: Three Months Ended 2019 2018 Net (loss) income attributable to Matthews shareholders $ (10,466 ) $ 3,097 Weighted-average shares outstanding (in thousands): Basic shares 31,136 31,604 Effect of dilutive securities — 130 Diluted shares 31,136 31,734 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension and Other Postretirement Benefit Cost | Net periodic pension and other postretirement benefit cost for the plans included the following: Three months ended December 31, Pension Other Postretirement 2019 2018 2019 2018 Service cost $ 2,170 $ 2,000 $ 64 $ 61 Interest cost * 1,933 2,301 140 180 Expected return on plan assets * (2,232 ) (2,596 ) — — Amortization: Prior service cost (47 ) (46 ) (23 ) (49 ) Net actuarial loss (gain) * 2,387 1,061 — (15 ) Net benefit cost $ 4,211 $ 2,720 $ 181 $ 177 * Non-service components of pension and postretirement expense are included in other income (deductions), net. |
Contributions Made and Anticipated for the Current Fiscal Year | Contributions made and anticipated for fiscal year 2020 are as follows: Contributions Pension Other Postretirement Contributions during the three months ended December 31, 2019: Supplemental retirement plan $ 176 $ — Other postretirement plan — 206 Additional contributions expected in fiscal 2020: Principal retirement plan $ 4,333 $ — Supplemental retirement plan 706 — Other postretirement plan — 783 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in AOCI by Component | The changes in AOCI by component, net of tax, for the three -month periods ended December 31, 2019 and 2018 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2019 $ (71,743 ) $ (156,214 ) $ (404 ) $ (228,361 ) OCI before reclassification — 11,111 566 11,677 Amounts reclassified from AOCI 1,727 (a) — (275 ) (b) 1,452 Net current-period OCI 1,727 11,111 291 13,129 Balance, December 31, 2019 $ (70,016 ) $ (145,103 ) $ (113 ) $ (215,232 ) Attributable to noncontrolling interest: Balance, September 30, 2019 $ — $ 375 $ — $ 375 OCI before reclassification — (5 ) — (5 ) Net current-period OCI — (5 ) — (5 ) Balance, December 31, 2019 $ — $ 370 $ — $ 370 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2018 $ (37,876 ) $ (134,960 ) $ 8,538 $ (164,298 ) OCI before reclassification — (12,564 ) (2,346 ) (14,910 ) Amounts reclassified from AOCI 729 (a) — (555 ) (b) 174 Net current-period OCI 729 (12,564 ) (2,901 ) (14,736 ) Balance, December 31, 2018 $ (37,147 ) $ (147,524 ) $ 5,637 $ (179,034 ) Attributable to noncontrolling interest: Balance, September 30, 2018 $ — $ 467 $ — $ 467 OCI before reclassification — (13 ) — (13 ) Net current-period OCI — (13 ) — (13 ) Balance, December 31, 2018 $ — $ 454 $ — $ 454 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 11). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). |
Reclassifications out of AOCI | Note 12. Accumulated Other Comprehensive Income (continued) Reclassifications out of AOCI for the three -month periods ended December 31, 2019 and 2018 were as follows: Amount reclassified from AOCI Details about AOCI Components Three Months Ended December 31, 2019 Three Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service credit $ 70 (a) $ 95 Actuarial losses (2,387 ) (a) (1,046 ) (2,317 ) (b) (951 ) Income before income tax 590 222 Income taxes $ (1,727 ) $ (729 ) Net income Derivatives Interest rate swap contracts $ 364 $ 735 Interest expense 364 (b) 735 Income before income tax (89 ) (180 ) Income taxes $ 275 $ 555 Net income (a) Prior service cost 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. Actuarial losses are reported in other income (deductions), net. For additional information, see Note 11. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax Years Subject to Examination | As of December 31, 2019 , the tax years that remain subject to examination by major jurisdiction generally are: United States – Federal 2016 and forward United States – State 2015 and forward Canada 2015 and forward Germany 2015 and forward United Kingdom 2018 and forward Australia 2015 and forward Singapore 2016 and forward |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Information About the Company's Segments | The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income. Three Months Ended 2019 2018 Sales: SGK Brand Solutions $ 174,880 $ 185,300 Memorialization 154,405 153,886 Industrial Technologies 35,659 34,991 Consolidated Sales $ 364,944 $ 374,177 Adjusted EBITDA: SGK Brand Solutions $ 18,738 $ 27,351 Memorialization 30,093 30,321 Industrial Technologies 4,314 3,595 Corporate and Non-Operating (12,915 ) (14,786 ) Total Adjusted EBITDA $ 40,230 $ 46,481 Acquisition costs (1)** (1,948 ) (2,032 ) ERP integration costs (2)** (665 ) (2,177 ) Strategic initiatives and other charges (3)** (10,251 ) — Loss on divestiture (4) — (4,465 ) Joint Venture depreciation, amortization, interest expense and other charges (5) (797 ) — Stock-based compensation (2,031 ) (3,647 ) Non-service pension and postretirement expense (6) (2,228 ) (931 ) Depreciation and amortization * (28,933 ) (19,226 ) Interest expense (9,240 ) (10,301 ) Net income (loss) attributable to noncontrolling interests 160 (113 ) (Loss) income before income taxes (15,703 ) 3,589 Income tax benefit (provision) 5,397 (605 ) Net (loss) income $ (10,306 ) $ 2,984 (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 associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (4) Represents a loss on the sale of a controlling interest in a subsidiary within the Memorialization segment. (5) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other non-recurring charges incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment. (6) 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 $ 21,656 and $11,442 for the SGK Brand Solutions segment, $4,636 and $5,019 for the Memorialization segment, $1,442 and $1,526 for the Industrial Technologies segment, and $1,199 and $1,239 for Corporate and Non-Operating, for the three months ended December 31, 2019 and 2018 , respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $3,446 and $601 for the SGK Brand Solutions segment and $9,090 and $3,608 for Corporate and Non-Operating, for the three months ended December 31, 2019 and 2018 , respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $328 for the Memorialization segment for the three months ended December 31, 2019 . |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Attributable to Each Segment | A summary of the carrying amount of goodwill attributable to each segment as well as the changes in such amounts are as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2019 $ 395,704 $ 359,737 $ 91,366 $ 846,807 Additions during period — — — — Translation and other adjustments 8,565 935 682 10,182 Net goodwill at December 31, 2019 $ 404,269 $ 360,672 $ 92,048 $ 856,989 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2019 and September 30, 2019 , respectively. Carrying Amount Accumulated Amortization Net December 31, 2019 Trade names $ 30,540 $ — * $ 30,540 Trade names 148,730 (33,085 ) 115,645 Customer relationships 377,079 (144,867 ) 232,212 Copyrights/patents/other 20,561 (13,802 ) 6,759 $ 576,910 $ (191,754 ) $ 385,156 September 30, 2019 : Trade names $ 30,540 $ — * $ 30,540 Trade names 148,628 (22,653 ) 125,975 Customer relationships 374,515 (137,330 ) 237,185 Copyrights/patents/other 20,463 (13,513 ) 6,950 *Not subject to amortization $ 574,146 $ (173,496 ) $ 400,650 |
Basis of Presentation New Accou
Basis of Presentation New Accounting Pronouncements Adopted (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use asset | $ 76,682 | |
Operating lease liability | $ 77,463 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use asset | $ 80,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 364,944 | $ 374,177 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 248,574 | 250,589 |
Central and South America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,836 | 1,217 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 97,168 | 105,013 |
Australia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 5,533 | 5,394 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 11,833 | 11,964 |
SGK Brand Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 174,880 | 185,300 |
SGK Brand Solutions | North America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 76,230 | 79,582 |
SGK Brand Solutions | Central and South America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,836 | 1,217 |
SGK Brand Solutions | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 82,413 | 90,518 |
SGK Brand Solutions | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 3,002 | 2,959 |
SGK Brand Solutions | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 11,399 | 11,024 |
Memorialization | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 154,405 | 153,886 |
Memorialization | North America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 144,045 | 143,293 |
Memorialization | Central and South America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Memorialization | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 7,829 | 8,158 |
Memorialization | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 2,531 | 2,435 |
Memorialization | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Industrial Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 35,659 | 34,991 |
Industrial Technologies | North America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 28,299 | 27,714 |
Industrial Technologies | Central and South America | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Industrial Technologies | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 6,926 | 6,337 |
Industrial Technologies | Australia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 0 |
Industrial Technologies | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 434 | $ 940 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Assets: | ||
Life insurance policies | $ 18,910 | $ 18,724 |
Recurring | ||
Assets: | ||
Derivatives | 669 | 845 |
Equity and fixed income mutual funds | 24,014 | 22,986 |
Life insurance policies | 4,089 | 4,030 |
Total assets at fair value | 28,772 | 27,861 |
Liabilities: | ||
Derivatives | 818 | 1,379 |
Total liabilities at fair value | 818 | 1,379 |
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 | 669 | 845 |
Equity and fixed income mutual funds | 24,014 | 22,986 |
Life insurance policies | 4,089 | 4,030 |
Total assets at fair value | 28,772 | 27,861 |
Liabilities: | ||
Derivatives | 818 | 1,379 |
Total liabilities at fair value | 818 | 1,379 |
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 | Dec. 31, 2019 | Sep. 30, 2019 |
Inventories, net [Abstract] | ||
Raw materials | $ 38,220 | $ 35,616 |
Work in process | 79,108 | 76,297 |
Finished goods | 68,280 | 68,361 |
Inventories | $ 185,608 | $ 180,274 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Payments to equity-method investments | $ 4,900 |
Investments - Non-Current Inves
Investments - Non-Current Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 24,014 | $ 22,986 |
Life insurance policies | 4,089 | 4,030 |
Equity-method investments | 44,273 | 39,761 |
Cost-method investments | 18,910 | 18,724 |
Total non-current investments | $ 91,286 | $ 85,501 |
Debt - Narrative (Details)
Debt - Narrative (Details) £ in Thousands | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019EUR (€) | Sep. 30, 2019EUR (€) | Sep. 30, 2014GBP (£) |
Line of Credit Facility [Line Items] | ||||||||
Finance lease liability | $ 3,495,000 | $ 3,631,000 | $ 3,495,000 | $ 3,631,000 | ||||
Other debt | 395,000 | 395,000 | ||||||
Foreign currency translation adjustment, net of tax | 499,000 | 3,320,000 | 11,106,000 | $ (12,577,000) | ||||
Foreign currency translation adjustment, tax | 162,000 | 1,077,000 | ||||||
Other current assets | 56,453,000 | 49,384,000 | 56,453,000 | 49,384,000 | ||||
Designated as Hedging Instrument | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unrealized gain (loss) on fair value of interest rate swaps, before tax | (149,000) | (534,000) | ||||||
Unrealized gain (loss) on fair value of interest rate swaps, after tax | (112,000) | (403,000) | ||||||
Unrealized gain (loss) expected to be recognized over the next 12 months | 118,000 | 118,000 | ||||||
Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unamortized debt costs | $ 3,150,000 | 3,284,000 | $ 3,150,000 | 3,284,000 | ||||
Senior Notes | Matthews Europe GmbH & Co. KG | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.40% | 1.40% | 1.40% | 1.40% | ||||
Debt issued amount | $ 16,533,000 | $ 16,533,000 | € 15,000,000 | |||||
Senior Notes 2025 | Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt issued amount | $ 300,000,000 | $ 300,000,000 | ||||||
Fixed interest rate (as a percent) | 5.25% | 5.25% | 5.25% | |||||
Securitization Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 115,000,000 | $ 115,000,000 | ||||||
Outstanding borrowings | $ 106,720,000 | 93,950,000 | $ 106,720,000 | 93,950,000 | ||||
Interest rate on facility (as a percent) | 2.51% | 2.51% | 3.25% | 2.51% | ||||
Securitization Facility | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee (as a percent) | 0.25% | |||||||
Securitization Facility | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee (as a percent) | 0.35% | |||||||
Securitization Facility | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings (as a percent) | 0.75% | |||||||
Other Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 5.54% | |||||||
Revolving Credit Facility | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period (as a percent) | 1.50% | |||||||
Revolving Credit Facility | LIBOR | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings (as a percent) | 0.75% | |||||||
Revolving Credit Facility | LIBOR | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings (as a percent) | 2.00% | |||||||
Revolving Credit Facility | April 2016 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 900,000,000 | $ 900,000,000 | ||||||
Maximum borrowing amount drawn In foreign currency | 150,000,000 | $ 150,000,000 | ||||||
Revolving Credit Facility | April 2016 Debt Amendment | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Annual commitment fee range on unused portion (as a percent) | 0.15% | |||||||
Revolving Credit Facility | April 2016 Debt Amendment | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Annual commitment fee range on unused portion (as a percent) | 0.25% | |||||||
Term Loan | April 2016 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 250,000,000 | $ 250,000,000 | ||||||
Long term debt outstanding principal payment in year 1 (as a percent) | 5.00% | 5.00% | 5.00% | |||||
Long term debt outstanding principal payment in year 2 (as a percent) | 7.50% | 7.50% | 7.50% | |||||
Long term debt outstanding principal payment in year 3 (as a percent) | 10.00% | 10.00% | 10.00% | |||||
Long term debt outstanding principal payment in year 4 (as a percent) | 10.00% | 10.00% | 10.00% | |||||
Long term debt outstanding principal payment in year 5 (as a percent) | 10.00% | 10.00% | 10.00% | |||||
Outstanding borrowings | $ 47,287,000 | 53,497,000 | $ 47,287,000 | 53,497,000 | ||||
Term Loan | April 2016 Debt Amendment | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate during period (as a percent) | 1.50% | |||||||
Term Loan | April 2016 Debt Amendment | LIBOR | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings (as a percent) | 0.75% | |||||||
Term Loan | April 2016 Debt Amendment | LIBOR | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest rate on borrowings (as a percent) | 2.00% | |||||||
Domestic Revolving Credit Facility | April 2016 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum available for issuance of trade and standby letters of credit | $ 35,000,000 | $ 35,000,000 | ||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.60% | 2.60% | 3.06% | 2.60% | ||||
Foreign Line of Credit | Credit Facility With European Bank | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum amount of borrowings available | $ 39,258,000 | $ 39,258,000 | € 35,000,000 | |||||
Outstanding borrowings | $ 20,680,000 | 14,024,000 | $ 20,680,000 | 14,024,000 | € 18,400,000 | € 12,800,000 | ||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.25% | 1.25% | 1.25% | |||||
Letter of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Other current assets | $ 11,301,000 | $ 11,301,000 | £ 8,570 | |||||
United States of America, Dollars | Domestic Revolving Credit Facility | April 2016 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | 351,689,000 | 325,638,000 | 351,689,000 | 325,638,000 | ||||
Euro Member Countries, Euro | Domestic Revolving Credit Facility | April 2016 Debt Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | $ 140,206,000 | $ 136,470,000 | $ 140,206,000 | $ 136,470,000 | € 125,000,000 | € 125,000,000 |
Debt - Interest Rate Contracts
Debt - Interest Rate Contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap contracts - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Derivative [Line Items] | ||
Pay fixed swaps - notional amount | $ 287,500 | $ 293,750 |
Net unrealized loss | $ (149) | $ (534) |
Weighted-average maturity period (years) | 1 year 8 months 12 days | 1 year 10 months 24 days |
Weighted-average received rate (as a percent) | 1.76% | 2.02% |
Weighted-average pay rate (as a percent) | 1.43% | 1.41% |
Debt - Interest Rate Swap Contr
Debt - Interest Rate Swap Contracts as Reflected on Balance Sheet (Details) - Designated as Hedging Instrument - Interest Rate Swaps - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ (149) | $ (534) |
Current assets: Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 473 | 548 |
Long-term assets: Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 196 | 297 |
Current Liabilities: Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | (316) | (484) |
Long-Term Liabilities: Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ (502) | $ (895) |
Debt - Gain (Loss) on Derivativ
Debt - Gain (Loss) on Derivatives (Details) - Cash Flow Hedging - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 566 | $ (2,346) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Income on Derivatives | 364 | 735 |
Amount of Gain Reclassified from AOCI into Income (Effective Portion) | $ 275 | $ 555 |
Leases Leases - Assets And Liab
Leases Leases - Assets And Liabilities, Lessee (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lease Assets [Abstract] | |
Finance lease, property plant and equipment | $ 1,330 |
Operating lease, other assets | 76,682 |
Finance and operating lease, right-of-use asset | 78,012 |
Lease Liabilities [Abstract] | |
Finance lease, long-term debt current maturities | 532 |
Operating lease, other current liability | 26,456 |
Finance lease, long-term debt | 2,963 |
Operating lease, other liabilities | 51,007 |
Finance and operating lease, liability | $ 80,958 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating lease cost | $ 6,263 |
Variable lease cost | 1,424 |
Sublease income | (187) |
Total lease cost | 7,500 |
Cash paid for finance and operating lease liabilities: | |
Operating cash flows from operating leases | 8,105 |
ROU assets obtained in exchange for new operating lease liabilities | $ 2,071 |
Weighted Average Remaining Lease Term [Abstract] | |
Weighted-average remaining lease term - finance leases (years) | 7 years 7 months 20 days |
Weighted-average remaining lease term - operating leases (years) | 3 years 6 months 14 days |
Weighted Average Discount Rate [Abstract] | |
Weighted-discount rate - finance leases | 3.41% |
Weighted-discount rate - operating leases | 3.06% |
Leases - Maturities of Lease Ob
Leases - Maturities of Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 | $ 22,089 | |
2021 | 22,814 | |
2022 | 14,930 | |
2023 | 9,023 | |
2024 | 5,870 | |
Thereafter | 7,387 | |
Total future minimum lease payments | 82,113 | |
Less: Interest | 4,650 | |
Present value of lease liabilities: | 77,463 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2020 | 517 | |
2021 | 501 | |
2022 | 383 | |
2023 | 383 | |
2024 | 374 | |
Thereafter | 2,095 | |
Total future minimum lease payments | 4,253 | |
Less: Interest | 758 | |
Present value of lease liabilities: | $ 3,495 | $ 3,631 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation cost | $ 2,031 | $ 3,647 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued under the 2017 Equity incentive plan | 296,000 | |
Percent of shares vested on time | 40.00% | |
Unrecognized compensation cost on non-vested awards | $ 15,410 | |
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 2 years 4 months 24 days | |
Restricted stock awards unvested (in shares) | 34,542 | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 3 years | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 5 years | |
Restricted Stock | After 3 Years | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting increment | 50.00% | |
Restricted Stock | Attainment of Pre-Defined Levels of Appreciation in Market Value | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting increment | 25.00% | |
Restricted Stock | Attainment of Pre-Defined Levels of Adjusted Earnings Per Share | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting increment | 25.00% | |
2017 Equity Incentive Plan | Stock Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of plan | 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 | |
2017 Equity Incentive Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued under the 2017 Equity incentive plan | 558,200 | |
Retirement Eligible Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation cost | $ 313 | 1,849 |
Future income tax benefit from compensation expense recognized | 179 | $ 535 |
2014 Director Fee Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual retainer fee paid to non-employee directors | 85 | |
Annual retainer fee paid to non-employee Chairman of the Board | $ 185 | |
2019 Director Fee Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for grants or awards (in shares) | 150,000 | |
Director Fee Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares deferred under stock based compensation plan (in shares) | 25,767 | |
Value of annual stock based grant | $ 125 | |
Total restricted stock awards granted to date (in shares) | 196,266 | |
Restricted stock awards unvested (in shares) | 23,037 |
Share-Based Payments - Restrict
Share-Based Payments - Restricted Stock Activity (Details) - Restricted Stock | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares /Units | |
Non-vested at beginning of period (in shares) | 615,635 |
Granted (in shares) | 296,000 |
Vested (in shares) | (125,190) |
Expired or forfeited (in shares) | (20,690) |
Non-vested at end of period (in shares) | 765,755 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 49.61 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 35.29 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 64.50 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 65.01 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 41.22 |
2017 Equity Incentive Plan | |
Shares /Units | |
Granted (in shares) | 558,200 |
Earnings Per Share Attributab_3
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net (loss) income attributable to Matthews shareholders | $ (10,466) | $ 3,097 |
Weighted-average shares outstanding [Abstract] | ||
Basic shares (in shares) | 31,136 | 31,604 |
Effect of dilutive securities (in shares) | 0 | 130 |
Diluted shares (in shares) | 31,136 | 31,734 |
Antidilutive securities excluded from dilution calculation (in shares) | 0 | 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension | ||
Net periodic benefit cost [Abstract] | ||
Service cost | $ 2,170 | $ 2,000 |
Interest cost | 1,933 | 2,301 |
Expected return on plan assets | (2,232) | (2,596) |
Amortization: | ||
Prior service cost | (47) | (46) |
Net actuarial loss (gain) | 2,387 | 1,061 |
Net benefit cost | 4,211 | 2,720 |
Required contributions by employer in next fiscal year | 4,333 | |
Additional contributions expected in fiscal 2020: | ||
Supplemental retirement plan | 4,333 | |
Supplemental retirement plan | ||
Contributions during the three months ended December 31, 2019: | ||
Pension | 176 | |
Additional contributions expected in fiscal 2020: | ||
Supplemental retirement plan | 706 | |
Other Postretirement | ||
Net periodic benefit cost [Abstract] | ||
Service cost | 64 | 61 |
Interest cost | 140 | 180 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
Prior service cost | (23) | (49) |
Net actuarial loss (gain) | 0 | (15) |
Net benefit cost | 181 | $ 177 |
Contributions during the three months ended December 31, 2019: | ||
Other Postretirement | 206 | |
Additional contributions expected in fiscal 2020: | ||
Supplemental retirement plan | $ 783 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Attributable to Matthews: | ||
Beginning balance | $ 719,236 | $ 868,714 |
Current-period OCI, net of tax | 13,124 | (14,749) |
Ending balance | 715,705 | 844,015 |
Post-retirement benefit plans | ||
Attributable to Matthews: | ||
Beginning balance | (71,743) | (37,876) |
OCI before reclassification | 0 | 0 |
Amounts reclassified from AOCI | 1,727 | 729 |
Current-period OCI, net of tax | 1,727 | 729 |
Ending balance | (70,016) | (37,147) |
Currency translation adjustment | ||
Attributable to Matthews: | ||
Beginning balance | (156,214) | (134,960) |
OCI before reclassification | 11,111 | (12,564) |
Amounts reclassified from AOCI | 0 | 0 |
Current-period OCI, net of tax | 11,111 | (12,564) |
Ending balance | (145,103) | (147,524) |
Derivatives | ||
Attributable to Matthews: | ||
Beginning balance | (404) | 8,538 |
OCI before reclassification | 566 | (2,346) |
Amounts reclassified from AOCI | (275) | (555) |
Current-period OCI, net of tax | 291 | (2,901) |
Ending balance | (113) | 5,637 |
AOCI Attributable to Parent | ||
Attributable to Matthews: | ||
Beginning balance | (228,361) | (164,298) |
OCI before reclassification | 11,677 | (14,910) |
Amounts reclassified from AOCI | 1,452 | 174 |
Current-period OCI, net of tax | 13,129 | (14,736) |
Ending balance | (215,232) | (179,034) |
Post-retirement benefit plans | ||
Attributable to Matthews: | ||
Beginning balance | 0 | 0 |
OCI before reclassification | 0 | 0 |
Current-period OCI, net of tax | 0 | 0 |
Ending balance | 0 | 0 |
Currency translation adjustment | ||
Attributable to Matthews: | ||
Beginning balance | 375 | 467 |
OCI before reclassification | (5) | (13) |
Current-period OCI, net of tax | (5) | (13) |
Ending balance | 370 | 454 |
Derivatives | ||
Attributable to Matthews: | ||
Beginning balance | 0 | 0 |
OCI before reclassification | 0 | 0 |
Current-period OCI, net of tax | 0 | 0 |
Ending balance | 0 | 0 |
AOCI Attributable to Noncontrolling Interest | ||
Attributable to Matthews: | ||
Beginning balance | 375 | 467 |
OCI before reclassification | (5) | (13) |
Current-period OCI, net of tax | (5) | (13) |
Ending balance | $ 370 | $ 454 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives | ||
Interest expense | $ 9,240 | $ 10,301 |
Income before income tax | (15,703) | 3,589 |
Income taxes | 5,397 | (605) |
Net (loss) income | (10,306) | 2,984 |
Prior service credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income tax | 70 | 95 |
Actuarial losses | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income tax | (2,387) | (1,046) |
Post-retirement benefit plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income tax | (2,317) | (951) |
Net income | (1,727) | (729) |
Derivatives | ||
Income taxes | (590) | (222) |
Derivatives | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 275 | 555 |
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivatives | ||
Income before income tax | 364 | 735 |
Income taxes | (89) | (180) |
Net (loss) income | 275 | 555 |
Derivatives | Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivatives | ||
Interest expense | $ 364 | $ 735 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ (5,397) | $ 605 | |
Federal statutory rate (as a percent) | 21.00% | ||
Unrecognized tax benefits | $ 12,579 | $ 15,526 | |
Unrecognized tax benefits that would impact effective tax rate | 9,365 | 11,417 | |
Decrease reasonably possible in next 12 months | 3,340 | ||
Total penalties and interest accrued | $ 2,730 | $ 2,880 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 364,944 | $ 374,177 |
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||
Adjusted EBITDA: | 40,230 | 46,481 |
Non-Operating Income and Expenses [Abstract] | ||
Acquisition costs | (1,948) | (2,032) |
ERP integration costs | (665) | (2,177) |
Strategic initiatives and other charges | (10,251) | 0 |
Loss on divestiture | 0 | (4,465) |
Joint Venture depreciation, amortization, interest expense and other charges | (797) | 0 |
Stock-based compensation | (2,031) | (3,647) |
Non-service pension and postretirement expense | (2,228) | (931) |
Depreciation and amortization | (28,933) | (19,226) |
Interest expense | (9,240) | (10,301) |
Net income (loss) attributable to noncontrolling interests | 160 | (113) |
(Loss) income before income taxes | (15,703) | 3,589 |
Income tax benefit (provision) | 5,397 | (605) |
Net (loss) income | (10,306) | 2,984 |
SGK Brand Solutions | ||
Segment Reporting Information [Line Items] | ||
Sales | 174,880 | 185,300 |
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||
Adjusted EBITDA: | 18,738 | 27,351 |
Non-Operating Income and Expenses [Abstract] | ||
Depreciation and amortization | (21,656) | (11,442) |
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 3,446 | 601 |
Memorialization | ||
Segment Reporting Information [Line Items] | ||
Sales | 154,405 | 153,886 |
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||
Adjusted EBITDA: | 30,093 | 30,321 |
Non-Operating Income and Expenses [Abstract] | ||
Depreciation and amortization | (4,636) | (5,019) |
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 328 | |
Industrial Technologies | ||
Segment Reporting Information [Line Items] | ||
Sales | 35,659 | 34,991 |
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||
Adjusted EBITDA: | 4,314 | 3,595 |
Non-Operating Income and Expenses [Abstract] | ||
Depreciation and amortization | (1,442) | (1,526) |
Corporate and Non-Operating | ||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||
Adjusted EBITDA: | (12,915) | (14,786) |
Non-Operating Income and Expenses [Abstract] | ||
Depreciation and amortization | (1,199) | (1,239) |
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | $ 9,090 | $ 3,608 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Payment to acquire business, net of cash acquired | $ 0 | $ 8,404 | |
Percentage of ownership sold | 51.00% | ||
Proceeds from sale of ownership interest | 0 | $ 8,254 | |
Loss on divestiture | 0 | $ 4,465 | |
Frost Converting Systems | |||
Business Acquisition [Line Items] | |||
Percentage of ownership acquired | 80.00% | ||
Payment to acquire business, net of cash acquired | $ 7,162 | ||
Memorialization Business | |||
Business Acquisition [Line Items] | |||
Payment to acquire business, net of cash acquired | $ 3,094 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Segment (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 846,807 |
Additions during period | 0 |
Translation and other adjustments | 10,182 |
Balance at end of period | 856,989 |
SGK Brand Solutions | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 395,704 |
Additions during period | 0 |
Translation and other adjustments | 8,565 |
Balance at end of period | 404,269 |
Memorialization | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 359,737 |
Additions during period | 0 |
Translation and other adjustments | 935 |
Balance at end of period | 360,672 |
Industrial Technologies | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 91,366 |
Additions during period | 0 |
Translation and other adjustments | 682 |
Balance at end of period | $ 92,048 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 576,910 | $ 574,146 |
Accumulated Amortization | (191,754) | (173,496) |
Net | 385,156 | 400,650 |
Trade Names Not Subject to Amortization | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 30,540 | 30,540 |
Net | 30,540 | 30,540 |
Trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 148,730 | 148,628 |
Accumulated Amortization | (33,085) | (22,653) |
Net | 115,645 | 125,975 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 377,079 | 374,515 |
Accumulated Amortization | (144,867) | (137,330) |
Net | 232,212 | 237,185 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 20,561 | 20,463 |
Accumulated Amortization | (13,802) | (13,513) |
Net | $ 6,759 | $ 6,950 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Accumulated impairment charges | $ 88,324 | $ 88,324 | |
Goodwill write-down | 77,572 | ||
Amortization expense on intangible assets | 17,942 | $ 8,113 | |
Future amortization expense [Abstract] | |||
Future amortization expense for the remainder 2020 | 53,562 | ||
Future amortization expense 2021 | 60,109 | ||
Future amortization expense 2022 | 46,729 | ||
Future amortization expense 2023 | 27,797 | ||
Future amortization expense 2024 | 26,177 | ||
SGK Brand Solutions | |||
Goodwill [Line Items] | |||
Accumulated impairment charges | 83,324 | 83,324 | |
Memorialization | |||
Goodwill [Line Items] | |||
Accumulated impairment charges | $ 5,000 | $ 5,000 |
Uncategorized Items - matw-1231
Label | Element | Value |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,176,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,176,000) |