Cover Page
Cover Page | 6 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
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, $1.00 par value |
Trading Symbol | MATW |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 31,306,248 |
Entity Central Index Key | 0000063296 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 53,777 | $ 49,176 |
Accounts receivable, net | 223,283 | 309,818 |
Inventories, net | 201,566 | 189,088 |
Restricted cash, current | 22,295 | 0 |
Other current assets | 111,371 | 76,083 |
Total current assets | 612,292 | 624,165 |
Restricted cash, non-current | 0 | 19,167 |
Investments | 23,697 | 30,438 |
Property, plant and equipment, net | 213,104 | 223,707 |
Operating lease right-of-use assets | 78,984 | 80,262 |
Deferred income taxes | 2,950 | 3,489 |
Goodwill | 769,111 | 773,787 |
Other intangible assets, net | 227,255 | 261,542 |
Other assets | 25,400 | 15,521 |
Total assets | 1,952,793 | 2,032,078 |
Current liabilities: | ||
Long-term debt, current maturities | 3,872 | 4,624 |
Current portion of operating lease liabilities | 24,541 | 25,151 |
Trade accounts payable | 114,984 | 112,722 |
Accrued compensation | 47,580 | 68,938 |
Accrued income taxes | 3,751 | 4,235 |
Other current liabilities | 143,831 | 138,555 |
Total current liabilities | 338,559 | 354,225 |
Long-term debt | 749,092 | 759,086 |
Operating lease liabilities | 56,719 | 57,272 |
Accrued pension | 33,544 | 84,803 |
Postretirement benefits | 17,897 | 17,958 |
Deferred income taxes | 109,596 | 97,416 |
Other liabilities | 18,371 | 24,915 |
Total liabilities | 1,323,778 | 1,395,675 |
Shareholders' equity-Matthews: | ||
Common stock | 36,334 | 36,334 |
Additional paid-in capital | 151,891 | 149,484 |
Retained earnings | 798,548 | 834,208 |
Accumulated other comprehensive loss | (161,230) | (192,739) |
Treasury stock, at cost | (196,353) | (190,739) |
Total shareholders' equity-Matthews | 629,190 | 636,548 |
Noncontrolling interests | (175) | (145) |
Total shareholders' equity | 629,015 | 636,403 |
Total liabilities and shareholders' equity | $ 1,952,793 | $ 2,032,078 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Sales | $ 444,978 | $ 417,154 | $ 883,557 | $ 803,811 |
Cost of sales | (320,459) | (276,143) | (627,401) | (537,302) |
Gross profit | 124,519 | 141,011 | 256,156 | 266,509 |
Selling expense | (33,381) | (32,360) | (64,124) | (63,155) |
Administrative expense | (71,819) | (70,749) | (140,388) | (139,858) |
Intangible amortization | (11,953) | (22,930) | (33,499) | (38,151) |
Operating profit | 7,366 | 14,972 | 18,145 | 25,345 |
Investment (loss) income | (327) | 969 | 676 | 2,046 |
Interest expense | (6,260) | (7,233) | (12,767) | (14,961) |
Other income (deductions), net | 562 | (2,584) | (31,151) | (4,318) |
Income (loss) before income taxes | 1,341 | 6,124 | (25,097) | 8,112 |
Income tax (provision) benefit | (3,277) | (972) | 3,351 | (4,952) |
Net (loss) income | (1,936) | 5,152 | (21,746) | 3,160 |
Net loss (income) attributable to noncontrolling interests | 31 | (163) | 38 | 71 |
Net (loss) income attributable to Matthews shareholders | $ (1,905) | $ 4,989 | $ (21,708) | $ 3,231 |
(Loss) earnings per share attributable to Matthews shareholders: | ||||
Basic (in dollars per share) | $ (0.06) | $ 0.16 | $ (0.68) | $ 0.10 |
Diluted (in dollars per share) | $ (0.06) | $ 0.16 | $ (0.68) | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net (loss) income attributable to Matthews shareholders | $ (1,905) | $ 4,989 | $ (21,708) | $ 3,231 |
Net income (loss) attributable to noncontrolling interests | (31) | 163 | (38) | (71) |
Net loss | (1,936) | 5,152 | (21,746) | 3,160 |
Unrecognized gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | (2,116) | (3,988) | 31,509 | 16,226 |
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 4 | 1 | 8 | (2) |
Net current-period OCI | (2,112) | (3,987) | 31,517 | 16,224 |
Comprehensive (loss) income attributable to Matthews shareholders | (4,021) | 1,001 | 9,801 | 19,457 |
Comprehensive (loss) income attributable to noncontrolling interest | (27) | 164 | (30) | (73) |
Comprehensive income (loss) | (4,048) | 1,165 | 9,771 | 19,384 |
Foreign Currency Translation Adjustment | ||||
Unrecognized gain on derivatives: | ||||
Net current-period OCI | (6,177) | (8,897) | (8,162) | 8,155 |
Foreign Currency Translation Adjustment, Matthews | ||||
Unrecognized gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | (6,181) | (8,898) | (8,170) | 8,157 |
Net change from periodic revaluation | (6,181) | (8,898) | (8,170) | 8,157 |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Net current-period OCI | (6,181) | (8,898) | (8,170) | 8,157 |
Foreign Currency Translation Adjustment, Noncontrolling Interest | ||||
Unrecognized gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 4 | 1 | 8 | (2) |
Net change from periodic revaluation | 4 | 1 | 8 | (2) |
Net current-period OCI | 4 | 1 | 8 | (2) |
Pension Plans and Other Postretirement Benefits | ||||
Unrecognized gain on derivatives: | ||||
Net current-period OCI | (27) | 2,255 | 34,106 | 4,379 |
Pension Plans and Other Postretirement Benefits, Matthews | ||||
Unrecognized gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | (27) | 2,255 | 34,106 | 4,379 |
Pension Plans and Other Postretirement Benefits, Noncontrolling Interest | ||||
Unrecognized gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net Investment Gain (Loss), Including Noncontrolling Interest | ||||
Unrecognized gain on derivatives: | ||||
Net change from periodic revaluation | 3,538 | 2,088 | 4,413 | 2,441 |
Net amount reclassified to earnings | 554 | 567 | 1,160 | 1,249 |
Net Investment Gain (Loss), Matthews | ||||
Unrecognized gain on derivatives: | ||||
Net change from periodic revaluation | 3,538 | 2,088 | 4,413 | 2,441 |
Net amount reclassified to earnings | 554 | 567 | 1,160 | 1,249 |
Net Investment Gain (Loss), Noncontrolling Interest | ||||
Unrecognized gain on derivatives: | ||||
Net change from periodic revaluation | 0 | 0 | 0 | 0 |
Net amount reclassified to earnings | 0 | 0 | 0 | 0 |
Gain (Loss), Net, Derivatives | ||||
Unrecognized gain on derivatives: | ||||
Net current-period OCI | 4,092 | 2,655 | 5,573 | 3,690 |
Accumulated Gain (Loss), Net, Derivatives, Matthews | ||||
Unrecognized gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to Matthews shareholders | 4,092 | 2,655 | 5,573 | 3,690 |
Net change from periodic revaluation | 3,538 | 2,088 | 4,413 | 2,441 |
Net amount reclassified to earnings | 554 | 567 | 1,160 | 1,249 |
Net current-period OCI | 4,092 | 2,655 | 5,573 | 3,690 |
Accumulated Gain (Loss), Net, Derivatives, Noncontrolling Interest | ||||
Unrecognized gain on derivatives: | ||||
Net change in other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net change from periodic revaluation | 0 | 0 | 0 | 0 |
Net current-period OCI | $ 0 | $ 0 | $ 0 | $ 0 |
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, 2020 | $ 611,433 | $ 36,334 | $ 135,187 | $ 859,002 | $ (240,719) | $ (178,997) | $ 626 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (1,992) | (1,758) | (234) | ||||
Minimum pension liability | 2,124 | 2,124 | |||||
Translation adjustment | 17,052 | 17,055 | (3) | ||||
Fair value of derivatives | 1,035 | 1,035 | |||||
Comprehensive income (loss) | 18,219 | ||||||
Stock-based compensation | 3,246 | 3,246 | |||||
Purchase of treasury stock | (4,237) | (4,237) | |||||
Issuance of treasury stock | 0 | (407) | 407 | ||||
Cancellations of treasury stock | 0 | 1,982 | (1,982) | ||||
Dividends | (6,808) | (6,808) | |||||
Ending balance at Dec. 31, 2020 | $ 621,853 | 36,334 | 140,008 | 850,436 | (220,505) | (184,809) | 389 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of treasury stock | 10,300 | ||||||
Beginning balance at Sep. 30, 2020 | $ 611,433 | 36,334 | 135,187 | 859,002 | (240,719) | (178,997) | 626 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 3,160 | ||||||
Comprehensive income (loss) | 19,384 | ||||||
Ending balance at Mar. 31, 2021 | 619,599 | 36,334 | 143,324 | 848,254 | (224,493) | (184,373) | 553 |
Beginning balance at Dec. 31, 2020 | 621,853 | 36,334 | 140,008 | 850,436 | (220,505) | (184,809) | 389 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 5,152 | 4,989 | 163 | ||||
Minimum pension liability | 2,255 | 2,255 | |||||
Translation adjustment | (8,897) | (8,898) | 1 | ||||
Fair value of derivatives | 2,655 | 2,655 | |||||
Comprehensive income (loss) | 1,165 | ||||||
Stock-based compensation | 4,001 | 4,001 | |||||
Purchase of treasury stock | (249) | (249) | |||||
Issuance of treasury stock | 0 | (685) | 685 | ||||
Dividends | (7,171) | (7,171) | |||||
Ending balance at Mar. 31, 2021 | $ 619,599 | 36,334 | 143,324 | 848,254 | (224,493) | (184,373) | 553 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of treasury stock | 17,357 | ||||||
Beginning balance at Sep. 30, 2021 | $ 636,403 | 36,334 | 149,484 | 834,208 | (192,739) | (190,739) | (145) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (19,810) | (19,803) | (7) | ||||
Minimum pension liability | 34,133 | 34,133 | |||||
Translation adjustment | (1,985) | (1,989) | 4 | ||||
Fair value of derivatives | 1,481 | 1,481 | |||||
Comprehensive income (loss) | 13,819 | ||||||
Stock-based compensation | 3,709 | 3,709 | |||||
Purchase of treasury stock | (2,435) | (2,435) | |||||
Issuance of treasury stock | 0 | (6,859) | 6,859 | ||||
Cancellations of treasury stock | 0 | 2,091 | (2,091) | ||||
Dividends | (6,824) | (6,824) | |||||
Ending balance at Dec. 31, 2021 | $ 644,672 | 36,334 | 148,425 | 807,581 | (159,114) | (188,406) | (148) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of treasury stock | 174,107 | ||||||
Beginning balance at Sep. 30, 2021 | $ 636,403 | 36,334 | 149,484 | 834,208 | (192,739) | (190,739) | (145) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (21,746) | ||||||
Comprehensive income (loss) | 9,771 | ||||||
Ending balance at Mar. 31, 2022 | 629,015 | 36,334 | 151,891 | 798,548 | (161,230) | (196,353) | (175) |
Beginning balance at Dec. 31, 2021 | 644,672 | 36,334 | 148,425 | 807,581 | (159,114) | (188,406) | (148) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (1,936) | (1,905) | (31) | ||||
Minimum pension liability | (27) | (27) | |||||
Translation adjustment | (6,177) | (6,181) | 4 | ||||
Fair value of derivatives | 4,092 | 4,092 | |||||
Comprehensive income (loss) | (4,048) | ||||||
Stock-based compensation | 5,222 | 5,222 | |||||
Purchase of treasury stock | (9,703) | (9,703) | |||||
Issuance of treasury stock | 0 | (1,761) | 1,761 | ||||
Cancellations of treasury stock | 0 | 5 | (5) | ||||
Dividends | (7,128) | (7,128) | |||||
Ending balance at Mar. 31, 2022 | $ 629,015 | $ 36,334 | $ 151,891 | $ 798,548 | $ (161,230) | $ (196,353) | $ (175) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of treasury stock | 45,096 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Purchase of treasury stock | 289,184 | 62,746 | 6,000 | 162,291 |
Issuance of treasury stock | 45,096 | 174,107 | 17,357 | 10,300 |
Cancellations of treasury stock | 80 | 31,057 | 34,727 | |
Dividends, per share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.215 | $ 0.215 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (21,746) | $ 3,160 |
Adjustments to reconcile net (loss) income to net cash flows from operating activities: | ||
Depreciation and amortization | 57,225 | 62,530 |
Stock-based compensation expense | 8,931 | 7,247 |
Deferred tax (benefit) provision | (16) | 930 |
Gain on sale of assets, net | (528) | (511) |
Other investment loss (gain) | 214 | (844) |
Pension settlement loss | 30,856 | 0 |
Asset write-downs | 10,486 | 0 |
Changes in working capital items | 18,842 | 2,730 |
Decrease in other assets | 5,823 | 2,556 |
(Decrease) increase in other liabilities | (41,971) | 12,962 |
Other operating activities, net | 4,607 | 1,422 |
Net cash provided by operating activities | 72,723 | 92,182 |
Cash flows from investing activities: | ||
Capital expenditures | (28,096) | (15,819) |
Acquisitions, net of cash acquired | 0 | (13,100) |
Proceeds from sale of assets | 360 | 2,065 |
Proceeds from sale of investments | 3,127 | 15,000 |
Investments and advances | (130) | 0 |
Net cash used in investing activities | (24,739) | (11,854) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 342,847 | 249,833 |
Payments on long-term debt | (353,385) | (303,781) |
Purchases of treasury stock | (12,138) | (4,486) |
Dividends | (13,952) | (13,979) |
Acquisition holdback and contingent consideration payments | (613) | (1,556) |
Other financing activities | (1,434) | (1,484) |
Net cash used in financing activities | (38,675) | (75,453) |
Effect of exchange rate changes on cash | (1,580) | 771 |
Net change in cash, cash equivalents and restricted cash | 7,729 | 5,646 |
Cash, cash equivalents and restricted cash at beginning of year | 68,343 | 41,334 |
Cash, cash equivalents and restricted cash at end of period | $ 76,072 | $ 46,980 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Mar. 31, 2022 | |
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. The Company manages its businesses under three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. Effective in the first quarter of fiscal 2022, the Company transferred its surfaces and engineered products businesses from the SGK Brand Solutions segment to the Industrial Technologies segment. This business segment change is consistent with internal management structure and reporting changes effective for fiscal 2022. Prior periods were revised to reflect retrospective application of this segment realignment. Brand solutions consists of brand management, pre-media services, printing plates and cylinders, 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 includes the design, manufacturing, service and distribution of high-tech custom energy storage, marking, coding and industrial automation technologies and solutions, 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. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe 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 six months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2022. 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, 2021. The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control and any variable interest entities for which the Company is the primary beneficiary. 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. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue RecognitionThe 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, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for 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 designs, manufactures, services and distributes high-tech custom energy storage, marking, coding and industrial automation technologies and solutions, and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. 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 and six months ended March 31, 2022 and 2021 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2022 2021 2022 2021 2022 2021 2022 2021 North America $ 69,080 $ 66,282 $ 205,655 $ 190,253 $ 34,768 $ 32,260 $ 309,503 $ 288,795 Central and South America 1,123 1,319 — — — — 1,123 1,319 Europe 60,852 64,581 11,924 12,662 41,611 31,622 114,387 108,865 Australia 2,687 3,456 2,425 2,542 — — 5,112 5,998 Asia 13,078 10,777 — — 1,775 1,400 14,853 12,177 Total Sales $ 146,820 $ 146,415 $ 220,004 $ 205,457 $ 78,154 $ 65,282 $ 444,978 $ 417,154 SGK Brand Solutions Memorialization Industrial Technologies Consolidated Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 North America $ 143,270 $ 136,684 $ 402,406 $ 360,577 $ 71,133 $ 59,895 $ 616,809 $ 557,156 Central and South America 2,143 2,694 — — — — 2,143 2,694 Europe 121,854 128,209 23,438 23,102 78,166 55,794 223,458 207,105 Australia 5,555 6,937 4,866 5,052 — — 10,421 11,989 Asia 27,540 21,850 — — 3,186 3,017 30,726 24,867 Total Sales $ 300,362 $ 296,374 $ 430,710 $ 388,731 $ 152,485 $ 118,706 $ 883,557 $ 803,811 Revenue from products or services provided to customers over time accounted for approximately 9% of revenue for both the three months ended March 31, 2022 and 2021, and 11% and 8% of revenue for the six months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and September 30, 2021, the Company had contract assets of $22,896 and $23,998, respectively, that were recorded in other current assets within the Consolidated Balance Sheets. As of March 31, 2022 and September 30, 2021, the Company had contract liabilities of $12,701 and $19,752, respectively, that were recorded in other current liabilities within the Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2022 | |
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. Note 4. Fair Value Measurements (continued) The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows: March 31, 2022 September 30, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 9,464 $ — $ 9,464 $ — $ 209 $ — $ 209 Equity and fixed income mutual funds — 3,646 — 3,646 — 6,936 — 6,936 Life insurance policies — 4,560 — 4,560 — 4,626 — 4,626 Total assets at fair value $ — $ 17,670 $ — $ 17,670 $ — $ 11,771 $ — $ 11,771 Liabilities: Derivatives (1) $ — $ 314 $ — $ 314 $ — $ 2,232 $ — $ 2,232 Total liabilities at fair value $ — $ 314 $ — $ 314 $ — $ 2,232 $ — $ 2,232 (1) Interest rate swaps and cross currency swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. The carrying values for other financial assets and liabilities approximated fair value at March 31, 2022 and September 30, 2021. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: March 31, 2022 September 30, 2021 Raw materials $ 46,485 $ 37,673 Work in process 78,527 75,997 Finished goods 76,554 75,418 $ 201,566 $ 189,088 |
Investments
Investments | 6 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Non-current investments consisted of the following: March 31, 2022 September 30, 2021 Equity and fixed income mutual funds $ — $ 6,936 Life insurance policies 4,560 4,626 Equity-method investments 379 458 Other (primarily cost-method) investments 18,758 18,418 $ 23,697 $ 30,438 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt at March 31, 2022 and September 30, 2021 consisted of the following: March 31, 2022 September 30, 2021 Revolving credit facilities $ 389,216 $ 350,597 Securitization facility — 95,990 2025 Senior Notes 298,065 297,796 Other borrowings 58,522 10,150 Finance lease obligations 7,161 9,177 Total debt 752,964 763,710 Less current maturities (3,872) (4,624) Long-term debt $ 749,092 $ 759,086 The Company has a domestic credit facility with a syndicate of financial institutions that includes a $750,000 senior secured revolving credit facility, which matures in March 2025. A portion of the revolving credit facility (not to exceed $350,000) can be drawn in foreign currencies. Borrowings under the revolving credit facility bear interest at LIBOR plus a factor ranging from 0.75% to 2.00% (1.00% at March 31, 2022) 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 0.30% (based on the Company's leverage ratio) of the unused portion of the revolving credit facility. The Company incurred debt issuance costs in connection with the domestic credit facility. Unamortized costs were $1,826 and $2,182 at March 31, 2022 and September 30, 2021, respectively. 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 March 31, 2022 and September 30, 2021 were $380,540 and $349,780, 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 March 31, 2022 and 2021 was 1.89% and 2.17%, 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 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 $1,935 and $2,204 at March 31, 2022 and September 30, 2021, respectively. 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. In March 2022, Matthews RFC entered into a receivables purchase agreement (“RPA”) to sell up to $125,000 of receivables to certain purchasers (the “Purchasers”) on a recurring basis in exchange for cash (referred to as “capital” within the RPA) equal to the gross receivables transferred. The parties intend that the transfers of receivables to the Purchasers constitute purchases and sales of receivables. Matthews RFC has guaranteed to each Purchaser the prompt payment of sold receivables, and has granted a security interest in its assets for the benefit of the Purchasers. Under the RPA, which matures in March 2024, each Purchaser’s share of capital accrues yield at a floating rate plus an applicable margin. The Company is the master servicer under the RPA, and is responsible for administering and collecting receivables. The proceeds of the RPA are classified as operating activities in the Company’s Consolidated Statements of Cash Flows. Cash received from collections of sold receivables may be used to fund additional purchases of receivables on a revolving basis, or to reduce all or any portion of the outstanding capital of the Purchasers. Gross receivables sold and cash collections reinvested under the RPA program were $121,616 and $46,615 for the six months ended March 31, 2022, respectively. The fair value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded. As of March 31, 2022, the amount sold to the Purchasers was $75,001, which was derecognized from the Consolidated Balance Sheets. As collateral against sold receivables, Matthews RFC maintains a certain level of unsold receivables, which was $29,288 as of March 31, 2022. Note 7. Debt and Financing Arrangements (continued) Previously, the Company had a $115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions that matured in March 2022. The Securitization Facility did not qualify for sale treatment. Accordingly, the trade receivables and related debt obligations remained on the Company's Consolidated Balance Sheet. Borrowings under the Securitization Facility were based on LIBOR plus 0.75% and the Company was required to pay an annual commitment fee ranging from 0.25% to 0.35% of the unused portion of the Securitization Facility. Outstanding borrowings under the Securitization Facility at September 30, 2021 totaled $95,990. At March 31, 2021, the interest rate on borrowings under this facility was 0.86%. The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: March 31, 2022 September 30, 2021 Pay fixed swaps - notional amount $ 225,000 $ 250,000 Net unrealized gain (loss) $ 5,318 $ (2,062) Weighted-average maturity period (years) 1.9 2.2 Weighted-average received rate 0.45 % 0.08 % Weighted-average pay rate 1.37 % 1.34 % The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate. The interest rate swaps have been designated as cash flow hedges of future variable interest payments, which are considered probable of occurring. Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective. The fair value of the interest rate swaps reflected an unrealized gain net of unrealized losses of $5,318 ($4,015 after tax) at March 31, 2022 and an unrealized loss net of unrealized gains of $2,062 ($1,558 after tax) at September 30, 2021, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI"). Assuming market rates remain constant with the rates at March 31, 2022, a gain (net of tax) of approximately $839 included in AOCI is expected to be recognized in earnings over the next twelve months. At March 31, 2022 and September 30, 2021, the interest rate swap contracts were reflected on a gross-basis in the Consolidated Balance Sheets as follows: Derivatives March 31, 2022 September 30, 2021 Current assets: Other current assets $ 1,426 $ 31 Long-term assets: Other assets 4,206 139 Current liabilities: Other current liabilities (314) (1,922) Long-term liabilities: Other liabilities — (310) Total derivatives $ 5,318 $ (2,062) The losses recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of Loss Recognized in Income on Derivatives Amount of Loss Recognized in Income on Derivatives Amount of Loss Recognized in Income on Derivatives Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest rate swaps Interest expense $ (735) $ (751) $ (1,536) $ (1,654) Note 7. Debt and Financing Arrangements (continued) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain Location of Loss Reclassified From AOCI into Income (Effective Portion*) Amount of Loss March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Interest rate swaps $ 4,413 $ 2,441 Interest expense $ (1,160) $ (1,249) * There is no ineffective portion or amounts 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 €25.0 million ($27,789), which includes €8.0 million ($8,893) for bank guarantees. In the first quarter of fiscal 2022, the Company extended this facility to a current maturity of December 2022 and the Company intends to continue to extend this facility. Outstanding borrowings under the credit facility totaled €7.8 million ($8,676) and €0.7 million ($817) at March 31, 2022 and September 30, 2021, respectively. The weighted-average interest rate on outstanding borrowings under this facility was 2.25% at March 31, 2022 and 2021. Other borrowings totaled $58,522 and $10,150 at March 31, 2022 and September 30, 2021, respectively. Other borrowings at March 31, 2022 included $37,789 of collateralized borrowings in connection with the RPA arrangement discussed above. The weighted-average interest rate on all other borrowings was 1.92% and 2.18% at March 31, 2022 and 2021, respectively. The Company has a U.S. Dollar/Euro cross currency swap with a notional amount of $94,464 as of March 31, 2022, which has been designated as a net investment hedge of foreign operations. The swap contract matures in September 2028. The Company assesses hedge effectiveness for this contract based on changes in fair value attributable to changes in spot prices. A gain of $2,893 (net of income taxes of $939) and a gain of $29 (net of income taxes of $10), which represented effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at March 31, 2022 and September 30, 2021, respectively. Income of $420 and $785, which represented the recognized portion of the fair value excluded from the assessment of hedge effectiveness, was included in current period earnings as a component of interest expense for the three and six months ended March 31, 2022, respectively. At March 31, 2022 and September 30, 2021, the swap, which is included in other assets in the Consolidated Balance Sheets, totaled $3,832 and $39, respectively. As of March 31, 2022 and September 30, 2021, the fair value of the Company's long-term debt, including current maturities, which is classified as Level 2 in the fair value hierarchy, approximated the carrying value included in the Consolidated Balance Sheets. The Company was in compliance with all of its debt covenants as of March 31, 2022. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments The Company maintains an equity incentive plan (as amended, 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 3,450,000, following the amendment and restatement of the 2017 Equity Incentive Plan at the Company's 2022 Annual Shareholder Meeting. At March 31, 2022, 211,788 shares have been issued under the 2017 Equity Incentive Plan. 769,698 time-based restricted share units, 933,212 performance-based restricted share units, and 75,000 stock options have been granted under the 2017 Equity Incentive Plan. 1,477,525 of these share-based awards are outstanding as of March 31, 2022. The 2017 Equity Incentive Plan is administered by the Compensation Committee of the Board of Directors. The number of shares issued under performance-based restricted share units may be up to 200% of the number of performance-based restricted share units, based on the satisfaction of specific criteria established by the plan administrator. For the three-month periods ended March 31, 2022 and 2021, stock-based compensation cost totaled $5,222 and $4,001, respectively. For the six-month periods ended March 31, 2022 and 2021, stock-based compensation cost totaled $8,931 and $7,247, respectively. The associated future income tax benefit recognized for stock-based compensation was $1,278 and $738 for the three-month periods ended March 31, 2022 and 2021, respectively, and $1,688 and $976 for the six-month periods ended March 31, 2022 and 2021, respectively. Note 8. Share-Based Payments (continued) 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 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. Such performance thresholds include adjusted earnings per share, return on invested capital, appreciation in the market value of the Company's Class A Common Stock, or other targets established by the Compensation Committee of the Board of Directors. Approximately 42% of the outstanding share units vest based on time, while the remaining vest based on pre-defined performance thresholds. The Company issues common stock from treasury shares once vested. The transactions for restricted shares and restricted share units for the six months ended March 31, 2022 were as follows: Shares /Units Weighted- Non-vested at September 30, 2021 1,083,365 $ 34.07 Granted 638,000 38.20 Vested (163,201) 42.21 Expired or forfeited (119,448) 48.06 Non-vested at March 31, 2022 1,438,716 $ 33.82 During the third quarter of fiscal 2021, 75,000 stock options were granted under the 2017 Equity Incentive Plan. The option price for each stock option granted was $41.70, which was equal to the fair market value of the Company's Class A Common Stock on the date of grant. These options vest in one-third increments annually over three years from the grant date. Unvested stock options expire on the earlier of five years from the date of grant, or upon employment termination, retirement or death. The Company generally settles employee stock option exercises with treasury shares. As of March 31, 2022, the total unrecognized compensation cost related to all unvested stock-based awards was $25,764 and is expected to be recognized over a weighted average period of 2.6 years. |
Earnings Per Share Attributable
Earnings Per Share Attributable to Matthews' Shareholders | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Matthews' Shareholders | Earnings Per Share Attributable to Matthews' Shareholders The information used to compute loss per share attributable to Matthews' common shareholders was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net (loss) income attributable to Matthews shareholders $ (1,905) $ 4,989 $ (21,708) $ 3,231 Weighted-average shares outstanding (in thousands): Basic shares 31,692 31,665 31,695 31,697 Effect of dilutive securities — 418 — 337 Diluted shares 31,692 32,083 31,695 32,034 Anti-dilutive securities excluded from the dilution calculation were insignificant for the three and six months ended March 31, 2022. During periods in which the Company incurs a net loss, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, Pension Other Postretirement 2022 2021 2022 2021 Service cost $ 5 $ 1,983 $ 41 $ 50 Interest cost * 48 1,546 103 94 Expected return on plan assets * — (2,762) — — Amortization: Prior service credit (66) (41) (91) (91) Net actuarial loss * 91 3,023 — — Net benefit cost $ 78 $ 3,749 $ 53 $ 53 Six months ended March 31, Pension Other Postretirement 2022 2021 2022 2021 Service cost $ 385 $ 4,196 $ 82 $ 100 Interest cost * 1,038 3,094 206 188 Expected return on plan assets * (1,042) (5,525) — — Amortization: Prior service credit (19) (58) (182) (182) Net actuarial loss * 292 6,044 — — Settlement loss * 30,856 — — — Net benefit cost $ 31,510 $ 7,751 $ 106 $ 106 * Non-service components of pension and postretirement expense are included in other income (deductions), net. Note 10. Pension and Other Postretirement Benefit Plans (continued) Benefit payments under the Company's principal defined benefit retirement plan ("DB Plan") were made from plan assets, while benefit payments under the supplemental retirement plan and postretirement benefit plan are made from the Company's operating funds. In the first quarter of fiscal 2022, the Company terminated its DB Plan and made plan contributions totaling $35,706 to fully fund the planned settlement of the DB Plan obligations. Also during the first quarter of fiscal 2022, lump sum distributions of $185,958 were made from the DB Plan to plan participants, and non-participating annuity contracts totaling $56,274 were purchased by the DB Plan for plan participants, resulting in the full settlement of the DB Plan obligations. The settlement of the DB Plan obligations resulted in the recognition of a non-cash charge of $30,856, which has been presented as a component of other income (deductions), net for the six months ended March 31, 2022. This amount represents the immediate recognition of the remaining portion of the deferred AOCI balances related to the DB Plan. Contributions made and anticipated for fiscal year 2022 are as follows: Contributions Pension Other Postretirement Contributions during the six months ended March 31, 2022: Principal defined benefit retirement plan $ 35,706 $ — Supplemental retirement plan 387 — Other postretirement plan — 340 Additional contributions expected in fiscal 2022: Supplemental retirement plan $ 373 $ — Other postretirement plan — 544 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and 2021 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2021 $ (1,797) $ (157,240) $ (77) $ (159,114) OCI before reclassification 23 (6,181) 3,538 (2,620) Amounts reclassified from AOCI (50) (a) — 554 (b) 504 Net current-period OCI (27) (6,181) 4,092 (2,116) Balance, March 31, 2022 $ (1,824) $ (163,421) $ 4,015 $ (161,230) Attributable to noncontrolling interest: Balance, December 31, 2021 $ — $ 245 $ — $ 245 OCI before reclassification — 4 — 4 Net current-period OCI — 4 — 4 Balance, March 31, 2022 $ — $ 249 $ — $ 249 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2020 $ (80,830) $ (134,826) $ (4,849) $ (220,505) OCI before reclassification — (8,898) 2,088 (6,810) Amounts reclassified from AOCI 2,255 (a) — 567 (b) 2,822 Net current-period OCI 2,255 (8,898) 2,655 (3,988) Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, December 31, 2020 $ — $ 365 $ — $ 365 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, March 31, 2021 $ — $ 366 $ — $ 366 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). Note 11. Accumulated Other Comprehensive Income (continued) The changes in AOCI by component, net of tax, for the six-month periods ended March 31, 2022 and 2021 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2021 $ (35,930) $ (155,251) $ (1,558) $ (192,739) OCI before reclassification 10,741 (8,170) 4,413 6,984 Amounts reclassified from AOCI 23,365 (a) — 1,160 (b) 24,525 Net current-period OCI 34,106 (8,170) 5,573 31,509 Balance, March 31, 2022 $ (1,824) $ (163,421) $ 4,015 $ (161,230) Attributable to noncontrolling interest: Balance, September 30, 2021 $ — $ 241 $ — $ 241 OCI before reclassification — 8 — 8 Net current-period OCI — 8 — 8 Balance, March 31, 2022 $ — $ 249 $ — $ 249 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification — 8,157 2,441 10,598 Amounts reclassified from AOCI 4,379 (a) — 1,249 (b) 5,628 Net current-period OCI 4,379 8,157 3,690 16,226 Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, September 30, 2020 $ — $ 368 $ — $ 368 OCI before reclassification — (2) — (2) Net current-period OCI — (2) — (2) Balance, March 31, 2021 $ — $ 366 $ — $ 366 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). Note 11. Accumulated Other Comprehensive Income (continued) Reclassifications out of AOCI for the three and six-month periods ended March 31, 2022 and 2021 were as follows: Amount reclassified from AOCI Three Months Ended March 31, 2022 Six Months Ended March 31, 2022 Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 157 $ 201 Actuarial losses (91) (292) Other income (deductions), net Settlement loss — (30,856) Other income (deductions), net 66 (30,947) Income before income tax (b) (16) 7,582 Income taxes $ 50 $ (23,365) Net income Derivatives Interest rate swap contracts $ (735) $ (1,536) Interest expense (735) (1,536) Income before income tax (b) 181 376 Income taxes $ (554) $ (1,160) Net income Three Months Ended Six Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 132 $ 240 Actuarial losses (3,023) (6,044) Other income (deductions), net (2,891) (5,804) Income before income tax (b) 636 1,425 Income taxes $ (2,255) $ (4,379) Net income Derivatives Interest rate swap contracts $ (751) $ (1,654) Interest expense (751) (1,654) Income before income tax (b) 184 405 Income taxes $ (567) $ (1,249) 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. For additional information, see Note 10. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2022 | |
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 first six months of fiscal 2022 were a benefit of $3,351, compared to an expense of $4,952 for the first six months of fiscal 2021. The difference between the Company’s consolidated income taxes for the first six months of fiscal 2022 compared to the same period for fiscal 2021 primarily resulted from a consolidated pre-tax loss in fiscal 2022 compared to pre-tax income in fiscal 2021. Additionally, fiscal 2022 included discrete tax expenses related to non-tax deductible asset write-downs in Russia, due to the full valuation allowance for the Russian entity. Fiscal 2021 included discrete tax expenses related to foreign operating losses, discrete tax benefits related to the resolution of uncertain tax liabilities, a net operating loss (“NOL”) carryback to tax years where the U.S. federal statutory rate was 35%, and additional foreign tax credits. The Company’s fiscal 2022 six month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to the non-deductible asset write-downs in Russia, state taxes, foreign statutory rate differentials, and tax credits. The Company’s fiscal 2021 six month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to discrete tax expenses related to foreign operating losses, discrete tax benefits related to the resolution of uncertain tax liabilities, a NOL carryback to tax years where the U.S. federal statutory rate was 35%, and additional foreign tax credits. The Company had unrecognized tax benefits (excluding penalties and interest) of $3,231 and $2,807 on March 31, 2022 and September 30, 2021, respectively, which would impact the annual effective rate at March 31, 2022 and September 30, 2021, respectively. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $350 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 $775 and $691 at March 31, 2022 and September 30, 2021, respectively. These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions. The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions. As of March 31, 2022, the tax years that remain subject to examination by major jurisdictions generally are: United States – Federal 2018 and forward United States – State 2017 and forward Canada 2019 and forward Germany 2019 and forward United Kingdom 2020 and forward Singapore 2018 and forward Australia 2018 and forward |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationThe Company manages its businesses under three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. Effective in the first quarter of fiscal 2022, the Company transferred its surfaces and engineered products businesses from the SGK Brand Solutions segment to the Industrial Technologies segment. This business segment change is consistent with internal management structure and reporting changes effective for fiscal 2022. Prior periods were revised to reflect retrospective application of this segment realignment. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, 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 the design, manufacturing, service and distribution of high-tech custom energy storage, marking, coding and industrial automation technologies and solutions, and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. Note 13. Segment Information (continued) 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. The following table sets forth information about the Company's segments, including a reconciliation of adjusted EBITDA to net income. Three Months Ended Six Months Ended 2022 2021 2022 2021 Sales: SGK Brand Solutions $ 146,820 $ 146,415 $ 300,362 $ 296,374 Memorialization 220,004 205,457 430,710 388,731 Industrial Technologies 78,154 65,282 152,485 118,706 Consolidated Sales $ 444,978 $ 417,154 $ 883,557 $ 803,811 Adjusted EBITDA: SGK Brand Solutions $ 13,462 $ 18,364 $ 28,876 $ 40,197 Memorialization 42,944 51,606 86,314 95,678 Industrial Technologies 14,385 8,277 21,568 11,273 Corporate and Non-Operating (15,601) (17,307) (28,235) (31,445) Total Adjusted EBITDA $ 55,190 $ 60,940 $ 108,523 $ 115,703 Strategic initiatives and other charges (1)** (6,750) (5,093) (10,573) (16,285) Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (2)*** (1,213) (1,572) (1,903) (2,696) Defined benefit plan termination related items (3) 79 — (347) — Asset write-downs (4) (10,486) — (10,486) — Stock-based compensation (5,222) (4,001) (8,931) (7,247) Non-service pension and postretirement expense (5) (242) (1,901) (31,350) (3,801) Depreciation and amortization * (23,724) (35,179) (57,225) (62,530) Interest expense (6,260) (7,233) (12,767) (14,961) Net (loss) income attributable to noncontrolling interests (31) 163 (38) (71) Income (loss) before income taxes 1,341 6,124 (25,097) 8,112 Income tax (provision) benefit (3,277) (972) 3,351 (4,952) Net loss $ (1,936) $ 5,152 $ (21,746) $ 3,160 Note 13. Segment Information (continued) (1) Includes certain non-recurring items associated with recent acquisition activities, costs associated with global ERP system integration efforts, and certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (2) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. (3) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. (4) Represents asset write-downs within the SGK Brand Solutions segment (see Note 15, "Asset Write-Downs"). (5) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement 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. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. 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 $14,060 and $25,261 for the SGK Brand Solutions segment, $5,803 and $5,709 for the Memorialization segment, $2,531 and $2,880 for the Industrial Technologies segment, and $1,330 and $1,329 for Corporate and Non-Operating, for the three months ended March 31, 2022 and 2021, respectively. Depreciation and amortization was $37,785 and $43,109 for the SGK Brand Solutions segment, $11,613 and $11,178 for the Memorialization segment, $5,184 and $5,620 for the Industrial Technologies segment, and $2,643 and $2,623 for Corporate and Non-Operating, for the six months ended March 31, 2022 and 2021, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $4,475 and $2,865 for the SGK Brand Solutions segment, charges of $516 and income of $335 for the Memorialization segment, charges of $161 and $126 for the Industrial Technologies segment, and $1,598 and $2,437 for Corporate and Non-Operating, for the three months ended March 31, 2022 and 2021, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $5,703 and $7,561 for the SGK Brand Solutions segment, $1,188 and $795 for the Memorialization segment, $193 and $2,785 for the Industrial Technologies segment, and $3,489 and $5,144 for Corporate and Non-Operating, for the six months ended March 31, 2022 and 2021, respectively. *** Non-recurring/incremental COVID-19 costs were $170 and $297 for the SGK Brand Solutions segment, $579 and $1,240 for the Memorialization segment, $1 and $12 for the Industrial Technologies segment, and $463 and $23 for Corporate and Non-Operating, for the three months ended March 31, 2022 and 2021, respectively. Non-recurring/incremental COVID-19 costs were $390 and $706 for the SGK Brand Solutions segment, $1,043 and $1,890 for the Memorialization segment, $5 and $30 for the Industrial Technologies segment, and $465 and $70 for Corporate and Non-Operating, for the six months ended March 31, 2022 and 2021, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Mar. 31, 2022 | |
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 Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2021 $ 314,850 $ 366,360 $ 92,577 $ 773,787 Translation and other adjustments (3,524) (1,010) (142) (4,676) Net goodwill at March 31, 2022 $ 311,326 $ 365,350 $ 92,435 $ 769,111 The net goodwill balances at March 31, 2022 and September 30, 2021 included $178,732 of accumulated impairment losses. Accumulated impairment losses at March 31, 2022 and September 30, 2021 were $149,786, $5,000, and $23,946 for the SGK Brand Solutions, Memorialization, and Industrial Technologies segments, respectively. The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2022 (January 1, 2022) and determined that the estimated fair values for all goodwill reporting units exceeded their carrying values, therefore no impairment charges were necessary. The estimated fair value of the Company's Graphics Imaging reporting unit, within the SGK Brand Solutions segment, exceeded the carrying value (expressed as a percentage of carrying value) by approximately 10%. If current projections are not achieved or specific valuation factors outside the Company’s control (such as discount rates and continued economic and industry impacts of COVID-19) significantly change, goodwill write-downs may be necessary in future periods. Note 14. Goodwill and Other Intangible Assets (continued) The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of March 31, 2022 and September 30, 2021, respectively. Carrying Accumulated Net March 31, 2022: Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,695 (115,701) 32,994 Customer relationships 387,088 (230,723) 156,365 Copyrights/patents/other 21,767 (14,411) 7,356 $ 588,090 $ (360,835) $ 227,255 September 30, 2021 : Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,867 (104,211) 44,656 Customer relationships 388,699 (210,361) 178,338 Copyrights/patents/other 23,584 (15,576) 8,008 $ 591,690 $ (330,148) $ 261,542 The net change in intangible assets during the six months ended March 31, 2022 included the impact of foreign currency fluctuations during the period and additional amortization. |
Asset Write-Downs
Asset Write-Downs | 6 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Write-Downs | Asset Write-Downs The Company has certain operations in Russia within its SGK Brand Solutions segment. In light of the current war between Russia and Ukraine, and the resulting regional instability and evolving political and economic conditions within the region, the Company evaluated certain of its assets for recoverability and impairment. As a result of this assessment, and due to the uncertainty in projecting future cash flows for the Company's operations in Russia, the Company recorded asset write-downs totaling $10,486 during the second quarter of fiscal 2022 to reduce the carrying value of these assets to zero. Asset write-downs (primarily related to property, plant and equipment) totaling $9,686 and $800 were reported within cost of sales and administrative expense, respectively, for the three and six months ended March 31, 2022. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated sales by segment and region for the three and six months ended March 31, 2022 and 2021 were as follows: SGK Brand Solutions Memorialization Industrial Technologies Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2022 2021 2022 2021 2022 2021 2022 2021 North America $ 69,080 $ 66,282 $ 205,655 $ 190,253 $ 34,768 $ 32,260 $ 309,503 $ 288,795 Central and South America 1,123 1,319 — — — — 1,123 1,319 Europe 60,852 64,581 11,924 12,662 41,611 31,622 114,387 108,865 Australia 2,687 3,456 2,425 2,542 — — 5,112 5,998 Asia 13,078 10,777 — — 1,775 1,400 14,853 12,177 Total Sales $ 146,820 $ 146,415 $ 220,004 $ 205,457 $ 78,154 $ 65,282 $ 444,978 $ 417,154 SGK Brand Solutions Memorialization Industrial Technologies Consolidated Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 North America $ 143,270 $ 136,684 $ 402,406 $ 360,577 $ 71,133 $ 59,895 $ 616,809 $ 557,156 Central and South America 2,143 2,694 — — — — 2,143 2,694 Europe 121,854 128,209 23,438 23,102 78,166 55,794 223,458 207,105 Australia 5,555 6,937 4,866 5,052 — — 10,421 11,989 Asia 27,540 21,850 — — 3,186 3,017 30,726 24,867 Total Sales $ 300,362 $ 296,374 $ 430,710 $ 388,731 $ 152,485 $ 118,706 $ 883,557 $ 803,811 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 September 30, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 9,464 $ — $ 9,464 $ — $ 209 $ — $ 209 Equity and fixed income mutual funds — 3,646 — 3,646 — 6,936 — 6,936 Life insurance policies — 4,560 — 4,560 — 4,626 — 4,626 Total assets at fair value $ — $ 17,670 $ — $ 17,670 $ — $ 11,771 $ — $ 11,771 Liabilities: Derivatives (1) $ — $ 314 $ — $ 314 $ — $ 2,232 $ — $ 2,232 Total liabilities at fair value $ — $ 314 $ — $ 314 $ — $ 2,232 $ — $ 2,232 (1) Interest rate swaps and cross currency swaps are valued based on observable market swap rates and are classified within Level 2 of the fair value hierarchy. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, 2022 September 30, 2021 Raw materials $ 46,485 $ 37,673 Work in process 78,527 75,997 Finished goods 76,554 75,418 $ 201,566 $ 189,088 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Current Investments | Non-current investments consisted of the following: March 31, 2022 September 30, 2021 Equity and fixed income mutual funds $ — $ 6,936 Life insurance policies 4,560 4,626 Equity-method investments 379 458 Other (primarily cost-method) investments 18,758 18,418 $ 23,697 $ 30,438 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt at March 31, 2022 and September 30, 2021 consisted of the following: March 31, 2022 September 30, 2021 Revolving credit facilities $ 389,216 $ 350,597 Securitization facility — 95,990 2025 Senior Notes 298,065 297,796 Other borrowings 58,522 10,150 Finance lease obligations 7,161 9,177 Total debt 752,964 763,710 Less current maturities (3,872) (4,624) Long-term debt $ 749,092 $ 759,086 |
Interest Rate Contracts | The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges: March 31, 2022 September 30, 2021 Pay fixed swaps - notional amount $ 225,000 $ 250,000 Net unrealized gain (loss) $ 5,318 $ (2,062) Weighted-average maturity period (years) 1.9 2.2 Weighted-average received rate 0.45 % 0.08 % Weighted-average pay rate 1.37 % 1.34 % |
Interest Rate Swap Contracts as Reflected on Balance Sheet | At March 31, 2022 and September 30, 2021, the interest rate swap contracts were reflected on a gross-basis in the Consolidated Balance Sheets as follows: Derivatives March 31, 2022 September 30, 2021 Current assets: Other current assets $ 1,426 $ 31 Long-term assets: Other assets 4,206 139 Current liabilities: Other current liabilities (314) (1,922) Long-term liabilities: Other liabilities — (310) Total derivatives $ 5,318 $ (2,062) |
Gain (Loss) on Derivatives | The losses recognized on derivatives were as follows: Derivatives in Cash Flow Hedging Relationships Location of Loss Recognized in Income on Derivatives Amount of Loss Recognized in Income on Derivatives Amount of Loss Recognized in Income on Derivatives Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest rate swaps Interest expense $ (735) $ (751) $ (1,536) $ (1,654) The Company recognized the following gains (losses) in AOCI: Derivatives in Cash Flow Hedging Relationships Amount of Gain Location of Loss Reclassified From AOCI into Income (Effective Portion*) Amount of Loss March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Interest rate swaps $ 4,413 $ 2,441 Interest expense $ (1,160) $ (1,249) * There is no ineffective portion or amounts excluded from effectiveness testing. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Activity | The transactions for restricted shares and restricted share units for the six months ended March 31, 2022 were as follows: Shares /Units Weighted- Non-vested at September 30, 2021 1,083,365 $ 34.07 Granted 638,000 38.20 Vested (163,201) 42.21 Expired or forfeited (119,448) 48.06 Non-vested at March 31, 2022 1,438,716 $ 33.82 |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Matthews' Shareholders (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Information Used to Compute Earnings (Loss) per Share Attributable to Matthews' Common Shareholders | The information used to compute loss per share attributable to Matthews' common shareholders was as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net (loss) income attributable to Matthews shareholders $ (1,905) $ 4,989 $ (21,708) $ 3,231 Weighted-average shares outstanding (in thousands): Basic shares 31,692 31,665 31,695 31,697 Effect of dilutive securities — 418 — 337 Diluted shares 31,692 32,083 31,695 32,034 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, Pension Other Postretirement 2022 2021 2022 2021 Service cost $ 5 $ 1,983 $ 41 $ 50 Interest cost * 48 1,546 103 94 Expected return on plan assets * — (2,762) — — Amortization: Prior service credit (66) (41) (91) (91) Net actuarial loss * 91 3,023 — — Net benefit cost $ 78 $ 3,749 $ 53 $ 53 Six months ended March 31, Pension Other Postretirement 2022 2021 2022 2021 Service cost $ 385 $ 4,196 $ 82 $ 100 Interest cost * 1,038 3,094 206 188 Expected return on plan assets * (1,042) (5,525) — — Amortization: Prior service credit (19) (58) (182) (182) Net actuarial loss * 292 6,044 — — Settlement loss * 30,856 — — — Net benefit cost $ 31,510 $ 7,751 $ 106 $ 106 * 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 2022 are as follows: Contributions Pension Other Postretirement Contributions during the six months ended March 31, 2022: Principal defined benefit retirement plan $ 35,706 $ — Supplemental retirement plan 387 — Other postretirement plan — 340 Additional contributions expected in fiscal 2022: Supplemental retirement plan $ 373 $ — Other postretirement plan — 544 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and 2021 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2021 $ (1,797) $ (157,240) $ (77) $ (159,114) OCI before reclassification 23 (6,181) 3,538 (2,620) Amounts reclassified from AOCI (50) (a) — 554 (b) 504 Net current-period OCI (27) (6,181) 4,092 (2,116) Balance, March 31, 2022 $ (1,824) $ (163,421) $ 4,015 $ (161,230) Attributable to noncontrolling interest: Balance, December 31, 2021 $ — $ 245 $ — $ 245 OCI before reclassification — 4 — 4 Net current-period OCI — 4 — 4 Balance, March 31, 2022 $ — $ 249 $ — $ 249 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, December 31, 2020 $ (80,830) $ (134,826) $ (4,849) $ (220,505) OCI before reclassification — (8,898) 2,088 (6,810) Amounts reclassified from AOCI 2,255 (a) — 567 (b) 2,822 Net current-period OCI 2,255 (8,898) 2,655 (3,988) Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, December 31, 2020 $ — $ 365 $ — $ 365 OCI before reclassification — 1 — 1 Net current-period OCI — 1 — 1 Balance, March 31, 2021 $ — $ 366 $ — $ 366 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). Note 11. Accumulated Other Comprehensive Income (continued) The changes in AOCI by component, net of tax, for the six-month periods ended March 31, 2022 and 2021 were as follows: Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2021 $ (35,930) $ (155,251) $ (1,558) $ (192,739) OCI before reclassification 10,741 (8,170) 4,413 6,984 Amounts reclassified from AOCI 23,365 (a) — 1,160 (b) 24,525 Net current-period OCI 34,106 (8,170) 5,573 31,509 Balance, March 31, 2022 $ (1,824) $ (163,421) $ 4,015 $ (161,230) Attributable to noncontrolling interest: Balance, September 30, 2021 $ — $ 241 $ — $ 241 OCI before reclassification — 8 — 8 Net current-period OCI — 8 — 8 Balance, March 31, 2022 $ — $ 249 $ — $ 249 Post-retirement benefit plans Currency translation adjustment Derivatives Total Attributable to Matthews: Balance, September 30, 2020 $ (82,954) $ (151,881) $ (5,884) $ (240,719) OCI before reclassification — 8,157 2,441 10,598 Amounts reclassified from AOCI 4,379 (a) — 1,249 (b) 5,628 Net current-period OCI 4,379 8,157 3,690 16,226 Balance, March 31, 2021 $ (78,575) $ (143,724) $ (2,194) $ (224,493) Attributable to noncontrolling interest: Balance, September 30, 2020 $ — $ 368 $ — $ 368 OCI before reclassification — (2) — (2) Net current-period OCI — (2) — (2) Balance, March 31, 2021 $ — $ 366 $ — $ 366 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7). |
Reclassifications out of AOCI | Reclassifications out of AOCI for the three and six-month periods ended March 31, 2022 and 2021 were as follows: Amount reclassified from AOCI Three Months Ended March 31, 2022 Six Months Ended March 31, 2022 Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 157 $ 201 Actuarial losses (91) (292) Other income (deductions), net Settlement loss — (30,856) Other income (deductions), net 66 (30,947) Income before income tax (b) (16) 7,582 Income taxes $ 50 $ (23,365) Net income Derivatives Interest rate swap contracts $ (735) $ (1,536) Interest expense (735) (1,536) Income before income tax (b) 181 376 Income taxes $ (554) $ (1,160) Net income Three Months Ended Six Months Ended Affected line item in the Statement of income Postretirement benefit plans Prior service credit (a) $ 132 $ 240 Actuarial losses (3,023) (6,044) Other income (deductions), net (2,891) (5,804) Income before income tax (b) 636 1,425 Income taxes $ (2,255) $ (4,379) Net income Derivatives Interest rate swap contracts $ (751) $ (1,654) Interest expense (751) (1,654) Income before income tax (b) 184 405 Income taxes $ (567) $ (1,249) 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. For additional information, see Note 10. (b) For pre-tax items, positive amounts represent income and negative amounts represent expense. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Tax Years Subject to Examination | As of March 31, 2022, the tax years that remain subject to examination by major jurisdictions generally are: United States – Federal 2018 and forward United States – State 2017 and forward Canada 2019 and forward Germany 2019 and forward United Kingdom 2020 and forward Singapore 2018 and forward Australia 2018 and forward |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Six Months Ended 2022 2021 2022 2021 Sales: SGK Brand Solutions $ 146,820 $ 146,415 $ 300,362 $ 296,374 Memorialization 220,004 205,457 430,710 388,731 Industrial Technologies 78,154 65,282 152,485 118,706 Consolidated Sales $ 444,978 $ 417,154 $ 883,557 $ 803,811 Adjusted EBITDA: SGK Brand Solutions $ 13,462 $ 18,364 $ 28,876 $ 40,197 Memorialization 42,944 51,606 86,314 95,678 Industrial Technologies 14,385 8,277 21,568 11,273 Corporate and Non-Operating (15,601) (17,307) (28,235) (31,445) Total Adjusted EBITDA $ 55,190 $ 60,940 $ 108,523 $ 115,703 Strategic initiatives and other charges (1)** (6,750) (5,093) (10,573) (16,285) Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (2)*** (1,213) (1,572) (1,903) (2,696) Defined benefit plan termination related items (3) 79 — (347) — Asset write-downs (4) (10,486) — (10,486) — Stock-based compensation (5,222) (4,001) (8,931) (7,247) Non-service pension and postretirement expense (5) (242) (1,901) (31,350) (3,801) Depreciation and amortization * (23,724) (35,179) (57,225) (62,530) Interest expense (6,260) (7,233) (12,767) (14,961) Net (loss) income attributable to noncontrolling interests (31) 163 (38) (71) Income (loss) before income taxes 1,341 6,124 (25,097) 8,112 Income tax (provision) benefit (3,277) (972) 3,351 (4,952) Net loss $ (1,936) $ 5,152 $ (21,746) $ 3,160 Note 13. Segment Information (continued) (1) Includes certain non-recurring items associated with recent acquisition activities, costs associated with global ERP system integration efforts, and certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels. (2) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19. (3) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan. (4) Represents asset write-downs within the SGK Brand Solutions segment (see Note 15, "Asset Write-Downs"). (5) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement 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. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. 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 $14,060 and $25,261 for the SGK Brand Solutions segment, $5,803 and $5,709 for the Memorialization segment, $2,531 and $2,880 for the Industrial Technologies segment, and $1,330 and $1,329 for Corporate and Non-Operating, for the three months ended March 31, 2022 and 2021, respectively. Depreciation and amortization was $37,785 and $43,109 for the SGK Brand Solutions segment, $11,613 and $11,178 for the Memorialization segment, $5,184 and $5,620 for the Industrial Technologies segment, and $2,643 and $2,623 for Corporate and Non-Operating, for the six months ended March 31, 2022 and 2021, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $4,475 and $2,865 for the SGK Brand Solutions segment, charges of $516 and income of $335 for the Memorialization segment, charges of $161 and $126 for the Industrial Technologies segment, and $1,598 and $2,437 for Corporate and Non-Operating, for the three months ended March 31, 2022 and 2021, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $5,703 and $7,561 for the SGK Brand Solutions segment, $1,188 and $795 for the Memorialization segment, $193 and $2,785 for the Industrial Technologies segment, and $3,489 and $5,144 for Corporate and Non-Operating, for the six months ended March 31, 2022 and 2021, respectively. *** Non-recurring/incremental COVID-19 costs were $170 and $297 for the SGK Brand Solutions segment, $579 and $1,240 for the Memorialization segment, $1 and $12 for the Industrial Technologies segment, and $463 and $23 for Corporate and Non-Operating, for the three months ended March 31, 2022 and 2021, respectively. Non-recurring/incremental COVID-19 costs were $390 and $706 for the SGK Brand Solutions segment, $1,043 and $1,890 for the Memorialization segment, $5 and $30 for the Industrial Technologies segment, and $465 and $70 for Corporate and Non-Operating, for the six months ended March 31, 2022 and 2021, respectively. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Memorialization Industrial Technologies Consolidated Net goodwill at September 30, 2021 $ 314,850 $ 366,360 $ 92,577 $ 773,787 Translation and other adjustments (3,524) (1,010) (142) (4,676) Net goodwill at March 31, 2022 $ 311,326 $ 365,350 $ 92,435 $ 769,111 |
Other Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of March 31, 2022 and September 30, 2021, respectively. Carrying Accumulated Net March 31, 2022: Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,695 (115,701) 32,994 Customer relationships 387,088 (230,723) 156,365 Copyrights/patents/other 21,767 (14,411) 7,356 $ 588,090 $ (360,835) $ 227,255 September 30, 2021 : Indefinite-lived trade names $ 30,540 $ — $ 30,540 Definite-lived trade names 148,867 (104,211) 44,656 Customer relationships 388,699 (210,361) 178,338 Copyrights/patents/other 23,584 (15,576) 8,008 $ 591,690 $ (330,148) $ 261,542 |
Nature of Operations (Details)
Nature of Operations (Details) | 6 Months Ended |
Mar. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 444,978 | $ 417,154 | $ 883,557 | $ 803,811 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 309,503 | 288,795 | 616,809 | 557,156 |
Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,123 | 1,319 | 2,143 | 2,694 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 114,387 | 108,865 | 223,458 | 207,105 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 5,112 | 5,998 | 10,421 | 11,989 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 14,853 | 12,177 | 30,726 | 24,867 |
SGK Brand Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 146,820 | 146,415 | 300,362 | 296,374 |
SGK Brand Solutions | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 69,080 | 66,282 | 143,270 | 136,684 |
SGK Brand Solutions | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 1,123 | 1,319 | 2,143 | 2,694 |
SGK Brand Solutions | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 60,852 | 64,581 | 121,854 | 128,209 |
SGK Brand Solutions | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 2,687 | 3,456 | 5,555 | 6,937 |
SGK Brand Solutions | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 13,078 | 10,777 | 27,540 | 21,850 |
Memorialization | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 220,004 | 205,457 | 430,710 | 388,731 |
Memorialization | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 205,655 | 190,253 | 402,406 | 360,577 |
Memorialization | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Memorialization | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 11,924 | 12,662 | 23,438 | 23,102 |
Memorialization | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 2,425 | 2,542 | 4,866 | 5,052 |
Memorialization | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 78,154 | 65,282 | 152,485 | 118,706 |
Industrial Technologies | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 34,768 | 32,260 | 71,133 | 59,895 |
Industrial Technologies | Central and South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 41,611 | 31,622 | 78,166 | 55,794 |
Industrial Technologies | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Industrial Technologies | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,775 | $ 1,400 | $ 3,186 | $ 3,017 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Contract assets | $ 22,896 | $ 22,896 | $ 23,998 | ||
Contract liabilities | $ 12,701 | $ 12,701 | $ 19,752 | ||
Revenue Benchmark | Product Concentration Risk | Transferred over Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage | 9.00% | 9.00% | 11.00% | 8.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Assets: | ||
Life insurance policies | $ 18,758 | $ 18,418 |
Recurring | ||
Assets: | ||
Derivatives | 9,464 | 209 |
Equity and fixed income mutual funds | 3,646 | 6,936 |
Life insurance policies | 4,560 | 4,626 |
Total assets at fair value | 17,670 | 11,771 |
Liabilities: | ||
Derivatives | 314 | 2,232 |
Total liabilities at fair value | 314 | 2,232 |
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 | 9,464 | 209 |
Equity and fixed income mutual funds | 3,646 | 6,936 |
Life insurance policies | 4,560 | 4,626 |
Total assets at fair value | 17,670 | 11,771 |
Liabilities: | ||
Derivatives | 314 | 2,232 |
Total liabilities at fair value | 314 | 2,232 |
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 | Mar. 31, 2022 | Sep. 30, 2021 |
Inventories, net [Abstract] | ||
Raw materials | $ 46,485 | $ 37,673 |
Work in process | 78,527 | 75,997 |
Finished goods | 76,554 | 75,418 |
Inventories | $ 201,566 | $ 189,088 |
Investments - Non-Current Inves
Investments - Non-Current Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Non-current investments [Abstract] | ||
Equity and fixed income mutual funds | $ 0 | $ 6,936 |
Life insurance policies | 4,560 | 4,626 |
Equity-method investments | 379 | 458 |
Other (primarily cost-method) investments | 18,758 | 18,418 |
Total non-current investments | $ 23,697 | $ 30,438 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 752,964 | $ 763,710 |
Finance lease obligations | 7,161 | 9,177 |
Less current maturities | (3,872) | (4,624) |
Long-term debt | 749,092 | 759,086 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 298,065 | 297,796 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 58,522 | 10,150 |
Revolving credit facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt | 389,216 | 350,597 |
Securitization facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 95,990 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2022USD ($) | Sep. 30, 2021USD ($) | Feb. 28, 2022USD ($) | Mar. 31, 2022EUR (€) | Sep. 30, 2021EUR (€) | Mar. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||||
Other borrowings | $ 752,964,000 | $ 752,964,000 | $ 763,710,000 | ||||
Designated as Hedging Instrument | |||||||
Line of Credit Facility [Line Items] | |||||||
Unrealized loss expected to be recognized over the next 12 months | 839,000 | 839,000 | |||||
Designated as Hedging Instrument | Interest rate swap contracts | Cash Flow Hedging | |||||||
Line of Credit Facility [Line Items] | |||||||
Net unrealized gain (loss) | 5,318,000 | (2,062,000) | |||||
Unrealized loss on fair value of interest rate swaps, after tax | 4,015,000 | (1,558,000) | |||||
Derivative, notional amount | 225,000,000 | 225,000,000 | 250,000,000 | ||||
Designated as Hedging Instrument | Currency Swap | Net Investment Hedging | |||||||
Line of Credit Facility [Line Items] | |||||||
Derivative, notional amount | 94,464,000 | 94,464,000 | |||||
Net investment hedge, gain, after reclassification and tax | 2,893,000 | 29,000 | |||||
Net investment hedge, gain, after reclassification, tax | 939,000 | 10,000 | |||||
Designated as Hedging Instrument | Currency Swap | Net Investment Hedging | Other Noncurrent Assets | |||||||
Line of Credit Facility [Line Items] | |||||||
Derivative asset, noncurrent | 3,832,000 | 3,832,000 | 39,000 | ||||
Designated as Hedging Instrument | Currency Swap | Net Investment Hedging | Interest Expense | |||||||
Line of Credit Facility [Line Items] | |||||||
Net investment hedge income | 420,000 | 785,000 | |||||
2025 Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Unamortized debt costs | 1,935,000 | 1,935,000 | 2,204,000 | ||||
Other borrowings | $ 298,065,000 | $ 298,065,000 | $ 297,796,000 | ||||
Other borrowings | |||||||
Line of Credit Facility [Line Items] | |||||||
Weighted-average interest rate on outstanding borrowings (as a percent) | 1.92% | 1.92% | 2.18% | 1.92% | 2.18% | ||
Other borrowings | $ 58,522,000 | $ 58,522,000 | $ 10,150,000 | ||||
Foreign Line of Credit | Credit Facility With European Bank | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum amount of borrowings available | 27,789,000 | 27,789,000 | € 25,000,000 | ||||
Outstanding borrowings | $ 8,676,000 | $ 8,676,000 | 817,000 | € 7,800,000 | € 700,000 | ||
Weighted-average interest rate on outstanding borrowings (as a percent) | 2.25% | 2.25% | 2.25% | 2.25% | |||
Foreign Line of Credit | Bank Guarantees | Credit Facility With European Bank | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum amount of borrowings available | $ 8,893,000 | $ 8,893,000 | € 8,000,000 | ||||
March 2020 Debt Amendment | Revolving credit facilities | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum amount of borrowings available | 750,000,000 | 750,000,000 | |||||
Maximum borrowing amount drawn In foreign currency | 350,000,000 | 350,000,000 | |||||
Unamortized debt costs | 1,826,000 | $ 1,826,000 | 2,182,000 | ||||
March 2020 Debt Amendment | Revolving credit facilities | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Annual commitment fee range on unused portion (as a percent) | 0.15% | ||||||
March 2020 Debt Amendment | Revolving credit facilities | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Annual commitment fee range on unused portion (as a percent) | 0.30% | ||||||
March 2020 Debt Amendment | Revolving credit facilities | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate during period (as a percent) | 1.00% | ||||||
March 2020 Debt Amendment | Revolving credit facilities | LIBOR | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate on borrowings (as a percent) | 0.75% | ||||||
March 2020 Debt Amendment | Revolving credit facilities | LIBOR | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate on borrowings (as a percent) | 2.00% | ||||||
March 2020 Debt Amendment | Domestic Revolving Credit Facility | |||||||
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) | 1.89% | 1.89% | 1.89% | 2.17% | |||
March 2020 Debt Amendment | Domestic Revolving Credit Facility | United States of America, Dollars | |||||||
Line of Credit Facility [Line Items] | |||||||
Outstanding borrowings | $ 380,540,000 | $ 380,540,000 | $ 349,780,000 | ||||
Senior Notes 2025 | 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% | ||||
Receivables Purchase Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Facility limit | $ 125,000 | $ 125,000 | |||||
Gross receivables sold | 121,616,000 | 121,616,000 | |||||
Cash collections | 46,615,000 | ||||||
Receivables sold to Purchasers | 75,001,000 | 75,001,000 | |||||
Unsold receivables | 29,288,000 | 29,288,000 | |||||
Receivables Purchase Agreement | Other borrowings | |||||||
Line of Credit Facility [Line Items] | |||||||
Other borrowings | $ 37,789,000 | $ 37,789,000 | |||||
Securitization facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum amount of borrowings available | $ 115,000 | ||||||
Outstanding borrowings | $ 95,990,000 | ||||||
Interest rate on facility (as a percent) | 0.86% | ||||||
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% |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Interest Rate Contracts (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swap contracts - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||
Pay fixed swaps - notional amount | $ 225,000 | $ 250,000 |
Net unrealized gain (loss) | $ 5,318 | $ (2,062) |
Weighted-average maturity period (years) | 1 year 10 months 24 days | 2 years 2 months 12 days |
Weighted-average received rate (as a percent) | 0.45% | 0.08% |
Weighted-average pay rate (as a percent) | 1.37% | 1.34% |
Debt and Financing Arrangemen_6
Debt and Financing Arrangements - Interest Rate Swap Contracts as Reflected on Balance Sheet (Details) - Designated as Hedging Instrument - Interest Rate Swaps - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ 5,318 | $ (2,062) |
Current Assets: Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 1,426 | 31 |
Long-Term Assets: Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets derivatives | 4,206 | 139 |
Current Liabilities: Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | (314) | (1,922) |
Long-Term Liabilities: Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 0 | $ (310) |
Debt and Financing Arrangemen_7
Debt and Financing Arrangements - Gain (Loss) on Derivatives (Details) - Cash Flow Hedging - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Recognized in AOCI on Derivatives | $ 4,413 | $ 2,441 | ||
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in Income on Derivatives | $ (735) | $ (751) | (1,536) | (1,654) |
Amount of Loss Reclassified from AOCI into Income (Effective Portion*) | $ (1,160) | $ (1,249) |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Nov. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total stock-based compensation cost | $ 5,222 | $ 4,001 | $ 8,931 | $ 7,247 | ||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 638,000 | |||||
Percent of shares vested on time | 42.00% | |||||
Unrecognized compensation cost on non-vested awards | $ 25,764 | $ 25,764 | ||||
Weighted average period of recognition of unrecognized compensation cost on non-vested awards | 2 years 7 months 6 days | |||||
Restricted stock awards unvested (in shares) | 58,008 | 58,008 | ||||
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 | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting increment | 50.00% | |||||
Restricted Stock | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting increment | 25.00% | |||||
Restricted Stock | Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting increment | 25.00% | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 5 years | |||||
Award vesting period | 3 years | |||||
Stock Options | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting increment | 33.33% | |||||
Stock Options | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting increment | 33.33% | |||||
Stock Options | Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting increment | 33.33% | |||||
2017 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 75,000 | |||||
Share price of options granted (in dollars per share) | $ 41.70 | |||||
2017 Equity Incentive Plan | Stock Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Term of plan | 10 years | |||||
Amended 2017 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for future issuance under award plan (in shares) | 3,450,000 | |||||
Shares issuance under award plan (in shares) | 211,788 | |||||
Options granted (in shares) | 75,000 | |||||
Share-based awards outstanding (in shares) | 1,477,525 | 1,477,525 | ||||
Percentage of outstanding stock maximum | 200.00% | |||||
Amended 2017 Plan | Time-Based Restricted Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 769,698 | |||||
Amended 2017 Plan | Performance-Based Restricted Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 933,212 | |||||
Retirement Eligible Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Future income tax benefit from compensation expense recognized | $ 1,278 | $ 738 | $ 1,688 | $ 976 | ||
Director Fee Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares deferred under stock based compensation plan (in shares) | 44,943 | 44,943 | ||||
Value of annual stock based grant | $ 140 | |||||
Total restricted stock awards granted to date (in shares) | 305,911 | 305,911 | ||||
Restricted stock awards unvested (in shares) | 132,682 | 132,682 | ||||
2014 Director Fee Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual retainer fee paid to non-employee directors | $ 90 | |||||
Annual retainer fee paid to non-employee Chairman of the Board | $ 210 | |||||
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 | 150,000 |
Share-Based Payments - Restrict
Share-Based Payments - Restricted Stock Activity (Details) - Restricted Stock | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Shares /Units | |
Non-vested at beginning of period (in shares) | shares | 1,083,365 |
Granted (in shares) | shares | 638,000 |
Vested (in shares) | shares | (163,201) |
Expired or forfeited (in shares) | shares | (119,448) |
Non-vested at end of period (in shares) | shares | 1,438,716 |
Weighted- average Grant-date Fair Value | |
Non-vested weighted-average grant-date fair value, beginning of period (in dollars per share) | $ / shares | $ 34.07 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 38.20 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 42.21 |
Expired or forfeited, weighted-average grant-date fair value (in dollars per share) | $ / shares | 48.06 |
Non-vested weighted-average grant-date fair value, end of period (in dollars per share) | $ / shares | $ 33.82 |
Earnings Per Share Attributab_3
Earnings Per Share Attributable to Matthews' Shareholders (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to Matthews shareholders | $ (1,905) | $ 4,989 | $ (21,708) | $ 3,231 |
Weighted-average shares outstanding (in thousands): | ||||
Basic shares | 31,692 | 31,665 | 31,695 | 31,697 |
Effect of dilutive securities (in shares) | 0 | 418 | 0 | 337 |
Diluted shares | 31,692 | 32,083 | 31,695 | 32,034 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Amortization: | |||||
Settlement loss | $ 30,856 | ||||
Employer contributions | $ 35,706 | ||||
Benefit payments | 185,958 | ||||
Annuity contracts purchased | $ 56,274 | ||||
Pension | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | $ 5 | $ 1,983 | 385 | $ 4,196 | |
Interest cost | 48 | 1,546 | 1,038 | 3,094 | |
Expected return on plan assets | 0 | (2,762) | (1,042) | (5,525) | |
Amortization: | |||||
Prior service credit | (66) | (41) | (19) | (58) | |
Net actuarial loss | 91 | 3,023 | 292 | 6,044 | |
Settlement loss | 30,856 | 0 | |||
Net benefit cost | 78 | 3,749 | 31,510 | 7,751 | |
Contributions during the six months ended March 31, 2022: | |||||
Pension | 35,706 | ||||
Other Postretirement | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | 41 | 50 | 82 | 100 | |
Interest cost | 103 | 94 | 206 | 188 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization: | |||||
Prior service credit | (91) | (91) | (182) | (182) | |
Net actuarial loss | 0 | 0 | 0 | 0 | |
Settlement loss | 0 | 0 | |||
Net benefit cost | 53 | $ 53 | 106 | $ 106 | |
Contributions during the six months ended March 31, 2022: | |||||
Other Postretirement | 340 | ||||
Additional contributions expected in fiscal 2022: | |||||
Additional contributions expected in fiscal 2022 | 544 | 544 | |||
Supplemental retirement plan | |||||
Contributions during the six months ended March 31, 2022: | |||||
Pension | 387 | ||||
Additional contributions expected in fiscal 2022: | |||||
Additional contributions expected in fiscal 2022 | $ 373 | $ 373 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Attributable to Matthews: | ||||
Beginning balance | $ 644,672 | $ 621,853 | $ 636,403 | $ 611,433 |
Net current-period OCI | (2,112) | (3,987) | 31,517 | 16,224 |
Ending balance | 629,015 | 619,599 | 629,015 | 619,599 |
AOCI Attributable to Parent | ||||
Attributable to Matthews: | ||||
Beginning balance | (159,114) | (220,505) | (192,739) | (240,719) |
OCI before reclassification | (2,620) | (6,810) | 6,984 | 10,598 |
Amounts reclassified from AOCI | 504 | 2,822 | 24,525 | 5,628 |
Net current-period OCI | (2,116) | (3,988) | 31,509 | 16,226 |
Ending balance | (161,230) | (224,493) | (161,230) | (224,493) |
Post-retirement benefit plans | ||||
Attributable to Matthews: | ||||
Beginning balance | (1,797) | (80,830) | (35,930) | (82,954) |
OCI before reclassification | 23 | 0 | 10,741 | 0 |
Amounts reclassified from AOCI | (50) | 2,255 | 23,365 | 4,379 |
Net current-period OCI | (27) | 2,255 | 34,106 | 4,379 |
Ending balance | (1,824) | (78,575) | (1,824) | (78,575) |
Currency translation adjustment | ||||
Attributable to Matthews: | ||||
Beginning balance | (157,240) | (134,826) | (155,251) | (151,881) |
OCI before reclassification | (6,181) | (8,898) | (8,170) | 8,157 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net current-period OCI | (6,181) | (8,898) | (8,170) | 8,157 |
Ending balance | (163,421) | (143,724) | (163,421) | (143,724) |
Derivatives | ||||
Attributable to Matthews: | ||||
Beginning balance | (77) | (4,849) | (1,558) | (5,884) |
OCI before reclassification | 3,538 | 2,088 | 4,413 | 2,441 |
Amounts reclassified from AOCI | 554 | 567 | 1,160 | 1,249 |
Net current-period OCI | 4,092 | 2,655 | 5,573 | 3,690 |
Ending balance | 4,015 | (2,194) | 4,015 | (2,194) |
AOCI Attributable to Noncontrolling Interest | ||||
Attributable to Matthews: | ||||
Beginning balance | 245 | 365 | 241 | 368 |
OCI before reclassification | 4 | 1 | 8 | (2) |
Net current-period OCI | 4 | 1 | 8 | (2) |
Ending balance | 249 | 366 | 249 | 366 |
Post-retirement benefit plans | ||||
Attributable to Matthews: | ||||
Beginning balance | 0 | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
Currency translation adjustment | ||||
Attributable to Matthews: | ||||
Beginning balance | 245 | 365 | 241 | 368 |
OCI before reclassification | 4 | 1 | 8 | (2) |
Net current-period OCI | 4 | 1 | 8 | (2) |
Ending balance | 249 | 366 | 249 | 366 |
Derivatives | ||||
Attributable to Matthews: | ||||
Beginning balance | 0 | 0 | 0 | 0 |
OCI before reclassification | 0 | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of sales | $ (320,459) | $ (276,143) | $ (627,401) | $ (537,302) | ||
Other income (deductions), net | 562 | (2,584) | (31,151) | (4,318) | ||
Income before income tax | 1,341 | 6,124 | (25,097) | 8,112 | ||
Income taxes | (3,277) | (972) | 3,351 | (4,952) | ||
Net (loss) income | (1,936) | $ (19,810) | 5,152 | $ (1,992) | (21,746) | 3,160 |
Post-retirement benefit plans | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income taxes | (16) | 636 | ||||
Net (loss) income | 50 | (2,255) | (23,365) | (4,379) | ||
Post-retirement benefit plans | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income tax | 66 | (2,891) | (30,947) | (5,804) | ||
Income taxes | 7,582 | 1,425 | ||||
Prior service credit | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of sales | 157 | 132 | 201 | 240 | ||
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other income (deductions), net | (91) | (3,023) | (292) | (6,044) | ||
Settlement loss | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other income (deductions), net | 0 | (30,856) | ||||
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income tax | (735) | (751) | (1,536) | (1,654) | ||
Income taxes | 181 | 184 | 376 | 405 | ||
Net (loss) income | (554) | (567) | (1,160) | (1,249) | ||
Derivatives | Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ (735) | $ (751) | $ (1,536) | $ (1,654) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 3,277 | $ 972 | $ (3,351) | $ 4,952 | |
Unrecognized tax benefits | 3,231 | 3,231 | $ 2,807 | ||
Decrease reasonably possible in next 12 months | 350 | 350 | |||
Total penalties and interest accrued | $ 775 | $ 775 | $ 691 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of operating segments | segment | 3 | |||||
Segment Reporting Information [Line Items] | ||||||
Sales: | $ 444,978 | $ 417,154 | $ 883,557 | $ 803,811 | ||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 55,190 | 60,940 | 108,523 | 115,703 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Strategic initiatives and other charges | (6,750) | (5,093) | (10,573) | (16,285) | ||
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs | (1,213) | (1,572) | (1,903) | (2,696) | ||
Defined benefit plan termination related items | 79 | 0 | (347) | 0 | ||
Asset write-downs | (10,486) | 0 | (10,486) | 0 | ||
Stock-based compensation | (5,222) | (4,001) | (8,931) | (7,247) | ||
Non-service pension and postretirement expense | (242) | (1,901) | (31,350) | (3,801) | ||
Depreciation and amortization | (23,724) | (35,179) | (57,225) | (62,530) | ||
Interest expense | (6,260) | (7,233) | (12,767) | (14,961) | ||
Net (loss) income attributable to noncontrolling interests | (31) | 163 | (38) | (71) | ||
Income (loss) before income taxes | 1,341 | 6,124 | (25,097) | 8,112 | ||
Income tax (provision) benefit | (3,277) | (972) | 3,351 | (4,952) | ||
Net (loss) income | (1,936) | $ (19,810) | 5,152 | $ (1,992) | (21,746) | 3,160 |
SGK Brand Solutions | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales: | 146,820 | 146,415 | 300,362 | 296,374 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs | (170) | (297) | (390) | (706) | ||
Depreciation and amortization | (14,060) | (25,261) | (37,785) | (43,109) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 4,475 | 2,865 | 5,703 | 7,561 | ||
Memorialization | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales: | 220,004 | 205,457 | 430,710 | 388,731 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs | (579) | (1,240) | (1,043) | (1,890) | ||
Depreciation and amortization | (5,803) | (5,709) | (11,613) | (11,178) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 516 | (335) | 1,188 | 795 | ||
Industrial Technologies | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales: | 78,154 | 65,282 | 152,485 | 118,706 | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs | (1) | (12) | (5) | (30) | ||
Depreciation and amortization | (2,531) | (2,880) | (5,184) | (5,620) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | 161 | 126 | 193 | 2,785 | ||
Operating Segments | SGK Brand Solutions | ||||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 13,462 | 18,364 | 28,876 | 40,197 | ||
Operating Segments | Memorialization | ||||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 42,944 | 51,606 | 86,314 | 95,678 | ||
Operating Segments | Industrial Technologies | ||||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | 14,385 | 8,277 | 21,568 | 11,273 | ||
Corporate and Non-Operating | ||||||
Reconciliation Of Adjusted EBITDA To Net Income [Abstract] | ||||||
Adjusted EBITDA: | (15,601) | (17,307) | (28,235) | (31,445) | ||
Non-Operating Income and Expenses [Abstract] | ||||||
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs | (463) | (23) | (465) | (70) | ||
Depreciation and amortization | (1,330) | (1,329) | (2,643) | (2,623) | ||
Acquisition costs, ERP integration costs, and strategic initiatives and other charges | $ 1,598 | $ 2,437 | $ 3,489 | $ 5,144 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Segment (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 773,787 |
Translation and other adjustments | (4,676) |
Balance at end of period | 769,111 |
SGK Brand Solutions | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 314,850 |
Translation and other adjustments | (3,524) |
Balance at end of period | 311,326 |
Memorialization | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 366,360 |
Translation and other adjustments | (1,010) |
Balance at end of period | 365,350 |
Industrial Technologies | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 92,577 |
Translation and other adjustments | (142) |
Balance at end of period | $ 92,435 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Goodwill [Line Items] | |||||
Accumulated impairment charges | $ 178,732 | $ 178,732 | $ 178,732 | ||
Amortization expense on intangible assets | 11,953 | $ 22,930 | 33,499 | $ 38,151 | |
Future amortization expense [Abstract] | |||||
Future amortization expense for the remainder 2022 | 23,976 | 23,976 | |||
Future amortization expense 2023 | 41,064 | 41,064 | |||
Future amortization expense 2024 | 35,505 | 35,505 | |||
Future amortization expense 2025 | 19,684 | 19,684 | |||
Future amortization expense 2026 | $ 14,686 | $ 14,686 | |||
Graphics Imaging | |||||
Goodwill [Line Items] | |||||
Percentage of fair value in excess of carrying amount | 10.00% | 10.00% | |||
SGK Brand Solutions | |||||
Goodwill [Line Items] | |||||
Accumulated impairment charges | $ 149,786 | $ 149,786 | 149,786 | ||
Memorialization | |||||
Goodwill [Line Items] | |||||
Accumulated impairment charges | 5,000 | 5,000 | 5,000 | ||
Industrial Technologies | |||||
Goodwill [Line Items] | |||||
Accumulated impairment charges | $ 23,946 | $ 23,946 | $ 23,946 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Other Intangible Assets [Abstract] | ||
Carrying Amount | $ 588,090 | $ 591,690 |
Accumulated Amortization | (360,835) | (330,148) |
Net | 227,255 | 261,542 |
Indefinite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 30,540 | 30,540 |
Net | 30,540 | 30,540 |
Definite-lived trade names | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 148,695 | 148,867 |
Accumulated Amortization | (115,701) | (104,211) |
Net | 32,994 | 44,656 |
Customer relationships | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 387,088 | 388,699 |
Accumulated Amortization | (230,723) | (210,361) |
Net | 156,365 | 178,338 |
Copyrights/patents/other | ||
Other Intangible Assets [Abstract] | ||
Carrying Amount | 21,767 | 23,584 |
Accumulated Amortization | (14,411) | (15,576) |
Net | $ 7,356 | $ 8,008 |
Asset Write-Downs (Details)
Asset Write-Downs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset write-downs | $ 10,486 | $ 0 | $ 10,486 | $ 0 |
Cost of Sales | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset write-downs | 9,686 | 9,686 | ||
General and Administrative Expense | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset write-downs | $ 800 | $ 800 |