Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 18, 2015 | Mar. 31, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | HAYNES INTERNATIONAL INC | ||
Entity Central Index Key | 858,655 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 412,153,976 | ||
Entity Common Stock, Shares Outstanding | 12,446,000 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 49,045 | $ 45,871 |
Accounts receivable, less allowance for doubtful accounts of $861 and $869, respectively | 75,593 | 72,439 |
Inventories | 247,836 | 254,027 |
Income taxes receivable | 3,699 | 3,235 |
Deferred income taxes | 6,295 | 6,297 |
Other current assets | 2,974 | 2,964 |
Total current assets | 385,442 | 384,833 |
Property, plant and equipment, net | 185,351 | 174,083 |
Deferred income taxes-long term portion | 53,958 | 44,639 |
Prepayments and deferred charges | 1,877 | 2,031 |
Goodwill | 4,789 | |
Other intangible assets, net | 6,774 | 5,185 |
Total assets | 638,191 | 610,771 |
Deferred income taxes-long term portion | 53,958 | 44,639 |
Current liabilities: | ||
Accounts payable | 29,386 | 41,957 |
Accrued expenses | 16,576 | 13,213 |
Accrued pension and postretirement benefits | 4,965 | 4,572 |
Deferred revenue-current portion | 2,500 | 2,500 |
Total current liabilities | 53,427 | 62,242 |
Long-term obligations (less current portion) | 4,574 | 745 |
Deferred revenue (less current portion) | 25,329 | 27,829 |
Accrued pension benefits | 107,208 | 72,315 |
Accrued postretirement benefits | 105,664 | 100,910 |
Total liabilities | $ 296,202 | $ 264,041 |
Commitments and contingencies (Note 9 and 10) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (40,000,000 shares authorized, 12,434,748 and 12,467,498 shares issued and 12,418,471 and 12,446,000 outstanding at September 30, 2014 and September 30, 2015, respectively) | $ 12 | $ 12 |
Additional paid-in capital | 244,488 | 242,387 |
Accumulated earnings | 186,533 | 166,999 |
Treasury stock, 16,277 shares at September 30, 2014 and 21,498 shares at September 30, 2015 | (1,091) | (840) |
Accumulated other comprehensive loss | (87,953) | (61,828) |
Total stockholders' equity | 341,989 | 346,730 |
Total liabilities and stockholders' equity | $ 638,191 | $ 610,771 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 869 | $ 861 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,467,498 | 12,434,748 |
Common stock, shares outstanding (in shares) | 12,446,000 | 12,418,471 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 21,498 | 16,277 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net revenues | $ 487,635 | $ 455,410 | $ 482,746 |
Cost of sales | 393,971 | 408,112 | 409,120 |
Gross profit | 93,664 | 47,298 | 73,626 |
Selling, general and administrative expense | 42,572 | 38,693 | 38,165 |
Research and technical expense | 3,598 | 3,556 | 3,505 |
Operating income | 47,494 | 5,049 | 31,956 |
Interest income | (94) | (139) | (114) |
Interest expense | 412 | 68 | 72 |
Income before income taxes | 47,176 | 5,120 | 31,998 |
Provision for income taxes | 16,690 | 1,369 | 10,421 |
Net income | $ 30,486 | $ 3,751 | $ 21,577 |
Net income per share: | |||
Basic (in dollars per share) | $ 2.45 | $ 0.30 | $ 1.75 |
Diluted (in dollars per share) | 2.45 | 0.30 | 1.74 |
Dividend declared per common share (in dollars per share) | $ 0.88 | $ 0.88 | $ 0.88 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $ 30,486 | $ 3,751 | $ 21,577 |
Other comprehensive income (loss), net of tax: | |||
Pension and postretirement | (21,958) | (4,038) | 41,280 |
Foreign currency translation adjustment | (4,167) | (991) | 1,012 |
Other comprehensive income (loss) | (26,125) | (5,029) | 42,292 |
Comprehensive income (loss) | $ 4,361 | $ (1,278) | $ 63,869 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Sep. 30, 2012 | $ 12 | $ 236,751 | $ 163,426 | $ (99,091) | $ 301,098 | |
Balance (in shares) at Sep. 30, 2012 | 12,287,790 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 21,577 | 21,577 | ||||
Dividends paid ($0.80, $0.88 and $0.88 per share for the year ended September 30, 2012, 2013 and 2014, respectively) | (10,849) | (10,849) | ||||
Other comprehensive income (loss) | 42,292 | 42,292 | ||||
Exercise of stock options | 1,092 | 1,092 | ||||
Exercise of stock options (in shares) | 30,545 | |||||
Tax impact of forfeited vested options | (185) | (185) | ||||
Tax impact of dividends on restricted stock | 29 | 29 | ||||
Issue restricted stock (less forfeitures) (in shares) | 24,250 | |||||
Purchase of treasury stock | $ (505) | (505) | ||||
Purchase of treasury stock (in shares) | (9,993) | |||||
Stock compensation | 1,254 | 1,254 | ||||
Balance at Sep. 30, 2013 | $ 12 | 238,941 | 174,154 | (505) | (56,799) | 355,803 |
Balance (in shares) at Sep. 30, 2013 | 12,332,592 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 3,751 | 3,751 | ||||
Dividends paid ($0.80, $0.88 and $0.88 per share for the year ended September 30, 2012, 2013 and 2014, respectively) | (10,906) | (10,906) | ||||
Other comprehensive income (loss) | (5,029) | (5,029) | ||||
Exercise of stock options | 1,519 | 1,519 | ||||
Exercise of stock options (in shares) | 54,913 | |||||
Tax impact of dividends on restricted stock | 158 | 158 | ||||
Issue restricted stock (less forfeitures) (in shares) | 37,250 | |||||
Purchase of treasury stock | (335) | (335) | ||||
Purchase of treasury stock (in shares) | (6,284) | |||||
Stock compensation | 1,769 | 1,769 | ||||
Balance at Sep. 30, 2014 | $ 12 | 242,387 | 166,999 | (840) | (61,828) | 346,730 |
Balance (in shares) at Sep. 30, 2014 | 12,418,471 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 30,486 | 30,486 | ||||
Dividends paid ($0.80, $0.88 and $0.88 per share for the year ended September 30, 2012, 2013 and 2014, respectively) | (10,952) | (10,952) | ||||
Other comprehensive income (loss) | (26,125) | (26,125) | ||||
Tax impact of forfeited vested options | (28) | (28) | ||||
Tax impact of dividends on restricted stock | (55) | (55) | ||||
Issue restricted stock (less forfeitures) (in shares) | 32,750 | |||||
Purchase of treasury stock | (251) | (251) | ||||
Purchase of treasury stock (in shares) | (5,221) | |||||
Stock compensation | 2,184 | 2,184 | ||||
Balance at Sep. 30, 2015 | $ 12 | $ 244,488 | $ 186,533 | $ (1,091) | $ (87,953) | $ 341,989 |
Balance (in shares) at Sep. 30, 2015 | 12,446,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 30,486 | $ 3,751 | $ 21,577 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 18,997 | 15,861 | 13,744 |
Amortization | 511 | 416 | 416 |
Pension and post-retirement expense - U.S. and U.K. | 12,592 | 10,293 | 16,173 |
Change in long-term obligations | (498) | (22) | (153) |
Stock compensation expense | 2,184 | 1,769 | 1,254 |
Excess tax benefit (expense) from option exercises | 55 | (614) | (494) |
Deferred revenue | (2,500) | (2,500) | (2,500) |
Deferred income taxes | 2,810 | (1,954) | 6,171 |
Loss on disposition of property | 399 | 500 | 418 |
Change in assets and liabilities: | |||
Accounts receivable | (5,011) | 9,893 | 18,630 |
Inventories | 4,073 | (22,275) | 31,507 |
Other assets | 117 | (336) | (1,324) |
Accounts payable and accrued expenses | (8,685) | 15,722 | (12,165) |
Income taxes | (99) | 2,522 | 341 |
Accrued pension and postretirement benefits | (7,036) | (6,080) | (20,191) |
Net cash provided by operating activities | 48,395 | 26,946 | 73,404 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (18,546) | (39,694) | (41,550) |
Acquisition of Leveltek – LaPorte assets | (14,600) | ||
Net cash used in investing activities | (33,146) | (39,694) | (41,550) |
Cash flows from financing activities: | |||
Dividends paid | (10,952) | (10,906) | (10,849) |
Proceeds from exercise of stock options | 1,063 | 598 | |
Payment for purchase of treasury stock | (251) | (335) | (505) |
Excess tax benefit from option exercises and restricted stock vesting | 614 | 494 | |
Payments Related to Tax Withholding for Share-based Compensation | 55 | ||
Payment on long-term obligation | (173) | (100) | |
Net cash used in financing activities | (11,431) | (9,564) | (10,362) |
Effect of exchange rates on cash | (644) | (143) | 94 |
Increase (decrease) in cash and cash equivalents | 3,174 | (22,455) | 21,586 |
Cash and cash equivalents: | |||
Cash and cash equivalents, beginning of period | 45,871 | 68,326 | 46,740 |
Cash and cash equivalents, end of period | 49,045 | 45,871 | 68,326 |
Cash paid during period for: | |||
Interest (net of capitalized interest) | 347 | 3 | 7 |
Income taxes paid (net of refunds) | 14,017 | 811 | 3,578 |
Capital expenditures incurred but not yet paid | 1,741 | $ 1,293 | $ 2,890 |
Capital lease obligation incurred | $ 4,500 |
Background and Organization
Background and Organization | 12 Months Ended |
Sep. 30, 2015 | |
Background and Organization | |
Background and Organization | Note 1 Background and Organization Description of Business Haynes International, Inc. and its subsidiaries (the “Company” or “Haynes”) develops, manufactures, markets and distributes technologically advanced, high-performance alloys primarily for use in the aerospace, land-based gas turbine and chemical processing industries. The Company’s products are high-temperature resistant alloys (“HTA”) and corrosion-resistant alloys (“CRA”). The Company’s HTA products are used by manufacturers of equipment that is subjected to extremely high temperatures, such as jet engines for the aerospace industry, gas turbine engines for power generation, waste incineration and industrial heating equipment. The Company’s CRA products are used in applications that require resistance to extreme corrosion, such as chemical processing, power plant emissions control and hazardous waste treatment. The Company produces its high-performance alloys primarily in sheet, coil and plate forms. In addition, the Company produces its products as seamless and welded tubulars, and in slab, bar, billets and wire forms. High-performance alloys are characterized by highly engineered often proprietary, metallurgical formulations primarily of nickel, cobalt and other metals with complex physical properties. The complexity of the manufacturing process for high-performance alloys is reflected in the Company’s relatively high average selling price per pound, compared to the average selling price of other metals, such as carbon steel sheet, stainless steel sheet and aluminum. The high-performance alloy industry has significant barriers to entry such as the combination of (i) demanding end-user specifications, (ii) a multi-stage manufacturing process and (iii) the technical sales, marketing and manufacturing expertise required to develop new applications. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies A. Principles of Consolidation and Nature of Operations The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated. The Company has manufacturing facilities in Kokomo, Indiana; Mountain Home, North Carolina; and Arcadia, Louisiana with service centers in Lebanon, Indiana; LaPorte, Indiana; LaMirada, California; Houston, Texas; Windsor, Connecticut; Openshaw, England; Lenzburg, Switzerland; Shanghai, China; and sales offices in Paris, France; Zurich, Switzerland; Singapore; Milan, Italy; Chennai, India; and Tokyo, Japan. B. Cash and Cash Equivalents The Company considers all highly liquid investment instruments, including investments with original maturities of three months or less at acquisition, to be cash equivalents, the carrying value of which approximates fair value due to the short maturity of these investments. C. Accounts Receivable The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company markets its products to a diverse customer base, both in the United States of America and overseas. Trade credit is extended based upon evaluation of each customer’s ability to perform its obligation, which is updated periodically. The Company purchases credit insurance for certain foreign trade receivables. D. Revenue Recognition The Company recognizes revenue when collectability is reasonably assured and when title passes to the customer, which is generally at the time of shipment with freight terms of free on board (FOB) shipping point or at a foreign port for certain export customers. Allowances for sales returns are recorded as a component of net sales in the periods in which the related sales are recognized. The Company determines this allowance based on historical experience. Additionally, the Company recognizes revenue attributable to an up-front fee received from Titanium Metals Corporation (TIMET) as a result of a twenty -year agreement, entered into on November, 17, 2006 to provide conversion services to TIMET. See Note 15 Deferred Revenue for a description of accounting treatment relating to this up-front fee. E. Inventories Inventories are stated at the lower of cost or market. The cost of inventories is determined using the first-in, first-out (FIFO) method. The Company writes down its inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market or scrap value, if applicable, based upon assumptions about future demand and market conditions. F. Goodwill and Other Intangible Assets The Company has goodwill, patents, trademarks, customer relationships and other intangibles. As the patents and customer relationships have a definite life, they are amortized over lives ranging from two to sixteen years. The Company reviews patents and customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets are measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for Goodwill and August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of the trademarks exceeds the fair value (determined using an income approach, based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist resulting in a charge to earnings to the extent of the impairment. The impairment test for goodwill is performed using a two-step approach. The first step is the estimation of the fair value of the reporting unit, which is compared to its respective carrying value. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of the impairment, if any. Goodwill impairment exists when the implied fair value of goodwill is less than its carrying value. No impairment was recognized in the years ended September 30, 2014 or 2015 because the fair value exceeded the carrying values. On January 7, 2015, the Company acquired the assets and operations of Leveltek Processing, LLC in LaPorte, Indiana for $14.6 million in cash (See Note 19, Acquisition). In connection with the acquisition, the Company recorded goodwill of $4,789 and customer relationships intangible assets of $2,100 . As the customer relationships have a definite life, the Company amortizes them over a period of sixteen years under an accelerated method and tests them for impairment at least annually as of August 31 (the annual impairment testing date). The following represents the changes in the carrying value of goodwill for the period ended September 30, 2015. Goodwill at September 30, 2014 $ — Goodwill acquired - Leveltek-LaPorte Assets Adjustments — Goodwill at September 30, 2015 $ Amortization of the patents, non-competes, customer relationships and other intangibles was $416 , $416 and $511 for the years ended September 30, 2013, 2014 and 2015, respectively. The following represents a summary of intangible assets at September 30, 2014 and 2015: Gross Accumulated Carrying September 30, 2014 Amount Amortization Amount Patents $ $ $ Trademarks — Non-compete Other $ $ $ Gross Accumulated Carrying September 30, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Estimate of Aggregate Amortization Expense: Year Ended September 30, 2016 2017 2018 2019 2020 Thereafter G. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost with depreciation calculated primarily by using the straight-line method based on estimated economic useful lives which are generally as follows: Building and improvements years Machinery and equipment — years Office equipment and computer software — years Land improvements years Expenditures for maintenance and repairs and minor renewals are charged to expense; major renewals are capitalized. Upon retirement or sale of assets, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. The Company records capitalized interest for long-term construction projects to capture the cost of capital committed prior to the placed in service date as a part of the historical cost of acquiring the asset. Interest is not capitalized when balance on the revolver is zero . The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. There was no triggering event during the years ended September 30, 2014 or 2015 and thus no impairment was recognized. H. Environmental Remediation When it is probable that a liability has been incurred or an asset of the Company has been impaired, a loss is recognized assuming the amount of the loss can be reasonably estimated. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations and current technology. Such estimates take into consideration the expected costs of post-closure monitoring based on historical experience. I. Pension and Postretirement Benefits The Company has defined benefit pension and postretirement plans covering most of its current and former employees. Significant elements in determining the assets or liabilities and related income or expense for these plans are the expected return on plan assets, the discount rate used to value future payment streams, expected trends in health care costs, and other actuarial assumptions. Annually, the Company evaluates the significant assumptions to be used to value its pension and postretirement plan assets and liabilities based on current market conditions and expectations of future costs. If actual results are less favorable than those projected by management, additional expense may be required in future periods. Salaried employees hired after December 31, 2005 and hourly employees hired after June 30, 2007 are not covered by the pension plan; however, they are eligible for an enhanced matching program of the defined contribution plan (401(k)). Effective December 31, 2007, the U.S. pension plan was amended to freeze benefits for all non-union employees in the U.S. Effective September 30, 2009, the U.K. pension plan was amended to freeze benefits for employees in the plan. Effective January 1, 2007 a plan amendment of the postretirement medical plan caps the Company’s liability related to retiree health care costs at $5,000 annually. J. Foreign Currency Exchange The Company’s foreign operating entities’ financial statements are denominated in the functional currencies of each respective country, which are the local currencies. All assets and liabilities are translated to U.S. dollars using exchange rates in effect at the end of the year, and revenues and expenses are translated at the weighted average rate for the year. Translation gains or losses are recorded as a separate component of comprehensive income (loss) and transaction gains and losses are reflected in the consolidated statements of operations. K. Research and Technical Costs Research and technical costs related to the development of new products and processes are expensed as incurred. Research and technical costs for the years ended September 30, 2013, 2014 and 2015 were $ 3,505 , $3,556 and $3,598 , respectively. L. Income Taxes The Company accounts for deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. A valuation allowance is required if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of whether or not a valuation allowance is needed is based upon an evaluation of both positive and negative evidence. In its evaluation of the need for a valuation allowance, the Company utilizes prudent and feasible tax planning strategies. The ultimate amount of deferred tax assets realized could be different from those recorded, as influenced by potential changes in enacted tax laws and the availability of future taxable income. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. M. Stock Based Compensation Restricted Stock Plan On February 23, 2009, the Company adopted a restricted stock plan that reserved 400,000 shares of common stock for issuance. Grants of restricted stock are shares of the Company’s common stock subject to transfer restrictions, which vest in accordance with the terms and conditions established by the Compensation Committee. The Compensation Committee may set restrictions on certain grants based on the achievement of specific performance goals and vesting of grants to participants will also be time-based. Restricted stock grants are subject to forfeiture if employment or service terminates prior to the end of the vesting period or if the performance goals are not met, if applicable. The Company will assess, on an ongoing basis, the probability of whether the performance criteria will be achieved. The Company will recognize compensation expense over the performance period if it is deemed probable that the goals will be achieved. The fair value of the Company’s restricted stock is determined based upon the closing price of the Company’s common stock on the grant date. The plan provides for the adjustment of the number of shares covered by an outstanding grant and the maximum number of shares for which restricted stock may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. Stock Option Plans The Company has two stock option plans that authorize the granting of non-qualified stock options to certain key employees and non-employee directors for the purchase of a maximum of 1,500,000 shares of the Company’s common stock. The original option plan was adopted in August 2004 pursuant to the plan of reorganization and provides for the grant of options to purchase up to 1,000,000 shares of the Company’s common stock. In January 2007, the Company’s Board of Directors adopted a second option plan that provides for options to purchase up to 500,000 shares of the Company’s common stock. Each plan provides for the adjustment of the maximum number of shares for which options may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. Unless the Compensation Committee determines otherwise, options granted under the option plans are exercisable for a period of ten years from the date of grant and vest 33 1 / 3 % per year over three years from the grant date. The amount of compensation cost recognized in the financial statement is measured based upon the grant date fair value. The fair value of the option grants is estimated on the date of grant using the Black-Scholes option pricing model with assumptions on dividend yield, risk-free interest rate, expected volatilities, expected forfeiture rate and expected lives of the options. N. Financial Instruments and Concentrations of Risk The Company may periodically enter into forward currency exchange contracts to minimize the variability in the Company’s operating results arising from foreign exchange rate movements. The Company does not engage in foreign currency speculation. At September 30, 2014 and 2015, the Company had no foreign currency exchange contracts outstanding. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. At September 30, 2015, and periodically throughout the year, the Company has maintained cash balances in excess of federally insured limits. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the relatively short maturity of these instruments. During 2013, 2014 and 2015, the Company did not have sales to any group of affiliated customers that were greater than 10% of net revenues. The Company generally does not require collateral with the exception of letters of credit with certain foreign sales. Credit losses have been within management’s expectations. In addition, the Company purchases credit insurance for certain foreign trade receivables. The Company does not believe it is significantly vulnerable to the risk of near-term severe impact from business concentrations with respect to customers, suppliers, products, markets or geographic areas. O. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to bad debts, inventories, income taxes, asset impairment, retirement benefits, and environmental matters. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, pension asset mix and in some cases, actuarial techniques, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company routinely reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. P. Earnings Per Share The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each period. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Basic and diluted net income per share were computed as follows: Years ended September 30, (in thousands, except share and per share data) 2013 2014 2015 Numerator: Basic and Diluted Net income $ $ $ Dividends paid Undistributed income (loss) Percentage allocated to common shares % % % Undistributed income (loss) allocated to common shares Dividends paid on common shares outstanding Net income available to common shares Denominator: Basic and Diluted Weighted average common shares outstanding Adjustment for dilutive potential common shares Weighted average shares outstanding - Diluted Basic net income per share $ $ $ Diluted net income per share $ $ $ Number of stock option shares excluded as their effect would be anti-dilutive Number of restrictive stock shares excluded as their effect would be anti-dilutive (a) Percentage allocated to common shares - weighted average Common shares outstanding Unvested participating shares Q. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The objective of the update is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect, if any, on its financial statements. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815) . The objective of the update is to set forth the definition of a derivative instrument and specify how to account for such instruments, including derivatives embedded in hybrid instruments. In addition, this update establishes when reporting entities, in certain limited, well-defined circumstances, may apply hedge accounting to a relationship involving a designated hedging instrument and hedged exposure. It is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. This update is not expected to result in a material impact to the consolidated financial statements or the related disclosures. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) . The objective of this update was to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. It is effective for annual reporting periods beginning after December 15, 2016 and interim periods within fiscal years beginning after December 15, 2017. The adoption of these changes is not expected to have a material impact to the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-15, Interest – Imputation of interest (Subtopic 835-30) : Simplifying the Presentation of Debt Issuance Costs, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB clarified ASU 2015-15 to address presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. This amendment allows for the reporting entity to defer and present debt issuance costs as an asset and subsequently amortize the debt issuance costs over the term of the line-of-credit agreement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement, including interim periods within that reporting period. This update is not expected to result in a material impact to the consolidated financial statements or the related disclosures. R. Comprehensive Income (Loss) Comprehensive income (loss) includes changes in equity that result from transactions and economic events from non-owner sources. See Note 17 for a breakdown of Comprehensive Income (Loss) and changes in Accumulated Other Comprehensive Loss net of tax effects. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Inventories | Note 3 Inventories Inventories are stated at the lower of cost or market. The cost of inventories is determined using the first-in, first-out (“FIFO”) method. The following is a summary of the major classes of inventories: September 30, September 30, 2014 2015 Raw Materials $ $ Work-in-process Finished Goods Other $ $ |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 4 Property, Plant and Equipment The following is a summary of the major classes of property, plant and equipment: September 30, 2014 2015 Land and land improvements $ $ Buildings Machinery and equipment Construction in process Less accumulated depreciation $ $ The Company has $ 368 of assets under a capital lease for equipment related to the service center operation in Shanghai, China and $4,331 of assets under capital lease for a building at the La Porte, Indiana service center. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses | |
Accrued Expenses | Note 5 Accrued Expenses The following is a summary of the major classes of accrued expenses: September 30, 2014 2015 Employee compensation $ $ Taxes, other than income taxes Utilities Professional Fees Capital lease obligation, current — Other $ $ |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Income Taxes | Note 6 Income Taxes The components of income before provision for income taxes are as follows: Year Ended September 30, 2013 2014 2015 Income before income taxes: U.S. $ $ $ Foreign Total $ $ $ Provision for income taxes: Current: U.S. Federal $ $ $ Foreign State Total Deferred: U.S. Federal Foreign State Valuation allowance — — Total Total provision for income taxes $ $ $ The provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate as follows: Year Ended September 30, 2013 2014 2015 Statutory federal tax rate % % % Tax provision for income taxes at the statutory rate $ $ $ Foreign tax rate differentials Provision for state taxes, net of federal taxes U.S. tax on distributed and undistributed earnings of foreign subsidiaries Manufacturer’s deduction — Tax credits State tax rate change impact on deferred tax asset Change in Valuation Allowance — — Other, net Provision for income taxes at effective tax rate $ $ $ Effective tax rate % % % During fiscal 2013, the Company’s effective tax rate was lower than the statutory rate, primarily due to increased proportion of profitability in foreign jurisdictions and the reversal of certain tax reserves no longer required. During fiscal 2014, the Company’s effective tax rate was lower than the statutory rate, primarily due to a higher proportion of income in lower tax jurisdictions. The Company generated a taxable loss in the United States, which will be carried back to earlier years. During fiscal 2015, the Company’s effective tax rate was higher than the statutory rate, primarily due to a change in the Indiana tax law that was enacted in May, 2015, which decreased the deferred tax asset and increased tax expense. Deferred tax assets (liabilities) are comprised of the following: September 30, 2014 2015 Deferred tax assets: Pension and postretirement benefits $ $ TIMET Agreement Inventories Accrued compensation and benefits Accrued expenses and other Tax attributes Valuation allowance — Total deferred tax assets $ $ Deferred tax liabilities: Property, plant and equipment, net $ $ Intangible and other Total deferred tax liabilities $ $ Net deferred tax assets (liabilities) $ $ Current deferred tax assets $ $ Long-term deferred tax asset $ $ As of September 30, 2015, the Company has state tax net operating loss carryforwards of approximately $24 , tax credits of $778 and foreign net operating loss carryforwards of $483 . As of September 30, 2014, the Company has state tax net operating loss of approximately $5,013 , tax credits of $606 and foreign net operating loss carryforwards of $1,259 . The Company has not recorded a valuation allowance against the loss carryforwards because management believes that it is more likely than not that net operating loss carryforwards will be realized prior to their expiration. Undistributed earnings of certain of our foreign subsidiaries amounted to approximately $55, 037 at September 30, 2015. The Company considers those earnings reinvested indefinitely and, accordingly, no provision for U.S. income taxes has been provided. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities associated with its hypothetical calculation. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: October 1, 2012 To October 1, 2013 To October 1, 2014 To September 30, September 30, September 30, 2013 2014 2015 Balance at beginning of period $ $ — $ — Gross Increases—current period tax positions — — — Gross Decreases—current period tax positions — — — Gross Increases—tax positions in prior periods — — — Gross Decreases—tax positions in prior periods — — — Gross Decreases—settlements with taxing authorities — — — Gross Decreases—lapse of statute of limitations — — Balance at end of period $ — $ — $ — During fiscal year 2013, the Company recognized the tax benefits previously unrecognized due to the statute of limitations. This tax benefit was recorded in income tax expense and affected the income statement by $236 . During fiscal 2013, the Company recognized a reversal of accrued interest expense related to the unrecognized tax benefits totaling $75 . As of September 30, 2015, the Company is open to examination in the U.S. federal income tax jurisdiction for the 2011 through 2015 tax years and in various foreign jurisdictions from 2009 through 2015. The Company is also open to examination in various states in the U.S., none of which were individually material. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2015 | |
Debt | |
Debt | Note 7 Debt U.S. revolving credit facility The Company and Wells Fargo Capital Finance, LLC (“Wells Fargo”), entered into a Third Amended and Restated Loan and Security Agreement (the “Amended Agreement”) with certain other lenders with an effective date of July 14, 2011. The maximum revolving loan amount under the Amended Agreement is $120.0 million, subject to a borrowing base formula and certain reserves that could limit the Company’s borrowing to approximately $105.0 million. The Amended Agreement permits an increase in the maximum revolving loan amount from $120.0 million up to an aggregate amount of $170.0 million at the request of the Company. Borrowings under the U.S. revolving credit facility bear interest at the Company’s option at either Wells Fargo’s “prime rate”, plus up to 0.75% per annum, or the adjusted Eurodollar rate used by the lender, plus up to 2.0% per annum. As of September 30, 2015, the U.S. revolving credit facility had an outstanding balance of zero . In addition, the Company must pay monthly in arrears a commitment fee of 0.25% per annum on the unused amount of the U.S. revolving credit facility total commitment. For letters of credit, the Company must pay 1.5% per annum on the daily outstanding balance of all issued letters of credit, plus customary fees for issuance, amendments and processing. The Company is subject to certain covenants as to fixed charge coverage ratios and other customary covenants, including covenants restricting the incurrence of indebtedness, the granting of liens and the sale of assets. The covenant pertaining to fixed charge coverage ratios is only effective in the event the amount of excess availability under the revolver is less than 12.5% of the maximum credit revolving amount. The Company is permitted to pay dividends and repurchase common stock if certain financial metrics are met (which do not apply in the case of dividends less than $20.0 million in the aggregate in a year and repurchases in connection with the vesting of shares of restricted stock). As of September 30, 2015, the most recent required measurement date under the Amended Agreement, management believes that the Company was in compliance with all applicable financial covenants under the Amended Agreement. The U.S. revolving credit facility matures on July 14, 2016. Borrowings under the U.S. revolving credit facility are collateralized by a pledge of substantially all of the U.S. assets of the Company, including the equity interests in its U.S. subsidiaries, but excluding the four-high Steckel rolling mill and related assets, which are pledged to Titanium Metals Corporation to secure the performance of the Company’s obligations under a Conversion Services Agreement with TIMET (see discussion of TIMET at Note 15 in the Notes to Consolidated Financial Statements in this Annual Report on Form 10-K). The U.S. revolving credit facility is also secured by a pledge of a 65% equity interest in each of the Company’s direct foreign subsidiaries. The Company’s U.K. subsidiary (Haynes International Ltd.) has an overdraft facility of 2,000 pounds sterling ( $3,026) , all of which was available on September 30, 2015. The Company’s French subsidiary (Haynes International, S.A.R.L.) has an overdraft banking facility of 1,200 Euro ( $1,344) , all of which was available on September 30, 2015. The Company’s Swiss subsidiary (Haynes International AG) had an overdraft banking facility of 500 Swiss Francs ( $514) , all of which was available on September 30, 2015. |
Pension Plan and Retirement Ben
Pension Plan and Retirement Benefits | 12 Months Ended |
Sep. 30, 2015 | |
Pension and Post-retirement Benefits | |
Pension Plan and Retirement Benefits | Note 8 Pension Plan and Retirement Benefits Defined Contribution Plans The Company sponsors a defined contribution plan (401(k)) for substantially all U.S. employees. The Company contributes an amount equal to 50% of an employee’s contribution to the plan up to a maximum contribution of 3% of the employee’s salary, except for all salaried employees and certain hourly employees (those hired after June 30, 2007 that are not eligible for the U.S. pension plan). The Company contributes an amount equal to 60% of an employee’s contribution to the plan up to a maximum contribution of 6% of the employee’s salary for these groups. Expenses associated with this plan for the years ended September 30, 2013, 2014 and 2015 totaled $1,416 , $1,436 and $1, 598 , respectively. The Company sponsors certain profit sharing plans for the benefit of employees meeting certain eligibility requirements. There were no contributions to these plans for the years ended September 30, 2013, 2014 and 2015. Defined Benefit Plans The Company has non-contributory defined benefit pension plans which cover most employees in the U.S. and certain foreign subsidiaries. In the U.S. salaried employees hired after December 31, 2005 and hourly employees hired after June 30, 2007 are not covered by the pension plan; however, they are eligible for an enhanced matching program of the defined contribution plan (401(k)). In fiscal 2008, the Company made amendments to the U.S. pension plan which included the freezing of benefit accruals for all non-union employees in the U.S. while increasing the matching contributions to its 401K plan for all participants. Effective September 30, 2009, the U.K. pension plan was amended to freeze benefit accruals for members of its plan. Benefits provided under the Company’s domestic defined benefit pension plan are based on years of service and the employee’s final compensation. The Company’s funding policy is to contribute annually an amount deductible for federal income tax purposes based upon an actuarial cost method using actuarial and economic assumptions designed to achieve adequate funding of benefit obligations. The Company has non-qualified pensions for former executives of the Company. Non-qualified pension plan expense for the years ended September 30, 2013, 2014 and 2015 was $12 , $84 and $140 , respectively. Accrued liabilities in the amount of $ 8 13 and $ 8 58 for these benefits are included in accrued pension and postretirement benefits liability at September 30, 2014 and 2015, respectively. In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for retired employees. Substantially all domestic employees become eligible for these benefits, if they reach normal retirement age while working for the Company. During March 2006, the Company communicated to employees and plan participants a negative plan amendment that caps the Company’s liability related to total retiree health care costs at $5,000 annually effective January 1, 2007. An updated actuarial valuation was performed at March 31, 2006, which reduced the accumulated postretirement benefit liability due to this plan amendment by $46,313 that was amortized as a reduction to expense over an eight year period. This amortization period began in April 2006 thus reducing the amount of expense recognized for the second half of fiscal 2006 and the respective future periods and, as of September 30, 2015 is fully amortized. The Company made contributions of $1,250 and $1,500 to fund its domestic Company-sponsored pension plan for the year ended September 30, 2014 and 2015, respectively. The Company’s U.K. subsidiary made contributions of $975 and $909 for the years ended September 30, 2014 and 2015, respectively, to the U.K. pension plan. The Company uses a September 30 measurement date for its plans. The status of employee pension benefit plans and other postretirement benefit plans are summarized below: Defined Benefit Postretirement Pension Plans Health Care Benefits Year Ended Year Ended September 30, September 30, 2014 2015 2014 2015 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ $ $ $ Service cost Interest cost Actuarial losses Benefits paid Projected benefit obligation at end of year $ $ $ $ Change in Plan Assets: Fair value of plan assets at beginning of year $ $ $ — $ — Actual return on assets — — Employer contributions Benefits paid Fair value of plan assets at end of year $ $ $ — $ — Funded Status of Plan: Unfunded status $ $ $ $ Amounts recognized in the consolidated balance sheets are as follows: Defined Benefit Postretirement Non-Qualified All Plans Pension Plans Health Care Benefits Pension Plans Combined September 30, September 30, September 30, September 30, 2014 2015 2014 2015 2014 2015 2014 2015 Accrued pension and postretirement benefits: Current $ — $ — $ $ $ $ $ $ Non - current Accrued pension and postretirement benefits $ $ $ $ $ $ $ $ Accumulated other comprehensive loss: Net loss — — Prior service cost — — — — Total accumulated other comprehensive loss $ $ $ $ $ — $ — $ $ Amounts expected to be recognized from AOCI into the statement of operations in the following year: Amortization of net loss $ $ $ $ $ — $ — $ $ Amortization of prior service cost — — — — $ $ $ $ $ — $ — $ $ The accumulated benefit obligation for the pension plans was $276,009 and $299,039 at September 30, 2014 and 2015, respectively. The cost of the Company’s postretirement benefits are accrued over the years employees provide service to the date of their full eligibility for such benefits. The Company’s policy is to fund the cost of claims on an annual basis. The components of net periodic pension cost and postretirement health care benefit cost are as follows: Defined Benefit Pension Plans Year Ended September 30, 2013 2014 2015 Service cost $ $ $ Interest cost Expected return on assets Amortization of prior service cost Recognized actuarial loss Net periodic cost $ $ $ Postretirement Health Care Benefits Year Ended September 30, 2013 2014 2015 Service cost $ $ $ Interest cost Amortization of unrecognized prior service cost — Recognized actuarial loss Net periodic cost $ $ $ Assumptions A 5.0% ( 5.5% -2014) annual rate of increase for the costs of covered health care benefits for ages under 65 and a 5.0% ( 5.0% -2014) annual rate of increase for ages over 65 were assumed for 2015, and remaining at 5.0% for the under 65 and over 65 age group s by the year 2016. A one percentage point change in assumed health care cost trend rates would have no effect on the total of service and interest cost components of pension expense in fiscal 2015 or on the accumulated postretirement benefit obligation as of September 30, 2015. The effect on total of service and interest cost components and the effect on accumulated postretirement benefit obligation is zero due to the plan amendment that caps the Company costs at $5,000 on an undiscounted basis per year. The actuarial present value of the projected pension benefit obligation and postretirement health care benefit obligation for the plans at September 30, 2014 and 2015 were determined based on the following assumptions: September 30, September 30, 2014 2015 Discount rate (postretirement health care) % % Discount rate (U.S. pension plan) % % Discount rate (U.K. pension plan) % % Rate of compensation increase (U.S. pension plan only) % % The net periodic pension and postretirement health care benefit costs for the plans were determined using the following assumptions: Defined Benefit Pension and Postretirement Health Care Plans Year Ended September 30, 2013 2014 2015 Discount rate (postretirement health care plan) % % % Discount rate (U.S. pension plan) % % % Discount rate (U.K. pension plan) % % % Expected return on plan assets (U.S. pension plan) % % % Expected return on plan assets (U.K. pension plan) % % % Rate of compensation increase (U.S. pension plan only) % % % In accordance with the Mortality Improvement Scale MP-2014, released by the Society of Actuaries in October 2014, the Company applied the new mortality assumptions which were used in the determination of the projected benefit obligation as of September 30, 2015. These new assumptions reflected a mortality improvement that was the primary determinant in realizing actuarial losses of $21.9 million and $5.1 million in pension and postretirement plans, respectively. These losses result in increases in the accrued pension liability, the accrued post-retirement liability, and corresponding increases in accumulated other comprehensive income. Plan Assets and Investment Strategy Our pension plan assets by level within the fair value hierarchy at September 30, 2014 and 2015, are presented in the table below. Our pension plan assets were accounted for at fair value. For more information on a description of the fair value hierarchy, see Note 16. September 30, 2014 Level 1 Active Level 2 Level 3 Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ $ — $ — $ Common /collective funds Bonds — — U.S. common stock — — International equity — — Total U.S. $ $ $ — $ U.K. Plan Assets: Equities $ — $ $ — $ Bonds — — Other — — Total U.K. $ — $ $ — $ Total pension plan assets $ $ $ — $ September 30, 2015 Level 1 Active Level 2 Level 3 Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ $ — $ — $ Common /collective funds Bonds — — U.S. common stock — — International equity — — Total U.S. $ $ $ — $ U.K. Plan Assets: Equities $ — $ $ — $ Bonds — — Other — — Total U.K. $ — $ $ — $ Total pension plan assets $ $ $ — $ The primary financial objectives of the Plans are to minimize cash contributions over the long term and preserve capital while maintaining a high degree of liquidity. A secondary financial objective is, where possible, to avoid significant downside risk in the short run. The objective is based on a long-term investment horizon so that interim fluctuations should be viewed with appropriate perspective. The selection of the U.S. Plan’s assumption for the expected long-term rate of return on plan assets is based upon the Plan’s target allocation of 60% equities and 40% bonds, and the expected rate of return for each equity/bond asset class. Based upon the target allocation and each asset class’s expected return, the Plan’s return on assets assumption is 7.50% , and it remains unchanged from last year’s assumption. The Company also realizes that historical performance is no guarantee of future performance. In determining the expected rate of return on plan assets, the Company takes into account the Plan’s allocation at September 30, 2015 of 60% equities, 40% fixed income and 0% other. The Company assumes an approximately 3.00% to 4.00% equity risk premium above the broad bond market yields of 5.00% to 7.00% . Note that over very long historical periods the realized risk premium has been higher. The Company believes that its assumption of a 7.5% long-term rate of return on plan assets is comparable to other companies, given the target allocation of the plan assets; however, there exists the potential for the use of a lower rate in the future. It is the policy of the U.S. pension plan to invest assets with an allocation to equities as shown below. The balance of the assets are maintained in fixed income investments, and in cash holdings, to the extent permitted by the plan documents. Asset classes as a percent of total assets: Asset Class Target (1) Equity % Fixed Income % Real Estate and Other — % (1) From time to time the Company may adjust the target allocation by an amount not to exceed 10% . The U.K. pension plan assets use a similar strategy and investment objective. Contributions and Benefit Payments The Company has not yet determined the amounts to contribute to its domestic pension plans, domestic other postretirement benefit plans, and the U.K. pension plan in fiscal 2016. Pension and postretirement health care benefits, which include expected future service, are expected to be paid out of the respective plans as follows: Postretirement Fiscal Year Ending September 30 Pension Health Care 2016 $ $ 2017 2018 2019 2020 2021 - 2025 (in total) |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2015 | |
Commitments | |
Commitments | Note 9 Commitments The Company leases certain transportation vehicles, warehouse facilities, office space and machinery and equipment under cancelable and non-cancelable leases, most of which expire within 10 years and may be renewed by the Company. Rent expense under such arrangements totaled $3,693 , $3,518 and $3,403 for the years ended September 30, 2013, 2014 and 2015, respectively. Rent expense does not include income from sub-lease rentals totaling $129 , $147 and $105 for the years ended September 30, 2013, 2014 and 2015, respectively. Future minimum rental commitments under non-cancelable operating leases at September 30, 2015, are as follows: Operating 2016 $ 2017 2018 2019 2020 2021 and thereafter $ Future minimum rental commitments under non-cancelable operating leases have not been reduced by minimum sub-lease rentals of $35 due in the future. |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 12 Months Ended |
Sep. 30, 2015 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Note 10 Legal, Environmental and Other Contingencies The Company is regularly involved in litigation, both as a plaintiff and as a defendant, relating to its business and operations, including environmental, commercial, employment and federal and/or state Equal Employment Opportunity Commission (EEOC) administrative actions. Future expenditures for environmental, employment, intellectual property and other legal matters cannot be determined with any degree of certainty; however, based on the facts presently known, management does not believe that such costs will have a material effect on the Company’s financial position, results of operations or cash flows. The Company is currently, and has in the past been, subject to claims involving personal injuries allegedly relating to its products and processes. For example, the Company is presently involved in two actions involving welding rod-related injuries, which were filed in California state court against numerous manufacturers, including the Company, in May 2006 and February 2007, respectively, alleging that the welding-related products of the defendant manufacturers harmed the users of such products through the inhalation of welding fumes containing manganese. The Company (together with a number of other manufacturer defendants) is also involved in three actions alleging that asbestos in its facilities harmed the plaintiffs. The Company believes that it has defenses to these allegations and that, if the Company were to be found liable, the cases would not have a material effect on its financial position, results of operations or liquidity. The Company has received permits from the Indiana Department of Environmental Management, or IDEM, to close and to provide post-closure monitoring and care for certain areas at the Kokomo facility previously used for the storage and disposal of wastes, some of which are classified as hazardous under applicable regulations. Closure certification was received in fiscal 1988 for the South Landfill at the Kokomo facility, and post-closure monitoring and care is ongoing there. Closure certification was received in fiscal 1999 for the North Landfill at the Kokomo facility, and post-closure monitoring and care are permitted and ongoing there. In fiscal 2007, IDEM issued a single post-closure permit applicable to both the North and South Landfills, which contains monitoring and post-closure care requirements. In addition, IDEM required that a Resource Conservation and Recovery Act, or RCRA, Facility Investigation, or RFI and which was renewed in 2012, be conducted in order to further evaluate one additional area of concern and one additional solid waste management unit. The RFI commenced in fiscal 2008 and is ongoing. The Company believes that some additional testing is necessary. The Company has also received permits from the North Carolina Department of Environment and Natural Resources, or NCDENR, to close and provide post-closure monitoring and care for the hazardous waste lagoon at its Mountain Home, North Carolina facility. The lagoon area has been closed and is currently undergoing post-closure monitoring and care. The Company is required to monitor groundwater and to continue post-closure maintenance of the former disposal areas at each site. As a result, the Company is aware of elevated levels of certain contaminants in the groundwater, and additional corrective action by the Company could be required. On August 3, 2012, the Company received an information request from the United States Environmental Protection Agency, or EPA, relating to the Company’s compliance with laws relating to air quality. The Company has responded to the request, and there has been no further action by the EPA. As of September 30, 2015, the Company has accrued $749 for post-closure monitoring and maintenance activities, of which $662 is included in long-term obligations as it is not due within one year. Accruals for these costs are calculated by estimating the cost to monitor and maintain each post-closure site and multiplying that amount by the number of years remaining in the post-closure monitoring. Expected maturities of post-closure monitoring and maintenance activities (discounted) included in long-term obligations are as follows at September 30, 2015. 2016 $ — 2017 2018 2019 2020 2021 and thereafter $ |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 11 Stock - based Compensation Restricted Stock Plan On February 23, 2009, the Company adopted a restricted stock plan that reserved 400,000 shares of common stock for issuance. Grants of restricted stock are grants of shares of the Company’s common stock subject to transfer restrictions, which vest in accordance with the terms and conditions established by the Compensation Committee. The Compensation Committee may set vesting requirements based on the achievement of specific performance goals or the passage of time. Restricted shares are subject to forfeiture if employment or service terminates prior to the vesting date or if any applicable performance goals are not met. The Company will assess, on an ongoing basis, the probability of whether the performance criteria will be achieved. The Company will recognize compensation expense over the performance period if it is deemed probable that the goals will be achieved. The fair value of the Company’s restricted stock is determined based upon the closing price of the Company’s common stock on the trading day immediately preceding the grant date. The plan provides for the adjustment of the number of shares covered by an outstanding grant and the maximum number of shares for which restricted stock may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. On November 25, 2014 the Company granted 41,700 shares of restricted stock to certain key employees and non-employee directors. The shares of restricted stock granted to employees will vest on the third anniversary of their grant date, provided that (a) the recipient is still an employee of the Company and (b) the Company has met a three -year net income performance goal, if applicable. The shares of restricted stock granted to non-employee directors will vest on the earlier of (a) the first anniversary of the date of grant or (b) the failure of such non-employee director to be re-elected at an annual meeting of the stockholders of the Company as a result of such non-employee director being excluded from the nominations for any reason other than cause. The fair value of the grants were $46.72 per share, the closing price of the Company’s common stock on the trading day immediately preceding the day of the applicable grant. The following table summarizes the activity under the restricted stock plan for the year ended September 30, 2015: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2014 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at September 30, 2015 $ Expected to vest $ Compensation expense related to restricted stock for the years ended September 30, 2013, 2014 and 2015 was $832, $1,295, and $1,650 , respectively. The remaining unrecognized compensation expense at September 30, 2015 was $1,900 , to be recognized over a weighted average period of 1.15 years. During fiscal 2015, the Company repurchased 5,221 shares of stock from employees at an average purchase price of $48.04 to satisfy required employee-owed taxes on stock—based compensation. Stock Option Plans The Company has two stock option plans that authorize the granting of non-qualified stock options to certain key employees and non-employee directors for the purchase of a maximum of 1,500,000 shares of the Company’s common stock. The original option plan was adopted in August 2004 and provides for the grant of options to purchase up to 1,000,000 shares of the Company’s common stock. In January 2007, the Company’s Board of Directors adopted a second option plan that provides for options to purchase up to 500,000 shares of the Company’s common stock. Each plan provides for the adjustment of the maximum number of shares for which options may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. Unless the Compensation Committee determines otherwise, options granted under the option plans are exercisable for a period of ten years from the date of grant and vest 33 1 / 3 % per year over three years from the grant date. The amount of compensation cost recognized in the financial statements is measured based upon the grant date fair value. The fair value of option grants was estimated as of the date of the grant. The Company has elected to use the Black-Scholes option pricing model, which incorporates various assumptions including volatility, expected life, risk-free interest rates, expected forfeitures and dividend yields. The volatility is based on historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the stock option granted. The Company uses historical volatility because management believes such volatility is representative of prospective trends. The expected term of an award is based on historical exercise data. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the awards. The expected forfeiture rate is based upon historical experience. The dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant. Valuation of future grants under the Black-Scholes model will include a dividend yield. The following assumptions were used for grants in the first quarter of fiscal 2015: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 25, 2014 $ % % % years On November 25, 2014, the Company granted 81,100 options at an exercise price of $46.72 , the fair market value of the Company’s common stock the day immediately preceding the day of the grant. No options were exercised during fiscal 2015, however 4,500 options were forfeited. The stock-based employee compensation expense for stock options for the years ended September 30, 2013, 2014 and 2015 was $424 , $474 and $534 , respectively. The remaining unrecognized compensation expense at September 30, 2015 was $678 , to be recognized over a weighted average vesting period of 1.24 years. The following table summarizes the activity under the stock option plans for the year ended September 30, 2015: Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2014 $ Granted $ Exercised — $ — Canceled $ Outstanding at September 30, 2015 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at September 30, 2015 $ $ yrs. Remaining Outstanding Exercisable Exercise Price Contractual Number of Number of Grant Date Per Share Life in Years Shares Shares March 31, 2006 March 30, 2007 March 31, 2008 October 1, 2008 March 31, 2009 January 8, 2010 November 24, 2010 November 25, 2011 November 20, 2012 December 10, 2012 November 26, 2013 November 25, 2014 — |
Quarterly Data (unaudited)
Quarterly Data (unaudited) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly Data (unaudited) | |
Quarterly Data (unaudited) | Note 12 Quarterly Data (unaudited) The unaudited quarterly results of operations of the Company for years ended September 30, 2014 and 2015 are as follows: 2014 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ $ $ $ Gross Profit Net income Net income per share: Basic $ $ $ $ Diluted $ ($0.29) $ $ $ 2015 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ $ $ $ Gross Profit Net income Net income per share: Basic $ $ $ $ Diluted $ $ $ $ |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting | |
Segment Reporting | Note 13 Segment Reporting The Company operates in one business segment: the design, manufacture, marketing and distribution of technologically advanced, high-performance alloys for use in the aerospace, land-based gas turbine, chemical processing and other industries. The Company has operations in the United States, Europe and China, which are summarized below. Sales between geographic areas are made at negotiated selling prices. Revenues from external customers are attributed to the geographic areas presented based on the destination of product shipments. Year Ended September 30, 2013 2014 2015 Net Revenue by Geography: United States $ $ $ Europe China Other Net Revenues $ $ $ Net Revenue by Product Group: High-temperature resistant alloys $ $ $ Corrosive-resistant alloys Net revenues $ $ $ September 30, 2014 2015 Long - lived Assets by Geography: United States $ $ Europe China Total long-lived assets $ $ |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2015 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | Note 14 Valuation and Qualifying Accounts Balance at Charges Balance at Beginning (credits) to End of of Period Expense Deductions (1) Period Allowance for doubtful accounts receivables: September 30, 2015 September 30, 2014 September 30, 2013 (1) Uncollectible accounts written off net of recoveries . |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Sep. 30, 2015 | |
Deferred Revenue | |
Deferred Revenue | Note 15 Deferred Revenue On November 17, 2006, the Company entered into a twenty -year agreement to provide conversion services to Titanium Metals Corporation (TIMET) for up to ten million pounds of titanium metal annually. TIMET paid the Company a $50,000 up-front fee and will also pay the Company for its processing services during the term of the agreement (20 years) at prices established by the terms of the agreement. TIMET may exercise an option to have ten million additional pounds of titanium converted annually, provided that it offers to loan up to $12,000 to the Company for certain capital expenditures which may be required to expand capacity. In addition to the volume commitment, the Company has granted TIMET a first priority security interest in its four-high Steckel rolling mill, along with rights of access if the Company enters into bankruptcy or defaults on any financing arrangements. The Company has agreed not to manufacture titanium products (other than cold reduced titanium tubing). The Company has also agreed not to provide titanium hot-rolling conversion services to any entity other than TIMET for the term of the Conversion Services Agreement. The agreement contains certain default provisions which could result in contract termination and damages, including liquidated damages of $25.0 million and the Company being required to return the unearned portion of the up-front fee. The Company considered each provision and the likelihood of the occurrence of a default that would result in liquidated damages. Based on the nature of the events that could trigger the liquidated damages clause, and the availability of the cure periods set forth in the agreement, the Company determined and continues to believe that none of these circumstances are reasonably likely to occur. Therefore, events resulting in liquidated damages have not been factored in as a reduction to the amount of revenue recognized over the life of the contract. The cash received of $50,000 is recognized in income on a straight-line basis over the 20 -year term of the agreement. If an event of default occurred and was not cured within any applicable grace period, the Company would recognize the impact of the liquidated damages in the period of default and re-evaluate revenue recognition under the contract for future periods. The portion of the up-front fee not recognized in income is shown as deferred revenue on the consolidated balance sheet. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | Note 16 Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value: · Level 1—Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; · Level 2—Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and · Level 3—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. When available, the Company uses unadjusted quoted market prices to measure fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon internally-developed models that use, where possible, current market-based or independently-sourced market parameters such as interest rates and currency rates. Items valued using internally-generated models are classified according to the lowest level input or value driver that is significant to the valuation. If quoted market prices are not available, the valuation model used depends on the specific asset or liability being valued. A portion of the Company’s pension plan assets are in a common collective trust that is considered within Level 2. To determine the fair value of these assets, the Company uses the quoted market prices of the underlying assets of the common collective trust. (See Note 8.) The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and 2015: September 30, 2014 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 Total Assets: Cash and money market funds $ $ — $ — $ Pension plan assets — Total fair value $ $ $ — $ September 30, 2015 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 Total Assets: Cash and money market funds $ $ — $ — $ Pension plan assets — Total fair value $ $ — $ The Company had no Level 3 assets as of September 30, 2014 or 2015. |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Sep. 30, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | Note 17. Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component Comprehensive income (loss) includes changes in equity that result from transactions and economic events from non-owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) items, including pension and foreign currency translation adjustments, net of tax when applicable. Comprehensive Income (Loss) Year Ended September 30, 2013 2014 2015 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income $ $ $ Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ $ $ $ $ $ Less: amortization of prior service cost Less: amortization of gain (loss) Foreign currency translation adjustment — — — Other comprehensive income (loss) $ $ $ $ $ $ Total comprehensive income (loss) $ $ $ Accumulated Other Comprehensive Income (Loss) Year Ended September 30, 2014 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2013 $ $ $ $ Other comprehensive loss before reclassifications Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) — Actuarial losses (a) — Tax expense or (benefit) — Net current-period other comprehensive loss Accumulated other comprehensive income (loss) as of September 30, 2014 $ $ $ $ Year Ended September 30, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2014 $ $ $ $ Other comprehensive loss before reclassifications Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) — — Actuarial losses (a) — Tax benefit — Net current-period other comprehensive loss Accumulated other comprehensive loss as of September 30, 2015 $ $ $ $ (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost . |
Capital Lease Obligation
Capital Lease Obligation | 12 Months Ended |
Sep. 30, 2015 | |
Leases, Capital [Abstract] | |
Capital lease obligation | Note 18. Capital Lease Obligation On January 1, 2015, the company entered into a capital lease agreement for the building that houses the assets and operations of LaPorte Custom Metal Processing (LCMP). The capital asset and obligation are recorded at the present value of the minimum lease payments. The asset is included in Property, plant and equipment, net on the Consolidated Balance Sheet and is depreciated over the 20 year lease term. The long term component of the capital lease obligation is included in Long term obligations. As of September 30, 2015, future minimum lease rental payments applicable to the capital lease were as follows. 2016 $ 2017 2018 2019 2020 Thereafter Total minimum capital lease payments Less amounts representing interest Present value of net minimum capital lease payments Less current obligation Total long term capital lease obligation $ The capital lease obligation is included in Long-term obligations (less current portion) on the Consolidated Balance Sheet. September 30, September 30, 2014 2015 Future capital lease rental payments $ — $ Environmental post-closure monitoring and maintenance activities Less amounts due within one year Long-term obligations (less current portion) $ $ |
Acquisition
Acquisition | 12 Months Ended |
Sep. 30, 2015 | |
Acquisition | |
Acquisition | Note 19. Acquisition On January 7, 2015, the Company acquired the assets and operations of Leveltek Processing, LLC located in LaPorte, Indiana for $14.6 million in cash. The acquisition of the LaPorte assets provides the Company control of the sheet stretching, leveling, slitting and cut-to-length operations that were previously an outsourced function. Acquisition costs incurred in the first quarter of fiscal 2015 were not significant. The acquired business is being operated by LaPorte Custom Metal Processing, LLC (LCMP), a wholly-owned subsidiary of the Company. The following is a summary of the purchase price allocation in connection with the LCMP acquisition. The determination of fair value for acquired assets includes the use of Level 3 inputs, such as the condition and utilization of the property, plant and equipment acquired, management’s projected financial results for LCMP, and the discount rate used to determine the present value of anticipated future cash flows. Purchase Price Allocation Property, plant and equipment, net Customer relationships Inventory Total identifiable net assets Goodwill Total purchase price The goodwill recognized in connection with the Leveltek-LaPorte assets consists of the value associated with the addition of the stretching and leveling capabilities as well as increased capacity in slitting and cut-to-length operations to meet customer demand and is tax deductible. The complementary capabilities are expected to lead to operating cost synergies as well as expand the Company’s commercial offerings. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Nature of Operations | Principles of Consolidation and Nature of Operations The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated. The Company has manufacturing facilities in Kokomo, Indiana; Mountain Home, North Carolina; and Arcadia, Louisiana with service centers in Lebanon, Indiana; LaPorte, Indiana; LaMirada, California; Houston, Texas; Windsor, Connecticut; Openshaw, England; Lenzburg, Switzerland; Shanghai, China; and sales offices in Paris, France; Zurich, Switzerland; Singapore; Milan, Italy; Chennai, India; and Tokyo, Japan. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investment instruments, including investments with original maturities of three months or less at acquisition, to be cash equivalents, the carrying value of which approximates fair value due to the short maturity of these investments. |
Accounts Receivable | Accounts Receivable The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company markets its products to a diverse customer base, both in the United States of America and overseas. Trade credit is extended based upon evaluation of each customer’s ability to perform its obligation, which is updated periodically. The Company purchases credit insurance for certain foreign trade receivables. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when collectability is reasonably assured and when title passes to the customer, which is generally at the time of shipment with freight terms of free on board (FOB) shipping point or at a foreign port for certain export customers. Allowances for sales returns are recorded as a component of net sales in the periods in which the related sales are recognized. The Company determines this allowance based on historical experience. Additionally, the Company recognizes revenue attributable to an up-front fee received from Titanium Metals Corporation (TIMET) as a result of a twenty -year agreement, entered into on November, 17, 2006 to provide conversion services to TIMET. See Note 15 Deferred Revenue for a description of accounting treatment relating to this up-front fee. |
Inventories | Inventories Inventories are stated at the lower of cost or market. The cost of inventories is determined using the first-in, first-out (FIFO) method. The Company writes down its inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market or scrap value, if applicable, based upon assumptions about future demand and market conditions. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company has goodwill, patents, trademarks, customer relationships and other intangibles. As the patents and customer relationships have a definite life, they are amortized over lives ranging from two to sixteen years. The Company reviews patents and customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets are measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for Goodwill and August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of the trademarks exceeds the fair value (determined using an income approach, based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist resulting in a charge to earnings to the extent of the impairment. The impairment test for goodwill is performed using a two-step approach. The first step is the estimation of the fair value of the reporting unit, which is compared to its respective carrying value. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of the impairment, if any. Goodwill impairment exists when the implied fair value of goodwill is less than its carrying value. No impairment was recognized in the years ended September 30, 2014 or 2015 because the fair value exceeded the carrying values. On January 7, 2015, the Company acquired the assets and operations of Leveltek Processing, LLC in LaPorte, Indiana for $14.6 million in cash (See Note 19, Acquisition). In connection with the acquisition, the Company recorded goodwill of $4,789 and customer relationships intangible assets of $2,100 . As the customer relationships have a definite life, the Company amortizes them over a period of sixteen years under an accelerated method and tests them for impairment at least annually as of August 31 (the annual impairment testing date). The following represents the changes in the carrying value of goodwill for the period ended September 30, 2015. Goodwill at September 30, 2014 $ — Goodwill acquired - Leveltek-LaPorte Assets Adjustments — Goodwill at September 30, 2015 $ Amortization of the patents, non-competes, customer relationships and other intangibles was $416 , $416 and $511 for the years ended September 30, 2013, 2014 and 2015, respectively. The following represents a summary of intangible assets at September 30, 2014 and 2015: Gross Accumulated Carrying September 30, 2014 Amount Amortization Amount Patents $ $ $ Trademarks — Non-compete Other $ $ $ Gross Accumulated Carrying September 30, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Estimate of Aggregate Amortization Expense: Year Ended September 30, 2016 2017 2018 2019 2020 Thereafter |
Property, Plant and Equipment | Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost with depreciation calculated primarily by using the straight-line method based on estimated economic useful lives which are generally as follows: Building and improvements years Machinery and equipment — years Office equipment and computer software — years Land improvements years Expenditures for maintenance and repairs and minor renewals are charged to expense; major renewals are capitalized. Upon retirement or sale of assets, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. The Company records capitalized interest for long-term construction projects to capture the cost of capital committed prior to the placed in service date as a part of the historical cost of acquiring the asset. Interest is not capitalized when balance on the revolver is zero . The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. There was no triggering event during the years ended September 30, 2014 or 2015 and thus no impairment was recognized. |
Environmental Remediation | Environmental Remediation When it is probable that a liability has been incurred or an asset of the Company has been impaired, a loss is recognized assuming the amount of the loss can be reasonably estimated. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations and current technology. Such estimates take into consideration the expected costs of post-closure monitoring based on historical experience. |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The Company has defined benefit pension and postretirement plans covering most of its current and former employees. Significant elements in determining the assets or liabilities and related income or expense for these plans are the expected return on plan assets, the discount rate used to value future payment streams, expected trends in health care costs, and other actuarial assumptions. Annually, the Company evaluates the significant assumptions to be used to value its pension and postretirement plan assets and liabilities based on current market conditions and expectations of future costs. If actual results are less favorable than those projected by management, additional expense may be required in future periods. Salaried employees hired after December 31, 2005 and hourly employees hired after June 30, 2007 are not covered by the pension plan; however, they are eligible for an enhanced matching program of the defined contribution plan (401(k)). Effective December 31, 2007, the U.S. pension plan was amended to freeze benefits for all non-union employees in the U.S. Effective September 30, 2009, the U.K. pension plan was amended to freeze benefits for employees in the plan. Effective January 1, 2007 a plan amendment of the postretirement medical plan caps the Company’s liability related to retiree health care costs at $5,000 annually. |
Foreign Currency Exchange | Foreign Currency Exchange The Company’s foreign operating entities’ financial statements are denominated in the functional currencies of each respective country, which are the local currencies. All assets and liabilities are translated to U.S. dollars using exchange rates in effect at the end of the year, and revenues and expenses are translated at the weighted average rate for the year. Translation gains or losses are recorded as a separate component of comprehensive income (loss) and transaction gains and losses are reflected in the consolidated statements of operations. |
Research and Technical Costs | Research and Technical Costs Research and technical costs related to the development of new products and processes are expensed as incurred. Research and technical costs for the years ended September 30, 2013, 2014 and 2015 were $ 3,505 , $3,556 and $3,598 , respectively. |
Income Taxes | Income Taxes The Company accounts for deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. A valuation allowance is required if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of whether or not a valuation allowance is needed is based upon an evaluation of both positive and negative evidence. In its evaluation of the need for a valuation allowance, the Company utilizes prudent and feasible tax planning strategies. The ultimate amount of deferred tax assets realized could be different from those recorded, as influenced by potential changes in enacted tax laws and the availability of future taxable income. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Stock Based Compensation | Stock Based Compensation Restricted Stock Plan On February 23, 2009, the Company adopted a restricted stock plan that reserved 400,000 shares of common stock for issuance. Grants of restricted stock are shares of the Company’s common stock subject to transfer restrictions, which vest in accordance with the terms and conditions established by the Compensation Committee. The Compensation Committee may set restrictions on certain grants based on the achievement of specific performance goals and vesting of grants to participants will also be time-based. Restricted stock grants are subject to forfeiture if employment or service terminates prior to the end of the vesting period or if the performance goals are not met, if applicable. The Company will assess, on an ongoing basis, the probability of whether the performance criteria will be achieved. The Company will recognize compensation expense over the performance period if it is deemed probable that the goals will be achieved. The fair value of the Company’s restricted stock is determined based upon the closing price of the Company’s common stock on the grant date. The plan provides for the adjustment of the number of shares covered by an outstanding grant and the maximum number of shares for which restricted stock may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. Stock Option Plans The Company has two stock option plans that authorize the granting of non-qualified stock options to certain key employees and non-employee directors for the purchase of a maximum of 1,500,000 shares of the Company’s common stock. The original option plan was adopted in August 2004 pursuant to the plan of reorganization and provides for the grant of options to purchase up to 1,000,000 shares of the Company’s common stock. In January 2007, the Company’s Board of Directors adopted a second option plan that provides for options to purchase up to 500,000 shares of the Company’s common stock. Each plan provides for the adjustment of the maximum number of shares for which options may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. Unless the Compensation Committee determines otherwise, options granted under the option plans are exercisable for a period of ten years from the date of grant and vest 33 1 / 3 % per year over three years from the grant date. The amount of compensation cost recognized in the financial statement is measured based upon the grant date fair value. The fair value of the option grants is estimated on the date of grant using the Black-Scholes option pricing model with assumptions on dividend yield, risk-free interest rate, expected volatilities, expected forfeiture rate and expected lives of the options. |
Financial Instruments and Concentrations of Risk | Financial Instruments and Concentrations of Risk The Company may periodically enter into forward currency exchange contracts to minimize the variability in the Company’s operating results arising from foreign exchange rate movements. The Company does not engage in foreign currency speculation. At September 30, 2014 and 2015, the Company had no foreign currency exchange contracts outstanding. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. At September 30, 2015, and periodically throughout the year, the Company has maintained cash balances in excess of federally insured limits. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the relatively short maturity of these instruments. During 2013, 2014 and 2015, the Company did not have sales to any group of affiliated customers that were greater than 10% of net revenues. The Company generally does not require collateral with the exception of letters of credit with certain foreign sales. Credit losses have been within management’s expectations. In addition, the Company purchases credit insurance for certain foreign trade receivables. The Company does not believe it is significantly vulnerable to the risk of near-term severe impact from business concentrations with respect to customers, suppliers, products, markets or geographic areas. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to bad debts, inventories, income taxes, asset impairment, retirement benefits, and environmental matters. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, pension asset mix and in some cases, actuarial techniques, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company routinely reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. |
Earnings Per Share | Earnings Per Share The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each period. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Basic and diluted net income per share were computed as follows: Years ended September 30, (in thousands, except share and per share data) 2013 2014 2015 Numerator: Basic and Diluted Net income $ $ $ Dividends paid Undistributed income (loss) Percentage allocated to common shares % % % Undistributed income (loss) allocated to common shares Dividends paid on common shares outstanding Net income available to common shares Denominator: Basic and Diluted Weighted average common shares outstanding Adjustment for dilutive potential common shares Weighted average shares outstanding - Diluted Basic net income per share $ $ $ Diluted net income per share $ $ $ Number of stock option shares excluded as their effect would be anti-dilutive Number of restrictive stock shares excluded as their effect would be anti-dilutive (a) Percentage allocated to common shares - weighted average Common shares outstanding Unvested participating shares |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The objective of the update is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect, if any, on its financial statements. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815) . The objective of the update is to set forth the definition of a derivative instrument and specify how to account for such instruments, including derivatives embedded in hybrid instruments. In addition, this update establishes when reporting entities, in certain limited, well-defined circumstances, may apply hedge accounting to a relationship involving a designated hedging instrument and hedged exposure. It is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. This update is not expected to result in a material impact to the consolidated financial statements or the related disclosures. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) . The objective of this update was to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. It is effective for annual reporting periods beginning after December 15, 2016 and interim periods within fiscal years beginning after December 15, 2017. The adoption of these changes is not expected to have a material impact to the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-15, Interest – Imputation of interest (Subtopic 835-30) : Simplifying the Presentation of Debt Issuance Costs, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB clarified ASU 2015-15 to address presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. This amendment allows for the reporting entity to defer and present debt issuance costs as an asset and subsequently amortize the debt issuance costs over the term of the line-of-credit agreement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement, including interim periods within that reporting period. This update is not expected to result in a material impact to the consolidated financial statements or the related disclosures. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes changes in equity that result from transactions and economic events from non-owner sources. See Note 17 for a breakdown of Comprehensive Income (Loss) and changes in Accumulated Other Comprehensive Loss net of tax effects. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies | |
Schedule Changes in the carrying value of goodwill | Goodwill at September 30, 2014 $ — Goodwill acquired - Leveltek-LaPorte Assets Adjustments — Goodwill at September 30, 2015 $ |
Summary of intangible assets | Gross Accumulated Carrying September 30, 2014 Amount Amortization Amount Patents $ $ $ Trademarks — Non-compete Other $ $ $ Gross Accumulated Carrying September 30, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ |
Schedule of estimate of aggregate amortization expense | Estimate of Aggregate Amortization Expense: Year Ended September 30, 2016 2017 2018 2019 2020 Thereafter |
Schedule of estimated economic useful lives of property, plant and equipment | Building and improvements years Machinery and equipment — years Office equipment and computer software — years Land improvements years |
Schedule of basic and diluted net income per share | Years ended September 30, (in thousands, except share and per share data) 2013 2014 2015 Numerator: Basic and Diluted Net income $ $ $ Dividends paid Undistributed income (loss) Percentage allocated to common shares % % % Undistributed income (loss) allocated to common shares Dividends paid on common shares outstanding Net income available to common shares Denominator: Basic and Diluted Weighted average common shares outstanding Adjustment for dilutive potential common shares Weighted average shares outstanding - Diluted Basic net income per share $ $ $ Diluted net income per share $ $ $ Number of stock option shares excluded as their effect would be anti-dilutive Number of restrictive stock shares excluded as their effect would be anti-dilutive (a) Percentage allocated to common shares - weighted average Common shares outstanding Unvested participating shares |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Summary of major classes of inventories | September 30, September 30, 2014 2015 Raw Materials $ $ Work-in-process Finished Goods Other $ $ |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment | |
Summary of the major classes of property, plant and equipment | September 30, 2014 2015 Land and land improvements $ $ Buildings Machinery and equipment Construction in process Less accumulated depreciation $ $ |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses | |
Summary of the major classes of accrued expenses | September 30, 2014 2015 Employee compensation $ $ Taxes, other than income taxes Utilities Professional Fees Capital lease obligation, current — Other $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Schedule of components of income before provision for income taxes | Year Ended September 30, 2013 2014 2015 Income before income taxes: U.S. $ $ $ Foreign Total $ $ $ Provision for income taxes: Current: U.S. Federal $ $ $ Foreign State Total Deferred: U.S. Federal Foreign State Valuation allowance — — Total Total provision for income taxes $ $ $ |
Schedule of provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate | Year Ended September 30, 2013 2014 2015 Statutory federal tax rate % % % Tax provision for income taxes at the statutory rate $ $ $ Foreign tax rate differentials Provision for state taxes, net of federal taxes U.S. tax on distributed and undistributed earnings of foreign subsidiaries Manufacturer’s deduction — Tax credits State tax rate change impact on deferred tax asset Change in Valuation Allowance — — Other, net Provision for income taxes at effective tax rate $ $ $ Effective tax rate % % % |
Schedule of deferred tax assets (liabilities) | September 30, 2014 2015 Deferred tax assets: Pension and postretirement benefits $ $ TIMET Agreement Inventories Accrued compensation and benefits Accrued expenses and other Tax attributes Valuation allowance — Total deferred tax assets $ $ Deferred tax liabilities: Property, plant and equipment, net $ $ Intangible and other Total deferred tax liabilities $ $ Net deferred tax assets (liabilities) $ $ Current deferred tax assets $ $ Long-term deferred tax asset $ $ |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | October 1, 2012 To October 1, 2013 To October 1, 2014 To September 30, September 30, September 30, 2013 2014 2015 Balance at beginning of period $ $ — $ — Gross Increases—current period tax positions — — — Gross Decreases—current period tax positions — — — Gross Increases—tax positions in prior periods — — — Gross Decreases—tax positions in prior periods — — — Gross Decreases—settlements with taxing authorities — — — Gross Decreases—lapse of statute of limitations — — Balance at end of period $ — $ — $ — |
Pension Plan and Retirement B33
Pension Plan and Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Pension and Post-retirement Benefits | |
Schedule of status of employee pension benefit plans and other postretirement benefit plans | Defined Benefit Postretirement Pension Plans Health Care Benefits Year Ended Year Ended September 30, September 30, 2014 2015 2014 2015 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ $ $ $ Service cost Interest cost Actuarial losses Benefits paid Projected benefit obligation at end of year $ $ $ $ Change in Plan Assets: Fair value of plan assets at beginning of year $ $ $ — $ — Actual return on assets — — Employer contributions Benefits paid Fair value of plan assets at end of year $ $ $ — $ — Funded Status of Plan: Unfunded status $ $ $ $ |
Schedule of amounts recognized in the consolidated balance sheets and amounts expected to be recognized from AOCI into the statement of operations in the following year | Defined Benefit Postretirement Non-Qualified All Plans Pension Plans Health Care Benefits Pension Plans Combined September 30, September 30, September 30, September 30, 2014 2015 2014 2015 2014 2015 2014 2015 Accrued pension and postretirement benefits: Current $ — $ — $ $ $ $ $ $ Non - current Accrued pension and postretirement benefits $ $ $ $ $ $ $ $ Accumulated other comprehensive loss: Net loss — — Prior service cost — — — — Total accumulated other comprehensive loss $ $ $ $ $ — $ — $ $ Amounts expected to be recognized from AOCI into the statement of operations in the following year: Amortization of net loss $ $ $ $ $ — $ — $ $ Amortization of prior service cost — — — — $ $ $ $ $ — $ — $ $ |
Schedule of components of net periodic pension and postretirement benefit cost | Defined Benefit Pension Plans Year Ended September 30, 2013 2014 2015 Service cost $ $ $ Interest cost Expected return on assets Amortization of prior service cost Recognized actuarial loss Net periodic cost $ $ $ Postretirement Health Care Benefits Year Ended September 30, 2013 2014 2015 Service cost $ $ $ Interest cost Amortization of unrecognized prior service cost — Recognized actuarial loss Net periodic cost $ $ $ |
Schedule of assumptions used to determine actuarial present value of the projected pension benefit obligation and postretirement health care benefit obligation for the plans | September 30, September 30, 2014 2015 Discount rate (postretirement health care) % % Discount rate (U.S. pension plan) % % Discount rate (U.K. pension plan) % % Rate of compensation increase (U.S. pension plan only) % % |
Schedule of assumptions used to determine net periodic pension and postretirement health care benefit costs for the plans | Defined Benefit Pension and Postretirement Health Care Plans Year Ended September 30, 2013 2014 2015 Discount rate (postretirement health care plan) % % % Discount rate (U.S. pension plan) % % % Discount rate (U.K. pension plan) % % % Expected return on plan assets (U.S. pension plan) % % % Expected return on plan assets (U.K. pension plan) % % % Rate of compensation increase (U.S. pension plan only) % % % |
Schedule of plan assets by level within the fair value hierarchy | September 30, 2014 Level 1 Active Level 2 Level 3 Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ $ — $ — $ Common /collective funds Bonds — — U.S. common stock — — International equity — — Total U.S. $ $ $ — $ U.K. Plan Assets: Equities $ — $ $ — $ Bonds — — Other — — Total U.K. $ — $ $ — $ Total pension plan assets $ $ $ — $ September 30, 2015 Level 1 Active Level 2 Level 3 Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ $ — $ — $ Common /collective funds Bonds — — U.S. common stock — — International equity — — Total U.S. $ $ $ — $ U.K. Plan Assets: Equities $ — $ $ — $ Bonds — — Other — — Total U.K. $ — $ $ — $ Total pension plan assets $ $ $ — $ |
Schedule of asset classes as a percent of total assets | Asset Class Target (1) Equity % Fixed Income % Real Estate and Other — % (1) From time to time the Company may adjust the target allocation by an amount not to exceed 10% . |
Schedule of expected benefit payments | Postretirement Fiscal Year Ending September 30 Pension Health Care 2016 $ $ 2017 2018 2019 2020 2021 - 2025 (in total) |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Commitments | |
Schedule of future minimum rental commitments under non-cancelable operating leases | Operating 2016 $ 2017 2018 2019 2020 2021 and thereafter $ |
Legal, Environmental and Othe35
Legal, Environmental and Other Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Legal, Environmental and Other Contingencies | |
Schedule of maturities of long-term obligations (discounted) | 2016 $ — 2017 2018 2019 2020 2021 and thereafter $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | |
Summary of activity under the restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2014 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at September 30, 2015 $ Expected to vest $ |
Schedule of fair value assumptions used for grants under the stock option plan | Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 25, 2014 $ % % % years |
Summary of activity under the stock option plans | Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2014 $ Granted $ Exercised — $ — Canceled $ Outstanding at September 30, 2015 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at September 30, 2015 $ $ yrs. Remaining Outstanding Exercisable Exercise Price Contractual Number of Number of Grant Date Per Share Life in Years Shares Shares March 31, 2006 March 30, 2007 March 31, 2008 October 1, 2008 March 31, 2009 January 8, 2010 November 24, 2010 November 25, 2011 November 20, 2012 December 10, 2012 November 26, 2013 November 25, 2014 — |
Quarterly Data (unaudited) (Tab
Quarterly Data (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly Data (unaudited) | |
Schedule of unaudited quarterly results of operations of the Company | 2014 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ $ $ $ Gross Profit Net income Net income per share: Basic $ $ $ $ Diluted $ ($0.29) $ $ $ 2015 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ $ $ $ Gross Profit Net income Net income per share: Basic $ $ $ $ Diluted $ $ $ $ |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting | |
Schedule of revenues from external customers attributable to geographic areas | Year Ended September 30, 2013 2014 2015 Net Revenue by Geography: United States $ $ $ Europe China Other Net Revenues $ $ $ Net Revenue by Product Group: High-temperature resistant alloys $ $ $ Corrosive-resistant alloys Net revenues $ $ $ |
Schedule of long-lived assets by geographic areas | September 30, 2014 2015 Long - lived Assets by Geography: United States $ $ Europe China Total long-lived assets $ $ |
Valuation and Qualifying Acco39
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Valuation and Qualifying Accounts | |
Schedule of changes in valuation and qualifying accounts | Balance at Charges Balance at Beginning (credits) to End of of Period Expense Deductions (1) Period Allowance for doubtful accounts receivables: September 30, 2015 September 30, 2014 September 30, 2013 Uncollectible accounts written off net of recoveries |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
Schedule of company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis | September 30, 2014 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 Total Assets: Cash and money market funds $ $ — $ — $ Pension plan assets — Total fair value $ $ $ — $ September 30, 2015 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 Total Assets: Cash and money market funds $ $ — $ — $ Pension plan assets — Total fair value $ $ — $ |
Comprehensive Income (Loss) a41
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Schedule of comprehensive income (loss) | Year Ended September 30, 2013 2014 2015 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income $ $ $ Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ $ $ $ $ $ Less: amortization of prior service cost Less: amortization of gain (loss) Foreign currency translation adjustment — — — Other comprehensive income (loss) $ $ $ $ $ $ Total comprehensive income (loss) $ $ $ |
Schedule of accumulated other comprehensive income (loss) | Year Ended September 30, 2014 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2013 $ $ $ $ Other comprehensive loss before reclassifications Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) — Actuarial losses (a) — Tax expense or (benefit) — Net current-period other comprehensive loss Accumulated other comprehensive income (loss) as of September 30, 2014 $ $ $ $ Year Ended September 30, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2014 $ $ $ $ Other comprehensive loss before reclassifications Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) — — Actuarial losses (a) — Tax benefit — Net current-period other comprehensive loss Accumulated other comprehensive loss as of September 30, 2015 $ $ $ $ |
Capital Lease Obligation (Table
Capital Lease Obligation (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Leases, Capital [Abstract] | |
Schedule of future minimum lease rental payments applicable to the capital lease | As of September 30, 2015, future minimum lease rental payments applicable to the capital lease were as follows. 2016 $ 2017 2018 2019 2020 Thereafter Total minimum capital lease payments Less amounts representing interest Present value of net minimum capital lease payments Less current obligation Total long term capital lease obligation $ |
Schedule of capital lease obligation included in Long-term obligations (Less current portion) | September 30, September 30, 2014 2015 Future capital lease rental payments $ — $ Environmental post-closure monitoring and maintenance activities Less amounts due within one year Long-term obligations (less current portion) $ $ |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Acquisition | |
Summary of the purchase price allocation | Purchase Price Allocation Property, plant and equipment, net Customer relationships Inventory Total identifiable net assets Goodwill Total purchase price |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) | Nov. 17, 2006 |
Conversion Services Arrangement | |
Revenue Recognition | |
Term of agreement to provide conversion services | 20 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | Jan. 07, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Intangible Assets | ||||
Impairment charges recognized | $ 0 | $ 0 | ||
Goodwill | 4,789 | |||
Amortization expense of patents, non-competes and other intangibles | 511 | 416 | $ 416 | |
Total intangible assets, Gross Amount | 8,660 | |||
Finite-lived intangible assets, Gross Amount | 10,260 | |||
Finite-lived intangible assets, Accumulated Amortization | (3,486) | (3,475) | ||
Finite-lived intangible assets, Carrying Amount | 6,774 | |||
Carrying Amount | 6,774 | 5,185 | ||
Leveltek Processing, LLC | ||||
Intangible Assets | ||||
Acquisition price | $ 14,600 | |||
Goodwill | 4,789 | |||
Customer relationships | 2,100 | |||
Patents | ||||
Intangible Assets | ||||
Finite-lived intangible assets, Gross Amount | 4,030 | 4,030 | ||
Finite-lived intangible assets, Accumulated Amortization | (3,091) | (2,813) | ||
Finite-lived intangible assets, Carrying Amount | $ 939 | 1,217 | ||
Patents | Minimum | ||||
Intangible Assets | ||||
Useful life | 2 years | |||
Patents | Maximum | ||||
Intangible Assets | ||||
Useful life | 16 years | |||
Noncompete Agreements | ||||
Intangible Assets | ||||
Finite-lived intangible assets, Gross Amount | 500 | |||
Finite-lived intangible assets, Accumulated Amortization | (452) | |||
Finite-lived intangible assets, Carrying Amount | 48 | |||
Other Intangible Assets | ||||
Intangible Assets | ||||
Finite-lived intangible assets, Gross Amount | $ 330 | 330 | ||
Finite-lived intangible assets, Accumulated Amortization | (276) | (210) | ||
Finite-lived intangible assets, Carrying Amount | $ 54 | 120 | ||
Customer relationships | ||||
Intangible Assets | ||||
Useful life | 16 years | |||
Finite-lived intangible assets, Gross Amount | $ 2,100 | |||
Finite-lived intangible assets, Accumulated Amortization | (119) | |||
Finite-lived intangible assets, Carrying Amount | 1,981 | |||
Customer relationships | Leveltek Processing, LLC | ||||
Intangible Assets | ||||
Customer relationships | $ 2,100 | |||
Trademarks | ||||
Intangible Assets | ||||
Indefinite-lived intangible assets | $ 3,800 | $ 3,800 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Details 3) $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill and Other Intangible Assets, Net | |
Goodwill acquired - Levelteck-LaPorte Assets Adjustments | $ 4,789 |
Goodwill, Ending Balance | $ 4,789 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details 4) $ in Thousands | Sep. 30, 2015USD ($) |
Estimate of Aggregate Amortization Expense: | |
2,015 | $ 489 |
2,016 | 431 |
2,017 | 427 |
2,018 | 246 |
2,019 | 140 |
Thereafter | $ 1,242 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment | ||
Balance on revolver | $ 0 | |
Impairment recognized | $ 0 | $ 0 |
Building and Building Improvements | ||
Property, Plant and Equipment | ||
Estimated economic useful lives | 40 years | |
Machinery and Equipment | Minimum | ||
Property, Plant and Equipment | ||
Estimated economic useful lives | 5 years | |
Machinery and Equipment | Maximum | ||
Property, Plant and Equipment | ||
Estimated economic useful lives | 14 years | |
Office Equipment and Computer Software | Minimum | ||
Property, Plant and Equipment | ||
Estimated economic useful lives | 3 years | |
Office Equipment and Computer Software | Maximum | ||
Property, Plant and Equipment | ||
Estimated economic useful lives | 10 years | |
Land Improvements | ||
Property, Plant and Equipment | ||
Estimated economic useful lives | 20 years |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Details 6) - USD ($) $ in Thousands | Jan. 01, 2007 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension and Postretirement Benefits | ||||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | |||
Research and Technical Costs | ||||
Research and technical expense | $ 3,598 | $ 3,556 | $ 3,505 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details 7) | 12 Months Ended |
Sep. 30, 2015planshares | |
Stock Option Plan Adopted in August 2004 | |
Stock-Based Compensation | |
Number of shares of common stock reserved for issuance | 1,000,000 |
Stock Option Plan Adopted in January 2007 | |
Stock-Based Compensation | |
Number of shares of common stock reserved for issuance | 500,000 |
Restricted Stock | |
Stock-Based Compensation | |
Number of shares of common stock reserved for issuance | 400,000 |
Employee and Directors Stock Options | |
Stock-Based Compensation | |
Number of shares of common stock reserved for issuance | 1,500,000 |
Number of plans | plan | 2 |
Period during which options are exercisable | 10 years |
Vesting of awards per year (as a percent) | 33.33% |
Award vesting period | 3 years |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details 8) - contract | Sep. 30, 2015 | Sep. 30, 2014 |
Financial Instruments | ||
Foreign currency exchange contracts outstanding | 0 | 0 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details 9) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Numerator: Basic and Diluted | |||||||||||
Net income | $ 5,784 | $ 6,602 | $ 11,719 | $ 6,381 | $ 6,370 | $ 2,096 | $ (1,223) | $ (3,492) | $ 30,486 | $ 3,751 | $ 21,577 |
Dividends paid | (10,952) | (10,906) | (10,849) | ||||||||
Undistributed income (loss) | $ 19,534 | $ (7,155) | $ 10,728 | ||||||||
Percentage allocated to common shares | 99.10% | 99.20% | 99.10% | ||||||||
Undistributed income (loss) allocated to common shares | $ 19,358 | $ (7,098) | $ 10,637 | ||||||||
Dividends paid on common shares outstanding | 10,853 | 10,819 | 10,754 | ||||||||
Net income (loss) available to common shares | $ 30,211 | $ 3,721 | $ 21,391 | ||||||||
Denominator: Basic and Diluted | |||||||||||
Weighted average common shares outstanding | 12,331,805 | 12,291,881 | 12,223,838 | ||||||||
Adjustment for dilutive potential common shares | 12,404 | 29,819 | 41,792 | ||||||||
Weighted average shares - Diluted | 12,344,209 | 12,321,700 | 12,265,630 | ||||||||
Basic net income (loss) per share (in dollars per share) | $ 0.46 | $ 0.53 | $ 0.94 | $ 0.51 | $ 0.51 | $ 0.17 | $ (0.10) | $ (0.29) | $ 2.45 | $ 0.30 | $ 1.75 |
Diluted net income (loss) per share (in dollars per share) | $ 0.46 | $ 0.53 | $ 0.94 | $ 0.51 | $ 0.51 | $ 0.17 | $ (0.10) | $ (0.29) | $ 2.45 | $ 0.30 | $ 1.74 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Details 10) - shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Employee and Directors Stock Options | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 289,130 | 180,435 | 170,623 |
Restricted Stock | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 111,450 | 98,463 | 106,575 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Details 11) - shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Percentage allocated to common shares - weighted average | |||
Common shares outstanding | 12,331,805 | 12,291,881 | 12,223,838 |
Unvested participating shares | 112,275 | 98,463 | 106,575 |
Total | 12,444,080 | 12,390,344 | 12,330,413 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Inventories | ||
Raw Materials | $ 27,152 | $ 25,050 |
Work-in-process | 117,601 | 144,285 |
Finished Goods | 101,731 | 83,674 |
Other | 1,352 | 1,018 |
Total | $ 247,836 | $ 254,027 |
Property, Plant and Equipment56
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Property, plant and equipment | ||
Gross amount | $ 302,419 | $ 273,004 |
Less accumulated depreciation | (117,068) | (98,921) |
Net amount | 185,351 | 174,083 |
Land and Land Improvements | ||
Property, plant and equipment | ||
Gross amount | 6,992 | 6,785 |
Building | ||
Property, plant and equipment | ||
Gross amount | 36,326 | 24,750 |
Machinery and Equipment | ||
Property, plant and equipment | ||
Gross amount | 251,701 | 213,834 |
Construction in Progress | ||
Property, plant and equipment | ||
Gross amount | 7,400 | $ 27,635 |
Shanghai | ||
Property, plant and equipment | ||
Assets under a capital lease for equipment related to the service center operation in Shanghai, China | 368 | |
La Porte | ||
Property, plant and equipment | ||
Assets under a capital lease for equipment related to the service center operation in Shanghai, China | $ 4,331 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Accrued Expenses | ||
Employee compensation | $ 10,935 | $ 6,750 |
Taxes, other than income taxes | 2,815 | 2,631 |
Utilities | 971 | 1,165 |
Professional Fees | 583 | 696 |
Less current obligation | 468 | |
Other | 804 | 1,971 |
Total accrued expenses | $ 16,576 | $ 13,213 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income (loss) before income taxes: | |||
U.S. | $ 36,327 | $ (360) | $ 23,555 |
Foreign | 10,849 | 5,480 | 8,443 |
Income before income taxes | 47,176 | 5,120 | 31,998 |
Current: | |||
U.S. Federal | 11,207 | 427 | 2,125 |
Foreign | 1,690 | 1,012 | 1,419 |
State | 686 | 541 | 85 |
Total | 13,583 | 1,980 | 3,629 |
Deferred: | |||
U.S. Federal | (79) | (983) | 5,907 |
Foreign | 690 | 302 | 623 |
State | 2,368 | 70 | 262 |
Valuation allowance | 128 | ||
Total | 3,107 | (611) | 6,792 |
Provision for income taxes at effective tax rate | $ 16,690 | $ 1,369 | $ 10,421 |
Effective income tax rate reconciliation | |||
Statutory federal tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Tax provision for income taxes at the statutory rate | $ 16,512 | $ 1,792 | $ 11,199 |
Foreign tax rate differentials | (1,417) | (605) | (913) |
Provision for state taxes, net of federal taxes | 818 | 230 | 473 |
U.S. tax on distributed and undistributed earnings of foreign subsidiaries | 419 | 173 | 354 |
Manufacturer's deduction | (1,213) | (217) | |
Tax credits | (240) | (91) | (78) |
State tax rate change impact on deferred tax asset | 1,565 | 157 | (182) |
Change in Valuation Allowance | 128 | ||
Other, net | 118 | (287) | (215) |
Provision for income taxes at effective tax rate | $ 16,690 | $ 1,369 | $ 10,421 |
Effective tax rate (as a percent) | 35.40% | 26.70% | 32.60% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 77,076 | $ 63,124 |
Inventories | 3,771 | 2,662 |
Accrued compensation and benefits | 2,027 | 1,606 |
Accrued expenses and other | 2,085 | 2,093 |
Tax attributes | 778 | 1,385 |
Valuation Allowance | (128) | |
Total deferred tax assets | 95,633 | 82,070 |
Deferred tax liabilities: | ||
Property, plant and equipment, net | (34,109) | (29,789) |
Intangible and other | (1,271) | (1,345) |
Total | (35,380) | (31,134) |
Net deferred tax assets (liabilities) | 60,253 | 50,936 |
Current deferred tax assets | 6,295 | 6,297 |
Deferred income taxes-long term portion | 53,958 | 44,639 |
State tax net operating loss | 24 | 5,013 |
Tax credits | 778 | 606 |
Foreign net operating loss | 483 | 1,259 |
Undistributed losses of foreign subsidiaries | 55,037 | |
Provision for U.S. income taxes | 0 | |
Conversion Services Arrangement | ||
Deferred tax assets: | ||
Total deferred tax assets | $ 10,024 | $ 11,200 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Balance at beginning of period | $ 264 | |
Gross Decreases-lapse of statute of limitations | (264) | |
Unrecognized tax benefits | ||
Unrecognized tax benefits currently recognized, impact on income statement | $ 236 | |
Reversal of accrued interest expense related to the unrecognized tax benefits | $ (75) |
Debt (Details)
Debt (Details) £ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Jul. 11, 2011USD ($) | Apr. 30, 2008GBP (£) | Apr. 30, 2008USD ($) | |
Debt | ||||
Outstanding balance | $ 0 | |||
Domestic Line of Credit | ||||
Debt | ||||
Maximum revolving loan amount under the Amended Agreement | $ 120,000 | |||
Limited borrowing capacity | 105,000 | |||
Increased maximum revolving loan amount at the request of the borrowers | $ 170,000 | |||
Outstanding balance | $ 0 | |||
Commitment fee (as a percent) | 0.25% | |||
Excess availability, percentage, maximum | 12.50% | |||
Percentage of equity interest in direct foreign subsidiaries pledged as collateral for borrowings | 65.00% | |||
Domestic Line of Credit | Maximum | Prime rate | ||||
Debt | ||||
Basis spread on variable rate (as a percent) | 0.75% | |||
Domestic Line of Credit | Maximum | Eurodollar rate | ||||
Debt | ||||
Basis spread on variable rate (as a percent) | 2.00% | |||
Foreign Line of Credit | ||||
Debt | ||||
Maximum revolving loan amount under the Amended Agreement | £ 2,000 | $ 3,026 | ||
Letter of Credit | ||||
Debt | ||||
Commitment fee (as a percent) | 1.50% | |||
Maximum aggregate amount of annual dividends which the Company may pay before certain financial metrics must be met | $ 20,000 |
Debt (Details 2)
Debt (Details 2) - Sep. 30, 2015 € in Thousands, SFr in Thousands, $ in Thousands | EUR (€) | CHF (SFr) | USD ($) |
Haynes International SARL | |||
Debt and long-term obligations | |||
Overdraft facility | € 1,200 | $ 1,344 | |
Haynes International AG | |||
Debt and long-term obligations | |||
Overdraft facility | SFr 500 | $ 514 |
Pension Plan and Retirement B63
Pension Plan and Retirement Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Defined Contribution 401K Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee's contribution contributed by the company for all employees except for all salaried employees and certain hourly employees | 50.00% | ||
Maximum percentage of employee's salary that can be contributed by the company for all employees except for all salaried employees and certain hourly employees | 3.00% | ||
Percentage of employee's contribution contributed by the company for all salaried employees and certain hourly employees | 60.00% | ||
Maximum percentage of employee's salary that can be contributed by the company for all salaried employees and certain hourly employees | 6.00% | ||
Expenses associated with defined contribution plan (401(k)) | $ 1,598 | $ 1,436 | $ 1,416 |
Profit Sharing Plans | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses associated with defined contribution plan (401(k)) | $ 0 | $ 0 | $ 0 |
Pension Plan and Retirement B64
Pension Plan and Retirement Benefits (Details 2) - USD ($) $ in Thousands | Jan. 01, 2007 | Mar. 31, 2006 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Plan and Retirement Benefits | |||||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | ||||
Change in Plan Assets: | |||||
Fair value of plan assets at end of year | $ 205,498 | ||||
Accrued pension and postretirement benefits: | |||||
Current | (4,965) | $ (4,572) | |||
Non-current | (212,872) | (173,225) | |||
Accrued pension and postretirement benefits | (217,837) | (177,797) | |||
Accumulated other comprehensive loss: | |||||
Net loss | 132,445 | 97,155 | |||
Prior service cost | 3,828 | 4,636 | |||
Total accumulated other comprehensive loss | 136,273 | 101,791 | |||
Amounts expected to be recognized from AOCI into the statement of operations in the following year: | |||||
Amortization of net loss | 11,663 | 7,079 | |||
Amortization of prior service cost | 808 | 808 | |||
Total | 12,471 | 7,887 | |||
Accumulated benefit obligation | 299,039 | 276,009 | |||
Pension Plan, Defined Benefit | |||||
Change in Benefit Obligation: | |||||
Projected benefit obligation at beginning of year | 288,559 | 273,693 | |||
Service cost | 3,898 | 3,971 | $ 4,881 | ||
Interest cost | 11,203 | 11,989 | 10,839 | ||
Actuarial losses (gains) | (21,861) | (12,143) | |||
Benefits paid | (13,578) | (13,237) | |||
Projected benefit obligation at end of year | 311,943 | 288,559 | 273,693 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 216,962 | 206,113 | |||
Actual return on assets | (295) | 21,861 | |||
Employer contribution | 2,409 | 2,225 | |||
Benefits paid | (13,578) | (13,237) | |||
Fair value of plan assets at end of year | 205,498 | 216,962 | 206,113 | ||
Funded Status of Plan: | |||||
Unfunded status | (106,445) | (71,597) | |||
Accrued pension and postretirement benefits: | |||||
Non-current | (106,445) | (71,597) | |||
Accrued pension and postretirement benefits | (106,445) | (71,597) | |||
Accumulated other comprehensive loss: | |||||
Net loss | 97,268 | 64,641 | |||
Prior service cost | 3,828 | 4,636 | |||
Total accumulated other comprehensive loss | 101,096 | 69,277 | |||
Amounts expected to be recognized from AOCI into the statement of operations in the following year: | |||||
Amortization of net loss | 8,838 | 4,645 | |||
Amortization of prior service cost | 808 | 808 | |||
Total | 9,646 | 5,453 | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||||
Service cost | 3,898 | 3,971 | 4,881 | ||
Interest cost | 11,203 | 11,989 | 10,839 | ||
Expected return | (15,117) | (15,033) | (13,189) | ||
Amortization of prior service cost | 808 | 808 | 808 | ||
Recognized actuarial loss | 4,645 | 4,612 | 10,189 | ||
Net periodic benefit cost | 5,437 | 6,347 | $ 13,528 | ||
Pension Plan, Defined Benefit | Subsidiaries | |||||
Change in Plan Assets: | |||||
Employer contribution | 909 | 975 | |||
US pension plan | |||||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 197,330 | ||||
Employer contribution | 1,500 | 1,250 | |||
Fair value of plan assets at end of year | $ 186,438 | $ 197,330 | |||
Assumptions used to determine benefit obligation | |||||
Discount rate (as a percent) | 4.00% | 4.00% | |||
Rate of compensation increase (as a percent) | 3.50% | 3.50% | |||
Assumptions used to determine net periodic benefit cost | |||||
Discount rate (as a percent) | 4.00% | 4.50% | 3.625% | ||
Expected return on plan assets (as a percent) | 7.50% | 7.50% | 7.50% | ||
Rate of compensation increase (as a percent) | 3.50% | 3.50% | 3.50% | ||
UK pension plan | |||||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | $ 19,632 | ||||
Fair value of plan assets at end of year | $ 19,060 | $ 19,632 | |||
Assumptions used to determine benefit obligation | |||||
Discount rate (as a percent) | 3.70% | 3.90% | |||
Assumptions used to determine net periodic benefit cost | |||||
Discount rate (as a percent) | 3.90% | 4.30% | 4.10% | ||
Expected return on plan assets (as a percent) | 4.40% | 4.80% | 4.20% | ||
Postretirement health care | |||||
Pension Plan and Retirement Benefits | |||||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | ||||
Reduction in accumulated postretirement benefit liability due to plan amendment | $ 46,313 | ||||
Period of amortization as a reduction to expense | 8 years | ||||
Change in Benefit Obligation: | |||||
Projected benefit obligation at beginning of year | $ 105,387 | $ 98,772 | |||
Service cost | 337 | 267 | $ 387 | ||
Interest cost | 4,385 | 4,578 | 4,330 | ||
Actuarial losses (gains) | (5,097) | (5,614) | |||
Benefits paid | (4,672) | (3,844) | |||
Projected benefit obligation at end of year | 110,534 | 105,387 | 98,772 | ||
Change in Plan Assets: | |||||
Employer contribution | 4,672 | 3,844 | |||
Benefits paid | (4,672) | (3,844) | |||
Funded Status of Plan: | |||||
Unfunded status | (110,534) | (105,387) | |||
Accrued pension and postretirement benefits: | |||||
Current | (4,870) | (4,477) | |||
Non-current | (105,664) | (100,910) | |||
Accrued pension and postretirement benefits | (110,534) | (105,387) | |||
Accumulated other comprehensive loss: | |||||
Net loss | 35,177 | 32,514 | |||
Total accumulated other comprehensive loss | 35,177 | 32,514 | |||
Amounts expected to be recognized from AOCI into the statement of operations in the following year: | |||||
Amortization of net loss | 2,825 | 2,434 | |||
Total | 2,825 | 2,434 | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||||
Service cost | 337 | 267 | 387 | ||
Interest cost | 4,385 | 4,578 | 4,330 | ||
Amortization of prior service cost | (2,895) | (5,789) | |||
Recognized actuarial loss | 2,433 | 1,996 | 3,717 | ||
Net periodic benefit cost | $ 7,155 | $ 3,946 | $ 2,645 | ||
Assumptions relating to health care cost trend rates | |||||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5.00% | ||||
Assumptions used to determine benefit obligation | |||||
Discount rate (as a percent) | 4.25% | 4.25% | |||
Assumptions used to determine net periodic benefit cost | |||||
Discount rate (as a percent) | 4.25% | 4.75% | 3.875% | ||
Postretirement health care | Over Sixty Five Age Group | |||||
Assumptions relating to health care cost trend rates | |||||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5.00% | 5.00% | |||
Postretirement health care | Under Sixty Five Age Group | |||||
Assumptions relating to health care cost trend rates | |||||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5.00% | 5.50% | |||
Non Qualified Pension Plans Defined Benefit | |||||
Accrued pension and postretirement benefits: | |||||
Current | $ (95) | $ (95) | |||
Non-current | (763) | (718) | |||
Accrued pension and postretirement benefits | (858) | (813) | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||||
Net periodic benefit cost | $ 140 | $ 84 | $ 12 |
Pension Plan and Retirement B65
Pension Plan and Retirement Benefits (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair value measurement of plan assets | |||
Total pension plan assets | $ 205,498 | ||
Minimum | |||
Asset allocation | |||
Equity risk premium above broad bond market yields (as a percent) | 3.00% | ||
Broad bond market yields (as a percent) | 5.00% | ||
Maximum | |||
Asset allocation | |||
Equity risk premium above broad bond market yields (as a percent) | 4.00% | ||
Broad bond market yields (as a percent) | 7.00% | ||
Amount of adjustment to target allocation (as a percent) | 10.00% | ||
Bonds | |||
Asset allocation | |||
Actual plan asset allocation (as a percent) | 40.00% | ||
Target plan asset allocation (as a percent) | 40.00% | ||
Equity Securities | |||
Asset allocation | |||
Actual plan asset allocation (as a percent) | 60.00% | ||
Target plan asset allocation (as a percent) | 60.00% | ||
Other Securities | |||
Asset allocation | |||
Actual plan asset allocation (as a percent) | 0.00% | ||
Fair Value, Inputs, Level 1 | |||
Fair value measurement of plan assets | |||
Total pension plan assets | $ 71,051 | ||
Fair Value, Inputs, Level 2 | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 134,447 | ||
Pension Plan, Defined Benefit | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 205,498 | $ 216,962 | $ 206,113 |
Expected benefit payments | |||
2,016 | 14,458 | ||
2,017 | 14,879 | ||
2,018 | 15,148 | ||
2,019 | 15,572 | ||
2,020 | 15,934 | ||
2021-2025 (in total) | 89,488 | ||
Pension Plan, Defined Benefit | Fair Value, Inputs, Level 1 | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 41,968 | ||
Pension Plan, Defined Benefit | Fair Value, Inputs, Level 2 | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 174,994 | ||
US pension plan | |||
Fair value measurement of plan assets | |||
Total pension plan assets | $ 186,438 | $ 197,330 | |
Asset allocation | |||
Plan's return on assets assumption (as a percent) | 7.50% | 7.50% | 7.50% |
US pension plan | Mutual Fund | |||
Fair value measurement of plan assets | |||
Total pension plan assets | $ 62,011 | $ 41,968 | |
US pension plan | Bonds | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 78,064 | 79,231 | |
US pension plan | U.S Common Stock | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 37,323 | 67,733 | |
US pension plan | International Equity | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 9,040 | 8,398 | |
US pension plan | Fair Value, Inputs, Level 1 | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 71,051 | 41,968 | |
US pension plan | Fair Value, Inputs, Level 1 | Mutual Fund | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 62,011 | 41,968 | |
US pension plan | Fair Value, Inputs, Level 1 | International Equity | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 9,040 | ||
US pension plan | Fair Value, Inputs, Level 2 | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 115,387 | 155,362 | |
US pension plan | Fair Value, Inputs, Level 2 | Bonds | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 78,064 | 79,231 | |
US pension plan | Fair Value, Inputs, Level 2 | U.S Common Stock | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 37,323 | 67,733 | |
US pension plan | Fair Value, Inputs, Level 2 | International Equity | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 8,398 | ||
UK pension plan | |||
Fair value measurement of plan assets | |||
Total pension plan assets | $ 19,060 | $ 19,632 | |
Asset allocation | |||
Plan's return on assets assumption (as a percent) | 4.40% | 4.80% | 4.20% |
UK pension plan | Bonds | |||
Fair value measurement of plan assets | |||
Total pension plan assets | $ 3,071 | $ 9,021 | |
UK pension plan | Equity Securities | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 8,539 | 8,329 | |
UK pension plan | Other Securities | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 7,450 | 2,282 | |
UK pension plan | Fair Value, Inputs, Level 2 | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 19,060 | 19,632 | |
UK pension plan | Fair Value, Inputs, Level 2 | Bonds | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 3,071 | 9,021 | |
UK pension plan | Fair Value, Inputs, Level 2 | Equity Securities | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 8,539 | 8,329 | |
UK pension plan | Fair Value, Inputs, Level 2 | Other Securities | |||
Fair value measurement of plan assets | |||
Total pension plan assets | 7,450 | $ 2,282 | |
Postretirement health care | |||
Expected benefit payments | |||
2,016 | 4,870 | ||
2,017 | 5,000 | ||
2,018 | 5,000 | ||
2,019 | 5,000 | ||
2,020 | 5,000 | ||
2021-2025 (in total) | $ 25,000 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Commitments | |||
Lease term | 10 years | ||
Rent expense | $ 3,403 | $ 3,518 | $ 3,693 |
Income from sub-lease rentals | 105 | $ 147 | $ 129 |
Future minimum rental commitments under non-cancelable operating leases | |||
2,016 | 2,852 | ||
2,017 | 2,027 | ||
2,018 | 1,293 | ||
2,019 | 846 | ||
2,020 | 117 | ||
2021 and thereafter | 6 | ||
Total | 7,141 | ||
Minimum sub-lease rentals due in the future | $ 35 |
Legal, Environmental and Othe67
Legal, Environmental and Other Contingencies (Details) - Pending Litigation | 12 Months Ended |
Sep. 30, 2015actionitem | |
Legal, Environmental and Other Contingencies | |
Number of areas of concern that required investigation | 1 |
Number of solid waste management units evaluated under RCRA, as required by IDEM | 1 |
Claims Involving Personal Injuries Allegedly Relating to the Company's Products | |
Legal, Environmental and Other Contingencies | |
Number of actions in which the entity is involved | action | 2 |
Legal, Environmental and Othe68
Legal, Environmental and Other Contingencies (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Pending Litigation | ||
Long-term obligations | ||
Environmental post-closure monitoring and maintenance activities | $ 749 | |
Long Term Obligations | ||
Long-term obligations | ||
Environmental post-closure monitoring and maintenance activities | 749 | $ 823 |
Maturities of long-term obligations (discounted) | ||
2,017 | 73 | |
2,018 | 77 | |
2,019 | 58 | |
2,020 | 49 | |
2021 and thereafter | 405 | |
Long-term obligations (less current portion) | $ 662 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 25, 2014 | Nov. 26, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Employee | |||||
Stock-Based Compensation | |||||
Award vesting period | 3 years | ||||
Period of performance goal based on net income used for determination of vesting period | 3 years | ||||
Restricted Stock | |||||
Stock-Based Compensation | |||||
Number of shares of common stock reserved for issuance | 400,000 | ||||
Restricted stock plan activity, number of shares | |||||
Unvested at beginning of the period (in shares) | 97,150 | ||||
Granted (in shares) | 41,700 | ||||
Forfeited / Canceled (in shares) | (8,950) | ||||
Vested (in shares) | (18,450) | ||||
Unvested at end of the period (in shares) | 111,450 | 97,150 | |||
Expected to vest (in shares) | 88,250 | ||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Unvested at beginning of the period (in dollars per share) | $ 51.96 | ||||
Granted (in dollars per share) | 46.72 | ||||
Forfeited / Canceled (in dollars per share) | 55.54 | ||||
Vested (in dollars per share) | 55.84 | ||||
Unvested at end of the period (in dollars per share) | 49.07 | $ 51.96 | |||
Expected to vest (in dollars per share) | $ 48.70 | ||||
Restricted stock plan activity, other disclosures | |||||
Compensation expense | $ 1,650 | $ 1,295 | $ 832 | ||
Remaining unrecognized compensation expense | $ 1,900 | ||||
Weighted average period for recognition | 1 year 1 month 24 days | ||||
Restricted Stock | Employee | |||||
Restricted stock plan activity, other disclosures | |||||
Repurchase of stock from employees (in shares) | 5,221 | ||||
Average purchase price (in dollars per share) | $ 48.04 | ||||
Restricted Stock | Key Employee Non Employee Directors | |||||
Restricted stock plan activity, number of shares | |||||
Granted (in shares) | 41,700 | ||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Granted (in dollars per share) | $ 46.72 |
Stock-Based Compensation (Det70
Stock-Based Compensation (Details 2) $ / shares in Units, $ in Thousands | Nov. 25, 2014$ / sharesshares | Sep. 30, 2015USD ($)plan$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2013USD ($) |
Stock Option Plan Adopted in August 2004 | ||||
Information relating to stock options | ||||
Number of shares of common stock reserved for issuance | 1,000,000 | |||
Stock Option Plan Adopted in January 2007 | ||||
Information relating to stock options | ||||
Number of shares of common stock reserved for issuance | 500,000 | |||
Employee and Directors Stock Options | ||||
Information relating to stock options | ||||
Number of plans | plan | 2 | |||
Number of shares of common stock reserved for issuance | 1,500,000 | |||
Period during which options are exercisable | 10 years | |||
Vesting of awards per year (as a percent) | 33.33% | |||
Award vesting period | 3 years | |||
Fair value assumptions | ||||
Fair Value (in dollars per share) | $ / shares | $ 8.17 | |||
Dividend Yield (as a percent) | 1.90% | |||
Risk-Free Interest Rate (as a percent) | 0.96% | |||
Expected Volatility (as a percent) | 28.00% | |||
Expected Life | 3 years | |||
Stock-based employee compensation expense | $ | $ 534 | $ 474 | $ 424 | |
Remaining unrecognized compensation expense | $ | $ 678 | |||
Weighted average period for recognition | 1 year 2 months 27 days | |||
Activity under stock option plans, number of shares | ||||
Outstanding at beginning of the period (in shares) | 282,001 | |||
Granted (in shares) | 81,100 | |||
Canceled (in shares) | (4,500) | |||
Outstanding at end of the period (in shares) | 358,601 | 282,001 | ||
Vested or expected to vest (in shares) | 337,516 | |||
Exercisable at end of period (in shares) | 234,867 | |||
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 358 | |||
Vested or expected to vest, Aggregate Intrinsic Value | $ | 358 | |||
Exercisable at end of the period, Aggregate Intrinsic Value | $ | $ 358 | |||
Weighted Average Exercise Prices | ||||
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 51.61 | |||
Granted (in dollars per share) | $ / shares | 46.72 | |||
Canceled (in dollars per share) | $ / shares | 62.41 | |||
Outstanding at end of period (in dollars per share) | $ / shares | 50.37 | $ 51.61 | ||
Vested or expected to vest (in dollars per share) | $ / shares | 50.50 | |||
Exercisable at end of the period (in dollars per share) | $ / shares | $ 51.45 | |||
Outstanding at end of the period, Weighted Average Remaining Contractual Life | 5 years 6 months | |||
Vested or expected to vest, Weighted Average Remaining Contractual Life | 5 years 4 months 6 days | |||
Exercisable at end of the period, Weighted Average Remaining Contractual Life | 3 years 9 months 18 days | |||
Employee and Directors Stock Options | Certain Employees | ||||
Activity under stock option plans, number of shares | ||||
Granted (in shares) | 81,100 | |||
Weighted Average Exercise Prices | ||||
Granted (in dollars per share) | $ / shares | $ 46.72 |
Stock-Based Compensation (Det71
Stock-Based Compensation (Details 3) - Employee and Directors Stock Options | 12 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Stock-Based Compensation | |
Outstanding Number of Shares | 358,601 |
Exercisable Number of Shares | 234,867 |
Exercise Price Dollar 31.00 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 31 |
Remaining Contractual Life | 6 months |
Outstanding Number of Shares | 10,000 |
Exercisable Number of Shares | 10,000 |
Exercise Price Dollar 72.93 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 72.93 |
Remaining Contractual Life | 1 year 6 months |
Outstanding Number of Shares | 45,500 |
Exercisable Number of Shares | 45,500 |
Exercise Price Dollar 54.00 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 54 |
Remaining Contractual Life | 2 years 6 months |
Outstanding Number of Shares | 55,500 |
Exercisable Number of Shares | 55,500 |
Exercise Price Dollar 46.83 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 46.83 |
Remaining Contractual Life | 3 years |
Outstanding Number of Shares | 20,000 |
Exercisable Number of Shares | 20,000 |
Exercise Price Dollar 17.82 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 17.82 |
Remaining Contractual Life | 3 years 6 months |
Outstanding Number of Shares | 12,084 |
Exercisable Number of Shares | 12,084 |
Exercise Price Dollar 34.00 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 34 |
Remaining Contractual Life | 4 years 3 months |
Outstanding Number of Shares | 12,400 |
Exercisable Number of Shares | 12,400 |
Exercise Price Dollar 40.26 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 40.26 |
Remaining Contractual Life | 5 years 2 months 1 day |
Outstanding Number of Shares | 19,667 |
Exercisable Number of Shares | 19,667 |
Exercise Price Dollar 55.88 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 55.88 |
Remaining Contractual Life | 6 years 2 months 1 day |
Outstanding Number of Shares | 19,700 |
Exercisable Number of Shares | 19,700 |
Exercise Price Dollar 47.96 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 47.96 |
Remaining Contractual Life | 7 years 2 months 1 day |
Outstanding Number of Shares | 35,600 |
Exercisable Number of Shares | 23,734 |
Exercise Price Dollar 48.39 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 48.39 |
Remaining Contractual Life | 7 years 2 months 1 day |
Outstanding Number of Shares | 1,800 |
Exercisable Number of Shares | 1,200 |
Exercise Price Dollar 52.78 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 52.78 |
Remaining Contractual Life | 8 years 2 months 1 day |
Outstanding Number of Shares | 45,250 |
Exercisable Number of Shares | 15,082 |
Exercise Price Per Share $46.72 | |
Stock-Based Compensation | |
Exercise Price Per Share (in dollars per share) | $ / shares | $ 46.72 |
Remaining Contractual Life | 9 years 2 months 1 day |
Outstanding Number of Shares | 81,100 |
Quarterly Data (unaudited) (Det
Quarterly Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Quarterly Data (unaudited) | |||||||||||
Net revenues | $ 117,001 | $ 121,270 | $ 138,688 | $ 110,676 | $ 120,067 | $ 126,293 | $ 115,350 | $ 93,700 | $ 487,635 | $ 455,410 | $ 482,746 |
Gross Profit | 21,405 | 24,151 | 27,837 | 20,271 | 18,923 | 14,061 | 9,064 | 5,250 | 93,664 | 47,298 | 73,626 |
Net income | $ 5,784 | $ 6,602 | $ 11,719 | $ 6,381 | $ 6,370 | $ 2,096 | $ (1,223) | $ (3,492) | $ 30,486 | $ 3,751 | $ 21,577 |
Net income (loss) per share: | |||||||||||
Basic (in dollars per share) | $ 0.46 | $ 0.53 | $ 0.94 | $ 0.51 | $ 0.51 | $ 0.17 | $ (0.10) | $ (0.29) | $ 2.45 | $ 0.30 | $ 1.75 |
Diluted (in dollars per share) | $ 0.46 | $ 0.53 | $ 0.94 | $ 0.51 | $ 0.51 | $ 0.17 | $ (0.10) | $ (0.29) | $ 2.45 | $ 0.30 | $ 1.74 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Segment Reporting | |||
Number of Business Segment | segment | 1 | ||
Net revenues | $ 487,635 | $ 455,410 | $ 482,746 |
Long-lived assets | 185,351 | 174,083 | |
High Temperature Resistant Alloys | |||
Segment Reporting | |||
Net revenues | 370,603 | 341,557 | 357,232 |
Corrosive Resistant Alloys | |||
Segment Reporting | |||
Net revenues | 117,032 | 113,853 | 125,514 |
United States | |||
Segment Reporting | |||
Net revenues | 287,722 | 261,631 | 268,054 |
Long-lived assets | 177,243 | 166,542 | |
Europe | |||
Segment Reporting | |||
Net revenues | 110,659 | 101,824 | 110,389 |
Long-lived assets | 7,692 | 7,021 | |
China | |||
Segment Reporting | |||
Net revenues | 28,140 | 36,596 | 39,475 |
Long-lived assets | 416 | 520 | |
Other | |||
Segment Reporting | |||
Net revenues | $ 61,114 | $ 55,359 | $ 64,828 |
Valuation and Qualifying Acco74
Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 861 | $ 1,199 | $ 1,249 |
Charges (credits) to Expense | 317 | 8 | (34) |
Deductions | (309) | (346) | (16) |
Balance at End of Period | $ 869 | $ 861 | $ 1,199 |
Deferred Revenue (Details)
Deferred Revenue (Details) - Conversion Services Arrangement $ in Thousands, lb in Millions | Nov. 17, 2006USD ($)lb | Sep. 30, 2015USD ($)lb |
Deferred revenue | ||
Term of agreement to provide conversion services | 20 years | |
Up-front fees received | $ 50,000 | |
Additional volume of titanium metal to be converted on exercise of option by service receiver (in pounds) | lb | 10 | |
Revenue recognition period | 20 years | |
Liquidated damages | $ 25,000 | |
Maximum | ||
Deferred revenue | ||
Annual volume of titanium metal to be converted (in pounds) | lb | 10 | |
Amount of loan offered by counterparty | $ 12,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Estimate of Fair Value Measurement - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Total fair value | $ 0 | $ 0 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Total fair value | 254,543 | 262,833 |
Fair Value, Measurements, Recurring | Cash and Cash Equivalents | ||
Assets: | ||
Total fair value | 49,045 | 45,871 |
Fair Value, Measurements, Recurring | Pension Plan, Defined Benefit | ||
Assets: | ||
Total fair value | 205,498 | 216,962 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total fair value | 120,096 | 87,839 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ||
Assets: | ||
Total fair value | 49,045 | 45,871 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Pension Plan, Defined Benefit | ||
Assets: | ||
Total fair value | 71,051 | 41,968 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets: | ||
Total fair value | 134,447 | 174,994 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Pension Plan, Defined Benefit | ||
Assets: | ||
Total fair value | $ 134,447 | $ 174,994 |
Comprehensive Income (Loss) a77
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |||||||||||
Net income | $ 5,784 | $ 6,602 | $ 11,719 | $ 6,381 | $ 6,370 | $ 2,096 | $ (1,223) | $ (3,492) | $ 30,486 | $ 3,751 | $ 21,577 |
Pension and postretirement: | |||||||||||
Net gain (loss) arising during period | (26,515) | (1,886) | 74,282 | ||||||||
Less: amortization of prior service cost | (808) | 2,087 | 4,981 | ||||||||
Less: amortization of gain (loss) | (7,160) | (6,608) | (13,906) | ||||||||
Foreign currency translation adjustment | (4,167) | (991) | 1,012 | ||||||||
Other comprehensive income (loss) | (38,650) | (7,398) | 66,369 | ||||||||
Pension and postretirement: | |||||||||||
Net gain (loss) arising during period | 9,595 | 698 | (27,201) | ||||||||
Less: amortization of prior service cost | 298 | (773) | (1,743) | ||||||||
Less: amortization of gain (loss) | 2,632 | 2,444 | 4,867 | ||||||||
Other comprehensive income (loss) | 12,525 | 2,369 | (24,077) | ||||||||
Pension and postretirement: | |||||||||||
Net gain (loss) arising during period | (16,920) | (1,188) | 47,081 | ||||||||
Less: amortization of prior service cost | (510) | 1,314 | 3,238 | ||||||||
Less: amortization of gain (loss) | (4,528) | (4,164) | (9,039) | ||||||||
Foreign currency translation adjustment | (4,167) | (991) | 1,012 | ||||||||
Other comprehensive income (loss) | (26,125) | (5,029) | 42,292 | ||||||||
Comprehensive income (loss) | $ 4,361 | $ (1,278) | $ 63,869 |
Comprehensive Income (Loss) a78
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accumulated other comprehensive income (loss). | |||
Balance | $ 346,730 | $ 355,803 | $ 301,098 |
Amortization of Pension and Postretirement Plan items | (808) | 2,087 | 4,981 |
Actuarial losses | (7,160) | (6,608) | (13,906) |
Tax expense or (benefit) | 16,690 | 1,369 | 10,421 |
Net current-period other comprehensive income (loss) | (26,125) | (5,029) | 42,292 |
Balance | 341,989 | 346,730 | 355,803 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss). | |||
Balance | (61,828) | (56,799) | (99,091) |
Other comprehensive loss before classifications | (31,163) | (7,879) | |
Net current-period other comprehensive income (loss) | (26,125) | (5,029) | 42,292 |
Balance | (87,953) | (61,828) | (56,799) |
Accumulated Defined Benefit Plans Adjustment | Pension Plan, Defined Benefit | |||
Accumulated other comprehensive income (loss). | |||
Balance | (42,800) | (42,798) | |
Other comprehensive loss before classifications | (23,688) | (3,418) | |
Net current-period other comprehensive income (loss) | (20,185) | (2) | |
Balance | (62,985) | (42,800) | (42,798) |
Accumulated Defined Benefit Plans Adjustment | Postretirement health care | |||
Accumulated other comprehensive income (loss). | |||
Balance | (20,000) | (15,964) | |
Other comprehensive loss before classifications | (3,308) | (3,470) | |
Net current-period other comprehensive income (loss) | (1,773) | (4,036) | |
Balance | (21,773) | (20,000) | (15,964) |
Accumulated Translation Adjustment | |||
Accumulated other comprehensive income (loss). | |||
Balance | 972 | 1,963 | |
Other comprehensive loss before classifications | (4,167) | (991) | |
Net current-period other comprehensive income (loss) | (4,167) | (991) | |
Balance | (3,195) | 972 | $ 1,963 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss). | |||
Amortization of Pension and Postretirement Plan items | 808 | (2,087) | |
Actuarial losses | 7,160 | 6,609 | |
Tax expense or (benefit) | (2,930) | (1,672) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Pension Plan, Defined Benefit | |||
Accumulated other comprehensive income (loss). | |||
Amortization of Pension and Postretirement Plan items | 808 | 808 | |
Actuarial losses | 4,726 | 4,613 | |
Tax expense or (benefit) | (2,031) | (2,005) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Postretirement health care | |||
Accumulated other comprehensive income (loss). | |||
Amortization of Pension and Postretirement Plan items | (2,895) | ||
Actuarial losses | 2,434 | 1,996 | |
Tax expense or (benefit) | $ (899) | $ 333 |
Capital lease obligation (Detai
Capital lease obligation (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Less current obligation | $ 468 | ||
Long Term Obligations | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Present value of net minimum capital lease payments | 4,380 | ||
Long-term obligations | |||
Future capital lease rental payments | 4,380 | ||
Environmental post-closure monitoring and maintenance activities | 749 | $ 823 | |
Less amounts due within one year | (555) | (78) | |
Long-term obligations (less current portion) | 4,574 | $ 745 | |
La Porte | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 468 | ||
2,017 | 534 | ||
2,018 | 538 | ||
2,019 | 545 | ||
2,020 | 550 | ||
Thereafter | 8,122 | ||
Total minimum capital lease payments | 10,757 | ||
Less amounts representing interest | (6,377) | ||
Present value of net minimum capital lease payments | 4,380 | ||
Less current obligation | (468) | ||
Total long term capital lease obligation | 3,912 | ||
Long-term obligations | |||
Future capital lease rental payments | $ 4,380 | ||
La Porte | Property Plant And Equipment | |||
Lease Term | 20 years |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Jan. 07, 2015 | Sep. 30, 2015 |
Purchase Price Allocation | ||
Goodwill | $ 4,789 | |
Leveltek Processing, LLC | ||
Acquisition | ||
Acquisition price | $ 14,600 | |
Purchase Price Allocation | ||
Property, plant and equipment, net | 7,563 | |
Customer relationships | 2,100 | |
Inventory | 148 | |
Total identifiable net assets | 9,811 | |
Goodwill | 4,789 | |
Total purchase price | 14,600 | |
Customer relationships | Leveltek Processing, LLC | ||
Purchase Price Allocation | ||
Customer relationships | $ 2,100 |