Haynes International (HAYN) 10-Q 2 Feb 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Feb. 02, 2017
Document and Entity Information
Entity Registrant Name	HAYNES INTERNATIONAL INC
Entity Central Index Key	858,655
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,510,307
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 62,961	$ 59,297
Restricted cash (Note 15)	1,923	5,446
Accounts receivable, less allowance for doubtful accounts of $402 and $468 at September 30, 2016 and December 31, 2016, respectively	52,875	61,612
Inventories	241,590	236,558
Income taxes receivable	3,286	538
Other current assets	3,906	2,809
Total current assets	366,541	366,260
Property, plant and equipment, net	198,751	199,182
Deferred income taxes	68,828	71,010
Prepayments and deferred charges	1,721	1,798
Goodwill	4,789	4,789
Other intangible assets, net	6,439	6,562
Total assets	647,069	649,601
Current liabilities:
Accounts payable	37,164	29,925
Accrued expenses	13,178	12,880
Accrued pension and postretirement benefits	5,095	5,095
Deferred revenue—current portion	2,908	7,488
Total current liabilities	58,345	55,388
Long-term obligations (less current portion)	8,022	8,256
Deferred revenue (less current portion)	22,204	22,829
Deferred income taxes	1,577	1,578
Accrued pension benefits (less current portion)	129,245	130,134
Accrued postretirement benefits (less current portion)	119,955	120,117
Total liabilities	339,348	338,302
Commitments and contingencies (Note 6)
Stockholders' equity:
Common stock, $0.001 par value (40,000,000 shares authorized, 12,520,308 and 12,545,483 shares issued and 12,491,149 and 12,510,307 outstanding at September 30, 2016 and December 31, 2016, respectively)	13	12
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0 shares issued and outstanding)
Additional paid-in capital	247,182	246,625
Accumulated earnings	177,141	180,565
Treasury stock, 29,159 shares at September 30, 2016 and 35,176 shares at December 31, 2016	(1,646)	(1,380)
Accumulated other comprehensive loss	(114,969)	(114,523)
Total stockholders' equity	307,721	311,299
Total liabilities and stockholders' equity	$ 647,069	$ 649,601

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 468	$ 402
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)	12,545,483	12,520,308
Common stock, shares outstanding (in shares)	12,510,307	12,491,149
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)	35,176	29,159

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 93,355	$ 95,070
Cost of sales	82,868	82,982
Gross profit	10,487	12,088
Selling, general and administrative expense	10,312	10,276
Research and technical expense	943	915
Operating income (loss)	(768)	897
Interest income	(57)	(26)
Interest expense	169	138
Income (loss) before income taxes	(880)	785
Provision for (benefit from) income taxes	(208)	557
Net income (loss)	$ (672)	$ 228
Net income (loss) per share:
Basic (in dollars per share)	$ (0.06)	$ 0.02
Diluted (in dollars per share)	$ (0.06)	$ 0.02
Weighted Average Common Shares Outstanding
Weighted average common shares outstanding - Basic	12,382,207	12,345,564
Weighted average common shares outstanding - Diluted	12,382,207	12,353,084
Dividend declared per common share (in dollars per share)	$ 0.22	$ 0.22

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (672)	$ 228
Other comprehensive income (loss), net of tax:
Pension and postretirement	2,580	1,976
Foreign currency translation adjustment	(3,026)	(1,688)
Other comprehensive income (loss)	(446)	288
Comprehensive income (loss)	$ (1,118)	$ 516

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (672)	$ 228
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	5,262	5,114
Amortization	123	126
Pension and post-retirement expense - U.S. and U.K.	5,859	4,786
Change in long-term obligations		14
Stock compensation expense	558	584
Excess tax expense from restricted stock vesting		114
Deferred revenue	(5,205)	15,444
Deferred income taxes	729	4,075
Loss on disposition of property	254	11
Change in assets and liabilities:
Restricted cash	3,523	(9,200)
Accounts receivable	7,648	10,492
Inventories	(6,973)	(10,657)
Other assets	(1,041)	(1,236)
Accounts payable and accrued expenses	8,938	(3,516)
Income taxes	(2,705)	(2,676)
Accrued pension and postretirement benefits	(2,829)	(3,558)
Net cash provided by operating activities	13,469	10,145
Cash flows from investing activities:
Additions to property, plant and equipment	(5,893)	(7,051)
Net cash used in investing activities	(5,893)	(7,051)
Cash flows from financing activities:
Dividends paid	(2,752)	(2,746)
Payment for purchase of treasury stock	(266)	(289)
Excess tax expense from restricted stock vesting		(114)
Payment on long-term obligation	(55)	(12)
Net cash used in financing activities	(3,073)	(3,161)
Effect of exchange rates on cash	(839)	(720)
Increase (decrease) in cash and cash equivalents:	3,664	(787)
Cash and cash equivalents:
Beginning of period	59,297	49,045
End of period	62,961	48,258
Supplemental disclosures of cash flow information:
Interest (net of capitalized interest)	155	122
Income taxes paid (refunded), net	1,836	(796)
Capital expenditures incurred but not yet paid	$ 991	$ 2,346

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2016
Basis of Presentation
Basis of Presentation	Note 1. Basis of Presentation Interim Financial Statements The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), and such principles are applied on a basis consistent with information reflected in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the interim financial information includes all adjustments and accruals, consisting only of normal recurring adjustments, which are necessary for a fair presentation of results for the respective interim periods. The results of operations for the three months ended December 31, 2016 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2017 or any interim period. Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Dec. 31, 2016
Recently Issued Accounting Standards
Recently Issued Accounting Standards	Note 2. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 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. ASU 2015-14 deferred the effective date of the update to 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 consolidated financial statements. In May, 2015, the FASB issued ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This update removes the requirements to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment is effective for annual and interim periods within those annual periods beginning after December 15, 2015. Beginning in fiscal 2017, the Company has removed investments in which fair value is measured using net asset value from the fair value hierarchy table within the footnotes to the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) . The objective of this update is 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 2015-03, Interest – Imputation of interest (Subtopic 835-30) : This update 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, a clarification was released (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. It was implemented in the first quarter of fiscal 2017 and did not result in a material impact to the Company’s consolidated financial statements or the related disclosures. In February, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . This new guidance will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new lease accounting requirements are effective for fiscal years beginning after December 18, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2016
Inventories
Inventories	Note 3. Inventories The following is a summary of the major classes of inventories: September 30, December 31, 2016 2016 Raw Materials $ $ Work-in-process Finished Goods Other $ $

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2016
Income Taxes
Income Taxes	Note 4. Income Taxes Income tax expense for the three months ended December 31, 2015 and 2016 differed from the U.S. federal statutory rate of 35% primarily due to state income taxes, differing tax rates on foreign earnings and discrete tax items that impacted income tax expense in these periods. The effective tax rate for the three months ended December 31, 2016 was 23.6% compared to 71.0% in the same period of fiscal 2016. The higher effective tax rate for the first quarter of fiscal 2016 is primarily attributable to a change in federal tax law that was enacted in the first quarter of fiscal 2016, which had a $375 unfavorable impact.

Pension and Post-retirement Ben

Pension and Post-retirement Benefits	3 Months Ended
	Dec. 31, 2016
Pension and Post-retirement Benefits
Pension and Post-retirement Benefits	Note 5. Pension and Post-retirement Benefits Components of net periodic pension and post-retirement benefit cost for the three months ended December 31, 2015 and 2016 were as follows: Three Months Ended December 31, Pension Benefits Post-retirement Benefits 2015 2016 2015 2016 Service cost $ $ $ $ Interest cost Expected return — — Amortizations Net periodic benefit cost $ $ $ $ The Company contributed $1,500 to Company-sponsored domestic pension plans, $1,322 to its other post-retirement benefit plans and $185 to the U.K. pension plan for the three months ended December 31, 2016. The Company expects to make future contributions of $4,500 to its U.S. pension plan, $3,678 to its other post-retirement benefit plan, and $594 to the U.K. pension plan for the remainder of fiscal 2017.

Legal, Environmental, and Other

Legal, Environmental, and Other Contingencies	3 Months Ended
	Dec. 31, 2016
Legal, Environmental, and Other Contingencies
Legal, Environmental, and Other Contingencies	Note 6. 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 two 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 and the North Carolina Department of Environment and Natural Resources to close and provide post closure environmental monitoring and care for the certain areas of its Kokomo, Indiana and Mountain Home, North Carolina facilities, respectively. The Company is required to, among other things, 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 testing and corrective action by the Company could be required. The Company is unable to estimate the costs of any further corrective action at these sites, if required. Accordingly, the Company cannot assure that the costs of any future corrective action at these or any other current or former sites would not have a material effect on the Company’s financial condition, results of operations or liquidity. As of September 30, 2016 and December 31, 2016, the Company has accrued $683 for post-closure monitoring and maintenance activities, of which $608 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 expenditures for post-closure monitoring and maintenance activities (discounted) included in long-term obligations were as follows at December 31, 2016. 2017 $ — 2018 2019 2020 2021 2022 and thereafter $ On February 11, 2016, the Company voluntarily reported to the Louisiana Department of Environmental Quality a leak that it discovered in one of its chemical cleaning operations at its Arcadia, Louisiana facility. As a result of the discovery, the Company is working with that department to determine the extent of the issue and appropriate remediation.

Deferred Revenue

Deferred Revenue	3 Months Ended
	Dec. 31, 2016
Deferred Revenue
Deferred Revenue	Note 7. On November 17, 2006, the Company entered into a twenty-year agreement to provide conversion services (Conversion Services Agreement) 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. During fiscal 2016, the Company received advance payments of $16,069 related to special projects, of which $15,661 was recognized as revenue upon shipment. The remaining amount of $408 will be recognized as revenue when product ships to the customer.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, Net	3 Months Ended
	Dec. 31, 2016
Goodwill and Other Intangible Assets, Net
Goodwill and Other Intangible Assets, Net	Note 8. 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 is measured by a comparison of the carrying amount of the asset to the discounted 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 a trademark exceeds its 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 relevant reporting unit, which is compared to its carrying value. No impairment has been recognized as of December 31, 2016. During the first quarter of fiscal 2017, there were no changes in the carrying amount of goodwill. Amortization of customer relationships, patents, non-competes and other intangibles was $126 and $123 for the three-month periods ended December 31, 2015 and 2016, respectively. The following represents a summary of intangible assets at September 30, 2016 and December 31, 2016: Gross Accumulated Carrying September 30, 2016 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Gross Accumulated Carrying December 31, 2016 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Estimated future Aggregate Amortization Expense: Year Ended September 30, 2017 2018 2019 2020 2021 Thereafter

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Dec. 31, 2016
Net Income (Loss) Per Share
Net Income (Loss) Per Share	Note 9. 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 stockholders 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. The following table sets forth the computation of basic and diluted earnings (losses) per share: Three Months Ended December 31, (in thousands, except share and per share data) 2015 2016 Numerator: Basic and Diluted Net income (loss) $ $ Dividends paid Undistributed income (loss) Percentage allocated to common shares (a) % % Undistributed income (loss) allocated to common shares Dividends paid on common shares outstanding Net income (loss) 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 restricted stock shares excluded as their effect would be anti-dilutive Number of performance share awards excluded as their effect would be anti-dilutive — (a) Percentage allocated to common shares - Weighted average Common shares outstanding Unvested participating shares —

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2016
Stock-Based Compensation
Stock-Based Compensation	Note 10. Stock-Based Compensation Restricted Stock On February 23, 2009, the Company adopted a restricted stock plan that reserved 400,000 shares of common stock for issuance. Additionally, on March 1, 2016, the Company adopted the 2016 Incentive Compensation Plan which provides for grants of restricted stock, restricted stock units and performance shares. Up to 275,000 shares of restricted stock, restricted stock units and performance shares may be granted in the aggregate under this plan. Coinciding with the adoption of the 2016 Incentive Compensation Plan, the Company is no longer granting awards from the 2009 restricted stock plan. Grants of restricted stock are comprised 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 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 22, 2016, the Company granted 37,275 shares of time-based 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 if the recipient is still an employee of the Company on such date. 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 was $40.86 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 and the 2016 Incentive Compensation Plan with respect to restricted stock for the three months ended December 31 2016: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2016 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at December 31, 2016 $ Expected to vest $ Compensation expense related to restricted stock for the three months ended December 31, 2015 and 2016 was $451 and $416, respectively. The remaining unrecognized compensation expense related to restricted stock at December 31, 2016 was $2,691, to be recognized over a weighted average period of 0.84 years. During the first quarter of fiscal 2017, the Company repurchased 6,017 shares of stock from employees at an average purchase price of $44.15 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Performance Shares On November 22, 2016, the Company granted a target of 19,000 performance share awards to certain key employees. The number of performance shares that will ultimately be earned, as well as the number of shares that will be distributed in settling those earned performance shares, if any, will not be determined until the end of the performance period. Performance shares earned will depend on the calculated total shareholder return of the Company at the end of the three-year period ending September 30, 2019, as compared to the total shareholder return of the Company’s peer group, as defined by the Compensation Committee. Compensation expense related to the performance shares for the three months ended December 31, 2015 and 2016 was $0 and $23, respectively. The remaining unrecognized compensation expense related to performance shares at December 31, 2016 was $775, to be recognized over a weighted average period of 2.75 years. Stock Options The Company has two stock option plans and the 2016 Incentive Compensation Plan that authorize the granting of non-qualified stock options to certain key employees and non-employee directors for the purchase of a maximum of 1,925,000 shares of the Company’s common stock. The first 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. Coinciding with the adoption of the 2016 Incentive Compensation Plan, the Company is no longer granting awards from these plans. On March 1, 2016, the Company adopted the 2016 Incentive Compensation Plan which provides for grants of up to 425,000 stock options and stock appreciation rights. 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 is 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, 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 dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant. The following assumptions were used for grants in the first quarter of fiscal 2017: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 22, 2016 $ % % % years On November 22, 2016, the Company granted 47,925 options at an exercise price of $40.86, the fair market value of the Company’s common stock on the day of the grant. During the first quarter of fiscal 2017, no options were exercised. The stock-based employee compensation expense for stock options for the three months ended December 31, 2015 and 2016 was $133 and $120, respectively. The remaining unrecognized compensation expense at December 31, 2016 was $1,141 to be recognized over a weighted average vesting period of 1.88 years. The following table summarizes the activity under the stock option plans for the three months ended December 31, 2016 and provides information regarding outstanding stock options: Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2016 $ Granted $ Exercised — $ Canceled $ Outstanding at December 31, 2016 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at December 31, 2016 $ $ yrs. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting. The objective of this update was to simplify the accounting for share-based payment transactions, including the income tax consequences of awards as either equity or liabilities, and classification on the statement of cash flows. As permitted, the Company early adopted this standard prospectively for the fiscal year beginning October 1, 2016. Prior periods were not retrospectively adjusted.

Dividend

Dividend	3 Months Ended
	Dec. 31, 2016
Dividend
Dividend	Note 11. Dividend In the first quarter of fiscal 2017, the Company declared and paid a quarterly cash dividend. The dividend of $0.22 per outstanding share of the Company’s common stock was paid December 15, 2016 to stockholders of record at the close of business on December 1, 2016. The dividend cash pay-out was $2,752 for the quarter based on the number of shares outstanding. On February 2, 2017, the Company announced that the Board of Directors declared a regular quarterly cash dividend of $0.22 per outstanding share of the Company’s common stock. The dividend is payable March 15, 2017 to stockholders of record at the close of business on March 1, 2017.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2016
Fair Value Measurements
Fair Value Measurements	Note 12. 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. Money market funds included in cash and cash equivalents of $59,297 and $62,961 as of September 30, 2016 and December 31, 2016, respectively, are considered Level 1.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss) by Component	3 Months Ended
	Dec. 31, 2016
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Changes in Accumulated Other Comprehensive Income (Loss) by Component	Note 13. 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, post-retirement and foreign currency translation adjustments, primarily caused by the strengthening of the US dollar against the British pound sterling, net of tax when applicable. Accumulated Other Comprehensive Income (Loss) Three Months Ended December 31, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2015 $ $ $ $ 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 income (loss) Accumulated other comprehensive loss as of December 31, 2015 $ $ $ $ Three Months Ended December 31, 2016 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive loss as of September 30, 2016 $ $ $ $ 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 income (loss) Accumulated other comprehensive loss as of December 31, 2016 $ $ $ $ (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

Long-term Obligations

Long-term Obligations	3 Months Ended
	Dec. 31, 2016
Long-term Obligations
Long-term Obligations	Note 14. Long-term Obligations 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. The Company entered into a twenty-year “Build-to-suit” lease for a building that will house the assets and operations of the service center located in LaPorte, Indiana that is being relocated from Lebanon, Indiana (See Note 16). During the first quarter of fiscal 2017, the Company took occupancy of the building. The Company retained substantially all of the construction risk and was deemed to be the owner of the facility for accounting purposes, even though it is not the legal owner. Construction costs incurred relative to the buildout of the facility were approximately $4,100 and are included in property, plant and equipment, net on the Consolidated Balance Sheet and are depreciated over the 20-year lease term. The Company accounts for the related build-to-suit liability as a financing obligation. As of December 31, 2016, future minimum lease rental payments during each fiscal year applicable to the lease obligations were as follows. 2017 $ 2018 2019 2020 2021 Thereafter Total minimum lease payments Less amounts representing interest Present value of net minimum lease payments Less current obligation Total long-term lease obligation $ The lease obligations are included in long-term obligations (less current portion) on the Consolidated Balance Sheet. September 30, December 31, 2016 2016 Capital lease rental payments $ $ Finance lease rental payments Environmental post-closure monitoring and maintenance activities Less amounts due within one year Long-term obligations (less current portion) $ $

Restricted Cash

Restricted Cash	3 Months Ended
	Dec. 31, 2016
Restricted Cash
Restricted Cash	Note 15. Restricted Cash During fiscal 2016, the Company received advance payments of $16,069 related to special projects. Of this amount, the Company was restricted from having access to $9,200 until such time as the Company delivers product to the customer. As the Company continues to fulfill the order, the restricted cash becomes unrestricted on a pro-rata basis based upon the percentage fulfillment of the order. The Company had $1,923 of cash that remained restricted as of December 31, 2016.

Expansion of LaPorte, Indiana O

Expansion of LaPorte, Indiana Operations	3 Months Ended
	Dec. 31, 2016
Expansion of LaPorte, Indiana Operations
Expansion of LaPorte, Indiana Operations	Note 16. Expansion of LaPorte, Indiana Operations The Company announced on May 2, 2016 its decision to expand and streamline its distribution footprint by investing in new plant and equipment at its processing facility located in LaPorte, Indiana. In connection with the expansion, the Company plans to relocate its service center operations in Lebanon, Indiana to LaPorte. The project began in the first quarter of fiscal 2016 and is expected to be completed by the end of the first quarter of fiscal 2018. Costs associated with the project are estimated to consist of approximately $1,800 to $2,500 relating to equipment relocation and approximately $500 to $1,100 in other costs, including one-time termination benefits, relocation expenses and lease termination costs, for a total of approximately $2,300 to $3,600 in total costs relating to the move. Approximately $340 of these costs were expensed in fiscal 2016, and the remainder will be recorded as incurred over the project period.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2016
Basis of Presentation
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2016
Inventories
Summary of major classes of inventories	September 30, December 31, 2016 2016 Raw Materials $ $ Work-in-process Finished Goods Other $ $

Pension and Post-retirement B25

Pension and Post-retirement Benefits (Tables)	3 Months Ended
	Dec. 31, 2016
Pension and Post-retirement Benefits
Schedule of components of net periodic pension and postretirement benefit cost	Three Months Ended December 31, Pension Benefits Post-retirement Benefits 2015 2016 2015 2016 Service cost $ $ $ $ Interest cost Expected return — — Amortizations Net periodic benefit cost $ $ $ $

Legal, Environmental, and Oth26

Legal, Environmental, and Other Contingencies (Tables)	3 Months Ended
	Dec. 31, 2016
Legal, Environmental, and Other Contingencies
Schedule of expected maturities of post-closure monitoring and maintenance activities (discounted)	2017 $ — 2018 2019 2020 2021 2022 and thereafter $

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets, Net (Tables)	3 Months Ended
	Dec. 31, 2016
Goodwill and Other Intangible Assets, Net
Summary of intangible assets	Gross Accumulated Carrying September 30, 2016 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Gross Accumulated Carrying December 31, 2016 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $
Schedule of estimated future aggregate amortization expense	Estimated future Aggregate Amortization Expense: Year Ended September 30, 2017 2018 2019 2020 2021 Thereafter

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Dec. 31, 2016
Net Income (Loss) Per Share
Schedule of basic and diluted net earnings (losses) per share	Three Months Ended December 31, (in thousands, except share and per share data) 2015 2016 Numerator: Basic and Diluted Net income (loss) $ $ Dividends paid Undistributed income (loss) Percentage allocated to common shares (a) % % Undistributed income (loss) allocated to common shares Dividends paid on common shares outstanding Net income (loss) 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 restricted stock shares excluded as their effect would be anti-dilutive Number of performance share awards excluded as their effect would be anti-dilutive — (a) Percentage allocated to common shares - Weighted average Common shares outstanding Unvested participating shares —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2016
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, 2016 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at December 31, 2016 $ 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 22, 2016 $ % % % 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, 2016 $ Granted $ Exercised — $ Canceled $ Outstanding at December 31, 2016 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at December 31, 2016 $ $ yrs.

Changes in Accumulated Other 30

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables)	3 Months Ended
	Dec. 31, 2016
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Schedule of accumulated other comprehensive income (loss)	Three Months Ended December 31, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2015 $ $ $ $ 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 income (loss) Accumulated other comprehensive loss as of December 31, 2015 $ $ $ $ Three Months Ended December 31, 2016 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive loss as of September 30, 2016 $ $ $ $ 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 income (loss) Accumulated other comprehensive loss as of December 31, 2016 $ $ $ $ (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

Long-term Obligations (Tables)

Long-term Obligations (Tables)	3 Months Ended
	Dec. 31, 2016
Long-term Obligations
Schedule of future minimum lease rental payments applicable to the capital lease	2017 $ 2018 2019 2020 2021 Thereafter Total minimum lease payments Less amounts representing interest Present value of net minimum lease payments Less current obligation Total long-term lease obligation $
Schedule of long-term obligations	September 30, December 31, 2016 2016 Capital lease rental payments $ $ Finance lease rental payments Environmental post-closure monitoring and maintenance activities Less amounts due within one year Long-term obligations (less current portion) $ $

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Inventories
Raw Materials	$ 19,382	$ 21,587
Work-in-process	127,627	118,822
Finished Goods	93,171	94,772
Other	1,410	1,377
Total	$ 241,590	$ 236,558

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes
Statutory federal tax rate (as a percent)	35.00%	35.00%
Effective tax rate (as a percent)	23.60%	71.00%
Unfavorable impact of a change in federal tax law on income tax expense		$ 375

Pension and Post-retirement B34

Pension and Post-retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Pension Plans
Pension Plan and Retirement Benefits
Service cost	$ 1,571	$ 1,020
Interest cost	2,549	2,848
Expected return	(3,472)	(3,376)
Amortizations	2,981	2,381
Net periodic cost	3,629	2,873
U.S. pension plan
Pension Plan and Retirement Benefits
Contribution to plan	1,500
Expected future employer contribution	4,500
U.K. pension plan
Pension Plan and Retirement Benefits
Contribution to plan	185
Expected future employer contribution	594
Postretirement Health Care Benefits
Pension Plan and Retirement Benefits
Service cost	87	58
Interest cost	1,073	1,149
Amortizations	1,070	706
Net periodic cost	2,230	$ 1,913
Contribution to plan	1,322
Expected future employer contribution	$ 3,678

Legal, Environmental, and Oth35

Legal, Environmental, and Other Contingencies - Overview (Details) - Pending litigation	Dec. 31, 2016action
Welding rod-related injuries
Legal, Environmental and Other Contingencies
Number of actions in which the entity is involved	2
Asbestos in facilities
Legal, Environmental and Other Contingencies
Number of actions in which the entity is involved	2

Legal, Environmental, and Oth36

Legal, Environmental, and Other Contingencies - Schedule of Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Environmental post-closure monitoring and maintenance activities	$ 683	$ 683
Long Term Obligations
Maturities of long-term obligations (discounted)
2,018	78
2,019	59
2,020	50
2,021	50
2022 and thereafter	371
Long-term obligations (less current portion)	$ 608

Deferred Revenue (Details)

Deferred Revenue (Details) $ in Thousands, lb in Millions	Nov. 17, 2006USD ($)	Dec. 31, 2016USD ($)lb	Sep. 30, 2016USD ($)
Deferred revenue
Up-front/advance payment received			$ 16,069
Recorded as revenue upon shipment			$ 15,661
Revenue to be recorded when product ships		$ 408
Conversion Services Agreement
Deferred revenue
Term of agreement to provide conversion services	20 years
Up-front/advance payment received	$ 50,000
Additional volume of titanium metal to be converted on exercise of option by service receiver (in pounds) | lb		10
Liquidated damages		$ 25,000
Revenue recognition period		20 years
Conversion Services Agreement | Maximum
Deferred revenue
Annual volume of titanium metal to be converted (in pounds) | lb		10
Amount of loan offered by counterparty		$ 12,000

Goodwill and Other Intangible38

Goodwill and Other Intangible Assets, Net - Overview (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)
Goodwill and Other Intangible Assets, Net
Goodwill impairment loss	$ 0
Change to goodwill	$ 0
Patents | Minimum
Goodwill and Other Intangible Assets, Net
Useful life	2 years
Patents | Maximum
Goodwill and Other Intangible Assets, Net
Useful life	16 years
Customer relationships | Minimum
Goodwill and Other Intangible Assets, Net
Useful life	2 years
Customer relationships | Maximum
Goodwill and Other Intangible Assets, Net
Useful life	16 years

Goodwill and Other Intangible39

Goodwill and Other Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Intangible Assets
Amortization of customer relationships, patents, non-competes and other intangibles	$ 123	$ 126
Total intangible assets, Gross Amount	10,221		$ 10,221
Finite-lived intangible assets, Accumulated Amortization	(3,782)		(3,659)
Carrying Amount	6,439		6,562
Patents
Intangible Assets
Finite-Lived Intangible Assets, Gross	4,030		4,030
Finite-lived intangible assets, Accumulated Amortization	(3,440)		(3,370)
Finite-lived intangible assets, Carrying Amount	590		660
Customer relationships
Intangible Assets
Finite-Lived Intangible Assets, Gross	2,100		2,100
Finite-lived intangible assets, Accumulated Amortization	(314)		(275)
Finite-lived intangible assets, Carrying Amount	1,786		1,825
Other Intangible Assets
Intangible Assets
Finite-Lived Intangible Assets, Gross	291		291
Finite-lived intangible assets, Accumulated Amortization	(28)		(14)
Finite-lived intangible assets, Carrying Amount	263		277
Trademarks
Intangible Assets
Indefinite-lived intangible assets	$ 3,800		$ 3,800

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets, Net - Amortization Expense (Details) $ in Thousands	Dec. 31, 2016USD ($)
Estimate of Aggregate Amortization Expense:
2017 (remainder of fiscal year)	$ 366
2,018	485
2,019	304
2,020	199
2,021	180
Thereafter	$ 1,105

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Numerator: Basic and Diluted
Net income - Basic	$ (672)	$ 228
Net income - Diluted	(672)	228
Dividends paid	(2,752)	(2,746)
Undistributed income (loss) - Basic	(3,424)	(2,518)
Undistributed income (loss) - Diluted	$ (3,424)	$ (2,518)
Percentage allocated to common shares	100.00%	99.00%
Undistributed income (loss) allocated to common shares - Basic	$ (3,424)	$ (2,493)
Undistributed income (loss) allocated to common shares - Diluted	(3,424)	(2,493)
Dividends paid on common shares outstanding	2,724	2,719
Net income (loss) available to common shares - Basic	(700)	226
Net income (loss) available to common shares - Diluted	$ (700)	$ 226
Denominator: Basic and Diluted
Weighted average common shares outstanding - Basic	12,382,207	12,345,564
Adjustment for dilutive potential common shares		7,520
Weighted average shares - Diluted	12,382,207	12,353,084
Basic net income per share (in dollars per share)	$ (0.06)	$ 0.02
Diluted net income per share (in dollars per share)	$ (0.06)	$ 0.02

Net Income (Loss) Per Share - A

Net Income (Loss) Per Share - Anit-dilutive Securities (Details) - shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee and Directors Stock Options
Antidilutive securities
Number of shares excluded as their effect would be anti-dilutive	345,167	374,502
Restricted Stock
Antidilutive securities
Number of shares excluded as their effect would be anti-dilutive	109,785	121,410
Performance Shares
Antidilutive securities
Number of shares excluded as their effect would be anti-dilutive	19,000

Net Income (Loss) Per Share - W

Net Income (Loss) Per Share - Weighted Average Common Shares (Details) - shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Percentage allocated to common shares - weighted average
Common shares outstanding	12,382,207	12,345,564
Unvested participating shares		121,410
Total	12,382,207	12,466,974

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 22, 2016	Dec. 31, 2016	Dec. 31, 2015	Mar. 01, 2016	Feb. 23, 2009
Restricted Stock
Restricted stock plan activity, number of shares
Unvested at beginning of the period (in shares)		121,010
Granted (in shares)		37,275
Forfeited / Canceled (in shares)		(12,100)
Vested (in shares)		(36,400)
Unvested at end of the period (in shares)		109,785
Expected to vest (in shares)		95,535
Restricted stock plan activity, Weighted Average Fair Value at Grant Date
Unvested at beginning of the period (in dollars per share)		$ 44.51
Granted (in dollars per share)		40.86
Forfeited / Canceled (in dollars per share)		52.78
Vested (in dollars per share)		47.55
Unvested at end of the period (in dollars per share)		41.36
Expected to vest (in dollars per share)		$ 40.55
Restricted stock plan activity, other disclosures
Compensation expense		$ 416	$ 451
Remaining unrecognized compensation expense		$ 2,691
Weighted average period for recognition		10 months 2 days
Restricted Stock | Employees
Restricted stock plan activity, other disclosures
Repurchase of stock from employees (in shares)		6,017
Average purchase price (in dollars per share)		$ 44.15
Restricted Stock | Key employees and non-employee directors
Restricted stock plan activity, number of shares
Granted (in shares)	37,275
Restricted stock plan activity, Weighted Average Fair Value at Grant Date
Granted (in dollars per share)	$ 40.86
Restricted Stock | 2009 Restricted Stock Plan
Stock-Based Compensation
Number of shares authorized under the plan					400,000
Restricted Stock, Restricted Stock Units and Performance Shares
Stock-Based Compensation
Number of shares authorized under the plan				275,000
Time-based vesting | Restricted Stock | Employees
Stock-Based Compensation
Award vesting period	3 years
Time-based vesting | Restricted Stock | Non-employee director | Maximum
Stock-Based Compensation
Award vesting period	1 year

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance Shares and Stock Option Plans (Details) $ / shares in Units, $ in Thousands	Nov. 22, 2016$ / sharesshares	Dec. 31, 2016USD ($)plan$ / sharesshares	Dec. 31, 2015USD ($)	Mar. 01, 2016shares
Employee and Directors Stock Options
Information relating to stock options
Number of plans | plan		2
Number of shares authorized		1,925,000
Expiration period		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	$ 11.50
Dividend Yield (as a percent)	2.15%
Risk-Free Interest Rate (as a percent)	1.79%
Expected Volatility (as a percent)	37.00%
Expected Life	5 years
Stock-based employee compensation expense | $		$ 120	$ 133
Remaining unrecognized compensation expense | $		$ 1,141
Weighted average period for recognition		1 year 10 months 17 days
Activity under stock option plans, number of shares
Outstanding at beginning of the period (in shares)		428,401
Granted (in shares)	47,925	47,925
Exercised (in shares)		0
Canceled (in shares)		(3,000)
Outstanding at end of the period (in shares)		473,326
Vested or expected to vest (in shares)		439,469
Exercisable at end of period (in shares)		345,167
Outstanding at end of period, Aggregate Intrinsic Value | $		$ 990
Vested or expected to vest, Aggregate Intrinsic Value | $		930
Exercisable at end of the period, Aggregate Intrinsic Value | $		$ 609
Weighted Average Exercise Prices
Outstanding at beginning of the period (in dollars per share) | $ / shares		$ 48.47
Granted (in dollars per share) | $ / shares	$ 40.86	40.86
Exercised (in dollars per share) | $ / shares		0
Canceled (in dollars per share) | $ / shares		54
Outstanding at end of period (in dollars per share) | $ / shares		47.67
Vested or expected to vest (in dollars per share) | $ / shares		47.89
Exercisable at end of the period (in dollars per share) | $ / shares		$ 50.21
Outstanding at end of the period, Weighted Average Remaining Contractual Life		5 years 8 months 23 days
Vested or expected to vest, Weighted Average Remaining Contractual Life		4 years 7 months 13 days
Exercisable at end of the period, Weighted Average Remaining Contractual Life		4 years 5 months 27 days
Employee and Directors Stock Options | Stock Option Plan Adopted in August 2004
Information relating to stock options
Number of shares authorized		1,000,000
Employee and Directors Stock Options | Stock Option Plan Adopted in January 2007
Information relating to stock options
Number of shares authorized		500,000
Stock Options and Stock Appreciation Rights
Information relating to stock options
Number of shares authorized				425,000
Performance Shares | Certain Employees
Information relating to stock options
Number of shares authorized	19,000
Award vesting period	3 years
Fair value assumptions
Stock-based employee compensation expense | $		$ 23	$ 0
Remaining unrecognized compensation expense | $		$ 775
Weighted average period for recognition		2 years 9 months

Dividend (Details)

Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 02, 2017	Dec. 31, 2016	Dec. 31, 2015
Common stock dividend
Dividend declared (in dollars per share)	$ 0.22	$ 0.22	$ 0.22
Dividend paid (in dollars per share)		$ 0.22
Dividend paid (in dollars)		$ 2,752	$ 2,746

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Fair value measurements on recurring basis | Level 1
Assets:
Cash and cash equivalents	$ 62,961	$ 59,297

Changes in Accumulated Other 48

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accumulated other comprehensive income (loss)
Balance	$ 311,299
Other comprehensive income (loss)	(446)	$ 288
Balance	307,721
AOCI Attributable to Parent
Accumulated other comprehensive income (loss)
Balance	(114,523)	(87,953)
Other comprehensive loss before reclassifications	(3,026)	(1,688)
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit	(1,502)	(1,150)
Other comprehensive income (loss)	(446)	288
Balance	(114,969)	(87,665)
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Balance	(74,742)	(62,985)
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit	(1,108)	(890)
Other comprehensive income (loss)	1,904	1,530
Balance	(72,838)	(61,455)
Accumulated Defined Benefit Plans Adjustment | Postretirement Health Care Benefits
Accumulated other comprehensive income (loss)
Balance	(29,585)	(21,773)
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit	(394)	(260)
Other comprehensive income (loss)	676	446
Balance	(28,909)	(21,327)
Amortization of Pension and Postretirement Plan items
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	202	202
Amortization of Pension and Postretirement Plan items | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	202	202
Actuarial losses
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	3,880	2,924
Actuarial losses | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	2,810	2,218
Actuarial losses | Postretirement Health Care Benefits
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	1,070	706
Accumulated Translation Adjustment
Accumulated other comprehensive income (loss)
Balance	(10,196)	(3,195)
Other comprehensive loss before reclassifications	(3,026)	(1,688)
Other comprehensive income (loss)	(3,026)	(1,688)
Balance	$ (13,222)	$ (4,883)

Long-term Obligations (Details)

Long-term Obligations (Details) - USD ($) $ in Thousands	Jan. 01, 2015	Dec. 31, 2016	Sep. 30, 2016
Long-term Obligations
Lease term	20 years	20 years
Construction costs incurred on facility buildout		$ 4,100
Future minimum lease rental payments
2017 (remainder of fiscal year)		734
2,018		982
2,019		989
2,020		994
2,021		1,001
Thereafter		14,609
Total minimum lease payments		19,309
Less amounts representing interest		(10,970)
Present value of net minimum lease payments		8,339
Less current obligation		(925)
Total long term lease obligation		7,414
Long-term obligations (less current portion)
Capital lease rental payments		4,317	$ 4,331
Finance lease rental payments		4,022	3,700
Environmental post-closure monitoring and maintenance activities		683	683
Less amounts due within one year		(1,000)	(458)
Long-term obligations (less current portion)		$ 8,022	$ 8,256

Restricted Cash (Details)

Restricted Cash (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2016
Restricted cash
Advance payments received	$ 16,069
Restricted cash	5,446	$ 1,923
Special projects
Restricted cash
Advance payments received	16,069
Restricted cash	$ 9,200

Expansion of LaPorte, Indiana51

Expansion of LaPorte, Indiana Operations (Details) - Expansion of LaPorte, Indiana Operations $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)
Costs associated with project
Costs expensed in current period	$ 340
Minimum
Costs associated with project
Estimated costs	2,300
Minimum | Equipment relocation
Costs associated with project
Estimated costs	1,800
Minimum | Other costs
Costs associated with project
Estimated costs	500
Maximum
Costs associated with project
Estimated costs	3,600
Maximum | Equipment relocation
Costs associated with project
Estimated costs	2,500
Maximum | Other costs
Costs associated with project
Estimated costs	$ 1,100