Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 15, 2018 | Mar. 31, 2018 | |
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, 2018 | ||
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 | $ 296,922,788 | ||
Entity Common Stock, Shares Outstanding | 12,504,478 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 9,802 | $ 46,328 |
Accounts receivable, less allowance for doubtful accounts of $620 and $1,130 at September 30, 2017 and September 30, 2018, respectively | 73,437 | 61,602 |
Inventories | 273,045 | 244,457 |
Income taxes receivable | 7,240 | |
Other current assets | 2,825 | 2,781 |
Total current assets | 366,349 | 355,168 |
Property, plant and equipment, net | 179,400 | 192,556 |
Deferred income taxes | 25,454 | 58,133 |
Other assets | 7,163 | 5,107 |
Goodwill | 4,789 | 4,789 |
Other intangible assets, net | 5,539 | 6,066 |
Total assets | 588,694 | 621,819 |
Current liabilities: | ||
Accounts payable | 37,140 | 32,802 |
Accrued expenses | 17,463 | 14,108 |
Income taxes payable | 195 | |
Accrued pension and postretirement benefits | 5,095 | 5,095 |
Deferred revenue—current portion | 2,500 | 2,500 |
Total current liabilities | 62,198 | 54,700 |
Long-term obligations (less current portion) (Note 18) | 8,443 | 7,896 |
Deferred revenue (less current portion) | 17,829 | 20,329 |
Deferred income taxes | 1,919 | 1,741 |
Accrued pension benefits (less current portion) | 62,072 | 90,957 |
Accrued postretirement benefits (less current portion) | 103,013 | 112,424 |
Total liabilities | 255,474 | 288,047 |
Commitments and contingencies (Notes 9 and 10) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (40,000,000 shares authorized, 12,544,933 and 12,546,591 shares issued and 12,509,757 and 12,504,478 shares outstanding at September 30, 2017 and September 30, 2018, respectively) | 13 | 13 |
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0 shares issued and outstanding) | ||
Additional paid-in capital | 251,053 | 248,733 |
Accumulated earnings | 126,588 | 159,366 |
Treasury stock, 35,176 shares at September 30, 2017 and 42,113 shares at September 30, 2018 | (1,869) | (1,646) |
Accumulated other comprehensive loss | (42,565) | (72,694) |
Total stockholders' equity | 333,220 | 333,772 |
Total liabilities and stockholders' equity | $ 588,694 | $ 621,819 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,130 | $ 620 |
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) | 12,546,591 | 12,544,933 |
Common stock, shares outstanding (in shares) | 12,504,478 | 12,509,757 |
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) | 42,113 | 35,176 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net revenues | $ 435,326 | $ 395,209 | $ 406,359 |
Cost of sales | 387,648 | 365,499 | 358,779 |
Gross profit | 47,678 | 29,710 | 47,580 |
Selling, general and administrative expense | 47,111 | 42,393 | 39,684 |
Research and technical expense | 3,785 | 3,855 | 3,698 |
Operating income (loss) | (3,218) | (16,538) | 4,198 |
Interest income | (82) | (186) | (108) |
Interest expense | 918 | 865 | 555 |
Income (loss) before income taxes | (4,054) | (17,217) | 3,751 |
Provision for (benefit from) income taxes | 17,697 | (7,027) | (1,269) |
Net income (loss) | $ (21,751) | $ (10,190) | $ 5,020 |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ (1.75) | $ (0.83) | $ 0.40 |
Diluted (in dollars per share) | $ (1.75) | $ (0.83) | $ 0.40 |
Weighted Average Common Shares Outstanding | |||
Weighted average common shares outstanding - Basic | 12,419,564 | 12,397,099 | 12,361,483 |
Weighted average common shares outstanding - Diluted | 12,419,564 | 12,397,099 | 12,366,197 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (21,751) | $ (10,190) | $ 5,020 |
Other comprehensive income (loss), net of tax: | |||
Pension and postretirement | 32,029 | 39,624 | (19,569) |
Foreign currency translation adjustment | (1,900) | 2,205 | (7,001) |
Other comprehensive income (loss) | 30,129 | 41,829 | (26,570) |
Comprehensive income (loss) | $ 8,378 | $ 31,639 | $ (21,550) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
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 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 5,020 | 5,020 | ||||
Dividends paid and accrued ($0.88, $0.88 and $0.88 per share for the year ended September 30, 2016, 2017 and 2018, respectively) | (10,988) | (10,988) | ||||
Other comprehensive income (loss) | (26,570) | (26,570) | ||||
Exercise of stock options | 310 | 310 | ||||
Exercise of stock options (in shares) | 10,000 | |||||
Tax impact of forfeited vested options | (114) | (114) | ||||
Tax impact of dividends on restricted stock | (39) | (39) | ||||
Issue restricted stock (less forfeitures) (in shares) | 42,810 | |||||
Purchase of treasury stock | (289) | (289) | ||||
Purchase of treasury stock (in shares) | (7,661) | |||||
Stock compensation | 1,980 | 1,980 | ||||
Balance at Sep. 30, 2016 | $ 12 | 246,625 | 180,565 | (1,380) | (114,523) | 311,299 |
Balance (in shares) at Sep. 30, 2016 | 12,491,149 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (10,190) | (10,190) | ||||
Dividends paid and accrued ($0.88, $0.88 and $0.88 per share for the year ended September 30, 2016, 2017 and 2018, respectively) | (11,009) | (11,009) | ||||
Other comprehensive income (loss) | 41,829 | 41,829 | ||||
Issue restricted stock (less forfeitures) | $ 1 | (1) | ||||
Issue restricted stock (less forfeitures) (in shares) | 24,625 | |||||
Purchase of treasury stock | (266) | (266) | ||||
Purchase of treasury stock (in shares) | (6,017) | |||||
Stock compensation | 2,109 | 2,109 | ||||
Balance at Sep. 30, 2017 | $ 13 | 248,733 | 159,366 | (1,646) | (72,694) | 333,772 |
Balance (in shares) at Sep. 30, 2017 | 12,509,757 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (21,751) | (21,751) | ||||
Dividends paid and accrued ($0.88, $0.88 and $0.88 per share for the year ended September 30, 2016, 2017 and 2018, respectively) | (11,027) | (11,027) | ||||
Other comprehensive income (loss) | 30,129 | 30,129 | ||||
Issue restricted stock (less forfeitures) (in shares) | 1,658 | |||||
Purchase of treasury stock | (223) | (223) | ||||
Purchase of treasury stock (in shares) | (6,937) | |||||
Stock compensation | 2,320 | 2,320 | ||||
Balance at Sep. 30, 2018 | $ 13 | $ 251,053 | $ 126,588 | $ (1,869) | $ (42,565) | $ 333,220 |
Balance (in shares) at Sep. 30, 2018 | 12,504,478 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||
Dividend paid (in dollars per share) | $ 0.88 | $ 0.88 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (21,751) | $ (10,190) | $ 5,020 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 22,627 | 21,601 | 20,533 |
Amortization | 527 | 496 | 503 |
Pension and post-retirement expense - U.S. and U.K. | 14,110 | 23,435 | 19,048 |
Change in long-term obligations | (7) | (15) | 73 |
Stock compensation expense | 2,320 | 2,109 | 1,980 |
Excess tax expense from restricted stock vesting | 153 | ||
Deferred revenue | (2,500) | (7,488) | 2,488 |
Deferred income taxes | 23,115 | (10,072) | 1,428 |
Loss on disposition of property | 250 | 612 | 438 |
Change in assets and liabilities: | |||
Restricted cash | 5,446 | (5,446) | |
Accounts receivable | (12,590) | 755 | 10,965 |
Inventories | (29,905) | (6,982) | 6,611 |
Other assets | (2,120) | 287 | 237 |
Accounts payable and accrued expenses | 10,220 | 3,476 | (1,782) |
Income taxes | (7,406) | 709 | 3,773 |
Accrued pension and postretirement benefits | (10,627) | (11,052) | (12,035) |
Net cash provided by (used in) operating activities | (13,737) | 13,127 | 53,987 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (11,085) | (15,006) | (31,633) |
Net cash provided by (used in) investing activities | (11,085) | (15,006) | (31,633) |
Cash flows from financing activities: | |||
Revolving credit facility borrowings | 4,200 | ||
Revolving credit facility repayments | (4,200) | ||
Dividends paid | (11,013) | (11,009) | (10,988) |
Proceeds from exercise of stock options | 310 | ||
Payment for purchase of treasury stock | (223) | (266) | (289) |
Excess tax expense from restricted stock vesting | (153) | ||
Payment for debt issuance cost | (291) | ||
Payment on long-term obligation | (258) | (166) | (91) |
Net cash provided by (used in) financing activities | (11,494) | (11,441) | (11,502) |
Effect of exchange rates on cash | (210) | 351 | (600) |
Increase (decrease) in cash and cash equivalents: | (36,526) | (12,969) | 10,252 |
Cash and cash equivalents: | |||
Beginning of period | 46,328 | 59,297 | 49,045 |
End of period | 9,802 | 46,328 | 59,297 |
Supplemental disclosures of cash flow information: | |||
Interest (net of capitalized interest) | 860 | 807 | 486 |
Income taxes paid (refunded), net | 1,965 | 2,335 | (6,471) |
Capital expenditures incurred, but not yet paid | 703 | 1,910 | $ 1,869 |
Dividends declared but not yet paid | $ 14 | ||
Lease obligation incurred | $ 4,100 |
Background and Organization
Background and Organization | 12 Months Ended |
Sep. 30, 2018 | |
Background and Organization | |
Background and Organization | Note 1. Background and Organization Description of Business Haynes International, Inc. and its subsidiaries (the “Company”, “Haynes”, “we”, “our” or “us”) develops, manufactures, markets and distributes technologically advanced, high-performance alloys primarily for use in the aerospace, industrial 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, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies A. 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 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; and Tokyo, Japan. B. 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. 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. D. 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 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. 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 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 by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment loss in the event that the carrying amount is greater than the fair value. Any goodwill impairment loss recognized would not exceed the total carrying amount of goodwill allocated to that reporting unit. No impairment was recognized in the years ended September 30, 2016, 2017 or 2018 because the fair value exceeded the carrying values. During fiscal 2018, there were no changes in the carrying amount of goodwill. Amortization of the patents, customer relationships and other intangibles was $503, $496 and $527 for the years ended September 30, 2016, 2017 and 2018, respectively. The following represents a summary of intangible assets at September 30, 2017 and 2018: Gross Accumulated Carrying September 30, 2017 Amount Amortization Amount Patents $ 4,030 $ (3,656) $ 374 Trademarks 3,800 — 3,800 Customer relationships 2,100 (426) 1,674 Other 291 (73) 218 $ 10,221 $ (4,155) $ 6,066 Gross Accumulated Carrying September 30, 2018 Amount Amortization Amount Patents $ 4,030 $ (3,977) $ 53 Trademarks 3,800 — 3,800 Customer relationships 2,100 (574) 1,526 Other 291 (131) 160 $ 10,221 $ (4,682) $ 5,539 Estimated future Aggregate Amortization Expense: Year Ended September 30, 2019 $ 255 2020 199 2021 179 2022 133 2023 129 Thereafter 844 G. 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: Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 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 the 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. No impairment was recognized during the years ended September 30, 2016, 2017 or 2018. H. 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. 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. 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. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in selling, general and administrative expense. Beginning in the third quarter of fiscal 2018, the Company entered into foreign currency forward contracts (See Note 19.). The purpose of these forward contracts is to reduce income statement volatility resulting from the transaction gains and losses. K. 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, 2016, 2017 and 2018 were $3,698, $3,855 and $3,785, respectively. L. 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 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 (See Note 6, Income Taxes). M. As described in Note 11, the Company has incentive compensation plans that provide for the issuance of restricted stock, restricted stock units, performance shares, stock options and stock appreciation rights to key employees and non-employee directors. The Company recognizes compensation expense under the fair-value based method as a component of operating expenses. N. 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, 2017 and 2018, 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, 2018, 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 2016, 2017 and 2018, 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 amounted to $688 in fiscal 2018 and were within management’s expectations. 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. 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. 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) 2016 2017 2018 Numerator: Basic and Diluted Net income (loss) $ 5,020 $ (10,190) $ (21,751) Dividends (10,988) (11,009) (11,027) Undistributed income (loss) (5,968) (21,199) (32,778) Percentage allocated to common shares (a) 99.0 % 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (5,910) (21,199) (32,778) Dividends paid on common shares outstanding 10,881 10,905 10,933 Net income (loss) available to common shares 4,971 (10,294) (21,845) Denominator: Basic and Diluted Weighted average common shares outstanding 12,361,483 12,397,099 12,419,564 Adjustment for dilutive potential common shares 4,714 — — Weighted average shares outstanding - Diluted 12,366,197 12,397,099 12,419,564 Basic net income (loss) per share $ 0.40 $ (0.83) $ (1.75) Diluted net income (loss) per share $ 0.40 $ (0.83) $ (1.75) Number of stock option shares excluded as their effect would be anti-dilutive 378,852 310,417 329,276 Number of restricted stock shares excluded as their effect would be anti-dilutive 121,285 107,854 91,008 (a) Percentage allocated to common shares - weighted average Common shares outstanding 12,361,483 12,397,099 12,419,564 Unvested participating shares 121,185 — — 12,482,668 12,397,099 12,419,564 Q. 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. This update provides a five-step analysis of transactions to determine when and how revenue is recognized, along with expanded disclosure requirements. An entity should 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. The Company will adopt this accounting standard update using the modified retrospective method, with the cumulative effect of initially applying this update, recognized in the first quarter of fiscal 2019. The Company has evaluated the impact of this standard on individual customer contracts and based on this evaluation determined that from time to time, the Company may have customer agreements that require revenue to be recognized over time due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. As of September 30, 2018, there were not any outstanding contracts that would require a cumulative adjustment to retained earnings under the modified retrospective method of implementation. Certain liabilities for estimated product returns will be re-classified to accrued expenses from a contra-asset within accounts receivable, less allowance for doubtful accounts. 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 Company adopted these changes in the first quarter of fiscal 2018, which did not result in a material impact to the Company’s consolidated financial statements. 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. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) . This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash and cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and is to be adjusted retrospectively. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) . This new guidance requires entities to (1) disaggregate the service cost component from the other components of net benefit cost and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The amendments in this ASU also only allow the service cost component to be eligible for capitalization. This new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The amendments are to be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company will adopt the standard on October 1, 2018. As a result of the retrospective change in presentation, the adoption of this guidance will result in the reclassification of cost of goods sold of $14,997 and $7,040, and selling, general and administrative expense of $1,806 and $1,198, for the fiscal years ended September 30, 2017 and 2018, respectively, to Nonoperating retirement benefit expense on the Consolidated Statements of Operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) . This new guidance removes and modifies disclosure requirements on fair value statements. This update is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, on its disclosures in the Notes to Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) . This new guidance removes and modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Some disclosure requirements that are removed include, among others, amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. This update is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2018 | |
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, 2017 2018 Raw Materials $ 18,731 $ 17,897 Work-in-process 130,019 147,921 Finished Goods 94,331 105,640 Other 1,376 1,587 $ 244,457 $ 273,045 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2018 | |
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, 2017 2018 Land and land improvements $ 9,345 $ 9,462 Buildings and improvements 44,705 45,327 Machinery and equipment 289,035 281,329 Construction in process 5,692 7,292 348,777 343,410 Less accumulated depreciation (156,221) (164,010) $ 192,556 $ 179,400 As of September 30, 2018, the Company has $200 of assets under a capital lease for equipment related to the service center operation in Shanghai, China and $7,483 of assets under capital or finance leases for two buildings at the LaPorte, Indiana service center. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Sep. 30, 2018 | |
Accrued Expenses | |
Accrued Expenses | Note 5. Accrued Expenses The following is a summary of the major classes of accrued expenses: September 30, 2017 2018 Employee compensation $ 7,791 $ 8,825 Taxes, other than income taxes 2,422 2,673 Employee termination liabilities — 1,562 Professional fees 746 1,225 Management incentive compensation — 1,104 Utilities 909 982 Capital lease obligation, current 926 147 Other 1,314 945 $ 14,108 $ 17,463 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Taxes | |
Income Taxes | Note 6. Income Taxes On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“the Act”), which made significant changes to U.S. federal income tax law including, among other things, lowering corporate income tax rates, permitting bonus depreciation that will allow for full expensing of qualified property and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. Beginning October 1, 2017 and continuing through September 30, 2018, the Company’s U.S. income was taxed at a 24.5% federal tax rate after which time the federal tax rate applicable to the Company was lowered to 21.0%. During fiscal 2018, deferred tax assets were revalued to the lower statutory rates of 21.0% which resulted in increased tax during fiscal 2018 of $16,633. An additional component of the Act, the transition tax applied on accumulated earnings and profits of controlled foreign corporations, resulted in increased tax expense of $2,170 during fiscal 2018. On December 22, 2017, the United States Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. As of September 30, 2018 the Company has completed its accounting for the income tax effects of the Act with the exception of the provisions related to Global Intangible Low Taxed Income (“GILTI”). Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Because whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on a number of different aspects of our estimated future results of global operations, we are not yet able to reasonably estimate the effect of this provision of the Tax Act. Therefore, we have not made any adjustments related to potential GILTI tax in our financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI. The components of income (loss) before provision for income taxes and the provision for income taxes are as follows: Year Ended September 30, 2016 2017 2018 Income (loss) before income taxes: U.S. $ (4,160) $ (25,090) $ (16,650) Foreign 7,911 7,873 12,596 Total $ 3,751 $ (17,217) $ (4,054) Provision for (benefit from) income taxes: Current: U.S. Federal $ (4,427) $ 933 $ (7,690) Foreign 1,368 1,652 2,404 State (141) 401 (137) Total (3,200) 2,986 (5,423) Deferred: U.S. Federal 4,582 (8,781) 25,141 Foreign (105) — — State (2,954) (1,427) (2,496) Valuation allowance 408 195 475 Total 1,931 (10,013) 23,120 Total provision for (benefit from) income taxes $ (1,269) $ (7,027) $ 17,697 The provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate as follows: Year Ended September 30, 2016 2017 2018 Statutory federal tax rate 35.00 % 35.00 % 24.53 % Tax provision for income taxes at the statutory rate $ 1,313 $ (6,026) $ (1,059) Foreign tax rate differentials (1,505) (1,103) (685) Provision for state taxes, net of federal taxes 778 (371) (45) U.S. tax on distributed and undistributed earnings of foreign subsidiaries 523 452 240 Manufacturer’s deduction (98) — (86) Tax credits (1,198) (409) (511) Transition tax — — 2,170 Federal and state tax rate change impact on deferred tax asset (1,819) 192 16,633 Net operating loss carryback — — 407 Change in valuation allowance 408 195 475 Other, net 329 43 158 Provision for income taxes at effective tax rate $ (1,269) $ (7,027) $ 17,697 Effective tax rate (33.8) % 40.8 % (436.5) % During fiscal 2016, the Company’s effective tax rate was negative relative to the statutory rate, primarily due to an increase in the value of the Company’s deferred tax assets driven by a higher state tax rate and research credits. Additionally, the Company earned a greater proportion of profitability in foreign jurisdictions. During fiscal 2017, the Company’s effective tax rate was higher than the statutory rate, primarily due to the Company incurring a pre-tax loss in the United States and pre-tax income in the United Kingdom which has a lower effective tax rate than the statutory rate. When incurring a pre-tax loss, the effective tax rate of the Company will be higher than the statutory rate if certain tax jurisdictions with lower tax rates incur pre-tax income as a partial offset to the pre-tax loss in the United States. During fiscal 2018, the Company’s effective tax rate was negative relative to the statutory rate primarily due to the tax reform act that resulted in significant impacts on the value of the deferred tax asset as well a one-time transition tax on income generated by foreign entities. The tax reform act lowered the statutory rate from 35% to 21%, however, the 2018 statutory rate is calculated to be 24.53% based on the fiscal year-end date of September 30, 2018. Deferred tax assets (liabilities) are comprised of the following: September 30, 2017 2018 Deferred tax assets: Pension and postretirement benefits $ 74,602 $ 38,343 TIMET Agreement 8,417 4,775 Inventories 2,080 2,091 Accrued compensation and benefits 2,107 1,387 Accrued expenses and other 5,277 2,977 Tax attributes 11,579 4,178 Valuation allowance (1,017) (1,661) Total deferred tax assets $ 103,045 $ 52,090 Deferred tax liabilities: Property, plant and equipment, net $ (45,155) $ (27,521) Intangible and other (1,498) (1,034) Total deferred tax liabilities $ (46,653) $ (28,555) Net deferred tax assets (liabilities) $ 56,392 $ 23,535 As of September 30, 2018, the Company had state tax net operating loss carryforwards of $18,477, tax credits of $3,113 and foreign net operating loss carryforwards of $2,236. These tax attributes begin to expire in 2026, 2020, and 2020, respectively. The Company has recorded a valuation allowance against the foreign net operating loss carryforwards of $1,526 and federal and state tax credits of $1,152 because management does not believe that it is more likely than not that net operating loss carryforwards will be realized. Undistributed earnings of certain of the Company’s foreign subsidiaries amounted to approximately $65,750 at September 30, 2018. The Company considers those earnings reinvested indefinitely and, accordingly, aside from the one-time transition tax associated with the Act, no additional 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. As of September 30, 2018, the Company is open to examination in the U.S. for the 2015 through 2018 tax years and in various foreign jurisdictions from 2016 through 2018. The Company is also open to examination in various states in the U.S., none of which were individually material. The Company is currently under examination by the Internal Revenue Service for the 2015 tax year. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2018 | |
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. On July 7, 2016, the Company amended the agreement to, among other things, extend the term through July 7, 2021 and reduce unused line fees and certain administrative fees. The maximum revolving loan amount under the Amended Agreement is $120.0 million, subject to a borrowing base formula and certain reserves. 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, 2018, the U.S. revolving credit facility had a zero balance. In addition, the Company must pay monthly, in arrears, a commitment fee of 0.20% 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 such as 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 10.0% of the maximum credit revolving loan 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 regular quarterly dividends less than $20.0 million in the aggregate in a year and repurchases in connection with the vesting of shares of restricted stock). 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 (“TIMET”) 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 Company’s 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 1,700 Pounds Sterling ($2,215), all of which was available on September 30, 2018. The Company’s French subsidiary (Haynes International, S.A.R.L.) has an overdraft banking facility of 240 Euro ($278), all of which was available on September 30, 2018. The Company’s Swiss subsidiary (Haynes International AG) has an overdraft banking facility of 400 Swiss Francs ($407), all of which was available on September 30, 2018. |
Pension Plan and Retirement Ben
Pension Plan and Retirement Benefits | 12 Months Ended |
Sep. 30, 2018 | |
Pension Plan and 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, 2016, 2017 and 2018 totaled $1,652, $1,590 and $1,811, 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, 2016, 2017 and 2018. Defined Benefit Plans The Company has non-contributory defined benefit pension plans which cover most employees in the U.S. and the U.K. Benefits provided under the Company’s U.S. 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, 2016, 2017 and 2018 was $91, $19 and $34, respectively. Accrued liabilities in the amount of $777 and $716 for these benefits are included in accrued pension and postretirement benefits liability at September 30, 2017 and 2018, 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. The Company’s liability related to total retiree health care costs is limited to $5,000 annually. The Company made contributions of $6,000, $6,000, and $8,000 to fund its domestic Company-sponsored pension plan for the years ended September 30, 2016, 2017 and 2018, respectively. The Company’s U.K. subsidiary made contributions of $778, $804 and $782 for the years ended September 30, 2016, 2017 and 2018, respectively, to the U.K. pension plan. During the fourth quarter of fiscal 2018, the Company transferred assets of $13,576 to a third-party insurance company in exchange for the assumption of pension liability for approximately 397 retired participants. The pension liability for those retirees is not included in the projected benefit obligation as of September 30, 2018. The Company uses a September 30 measurement date for its plans. The status of employee pension benefit plans and other postretirement benefit plans is summarized below: Defined Benefit Postretirement Pension Plans Health Care Benefits Year Ended Year Ended September 30, September 30, 2017 2018 2017 2018 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 337,338 $ 310,803 $ 125,117 $ 117,424 Service cost 6,282 5,536 350 336 Interest cost 10,577 10,801 4,292 4,311 Actuarial losses (27,246) (19,756) (8,072) (10,395) Benefits paid (14,682) (14,178) (4,263) (3,663) Transfer to third-party insurance company — (13,576) — — Administrative expenses (1,466) (1,350) — — Projected benefit obligation at end of year $ 310,803 $ 278,280 $ 117,424 $ 108,013 Change in Plan Assets: Fair value of plan assets at beginning of year $ 207,963 $ 224,094 $ — $ — Actual return on assets 25,475 18,501 — — Employer contributions 6,804 8,782 4,263 3,663 Benefits paid (14,682) (14,178) (4,263) (3,663) Transfer to third-party insurance company — (13,576) — — Administrative expenses (1,466) (1,350) — — Fair value of plan assets at end of year $ 224,094 $ 222,273 $ — $ — Funded Status of Plan: Unfunded status $ (86,709) $ (56,007) $ (117,424) $ (108,013) 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, 2017 2018 2017 2018 2017 2018 2017 2018 Accrued pension and postretirement benefits: Current $ — $ — $ (5,000) $ (5,000) $ (95) $ (95) $ (5,095) $ (5,095) Non - current (86,709) (56,007) (112,424) (103,013) (682) (621) (199,815) (159,641) Accrued pension and postretirement benefits $ (86,709) $ (56,007) $ (117,424) $ (108,013) $ (777) $ (716) $ (204,910) $ (164,736) Accumulated other comprehensive loss: Net loss 66,819 38,808 35,286 21,891 — — 102,105 60,699 Prior service cost 2,213 1,839 — — — — 2,213 1,839 Total accumulated other comprehensive loss $ 69,032 $ 40,647 $ 35,286 $ 21,891 $ — $ — $ 104,318 $ 62,538 Amounts expected to be recognized from AOCI into the statement of operations in the following year: Amortization of net loss $ 4,910 $ 1,464 $ 2,999 $ 1,487 $ — $ — $ 7,909 $ 2,951 Amortization of prior service cost 374 205 — — — — 374 205 $ 5,284 $ 1,669 $ 2,999 $ 1,487 $ — $ — $ 8,283 $ 3,156 The non-current portion of the defined benefit pension plan portion of accrued pension and postretirement benefits amounts to $86,709 and $56,007 in fiscal 2017 and 2018, respectively. These amounts comprise the UK pension plan net pension asset of $3,566 and $5,444, respectively, which is included in Other assets on the consolidated balance sheets as well as the US pension plan accrued pension liability of $90,275 and $61,451, respectively, which are recorded in accrued pension benefit (less current portion) on the consolidated balance sheet. The accumulated benefit obligation for the pension plans was $299,197 and $269,386 at September 30, 2017 and 2018, respectively. The cost of the Company’s postretirement benefits is 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, 2016 2017 2018 Service cost $ 4,080 $ 6,282 $ 5,536 Interest cost 12,050 10,577 10,801 Expected return on assets (14,380) (14,419) (15,157) Amortization of prior service cost 808 808 374 Recognized actuarial loss 8,838 11,267 4,910 Net periodic cost $ 11,396 $ 14,515 $ 6,464 Postretirement Health Care Benefits Year Ended September 30, 2016 2017 2018 Service cost $ 232 $ 350 $ 336 Interest cost 4,595 4,292 4,311 Recognized actuarial loss 2,825 4,278 2,999 Net periodic cost $ 7,652 $ 8,920 $ 7,646 Assumptions A 5.0% ( 5.0%-2017) annual rate of increase for the costs of covered health care benefits for ages under 65 and a 5.0% ( 5.0%-2017) annual rate of increase for ages over 65 were assumed for 2018 and remained at 5.0% for the under 65 and over 65 age groups in the years thereafter. 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 postretirement health care expense in fiscal 2018 or on the accumulated postretirement benefit obligation as of September 30, 2018. 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, 2017 and 2018 were determined based on the following assumptions: September 30, September 30, 2017 2018 Discount rate (postretirement health care) 3.75 % 4.13 % Discount rate (U.S. pension plan) 3.63 % 4.00 % Discount rate (U.K. pension plan) 2.50 % 2.80 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % 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, 2016 2017 2018 Discount rate (postretirement health care plan) 4.25 % 3.50 % 3.75 % Discount rate (U.S. pension plan) 4.00 % 3.25 % 3.63 % Discount rate (U.K. pension plan) 3.70 % 2.30 % 2.50 % Expected return on plan assets (U.S. pension plan) 7.50 % 7.50 % 7.25 % Expected return on plan assets (U.K. pension plan) 4.10 % 2.70 % 3.30 % Rate of compensation increase (U.S. pension plan only) 3.50 % 3.50 % 2.50 % Plan Assets and Investment Strategy The Company’s pension plan assets by level within the fair value hierarchy at September 30, 2017 and 2018, are presented in the table below. The pension plan assets were accounted for at fair value. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in U.S and International equities, and Fixed Income are held in mutual funds and common / collective funds which are valued using net asset value (NAV) provided by the administrator of the fund. For more information on a description of the fair value hierarchy, see Note 16. September 30, 2017 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ — $ — $ 73,430 $ 73,430 Common /collective funds Bonds — — 81,702 81,702 U.S. common stock — — 32,784 32,784 International equity — — 16,341 16,341 Total U.S. $ — $ — $ 204,257 $ 204,257 U.K. Plan Assets: Equities $ — $ — $ 8,913 $ 8,913 Bonds — — 7,750 7,750 Other — — 3,174 3,174 Total U.K. $ — $ — $ 19,837 $ 19,837 Total pension plan assets $ — $ — $ 224,094 $ 224,094 September 30, 2018 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ — $ — $ 72,947 $ 72,947 Common /collective funds Bonds — — 80,250 80,250 U.S. common stock — — 32,547 32,547 International equity — — 16,152 16,152 Total U.S. $ — $ — $ 201,896 $ 201,896 U.K. Plan Assets: Equities $ — $ — $ 8,150 $ 8,150 Bonds — — 9,781 9,781 Other — — 2,446 2,446 Total U.K. $ — $ — $ 20,377 $ 20,377 Total pension plan assets $ — $ — $ 222,273 $ 222,273 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. 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 is 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 60 % Fixed Income 40 % Real Estate and Other — % (1) From time to time the Company may adjust the target allocation by an amount not to exceed 10%. In determining the expected rate of return on U.S. plan assets, the Company takes into account the target plan’s allocation at September 30, 2018 of 60% equities and 40% fixed income. The Company assumes an approximately 3.00% to 4.00% equity risk premium above the broad bond market yields of 4.00% to 6.00%. Note that over very long historical periods, the realized risk premium has been higher. The Company believes that its assumption of a 7.25% 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. The U.K. pension plan assets follow a more conservative investment objective due to the higher funding status of the plan. 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 2019. 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 2019 $ 14,226 $ 5,000 2020 14,768 5,000 2021 15,251 5,000 2022 15,790 5,000 2023 16,243 5,000 2024 - 2028 (in total) 85,854 25,000 |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2018 | |
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 $3,726, $4,082 and $3,892 for the years ended September 30, 2016, 2017 and 2018, respectively. Rent expense does not include income from sub-lease rentals totaling $120, $153 and $156 for the years ended September 30, 2016, 2017 and 2018, respectively. Future minimum rental commitments under non-cancelable operating leases at September 30, 2018, are as follows: Operating 2019 $ 2,681 2020 1,401 2021 313 2022 115 2023 17 2024 and thereafter — $ 4,527 Future minimum rental commitments under non-cancelable operating leases have not been reduced by minimum sub-lease rentals of $78 due in the future. |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Note 10. Legal, Environmental and Other Contingencies Legal 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 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. Environmental 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 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, 2018, the Company has accrued $504 for post-closure monitoring and maintenance activities, of which $449 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, 2018. 2020 $ 52 2021 59 2022 49 2023 48 2024 and thereafter 241 $ 449 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. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2018 | |
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. 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, among other awards. Up to 275,000 shares of restricted stock, restricted stock units and performance shares may be granted in the aggregate under this plan. Following the adoption of the 2016 Incentive Compensation Plan, the Company ceased granting awards from the 2009 restricted stock plan, although awards remain outstanding thereunder. 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, which is determined based upon the closing price of the Company’s common stock on the trading date 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. The shares of time-based restricted stock granted to employees 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 following table summarizes the activity under the 2009 restricted stock plan and the 2016 Incentive Compensation Plan with respect to restricted stock for the year ended September 30, 2018: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2017 107,210 $ 41.36 Granted 37,750 $ 33.29 Forfeited / Canceled (36,092) $ 39.83 Vested (26,875) $ 44.51 Unvested at September 30, 2018 81,993 $ 37.28 Expected to vest 68,638 $ 37.19 Compensation expense related to restricted stock for the years ended September 30, 2016, 2017 and 2018 was $1,466, $1,340, and $836, respectively. The remaining unrecognized compensation expense related to restricted stock at September 30, 2018 was $890, to be recognized over a weighted average period of 0.69 years. During fiscal 2018, the Company repurchased 6,937 shares of stock from employees at an average purchase price of $32.23 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Deferred Restricted Stock On November 20, 2017, the Company adopted a deferred compensation plan that allows directors and officers the option to defer receipt of cash and stock compensation. On November 21, 2017, the Company granted shares of restricted stock from the 2016 Incentive Compensation Plan in which elections were made by certain individuals to defer receipt to a future period. Those shares will vest in accordance with the parameters of the 2016 Incentive Compensation Plan, however, receipt of the shares and any corresponding dividends are deferred until the end of the deferral period. In the event the deferred shares are forfeited prior to the vesting date, deferred dividends pertaining to those shares are also forfeited. During the deferral period, the participants who elected to defer shares will not have voting rights with respect to those shares. The following table summarizes the activity under the 2016 Incentive Compensation Plan with respect to deferred restricted stock for the year ended September 30, 2018. Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2017 — $ — Granted 16,550 $ Unvested at September 30, 2018 16,550 $ Expected to vest 16,550 $ Compensation expense related to deferred restricted stock for the year ended September 30, 2017 and 2018 was $0 and $438, respectively. The remaining unrecognized compensation expense related to restricted stock at September 30, 2018 was $88, to be recognized over a weighted average period of 0.17 years. Performance Shares On November 22, 2016 and November 21, 2017, the Company granted a target of 19,000 and 24,800, respectively, 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 and September 30, 2020, respectively, as compared to the total shareholder return of the Company’s peer group, as defined by the Compensation Committee for this purpose. During the third and fourth quarters of fiscal 2018, a target amount of 11,910 and 1,546 performance share awards were forfeited, respectively. The fair value of the performance shares granted on November 22, 2016 and November 21, 2017 is $60.09 and $38.43, per share, respectively, which is estimated as of the date of the grant using a Monte Carlo simulation model. Compensation expense related to the performance shares for the years ended September 30, 2017 and 2018 was $336 and $500, respectively. The remaining unrecognized compensation expense related to performance shares at September 30, 2018 was $661, to be recognized over a weighted average period of 1.45 years. Stock Option Plans The Company’s 2016 Incentive Compensation Plan and its two previous stock option plans authorize, or formerly authorized, 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 provided 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 the grant of options to purchase up to 500,000 shares of the Company’s common stock. 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. Following the adoption of the 2016 Incentive Compensation Plan, the Company ceased granting awards from its two previous stock option plans, although awards remain outstanding thereunder. 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 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 Company has elected to use the Black-Scholes option pricing model to estimate fair value, 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 during fiscal years 2016, 2017 and 2018: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life September 17, 2018 $ % % 40 % 5 years June 1, 2018 $ % % 41 % 5 years November 21, 2017 $ 9.74 2.77 % 2.06 % 42 % 5 years November 22, 2016 $ 11.50 2.15 % 1.79 % 37 % 5 years November 24, 2015 $ 8.37 2.33 % 1.70 % 30 % 5 years The stock-based employee compensation expense for stock options for the years ended September 30, 2016, 2017 and 2018 was $514, $433 and $546, respectively. The remaining unrecognized compensation expense at September 30, 2018 was $666, to be recognized over a weighted average vesting period of 0.83 years. The following table summarizes the activity under the stock option plans for the year ended September 30, 2018: Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2017 425,326 $ 44.93 Granted 77,550 $ Exercised — $ Canceled (92,201) $ Outstanding at September 30, 2018 410,675 $ 373 $ yrs. Vested or expected to vest 376,160 $ 366 $ yrs. Exercisable at September 30, 2018 316,775 $ 232 $ 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. |
Quarterly Data (unaudited)
Quarterly Data (unaudited) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Data (unaudited) | |
Quarterly Data (unaudited) | Note 12. Quarterly Data (unaudited) The unaudited quarterly results of operations of the Company for the years ended September 30, 2017 and 2018 are as follows: 2017 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 93,355 $ 103,112 $ 97,977 $ 100,765 Gross profit 10,487 9,788 3,662 5,773 Net income (loss) Net income (loss) per share: Basic $ (0.06) $ (0.15) $ (0.32) $ (0.30) Diluted $ (0.06) $ (0.15) $ (0.32) $ (0.30) 2018 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 89,693 $ 110,206 $ 113,114 $ 122,313 Gross profit 7,010 11,452 13,270 15,946 Net income (loss) (22,526) (2,068) 713 2,130 Net income (loss) per share: Basic $ (1.82) $ (0.17) $ 0.06 $ 0.17 Diluted $ (1.82) $ (0.17) $ 0.06 $ 0.17 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2018 | |
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, industrial gas turbine, chemical processing and other industries. The Company has operations in the United States, Europe and Asia, 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, 2016 2017 2018 Net Revenue by Geography: United States $ 233,612 $ 235,500 $ 258,275 Europe 101,853 98,096 113,967 China 13,808 18,997 24,640 Other 57,086 42,616 38,444 Net Revenues $ 406,359 $ 395,209 $ 435,326 Net Revenue by Product Group: High-temperature resistant alloys $ 329,151 $ 320,119 $ 352,614 Corrosive-resistant alloys 77,208 75,090 82,712 Net revenues $ 406,359 $ 395,209 $ 435,326 September 30, 2017 2018 Long - lived Assets by Geography: United States $ 185,413 $ 172,689 Europe 6,879 6,522 China 264 189 Total long-lived assets $ 192,556 $ 179,400 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 620 688 (178) 1,130 September 30, 2017 402 228 (10) 620 September 30, 2016 869 (156) (311) 402 (1) Uncollectible accounts written off net of recoveries. |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 | |
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. 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. The valuation model used depends on the specific asset or liability being valued. U.S and International equities, Fixed Income, and Other Investments held in the Company’s pension plan are held in mutual funds and common / collective funds which are valued using net asset value (NAV) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. These investments are not classified in the fair value hierarchy in accordance with guidance included in ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) . The fair value of Cash and Cash Equivalents is determined using Level 1 information. 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, 2017 and 2018: September 30, 2017 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ — $ — $ — $ 224,094 $ 224,094 Total fair value $ — $ — $ — $ 224,094 $ 224,094 September 30, 2018 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ — $ — $ — $ 222,273 $ 222,273 Total fair value $ — $ — $ — $ 222,273 $ 222,273 The Company had no other financial assets or liabilities as of September 30, 2017 or 2018. |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Sep. 30, 2018 | |
Comprehensive Income (Loss) and 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, 2016 2017 2018 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income (loss) $ 5,020 $ (10,190) $ (21,751) Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ (18,299) $ 6,609 (11,690) $ 46,401 $ (17,095) 29,306 $ 33,518 $ (7,576) 25,942 Amortization of prior service cost (808) 299 (509) 808 (298) 510 374 (99) 275 Amortization of (gain) loss (11,663) 4,293 (7,370) 15,517 (5,709) 9,808 7,887 (2,075) 5,812 Foreign currency translation adjustment (7,001) — (7,001) 2,205 — 2,205 (1,900) — (1,900) Other comprehensive income (loss) $ (37,771) $ 11,201 (26,570) $ 64,931 $ (23,102) 41,829 $ 39,879 $ (9,750) 30,129 Total comprehensive income (loss) $ (21,550) $ 31,639 $ 8,378 Accumulated Other Comprehensive Income (Loss) Year Ended September 30, 2017 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2016 $ (74,742) $ (29,585) $ (10,196) $ (114,523) Other comprehensive income (loss) before reclassifications 24,109 5,197 2,205 31,511 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 808 — — 808 Actuarial losses (1) 11,239 4,278 — 15,517 Tax benefit (4,426) (1,581) — (6,007) Net current-period other comprehensive income (loss) 31,730 7,894 2,205 41,829 Accumulated other comprehensive income (loss) as of September 30, 2017 $ (43,012) $ (21,691) $ (7,991) $ (72,694) Year Ended September 30, 2018 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2017 $ (43,012) $ (21,691) $ (7,991) $ (72,694) Other comprehensive income (loss) before reclassifications 17,658 8,284 (1,900) 24,042 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) 374 — — 374 Actuarial losses (a) 4,888 2,999 — 7,887 Tax benefit (1,381) (793) — (2,174) Net current-period other comprehensive income (loss) 21,539 10,490 (1,900) 30,129 Accumulated other comprehensive loss as of September 30, 2018 $ (21,473) $ (11,201) $ (9,891) $ (42,565) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations
Long-term Obligations | 12 Months Ended |
Sep. 30, 2018 | |
Long-term Obligations | |
Long-term Obligations | Note 18. Long-term 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. The Company entered into a twenty-year “build-to-suit” lease for a building that houses the assets and operations of the service center located in LaPorte, Indiana that was relocated from Lebanon, Indiana. 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 of approximately $4,100 are included in Property, plant and equipment, net on the Consolidated Balance Sheet and depreciated over the 20-year lease term. The Company accounts for the related build-to-suit liability as a financing obligation. As of September 30, 2018, future minimum lease rental payments applicable to the lease obligations were as follows. 2019 $ 989 2020 994 2021 1,001 2022 1,012 2023 1,024 Thereafter 12,572 Total minimum lease payments 17,592 Less amounts representing interest (9,466) Present value of net minimum lease payments 8,126 Less current obligation (147) Total long-term lease obligation $ 7,979 The lease obligations is included in Long-term obligations (less current portion) on the Consolidated Balance Sheet. September 30, 2017 2018 Capital lease rental payments $ 4,275 $ 4,207 Finance lease rental payments 4,017 3,920 Environmental post-closure monitoring and maintenance activities 633 504 Deferred dividends — 14 Less amounts due within one year (1,029) (202) Long-term obligations (less current portion) $ 7,896 $ 8,443 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts | 12 Months Ended |
Sep. 30, 2018 | |
Foreign Currency Forward Contracts | |
Foreign Currency Forward Contracts | Note 19. Foreign Currency Forward Contracts Beginning in the third quarter of fiscal 2018, the Company entered into foreign currency forward contracts. The purpose of these forward contracts is to reduce income statement volatility resulting from foreign currency denominated transactions. The Company has not designated the contacts as hedges; therefore, changes in fair value are recognized in earnings. All of these contracts are designed to be settled within the same fiscal quarter they are entered into and, accordingly, as of September 30, 2018, there are no contracts that remain unsettled. As a result, there is no impact to the balance sheet as of September 30, 2018. Foreign exchange hedging gains and losses are recorded within Selling, General and Administrative expenses on the Consolidated Statements of Operations along with foreign currency transactional gains and losses as follows. Year Ended September 30, 2018 Foreign Currency Transactional Gain (Loss) $ 411 Foreign Exchange Forward Contract Gain (Loss) (918) Net gain (loss) included in Selling, General and administrative expense $ (507) The net loss from foreign currency transactions during fiscal 2018 includes $643 of loss incurred prior to third quarter of fiscal 2018 when the Company began to enter into foreign currency forward contracts. The Company began using forward currency forward contracts as a mechanism to reduce income statement volatility from foreign currency denominated transactions at the beginning of the third quarter of fiscal 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Nature of Operations | A. 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 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; and Tokyo, Japan. |
Cash and Cash Equivalents | B. 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 | C. 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. |
Revenue Recognition | D. 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 | E. 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 | F. 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 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 by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment loss in the event that the carrying amount is greater than the fair value. Any goodwill impairment loss recognized would not exceed the total carrying amount of goodwill allocated to that reporting unit. No impairment was recognized in the years ended September 30, 2016, 2017 or 2018 because the fair value exceeded the carrying values. During fiscal 2018, there were no changes in the carrying amount of goodwill. Amortization of the patents, customer relationships and other intangibles was $503, $496 and $527 for the years ended September 30, 2016, 2017 and 2018, respectively. The following represents a summary of intangible assets at September 30, 2017 and 2018: Gross Accumulated Carrying September 30, 2017 Amount Amortization Amount Patents $ 4,030 $ (3,656) $ 374 Trademarks 3,800 — 3,800 Customer relationships 2,100 (426) 1,674 Other 291 (73) 218 $ 10,221 $ (4,155) $ 6,066 Gross Accumulated Carrying September 30, 2018 Amount Amortization Amount Patents $ 4,030 $ (3,977) $ 53 Trademarks 3,800 — 3,800 Customer relationships 2,100 (574) 1,526 Other 291 (131) 160 $ 10,221 $ (4,682) $ 5,539 Estimated future Aggregate Amortization Expense: Year Ended September 30, 2019 $ 255 2020 199 2021 179 2022 133 2023 129 Thereafter 844 |
Property, Plant and Equipment | G. 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: Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 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 the 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. No impairment was recognized during the years ended September 30, 2016, 2017 or 2018. |
Environmental Remediation | H. 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 | I. 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 | J. 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. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in selling, general and administrative expense. Beginning in the third quarter of fiscal 2018, the Company entered into foreign currency forward contracts (See Note 19.). The purpose of these forward contracts is to reduce income statement volatility resulting from the transaction gains and losses. |
Research and Technical Costs | K. 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, 2016, 2017 and 2018 were $3,698, $3,855 and $3,785, respectively. |
Income Taxes | L. 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 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 (See Note 6, Income Taxes). |
Stock-based Compensation | M. As described in Note 11, the Company has incentive compensation plans that provide for the issuance of restricted stock, restricted stock units, performance shares, stock options and stock appreciation rights to key employees and non-employee directors. The Company recognizes compensation expense under the fair-value based method as a component of operating expenses. |
Financial Instruments and Concentrations of Risk | N. 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, 2017 and 2018, 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, 2018, 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 2016, 2017 and 2018, 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 amounted to $688 in fiscal 2018 and were within management’s expectations. 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 | O. 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 | P. 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) 2016 2017 2018 Numerator: Basic and Diluted Net income (loss) $ 5,020 $ (10,190) $ (21,751) Dividends (10,988) (11,009) (11,027) Undistributed income (loss) (5,968) (21,199) (32,778) Percentage allocated to common shares (a) 99.0 % 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (5,910) (21,199) (32,778) Dividends paid on common shares outstanding 10,881 10,905 10,933 Net income (loss) available to common shares 4,971 (10,294) (21,845) Denominator: Basic and Diluted Weighted average common shares outstanding 12,361,483 12,397,099 12,419,564 Adjustment for dilutive potential common shares 4,714 — — Weighted average shares outstanding - Diluted 12,366,197 12,397,099 12,419,564 Basic net income (loss) per share $ 0.40 $ (0.83) $ (1.75) Diluted net income (loss) per share $ 0.40 $ (0.83) $ (1.75) Number of stock option shares excluded as their effect would be anti-dilutive 378,852 310,417 329,276 Number of restricted stock shares excluded as their effect would be anti-dilutive 121,285 107,854 91,008 (a) Percentage allocated to common shares - weighted average Common shares outstanding 12,361,483 12,397,099 12,419,564 Unvested participating shares 121,185 — — 12,482,668 12,397,099 12,419,564 |
Recently Issued Accounting Pronouncements | Q. 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. This update provides a five-step analysis of transactions to determine when and how revenue is recognized, along with expanded disclosure requirements. An entity should 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. The Company will adopt this accounting standard update using the modified retrospective method, with the cumulative effect of initially applying this update, recognized in the first quarter of fiscal 2019. The Company has evaluated the impact of this standard on individual customer contracts and based on this evaluation determined that from time to time, the Company may have customer agreements that require revenue to be recognized over time due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. As of September 30, 2018, there were not any outstanding contracts that would require a cumulative adjustment to retained earnings under the modified retrospective method of implementation. Certain liabilities for estimated product returns will be re-classified to accrued expenses from a contra-asset within accounts receivable, less allowance for doubtful accounts. 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 Company adopted these changes in the first quarter of fiscal 2018, which did not result in a material impact to the Company’s consolidated financial statements. 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. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) . This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash and cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and is to be adjusted retrospectively. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) . This new guidance requires entities to (1) disaggregate the service cost component from the other components of net benefit cost and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The amendments in this ASU also only allow the service cost component to be eligible for capitalization. This new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The amendments are to be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company will adopt the standard on October 1, 2018. As a result of the retrospective change in presentation, the adoption of this guidance will result in the reclassification of cost of goods sold of $14,997 and $7,040, and selling, general and administrative expense of $1,806 and $1,198, for the fiscal years ended September 30, 2017 and 2018, respectively, to Nonoperating retirement benefit expense on the Consolidated Statements of Operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) . This new guidance removes and modifies disclosure requirements on fair value statements. This update is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, on its disclosures in the Notes to Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) . This new guidance removes and modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Some disclosure requirements that are removed include, among others, amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. This update is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies | |
Summary of intangible assets | Gross Accumulated Carrying September 30, 2017 Amount Amortization Amount Patents $ 4,030 $ (3,656) $ 374 Trademarks 3,800 — 3,800 Customer relationships 2,100 (426) 1,674 Other 291 (73) 218 $ 10,221 $ (4,155) $ 6,066 Gross Accumulated Carrying September 30, 2018 Amount Amortization Amount Patents $ 4,030 $ (3,977) $ 53 Trademarks 3,800 — 3,800 Customer relationships 2,100 (574) 1,526 Other 291 (131) 160 $ 10,221 $ (4,682) $ 5,539 |
Schedule of estimated future aggregate amortization expense | Estimated future Aggregate Amortization Expense: Year Ended September 30, 2019 $ 255 2020 199 2021 179 2022 133 2023 129 Thereafter 844 |
Schedule of estimated economic useful lives of property, plant and equipment | Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 years |
Schedule of basic and diluted net income per share | Years ended September 30, (in thousands, except share and per share data) 2016 2017 2018 Numerator: Basic and Diluted Net income (loss) $ 5,020 $ (10,190) $ (21,751) Dividends (10,988) (11,009) (11,027) Undistributed income (loss) (5,968) (21,199) (32,778) Percentage allocated to common shares (a) 99.0 % 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (5,910) (21,199) (32,778) Dividends paid on common shares outstanding 10,881 10,905 10,933 Net income (loss) available to common shares 4,971 (10,294) (21,845) Denominator: Basic and Diluted Weighted average common shares outstanding 12,361,483 12,397,099 12,419,564 Adjustment for dilutive potential common shares 4,714 — — Weighted average shares outstanding - Diluted 12,366,197 12,397,099 12,419,564 Basic net income (loss) per share $ 0.40 $ (0.83) $ (1.75) Diluted net income (loss) per share $ 0.40 $ (0.83) $ (1.75) Number of stock option shares excluded as their effect would be anti-dilutive 378,852 310,417 329,276 Number of restricted stock shares excluded as their effect would be anti-dilutive 121,285 107,854 91,008 (a) Percentage allocated to common shares - weighted average Common shares outstanding 12,361,483 12,397,099 12,419,564 Unvested participating shares 121,185 — — 12,482,668 12,397,099 12,419,564 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Inventories | |
Summary of major classes of inventories | September 30, September 30, 2017 2018 Raw Materials $ 18,731 $ 17,897 Work-in-process 130,019 147,921 Finished Goods 94,331 105,640 Other 1,376 1,587 $ 244,457 $ 273,045 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment | |
Summary of the major classes of property, plant and equipment | September 30, 2017 2018 Land and land improvements $ 9,345 $ 9,462 Buildings and improvements 44,705 45,327 Machinery and equipment 289,035 281,329 Construction in process 5,692 7,292 348,777 343,410 Less accumulated depreciation (156,221) (164,010) $ 192,556 $ 179,400 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accrued Expenses | |
Summary of the major classes of accrued expenses | September 30, 2017 2018 Employee compensation $ 7,791 $ 8,825 Taxes, other than income taxes 2,422 2,673 Employee termination liabilities — 1,562 Professional fees 746 1,225 Management incentive compensation — 1,104 Utilities 909 982 Capital lease obligation, current 926 147 Other 1,314 945 $ 14,108 $ 17,463 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Taxes | |
Schedule of components of income before provision for income taxes | Year Ended September 30, 2016 2017 2018 Income (loss) before income taxes: U.S. $ (4,160) $ (25,090) $ (16,650) Foreign 7,911 7,873 12,596 Total $ 3,751 $ (17,217) $ (4,054) Provision for (benefit from) income taxes: Current: U.S. Federal $ (4,427) $ 933 $ (7,690) Foreign 1,368 1,652 2,404 State (141) 401 (137) Total (3,200) 2,986 (5,423) Deferred: U.S. Federal 4,582 (8,781) 25,141 Foreign (105) — — State (2,954) (1,427) (2,496) Valuation allowance 408 195 475 Total 1,931 (10,013) 23,120 Total provision for (benefit from) income taxes $ (1,269) $ (7,027) $ 17,697 |
Schedule of provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate | Year Ended September 30, 2016 2017 2018 Statutory federal tax rate 35.00 % 35.00 % 24.53 % Tax provision for income taxes at the statutory rate $ 1,313 $ (6,026) $ (1,059) Foreign tax rate differentials (1,505) (1,103) (685) Provision for state taxes, net of federal taxes 778 (371) (45) U.S. tax on distributed and undistributed earnings of foreign subsidiaries 523 452 240 Manufacturer’s deduction (98) — (86) Tax credits (1,198) (409) (511) Transition tax — — 2,170 Federal and state tax rate change impact on deferred tax asset (1,819) 192 16,633 Net operating loss carryback — — 407 Change in valuation allowance 408 195 475 Other, net 329 43 158 Provision for income taxes at effective tax rate $ (1,269) $ (7,027) $ 17,697 Effective tax rate (33.8) % 40.8 % (436.5) % |
Schedule of deferred tax assets (liabilities) | September 30, 2017 2018 Deferred tax assets: Pension and postretirement benefits $ 74,602 $ 38,343 TIMET Agreement 8,417 4,775 Inventories 2,080 2,091 Accrued compensation and benefits 2,107 1,387 Accrued expenses and other 5,277 2,977 Tax attributes 11,579 4,178 Valuation allowance (1,017) (1,661) Total deferred tax assets $ 103,045 $ 52,090 Deferred tax liabilities: Property, plant and equipment, net $ (45,155) $ (27,521) Intangible and other (1,498) (1,034) Total deferred tax liabilities $ (46,653) $ (28,555) Net deferred tax assets (liabilities) $ 56,392 $ 23,535 |
Pension and Retirement Benefits
Pension and Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Pension Plan and 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, 2017 2018 2017 2018 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 337,338 $ 310,803 $ 125,117 $ 117,424 Service cost 6,282 5,536 350 336 Interest cost 10,577 10,801 4,292 4,311 Actuarial losses (27,246) (19,756) (8,072) (10,395) Benefits paid (14,682) (14,178) (4,263) (3,663) Transfer to third-party insurance company — (13,576) — — Administrative expenses (1,466) (1,350) — — Projected benefit obligation at end of year $ 310,803 $ 278,280 $ 117,424 $ 108,013 Change in Plan Assets: Fair value of plan assets at beginning of year $ 207,963 $ 224,094 $ — $ — Actual return on assets 25,475 18,501 — — Employer contributions 6,804 8,782 4,263 3,663 Benefits paid (14,682) (14,178) (4,263) (3,663) Transfer to third-party insurance company — (13,576) — — Administrative expenses (1,466) (1,350) — — Fair value of plan assets at end of year $ 224,094 $ 222,273 $ — $ — Funded Status of Plan: Unfunded status $ (86,709) $ (56,007) $ (117,424) $ (108,013) |
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, 2017 2018 2017 2018 2017 2018 2017 2018 Accrued pension and postretirement benefits: Current $ — $ — $ (5,000) $ (5,000) $ (95) $ (95) $ (5,095) $ (5,095) Non - current (86,709) (56,007) (112,424) (103,013) (682) (621) (199,815) (159,641) Accrued pension and postretirement benefits $ (86,709) $ (56,007) $ (117,424) $ (108,013) $ (777) $ (716) $ (204,910) $ (164,736) Accumulated other comprehensive loss: Net loss 66,819 38,808 35,286 21,891 — — 102,105 60,699 Prior service cost 2,213 1,839 — — — — 2,213 1,839 Total accumulated other comprehensive loss $ 69,032 $ 40,647 $ 35,286 $ 21,891 $ — $ — $ 104,318 $ 62,538 Amounts expected to be recognized from AOCI into the statement of operations in the following year: Amortization of net loss $ 4,910 $ 1,464 $ 2,999 $ 1,487 $ — $ — $ 7,909 $ 2,951 Amortization of prior service cost 374 205 — — — — 374 205 $ 5,284 $ 1,669 $ 2,999 $ 1,487 $ — $ — $ 8,283 $ 3,156 |
Schedule of components of net periodic pension and postretirement benefit cost | Defined Benefit Pension Plans Year Ended September 30, 2016 2017 2018 Service cost $ 4,080 $ 6,282 $ 5,536 Interest cost 12,050 10,577 10,801 Expected return on assets (14,380) (14,419) (15,157) Amortization of prior service cost 808 808 374 Recognized actuarial loss 8,838 11,267 4,910 Net periodic cost $ 11,396 $ 14,515 $ 6,464 Postretirement Health Care Benefits Year Ended September 30, 2016 2017 2018 Service cost $ 232 $ 350 $ 336 Interest cost 4,595 4,292 4,311 Recognized actuarial loss 2,825 4,278 2,999 Net periodic cost $ 7,652 $ 8,920 $ 7,646 |
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, 2017 2018 Discount rate (postretirement health care) 3.75 % 4.13 % Discount rate (U.S. pension plan) 3.63 % 4.00 % Discount rate (U.K. pension plan) 2.50 % 2.80 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % |
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, 2016 2017 2018 Discount rate (postretirement health care plan) 4.25 % 3.50 % 3.75 % Discount rate (U.S. pension plan) 4.00 % 3.25 % 3.63 % Discount rate (U.K. pension plan) 3.70 % 2.30 % 2.50 % Expected return on plan assets (U.S. pension plan) 7.50 % 7.50 % 7.25 % Expected return on plan assets (U.K. pension plan) 4.10 % 2.70 % 3.30 % Rate of compensation increase (U.S. pension plan only) 3.50 % 3.50 % 2.50 % |
Schedule of plan assets by level within the fair value hierarchy | September 30, 2017 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ — $ — $ 73,430 $ 73,430 Common /collective funds Bonds — — 81,702 81,702 U.S. common stock — — 32,784 32,784 International equity — — 16,341 16,341 Total U.S. $ — $ — $ 204,257 $ 204,257 U.K. Plan Assets: Equities $ — $ — $ 8,913 $ 8,913 Bonds — — 7,750 7,750 Other — — 3,174 3,174 Total U.K. $ — $ — $ 19,837 $ 19,837 Total pension plan assets $ — $ — $ 224,094 $ 224,094 September 30, 2018 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. common stock mutual funds $ — $ — $ 72,947 $ 72,947 Common /collective funds Bonds — — 80,250 80,250 U.S. common stock — — 32,547 32,547 International equity — — 16,152 16,152 Total U.S. $ — $ — $ 201,896 $ 201,896 U.K. Plan Assets: Equities $ — $ — $ 8,150 $ 8,150 Bonds — — 9,781 9,781 Other — — 2,446 2,446 Total U.K. $ — $ — $ 20,377 $ 20,377 Total pension plan assets $ — $ — $ 222,273 $ 222,273 |
Schedule of asset classes as a percent of total assets | Asset Class Target (1) Equity 60 % Fixed Income 40 % 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 2019 $ 14,226 $ 5,000 2020 14,768 5,000 2021 15,251 5,000 2022 15,790 5,000 2023 16,243 5,000 2024 - 2028 (in total) 85,854 25,000 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments | |
Schedule of future minimum rental commitments under non-cancelable operating leases | Operating 2019 $ 2,681 2020 1,401 2021 313 2022 115 2023 17 2024 and thereafter — $ 4,527 |
Legal, Environmental and Othe_2
Legal, Environmental and Other Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Legal, Environmental and Other Contingencies | |
Schedule of expected maturities of post-closure monitoring and maintenance activities (discounted) | 2020 $ 52 2021 59 2022 49 2023 48 2024 and thereafter 241 $ 449 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2017 107,210 $ 41.36 Granted 37,750 $ 33.29 Forfeited / Canceled (36,092) $ 39.83 Vested (26,875) $ 44.51 Unvested at September 30, 2018 81,993 $ 37.28 Expected to vest 68,638 $ 37.19 |
Summary of activity under the deferred restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2017 — $ — Granted 16,550 $ Unvested at September 30, 2018 16,550 $ Expected to vest 16,550 $ |
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 September 17, 2018 $ % % 40 % 5 years June 1, 2018 $ % % 41 % 5 years November 21, 2017 $ 9.74 2.77 % 2.06 % 42 % 5 years November 22, 2016 $ 11.50 2.15 % 1.79 % 37 % 5 years November 24, 2015 $ 8.37 2.33 % 1.70 % 30 % 5 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, 2017 425,326 $ 44.93 Granted 77,550 $ Exercised — $ Canceled (92,201) $ Outstanding at September 30, 2018 410,675 $ 373 $ yrs. Vested or expected to vest 376,160 $ 366 $ yrs. Exercisable at September 30, 2018 316,775 $ 232 $ yrs. |
Quarterly Data (unaudited) (Tab
Quarterly Data (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Data (unaudited) | |
Schedule of unaudited quarterly results of operations of the Company | 2017 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 93,355 $ 103,112 $ 97,977 $ 100,765 Gross profit 10,487 9,788 3,662 5,773 Net income (loss) Net income (loss) per share: Basic $ (0.06) $ (0.15) $ (0.32) $ (0.30) Diluted $ (0.06) $ (0.15) $ (0.32) $ (0.30) 2018 Quarter Ended December 31 March 31 June 30 September 30 Net revenues $ 89,693 $ 110,206 $ 113,114 $ 122,313 Gross profit 7,010 11,452 13,270 15,946 Net income (loss) (22,526) (2,068) 713 2,130 Net income (loss) per share: Basic $ (1.82) $ (0.17) $ 0.06 $ 0.17 Diluted $ (1.82) $ (0.17) $ 0.06 $ 0.17 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting | |
Schedule of revenues from external customers attributable to geographic areas | Year Ended September 30, 2016 2017 2018 Net Revenue by Geography: United States $ 233,612 $ 235,500 $ 258,275 Europe 101,853 98,096 113,967 China 13,808 18,997 24,640 Other 57,086 42,616 38,444 Net Revenues $ 406,359 $ 395,209 $ 435,326 Net Revenue by Product Group: High-temperature resistant alloys $ 329,151 $ 320,119 $ 352,614 Corrosive-resistant alloys 77,208 75,090 82,712 Net revenues $ 406,359 $ 395,209 $ 435,326 |
Schedule of long-lived assets by geographic areas | September 30, 2017 2018 Long - lived Assets by Geography: United States $ 185,413 $ 172,689 Europe 6,879 6,522 China 264 189 Total long-lived assets $ 192,556 $ 179,400 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 620 688 (178) 1,130 September 30, 2017 402 228 (10) 620 September 30, 2016 869 (156) (311) 402 (1) Uncollectible accounts written off net of recoveries. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2017 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ — $ — $ — $ 224,094 $ 224,094 Total fair value $ — $ — $ — $ 224,094 $ 224,094 September 30, 2018 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ — $ — $ — $ 222,273 $ 222,273 Total fair value $ — $ — $ — $ 222,273 $ 222,273 |
Comprehensive Income (Loss) a_2
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Schedule of comprehensive income (loss) | Year Ended September 30, 2016 2017 2018 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income (loss) $ 5,020 $ (10,190) $ (21,751) Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ (18,299) $ 6,609 (11,690) $ 46,401 $ (17,095) 29,306 $ 33,518 $ (7,576) 25,942 Amortization of prior service cost (808) 299 (509) 808 (298) 510 374 (99) 275 Amortization of (gain) loss (11,663) 4,293 (7,370) 15,517 (5,709) 9,808 7,887 (2,075) 5,812 Foreign currency translation adjustment (7,001) — (7,001) 2,205 — 2,205 (1,900) — (1,900) Other comprehensive income (loss) $ (37,771) $ 11,201 (26,570) $ 64,931 $ (23,102) 41,829 $ 39,879 $ (9,750) 30,129 Total comprehensive income (loss) $ (21,550) $ 31,639 $ 8,378 |
Schedule of accumulated other comprehensive income (loss) | Year Ended September 30, 2017 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2016 $ (74,742) $ (29,585) $ (10,196) $ (114,523) Other comprehensive income (loss) before reclassifications 24,109 5,197 2,205 31,511 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 808 — — 808 Actuarial losses (1) 11,239 4,278 — 15,517 Tax benefit (4,426) (1,581) — (6,007) Net current-period other comprehensive income (loss) 31,730 7,894 2,205 41,829 Accumulated other comprehensive income (loss) as of September 30, 2017 $ (43,012) $ (21,691) $ (7,991) $ (72,694) Year Ended September 30, 2018 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2017 $ (43,012) $ (21,691) $ (7,991) $ (72,694) Other comprehensive income (loss) before reclassifications 17,658 8,284 (1,900) 24,042 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) 374 — — 374 Actuarial losses (a) 4,888 2,999 — 7,887 Tax benefit (1,381) (793) — (2,174) Net current-period other comprehensive income (loss) 21,539 10,490 (1,900) 30,129 Accumulated other comprehensive loss as of September 30, 2018 $ (21,473) $ (11,201) $ (9,891) $ (42,565) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Long-term Obligations | |
Schedule of future minimum lease rental payments applicable to the capital lease | As of September 30, 2018, future minimum lease rental payments applicable to the lease obligations were as follows. 2019 $ 989 2020 994 2021 1,001 2022 1,012 2023 1,024 Thereafter 12,572 Total minimum lease payments 17,592 Less amounts representing interest (9,466) Present value of net minimum lease payments 8,126 Less current obligation (147) Total long-term lease obligation $ 7,979 |
Schedule of long-term obligations | September 30, 2017 2018 Capital lease rental payments $ 4,275 $ 4,207 Finance lease rental payments 4,017 3,920 Environmental post-closure monitoring and maintenance activities 633 504 Deferred dividends — 14 Less amounts due within one year (1,029) (202) Long-term obligations (less current portion) $ 7,896 $ 8,443 |
Foreign Currency Forward Cont_2
Foreign Currency Forward Contracts (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Foreign Currency Forward Contracts | |
Schedule of foreign exchange hedging gains and losses | Year Ended September 30, 2018 Foreign Currency Transactional Gain (Loss) $ 411 Foreign Exchange Forward Contract Gain (Loss) (918) Net gain (loss) included in Selling, General and administrative expense $ (507) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) | Nov. 17, 2006 |
Conversion Services Agreement | |
Revenue Recognition | |
Term of agreement to provide conversion services | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Intangible Assets | |||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Change to goodwill | 0 | ||
Amortization of customer relationships, patents, non-competes and other intangibles | 527 | 496 | $ 503 |
Total intangible assets, Gross Amount | 10,221 | 10,221 | |
Finite-lived intangible assets, Accumulated Amortization | (4,682) | (4,155) | |
Carrying Amount | $ 5,539 | 6,066 | |
Minimum | |||
Intangible Assets | |||
Useful life | 2 years | ||
Maximum | |||
Intangible Assets | |||
Useful life | 16 years | ||
Patents | |||
Intangible Assets | |||
Finite-lived intangible assets Gross Amount | $ 4,030 | 4,030 | |
Finite-lived intangible assets, Accumulated Amortization | (3,977) | (3,656) | |
Finite-lived intangible assets, Carrying Amount | 53 | 374 | |
Customer relationships | |||
Intangible Assets | |||
Finite-lived intangible assets Gross Amount | 2,100 | 2,100 | |
Finite-lived intangible assets, Accumulated Amortization | (574) | (426) | |
Finite-lived intangible assets, Carrying Amount | 1,526 | 1,674 | |
Other Intangible Assets | |||
Intangible Assets | |||
Finite-lived intangible assets Gross Amount | 291 | 291 | |
Finite-lived intangible assets, Accumulated Amortization | (131) | (73) | |
Finite-lived intangible assets, Carrying Amount | 160 | 218 | |
Trademarks | |||
Intangible Assets | |||
Indefinite-lived intangible assets | $ 3,800 | $ 3,800 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Amortization Expense (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Estimate of Aggregate Amortization Expense: | |
2,019 | $ 255 |
2,020 | 199 |
2,021 | 179 |
2,022 | 133 |
2,023 | 129 |
Thereafter | $ 844 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment | |||
Impairment recognized | $ 0 | $ 0 | $ 0 |
Buildings and 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 | ||
Land improvements | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Pension and Postretirement Benefits (Details) $ in Thousands | Jan. 01, 2007USD ($) |
Postretirement Health Care Benefits | |
Pension and Postretirement Benefits | |
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Research and Technical Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Research and Technical Costs | |||
Research and technical expense | $ 3,785 | $ 3,855 | $ 3,698 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Financial Instruments (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018USD ($)item | Sep. 30, 2017item | |
Financial Instruments | ||
Foreign currency exchange contracts outstanding | item | 0 | 0 |
Credit losses | $ | $ 688 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: Basic and Diluted | |||||||||||
Net income (loss) | $ 2,130 | $ 713 | $ (2,068) | $ (22,526) | $ (3,661) | $ (3,967) | $ (1,890) | $ (672) | $ (21,751) | $ (10,190) | $ 5,020 |
Dividends | (11,027) | (11,009) | (10,988) | ||||||||
Undistributed income (loss) - Basic | (32,778) | (21,199) | (5,968) | ||||||||
Undistributed income (loss) - Diluted | $ (32,778) | $ (21,199) | $ (5,968) | ||||||||
Percentage allocated to common shares | 100.00% | 100.00% | 99.00% | ||||||||
Undistributed income (loss) allocated to common shares - Basic | $ (32,778) | $ (21,199) | $ (5,910) | ||||||||
Undistributed income (loss) allocated to common shares - Diluted | (32,778) | (21,199) | (5,910) | ||||||||
Dividends paid on common shares outstanding | 10,933 | 10,905 | 10,881 | ||||||||
Net income (loss) available to common shares - Basic | (21,845) | (10,294) | 4,971 | ||||||||
Net income (loss) available to common shares - Diluted | $ (21,845) | $ (10,294) | $ 4,971 | ||||||||
Denominator: Basic and Diluted | |||||||||||
Weighted average common shares outstanding - Basic | 12,419,564 | 12,397,099 | 12,361,483 | ||||||||
Adjustment for dilutive potential common shares | 4,714 | ||||||||||
Weighted average shares outstanding - Diluted | 12,419,564 | 12,397,099 | 12,366,197 | ||||||||
Basic net income (loss) per share (in dollars per share) | $ 0.17 | $ 0.06 | $ (0.17) | $ (1.82) | $ (0.30) | $ (0.32) | $ (0.15) | $ (0.06) | $ (1.75) | $ (0.83) | $ 0.40 |
Diluted net income (loss) per share (in dollars per share) | $ 0.17 | $ 0.06 | $ (0.17) | $ (1.82) | $ (0.30) | $ (0.32) | $ (0.15) | $ (0.06) | $ (1.75) | $ (0.83) | $ 0.40 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Anti-dilutive Securities (Details) - shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee and Directors Stock Options | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 329,276 | 310,417 | 378,852 |
Restricted Stock | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 91,008 | 107,854 | 121,285 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Weighted Average Common Shares (Details) - shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Percentage allocated to common shares - weighted average | |||
Common shares outstanding | 12,419,564 | 12,397,099 | 12,361,483 |
Unvested participating shares | 121,185 | ||
Total | 12,419,564 | 12,397,099 | 12,482,668 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Recently Issued Accounting Pronouncements | |||
Cost of goods sold | $ 387,648 | $ 365,499 | $ 358,779 |
Selling, general and administrative expense | 47,111 | 42,393 | $ 39,684 |
Reclassification upon adoption | ASU 2017-07 | |||
Recently Issued Accounting Pronouncements | |||
Cost of goods sold | 7,040 | 14,997 | |
Selling, general and administrative expense | $ 1,198 | $ 1,806 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Inventories | ||
Raw Materials | $ 17,897 | $ 18,731 |
Work-in-process | 147,921 | 130,019 |
Finished Goods | 105,640 | 94,331 |
Other | 1,587 | 1,376 |
Total | $ 273,045 | $ 244,457 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Thousands | Sep. 30, 2018USD ($)item | Sep. 30, 2017USD ($) |
Property, plant and equipment | ||
Gross amount | $ 343,410 | $ 348,777 |
Less accumulated depreciation | (164,010) | (156,221) |
Net amount | 179,400 | 192,556 |
Shanghai | ||
Property, plant and equipment | ||
Assets under a capital lease | 200 | |
La Porte | ||
Property, plant and equipment | ||
Assets under a capital lease | $ 7,483 | |
Number of leased buildings | item | 2 | |
Land and land improvements | ||
Property, plant and equipment | ||
Gross amount | $ 9,462 | 9,345 |
Buildings and improvements | ||
Property, plant and equipment | ||
Gross amount | 45,327 | 44,705 |
Machinery and equipment | ||
Property, plant and equipment | ||
Gross amount | 281,329 | 289,035 |
Construction in process | ||
Property, plant and equipment | ||
Gross amount | $ 7,292 | $ 5,692 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accrued Expenses | ||
Employee compensation | $ 8,825 | $ 7,791 |
Taxes, other than income taxes | 2,673 | 2,422 |
Employee termination liabilities | 1,562 | |
Professional fees | 1,225 | 746 |
Management incentive compensation | 1,104 | |
Utilities | 982 | 909 |
Capital lease obligation, current | 147 | 926 |
Other | 945 | 1,314 |
Total accrued expenses | $ 17,463 | $ 14,108 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes | ||||
Statutory federal tax rate (as a percent) | 21.00% | 24.53% | 35.00% | 35.00% |
Tax expense related to change in deferred tax assets from Tax Cuts and Jobs Act | $ 16,633 | |||
Tax expense related to accumulated earnings and profits of controlled foreign corporation from Tax Cuts and Jobs Act | 2,170 | |||
Income (loss) before income taxes: | ||||
U.S. | (16,650) | $ (25,090) | $ (4,160) | |
Foreign | 12,596 | 7,873 | 7,911 | |
Income (loss) before income taxes | (4,054) | (17,217) | 3,751 | |
Current: | ||||
U.S. Federal | (7,690) | 933 | (4,427) | |
Foreign | 2,404 | 1,652 | 1,368 | |
State | (137) | 401 | (141) | |
Total | (5,423) | 2,986 | (3,200) | |
Deferred: | ||||
U.S. Federal | 25,141 | (8,781) | 4,582 | |
Foreign | (105) | |||
State | (2,496) | (1,427) | (2,954) | |
Valuation allowance | 475 | 195 | 408 | |
Total | 23,120 | (10,013) | 1,931 | |
Total provision for (benefit from) income taxes | $ 17,697 | $ (7,027) | $ (1,269) |
Income Taxes - Rate (Details)
Income Taxes - Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective income tax rate reconciliation | ||||
Statutory federal tax rate (as a percent) | 21.00% | 24.53% | 35.00% | 35.00% |
Tax provision for income taxes at the statutory rate | $ (1,059) | $ (6,026) | $ 1,313 | |
Foreign tax rate differentials | (685) | (1,103) | (1,505) | |
Provision for state taxes, net of federal taxes | (45) | (371) | 778 | |
U.S. tax on distributed and undistributed earnings of foreign subsidiaries | 240 | 452 | 523 | |
Manufacturer's deduction | (86) | (98) | ||
Tax credits | (511) | (409) | (1,198) | |
Transition tax | 2,170 | |||
State tax rate change impact on deferred tax asset | 16,633 | 192 | (1,819) | |
Net operating loss carryback | 407 | |||
Change in valuation allowance | 475 | 195 | 408 | |
Other, net | 158 | 43 | 329 | |
Total provision for (benefit from) income taxes | $ 17,697 | $ (7,027) | $ (1,269) | |
Effective tax rate (as a percent) | (436.50%) | 40.80% | (33.80%) |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 38,343 | $ 74,602 |
Inventories | 2,091 | 2,080 |
Accrued compensation and benefits | 1,387 | 2,107 |
Accrued expenses and other | 2,977 | 5,277 |
Tax attributes | 4,178 | 11,579 |
Valuation allowance | (1,661) | (1,017) |
Total deferred tax assets | 52,090 | 103,045 |
Deferred tax liabilities: | ||
Property, plant and equipment, net | (27,521) | (45,155) |
Intangible and other | (1,034) | (1,498) |
Total deferred tax liabilities | (28,555) | (46,653) |
Net deferred tax assets (liabilities) | 23,535 | 56,392 |
Conversion Services Agreement | ||
Deferred tax assets: | ||
TIMET Agreement | $ 4,775 | $ 8,417 |
Income Taxes - NOL (Details)
Income Taxes - NOL (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Net operating loss carryforwards | ||
Tax credit | $ 1,152 | |
Undistributed losses of foreign subsidiaries | $ 65,750 | |
Undistributed losses of foreign subsidiaries taxes | 0 | |
State | ||
Net operating loss carryforwards | ||
Net operating loss carryforwards | 18,477 | |
Tax credit | 3,113 | |
Foreign | ||
Net operating loss carryforwards | ||
Net operating loss carryforwards | $ 2,236 | |
Net operating loss carryforward valuation allowance | $ 1,526 |
Debt - US Credit Facility (Deta
Debt - US Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jul. 06, 2016 | |
Domestic Line of Credit | |||
Debt | |||
Maximum revolving loan amount under the Amended Agreement | $ 120,000 | ||
Increased maximum revolving loan amount at the request of the borrowers | $ 170,000 | ||
Outstanding balance | $ 0 | ||
Commitment fee (as a percent) | 0.20% | ||
Excess availability, percentage, maximum | 10.00% | ||
Maximum aggregate amount of annual dividends which the Company may pay before certain financial metrics must be met | $ 20,000 | ||
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% | ||
Letters of credit | |||
Debt | |||
Commitment fee (as a percent) | 1.50% |
Debt - Overdraft Facilities (De
Debt - Overdraft Facilities (Details) - Sep. 30, 2018 € in Thousands, £ in Thousands, SFr in Thousands, $ in Thousands | EUR (€) | GBP (£) | CHF (SFr) | USD ($) |
Haynes International Ltd. overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | £ 1,700 | $ 2,215 | ||
Available borrowing capacity | £ 1,700 | 2,215 | ||
Haynes International S.A.R.L. overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | € 240 | 278 | ||
Available borrowing capacity | € 240 | 278 | ||
Haynes International AG overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | SFr 400 | 407 | ||
Available borrowing capacity | SFr 400 | $ 407 |
Pension Plan and Retirement B_2
Pension Plan and Retirement Benefits - Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
401(k) | |||
Defined Contribution Plans | |||
Expenses associated with plan | $ 1,811 | $ 1,590 | $ 1,652 |
401(k) | Employees with exceptions | |||
Defined Contribution Plans | |||
Percentage employer matches of the employee's percentage contribution matched. | 50.00% | ||
401(k) | Employees with exceptions | Maximum | |||
Defined Contribution Plans | |||
Percentage of employees' gross pay for which the employer contributes a matching contribution | 3.00% | ||
401(k) | Certain employees not eligible for U.S. pension plan | |||
Defined Contribution Plans | |||
Percentage employer matches of the employee's percentage contribution matched. | 60.00% | ||
401(k) | Certain employees not eligible for U.S. pension plan | Maximum | |||
Defined Contribution Plans | |||
Percentage of employees' gross pay for which the employer contributes a matching contribution | 6.00% | ||
Profit sharing plans | |||
Defined Contribution Plans | |||
Expenses associated with plan | $ 0 | $ 0 | $ 0 |
Pension Plan and Retirement B_3
Pension Plan and Retirement Benefits - Defined Benefit Plans - Expense (Details) - USD ($) $ in Thousands | Jan. 01, 2007 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Pension Plan and Retirement Benefits | ||||
Accrued pension and postretirement benefits | $ 164,736 | $ 204,910 | ||
Defined Benefit Pension Plans | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 6,464 | 14,515 | $ 11,396 | |
Accrued pension and postretirement benefits | 56,007 | 86,709 | ||
Contribution to plan | 8,782 | 6,804 | ||
Pension Plans Defined Benefit Us [Member] | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 8,000 | 6,000 | 6,000 | |
Pension Plans Defined Benefit Non Us [Member] | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 782 | 804 | 778 | |
Non-qualified pension plan | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 34 | 19 | 91 | |
Accrued pension and postretirement benefits | 716 | 777 | ||
Postretirement Health Care Benefits | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 7,646 | 8,920 | $ 7,652 | |
Accrued pension and postretirement benefits | 108,013 | 117,424 | ||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | |||
Contribution to plan | $ 3,663 | $ 4,263 |
Pension Plan and Retirement B_4
Pension Plan and Retirement Benefits - Defined Benefit Plans - Status (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)person | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Defined Benefit Pension Plans | ||||
Change in Benefit Obligation: | ||||
Number of employees that had benefits transferred to a third-party insurance company | person | 397 | |||
Projected benefit obligation at beginning of year | $ 310,803 | $ 337,338 | ||
Service cost | 5,536 | 6,282 | $ 4,080 | |
Interest cost | 10,801 | 10,577 | 12,050 | |
Actuarial losses (gains) | (19,756) | (27,246) | ||
Benefits paid | (14,178) | (14,682) | ||
Transfer to third-party insurance company | (13,576) | |||
Administrative expenses | (1,350) | (1,466) | ||
Projected benefit obligation at end of year | $ 278,280 | 278,280 | 310,803 | 337,338 |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of year | 224,094 | 207,963 | ||
Actual return on assets | 18,501 | 25,475 | ||
Contribution to plan | 8,782 | 6,804 | ||
Benefits paid | (14,178) | (14,682) | ||
Transfer of third-party insurance company | (13,576) | |||
Administrative expenses | (1,350) | (1,466) | ||
Fair value of plan assets at end of year | 222,273 | 222,273 | 224,094 | 207,963 |
Funded Status of Plan: | ||||
Unfunded status | (56,007) | (56,007) | (86,709) | |
Postretirement Health Care Benefits | ||||
Change in Benefit Obligation: | ||||
Projected benefit obligation at beginning of year | 117,424 | 125,117 | ||
Service cost | 336 | 350 | 232 | |
Interest cost | 4,311 | 4,292 | 4,595 | |
Actuarial losses (gains) | (10,395) | (8,072) | ||
Benefits paid | (3,663) | (4,263) | ||
Projected benefit obligation at end of year | 108,013 | 108,013 | 117,424 | $ 125,117 |
Change in Plan Assets: | ||||
Contribution to plan | 3,663 | 4,263 | ||
Benefits paid | (3,663) | (4,263) | ||
Funded Status of Plan: | ||||
Unfunded status | $ (108,013) | $ (108,013) | $ (117,424) |
Pension Plan and Retirement B_5
Pension Plan and Retirement Benefits - Defined Benefit Plans - Recognized in BS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accrued pension and postretirement benefits: | ||
Current | $ (5,095) | $ (5,095) |
Non-current | (159,641) | (199,815) |
Accrued pension and postretirement benefits | (164,736) | (204,910) |
Accumulated other comprehensive loss: | ||
Net (gain) loss | 60,699 | 102,105 |
Prior service cost | 1,839 | 2,213 |
Total accumulated other comprehensive loss | 62,538 | 104,318 |
Amounts expected to be recognized from AOCI into the statement of operations in the following year: | ||
Amortization of net loss | 2,951 | 7,909 |
Amortization of prior service cost | 205 | 374 |
Total | 3,156 | 8,283 |
Accumulated benefit obligation | 269,386 | 299,197 |
Defined Benefit Pension Plans | ||
Accrued pension and postretirement benefits: | ||
Non-current | (56,007) | (86,709) |
Accrued pension and postretirement benefits | (56,007) | (86,709) |
Accumulated other comprehensive loss: | ||
Net (gain) loss | 38,808 | 66,819 |
Prior service cost | 1,839 | 2,213 |
Total accumulated other comprehensive loss | 40,647 | 69,032 |
Amounts expected to be recognized from AOCI into the statement of operations in the following year: | ||
Amortization of net loss | 1,464 | 4,910 |
Amortization of prior service cost | 205 | 374 |
Total | 1,669 | 5,284 |
Defined Benefit Pension Plans | Other assets | ||
Accrued pension and postretirement benefits: | ||
Noncurrent assets | 5,444 | 3,566 |
Non-current | (61,451) | (90,275) |
Postretirement Health Care Benefits | ||
Accrued pension and postretirement benefits: | ||
Current | (5,000) | (5,000) |
Non-current | (103,013) | (112,424) |
Accrued pension and postretirement benefits | (108,013) | (117,424) |
Accumulated other comprehensive loss: | ||
Net (gain) loss | 21,891 | 35,286 |
Total accumulated other comprehensive loss | 21,891 | 35,286 |
Amounts expected to be recognized from AOCI into the statement of operations in the following year: | ||
Amortization of net loss | 1,487 | 2,999 |
Total | 1,487 | 2,999 |
Non-qualified pension plan | ||
Accrued pension and postretirement benefits: | ||
Current | (95) | (95) |
Non-current | (621) | (682) |
Accrued pension and postretirement benefits | $ (716) | $ (777) |
Pension Plan and Retirement B_6
Pension Plan and Retirement Benefits - Defined Benefit Plans - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Pension Plans | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||
Service cost | $ 5,536 | $ 6,282 | $ 4,080 |
Interest cost | 10,801 | 10,577 | 12,050 |
Expected return | (15,157) | (14,419) | (14,380) |
Amortization of prior service cost | 374 | 808 | 808 |
Recognized actuarial loss | 4,910 | 11,267 | 8,838 |
Net periodic benefit cost | 6,464 | 14,515 | 11,396 |
Postretirement Health Care Benefits | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||
Service cost | 336 | 350 | 232 |
Interest cost | 4,311 | 4,292 | 4,595 |
Recognized actuarial loss | 2,999 | 4,278 | 2,825 |
Net periodic benefit cost | $ 7,646 | $ 8,920 | $ 7,652 |
Pension Plan and Retirement B_7
Pension Plan and Retirement Benefits - Benefit Obligation Assumptions (Details) - USD ($) $ in Thousands | Jan. 01, 2007 | Sep. 30, 2018 | Sep. 30, 2017 |
Pension Plans Defined Benefit Us [Member] | |||
Assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 4.00% | 3.63% | |
Rate of compensation increase (as a percent) | 2.50% | 2.50% | |
Pension Plans Defined Benefit Non Us [Member] | |||
Assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 2.80% | 2.50% | |
Postretirement Health Care Benefits | |||
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% | ||
Effect of one percentage point change in assumed health care cost trend rates | |||
Effect on total of service and interest cost components of one percent increase | $ 0 | ||
Effect on total of service and interest cost components of one percent decrease | 0 | ||
Effect on accumulated postretirement benefit obligation of one percent increase | 0 | ||
Effect on accumulated postretirement benefit obligation of one percent decrease | $ 0 | ||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | ||
Assumptions used to determine benefit obligation | |||
Discount rate (as a percent) | 4.13% | 3.75% | |
Postretirement Health Care Benefits | Minimum | |||
Assumptions relating to health care cost trend rates | |||
Employee age required to participate in the plan | 65 years | ||
Postretirement Health Care Benefits | Maximum | |||
Assumptions relating to health care cost trend rates | |||
Employee age required to participate in the plan | 65 years | ||
Postretirement Health Care Benefits | Under 65 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 Benefits | Over 65 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% |
Pension Plan and Retirement B_8
Pension Plan and Retirement Benefits - Cost Assumptions (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Postretirement Health Care Benefits | |||
Assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 3.75% | 3.50% | 4.25% |
Pension Plans Defined Benefit Us [Member] | |||
Assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 3.63% | 3.25% | 4.00% |
Expected return on plan assets (as a percent) | 7.25% | 7.50% | 7.50% |
Rate of compensation increase (as a percent) | 2.50% | 3.50% | 3.50% |
Pension Plans Defined Benefit Non Us [Member] | |||
Assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 2.50% | 2.30% | 3.70% |
Expected return on plan assets (as a percent) | 3.30% | 2.70% | 4.10% |
Pension Plan and Retirement B_9
Pension Plan and Retirement Benefits - Plan Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Pension Plans | |||
Asset allocation | |||
Total pension plan assets | $ 222,273 | $ 224,094 | $ 207,963 |
Defined Benefit Pension Plans | NAV | |||
Asset allocation | |||
Total pension plan assets | 222,273 | 224,094 | |
Pension Plans Defined Benefit Us [Member] | |||
Asset allocation | |||
Total pension plan assets | 201,896 | 204,257 | |
Pension Plans Defined Benefit Us [Member] | U.S. common stock mutual funds | |||
Asset allocation | |||
Total pension plan assets | 72,947 | 73,430 | |
Pension Plans Defined Benefit Us [Member] | Bonds | |||
Asset allocation | |||
Total pension plan assets | 80,250 | 81,702 | |
Pension Plans Defined Benefit Us [Member] | U.S. common stock | |||
Asset allocation | |||
Total pension plan assets | 32,547 | 32,784 | |
Pension Plans Defined Benefit Us [Member] | International equity | |||
Asset allocation | |||
Total pension plan assets | 16,152 | 16,341 | |
Pension Plans Defined Benefit Us [Member] | NAV | |||
Asset allocation | |||
Total pension plan assets | 201,896 | 204,257 | |
Pension Plans Defined Benefit Us [Member] | NAV | U.S. common stock mutual funds | |||
Asset allocation | |||
Total pension plan assets | 72,947 | 73,430 | |
Pension Plans Defined Benefit Us [Member] | NAV | Bonds | |||
Asset allocation | |||
Total pension plan assets | 80,250 | 81,702 | |
Pension Plans Defined Benefit Us [Member] | NAV | U.S. common stock | |||
Asset allocation | |||
Total pension plan assets | 32,547 | 32,784 | |
Pension Plans Defined Benefit Us [Member] | NAV | International equity | |||
Asset allocation | |||
Total pension plan assets | 16,152 | 16,341 | |
Pension Plans Defined Benefit Non Us [Member] | |||
Asset allocation | |||
Total pension plan assets | 20,377 | 19,837 | |
Pension Plans Defined Benefit Non Us [Member] | Bonds | |||
Asset allocation | |||
Total pension plan assets | 9,781 | 7,750 | |
Pension Plans Defined Benefit Non Us [Member] | Equity | |||
Asset allocation | |||
Total pension plan assets | 8,150 | 8,913 | |
Pension Plans Defined Benefit Non Us [Member] | Other | |||
Asset allocation | |||
Total pension plan assets | 2,446 | 3,174 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | |||
Asset allocation | |||
Total pension plan assets | 20,377 | 19,837 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Bonds | |||
Asset allocation | |||
Total pension plan assets | 9,781 | 7,750 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Equity | |||
Asset allocation | |||
Total pension plan assets | 8,150 | 8,913 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Other | |||
Asset allocation | |||
Total pension plan assets | $ 2,446 | $ 3,174 |
Pension Plan and Retirement _10
Pension Plan and Retirement Benefits - Investment Strategy (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Plans Defined Benefit Us [Member] | |||
Asset allocation | |||
Plan's return on assets assumption (as a percent) | 7.25% | 7.50% | 7.50% |
Pension Plans Defined Benefit Us [Member] | Minimum | |||
Asset allocation | |||
Equity risk premium above broad bond market yields (as a percent) | 3.00% | ||
Broad bond market yields (as a percent) | 4.00% | ||
Pension Plans Defined Benefit Us [Member] | Maximum | |||
Asset allocation | |||
Equity risk premium above broad bond market yields (as a percent) | 4.00% | ||
Broad bond market yields (as a percent) | 6.00% | ||
Amount of adjustment to target allocation (as a percent) | 10.00% | ||
Pension Plans Defined Benefit Us [Member] | Equity | |||
Asset allocation | |||
Target plan asset allocation (as a percent) | 60.00% | ||
Pension Plans Defined Benefit Us [Member] | Fixed Income | |||
Asset allocation | |||
Target plan asset allocation (as a percent) | 40.00% | ||
Pension Plans Defined Benefit Non Us [Member] | |||
Asset allocation | |||
Plan's return on assets assumption (as a percent) | 3.30% | 2.70% | 4.10% |
Pension Plan and Retirement _11
Pension Plan and Retirement Benefits - Expected benefit payments (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Defined Benefit Pension Plans | |
Expected benefit payments | |
2,019 | $ 14,226 |
2,020 | 14,768 |
2,021 | 15,251 |
2,022 | 15,790 |
2,023 | 16,243 |
2024-2028 (in total) | 85,854 |
Postretirement Health Care Benefits | |
Expected benefit payments | |
2,019 | 5,000 |
2,020 | 5,000 |
2,021 | 5,000 |
2,022 | 5,000 |
2,023 | 5,000 |
2024-2028 (in total) | $ 25,000 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments | |||
Lease term | 10 years | ||
Rent expense | $ 3,892 | $ 4,082 | $ 3,726 |
Income from sub-lease rentals | 156 | $ 153 | $ 120 |
Future minimum rental commitments under non-cancelable operating leases | |||
2,019 | 2,681 | ||
2,020 | 1,401 | ||
2,021 | 313 | ||
2,022 | 115 | ||
2,023 | 17 | ||
Total | 4,527 | ||
Minimum sub-lease rentals due in the future | $ 78 |
Legal, Environmental and Othe_3
Legal, Environmental and Other Contingencies - Schedule of Maturities (Details) $ in Thousands | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Feb. 11, 2016item |
Environmental post-closure monitoring and maintenance activities | $ 504 | $ 633 | |
Maturities of long-term obligations (discounted) | |||
Number of leaks reported in entity's chemical cleaning operations | item | 1 | ||
Long Term Obligations | |||
Maturities of long-term obligations (discounted) | |||
2,020 | 52 | ||
2,021 | 59 | ||
2,022 | 49 | ||
2,023 | 48 | ||
2024 and thereafter | 241 | ||
Long-term obligations (less current portion) | 449 | ||
Pending litigation | |||
Environmental post-closure monitoring and maintenance activities | $ 504 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 01, 2016 | Feb. 23, 2009 | |
Restricted Stock | 2009 Restricted Stock Plan | |||||
Stock-Based Compensation | |||||
Number of shares authorized under the plan | 400,000 | ||||
Restricted stock plan activity, number of shares | |||||
Unvested at beginning of the period (in shares) | 107,210 | ||||
Granted (in shares) | 37,750 | ||||
Forfeited / Canceled (in shares) | (36,092) | ||||
Vested (in shares) | (26,875) | ||||
Unvested at end of the period (in shares) | 81,993 | 107,210 | |||
Expected to vest (in shares) | 68,638 | ||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Unvested at beginning of the period (in dollars per share) | $ 41.36 | ||||
Granted (in dollars per share) | 33.29 | ||||
Forfeited / Canceled (in dollars per share) | 39.83 | ||||
Vested (in dollars per share) | 44.51 | ||||
Unvested at end of the period (in dollars per share) | 37.28 | $ 41.36 | |||
Expected to vest (in dollars per share) | $ 37.19 | ||||
Restricted stock plan activity, other disclosures | |||||
Compensation expense | $ 836 | $ 1,340 | $ 1,466 | ||
Remaining unrecognized compensation expense | $ 890 | ||||
Weighted average period for recognition | 8 months 9 days | ||||
Restricted Stock | 2009 Restricted Stock Plan | Employees | |||||
Restricted stock plan activity, other disclosures | |||||
Repurchase of stock from employees (in shares) | 6,937 | ||||
Average purchase price (in dollars per share) | $ 32.23 | ||||
Restricted Stock | 2016 Restricted Stock Plan | |||||
Restricted stock plan activity, number of shares | |||||
Granted (in shares) | 16,550 | ||||
Unvested at end of the period (in shares) | 16,550 | ||||
Expected to vest (in shares) | 16,550 | ||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | |||||
Granted (in dollars per share) | $ 31.76 | ||||
Unvested at end of the period (in dollars per share) | 31.76 | ||||
Expected to vest (in dollars per share) | $ 31.76 | ||||
Restricted stock plan activity, other disclosures | |||||
Compensation expense | $ 438 | $ 0 | |||
Remaining unrecognized compensation expense | $ 88 | ||||
Weighted average period for recognition | 2 months 1 day | ||||
Restricted Stock, Restricted Stock Units and Performance Shares | |||||
Stock-Based Compensation | |||||
Number of shares authorized under the plan | 275,000 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares and Stock Option Plans (Details) $ / shares in Units, $ in Thousands | Sep. 17, 2018$ / shares | Jun. 01, 2018$ / shares | Nov. 21, 2017$ / sharesshares | Nov. 22, 2016$ / sharesshares | Nov. 24, 2015$ / shares | Sep. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018shares | Sep. 30, 2018USD ($)plan$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | 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 | 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 | $ 11.03 | $ 13.92 | $ 9.74 | $ 11.50 | $ 8.37 | ||||||
Dividend Yield (as a percent) | 2.55% | 2.07% | 2.77% | 2.15% | 2.33% | ||||||
Risk-Free Interest Rate (as a percent) | 2.89% | 2.68% | 2.06% | 1.79% | 1.70% | ||||||
Expected Volatility (as a percent) | 40.00% | 41.00% | 42.00% | 37.00% | 30.00% | ||||||
Expected Life | 5 years | 5 years | 5 years | 5 years | 5 years | ||||||
Stock-based employee compensation expense | $ | $ 546 | $ 433 | $ 514 | ||||||||
Remaining unrecognized compensation expense | $ | $ 666 | $ 666 | |||||||||
Weighted average period for recognition | 9 months 29 days | ||||||||||
Activity under stock option plans, number of shares | |||||||||||
Outstanding at beginning of the period (in shares) | 425,326 | ||||||||||
Granted (in shares) | 77,550 | ||||||||||
Canceled (in shares) | (92,201) | ||||||||||
Outstanding at end of the period (in shares) | 410,675 | 410,675 | 425,326 | ||||||||
Vested or expected to vest (in shares) | 376,160 | 376,160 | |||||||||
Exercisable at end of period (in shares) | 316,775 | 316,775 | |||||||||
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 373 | $ 373 | |||||||||
Vested or expected to vest, Aggregate Intrinsic Value | $ | 366 | 366 | |||||||||
Exercisable at end of the period, Aggregate Intrinsic Value | $ | $ 232 | $ 232 | |||||||||
Weighted Average Exercise Prices | |||||||||||
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 44.93 | ||||||||||
Granted (in dollars per share) | $ / shares | 34.08 | ||||||||||
Exercised (in dollars per share) | $ / shares | 0 | ||||||||||
Canceled (in dollars per share) | $ / shares | 45.64 | ||||||||||
Outstanding at end of period (in dollars per share) | $ / shares | $ 42.72 | 42.72 | $ 44.93 | ||||||||
Vested or expected to vest (in dollars per share) | $ / shares | 42.58 | 42.58 | |||||||||
Exercisable at end of the period (in dollars per share) | $ / shares | $ 44.51 | $ 44.51 | |||||||||
Outstanding at end of the period, Weighted Average Remaining Contractual Life | 5 years 8 months 19 days | ||||||||||
Vested or expected to vest, Weighted Average Remaining Contractual Life | 5 years 8 months 9 days | ||||||||||
Exercisable at end of the period, Weighted Average Remaining Contractual Life | 4 years 9 months 26 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 | 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 | 500,000 | |||||||||
Stock Options and Stock Appreciation Rights | |||||||||||
Information relating to stock options | |||||||||||
Number of shares authorized | 425,000 | ||||||||||
Performance Shares | |||||||||||
Activity under stock option plans, number of shares | |||||||||||
Forfeited (in share) | 1,546 | 11,910 | |||||||||
Performance Shares | Certain Employees | |||||||||||
Information relating to stock options | |||||||||||
Number of shares authorized | 24,800 | 19,000 | |||||||||
Award vesting period | 3 years | 3 years | |||||||||
Fair value assumptions | |||||||||||
Stock-based employee compensation expense | $ | $ 500 | $ 336 | |||||||||
Remaining unrecognized compensation expense | $ | $ 661 | $ 661 | |||||||||
Weighted average period for recognition | 1 year 5 months 12 days | ||||||||||
Weighted Average Exercise Prices | |||||||||||
Granted (in dollars per share) | $ / shares | $ 38.43 | $ 60.09 |
Quarterly Data (unaudited) (Det
Quarterly Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Data (unaudited) | |||||||||||
Net revenues | $ 122,313 | $ 113,114 | $ 110,206 | $ 89,693 | $ 100,765 | $ 97,977 | $ 103,112 | $ 93,355 | $ 435,326 | $ 395,209 | $ 406,359 |
Gross profit | 15,946 | 13,270 | 11,452 | 7,010 | 5,773 | 3,662 | 9,788 | 10,487 | 47,678 | 29,710 | 47,580 |
Net income (loss) | $ 2,130 | $ 713 | $ (2,068) | $ (22,526) | $ (3,661) | $ (3,967) | $ (1,890) | $ (672) | $ (21,751) | $ (10,190) | $ 5,020 |
Net income (loss) per share: | |||||||||||
Basic (in dollars per share) | $ 0.17 | $ 0.06 | $ (0.17) | $ (1.82) | $ (0.30) | $ (0.32) | $ (0.15) | $ (0.06) | $ (1.75) | $ (0.83) | $ 0.40 |
Diluted (in dollars per share) | $ 0.17 | $ 0.06 | $ (0.17) | $ (1.82) | $ (0.30) | $ (0.32) | $ (0.15) | $ (0.06) | $ (1.75) | $ (0.83) | $ 0.40 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting | |||||||||||
Number of Business Segment | segment | 1 | ||||||||||
Net revenues | $ 122,313 | $ 113,114 | $ 110,206 | $ 89,693 | $ 100,765 | $ 97,977 | $ 103,112 | $ 93,355 | $ 435,326 | $ 395,209 | $ 406,359 |
Long-lived assets | 179,400 | 192,556 | 179,400 | 192,556 | |||||||
High-temperature resistant alloys | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 352,614 | 320,119 | 329,151 | ||||||||
Corrosive-resistant alloys | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 82,712 | 75,090 | 77,208 | ||||||||
U.S. pension plan | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 258,275 | 235,500 | 233,612 | ||||||||
Long-lived assets | 172,689 | 185,413 | 172,689 | 185,413 | |||||||
Europe | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 113,967 | 98,096 | 101,853 | ||||||||
Long-lived assets | 6,522 | 6,879 | 6,522 | 6,879 | |||||||
China | |||||||||||
Segment Reporting | |||||||||||
Net revenues | 24,640 | 18,997 | 13,808 | ||||||||
Long-lived assets | $ 189 | $ 264 | 189 | 264 | |||||||
Other | |||||||||||
Segment Reporting | |||||||||||
Net revenues | $ 38,444 | $ 42,616 | $ 57,086 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 620 | $ 402 | $ 869 |
Charges (credits) to Expense | 688 | 228 | (156) |
Deductions | (178) | (10) | (311) |
Balance at End of Period | $ 1,130 | $ 620 | $ 402 |
Deferred Revenue (Details)
Deferred Revenue (Details) - Conversion Services Agreement $ in Thousands, lb in Millions | Nov. 17, 2006USD ($)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 |
Liquidated damages | $ 25,000 |
Revenue recognition period | 20 years |
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) - Fair value measurements on recurring basis - Total - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Assets: | ||
Total fair value | $ 222,273 | $ 224,094 |
Defined Benefit Pension Plans | ||
Assets: | ||
Total fair value | 222,273 | 224,094 |
NAV | ||
Assets: | ||
Total fair value | 222,273 | 224,094 |
NAV | Defined Benefit Pension Plans | ||
Assets: | ||
Total fair value | $ 222,273 | $ 224,094 |
Comprehensive Income (Loss) a_3
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Comprehensive Income (Loss) | |||||||||||
Net income (loss) | $ 2,130 | $ 713 | $ (2,068) | $ (22,526) | $ (3,661) | $ (3,967) | $ (1,890) | $ (672) | $ (21,751) | $ (10,190) | $ 5,020 |
Other comprehensive income (loss), Pre-tax | 39,879 | 64,931 | (37,771) | ||||||||
Other comprehensive income (loss), Tax | (9,750) | (23,102) | 11,201 | ||||||||
Other comprehensive income (loss) | 30,129 | 41,829 | (26,570) | ||||||||
Comprehensive income (loss) | 8,378 | 31,639 | (21,550) | ||||||||
Pension and postretirement: Net gain (loss) arising during period | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | 33,518 | 46,401 | (18,299) | ||||||||
Other comprehensive income (loss), Tax | (7,576) | (17,095) | 6,609 | ||||||||
Other comprehensive income (loss) | 25,942 | 29,306 | (11,690) | ||||||||
Pension and postretirement: Less: amortization of prior service cost | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | 374 | 808 | (808) | ||||||||
Other comprehensive income (loss), Tax | (99) | (298) | 299 | ||||||||
Other comprehensive income (loss) | 275 | 510 | (509) | ||||||||
Pension and postretirement: Less: amortization of gain (loss) | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | 7,887 | 15,517 | (11,663) | ||||||||
Other comprehensive income (loss), Tax | (2,075) | (5,709) | 4,293 | ||||||||
Other comprehensive income (loss) | 5,812 | 9,808 | (7,370) | ||||||||
Accumulated Translation Adjustment | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Other comprehensive income (loss), Pre-tax | (1,900) | 2,205 | (7,001) | ||||||||
Other comprehensive income (loss) | $ (1,900) | $ 2,205 | $ (7,001) |
Comprehensive Income (Loss) a_4
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated other comprehensive income (loss) | |||
Balance | $ 333,772 | $ 311,299 | $ 341,989 |
Other comprehensive income (loss) | 30,129 | 41,829 | (26,570) |
Balance | 333,220 | 333,772 | 311,299 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss) | |||
Balance | (72,694) | (114,523) | (87,953) |
Other comprehensive income (loss) before reclassifications | 24,042 | 31,511 | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (2,174) | (6,007) | |
Other comprehensive income (loss) | 30,129 | 41,829 | (26,570) |
Balance | (42,565) | (72,694) | (114,523) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | |||
Accumulated other comprehensive income (loss) | |||
Balance | (43,012) | (74,742) | |
Other comprehensive income (loss) before reclassifications | 17,658 | 24,109 | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (1,381) | (4,426) | |
Other comprehensive income (loss) | 21,539 | 31,730 | |
Balance | (21,473) | (43,012) | (74,742) |
Accumulated Defined Benefit Plans Adjustment | Postretirement Health Care Benefits | |||
Accumulated other comprehensive income (loss) | |||
Balance | (21,691) | (29,585) | |
Other comprehensive income (loss) before reclassifications | 8,284 | 5,197 | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (793) | (1,581) | |
Other comprehensive income (loss) | 10,490 | 7,894 | |
Balance | (11,201) | (21,691) | (29,585) |
Pension and postretirement: Less: amortization of prior service cost | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 374 | 808 | |
Other comprehensive income (loss) | 275 | 510 | (509) |
Pension and postretirement: Less: amortization of prior service cost | Defined Benefit Pension Plans | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 374 | 808 | |
Pension and postretirement: Less: amortization of gain (loss) | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 7,887 | 15,517 | |
Other comprehensive income (loss) | 5,812 | 9,808 | (7,370) |
Pension and postretirement: Less: amortization of gain (loss) | Defined Benefit Pension Plans | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 4,888 | 11,239 | |
Pension and postretirement: Less: amortization of gain (loss) | Postretirement Health Care Benefits | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 2,999 | 4,278 | |
Accumulated Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Balance | (7,991) | (10,196) | |
Other comprehensive income (loss) before reclassifications | (1,900) | 2,205 | |
Other comprehensive income (loss) | (1,900) | 2,205 | (7,001) |
Balance | $ (9,891) | $ (7,991) | $ (10,196) |
Long-term Obligation - Buildout
Long-term Obligation - Buildout of facility (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Sep. 30, 2018 |
Capital lease | ||
Lease term | 20 years | |
Property Plant And Equipment | ||
Construction costs related to buildout of the facility | ||
Build out of facility | $ 4,100 |
Long-term Obligations - Minimum
Long-term Obligations - Minimum Lease Rental Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Future minimum lease rental payments | ||
2,019 | $ 989 | |
2,020 | 994 | |
2,021 | 1,001 | |
2,022 | 1,012 | |
2,023 | 1,024 | |
Thereafter | 12,572 | |
Total minimum lease payments | 17,592 | |
Less amounts representing interest | (9,466) | |
Present value of net minimum lease payments | 8,126 | |
Less current obligation | (147) | $ (926) |
Total long term lease obligation | 7,979 | |
Long-term obligations (less current portion) | ||
Capital lease rental payments | 4,207 | 4,275 |
Finance lease rental payments | 3,920 | 4,017 |
Environmental post-closure monitoring and maintenance activities | 504 | 633 |
Deferred dividends | 14 | |
Less amounts due within one year | (202) | (1,029) |
Long-term obligations (less current portion) | $ 8,443 | $ 7,896 |
Foreign Currency Forward Cont_3
Foreign Currency Forward Contracts (Details) - Selling, General and Administrative Expenses - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2018 | |
Foreign currency balance sheet hedging | ||
Foreign currency net gain (loss) | $ (507) | |
Foreign Currency Transaction | ||
Foreign currency balance sheet hedging | ||
Foreign currency net gain (loss) | $ (643) | 411 |
Foreign Exchange Forward | ||
Foreign currency balance sheet hedging | ||
Foreign currency net gain (loss) | $ (918) |