Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 31, 2017 | Mar. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SIFCO INDUSTRIES INC | ||
Entity Central Index Key | 90,168 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | Smaller Reporting Company | ||
Entity Public Float | $ 23,542,755 | ||
Entity Common Stock, Shares Outstanding | 5,595,779 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 121,458,000 | $ 119,121,000 |
Cost of goods sold | 108,094,000 | 107,039,000 |
Gross profit | 13,364,000 | 12,082,000 |
Selling, general and administrative expenses | 17,773,000 | 17,359,000 |
Goodwill impairment | 0 | 4,164,000 |
Amortization of intangible assets | 2,168,000 | 2,593,000 |
Loss on disposal or impairment of operating assets | 4,957,000 | 31,000 |
Operating loss | (11,534,000) | (12,065,000) |
Interest income | (56,000) | (51,000) |
Interest expense | 2,208,000 | 1,715,000 |
Foreign currency exchange loss, net | 47,000 | 33,000 |
Other income, net | (593,000) | (429,000) |
Loss from operations before income tax expense (benefit) | (13,140,000) | (13,333,000) |
Income tax expense (benefit) | 1,069,000 | (1,998,000) |
Net loss | $ (14,209,000) | $ (11,335,000) |
Net loss per share: | ||
Basic (in dollars per share) | $ (2.59) | $ (2.07) |
Diluted (in dollars per share) | $ (2.59) | $ (2.07) |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||
Weighted-average number of common shares (basic) (in shares) | 5,487 | 5,475 |
Weighted-average number of common shares (diluted) (in shares) | 5,487 | 5,475 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (14,209) | $ (11,335) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment, net of tax $0 and $0, respectively | 1,016 | 108 |
Retirement plan liability adjustment, net of tax $0 and $0, respectively | 2,549 | (940) |
Interest rate swap agreement adjustment, net of tax $0 and $0, respectively | 34 | (30) |
Comprehensive loss | $ (10,610) | $ (12,197) |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment tax | $ 0 | $ 0 |
Retirement plan liability adjustment tax | 0 | 0 |
Interest rate swap agreement adjustment tax | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,399 | $ 471 |
Receivables, net of allowance for doubtful accounts of $330 and $706, respectively | 25,894 | 25,158 |
Inventories, net | 20,381 | 28,496 |
Refundable income taxes | 292 | 1,773 |
Prepaid expenses and other current assets | 1,644 | 2,177 |
Current assets of business held for sale | 2,524 | 0 |
Total current assets | 52,134 | 58,075 |
Property, plant and equipment, net | 39,508 | 48,958 |
Intangible assets, net | 6,814 | 11,138 |
Goodwill | 12,170 | 11,748 |
Other assets | 261 | 538 |
Total assets | 110,887 | 130,457 |
Current liabilities: | ||
Current maturities of long-term debt | 7,560 | 18,258 |
Revolver | 18,557 | 12,751 |
Accounts payable | 12,817 | 14,520 |
Accrued liabilities | 6,791 | 5,234 |
Total current liabilities | 45,725 | 50,763 |
Long-term debt, net of current maturities | 5,151 | 7,623 |
Deferred income taxes | 3,266 | 2,929 |
Pension liability | 6,184 | 8,341 |
Other long-term liabilities | 430 | 431 |
Shareholders’ equity: | ||
Serial preferred shares, no par value, authorized 1,000 shares | 0 | 0 |
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares – 5,596 at September 30, 2017 and 5,525 at September 30, 2016 | 5,596 | 5,525 |
Additional paid-in capital | 9,519 | 9,219 |
Retained earnings | 44,267 | 58,476 |
Accumulated other comprehensive loss | (9,251) | (12,850) |
Total shareholders’ equity | 50,131 | 60,370 |
Total liabilities and shareholders’ equity | $ 110,887 | $ 130,457 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Doubtful Accounts | $ 330 | $ 706 |
Serial preferred shares, no par value (in dollars per share) | ||
Serial preferred shares, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common shares, shares issued (in shares) | 5,596,000 | 5,525,000 |
Common shares, shares outstanding (in shares) | 5,596,000 | 5,525,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (14,209,000) | $ (11,335,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 9,988,000 | 10,766,000 |
Amortization and write-off of debt issuance costs | 519,000 | 145,000 |
Loss on disposal of operating assets or impairment of operating assets | 4,957,000 | 31,000 |
LIFO expense (income) | 293,000 | (482,000) |
Share transactions under employee stock plan | 371,000 | (502,000) |
Deferred income taxes | 228,000 | 850,000 |
Purchase price inventory adjustment | 0 | 266,000 |
Other | 0 | (101,000) |
Goodwill impairment | 0 | 4,164,000 |
Other long-term liabilities | 408,000 | 605,000 |
Changes in operating assets and liabilities, net of acquisition: | ||
Receivables | (294,000) | 10,892,000 |
Inventories | 8,093,000 | (314,000) |
Refundable income taxes | 1,482,000 | 743,000 |
Prepaid expenses and other current assets | 1,493,000 | (572,000) |
Other assets | (433,000) | (76,000) |
Accounts payable | (2,315,000) | 424,000 |
Accrued liabilities | 1,414,000 | (3,223,000) |
Net cash provided by operating activities | 11,995,000 | 12,281,000 |
Cash flows from investing activities: | ||
Acquisition of business | 0 | 275,000 |
Proceeds from disposal of property, plant and equipment | 70,000 | 0 |
Capital expenditures | (2,339,000) | (2,349,000) |
Net cash used for investing activities | (2,269,000) | (2,074,000) |
Cash flows from financing activities: | ||
Repayments of term note | (14,332,000) | (5,192,000) |
Proceeds from revolving credit agreement | 85,934,000 | 46,917,000 |
Repayments of revolving credit agreement | (80,128,000) | (50,667,000) |
Proceeds from short-term debt borrowings | 3,429,000 | 1,904,000 |
Repayments of short-term debt borrowings | (3,143,000) | (3,384,000) |
Payments for debt financing | (562,000) | 0 |
Net cash used for financing activities | (8,802,000) | (10,422,000) |
Increase (decrease) in cash and cash equivalents | 924,000 | (215,000) |
Cash and cash equivalents at beginning of year | 471,000 | 667,000 |
Effects of exchange rate changes on cash and cash equivalents | 4,000 | 19,000 |
Cash and cash equivalents at end of year | 1,399,000 | 471,000 |
Cash (paid) received during the year: | ||
Cash paid for interest | (1,564,000) | (1,420,000) |
Cash income tax refunds received, net | 1,343,000 | 2,897,000 |
Non-cash investing and financing activities: | ||
Capital expenditures funded by capital lease borrowings | 288,000 | 0 |
Additions to property, plant & equipment - incurred but not yet paid | $ 667,000 | $ 256,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Sep. 30, 2015 | $ 73,069 | $ 5,468 | $ 9,778 | $ 69,811 | $ (11,988) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (12,197) | (11,335) | (862) | ||
Performance and restricted share expense | (474) | (474) | |||
Share transactions under employee stock plans | (28) | 57 | (85) | ||
Ending Balance at Sep. 30, 2016 | 60,370 | 5,525 | 9,219 | 58,476 | (12,850) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (10,610) | (14,209) | 3,599 | ||
Performance and restricted share expense | 404 | 404 | |||
Share transactions under employee stock plans | (33) | 71 | (104) | ||
Ending Balance at Sep. 30, 2017 | $ 50,131 | $ 5,596 | $ 9,519 | $ 44,267 | $ (9,251) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A. DESCRIPTION OF BUSINESS SIFCO Industries, Inc. and its subsidiaries are engaged in the production of forgings and machined components primarily in the Aerospace and Energy ("A&E") market. The Company’s operations are conducted in a single business segment, "SIFCO" or the "Company." B. PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the consolidated statements of shareholders’ equity. C. CASH EQUIVALENTS The Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. A substantial majority of the Company’s cash and cash equivalent bank balances exceed federally insured limits as of September 30, 2017; however, were within federally insured limits at September 30, 2016. D. CONCENTRATIONS OF CREDIT RISK Receivables are presented net of allowance for doubtful accounts of $330 and $706 at September 30, 2017 and 2016, respectively. Accounts receivable outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible. During fiscal 2017 and 2016, $461 and $581 , respectively, of accounts receivable were written off against the allowance for doubtful accounts. Bad debt expense totaled $77 and $359 in fiscal 2017 and fiscal 2016, respectively. Most of the Company’s receivables represent trade receivables due from manufacturers of turbine engines and aircraft components as well as turbine engine overhaul companies located throughout the world, including a significant concentration of U.S. based companies. In fiscal 2017, 22% of the Company’s consolidated net sales were from two of its largest customers; and 35% of the Company's consolidated net sales were from the three largest customers and their direct subcontractors, which individually accounted for 13% , 11% and 11% , of consolidated net sales, respectively. In fiscal 2016, 21% of the Company’s consolidated net sales were from two of its largest customers; and 46% of the Company's consolidated net sales were from four of the largest customers and their direct subcontractors which individually accounted for 12% , 12% , 11% and 11% , of consolidated net sales, respectively. No other single customer or group represented greater than 10% of total net sales in fiscal 2017 and 2016. At September 30, 2017, one of the Company’s largest customers had outstanding net accounts receivable which individually accounted for 10% of the total net accounts receivable; and three of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 13% , 10% and 10% of total net accounts receivable, respectively. At September 30, 2016, two of the Company’s largest customers had outstanding net accounts receivable which accounted for 14% and 11% of total net accounts receivable; and four of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 15% , 13% , 12% and 11% of total, net receivables, respectively. The Company performs ongoing credit evaluations of its customers’ financial conditions. The Company believes its allowance for doubtful accounts is sufficient based on the credit exposures outstanding at September 30, 2017. E. INVENTORY VALUATION Inventories are stated at the lower of cost or market. For a portion of the Company's inventory, cost is determined using the last-in, first-out (“LIFO”) method. For approximately 38% and 44% of the Company’s inventories at September 30, 2017 and 2016, respectively, the LIFO method is used to value the Company’s inventories. The first-in, first-out (“FIFO”) method is used to value the remainder of the Company’s inventories. The Company maintains allowances for obsolete and excess inventory. The Company evaluates its allowances for obsolete and excess inventory each quarter, and requires at a minimum that reserves be established based on an analysis of the age of the inventory. In addition, if the Company identifies specific obsolescence, other than that identified by the aging criteria, an additional reserve will be recognized. Specific obsolescence and excess reserve requirements may arise due to technological or market changes, or based on cancellation of an order. The Company’s reserves for obsolete and excess inventory were $3,859 and $3,308 at September 30, 2017 and 2016, respectively. F. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost. Depreciation is generally computed using the straight-line method. Depreciation is provided in amounts sufficient to amortize the cost of the assets over their estimated useful lives. Depreciation provisions are based on estimated useful lives: (i) buildings, including building improvements - 5 to 40 years; (ii) machinery and equipment, including office and computer equipment - 3 to 20 years; (iii) software - 3 to 7 years (included in machinery and equipment); and (iv) leasehold improvements - remaining life or length of the lease (included in buildings). The Company's property, plant and equipment assets by major asset class at September 30 consist of: 2017 2016 Property, plant and equipment: Land $ 1,005 $ 979 Buildings 15,084 15,393 Machinery and equipment 75,080 82,665 Total property, plant and equipment 91,169 99,037 Accumulated depreciation 51,661 50,079 Property, plant and equipment, net $ 39,508 $ 48,958 The loss on disposal of operating assets is included as a separate line item in the accompanying consolidated statements of operations. Depreciation expense was $7,820 and $8,173 in fiscal 2017 and 2016, respectively. G. ASSET IMPAIRMENT The Company reviews the carrying value of its long-lived assets, including property, plant and equipment, when events and circumstances indicate a triggering event has occured. This review is performed using estimates of future undiscounted cash flows, which include proceeds from disposal of assets. If the carrying value of a long-lived asset is greater than the estimated undiscounted future cash flows, then the long-lived asset is considered impaired and an impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value. In the announcement made in the third quarter of fiscal 2017, the Company decided to close the Alliance, Ohio ("Alliance") plant and transfer future orders to the Cleveland, Ohio ("Cleveland") plant resulted in a triggering event, requiring an impairment analysis to be performed by the Company in accordance with Accounting Standard Codification ("ASC") 360 Property, Plant and Equipment . As required by ASC 360, an impairment loss shall be recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. The Company used May 31, 2017 as the triggering date to evaluate the carrying values and test for recoverability of the Alliance machinery and equipment, customer list and trade name as this was the date of when the decision to close Alliance was approved. The fair value of the assets was estimated using Level 2 and Level 3 inputs based on the orderly liquidation value as determined by a third party appraisal and undiscounted cash flows. As a result, the Company recorded asset impairment charges of $4,786 , which is labeled as asset impairment in the consolidated statements of operations included within loss on disposal or impairment of operating assets; $ 2,497 of the total impairment charge related to machinery and equipment and the remaining $2,289 related to intangible assets. The Company also impaired assets totaling $ 174 related to development of an ERP solution for one of its operating plants. There were no long-lived asset impairment charges in fiscal 2016. H. ASSETS HELD FOR SALE The Company’s Irish subsidiary sold its operating business in June 2007, but retained ownership of its Cork, Ireland facility. This property is subject to a lease arrangement with the acquirer of the business that expires in June 2027. Rental income is earned in quarterly installments of $103 . At September 30, 2017, the net carrying value of the property was $1,447 , which was reclassed to asset held for sale. At September 30, 2016, the carrying value of the property was $1,496 (accumulated depreciation of $1,437 ). Rental income of $413 was recognized in each of fiscal years 2017 and 2016, respectively, and is recorded in other income, net on the consolidated statements of operations. At June 30, 2017, the Company met the requirements of ASC 360 - asset held for sale classification for the Irish building. A formal plan was in place to sell the property in its current condition. At September 30, 2017, the Company had a buyer who agreed to specified terms. Refer to Note 8 Subsequent Events for further discussion. As such, the net book value of $1,447 represents a portion of the asset held for sale amount on the consolidated balance sheets as of September 30, 2017. No loss on sale of asset was recorded in the statement of operations under the loss on disposal or impairment of operating assets line due to the carrying amount of the property being less than the fair value less expected costs to sell. The remaining assets held for sale balance of $ 1,077 pertains to the Alliance building and certain machinery and equipment that meet the asset held for sale classification at September 30, 2017 due to the circumstances of the closure of Alliance and expected plan to sell. As previously stated, there was an initial impairment recorded within the consolidated statements of operations included within loss on disposal or impairment of operating assets for the Alliance assets that brought the fair value of the assets held for sale to its orderly liquidation value. Both the Irish property and the Alliance building and machinery and equipment are recorded as assets held for sale in the consolidated balance sheets. The Company expects to sell these assets within the next 12 months. I. GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the purchase price paid over the fair value of the net assets of an acquired business. Goodwill is subject to impairment testing if triggered in the interim, if not, on an annual basis. The Company has selected July 31 as the annual impairment testing date. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. Since the adoption of Accounting Standard Update ("ASU") 2017-04, Step 2 has been eliminated from the goodwill impairment test. The first step of the goodwill impairment test compares the fair value of a reporting unit (as defined) with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired. However, if the carrying amount exceeds the fair value, the Company should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit. See Note 3, Goodwill and Intangibles , of the consolidated financial statements for further discussion of the interim goodwill test performed as of May 31, 2017 for one of its reporting units and as of July 31, 2017 annual impairment test results. Intangible assets consist of identifiable intangibles acquired or recognized in the accounting for the acquisition of a business and include such items as a trade name, a non-compete agreement, below market lease, customer relationships and order backlog. Intangible assets are amortized over their useful lives ranging from one year to ten years . Identifiable intangible assets assessment for impairment is evaluated when events and circumstances warrant such a review, as noted within Note 1, Summary of Significant Accounting Policies - Asset Impairment . J. NET LOSS PER SHARE The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding. Due to the net loss for each reporting period, zero restricted shares are included because the effect would be anti-dilutive. The dilutive effect of the Company’s restricted shares and performance shares were as follows: September 30, 2017 2016 Net loss $ (14,209 ) $ (11,335 ) Weighted-average common shares outstanding (basic and diluted) 5,487 5,475 Net loss per share – basic and diluted: Net loss per share $ (2.59 ) $ (2.07 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 93 32 K. REVENUE RECOGNITION Revenue is generally recognized from the sale of products shipped when the title and risk of loss passes to the customer, which is generally at the time of shipment. Substantially all product sales are made pursuant to a firm, fixed-price purchase orders or supply agreement demand forecasts received from customers. Provisions for estimated returns and uncollectible accounts provisions are provided for in the same period as the related revenues are recorded and are principally based on historical results modified, as appropriate, by the most current information available. Due to uncertainties in the estimation process, it is possible that actual results may vary from the estimates. L. CAPITAL LEASE OBLIGATIONS Capital leases are accounted for as the acquisition of an asset and the commitment of an obligation by the lessee and as a sale or financing by the lessor. All other leases are accounted for as operating leases. M. IMPACT OF RECENTLY ADOPTED ACCOUNTING STANDARDS In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The Company performs Step 1 of the annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the fair value, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU must be applied prospectively and is effective for any annual and interim goodwill impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted the standard in its second quarter of fiscal 2017 and there was no impact to the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern," which is intended to define the Company's responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures, regardless of the Company's performance or financial position. In connection with preparing financial statements for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. The Company adopted this standard effective September 30, 2017 and there was no impact to the consolidated financial statements. N. IMPACT OF NEWLY ISSUED ACCOUNTING STANDARDS In May 2017, the FASB issued ASU 2017-09, which clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on October 1, 2018, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements and it does not plan to early adopt the ASU. In March 2017, the FASB issued ASU 2017-07, which relates to pension related costs that require an entity to report the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of the net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside of any subtotal of operating income. Additionally, only the service cost component will be eligible for capitalization in assets. The ASU is effective for October 1, 2018, early adoption is permitted and the ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the income statement and prospectively for the capitalization of the service cost component. The amendment allows for a practical expedient that permits an employer to use the amounts disclosed in its pension and other post-retirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company would need to disclose if the practical expedient was used. The Company is currently evaluating the impact it may have on its consolidated financial statements and it does not plan to early adopt the ASU. In January 2017, the FASB issued ASU 2017-01, Business Combinations, which clarified existing guidance on the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted and the guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted as of the beginning of the annual reporting period in which the ASU was issued. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 requiring 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 or restricted cash equivalents. Therefore, amounts generally described as restricted cash would be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating its plans regarding the adoption, but does not expect that this ASU would have a material impact to the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated financial statements together with evaluating the adoption date. In August 2016, the FASB issued ASU 2016-15, which amends certain cash flow issues which apply to all entities required to present a statement of cash flow. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated financial statements together with evaluating the adoption date. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes a number of changes meant to simplify and improve accounting for share-based payments. The ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has considered the potential implications of adoption of the ASU and due to the valuation allowance recorded at September 30, 2017 and September 30, 2016 in the U.S., the Company does not expect a material impact from a tax perspective. The Company is still evaluating other non-tax components it may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact to its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” This ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs, along with subsequent updates, apply to all companies that enter into contracts with customers to transfer goods or services, and are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the new guidance on October 1, 2018. The Company is executing a bottom up approach to analyze the standard's impact on its revenues by looking at historical policies and practices and identifying the differences from applying the new standard to its revenue streams. The Company has determined that many of its long-term agreements contain variable consideration clauses and is in the process of quantifying the impact to its consolidated financial statements. In addition, some of the Company's agreements have clauses which may require the Company to recognize revenue over time. The majority of the Company's current revenue is recognized at a point-in-time. As such, SIFCO continues to evaluate the impact of the standard on its financial reporting, disclosures and related systems and internal controls. O. USE OF ESTIMATES Accounting principles generally accepted in the U.S. require management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent liabilities, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the period in preparing these financial statements. Actual results could differ from those estimates. P. DERIVATIVE FINANCIAL INSTRUMENTS The Company entered an interest rate swap agreement on March 29, 2016 to reduce risk related to variable-rate debt, which was subject to changes in market rates of interest. The interest rate swap was designated as a cash flow hedge. The agreement was canceled as part of the debt modification on November 9, 2016, as further discussed in Note 5, Debt , of the consolidated financial statements. The Company accounted for the interest rate swap termination by recording the loss in accumulated other comprehensive loss as of December 31, 2016. The amount incurred in interest expense was nominal. As part of the new Credit Facility (described further in Note 5, Debt , of the consolidated financial statements) on November 9, 2016, the Company entered a new interest rate swap on November 30, 2016 to reduce risk related to the variable debt over the life of the new term loan. At September 30, 2017, the Company held one interest rate swap agreement with a notional amount of $ 4,059 . Cash flows related to the interest rate swap agreement are included in interest expense. The Company’s interest rate swap agreement and its variable-rate term debt were based upon LIBOR. At September 30, 2017 and 2016, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note. The mark-to-market valuation was a $4 asset and a $30 liability at September 30, 2017 and September 30, 2016, respectively. Q. RESEARCH AND DEVELOPMENT Research and development costs are expensed as they are incurred. Research and development expense was nominal in fiscal 2017 and 2016. R. DEFERRED FINANCING COSTS Debt issuance costs are capitalized and amortized over the life of the related debt. Amortization of deferred financing costs is included in interest expense in the consolidated statements of operations. S. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as shown on the consolidated balance sheets at September 30 are as follows: 2017 2016 Foreign currency translation adjustment, net of income tax benefit of $0 and $0, respectively $ (4,607 ) $ (5,623 ) Net retirement plan liability adjustment, net of income tax benefit of ($3,758) and ($3,758), respectively (4,648 ) (7,197 ) Interest rate swap agreement, net of income tax benefit of $0 and $0, respectively 4 (30 ) Total accumulated other comprehensive loss $ (9,251 ) $ (12,850 ) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive loss, net of tax: Foreign Currency Translation Adjustment Retirement Plan Liability Adjustment Interest Rates Swap Adjustment Accumulated Other Comprehensive Loss Balance at September 30, 2015 $ (5,731 ) $ (6,257 ) $ — $ (11,988 ) Other comprehensive income (loss) before reclassifications 108 (1,991 ) (30 ) (1,913 ) Amounts reclassified from accumulated other comprehensive loss — 1,051 — 1,051 Net current-period other comprehensive loss $ 108 $ (940 ) $ (30 ) $ (862 ) Balance at September 30, 2016 $ (5,623 ) $ (7,197 ) $ (30 ) $ (12,850 ) Other comprehensive income (loss) before reclassifications 1,016 1,655 28 2,699 Amounts reclassified from accumulated other comprehensive loss — 894 6 900 Net current-period other comprehensive loss 1,016 2,549 34 3,599 Balance at September 30, 2017 $ (4,607 ) $ (4,648 ) $ 4 $ (9,251 ) The following table reflects the changes in accumulated other comprehensive loss related to the Company for September 30, 2017 and 2016: Amount reclassified from accumulated other comprehensive loss Details about accumulated other comprehensive loss components 2017 2016 Affected line item in the Consolidated Statement of Operations Amortization of Retirement plan liability: Prior service costs $ 15 $ — (1) Net actuarial loss 927 828 (1) Settlements/curtailments (48 ) 223 (1) 894 1,051 Total before taxes — — Income tax expense $ 894 $ 1,051 Net of taxes (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 7, Retirement Benefit Plans , of the consolidated financial statements for further information. T. INCOME TAXES The Company files a consolidated U.S. federal income tax return and tax returns in various state and local jurisdictions. The Company’s Irish and Italian subsidiaries also file tax returns in the respective jurisdictions. The Company provides deferred income taxes for the temporary difference between the financial reporting basis and tax basis of the Company’s assets and liabilities. Such taxes are measured using the enacted tax rates that are assumed to be in effect when the differences reverse. Deductible temporary differences result principally from recording certain expenses in the financial statements in excess of amounts currently deductible for tax purposes. Taxable temporary differences result principally from tax depreciation in excess of book depreciation. The Company evaluates for uncertain tax positions taken at each balance sheet date. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest cumulative benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company's policy for interest and/or penalties related to underpayments of income taxes is to include interest and penalties in tax expenses. The Company maintains a valuation allowance against its deferred tax assets when management believes it is more likely than not that all or a portion of a deferred tax asset may not be realized. Changes in valuation allowances are recorded in the period of change. In determining whether a valuation allowance is warranted, the Company evaluates factors such as prior earnings history, expected future earnings, carry-back and carry-forward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. U. FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities Level 2 - Observable market based inputs or unobservable inputs that are corroborated by market data Level 3 - Unobservable inputs that are not corroborated by market data 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. The book value of cash equivalents, accounts receivable, accounts payable, and revolving |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at September 30 consist of: 2017 2016 Raw materials and supplies $ 6,108 $ 7,724 Work-in-process 7,650 10,459 Finished goods 6,623 10,313 Total inventories $ 20,381 $ 28,496 If the FIFO method had been used for the entire Company, inventories would have been $8,319 and $8,026 higher than reported at September 30, 2017 and 2016 , respectively. LIFO expense was $293 in fiscal 2017 and LIFO income was $482 in fiscal 2016, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s intangible assets by major asset class subject to amortization as of: September 30, 2017 Weighted Average Life at September 30, Original Cost Accumulated Amortization Impairment Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 2,776 $ 1,564 $ 310 $ 19 $ 921 Non-compete agreement 5 years 1,600 1,584 — — 16 Technology asset 5 years 1,869 749 — 50 1,170 Customer relationships 10 years 15,568 8,946 1,979 64 4,707 Total intangible assets $ 21,813 $ 12,843 $ 2,289 $ 133 $ 6,814 September 30, 2016 Intangible assets: Trade name 8 years $ 2,776 $ 1,240 $ — $ 9 $ 1,545 Non-compete agreement 5 years 1,600 1,547 — — 53 Technology asset 5 years 1,869 389 — 37 1,517 Customer relationships 10 years 15,568 7,571 — 26 8,023 Total intangible assets $ 21,813 $ 10,747 $ — $ 72 $ 11,138 The amortization expense on identifiable intangible assets for fiscal 2017 and 2016 was $2,168 and $2,593 , respectively. Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2018 $ 1,704 Fiscal year 2019 1,539 Fiscal year 2020 1,539 Fiscal year 2021 1,015 Fiscal year 2022 329 Goodwill is not amortized, but is subject to an annual impairment test. The Company tests its goodwill for impairment in the fourth fiscal quarter, and in interim periods if certain events occur indicating that the carrying amount of goodwill may be impaired. In the third quarter of fiscal 2017, there was a triggering event, which resulted in the Company performing an interim impairment test. Certain qualitative factors, primarily the under-performance relative to projected future operating results for the Alliance reporting unit caused the triggering event. The Company used May 31, 2017, the announcement date of the decision to close Alliance and move its business to its Cleveland reporting unit, as the triggering date to evaluate the carrying values and test for recoverability at the lowest level starting with Alliance's long-lived assets, primarily its machinery and equipment and its identifiable intangible assets. See Note 1, Summary of Significant Accounting Policies - Asset Impairment for further discussion on the long-lived assets impairment test. At the time the announcement was made, it was determined that orders after September 30, 2017 are to be transferred to Cleveland which resulted in the reallocation of $3,493 of goodwill to the Cleveland reporting unit. The Company used the carrying value of the reporting unit, inclusive of the assigned goodwill and to compare to its fair value using the market and income approach to estimate the fair value of this reporting unit. Significant assumptions inherent in the valuation methodologies for goodwill were employed and include, but are not limited to, prospective financial information, growth rates, terminal value and discount rates and required the Company to make certain assumptions and estimates regarding industry economic factors and future profitability of its business. When performing the income and market approach for the reporting unit, SIFCO incorporated the use of projected financial information and a discount rate that was developed using market participant based assumptions. The cash flow projections are based on five-year financial forecasts developed by management that include revenue projections, capital spending trends, and investment in working capital to support anticipated revenue growth. The selected discount rate considers the risk and nature of the reporting unit's cash flows and ratios of return that market participants would require to invest their capital in our plant. Although the Company believes its assumptions are reasonable, actual results may vary significantly and may expose the Company to material impairment charges in the future. The methodology for determining fair values was consistent for the periods presented. Based on this quantitative test performed during the interim test date, it was determined that the fair value (using Level 3 inputs) of this reporting unit exceeded the carrying value. As such there was no goodwill impairment of the Cleveland reporting unit at May 31, 2017. The Company completed its annual impairment test of goodwill as of July 31, 2017 for the Cleveland and Maniago, Italy ("Maniago") reporting units. Prior year financials included full impairment of goodwill for the Orange, California ("Orange") reporting unit. The Company completed its review using judgment to determine whether to use a qualitative analysis or a quantitative fair value measurement for its goodwill impairment testing. The Company's fair value measurement approach combines the income (discounted cash flow method) and market valuation (market comparable method) techniques for each of the Company’s reporting units that carry goodwill. These valuation techniques use estimates and assumptions including, but not limited to, the determination of appropriate market comparables, projected future cash flows (including timing and profitability), discount rate reflecting the risk inherent in future cash flows, perpetual growth rate, and projected future economic and market conditions (Level 3 inputs). Upon completion of the annual impairment testing for the Maniago reporting unit and the Cleveland reporting unit, it was determined that the fair value of goodwill for the reporting units exceeded the carrying value. As such, no impairment of goodwill existed as of September 30, 2017, compared with $ 4,164 of goodwill charge related to the Orange reporting unit, which was fully impaired in fiscal 2016. The Orange goodwill impairment was due to not meeting revenue expectations, and in part, to product mix, which resulted in lower margins and related business practices had not come to fruition for cost savings measures undertaken to address increased costs. All of the goodwill was expected to be deductible for tax purposes. Changes in the net carrying amount of goodwill were as follows: Balance at September 30, 2015 $ 16,480 Goodwill adjustment (589 ) Currency translation 21 Impairment adjustment $ (4,164 ) Balance at September 30, 2016 $ 11,748 Currency translation 422 Balance at September 30, 2017 $ 12,170 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at September 30 consist of: 2017 2016 Accrued employee compensation and benefits $ 4,309 $ 3,681 Accrued income taxes 901 264 Accrued legal and professional 497 124 Accrued workers’ compensation 237 324 Other accrued liabilities 847 841 Total accrued liabilities $ 6,791 $ 5,234 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at September 30 consists of: 2017 2016 Revolving credit agreement $ 18,557 $ 12,751 Foreign subsidiary borrowings 8,346 9,540 Capital lease obligations 352 153 Term loan 4,060 16,429 Less: unamortized debt issuance cost (47 ) (241 ) Term loan less unamortized debt issuance cost 4,013 16,188 Total debt 31,268 38,632 Less – current maturities (26,117 ) (31,009 ) Total long-term debt $ 5,151 $ 7,623 On November 9, 2016, the Company entered into an Amended and Restated Credit and Security Agreement ("Credit Facility") with its Lender. The Credit Facility matures on June 25, 2020 and consisted of secured loans is an aggregate principal amount of to $39,871 . The Credit Facility was comprised of (i) a senior secured revolving credit facility with a maximum borrowing amount of $35,000 , including swing line loans and letters of credit provided by the Lender and (ii) a secured term loan facility in the amount of $ $4,871 (the "Term Facility"). Amounts borrowed under the Credit Facility are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The new Term Facility is repayable in monthly installments of $81 , which commenced December 1, 2016 . The terms of the Credit Facility contain both a lock-box arrangement and a subjective acceleration clause. As a result, the amount outstanding on the revolving credit facility is classified as a short-term liability. The amounts borrowed under the Credit Facility were used to repay the amounts outstanding under the Company's Credit and Security Agreement (the "2015 Credit Agreement"), for working capital, for general corporate purposes and to pay fees and expenses associated with this transaction. In connection with entering into the Credit Facility, the Company terminated its interest rate swap agreement with the Lender and subsequently entered into another agreement on November 30, 2016, as referenced in Note 1, Summary of Significant Accounting Policies -Derivative Financial Instruments , of the consolidated financial statements. In the prior year, the Company had the 2015 Credit Agreement in place with its Lender until it entered in the above Credit Facility. The 2015 Credit Agreement was comprised of (i) a five -year revolving credit facility with a maximum borrowing amount of up to $25,000 , which reduced to $20,000 on January 1, 2016, and (ii) a five -year term loan of $20,000 . Amounts borrowed under the 2015 Credit Agreement were secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The term loan was repayable in quarterly installments of $714 starting September 30, 2015. The amounts borrowed under the 2015 Credit Agreement were used to repay the Company's previous revolver and term note, to fund the acquisition of Maniago and for working capital and general corporate purposes. The 2015 Credit Agreement also had an accordion feature, which allowed the Company to increase the availability by up to $ 15,000 upon consent of the existing lenders or upon additional lenders being joined to the facility. Borrowings bore interest at the LIBOR rate, prime rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case, plus the applicable margin as set forth in the 2015 Credit Agreement. Borrowings bear interest at the LIBOR rate, prime rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case, plus the applicable margin as set forth Credit Facility. The revolver has a rate based on LIBOR plus 3.75% spread and a prime rate which resulted in a weighted average rate of 4.8% and 3.9% at September 30, 2017 and 2016, respectively and the term loan has a rate of 5.5% and 3.8% at September 30, 2017 and 2016, respectively, which was based on LIBOR plus 4.25% spread. This rate becomes effective at a fixed rate of 5.8% and 3.9% after giving effect to the interest rate swap agreement as of September 30, 2017 and 2016, respectively. There is also a commitment fee ranging from 0.15% to 0.375% , to be incurred on the unused balance. The Company entered into its First Amendment Agreement ("First Amendment") to the Credit Facility on February 16, 2017. The First Amendment assigned its Lender as Administrative Agent and assigned a portion of its Credit Facility to a participating Lender. Under the Company's Credit Facility, the Company is subject to certain customary loan covenants. These include, without limitation, covenants that require maintenance of certain specified financial ratios, including that the Company meeting a minimum EBITDA and the maintenance of a minimum fixed charge coverage ratio to commence on September 30, 2017. In the event of a default, we may not be able to access our revolver, which could impact the ability to fund working capital needs, capital expenditures and invest in new business opportunities. On August 4, 2017, the Company entered into its Second Amendment Agreement ("Second Amendment") with its lender to (i) amend certain definitions within its Credit Facility to, among other things, effect the changes described herein and to reset the Fixed Charge Coverage Ratio (as defined in the Credit Facility) to build to a trailing four quarters in each of the fiscal 2018 quarters, commencing with the quarter ended December 31, 2017; (ii) replace certain of its financial covenants outlined in the description of the Credit Facility and amend its financial covenants with a revised minimum EBITDA for the four fiscal quarters ending September 30, 2017 and to maintain a fixed charge coverage ratio commencing on December 31, 2017; (iii) reduce its maximum revolving amount of $ 35,000 to $ 30,000 ; and (iv) the Company must use its cash proceeds from the sale of the Irish building discussed in Note 1, Summary of Significant Accounting Policies - Asset Held for Sale , of the consolidated financial statements to reduce the Term Facility by $700 and use the remaining proceeds to reduce the revolver. On November 28, 2017, the Company obtained a consent letter from its Lender which extended to December 31, 2017 the date to consummate such sale of the Irish property. The Company is in compliance with its loan covenants as of September 30, 2017. Foreign subsidiary borrowings As of September 30, 2017 and 2016, the total foreign debt borrowings were $ 8,346 and $9,540 , respectively, of which $5,805 and $5,833 , respectively is current. Current debt as of September 30, 2017 and 2016, consists of $2,618 and $3,262 of short-term borrowings, $1,340 and $2,014 is the current portion of long-term debt, and $ 1,847 and $557 , of factoring. Interest rates are based on Euribor rates plus spread which range from 1.0% to 4.0% . The factoring programs are uncommitted, whereby the Company offers receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are not isolated from the Company, and effective control of the receivables is not passed to the unaffiliated financial institution, which does not have the right to pledge or sell the receivables. The Company accounts for the pledge of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated balance sheets. The carrying value of the receivables pledged as collateral was $ 3,548 and $ 1,156 at September 30, 2017 and 2016, respectively. Payments on long-term debt under the Credit Facility and foreign term debt (excluding capital lease obligations, see Note 9, Commitments and Contingencies , of the consolidated financial statements) over the next 5 years are as follows: Minimum long-term debt payments 2018 $ 3,014 2019 2,195 2020 2,453 2021 279 2022 — 2023 and thereafter — Total Minimum long-term debt payments $ 7,941 Debt Issuance costs The Company incurred debt issuance costs related to its 2015 Credit Agreement in the amount of $ 724 ($ 194 had been amortized prior to the write-off in November 2016). The Company incurred an additional $562 of debt issuance costs in November 2016 and August 2017 and wrote off a combined $323 of debt issuance costs during fiscal 2017 due to the debt modification accounting for deferred financing costs as it relates to the term note and due to the Second Amendment. These costs are included in interest expense in the accompanying consolidated financial statements. Total debt issuance cost in the amount of $ 769 is split between the Term Facility and the revolving credit facility. The portion noted above within the debt table relates to the Term Facility in the amount of $ 61 , net of amortization of $ 14 at September 30, 2017. The remaining $ 707 of debt issuance cost relates to the revolving credit facility. This portion is shown in the consolidated balance sheet as a deferred charge in other current assets, which was reclassed from other long-term assets due to the classification of the revolving credit facility noted above, net of amortization of $ 282 at September 30, 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss from operations before income tax benefit are as follows: Years Ended September 30, 2017 2016 U.S. $ (15,574 ) $ (11,506 ) Non-U.S. 2,434 (1,827 ) Loss before income tax provision (benefit) $ (13,140 ) $ (13,333 ) Income taxes from operations before income tax provision (benefit) consist of the following: Years Ended September 30, 2017 2016 Current income tax provision (benefit): U.S. federal $ (64 ) $ (2,687 ) U.S. state and local (11 ) (111 ) Non-U.S. 951 94 Total current tax provision (benefit) 876 (2,704 ) Deferred income tax provision (benefit): U.S. federal 147 1,481 U.S. state and local 5 69 Non-U.S. 41 (844 ) Total deferred tax provision 193 706 Income tax provision (benefit) $ 1,069 $ (1,998 ) The income tax benefit from operations in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows: Years Ended September 30, 2017 2016 Loss before income tax benefit $ (13,140 ) $ (13,333 ) Income tax benefit at U.S. federal statutory rates $ (4,599 ) $ (4,667 ) Tax effect of: Foreign rate differential 120 254 State and local income taxes (6 ) (42 ) Impact of tax law changes (103 ) (338 ) Federal tax credits (252 ) (572 ) Valuation allowance 5,720 3,309 Other 189 58 Income tax provision (benefit) $ 1,069 $ (1,998 ) Deferred tax assets and liabilities at September 30 consist of the following: 2017 2016 Deferred tax assets: Net U.S. operating loss carryforwards $ 5,188 $ 195 Net non-U.S. operating loss carryforwards 596 777 Employee benefits 2,461 3,366 Inventory reserves 1,240 1,032 Allowance for doubtful accounts 135 234 Capitalized research and development expenses — 870 Intangibles 4,873 4,364 Foreign tax credits 602 575 Other tax credits 994 1,006 Other 1,126 1,106 Total deferred tax assets 17,215 13,525 Deferred tax liabilities: Depreciation (8,854 ) (10,777 ) Unremitted foreign earnings (65 ) (65 ) Prepaid expenses (247 ) (566 ) Other tax credits (1,718 ) (647 ) Total deferred tax liabilities (10,884 ) (12,055 ) Net deferred tax assets (liabilities) 6,331 1,470 Valuation allowance (9,597 ) (4,399 ) Net deferred tax liabilities $ (3,266 ) $ (2,929 ) At September 30, 2017, the Company has a non-U.S. tax loss carryforward of approximately $5,473 related to the Company’s Irish and Italian subsidiaries. The Company's Irish subsidiary ceased operations in 2007 and therefore, a valuation allowance has been recorded against the deferred tax asset related to the Irish tax loss carryforward because it is unlikely that such operating loss can be utilized unless the Irish subsidiary resumes operations. The non-U.S. tax loss carryforward does not expire. The Company has $602 of foreign tax credit carryforwards that are subject to expiration in fiscal 2023-2026, $758 of U.S. general business tax credits that are subject to expiration in 2035-2037, $28 of alternative minimum tax that do not expire, and $13,561 of U.S. Federal tax loss carryforwards subject to expiration in fiscal 2036-2037. A valuation allowance has been recorded against the deferred tax assets related to the foreign tax credit carryforwards, U.S. general business credits, and U.S. Federal tax loss carryforwards. In addition, the Company has $165 of U.S. state tax credit carryforwards subject to expiration in fiscal 2022-2024 and $23,848 of U.S. state and local tax loss carryforwards subject to expiration in fiscal 2020-2037. The U.S. state tax credit carryforwards and U.S. state and local tax loss carryforwards have been fully offset by a valuation allowance. A portion of the U.S. state and local tax loss carryforwards presented in the table above have been reduced by unrealized stock compensation deductions of $5 . The Company reported liabilities for uncertain tax positions, excluding any related interest and penalties, of $69 in both fiscal 2017 and 2016. If recognized, $69 of the fiscal 2017 uncertain tax positions would impact the effective tax rate. As of September 30, 2017, the Company had accrued interest of $24 and recognized $3 for interest and penalties in operations. The Company classifies interest and penalties on uncertain tax positions as income tax expense. A summary of activity related to the Company’s uncertain tax position is as follows: 2017 2016 Balance at beginning of year $ 69 $ 105 Decrease due to lapse of statute of limitations — (36 ) Balance at end of year $ 69 $ 69 The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, Italy and various states and local jurisdictions. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for fiscal years prior to 2013, state and local income tax examinations for fiscal years prior to 2014, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2007. As of September 30, 2017, the Company has $11,427 of undistributed earnings of non-U.S. subsidiaries for which no deferred taxes have been provided as the Company intends to permanently reinvest these earnings outside the U.S. Quantification of the deferred tax liability associated with these undistributed earnings is not practicable. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Plans The Company and certain of its subsidiaries sponsor defined benefit pension plans covering most of its employees. The Company’s funding policy for its defined benefit pension plans is based on an actuarially determined cost method allowable under Internal Revenue Service regulations. One of the defined benefit pension plans covers substantially all non-union employees of the Company’s U.S. operations who were hired prior to March 1, 2003, and this plan was frozen in 2003, while another plan that covered union employees no longer has active participants due to the business closure. Consequently, although both plans continue, the non-union plan ceased the accrual of additional pension benefits for service subsequent to March 1, 2003, and the related union plan has had no participants accrue any additional benefits subsequent to December 31, 2013. The Company sponsors a defined benefit plan for certain of its employees. The plan is a severance entitlement payable to the Italian employees who qualified prior to December 27, 2006. The plan is considered an unfunded defined benefit plan and is measured as the actuarial present value of the vested benefits to which the employees would be entitled if the employee separated at the consolidated balance sheet date. The Company uses a September 30 measurement date for its U.S. defined benefit pension plans. Net pension expense, benefit obligations and plan assets for the Company-sponsored defined benefit pension plans consists of the following: Years Ended September 30, 2017 2016 Service cost $ 324 $ 280 Interest cost 883 1,017 Expected return on plan assets (1,615 ) (1,632 ) Amortization of net loss 861 828 Settlement cost — 223 Net pension expense for defined benefit plan $ 453 $ 716 The status of all defined benefit pension plans at September 30 is as follows: 2017 2016 Benefit obligations: Benefit obligations at beginning of year $ 29,731 $ 27,685 Service cost 324 280 Interest cost 883 1,017 Actuarial (loss) gain (1,292 ) 2,405 Benefits paid (1,740 ) (1,659 ) Currency translation 15 3 Benefit obligations at end of year $ 27,921 $ 29,731 Plan assets: Plan assets at beginning of year $ 21,344 $ 20,896 Actual return on plan assets 1,978 2,061 Employer contributions 109 46 Benefits paid (1,740 ) (1,659 ) Plan assets at end of year $ 21,691 $ 21,344 Plans in which Benefit Obligations Exceed Assets at September 30, 2017 2016 Reconciliation of funded status: Plan assets less than projected benefit obligations $ (6,230 ) $ (8,387 ) Amounts recognized in accumulated other comprehensive loss: Net loss 8,406 10,926 Net amount recognized in the consolidated balance sheets $ 2,176 $ 2,539 Amounts recognized in the consolidated balance sheets are: Accrued liabilities (46 ) (46 ) Pension liability (6,184 ) (8,341 ) Accumulated other comprehensive loss – pretax 8,406 10,926 Net amount recognized in the consolidated balance sheets $ 2,176 $ 2,539 The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs during fiscal 2018 are as follows: Plans in which Plans in which Net loss $ — $ 669 Where applicable, the following weighted-average assumptions were used in developing the benefit obligation and the net pension expense for defined benefit pension plans: Years Ended 2017 2016 Discount rate for liabilities 3.6 % 3.1 % Discount rate for expenses 3.1 % 3.8 % Expected return on assets 7.9 % 8.0 % The Company holds investments in pooled separate accounts and common/collective trusts, in which the fair value of assets of the underlying funds are determined in the following ways: • U.S. equity securities are comprised of domestic equities that are priced using the closing price of the applicable nationally recognized stock exchange, as provided by industry standard vendors such as Interactive Data Corporation. • Non-U.S. equity securities are comprised of international equities. These securities are priced using the closing price from the applicable foreign stock exchange. • U.S. bond funds are comprised of domestic fixed income securities. Securities are priced by industry standards vendors, such as Interactive Data Corporation, using inputs such as benchmark yields, reported trades, broker/dealer quotes, or issuer spreads. ◦ Included as part of the U.S. bond funds, are private placement funds, for which fair market value is not always commercially available, the fair value of these investments is primarily determined using a discounted cash flow model, which utilizes a discount rate based upon the average of spread surveys collected from private-market intermediaries who are active in both primary and secondary transactions, and takes into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. • Non-U.S. bond funds are comprised of international fixed income securities. Securities are priced by Interactive Data Corporation, using inputs such as benchmark yields, reported trades, broker/dealer quotes, or issuer spreads. • Stable value fund is comprised of short-term securities and cash equivalent securities, which seek to provide high current income consistent with the preservation of principal and liquidity. As permitted under relevant securities laws, securities in this type of fund are valued initially at cost and thereafter adjusted for amortization of any discount or premium. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. However, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement result. The following tables set forth the asset allocation of the Company’s defined benefit pension plan assets and summarize the fair values and levels within the fair value hierarchy for such plan assets as of September 30, 2017 and 2016: September 30, 2017 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 681 $ 681 $ — Large blend 9,788 9,788 — Large growth 470 470 — Mid blend 79 79 — Small blend 111 111 — Non-U.S. equity securities: Foreign large blend 1,731 1,731 — Diversified emerging markets 19 19 — U.S. debt securities: Inflation protected bond 1,089 1,089 — Intermediate term bond 7,240 5,065 2,175 High inflation bond 187 187 — Non-U.S. debt securities: Emerging markets bonds 77 77 — Stable value: Short-term bonds 219 219 — Total plan assets at fair value $ 21,691 $ 19,516 $ 2,175 September 30, 2016 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 492 $ 492 $ — Large blend 9,593 9,593 — Large growth 503 503 — Mid blend 57 57 — Small blend 56 56 — Non-U.S. equity securities: Foreign large blend 1,565 1,565 — Diversified emerging markets 18 18 — U.S. debt securities: Inflation protected bond 537 537 — Intermediate term bond 7,747 5,562 2,185 High inflation bond 360 360 — Non-U.S. debt securities: Emerging markets bonds 66 66 — Stable value: Short-term bonds 350 350 — Total plan assets at fair value $ 21,344 $ 19,159 $ 2,185 Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2017 and 2016 were as follows: 2017 2016 Balance at beginning of year $ 2,185 $ 2,045 Actual return on plan assets 26 126 Purchases and sales of plan assets, net (36 ) 14 Balance at end of year $ 2,175 $ 2,185 Investment objectives relative to the assets of the Company’s defined benefit pension plans are to (i) optimize the long-term return on the plans’ assets while assuming an acceptable level of investment risk; (ii) maintain an appropriate diversification across asset categories and among investment managers; and (iii) maintain a careful monitoring of the risk level within each asset category. Asset allocation objectives are established to promote optimal expected returns and volatility characteristics given the long-term time horizon for fulfilling the obligations of the Company’s defined benefit pension plans. Selection of the appropriate asset allocation for the plans’ assets was based upon a review of the expected return and risk characteristics of each asset category in relation to the anticipated timing of future plan benefit payment obligations. The Company has a long-term objective for the allocation of plan assets. However, the Company realizes that actual allocations at any point in time will likely vary from this objective due principally to (i) the impact of market conditions on plan asset values and (ii) required cash contributions to and distribution from the plans. The “Asset Allocation Range” listed below anticipates these potential scenarios and provides flexibility for the Plan’s investments to vary around the objective without triggering a reallocation of the assets, as noted by the following: Percent of Plan Assets at September 30, Asset Allocation Range 2017 2016 U.S. equities 51 % 50 % 30% to 70% Non-U.S. equities 8 % 7 % 0% to 20% U.S. debt securities 39 % 41 % 20% to 70% Non-U.S. debt securities 1 % — % 0% to 10% Other securities 1 % 2 % 0% to 60% Total 100 % 100 % External consultants assist the Company with monitoring the appropriateness of the above investment strategy and the related asset mix and performance. To develop the expected long-term rate of return assumptions on plan assets, generally the Company uses long-term historical information for the target asset mix selected. Adjustments are made to the expected long-term rate of return assumptions when deemed necessary based upon revised expectations of future investment performance of the overall investments markets. The Company anticipates making approximately $ 91 in contributions to its defined benefit pension plans during fiscal 2018. The Company has carryover balances from previous periods that may be available for use as a credit to reduce the amount of contributions that the Company is required to make to certain of its defined benefit pension plans in fiscal 2018. The Company’s ability to elect to use such carryover balances will be determined based on the actual funded status of each defined benefit pension plan relative to the plan’s minimum regulatory funding requirements. The following defined benefit payment amounts are expected to be made in the future: Years Ending September 30, Projected Benefit Payments 2018 $ 1,897 2019 1,723 2020 1,901 2021 1,920 2022 1,740 2023-2027 8,986 Multi-Employer Plans The Company contributes to one (1) U.S. multi-employer retirement plan for certain union employees, as follow: Pension Fund Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions by the Company Surcharge Imposed Expiration of Collective Bargaining Agreement 2017 2016 2017 2016 Fund ¹ Green Green No $ 58 $ 65 No 5/31/2020 ¹ The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund utilized the special 30 -year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008. The plan's year-end to which the zone status relates is December 31, 2016 and 2015. The risks of participating in the multi-employer retirement plan are different from a single-employer plan in that (i) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company chooses to stop participating in the multi-employer retirement plan, the Company may be required to pay the plan an amount based on the unfunded status of the plan, referred to as a withdrawal liability. Defined Contribution Plans Substantially all non-union U.S. employees of the Company and its U.S. subsidiaries are eligible to participate in the Company’s U.S. defined contribution plan. The Company makes non-discretionary, regular matching contributions to this plan equal to an amount that represents one hundred percent ( 100% ) of a participant’s deferral contribution up to one percent ( 1% ) of eligible compensation plus eighty percent ( 80% ) of a participant’s deferral contribution between one percent ( 1% ) and six percent ( 6% ) of eligible compensation. The Company’s regular matching contribution expense for its U.S. defined contribution plan in fiscal 2017 and 2016 was $574 and $647 , respectively. This defined contribution plan provides that the Company may also make an additional discretionary matching contribution during those periods in which the Company achieves certain performance levels. The Company did not provide additional discretionary matching contributions in either fiscal 2017 and 2016. The Company sponsors a separate defined contribution plan for certain of its U.S. union employees related to the Alliance plant. The Company's contribution to this plan is based on a specified amount per hour based on the provisions of the applicable collective bargaining agreement. Due to the closure of the Alliance facility, as described previously, the related defined contribution plan for its union employees terminated in October 2017. The Company sponsors a defined contribution plan for certain of its employees Maniago union employees. The plan is a severance entitlement payable plan to Italian employees based on local government laws, which qualifies as a defined contribution plan. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company, with the approval of its shareholders on January 25, 2017, amended and restated its 2007 Long-Term Incentive Plan (“2007 Plan”) to the 2016 Long-Term Incentive Plan ("2016 Plan"). The amendment increased the aggregate number of shares that may be awarded under the 2016 Plan to 646 less any shares previously awarded and subject to an adjustment for the forfeiture of any unvested shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2016 Plan may be made in multiple forms including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such awards are exercisable no later than ten years from date of grant. The performance shares that have been awarded under both plans generally provide for the vesting of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the granting of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 150% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives. With respect to such performance shares, compensation expense is being accrued based on the probability of meeting the performance target. During each future reporting period, such expense is evaluated and may be subject to adjustment based upon the Company’s financial performance, which impacts the number of common shares that it expects to issue upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of grant. The vesting of such shares is determined at the end of the performance period. The Company has awarded restricted shares to certain of its directors, officers and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one (1) year or three (3) years. If all outstanding share awards are ultimately earned and issued at the target number of shares, then at September 30, 2017 there are approximately 413 shares that remain available for award. If any of the outstanding share awards are ultimately earned and issued at greater than the target number of shares, up to a maximum of 150% of such target, then a fewer number of shares would be available for award. Stock-based compensation under the 2016 Plan was expense of $404 fiscal 2017 and $474 benefit (due to performance share awards not achieving minimum target thresholds) in fiscal 2016. The Company did no t record income tax benefits in Additional Paid-in Capital related to shares that were earned under the 2016 Plan in fiscal 2017 and 2016. As of September 30, 2017, there was $698 of total unrecognized compensation cost related to the performance and restricted shares awarded under the 2016 Plan. The Company expects to recognize this cost over the next 1.4 years . The following is a summary of activity related to performance shares: 2017 2016 Number of Shares Weighted Average Fair Value at Date of Grant Number of Weighted Average Outstanding at beginning of year 146 $ 13.07 98 $ 28.50 Restricted shares awarded 71 7.73 59 9.53 Restricted shares earned (29 ) 9.45 (20 ) 29.59 Performance shares awarded 69 7.45 102 10.40 Performance shares earned (10 ) 9.50 — — Awards forfeited (53 ) 17.75 (93 ) 20.58 Outstanding at end of year 194 $ 8.57 146 $ 13.07 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company may be involved in ordinary, routine legal actions. The Company cannot reasonably estimate future costs, if any, related to these matters; however, it does not believe any such matters are material to its financial condition or results of operations. The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations; however, it is possible that the Company’s future operating results could be affected by future costs of litigation. The Company is currently a defendant in a class action lawsuit filed in the Superior Court of California, County of Orange, alleging violations of California wage-and-hour laws, rules and regulations pertaining primarily to failure to accurately calculate and pay hourly and overtime wages; failure to provide meal periods; failure to authorize and permit rest periods; failure to indemnify necessary expenditures; failure to timely pay wages; and unfair competition. Although the Company records reserves for legal disputes and other matters in accordance with generally accepted accounting principles in the United States of America ("GAAP"), the ultimate outcomes of these types of matters are inherently uncertain. Actual results may differ significantly from current estimates. Given the current status of this matter, the Company has recorded an estimated loss of $385 as of September 30, 2017. The Company's Cleveland, Ohio location had an Occupational Safety and Health Administration ("OSHA") inspection at the facility on September 1, 2016. This inspection resulted in OSHA issuing citations to the location. Since the inspection, SIFCO has abated or is in the process of abating all issues identified. These findings resulted in penalties having been assessed in the amount of $ 127 during fiscal 2017. The Company leases certain facilities, machinery and equipment, and office buildings under long-term leases. The leases generally provide renewal options and require the Company to pay for utilities, insurance, taxes and maintenance. The Company recorded rent expense of $1,925 and $1,313 in fiscal 2017 and 2016, respectively. Included are lease payments on the Company's Orange newly built facility for which the lease payments commenced in December 2016 and expire in 2036. At September 30, 2017, minimum rental commitments under non-cancelable leases are as follows: Year ending September 30, Capital Leases Operating Leases 2018 $ 123 $ 2,026 2019 114 1,831 2020 66 1,440 2021 66 1,300 2022 14 1,274 Thereafter — 17,524 Total minimum lease payments $ 383 $ 25,395 Plus: Amount representing interest (31 ) Present value of minimum lease payments $ 352 Amortization of the cost of equipment under capital leases is included in depreciation expense. At September 30, assets recorded under capital leases consist of the following: 2017 2016 Machinery and equipment $ 550 $ 250 Accumulated depreciation (162 ) (60 ) |
Business Information
Business Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Information | Business Information The Company identifies itself as one reportable segment, SIFCO, which is a manufacturer of forgings and machined components for the A&E markets. Geographic net sales are based on location of customer. The United States of America is the single largest country for unaffiliated customer sales, accounting for 63% and 62% of consolidated net sales in fiscal 2017 and 2016, respectively. No other single country represents greater than 10% of consolidated net sales in fiscal 2017 and 2016. Net sales to unaffiliated customers located in various European countries accounted for 27% and 22% of consolidated net sales in fiscal 2017 and 2016, respectively. Net sales to unaffiliated customers located in various Asian countries accounted for 2% and 4% of consolidated net sales in fiscal 2017 and 2016, respectively. Substantially all of the Company's operations and identifiable assets are located within the United States with the exception of its non-U.S. subsidiaries located in Maniago, Italy and Cork, Ireland. The identifiable assets for the Company's foreign subsidiaries as of September 30, 2017 was $ 37,607 compared with $ 37,196 as of September 30, 2016. 2017 2016 Long-Lived Assets United States $ 33,114 44,108 Europe 25,639 28,274 $ 58,753 72,382 At September 30, 2017, approximately 234 of the hourly plant personnel are represented by three separate collective bargaining agreements. The table below shows the expiration dates of the collective bargaining agreements. Plant locations Expiration date Cleveland, Ohio May 31, 2020 Alliance, Ohio * October 26, 2017 Maniago, Italy December 31, 2019 * Agreement ceased due to closure of Alliance facility. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs On May 31, 2017, the Company approved the decision to close Alliance as disclosed in the June 1, 2017 Form 8-K, as amended on July 17, 2017. The closure is a result of decreased sales from a key customer, which led to the reduction in sales volumes at this location. This closure falls in line with management's key strategic initiatives to make organizational and operational changes needed to improve profitability. Orders after September 30, 2017 are being processed and manufactured by Cleveland. Alliance manufactured products through September 30, 2017. As a result of the announcement of the decision to close Alliance, $5,048 non-cash costs were incurred, of which $ 4,786 relates to asset impairment discussed above and $ 262 of accelerated depreciation of assets due to useful lives been reassessed as of September 30, 2017. The remaining estimated exit costs are to be expensed as incurred, which include workforce reduction costs. Workforce reduction costs incurred at September 30, 2017 were approximately $215 , of which a $15 was paid by September 30, 2017 and the remainder is expected to be paid in the first quarter of fiscal 2018. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent event | Subsequent event The Company evaluated its September 30, 2017 financial statements for subsequent events through the date the consolidated financial statements were available to be issued. On October 10, 2017, the Company signed a purchase agreement with a buyer for the sale of the Ireland building. The sale transaction was finalized on December 15, 2017 for cash proceeds of approximately $3,068 , resulting in an approximate gain of $1,100 . On November 28, 2017, the Company obtained a consent letter from its Lender which extended to December 31, 2017 the date to consummate such sale of the Irish property. The Company is not aware of any other subsequent events which would require recognition or disclosure in the consolidated financial statements. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II SIFCO Industries, Inc. and Subsidiaries Valuation and Qualifying Accounts Years Ended September 30, 2017 and 2016 (Amounts in thousands) Balance at Beginning of Period Additions (Reductions) Charged to Expense Additions (Reductions) Charged to Other Accounts Deductions Balance at End of Period Year Ended September 30, 2017 Deducted from asset accounts Allowance for doubtful accounts $ 706 77 8 (461 ) (a) $ 330 Inventory obsolescence reserve 3,308 657 91 (197 ) (b) $ 3,859 Inventory LIFO reserve 8,026 293 — — $ 8,319 Deferred tax valuation allowance 4,399 6,117 (919 ) — $ 9,597 Accrual for estimated liability Workers’ compensation reserve 324 234 1 (322 ) (c) $ 237 Year Ended September 30, 2016 Deducted from asset accounts Allowance for doubtful accounts $ 1,127 $ 359 $ (199 ) $ (581 ) (a) $ 706 Inventory obsolescence reserve 3,022 571 — (285 ) (b) 3,308 Inventory LIFO reserve 8,508 (482 ) — — 8,026 Deferred tax valuation allowance 1,095 3,304 — — 4,399 Accrual for estimated liability Workers’ compensation reserve 688 157 — (521 ) (c) 324 (a) Accounts determined to be uncollectible, net of recoveries (b) Inventory sold or otherwise disposed (c) Payment of workers’ compensation claims |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS SIFCO Industries, Inc. and its subsidiaries are engaged in the production of forgings and machined components primarily in the Aerospace and Energy ("A&E") market. The Company’s operations are conducted in a single business segment, "SIFCO" or the "Company." |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the consolidated statements of shareholders’ equity. |
CASH EQUIVALENTS | CASH EQUIVALENTS The Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. A substantial majority of the Company’s cash and cash equivalent bank balances exceed federally insured limits as of September 30, 2017; however, were within federally insured limits at September 30, 2016. |
CONCENTRATIONS OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK Receivables are presented net of allowance for doubtful accounts of $330 and $706 at September 30, 2017 and 2016, respectively. Accounts receivable outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible. During fiscal 2017 and 2016, $461 and $581 , respectively, of accounts receivable were written off against the allowance for doubtful accounts. Bad debt expense totaled $77 and $359 in fiscal 2017 and fiscal 2016, respectively. Most of the Company’s receivables represent trade receivables due from manufacturers of turbine engines and aircraft components as well as turbine engine overhaul companies located throughout the world, including a significant concentration of U.S. based companies. In fiscal 2017, 22% of the Company’s consolidated net sales were from two of its largest customers; and 35% of the Company's consolidated net sales were from the three largest customers and their direct subcontractors, which individually accounted for 13% , 11% and 11% , of consolidated net sales, respectively. In fiscal 2016, 21% of the Company’s consolidated net sales were from two of its largest customers; and 46% of the Company's consolidated net sales were from four of the largest customers and their direct subcontractors which individually accounted for 12% , 12% , 11% and 11% , of consolidated net sales, respectively. No other single customer or group represented greater than 10% of total net sales in fiscal 2017 and 2016. At September 30, 2017, one of the Company’s largest customers had outstanding net accounts receivable which individually accounted for 10% of the total net accounts receivable; and three of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 13% , 10% and 10% of total net accounts receivable, respectively. At September 30, 2016, two of the Company’s largest customers had outstanding net accounts receivable which accounted for 14% and 11% of total net accounts receivable; and four of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 15% , 13% , 12% and 11% of total, net receivables, respectively. The Company performs ongoing credit evaluations of its customers’ financial conditions. The Company believes its allowance for doubtful accounts is sufficient based on the credit exposures outstanding at September 30, 2017. |
INVENTORY VALUATION | INVENTORY VALUATION Inventories are stated at the lower of cost or market. For a portion of the Company's inventory, cost is determined using the last-in, first-out (“LIFO”) method. For approximately 38% and 44% of the Company’s inventories at September 30, 2017 and 2016, respectively, the LIFO method is used to value the Company’s inventories. The first-in, first-out (“FIFO”) method is used to value the remainder of the Company’s inventories. The Company maintains allowances for obsolete and excess inventory. The Company evaluates its allowances for obsolete and excess inventory each quarter, and requires at a minimum that reserves be established based on an analysis of the age of the inventory. In addition, if the Company identifies specific obsolescence, other than that identified by the aging criteria, an additional reserve will be recognized. Specific obsolescence and excess reserve requirements may arise due to technological or market changes, or based on cancellation of an order. |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost. Depreciation is generally computed using the straight-line method. Depreciation is provided in amounts sufficient to amortize the cost of the assets over their estimated useful lives. Depreciation provisions are based on estimated useful lives: (i) buildings, including building improvements - 5 to 40 years; (ii) machinery and equipment, including office and computer equipment - 3 to 20 years; (iii) software - 3 to 7 years (included in machinery and equipment); and (iv) leasehold improvements - remaining life or length of the lease (included in buildings). The loss on disposal of operating assets is included as a separate line item in the accompanying consolidated statements of operations. |
ASSET IMPAIRMENT | ASSET IMPAIRMENT The Company reviews the carrying value of its long-lived assets, including property, plant and equipment, when events and circumstances indicate a triggering event has occured. This review is performed using estimates of future undiscounted cash flows, which include proceeds from disposal of assets. If the carrying value of a long-lived asset is greater than the estimated undiscounted future cash flows, then the long-lived asset is considered impaired and an impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value. |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of the purchase price paid over the fair value of the net assets of an acquired business. Goodwill is subject to impairment testing if triggered in the interim, if not, on an annual basis. The Company has selected July 31 as the annual impairment testing date. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill. Since the adoption of Accounting Standard Update ("ASU") 2017-04, Step 2 has been eliminated from the goodwill impairment test. The first step of the goodwill impairment test compares the fair value of a reporting unit (as defined) with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired. However, if the carrying amount exceeds the fair value, the Company should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit. See Note 3, Goodwill and Intangibles , of the consolidated financial statements for further discussion of the interim goodwill test performed as of May 31, 2017 for one of its reporting units and as of July 31, 2017 annual impairment test results. Intangible assets consist of identifiable intangibles acquired or recognized in the accounting for the acquisition of a business and include such items as a trade name, a non-compete agreement, below market lease, customer relationships and order backlog. Intangible assets are amortized over their useful lives ranging from one year to ten years . |
NET LOSS PER SHARE | NET LOSS PER SHARE The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding. |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue is generally recognized from the sale of products shipped when the title and risk of loss passes to the customer, which is generally at the time of shipment. Substantially all product sales are made pursuant to a firm, fixed-price purchase orders or supply agreement demand forecasts received from customers. Provisions for estimated returns and uncollectible accounts provisions are provided for in the same period as the related revenues are recorded and are principally based on historical results modified, as appropriate, by the most current information available. Due to uncertainties in the estimation process, it is possible that actual results may vary from the estimates. |
CAPITAL LEASE OBLIGATIONS | CAPITAL LEASE OBLIGATIONS Capital leases are accounted for as the acquisition of an asset and the commitment of an obligation by the lessee and as a sale or financing by the lessor. All other leases are accounted for as operating leases. |
IMPACT OF RECENTLY ADOPTED AND NEWLY ISSUED ACCOUNTING STANDARDS | IMPACT OF RECENTLY ADOPTED ACCOUNTING STANDARDS In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The Company performs Step 1 of the annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the fair value, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU must be applied prospectively and is effective for any annual and interim goodwill impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted the standard in its second quarter of fiscal 2017 and there was no impact to the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern," which is intended to define the Company's responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures, regardless of the Company's performance or financial position. In connection with preparing financial statements for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. The Company adopted this standard effective September 30, 2017 and there was no impact to the consolidated financial statements. N. IMPACT OF NEWLY ISSUED ACCOUNTING STANDARDS In May 2017, the FASB issued ASU 2017-09, which clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on October 1, 2018, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements and it does not plan to early adopt the ASU. In March 2017, the FASB issued ASU 2017-07, which relates to pension related costs that require an entity to report the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of the net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside of any subtotal of operating income. Additionally, only the service cost component will be eligible for capitalization in assets. The ASU is effective for October 1, 2018, early adoption is permitted and the ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the income statement and prospectively for the capitalization of the service cost component. The amendment allows for a practical expedient that permits an employer to use the amounts disclosed in its pension and other post-retirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company would need to disclose if the practical expedient was used. The Company is currently evaluating the impact it may have on its consolidated financial statements and it does not plan to early adopt the ASU. In January 2017, the FASB issued ASU 2017-01, Business Combinations, which clarified existing guidance on the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted and the guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted as of the beginning of the annual reporting period in which the ASU was issued. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 requiring 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 or restricted cash equivalents. Therefore, amounts generally described as restricted cash would be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating its plans regarding the adoption, but does not expect that this ASU would have a material impact to the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated financial statements together with evaluating the adoption date. In August 2016, the FASB issued ASU 2016-15, which amends certain cash flow issues which apply to all entities required to present a statement of cash flow. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated financial statements together with evaluating the adoption date. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which makes a number of changes meant to simplify and improve accounting for share-based payments. The ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has considered the potential implications of adoption of the ASU and due to the valuation allowance recorded at September 30, 2017 and September 30, 2016 in the U.S., the Company does not expect a material impact from a tax perspective. The Company is still evaluating other non-tax components it may have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact to its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” This ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs, along with subsequent updates, apply to all companies that enter into contracts with customers to transfer goods or services, and are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the new guidance on October 1, 2018. The Company is executing a bottom up approach to analyze the standard's impact on its revenues by looking at historical policies and practices and identifying the differences from applying the new standard to its revenue streams. The Company has determined that many of its long-term agreements contain variable consideration clauses and is in the process of quantifying the impact to its consolidated financial statements. In addition, some of the Company's agreements have clauses which may require the Company to recognize revenue over time. The majority of the Company's current revenue is recognized at a point-in-time. As such, SIFCO continues to evaluate the impact of the standard on its financial reporting, disclosures and related systems and internal controls. |
USE OF ESTIMATES | USE OF ESTIMATES Accounting principles generally accepted in the U.S. require management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent liabilities, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the period in preparing these financial statements. Actual results could differ from those estimates. |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company entered an interest rate swap agreement on March 29, 2016 to reduce risk related to variable-rate debt, which was subject to changes in market rates of interest. The interest rate swap was designated as a cash flow hedge. The agreement was canceled as part of the debt modification on November 9, 2016, as further discussed in Note 5, Debt , of the consolidated financial statements. The Company accounted for the interest rate swap termination by recording the loss in accumulated other comprehensive loss as of December 31, 2016. |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs are expensed as they are incurred. |
DEFERRED FINANCING COSTS | DEFERRED FINANCING COSTS Debt issuance costs are capitalized and amortized over the life of the related debt. Amortization of deferred financing costs is included in interest expense in the consolidated statements of operations. |
INCOME TAXES | INCOME TAXES The Company files a consolidated U.S. federal income tax return and tax returns in various state and local jurisdictions. The Company’s Irish and Italian subsidiaries also file tax returns in the respective jurisdictions. The Company provides deferred income taxes for the temporary difference between the financial reporting basis and tax basis of the Company’s assets and liabilities. Such taxes are measured using the enacted tax rates that are assumed to be in effect when the differences reverse. Deductible temporary differences result principally from recording certain expenses in the financial statements in excess of amounts currently deductible for tax purposes. Taxable temporary differences result principally from tax depreciation in excess of book depreciation. The Company evaluates for uncertain tax positions taken at each balance sheet date. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest cumulative benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company's policy for interest and/or penalties related to underpayments of income taxes is to include interest and penalties in tax expenses. The Company maintains a valuation allowance against its deferred tax assets when management believes it is more likely than not that all or a portion of a deferred tax asset may not be realized. Changes in valuation allowances are recorded in the period of change. In determining whether a valuation allowance is warranted, the Company evaluates factors such as prior earnings history, expected future earnings, carry-back and carry-forward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. Based on the examination of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities Level 2 - Observable market based inputs or unobservable inputs that are corroborated by market data Level 3 - Unobservable inputs that are not corroborated by market data 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. The book value of cash equivalents, accounts receivable, accounts payable, and revolving credit facilities are considered to be representative of their fair values because of their short maturities. Fair value measurements of non-financial assets and non-financial liabilities are primarily used in goodwill, other intangible assets and long-lived assets impairment analysis, the valuation of acquired intangibles and in the valuation of assets held for sale. Goodwill and intangible assets are valued using Level 3 inputs. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-based compensation is measured at the grant date, based on the calculated fair value of the award and the probability of meeting its performance condition, and is recognized as expense when it is probable that the performance conditions will be met over the requisite service period (generally the vesting period). Share-based expense includes expense related to restricted shares and performance shares issued under the Company's 2007 Long-Term Incentive Plan ("2007 Plan") and the 2016 Long-Term Incentive Plan ("2016 Plan"). The Company recognizes share-based expense within selling, general, and administrative expense. |
SHIPPING AND HANDLING COSTS | SHIPPING AND HANDLING COSTS The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects shipping and handling costs in cost of sales. |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The Company’s policy is to recognize restructuring costs in accordance with the accounting rules related to exit or disposal activities and compensation and non-retirement post-employment benefits. Detailed documentation is maintained and updated to ensure that accruals are properly supported. If management determines that there is a change in estimate, the accruals are adjusted to reflect this change. |
RECLASSIFICATIONS | RECLASSIFICATIONS Certain amounts in prior years, as appropriate, have been reclassified to conform to the 2017 consolidated financial statement presentation. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment by Major Asset Class | The Company's property, plant and equipment assets by major asset class at September 30 consist of: 2017 2016 Property, plant and equipment: Land $ 1,005 $ 979 Buildings 15,084 15,393 Machinery and equipment 75,080 82,665 Total property, plant and equipment 91,169 99,037 Accumulated depreciation 51,661 50,079 Property, plant and equipment, net $ 39,508 $ 48,958 |
Dilutive Effect of The Company's Stock Options, Restricted Shares, and Performance Shares | The dilutive effect of the Company’s restricted shares and performance shares were as follows: September 30, 2017 2016 Net loss $ (14,209 ) $ (11,335 ) Weighted-average common shares outstanding (basic and diluted) 5,487 5,475 Net loss per share – basic and diluted: Net loss per share $ (2.59 ) $ (2.07 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 93 32 |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as shown on the consolidated balance sheets at September 30 are as follows: 2017 2016 Foreign currency translation adjustment, net of income tax benefit of $0 and $0, respectively $ (4,607 ) $ (5,623 ) Net retirement plan liability adjustment, net of income tax benefit of ($3,758) and ($3,758), respectively (4,648 ) (7,197 ) Interest rate swap agreement, net of income tax benefit of $0 and $0, respectively 4 (30 ) Total accumulated other comprehensive loss $ (9,251 ) $ (12,850 ) The following table provides additional details of the amounts recognized into net earnings from accumulated other comprehensive loss, net of tax: Foreign Currency Translation Adjustment Retirement Plan Liability Adjustment Interest Rates Swap Adjustment Accumulated Other Comprehensive Loss Balance at September 30, 2015 $ (5,731 ) $ (6,257 ) $ — $ (11,988 ) Other comprehensive income (loss) before reclassifications 108 (1,991 ) (30 ) (1,913 ) Amounts reclassified from accumulated other comprehensive loss — 1,051 — 1,051 Net current-period other comprehensive loss $ 108 $ (940 ) $ (30 ) $ (862 ) Balance at September 30, 2016 $ (5,623 ) $ (7,197 ) $ (30 ) $ (12,850 ) Other comprehensive income (loss) before reclassifications 1,016 1,655 28 2,699 Amounts reclassified from accumulated other comprehensive loss — 894 6 900 Net current-period other comprehensive loss 1,016 2,549 34 3,599 Balance at September 30, 2017 $ (4,607 ) $ (4,648 ) $ 4 $ (9,251 ) |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table reflects the changes in accumulated other comprehensive loss related to the Company for September 30, 2017 and 2016: Amount reclassified from accumulated other comprehensive loss Details about accumulated other comprehensive loss components 2017 2016 Affected line item in the Consolidated Statement of Operations Amortization of Retirement plan liability: Prior service costs $ 15 $ — (1) Net actuarial loss 927 828 (1) Settlements/curtailments (48 ) 223 (1) 894 1,051 Total before taxes — — Income tax expense $ 894 $ 1,051 Net of taxes (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 7, Retirement Benefit Plans , of the consolidated financial statements for further information |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at September 30 consist of: 2017 2016 Raw materials and supplies $ 6,108 $ 7,724 Work-in-process 7,650 10,459 Finished goods 6,623 10,313 Total inventories $ 20,381 $ 28,496 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets by Major Class Subject to Amortization | The Company’s intangible assets by major asset class subject to amortization as of: September 30, 2017 Weighted Average Life at September 30, Original Cost Accumulated Amortization Impairment Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 2,776 $ 1,564 $ 310 $ 19 $ 921 Non-compete agreement 5 years 1,600 1,584 — — 16 Technology asset 5 years 1,869 749 — 50 1,170 Customer relationships 10 years 15,568 8,946 1,979 64 4,707 Total intangible assets $ 21,813 $ 12,843 $ 2,289 $ 133 $ 6,814 September 30, 2016 Intangible assets: Trade name 8 years $ 2,776 $ 1,240 $ — $ 9 $ 1,545 Non-compete agreement 5 years 1,600 1,547 — — 53 Technology asset 5 years 1,869 389 — 37 1,517 Customer relationships 10 years 15,568 7,571 — 26 8,023 Total intangible assets $ 21,813 $ 10,747 $ — $ 72 $ 11,138 |
Expected Future Amortization Expense | Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2018 $ 1,704 Fiscal year 2019 1,539 Fiscal year 2020 1,539 Fiscal year 2021 1,015 Fiscal year 2022 329 |
Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill were as follows: Balance at September 30, 2015 $ 16,480 Goodwill adjustment (589 ) Currency translation 21 Impairment adjustment $ (4,164 ) Balance at September 30, 2016 $ 11,748 Currency translation 422 Balance at September 30, 2017 $ 12,170 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at September 30 consist of: 2017 2016 Accrued employee compensation and benefits $ 4,309 $ 3,681 Accrued income taxes 901 264 Accrued legal and professional 497 124 Accrued workers’ compensation 237 324 Other accrued liabilities 847 841 Total accrued liabilities $ 6,791 $ 5,234 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt at September 30 consists of: 2017 2016 Revolving credit agreement $ 18,557 $ 12,751 Foreign subsidiary borrowings 8,346 9,540 Capital lease obligations 352 153 Term loan 4,060 16,429 Less: unamortized debt issuance cost (47 ) (241 ) Term loan less unamortized debt issuance cost 4,013 16,188 Total debt 31,268 38,632 Less – current maturities (26,117 ) (31,009 ) Total long-term debt $ 5,151 $ 7,623 |
Schedule of Maturities of Long-Term Debt | Payments on long-term debt under the Credit Facility and foreign term debt (excluding capital lease obligations, see Note 9, Commitments and Contingencies , of the consolidated financial statements) over the next 5 years are as follows: Minimum long-term debt payments 2018 $ 3,014 2019 2,195 2020 2,453 2021 279 2022 — 2023 and thereafter — Total Minimum long-term debt payments $ 7,941 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss from Continuing Operations Before Income Tax Benefit | The components of loss from operations before income tax benefit are as follows: Years Ended September 30, 2017 2016 U.S. $ (15,574 ) $ (11,506 ) Non-U.S. 2,434 (1,827 ) Loss before income tax provision (benefit) $ (13,140 ) $ (13,333 ) |
Schedule of Income Taxes from Continuing Operations Before Income Tax Benefit | Income taxes from operations before income tax provision (benefit) consist of the following: Years Ended September 30, 2017 2016 Current income tax provision (benefit): U.S. federal $ (64 ) $ (2,687 ) U.S. state and local (11 ) (111 ) Non-U.S. 951 94 Total current tax provision (benefit) 876 (2,704 ) Deferred income tax provision (benefit): U.S. federal 147 1,481 U.S. state and local 5 69 Non-U.S. 41 (844 ) Total deferred tax provision 193 706 Income tax provision (benefit) $ 1,069 $ (1,998 ) |
Income Tax Benefit from Continuing Operations | The income tax benefit from operations in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows: Years Ended September 30, 2017 2016 Loss before income tax benefit $ (13,140 ) $ (13,333 ) Income tax benefit at U.S. federal statutory rates $ (4,599 ) $ (4,667 ) Tax effect of: Foreign rate differential 120 254 State and local income taxes (6 ) (42 ) Impact of tax law changes (103 ) (338 ) Federal tax credits (252 ) (572 ) Valuation allowance 5,720 3,309 Other 189 58 Income tax provision (benefit) $ 1,069 $ (1,998 ) |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at September 30 consist of the following: 2017 2016 Deferred tax assets: Net U.S. operating loss carryforwards $ 5,188 $ 195 Net non-U.S. operating loss carryforwards 596 777 Employee benefits 2,461 3,366 Inventory reserves 1,240 1,032 Allowance for doubtful accounts 135 234 Capitalized research and development expenses — 870 Intangibles 4,873 4,364 Foreign tax credits 602 575 Other tax credits 994 1,006 Other 1,126 1,106 Total deferred tax assets 17,215 13,525 Deferred tax liabilities: Depreciation (8,854 ) (10,777 ) Unremitted foreign earnings (65 ) (65 ) Prepaid expenses (247 ) (566 ) Other tax credits (1,718 ) (647 ) Total deferred tax liabilities (10,884 ) (12,055 ) Net deferred tax assets (liabilities) 6,331 1,470 Valuation allowance (9,597 ) (4,399 ) Net deferred tax liabilities $ (3,266 ) $ (2,929 ) |
Summary of Activity Related to Uncertain Tax Position | A summary of activity related to the Company’s uncertain tax position is as follows: 2017 2016 Balance at beginning of year $ 69 $ 105 Decrease due to lapse of statute of limitations — (36 ) Balance at end of year $ 69 $ 69 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Net Pension Expense for Defined Benefit Plans | Net pension expense, benefit obligations and plan assets for the Company-sponsored defined benefit pension plans consists of the following: Years Ended September 30, 2017 2016 Service cost $ 324 $ 280 Interest cost 883 1,017 Expected return on plan assets (1,615 ) (1,632 ) Amortization of net loss 861 828 Settlement cost — 223 Net pension expense for defined benefit plan $ 453 $ 716 |
Roll Forward of Defined Benefit Pension Plan Obligations and Assets | The status of all defined benefit pension plans at September 30 is as follows: 2017 2016 Benefit obligations: Benefit obligations at beginning of year $ 29,731 $ 27,685 Service cost 324 280 Interest cost 883 1,017 Actuarial (loss) gain (1,292 ) 2,405 Benefits paid (1,740 ) (1,659 ) Currency translation 15 3 Benefit obligations at end of year $ 27,921 $ 29,731 Plan assets: Plan assets at beginning of year $ 21,344 $ 20,896 Actual return on plan assets 1,978 2,061 Employer contributions 109 46 Benefits paid (1,740 ) (1,659 ) Plan assets at end of year $ 21,691 $ 21,344 |
Net Plan Assets Recognized in the Consolidated Balance Sheets | Plans in which Benefit Obligations Exceed Assets at September 30, 2017 2016 Reconciliation of funded status: Plan assets less than projected benefit obligations $ (6,230 ) $ (8,387 ) Amounts recognized in accumulated other comprehensive loss: Net loss 8,406 10,926 Net amount recognized in the consolidated balance sheets $ 2,176 $ 2,539 Amounts recognized in the consolidated balance sheets are: Accrued liabilities (46 ) (46 ) Pension liability (6,184 ) (8,341 ) Accumulated other comprehensive loss – pretax 8,406 10,926 Net amount recognized in the consolidated balance sheets $ 2,176 $ 2,539 |
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Costs | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs during fiscal 2018 are as follows: Plans in which Plans in which Net loss $ — $ 669 |
Weighted-Average Assumptions Used in Developing Benefit Obligation and Net Pension Expense | Where applicable, the following weighted-average assumptions were used in developing the benefit obligation and the net pension expense for defined benefit pension plans: Years Ended 2017 2016 Discount rate for liabilities 3.6 % 3.1 % Discount rate for expenses 3.1 % 3.8 % Expected return on assets 7.9 % 8.0 % |
Fair Values and Asset Allocation Ranges of Defined Benefit Plan Investments | The following tables set forth the asset allocation of the Company’s defined benefit pension plan assets and summarize the fair values and levels within the fair value hierarchy for such plan assets as of September 30, 2017 and 2016: September 30, 2017 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 681 $ 681 $ — Large blend 9,788 9,788 — Large growth 470 470 — Mid blend 79 79 — Small blend 111 111 — Non-U.S. equity securities: Foreign large blend 1,731 1,731 — Diversified emerging markets 19 19 — U.S. debt securities: Inflation protected bond 1,089 1,089 — Intermediate term bond 7,240 5,065 2,175 High inflation bond 187 187 — Non-U.S. debt securities: Emerging markets bonds 77 77 — Stable value: Short-term bonds 219 219 — Total plan assets at fair value $ 21,691 $ 19,516 $ 2,175 September 30, 2016 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 492 $ 492 $ — Large blend 9,593 9,593 — Large growth 503 503 — Mid blend 57 57 — Small blend 56 56 — Non-U.S. equity securities: Foreign large blend 1,565 1,565 — Diversified emerging markets 18 18 — U.S. debt securities: Inflation protected bond 537 537 — Intermediate term bond 7,747 5,562 2,185 High inflation bond 360 360 — Non-U.S. debt securities: Emerging markets bonds 66 66 — Stable value: Short-term bonds 350 350 — Total plan assets at fair value $ 21,344 $ 19,159 $ 2,185 The “Asset Allocation Range” listed below anticipates these potential scenarios and provides flexibility for the Plan’s investments to vary around the objective without triggering a reallocation of the assets, as noted by the following: Percent of Plan Assets at September 30, Asset Allocation Range 2017 2016 U.S. equities 51 % 50 % 30% to 70% Non-U.S. equities 8 % 7 % 0% to 20% U.S. debt securities 39 % 41 % 20% to 70% Non-U.S. debt securities 1 % — % 0% to 10% Other securities 1 % 2 % 0% to 60% Total 100 % 100 % |
Changes in the Fair Value of Level 3 Defined Benefit Plan Investments | Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2017 and 2016 were as follows: 2017 2016 Balance at beginning of year $ 2,185 $ 2,045 Actual return on plan assets 26 126 Purchases and sales of plan assets, net (36 ) 14 Balance at end of year $ 2,175 $ 2,185 |
Schedule of Projected Future Defined Benefit Plan Payments | The following defined benefit payment amounts are expected to be made in the future: Years Ending September 30, Projected Benefit Payments 2018 $ 1,897 2019 1,723 2020 1,901 2021 1,920 2022 1,740 2023-2027 8,986 |
Schedule of Contributions in U.S. Multi-Employer Retirement Plan for Certain Union Employees | The Company contributes to one (1) U.S. multi-employer retirement plan for certain union employees, as follow: Pension Fund Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions by the Company Surcharge Imposed Expiration of Collective Bargaining Agreement 2017 2016 2017 2016 Fund ¹ Green Green No $ 58 $ 65 No 5/31/2020 ¹ The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund utilized the special 30 -year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Activity Related to Performance Shares | The following is a summary of activity related to performance shares: 2017 2016 Number of Shares Weighted Average Fair Value at Date of Grant Number of Weighted Average Outstanding at beginning of year 146 $ 13.07 98 $ 28.50 Restricted shares awarded 71 7.73 59 9.53 Restricted shares earned (29 ) 9.45 (20 ) 29.59 Performance shares awarded 69 7.45 102 10.40 Performance shares earned (10 ) 9.50 — — Awards forfeited (53 ) 17.75 (93 ) 20.58 Outstanding at end of year 194 $ 8.57 146 $ 13.07 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Rental Commitments Under Non-Cancelable Leases | At September 30, 2017, minimum rental commitments under non-cancelable leases are as follows: Year ending September 30, Capital Leases Operating Leases 2018 $ 123 $ 2,026 2019 114 1,831 2020 66 1,440 2021 66 1,300 2022 14 1,274 Thereafter — 17,524 Total minimum lease payments $ 383 $ 25,395 Plus: Amount representing interest (31 ) Present value of minimum lease payments $ 352 |
Schedule of Capital Leased Assets | At September 30, assets recorded under capital leases consist of the following: 2017 2016 Machinery and equipment $ 550 $ 250 Accumulated depreciation (162 ) (60 ) |
Business Information (Tables)
Business Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | 2017 2016 Long-Lived Assets United States $ 33,114 44,108 Europe 25,639 28,274 $ 58,753 72,382 |
Schedule of Maturities of Bargaining Agreements | The table below shows the expiration dates of the collective bargaining agreements. Plant locations Expiration date Cleveland, Ohio May 31, 2020 Alliance, Ohio * October 26, 2017 Maniago, Italy December 31, 2019 * Agreement ceased due to closure of Alliance facility. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |
Sep. 30, 2017USD ($)CustomerinstrumentSegmentshares | Sep. 30, 2016USD ($)CustomerSegmentshares | |
Accounting Policies [Line Items] | ||
Number of operating segments | Segment | 1 | 1 |
Allowance for doubtful accounts | $ 330,000 | $ 706,000 |
Accounts receivable, written off | 461,000 | 581,000 |
Bad debt expense | $ 77,000 | $ 359,000 |
Percentage of inventory estimated using LIFO method | 38.00% | 44.00% |
Reserve for obsolete and excess inventory | $ 3,859,000 | $ 3,308,000 |
Depreciation expense | 7,820,000 | 8,173,000 |
Impairment of assets to be disposed of | 4,786,000 | |
Impairment of machinery and equipment | 0 | |
Impairment of intangible assets | 2,289,000 | 0 |
ERP impairment charges | 174,000 | |
Cork, Ireland facility, accumulated depreciation | $ 51,661,000 | $ 50,079,000 |
Restricted shares included in calculation of net loss per share (in shares) | shares | 93,000 | 32,000 |
Research and development expense | $ 0 | $ 0 |
Revolver | $ 18,557,000 | 12,751,000 |
Interest Rate Swap | ||
Accounting Policies [Line Items] | ||
Number of interest rate swaps (instrument) | instrument | 1 | |
Interest rate swap agreement amount | $ 4,059,000 | |
Derivative asset | $ 4,000 | |
Derivative liability | $ 30,000 | |
Restricted Stock | ||
Accounting Policies [Line Items] | ||
Restricted shares included in calculation of net loss per share (in shares) | shares | 0 | 0 |
Subsidiaries | ||
Accounting Policies [Line Items] | ||
Rental income, quarterly installment | $ 103,000 | |
Cork, Ireland facility, carrying value | 1,447,000 | $ 1,496,000 |
Cork, Ireland facility, accumulated depreciation | 1,437,000 | |
Rental income | $ 413,000 | $ 413,000 |
Minimum | ||
Accounting Policies [Line Items] | ||
Intangible assets amortized over useful lives (in years) | 1 year | |
Maximum | ||
Accounting Policies [Line Items] | ||
Intangible assets amortized over useful lives (in years) | 10 years | |
Building and Building Improvements | Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 5 years | |
Building and Building Improvements | Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 40 years | |
Machinery and Equipment | ||
Accounting Policies [Line Items] | ||
Impairment of machinery and equipment | $ 2,497,000 | |
Machinery and Equipment | Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 3 years | |
Machinery and Equipment | Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 20 years | |
Computer Software | Minimum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 3 years | |
Computer Software | Maximum | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life (in years) | 7 years | |
Building, Machinery, and Equipment | Subsidiaries | ||
Accounting Policies [Line Items] | ||
Cork, Ireland facility, carrying value | $ 1,077,000 | |
Customer Concentration Risk | Sales Revenue, Net | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 22.00% | 21.00% |
Number of major customers | Customer | 2 | 2 |
Customer Concentration Risk | Sales Revenue, Net | Total Customers And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 35.00% | 46.00% |
Number of major customers | Customer | 3 | 4 |
Customer Concentration Risk | Sales Revenue, Net | Major Customer One And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 13.00% | 12.00% |
Customer Concentration Risk | Sales Revenue, Net | Major Customer Two And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | 12.00% |
Customer Concentration Risk | Sales Revenue, Net | Major Customer Three And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | 11.00% |
Customer Concentration Risk | Sales Revenue, Net | Major Customer Four And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | |
Customer Concentration Risk | Accounts Receivable | ||
Accounting Policies [Line Items] | ||
Number of major customers | Customer | 1 | 2 |
Customer Concentration Risk | Accounts Receivable | Total Customers And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Number of major customers | Customer | 3 | 4 |
Customer Concentration Risk | Accounts Receivable | Major Customer One And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 13.00% | 15.00% |
Customer Concentration Risk | Accounts Receivable | Major Customer Two And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 10.00% | 13.00% |
Customer Concentration Risk | Accounts Receivable | Major Customer Three And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 10.00% | 12.00% |
Customer Concentration Risk | Accounts Receivable | Major Customer Four And Their Subcontractors | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% | |
Customer Concentration Risk | Accounts Receivable | Customer One | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 10.00% | 14.00% |
Customer Concentration Risk | Accounts Receivable | Customer Two | ||
Accounting Policies [Line Items] | ||
Percentage of concentration risk | 11.00% |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment by Major Asset Class (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 91,169 | $ 99,037 |
Accumulated depreciation | 51,661 | 50,079 |
Property, plant and equipment, net | 39,508 | 48,958 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,005 | 979 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 15,084 | 15,393 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 75,080 | $ 82,665 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Dilutive Effect of The Company's Stock Options, Restricted Shares, and Performance Shares(Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||
Net loss | $ (14,209) | $ (11,335) |
Weighted-average common shares outstanding (basic and diluted) (in shares) | 5,487 | 5,475 |
Net loss per share – basic and diluted: | ||
Net Loss per share (basic and diluted) (in dollars per share) | $ (2.59) | $ (2.07) |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 93 | 32 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 60,370 | $ 73,069 |
Other comprehensive income (loss) before reclassifications | 2,699 | (1,913) |
Amounts reclassified from accumulated other comprehensive loss | 900 | 1,051 |
Net current-period other comprehensive loss | 3,599 | (862) |
Ending Balance | 50,131 | 60,370 |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (5,623) | (5,731) |
Other comprehensive income (loss) before reclassifications | 1,016 | 108 |
Income tax benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive loss | 1,016 | 108 |
Ending Balance | (4,607) | (5,623) |
Retirement Plan Liability Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (7,197) | (6,257) |
Other comprehensive income (loss) before reclassifications | 1,655 | (1,991) |
Income tax benefit | 3,758 | 3,758 |
Amounts reclassified from accumulated other comprehensive loss | 894 | 1,051 |
Net current-period other comprehensive loss | 2,549 | (940) |
Ending Balance | (4,648) | (7,197) |
Interest Rates Swap Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (30) | 0 |
Other comprehensive income (loss) before reclassifications | 28 | (30) |
Income tax benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 6 | 0 |
Net current-period other comprehensive loss | 34 | (30) |
Ending Balance | 4 | (30) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (12,850) | (11,988) |
Ending Balance | $ (9,251) | $ (12,850) |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Reclassification Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Prior service costs | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount reclassified from accumulated other comprehensive loss, before taxes | [1] | $ 15 | $ 0 |
Net actuarial loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount reclassified from accumulated other comprehensive loss, before taxes | [1] | 927 | 828 |
Settlements/curtailments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount reclassified from accumulated other comprehensive loss, before taxes | [1] | (48) | 223 |
Retirement Plan Liability Adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amount reclassified from accumulated other comprehensive loss, before taxes | 894 | 1,051 | |
Income tax expense | 0 | 0 | |
Net of taxes | $ 894 | $ 1,051 | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 7, Retirement Benefit Plans, of the consolidated financial statements for further information. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Components of inventories | ||
Raw materials and supplies | $ 6,108 | $ 7,724 |
Work-in-process | 7,650 | 10,459 |
Finished goods | 6,623 | 10,313 |
Total inventories | 20,381 | 28,496 |
Additional amount that would have been reported in inventory if FIFO method had been used | 8,319 | 8,026 |
LIFO expense (income) | $ 293 | $ (482) |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Intangible Assets by Major Class Subject to Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Components of intangible assets by major class subject to amortization | ||
Original Cost | $ 21,813 | $ 21,813 |
Accumulated Amortization | 12,843 | 10,747 |
Impairment | 2,289 | 0 |
Currency Translation | 133 | 72 |
Net Book Value | $ 6,814 | $ 11,138 |
Trade name | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 8 years | 8 years |
Original Cost | $ 2,776 | $ 2,776 |
Accumulated Amortization | 1,564 | 1,240 |
Impairment | 310 | 0 |
Currency Translation | 19 | 9 |
Net Book Value | $ 921 | $ 1,545 |
Non-compete agreement | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 5 years | 5 years |
Original Cost | $ 1,600 | $ 1,600 |
Accumulated Amortization | 1,584 | 1,547 |
Impairment | 0 | 0 |
Currency Translation | 0 | 0 |
Net Book Value | $ 16 | $ 53 |
Technology asset | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 5 years | 5 years |
Original Cost | $ 1,869 | $ 1,869 |
Accumulated Amortization | 749 | 389 |
Impairment | 0 | 0 |
Currency Translation | 50 | 37 |
Net Book Value | $ 1,170 | $ 1,517 |
Customer relationships | ||
Components of intangible assets by major class subject to amortization | ||
Weighted Average Life at September 30, | 10 years | 10 years |
Original Cost | $ 15,568 | $ 15,568 |
Accumulated Amortization | 8,946 | 7,571 |
Impairment | 1,979 | 0 |
Currency Translation | 64 | 26 |
Net Book Value | $ 4,707 | $ 8,023 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | May 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 2,168,000 | $ 2,593,000 | ||
Goodwill | 12,170,000 | 11,748,000 | $ 16,480,000 | |
Goodwill impairment | 0 | $ 4,164,000 | ||
Cleveland | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 3,493,000 | |||
Goodwill impairment | $ 0 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Expected Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Amortization Expense | |
Fiscal year 2018 | $ 1,704 |
Fiscal year 2019 | 1,539 |
Fiscal year 2020 | 1,539 |
Fiscal year 2021 | 1,015 |
Fiscal year 2022 | $ 329 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Changes in Net Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 11,748,000 | $ 16,480,000 |
Goodwill adjustment | (589,000) | |
Currency translation | 422,000 | 21,000 |
Impairment adjustment | 0 | (4,164,000) |
Balance at end of period | $ 12,170,000 | $ 11,748,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Components of Accrued liabilities | ||
Accrued employee compensation and benefits | $ 4,309 | $ 3,681 |
Accrued income taxes | 901 | 264 |
Accrued legal and professional | 497 | 124 |
Accrued workers’ compensation | 237 | 324 |
Other accrued liabilities | 847 | 841 |
Total accrued liabilities | $ 6,791 | $ 5,234 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Components of long-term debt | ||
Total debt | $ 31,268 | $ 38,632 |
Less – current maturities | (26,117) | (31,009) |
Total long-term debt | 5,151 | 7,623 |
Capital lease obligations | ||
Components of long-term debt | ||
Total debt | 352 | 153 |
Term loan | ||
Components of long-term debt | ||
Term loan | 4,060 | 16,429 |
Less: unamortized debt issuance cost | (47) | (241) |
Total debt | 4,013 | 16,188 |
Revolving credit agreement | Line of Credit | ||
Components of long-term debt | ||
Total debt | 18,557 | 12,751 |
Foreign subsidiary borrowings | ||
Components of long-term debt | ||
Total debt | $ 8,346 | $ 9,540 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Nov. 09, 2016 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Aug. 31, 2017 | Aug. 04, 2017 | Aug. 03, 2017 | Nov. 30, 2016 | Jan. 01, 2016 | Jun. 26, 2015 |
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding borrowings | $ 7,941,000 | |||||||||
Foreign debt borrowings, short-term borrowings | 18,557,000 | $ 12,751,000 | ||||||||
Current maturities of long-term debt | 7,560,000 | 18,258,000 | ||||||||
Write off of debt issuance cost | 323,000 | |||||||||
Secured Debt | Forecast | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Reduction of term facility | $ 700,000 | |||||||||
Foreign subsidiary borrowings | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding borrowings | 8,346,000 | 9,540,000 | ||||||||
Foreign debt borrowings, current | 5,805,000 | 5,833,000 | ||||||||
Foreign debt borrowings, short-term borrowings | 2,618,000 | 3,262,000 | ||||||||
Current maturities of long-term debt | 1,340,000 | 2,014,000 | ||||||||
Foreign debt borrowings, factoring payable, current | 1,847,000 | 557,000 | ||||||||
Receivables pledged as collateral, carrying value | $ 3,548,000 | $ 1,156,000 | ||||||||
Foreign subsidiary borrowings | Euro Interbank Offered Rate (Euribor) | Minimum | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Euribor variable interest rates | 1.00% | |||||||||
Foreign subsidiary borrowings | Euro Interbank Offered Rate (Euribor) | Maximum | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Euribor variable interest rates | 4.00% | |||||||||
2016 Amended and Restated Credit and Security Agreement | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, maximum borrowing capacity | $ 39,871,000 | |||||||||
Non-U.S. subsidiaries stock percentage pledged | 65.00% | |||||||||
Debt issuance costs, gross | $ 562,000 | $ 562,000 | ||||||||
Debt issuance costs, amount | $ 769,000 | |||||||||
2016 Amended and Restated Credit and Security Agreement | Line of Credit | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt issuance cost related to revolving credit facility | 707,000 | |||||||||
Accumulated amortization of debt issuance costs, revolver | $ 282,000 | |||||||||
2016 Amended and Restated Credit and Security Agreement | Secured Debt | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Issued amount of debt | 4,871,000 | |||||||||
Installment payment | $ 81,000 | |||||||||
Installment payment starting date | Dec. 1, 2016 | |||||||||
Debt issuance costs, gross | $ 61,000 | |||||||||
Accumulated amortization of debt issuance costs, term loan | $ 14,000 | |||||||||
2016 Amended and Restated Credit and Security Agreement | Secured Debt | London Interbank Offered Rate (LIBOR) | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Basis spread on LIBOR | 4.25% | |||||||||
Weighted average interest rate | 5.50% | 3.80% | ||||||||
Fixed interest rate after effect of interest rate swap | 5.80% | 3.90% | ||||||||
2016 Amended and Restated Credit and Security Agreement | Revolving credit agreement | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, maximum borrowing capacity | $ 35,000,000 | |||||||||
2016 Amended and Restated Credit and Security Agreement | Revolving credit agreement | Minimum | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Commitment fee | 0.15% | |||||||||
2016 Amended and Restated Credit and Security Agreement | Revolving credit agreement | Maximum | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Commitment fee | 0.375% | |||||||||
2016 Amended and Restated Credit and Security Agreement | Revolving credit agreement | London Interbank Offered Rate (LIBOR) | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Basis spread on LIBOR | 3.75% | |||||||||
Weighted average interest rate | 4.80% | 3.90% | ||||||||
2015 Credit Agreement | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt issuance costs, gross | $ 724,000 | |||||||||
Accumulated amortization of debt issuance costs, term loan | $ 194,000 | |||||||||
2015 Credit Agreement | Secured Debt | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Issued amount of debt | $ 20,000,000 | |||||||||
Installment payment | $ 714,000 | |||||||||
Debt agreement term | 5 years | |||||||||
2015 Credit Agreement | Revolving credit agreement | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | $ 20,000,000 | ||||||||
Non-U.S. subsidiaries stock percentage pledged | 65.00% | |||||||||
Debt agreement term | 5 years | |||||||||
Credit facility accordion feature, increase amount | $ 15,000,000 | |||||||||
Second Amendment Agreement | Line of Credit | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, maximum borrowing capacity | $ 30,000,000 | $ 35,000,000 |
Debt - Schedule of Minimum Long
Debt - Schedule of Minimum Long-term Debt Payments (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 3,014 |
2,019 | 2,195 |
2,020 | 2,453 |
2,021 | 279 |
2,022 | 0 |
2023 and thereafter | 0 |
Total Minimum long-term debt payments | $ 7,941 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Loss from Continuing Operations Before Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Components of income Before Income tax provision | ||
U.S. | $ (15,574) | $ (11,506) |
Non-U.S. | 2,434 | (1,827) |
Loss from operations before income tax expense (benefit) | $ (13,140) | $ (13,333) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes from Continuing Operations Before Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Current income tax provision (benefit): | ||
U.S. federal | $ (64) | $ (2,687) |
U.S. state and local | (11) | (111) |
Non-U.S. | 951 | 94 |
Total current tax provision (benefit) | 876 | (2,704) |
Deferred income tax provision (benefit): | ||
U.S. federal | 147 | 1,481 |
U.S. state and local | 5 | 69 |
Non-U.S. | 41 | (844) |
Total deferred tax provision | 193 | 706 |
Income tax provision (benefit) | $ 1,069 | $ (1,998) |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Provision Accompanying Consolidated Statements of Operation | ||
Loss before income tax benefit | $ (13,140) | $ (13,333) |
Income tax benefit at U.S. federal statutory rates | (4,599) | (4,667) |
Tax effect of: | ||
Foreign rate differential | 120 | 254 |
State and local income taxes | (6) | (42) |
Impact of tax law changes | (103) | (338) |
Federal tax credits | (252) | (572) |
Valuation allowance | 5,720 | 3,309 |
Other | 189 | 58 |
Income tax provision (benefit) | $ 1,069 | $ (1,998) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Net U.S. operating loss carryforwards | $ 5,188 | $ 195 |
Net non-U.S. operating loss carryforwards | 596 | 777 |
Employee benefits | 2,461 | 3,366 |
Inventory reserves | 1,240 | 1,032 |
Allowance for doubtful accounts | 135 | 234 |
Capitalized research and development expenses | 0 | 870 |
Intangibles | 4,873 | 4,364 |
Foreign tax credits | 602 | 575 |
Other tax credits | 994 | 1,006 |
Other | 1,126 | 1,106 |
Total deferred tax assets | 17,215 | 13,525 |
Deferred tax liabilities: | ||
Depreciation | (8,854) | (10,777) |
Unremitted foreign earnings | (65) | (65) |
Prepaid expenses | (247) | (566) |
Other tax credits | (1,718) | (647) |
Total deferred tax liabilities | (10,884) | (12,055) |
Net deferred tax assets (liabilities) | 6,331 | 1,470 |
Valuation allowance | (9,597) | (4,399) |
Net deferred tax liabilities | $ (3,266) | $ (2,929) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Alternative minimum tax | $ 28 | |
Portion of tax loss carryforward offset by unrealized stock compensation deduction | 5 | |
Liability for uncertain tax positions, excluding any related interest and penalties | 69 | $ 69 |
Portion of liability related to uncertain tax position which, if recognized, would impact the effective tax rate | 69 | |
Accrued (reversal of accrued) interest | 24 | |
Interest and penalties from continuing operations | 3 | |
Undistributed earnings of foreign subsidiaries | 11,427 | |
Revenue commissioners, Ireland | Subsidiaries | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward | 5,473 | |
Foreign tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 602 | |
Domestic tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 13,561 | |
State tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 165 | |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward | 23,848 | |
General Business Tax Credit Carryforward | Domestic tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | $ 758 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Uncertain Tax Position (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of activity related to uncertain tax positions | ||
Balance at beginning of year | $ 69 | $ 105 |
Decrease due to lapse of statute of limitations | 0 | (36) |
Balance at end of year | $ 69 | $ 69 |
Retirement Benefit Plans - Net
Retirement Benefit Plans - Net Pension Expense for Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Components of net periodic benefit cost | ||
Service cost | $ 324 | $ 280 |
Interest cost | 883 | 1,017 |
Pension Plan | United States | ||
Components of net periodic benefit cost | ||
Service cost | 324 | 280 |
Interest cost | 883 | 1,017 |
Expected return on plan assets | (1,615) | (1,632) |
Amortization of net loss | 861 | 828 |
Settlement cost | 0 | 223 |
Net pension expense for defined benefit plan | $ 453 | $ 716 |
Retirement Benefit Plans - Roll
Retirement Benefit Plans - Roll Forward of Defined Benefit Pension Plan Obligations and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Benefit obligations: | ||
Benefit obligations at beginning of year | $ 29,731 | $ 27,685 |
Service cost | 324 | 280 |
Interest cost | 883 | 1,017 |
Actuarial (loss) gain | (1,292) | 2,405 |
Benefits paid | (1,740) | (1,659) |
Currency translation | 15 | 3 |
Plan assets at end of year | 27,921 | 29,731 |
Plan assets: | ||
Plan assets at beginning of year | 21,344 | 20,896 |
Actual return on plan assets | 1,978 | 2,061 |
Employer contributions | 109 | 46 |
Benefits paid | (1,740) | (1,659) |
Plan assets at end of year | $ 21,691 | $ 21,344 |
Retirement Benefit Plans - Ne55
Retirement Benefit Plans - Net Plan Assets Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Reconciliation of funded status: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | $ (6,230) | $ (8,387) |
Amounts recognized in accumulated other comprehensive loss: | ||
Net loss, Plans in which Benefit Obligations Exceed Assets | 8,406 | 10,926 |
Net amount recognized in the consolidated balance sheets, Plans in which Benefit Obligations Exceed Assets | 2,176 | 2,539 |
Amounts recognized in the consolidated balance sheets are: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (6,230) | (8,387) |
Accumulated other comprehensive loss pretax, Plans in which Benefit Obligations Exceed Assets | 8,406 | 10,926 |
Accrued liabilities | ||
Reconciliation of funded status: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (46) | (46) |
Amounts recognized in the consolidated balance sheets are: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (46) | (46) |
Pension liability | ||
Reconciliation of funded status: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | (6,184) | (8,341) |
Amounts recognized in the consolidated balance sheets are: | ||
Plans in which Benefit Obligations Exceed Assets at September 30, | $ (6,184) | $ (8,341) |
Retirement Benefit Plans - Amou
Retirement Benefit Plans - Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Costs (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |
Net loss, Plans in which Assets Exceed Benefit Obligations | $ 0 |
Net loss, Plans in which Benefit Obligations Exceed Assets | $ 669 |
Retirement Benefit Plans - Weig
Retirement Benefit Plans - Weighted-Average Assumptions Used in Developing Benefit Obligation and Net Pension Expense (Details) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Developing the benefit obligation and the net pension expense for defined benefit pension plans | ||
Discount rate for liabilities | 3.60% | 3.10% |
Discount rate for expenses | 3.10% | 3.80% |
Expected return on assets | 7.90% | 8.00% |
Retirement Benefit Plans - Asse
Retirement Benefit Plans - Asset Allocation of Defined Benefit Pension Plan Assets and Fair Values and Levels in Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 21,691 | $ 21,344 | $ 20,896 |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 19,516 | 19,159 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 2,175 | 2,185 | $ 2,045 |
Large value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 681 | 492 | |
Large value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 681 | 492 | |
Large value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Large blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 9,788 | 9,593 | |
Large blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 9,788 | 9,593 | |
Large blend | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Large growth | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 470 | 503 | |
Large growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 470 | 503 | |
Large growth | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Mid blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 79 | 57 | |
Mid blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 79 | 57 | |
Mid blend | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Small blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 111 | 56 | |
Small blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 111 | 56 | |
Small blend | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Foreign large blend | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 1,731 | 1,565 | |
Foreign large blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 1,731 | 1,565 | |
Foreign large blend | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Diversified emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 19 | 18 | |
Diversified emerging markets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 19 | 18 | |
Diversified emerging markets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Inflation protected bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 1,089 | 537 | |
Inflation protected bond | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 1,089 | 537 | |
Inflation protected bond | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Intermediate term bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 7,240 | 7,747 | |
Intermediate term bond | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 5,065 | 5,562 | |
Intermediate term bond | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 2,175 | 2,185 | |
High inflation bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 187 | 360 | |
High inflation bond | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 187 | 360 | |
High inflation bond | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Emerging markets bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 77 | 66 | |
Emerging markets bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 77 | 66 | |
Emerging markets bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Short-term bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 219 | 350 | |
Short-term bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 219 | 350 | |
Short-term bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 0 | $ 0 |
Retirement Benefit Plans - Chan
Retirement Benefit Plans - Changes in the Fair Value of Level 3 Defined Benefit Plan Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in the fair value of the Company's Level 3 investments | ||
Plan assets at beginning of year | $ 21,344 | $ 20,896 |
Actual return on plan assets | 1,978 | 2,061 |
Plan assets at end of year | 21,691 | 21,344 |
Level 3 | ||
Changes in the fair value of the Company's Level 3 investments | ||
Plan assets at beginning of year | 2,185 | 2,045 |
Actual return on plan assets | 26 | 126 |
Purchases and sales of plan assets, net | (36) | 14 |
Plan assets at end of year | $ 2,175 | $ 2,185 |
Retirement Benefit Plans - As60
Retirement Benefit Plans - Asset Allocation Ranges of Defined Benefit Plan Investments (Details) | Sep. 30, 2017 | Sep. 30, 2016 |
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 100.00% | 100.00% |
U.S. equities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 51.00% | 50.00% |
U.S. equities | Minimum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 30.00% | |
U.S. equities | Maximum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 70.00% | |
Non-U.S. equities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 8.00% | 7.00% |
Non-U.S. equities | Minimum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 0.00% | |
Non-U.S. equities | Maximum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 20.00% | |
U.S. debt securities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 39.00% | 41.00% |
U.S. debt securities | Minimum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 20.00% | |
U.S. debt securities | Maximum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 70.00% | |
Non-U.S. debt securities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 1.00% | 0.00% |
Non-U.S. debt securities | Minimum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 0.00% | |
Non-U.S. debt securities | Maximum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 10.00% | |
Other securities | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Total | 1.00% | 2.00% |
Other securities | Minimum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 0.00% | |
Other securities | Maximum | ||
Asset Allocation Range provides flexibility for the Plan's investments | ||
Asset Allocations | 60.00% |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of non-discretionary regular matching contribution of company | 100.00% | |
Percentage of eligible compensation of deferral contribution, minimum | 1.00% | |
Percentage of eligible compensation | 80.00% | |
Percentage of eligible compensation of deferral contribution, maximum | 6.00% | |
Matching contribution expense for defined contribution plan | $ 574 | $ 647 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 91 |
Retirement Benefit Plans - Sche
Retirement Benefit Plans - Schedule of Projected Future Defined Benefit Plan Payments (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Projected Benefit Payments | |
2,018 | $ 1,897 |
2,019 | 1,723 |
2,020 | 1,901 |
2,021 | 1,920 |
2,022 | 1,740 |
2023-2027 | $ 8,986 |
Retirement Benefit Plans - Sc63
Retirement Benefit Plans - Schedule of Contributions in U.S. Multi-Employer Retirement Plan for Certain Union Employees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Multiemployer Plans [Line Items] | |||
Amortization Period of Losses Utilized under Pension Fund | 30 years | ||
Fund | |||
Multiemployer Plans [Line Items] | |||
Pension Protection Act Zone Status | [1] | Green | Green |
FIP/RP Status Pending/ Implemented | [1] | No | |
Contributions by the Company | [1] | $ 58 | $ 65 |
Surcharge Imposed | [1] | No | |
Expiration of Collective Bargaining Agreement | [1] | May 31, 2020 | |
[1] | The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund utilized the special 30-year amortization provided by Public law 111-192, section 211 to amortize its losses from 2008. |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding share awards earned and issued at greater than the target number of shares | 150.00% | |
Restricted shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 3 years | |
Restricted shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 1 year | |
2007 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate number of shares that may be awarded (in shares) | 646,000 | |
Exercise period for shares awarded under 2007 Plan | 10 years | |
Stock options may be awarded (in shares) | 413,000 | |
Stock-based compensation expense (benefit) | $ 404,000 | $ (474,000) |
Income tax benefits resulting from issuance common shares | 0 | $ 0 |
Total unrecognized compensation cost related to performance and restricted shares awarded | $ 698,000 | |
Period of recognized compensation cost | 1 year 5 months | |
2007 Plan | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise period for performance shares awarded under 2007 Plan | 3 years | |
2007 Plan | Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common shares earned as percentage of initial target number shares awarded | 150.00% | |
2007 Plan | Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ultimate number of common shares that may be earned (in shares) | 0 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Activity Related to Performance Shares (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Outstanding at beginning of period (in shares) | 146 | 98 |
Shares forfeited (in shares) | (53) | (93) |
Outstanding at end of period (in shares) | 194 | 146 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at beginning of period, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 13.07 | $ 28.50 |
Shares forfeited, Weighted Average Fair Value at Date of Grant (in dollars per share) | 17.75 | 20.58 |
Outstanding at end of period, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 8.57 | $ 13.07 |
Restricted shares | ||
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Shares awarded (in shares) | 71 | 59 |
Shares earned (in shares) | (29) | (20) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares awarded, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 7.73 | $ 9.53 |
Shares earned, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 9.45 | $ 29.59 |
Performance shares | ||
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Shares awarded (in shares) | 69 | 102 |
Shares earned (in shares) | (10) | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares awarded, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 7.45 | $ 10.40 |
Shares earned, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 9.50 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Loss Contingencies [Line Items] | ||
Assessed penalty | $ 127 | |
Rent expense | 1,925 | $ 1,313 |
Class Action Suit in Superior Court of California, Orange County - Wage-and-hour law violations | ||
Loss Contingencies [Line Items] | ||
Estimated loss on class action lawsuit | $ 385 |
Commitments and Contingencies67
Commitments and Contingencies - Schedule of Minimum Rental Commitments Under Non-Cancelable Leases (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Capital Leases | |
2,018 | $ 123 |
2,019 | 114 |
2,020 | 66 |
2,021 | 66 |
2,022 | 14 |
Thereafter | 0 |
Total minimum lease payments | 383 |
Plus: Amount representing interest | (31) |
Present value of minimum lease payments | 352 |
Operating Leases | |
2,018 | 2,026 |
2,019 | 1,831 |
2,020 | 1,440 |
2,021 | 1,300 |
2,022 | 1,274 |
Thereafter | 17,524 |
Total minimum lease payments | $ 25,395 |
Commitments and Contingencies68
Commitments and Contingencies - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Machinery and equipment | $ 550 | $ 250 |
Accumulated depreciation | $ (162) | $ (60) |
Business Information - Narrativ
Business Information - Narrative (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017USD ($)bargaining_unitsegmentemployee | Sep. 30, 2016USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of reportable segments | segment | 1 | |
Identifiable assets | $ 58,753 | $ 72,382 |
Number of employees represented by separate collective bargaining agreements | employee | 234 | |
Number of collective bargain agreements | bargaining_unit | 3 | |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Identifiable assets | $ 33,114 | 44,108 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Identifiable assets | 25,639 | 28,274 |
Ireland and Italy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Identifiable assets | $ 37,607 | $ 37,196 |
Sales Revenue, Net | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk based on geographic location, percent | 63.00% | 62.00% |
Sales Revenue, Net | Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk based on geographic location, percent | 27.00% | 22.00% |
Sales Revenue, Net | Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk based on geographic location, percent | 2.00% | 4.00% |
Business Information - Long-liv
Business Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 58,753 | $ 72,382 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 33,114 | 44,108 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 25,639 | $ 28,274 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Restructuring and Related Activities [Abstract] | |
Non-cash restructuring costs | $ 5,048 |
Asset impairment costs | 4,786 |
Accelerated depreciation costs | 262 |
Workforce reduction costs incurred | 215 |
Workforce reduction costs paid | $ 15 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | Dec. 15, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||
Gain on sale of building | $ (4,957) | $ (31) | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Proceeds from sale of building | $ 3,068 | ||
Buildings | Subsequent event | |||
Subsequent Event [Line Items] | |||
Gain on sale of building | $ 1,100 |
Valuation and Qualifying Acco73
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | $ 706 | $ 1,127 | |
Additions (Reductions) Charged to Expense | 77 | 359 | |
Additions (Reductions) Charged to Other Accounts | 8 | (199) | |
Deductions | [1] | (461) | (581) |
Valuation allowances and reserves, ending balance | 330 | 706 | |
Inventory obsolescence reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 3,308 | 3,022 | |
Additions (Reductions) Charged to Expense | 657 | 571 | |
Additions (Reductions) Charged to Other Accounts | 91 | 0 | |
Deductions | [2] | (197) | (285) |
Valuation allowances and reserves, ending balance | 3,859 | 3,308 | |
Inventory LIFO reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 8,026 | 8,508 | |
Additions (Reductions) Charged to Expense | 293 | (482) | |
Additions (Reductions) Charged to Other Accounts | 0 | 0 | |
Deductions | 0 | 0 | |
Valuation allowances and reserves, ending balance | 8,319 | 8,026 | |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 4,399 | 1,095 | |
Additions (Reductions) Charged to Expense | 6,117 | 3,304 | |
Additions (Reductions) Charged to Other Accounts | (919) | 0 | |
Deductions | 0 | 0 | |
Valuation allowances and reserves, ending balance | 9,597 | 4,399 | |
Workers’ compensation reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances and reserves, beginning balance | 324 | 688 | |
Additions (Reductions) Charged to Expense | 234 | 157 | |
Additions (Reductions) Charged to Other Accounts | 1 | 0 | |
Deductions | [3] | (322) | (521) |
Valuation allowances and reserves, ending balance | $ 237 | $ 324 | |
[1] | Accounts determined to be uncollectible, net of recoveries | ||
[2] | Inventory sold or otherwise disposed | ||
[3] | (c)Payment of workers’ compensation claims |