Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Oct. 31, 2019 | Mar. 31, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SIFCO INDUSTRIES INC | ||
Entity Central Index Key | 0000090168 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
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 | Non-accelerated Filer | ||
Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,011,311 | ||
Entity Common Stock, Shares Outstanding | 5,773,318 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 112,454 | $ 111,212 |
Cost of goods sold | 101,817 | 101,110 |
Gross profit | 10,637 | 10,102 |
Selling, general and administrative expenses | 15,274 | 15,216 |
Goodwill impairment | 8,294 | 0 |
Amortization of intangible assets | 1,648 | 1,705 |
Gain on disposal and impairment of assets | (7,535) | (905) |
Operating loss | (7,044) | (5,914) |
Interest income | (4) | (8) |
Interest expense | 1,057 | 2,139 |
Foreign currency exchange gain, net | (7) | (114) |
Other expense (income), net | 117 | (400) |
Loss before income tax benefit | (8,207) | (7,531) |
Income tax benefit | (701) | (361) |
Net loss | $ (7,506) | $ (7,170) |
Net loss per share: | ||
Basic (in dollars per share) | $ (1.35) | $ (1.30) |
Diluted (in dollars per share) | $ (1.35) | $ (1.30) |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||
Weighted-average number of common shares (basic) (in shares) | 5,566 | 5,523 |
Weighted-average number of common shares (diluted) (in shares) | 5,566 | 5,523 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7,506) | $ (7,170) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment, net of tax $0 and $0, respectively | (712) | (348) |
Retirement plan liability adjustment, net of tax $0 and $0, respectively | (3,968) | 974 |
Interest rate swap agreement adjustment, net of tax $0 and $0, respectively | 0 | |
Interest rate swap agreement adjustment, net of tax $0 and $0, respectively | (4) | |
Comprehensive loss | $ (12,186) | $ (6,548) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
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 | |
Interest rate swap agreement adjustment, tax | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 341 | $ 1,252 |
Receivables, net of allowance for doubtful accounts of $592 and $520, respectively | 23,159 | 28,001 |
Other receivables | 3,500 | 0 |
Contract asset | 10,349 | 0 |
Inventories, net | 10,509 | 18,269 |
Refundable income taxes | 141 | 126 |
Prepaid expenses and other current assets | 1,459 | 1,900 |
Assets held for sale | 0 | 35 |
Total current assets | 49,458 | 49,583 |
Property, plant and equipment, net | 39,610 | 35,390 |
Intangible assets, net | 3,320 | 5,076 |
Goodwill | 3,493 | 12,020 |
Other assets | 218 | 168 |
Total assets | 96,099 | 102,237 |
Current liabilities: | ||
Current maturities of long-term debt | 5,786 | 5,944 |
Revolver | 15,542 | 21,253 |
Accounts payable | 19,799 | 15,513 |
Accrued liabilities | 5,557 | 5,107 |
Total current liabilities | 46,684 | 47,817 |
Long-term debt, net of current maturities | 2,052 | 2,332 |
Deferred income taxes | 1,718 | 2,413 |
Pension liability | 9,528 | 5,339 |
Other long-term liabilities | 63 | 147 |
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 – 5,777 at September 30, 2019 and 5,690 at September 30, 2018 | 5,777 | 5,690 |
Additional paid-in capital | 10,438 | 10,031 |
Retained earnings | 33,148 | 37,097 |
Accumulated other comprehensive loss | (13,309) | (8,629) |
Total shareholders’ equity | 36,054 | 44,189 |
Total liabilities and shareholders’ equity | $ 96,099 | $ 102,237 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Doubtful Accounts | $ 592 | $ 520 |
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) | 5,777,000 | 5,690,000 |
Common shares, shares outstanding (in shares) | 5,777,000 | 5,690,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (7,506) | $ (7,170) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 7,525 | 8,459 |
Amortization and write-off of debt issuance costs | 99 | 205 |
Gain on disposal of operating assets or impairment of operating assets | 282 | 905 |
Gain on insurance proceeds received for damaged property | (7,253) | 0 |
Loss on extinguishment of debt | 0 | 496 |
LIFO (benefit) expense | (75) | 560 |
Share transactions under employee stock plan | 515 | 608 |
Deferred income taxes | (565) | (823) |
Goodwill impairment | 8,294 | 0 |
Other long-term liabilities | 162 | (151) |
Changes in operating assets and liabilities: | ||
Receivables | 4,506 | (2,163) |
Contract assets | (209) | 0 |
Inventories | 1,025 | 1,479 |
Refundable income taxes | (15) | 167 |
Prepaid expenses and other current assets | (3,069) | (607) |
Other assets | (50) | 109 |
Accounts payable | 2,046 | 2,706 |
Accrued liabilities | 714 | (824) |
Accrued income tax and other | (133) | (851) |
Net cash provided by operating activities | 5,729 | 1,295 |
Cash flows from investing activities: | ||
Insurance proceeds received for damaged property | 8,363 | 0 |
Proceeds from disposal of property, plant and equipment | 317 | 3,519 |
Capital expenditures | (9,447) | (2,831) |
Net cash provided by (used for) investing activities | (767) | 688 |
Cash flows from financing activities: | ||
Proceeds from term note | 1,505 | 1,218 |
Repayments of term note | (1,424) | (5,505) |
Proceeds from revolving credit agreement | 80,154 | 87,102 |
Repayments of revolving credit agreement | (85,865) | (84,522) |
Proceeds from short-term debt borrowings | 6,363 | 6,535 |
Repayments of short-term debt borrowings | (6,408) | (6,620) |
Payments for debt financing | (132) | (312) |
Share retirement | (62) | 0 |
Net cash used for financing activities | (5,869) | (2,104) |
Decrease in cash and cash equivalents | (907) | (121) |
Cash and cash equivalents at beginning of year | 1,252 | 1,399 |
Effects of exchange rate changes on cash and cash equivalents | (4) | (26) |
Cash and cash equivalents at end of year | 341 | 1,252 |
Cash paid during the year: | ||
Cash paid for interest | (952) | (1,424) |
Cash paid for income tax, net | (123) | (99) |
Non-cash investing and financing activities: | ||
Capital expenditures funded by capital lease borrowings | 0 | 92 |
Additions to property, plant & equipment - incurred but not yet paid | $ 2,480 | $ 190 |
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, 2017 | $ 50,131 | $ 5,596 | $ 9,519 | $ 44,267 | $ (9,251) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (6,548) | (7,170) | 622 | ||
Performance and restricted share expense | 620 | 620 | |||
Share transactions under employee stock plans | (14) | 94 | (108) | ||
Ending balance at Sep. 30, 2018 | 44,189 | 5,690 | 10,031 | 37,097 | (8,629) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (12,186) | (7,506) | (4,680) | ||
Shares retired | (62) | (21) | (41) | ||
Performance and restricted share expense | 511 | 511 | |||
Share transactions under employee stock plans | 4 | 108 | (104) | ||
Ending balance at Sep. 30, 2019 | $ 36,054 | $ 5,777 | $ 10,438 | $ 33,148 | $ (13,309) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
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. 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, 2018. D. CONCENTRATIONS OF CREDIT RISK Receivables are presented net of allowance for doubtful accounts of $592 and $520 at September 30, 2019 and 2018, 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 2019 and 2018, $33 and $186 , respectively, of accounts receivable were written off against the allowance for doubtful accounts. Bad debt expense totaled $39 and $415 in fiscal 2019 and fiscal 2018, 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 2019, 44% of the Company’s consolidated net sales were from three of its largest customers; and 50% of the Company's consolidated net sales were from the four largest customers and their direct subcontractors, which individually accounted for 14% , 13% , 12% and 11% , of consolidated net sales, respectively. In fiscal 2018, 31% of the Company’s consolidated net sales were from two of its largest customers; and 38% of the Company's consolidated net sales were from three of the largest customers and their direct subcontractors which individually accounted for 14% , 12% and 12% , of consolidated net sales, respectively. Other than what has been disclosed, no other single customer or group represented greater than 10% of total net sales in fiscal 2019 and 2018. At September 30, 2019, two 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 15% , 14% , and 12% of total net accounts receivable, respectively. At September 30, 2018, three of the Company’s largest customers had outstanding net accounts receivable which individually accounted for 10% of total net accounts receivable; and five of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 16% , 14% , 12% , 11% , and 11% of total net accounts receivable, 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, 2019. E. INVENTORY VALUATION For a portion of the Company's inventory, cost is determined using the last-in, first-out (“LIFO”) method. For approximately 27% and 54% of the Company’s inventories at September 30, 2019 and 2018, 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, which are stated at the lower cost or net realizable value. 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 $3,335 and $3,979 at September 30, 2019 and 2018, 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, whichever is less (included in buildings). The Company's property, plant and equipment assets by major asset class at September 30 consist of: 2019 2018 Property, plant and equipment: Land $ 964 $ 995 Buildings 15,805 15,365 Machinery and equipment 82,379 76,465 Total property, plant and equipment 99,148 92,825 Less: Accumulated depreciation 59,538 57,435 Property, plant and equipment, net $ 39,610 $ 35,390 The (gain) loss on disposal of operating assets is included as a separate line item in the accompanying consolidated statements of operations. Depreciation expense was $5,877 and $6,754 in fiscal 2019 and 2018, respectively. G. ASSET IMPAIRMENT The Company reviews the carrying value of its long-lived assets ("asset groups"), including property, plant and equipment, when events and circumstances indicate a triggering event has occurred. This review is performed using estimates of future undiscounted cash flows, which include proceeds from disposal of assets. Under the Accounting Standard Codification ("ASC") 360 ("Topic 360"), 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. The Company experienced three triggering events in fiscal 2019 requiring the review of two asset groups to determine if the carrying value of each asset group is recoverable. Certain qualitative factors were triggered at its Orange, California ("Orange") location. See Note 10, Commitments and Contingencies, of the consolidated financial statements, for further discussion on the evaluation of its long-lived assets as it relates to the Orange asset group. The Maniago, Italy ("Maniago") location triggered certain qualitative factors, which led to an assessment of its long-lived assets as of May 31, 2019 and September 30, 2019, respectively, due to the continued challenges on operating income trends for the respective asset group. The results of management's analysis on the asset group's recoverability at interim and at year-end, respectively, indicated that the long-lived assets and definite lived intangible assets were recoverable and did not require further review for impairment. H. ASSETS HELD FOR SALE The assets held for sale at September 30, 2019 and 2018, were $0 and $35 , respectively. The balance remaining at September 30, 2018 relates to the Alliance building and certain machinery and equipment, which the Company sold in the first quarter of fiscal 2019 for a gain on sale of asset within the consolidated statements of operations of $282 . In October 2018, the Company executed a purchase agreement and finalized the sale transaction with a buyer for the Alliance building and land. The Company received cash proceeds for both the building and machinery and equipment, less cost to sell, of approximately $317 , which is recorded as part of a gain on disposal and impairment of asset within the consolidated statements of operations. 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, and if not, on an annual basis. The Company has selected July 31 as the annual impairment testing date. With 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 July 31, 2019 and 2018 annual impairment test results and its interim goodwill test performed as of May 31, 2019 for one of its reporting units. 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, of the consolidated financial statements. 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 in the calculation of diluted earnings per share because the effect would be anti-dilutive. The dilutive effect is as follows: September 30, 2019 2018 Net loss $ (7,506 ) $ (7,170 ) Weighted-average common shares outstanding (basic and diluted) 5,566 5,523 Net loss per share – basic and diluted: Net loss per share $ (1.35 ) $ (1.30 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 196 144 K. REVENUE RECOGNITION SIFCO adopted Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers ("Topic 606" and the "revenue standard") using the modified retrospective method and applied those provisions to all open contracts on October 1, 2018. The Company recognizes revenue in the following manner using the five-step revenue recognition model. A contract exists when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when performance obligations under the terms of the contract with a customer of the Company are satisfied. A portion of the Company's contracts are from purchase orders ("PO's"), which continue to be recognized as of a point in time when products are shipped from the Company's manufacturing facilities or at a later time when control of the products transfers to the customer. Revenue was previously recognized for certain long-term agreements ("LTA's"), firm fixed pricing agreements, and PO's at the point in time when the shipping terms were satisfied. Under the revenue standard, the Company now recognizes certain revenue over time as it satisfies the performance obligations because the conditions of transfer of control to the applicable customer are as follows: • Certain military contracts, which support providing specialized or unique goods to the U.S. government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation ("FAR"). The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process. • For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company's use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin. As a result of control transferring over time for these products, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company elected to use the cost to cost input method of progress based on costs incurred for these contracts because it best depicts the transfer of goods to the customer based on incurring costs on the contracts. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring goods. An accounting policy election to exclude from transaction price was made for sales, value add, and other taxes the Company collects concurrent with revenue-producing activities when applicable. The Company has elected to recognize incremental costs incurred to obtain contracts, which primarily represent commissions paid to third party sales agents where the amortization period would be less than one year, as selling, general and administrative expenses in the consolidated condensed statements of operations as incurred. The Company elected a practical expedient under Topic 606 to not adjust the promised amount of consideration for the effects of any significant financing component where the Company expects, at contract inception, that the period between when the Company transfers a promised good to a customer and when the customer pays for that good will be one year or less . Finally, the Company's policy is to exclude performance obligations resulting from contracts with a duration of one year or less from its disclosures related to remaining performance obligations. The amount of consideration to which the Company expects to be entitled in exchange for the goods is not generally subject to significant variations. The Company has elected to recognize the cost of freight and shipping when control of the products has transferred to the customer as an expense in cost of goods sold on the consolidated statements of operations, because those are costs incurred to fulfill the promise recognized, not a separate performance obligation. To the extent certain freight and shipping fees are charged to customers, the Company recognizes the amounts charged to customers as revenues and the related costs as an expense in cost of goods sold when control of the related products has transferred to the customer. Contracts are occasionally modified to account for changes in contract specifications, requirements, and pricing. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Substantially all of the Company's contract modifications are for goods that are distinct from the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is generally recognized on a prospective basis. Contract Balances Contract assets on the consolidated balance sheets are recognized when a good is transferred to the customer and the Company does not have the contractual right to bill for the related performance obligations. In these instances, revenue recognized exceeds the amount billed to the customer and the right to payment is not solely subject to the passage of time. Amounts do not exceed their net realizable value. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. Payment from customers are received based on the terms established in the contract with the customer. 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 On October 1, 2018, the Company adopted the revenue standard. The revenue standard introduces a five-step revenue recognition model in which a company should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The revenue standard also requires disclosure sufficient to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments and assets recognized from the cost to obtain or fulfill a contract. For further discussion, see Note 6, Revenue, of the consolidated financial statements. With the adoption by the Company of the revenue standard and all related amendments using the modified retrospective method and applied those provisions to all open contracts. The Company recognized the cumulative effect by initially applying the revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of changes made to the balance sheet as of October 1, 2018 for the adoption of the revenue standard was as follows: Balance at September 30, 2018 Effect of Accounting Change Balance at October 1, 2018 Assets Contract asset $ — $ 10,140 $ 10,140 Inventory, net 18,269 (6,542) 11,727 Liabilities & Shareholders' Equity Retained earnings 37,097 3,598 40,695 As part of the cumulative effect of the accounting change made as it pertains to the inventory, net line, the impact includes a reduction to the Company's LIFO reserve in the amount of $508 and excess and obsolete reserve of $366 . As noted in Note 2, Inventories, of the consolidated financial statements, a portion of the Company's inventory is on LIFO. The following tables reflect the changes to the financial statements line items as a result to the revenue standard. The adoption of the revenue standard did not have an impact on "net cash provided by operating activities" on the consolidated statement of cash flows as of September 30, 2019. Consolidated statement of operations for the year end September 30, 2019: Previous Accounting Method Effect of Accounting Change As Reported Net Sales $ 112,090 $ 364 $ 112,454 Cost of Goods Sold 102,276 (459 ) 101,817 Net loss (8,329 ) 823 (7,506 ) Basic and diluted net loss per share $ (1.50 ) $ 0.15 $ (1.35 ) Consolidated balance sheet as of September 30, 2019: Previous Accounting Method Effect of Accounting Change As Reported Assets Contract asset $ — $ 10,349 $ 10,349 Inventory, net 16,592 (6,083 ) 10,509 Liabilities & Shareholders' Equity Contract liabilities (included within accrued liabilities) 537 (155 ) 382 Deferred income taxes 1,718 — 1,718 Retained earnings 28,727 4,421 33,148 In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of the Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost," which was adopted by the Company on October 1, 2018. With the adoption of ASU 2017-07 on October 1, 2018, service cost is included in other employee compensation costs within operating income and is the only component that may be capitalized when applicable. The other components of net periodic benefit cost are presented separately outside of operating income. The Company retrospectively adopted ASU 2017-07 and reclassified prior-year amounts using a practical expedient that permits the usage of amounts disclosed in Note 8, Retirement Benefit Plans, of the consolidated financial statements. Results showed expense for fiscal 2019 and 2018 were reclassified from cost of sales and selling, general and administrative expenses, respectively, to other (income) expense, net and were not material to the consolidated statement of operations. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which amends certain cash flow issues which apply to all entities required to present a statement of cash flows. On October 1, 2018, the Company implemented provisions of ASU 2016-15 on a retrospective basis, which did not impact the consolidated statements of cash flows for the periods presented. N. IMPACT OF NEWLY ISSUED ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842). ” In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842) Targeted Improvements," (collectively with ASU 2016-02, "Topic 842"), which amends ASU 2016-02 and provides new and (optional) transition method permitting the recognition of a cumulative effect adjustment to retained earnings on the date of adoption, rather than requiring retrospective restatement of prior periods. Topic 842's objective is to increase transparency and comparability among entities by recognizing lease right-of-use assets ("ROU") and lease liabilities except for short-term leases on the consolidated balance sheet and provide additional disclosure information about leasing arrangements. Topic 842 modifies the definition of a lease to clarify that an arrangement contains a lease when such arrangement conveys the right to control the use of an identified asset. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within the year of adoption. The Company adopted this new guidance on October 1, 2019 and has elected to apply a modified retrospective transition approach as permitted, which includes a number of optional practical expedients that can be applied. This approach applies to all leases that exist at or commence after the date of our initial application. The Company will not adjust comparative periods or make the new required lease disclosure prior to the effective date. SIFCO will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, permits companies not to reassess prior conclusions about lease identification, lease classification and initial direct costs. SIFCO did not elect the hindsight practical expedient. The Company is in process of finalizing the design and implementation of internal controls, policies and processes to comply w ith the new standard . The adoption of Topic 842 will result in the recognition of ROU assets and lease liabilities of approximately $16,106 to $20,218 based on the lease portfolio as of October 1, 2019. The lease liability and the corresponding ROU asset primarily relate to one of its leased manufacturing buildings at its Orange location. The prospective impact on the consolidated statements of comprehensive loss under the new standard is substantially the same compared to the current lease accounting model and the impact to retained earnings will be minimal. The accounting for capital leases related to equipment, which are referred to as financing leases under the new standard, is substantially unchanged under the new standard and is not expected to have a material impact on our liquidity or consolidated statements of cash flows. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " and subsequent updates. ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance will replace the current incurred loss approach with an expected loss model. The new expected credit loss impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt instruments, net investments in leases, loan commitments and standby letters of credit. Upon initial recognition of the exposure, the expected credit loss model requires entities to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. ASU 2016-13 does not prescribe a specific method to make the estimate, so its application will require significant judgment. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)," which defers the effective date for public filers that are considered small reporting companies ("SRC") as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since SIFCO is a SRC, the Company does not need to implement until October 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company's results within the consolidated statements of operations and financial condition. 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. RESEARCH AND DEVELOPMENT Research and development costs are expensed as they are incurred. Research and development expenses were nominal in fiscal 2019 and 2018. Q. DEBT ISSUANCE COSTS Debt issuance costs are capitalized and amortized over the life of the related debt. Amortization of debt issuance costs is included in interest expense in the consolidated statements of operations. R. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as shown on the consolidated balance sheets at September 30 are as follows: 2019 2018 Foreign currency translation adjustment, net of income tax benefit of $0 and $0, respectively $ (5,667 ) $ (4,955 ) Net retirement plan liability adjustment, net of income tax benefit of ($3,758) and ($3,758), respectively (7,642 ) (3,674 ) Total accumulated other comprehensive loss $ (13,309 ) $ (8,629 ) 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, 2017 $ (4,607 ) $ (4,648 ) $ 4 $ (9,251 ) Other comprehensive income (loss) before reclassifications (348 ) 333 19 4 Amounts reclassified from accumulated other comprehensive income (loss) — 641 (23 ) 618 Net current-period other comprehensive loss (348 ) 974 (4 ) 622 Balance at September 30, 2018 (4,955 ) (3,674 ) — (8,629 ) Other comprehensive loss before reclassifications (712 ) (4,643 ) — (5,355 ) Amounts reclassified from accumulated other comprehensive income — 675 — 675 Net current-period other comprehensive loss (712 ) (3,968 ) — (4,680 ) Balance at September 30, 2019 $ (5,667 ) $ (7,642 ) $ — $ (13,309 ) The following table reflects the changes in accumulated other comprehensive loss related to the Company for September 30, 2019 and 2018: Amount reclassified from accumulated other comprehensive loss Details about accumulated other comprehensive loss components 2019 2018 Affected line item in the Consolidated Statement of Operations Amortization of Retirement plan liability: Prior service costs $ — $ — (1) Net actuarial gain (loss) (4,214 ) 974 (1) Settlements/curtailments 246 — (1) (3,968 ) 974 Total before taxes — — Income tax expense $ (3,968 ) $ 974 Net of taxes (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 8, Retirement Benefit Plans , of the consolidated financial statements for further information. S. 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. T. FAIR VALUE MEASUREMENTS Fair value is defined as the price tha |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at September 30 consist of: 2019 2018 Raw materials and supplies $ 4,512 $ 6,202 Work-in-process 2,721 6,626 Finished goods 3,276 5,441 Total inventories $ 10,509 $ 18,269 If the FIFO method had been used for the entire Company, inventories would have been $8,296 and $8,879 higher than reported at September 30, 2019 and 2018 , respectively. LIFO benefit was $75 in fiscal 2019 and LIFO expense was $560 in 2018. Since adopting the revenue standard, results show a reduction of inventory resulting in liquidations of LIFO inventory quantities. The estimated liquidation of LIFO inventory quantities results in a projected increase in cost of goods sold of approximately $340 as of September 30, 2019. These inventories were carried in prior periods at the then prevailing costs, which were accurate at the time, but differ from the current manufacturing cost and/or material costs. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 Weighted Average Life at September 30, Original Cost Accumulated Amortization Impairment Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 1,876 $ 1,503 $ — $ (13 ) $ 360 Technology asset 5 years 1,869 1,544 — (28 ) 297 Customer relationships 10 years 13,589 10,859 — (67 ) 2,663 Total intangible assets $ 17,334 $ 13,906 $ — $ (108 ) $ 3,320 September 30, 2018 Intangible assets: Trade name 8 years $ 2,466 $ 1,821 $ — $ (4 ) $ 641 Technology asset 5 years 1,869 1,128 — (10 ) 731 Customer relationships 10 years 13,589 9,866 — (19 ) 3,704 Total intangible assets $ 17,924 $ 12,815 $ — $ (33 ) $ 5,076 The amortization expense on identifiable intangible assets for fiscal 2019 and 2018 was $1,648 and $1,705 , respectively. Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2020 $ 1,486 Fiscal year 2021 999 Fiscal year 2022 314 Fiscal year 2023 237 Fiscal year 2024 164 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. During the third quarter of fiscal 2019, management reviewed qualitative factors under ASC 350 ("Topic 350"), which triggered an interim goodwill assessment as of May 31, 2019 for its Maniago reporting unit. Certain qualitative factors related to the soft energy market resulting in lower sales and continued under-performance relative to projected future operating results were factors that led the Company to perform an interim assessment of goodwill. 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 comparable, 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). 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. Upon completion of the interim impairment test for the Maniago reporting unit, it was determined that the fair value of the reporting unit for Maniago did not exceed the carrying value, which resulted in a full write-down of the reporting unit's goodwill in the third quarter of fiscal 2019 in the amount of $8,294 (non-cash charge). The Company completed its annual impairment test of goodwill as of July 31, 2019 for the Cleveland reporting unit, and for both the Cleveland and Maniago reporting units as of July 31, 2018. Upon completion of the annual impairment testing for the Cleveland reporting unit, it was determined that the fair value of the reporting unit exceeds the carrying value. As such, no additional impairment of goodwill existed as of September 30, 2019 and no impairment existed for the Cleveland and Maniago reporting units as of September 30, 2018, respectively. Goodwill is expected to be deductible for tax purposes. Changes in the net carrying amount of goodwill were as follows: Balance at September 30, 2017 $ 12,170 Currency translation (150 ) Balance at September 30, 2018 12,020 Goodwill impairment adjustment (8,294 ) Currency translation (233 ) Balance at September 30, 2019 $ 3,493 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at September 30 consist of: 2019 2018 Accrued employee compensation and benefits $ 4,235 $ 3,864 Other accrued liabilities 1,322 1,243 Total accrued liabilities $ 5,557 $ 5,107 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at September 30 consists of: 2019 2018 Revolving credit agreement $ 15,542 $ 21,253 Foreign subsidiary borrowings 6,592 7,949 Capital lease obligations 138 327 Other debt 1,133 — Less: unamortized debt issuance cost (25 ) — Other loan less unamortized debt issuance cost 1,108 — Total debt 23,380 29,529 Less – current maturities (21,328 ) (27,197 ) Total long-term debt $ 2,052 $ 2,332 Credit Agreement and Security Agreement of 2018 On August 8, 2018, the Company entered into a new asset-based Credit Agreement ("Credit Agreement") and a Security Agreement (“Security Agreement”) with a new lender. The Credit Agreement matures on August 6, 2021 and is comprised of a senior secured revolving credit facility of a maximum borrowing of $30,000 . The Credit Agreement also has an accordion feature, which allows the Company to increase maximum borrowings by up to $10,000 upon consent of the existing lender or upon additional lenders joining the Credit Agreement. The terms of the Credit Agreement contain both a lock box arrangement and subjective acceleration clause. As a result, the amount outstanding on the revolving credit facility is classified as a short-term liability and the availability at September 30, 2019 and 2018 was $7,709 and $8,437 , respectively. The proceeds from the Credit Agreement were used to repay the indebtedness and extinguishment of the Company's November 9, 2016 Amended and Restated Credit and Security Agreement, for working capital purposes, for general corporate purposes and to pay fees and expenses incurred in connection with entering into the Credit Agreement. The Credit Agreement contains affirmative and negative covenants and events of defaults. As set forth in the Credit Agreement, the Company is required to maintain a fixed charge coverage ratio ("FCCR") of 1.1 to 1.0 any time the availability is equal to or less than 12.5% of the revolving commitment. In the event of a default, the Company may not be able to access the revolver, which could impact the ability to fund working capital needs, capital expenditures and invest in new business opportunities. See discussion below regarding the First Amendment (the "First Amendment") to the Credit Agreement and Security Agreement discussion, which revises the provision related to FCCR. On November 5, 2018, the Company entered into the First Amendment with its lender. The First Amendment retroactively amended certain definitions and provisions effective as of the original closing date to clarify the parties' original understanding regarding, among other things: (i) the permitted liens securing certain indebtedness of the Company to the City of Cleveland (noted as Other debt within the above debt table), (ii) the time frames for which certain post-closing requirements would be satisfied, and (iii) the conditions under which the Company will be required to meet the minimum FCCR, which is as follows: the borrowers will not permit the FCCR to be less than: (a) 1.1 to 1.0 as of August 31, 2018 or as of September 30, 2018; or (b) 1.1 to 1.0 at any month end on or after October 31, 2018; provided that the FCCR will not be tested under this clause (b) unless (i) a Default has occurred and is continuing or (ii) availability was less than or equal to 12.5% of the Revolving Commitment for three or more business days in any consecutive 30 day period (with the FCCR calculated as of the end of the month for which the lender has most recently received financial statements). On December 17, 2018, the Company entered into an Export Credit Agreement (the “Export Credit Agreement”) with its Lender. Pursuant to the terms of the Export Credit Agreement, the Lender will lend amounts to the Company on foreign receivables that are guaranteed by the Export-Import Bank of the United States of America. The Export Credit Agreement provides for a revolving commitment of $5,000 , therefore increasing the maximum borrowing of the revolver to $35,000 . The borrowings under the Export Credit Agreement will bear interest at (depending on the type of borrowing) the Prime or LIBOR Rate, plus the applicable margin as set forth in the Export Credit Agreement. The maturity date under the Export Credit Agreement is August 6, 2021 (or such earlier date as the revolving commitments under the Export Credit Agreement are reduced to zero or otherwise terminated). The Export Credit Agreement contains customary representations, warranties, covenants and events of default, including, without limitation, the affirmative covenants under the Company’s Credit Agreement dated August 8, 2018, as amended with the Lender. In connection with entering into the Export Credit Agreement, the Company also entered into the Second Amendment (the “Second Amendment”) to its Credit Agreement. The Second Amendment amends certain definitions and provisions to provide for the Company’s entrance into the Export Credit Agreement. On March 29, 2019, the Company entered into a Third Amendment with its Lender. This amendment extended the time frame for when certain post-closing requirements would be satisfied by March 31, 2019 to June 30, 2019. These post-closing requirements were completed by June 30, 2019. On September 20, 2019, the Company entered into a Fourth Amendment with its Lender. As previously stated, the Company is subject to certain customary loan covenants if availability is less than or equal to 12.5% of the revolving commitment for three or more business days in any consecutive 30 day period; however, the Fourth Amendment to the Credit Agreement resulted in the reduction of its availability from 12.5% of the revolving commitment to the 10% of the lessor of collateral or total revolving commitment, with a $2,000 floor through June 30, 2020. In determining the availability, the lender looks at the total collateral. If the total collateral is less than $ 20,000 , then the $2,000 floor will apply; however, if the total collateral is greater than or equal to $20,000 , but less than the $35,000 (revolving commitment); then 10% of the total collateral is used, but if the collateral exceeds $35,000 , then 10% of the total commitment is used as lending will not exceed the $35,000 revolving commitment unless the accordion feature is enacted. This will reset back to previous requirements prior to the Fourth Amendment, commencing July 1, 2020. As of September 30, 2019, the total collateral was $24,000 and the revolving commitment was $35,000 . The measurement at 10% were $2,400 and $3,500 , respectively. Total availability at September 30, 2019 was $7,709 , which exceed both the collateral and total commitment threshold. If availability had fallen short, the Company would be required to meet the FCCR covenant, which must not be less than 1.1 to 1.0 . Because the availability was greater than the 10.0% of the revolving commitment as of September 30, 2019, the FCCR calculation was not required. Amounts borrowed under the Credit Agreement are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 66.67% of the stock of its first-tier non-U.S. subsidiaries. Borrowings will bear interest at the lender's established domestic rate or LIBOR, plus the applicable margin as set forth in the Credit Agreement. The revolver has a rate based on LIBOR plus a 1.50% spread, which was 3.60% and 3.85% at September 30, 2019 and 2018, respectively and the Export Credit Agreement has a rate based on LIBOR plus a 1.25% spread, which was 3.4% at September 30, 2019. The Company also has a commitment fee of 0.25% under the Credit Agreement to be incurred on the unused balance of the revolver. The Company incurred a $496 loss on extinguishment of debt that is included within the interest expense line in the consolidated statement of operations as a result of the refinancing in fiscal 2018. The loss primarily consisted of unamortized financing costs and costs incurred from the previous lender during the refinancing. Foreign subsidiary borrowings Foreign debt at September 30 consists of: 2019 2018 Term loan $ 2,318 $ 3,548 Short-term borrowings 3,744 3,472 Factor 530 929 Total debt $ 6,592 $ 7,949 Less – current maturities (5,501 ) (5,822 ) Total long-term debt $ 1,091 $ 2,127 Receivables pledged as collateral $ 672 $ 2,007 Interest rates are based on Euribor rates plus spread which range from 1.0% to 4.0% . In December 2018, Maniago entered into a six month short-term debt arrangement with one of its lenders in the amount of $1,137 , to be used for working capital purposes, which has been repaid as of the end of the fiscal year. In September, Maniago was able to modify its repayment schedule for one tranche of its existing term debt by reducing its next two payments by approximately $96 and extending the loan for an additional six months in which the final payment will be made at that time (to be paid by October 2020). The Company is currently in negotiations with its lenders and other potential partners to refinance certain debt obligations at its Maniago location to provide Maniago with sufficient future liquidity. If Maniago is unsuccessful in obtaining additional financing, it may experience certain challenges in meeting certain obligations. This foreign debt is collateralized by Maniago’s assets. The Company has not pledged any assets as collateral or guaranteed Maniago’s debt. The consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of the Maniago assets or the amounts and classifications of the Maniago liabilities that may result from the outcome of this uncertainty. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan will provide adequate liquidity to finance its Maniago operations. The Company factors receivables from one of its customers. 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. Payments on long-term debt under the foreign term debt and other debt (excluding capital lease obligations, see Note 10, Commitments and Contingencies , of the consolidated financial statements) over the next 5 years are as follows: Minimum long-term debt payments 2020 $ 1,249 2021 969 2022 524 2023 440 2024 262 thereafter 7 Total Minimum long-term debt payments $ 3,451 Debt issuance costs The Company incurred debt issuance costs as it pertains to the Credit Agreement in the amount of $212 , and incurred additional costs in fiscal 2019 of $75 related to the First and Second Amendments, which are included in the consolidated balance sheet as a deferred charge in other current assets, net of amortization of $106 and $12 at September 30, 2019 and 2018, respectively. |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and armored military vehicles; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) other commercial applications. The following table represents a breakout of total revenue by customer type for the twelve months ended September 30, 2019 and 2018, respectively. Years Ended 2019 2018 ¹ Commercial revenue $ 54,999 $ 58,747 Military revenue 57,455 52,465 Total $ 112,454 $ 111,212 ¹ Prior period amounts have not been adjusted under the modified retrospective adoption method. The following table represents revenue by the various components for the twelve months ended September 30, 2019 and 2018, respectively. Years Ended Net Sales 2019 2018 ¹ Aerospace components for: Fixed wing aircraft $ 52,895 $ 56,891 Rotorcraft 23,602 22,053 Energy components for power generation units 17,646 20,893 Commercial product and other revenue 18,311 11,375 Total $ 112,454 $ 111,212 ¹ Prior period amounts have not been adjusted under the modified retrospective adoption method. The following table represents revenue by geographic region based on the Company's selling operation locations for the twelve months ended September 30 , 2019 and 2018, respectively: Years Ended Net Sales 2019 2018 ¹ North America 95,667 91,316 Europe 16,787 19,896 Total $ 112,454 $ 111,212 ¹ Prior period amounts have not been adjusted under the modified retrospective adoption method. In addition to the disaggregating revenue information provided above, approximately 56% of total net sales as of September 30, 2019 is recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized as a point in time. Contract Balances Generally, payment is due shortly after the shipment of goods. For performance obligations recognized at a point in time, a contract asset is not established as the billing and revenue recognition occur at the same time. For performance obligations recognized over time, a contract asset is established as revenue is recognized prior to billing and shipment. Upon shipment and billing, the value of the contract asset is reversed and accounts receivable is recorded. In circumstances where prepayments are required and payment is made prior to satisfaction of performance obligations, a contract liability is established. If the satisfaction of the performance obligation occurs over time, the contract liability is reversed over the course of production. If the satisfaction of the performance obligation is point in time, the contract liability reverses upon shipment. The following table contains a roll forward of contract assets and contract liabilities for the period ended September 30, 2019: Contract assets - Beginning balance, October 1, 2018 $ 10,140 Additional revenue recognized over-time 62,499 Less amounts billed to the customers $ (62,290 ) Contract assets - Ending balance, September 30, 2019 $ 10,349 Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2018 $ — Payments received in advance of performance obligations (2,000 ) Performance obligations satisfied 1,618 Contract liabilities (included within Accrued liabilities) - Ending balance, September 30, 2019 $ (382 ) There were no impairment losses recorded on contract assets during the year ended September 30, 2019. Remaining performance obligations As of September 30, 2019, the Company has $117,600 of remaining performance obligations, the majority of which are anticipated to be completed within the next twelve months. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income tax benefit are as follows: Years Ended September 30, 2019 2018 U.S. $ 3,416 $ (7,582 ) Non-U.S. (11,623 ) 51 Loss before income tax benefit $ (8,207 ) $ (7,531 ) Income tax benefit consist of the following: Years Ended September 30, 2019 2018 Current income tax provision (benefit): U.S. federal $ — $ (19 ) U.S. state and local (27 ) 5 Non-U.S. (109 ) 472 Total current tax provision (benefit) (136 ) 458 Deferred income tax provision (benefit): U.S. federal 8 (462 ) U.S. state and local 2 (30 ) Non-U.S. (575 ) (327 ) Total deferred tax provision (benefit) (565 ) (819 ) Income tax benefit $ (701 ) $ (361 ) The income tax benefit in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows: Years Ended September 30, 2019 2018 Loss before income tax benefit $ (8,207 ) $ (7,531 ) Income tax benefit at U.S. federal statutory rates $ (1,723 ) $ (1,582 ) Tax effect of: Foreign rate differential 1,698 694 State and local income taxes 14 (25 ) Impact of tax law changes — 820 Federal tax credits (144 ) (1,573 ) Valuation allowance (556 ) 1,243 Prior year tax adjustments — (211 ) Other 10 273 Income tax benefit $ (701 ) $ (361 ) On December 22, 2017, the Tax Cut and Jobs Act (the "Act") was enacted that, among other items, reduced the U.S. corporate tax rate effective January 1, 2018 from 35% to 21%, imposed a one-time transition tax on accumulated foreign earnings not previously subject to U.S. taxation, provides a U.S. federal tax exemption on future distributions of foreign earnings, and beginning in fiscal 2019, creates a new minimum tax on certain foreign-sourced earnings. The U.S. corporate tax rate reduction resulted in a blended tax rate of 24.5% for fiscal 2018 (based on 35% corporate rate through December 31, 2017 and 21% from that date through the end of fiscal 2018). In response to the Act, the Securities and Exchange Commission (the "SEC") issued Staff Accounting Bulletin 118 ("SAB 118"). SAB 118 expresses views of the SEC regarding ASC Topic 740, Income Taxes ("Topic 740") in the reporting period that includes the enactment date of the Act. The SEC staff, in issuing SAB 118 recognized that a company’s review of certain income tax effects of the Act may be incomplete at the time the financial statements are issued for the reporting period that includes the enactment date, including interim periods therein. If a company does not have the necessary information available, prepared or analyzed for certain income tax effects of the Act, SAB 118 allows a company to report provisional numbers and adjust those amounts during the measurement period not to extend beyond one year from the day of enactment. As required, during the first quarter of fiscal 2019, the Company completed its accounting for items previously considered provisional during fiscal 2018. At September 30, 2018, the Company's provisional estimate with respect to the one-time transition tax was $240 , net of applicable foreign tax credits generated. As a result of the valuation allowance in the U.S. on tax attribute carry forwards, no charge to tax expense was recorded related to the one-time transition tax. The Company continues to interpret the law and additional guidance related to the Act during the measurement period and no measurement period adjustment was made during the first quarter of fiscal 2019, upon finalization of the one-time transition tax. All other items of the Act were considered complete at September 30, 2018. The Act also includes provisions for Global Intangible Low-Taxed Income (“GILTI”) wherein minimum taxes are imposed on foreign income in excess of a deemed return on the tangible assets of foreign corporations. This income will effectively be taxed at a 10.5% tax rate. GILTI was effective for the Company starting in fiscal 2019. The Company has elected to account for GILTI as a component of tax expense in the period in which the Company is subject to the rules. Deferred tax assets and liabilities at September 30 consist of the following: 2019 2018 Deferred tax assets: Net U.S. operating loss carryforwards $ 5,002 $ 3,200 Net non-U.S. operating loss carryforwards 866 592 Employee benefits 2,456 1,656 Inventory reserves 970 1,029 Allowance for doubtful accounts 144 126 Intangibles 2,535 2,826 Foreign tax credits 1,724 1,956 Other tax credits 1,232 1,164 Other 918 1,015 Total deferred tax assets 15,847 13,564 Deferred tax liabilities: Depreciation (8,135 ) (5,449 ) Prepaid expenses (192 ) (296 ) Other (1,681 ) (1,832 ) Total deferred tax liabilities (10,008 ) (7,577 ) Net deferred tax assets 5,839 5,987 Valuation allowance (7,557 ) (8,400 ) Net deferred tax liabilities $ (1,718 ) $ (2,413 ) At September 30, 2019, the Company has a non-U.S. tax loss carryforward of approximately $6,618 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. Additionally, a valuation allowance has been recorded in fiscal 2019 against a portion of the deferred tax asset related to the Italian tax loss carryforward that was not considered realizable. The Irish and Italian tax loss carryforwards do not expire. The Company has $1,724 of foreign tax credit carryforwards that are subject to expiration in fiscal 2023-2028, $1,054 of U.S. general business tax credits that are subject to expiration in 2035-2039, and $19,358 of U.S. Federal tax loss carryforwards with $12,625 subject to expiration in fiscal 2036-2037 and $6,733 that do not expire. 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 $178 of U.S. state tax credit carryforwards subject to expiration in fiscal 2022-2024 and $33,253 of U.S. state and local tax loss carryforwards subject to expiration in fiscal 2020-2039. The U.S. state tax credit carryforwards and U.S. state and local tax loss carryforwards have been fully offset by a valuation allowance. The Company reported liabilities for uncertain tax positions, excluding any related interest and penalties, of $22 and $53 in fiscal 2019 and 2018. If recognized, $22 of the fiscal 2019 uncertain tax positions would impact the effective tax rate. As of September 30, 2019, the Company had accrued interest of $13 and recognized $0.8 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: 2019 2018 Balance at beginning of year $ 53 $ 69 Decrease due to lapse of statute of limitations (31 ) (16 ) Balance at end of year $ 22 $ 53 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 2016, 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. The Company does not record deferred taxes on the undistributed earnings of its non-U.S. subsidiaries as it does not expect the temporary differences related to those unremitted earnings to reverse in the foreseeable future. As of September 30, 2019, the Company's non-U.S. subsidiaries had accumulated deficits of approximately $127 . Future distributions of accumulated earnings of the Company's non-U.S. subsidiaries may be subject to nominal withholding taxes. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Sep. 30, 2019 | |
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 additional benefits subsequent to December 31, 2013. The Company sponsors another 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 its liability is measured as the actuarial present value of the vested benefits to which the employees would be entitled if they 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, 2019 2018 Service cost $ 299 $ 262 Interest cost 1,055 963 Expected return on plan assets (1,573 ) (1,608 ) Amortization of net loss 429 641 Settlement cost 246 — Net pension expense for defined benefit plans $ 456 $ 258 The status of all defined benefit pension plans at September 30 is as follows: 2019 2018 Benefit obligations: Benefit obligations at beginning of year $ 27,437 $ 27,921 Service cost 299 262 Interest cost 1,055 963 Actuarial loss (gain) 3,691 178 Benefits paid (1,914 ) (1,880 ) Currency translation (20 ) (7 ) Benefit obligations at end of year $ 30,548 $ 27,437 Plan assets: Plan assets at beginning of year $ 22,052 $ 21,691 Actual return on plan assets 622 2,118 Employer contributions 210 123 Benefits paid (1,914 ) (1,880 ) Plan assets at end of year $ 20,970 $ 22,052 Plans in which Benefit Obligations Exceed Assets at September 30, 2019 2018 Reconciliation of funded status: Plan assets less than projected benefit obligations $ (9,574 ) $ (5,385 ) Amounts recognized in accumulated other comprehensive loss: Net loss 11,404 7,432 Net amount recognized in the consolidated balance sheets $ 1,830 $ 2,047 Amounts recognized in the consolidated balance sheets are: Accrued liabilities (46 ) (46 ) Pension liability (9,528 ) (5,339 ) Accumulated other comprehensive loss – pretax 11,404 7,432 Net amount recognized in the consolidated balance sheets $ 1,830 $ 2,047 The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs during fiscal 2019 are as follows: Plans in which Plans in which Net loss $ — $ 755 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 2019 2018 Discount rate for liabilities 2.9 % 4.1 % Discount rate for expenses 4.2 % 3.6 % Expected return on assets 7.5 % 7.7 % 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, 2019 and 2018: September 30, 2019 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 435 $ 435 $ — Large blend 9,368 9,368 — Large growth 625 625 — Mid blend 163 163 — Small blend 159 159 — Non-U.S. equity securities: Foreign large blend 1,607 1,607 — Diversified emerging markets 17 17 — U.S. debt securities: Inflation protected bond 1,100 1,100 — Intermediate term bond 6,974 4,969 2,005 High inflation bond 173 173 — Non-U.S. debt securities: Emerging markets bonds 106 106 — Stable value: Short-term bonds 243 243 — Total plan assets at fair value $ 20,970 $ 18,965 $ 2,005 September 30, 2018 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 446 $ 446 $ — Large blend 9,910 9,910 — Large growth 825 825 — Mid blend 228 228 — Small blend 229 229 — Non-U.S. equity securities: Foreign large blend 1,714 1,714 — Diversified emerging markets 18 18 — U.S. debt securities: Inflation protected bond 1,184 1,184 — Intermediate term bond 6,811 4,996 1,815 High inflation bond 182 182 — Non-U.S. debt securities: Emerging markets bonds 38 38 — Stable value: Short-term bonds 467 467 — Total plan assets at fair value $ 22,052 $ 20,237 $ 1,815 Changes in the fair value of the Company’s Level 3 investments during the years ending September 30, 2019 and 2018 were as follows: 2019 2018 Balance at beginning of year $ 1,815 $ 2,175 Actual return on plan assets 190 1 Purchases and sales of plan assets, net — (361 ) Balance at end of year $ 2,005 $ 1,815 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 2019 2018 U.S. equities 51 % 53 % 30% to 70% Non-U.S. equities 8 % 8 % 0% to 20% U.S. debt securities 39 % 37 % 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 $ 403 in contributions to its defined benefit pension plans during fiscal 2020. 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 2020. 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 2020 $ 2,348 2021 2,020 2022 1,846 2023 1,931 2024 1,950 2025-2029 8,950 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 2019 2018 2019 2018 Fund ¹ Red Green Implemented $ 55 $ 60 Yes 5/31/2020 ¹ The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund ("IAM plan") 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, 2018 and 2017. Under the Pension Protection Act of 2006 and extended by the Multi-employer Pension Reform Act of 2014, certain safeguards were implemented to inform participants about the financial health of pension plan. The Company received the zone status notice from the IAM plan. The notice mentions the plan is well funded at 89% ; however, the IAM Plan's Board of Trustees voluntarily elected to place the plan in the Red Zone, which deems it to be in critical status for 2019 due to decline of the IAM Plan's credit balance and challenging investment environment. As such, all participating employers are required by regulation to begin contributing 5% Pension Protection Act ("PPA") contribution surcharges effective with hours worked on or after June 1, 2019. Absent adoption of the Rehabilitation Plan and schedules, the PPA contribution surcharges increase to 10% effective for the hours worked on or after January 1, 2020 and apply continuously until such adoption. The Company began contributing the surcharges during fiscal 2019. 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 2019 and 2018 was $470 and $475 , 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 2019 and 2018. The Company sponsors a defined contribution plan for certain of its 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, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has awarded performance and restricted shares under its shareholder-approved amended and restated 2007 Plan, which was further amended and restated under the 2016 Plan. The aggregate number of shares that may be awarded by the Company was increased by 646 shares, less any shares previously awarded and subject to an adjustment for the forfeiture of any unvested shares, pursuant to the 2016 Plan. 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 the 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 200% 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 accrued based on the probability of meeting the performance target. The Company is currently recognizing compensation expense for one tranche of awards as it has concluded it is probable it will meet the performance criteria for that award, while the Company is not currently recognizing compensation expense for two tranches of awards as it has concluded it is not probable it will meet the performance criteria for those awards. 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, 2019 there are approximately 165 shares that remain available for award under the 2016 Plan. 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 200% of such target, then a fewer number of shares would be available for award. Stock-based compensation under the 2016 Plan was expense of $511 and $608 for fiscal 2019 and 2018, respectively. As of September 30, 2019, there was $569 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 1.3 years . The following is a summary of activity related to performance and restricted shares: 2019 2018 Number of Shares Weighted Average Fair Value at Date of Grant Number of Weighted Average Outstanding at beginning of year 271 $ 7.20 194 $ 8.57 Restricted shares awarded 108 3.84 98 6.63 Restricted shares earned (77 ) 7.74 (33 ) 8.05 Performance shares awarded 87 4.73 68 6.70 Performance shares earned — — — — Awards forfeited (58 ) 7.29 (56 ) 9.85 Outstanding at end of year 331 $ 5.33 271 $ 7.20 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2019 | |
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. A subsidiary of the Company, Quality Aluminum Forge, LLC ("Orange"), is currently a defendant in a lawsuit filed by Avco Corporation (“Avco”) in the Pennsylvania State Court, which was filed in August 2019, alleging that certain forged pistons delivered by the Orange plant failed to meet material specifications required by Avco. No specific amount of damages was claimed by Avco and no discovery has occurred at this time and Orange disagrees with the allegations made by Avco. Previously, Orange was a defendant with respect to the same action in the United States District Court for the District of Rhode Island, which action was dismissed in connection with the movement of the matter to Pennsylvania State Court. Although the Company records reserves for legal disputes and other matters in accordance with 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 not recorded a loss, as the Company does not have a reasonable basis on which to establish an estimate. The Company is a defendant in a purported class action lawsuit filed in the Superior Court of California, County of Orange, which was filed in August 2017, arising from employee wage-and-hour claims under California law for alleged meal period, rest break, hourly and overtime wage calculation, timely wage payment and necessary expenditure indemnification violations; failure to maintain required wage records and furnish accurate wage statements; and unfair competition, which is similar to the one previously settled in fiscal 2018. As mentioned previously, the Company records reserves for legal disputes and other matters in accordance with 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 recorded an estimated loss of $250 as of September 30, 2019. The Company was a defendant in a different class action lawsuit filed in the Superior Court of California, County of Orange, arising from employee wage-and-hour claims under California law for alleged meal period, rest break, hourly and overtime wage calculation, timely wage payment and necessary expenditure indemnification violations; and unfair competition related to fiscal 2017. The Company had previously recorded an estimate and settled the case in fiscal 2018. In fiscal 2018, an additional $11 was incurred and $391 was paid during the second quarter of fiscal 2018. On December 26, 2018, the Orange location experienced a fire at its manufacturing facility, causing damage to one of three manufacturing buildings. The building that was damaged housed six of the eight presses on site. The Company is fully insured and actively working with its insurance carrier to restore the site to full service as safely and quickly as possible. As of September 30, 2019, the Company has recorded insurance proceeds of $11,986 , of which $8,486 has been received. The fire also destroyed a leased building, which in accordance with its lease agreement, the Company is responsible to restore the property to full replacement value. With the Company being fully insured, the restoration of the property is covered and the insurance carrier has separately funded a partial payment of insurance proceeds as of September 30, 2019 to the landlord for the restoration of the damaged building as prescribed under the lease arrangement in the amount of $2,878 . The table below reflects the receipt of proceeds and how they were expended as of September 30, 2019. Any additional recoveries in excess of recognized losses are treated as gain contingencies and will be recognized when the gain is realized or realizable. The Company also maintains business interruption insurance coverage and continues to work with the insurance company to reach an agreement on the recoverable amounts of business interruption expenses. As noted within the table below, payments totaling $1,168 were made towards this coverage as of September 30, 2019 and is reflected within the cost of goods sold line within the consolidated financial statements as of September 30, 2019. Balance sheet (Other receivables): September 30, 2018 $ — Cash received (8,486 ) Capital expenditures (equipment) 8,355 Other expenses 2,463 Business interruption 1,168 September 30, 2019 $ 3,500 The following table reflects how the proceeds received impacted the consolidated statements of operations as of September 30, 2019. Years Ended September 30, 2019 Balance without insurance proceeds Insurance recoveries Balance with insurance proceeds Cost of goods sold $ 105,448 $ (3,631 ) $ 101,817 Loss (gain) on disposal and impairment of assets 820 (8,355 ) (7,535 ) Net loss (19,492 ) (11,986 ) (7,506 ) Included within the gain on disposal and impairment of assets in the consolidated statements of operations is approximately $1,107 in impairment charges for the equipment damaged by the fire offset by insurance proceeds received. For the long-lived assets that were not damaged as a result of the fire, the Company performed a separate evaluation of these assets. In accordance with Topic 360, the fire resulted in a triggering event as of December 31, 2018, requiring an interim assessment to determine if the carrying amount of long-lived assets are recoverable. As noted within Topic 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 results of management's analysis indicated that the remaining long-lived assets as of December 31, 2018 were recoverable and continue to be as of September 30, 2019. 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 $2,391 and $2,522 in fiscal 2019 and 2018, respectively. Included in rent expense are lease payments related to the Company's Orange facility for which the lease payments commenced in December 2016 and expire in 2036. At September 30, 2019, minimum rental commitments under non-cancelable leases are as follows: Year ending September 30, Finance Leases Operating Leases 2020 $ 61 $ 2,172 2021 61 1,865 2022 21 1,583 2023 6 1,502 2024 — 1,498 Thereafter — 16,711 Total minimum lease payments $ 149 $ 25,331 Less: Amount representing interest (11 ) Present value of minimum lease payments $ 138 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: 2019 2018 Machinery and equipment $ 380 $ 638 Accumulated depreciation (117 ) (278 ) |
Business Information
Business Information | 12 Months Ended |
Sep. 30, 2019 | |
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 72% and 69% of consolidated net sales in fiscal 2019 and 2018, respectively. No other single country represents greater than 10% of consolidated net sales in fiscal 2019 and 2018. Net sales to unaffiliated customers located in various European countries accounted for 15% and 19% of consolidated net sales in fiscal 2019 and 2018, respectively. Net sales to unaffiliated customers located in various Asian countries accounted for 6% and 7% of consolidated net sales in fiscal 2019 and 2018, 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. subsidiary located in Maniago, Italy. The identifiable assets for the Company's foreign subsidiaries as of September 30, 2019 was $ 20,986 compared with $ 33,507 as of September 30, 2018. 2019 2018 Long-Lived Assets United States $ 35,079 29,595 Europe 11,562 23,059 $ 46,641 52,654 At September 30, 2019, approximately 195 of the hourly plant personnel are represented by two separate and active collective bargaining agreements. The table below shows the expiration dates of the collective bargaining agreements. Plant locations Expiration date Cleveland, Ohio May 31, 2020 Maniago, Italy December 31, 2019 The Company is a party to collective bargaining agreements ("CBA") with certain employees located in Cleveland, which has two bargaining units; the Company went into early negotiations and ratified its CBA with one such unit in November 2019 and is expected to enter negotiations with the second unit in the second quarter of fiscal 2020. The Maniago location is party to the National Collective Agreement in metal working. Negotiations have begun with Maniago; however, until an agreement is reached, Maniago will continue to apply existing terms of its current contract. |
Subsequent events
Subsequent events | 12 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events The Company has evaluated subsequent events through the date the consolidated financial statements are issued. On November 26, 2019, the Company ratified a new collective bargaining agreement with one of its bargaining units. Included within the agreement, was a provision to withdraw from its existing multi-employer plan, the IAM plan. The withdrawal from the IAM plan is subject to a withdrawal liability. The current estimate of the withdrawal liability is approximately $745 , subject to finalization. This will be payable in quarterly installments over the next 20 years . 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, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II SIFCO Industries, Inc. and Subsidiaries Valuation and Qualifying Accounts Years Ended September 30, 2019 and 2018 (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, 2019 Deducted from asset accounts Allowance for doubtful accounts $ 520 39 — 33 (a) $ 592 Inventory obsolescence reserve¹ 3,556 517 (106 ) (632 ) (b) $ 3,335 Inventory LIFO reserve¹ 8,371 (75 ) — — $ 8,296 Deferred tax valuation allowance 8,400 (1,817 ) 974 $ 7,557 Accrual for estimated liability Workers’ compensation reserve 136 395 — (350 ) (c) $ 181 Year Ended September 30, 2018 Deducted from asset accounts Allowance for doubtful accounts $ 330 $ 415 $ (39 ) $ (186 ) (a) $ 520 Inventory obsolescence reserve 3,859 177 (30 ) (127 ) (b) 3,879 Inventory LIFO reserve 8,319 560 — — 8,879 Deferred tax valuation allowance 9,597 (968 ) (229 ) — 8,400 Accrual for estimated liability Workers’ compensation reserve 237 (132 ) — 31 (c) 136 ¹ Due to the adoption of Topic 606, there was impact to the opening balance for these accounts. (a) Accounts determined to be uncollectible, net of recoveries (b) Inventory sold or otherwise disposed (c) Payment of workers’ compensation claims |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
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. 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. |
CONCENTRATIONS OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK Receivables are presented net of allowance for doubtful accounts of $592 and $520 at September 30, 2019 and 2018, 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 2019 and 2018, $33 and $186 , respectively, of accounts receivable were written off against the allowance for doubtful accounts. Bad debt expense totaled $39 and $415 in fiscal 2019 and fiscal 2018, 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 2019, 44% of the Company’s consolidated net sales were from three of its largest customers; and 50% of the Company's consolidated net sales were from the four largest customers and their direct subcontractors, which individually accounted for 14% , 13% , 12% and 11% , of consolidated net sales, respectively. In fiscal 2018, 31% of the Company’s consolidated net sales were from two of its largest customers; and 38% of the Company's consolidated net sales were from three of the largest customers and their direct subcontractors which individually accounted for 14% , 12% and 12% , of consolidated net sales, respectively. Other than what has been disclosed, no other single customer or group represented greater than 10% of total net sales in fiscal 2019 and 2018. At September 30, 2019, two 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 15% , 14% , and 12% of total net accounts receivable, respectively. At September 30, 2018, three of the Company’s largest customers had outstanding net accounts receivable which individually accounted for 10% of total net accounts receivable; and five of the largest customers and direct subcontractors had outstanding net accounts receivable which accounted for 16% , 14% , 12% , 11% , and 11% of total net accounts receivable, 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, 2019. |
INVENTORY VALUATION | INVENTORY VALUATION For a portion of the Company's inventory, cost is determined using the last-in, first-out (“LIFO”) method. For approximately 27% and 54% of the Company’s inventories at September 30, 2019 and 2018, 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, which are stated at the lower cost or net realizable value. 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, whichever is less (included in buildings). The (gain) 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 ("asset groups"), including property, plant and equipment, when events and circumstances indicate a triggering event has occurred. This review is performed using estimates of future undiscounted cash flows, which include proceeds from disposal of assets. Under the Accounting Standard Codification ("ASC") 360 ("Topic 360"), 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, and if not, on an annual basis. The Company has selected July 31 as the annual impairment testing date. With 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 July 31, 2019 and 2018 annual impairment test results and its interim goodwill test performed as of May 31, 2019 for one of its reporting units. 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, of the consolidated financial statements. |
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 SIFCO adopted Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers ("Topic 606" and the "revenue standard") using the modified retrospective method and applied those provisions to all open contracts on October 1, 2018. The Company recognizes revenue in the following manner using the five-step revenue recognition model. A contract exists when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when performance obligations under the terms of the contract with a customer of the Company are satisfied. A portion of the Company's contracts are from purchase orders ("PO's"), which continue to be recognized as of a point in time when products are shipped from the Company's manufacturing facilities or at a later time when control of the products transfers to the customer. Revenue was previously recognized for certain long-term agreements ("LTA's"), firm fixed pricing agreements, and PO's at the point in time when the shipping terms were satisfied. Under the revenue standard, the Company now recognizes certain revenue over time as it satisfies the performance obligations because the conditions of transfer of control to the applicable customer are as follows: • Certain military contracts, which support providing specialized or unique goods to the U.S. government with no alternative use, include provisions within the contract that are subject to the Federal Acquisition Regulation ("FAR"). The FAR provision allows the customer to unilaterally terminate the contract for convenience and requires the customer to pay the Company for costs incurred plus reasonable profit margin and take control of any work in process. • For certain commercial contracts involving customer-specific products with no alternative use, the contract may fall under the FAR clause provisions noted above for military contracts or may include certain provisions within their contract that the customer controls the work in process based on contractual termination clauses or restrictions of the Company's use of the product and the Company possesses a right to payment for work performed to date plus reasonable profit margin. As a result of control transferring over time for these products, revenue is recognized based on progress toward completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company elected to use the cost to cost input method of progress based on costs incurred for these contracts because it best depicts the transfer of goods to the customer based on incurring costs on the contracts. Under this method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring goods. An accounting policy election to exclude from transaction price was made for sales, value add, and other taxes the Company collects concurrent with revenue-producing activities when applicable. The Company has elected to recognize incremental costs incurred to obtain contracts, which primarily represent commissions paid to third party sales agents where the amortization period would be less than one year, as selling, general and administrative expenses in the consolidated condensed statements of operations as incurred. The Company elected a practical expedient under Topic 606 to not adjust the promised amount of consideration for the effects of any significant financing component where the Company expects, at contract inception, that the period between when the Company transfers a promised good to a customer and when the customer pays for that good will be one year or less . Finally, the Company's policy is to exclude performance obligations resulting from contracts with a duration of one year or less from its disclosures related to remaining performance obligations. The amount of consideration to which the Company expects to be entitled in exchange for the goods is not generally subject to significant variations. The Company has elected to recognize the cost of freight and shipping when control of the products has transferred to the customer as an expense in cost of goods sold on the consolidated statements of operations, because those are costs incurred to fulfill the promise recognized, not a separate performance obligation. To the extent certain freight and shipping fees are charged to customers, the Company recognizes the amounts charged to customers as revenues and the related costs as an expense in cost of goods sold when control of the related products has transferred to the customer. Contracts are occasionally modified to account for changes in contract specifications, requirements, and pricing. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Substantially all of the Company's contract modifications are for goods that are distinct from the existing contract. Therefore, the effect of a contract modification on the transaction price and the Company's measure of progress for the performance obligation to which it relates is generally recognized on a prospective basis. Contract Balances Contract assets on the consolidated balance sheets are recognized when a good is transferred to the customer and the Company does not have the contractual right to bill for the related performance obligations. In these instances, revenue recognized exceeds the amount billed to the customer and the right to payment is not solely subject to the passage of time. Amounts do not exceed their net realizable value. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. Payment from customers are received based on the terms established in the contract with the customer. |
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 On October 1, 2018, the Company adopted the revenue standard. The revenue standard introduces a five-step revenue recognition model in which a company should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The revenue standard also requires disclosure sufficient to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments and assets recognized from the cost to obtain or fulfill a contract. For further discussion, see Note 6, Revenue, of the consolidated financial statements. With the adoption by the Company of the revenue standard and all related amendments using the modified retrospective method and applied those provisions to all open contracts. The Company recognized the cumulative effect by initially applying the revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of changes made to the balance sheet as of October 1, 2018 for the adoption of the revenue standard was as follows: Balance at September 30, 2018 Effect of Accounting Change Balance at October 1, 2018 Assets Contract asset $ — $ 10,140 $ 10,140 Inventory, net 18,269 (6,542) 11,727 Liabilities & Shareholders' Equity Retained earnings 37,097 3,598 40,695 As part of the cumulative effect of the accounting change made as it pertains to the inventory, net line, the impact includes a reduction to the Company's LIFO reserve in the amount of $508 and excess and obsolete reserve of $366 . As noted in Note 2, Inventories, of the consolidated financial statements, a portion of the Company's inventory is on LIFO. The following tables reflect the changes to the financial statements line items as a result to the revenue standard. The adoption of the revenue standard did not have an impact on "net cash provided by operating activities" on the consolidated statement of cash flows as of September 30, 2019. Consolidated statement of operations for the year end September 30, 2019: Previous Accounting Method Effect of Accounting Change As Reported Net Sales $ 112,090 $ 364 $ 112,454 Cost of Goods Sold 102,276 (459 ) 101,817 Net loss (8,329 ) 823 (7,506 ) Basic and diluted net loss per share $ (1.50 ) $ 0.15 $ (1.35 ) Consolidated balance sheet as of September 30, 2019: Previous Accounting Method Effect of Accounting Change As Reported Assets Contract asset $ — $ 10,349 $ 10,349 Inventory, net 16,592 (6,083 ) 10,509 Liabilities & Shareholders' Equity Contract liabilities (included within accrued liabilities) 537 (155 ) 382 Deferred income taxes 1,718 — 1,718 Retained earnings 28,727 4,421 33,148 In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of the Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost," which was adopted by the Company on October 1, 2018. With the adoption of ASU 2017-07 on October 1, 2018, service cost is included in other employee compensation costs within operating income and is the only component that may be capitalized when applicable. The other components of net periodic benefit cost are presented separately outside of operating income. The Company retrospectively adopted ASU 2017-07 and reclassified prior-year amounts using a practical expedient that permits the usage of amounts disclosed in Note 8, Retirement Benefit Plans, of the consolidated financial statements. Results showed expense for fiscal 2019 and 2018 were reclassified from cost of sales and selling, general and administrative expenses, respectively, to other (income) expense, net and were not material to the consolidated statement of operations. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which amends certain cash flow issues which apply to all entities required to present a statement of cash flows. On October 1, 2018, the Company implemented provisions of ASU 2016-15 on a retrospective basis, which did not impact the consolidated statements of cash flows for the periods presented. N. IMPACT OF NEWLY ISSUED ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842). ” In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842) Targeted Improvements," (collectively with ASU 2016-02, "Topic 842"), which amends ASU 2016-02 and provides new and (optional) transition method permitting the recognition of a cumulative effect adjustment to retained earnings on the date of adoption, rather than requiring retrospective restatement of prior periods. Topic 842's objective is to increase transparency and comparability among entities by recognizing lease right-of-use assets ("ROU") and lease liabilities except for short-term leases on the consolidated balance sheet and provide additional disclosure information about leasing arrangements. Topic 842 modifies the definition of a lease to clarify that an arrangement contains a lease when such arrangement conveys the right to control the use of an identified asset. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within the year of adoption. The Company adopted this new guidance on October 1, 2019 and has elected to apply a modified retrospective transition approach as permitted, which includes a number of optional practical expedients that can be applied. This approach applies to all leases that exist at or commence after the date of our initial application. The Company will not adjust comparative periods or make the new required lease disclosure prior to the effective date. SIFCO will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, permits companies not to reassess prior conclusions about lease identification, lease classification and initial direct costs. SIFCO did not elect the hindsight practical expedient. The Company is in process of finalizing the design and implementation of internal controls, policies and processes to comply w ith the new standard . The adoption of Topic 842 will result in the recognition of ROU assets and lease liabilities of approximately $16,106 to $20,218 based on the lease portfolio as of October 1, 2019. The lease liability and the corresponding ROU asset primarily relate to one of its leased manufacturing buildings at its Orange location. The prospective impact on the consolidated statements of comprehensive loss under the new standard is substantially the same compared to the current lease accounting model and the impact to retained earnings will be minimal. The accounting for capital leases related to equipment, which are referred to as financing leases under the new standard, is substantially unchanged under the new standard and is not expected to have a material impact on our liquidity or consolidated statements of cash flows. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " and subsequent updates. ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance will replace the current incurred loss approach with an expected loss model. The new expected credit loss impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt instruments, net investments in leases, loan commitments and standby letters of credit. Upon initial recognition of the exposure, the expected credit loss model requires entities to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. ASU 2016-13 does not prescribe a specific method to make the estimate, so its application will require significant judgment. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)," which defers the effective date for public filers that are considered small reporting companies ("SRC") as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since SIFCO is a SRC, the Company does not need to implement until October 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company's results within the consolidated statements of operations and financial condition. |
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. |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs are expensed as they are incurred. |
DEBT ISSUANCE COSTS | DEBT ISSUANCE COSTS Debt issuance costs are capitalized and amortized over the life of the related debt. Amortization of debt issuance 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, and accounts payable are considered to be representative of their fair values because of their short maturities. The carrying value of debt is considered to approximate the fair value based on the borrowing rates currently available to us for loans with similar terms and 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 Company's 2007 Plan Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) ("2016 Plan"). The Company recognizes share-based expense within selling, general, and administrative expense. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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: 2019 2018 Property, plant and equipment: Land $ 964 $ 995 Buildings 15,805 15,365 Machinery and equipment 82,379 76,465 Total property, plant and equipment 99,148 92,825 Less: Accumulated depreciation 59,538 57,435 Property, plant and equipment, net $ 39,610 $ 35,390 |
Dilutive Effect of The Company's Restricted Shares, and Performance Shares | The dilutive effect is as follows: September 30, 2019 2018 Net loss $ (7,506 ) $ (7,170 ) Weighted-average common shares outstanding (basic and diluted) 5,566 5,523 Net loss per share – basic and diluted: Net loss per share $ (1.35 ) $ (1.30 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 196 144 |
Schedule of Effects of Adoption 2014-09 | The cumulative effect of changes made to the balance sheet as of October 1, 2018 for the adoption of the revenue standard was as follows: Balance at September 30, 2018 Effect of Accounting Change Balance at October 1, 2018 Assets Contract asset $ — $ 10,140 $ 10,140 Inventory, net 18,269 (6,542) 11,727 Liabilities & Shareholders' Equity Retained earnings 37,097 3,598 40,695 As part of the cumulative effect of the accounting change made as it pertains to the inventory, net line, the impact includes a reduction to the Company's LIFO reserve in the amount of $508 and excess and obsolete reserve of $366 . As noted in Note 2, Inventories, of the consolidated financial statements, a portion of the Company's inventory is on LIFO. The following tables reflect the changes to the financial statements line items as a result to the revenue standard. The adoption of the revenue standard did not have an impact on "net cash provided by operating activities" on the consolidated statement of cash flows as of September 30, 2019. Consolidated statement of operations for the year end September 30, 2019: Previous Accounting Method Effect of Accounting Change As Reported Net Sales $ 112,090 $ 364 $ 112,454 Cost of Goods Sold 102,276 (459 ) 101,817 Net loss (8,329 ) 823 (7,506 ) Basic and diluted net loss per share $ (1.50 ) $ 0.15 $ (1.35 ) Consolidated balance sheet as of September 30, 2019: Previous Accounting Method Effect of Accounting Change As Reported Assets Contract asset $ — $ 10,349 $ 10,349 Inventory, net 16,592 (6,083 ) 10,509 Liabilities & Shareholders' Equity Contract liabilities (included within accrued liabilities) 537 (155 ) 382 Deferred income taxes 1,718 — 1,718 Retained earnings 28,727 4,421 33,148 |
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: 2019 2018 Foreign currency translation adjustment, net of income tax benefit of $0 and $0, respectively $ (5,667 ) $ (4,955 ) Net retirement plan liability adjustment, net of income tax benefit of ($3,758) and ($3,758), respectively (7,642 ) (3,674 ) Total accumulated other comprehensive loss $ (13,309 ) $ (8,629 ) 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, 2017 $ (4,607 ) $ (4,648 ) $ 4 $ (9,251 ) Other comprehensive income (loss) before reclassifications (348 ) 333 19 4 Amounts reclassified from accumulated other comprehensive income (loss) — 641 (23 ) 618 Net current-period other comprehensive loss (348 ) 974 (4 ) 622 Balance at September 30, 2018 (4,955 ) (3,674 ) — (8,629 ) Other comprehensive loss before reclassifications (712 ) (4,643 ) — (5,355 ) Amounts reclassified from accumulated other comprehensive income — 675 — 675 Net current-period other comprehensive loss (712 ) (3,968 ) — (4,680 ) Balance at September 30, 2019 $ (5,667 ) $ (7,642 ) $ — $ (13,309 ) |
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, 2019 and 2018: Amount reclassified from accumulated other comprehensive loss Details about accumulated other comprehensive loss components 2019 2018 Affected line item in the Consolidated Statement of Operations Amortization of Retirement plan liability: Prior service costs $ — $ — (1) Net actuarial gain (loss) (4,214 ) 974 (1) Settlements/curtailments 246 — (1) (3,968 ) 974 Total before taxes — — Income tax expense $ (3,968 ) $ 974 Net of taxes (1) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. See Note 8, Retirement Benefit Plans , of the consolidated financial statements for further information. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at September 30 consist of: 2019 2018 Raw materials and supplies $ 4,512 $ 6,202 Work-in-process 2,721 6,626 Finished goods 3,276 5,441 Total inventories $ 10,509 $ 18,269 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 Weighted Average Life at September 30, Original Cost Accumulated Amortization Impairment Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 1,876 $ 1,503 $ — $ (13 ) $ 360 Technology asset 5 years 1,869 1,544 — (28 ) 297 Customer relationships 10 years 13,589 10,859 — (67 ) 2,663 Total intangible assets $ 17,334 $ 13,906 $ — $ (108 ) $ 3,320 September 30, 2018 Intangible assets: Trade name 8 years $ 2,466 $ 1,821 $ — $ (4 ) $ 641 Technology asset 5 years 1,869 1,128 — (10 ) 731 Customer relationships 10 years 13,589 9,866 — (19 ) 3,704 Total intangible assets $ 17,924 $ 12,815 $ — $ (33 ) $ 5,076 |
Expected Future Amortization Expense | Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2020 $ 1,486 Fiscal year 2021 999 Fiscal year 2022 314 Fiscal year 2023 237 Fiscal year 2024 164 |
Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill were as follows: Balance at September 30, 2017 $ 12,170 Currency translation (150 ) Balance at September 30, 2018 12,020 Goodwill impairment adjustment (8,294 ) Currency translation (233 ) Balance at September 30, 2019 $ 3,493 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at September 30 consist of: 2019 2018 Accrued employee compensation and benefits $ 4,235 $ 3,864 Other accrued liabilities 1,322 1,243 Total accrued liabilities $ 5,557 $ 5,107 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt at September 30 consists of: 2019 2018 Revolving credit agreement $ 15,542 $ 21,253 Foreign subsidiary borrowings 6,592 7,949 Capital lease obligations 138 327 Other debt 1,133 — Less: unamortized debt issuance cost (25 ) — Other loan less unamortized debt issuance cost 1,108 — Total debt 23,380 29,529 Less – current maturities (21,328 ) (27,197 ) Total long-term debt $ 2,052 $ 2,332 |
Schedule of Foreign Debt | Foreign debt at September 30 consists of: 2019 2018 Term loan $ 2,318 $ 3,548 Short-term borrowings 3,744 3,472 Factor 530 929 Total debt $ 6,592 $ 7,949 Less – current maturities (5,501 ) (5,822 ) Total long-term debt $ 1,091 $ 2,127 Receivables pledged as collateral $ 672 $ 2,007 |
Schedule of Maturities of Long-Term Debt | Payments on long-term debt under the foreign term debt and other debt (excluding capital lease obligations, see Note 10, Commitments and Contingencies , of the consolidated financial statements) over the next 5 years are as follows: Minimum long-term debt payments 2020 $ 1,249 2021 969 2022 524 2023 440 2024 262 thereafter 7 Total Minimum long-term debt payments $ 3,451 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a breakout of total revenue by customer type for the twelve months ended September 30, 2019 and 2018, respectively. Years Ended 2019 2018 ¹ Commercial revenue $ 54,999 $ 58,747 Military revenue 57,455 52,465 Total $ 112,454 $ 111,212 ¹ Prior period amounts have not been adjusted under the modified retrospective adoption method. The following table represents revenue by the various components for the twelve months ended September 30, 2019 and 2018, respectively. Years Ended Net Sales 2019 2018 ¹ Aerospace components for: Fixed wing aircraft $ 52,895 $ 56,891 Rotorcraft 23,602 22,053 Energy components for power generation units 17,646 20,893 Commercial product and other revenue 18,311 11,375 Total $ 112,454 $ 111,212 ¹ Prior period amounts have not been adjusted under the modified retrospective adoption method. The following table represents revenue by geographic region based on the Company's selling operation locations for the twelve months ended September 30 , 2019 and 2018, respectively: Years Ended Net Sales 2019 2018 ¹ North America 95,667 91,316 Europe 16,787 19,896 Total $ 112,454 $ 111,212 ¹ Prior period amounts have not been adjusted under the modified retrospective adoption method. |
Contract Assets | The following table contains a roll forward of contract assets and contract liabilities for the period ended September 30, 2019: Contract assets - Beginning balance, October 1, 2018 $ 10,140 Additional revenue recognized over-time 62,499 Less amounts billed to the customers $ (62,290 ) Contract assets - Ending balance, September 30, 2019 $ 10,349 Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2018 $ — Payments received in advance of performance obligations (2,000 ) Performance obligations satisfied 1,618 Contract liabilities (included within Accrued liabilities) - Ending balance, September 30, 2019 $ (382 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss from Continuing Operations Before Income Tax Benefit | The components of loss before income tax benefit are as follows: Years Ended September 30, 2019 2018 U.S. $ 3,416 $ (7,582 ) Non-U.S. (11,623 ) 51 Loss before income tax benefit $ (8,207 ) $ (7,531 ) |
Schedule of Income Taxes from Continuing Operations Before Income Tax Benefit | Income tax benefit consist of the following: Years Ended September 30, 2019 2018 Current income tax provision (benefit): U.S. federal $ — $ (19 ) U.S. state and local (27 ) 5 Non-U.S. (109 ) 472 Total current tax provision (benefit) (136 ) 458 Deferred income tax provision (benefit): U.S. federal 8 (462 ) U.S. state and local 2 (30 ) Non-U.S. (575 ) (327 ) Total deferred tax provision (benefit) (565 ) (819 ) Income tax benefit $ (701 ) $ (361 ) |
Income Tax Benefit from Continuing Operations | The income tax benefit in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows: Years Ended September 30, 2019 2018 Loss before income tax benefit $ (8,207 ) $ (7,531 ) Income tax benefit at U.S. federal statutory rates $ (1,723 ) $ (1,582 ) Tax effect of: Foreign rate differential 1,698 694 State and local income taxes 14 (25 ) Impact of tax law changes — 820 Federal tax credits (144 ) (1,573 ) Valuation allowance (556 ) 1,243 Prior year tax adjustments — (211 ) Other 10 273 Income tax benefit $ (701 ) $ (361 ) |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at September 30 consist of the following: 2019 2018 Deferred tax assets: Net U.S. operating loss carryforwards $ 5,002 $ 3,200 Net non-U.S. operating loss carryforwards 866 592 Employee benefits 2,456 1,656 Inventory reserves 970 1,029 Allowance for doubtful accounts 144 126 Intangibles 2,535 2,826 Foreign tax credits 1,724 1,956 Other tax credits 1,232 1,164 Other 918 1,015 Total deferred tax assets 15,847 13,564 Deferred tax liabilities: Depreciation (8,135 ) (5,449 ) Prepaid expenses (192 ) (296 ) Other (1,681 ) (1,832 ) Total deferred tax liabilities (10,008 ) (7,577 ) Net deferred tax assets 5,839 5,987 Valuation allowance (7,557 ) (8,400 ) Net deferred tax liabilities $ (1,718 ) $ (2,413 ) |
Summary of Activity Related to Uncertain Tax Position | A summary of activity related to the Company’s uncertain tax position is as follows: 2019 2018 Balance at beginning of year $ 53 $ 69 Decrease due to lapse of statute of limitations (31 ) (16 ) Balance at end of year $ 22 $ 53 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 2018 Service cost $ 299 $ 262 Interest cost 1,055 963 Expected return on plan assets (1,573 ) (1,608 ) Amortization of net loss 429 641 Settlement cost 246 — Net pension expense for defined benefit plans $ 456 $ 258 |
Roll Forward of Defined Benefit Pension Plan Obligations and Assets | The status of all defined benefit pension plans at September 30 is as follows: 2019 2018 Benefit obligations: Benefit obligations at beginning of year $ 27,437 $ 27,921 Service cost 299 262 Interest cost 1,055 963 Actuarial loss (gain) 3,691 178 Benefits paid (1,914 ) (1,880 ) Currency translation (20 ) (7 ) Benefit obligations at end of year $ 30,548 $ 27,437 Plan assets: Plan assets at beginning of year $ 22,052 $ 21,691 Actual return on plan assets 622 2,118 Employer contributions 210 123 Benefits paid (1,914 ) (1,880 ) Plan assets at end of year $ 20,970 $ 22,052 |
Net Plan Assets Recognized in the Consolidated Balance Sheets | Plans in which Benefit Obligations Exceed Assets at September 30, 2019 2018 Reconciliation of funded status: Plan assets less than projected benefit obligations $ (9,574 ) $ (5,385 ) Amounts recognized in accumulated other comprehensive loss: Net loss 11,404 7,432 Net amount recognized in the consolidated balance sheets $ 1,830 $ 2,047 Amounts recognized in the consolidated balance sheets are: Accrued liabilities (46 ) (46 ) Pension liability (9,528 ) (5,339 ) Accumulated other comprehensive loss – pretax 11,404 7,432 Net amount recognized in the consolidated balance sheets $ 1,830 $ 2,047 |
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 2019 are as follows: Plans in which Plans in which Net loss $ — $ 755 |
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 2019 2018 Discount rate for liabilities 2.9 % 4.1 % Discount rate for expenses 4.2 % 3.6 % Expected return on assets 7.5 % 7.7 % |
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, 2019 and 2018: September 30, 2019 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 435 $ 435 $ — Large blend 9,368 9,368 — Large growth 625 625 — Mid blend 163 163 — Small blend 159 159 — Non-U.S. equity securities: Foreign large blend 1,607 1,607 — Diversified emerging markets 17 17 — U.S. debt securities: Inflation protected bond 1,100 1,100 — Intermediate term bond 6,974 4,969 2,005 High inflation bond 173 173 — Non-U.S. debt securities: Emerging markets bonds 106 106 — Stable value: Short-term bonds 243 243 — Total plan assets at fair value $ 20,970 $ 18,965 $ 2,005 September 30, 2018 Asset Amount Level 2 Level 3 U.S. equity securities: Large value $ 446 $ 446 $ — Large blend 9,910 9,910 — Large growth 825 825 — Mid blend 228 228 — Small blend 229 229 — Non-U.S. equity securities: Foreign large blend 1,714 1,714 — Diversified emerging markets 18 18 — U.S. debt securities: Inflation protected bond 1,184 1,184 — Intermediate term bond 6,811 4,996 1,815 High inflation bond 182 182 — Non-U.S. debt securities: Emerging markets bonds 38 38 — Stable value: Short-term bonds 467 467 — Total plan assets at fair value $ 22,052 $ 20,237 $ 1,815 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 2019 2018 U.S. equities 51 % 53 % 30% to 70% Non-U.S. equities 8 % 8 % 0% to 20% U.S. debt securities 39 % 37 % 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, 2019 and 2018 were as follows: 2019 2018 Balance at beginning of year $ 1,815 $ 2,175 Actual return on plan assets 190 1 Purchases and sales of plan assets, net — (361 ) Balance at end of year $ 2,005 $ 1,815 |
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 2020 $ 2,348 2021 2,020 2022 1,846 2023 1,931 2024 1,950 2025-2029 8,950 |
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 2019 2018 2019 2018 Fund ¹ Red Green Implemented $ 55 $ 60 Yes 5/31/2020 ¹ The fund is the IAM National Pension Fund – EIN 51-6031295 / Plan number 2. The IAM National Pension Fund ("IAM plan") 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, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Activity Related to Performance Shares | The following is a summary of activity related to performance and restricted shares: 2019 2018 Number of Shares Weighted Average Fair Value at Date of Grant Number of Weighted Average Outstanding at beginning of year 271 $ 7.20 194 $ 8.57 Restricted shares awarded 108 3.84 98 6.63 Restricted shares earned (77 ) 7.74 (33 ) 8.05 Performance shares awarded 87 4.73 68 6.70 Performance shares earned — — — — Awards forfeited (58 ) 7.29 (56 ) 9.85 Outstanding at end of year 331 $ 5.33 271 $ 7.20 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Insurance Recoveries Within Consolidated Condensed Financial Statements | As noted within the table below, payments totaling $1,168 were made towards this coverage as of September 30, 2019 and is reflected within the cost of goods sold line within the consolidated financial statements as of September 30, 2019. Balance sheet (Other receivables): September 30, 2018 $ — Cash received (8,486 ) Capital expenditures (equipment) 8,355 Other expenses 2,463 Business interruption 1,168 September 30, 2019 $ 3,500 The following table reflects how the proceeds received impacted the consolidated statements of operations as of September 30, 2019. Years Ended September 30, 2019 Balance without insurance proceeds Insurance recoveries Balance with insurance proceeds Cost of goods sold $ 105,448 $ (3,631 ) $ 101,817 Loss (gain) on disposal and impairment of assets 820 (8,355 ) (7,535 ) Net loss (19,492 ) (11,986 ) (7,506 ) |
Schedule of Minimum Rental Commitments Under Non-Cancelable Leases | At September 30, 2019, minimum rental commitments under non-cancelable leases are as follows: Year ending September 30, Finance Leases Operating Leases 2020 $ 61 $ 2,172 2021 61 1,865 2022 21 1,583 2023 6 1,502 2024 — 1,498 Thereafter — 16,711 Total minimum lease payments $ 149 $ 25,331 Less: Amount representing interest (11 ) Present value of minimum lease payments $ 138 |
Schedule of Finance Leased Assets | At September 30, assets recorded under capital leases consist of the following: 2019 2018 Machinery and equipment $ 380 $ 638 Accumulated depreciation (117 ) (278 ) |
Business Information (Tables)
Business Information (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | 2019 2018 Long-Lived Assets United States $ 35,079 29,595 Europe 11,562 23,059 $ 46,641 52,654 |
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 Maniago, Italy December 31, 2019 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)customergroupeventsegmentshares | Sep. 30, 2018USD ($)customersegmentshares | Oct. 01, 2019USD ($) | |
Accounting Policies [Line Items] | ||||
Number of operating segments | segment | 1 | 1 | ||
Allowance for doubtful accounts | $ 592 | $ 520 | ||
Accounts receivable, written off | 33 | 186 | ||
Bad debt expense | $ 39 | $ 415 | ||
Percentage of inventory estimated using LIFO method | 27.00% | 54.00% | ||
Reserve for obsolete and excess inventory | $ 3,335 | $ 3,979 | ||
Depreciation expense | $ 5,877 | 6,754 | ||
Number of asset impairment triggering events | event | 3 | |||
Number of long-lived asset groups under impairment review | group | 2 | |||
Assets held for sale | $ 0 | 35 | ||
Gain on disposal and impairment of assets | $ 282 | 282 | 905 | |
Proceeds from sale of building, machinery and equipment | $ 317 | |||
Other receivables | $ 3,500 | $ 0 | ||
Restricted shares included in calculation of net loss per share (in shares) | shares | 196,000 | 144,000 | ||
Performance obligation, description of timing | one year or less | |||
Research and development expense | $ 0 | $ 0 | ||
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 | $ 78 | $ 413 | ||
Minimum | ||||
Accounting Policies [Line Items] | ||||
Intangible assets amortized over useful lives (in years) | 1 year | |||
Minimum | Subsequent event | Accounting Standards Update 2016-02 | ||||
Accounting Policies [Line Items] | ||||
Right-of-use assets | $ 16,106 | |||
Operating lease liability | 16,106 | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Intangible assets amortized over useful lives (in years) | 10 years | |||
Maximum | Subsequent event | Accounting Standards Update 2016-02 | ||||
Accounting Policies [Line Items] | ||||
Right-of-use assets | 20,218 | |||
Operating lease liability | $ 20,218 | |||
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 | 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 | |||
Customer Concentration Risk | Sales Revenue, Net | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 44.00% | 31.00% | ||
Number of major customers | customer | 3 | 2 | ||
Customer Concentration Risk | Sales Revenue, Net | Total Customers And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 50.00% | 38.00% | ||
Number of major customers | customer | 4 | 3 | ||
Customer Concentration Risk | Sales Revenue, Net | Major Customer One And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 14.00% | 14.00% | ||
Customer Concentration Risk | Sales Revenue, Net | Major Customer Two And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 13.00% | 12.00% | ||
Customer Concentration Risk | Sales Revenue, Net | Major Customer Three And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 12.00% | 12.00% | ||
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 | 2 | 3 | ||
Customer Concentration Risk | Accounts Receivable | Total Customers And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Number of major customers | customer | 3 | 5 | ||
Customer Concentration Risk | Accounts Receivable | Major Customer One And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 15.00% | 16.00% | ||
Customer Concentration Risk | Accounts Receivable | Major Customer Two And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 14.00% | 14.00% | ||
Customer Concentration Risk | Accounts Receivable | Major Customer Three And Their Subcontractors | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 12.00% | 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 | Major Customer Five 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% | 10.00% | ||
Customer Concentration Risk | Accounts Receivable | Customer Two | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 10.00% | 10.00% | ||
Customer Concentration Risk | Accounts Receivable | Customer Three | ||||
Accounting Policies [Line Items] | ||||
Percentage of concentration risk | 10.00% | |||
Effect of Accounting Changes | Accounting Standards Update 2014-09 | ||||
Accounting Policies [Line Items] | ||||
Reserve for obsolete and excess inventory | $ 366 | |||
LIFO reserve | $ 508 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment by Major Asset Class (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 99,148 | $ 92,825 |
Less: Accumulated depreciation | 59,538 | 57,435 |
Property, plant and equipment, net | 39,610 | 35,390 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 964 | 995 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 15,805 | 15,365 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 82,379 | $ 76,465 |
Summary of Significant Accoun_6
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, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Net loss | $ (7,506) | $ (7,170) |
Weighted-average common shares outstanding (basic and diluted) (in shares) | 5,566 | 5,523 |
Net loss per share – basic and diluted: | ||
Net Loss per share (basic and diluted) (in dollars per share) | $ (1.35) | $ (1.30) |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 196 | 144 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Effects of Adoption of 2014-09 (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2018 | |
Statement of Financial Position [Abstract] | |||
Contract asset | $ 10,349 | $ 0 | $ 10,140 |
Inventories, net | 10,509 | 18,269 | 11,727 |
Contract liabilities (included within accrued liabilities) | 382 | 0 | |
Deferred income taxes | 1,718 | 2,413 | |
Retained earnings | 33,148 | 37,097 | 40,695 |
Income Statement [Abstract] | |||
Net sales | 112,454 | 111,212 | |
Cost of goods sold | 101,817 | 101,110 | |
Net loss | $ (7,506) | $ (7,170) | |
Net Loss per share (basic and diluted) (in dollars per share) | $ (1.35) | $ (1.30) | |
Accounting Standards Update 2014-09 | |||
Income Statement [Abstract] | |||
Cost of goods sold | $ (340) | ||
Previous Accounting Method | |||
Statement of Financial Position [Abstract] | |||
Contract asset | 0 | $ 0 | |
Inventories, net | 16,592 | 18,269 | |
Contract liabilities (included within accrued liabilities) | 537 | ||
Deferred income taxes | 1,718 | ||
Retained earnings | 28,727 | $ 37,097 | |
Income Statement [Abstract] | |||
Net sales | 112,090 | ||
Cost of goods sold | 102,276 | ||
Net loss | $ (8,329) | ||
Net Loss per share (basic and diluted) (in dollars per share) | $ (1.50) | ||
Effect of Accounting Changes | Accounting Standards Update 2014-09 | |||
Statement of Financial Position [Abstract] | |||
Contract asset | $ 10,349 | 10,140 | |
Inventories, net | (6,083) | (6,542) | |
Contract liabilities (included within accrued liabilities) | (155) | ||
Deferred income taxes | 0 | ||
Retained earnings | 4,421 | $ 3,598 | |
Income Statement [Abstract] | |||
Net sales | 364 | ||
Cost of goods sold | (459) | ||
Net loss | $ 823 | ||
Net Loss per share (basic and diluted) (in dollars per share) | $ 0.15 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 44,189 | $ 50,131 |
Other comprehensive loss before reclassifications | (5,355) | 4 |
Amounts reclassified from accumulated other comprehensive income (loss) | 675 | 618 |
Net current-period other comprehensive loss | (4,680) | 622 |
Ending balance | 36,054 | 44,189 |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (4,955) | (4,607) |
Other comprehensive loss before reclassifications | (712) | (348) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net current-period other comprehensive loss | (712) | (348) |
Ending balance | (5,667) | (4,955) |
AOCI tax benefit | 0 | 0 |
Retirement Plan Liability Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (3,674) | (4,648) |
Other comprehensive loss before reclassifications | (4,643) | 333 |
Amounts reclassified from accumulated other comprehensive income (loss) | 675 | 641 |
Net current-period other comprehensive loss | (3,968) | 974 |
Ending balance | (7,642) | (3,674) |
AOCI tax benefit | 3,758 | 3,758 |
Interest Rates Swap Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 4 |
Other comprehensive loss before reclassifications | 0 | 19 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (23) |
Net current-period other comprehensive loss | 0 | (4) |
Ending balance | 0 | 0 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (8,629) | (9,251) |
Ending balance | $ (13,309) | $ (8,629) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Reclassification Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before taxes | $ (8,207) | $ (7,531) |
Income tax expense | (701) | (361) |
Net loss | (7,506) | (7,170) |
Reclassification out of Accumulated Other Comprehensive Income | Prior service costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before taxes | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Net actuarial gain (loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before taxes | (4,214) | 974 |
Reclassification out of Accumulated Other Comprehensive Income | Settlements/curtailments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before taxes | 246 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Retirement Plan Liability Adjustment | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before taxes | (3,968) | 974 |
Income tax expense | 0 | 0 |
Net loss | $ (3,968) | $ 974 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Components of inventories | |||
Raw materials and supplies | $ 4,512 | $ 6,202 | |
Work-in-process | 2,721 | 6,626 | |
Finished goods | 3,276 | 5,441 | |
Total inventories | $ 10,509 | $ 11,727 | $ 18,269 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Inventory [Line Items] | ||
Additional amount that would have been reported in inventory if FIFO method had been used | $ 8,296 | $ 8,879 |
LIFO (benefit) expense | (75) | 560 |
Cost of goods sold | (101,817) | $ (101,110) |
Accounting Standards Update 2014-09 | ||
Inventory [Line Items] | ||
Cost of goods sold | $ 340 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets by Major Class Subject to Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Components of intangible assets by major class subject to amortization | ||
Original Cost | $ 17,334 | $ 17,924 |
Accumulated Amortization | 13,906 | 12,815 |
Impairment | 0 | 0 |
Currency Translation | (108) | (33) |
Net Book Value | $ 3,320 | $ 5,076 |
Trade name | ||
Components of intangible assets by major class subject to amortization | ||
Weighted average life | 8 years | 8 years |
Original Cost | $ 1,876 | $ 2,466 |
Accumulated Amortization | 1,503 | 1,821 |
Impairment | 0 | 0 |
Currency Translation | (13) | (4) |
Net Book Value | $ 360 | $ 641 |
Technology asset | ||
Components of intangible assets by major class subject to amortization | ||
Weighted average life | 5 years | 5 years |
Original Cost | $ 1,869 | $ 1,869 |
Accumulated Amortization | 1,544 | 1,128 |
Impairment | 0 | 0 |
Currency Translation | (28) | (10) |
Net Book Value | $ 297 | $ 731 |
Customer relationships | ||
Components of intangible assets by major class subject to amortization | ||
Weighted average life | 10 years | 10 years |
Original Cost | $ 13,589 | $ 13,589 |
Accumulated Amortization | 10,859 | 9,866 |
Impairment | 0 | 0 |
Currency Translation | (67) | (19) |
Net Book Value | $ 2,663 | $ 3,704 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,648,000 | $ 1,705,000 | |
Goodwill [Line Items] | |||
Goodwill impairment | 8,294,000 | 0 | |
Maniago Reporting Unit | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 8,294,000 | ||
Cleveland Reporting Unit | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | ||
Cleveland and Maniago Reporting Units | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Expected Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Amortization Expense | |
Fiscal year 2020 | $ 1,486 |
Fiscal year 2021 | 999 |
Fiscal year 2022 | 314 |
Fiscal year 2023 | 237 |
Fiscal year 2024 | $ 164 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Net Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 12,020 | $ 12,170 |
Goodwill impairment adjustment | (8,294) | 0 |
Currency translation | (233) | (150) |
Balance at end of period | $ 3,493 | $ 12,020 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Components of Accrued liabilities | ||
Accrued employee compensation and benefits | $ 4,235 | $ 3,864 |
Other accrued liabilities | 1,322 | 1,243 |
Total accrued liabilities | $ 5,557 | $ 5,107 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Components of long-term debt | ||
Total debt | $ 23,380 | $ 29,529 |
Less – current maturities | (21,328) | (27,197) |
Total long-term debt | 2,052 | 2,332 |
Capital lease obligations | ||
Components of long-term debt | ||
Total debt | 138 | 327 |
Other debt | ||
Components of long-term debt | ||
Other debt | 1,133 | 0 |
Less: unamortized debt issuance cost | (25) | 0 |
Total debt | 1,108 | 0 |
Revolving credit agreement | Line of Credit | ||
Components of long-term debt | ||
Total debt | 15,542 | 21,253 |
Foreign subsidiary borrowings | ||
Components of long-term debt | ||
Total debt | 6,592 | 7,949 |
Total long-term debt | $ 1,091 | $ 2,127 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Sep. 30, 2019USD ($) | Sep. 20, 2019USD ($) | Mar. 29, 2019 | Dec. 17, 2018USD ($) | Nov. 05, 2018 | Aug. 08, 2018USD ($) | Sep. 30, 2019USD ($)repaymenttranche | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)invoice | Sep. 30, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||||||||
Gain (loss) on extinguishment of debt | $ 0 | $ (496,000) | ||||||||
Revolver | $ 15,542,000 | $ 15,542,000 | $ 15,542,000 | 21,253,000 | ||||||
Number of customer invoices | invoice | 1 | |||||||||
Foreign subsidiary borrowings | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Receivables pledged as collateral | $ 672,000 | $ 672,000 | $ 672,000 | 2,007,000 | ||||||
Number of tranches with modified repayment schedule | tranche | 1 | |||||||||
Number of long-term debt repayments reduced | repayment | 2 | |||||||||
Repayments of debt reduction | $ 96,000 | |||||||||
Debt loan extension period | 6 months | |||||||||
Foreign subsidiary borrowings | Euro Interbank Offered Rate (Euribor) | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Euribor variable interest rates | 1.00% | 1.00% | 1.00% | |||||||
Foreign subsidiary borrowings | Euro Interbank Offered Rate (Euribor) | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Euribor variable interest rates | 4.00% | 4.00% | 4.00% | |||||||
2018 Credit Agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, covenant terms, fixed charge coverage ratio | 1.1 | |||||||||
Line of credit facility, availability of revolving commitment, fixed charge coverage ratio threshold | 12.50% | |||||||||
Line of credit facility, stock pledged, non-U.S. subsidiaries, percentage | 66.67% | |||||||||
2018 Credit Agreement | Revolving credit agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, maximum borrowing capacity | $ 30,000 | |||||||||
Credit facility accordion feature, increase amount | $ 10,000 | |||||||||
Line of credit facility, amount available | $ 7,709,000 | $ 7,709,000 | $ 7,709,000 | $ 8,437,000 | ||||||
Weighted average interest rate | 3.60% | 3.60% | 3.60% | 3.85% | ||||||
Commitment fee | 0.25% | |||||||||
Debt issuance costs, gross | $ 75,000 | $ 212,000 | $ 75,000 | $ 75,000 | ||||||
Accumulated amortization of debt issuance costs, revolver | $ 106,000 | $ 106,000 | $ 106,000 | $ 12,000 | ||||||
2018 Credit Agreement | Revolving credit agreement | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on LIBOR | 1.50% | |||||||||
First Amendment To Credit Agreement And Security Agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, availability of revolving commitment, fixed charge coverage ratio threshold for three or more business days in any consecutive 30 day period | 12.50% | |||||||||
Export Credit Facility | Revolving credit agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, maximum borrowing capacity | $ 5,000,000 | |||||||||
Credit facility accordion feature, increase amount | $ 35,000,000 | |||||||||
Weighted average interest rate | 3.40% | 3.40% | 3.40% | |||||||
Export Credit Facility | Revolving credit agreement | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on LIBOR | 1.25% | |||||||||
Third Amendment To Credit Agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, availability of revolving commitment, fixed charge coverage ratio threshold for three or more business days in any consecutive 30 day period | 12.50% | |||||||||
Fourth Amendment To Credit Agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, covenant terms, fixed charge coverage ratio | 1.1 | |||||||||
Line of credit facility, availability of revolving commitment, fixed charge coverage ratio threshold | 10.00% | |||||||||
Line of credit facility, availability of revolving commitment, fixed charge coverage ratio threshold for three or more business days in any consecutive 30 day period | 10.00% | 10.00% | ||||||||
Line of credit facility benchmark of collateral threshold | $ 20,000,000 | |||||||||
Receivables pledged as collateral | 24,000,000 | |||||||||
Collateral spring line of credit facility availability | $ 2,400,000 | $ 2,400,000 | $ 2,400,000 | |||||||
Fourth Amendment To Credit Agreement | Revolving credit agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, maximum borrowing capacity | 35,000,000 | 35,000,000 | 35,000,000 | |||||||
Line of credit facility, amount available | 7,709,000 | 7,709,000 | 7,709,000 | |||||||
Line of credit facility floor | 2,000,000 | |||||||||
Line of credit facility benchmark of collateral threshold | $ 20,000,000 | |||||||||
Total commitment spring line of credit facility availability | $ 3,500,000 | $ 3,500,000 | $ 3,500,000 | |||||||
Short Term Debt Arrangement For Working Capital Purposes | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt agreement term | 6 months | |||||||||
Revolver | $ 1,137,000 | |||||||||
As Of August 31, 2018 Or September 30, 2018 | First Amendment To Credit Agreement And Security Agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, covenant terms, fixed charge coverage ratio | 1.1 | |||||||||
On Or After October 31, 2018 | First Amendment To Credit Agreement And Security Agreement | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, covenant terms, fixed charge coverage ratio | 1.1 |
Debt - Foreign Subsidiary Borro
Debt - Foreign Subsidiary Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Line of Credit Facility [Line Items] | ||
Less – current maturities | $ (5,786) | $ (5,944) |
Total long-term debt | 2,052 | 2,332 |
Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 6,592 | 7,949 |
Less – current maturities | (5,501) | (5,822) |
Total long-term debt | 1,091 | 2,127 |
Receivables pledged as collateral | 672 | 2,007 |
Foreign subsidiary borrowings | Term Loan | ||
Line of Credit Facility [Line Items] | ||
Total debt | 2,318 | 3,548 |
Foreign subsidiary borrowings | Short Term Borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 3,744 | 3,472 |
Foreign subsidiary borrowings | Factor | ||
Line of Credit Facility [Line Items] | ||
Total debt | $ 530 | $ 929 |
Debt - Schedule of Minimum Long
Debt - Schedule of Minimum Long-term Debt Payments (Details) - Foreign subsidiary borrowings and other debt $ in Thousands | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 1,249 |
2021 | 969 |
2022 | 524 |
2023 | 440 |
2024 | 262 |
thereafter | 7 |
Total debt | $ 3,451 |
Revenue (Details)
Revenue (Details) | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |
Impairment loss on contract assets | $ 0 |
Remaining performance obligations | $ 117,600,000 |
Transferred over Time | Revenue from Contract with Customer Benchmark | |
Disaggregation of Revenue [Line Items] | |
Percentage of concentration risk | 56.00% |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 112,454 | $ 111,212 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 95,667 | 91,316 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 16,787 | 19,896 |
Commercial revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 54,999 | 58,747 |
Military revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 57,455 | 52,465 |
Fixed wing aircraft | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 52,895 | 56,891 |
Rotorcraft | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 23,602 | 22,053 |
Energy components for power generation units | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 17,646 | 20,893 |
Commercial product and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 18,311 | $ 11,375 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Change In Contract With Customer, Assets [Roll Forward] | |
Contract assets - Beginning balance, October 1, 2018 | $ 0 |
Additional revenue recognized over-time | 62,499 |
Less amounts billed to the customers | (62,290) |
Contract assets - Ending balance, September 30, 2019 | 10,349 |
Change In Contract With Customer, Liability [Roll Forward] | |
Payments received in advance of performance obligations | (2,000) |
Performance obligations satisfied | 1,618 |
Contract liabilities (included within Accrued liabilities) - Ending balance, September 30, 2019 | $ (382) |
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, 2019 | Sep. 30, 2018 | |
Components of income Before Income tax provision | ||
U.S. | $ 3,416 | $ (7,582) |
Non-U.S. | (11,623) | 51 |
Loss before income tax benefit | $ (8,207) | $ (7,531) |
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, 2019 | Sep. 30, 2018 | |
Current income tax provision (benefit): | ||
U.S. federal | $ 0 | $ (19) |
U.S. state and local | (27) | 5 |
Non-U.S. | (109) | 472 |
Total current tax provision (benefit) | (136) | 458 |
Deferred income tax provision (benefit): | ||
U.S. federal | 8 | (462) |
U.S. state and local | 2 | (30) |
Non-U.S. | (575) | (327) |
Total deferred tax provision (benefit) | (565) | (819) |
Income tax benefit | $ (701) | $ (361) |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Provision Accompanying Consolidated Statements of Operation | ||
Loss before income tax benefit | $ (8,207) | $ (7,531) |
Income tax benefit at U.S. federal statutory rates | (1,723) | (1,582) |
Tax effect of: | ||
Foreign rate differential | 1,698 | 694 |
State and local income taxes | 14 | (25) |
Impact of tax law changes | 0 | 820 |
Federal tax credits | (144) | (1,573) |
Valuation allowance | (556) | 1,243 |
Prior year tax adjustments | 0 | (211) |
Other | 10 | 273 |
Income tax benefit | $ (701) | $ (361) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Blended tax rate | 24.50% | |
Tax act, transition tax | $ 240,000 | |
Operating Loss Carryforwards [Line Items] | ||
Liability for uncertain tax positions, excluding any related interest and penalties | $ 22,000 | $ 53,000 |
Portion of liability related to uncertain tax position which, if recognized, would impact the effective tax rate | 22,000 | |
Accrued (reversal of accrued) interest | 13,000 | |
Interest and penalties from continuing operations | 800 | |
Undistributed earnings of foreign subsidiaries | 127,000 | |
Revenue commissioners, Ireland | Subsidiaries | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward | 6,618,000 | |
Foreign tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 1,724,000 | |
Domestic tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 19,358,000 | |
Tax credit carryforward amount subject to expiration | 12,625,000 | |
Tax credit carryforward amount not subject to expiration | 6,733,000 | |
State tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | 178,000 | |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward | 33,253,000 | |
General Business Tax Credit Carryforward | Domestic tax authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | $ 1,054,000 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets: | ||
Net U.S. operating loss carryforwards | $ 5,002 | $ 3,200 |
Net non-U.S. operating loss carryforwards | 866 | 592 |
Employee benefits | 2,456 | 1,656 |
Inventory reserves | 970 | 1,029 |
Allowance for doubtful accounts | 144 | 126 |
Intangibles | 2,535 | 2,826 |
Foreign tax credits | 1,724 | 1,956 |
Other tax credits | 1,232 | 1,164 |
Other | 918 | 1,015 |
Total deferred tax assets | 15,847 | 13,564 |
Deferred tax liabilities: | ||
Depreciation | (8,135) | (5,449) |
Prepaid expenses | (192) | (296) |
Other | (1,681) | (1,832) |
Total deferred tax liabilities | (10,008) | (7,577) |
Net deferred tax assets | 5,839 | 5,987 |
Valuation allowance | (7,557) | (8,400) |
Net deferred tax liabilities | $ (1,718) | $ (2,413) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Uncertain Tax Position (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of activity related to uncertain tax positions | ||
Balance at beginning of year | $ 53 | $ 69 |
Decrease due to lapse of statute of limitations | (31) | (16) |
Balance at end of year | $ 22 | $ 53 |
Retirement Benefit Plans - Net
Retirement Benefit Plans - Net Pension Expense for Defined Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Components of net periodic benefit cost | ||
Service cost | $ 299 | $ 262 |
Interest cost | 1,055 | 963 |
Expected return on plan assets | (1,573) | (1,608) |
Amortization of net loss | 429 | 641 |
Settlement cost | 246 | 0 |
Net pension expense for defined benefit plans | $ 456 | $ 258 |
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, 2019 | Sep. 30, 2018 | |
Benefit obligations: | ||
Benefit obligations at beginning of year | $ 27,437 | $ 27,921 |
Service cost | 299 | 262 |
Interest cost | 1,055 | 963 |
Actuarial loss (gain) | 3,691 | 178 |
Benefits paid | (1,914) | (1,880) |
Currency translation | (20) | (7) |
Benefit obligations at end of year | 30,548 | 27,437 |
Plan assets: | ||
Plan assets at beginning of year | 22,052 | 21,691 |
Actual return on plan assets | 622 | 2,118 |
Employer contributions | 210 | 123 |
Benefits paid | (1,914) | (1,880) |
Plan assets at end of year | $ 20,970 | $ 22,052 |
Retirement Benefit Plans - Ne_2
Retirement Benefit Plans - Net Plan Assets Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Reconciliation of funded status: | ||
Plan assets less than projected benefit obligations | $ (9,574) | $ (5,385) |
Amounts recognized in accumulated other comprehensive loss: | ||
Net loss, plans in which benefit obligations exceed assets | 11,404 | 7,432 |
Net amount recognized in the consolidated balance sheets, Plans in which Benefit Obligations Exceed Assets | 1,830 | 2,047 |
Amounts recognized in the consolidated balance sheets are: | ||
Accumulated other comprehensive loss pretax, Plans in which Benefit Obligations Exceed Assets | 11,404 | 7,432 |
Accrued liabilities | ||
Amounts recognized in the consolidated balance sheets are: | ||
Liabilities | (46) | (46) |
Pension liability | ||
Amounts recognized in the consolidated balance sheets are: | ||
Liabilities | $ (9,528) | $ (5,339) |
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, 2019USD ($) | |
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 | $ 755 |
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, 2019 | Sep. 30, 2018 | |
Developing the benefit obligation and the net pension expense for defined benefit pension plans | ||
Discount rate for liabilities | 2.90% | 4.10% |
Discount rate for expenses | 4.20% | 3.60% |
Expected return on assets | 7.50% | 7.70% |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 20,970 | $ 22,052 | $ 21,691 |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 18,965 | 20,237 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 2,005 | 1,815 | $ 2,175 |
Large value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 435 | 446 | |
Large value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 435 | 446 | |
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 | 9,368 | 9,910 | |
Large blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 9,368 | 9,910 | |
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 | 625 | 825 | |
Large growth | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 625 | 825 | |
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 | 163 | 228 | |
Mid blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 163 | 228 | |
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 | 159 | 229 | |
Small blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 159 | 229 | |
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 | 1,607 | 1,714 | |
Foreign large blend | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 1,607 | 1,714 | |
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 | 17 | 18 | |
Diversified emerging markets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 17 | 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 | 1,100 | 1,184 | |
Inflation protected bond | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 1,100 | 1,184 | |
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 | 6,974 | 6,811 | |
Intermediate term bond | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 4,969 | 4,996 | |
Intermediate term bond | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 2,005 | 1,815 | |
High inflation bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 173 | 182 | |
High inflation bond | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 173 | 182 | |
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 | 106 | 38 | |
Emerging markets bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 106 | 38 | |
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 | 243 | 467 | |
Short-term bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 243 | 467 | |
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, 2019 | Sep. 30, 2018 | |
Changes in the fair value of the Company's Level 3 investments | ||
Plan assets at beginning of year | $ 22,052 | $ 21,691 |
Actual return on plan assets | 622 | 2,118 |
Plan assets at end of year | 20,970 | 22,052 |
Level 3 | ||
Changes in the fair value of the Company's Level 3 investments | ||
Plan assets at beginning of year | 1,815 | 2,175 |
Actual return on plan assets | 190 | 1 |
Purchases and sales of plan assets, net | 0 | (361) |
Plan assets at end of year | $ 2,005 | $ 1,815 |
Retirement Benefit Plans - As_2
Retirement Benefit Plans - Asset Allocation Ranges of Defined Benefit Plan Investments (Details) | Sep. 30, 2019 | Sep. 30, 2018 |
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% | 53.00% |
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% | 8.00% |
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% | 37.00% |
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, 2019 | Sep. 30, 2018 | |
Retirement Benefits [Abstract] | ||
Employer contributions | $ 403 | |
Plan funded percentage | 89.00% | |
Employer matching contribution percentage of employees' gross pay | 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 | $ 470 | $ 475 |
Retirement Benefit Plans - Sche
Retirement Benefit Plans - Schedule of Projected Future Defined Benefit Plan Payments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Projected Benefit Payments | |
2020 | $ 2,348 |
2021 | 2,020 |
2022 | 1,846 |
2023 | 1,931 |
2024 | 1,950 |
2025-2029 | $ 8,950 |
Retirement Benefit Plans - Sc_2
Retirement Benefit Plans - Schedule of Contributions in U.S. Multi-Employer Retirement Plan for Certain Union Employees (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019USD ($)plan | Sep. 30, 2018USD ($) | |
Retirement Benefits [Abstract] | ||
Multiemployer plans, number of plans | plan | 1 | |
Contributions by the Company | $ | $ 55 | $ 60 |
Amortization period of losses utilized under pension fund | 30 years |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - 2007 Plan - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
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) | 165,000 | |
Outstanding share awards earned and issued at greater than the target number of shares | 200.00% | |
Stock-based compensation expense (benefit) | $ 511 | $ 608 |
Total unrecognized compensation cost related to performance and restricted shares awarded | $ 569 | |
Period of recognized compensation cost | 1 year 3 months | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise period for performance shares awarded under 2007 Plan | 3 years | |
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 | |
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 | 200.00% | |
Restricted shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 1 year | |
Restricted shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vesting period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Activity Related to Performance Shares (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Outstanding at beginning of period (in shares) | 271 | 194 |
Shares forfeited (in shares) | (58) | (56) |
Outstanding at end of period (in shares) | 331 | 271 |
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) | $ 7.20 | $ 8.57 |
Shares forfeited, Weighted Average Fair Value at Date of Grant (in dollars per share) | 7.29 | 9.85 |
Outstanding at end of period, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 5.33 | $ 7.20 |
Restricted shares | ||
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Shares awarded (in shares) | 108 | 98 |
Shares earned (in shares) | (77) | (33) |
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) | $ 3.84 | $ 6.63 |
Shares earned, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 7.74 | $ 8.05 |
Performance shares | ||
Summary of activity related to target number of shares awarded and actual number of shares earned | ||
Shares awarded (in shares) | 87 | 68 |
Shares earned (in shares) | 0 | 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) | $ 4.73 | $ 6.70 |
Shares earned, Weighted Average Fair Value at Date of Grant (in dollars per share) | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 26, 2018buildingpress | |
Loss Contingencies [Line Items] | ||||
Impairment charges offset by insurance proceeds | $ 1,107 | |||
Rent expense | 2,391 | $ 2,522 | ||
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 | 250 | $ 11 | ||
Loss contingency, paid | $ 391 | |||
Insurance recoveries | ||||
Loss Contingencies [Line Items] | ||||
Number of manufacturing buildings | building | 3 | |||
Number of presses on site | press | 8 | |||
Insurance proceeds recorded | 11,986 | |||
Cash proceeds | 8,486 | |||
Business interruption | 1,168 | |||
Damage from Fire, Explosion or Other Hazard | Insurance recoveries | ||||
Loss Contingencies [Line Items] | ||||
Number of damaged manufacturing buildings | building | 1 | |||
Number of damaged presses on site | press | 6 | |||
Buildings | Insurance recoveries | ||||
Loss Contingencies [Line Items] | ||||
Capital expenditures (equipment) | $ 2,878 |
Commitments and Contingencies_2
Commitments and Contingencies - Insurance Receivable Balance Sheet Rollforward (Details) - Insurance recoveries $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Other receivable, beginning balance | $ 0 |
Cash received | (8,486) |
Other expenses | 2,463 |
Business interruption | 1,168 |
Other receivable, ending balance | 3,500 |
Equipment | |
Loss Contingencies [Line Items] | |
Capital expenditures (equipment) | $ 8,355 |
Commitments and Contingencies_3
Commitments and Contingencies - Insurance Proceeds Impact On Consolidated Condensed Statements Of Operation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Loss Contingencies [Line Items] | ||
Cost of goods sold | $ 101,817 | $ 101,110 |
Loss (gain) on disposal and impairment of assets | (7,535) | (905) |
Net loss | (7,506) | $ (7,170) |
Balance without insurance proceeds | ||
Loss Contingencies [Line Items] | ||
Cost of goods sold | 105,448 | |
Loss (gain) on disposal and impairment of assets | 820 | |
Net loss | (19,492) | |
Insurance recoveries | ||
Loss Contingencies [Line Items] | ||
Cost of goods sold | (3,631) | |
Loss (gain) on disposal and impairment of assets | (8,355) | |
Net loss | $ (11,986) |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Minimum Rental Commitments Under Non-Cancelable Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Finance Leases | |
2020 | $ 61 |
2021 | 61 |
2022 | 21 |
2023 | 6 |
2024 | 0 |
Thereafter | 0 |
Total minimum lease payments | 149 |
Amount representing interest | (11) |
Present value of minimum lease payments | 138 |
Operating Leases | |
2020 | 2,172 |
2021 | 1,865 |
2022 | 1,583 |
2023 | 1,502 |
2024 | 1,498 |
Thereafter | 16,711 |
Total minimum lease payments | $ 25,331 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Machinery and equipment | $ 380 | $ 638 |
Accumulated depreciation | $ (117) | $ (278) |
Business Information - Narrativ
Business Information - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2019bargaining_unit | Sep. 30, 2019USD ($)segmentemployeebargaining_unit | Sep. 30, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Identifiable assets | $ 46,641 | $ 52,654 | |
Number of employees represented by separate collective bargaining agreements | employee | 195 | ||
Number of collective bargain agreements | bargaining_unit | 2 | ||
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Identifiable assets | $ 35,079 | 29,595 | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Identifiable assets | 11,562 | 23,059 | |
Maniago | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Identifiable assets | $ 20,986 | $ 33,507 | |
Sales Revenue, Net | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of concentration risk | 72.00% | 69.00% | |
Sales Revenue, Net | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of concentration risk | 15.00% | 19.00% | |
Sales Revenue, Net | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of concentration risk | 6.00% | 7.00% | |
Subsequent event | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of units entered into early negotiations and ratification of CBA | bargaining_unit | 2 |
Business Information - Long-liv
Business Information - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 46,641 | $ 52,654 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 35,079 | 29,595 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 11,562 | $ 23,059 |
Subsequent events - Narrative (
Subsequent events - Narrative (Details) - IAM National Pension Fund - Subsequent event $ in Thousands | Nov. 26, 2019USD ($)union |
Subsequent Event [Line Items] | |
Number of unions | union | 1 |
Withdrawal liability | $ | $ 745 |
Payment period | 20 years |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for doubtful accounts | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves, beginning balance | $ 520 | $ 330 |
Additions (Reductions) Charged to Expense | 39 | 415 |
Additions (Reductions) Charged to Other Accounts | 0 | (39) |
Deductions | 33 | (186) |
Valuation allowances and reserves, ending balance | 592 | 520 |
Inventory obsolescence reserve | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves, beginning balance | 3,879 | 3,859 |
Additions (Reductions) Charged to Expense | 517 | 177 |
Additions (Reductions) Charged to Other Accounts | (106) | (30) |
Deductions | (632) | (127) |
Valuation allowances and reserves, ending balance | 3,335 | 3,879 |
Inventory LIFO reserve | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves, beginning balance | 8,879 | 8,319 |
Additions (Reductions) Charged to Expense | (75) | 560 |
Additions (Reductions) Charged to Other Accounts | 0 | 0 |
Deductions | 0 | 0 |
Valuation allowances and reserves, ending balance | 8,296 | 8,879 |
Deferred tax valuation allowance | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves, beginning balance | 8,400 | 9,597 |
Additions (Reductions) Charged to Expense | (1,817) | (968) |
Additions (Reductions) Charged to Other Accounts | 974 | (229) |
Deductions | 0 | |
Valuation allowances and reserves, ending balance | 7,557 | 8,400 |
Workers’ compensation reserve | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves, beginning balance | 136 | 237 |
Additions (Reductions) Charged to Expense | 395 | (132) |
Additions (Reductions) Charged to Other Accounts | 0 | 0 |
Deductions | (350) | 31 |
Valuation allowances and reserves, ending balance | 181 | 136 |
Accounting Standards Update 2014-09 | Inventory obsolescence reserve | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves, beginning balance | 3,556 | |
Valuation allowances and reserves, ending balance | 3,556 | |
Accounting Standards Update 2014-09 | Inventory LIFO reserve | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowances and reserves, beginning balance | $ 8,371 | |
Valuation allowances and reserves, ending balance | $ 8,371 |
Uncategorized Items - sif-20190
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,598,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,598,000 |