Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION (Tables)

v3.21.2
SEGMENT INFORMATION (Tables)
 12 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION
Information about the Company's segments follows:
  SGK Brand Solutions Memorialization Industrial Technologies Corporate and Non-Operating Consolidated
Sales to external customers:
2021 $ 726,895  $ 769,016  $ 175,119  $ —  $ 1,671,030 
2020 693,093  656,035  149,178  —  1,498,306 
2019 743,869  636,892  156,515  —  1,537,276 
Intersegment sales:
2021 55  —  —  —  55 
2020 29  4  281  —  314 
2019 703  25  48  —  776 
Depreciation and amortization:
2021 99,490  23,043  5,602  5,377  133,512 
2020 87,597  20,527  5,771  5,163  119,058 
2019 59,684  19,731  6,195  5,183  90,793 
Adjusted EBITDA:
2021 99,665  165,653  26,659  (64,227) 227,750 
2020 90,644  146,285  22,753  (56,602) 203,080 
2019 119,493  134,286  24,082  (56,989) 220,872 
Total assets:
2021 961,996  807,215  197,715  65,152  2,032,078 
2020 1,014,097  779,886  192,948  85,702  2,072,633 
2019 1,106,276  830,377  191,533  62,417  2,190,603 
Capital expenditures:
2021 19,117  11,969  1,278  1,949  34,313 
2020 20,250  11,282  1,598  1,719  34,849 
2019 22,310  9,352  2,382  3,644  37,688 
A reconciliation of adjusted EBITDA to net income follows:
2021 2020 2019
Total Adjusted EBITDA $ 227,750  $ 203,080  $ 220,872 
Acquisition related items (1)**
(541) (3,440) (10,084)
ERP integration costs (2)**
(1,037) (2,296) (7,508)
Strategic initiatives and other charges: (3)**
Workforce reductions and related costs (10,644) (9,232) (5,061)
Other cost-reduction initiatives (17,317) (25,718) (9,176)
Legal matter reserve (4)
—  (10,566) — 
Non-recurring / incremental COVID-19 costs (5)***
(5,312) (3,908) — 
Goodwill write-downs (6)
—  (90,408) (77,572)
Net realized gains (losses) on divestitures and asset dispositions:
Gain (loss) on sale of ownership interests in subsidiaries (7)
—  11,208  (6,469)
Realized loss on cost-method investments (8)
—  —  (4,731)
Net gains from the sale of buildings and vacant properties (9)
—  —  7,347 
Joint Venture depreciation, amortization, interest expense and other charges (10)
—  (4,732) (1,514)
Stock-based compensation (15,581) (8,096) (7,729)
Non-service pension and postretirement expense (11)
(5,837) (7,789) (3,802)
Depreciation and amortization *
(133,512) (119,058) (90,793)
Interest expense (28,684) (34,885) (40,962)
Net loss attributable to noncontrolling interests (52) (497) (901)
Income (loss) before income taxes 9,233  (106,337) (38,083)
Income tax (provision) benefit (6,375) 18,685  (806)
Net income (loss) $ 2,858  $ (87,652) $ (38,889)
(1) Includes certain non-recurring items associated with recent acquisition activities.
(2) Represents costs associated with global ERP system integration efforts.
(3) Includes certain non-recurring costs primarily associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels.
(4) Represents a reserve established for a legal matter involving a letter of credit for a customer in Saudi Arabia within the Memorialization segment (see Note 9, "Long Term Debt").
(5) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19.
(6) Represents goodwill write-downs within the SGK Brand Solutions segment (see Note 21, "Goodwill and Other Intangible Assets").
(7) Represents the gain (loss) on the sale of ownership interests in subsidiaries within the Memorialization segment.
(8) Includes gains/losses related to cost-method investments, and related assets, within the SGK Brand Solutions and Memorialization segments.
(9) Includes significant building and vacant property transactions resulting in a gain of $8,663 within the Industrial Technologies segment and losses of $915 and $401 within the SGK Brand Solutions and Memorialization segments, respectively.
(10) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other non-recurring charges incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment.
(11) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, and curtailment gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses are excluded from Adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.
* Depreciation and amortization was $99,490, $87,597, and $59,684 for the SGK Brand Solutions segment, $23,043, $20,527, and $19,731 for the Memorialization segment, $5,602, $5,771, and $6,195 for the Industrial Technologies segment, and $5,377, $5,163, and $5,183 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021, 2020, and 2019, respectively.
** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $16,349, $14,737, and $8,903 for the SGK Brand Solutions segment and $11,267, $22,985, and $19,853 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021, 2020, and 2019, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $1,923 and $2,696 for the Memorialization segment for the fiscal years ended September 30, 2021, and 2020, respectively. Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $268 and $3,073 for the Industrial Technologies segment for the fiscal years ended September 30, 2020 and 2019, respectively.
*** Non-recurring/incremental COVID-19 costs were $1,563 and $1,453 for the SGK Brand Solutions segment, $3,646 and $1,819 for the Memorialization segment, $14 and $21 for the Industrial Technologies segment, and $89 and $615 for Corporate and Non-Operating, for the fiscal years ended September 30, 2021 and 2020, respectively.

Information about the Company's operations by geographic area follows:
  North America Central and South America Europe Australia Asia Consolidated
Sales to external customers:
2021 $ 1,141,396  $ 5,036  $ 446,274  $ 23,568  $ 54,756  $ 1,671,030 
2020 1,037,705  6,304  387,831  21,079  45,387  1,498,306 
2019 1,038,268  5,853  426,253  20,885  46,017  1,537,276 
Long-lived assets:          
2021 890,545  14,226  277,655  21,012  55,598  1,259,036 
2020 957,393  14,063  286,990  21,746  55,482  1,335,674 
2019 1,047,505  15,585  342,802  21,278  57,729  1,484,899