Matthews International Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION

SEGMENT INFORMATION

12 Months Ended

Sep. 30, 2017

SEGMENT INFORMATION:

The Company manages its businesses under three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment includes brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets and cremation equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes marking and coding equipment and consumables, industrial automation products and order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. Management evaluates segment performance based on operating profit (before income taxes) and does not allocate non-operating items such as investment income, interest expense, other income (deductions), net and noncontrolling interest amongst the segments.

The accounting policies of the segments are the same as those described in Summary of Significant Accounting Policies (Note 2). Intersegment sales are accounted for at negotiated prices. Operating profit is total revenue less operating expenses. Segment assets include those assets that are used in the Company's operations within each segment. Assets classified under "Other" principally consist of cash and cash equivalents, investments, deferred income taxes and corporate headquarters' assets. Long-lived assets include property, plant and equipment (net of accumulated depreciation), goodwill, and other intangible assets (net of accumulated amortization).

Information about the Company's segments follows:



	SGK Brand Solutions		Memorialization		Industrial Technologies		Other		Consolidated
Sales to external customers:
2017	$	770,181	$	615,882	$	129,545	$	—	$	1,515,608
2016	755,975		610,142		114,347		—		1,480,464
2015	798,339		508,058		119,671		—		1,426,068
Intersegment sales:
2017	356		—		2		—		358
2016	346		43		99		—		488
2015	478		77		25		—		580
Depreciation and amortization:
2017	41,941		19,808		2,863		3,369		67,981
2016	41,238		19,223		2,503		2,516		65,480
2015	46,594		12,410		2,294		1,322		62,620
Operating profit:
2017	24,919		80,652		7,032		—		112,603
2016	42,909		68,252		7,654		—		118,815
2015	21,864		70,064		13,095		—		105,023
Total assets:
2017	1,276,295		741,148		161,472		65,734		2,244,649
2016	1,177,816		735,985		122,179		55,061		2,091,041
2015	1,157,771		762,028		115,664		108,148		2,143,611
Capital expenditures:
2017	22,941		8,078		4,622		9,294		44,935
2016	22,043		11,870		3,461		4,308		41,682
2015	23,676		10,922		5,866		7,787		48,251

Information about the Company's operations by geographic area follows:



	United States		Central and South America		Canada		Europe		Australia		Asia		Consolidated
Sales to external customers:
2017	$	1,014,906	$	6,518	$	29,018	$	396,242	$	21,507	$	47,417	$	1,515,608
2016	1,018,129		10,160		27,589		360,678		20,043		43,865		1,480,464
2015	936,513		8,806		30,367		398,533		21,225		30,624		1,426,068

Long-lived assets:
2017	1,027,891		13,882		41,971		382,940		24,887		66,138		1,557,709
2016	1,000,870		13,267		41,393		334,847		23,768		50,677		1,464,822
2015	1,016,703		17,488		41,690		349,533		22,072		50,650		1,498,136