x | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
PENNSYLVANIA
|
25‑0644320
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
Incorporation or organization)
|
Identification No.)
|
TWO NORTHSHORE CENTER, PITTSBURGH, PA
|
15212‑5851
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Registrant's telephone number, including area code
|
(412) 442‑8200
|
Yes x
|
No o
|
Yes x
|
No o
|
Large accelerated filer x
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller reporting company o
|
Yes o
|
No x
|
June 30, 2015
|
September 30, 2014
|
|||||||||||||||
ASSETS
|
||||||||||||||||
Current assets:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
69,788
|
$
|
63,003
|
||||||||||||
Accounts receivable, net
|
268,306
|
282,730
|
||||||||||||||
Inventories
|
142,911
|
152,842
|
||||||||||||||
Deferred income taxes
|
13,589
|
18,197
|
||||||||||||||
Other current assets
|
54,274
|
49,456
|
||||||||||||||
Total current assets
|
548,868
|
566,228
|
||||||||||||||
Investments
|
26,937
|
23,130
|
||||||||||||||
Property, plant and equipment: Cost
|
$
|
466,601
|
$
|
459,388
|
||||||||||||
Less accumulated depreciation
|
(267,609
|
)
|
(250,073
|
)
|
||||||||||||
198,992
|
209,315
|
|||||||||||||||
Deferred income taxes
|
6,062
|
4,019
|
||||||||||||||
Other assets
|
14,271
|
20,027
|
||||||||||||||
Goodwill
|
788,936
|
819,467
|
||||||||||||||
Other intangible assets, net
|
346,316
|
381,862
|
||||||||||||||
Total assets
|
$
|
1,930,382
|
$
|
2,024,048
|
||||||||||||
LIABILITIES
|
||||||||||||||||
Current liabilities:
|
||||||||||||||||
Long-term debt, current maturities
|
$
|
11,981
|
$
|
15,228
|
||||||||||||
Trade accounts payable
|
61,445
|
72,040
|
||||||||||||||
Accrued compensation
|
63,595
|
60,690
|
||||||||||||||
Accrued income taxes
|
5,324
|
7,079
|
||||||||||||||
Deferred income tax
|
111
|
235
|
||||||||||||||
Other current liabilities
|
106,558
|
98,011
|
||||||||||||||
Total current liabilities
|
249,014
|
253,283
|
||||||||||||||
Long-term debt
|
676,418
|
714,027
|
||||||||||||||
Accrued pension
|
80,263
|
78,550
|
||||||||||||||
Postretirement benefits
|
20,430
|
20,351
|
||||||||||||||
Deferred income taxes
|
124,291
|
129,335
|
||||||||||||||
Other liabilities
|
28,444
|
53,296
|
||||||||||||||
Total liabilities
|
1,178,860
|
1,248,842
|
||||||||||||||
SHAREHOLDERS' EQUITY
|
||||||||||||||||
Shareholders' equity-Matthews:
|
||||||||||||||||
Common stock
|
$
|
36,334
|
$
|
36,334
|
||||||||||||
Additional paid-in capital
|
114,428
|
113,225
|
||||||||||||||
Retained earnings
|
831,914
|
798,353
|
||||||||||||||
Accumulated other comprehensive loss
|
(124,400
|
)
|
(66,817
|
)
|
||||||||||||
Treasury stock, at cost
|
(110,451
|
)
|
(109,950
|
)
|
||||||||||||
Total shareholders' equity-Matthews
|
747,825
|
771,145
|
||||||||||||||
Noncontrolling interests
|
3,697
|
4,061
|
||||||||||||||
Total shareholders' equity
|
751,522
|
775,206
|
||||||||||||||
Total liabilities and shareholders' equity
|
$
|
1,930,382
|
$
|
2,024,048
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Sales
|
$
|
364,752
|
$
|
279,983
|
$
|
1,057,730
|
$
|
756,765
|
||||||||
Cost of sales
|
(229,316
|
)
|
(175,753
|
)
|
(669,929
|
)
|
(480,977
|
)
|
||||||||
Gross profit
|
135,436
|
104,230
|
387,801
|
275,788
|
||||||||||||
Selling and administrative expenses
|
(108,031
|
)
|
(72,400
|
)
|
(315,536
|
)
|
(208,736
|
)
|
||||||||
Operating profit
|
27,405
|
31,830
|
72,265
|
67,052
|
||||||||||||
Investment income
|
58
|
456
|
1,031
|
1,683
|
||||||||||||
Interest expense
|
(4,849
|
)
|
(2,785
|
)
|
(15,116
|
)
|
(8,240
|
)
|
||||||||
Other income (deductions), net
|
9,845
|
(899
|
)
|
6,420
|
(2,773
|
)
|
||||||||||
Income before income taxes
|
32,459
|
28,602
|
64,600
|
57,722
|
||||||||||||
Income taxes
|
(9,245
|
)
|
(9,185
|
)
|
(18,314
|
)
|
(19,616
|
)
|
||||||||
Net income
|
23,214
|
19,417
|
46,286
|
38,106
|
||||||||||||
Net (income) loss attributable to noncontrolling interests
|
(74
|
)
|
(376
|
)
|
189
|
(286
|
)
|
|||||||||
Net income attributable to Matthews shareholders
|
$
|
23,140
|
$
|
19,041
|
$
|
46,475
|
$
|
37,820
|
||||||||
Earnings per share attributable to Matthews shareholders:
|
||||||||||||||||
Basic
|
|
$0.70
|
|
$0.70
|
|
$1.41
|
|
$1.38
|
||||||||
Diluted
|
|
$0.70
|
|
$0.69
|
|
$1.40
|
|
$1.37
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
Matthews
|
Noncontrolling Interest
|
Total
|
||||||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||||
Net income (loss):
|
$
|
23,140
|
$
|
19,041
|
$
|
74
|
$
|
376
|
$
|
23,214
|
$
|
19,417
|
||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||
Foreign currency translation adjustment
|
8,283
|
477
|
(9
|
)
|
120
|
8,274
|
597
|
|||||||||||||||||
Pension plans and other postretirement
benefits
|
876
|
565
|
-
|
-
|
876
|
565
|
||||||||||||||||||
Unrecognized gain (loss) on derivatives:
|
||||||||||||||||||||||||
Net change from periodic revaluation
|
664
|
(1,965
|
)
|
-
|
-
|
664
|
(1,965
|
)
|
||||||||||||||||
Net amount reclassified to earnings
|
581
|
1,212
|
-
|
-
|
581
|
1,212
|
||||||||||||||||||
Net change in unrecognized gain (loss) on
|
||||||||||||||||||||||||
derivatives
|
1,245
|
(753
|
)
|
-
|
-
|
1,245
|
(753
|
)
|
||||||||||||||||
Other comprehensive income (loss), net of tax
|
10,404
|
289
|
(9
|
)
|
120
|
10,395
|
409
|
|||||||||||||||||
Comprehensive income (loss)
|
$
|
33,544
|
$
|
19,330
|
$
|
65
|
$
|
496
|
$
|
33,609
|
$
|
19,826
|
Nine Months Ended June 30,
|
||||||||||||||||||||||||
Matthews
|
Noncontrolling Interest
|
Total
|
||||||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||||
Net income (loss):
|
$
|
46,475
|
$
|
37,820
|
$
|
(189
|
)
|
$
|
286
|
$
|
46,286
|
$
|
38,106
|
|||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||
Foreign currency translation adjustment
|
(59,647
|
)
|
3,246
|
(80
|
)
|
66
|
(59,727
|
)
|
3,312
|
|||||||||||||||
Pension plans and other postretirement
benefits
|
2,766
|
1,622
|
-
|
-
|
2,766
|
1,622
|
||||||||||||||||||
Unrecognized gain (loss) on derivatives:
|
||||||||||||||||||||||||
Net change from periodic revaluation
|
(2,548
|
)
|
(2,437
|
)
|
-
|
-
|
(2,548
|
)
|
(2,437
|
)
|
||||||||||||||
Net amount reclassified to earnings
|
1,846
|
2,511
|
-
|
-
|
1,846
|
2,511
|
||||||||||||||||||
Net change in unrecognized gain (loss) on
|
||||||||||||||||||||||||
derivatives
|
(702
|
)
|
74
|
-
|
-
|
(702
|
)
|
74
|
||||||||||||||||
Other comprehensive income (loss), net of tax
|
(57,583
|
)
|
4,942
|
(80
|
)
|
66
|
(57,663
|
)
|
5,008
|
|||||||||||||||
Comprehensive income (loss)
|
$
|
(11,108
|
)
|
$
|
42,762
|
$
|
(269
|
)
|
$
|
352
|
$
|
(11,377
|
)
|
$
|
43,114
|
Shareholders' Equity
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
Non-
|
||||||||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
controlling
|
|||||||||||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Stock
|
interests
|
Total
|
||||||||||||||||||||||
Balance,
September 30, 2014
|
$
|
36,334
|
$
|
113,225
|
$
|
798,353
|
$
|
(66,817
|
)
|
$
|
(109,950
|
)
|
$
|
4,061
|
$
|
775,206
|
||||||||||||
Net income
|
-
|
-
|
46,475
|
-
|
-
|
(189
|
)
|
46,286
|
||||||||||||||||||||
Minimum pension liability
|
-
|
-
|
-
|
2,766
|
-
|
-
|
2,766
|
|||||||||||||||||||||
Translation adjustment
|
-
|
-
|
-
|
(59,647
|
)
|
-
|
(80
|
)
|
(59,727
|
)
|
||||||||||||||||||
Fair value of derivatives
|
-
|
-
|
-
|
(702
|
)
|
-
|
-
|
(702
|
)
|
|||||||||||||||||||
Total comprehensive income
|
(11,377
|
)
|
||||||||||||||||||||||||||
Stock-based compensation
|
-
|
6,838
|
-
|
-
|
-
|
-
|
6,838
|
|||||||||||||||||||||
Purchase of 212,783
shares of treasury stock |
-
|
-
|
-
|
-
|
(9,897
|
)
|
-
|
(9,897
|
)
|
|||||||||||||||||||
Issuance of 332,183
shares of treasury stock
|
-
|
(6,919
|
)
|
-
|
-
|
10,680
|
-
|
3,761
|
||||||||||||||||||||
Cancellations of 34,789
shares of treasury stock
|
-
|
1,284
|
-
|
-
|
(1,284
|
)
|
-
|
-
|
||||||||||||||||||||
Dividends, $.39 per share
|
-
|
-
|
(12,914
|
)
|
-
|
-
|
-
|
(12,914
|
)
|
|||||||||||||||||||
Distributions to
noncontrolling interests |
-
|
-
|
-
|
-
|
-
|
(95
|
)
|
(95
|
)
|
|||||||||||||||||||
Balance, June 30, 2015
|
$
|
36,334
|
$
|
114,428
|
$
|
831,914
|
$
|
(124,400
|
)
|
$
|
(110,451
|
)
|
$
|
3,697
|
$
|
751,522
|
Shareholders' Equity
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Other
|
Non-
|
||||||||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
controlling
|
|||||||||||||||||||||||
Stock
|
Capital
|
Earnings
|
Income (Loss)
|
Stock
|
interests
|
Total
|
||||||||||||||||||||||
Balance,
September 30, 2013
|
$
|
36,334
|
$
|
47,315
|
$
|
769,124
|
$
|
(26,940
|
)
|
$
|
(283,006
|
)
|
$
|
3,465
|
$
|
546,292
|
||||||||||||
Net income
|
-
|
-
|
37,820
|
-
|
-
|
286
|
38,106
|
|||||||||||||||||||||
Minimum pension liability
|
-
|
-
|
-
|
1,622
|
-
|
-
|
1,622
|
|||||||||||||||||||||
Translation adjustment
|
-
|
-
|
-
|
3,246
|
-
|
66
|
3,312
|
|||||||||||||||||||||
Fair value of derivatives
|
-
|
-
|
-
|
74
|
-
|
-
|
74
|
|||||||||||||||||||||
Total comprehensive income
|
43,114
|
|||||||||||||||||||||||||||
Stock-based compensation
|
-
|
4,906
|
-
|
-
|
-
|
-
|
4,906
|
|||||||||||||||||||||
Purchase of 112,863 shares
of treasury stock
|
-
|
-
|
-
|
-
|
(4,639
|
)
|
-
|
(4,639
|
)
|
|||||||||||||||||||
Issuance of 218,578 shares
of treasury stock
|
-
|
(6,796
|
)
|
-
|
-
|
8,785
|
-
|
1,989
|
||||||||||||||||||||
Cancellations of 77,597
shares of treasury stock
|
-
|
3,156
|
-
|
-
|
(3,156
|
)
|
-
|
-
|
||||||||||||||||||||
Dividends, $.33 per share
|
-
|
-
|
(9,118
|
)
|
-
|
-
|
-
|
(9,118
|
)
|
|||||||||||||||||||
Distributions to
noncontrolling interests |
-
|
-
|
-
|
-
|
-
|
(165
|
)
|
(165
|
)
|
|||||||||||||||||||
Balance, June 30, 2014
|
$
|
36,334
|
$
|
48,581
|
$
|
797,826
|
$
|
(21,998
|
)
|
$
|
(282,016
|
)
|
$
|
3,652
|
$
|
582,379
|
Nine Months Ended
|
||||||||
June 30,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
46,286
|
$
|
38,106
|
||||
Adjustments to reconcile net income to net cash
provided by operating activities:
|
||||||||
Depreciation and amortization
|
47,071
|
28,020
|
||||||
Stock-based compensation expense
|
6,838
|
4,906
|
||||||
Change in deferred taxes
|
(12,528
|
)
|
(751
|
)
|
||||
Gain on sale of assets
|
(153
|
)
|
(571
|
)
|
||||
Unrealized gain on investments
|
(617
|
)
|
(1,283
|
)
|
||||
Trade name write-offs
|
4,842
|
-
|
||||||
Changes in working capital items
|
22,242
|
(10,987
|
)
|
|||||
Decrease (increase) in other assets
|
2,792
|
(1,835
|
)
|
|||||
Decrease in other liabilities
|
(14,416
|
)
|
(1,125
|
)
|
||||
Increase in pension and postretirement benefits
|
6,199
|
6,190
|
||||||
Other, net
|
(6,217
|
)
|
1,745
|
|||||
Net cash provided by operating activities
|
102,339
|
62,415
|
||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(34,665
|
)
|
(18,754
|
)
|
||||
Acquisitions, net of cash acquired
|
(1,703
|
)
|
-
|
|||||
Proceeds from sale of assets
|
912
|
45
|
||||||
Proceeds from sale of subsidiary
|
10,418
|
-
|
||||||
Restricted cash
|
(12,925
|
)
|
-
|
|||||
Net cash used in investing activities
|
(37,963
|
)
|
(18,709
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from long-term debt
|
47,421
|
20,352
|
||||||
Payments on long-term debt
|
(82,325
|
)
|
(28,479
|
)
|
||||
Payments on contingent consideration
|
-
|
(3,703
|
)
|
|||||
Proceeds from the sale of treasury stock
|
3,907
|
2,045
|
||||||
Purchases of treasury stock
|
(9,897
|
)
|
(4,639
|
)
|
||||
Dividends
|
(12,914
|
)
|
(9,118
|
)
|
||||
Distributions to noncontrolling interests
|
(95
|
)
|
(165
|
)
|
||||
Net cash used in financing activities
|
(53,903
|
)
|
(23,707
|
)
|
||||
Effect of exchange rate changes on cash
|
(3,688
|
)
|
526
|
|||||
Net change in cash and cash equivalents
|
$
|
6,785
|
$
|
20,525
|
||||
Non-cash investing and financing activities:
|
||||||||
Acquisition of equipment under capital lease
|
-
|
$
|
949
|
Three months ended
June 30, 2014
|
Nine months ended
June 30, 2014
|
|||||||||||||||||||||||
Previously Reported
|
Adjustment
|
As Adjusted
|
Previously Reported
|
Adjustment
|
As Adjusted
|
|||||||||||||||||||
Consolidated Statements of Income
|
||||||||||||||||||||||||
Other income (deductions), net
|
$
|
(897
|
)
|
$
|
(2
|
)*
|
$
|
(899
|
)
|
$
|
(2,669
|
)
|
$
|
(104
|
)*
|
$
|
(2,773
|
)
|
||||||
Income before income taxes
|
28,966
|
(364
|
)
|
28,602
|
58,854
|
(1,132
|
)
|
57,722
|
||||||||||||||||
Income taxes
|
(9,327
|
)
|
142
|
(9,185
|
)
|
(20,058
|
)
|
442
|
(19,616
|
)
|
||||||||||||||
Net income
|
19,639
|
(222
|
)
|
19,417
|
38,796
|
(690
|
)
|
38,106
|
||||||||||||||||
Net income attributable to Matthews shareholders
|
19,263
|
(222
|
)
|
19,041
|
38,510
|
(690
|
)
|
37,820
|
||||||||||||||||
Comprehensive income | 20,048 | (222 | ) | 19,826 | 43,804 | (690 | ) | 43,114 | ||||||||||||||||
Earnings per share:
|
||||||||||||||||||||||||
Basic
|
0.70
|
-
|
|
0.70
|
1.41
|
(0.03
|
)
|
1.38
|
||||||||||||||||
Diluted
|
0.70
|
(0.01
|
)
|
0.69
|
1.40
|
(0.03
|
)
|
1.37
|
Nine months ended
June 30, 2014
|
||||||||||||
Previously Reported
|
Adjustment
|
As Adjusted
|
||||||||||
Consolidated Statements of Cash Flows
|
||||||||||||
Net income
|
$
|
38,796
|
$
|
(690
|
)
|
38,106
|
||||||
Changes in deferred taxes
|
(309
|
)
|
(442
|
)
|
(751
|
)
|
||||||
Net cash provided by operating activities
|
63,547
|
(1,132
|
)
|
62,415
|
||||||||
Net change in cash and cash equivalents
|
21,657
|
(1,132
|
)
|
20,525
|
June 30, 2015
|
September 30, 2014
|
|||||||||||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||
Derivatives (1)
|
-
|
$
|
622
|
-
|
$
|
622
|
-
|
$
|
2,457
|
-
|
$
|
2,457
|
||||||||||||||||||||
Trading
securities |
$
|
19,438
|
-
|
-
|
19,438
|
$
|
19,038
|
-
|
-
|
$
|
19,038
|
|||||||||||||||||||||
Total assets at
fair value |
$
|
19,438
|
$
|
622
|
-
|
$
|
20,060
|
$
|
19,038
|
$
|
2,457
|
-
|
$
|
21,495
|
||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||||||||||
Derivatives (1)
|
-
|
$
|
1,444
|
-
|
$
|
1,444
|
-
|
$
|
2,127
|
-
|
$
|
2,127
|
||||||||||||||||||||
Total liabilities
at fair value |
-
|
$
|
1,444
|
-
|
$
|
1,444
|
-
|
$
|
2,127
|
-
|
$
|
2,127
|
||||||||||||||||||||
(1) Interest rate swaps are valued based on observable market swap rates.
|
June 30, 2015
|
September 30, 2014
|
|||||||
Raw materials
|
$
|
44,836
|
$
|
46,152
|
||||
Work in process
|
34,006
|
38,631
|
||||||
Finished goods
|
64,069
|
68,059
|
||||||
$
|
142,911
|
$
|
152,842
|
Effective Date
|
Amount
|
Fixed Interest Rate
|
Interest Rate Spread at June 30, 2015
|
Maturity Date
|
October 2011
|
$25,000
|
1.67%
|
1.75%
|
October 2015
|
June 2012
|
$40,000
|
1.88%
|
1.75%
|
June 2022
|
August 2012
|
$35,000
|
1.74%
|
1.75%
|
June 2022
|
September 2012
|
$25,000
|
3.03%
|
1.75%
|
December 2015
|
September 2012
|
$25,000
|
1.24%
|
1.75%
|
March 2017
|
November 2012
|
$25,000
|
1.33%
|
1.75%
|
November 2015
|
May 2014
|
$25,000
|
1.35%
|
1.75%
|
May 2018
|
November 2014
|
$25,000
|
1.26%
|
1.75%
|
June 2018
|
March 2015
|
$25,000
|
1.49%
|
1.75%
|
March 2019
|
Derivatives
|
June 30, 2015
|
September 30, 2014
|
||||||
Current assets:
|
||||||||
Other current assets
|
$
|
89
|
$
|
324
|
||||
Long-term assets:
|
||||||||
Other assets
|
534
|
2,133
|
||||||
Current liabilities:
|
||||||||
Other current liabilities
|
(953
|
)
|
(1,808
|
)
|
||||
Long-term liabilities:
|
||||||||
Other liabilities
|
(492
|
)
|
(319
|
)
|
||||
Total derivatives
|
$
|
(822
|
)
|
$
|
330
|
|||
|
|||||||||||||||||
Derivatives in
|
Location of Loss
|
Amount of
|
Amount of
|
||||||||||||||
Cash Flow
|
Recognized in
|
Loss Recognized
|
Loss Recognized
|
||||||||||||||
Hedging
|
Income on
|
in Income
|
in Income
|
||||||||||||||
Relationships
|
Derivative
|
on Derivatives
|
on Derivatives
|
||||||||||||||
Three Months ended June 30,
|
Nine Months ended June 30,
|
||||||||||||||||
2015
|
2014
|
2015
|
2014
|
||||||||||||||
Interest rate swaps
|
Interest expense
|
|
$(953)
|
|
|
$(1,987)
|
|
|
$(3,026)
|
|
|
$(4,117)
|
|
||||
Location of
|
|||||||||||||||||
Gain or
|
|||||||||||||||||
(Loss)
|
Amount of Loss
|
||||||||||||||||
Reclassified
|
Reclassified from
|
||||||||||||||||
Amount of (Loss)
|
From
|
AOCI into
|
|||||||||||||||
Derivatives in
|
Recognized in
|
AOCI into
|
Income
|
||||||||||||||
Cash Flow
|
AOCI on Derivatives
|
Income
|
(Effective Portion*)
|
||||||||||||||
Hedging Relationships
|
June 30, 2015
|
June 30, 2014
|
(Effective Portion*)
|
June 30, 2015
|
June 30, 2014
|
||||||||||||
Interest rate swaps
|
|
$(2,548)
|
|
|
$(2,437)
|
|
Interest expense
|
|
$(1,846)
|
|
|
$(2,511)
|
|
||||
*There is no ineffective portion or amount excluded from effectiveness testing.
|
Weighted-
|
||||||||
average
|
||||||||
grant-date
|
||||||||
Shares
|
fair value
|
|||||||
Non-vested at September 30, 2014
|
575,150
|
$
|
33.83
|
|||||
Granted
|
215,370
|
40.07
|
||||||
Vested
|
(158,992
|
)
|
34.42
|
|||||
Expired or forfeited
|
(36,294
|
)
|
28.53
|
|||||
Non-vested at June 30, 2015
|
595,234
|
36.26
|
Weighted-
|
||||||||||||||||
Weighted-
|
average
|
Aggregate
|
||||||||||||||
average
|
remaining
|
intrinsic
|
||||||||||||||
Shares
|
exercise price
|
contractual term
|
value
|
|||||||||||||
Outstanding, September 30, 2014
|
512,322
|
|
$38.62
|
|||||||||||||
Exercised
|
(102,544
|
)
|
38.10
|
|||||||||||||
Expired or forfeited
|
(69,173
|
)
|
36.53
|
|||||||||||||
Outstanding, June 30, 2015
|
340,605
|
39.20
|
1.0
|
|
$4,747
|
|||||||||||
Exercisable, June 30, 2015
|
97,000
|
38.78
|
0.8
|
1,392
|
Weighted-average
|
||||||||
grant-date
|
||||||||
Shares
|
fair value
|
|||||||
Non-vested at September 30, 2014
|
312,442
|
|
$11.21
|
|||||
Expired or forfeited
|
(68,837
|
)
|
11.70
|
|||||
Non-vested at June 30, 2015
|
243,605
|
11.07
|
Nine Months Ended June 30,
|
||||||||
2015
|
2014
|
|||||||
Expected volatility
|
22.2
|
%
|
26.6
|
%
|
||||
Dividend yield
|
1.0
|
%
|
1.1
|
%
|
||||
Average risk-free interest rate
|
1.7
|
%
|
1.4
|
%
|
||||
Average expected term (years)
|
1.8
|
2.0
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net income attributable to Matthews shareholders
|
$
|
23,140
|
$
|
19,041
|
$
|
46,475
|
$
|
37,820
|
||||||||
Less: dividends and undistributed earnings
allocated to participating securities |
2
|
35
|
8
|
128
|
||||||||||||
Net income available to Matthews shareholders
|
$
|
23,138
|
$
|
19,006
|
$
|
46,467
|
$
|
37,692
|
||||||||
Weighted-average shares outstanding (in thousands):
|
||||||||||||||||
Basic shares
|
32,962
|
27,294
|
32,947
|
27,223
|
||||||||||||
Effect of dilutive securities
|
234
|
197
|
258
|
227
|
||||||||||||
Diluted shares
|
33,196
|
27,491
|
33,205
|
27,450
|
||||||||||||
Three months ended June 30,
|
||||||||||||||||
Pension
|
Other Postretirement
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Service cost
|
$
|
1,655
|
$
|
1,582
|
$
|
114
|
$
|
109
|
||||||||
Interest cost
|
2,145
|
2,213
|
221
|
230
|
||||||||||||
Expected return on plan assets
|
(2,470
|
)
|
(2,396
|
)
|
-
|
-
|
||||||||||
Amortization:
|
||||||||||||||||
Prior service cost
|
(45
|
)
|
(52
|
)
|
(49
|
)
|
(23
|
)
|
||||||||
Net actuarial loss (gain)
|
1,564
|
991
|
-
|
(49
|
)
|
|||||||||||
Net benefit cost
|
$
|
2,849
|
$
|
2,338
|
$
|
286
|
$
|
267
|
Nine months ended June 30,
|
||||||||||||||||
Pension
|
Other Postretirement
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Service cost
|
$
|
4,965
|
$
|
4,746
|
$
|
342
|
$
|
327
|
||||||||
Interest cost
|
6,435
|
6,639
|
663
|
690
|
||||||||||||
Expected return on plan assets
|
(7,410
|
)
|
(7,188
|
)
|
-
|
-
|
||||||||||
Amortization:
|
||||||||||||||||
Prior service cost
|
(135
|
)
|
(156
|
)
|
(147
|
)
|
(66
|
)
|
||||||||
Net actuarial loss (gain)
|
4,692
|
2,973
|
-
|
(147
|
)
|
|||||||||||
Net benefit cost
|
$
|
8,547
|
$
|
7,014
|
$
|
858
|
$
|
804
|
Contributions
|
Pension
|
Other Postretirement
|
||||||
Contributions during the nine months ended June 30, 2015:
|
||||||||
Supplemental retirement plan
|
$
|
543
|
$
|
-
|
||||
Other postretirement plan
|
-
|
1,019
|
||||||
Additional contributions expected in fiscal 2015:
|
||||||||
Supplemental retirement plan
|
190
|
-
|
||||||
Other postretirement plan
|
-
|
250
|
Post-retirement benefit plans
|
Currency translation adjustment
|
Derivatives
|
Total
|
||||||||||||||
Attributable to Matthews:
|
|||||||||||||||||
Balance, March 31, 2015 | $ | (37,761 | ) | $ | (95,297 | ) | $ | (1,746 | ) | $ | (134,804 | ) | |||||
OCI before reclassification
|
-
|
8,283
|
664
|
8,947
|
|||||||||||||
Amounts reclassified from AOCI
|
|
(a) |
876
|
-
|
(b) |
581
|
1,457
|
||||||||||
Net current-period OCI
|
876
|
8,283
|
1,245
|
10,404
|
|||||||||||||
Balance, June 30, 2015
|
$
|
(36,885
|
)
|
$
|
(87,014
|
)
|
$
|
(501
|
)
|
$
|
(124,400
|
)
|
|||||
Attributable to noncontrolling
interest:
|
|||||||||||||||||
Balance, March 31, 2015
|
-
|
$
|
445
|
-
|
$
|
445
|
|||||||||||
OCI before reclassification
|
-
|
(9
|
)
|
-
|
(9
|
)
|
|||||||||||
Net current-period OCI
|
-
|
(9
|
)
|
-
|
(9
|
)
|
|||||||||||
Balance, June 30, 2015
|
-
|
$
|
436
|
-
|
$
|
436
|
Post-retirement benefit plans
|
Currency translation adjustment
|
Derivatives
|
Total
|
||||||||||||||
Attributable to Matthews:
|
|||||||||||||||||
Balance, March 31, 2014 | $ | (29,043 | ) | $ | 6,483 | $ | 273 | $ | (22,287 | ) | |||||||
OCI before reclassification
|
-
|
477
|
(1,965
|
)
|
(1,488
|
)
|
|||||||||||
Amounts reclassified from AOCI
|
|
(a) |
565
|
-
|
(b) |
1,212
|
1,777
|
||||||||||
Net current-period OCI
|
565
|
477
|
(753
|
)
|
289
|
||||||||||||
Balance, June 30, 2014
|
$
|
(28,478
|
)
|
$
|
6,960
|
$
|
(480
|
)
|
$
|
(21,998
|
)
|
||||||
Attributable to noncontrolling interest:
|
|||||||||||||||||
Balance, March 31, 2014
|
-
|
$
|
347
|
-
|
$
|
347
|
|||||||||||
OCI before reclassification
|
-
|
120
|
-
|
120
|
|||||||||||||
Net current-period OCI
|
-
|
120
|
-
|
120
|
|||||||||||||
Balance, June 30, 2014
|
-
|
$
|
467
|
-
|
$
|
467
|
(a) | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see note 8). |
(b) | Amounts were included in interest expense in the periods the hedged item affected earnings (see note 5). |
Post-retirement benefit plans
|
Currency translation adjustment
|
Derivatives
|
Total
|
||||||||||||||
Attributable to Matthews:
|
|||||||||||||||||
Balance, September 30, 2014 | $ | (39,651 | ) | $ | (27,367 | ) | $ | 201 | $ | (66,817 | ) | ||||||
OCI before reclassification
|
-
|
(59,647
|
)
|
(2,548
|
)
|
(62,195
|
)
|
||||||||||
Amounts reclassified from AOCI
|
|
(a) |
2,766
|
-
|
(b) |
1,846
|
4,612
|
||||||||||
Net current-period OCI
|
2,766
|
(59,647
|
)
|
(702
|
)
|
(57,583
|
)
|
||||||||||
Balance, June 30, 2015
|
$
|
(36,885
|
)
|
$
|
(87,014
|
)
|
$
|
(501
|
)
|
$
|
(124,400
|
)
|
|||||
Attributable to noncontrolling interest:
|
|||||||||||||||||
Balance, September 30, 2014
|
-
|
$
|
516
|
-
|
$
|
516
|
|||||||||||
OCI before reclassification
|
-
|
(80
|
)
|
-
|
(80
|
)
|
|||||||||||
Net current-period OCI
|
-
|
(80
|
)
|
-
|
(80
|
)
|
|||||||||||
Balance, June 30, 2015
|
-
|
$
|
436
|
-
|
$
|
436
|
Post-retirement benefit plans
|
Currency translation adjustment
|
Derivatives
|
Total
|
||||||||||||||
Attributable to Matthews:
|
|||||||||||||||||
Balance, September 30, 2013 | $ | (30,100 | ) | $ | 3,714 | $ | (554 | ) | $ | (26,940 | ) | ||||||
OCI before reclassification
|
-
|
3,246
|
(2,437
|
)
|
809
|
||||||||||||
Amounts reclassified from AOCI
|
|
(a) |
1,622
|
-
|
(b) |
2,511
|
4,133
|
||||||||||
Net current-period OCI
|
1,622
|
3,246
|
74
|
4,942
|
|||||||||||||
Balance, June 30, 2014
|
$
|
(28,478
|
)
|
$
|
6,960
|
$
|
(480
|
)
|
$
|
(21,998
|
)
|
||||||
Attributable to noncontrolling interest:
|
|||||||||||||||||
Balance, September 30, 2013
|
-
|
$
|
401
|
-
|
$
|
401
|
|||||||||||
OCI before reclassification
|
-
|
66
|
-
|
66
|
|||||||||||||
Net current-period OCI
|
-
|
66
|
-
|
66
|
|||||||||||||
Balance, June 30, 2014
|
-
|
$
|
467
|
-
|
$
|
467
|
(a) | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see note 8). |
(b) | Amounts were included in interest expense in the periods the hedged item affected earnings (see note 5). |
Amount reclassified from AOCI
|
|||||||||
Details about AOCI Components
|
Three months ended June 30, 2015
|
Nine months ended June 30, 2015
|
Affected line item in the Statement of income
|
||||||
Postretirement benefit plans
|
|||||||||
Prior service (cost) credit
|
$
|
94
|
(a) |
$
|
282
|
||||
Actuarial losses
|
(1,564
|
)
|
(a) |
(4,692
|
)
|
||||
(1,470
|
)
|
(b) |
(4,410
|
)
|
Total before tax
|
||||
(594
|
)
|
(1,644
|
)
|
Tax provision (benefit)
|
|||||
$
|
(876
|
)
|
$
|
(2,766
|
)
|
Net of tax
|
|||
Derivatives
|
|||||||||
Interest rate swap contracts
|
$
|
(953
|
)
|
$
|
(3,026
|
)
|
Interest expense
|
||
(953
|
)
|
(b) |
(3,026
|
)
|
Total before tax
|
||||
(372
|
)
|
(1,180
|
)
|
Tax provision (benefit)
|
|||||
$
|
(581
|
)
|
$
|
(1,846
|
)
|
Net of tax
|
Amount reclassified from AOCI
|
|||||||||
Details about AOCI Components
|
Three months ended June 30, 2014
|
Nine months ended June 30, 2014
|
Affected line item in the Statement of income
|
||||||
Postretirement benefit plans
|
|||||||||
Prior service (cost) credit
|
$
|
75
|
(a) |
$
|
222
|
||||
Actuarial losses
|
(942
|
)
|
(a) |
(2,826
|
)
|
||||
(867
|
)
|
(b) |
(2,604
|
)
|
Total before tax
|
||||
(302
|
)
|
(982
|
)
|
Tax provision (benefit)
|
|||||
$
|
(565
|
)
|
$
|
(1,622
|
)
|
Net of tax
|
|||
Derivatives
|
|||||||||
Interest rate swap contracts
|
$
|
(1,987
|
)
|
$
|
(4,117
|
)
|
Interest expense
|
||
(1,987
|
)
|
(b) |
(4,117
|
)
|
Total before tax
|
||||
(775
|
)
|
(1,606
|
)
|
Tax provision (benefit)
|
|||||
$
|
(1,212
|
)
|
$
|
(2,511
|
)
|
Net of tax
|
(a) | Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 8. |
(b) | For pre-tax items, positive amounts represent income and negative amounts represent expense. |
United States – Federal
|
2012 and forward
|
United States – State
|
2010 and forward
|