| Change in AOCI by Component, Net of Tax |
Accumulated other comprehensive loss at September 30, 2019 and 2018 consisted of the following:
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
Cumulative foreign currency translation |
$ |
(156,214 |
) |
|
$ |
(134,960 |
) |
Fair value of derivatives, net of tax of $131 and $2,771, respectively |
(404 |
) |
|
8,538 |
|
Minimum pension liabilities, net of tax of $23,195 and $12,076, respectively |
(71,743 |
) |
|
(37,876 |
) |
|
$ |
(228,361 |
) |
|
$ |
(164,298 |
) |
The changes in AOCI by component, net of tax, for the years ended September 30, 2019, 2018, and 2017 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postretirement Benefit Plans |
|
Currency Translation Adjustment |
|
Derivatives |
|
Total |
Attributable to Matthews: |
|
|
|
|
|
|
|
|
Balance, September 30, 2016 |
|
$ |
(56,050 |
) |
|
$ |
(122,259 |
) |
|
$ |
(3,559 |
) |
|
$ |
(181,868 |
) |
OCI before reclassification |
|
6,536 |
|
|
9,352 |
|
|
7,043 |
|
|
22,931 |
|
Amounts reclassified from AOCI |
|
5,891 |
|
(a) |
— |
|
|
(1,069 |
) |
(b) |
4,822 |
|
Net current-period OCI |
|
12,427 |
|
|
9,352 |
|
|
5,974 |
|
|
27,753 |
|
Balance, September 30, 2017 |
|
$ |
(43,623 |
) |
|
$ |
(112,907 |
) |
|
$ |
2,415 |
|
|
$ |
(154,115 |
) |
OCI before reclassification |
|
10,584 |
|
|
(22,053 |
) |
|
6,095 |
|
|
(5,374 |
) |
Amounts reclassified from AOCI |
|
5,047 |
|
(a) |
— |
|
|
(1,042 |
) |
(b) |
4,005 |
|
Net current-period OCI |
|
15,631 |
|
|
(22,053 |
) |
|
5,053 |
|
|
(1,369 |
) |
Reclassification of AOCI tax effects |
|
(9,884 |
) |
(c) |
— |
|
|
1,070 |
|
(c) |
(8,814 |
) |
Balance, September 30, 2018 |
|
$ |
(37,876 |
) |
|
$ |
(134,960 |
) |
|
$ |
8,538 |
|
|
$ |
(164,298 |
) |
OCI before reclassification |
|
(36,784 |
) |
|
(21,254 |
) |
|
(6,540 |
) |
|
(64,578 |
) |
Amounts reclassified from AOCI |
|
2,917 |
|
(a) |
— |
|
|
(2,402 |
) |
(b) |
515 |
|
Net current-period OCI |
|
(33,867 |
) |
|
(21,254 |
) |
|
(8,942 |
) |
|
(64,063 |
) |
Balance, September 30, 2019 |
|
$ |
(71,743 |
) |
|
$ |
(156,214 |
) |
|
$ |
(404 |
) |
|
$ |
(228,361 |
) |
|
|
|
|
|
|
|
|
|
Attributable to noncontrolling interest: |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 30, 2016 |
|
$ |
— |
|
|
$ |
277 |
|
|
$ |
— |
|
|
$ |
277 |
|
OCI before reclassification |
|
— |
|
|
119 |
|
|
— |
|
|
119 |
|
Net current-period OCI |
|
— |
|
|
119 |
|
|
— |
|
|
119 |
|
Balance, September 30, 2017 |
|
$ |
— |
|
|
$ |
396 |
|
|
$ |
— |
|
|
$ |
396 |
|
OCI before reclassification |
|
— |
|
|
71 |
|
|
— |
|
|
71 |
|
Net current-period OCI |
|
— |
|
|
71 |
|
|
— |
|
|
71 |
|
Balance, September 30, 2018 |
|
$ |
— |
|
|
$ |
467 |
|
|
$ |
— |
|
|
$ |
467 |
|
OCI before reclassification |
|
— |
|
|
(92 |
) |
|
— |
|
|
(92 |
) |
Net current-period OCI |
|
— |
|
|
(92 |
) |
|
— |
|
|
(92 |
) |
Balance, September 30, 2019 |
|
$ |
— |
|
|
$ |
375 |
|
|
$ |
— |
|
|
$ |
375 |
|
|
|
(a) |
Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 13). |
|
|
(b) |
Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 9). |
(c)
Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) (see Note 3).
|
| Reclassifications out of AOCI |
Reclassifications out of AOCI for the years ended September 30, 2019, 2018 and 2017 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details about AOCI Components
|
|
September 30, 2019 |
|
September 30, 2018 |
|
September 30, 2017 |
|
Affected line item in the Statement of Income |
Postretirement benefit plans |
|
|
|
|
|
|
|
|
Prior service (cost) credit |
|
$ |
381 |
|
(a) |
$ |
333 |
|
|
$ |
376 |
|
|
|
Actuarial losses |
|
(4,245 |
) |
(a) |
(7,018 |
) |
|
(10,034 |
) |
|
|
|
|
(3,864 |
) |
(b) |
(6,685 |
) |
|
(9,658 |
) |
|
Income before income tax |
|
|
947 |
|
|
1,638 |
|
|
3,767 |
|
|
Income taxes |
|
|
$ |
(2,917 |
) |
|
$ |
(5,047 |
) |
|
$ |
(5,891 |
) |
|
Net income |
Derivatives |
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap contracts |
|
$ |
3,181 |
|
|
$ |
1,380 |
|
|
$ |
1,752 |
|
|
Interest expense |
|
|
3,181 |
|
(b) |
1,380 |
|
|
1,752 |
|
|
Income before income tax |
|
|
(779 |
) |
|
(338 |
) |
|
(683 |
) |
|
Income taxes |
|
|
$ |
2,402 |
|
|
$ |
1,042 |
|
|
$ |
1,069 |
|
|
Net income |
|
|
(a) |
Prior service cost 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. Actuarial losses are reported in other income (deductions), net. For additional information, see Note 13. |
(b)
For pre-tax items, positive amounts represent income and negative amounts represent expense.
|