| Change in AOCI by Component, Net of Tax |
The changes in AOCI by component, net of tax, for the years ended September 30, 2018, 2017 and 2016 were as follows:
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Postretirement Benefit Plans |
|
Currency Translation Adjustment |
|
Derivatives |
|
Total |
Attributable to Matthews: |
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|
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|
|
|
|
Balance, September 30, 2015 |
|
$ |
(43,474 |
) |
|
$ |
(104,604 |
) |
|
$ |
(2,248 |
) |
|
$ |
(150,326 |
) |
OCI before reclassification |
|
(16,901 |
) |
|
(17,655 |
) |
|
(3,230 |
) |
|
(37,786 |
) |
Amounts reclassified from AOCI |
(a) |
4,325 |
|
|
— |
|
(b) |
1,919 |
|
|
6,244 |
|
Net current-period OCI |
|
(12,576 |
) |
|
(17,655 |
) |
|
(1,311 |
) |
|
(31,542 |
) |
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 |
(a) |
5,891 |
|
|
— |
|
(b) |
(1,069 |
) |
|
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 |
(a) |
5,047 |
|
|
— |
|
(b) |
(1,042 |
) |
|
4,005 |
|
Net current-period OCI |
|
15,631 |
|
|
(22,053 |
) |
|
5,053 |
|
|
(1,369 |
) |
Reclassification of AOCI tax effects |
(c) |
(9,884 |
) |
|
— |
|
(c) |
1,070 |
|
|
(8,814 |
) |
Balance, September 30, 2018 |
|
$ |
(37,876 |
) |
|
$ |
(134,960 |
) |
|
$ |
8,538 |
|
|
$ |
(164,298 |
) |
|
|
|
|
|
|
|
|
|
Attributable to noncontrolling interest: |
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 30, 2015 |
|
$ |
— |
|
|
$ |
366 |
|
|
$ |
— |
|
|
$ |
366 |
|
OCI before reclassification |
|
— |
|
|
(89 |
) |
|
— |
|
|
(89 |
) |
Net current-period OCI |
|
— |
|
|
(89 |
) |
|
— |
|
|
(89 |
) |
Balance, September 30, 2016 |
|
$ |
— |
|
|
$ |
277 |
|
|
$ |
— |
|
|
$ |
277 |
|
OCI before reclassification |
|
— |
|
|
119 |
|
|
— |
|
|
119 |
|
Net current-period OCI |
|
— |
|
|
119 |
|
|
— |
|
|
119 |
|
Balance, September 30, 2017 |
|
$ |
— |
|
|
$ |
396 |
|
|
$ |
— |
|
|
$ |
277 |
|
OCI before reclassification |
|
— |
|
|
71 |
|
|
— |
|
|
71 |
|
Net current-period OCI |
|
— |
|
|
71 |
|
|
— |
|
|
71 |
|
Balance, September 30, 2018 |
|
$ |
— |
|
|
$ |
467 |
|
|
$ |
— |
|
|
$ |
348 |
|
|
|
(a) |
Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). |
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|
(b) |
Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 8). |
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(c) |
Amounts were reclassified from AOCI to retained earnings through adoption of ASU 2018-02 (see Note 3). |
Accumulated other comprehensive loss at September 30, 2018 and 2017 consisted of the following:
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2018 |
|
2017 |
Cumulative foreign currency translation |
$ |
(134,960 |
) |
|
$ |
(112,907 |
) |
Fair value of derivatives, net of tax of $2,771 and $1,544, respectively |
8,538 |
|
|
2,415 |
|
Minimum pension liabilities, net of tax of $12,076 and $27,114, respectively |
(37,876 |
) |
|
(43,623 |
) |
|
$ |
(164,298 |
) |
|
$ |
(154,115 |
) |
|
| Reclassifications out of AOCI |
Reclassifications out of AOCI for the years ended September 30, 2018, 2017 and 2016 were as follows:
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Details about AOCI Components
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|
September 30, 2018 |
|
September 30, 2017 |
|
September 30, 2016 |
|
Affected line item in the Statement of Income |
Postretirement benefit plans |
|
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|
Prior service (cost) credit |
(a) |
$ |
333 |
|
|
$ |
376 |
|
|
$ |
378 |
|
|
|
Actuarial losses |
(a) |
(7,018 |
) |
|
(10,034 |
) |
|
(7,468 |
) |
|
|
|
(b) |
(6,685 |
) |
|
(9,658 |
) |
|
(7,090 |
) |
|
Income before income tax |
|
|
(1,638 |
) |
|
(3,767 |
) |
|
(2,765 |
) |
|
Income taxes |
|
|
$ |
(5,047 |
) |
|
$ |
(5,891 |
) |
|
$ |
(4,325 |
) |
|
Net income |
Derivatives |
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|
|
|
|
|
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|
Interest rate swap contracts |
|
$ |
1,380 |
|
|
$ |
1,752 |
|
|
$ |
(3,146 |
) |
|
Interest expense |
|
(b) |
1,380 |
|
|
1,752 |
|
|
(3,146 |
) |
|
Income before income tax |
|
|
338 |
|
|
683 |
|
|
(1,227 |
) |
|
Income taxes |
|
|
$ |
1,042 |
|
|
$ |
1,069 |
|
|
$ |
(1,919 |
) |
|
Net income |
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(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 12. |
(b)For pre-tax items, positive amounts represent income and negative amounts represent expense.
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