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

Annual report pursuant to Section 13 and 15(d)

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)

12 Months Ended

Sep. 30, 2012

Long-term debt at September 30, 2012 and 2011 consisted of the following:

	2012			2011
Revolving credit facilities	$	281,323		$	281,593
Notes payable to banks		26,626			31,193
Short-term borrowings		4,322			661
Capital lease obligations		7,443			3,737
		319,714			317,184
Less current maturities		(21,566	)		(18,014	)
	$	298,148		$	299,170

Interest Rate Swaps

The Company has entered into the following interest rate swaps:

Effective Date	Amount	Fixed Interest Rate	Interest Rate Spread at September 30, 2012	Maturity Date
May 2011	$25,000	1.37%	1.25%	May 2014
October 2011	25,000	1.67%	1.25%	October 2015
November 2011	25,000	2.13%	1.25%	November 2014
March 2012	25,000	2.44%	1.25%	March 2015
June 2012	40,000	1.88%	1.25%	June 2022
August 2012	35,000	1.74%	1.25%	June 2022
September 2012	25,000	3.03%	1.25%	December 2015
September 2012	25,000	1.24%	1.25%	March 2017
November 2012	25,000	1.33%	1.25%	November 2015

Derivatives Designated as Hedging Instruments

At September 30, 2012 and 2011, the interest rate swap contracts were reflected as a liability on the balance sheets. The following derivatives are designated as hedging instruments:

Liability Derivatives
Balance Sheet Location:	2012		2011
Current liabilities:
Other current liabilities	$	2,851	$	2,061
Long-term liabilities:
Other liabilities		6,282		5,100
Total derivatives	$	9,133	$	7,161

Gain (Loss) Recognized on Derivatives

The loss recognized on derivatives was as follows:

	Location of	Amount of
Derivatives in	Loss	Loss
Cash Flow Hedging	Recognized in	Recognized in Income
Relationships	Income on Derivatives	on Derivatives
		2012	2011

Interest rate swaps	Interest expense	$(3,418)	$(2,600)

The Company recognized the following losses in accumulated other comprehensive loss ("AOCL"):


							Location of Gain	Amount of Loss
							or (Loss)	Reclassified from
Derivatives in	Amount of Loss						Reclassified from	AOCL
Cash Flow	Recognized in						AOCL	into Income
Hedging	AOCL on Derivatives						into Income	(Effective Portion*)
Relationships	2012			2011			(Effective Portion*)	2012			2011

Interest rate swaps	$	(3,288	)	$	(3,246	)	Interest expense	$	(2,085	)	$	(1,586	)

*There is no ineffective portion or amount excluded from effectiveness testing.

Aggregate Maturities of Long-Term Debt

Aggregate maturities of long-term debt, including short-term borrowings and capital leases, follows:

2013	$	21,566
2014		9,687
2015		1,841
2016		950
2017		282,027
Thereafter		3,643
	$	319,714

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References + Details