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Basis of Presentation | 6 Months Ended
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Mar. 31, 2016
Basis of Presentation [Abstract] |
Basis of Presentation | Note 2. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information for commercial and industrial companies and the instructions to Form 10‑Q and Rule 10‑01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the six months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10‑K for the year ended September 30, 2015. The consolidated financial statements include all domestic and foreign subsidiaries in which the Company maintains an ownership interest and has operating control. All intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements: Issued In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which provides new guidance intended to improve the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2019. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which provides new guidance on how an entity should account for leases and recognize associated lease assets and liabilities. The ASU requires lessees to recognize assets and liabilities that arise from financing and operating leases on the consolidated balance sheet. The implementation of this standard will require application of the new guidance at the beginning of the earliest comparative period presented, once adopted. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2020, and does allow for early adoption. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principle versus Agent Considerations (Reporting Revenue Gross versus Net), which coincides with ASU 2014-09 and provides additional guidance in the determination of principles versus agents. The Company is in the process of assessing the impact this ASU, along with ASU 2014-09, will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which provides new guidance, intended to simplify the accounting surrounding share-based compensation. This ASU is effective for the Company beginning in interim periods starting in fiscal year 2018. The Company is in the process of assessing the impact this ASU will have on its consolidated financial statements. Adopted In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Income Taxes – Topic 740), which provides new guidance intended to simplify the presentation of deferred income taxes in a classified statement of financial position. The new deferred income tax guidance requires that all deferred income tax balances be classified as non-current assets and liabilities on the classified statement of financial position. The Company adopted this standard in the quarter ended December 31, 2015, and retrospectively adjusted the prior period presentation to conform to the new standard. The adjustment totaled $19,753 in current deferred tax assets and $340 in current deferred tax liabilities being reclassified as non-current deferred tax assets and liabilities, respectively, in the September 30, 2015 Consolidated Balance Sheet. In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting, which provides new guidance, intended to simplify equity method accounting. Investments that qualify for equity method accounting will no longer apply the equity method retrospectively to previously recorded cost investments. The adoption of this ASU, in the second quarter, had no material impact on the Company's consolidated financial statements. Reclassification and Revision: Amounts presented for the three and six month periods ended March 31, 2015 have been revised to reflect additional expense related to a theft of funds by an employee that had occurred over a multi-year period. The following table reconciles the effect of the adjustments to the previously reported Consolidated Statement of Income for the three and six month periods ended March 31, 2015:
|  | Three months ended March 31, 2015 |  |  | Six months ended March 31, 2015 |
|  | Previously Reported |  |  | Adjustment |  |  | As Adjusted |  |  | Previously Reported |  |  | Adjustment |  |  | As Adjusted |
Consolidated Statements of Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income (deductions), net |  | $ | (1,238 | ) |  | $ | (883 | ) |  | $ | (2,121 | ) |  | $ | (1,673 | ) |  | $ | (1,752 | ) |  | $ | (3,425 | )
Income before income taxes |  |  | 13,805 |  |  |  | (883 | ) |  |  | 12,922 |  |  |  | 33,893 |  |  |  | (1,752 | ) |  |  | 32,141 |
Income taxes |  |  | (4,377 | ) |  |  | 282 |  |  |  | (4,095 | ) |  |  | (9,629 | ) |  |  | 560 |  |  |  | (9,069 | )
Net income |  |  | 9,428 |  |  |  | (601 | ) |  |  | 8,827 |  |  |  | 24,264 |  |  |  | (1,192 | ) |  |  | 23,072 |
Net income attributable to Matthews shareholders |  |  | 9,576 |  |  |  | (601 | ) |  |  | 8,975 |  |  |  | 24,527 |  |  |  | (1,192 | ) |  |  | 23,335 |
Comprehensive loss |  |  | (32,452 | ) |  |  | (601 | ) |  |  | (33,053 | ) |  |  | (43,794 | ) |  |  | (1,192 | ) |  |  | (44,986 | )
Earnings per share attributable to Matthews shareholders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 0.29 |  |  |  | (0.02 | ) |  |  | 0.27 |  |  |  | 0.74 |  |  |  | (0.03 | ) |  |  | 0.71 |
Diluted |  |  | 0.29 |  |  |  | (0.02 | ) |  |  | 0.27 |  |  |  | 0.74 |  |  |  | (0.04 | ) |  |  | 0.70 |
The following table reconciles the effect of the adjustments to the previously reported Consolidated Statement of Cash Flows for the six month period ended March 31, 2015:
|  | Six months ended March 31, 2015 |
|  | Previously Reported |  |  | Adjustment |  |  | As Adjusted |
Consolidated Statement of Cash Flows |  |  |  |  |  |  |  |  |
Net income |  | $ | 24,264 |  |  | $ | (1,192 | ) |  |  | 23,072 |
Changes in working capital items |  |  | 10,175 |  |  |  | (560 | ) |  |  | 9,615 |
Net cash provided by operating activities |  |  | 54,116 |  |  |  | (1,752 | ) |  |  | 52,364 |
Net change in cash and cash equivalents |  |  | (12,529 | ) |  |  | (1,752 | ) |  |  | (14,281 | )
There was no impact to the Consolidated Statement of Comprehensive Income or the Consolidated Statement of Shareholders' Equity for any of the respective periods other than the impact on Net Income.

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