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SEGMENT INFORMATION | 12 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION: The Company manages its businesses under three segments: Memorialization, Industrial Technologies and SGK Brand Solutions. Effective in the first quarter of fiscal 2022, the Company transferred its surfaces and engineered products businesses from the SGK Brand Solutions segment to the Industrial Technologies segment. This business segment change is consistent with internal management structure and reporting changes effective for fiscal 2022. Prior periods were revised to reflect retrospective application of this segment realignment. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment includes the design, manufacturing, service and distribution of high-tech custom energy storage solutions, product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries. The Company's primary measure of segment profitability is adjusted earnings before interest, income taxes, depreciation and amortization ("adjusted EBITDA"). Adjusted EBITDA is defined by the Company as earnings before interest, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of its operating results. These items include stock-based compensation, the non-service portion of pension and postretirement expense, acquisition costs, ERP integration costs, and strategic initiatives and other charges. This presentation is consistent with how the Company's chief operating decision maker (the “CODM”) evaluates the results of operations and makes strategic decisions about the business. For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss. In addition, the CODM manages and evaluates the operating performance of the segments, as described above, on a pre-corporate cost allocation basis. Accordingly, for segment reporting purposes, the Company does not allocate corporate costs to its reportable segments. Corporate costs include management and administrative support to the Company, which consists of certain aspects of the Company’s executive management, legal, compliance, human resources, information technology (including operational support) and finance departments. These costs are included within "Corporate and Non-Operating" in the following table to reconcile to consolidated adjusted EBITDA and are not considered a separate reportable segment. Management does not allocate non-operating items such as investment income, other income (deductions), net and noncontrolling interest to the segments. The accounting policies of the segments are the same as those described in Note 2 "Summary of Significant Accounting Policies". Intersegment sales are accounted for at negotiated prices. Segment assets include those assets that are used in the Company's operations within each segment. Assets classified under "Corporate and Non-Operating" principally consist of cash and cash equivalents, investments, deferred income taxes and corporate headquarters' assets. Long-lived assets include property, plant and equipment (net of accumulated depreciation), goodwill, and other intangible assets (net of accumulated amortization). Information about the Company's segments follows:
| Memorialization |  | Industrial Technologies |  | SGK Brand Solutions |  | Corporate and Non-Operating |  | Consolidated
Sales to external customers:
2022 | $ | 840,124 |  |  | $ | 335,523 |  |  | $ | 586,756 |  |  | $ | — |  |  | $ | 1,762,403 |
2021 | 769,016 |  |  | 284,495 |  |  | 617,519 |  |  | — |  |  | 1,671,030 |
2020 | 656,035 |  |  | 228,453 |  |  | 613,818 |  |  | — |  |  | 1,498,306 |
Intersegment sales:
2022 | — |  |  | 1,057 |  |  | 1,295 |  |  | — |  |  | 2,352 |
2021 | — |  |  | 2,146 |  |  | 2,376 |  |  | — |  |  | 4,522 |
2020 | 4 |  |  | 3,629 |  |  | 2,621 |  |  | — |  |  | 6,254 |
Depreciation and amortization:
2022 | 23,228 |  |  | 11,387 |  |  | 64,173 |  |  | 5,268 |  |  | 104,056 |
2021 | 23,043 |  |  | 11,427 |  |  | 93,665 |  |  | 5,377 |  |  | 133,512 |
2020 | 20,527 |  |  | 11,923 |  |  | 81,445 |  |  | 5,163 |  |  | 119,058 |
Adjusted EBITDA:
2022 | 151,849 |  |  | 56,762 |  |  | 60,120 |  |  | (58,323) |  |  | 210,408 |
2021 | 165,653 |  |  | 34,889 |  |  | 91,435 |  |  | (64,227) |  |  | 227,750 |
2020 | 146,285 |  |  | 23,055 |  |  | 90,342 |  |  | (56,602) |  |  | 203,080 |
Total assets:
2022 | 800,666 |  |  | 414,019 |  |  | 631,291 |  |  | 36,795 |  |  | 1,882,771 |
2021 | 807,215 |  |  | 285,710 |  |  | 874,001 |  |  | 65,152 |  |  | 2,032,078 |
2020 | 779,886 |  |  | 255,512 |  |  | 951,533 |  |  | 85,702 |  |  | 2,072,633 |
Capital expenditures:
2022 | 28,899 |  |  | 13,646 |  |  | 14,287 |  |  | 4,489 |  |  | 61,321 |
2021 | 11,969 |  |  | 8,620 |  |  | 11,775 |  |  | 1,949 |  |  | 34,313 |
2020 | 11,282 |  |  | 14,058 |  |  | 7,790 |  |  | 1,719 |  |  | 34,849 |
A reconciliation of adjusted EBITDA to net income follows:
|  | 2022 |  | 2021 |  | 2020
Total Adjusted EBITDA |  | $ | 210,408 |  |  | $ | 227,750 |  |  | $ | 203,080 |
RPA financing fees (1) |  | (1,046) |  |  | — |  |  | — |
Strategic initiatives and other charges (2)** |  | (37,431) |  |  | (29,539) |  |  | (40,686) |
Legal matter reserve (3) |  | — |  |  | — |  |  | (10,566) |
Non-recurring / incremental COVID-19 costs (4)*** |  | (2,985) |  |  | (5,312) |  |  | (3,908) |
Defined benefit plan termination related items (5) |  | 429 |  |  | — |  |  | — |
Asset write-downs, net (6) |  | (10,050) |  |  | — |  |  | — |
Goodwill write-downs (7) |  | (82,454) |  |  | — |  |  | (90,408) |
Gain on sale of ownership interests in subsidiaries (8) |  | — |  |  | — |  |  | 11,208 |
Joint Venture depreciation, amortization, interest expense and other charges (9) |  | — |  |  | — |  |  | (4,732) |
Stock-based compensation |  | (17,432) |  |  | (15,581) |  |  | (8,096) |
Non-service pension and postretirement expense (10) |  | (31,823) |  |  | (5,837) |  |  | (7,789) |
Depreciation and amortization * |  | (104,056) |  |  | (133,512) |  |  | (119,058) |
Interest expense |  | (27,725) |  |  | (28,684) |  |  | (34,885) |
Net loss attributable to noncontrolling interests |  | (54) |  |  | (52) |  |  | (497) |
(Loss) income before income taxes |  | (104,219) |  |  | 9,233 |  |  | (106,337) |
Income tax benefit (provision) |  | 4,391 |  |  | (6,375) |  |  | 18,685 |
Net (loss) income |  | $ | (99,828) |  |  | $ | 2,858 |  |  | $ | (87,652) |
(1) Represents fees for receivables sold under the Company's RPA agreement (see Note 9, "Debt and Financing Arrangements").
(2) Includes certain non-recurring items associated with recent acquisition activities, costs associated with global ERP system integration efforts, certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels, and exchange losses associated with highly inflationary accounting (see Note 2, "Summary of Significant Accounting Policies").
(3) Represents a reserve established for a legal matter involving a letter of credit for a customer in Saudi Arabia within the Memorialization segment (see Note 9, "Debt and Financing Arrangements").
(4) Includes certain non-recurring direct incremental costs (such as costs for purchases of computer peripherals and devices to facilitate working-from-home, additional personal protective equipment and cleaning supplies and services, etc.) incurred in response to COVID-19. This amount does not include the impact of any lost sales or underutilization due to COVID-19.
(5) Represents items associated with the termination of the Company's DB Plan, supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan.
(6) Represents asset write-downs, net of recoveries within the SGK Brand Solutions segment (see Note 23, "Asset Write-Downs").
(7) Represents goodwill write-downs within the SGK Brand Solutions segment (see Note 22, "Goodwill and Other Intangible Assets").
(8) Represents the gain on the sale of ownership interests in subsidiaries within the Memorialization segment.
(9) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other non-recurring charges incurred by non-consolidated subsidiaries accounted for as equity-method investments within the Memorialization segment.
(10) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.
* Depreciation and amortization was $23,228, $23,043, and $20,527 for the Memorialization segment, $11,387, $11,427, and $11,923 for the Industrial Technologies segment, $64,173, $93,665, and $81,445 for the SGK Brand Solutions segment, and $5,268, $5,377, and $5,163 for Corporate and Non-Operating, for the fiscal years ended September 30, 2022, 2021, and 2020, respectively. ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $3,517, $1,923, and $2,696 for the Memorialization segment, $5,631, $4,026, and $2,517 for the Industrial Technologies segment, $19,359, $12,323, and $12,488 for the SGK Brand Solutions segment, and $8,924, $11,267, and $22,985 for Corporate and Non-Operating, for the fiscal years ended September 30, 2022, 2021, and 2020, respectively. *** Non-recurring/incremental COVID-19 costs were $1,314, $3,646, and $1,819 for the Memorialization segment, $6, $38, and $32 for the Industrial Technologies segment, $1,199, $1,539, and $1,442 for the SGK Brand Solutions segment, and $466, $89, and $615 for Corporate and Non-Operating, for the fiscal years ended September 30, 2022, 2021, and 2020 respectively. Information about the Company's operations by geographic area follows:
| North America |  | Central and South America |  | Europe |  | Australia |  | Asia |  | Consolidated
Sales to external customers: |  |  |  |  |  |  |  |  |  |
2022 | $ | 1,230,267 |  |  | $ | 4,729 |  |  | $ | 444,606 |  |  | $ | 21,206 |  |  | $ | 61,595 |  |  | $ | 1,762,403 |
2021 | 1,141,396 |  |  | 5,036 |  |  | 446,274 |  |  | 23,568 |  |  | 54,756 |  |  | 1,671,030 |
2020 | 1,037,705 |  |  | 6,304 |  |  | 387,831 |  |  | 21,079 |  |  | 45,387 |  |  | 1,498,306 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |
2022 | 822,566 |  |  | 10,787 |  |  | 242,614 |  |  | 14,895 |  |  | 42,778 |  |  | 1,133,640 |
2021 | 890,545 |  |  | 14,226 |  |  | 277,655 |  |  | 21,012 |  |  | 55,598 |  |  | 1,259,036 |
2020 | 957,393 |  |  | 14,063 |  |  | 286,990 |  |  | 21,746 |  |  | 55,482 |  |  | 1,335,674 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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