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SEGMENT INFORMATION | 12 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION: The Company manages its businesses under three segments: Memorialization, Industrial Technologies and SGK Brand Solutions. 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; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. 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 and divestiture 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:
2023 | $ | 842,997 |  |  | $ | 505,751 |  |  | $ | 532,148 |  |  | $ | — |  |  | $ | 1,880,896 |
2022 | 840,124 |  |  | 335,523 |  |  | 586,756 |  |  | — |  |  | 1,762,403 |
2021 | 769,016 |  |  | 284,495 |  |  | 617,519 |  |  | — |  |  | 1,671,030 |
Intersegment sales:
2023 | — |  |  | 1,829 |  |  | 1,073 |  |  | — |  |  | 2,902 |
2022 | — |  |  | 1,057 |  |  | 1,295 |  |  | — |  |  | 2,352 |
2021 | — |  |  | 2,146 |  |  | 2,376 |  |  | — |  |  | 4,522 |
Depreciation and amortization:
2023 | 23,738 |  |  | 23,184 |  |  | 44,842 |  |  | 4,766 |  |  | 96,530 |
2022 | 23,228 |  |  | 11,387 |  |  | 64,173 |  |  | 5,268 |  |  | 104,056 |
2021 | 23,043 |  |  | 11,427 |  |  | 93,665 |  |  | 5,377 |  |  | 133,512 |
Adjusted EBITDA:
2023 | 163,986 |  |  | 66,278 |  |  | 57,128 |  |  | (61,583) |  |  | 225,809 |
2022 | 151,849 |  |  | 56,762 |  |  | 60,120 |  |  | (58,323) |  |  | 210,408 |
2021 | 165,653 |  |  | 34,889 |  |  | 91,435 |  |  | (64,227) |  |  | 227,750 |
Total assets:
2023 | 794,129 |  |  | 482,444 |  |  | 572,601 |  |  | 38,207 |  |  | 1,887,381 |
2022 | 800,666 |  |  | 414,019 |  |  | 631,291 |  |  | 36,795 |  |  | 1,882,771 |
2021 | 807,215 |  |  | 285,710 |  |  | 874,001 |  |  | 65,152 |  |  | 2,032,078 |
Capital expenditures:
2023 | 16,868 |  |  | 16,253 |  |  | 14,589 |  |  | 2,888 |  |  | 50,598 |
2022 | 28,899 |  |  | 13,646 |  |  | 14,287 |  |  | 4,489 |  |  | 61,321 |
2021 | 11,969 |  |  | 8,620 |  |  | 11,775 |  |  | 1,949 |  |  | 34,313 |
A reconciliation of adjusted EBITDA to net income follows:
|  | 2023 |  | 2022 |  | 2021
Total Adjusted EBITDA |  | $ | 225,809 |  |  | $ | 210,408 |  |  | $ | 227,750 |
Acquisition and divestiture related items (1)** |  | (5,293) |  |  | (7,898) |  |  | (541) |
Strategic initiatives and other charges (2)** |  | (13,923) |  |  | (28,060) |  |  | (28,998) |
Non-recurring / incremental COVID-19 costs (3)*** |  | — |  |  | (2,985) |  |  | (5,312) |
Highly inflationary accounting losses (primarily non-cash) (4) |  | (1,360) |  |  | (1,473) |  |  | — |
Defined benefit plan termination related items (5) |  | — |  |  | 429 |  |  | — |
Asset write-downs, net (6) |  | — |  |  | (10,050) |  |  | — |
Goodwill write-downs (7) |  | — |  |  | (82,454) |  |  | — |
Stock-based compensation |  | (17,308) |  |  | (17,432) |  |  | (15,581) |
Non-service pension and postretirement expense (8) |  | (1,640) |  |  | (31,823) |  |  | (5,837) |
Depreciation and amortization * |  | (96,530) |  |  | (104,056) |  |  | (133,512) |
Interest expense, including RPA and factoring financing fees (9) |  | (48,690) |  |  | (28,771) |  |  | (28,684) |
Net loss attributable to noncontrolling interests |  | (155) |  |  | (54) |  |  | (52) |
Income (loss) before income taxes |  | 40,910 |  |  | (104,219) |  |  | 9,233 |
Income tax (provision) benefit |  | (1,774) |  |  | 4,391 |  |  | (6,375) |
Net income (loss) |  | $ | 39,136 |  |  | $ | (99,828) |  |  | $ | 2,858 |
(1) Includes certain non-recurring costs associated with recent acquisition and divestiture activity, and also includes a gain of $1,827 in fiscal year 2023 related to the divestiture of a business in the Industrial Technologies segment.
(2) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels and costs associated with global ERP system integration efforts, net of loss recoveries of $2,154 in fiscal year 2023 related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.
(3) 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.
(4) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.
(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) 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.
(9) Includes fees for receivables sold under the RPA and factoring arrangements totaling $4,042 and $1,046 for the fiscal years ended September 30, 2023 and 2022, respectively.
* Depreciation and amortization was $23,738, $23,228, and $23,043 for the Memorialization segment, $23,184, $11,387, and $11,427 for the Industrial Technologies segment, $44,842, $64,173, and $93,665 for the SGK Brand Solutions segment, and $4,766, $5,268, and $5,377 for Corporate and Non-Operating, for the fiscal years ended September 30, 2023, 2022, and 2021, respectively. ** Acquisition and divestiture costs, ERP integration costs, and strategic initiatives and other charges were $1,002, $3,517, and $1,923 for the Memorialization segment, $4,108, $5,631, and $4,026 for the Industrial Technologies segment, $10,905, $19,359, and $12,323 for the SGK Brand Solutions segment, and $3,201, $7,451, and $11,267 for Corporate and Non-Operating, for the fiscal years ended September 30, 2023, 2022, and 2021, respectively. *** Non-recurring/incremental COVID-19 costs were $1,314, and $3,646 for the Memorialization segment, $6, and $38 for the Industrial Technologies segment, $1,199, and $1,539 for the SGK Brand Solutions segment, and $466, and $89 for Corporate and Non-Operating, for the fiscal years ended September 30, 2022, and 2021 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: |  |  |  |  |  |  |  |  |  |
2023 | $ | 1,219,238 |  |  | $ | 5,260 |  |  | $ | 572,736 |  |  | $ | 19,913 |  |  | $ | 63,749 |  |  | $ | 1,880,896 |
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 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |
2023 | 806,182 |  |  | 11,690 |  |  | 255,748 |  |  | 14,099 |  |  | 41,194 |  |  | 1,128,913 |
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 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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