3 unchanged sentences
(Dollar amounts in thousands)
−Removed: March 31, 2021 September 30, 2020
+Added: June 30, 2021 September 30, 2020
Current assets:
43 unchanged sentences
Three Months Ended
−Removed: March 31, Six Months Ended
+Added: June 30, Nine Months Ended
2021 2020 2021 2020
7 unchanged sentences
Operating profit (loss) 9,272 5,246 34,617 ( 84,794 )
−Removed: Investment income (loss) 969 ( 1,108 ) 2,046 191
+Added: Investment income 959 1,252 3,005 1,443
Interest expense ( 6,748 ) ( 8,082 ) ( 21,709 ) ( 26,935 )
1 unchanged sentence
Income (loss) before income taxes 1,041 ( 4,360 ) 9,153 ( 117,724 )
−Removed: Income tax (provision) benefit ( 972 ) 11,066 ( 4,952 ) 16,463
+Added: Income tax benefit (provision) 2,325 6,209 ( 2,627 ) 22,672
Net income (loss) 3,366 1,849 6,526 ( 95,052 )
8 unchanged sentences
(Dollar amounts in thousands)
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
Matthews Noncontrolling Interest Total
5 unchanged sentences
Pension plans and other postretirement benefits 3,328 1,743 — — 3,328 1,743
−Removed: Unrecognized gain (loss) on derivatives:
+Added: Unrecognized (loss) gain on derivatives:
Net change from periodic revaluation ( 654 ) ( 509 ) — — ( 654 ) ( 509 )
Net amount reclassified to earnings 596 330 — — 596 330
−Removed: Net change in unrecognized gain (loss) on derivatives 2,655 ( 4,442 ) — — 2,655 ( 4,442 )
+Added: Net change in unrecognized loss on derivatives ( 58 ) ( 179 ) — — ( 58 ) ( 179 )
OCI, net of tax 6,174 12,804 — — 6,174 12,804
Comprehensive income (loss) $ 9,529 $ 15,073 $ 11 $ ( 420 ) $ 9,540 $ 14,653
−Removed: Six Months Ended March 31,
+Added: Nine Months Ended June 30,
Matthews Noncontrolling Interest Total
14 unchanged sentences
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
−Removed: for the three and six months ended March 31, 2021 and 2020 (Unaudited)
+Added: for the three and nine months ended June 30, 2021 and 2020 (Unaudited)
(Dollar amounts in thousands, except per share data)
35 unchanged sentences
March 31, 2021 $ 36,334 $ 143,324 $ 848,254 $ ( 224,493 ) $ ( 184,373 ) $ 553 $ 619,599
+Added: Net income — — 3,355 — — 11 3,366
+Added: Minimum pension liability — — — 3,328 — — 3,328
+Added: Translation adjustment — — — 2,904 — — 2,904
+Added: Fair value of derivatives — — — ( 58 ) — — ( 58 )
+Added: Total comprehensive income 9,540
+Added: Stock-based compensation — 5,713 — — — — 5,713
+Added: Purchase of 45,584 shares of treasury stock
+Added: — — — — ( 1,663 ) — ( 1,663 )
+Added: Issuance of 2,045 shares of treasury stock
+Added: — ( 78 ) — — 78 — —
+Added: Dividends, $ 0.215 per share
+Added: — — ( 6,877 ) — — — ( 6,877 )
+Added: June 30, 2021 $ 36,334 $ 148,959 $ 844,732 $ ( 218,319 ) $ ( 185,958 ) $ 564 $ 626,312
Shareholders' Equity
32 unchanged sentences
March 31, 2020 $ 36,334 $ 143,034 $ 862,581 $ ( 248,495 ) $ ( 203,307 ) $ 1,055 $ 591,202
+Added: Net income (loss) — — 2,269 — — ( 420 ) 1,849
+Added: Minimum pension liability — — — 1,743 — — 1,743
+Added: Translation adjustment — — — 11,240 — — 11,240
+Added: Fair value of derivatives — — — ( 179 ) — — ( 179 )
+Added: Total comprehensive income 14,653
+Added: Stock-based compensation — 2,539 — — — — 2,539
+Added: Purchase of 722 shares of treasury stock
+Added: — — — — ( 22 ) — ( 22 )
+Added: Issuance of 900 shares of treasury stock
+Added: — ( 36 ) — — 36 — —
+Added: Cancellations of 4,616 shares of treasury stock
+Added: — 277 — — ( 277 ) — —
+Added: Dividends, $ 0.21 per share
+Added: — — ( 6,630 ) — — — ( 6,630 )
+Added: June 30, 2020 $ 36,334 $ 145,814 $ 858,220 $ ( 235,691 ) $ ( 203,570 ) $ 635 $ 601,742
The accompanying notes are an integral part of these consolidated financial statements.
2 unchanged sentences
(Dollar amounts in thousands)
−Removed: Six Months Ended
+Added: Nine Months Ended
Cash flows from operating activities:
4 unchanged sentences
Deferred tax provision (benefit) 967 ( 11,986 )
−Removed: (Gain) loss on sale of assets, net ( 511 ) 27
−Removed: Unrealized (gain) loss on investments ( 844 ) 70
+Added: Gain on sale of assets, net ( 641 ) ( 229 )
+Added: Gain on sale of ownership interest in a subsidiary — ( 11,208 )
+Added: Unrealized gain on investments ( 1,336 ) ( 1,161 )
Loss from equity-method investments — 3,542
2 unchanged sentences
Decrease in other assets 2,632 5,076
−Removed: Increase (decrease) in other liabilities 12,962 ( 1,107 )
+Added: (Decrease) increase in other liabilities ( 6,064 ) 2,960
Other operating activities, net 1,407 4,036
5 unchanged sentences
Proceeds from sale of investments 15,000 —
+Added: Proceeds from sale of ownership interest in subsidiary — 42,210
Investments and advances — ( 9,723 )
−Removed: Net cash used in investing activities ( 11,854 ) ( 28,538 )
+Added: Net cash (used in) provided by investing activities ( 22,907 ) 7,399
Cash flows from financing activities:
5 unchanged sentences
Other financing activities ( 2,245 ) ( 4,156 )
−Removed: Net cash (used in) provided by financing activities ( 75,453 ) 585
+Added: Net cash used in financing activities ( 79,830 ) ( 123,090 )
Effect of exchange rate changes on cash 776 ( 315 )
5 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
−Removed: March 31, 2021
+Added: June 30, 2021
(Dollar amounts in thousands, except per share data)
10 unchanged sentences
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included.
−Removed: Operating results for the six months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2021.
+Added: Operating results for the nine months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2021.
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, 2020.
18 unchanged sentences
Basis of Presentation (continued)
−Removed: The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the six months ended March 31, 2021:
+Added: The following table summarizes the activity for the accounts receivable allowance for doubtful accounts for the nine months ended June 30, 2021:
Accounts Receivable Allowance for Doubtful Accounts
2 unchanged sentences
Translation and other adjustments (1)
−Removed: Balance at March 31, 2021
+Added: Balance at June 30, 2021
(1) Includes the impact of foreign currency fluctuations and amounts determined not to be collectible (including direct write-offs), net of recoveries.
1 unchanged sentence
The Company delivers a variety of products and services through its business segments.
−Removed: The SGK Brand Solutions segment delivers brand management, pre-media services, printing plates and cylinders, engineered products, and imaging services for consumer goods and retail customers, merchandising display systems, and marketing and design services primarily to the consumer goods and retail industries.
+Added: The SGK Brand Solutions segment delivers brand management, pre-media services, printing plates and cylinders, engineered products (including energy solutions), and imaging services for consumer goods and retail customers, merchandising display systems, and marketing and design services primarily to the consumer goods and retail industries.
The Memorialization segment produces and delivers bronze and granite memorials and other memorialization products, caskets, and cremation and incineration equipment primarily for the cemetery and funeral home industries.
1 unchanged sentence
The Company disaggregates revenue from contracts with customers by geography, as it believes geographic regions best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
−Removed: Disaggregated sales by segment and region for the three and six months ended March 31, 2021 and 2020 were as follows:
+Added: Disaggregated sales by segment and region for the three and nine months ended June 30, 2021 and 2020 were as follows:
SGK Brand Solutions Memorialization Industrial Technologies Consolidated
Three Months Ended
−Removed: March 31, Three Months Ended
−Removed: March 31, Three Months Ended
−Removed: March 31, Three Months Ended
+Added: June 30, Three Months Ended
+Added: June 30, Three Months Ended
+Added: June 30, Three Months Ended
2021 2020 2021 2020 2021 2020 2021 2020
6 unchanged sentences
SGK Brand Solutions Memorialization Industrial Technologies Consolidated
−Removed: Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31, Six Months Ended March 31,
+Added: Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30, Nine Months Ended June 30,
2021 2020 2021 2020 2021 2020 2021 2020
14 unchanged sentences
The fair values of the Company's assets and liabilities measured on a recurring basis are categorized as follows:
−Removed: March 31, 2021 September 30, 2020
+Added: June 30, 2021 September 30, 2020
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
−Removed: Derivatives (1)
−Removed: $ — $ 471 $ — $ 471 $ — $ — $ — $ —
Equity and fixed income mutual funds $ — $ 25,949 $ — $ 25,949 $ — $ 24,610 $ — $ 24,610
6 unchanged sentences
Inventories consisted of the following:
−Removed: March 31, 2021 September 30, 2020
+Added: June 30, 2021 September 30, 2020
Raw materials $ 38,754 $ 36,157
3 unchanged sentences
Non-current investments consisted of the following:
−Removed: March 31, 2021 September 30, 2020
+Added: June 30, 2021 September 30, 2020
Equity and fixed income mutual funds $ 25,949 $ 24,610
5 unchanged sentences
(Dollar amounts in thousands, except per share data)
−Removed: Long-term debt at March 31, 2021 and September 30, 2020 consisted of the following:
−Removed: March 31, 2021 September 30, 2020
+Added: Long-term debt at June 30, 2021 and September 30, 2020 consisted of the following:
+Added: June 30, 2021 September 30, 2020
Revolving credit facilities $ 382,253 $ 416,793
10 unchanged sentences
A portion of the revolving credit facility (not to exceed $ 350,000 ) can be drawn in foreign currencies.
−Removed: Borrowings under the revolving credit facility bear interest at LIBOR (Euro LIBOR for balances drawn in Euros) plus a factor ranging from 0.75 % to 2.00 % ( 1.25 % at March 31, 2021) based on the Company's secured leverage ratio.
+Added: Borrowings under the revolving credit facility bear interest at LIBOR (Euro LIBOR for balances drawn in Euros) plus a factor ranging from 0.75 % to 2.00 % ( 1.00 % at June 30, 2021) based on the Company's secured leverage ratio.
The secured leverage ratio is defined as net secured indebtedness divided by EBITDA (earnings before interest, income taxes, depreciation and amortization) as defined within the domestic credit facility agreement.
1 unchanged sentence
The Company incurred debt issuance costs in connection with the domestic credit facility.
−Removed: Unamortized costs were $ 2,481 and $ 2,734 at March 31, 2021 and September 30, 2020, respectively.
+Added: Unamortized costs were $ 2,423 and $ 2,734 at June 30, 2021 and September 30, 2020, respectively.
The domestic credit facility requires the Company to maintain certain leverage and interest coverage ratios.
1 unchanged sentence
Outstanding U.S.
−Removed: dollar denominated borrowings on the revolving credit facility at March 31, 2021 and September 30, 2020 were $ 250,000 and $ 257,439 , respectively.
−Removed: Outstanding Euro denominated borrowings on the revolving credit facility at March 31, 2021 and September 30, 2020 were € 97.0 million ($ 113,764 ) and € 117.0 million ($ 137,188 ), respectively.
−Removed: There were no outstanding borrowings on the term loan as of March 31, 2021.
+Added: dollar denominated borrowings on the revolving credit facility at June 30, 2021 and September 30, 2020 were $ 259,237 and $ 257,439 , respectively.
+Added: Outstanding Euro denominated borrowings on the revolving credit facility at June 30, 2021 and September 30, 2020 were € 97.0 million ($ 115,229 ) and € 117.0 million ($ 137,188 ), respectively.
+Added: There were no outstanding borrowings on the term loan as of June 30, 2021.
Outstanding borrowings on the term loan at September 30, 2020 were $ 22,359 .
−Removed: The weighted-average interest rate on the outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at March 31, 2021 and March 31, 2020 was 2.17 % and 2.40 %, respectively.
+Added: The weighted-average interest rate on the outstanding borrowings for the domestic credit facility (including the effects of interest rate swaps and Euro denominated borrowings) at June 30, 2021 and 2020 was 1.94 % and 2.44 %, respectively.
The Company has $ 300,000 of 5.25 % senior unsecured notes due December 1, 2025 (the "2025 Senior Notes").
3 unchanged sentences
The Company incurred direct financing fees and costs in connection with the 2025 Senior Notes.
−Removed: Unamortized costs were $ 2,474 and $ 2,744 at March 31, 2021 and September 30, 2020, respectively.
−Removed: The Company has a $ 115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions which matures in March 2022.
+Added: Unamortized costs were $ 2,339 and $ 2,744 at June 30, 2021 and September 30, 2020, respectively.
+Added: The Company has a $ 115,000 accounts receivable securitization facility (the "Securitization Facility") with certain financial institutions which matures in March 2022 and the Company intends to extend this facility.
Under the Securitization Facility, the Company and certain of its domestic subsidiaries sell, on a continuous basis without recourse, their trade receivables to Matthews Receivables Funding Corporation, LLC (“Matthews RFC”), a wholly-owned bankruptcy-remote subsidiary of the Company.
4 unchanged sentences
The Company is required to pay an annual commitment fee ranging from 0.25 % to 0.35 % of the unused portion of the Securitization Facility.
−Removed: Outstanding borrowings under the Securitization Facility at March 31, 2021 and September 30, 2020 were $ 97,590 and $ 67,700 , respectively.
−Removed: At March 31, 2021 and 2020, the interest rate on borrowings under this facility was 0.86 % and 1.74 %, respectively.
+Added: Outstanding borrowings under the Securitization Facility at June 30, 2021 and September 30, 2020 were $ 90,710 and $ 67,700 , respectively.
+Added: At June 30, 2021 and 2020, the interest rate on borrowings under this facility was 0.85 % and 0.91 %, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
2 unchanged sentences
The following table presents information related to interest rate contracts entered into by the Company and designated as cash flow hedges:
−Removed: March 31, 2021 September 30, 2020
+Added: June 30, 2021 September 30, 2020
Pay fixed swaps - notional amount $ 250,000 $ 312,500
7 unchanged sentences
Based on the Company's assessment, all of the critical terms of each of the hedges matched the underlying terms of the hedged debt and related forecasted interest payments, and as such, these hedges were considered highly effective.
−Removed: The fair value of the interest rate swaps reflected an unrealized loss, net of unrealized gains, of $ 2,905 ($ 2,194 after tax) at March 31, 2021 and an unrealized loss of $ 7,792 ($ 5,884 after tax) at September 30, 2020, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI").
−Removed: Assuming market rates remain constant with the rates at March 31, 2021, a loss (net of tax) of approximately $ 1,772 included in AOCI is expected to be recognized in earnings over the next twelve months.
−Removed: At March 31, 2021 and September 30, 2020, the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows:
−Removed: Derivatives March 31, 2021 September 30, 2020
−Removed: Current assets:
−Removed: Other current assets $ 78 $ —
−Removed: Long-term assets:
−Removed: Other assets 393 —
+Added: The fair value of the interest rate swaps reflected an unrealized loss of $ 2,982 ($ 2,252 after tax) at June 30, 2021 and an unrealized loss of $ 7,792 ($ 5,884 after tax) at September 30, 2020, that is included in shareholders' equity as part of accumulated other comprehensive income (loss) ("AOCI").
+Added: Assuming market rates remain constant with the rates at June 30, 2021, a loss (net of tax) of approximately $ 1,820 included in AOCI is expected to be recognized in earnings over the next twelve months.
+Added: At June 30, 2021 and September 30, 2020, the interest rate swap contracts were reflected in the Consolidated Balance Sheets as follows:
+Added: Derivatives June 30, 2021 September 30, 2020
Current liabilities:
4 unchanged sentences
The (losses) gains recognized on derivatives were as follows:
−Removed: Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivative Amount of (Loss) Gain Recognized in Income on Derivatives
−Removed: Amount of (Loss) Gain Recognized in Income on Derivatives
+Added: Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivative Amount of Loss Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives
Three Months Ended
−Removed: March 31, Six Months Ended
+Added: June 30, Nine Months Ended
2021 2020 2021 2020
Interest rate swaps Interest expense $ ( 790 ) $ ( 438 ) $ ( 2,444 ) $ 108
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
−Removed: (Dollar amounts in thousands, except per share data)
−Removed: Debt (continued)
The Company recognized the following gains (losses) in AOCI:
4 unchanged sentences
(Effective Portion*)
−Removed: March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
+Added: June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Interest rate swaps $ 1,787 $ ( 4,248 ) Interest expense $ ( 1,845 ) $ 82
−Removed: *There is no ineffective portion or amount excluded from effectiveness testing.
+Added: * There is no ineffective portion or amounts excluded from effectiveness testing.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
+Added: (Dollar amounts in thousands, except per share data)
+Added: Debt (continued)
The Company, through certain of its European subsidiaries, has a credit facility with a European bank, which is guaranteed by Matthews.
1 unchanged sentence
The credit facility matures in December 2021 and the Company intends to continue to extend this facility.
−Removed: Outstanding borrowings under the credit facility totaled € 3.1 million ($ 3,587 ) and € 18.9 million ($ 22,166 ) at March 31, 2021 and September 30, 2020, respectively.
−Removed: The weighted-average interest rate on outstanding borrowings under this facility at March 31, 2021 and 2020 was 2.25 % and 1.25 %, respectively.
+Added: Outstanding borrowings under the credit facility totaled € 6.6 million ($ 7,786 ) and € 18.9 million ($ 22,166 ) at June 30, 2021 and September 30, 2020, respectively.
+Added: The weighted-average interest rate on outstanding borrowings under this facility at June 30, 2021 and 2020 was 2.25 % and 1.25 %, respectively.
The Company uses certain foreign currency debt instruments as net investment hedges of foreign operations.
−Removed: Currency losses of $ 4,852 (net of income taxes of $ 1,575 ) and currency losses of $ 4,377 (net of income taxes of $ 1,420 ), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at March 31, 2021 and September 30, 2020, respectively.
−Removed: As of March 31, 2021 and September 30, 2020, the fair value of the Company's long-term debt, including current maturities, which is classified as Level 2 in the fair value hierarchy, approximated the carrying value included in the Consolidated Balance Sheets.
−Removed: The Company was in compliance with all of its debt covenants as of March 31, 2021.
+Added: Currency losses of $ 5,957 (net of income taxes of $ 1,933 ) and currency losses of $ 4,377 (net of income taxes of $ 1,420 ), which represent effective hedges of net investments, were reported as a component of AOCI within currency translation adjustment at June 30, 2021 and September 30, 2020, respectively.
+Added: As of June 30, 2021 and September 30, 2020, the fair value of the Company's long-term debt, including current maturities, which is classified as Level 2 in the fair value hierarchy, approximated the carrying value included in the Consolidated Balance Sheets.
+Added: The Company was in compliance with all of its debt covenants as of June 30, 2021.
Share-Based Payments
1 unchanged sentence
Under the 2017 Equity Incentive Plan, which has a ten-year term, the maximum number of shares available for grants or awards is an aggregate of 1,700,000 .
−Removed: At March 31, 2021, there were 1,700,000 shares reserved for future issuance under the 2017 Equity Incentive Plan.
−Removed: 1,064,910 restricted share units have been granted under the 2017 Equity Incentive Plan and are outstanding as of March 31, 2021.
+Added: At June 30, 2021, there were 1,700,000 shares reserved for future issuance under the 2017 Equity Incentive Plan.
+Added: 1,064,910 restricted share units and 75,000 stock options have been granted under the 2017 Equity Incentive Plan and are outstanding as of June 30, 2021.
The 2017 Equity Incentive plan is administered by the Compensation Committee of the Board of Directors.
+Added: For the three-month periods ended June 30, 2021 and 2020, stock-based compensation cost totaled $ 5,713 and $ 2,539 , respectively.
+Added: For the nine-month periods ended June 30, 2021 and 2020, stock-based compensation cost totaled $ 12,960 and $ 7,078 , respectively.
+Added: The associated future income tax benefit recognized for stock-based compensation was $ 1,467 and $ 622 for the three-month periods ended June 30, 2021 and 2020, respectively, and $ 2,443 and $ 1,415 for the nine-month periods ended June 30, 2021 and 2020, respectively.
With respect to the restricted share grants, generally one-half of the shares vest on the third anniversary of the grant, one-quarter of the shares vest in one-third increments upon the attainment of pre-defined levels of adjusted earnings per share, and the remaining one-quarter of the shares vest in one-third increments upon attainment of pre-defined levels of appreciation in the market value of the Company's Class A Common Stock.
10 unchanged sentences
Share-Based Payments (continued)
−Removed: For the three-month periods ended March 31, 2021 and 2020, stock-based compensation cost totaled $ 4,001 and $ 2,508 , respectively.
−Removed: For the six-month periods ended March 31, 2021 and 2020, stock-based compensation cost totaled $ 7,247 and $ 4,539 , respectively.
−Removed: The associated future income tax benefit recognized for stock-based compensation was $ 738 and $ 614 for the three-month periods ended March 31, 2021 and 2020, respectively, and $ 976 and $ 793 for the six-month periods ended March 31, 2021 and 2020, respectively.
−Removed: The transactions for restricted shares and restricted share units for the six months ended March 31, 2021 were as follows:
+Added: The transactions for restricted shares and restricted share units for the nine months ended June 30, 2021 were as follows:
Shares /Units Weighted-
3 unchanged sentences
Expired or forfeited ( 38,467 ) 55.79
−Removed: Non-vested at March 31, 2021 1,107,810 $ 34.03
−Removed: As of March 31, 2021, the total unrecognized compensation cost related to unvested restricted stock was $ 17,602 and is expected to be recognized over a weighted average period of 2.2 years.
−Removed: The fair value of certain restricted share units that are subject to performance conditions are estimated on the date of grant using a binomial lattice valuation model.
−Removed: The following table indicates the assumptions used in estimating the fair value of certain restricted share units granted during the six-month period ended March 31, 2021.
−Removed: Six Months Ended
−Removed: March 31, 2021
+Added: Non-vested at June 30, 2021 1,101,540 $ 34.01
+Added: During the third quarter of fiscal 2021, 75,000 stock options were granted under the 2017 Equity Incentive Plan.
+Added: The option price for each stock option granted was $ 41.70 , which was equal to the fair market value of the Company's Class A Common Stock on the date of grant.
+Added: These options vest in one-third increments annually over three years from the grant date.
+Added: Unvested stock options expire on the earlier of five years from the date of grant, or upon employment termination, retirement or death.
+Added: The Company generally settles employee stock option exercises with treasury shares.
+Added: As of June 30, 2021, the total unrecognized compensation cost related to all unvested stock-based awards was $ 12,893 and is expected to be recognized over a weighted average period of 2.0 years.
+Added: The fair value of certain restricted share units that are subject to performance conditions and the fair value of stock options are estimated on the date of grant using a binomial lattice valuation model.
+Added: The following table indicates the assumptions used in estimating the fair value of certain stock-based awards granted during the nine-month period ended June 30, 2021.
+Added: Share Units Stock
Expected volatility 42.9 % 41.9 %
5 unchanged sentences
Expected volatilities are based on the historical volatility of the Company's stock price.
−Removed: The expected term for grants in the six months ended March 31, 2021 represents an estimate of the average period of time for restricted share units to vest.
+Added: The expected term for grants in the nine months ended June 30, 2021 represents an estimate of the average period of time for restricted share units and stock options to vest.
The Company maintains the 2019 Director Fee Plan, the Amended and Restated 2014 Director Fee Plan and the 1994 Director Fee Plan (collectively, the "Director Fee Plans").
5 unchanged sentences
The value of deferred shares is recorded in other liabilities.
−Removed: A total of 38,327 shares and share units had been deferred under the Director Fee Plans as of March 31, 2021.
+Added: A total of 38,482 shares and share units had been deferred under the Director Fee Plans as of June 30, 2021.
Additionally, non-employee directors each receive an annual stock-based grant (non-statutory stock options, stock appreciation rights and/or restricted shares or units) with a value of $ 125 for fiscal 2021.
−Removed: 271,807 restricted shares and restricted share units have been granted under the Director Fee Plans, 98,578 of which were issued under the 2019 Director Fee Plan.
−Removed: 74,639 restricted shares and restricted share units are unvested at March 31, 2021.
+Added: As of June 30, 2021, 271,807 restricted shares and restricted share units have been granted under the Director Fee Plans, 98,578 of which were issued under the 2019 Director Fee Plan.
+Added: 74,639 restricted shares and restricted share units are unvested at June 30, 2021.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
3 unchanged sentences
Three Months Ended
−Removed: March 31, Six Months Ended
+Added: June 30, Nine Months Ended
2021 2020 2021 2020
4 unchanged sentences
Diluted shares 32,193 31,232 32,118 31,143
−Removed: Anti-dilutive securities excluded from the dilution calculation were insignificant for the three and six months ended March 31, 2021.
+Added: Anti-dilutive securities excluded from the dilution calculation were insignificant for the three and nine months ended June 30, 2021 and 2020.
Pension and Other Postretirement Benefit Plans
1 unchanged sentence
Net periodic pension and other postretirement benefit cost for the plans included the following:
−Removed: Three months ended March 31,
+Added: Three months ended June 30,
Pension Other Postretirement
6 unchanged sentences
Net actuarial loss * 2,730 2,386 — —
+Added: Curtailment gain * ( 220 ) — — —
+Added: Prior service cost write-off * 526 — — —
Net benefit cost $ 3,809 $ 4,210 $ 53 $ 181
−Removed: Six months ended March 31,
+Added: Nine months ended June 30,
Pension Other Postretirement
6 unchanged sentences
Net actuarial loss * 8,774 7,159 — —
+Added: Curtailment gain * ( 220 ) — — —
+Added: Prior service cost write-off * 526 — — —
Net benefit cost $ 11,560 $ 12,631 $ 159 $ 543
* Non-service components of pension and postretirement expense are included in other income (deductions), net.
−Removed: Benefit payments under the Company's principal retirement plan are made from plan assets, while benefit payments under the postretirement benefit plan are made from the Company's operating funds.
−Removed: In April 2021, subsequent to the date of the balance sheet, the Company contributed $ 15,000 to its principal retirement plan.
−Removed: Under IRS regulations, no further contributions are required to be made to the Company's principal retirement plan during fiscal 2021.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
1 unchanged sentence
Pension and Other Postretirement Benefit Plans (continued)
+Added: During the third quarter of fiscal 2021, the Compensation Committee of the Company's Board of Directors approved a resolution to freeze all future benefit accruals for all participants in the Company’s supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan, effective April 30, 2021.
+Added: Consequently, participants in these plans will no longer earn additional benefits after April 30, 2021.
+Added: The freezing of these plans triggered curtailments, which resulted in the remeasurement of the projected benefit obligations and the immediate recognition of prior service costs in earnings, which were previously included within AOCI.
+Added: During the third quarter of fiscal 2021, the investment policy for the Company’s principal defined benefit retirement plan was updated to establish modified asset allocation targets.
+Added: The updated investment objective is intended to reduce risk assets in favor of fixed income investments as the plan’s funding status increases.
+Added: Accordingly, as of June 30, 2021, the principal defined benefit plans' asset allocation reflected 54 % allocated to fixed income, cash and cash equivalents, 39 % allocated to equity securities, and 7 % allocated to other investments.
+Added: Benefit payments under the Company's principal retirement plan are made from plan assets, while benefit payments under the postretirement benefit plan are made from the Company's operating funds.
+Added: During the third quarter of fiscal 2021, the Company contributed $ 15,000 to its principal retirement plan.
+Added: Under IRS regulations, no further contributions are required to be made to the Company's principal retirement plan during fiscal 2021.
Contributions made and anticipated for fiscal year 2021 are as follows:
Contributions Pension Other Postretirement
−Removed: Contributions during the six months ended March 31, 2021:
+Added: Contributions during the nine months ended June 30, 2021:
+Added: Principal retirement plan $ 15,000 $ —
Supplemental retirement plan 607 —
1 unchanged sentence
Additional contributions expected in fiscal 2021:
−Removed: Principal retirement plan * $ 15,000 $ —
Supplemental retirement plan $ 298 $ —
Other postretirement plan — 395
−Removed: * Contribution was made in April 2021 (see above).
Accumulated Other Comprehensive Income
−Removed: The changes in AOCI by component, net of tax, for the three-month periods ended March 31, 2021 and 2020 were as follows:
+Added: The changes in AOCI by component, net of tax, for the three-month periods ended June 30, 2021 and 2020 were as follows:
Post-retirement benefit plans Currency translation adjustment Derivatives Total
Attributable to Matthews:
−Removed: Balance, December 31, 2020 $ ( 80,830 ) $ ( 134,826 ) $ ( 4,849 ) $ ( 220,505 )
+Added: Balance, March 31, 2021 $ ( 78,575 ) $ ( 143,724 ) $ ( 2,194 ) $ ( 224,493 )
OCI before reclassification 970 2,904 ( 654 ) 3,220
1 unchanged sentence
Net current-period OCI 3,328
−Removed: 2,655 ( 3,988 )
−Removed: Balance, March 31, 2021 $ ( 78,575 ) $ ( 143,724 ) $ ( 2,194 ) $ ( 224,493 )
+Added: Balance, June 30, 2021 $ ( 75,247 ) $ ( 140,820 ) $ ( 2,252 ) $ ( 218,319 )
Attributable to noncontrolling interest:
−Removed: Balance, December 31, 2020 $ — $ 365 $ — $ 365
+Added: Balance, March 31, 2021 $ — $ 366 $ — $ 366
OCI before reclassification — — — —
Net current-period OCI — — — —
−Removed: Balance, March 31, 2021 $ — $ 366 $ — $ 366
+Added: Balance, June 30, 2021 $ — $ 366 $ — $ 366
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
+Added: (Dollar amounts in thousands, except per share data)
+Added: Accumulated Other Comprehensive Income (continued)
Post-retirement benefit plans Currency translation adjustment Derivatives Total
Attributable to Matthews:
−Removed: Balance, December 31, 2019 $ ( 70,016 ) $ ( 145,103 ) $ ( 113 ) $ ( 215,232 )
+Added: Balance, March 31, 2020 $ ( 68,189 ) $ ( 175,751 ) $ ( 4,555 ) $ ( 248,495 )
OCI before reclassification — 11,240 ( 509 ) 10,731
Amounts reclassified from AOCI 1,743 (a)
−Removed: — ( 137 ) (b)
Net current-period OCI 1,743 11,240 ( 179 ) 12,804
−Removed: Balance, March 31, 2020 $ ( 68,189 ) $ ( 175,751 ) $ ( 4,555 ) $ ( 248,495 )
+Added: Balance, June 30, 2020 $ ( 66,446 ) $ ( 164,511 ) $ ( 4,734 ) $ ( 235,691 )
Attributable to noncontrolling interest:
−Removed: Balance, December 31, 2019 $ — $ 370 $ — $ 370
+Added: Balance, March 31, 2020 $ — $ 371 $ — $ 371
OCI before reclassification — —
Net current-period OCI — — — —
−Removed: Balance, March 31, 2020 $ — $ 371
+Added: Balance, June 30, 2020 $ — $ 371
(a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10).
(b) Amounts were included in interest expense in the periods the hedged item affected earnings (see Note 7).
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
−Removed: (Dollar amounts in thousands, except per share data)
−Removed: Accumulated Other Comprehensive Income (continued)
−Removed: The changes in AOCI by component, net of tax, for the six-month periods ended March 31, 2021 and 2020 were as follows:
+Added: The changes in AOCI by component, net of tax, for the nine-month periods ended June 30, 2021 and 2020 were as follows:
Post-retirement benefit plans Currency translation adjustment Derivatives Total
5 unchanged sentences
11,061 3,632 22,400
−Removed: Balance, March 31, 2021 $ ( 78,575 ) $ ( 143,724 ) $ ( 2,194 ) $ ( 224,493 )
+Added: Balance, June 30, 2021 $ ( 75,247 ) $ ( 140,820 ) $ ( 2,252 ) $ ( 218,319 )
Attributable to noncontrolling interest:
2 unchanged sentences
Net current-period OCI — ( 2 ) — ( 2 )
−Removed: Balance, March 31, 2021 $ — $ 366 $ — $ 366
+Added: Balance, June 30, 2021 $ — $ 366 $ — $ 366
Post-retirement benefit plans Currency translation adjustment Derivatives Total
3 unchanged sentences
Amounts reclassified from AOCI 5,297 (a)
−Removed: — ( 412 ) (b)
Net current-period OCI 5,297 ( 8,297 ) ( 4,330 ) ( 7,330 )
−Removed: Balance, March 31, 2020 $ ( 68,189 ) $ ( 175,751 ) $ ( 4,555 ) $ ( 248,495 )
+Added: Balance, June 30, 2020 $ ( 66,446 ) $ ( 164,511 ) $ ( 4,734 ) $ ( 235,691 )
Attributable to noncontrolling interest:
2 unchanged sentences
Net current-period OCI — ( 4 ) — ( 4 )
−Removed: Balance, March 31, 2020 $ — $ 371
+Added: Balance, June 30, 2020 $ — $ 371
(a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10).
3 unchanged sentences
Accumulated Other Comprehensive Income (continued)
−Removed: Reclassifications out of AOCI for the three and six-month periods ended March 31, 2021 and 2020 were as follows:
+Added: Reclassifications out of AOCI for the three and nine-month periods ended June 30, 2021 and 2020 were as follows:
Amount reclassified from AOCI
−Removed: Details about AOCI Components Three Months Ended March 31, 2021 Six Months Ended March 31, 2021 Affected line item in the Statement of income
+Added: Details about AOCI Components Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Affected line item in the Statement of income
Postretirement benefit plans
Prior service credit (a)
−Removed: Actuarial losses (a)
−Removed: ( 3,023 ) ( 6,044 )
+Added: Actuarial losses ( 2,730 ) ( 8,774 ) Other income (deductions), net
+Added: Prior service cost write-off ( 526 ) ( 526 ) Other income (deductions), net
( 3,119 ) ( 8,923 ) Income before income tax (b)
7 unchanged sentences
Amount reclassified from AOCI
−Removed: Details about AOCI Components Three Months Ended March 31, 2020 Six Months Ended
−Removed: March 31, 2020 Affected line item in the Statement of income
+Added: Details about AOCI Components Three Months Ended June 30, 2020 Nine Months Ended
+Added: June 30, 2020 Affected line item in the Statement of income
Postretirement benefit plans
Prior service credit (a)
−Removed: Actuarial losses (a)
−Removed: ( 2,386 ) ( 4,773 )
+Added: Actuarial losses ( 2,386 ) ( 7,159 ) Other income (deductions), net
( 2,316 ) ( 6,949 ) Income before income tax (b)
7 unchanged sentences
(a) Prior service cost 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.
−Removed: Actuarial losses are reported in other income (deductions), net.
For additional information, see Note 10.
(b) For pre-tax items, positive amounts represent income and negative amounts represent expense.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
−Removed: (Dollar amounts in thousands, except per share data)
Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year.
−Removed: The Company's consolidated income taxes for the six months ended March 31, 2021 were an expense of $ 4,952 , compared to a benefit of $ 16,463 for the first six months of fiscal 2020.
−Removed: The difference between the Company’s consolidated income taxes for the first six months of fiscal 2021 versus the same period for fiscal 2020 primarily resulted from fiscal 2021 having consolidated pre-tax income while fiscal 2020 had a pre-tax loss.
−Removed: Additionally, fiscal 2021 included discrete tax expenses related to foreign operating losses, discrete tax benefits related to expirations of uncertain tax liabilities, a net operating loss (“NOL”) carryback to tax years where the U.S.
+Added: The Company's consolidated income taxes for the nine months ended June 30, 2021 were an expense of $ 2,627 , compared to a benefit of $ 22,672 for the first nine months of fiscal 2020.
+Added: The difference between the Company’s consolidated income taxes for the first nine months of fiscal 2021 compared to the same period for fiscal 2020 primarily resulted from consolidated pre-tax income in fiscal 2021 compared to a pre-tax loss in fiscal 2020.
+Added: Additionally, fiscal 2021 included discrete tax expenses related to foreign operating losses, discrete tax benefits related to the resolution of uncertain tax liabilities, a net operating loss (“NOL”) carryback to tax years where the U.S.
federal statutory rate was 35 %, and additional foreign tax credits.
Fiscal 2020 included discrete tax benefits resulting from the closure of several tax audits.
−Removed: The Company’s fiscal 2021 six-month effective tax rate varied from the U.S.
−Removed: statutory tax rate of 21.0 % primarily due to discrete tax expenses related to foreign operating losses, discrete tax benefits related to expirations of uncertain tax liabilities, a NOL carryback to tax years where the U.S.
+Added: The Company’s
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
+Added: (Dollar amounts in thousands, except per share data)
+Added: Income Taxes (continued)
+Added: fiscal 2021 nine-month effective tax rate varied from the U.S.
+Added: statutory tax rate of 21.0 % primarily due to discrete tax expenses related to foreign operating losses, discrete tax benefits related to the resolution of uncertain tax liabilities, a NOL carryback to tax years where the U.S.
federal statutory rate was 35 %, and additional foreign tax credits.
Additionally, state taxes, foreign statutory rate differentials, and tax credits all affected the fiscal 2021 effective tax rate.
−Removed: The Company’s fiscal 2020 six-month effective tax rate varied from the U.S.
−Removed: statutory tax rate of 21.0 % primarily due to state taxes, foreign statutory rate differentials, tax credits, the goodwill write-down, and discrete tax benefits recognized in fiscal 2020.
−Removed: The Company had unrecognized tax benefits (excluding penalties and interest) of $ 10,351 and $ 10,483 on March 31, 2021 and September 30, 2020, respectively, of which $ 7,137 and $ 7,066 would impact the annual effective rate at March 31, 2021 and September 30, 2020, respectively.
+Added: The Company’s fiscal 2020 nine-month effective tax rate varied from the U.S.
+Added: statutory tax rate of 21.0 % primarily due to state taxes, foreign statutory rate differentials, tax credits, the goodwill write-down, the expected NOL carryback, and discrete tax benefits recognized in fiscal 2020.
+Added: The Company had unrecognized tax benefits (excluding penalties and interest) of $ 8,104 and $ 10,483 on June 30, 2021 and September 30, 2020, respectively, of which $ 4,890 and $ 7,066 would impact the annual effective rate at June 30, 2021 and September 30, 2020, respectively.
It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $ 5,655 in the next 12 months primarily due to the completion of audits and the expiration of the statute of limitations.
The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes.
−Removed: Total penalties and interest accrued were $ 2,146 and $ 2,172 at March 31, 2021 and September 30, 2020, respectively.
+Added: Total penalties and interest accrued were $ 1,773 and $ 2,172 at June 30, 2021 and September 30, 2020, respectively.
These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions.
The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions.
−Removed: As of March 31, 2021, the tax years that remain subject to examination by major jurisdiction generally are:
+Added: As of June 30, 2021, the tax years that remain subject to examination by major jurisdiction generally are:
United States – Federal 2017 and forward
8 unchanged sentences
SGK Brand Solutions, Memorialization and Industrial Technologies.
−Removed: The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.
+Added: The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, engineered products (including energy solutions), imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.
The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, and cremation and incineration equipment primarily for the cemetery and funeral home industries.
3 unchanged sentences
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.
−Removed: This presentation is
+Added: 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.
+Added: For these reasons, the Company believes that adjusted EBITDA represents the most relevant measure of segment profit and loss.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
1 unchanged sentence
Segment Information (continued)
−Removed: consistent with how the Company's chief operating decision maker (the “CODM”) evaluates the results of operations and makes strategic decisions about the business.
−Removed: 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.
5 unchanged sentences
Three Months Ended
−Removed: March 31, Six Months Ended
+Added: June 30, Nine Months Ended
2021 2020 2021 2020
16 unchanged sentences
Other cost-reduction initiatives ( 4,871 ) ( 4,743 ) ( 12,339 ) ( 20,951 )
+Added: Gain on sale of ownership interest in a subsidiary (4)
+Added: — 11,208 — 11,208
+Added: Legal matter reserve (5)
+Added: — ( 10,566 ) — ( 10,566 )
Non-recurring / incremental coronavirus disease 2019 ("COVID-19") costs (6)
12 unchanged sentences
Income (loss) before income taxes 1,041 ( 4,360 ) 9,153 ( 117,724 )
−Removed: Income tax (provision) benefit ( 972 ) 11,066 ( 4,952 ) 16,463
+Added: Income tax benefit (provision) 2,325 6,209 ( 2,627 ) 22,672
Net income (loss) $ 3,366 $ 1,849 $ 6,526 $ ( 95,052 )
5 unchanged sentences
(3) Includes certain non-recurring costs associated with productivity and cost-reduction initiatives intended to result in improved operating performance, profitability and working capital levels.
+Added: (4) Represents a gain on the sale of an ownership interest in a subsidiary within the Memorialization segment.
+Added: (5) Represents a reserve established for a legal matter involving a letter of credit for a customer in Saudi Arabia within the Memorialization segment.
(6) 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.
2 unchanged sentences
(8) 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.
−Removed: (7) Non-service pension and postretirement expense includes interest cost, expected return on plan assets and amortization of actuarial gains and losses.
+Added: (9) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, and curtailment 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.
+Added: Curtailment 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.
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.
−Removed: * Depreciation and amortization was $ 26,740 and $ 21,785 for the SGK Brand Solutions segment, $ 5,709 and $ 4,839 for the Memorialization segment, $ 1,401 and $ 1,428 for the Industrial Technologies segment, and $ 1,329 and $ 1,265 for Corporate and Non-Operating, for the three months ended March 31, 2021 and 2020, respectively.
−Removed: Depreciation and amortization was $ 45,887 and $ 43,441 for the SGK Brand Solutions segment, $ 11,178 and $ 9,475 for the Memorialization segment, $ 2,842 and $ 2,870 for the Industrial Technologies segment, and $ 2,623 and $ 2,464 for Corporate and Non-Operating, for the six months ended March 31, 2021 and 2020, respectively.
−Removed: ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 2,991 and $ 3,818 for the SGK Brand Solutions segment, income of $ 335 and charges of $ 730 for the Memorialization segment, and charges of $ 2,437 and $ 5,813 for Corporate and Non-Operating, for the three months ended March 31, 2021 and 2020, respectively.
−Removed: Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 268 for the Industrial Technologies segment, for the three months ended March 31, 2020.
−Removed: Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 10,346 and $ 7,264 for the SGK Brand Solutions segment, $ 795 and $ 1,057 for the Memorialization segment, and $ 5,144 and $ 14,904 for Corporate and Non-Operating, for the six months ended March 31, 2021 and 2020, respectively.
−Removed: Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 268 for the Industrial Technologies segment, for the six months ended March 31, 2020.
−Removed: In January 2021, the Company acquired a memorialization business that produces and distributes cemetery products for a purchase price of $ 13,100 , subject to working capital adjustments.
−Removed: The preliminary purchase price allocation is not finalized as of March 31, 2021 and is subject to changes as the Company obtains additional information related to fixed assets and other assets, and liabilities.
+Added: * Depreciation and amortization was $ 26,813 and $ 21,833 for the SGK Brand Solutions segment, $ 5,838 and $ 5,549 for the Memorialization segment, $ 1,399 and $ 1,450 for the Industrial Technologies segment, and $ 1,339 and $ 1,336 for Corporate and Non-Operating, for the three months ended June 30, 2021 and 2020, respectively.
+Added: Depreciation and amortization was $ 72,700 and $ 65,274 for the SGK Brand Solutions segment, $ 17,016 and $ 15,024 for the Memorialization segment, $ 4,241 and $ 4,320 for the Industrial Technologies segment, and $ 3,962 and $ 3,800 for Corporate and Non-Operating, for the nine months ended June 30, 2021 and 2020, respectively.
+Added: ** Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 3,790 and $ 1,794 for the SGK Brand Solutions segment, $ 484 and $ 697 for the Memorialization segment, and $ 2,939 and $ 4,128 for Corporate and Non-Operating, for the three months ended June 30, 2021 and 2020, respectively.
+Added: Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 14,135 and $ 9,058 for the SGK Brand Solutions segment, $ 1,279 and $ 1,754 for the Memorialization segment, and $ 8,084 and $ 19,032 for Corporate and Non-Operating, for the nine months ended June 30, 2021 and 2020, respectively.
+Added: Acquisition costs, ERP integration costs, and strategic initiatives and other charges were $ 268 for the Industrial Technologies segment, for the nine months ended June 30, 2020.
+Added: In April 2021, the Company completed a small acquisition in the hydrogen fuel cell industry within the SGK Brand Solutions segment for a purchase price of $ 2,523 (net of cash acquired and holdback amounts).
+Added: The preliminary purchase price allocation is not finalized as of June 30, 2021 and is subject to changes as the Company finalizes the valuation of acquired intangible assets, and obtains additional information related to other assets and liabilities.
+Added: In January 2021, the Company acquired a memorialization business that produces and distributes cemetery products for a purchase price of $ 13,100 .
+Added: The preliminary purchase price allocation is not finalized as of June 30, 2021 and is subject to changes as the Company obtains additional information related to fixed assets, and other assets and liabilities.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
+Added: (Dollar amounts in thousands, except per share data)
Goodwill and Other Intangible Assets
2 unchanged sentences
Net goodwill at September 30, 2020
+Added: $ 311,737 $ 361,682 $ 91,969 $ 765,388
Additions during period — 4,775 — 4,775
Translation and other adjustments 8,662 689 861 10,212
−Removed: Net goodwill at March 31, 2021 $ 318,263 $ 366,850 $ 92,710 $ 777,823
−Removed: The net goodwill balances at March 31, 2021 and September 30, 2020 included $ 178,732 of accumulated impairment losses.
−Removed: Accumulated impairment losses at March 31, 2021 and September 30, 2020 were $ 173,732 and $ 5,000 for the SGK Brand Solutions and Memorialization segments, respectively.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued
−Removed: (Dollar amounts in thousands, except per share data)
−Removed: Goodwill and Other Intangible Assets (continued)
+Added: Net goodwill at June 30, 2021
+Added: $ 320,399 $ 367,146 $ 92,830 $ 780,375
+Added: The net goodwill balances at June 30, 2021 and September 30, 2020 included $ 178,732 of accumulated impairment losses.
+Added: Accumulated impairment losses at June 30, 2021 and September 30, 2020 were $ 173,732 and $ 5,000 for the SGK Brand Solutions and Memorialization segments, respectively.
The Company performed its annual impairment review of goodwill and indefinite-lived intangible assets in the second quarter of fiscal 2021 (January 1, 2021) and determined that the estimated fair values for all goodwill reporting units exceeded their carrying values, therefore no impairment charges were necessary.
1 unchanged sentence
If current projections are not achieved or specific valuation factors outside the Company’s control (such as discount rates and continued economic and industry impacts of COVID-19) significantly change, goodwill write-downs may be necessary in future periods.
−Removed: The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of March 31, 2021 and September 30, 2020, respectively.
+Added: The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of June 30, 2021 and September 30, 2020, respectively.
Amount Accumulated
Amortization Net
−Removed: March 31, 2021:
+Added: June 30, 2021:
Indefinite-lived trade names $ 30,540 $ — $ 30,540
9 unchanged sentences
$ 579,357 $ ( 245,859 ) $ 333,498
−Removed: The net change in intangible assets during the six months ended March 31, 2021 included the impact of foreign currency fluctuations during the period, additional amortization and additions related to a memorialization acquisition.
+Added: The net change in intangible assets during the nine months ended June 30, 2021 included the impact of foreign currency fluctuations during the period, additional amortization and additions related to fiscal 2021 acquisitions.
During the second quarter of fiscal 2021, the Company reassessed the useful lives for certain of its customer relationships.
As a result of this reassessment, the Company reduced the remaining useful lives for these customer relationships to reflect their estimated remaining duration, utilizing actual historical customer attrition rates.
−Removed: Amortization expense on intangible assets was $ 22,930 and $ 17,872 for the three-month periods ended March 31, 2021 and 2020, respectively.
−Removed: For the six month period ended March 31, 2021 and 2020, amortization expense was $ 38,151 and $ 35,814 , respectively.
+Added: Amortization expense on intangible assets was $ 23,039 and $ 17,825 for the three-month periods ended June 30, 2021 and 2020, respectively.
+Added: For the nine-month periods ended June 30, 2021 and 2020, amortization expense was $ 61,190 and $ 53,639 , respectively.
Amortization expense is estimated to be $ 22,948 for the remainder of fiscal 2021, $ 57,197 in 2022, $ 40,832 in 2023, $ 35,336 in 2024 and $ 20,182 in 2025.
The accelerated amortization related to the fiscal 2019 reduction in useful lives for certain discontinued trade names is scheduled to continue through the first quarter of fiscal 2022.
−Removed: Subsequent Event
−Removed: On April 20, 2021, subsequent to the date of the balance sheet, the Compensation Committee of the Company's Board of Directors approved a resolution to freeze all future benefit accruals for all participants in the Company’s supplemental retirement plan and the defined benefit portion of the officers retirement restoration plan, effective April 30, 2021.
−Removed: Consequently, participants in these plans will no longer earn additional benefits after April 30, 2021.
Management's Discussion and Analysis of Financial Condition and Results of Operations
15 unchanged sentences
SGK Brand Solutions, Memorialization and Industrial Technologies.
−Removed: The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, engineered products, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.
+Added: The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, engineered products (including energy solutions), imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.
The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, and cremation and incineration equipment primarily for the cemetery and funeral home industries.
11 unchanged sentences
Management does not allocate non-operating items such as investment income, other income (deductions), net and noncontrolling interest to the segments.
−Removed: The following table sets forth the sales and adjusted EBITDA for the Company's three reporting segments for the three and six-month periods ended March 31, 2021 and 2020.
+Added: The following table sets forth the sales and adjusted EBITDA for the Company's three reporting segments for the three and nine-month periods ended June 30, 2021 and 2020.
Refer to Note 13, "Segment Information" in Item 1 - "Financial Statements" for the Company's financial information by segment.
Three Months Ended
−Removed: March 31, Six Months Ended
+Added: June 30, Nine Months Ended
2021 2020 2021 2020
13 unchanged sentences
See the "Non-GAAP Financial Measures" section below.
−Removed: Sales for the six months ended March 31, 2021 were $803.8 million, compared to $739.7 million for the six months ended March 31, 2020, representing an increase of $64.1 million.
−Removed: The increase in fiscal 2021 sales primarily reflected higher sales in the Memorialization segment partially offset by lower sales in the SGK Brand Solutions segment.
+Added: Sales for the nine months ended June 30, 2021 were $1.23 billion, compared to $1.10 billion for the nine months ended June 30, 2020, representing an increase of $133.0 million.
+Added: The increase in fiscal 2021 sales reflected higher sales in all of the Company's segments.
Changes in foreign currency exchange rates were estimated to have a favorable impact of $27.4 million on fiscal 2021 consolidated sales compared to a year ago.
1 unchanged sentence
These impacts have included higher sales volumes for memorialization products and services, but have also included temporary business disruptions and customer project delays for certain of the Company's businesses.
−Removed: While substantially all of the Company's operations have remained open during the COVID-19 pandemic, management expects COVID-19 to continue to impact its sales and results of operations in the short-term until the pandemic subsides (see "Forward Looking Information" below).
−Removed: In the SGK Brand Solutions segment, sales for the first six months of fiscal 2021 were $339.2 million, compared to $347.7 million for the first six months of fiscal 2020.
−Removed: The decrease primarily resulted from lower retail-based sales (principally merchandising solutions and private label brand market sales), and reduced sales of cylinders and surfaces products, all of which continued to be unfavorably impacted by COVID-19.
−Removed: These decreases were partially offset by higher sales of purpose-built engineered products (primarily in support of the automobile and energy storage industries).
+Added: While substantially all of the Company's operations have remained open during the COVID-19 pandemic, management expects COVID-19 to continue to impact its sales and results of operations in the short-term as the pandemic subsides (see "Forward Looking Information" below).
+Added: In the SGK Brand Solutions segment, sales for the first nine months of fiscal 2021 were $538.9 million, compared to $513.5 million for the first nine months of fiscal 2020.
+Added: The increase primarily resulted from higher sales of purpose-built engineered products (primarily in support of the electric vehicle and energy storage industries) and higher brand sales in the Europe and Asia-Pacific markets.
+Added: These increases were partially offset by lower retail-based sales (principally merchandising solutions and private label brand market sales), decreased brand sales in the U.S., and reduced sales of surfaces products in Europe, all of which were unfavorably impacted by COVID-19.
Changes in foreign currency exchange rates had a favorable impact of $21.0 million on the segment's sales compared to the prior year.
−Removed: Memorialization segment sales for the first six months of fiscal 2021 were $388.7 million, compared to $316.2 million for the first six months of fiscal 2020.
+Added: Memorialization segment sales for the first nine months of fiscal 2021 were $573.1 million, compared to $478.3 million for the first nine months of fiscal 2020.
The increase in sales predominantly resulted from increased unit sales of caskets due to COVID-19.
2 unchanged sentences
Changes in foreign currency exchange rates had a favorable impact of $4.0 million on the segment's sales compared to the prior year.
−Removed: Industrial Technologies segment sales were $75.9 million for the first six months of fiscal 2021, compared to $75.8 million for the first six months of fiscal 2020.
−Removed: The sales increase primarily reflected a $1.4 million favorable impact from
+Added: Industrial Technologies segment sales were $120.2 million for the first nine months of fiscal 2021, compared to $107.3 million for the first nine months of fiscal 2020.
+Added: The sales increase primarily reflected higher sales of warehouse automation systems and increased product identification sales.
+Added: Changes in foreign currency exchange rates had a favorable impact of $2.4 million on the segment's sales compared to the prior year.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.