Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 24, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | Hillenbrand, Inc. | |
Entity Central Index Key | 1,417,398 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 62,529,606 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Statement [Abstract] | |||
Net revenue | [1] | $ 410.3 | $ 397.2 |
Cost of Goods and Services Sold | 263.3 | 251 | |
Gross profit | 147 | 146.2 | |
Operating expenses | 90.7 | 89.1 | |
Amortization of Intangible Assets | 7.8 | 7.6 | |
Interest expense | 5.5 | 6.3 | |
Other (expense) income, net | 0.5 | (0.4) | |
Income before income taxes | 43.5 | 42.8 | |
Income tax expense | 14.5 | 23.7 | |
Consolidated net income | 29 | 19.1 | |
Less: Net income attributable to noncontrolling interests | 0.7 | 1 | |
Total reclassifications for the period, net of tax | [2] | $ 28.3 | $ 18.1 |
Net income - per share of common stock: | |||
Basic earnings per share | $ 0.45 | $ 0.28 | |
Diluted earnings per share | $ 0.45 | $ 0.28 | |
Weighted average shares outstanding (basic) | 62.9 | 63.6 | |
Weighted average shares outstanding (diluted) | 63.5 | 64.1 | |
Cash dividends declared per share | $ 0.21 | $ 0.2075 | |
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. | ||
[2] | Net income attributable to Hillenbrand |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | $ 29 | $ 19.1 | |
Changes in other comprehensive income (loss), net of tax | |||
Currency translation adjustment | (4.9) | 6.3 | |
Pension and postretirement (net of tax of $0.1 and $0.3) | 0.2 | 0.7 | |
Change in net unrealized gain (loss) on derivative instruments (net of tax of $1.7 and $0.0) | (5.2) | (0.2) | |
Consolidated comprehensive income | 19.1 | 25.9 | |
Less: Comprehensive income attributable to noncontrolling interests | 0.9 | 1.1 | |
Comprehensive income (loss) | [1],[2] | $ 18.2 | $ 24.8 |
[1] | Comprehensive income attributable to Hillenbrand | ||
[2] | Comprehensive income attributable to Hillenbrand |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Pension and postretirement, tax | $ 0.1 | $ 0.3 |
Change in net unrealized gain (loss) on derivative instruments, tax | $ 1.7 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 64.8 | $ 56 |
Trade receivables, net | 190.5 | 218.5 |
Receivables from long-term manufacturing contracts | 134.2 | 120.3 |
Inventories | 182.3 | 172.5 |
Prepaid expenses | 24.5 | 25.2 |
Other current assets | 17.1 | 18.1 |
Total current assets | 613.4 | 610.6 |
Property, plant, and equipment, net | 140.2 | 142 |
Intangible assets, net | 490.6 | 487.3 |
Goodwill | 587.3 | 581.9 |
Other assets | 38.7 | 42.8 |
Total Assets | 1,870.2 | 1,864.6 |
Current Liabilities | ||
Trade accounts payable | 196 | 196.8 |
Liabilities from long-term manufacturing contracts and advances | 135.8 | 125.9 |
Current portion of long-term debt | 0 | 0 |
Accrued compensation | 53.5 | 71.9 |
Other current liabilities | 125.2 | 137.1 |
Total current liabilities | 510.5 | 531.7 |
Long-term debt | 364.8 | 344.6 |
Accrued pension and postretirement healthcare | 117.8 | 120.5 |
Deferred income taxes | 77.7 | 76.4 |
Other long-term liabilities | 52 | 47.3 |
Total Liabilities | 1,122.8 | 1,120.5 |
Commitments and contingencies (Note 14) | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, no par value (63.9 and 63.9 shares issued, 62.5 and 62.3 shares outstanding) | 0 | 0 |
Additional paid-in capital | 341.7 | 351.4 |
Retained earnings | 546.3 | 531 |
Treasury stock (1.4 and 1.6 shares) | (59.2) | (67.1) |
Accumulated other comprehensive loss | (94.3) | (84.2) |
Hillenbrand Shareholders’ Equity | 734.5 | 731.1 |
Noncontrolling interests | 12.9 | 13 |
Total Shareholders’ Equity | (747.4) | (744.1) |
Total Liabilities and Equity | $ 1,870.2 | $ 1,864.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | ||
Common stock, shares issued | 63,900,000 | 63,900,000 |
Common stock, shares outstanding | 62,500,000 | 62,300,000 |
Treasury stock, shares | 1,400,000 | 1,600,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | ||
Consolidated net income | $ 29 | $ 19.1 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 14.1 | 13.8 |
Deferred income taxes | 5.3 | (14.9) |
Trade accounts receivable and receivables from long-term manufacturing contracts | 15.7 | (20.4) |
Inventories | (8.9) | (14.3) |
Prepaid expenses and other current assets | 1.9 | 4.4 |
Trade accounts payable | (0.6) | (7.4) |
Accrued expenses and other current liabilities | (9.7) | 12.9 |
Income taxes payable | (12.1) | 32 |
Defined benefit plan and postretirement funding | (2.3) | (2.8) |
Defined benefit plan and postretirement expense | 0.8 | 1.1 |
Other, net | 0.4 | 1.1 |
Net cash provided by operating activities | 35.5 | 26.9 |
Investing Activities | ||
Capital expenditures | (3.6) | (5.6) |
Payments to Acquire Businesses, Net of Cash Acquired | (26.2) | 0 |
Net cash used in investing activities | (29.8) | (5.6) |
Financing Activities | ||
Repayments on term loan | 0 | (148.5) |
Proceeds from revolving credit facilities, net of financing costs | 160.2 | 371.8 |
Repayments on revolving credit facilities | (139.6) | (213) |
Payments of dividends on common stock | (13.1) | (13.1) |
Repurchases of common stock | 0 | (15.2) |
Net (payments) proceeds on stock plans | (3.8) | 2.6 |
Other, net | (0.9) | 2.8 |
Net cash provided by (used in) financing activities | 2.8 | (12.6) |
Effect of exchange rates on cash and cash equivalents | 0.3 | 2.9 |
Net cash flows | 8.8 | 11.6 |
Cash, cash equivalents, and restricted cash: | ||
At beginning of period | 56.5 | 66.7 |
At end of period | $ 65.3 | $ 78.3 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flow Cash, Cash Equivalents, and Restricted Cash - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 64.8 | $ 56 | $ 77.8 | |
Restricted cash and cash equivalents | 0.5 | 0.5 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 65.3 | $ 56.5 | $ 78.3 | $ 66.7 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity Statement - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock | AOCI Attributable to Parent [Member] | Noncontrolling Interests |
Balance at Sep. 30, 2017 | $ 765.9 | $ 349.9 | $ 507.1 | $ (24.4) | $ (81.2) | $ 14.5 | |
Balance, shares at Sep. 30, 2017 | 63,800,000 | 700,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other Comprehensive Income (Loss), Net of Tax | 6.8 | 6.7 | 0.1 | ||||
Consolidated net income | 19.1 | 18.1 | 1 | ||||
Common stock, shares issued | (100,000) | (300,000) | |||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | 2.6 | (8.3) | $ 10.9 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 2.3 | 2.3 | |||||
Treasury Stock, Shares, Acquired | 400,000 | ||||||
Treasury Stock, Value, Acquired, Cost Method | (15.2) | $ (15.2) | |||||
Dividends, Common Stock | (13) | (0.2) | (13.2) | 0 | |||
Balance at Dec. 31, 2017 | 768.5 | 344.1 | 512 | $ (28.7) | (74.5) | 15.6 | |
Balance, shares at Dec. 31, 2017 | 63,900,000 | 800,000 | |||||
Balance at Sep. 30, 2018 | 744.1 | 351.4 | 531 | $ (67.1) | (84.2) | 13 | |
Balance, shares at Sep. 30, 2018 | 63,900,000 | 1,600,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other Comprehensive Income (Loss), Net of Tax | (9.9) | (10.1) | 0.2 | ||||
Consolidated net income | 29 | 28.3 | 0.7 | ||||
Common stock, shares issued | 0 | (200,000) | |||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | (3.8) | (11.7) | $ 7.9 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 1.9 | 1.9 | |||||
Adjustment to retained earnings due to adoption of ASC606 | 0.2 | 0.2 | |||||
Treasury Stock, Shares, Acquired | 0 | ||||||
Treasury Stock, Value, Acquired, Cost Method | 0 | $ 0 | |||||
Dividends, Common Stock | (14.1) | (0.1) | (13.2) | (1) | |||
Balance at Dec. 31, 2018 | $ 747.4 | $ 341.7 | $ 546.3 | $ (59.2) | $ (94.3) | $ 12.9 | |
Balance, shares at Dec. 31, 2018 | 63,900,000 | 1,400,000 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Hillenbrand, Inc. (“Hillenbrand”) is a global diversified industrial company with multiple leading brands that serve a wide variety of industries around the world. We strive to provide superior return for our shareholders, exceptional value for our customers, great professional opportunities for our employees, and to be responsible to our communities through deployment of the Hillenbrand Operating Model (“HOM”). The HOM is a consistent and repeatable framework designed to produce sustainable and predictable results. The HOM describes our mission, vision, values, and mindset as leaders; applies our management practices in Strategy Management, Segmentation, Lean, Talent Development, and Acquisitions; and prescribes three steps (Understand, Focus, and Grow) designed to make our businesses both bigger and better. Our goal is to continue developing Hillenbrand as a world-class global diversified industrial company through the deployment of the HOM. Hillenbrand’s portfolio is composed of two business segments: the Process Equipment Group and Batesville ® . The Process Equipment Group businesses design, develop, manufacture, and service highly engineered industrial equipment around the world. Batesville is a recognized leader in the death care industry in North America. “Hillenbrand,” “the Company,” “we,” “us,” “our,” and similar words refer to Hillenbrand and its subsidiaries unless context otherwise requires. The accompanying unaudited consolidated financial statements include the accounts of Hillenbrand and its subsidiaries. They also include two subsidiaries where the Company’s ownership percentage is less than 100% . The Company’s fiscal year ends on September 30. Unless otherwise stated, references to years relate to fiscal years. These unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements and therefore do not include all information required in accordance with accounting principles generally accepted in the United States (“GAAP”). The unaudited consolidated financial statements have been prepared on the same basis as, and should be read in conjunction with, the audited consolidated financial statements and notes thereto included in our latest Annual Report on Form 10-K for the year ended September 30, 2018 , as filed with the SEC. The September 30, 2018 Consolidated Balance Sheet included in this Form 10-Q was derived from audited consolidated financial statements, but does not include all disclosures required by GAAP for a year-end balance sheet included in Form 10-K. In the opinion of management, these financial statements reflect all adjustments necessary to present a fair statement of the Company’s consolidated financial position and the consolidated results of operations and cash flow as of the dates and for the periods presented. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Examples of such estimates include, but are not limited to, revenue recognition under the percentage-of-completion method and the establishment of reserves related to customer rebates, doubtful accounts, warranties, early-pay discounts, inventories, income taxes, litigation, self-insurance, and progress toward achievement of performance criteria under incentive compensation programs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue recognition | Summary of Significant Accounting Policies The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for 2018 , except as described below. Recently Adopted Accounting Standards In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 was early adopted for our fiscal year beginning on October 1, 2018 on a prospective basis. The adoption of this standard did not have a significant impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 became effective and was adopted for our fiscal year beginning on October 1, 2018. The adoption of ASU 2016-18 had a financial statement presentation and disclosure impact only. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business . ASU 2017-01 assists entities in determining whether a transaction involves an asset or a business. Specifically, it states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If this initial test is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create output. ASU 2017-01 became effective and was adopted for our fiscal year beginning on October 1, 2018. The adoption of ASU 2017-01 did not have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 states that an employer must report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period and present the other components of net benefit cost (as defined in paragraphs 715-30-35-4 and 715-60-35-9) in the income statement separately from the service cost component and outside a subtotal of income from operations (if one is presented). In addition, ASU 2017-07 limits the capitalization of compensation costs to the service cost component only (if capitalization is appropriate). ASU 2017-07 became effective and was adopted for our fiscal year beginning on October 1, 2018. The adoption of this standard resulted in the reclassification of $0.1 credit from Cost of goods sold and $0.1 from Operating expenses to Other (expense) income, net, on the Consolidated Statements of Income for the quarter ended December 31, 2017. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications (in accordance with Topic 718). The new guidance will provide relief to entities that make non-substantive changes to share-based payment awards. ASU 2017-09 became effective and was adopted for our fiscal year beginning on October 1, 2018. The adoption of ASU 2017-09 did not have a significant impact on our consolidated financial statements. Beginning in 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”) , plus a number of related ASUs designed to clarify and interpret ASC 606. The new standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates than the previously effective standards. It also requires significant disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The new standard became effective for our fiscal year beginning on October 1, 2018 and was adopted on a modified retrospective basis. The Company elected the practical expedient and only evaluated contracts for which substantially all revenue had not been recognized under ASC Topic 605, with the cumulative effect of the new guidance recorded as of the date of initial application. The primary changes from the adoption of ASC 606 resulted from certain performance obligations that were previously recognized at a point in time that are now recognized over time. The cumulative effect of the changes made to the Consolidated Balance Sheet as of October 1, 2018 for the adoption of ASC 606 was as follows: Balance at September 30, 2018 Adjustments due to ASC 606 Balance at October 1, 2018 Assets Receivables from long-term manufacturing contracts $ 120.3 $ 1.9 $ 122.2 Inventories 172.5 (1.6 ) $ 170.9 Liabilities Deferred income taxes 76.4 0.1 76.5 Shareholders’ Equity Retained earnings 531.0 0.2 531.2 The following tables summarize the impacts of adopting ASC 606 on the Company’s consolidated financial statements for the quarter ended December 31, 2018. Consolidated Statement of Income: Three Months Ended December 31, 2018 As Reported Adjustments Due to ASC 606 Balances without Adoption Net revenue $ 410.3 $ (1.0 ) $ 409.3 Cost of goods sold 263.3 (0.9 ) 262.4 Gross profit 147.0 (0.1 ) 146.9 Operating expenses 90.7 — 90.7 Income before income taxes 43.5 (0.1 ) 43.4 Income tax expense 14.5 — 14.5 Consolidated net income $ 29.0 $ (0.1 ) $ 28.9 Consolidated Balance Sheet: December 31, 2018 As Reported Adjustments Due to ASC 606 Balances without Adoption Assets Receivables from long-term manufacturing contracts $ 134.2 $ (2.0 ) $ 132.2 Inventories 182.3 1.9 184.2 Shareholder’s Equity Retained earnings $ 546.3 $ (0.1 ) $ 546.2 The Company has elected the following as a result of adopting the new standard on revenue recognition: • Hillenbrand elected not to adjust the promised amount of consideration for the effects of the time value of money for contracts in which the anticipated period between when Hillenbrand transfers the goods or services to the customer and when the customer pays is equal to one year or less. • Hillenbrand elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities rather than as a promised service. • Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by the Company from a customer, are excluded from revenue. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 requires lessees to recognize a right of use asset and related lease liability for leases that have terms of more than twelve months. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance, with the classifications based on criteria that are similar to those applied under the current lease guidance, without the explicit bright lines. ASU 2016-02 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Statements. ASU 2016-13 replaces the current incurred loss impairment model with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. ASU 2016-13 will be effective for our fiscal year beginning on October 1, 2020, with early adoption permitted for our fiscal year beginning October 1, 2019. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Beginning in 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”) , plus a number of related ASUs designed to clarify and interpret ASC 606. The new standard requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates than the previously effective standards. It also requires significant disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The new standard became effective for our fiscal year beginning on October 1, 2018 and was adopted on a modified retrospective basis. The Company elected the practical expedient and only evaluated contracts for which substantially all revenue had not been recognized under ASC Topic 605, with the cumulative effect of the new guidance recorded as of the date of initial application. The primary changes from the adoption of ASC 606 resulted from certain performance obligations that were previously recognized at a point in time that are now recognized over time. The cumulative effect of the changes made to the Consolidated Balance Sheet as of October 1, 2018 for the adoption of ASC 606 was as follows: Balance at September 30, 2018 Adjustments due to ASC 606 Balance at October 1, 2018 Assets Receivables from long-term manufacturing contracts $ 120.3 $ 1.9 $ 122.2 Inventories 172.5 (1.6 ) $ 170.9 Liabilities Deferred income taxes 76.4 0.1 76.5 Shareholders’ Equity Retained earnings 531.0 0.2 531.2 The following tables summarize the impacts of adopting ASC 606 on the Company’s consolidated financial statements for the quarter ended December 31, 2018. Consolidated Statement of Income: Three Months Ended December 31, 2018 As Reported Adjustments Due to ASC 606 Balances without Adoption Net revenue $ 410.3 $ (1.0 ) $ 409.3 Cost of goods sold 263.3 (0.9 ) 262.4 Gross profit 147.0 (0.1 ) 146.9 Operating expenses 90.7 — 90.7 Income before income taxes 43.5 (0.1 ) 43.4 Income tax expense 14.5 — 14.5 Consolidated net income $ 29.0 $ (0.1 ) $ 28.9 Consolidated Balance Sheet: December 31, 2018 As Reported Adjustments Due to ASC 606 Balances without Adoption Assets Receivables from long-term manufacturing contracts $ 134.2 $ (2.0 ) $ 132.2 Inventories 182.3 1.9 184.2 Shareholder’s Equity Retained earnings $ 546.3 $ (0.1 ) $ 546.2 The Company has elected the following as a result of adopting the new standard on revenue recognition: • Hillenbrand elected not to adjust the promised amount of consideration for the effects of the time value of money for contracts in which the anticipated period between when Hillenbrand transfers the goods or services to the customer and when the customer pays is equal to one year or less. • Hillenbrand elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities rather than as a promised service. • Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by the Company from a customer, are excluded from revenue. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information December 31, September 30, Trade accounts receivable reserves $ 21.0 $ 22.2 Accumulated depreciation on property, plant, and equipment $ 308.2 $ 303.8 Inventories: Raw materials and components $ 71.5 $ 68.3 Work in process 47.1 44.7 Finished goods 63.7 59.5 Total inventories $ 182.3 $ 172.5 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Notes) | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Intangible Assets and Goodwill Intangible Assets The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2018 and September 30, 2018 . December 31, 2018 September 30, 2018 Cost Accumulated Amortization Cost Accumulated Amortization Finite-lived assets: Trade names $ 0.2 $ (0.2 ) $ 0.2 $ (0.2 ) Customer relationships 473.1 (153.9 ) 464.5 (148.4 ) Technology, including patents 79.1 (46.4 ) 79.6 (45.1 ) Software 58.2 (49.7 ) 58.0 (48.9 ) Other 2.5 (0.5 ) 0.2 (0.2 ) 613.1 (250.7 ) 602.5 (242.8 ) Indefinite-lived assets: Trade names 128.2 — 127.6 — Total $ 741.3 $ (250.7 ) $ 730.1 $ (242.8 ) The net change in intangible assets during the three months ended December 31, 2018 was driven primarily by the acquisition of BM&M in November 2018, which included intangible assets of approximately $14 , normal amortization, and foreign currency adjustments. See Note 4 for further detail on the acquisition of BM&M. Goodwill Goodwill is not amortized, but is subject to annual impairment tests. Goodwill has been assigned to reporting units. We assess the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment. Impairment testing is performed at a reporting unit level. Process Equipment Group Batesville Total Balance September 30, 2018 $ 573.6 $ 8.3 $ 581.9 Acquisition 8.8 — 8.8 Foreign currency adjustments (3.4 ) — (3.4 ) Balance December 31, 2018 $ 579.0 $ 8.3 $ 587.3 |
Financing Agreements
Financing Agreements | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements December 31, September 30, $900 revolving credit facility (excluding outstanding letters of credit) $ 115.8 $ 95.7 $150 senior unsecured notes, net of discount (1) 149.4 149.3 $100 Series A Notes (2) 99.6 99.6 Total debt 364.8 344.6 Less: current portion — — Total long-term debt $ 364.8 $ 344.6 (1) Includes debt issuance costs of $0.3 and $0.4 at December 31, 2018 and September 30, 2018. (2) Includes debt issuance costs of $0.4 and $0.4 at December 31, 2018 and September 30, 2018. With respect to the revolving credit facility, as of December 31, 2018 , we had $7.2 in outstanding letters of credit issued and $777.0 of maximum borrowing capacity. $757.0 of this borrowing capacity was immediately available based on our leverage covenant at December 31, 2018, with additional amounts available in the event of a qualifying acquisition. The weighted-average interest rates on borrowings under the Facility were 2.37% for the three months ended December 31, 2018 , and 1.44% for the same period in the prior year. The weighted average facility fee was 0.11% for the three months ended December 31, 2018 , and 0.21% for the same period in the prior year. We have employed derivative instruments to hedge the interest rate associated with $150.0 of ten-year, fixed-rate financing we expect to issue in the future. These derivative instruments terminate in December 2020, if not settled earlier in connection with the underlying future financing. In the normal course of business, the Process Equipment Group provides to certain customers bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations. This form of trade finance is customary in the industry and, as a result, we maintain adequate capacity to provide the guarantees. As of December 31, 2018 , we had credit arrangements totaling $293.8 , under which $226.4 was utilized, for this purpose. These arrangements include our €150.0 Syndicated Letter of Guarantee Facility (as amended, the “LG Facility”) and other ancillary credit facilities. The Facility, the LG Facility, and the Private Shelf Agreement, dated as of December 6, 2012, among the Company, Prudential Investment Management, Inc. and each Prudential Affiliate (as amended, the “Shelf Agreement”) (as defined therein), require us to meet certain conditions including compliance with covenants, absence of default, and continued accuracy of certain representations and warranties. Financial covenants include a maximum ratio of Indebtedness to EBITDA (as defined in the agreements, “Leverage Ratio”) of 3.5 to 1.0 including the application of cash as a reduction of Indebtedness (subject to certain limitations); a maximum Leverage Ratio resulting from an acquisition in excess of $75.0 of 4.0 to 1.0 for a period of three consecutive quarters following such acquisition; and a minimum ratio of EBITDA (as defined in the agreements) to interest expense of 3.0 to 1.0. As of December 31, 2018 , we were in compliance with all covenants. The Facility, senior unsecured notes, 4.60% Series A unsecured notes issued under the Shelf Agreement (“Series A Notes”), and LG Facility are fully and unconditionally, and jointly and severally, guaranteed by certain of the Company’s domestic subsidiaries. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Retirement Benefits | Retirement Benefits Defined Benefit Plans U.S. Pension Benefits Non-U.S. Pension Benefits Three Months Ended December 31, Three Months Ended December 31, 2018 2017 2018 2017 Service costs $ 0.6 $ 0.7 $ 0.3 $ 0.6 Interest costs 2.6 2.2 0.3 0.3 Expected return on plan assets (3.3 ) (3.5 ) (0.1 ) (0.2 ) Amortization of unrecognized prior service costs, net — — — — Amortization of net loss 0.2 0.8 0.2 0.2 Net pension costs $ 0.1 $ 0.2 $ 0.7 $ 0.9 Postretirement Healthcare Plans — Net postretirement healthcare costs were not significant for the three months ended December 31, 2018 and 2017 . Defined Contribution Plans — Expenses related to our defined contribution plans were $2.8 and $2.7 for the three months ended December 31, 2018 and 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the three months ended December 31, 2018 and 2017 were 33.3% and 55.4% . The decrease in the effective tax rate during the three months ended December 31, 2018 was primarily due the impact of the 2017 Tax Cuts and Jobs Act (“Tax Act”), partially offset by an increase in reserve for uncertain tax positions. T he Tax Act was enacted on December 22, 2017. The majority of the provisions of the Tax Act were to be effective for tax years beginning after December 31, 2017 (which corresponds to Hillenbrand’s fiscal year ended September 30, 2019). As a non-calendar year end company, certain of the provisions of the Tax Act were effective for us for the fiscal year ended September 30, 2018, while others became effective for our fiscal year ended September 30, 2019. The Tax Act reduced the federal corporate tax rate from 35% to 21%, which became effective on January 1, 2018. The Internal Revenue Code provides that our fiscal year ended September 30, 2018 had a blended U.S. corporate tax rate of 24.5%, which is based on a proration of the applicable tax rates before and after effective date of the Tax Act. The statutory tax rate of 21% applies to fiscal year ending September 30, 2019 and future years. Shortly after the Tax Act was enacted, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which provides guidance on accounting for the Tax Act’s impact. SAB 118 provides a measurement period, which in no case should extend beyond one year from the Tax Act enactment date, during which a company acting in good faith may complete the accounting for the impacts of the Tax Act under Accounting Standards Codification Topic 740 (“ASC 740”). Per SAB 118, the Company must reflect the income tax effects of the Tax Act in the reporting period in which the accounting under ASC 740 is complete. In accordance with SAB 118, to the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, the company can determine a reasonable estimate for those effects and record a provisional estimate in the financial statements in the first reporting period in which a reasonable estimate can be determined. If a company cannot determine a provisional estimate to be included in the financial statements, the company should continue to apply ASC 740 based on the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. The impact of the federal tax rate reduction under the Tax Act was recognized in the rate applied to earnings for the fiscal year ended September 30, 2018. The reduction for this period was from 35.0% to 24.5% . The further reduction of the federal tax rate to the statutory tax rate of 21% under the Tax Act is to be recognized in the rate applied to earnings for the fiscal year ending September 30, 2019. Furthermore, Hillenbrand is subject to a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries (the “Transition Tax”) as enacted pursuant to the Tax Act. This Transition Tax was imposed on the deferred accumulated earnings of foreign subsidiaries at an effective rate of 15.5% of foreign earnings attributable to cash and cash equivalents, and 8% of the residual foreign earnings. During the fiscal year ended September 30, 2018, we recorded a provisional net expense for the Transition Tax of $24.6 . During the quarter ended December 31, 2018, we completed our determination of the effect of the Transition Tax and, pursuant to SAB 118, we recognized a $0.5 increase to the Transition Tax liability, resulting in a Transition Tax liability of $25.1 . Hillenbrand elected to pay the Transition Tax over eight years and made the first installment payment of $2.0 during the quarter ended December 31, 2018. The remaining Transition Tax liability is included in other current liabilities ( $2.0 ) and other long-term liabilities ( $21.1 ) in the Consolidated Balance Sheet at December 31, 2018 . In connection with the Tax Act, we evaluated our future cash deployment needs and revised our permanent reinvestment assertions. While we continue to assert permanent reinvestment for the earnings of certain of our foreign subsidiaries, we have recognized an additional $1.3 of deferred tax liability associated with those foreign subsidiaries where we no longer maintain a permanent reinvestment assertion. As noted above, the enactment dates for many of the provisions within the Tax Act were for tax years beginning after December 31, 2017, and as a result, certain provisions were not effective until our current fiscal year ending September 30, 2019. These provisions have been incorporated into the current period tax provision, and include recognizing global intangible low-taxed income and foreign derived intangible income, eliminating U.S. federal income taxes on dividends from foreign subsidiaries, eliminating the domestic production activity deduction, limiting the amount of deductible interest expense, limiting the use of foreign tax credits to reduce the U.S. income tax liability, and limiting the deduction of executive compensation, as well as other provisions. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The dilutive effects of performance-based stock awards were included in the computation of diluted earnings per share at the level the related performance criteria were met through the respective balance sheet date. At December 31, 2018 and 2017 , potential dilutive effects, representing approximately 400,000 shares at each period, were excluded from the computation of diluted earnings per share as the related performance criteria were not yet met, although we expect to meet various levels of criteria in the future. Three Months Ended 2018 2017 Net income(1) $ 28.3 $ 18.1 Weighted average shares outstanding (basic - in millions) 62.9 63.6 Effect of dilutive stock options and other unvested equity awards (in millions) 0.6 0.5 Weighted average shares outstanding (diluted - in millions) 63.5 64.1 Basic earnings per share $ 0.45 $ 0.28 Diluted earnings per share $ 0.45 $ 0.28 Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions) 0.7 0.2 (1) Net income attributable to Hillenbrand |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of reclassifications of AOCI | Other Comprehensive Income (Loss) Pension and Postretirement Currency Translation Net Unrealized Gain (Loss) on Derivative Instruments Total Attributable to Hillenbrand, Inc. Noncontrolling Interests Total Balance at September 30, 2017 $ (45.3 ) $ (36.9 ) $ 1.0 $ (81.2 ) Other comprehensive income before reclassifications Before tax amount — 6.2 0.2 6.4 $ 0.1 $ 6.5 Tax expense — — (0.1 ) (0.1 ) — (0.1 ) After tax amount — 6.2 0.1 6.3 0.1 6.4 Amounts reclassified from accumulated other comprehensive income(1) 0.7 — (0.3 ) 0.4 — 0.4 Net current period other comprehensive income (loss) 0.7 6.2 (0.2 ) 6.7 $ 0.1 $ 6.8 Balance at December 31, 2017 $ (44.6 ) $ (30.7 ) $ 0.8 $ (74.5 ) (1) Amounts are net of tax. Pension and Postretirement Currency Translation Net Unrealized Gain (Loss) on Derivative Instruments Total Attributable to Hillenbrand, Inc. Noncontrolling Interests Total Balance at September 30, 2018 $ (41.0 ) $ (44.1 ) $ 0.9 $ (84.2 ) Other comprehensive income before reclassifications Before tax amount — (5.1 ) (6.8 ) (11.9 ) $ 0.2 $ (11.7 ) Tax expense — — 1.6 1.6 — 1.6 After tax amount — (5.1 ) (5.2 ) (10.3 ) 0.2 (10.1 ) Amounts reclassified from accumulated other comprehensive income(1) 0.2 — — 0.2 — 0.2 Net current period other comprehensive income (loss) 0.2 (5.1 ) (5.2 ) (10.1 ) $ 0.2 $ (9.9 ) Balance at December 31, 2018 $ (40.8 ) $ (49.2 ) $ (4.3 ) $ (94.3 ) (1) Amounts are net of tax. Reclassifications out of Accumulated Other Comprehensive Income include: Three Months Ended December 31, 2017 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ (0.4 ) $ (0.4 ) Cost of goods sold — — — — Operating expenses — — — — Other income (expense), net 1.1 — — 1.1 Total before tax $ 1.1 $ — $ (0.4 ) $ 0.7 Tax expense (0.3 ) Total reclassifications for the period, net of tax $ 0.4 Three Months Ended December 31, 2018 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ 0.1 $ 0.1 Cost of goods sold — — (0.1 ) (0.1 ) Operating expenses — — — — Other income (expense), net 0.3 — — 0.3 Total before tax $ 0.3 $ — $ — $ 0.3 Tax expense (0.1 ) Total reclassifications for the period, net of tax $ 0.2 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 8). Reclassifications out of Accumulated Other Comprehensive Income include: Three Months Ended December 31, 2017 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ (0.4 ) $ (0.4 ) Cost of goods sold — — — — Operating expenses — — — — Other income (expense), net 1.1 — — 1.1 Total before tax $ 1.1 $ — $ (0.4 ) $ 0.7 Tax expense (0.3 ) Total reclassifications for the period, net of tax $ 0.4 Three Months Ended December 31, 2018 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ 0.1 $ 0.1 Cost of goods sold — — (0.1 ) (0.1 ) Operating expenses — — — — Other income (expense), net 0.3 — — 0.3 Total before tax $ 0.3 $ — $ — $ 0.3 Tax expense (0.1 ) Total reclassifications for the period, net of tax $ 0.2 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 8). |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Share-Based Compensation | Share-Based Compensation Three Months Ended 2018 2017 Share-based compensation costs $ 1.9 $ 2.3 Less impact of income tax benefit 0.4 0.6 Share-based compensation costs, net of tax $ 1.5 $ 1.7 We have share-based compensation with long-term performance-based metrics that are contingent upon our relative total shareholder return and the creation of shareholder value. Relative total shareholder return is determined by comparing our total shareholder return during a three-year period to the respective total shareholder returns of companies in a designated performance peer group. Creation of shareholder value is measured by the cumulative cash returns and final period net operating profit after tax compared to the established hurdle rate over a three -year period. For the performance-based awards contingent upon the creation of shareholder value, compensation expense is adjusted each quarter based upon actual results to date and any changes to forecasted information on each of the separate grants. During the three months ended December 31, 2018 , we made the following grants: Number of Units Stock options 426,821 Time-based stock awards 23,058 Performance-based stock awards (maximum that can be earned) 330,446 Stock options granted during fiscal 2019 had a weighted-average exercise price of $41.32 and a weighted-average grant date fair value of $10.16 . Our time-based stock awards and performance-based stock awards granted during the first quarter of fiscal 2019 had weighted-average grant date fair values of $41.31 and $41.77 . Included in the performance-based stock awards granted during the first quarter of fiscal 2019 are 179,957 units whose payout level is based upon the Company’s relative total shareholder return over the three -year measurement period, as described above. These units will be expensed on a straight-line basis over the measurement period and are not subsequently adjusted after the grant date. |
Other Income (Expense), Net
Other Income (Expense), Net | 3 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income and Other Expense | Other Income (Expense), Net Three Months Ended 2018 2017 Equity in net income (loss) of affiliates $ (0.1 ) $ — Foreign currency exchange gain (loss), net 0.4 (0.3 ) Other, net 0.2 (0.1 ) Other income (expense), net $ 0.5 $ (0.4 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Like most companies, we are involved from time to time in claims, lawsuits, and government proceedings relating to our operations, including environmental, patent infringement, business practices, commercial transactions, product and general liability, workers’ compensation, auto liability, employment, and other matters. The ultimate outcome of these matters cannot be predicted with certainty. An estimated loss from these contingencies is recognized when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated; however, it is difficult to measure the actual loss that might be incurred related these matters. If a loss is not considered probable and/or cannot be reasonably estimated, we are required to make a disclosure if there is at least a reasonable possibility that a significant loss may have been incurred. Legal fees associated with claims and lawsuits are generally expensed as incurred. Claims covered by insurance have in most instances deductibles and self-funded retentions up to $0.5 per occurrence or per claim, depending upon the type of coverage and policy period. For auto, workers compensation, and general liability, outside insurance companies and third-party claims administrators generally assist in establishing individual claim reserves. An independent outside actuary provides estimates of ultimate projected losses, including incurred but not reported claims, which are used to establish reserves for losses. For all other types of claims, reserves are established based upon advice from internal and external counsel and historical settlement information for claims when such amounts are considered probable of payment. The recorded amounts represent our best estimate of the costs we will incur in relation to such exposures, but it is possible that actual costs will differ from those estimates. Aldrees Litigation In April 2016, Hamad M. Aldrees & Partners Holding Co. for Industry and Mining (Closed Joint Company) (“Aldrees”) filed a lawsuit against Company subsidiary Rotex Europe Limited (“Rotex”) in the High Court of Justice, Queen’s Bench Division, Technology and Construction Court in London, England (the “Aldrees Litigation”). The Aldrees Litigation arises as a result of an agreement made in 2010 for Rotex to supply, among other things, five mineral separating machines. Aldrees has alleged breach of contract and misrepresentation by Rotex and is seeking damages of approximately £38.5 . The Company is defending this matter vigorously. The trial concluded in the third quarter of fiscal 2018. A final result has not been announced, but we expect such result in the coming months. The Company does not believe that the outcome of this lawsuit will have a material adverse effect on the Company’s financial statements. If Aldrees prevails at trial, however, the outcome could be materially adverse to the Company’s financial statements for the particular period, depending, in part, upon the operating results or cash flows for such period. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability, developed based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels: Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable for the asset or liability. Carrying Value at Fair Value at December 31, 2018 2018 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 64.8 $ 64.8 $ — $ — Investments in rabbi trust 4.6 4.6 — — Derivative instruments 1.5 — 1.5 — Liabilities: $150 senior unsecured notes 149.7 153.6 — — Revolving credit facility 115.8 — 115.8 — $100 Series A Notes 100.0 — 100.8 — Derivative instruments 7.5 — 7.5 — The fair value of the amounts outstanding under the revolving credit facility approximated carrying value at December 31, 2018 . The fair values of the revolving credit facility and Series A Notes were estimated based on internally developed models, using current market interest rate data for similar issues, as there is no active market for our revolving credit facility or Series A Notes. The fair values of the Company’s derivative instruments were based upon pricing models using inputs derived from third-party pricing services or observable market data such as currency spot and forward rates. These values are periodically validated by comparing to third-party broker quotes. The aggregate notional value of derivatives was $283.1 at December 31, 2018 . The derivatives are included in Other current assets, Other current liabilities, and Other long-term liabilities on the Consolidated Balance Sheets. |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information Three Months Ended December 31, 2018 2017 Net revenue Process Equipment Group $ 282.2 $ 264.3 Batesville 128.1 132.9 Total $ 410.3 $ 397.2 Adjusted EBITDA Process Equipment Group $ 46.2 $ 45.6 Batesville 26.7 27.9 Corporate (8.8 ) (8.3 ) Net revenue (1) United States $ 214.8 $ 218.8 Germany 111.3 110.4 All other foreign business units 84.2 68.0 Total $ 410.3 $ 397.2 (1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. December 31, September 30, Total assets assigned Process Equipment Group $ 1,649.5 $ 1,638.8 Batesville 187.8 191.8 Corporate 32.9 34.0 Total $ 1,870.2 $ 1,864.6 Tangible long-lived assets, net United States $ 75.5 $ 76.6 Germany 39.7 40.7 All other foreign business units 25.0 24.7 Total $ 140.2 $ 142.0 The following schedule reconciles segment adjusted EBITDA to consolidated net income. Three Months Ended 2018 2017 Adjusted EBITDA: Process Equipment Group $ 46.2 $ 45.6 Batesville 26.7 27.9 Corporate (8.8 ) (8.3 ) Less: Interest income (0.2 ) (0.5 ) Interest expense 5.5 6.3 Income tax expense 14.5 23.7 Depreciation and amortization 14.1 13.8 Business acquisition, development, and integration 0.6 2.3 Restructuring and restructuring related 0.5 0.5 Inventory step-up 0.1 — Consolidated net income $ 29.0 $ 19.1 |
Condensed Consolidating Informa
Condensed Consolidating Information | 3 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Information | Condensed Consolidating Information Certain 100% owned domestic subsidiaries of Hillenbrand fully and unconditionally, jointly and severally, agreed to guarantee all of the indebtedness and guarantee obligations relating to our obligations under our senior unsecured notes. The following are the condensed consolidating financial statements, including the guarantors, which present the statements of income, balance sheets, and cash flows of (i) the parent holding company, (ii) the guarantor subsidiaries, (iii) the non-guarantor subsidiaries, and (iv) eliminations necessary to present the information for Hillenbrand on a consolidated basis. Condensed Consolidating Statements of Income Three Months Ended December 31, 2018 Three Months Ended December 31, 2017 Parent Guarantors Non- Guarantors Eliminations Consolidated Parent Guarantors Non- Guarantors Eliminations Consolidated Net revenue $ — $ 216.1 $ 247.8 $ (53.6 ) $ 410.3 $ — $ 218.2 $ 229.1 $ (50.1 ) $ 397.2 Cost of goods sold — 115.8 174.4 (26.9 ) 263.3 — 115.1 160.1 (24.2 ) 251.0 Gross profit — 100.3 73.4 (26.7 ) 147.0 — 103.1 69.0 (25.9 ) 146.2 Operating expenses 10.2 61.4 45.8 (26.7 ) 90.7 10.9 61.6 42.5 (25.9 ) 89.1 Amortization expense — 3.3 4.5 — 7.8 — 3.5 4.1 — 7.6 Interest expense 4.5 — 1.0 — 5.5 5.8 — 0.5 — 6.3 Other income (expense), net (0.3 ) — 0.8 — 0.5 (0.3 ) 0.5 (0.6 ) — (0.4 ) Equity in net income (loss) of subsidiaries 42.0 2.2 — (44.2 ) — 37.4 1.4 — (38.8 ) — Income (loss) before income taxes 27.0 37.8 22.9 (44.2 ) 43.5 20.4 39.9 21.3 (38.8 ) 42.8 Income tax expense (benefit) (1.3 ) 9.9 5.9 — 14.5 2.3 15.5 5.9 — 23.7 Consolidated net income (loss) 28.3 27.9 17.0 (44.2 ) 29.0 18.1 24.4 15.4 (38.8 ) 19.1 Less: Net income attributable to noncontrolling interests — — 0.7 — 0.7 — — 1.0 — 1.0 Net income (loss) (1) $ 28.3 $ 27.9 $ 16.3 $ (44.2 ) $ 28.3 $ 18.1 $ 24.4 $ 14.4 $ (38.8 ) $ 18.1 Consolidated comprehensive income (loss) $ 18.2 $ 27.8 $ 11.8 $ (38.7 ) $ 19.1 $ 24.8 $ 24.9 $ 21.3 $ (45.1 ) $ 25.9 Less: Comprehensive income attributable to noncontrolling interests — — 0.9 — 0.9 — — 1.1 — 1.1 Comprehensive income (loss) (2) $ 18.2 $ 27.8 $ 10.9 $ (38.7 ) $ 18.2 $ 24.8 $ 24.9 $ 20.2 $ (45.1 ) $ 24.8 (1) Net income attributable to Hillenbrand (2) Comprehensive income attributable to Hillenbrand Condensed Consolidating Balance Sheets December 31, 2018 September 30, 2018 Parent Guarantors Non- Guarantors Eliminations Consolidated Parent Guarantors Non- Guarantors Eliminations Consolidated Cash and cash equivalents $ 0.4 $ 4.2 $ 60.2 $ — $ 64.8 $ 1.1 $ 5.8 $ 49.1 $ — $ 56.0 Trade receivables, net — 109.4 81.1 — 190.5 — 124.5 94.0 — 218.5 Receivables from long-term manufacturing contracts — 6.4 127.8 — 134.2 — 5.3 115.0 — 120.3 Inventories — 83.3 102.0 (3.0 ) 182.3 — 76.7 98.6 (2.8 ) 172.5 Prepaid expense 3.4 7.2 13.9 — 24.5 2.7 7.0 15.5 — 25.2 Intercompany receivables — 1,196.5 54.3 (1,250.8 ) — — 1,131.1 79.1 (1,210.2 ) — Other current assets — 2.6 14.1 0.4 17.1 — 3.2 14.6 0.3 18.1 Total current assets 3.8 1,409.6 453.4 (1,253.4 ) 613.4 3.8 1,353.6 465.9 (1,212.7 ) 610.6 Property, plant and equipment, net 3.8 59.7 76.7 — 140.2 3.8 60.2 78.0 — 142.0 Intangible assets, net 2.9 192.4 295.3 — 490.6 3.2 196.0 288.1 — 487.3 Goodwill — 225.0 362.3 — 587.3 — 225.0 356.9 — 581.9 Investment in consolidated subsidiaries 2,331.9 668.0 — (2,999.9 ) — 2,263.1 653.9 — (2,917.0 ) — Other assets 29.9 26.7 2.4 (20.3 ) 38.7 15.7 28.2 5.9 (7.0 ) 42.8 Total Assets $ 2,372.3 $ 2,581.4 $ 1,190.1 $ (4,273.6 ) $ 1,870.2 $ 2,289.6 $ 2,516.9 $ 1,194.8 $ (4,136.7 ) $ 1,864.6 Trade accounts payable $ 2.0 $ 60.6 $ 133.4 $ — $ 196.0 $ — $ 62.4 $ 134.4 $ — $ 196.8 Liabilities from long-term manufacturing contracts and advances — 31.2 104.6 — 135.8 — 26.6 99.3 — 125.9 Current portion of long-term debt — — — — — — — — — — Accrued compensation 2.1 14.8 36.6 — 53.5 7.2 20.1 44.6 — 71.9 Intercompany payables 1,249.6 4.2 — (1,253.8 ) — 1,206.2 6.1 — (1,212.3 ) — Other current liabilities 21.0 52.8 63.6 (12.2 ) 125.2 19.4 38.9 78.1 0.7 137.1 Total current liabilities 1,274.7 163.6 338.2 (1,266.0 ) 510.5 1,232.8 154.1 356.4 (1,211.6 ) 531.7 Long-term debt 334.0 — 30.8 — 364.8 300.2 — 44.4 — 344.6 Accrued pension and postretirement healthcare 0.7 29.4 87.7 — 117.8 0.7 29.8 90.0 — 120.5 Deferred income taxes — 25.5 59.9 (7.7 ) 77.7 0.7 22.9 60.9 (8.1 ) 76.4 Other long-term liabilities 28.4 14.7 8.9 — 52.0 24.1 14.3 8.9 — 47.3 Total Liabilities 1,637.8 233.2 525.5 (1,273.7 ) 1,122.8 1,558.5 221.1 560.6 (1,219.7 ) 1,120.5 Total Hillenbrand Shareholders’ Equity 734.5 2,348.2 651.7 (2,999.9 ) 734.5 731.1 2,295.8 621.2 (2,917.0 ) 731.1 Noncontrolling interests — — 12.9 — 12.9 — — 13.0 — 13.0 Total Equity 734.5 2,348.2 664.6 (2,999.9 ) 747.4 731.1 2,295.8 634.2 (2,917.0 ) 744.1 Total Liabilities and Equity $ 2,372.3 $ 2,581.4 $ 1,190.1 $ (4,273.6 ) $ 1,870.2 $ 2,289.6 $ 2,516.9 $ 1,194.8 $ (4,136.7 ) $ 1,864.6 Condensed Consolidating Statements of Cash Flow Three Months Ended December 31, 2018 Three Months Ended December 31, 2017 Parent Guarantors Non- Guarantors Eliminations Consolidated Parent Guarantors Non- Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ (17.5 ) $ 0.1 $ 52.9 $ — $ 35.5 $ 17.2 $ 5.4 $ 4.3 $ — $ 26.9 Investing activities: Capital expenditures — (1.7 ) (1.9 ) — (3.6 ) (1.0 ) (3.0 ) (1.6 ) — (5.6 ) Acquisition of business, net of cash acquired — — (26.2 ) — (26.2 ) — — — — — Net cash used in investing activities — (1.7 ) (28.1 ) — (29.8 ) (1.0 ) (3.0 ) (1.6 ) — (5.6 ) Financing activities: Repayments on term loan — — — — — (148.5 ) — — — (148.5 ) Proceeds from revolving credit facilities, net of financing costs 106.0 — 54.2 — 160.2 264.7 — 107.1 — 371.8 Repayments on revolving credit facilities (72.3 ) — (67.3 ) — (139.6 ) (106.0 ) — (107.0 ) — (213.0 ) Payment of dividends on common stock (13.1 ) — — — (13.1 ) (13.1 ) — — — (13.1 ) Repurchases of common stock — — — — — (15.2 ) — — — (15.2 ) Net proceeds on stock plans (3.8 ) — — — (3.8 ) 2.6 — — — 2.6 Other, net — — (0.9 ) — (0.9 ) — — 2.8 — 2.8 Net cash (used in) provided by financing activities 16.8 — (14.0 ) — 2.8 (15.5 ) — 2.9 — (12.6 ) Effect of exchange rates on cash and cash equivalents — — 0.3 — 0.3 — — 2.9 — 2.9 Net cash flow (0.7 ) (1.6 ) 11.1 — 8.8 0.7 2.4 8.5 — 11.6 Cash, cash equivalents and restricted cash at beginning of period 1.1 5.8 49.6 — 56.5 0.1 5.0 61.6 — 66.7 Cash, cash equivalents and restricted cash at end of period $ 0.4 $ 4.2 $ 60.7 $ — $ 65.3 $ 0.8 $ 7.4 $ 70.1 $ — $ 78.3 |
Restructuring
Restructuring | 3 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The following schedule details the restructuring charges by segment and the classification of those charges on the income statement. Three Months Ended December 31, 2018 Three Months Ended December 31, 2017 Cost of goods sold Operating expenses Total Cost of goods sold Operating expenses Total Process Equipment Group $ 0.2 $ 0.1 $ 0.3 $ — $ 0.2 $ 0.2 Batesville 0.1 0.1 0.2 — — — Corporate — — — — (0.1 ) (0.1 ) Total $ 0.3 $ 0.2 $ 0.5 $ — $ 0.1 $ 0.1 The charges related primarily to severance costs. At December 31, 2018 , $ 1.2 of restructuring costs were accrued and expected to be paid in 2019 . |
Revenue Recognition ASU 2014-09
Revenue Recognition ASU 2014-09 Transition (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
ASU 2014-09 Transition [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | 3. Revenue Recognition We adopted ASC 606, Revenue from Contracts with Customers , on October 1, 2018. As a result, we have changed our accounting policy for revenue recognition as detailed below. Net revenue includes gross revenue less sales discounts, customer rebates, sales incentives, and product returns, all of which require us to make estimates for the portion of these allowances that have yet to be credited or paid to our customers. We estimate these allowances using the expected value method, which is based upon historical rates and projections of customer purchases toward contractual rebate thresholds. |
Revenue Recognition, Percentage-of-Completion Method [Policy Text Block] | Performance Obligations & Contract Estimates The Process Equipment Group designs, engineers, manufactures, markets, and services differentiated process and material handling equipment and systems for a wide variety of industries. A large portion of our revenue across the Process Equipment Group is derived from manufactured equipment, which may be standard, customized to meet customer specifications, or turnkey. Our contracts with customers in the Process Equipment Group segment often include multiple performance obligations. Performance obligations are promises in a contract to transfer a distinct good or service to the customer, and are the basis for determining how revenue is recognized. For instance, a contract may include obligations to deliver equipment, installation services, and spare parts. We frequently have contracts for which the equipment and the installation services, as well as highly engineered or specialized spare parts, are all considered a single performance obligation, as in these instances the installation services and/or spare parts are not separately identifiable. However, due to the varying nature of equipment and contracts across the Process Equipment Group, we also have contracts where the installation services and/or spare parts are deemed to be separately identifiable and are therefore deemed to be distinct performance obligations. A contract’s transaction price is allocated to each distinct performance obligation based on its respective stand-alone selling price, and recognized as revenue when, or as, the performance obligation is satisfied. When a distinct performance obligation is not sold separately, the value of the standalone selling price is estimated considering all reasonably available information. When an obligation is distinct, as defined in ASC 606, we allocate a portion of the contract price to the obligation and recognize it separately from the other performance obligations. The timing of revenue recognition for each performance obligation is either over time or at a point in time. We recognize revenue over time for contracts that have an enforceable right to collect payment upon customer cancellation and provide one or more of the following: (i) service over a period of time, (ii) highly customized equipment, or (iii) parts which are highly engineered and have no alternative use. Revenue generated from standard equipment and highly customized equipment or parts contracts without an enforceable right to payment for performance completed to-date, as well as non-specialized parts sales and death care products, is recognized at a point in time. We use the input method of “cost-to-cost” to recognize revenue over time. Accounting for these contracts involves management judgment in estimating total contract revenue and cost. Contract revenues are largely determined by negotiated contract prices and quantities, modified by our assumptions regarding contract options, change orders, and incentive and award provisions associated with technical performance clauses. Contract costs are incurred over longer periods of time and, accordingly, the estimation of these costs requires judgment. We measure progress based on costs incurred to date relative to total estimated cost at completion. Incurred cost represents work performed, which corresponds with, and we believe thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, and certain overhead expenses. Cost estimates are based on various assumptions to project the outcome of future events, including labor productivity and availability, the complexity of the work to be performed, the cost of materials, and the performance of subcontractors. Significant factors that influence these estimates include inflationary trends, technical and schedule risk, internal and subcontractor performance trends, business volume assumptions, asset utilization, and anticipated labor agreements. Revenue and cost estimates are regularly monitored and revised based on changes in circumstances. Anticipated losses on long-term contracts are recognized immediately when such losses become evident. We maintain financial controls over the customer qualification, contract pricing, and estimation processes to reduce the risk of contract losses. Stand-alone service revenue is recognized either over time proportionately over the period of the underlying contract or as invoiced, depending on the terms of the arrangement. Stand-alone service revenue is not material to the Company. For the Process Equipment Group and Batesville segments, for products where revenue is recognized at a point in time, we recognized it when our customers take control of the asset. We define this as the point in time at which the customer has the capability of full beneficial use of the asset as intended per the contract. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Contract balances In the Process Equipment Group segment, the Company requires an advance deposit based on the terms and conditions of contracts with customers for many of its contracts. Payment terms generally require an upfront payment at the start of the contract, and the remaining payments during the contract or within a certain number of days of delivery. Typically, revenue is recognized within one year of receiving an advance deposit. For contracts where an advance payment is received greater than one year from expected revenue recognition, or a portion of the payment due extends beyond one year, the Company has determined it does not constitute a significant financing component. The timing of revenue recognition, billings, and cash collections can result in customer receivables, advance payments, and billings in excess of revenue recognized. Customer receivables include amounts billed and currently due from customers and are included in Trade receivables, net, as well as unbilled amounts (contract assets) which are included in Receivables from long-term manufacturing contracts on our Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms or as work progresses in accordance with contractual terms. Unbilled amounts arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require specific milestones to be met before a customer can be billed. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is used and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Trade receivables are recorded at face amounts and represent the amounts we believe to be collectible. The Company maintains allowances for doubtful accounts for estimated losses as a result of customers’ inability to make required payments. Management evaluates the aging of the customer receivable balances, the financial condition of its customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future, and records the appropriate provision. Advance payments and billings in excess of revenue recognized are included in Liabilities from long-term manufacturing contracts and advances on our Consolidated Balance Sheets. Advance payments and billings in excess of revenue recognized represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Billings in excess of revenue recognized primarily relate to performance obligations satisfied over time when the cost-to-cost method is used and revenue cannot yet be recognized as the Company has not completed the corresponding performance obligation. Contract liabilities are derecognized when revenue is recognized and the performance obligation is satisfied. The balance in Receivables from long-term manufacturing contracts at December 31, 2018 and September 30, 2018 was $134.2 and $120.3 . The change was driven by the adoption of ASC 606 ( $2.0 ) and the impact of net revenue recognized prior to billings ( $11.9 ). The balance in the Liabilities from long-term manufacturing contracts and advances at December 31, 2018 and September 30, 2018 was $135.8 and $125.9 , and consists primarily of cash payments received or due in advance of satisfying our performance obligations. The revenue recognized for the three months ended December 31, 2018 related to Liabilities from long-term manufacturing contracts and advances as of September 30, 2018 was $78.0 . During the three months ended December 31, 2018, the adjustments related to performance obligations satisfied in previous periods were immaterial. Costs incurred to obtain a customer contract are not material to the Company. The Company elected to apply the practical expedient to not capitalize contract costs to obtain contracts with a duration of one year or less, which are expensed as incurred. Transaction price allocated to the remaining performance obligations As of December 31, 2018, the aggregate amount of transaction price of remaining performance obligations, which corresponds to backlog as defined in Item 2 of this Form 10-Q, for the Company was $ 946.4 . Approximately 78% of these obligations are expected to be satisfied over the next twelve months, and the remaining performance obligations, primarily within one to three years. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of revenue Three Months Ended December 31, 2018 Process Equipment Group Batesville Total Revenue by End Market Plastics $ 160.9 $ — $ 160.9 Chemicals 29.6 — 29.6 Food & Pharmaceuticals 16.5 — 16.5 Minerals & Mining 28.0 — 28.0 Water & Wastewater 9.5 — 9.5 Death Care — 128.1 128.1 Other 37.7 — 37.7 Total $ 282.2 $ 128.1 $ 410.3 Three Months Ended December 31, 2018 Process Equipment Group Batesville Total Products and Services Equipment $ 183.4 $ — $ 183.4 Parts and Services 98.8 — 98.8 Death Care — 128.1 128.1 Total $ 282.2 $ 128.1 $ 410.3 Three Months Ended December 31, 2018 Process Equipment Group Batesville Total Timing of Transfer Point in Time $ 163.7 $ 128.1 $ 291.8 Over Time 118.5 — 118.5 Total $ 282.2 $ 128.1 $ 410.3 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of supplemental balance sheet information | December 31, September 30, Trade accounts receivable reserves $ 21.0 $ 22.2 Accumulated depreciation on property, plant, and equipment $ 308.2 $ 303.8 Inventories: Raw materials and components $ 71.5 $ 68.3 Work in process 47.1 44.7 Finished goods 63.7 59.5 Total inventories $ 182.3 $ 172.5 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Schedule of Intangible Assets [Line Items] | |
Schedule of Intangible Assets [Table Text Block] | December 31, 2018 September 30, 2018 Cost Accumulated Amortization Cost Accumulated Amortization Finite-lived assets: Trade names $ 0.2 $ (0.2 ) $ 0.2 $ (0.2 ) Customer relationships 473.1 (153.9 ) 464.5 (148.4 ) Technology, including patents 79.1 (46.4 ) 79.6 (45.1 ) Software 58.2 (49.7 ) 58.0 (48.9 ) Other 2.5 (0.5 ) 0.2 (0.2 ) 613.1 (250.7 ) 602.5 (242.8 ) Indefinite-lived assets: Trade names 128.2 — 127.6 — Total $ 741.3 $ (250.7 ) $ 730.1 $ (242.8 ) |
Schedule of Goodwill [Table Text Block] | Process Equipment Group Batesville Total Balance September 30, 2018 $ 573.6 $ 8.3 $ 581.9 Acquisition 8.8 — 8.8 Foreign currency adjustments (3.4 ) — (3.4 ) Balance December 31, 2018 $ 579.0 $ 8.3 $ 587.3 |
Financing Agreements (Tables)
Financing Agreements (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings under financing agreements | Financing Agreements December 31, September 30, $900 revolving credit facility (excluding outstanding letters of credit) $ 115.8 $ 95.7 $150 senior unsecured notes, net of discount (1) 149.4 149.3 $100 Series A Notes (2) 99.6 99.6 Total debt 364.8 344.6 Less: current portion — — Total long-term debt $ 364.8 $ 344.6 (1) Includes debt issuance costs of $0.3 and $0.4 at December 31, 2018 and September 30, 2018. (2) Includes debt issuance costs of $0.4 and $0.4 at December 31, 2018 and September 30, 2018. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Components of net pension costs | U.S. Pension Benefits Non-U.S. Pension Benefits Three Months Ended December 31, Three Months Ended December 31, 2018 2017 2018 2017 Service costs $ 0.6 $ 0.7 $ 0.3 $ 0.6 Interest costs 2.6 2.2 0.3 0.3 Expected return on plan assets (3.3 ) (3.5 ) (0.1 ) (0.2 ) Amortization of unrecognized prior service costs, net — — — — Amortization of net loss 0.2 0.8 0.2 0.2 Net pension costs $ 0.1 $ 0.2 $ 0.7 $ 0.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended 2018 2017 Net income(1) $ 28.3 $ 18.1 Weighted average shares outstanding (basic - in millions) 62.9 63.6 Effect of dilutive stock options and other unvested equity awards (in millions) 0.6 0.5 Weighted average shares outstanding (diluted - in millions) 63.5 64.1 Basic earnings per share $ 0.45 $ 0.28 Diluted earnings per share $ 0.45 $ 0.28 Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions) 0.7 0.2 (1) Net income attributable to Hillenbrand |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Pension and Postretirement Currency Translation Net Unrealized Gain (Loss) on Derivative Instruments Total Attributable to Hillenbrand, Inc. Noncontrolling Interests Total Balance at September 30, 2017 $ (45.3 ) $ (36.9 ) $ 1.0 $ (81.2 ) Other comprehensive income before reclassifications Before tax amount — 6.2 0.2 6.4 $ 0.1 $ 6.5 Tax expense — — (0.1 ) (0.1 ) — (0.1 ) After tax amount — 6.2 0.1 6.3 0.1 6.4 Amounts reclassified from accumulated other comprehensive income(1) 0.7 — (0.3 ) 0.4 — 0.4 Net current period other comprehensive income (loss) 0.7 6.2 (0.2 ) 6.7 $ 0.1 $ 6.8 Balance at December 31, 2017 $ (44.6 ) $ (30.7 ) $ 0.8 $ (74.5 ) (1) Amounts are net of tax. Pension and Postretirement Currency Translation Net Unrealized Gain (Loss) on Derivative Instruments Total Attributable to Hillenbrand, Inc. Noncontrolling Interests Total Balance at September 30, 2018 $ (41.0 ) $ (44.1 ) $ 0.9 $ (84.2 ) Other comprehensive income before reclassifications Before tax amount — (5.1 ) (6.8 ) (11.9 ) $ 0.2 $ (11.7 ) Tax expense — — 1.6 1.6 — 1.6 After tax amount — (5.1 ) (5.2 ) (10.3 ) 0.2 (10.1 ) Amounts reclassified from accumulated other comprehensive income(1) 0.2 — — 0.2 — 0.2 Net current period other comprehensive income (loss) 0.2 (5.1 ) (5.2 ) (10.1 ) $ 0.2 $ (9.9 ) Balance at December 31, 2018 $ (40.8 ) $ (49.2 ) $ (4.3 ) $ (94.3 ) (1) Amounts are net of tax. |
Schedule of reclassifications of AOCI | Other Comprehensive Income (Loss) Pension and Postretirement Currency Translation Net Unrealized Gain (Loss) on Derivative Instruments Total Attributable to Hillenbrand, Inc. Noncontrolling Interests Total Balance at September 30, 2017 $ (45.3 ) $ (36.9 ) $ 1.0 $ (81.2 ) Other comprehensive income before reclassifications Before tax amount — 6.2 0.2 6.4 $ 0.1 $ 6.5 Tax expense — — (0.1 ) (0.1 ) — (0.1 ) After tax amount — 6.2 0.1 6.3 0.1 6.4 Amounts reclassified from accumulated other comprehensive income(1) 0.7 — (0.3 ) 0.4 — 0.4 Net current period other comprehensive income (loss) 0.7 6.2 (0.2 ) 6.7 $ 0.1 $ 6.8 Balance at December 31, 2017 $ (44.6 ) $ (30.7 ) $ 0.8 $ (74.5 ) (1) Amounts are net of tax. Pension and Postretirement Currency Translation Net Unrealized Gain (Loss) on Derivative Instruments Total Attributable to Hillenbrand, Inc. Noncontrolling Interests Total Balance at September 30, 2018 $ (41.0 ) $ (44.1 ) $ 0.9 $ (84.2 ) Other comprehensive income before reclassifications Before tax amount — (5.1 ) (6.8 ) (11.9 ) $ 0.2 $ (11.7 ) Tax expense — — 1.6 1.6 — 1.6 After tax amount — (5.1 ) (5.2 ) (10.3 ) 0.2 (10.1 ) Amounts reclassified from accumulated other comprehensive income(1) 0.2 — — 0.2 — 0.2 Net current period other comprehensive income (loss) 0.2 (5.1 ) (5.2 ) (10.1 ) $ 0.2 $ (9.9 ) Balance at December 31, 2018 $ (40.8 ) $ (49.2 ) $ (4.3 ) $ (94.3 ) (1) Amounts are net of tax. Reclassifications out of Accumulated Other Comprehensive Income include: Three Months Ended December 31, 2017 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ (0.4 ) $ (0.4 ) Cost of goods sold — — — — Operating expenses — — — — Other income (expense), net 1.1 — — 1.1 Total before tax $ 1.1 $ — $ (0.4 ) $ 0.7 Tax expense (0.3 ) Total reclassifications for the period, net of tax $ 0.4 Three Months Ended December 31, 2018 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ 0.1 $ 0.1 Cost of goods sold — — (0.1 ) (0.1 ) Operating expenses — — — — Other income (expense), net 0.3 — — 0.3 Total before tax $ 0.3 $ — $ — $ 0.3 Tax expense (0.1 ) Total reclassifications for the period, net of tax $ 0.2 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 8). Reclassifications out of Accumulated Other Comprehensive Income include: Three Months Ended December 31, 2017 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ (0.4 ) $ (0.4 ) Cost of goods sold — — — — Operating expenses — — — — Other income (expense), net 1.1 — — 1.1 Total before tax $ 1.1 $ — $ (0.4 ) $ 0.7 Tax expense (0.3 ) Total reclassifications for the period, net of tax $ 0.4 Three Months Ended December 31, 2018 Amortization of Pension and Postretirement (1) (Gain)/Loss on Net Loss Recognized Prior Service Costs Recognized Derivative Instruments Total Affected Line in the Consolidated Statement of Operations: Net revenue $ — $ — $ 0.1 $ 0.1 Cost of goods sold — — (0.1 ) (0.1 ) Operating expenses — — — — Other income (expense), net 0.3 — — 0.3 Total before tax $ 0.3 $ — $ — $ 0.3 Tax expense (0.1 ) Total reclassifications for the period, net of tax $ 0.2 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 8). |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Schedule of stock-based compensation costs | Three Months Ended 2018 2017 Share-based compensation costs $ 1.9 $ 2.3 Less impact of income tax benefit 0.4 0.6 Share-based compensation costs, net of tax $ 1.5 $ 1.7 |
Schedule of stock-based awards granted in the period | During the three months ended December 31, 2018 , we made the following grants: Number of Units Stock options 426,821 Time-based stock awards 23,058 Performance-based stock awards (maximum that can be earned) 330,446 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other income and expense | Three Months Ended 2018 2017 Equity in net income (loss) of affiliates $ (0.1 ) $ — Foreign currency exchange gain (loss), net 0.4 (0.3 ) Other, net 0.2 (0.1 ) Other income (expense), net $ 0.5 $ (0.4 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities at carrying value and fair value and the level within the fair value hierarchy | Carrying Value at Fair Value at December 31, 2018 2018 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 64.8 $ 64.8 $ — $ — Investments in rabbi trust 4.6 4.6 — — Derivative instruments 1.5 — 1.5 — Liabilities: $150 senior unsecured notes 149.7 153.6 — — Revolving credit facility 115.8 — 115.8 — $100 Series A Notes 100.0 — 100.8 — Derivative instruments 7.5 — 7.5 — |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of net revenue, adjusted EBITDA, and depreciation and amortization by segment and geographic location | Three Months Ended December 31, 2018 2017 Net revenue Process Equipment Group $ 282.2 $ 264.3 Batesville 128.1 132.9 Total $ 410.3 $ 397.2 Adjusted EBITDA Process Equipment Group $ 46.2 $ 45.6 Batesville 26.7 27.9 Corporate (8.8 ) (8.3 ) Net revenue (1) United States $ 214.8 $ 218.8 Germany 111.3 110.4 All other foreign business units 84.2 68.0 Total $ 410.3 $ 397.2 (1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | December 31, September 30, Total assets assigned Process Equipment Group $ 1,649.5 $ 1,638.8 Batesville 187.8 191.8 Corporate 32.9 34.0 Total $ 1,870.2 $ 1,864.6 Tangible long-lived assets, net United States $ 75.5 $ 76.6 Germany 39.7 40.7 All other foreign business units 25.0 24.7 Total $ 140.2 $ 142.0 |
Schedule of reconciliation of segment adjusted EBITDA to consolidated net income | The following schedule reconciles segment adjusted EBITDA to consolidated net income. Three Months Ended 2018 2017 Adjusted EBITDA: Process Equipment Group $ 46.2 $ 45.6 Batesville 26.7 27.9 Corporate (8.8 ) (8.3 ) Less: Interest income (0.2 ) (0.5 ) Interest expense 5.5 6.3 Income tax expense 14.5 23.7 Depreciation and amortization 14.1 13.8 Business acquisition, development, and integration 0.6 2.3 Restructuring and restructuring related 0.5 0.5 Inventory step-up 0.1 — Consolidated net income $ 29.0 $ 19.1 |
Condensed Consolidating Infor_2
Condensed Consolidating Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed consolidating statements of income | Three Months Ended December 31, 2018 Three Months Ended December 31, 2017 Parent Guarantors Non- Guarantors Eliminations Consolidated Parent Guarantors Non- Guarantors Eliminations Consolidated Net revenue $ — $ 216.1 $ 247.8 $ (53.6 ) $ 410.3 $ — $ 218.2 $ 229.1 $ (50.1 ) $ 397.2 Cost of goods sold — 115.8 174.4 (26.9 ) 263.3 — 115.1 160.1 (24.2 ) 251.0 Gross profit — 100.3 73.4 (26.7 ) 147.0 — 103.1 69.0 (25.9 ) 146.2 Operating expenses 10.2 61.4 45.8 (26.7 ) 90.7 10.9 61.6 42.5 (25.9 ) 89.1 Amortization expense — 3.3 4.5 — 7.8 — 3.5 4.1 — 7.6 Interest expense 4.5 — 1.0 — 5.5 5.8 — 0.5 — 6.3 Other income (expense), net (0.3 ) — 0.8 — 0.5 (0.3 ) 0.5 (0.6 ) — (0.4 ) Equity in net income (loss) of subsidiaries 42.0 2.2 — (44.2 ) — 37.4 1.4 — (38.8 ) — Income (loss) before income taxes 27.0 37.8 22.9 (44.2 ) 43.5 20.4 39.9 21.3 (38.8 ) 42.8 Income tax expense (benefit) (1.3 ) 9.9 5.9 — 14.5 2.3 15.5 5.9 — 23.7 Consolidated net income (loss) 28.3 27.9 17.0 (44.2 ) 29.0 18.1 24.4 15.4 (38.8 ) 19.1 Less: Net income attributable to noncontrolling interests — — 0.7 — 0.7 — — 1.0 — 1.0 Net income (loss) (1) $ 28.3 $ 27.9 $ 16.3 $ (44.2 ) $ 28.3 $ 18.1 $ 24.4 $ 14.4 $ (38.8 ) $ 18.1 Consolidated comprehensive income (loss) $ 18.2 $ 27.8 $ 11.8 $ (38.7 ) $ 19.1 $ 24.8 $ 24.9 $ 21.3 $ (45.1 ) $ 25.9 Less: Comprehensive income attributable to noncontrolling interests — — 0.9 — 0.9 — — 1.1 — 1.1 Comprehensive income (loss) (2) $ 18.2 $ 27.8 $ 10.9 $ (38.7 ) $ 18.2 $ 24.8 $ 24.9 $ 20.2 $ (45.1 ) $ 24.8 (1) Net income attributable to Hillenbrand (2) Comprehensive income attributable to Hillenbrand |
Schedule of condensed consolidating balance sheets | December 31, 2018 September 30, 2018 Parent Guarantors Non- Guarantors Eliminations Consolidated Parent Guarantors Non- Guarantors Eliminations Consolidated Cash and cash equivalents $ 0.4 $ 4.2 $ 60.2 $ — $ 64.8 $ 1.1 $ 5.8 $ 49.1 $ — $ 56.0 Trade receivables, net — 109.4 81.1 — 190.5 — 124.5 94.0 — 218.5 Receivables from long-term manufacturing contracts — 6.4 127.8 — 134.2 — 5.3 115.0 — 120.3 Inventories — 83.3 102.0 (3.0 ) 182.3 — 76.7 98.6 (2.8 ) 172.5 Prepaid expense 3.4 7.2 13.9 — 24.5 2.7 7.0 15.5 — 25.2 Intercompany receivables — 1,196.5 54.3 (1,250.8 ) — — 1,131.1 79.1 (1,210.2 ) — Other current assets — 2.6 14.1 0.4 17.1 — 3.2 14.6 0.3 18.1 Total current assets 3.8 1,409.6 453.4 (1,253.4 ) 613.4 3.8 1,353.6 465.9 (1,212.7 ) 610.6 Property, plant and equipment, net 3.8 59.7 76.7 — 140.2 3.8 60.2 78.0 — 142.0 Intangible assets, net 2.9 192.4 295.3 — 490.6 3.2 196.0 288.1 — 487.3 Goodwill — 225.0 362.3 — 587.3 — 225.0 356.9 — 581.9 Investment in consolidated subsidiaries 2,331.9 668.0 — (2,999.9 ) — 2,263.1 653.9 — (2,917.0 ) — Other assets 29.9 26.7 2.4 (20.3 ) 38.7 15.7 28.2 5.9 (7.0 ) 42.8 Total Assets $ 2,372.3 $ 2,581.4 $ 1,190.1 $ (4,273.6 ) $ 1,870.2 $ 2,289.6 $ 2,516.9 $ 1,194.8 $ (4,136.7 ) $ 1,864.6 Trade accounts payable $ 2.0 $ 60.6 $ 133.4 $ — $ 196.0 $ — $ 62.4 $ 134.4 $ — $ 196.8 Liabilities from long-term manufacturing contracts and advances — 31.2 104.6 — 135.8 — 26.6 99.3 — 125.9 Current portion of long-term debt — — — — — — — — — — Accrued compensation 2.1 14.8 36.6 — 53.5 7.2 20.1 44.6 — 71.9 Intercompany payables 1,249.6 4.2 — (1,253.8 ) — 1,206.2 6.1 — (1,212.3 ) — Other current liabilities 21.0 52.8 63.6 (12.2 ) 125.2 19.4 38.9 78.1 0.7 137.1 Total current liabilities 1,274.7 163.6 338.2 (1,266.0 ) 510.5 1,232.8 154.1 356.4 (1,211.6 ) 531.7 Long-term debt 334.0 — 30.8 — 364.8 300.2 — 44.4 — 344.6 Accrued pension and postretirement healthcare 0.7 29.4 87.7 — 117.8 0.7 29.8 90.0 — 120.5 Deferred income taxes — 25.5 59.9 (7.7 ) 77.7 0.7 22.9 60.9 (8.1 ) 76.4 Other long-term liabilities 28.4 14.7 8.9 — 52.0 24.1 14.3 8.9 — 47.3 Total Liabilities 1,637.8 233.2 525.5 (1,273.7 ) 1,122.8 1,558.5 221.1 560.6 (1,219.7 ) 1,120.5 Total Hillenbrand Shareholders’ Equity 734.5 2,348.2 651.7 (2,999.9 ) 734.5 731.1 2,295.8 621.2 (2,917.0 ) 731.1 Noncontrolling interests — — 12.9 — 12.9 — — 13.0 — 13.0 Total Equity 734.5 2,348.2 664.6 (2,999.9 ) 747.4 731.1 2,295.8 634.2 (2,917.0 ) 744.1 Total Liabilities and Equity $ 2,372.3 $ 2,581.4 $ 1,190.1 $ (4,273.6 ) $ 1,870.2 $ 2,289.6 $ 2,516.9 $ 1,194.8 $ (4,136.7 ) $ 1,864.6 |
Schedule of condensed consolidating statements of cash flows | Three Months Ended December 31, 2018 Three Months Ended December 31, 2017 Parent Guarantors Non- Guarantors Eliminations Consolidated Parent Guarantors Non- Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ (17.5 ) $ 0.1 $ 52.9 $ — $ 35.5 $ 17.2 $ 5.4 $ 4.3 $ — $ 26.9 Investing activities: Capital expenditures — (1.7 ) (1.9 ) — (3.6 ) (1.0 ) (3.0 ) (1.6 ) — (5.6 ) Acquisition of business, net of cash acquired — — (26.2 ) — (26.2 ) — — — — — Net cash used in investing activities — (1.7 ) (28.1 ) — (29.8 ) (1.0 ) (3.0 ) (1.6 ) — (5.6 ) Financing activities: Repayments on term loan — — — — — (148.5 ) — — — (148.5 ) Proceeds from revolving credit facilities, net of financing costs 106.0 — 54.2 — 160.2 264.7 — 107.1 — 371.8 Repayments on revolving credit facilities (72.3 ) — (67.3 ) — (139.6 ) (106.0 ) — (107.0 ) — (213.0 ) Payment of dividends on common stock (13.1 ) — — — (13.1 ) (13.1 ) — — — (13.1 ) Repurchases of common stock — — — — — (15.2 ) — — — (15.2 ) Net proceeds on stock plans (3.8 ) — — — (3.8 ) 2.6 — — — 2.6 Other, net — — (0.9 ) — (0.9 ) — — 2.8 — 2.8 Net cash (used in) provided by financing activities 16.8 — (14.0 ) — 2.8 (15.5 ) — 2.9 — (12.6 ) Effect of exchange rates on cash and cash equivalents — — 0.3 — 0.3 — — 2.9 — 2.9 Net cash flow (0.7 ) (1.6 ) 11.1 — 8.8 0.7 2.4 8.5 — 11.6 Cash, cash equivalents and restricted cash at beginning of period 1.1 5.8 49.6 — 56.5 0.1 5.0 61.6 — 66.7 Cash, cash equivalents and restricted cash at end of period $ 0.4 $ 4.2 $ 60.7 $ — $ 65.3 $ 0.8 $ 7.4 $ 70.1 $ — $ 78.3 |
Restructuring Schedule of restr
Restructuring Schedule of restructuring charges by line and segment (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following schedule details the restructuring charges by segment and the classification of those charges on the income statement. Three Months Ended December 31, 2018 Three Months Ended December 31, 2017 Cost of goods sold Operating expenses Total Cost of goods sold Operating expenses Total Process Equipment Group $ 0.2 $ 0.1 $ 0.3 $ — $ 0.2 $ 0.2 Batesville 0.1 0.1 0.2 — — — Corporate — — — — (0.1 ) (0.1 ) Total $ 0.3 $ 0.2 $ 0.5 $ — $ 0.1 $ 0.1 |
Background and Basis of Prese_2
Background and Basis of Presentation - Narrative (Details) | 3 Months Ended |
Dec. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Acquired entity subsidiary investments owned percent | 100.00% |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables from long-term manufacturing contracts | $ 134.2 | $ 122.2 | $ 120.3 |
Inventories | 182.3 | 170.9 | 172.5 |
Deferred income taxes | 77.7 | 76.5 | 76.4 |
Retained earnings | 546.3 | 531.2 | 531 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables from long-term manufacturing contracts | (2) | 1.9 | |
Inventories | 1.9 | (1.6) | |
Deferred income taxes | 0.1 | ||
Retained earnings | (0.1) | $ 0.2 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables from long-term manufacturing contracts | 132.2 | 120.3 | |
Inventories | 184.2 | 172.5 | |
Deferred income taxes | 76.4 | ||
Retained earnings | $ 546.2 | $ 531 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Revenue Recognition - Impact on Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net revenue | [1] | $ 410.3 | $ 397.2 |
Cost of Goods and Services Sold | 263.3 | 251 | |
Gross profit | 147 | 146.2 | |
Operating expenses | 90.7 | 89.1 | |
Income before income taxes | 43.5 | 42.8 | |
Income tax expense | 14.5 | 23.7 | |
Consolidated net income | 29 | $ 19.1 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net revenue | (1) | ||
Cost of Goods and Services Sold | (0.9) | ||
Gross profit | (0.1) | ||
Operating expenses | 0 | ||
Income before income taxes | (0.1) | ||
Income tax expense | 0 | ||
Consolidated net income | (0.1) | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net revenue | 409.3 | ||
Cost of Goods and Services Sold | 262.4 | ||
Gross profit | 146.9 | ||
Operating expenses | 90.7 | ||
Income before income taxes | 43.4 | ||
Income tax expense | 14.5 | ||
Consolidated net income | $ 28.9 | ||
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Improving the Presentation of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
2017 Periodic Pension Cost Restatement | $ 0.2 | |
Accounting Standards Update 2017-07 [Member] | Cost of Goods, Total [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
2017 Periodic Pension Cost Restatement | $ (0.1) | |
Accounting Standards Update 2017-07 [Member] | Operating expense | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
2017 Periodic Pension Cost Restatement | $ 0.1 |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Receivables from long-term manufacturing contracts | $ 134,200,000 | $ 122,200,000 | $ 120,300,000 |
Increase (Decrease) in Contract with Customer, Asset | 2 | ||
Contract with Customer Asset Increase in Revenue | 11.9 | ||
Contract with Customer, Liability | 135,800,000 | $ 125,900,000 | |
Contract with Customer, Liability, Revenue Recognized | 78 | ||
Revenue, Remaining Performance Obligation, Amount | $ 946,363,000 | ||
Revenue, Remaining Performance Obligation, Percentage | 78.00% |
Revenue Recognition Revenue by
Revenue Recognition Revenue by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Net revenue | [1] | $ 410.3 | $ 397.2 |
Plastics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 160.9 | ||
Chemicals [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 29.6 | ||
Food & Pharmaceuticals [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 16.5 | ||
Minerals & Mining [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 28 | ||
Water & Wastewater [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 9.5 | ||
Death Care [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 128.1 | ||
Other End Markets [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 37.7 | ||
Process Equipment Group | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 282.2 | ||
Process Equipment Group | Plastics [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 160.9 | ||
Process Equipment Group | Chemicals [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 29.6 | ||
Process Equipment Group | Food & Pharmaceuticals [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 16.5 | ||
Process Equipment Group | Minerals & Mining [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 28 | ||
Process Equipment Group | Water & Wastewater [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 9.5 | ||
Process Equipment Group | Other End Markets [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 37.7 | ||
Batesville | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 128.1 | $ 132.9 | |
Batesville | Death Care [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 128.1 | ||
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. |
Revenue Recognition Product and
Revenue Recognition Product and Services (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Net revenue | [1] | $ 410.3 | $ 397.2 |
Equipment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 183.4 | ||
Replacement Parts [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 98.8 | ||
Death Care [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 128.1 | ||
Process Equipment Group | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 282.2 | ||
Process Equipment Group | Equipment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 183.4 | ||
Process Equipment Group | Replacement Parts [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 98.8 | ||
Batesville | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 128.1 | $ 132.9 | |
Batesville | Death Care [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 128.1 | ||
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. |
Revenue Recognition Timing of T
Revenue Recognition Timing of Transfer (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Net revenue | [1] | $ 410.3 | $ 397.2 |
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 118.5 | ||
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 291.8 | ||
Process Equipment Group | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 282.2 | ||
Process Equipment Group | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 118.5 | ||
Process Equipment Group | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 163.7 | ||
Batesville | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 128.1 | $ 132.9 | |
Batesville | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 128.1 | ||
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Burnaby Machine & Mill Equipment Ltd. [Member] | |
Business Acquisition [Line Items] | |
Payments to Acquire Businesses, Gross | $ 26.2 |
Goodwill, Acquired During Period | 9 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 14 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 3 |
$900 revolving credit facility (excluding outstanding letters of credit) | |
Business Acquisition [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 757 |
Trade Names [Member] | Burnaby Machine & Mill Equipment Ltd. [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1 |
Order or Production Backlog [Member] | Burnaby Machine & Mill Equipment Ltd. [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2 |
Customer Relationships [Member] | Burnaby Machine & Mill Equipment Ltd. [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 11 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Schedule of supplemental balance sheet information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||||
Restricted cash and cash equivalents | $ 0.5 | $ 0.5 | ||
Trade accounts receivable reserves | 21 | $ 22.2 | ||
Accumulated depreciation on property, plant, and equipment | 308.2 | 303.8 | ||
Inventories: | ||||
Raw materials and components | 71.5 | 68.3 | ||
Work in process | 47.1 | 44.7 | ||
Finished goods | 63.7 | 59.5 | ||
Total inventories | $ 182.3 | $ 170.9 | $ 172.5 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 613.1 | $ 602.5 |
Finite-Lived Intangible Assets, Accumulated Amortization | 250.7 | 242.8 |
Intangible Assets, Gross (Excluding Goodwill) | 741.3 | 730.1 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 128.2 | 127.6 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 0.2 | 0.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0.2 | 0.2 |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 473.1 | 464.5 |
Finite-Lived Intangible Assets, Accumulated Amortization | 153.9 | 148.4 |
Technology-Based Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 79.1 | 79.6 |
Finite-Lived Intangible Assets, Accumulated Amortization | 46.4 | 45.1 |
Computer Software, Intangible Asset [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 58.2 | 58 |
Finite-Lived Intangible Assets, Accumulated Amortization | 49.7 | 48.9 |
Other Intangible Assets [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2.5 | 0.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0.5 | $ 0.2 |
Burnaby Machine & Mill Equipment Ltd. [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 14 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Goodwill [Line Items] | ||
Goodwill | $ 587.3 | $ 581.9 |
Goodwill, Purchase Accounting Adjustments | 8.8 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (3.4) | |
Process Equipment Group | ||
Goodwill [Line Items] | ||
Goodwill | 579 | 573.6 |
Goodwill, Purchase Accounting Adjustments | 8.8 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (3.4) | |
Batesville Services Inc [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 8.3 | $ 8.3 |
Goodwill, Purchase Accounting Adjustments | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | $ 0 |
Financing Agreements - Schedule
Financing Agreements - Schedule of borrowings (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017 | Sep. 30, 2018USD ($) | Dec. 15, 2014 | |
Financing Agreements | ||||
Total debt | $ 364.8 | $ 344.6 | ||
Less: current portion | 0 | 0 | ||
Long-term debt | $ 364.8 | $ 344.6 | ||
Debt Instrument, Covenant Holiday, Maximum Ratio of Indebtedness to Earnings before Interest, Taxes, Depreciation, and Amortization | 3.5 | |||
$900 revolving credit facility (excluding outstanding letters of credit) | ||||
Financing Agreements | ||||
Debt Instrument, Interest Rate During Period | 2.37% | 1.44% | ||
Total debt | $ 115.8 | $ 95.7 | ||
$150 senior unsecured notes, net of discount (1) | ||||
Financing Agreements | ||||
Total debt | 149.4 | 149.3 | ||
$100 Series A Notes (2) | ||||
Financing Agreements | ||||
Total debt | $ 99.6 | $ 99.6 | ||
Stated interest rate | 4.60% |
Financing Agreements - Narrativ
Financing Agreements - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 15, 2014 | |
Debt instrument [Line Items] | |||||
Maximum ratio of Indebtedness to EBITDA allowed | 3.5 | ||||
LeverageHolidayBusinessAcquisition | 75 | ||||
Debt Instrument, Covenant Terms, Minimum Ratio of Earnings before Interest, Taxes, Depreciation, and Amortization to Interest Expense | 3 | ||||
Restricted cash and cash equivalents | $ 0.5 | $ 0.5 | |||
$900 revolving credit facility (excluding outstanding letters of credit) | |||||
Debt instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 757 | ||||
Letters of Credit Outstanding, Amount | 7.2 | ||||
Line of credit facility, remaining borrowing capacity | $ 777 | ||||
Weighted average interest rates | 2.37% | 1.44% | |||
Weighted average facility fee | 0.11% | 0.21% | |||
$150 senior unsecured notes, net of discount (1) | |||||
Debt instrument [Line Items] | |||||
Debt Issuance Costs, Net | $ 0.3 | $ 0.4 | |||
Other Financing Agreements | |||||
Debt instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 293.8 | ||||
Line of credit facility, amount utilized for bank guarantees | 226.4 | ||||
$100 Series A Notes (2) | |||||
Debt instrument [Line Items] | |||||
Stated interest rate | 4.60% | ||||
Debt Issuance Costs, Net | 0.4 | $ 0.4 | |||
Syndicated credit facility | |||||
Debt instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | € | € 150 | ||||
Foreign Exchange Forward [Member] | Cash flow hedging | |||||
Debt instrument [Line Items] | |||||
Derivative, notional amount | $ 150 | ||||
Maximum | |||||
Debt instrument [Line Items] | |||||
Debt Instrument, Covenant Holiday, Maximum Ratio of Indebtedness to Earnings before Interest, Taxes, Depreciation, and Amortization | 4 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | $ 0.3 | $ 0.6 |
Interest costs | 0.3 | 0.3 |
Expected return on plan assets | (0.1) | (0.2) |
Amortization of unrecognized prior service costs, net | 0 | 0 |
Amortization of net loss | 0.2 | 0.2 |
Net pension costs | 0.7 | 0.9 |
Domestic Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | 0.6 | 0.7 |
Interest costs | 2.6 | 2.2 |
Expected return on plan assets | (3.3) | (3.5) |
Amortization of unrecognized prior service costs, net | 0 | 0 |
Amortization of net loss | 0.2 | 0.8 |
Net pension costs | $ 0.1 | $ 0.2 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Cost | $ 2.8 | $ 2.7 |
$900 revolving credit facility (excluding outstanding letters of credit) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 757 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | ||
Dec. 31, 2018Rate | Dec. 31, 2017 | Sep. 30, 2018Rate | |
TaxRate [Line Items] | |||
FederalCorporateTaxRate | 35.00% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.50% | ||
Effective income tax rate (as a percent) | 33.30% | 55.40% |
Income Taxes ST Income Tax Paya
Income Taxes ST Income Tax Payable (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
BlendedCorporateTaxRate | 24.50% | |
Transition Tax Amount | $ 25.1 | $ 24.6 |
Provisional Transition Tax Obligation Current | 2 | |
Transition Tax Amount [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred Tax Liabilities, Deferred Expense | 1.3 | |
Income Taxes Paid | 2 | |
Increase (Decrease) in Accrued Taxes Payable | 0.5 | |
Accrued Income Taxes, Noncurrent | $ 21.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Income per common share | |||
Net income | [1] | $ 28.3 | $ 18.1 |
Weighted average shares outstanding (basic - in millions) | 62,900,000 | 63,600,000 | |
Effect of dilutive stock options and other unvested equity awards (in millions) | 600,000 | 500,000 | |
Weighted average shares outstanding (diluted - in millions) | 63,500,000 | 64,100,000 | |
Basic earnings per share | $ 0.45 | $ 0.28 | |
Diluted earnings per share | $ 0.45 | $ 0.28 | |
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions) | 700,000 | 200,000 | |
Performance-based stock awards | |||
Income per common share | |||
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions) | 400,000 | 400,000 | |
[1] | Net income attributable to Hillenbrand |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 700,000 | 200,000 |
Performance-based stock awards (maximum that can be earned) | ||
Antidilutive securities excluded from computation of earnings per share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 400,000 | 400,000 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||
Cash dividends paid on common stock | $ 13.1 | $ 13.1 |
Treasury Stock, Value, Acquired, Cost Method | 0 | 15.2 |
Amount of shares repurchased | $ 0 | $ 15.2 |
Treasury Stock | ||
Class of Stock [Line Items] | ||
Treasury Stock, Shares, Acquired | 0 | 0.4 |
Treasury Stock, Value, Acquired, Cost Method | $ 0 | $ 15.2 |
Common stock, shares issued | 0.2 | 0.3 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of changes in accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Balance at the beginning of the period | $ (84.2) | ||
Other comprehensive income before reclassifications | |||
Before tax amount | (11.7) | $ 6.5 | |
Tax expense | 1.6 | (0.1) | |
After tax amount | (10.1) | 6.4 | |
Amounts reclassified from accumulated other comprehensive income(1) | [1] | 0.2 | 0.4 |
Total changes in other comprehensive income (loss), net of tax | (9.9) | 6.8 | |
Balance at the end of the period | (94.3) | ||
Pension and Postretirement | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Balance at the beginning of the period | (41) | (45.3) | |
Other comprehensive income before reclassifications | |||
Before tax amount | 0 | 0 | |
Tax expense | 0 | 0 | |
After tax amount | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income(1) | [1] | 0.2 | 0.7 |
Total changes in other comprehensive income (loss), net of tax | 0.2 | 0.7 | |
Balance at the end of the period | (40.8) | (44.6) | |
Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Balance at the beginning of the period | (44.1) | (36.9) | |
Other comprehensive income before reclassifications | |||
Before tax amount | (5.1) | 6.2 | |
Tax expense | 0 | 0 | |
After tax amount | (5.1) | 6.2 | |
Amounts reclassified from accumulated other comprehensive income(1) | [1] | 0 | 0 |
Total changes in other comprehensive income (loss), net of tax | (5.1) | 6.2 | |
Balance at the end of the period | (49.2) | (30.7) | |
Net Unrealized Gain (Loss) on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Balance at the beginning of the period | 0.9 | 1 | |
Other comprehensive income before reclassifications | |||
Before tax amount | (6.8) | 0.2 | |
Tax expense | 1.6 | (0.1) | |
After tax amount | (5.2) | 0.1 | |
Amounts reclassified from accumulated other comprehensive income(1) | [1] | 0 | (0.3) |
Total changes in other comprehensive income (loss), net of tax | (5.2) | (0.2) | |
Balance at the end of the period | (4.3) | 0.8 | |
Total Attributable to Hillenbrand, Inc. | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Balance at the beginning of the period | (84.2) | (81.2) | |
Other comprehensive income before reclassifications | |||
Before tax amount | (11.9) | 6.4 | |
Tax expense | 1.6 | (0.1) | |
After tax amount | (10.3) | 6.3 | |
Amounts reclassified from accumulated other comprehensive income(1) | [1] | 0.2 | 0.4 |
Total changes in other comprehensive income (loss), net of tax | (10.1) | 6.7 | |
Balance at the end of the period | (94.3) | (74.5) | |
Noncontrolling Interests | |||
Other comprehensive income before reclassifications | |||
Before tax amount | 0.2 | 0.1 | |
Tax expense | 0 | 0 | |
After tax amount | 0.2 | 0.1 | |
Amounts reclassified from accumulated other comprehensive income(1) | [1] | 0 | 0 |
Total changes in other comprehensive income (loss), net of tax | $ 0.2 | $ 0.1 | |
[1] | Amounts are net of tax. |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Schedule of reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Affected Line in the Consolidated Statement of Operations: | |||
Net revenue | [1] | $ 410.3 | $ 397.2 |
Cost of Goods and Services Sold | 263.3 | 251 | |
Operating expenses | (90.7) | (89.1) | |
Other income (expense), net | 0.5 | (0.4) | |
Tax expense | (14.5) | (23.7) | |
Total reclassifications for the period, net of tax | [2] | 0.2 | 0.4 |
Amortization of Pension and Postretirement | |||
Affected Line in the Consolidated Statement of Operations: | |||
Total reclassifications for the period, net of tax | [2] | 0.2 | 0.7 |
Derivative Instruments | |||
Affected Line in the Consolidated Statement of Operations: | |||
Total reclassifications for the period, net of tax | [2] | 0 | (0.3) |
Reclassifications out of accumulated other comprehensive income (loss) | |||
Affected Line in the Consolidated Statement of Operations: | |||
Net revenue | 0.1 | (0.4) | |
Cost of Goods and Services Sold | 0.1 | 0 | |
Operating expenses | 0 | 0 | |
Other income (expense), net | 0.3 | 1.1 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (0.3) | (0.7) | |
Tax expense | (0.1) | (0.3) | |
Total reclassifications for the period, net of tax | 0.2 | 0.4 | |
Reclassifications out of accumulated other comprehensive income (loss) | Net Loss Recognized | |||
Affected Line in the Consolidated Statement of Operations: | |||
Net revenue | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Operating expenses | 0 | 0 | |
Other income (expense), net | 0.3 | 1.1 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (0.3) | (1.1) | |
Reclassifications out of accumulated other comprehensive income (loss) | Prior Service Costs Recognized | |||
Affected Line in the Consolidated Statement of Operations: | |||
Net revenue | 0 | 0 | |
Cost of Goods and Services Sold | 0 | 0 | |
Operating expenses | 0 | 0 | |
Other income (expense), net | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | |
Reclassifications out of accumulated other comprehensive income (loss) | Derivative Instruments | |||
Affected Line in the Consolidated Statement of Operations: | |||
Net revenue | 0.1 | (0.4) | |
Cost of Goods and Services Sold | 0.1 | 0 | |
Operating expenses | 0 | 0 | |
Other income (expense), net | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ 0 | $ 0.4 | |
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. | ||
[2] | Amounts are net of tax. |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of stock-based compensation costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Related Costs [Abstract] | ||
Share-based compensation costs | $ 1.9 | $ 2.3 |
Less impact of income tax benefit | 0.4 | 0.6 |
Share-based compensation costs, net of tax | $ 1.5 | $ 1.7 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of stock-based awards granted (Details) | 3 Months Ended |
Dec. 31, 2018shares | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted in period | 426,821 |
Time-based stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock awards granted in period | 23,058 |
Performance-based stock awards (maximum that can be earned) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock awards granted in period | 330,446 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) | 3 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance-based targets for target period | 3 years |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option granted, weighted-average exercise price | $ 41.32 |
Stock option granted, weighted-average grant date fair value | 10.16 |
Time-based stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity instruments other than options, grant date fair value | 41.31 |
Performance-based stock awards (maximum that can be earned) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity instruments other than options, grant date fair value | $ 41.77 |
Performance-based stock awards granted, number of units | shares | 179,957 |
Award performance measurement period | 3 years |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated other comprehensive income (loss) [Line Items] | ||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | $ (0.1) | $ 0 |
Foreign currency exchange gain (loss), net | 0.4 | (0.3) |
Other, net | 0.2 | (0.1) |
Other income (expense), net | $ 0.5 | $ (0.4) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - 3 months ended Dec. 31, 2018 £ in Millions, $ in Millions | USD ($) | GBP (£) |
Commitments and Contingencies | ||
Loss Contingency, Damages Sought | £ | £ 38.5 | |
General claims and lawsuits | Minimum | ||
Commitments and Contingencies | ||
Deductibles and self-insured retentions per occurrence or per claim | $ | $ 0.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of financial assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets and liabilities at carrying value and fair value | |||
Cash and cash equivalents | $ 64.8 | $ 56 | $ 77.8 |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | 64.8 | ||
Investments in rabbi trust | 4.6 | ||
Derivative instruments | 0 | ||
Liabilities: | |||
Derivative instruments | 0 | ||
Level 2 | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Investments in rabbi trust | 0 | ||
Derivative instruments | 1.5 | ||
Liabilities: | |||
Derivative instruments | 7.5 | ||
Level 3 | |||
Assets: | |||
Cash and cash equivalents | 0 | ||
Investments in rabbi trust | 0 | ||
Derivative instruments | 0 | ||
Liabilities: | |||
Derivative instruments | 0 | ||
$150 senior unsecured notes | |||
Assets: | |||
Long-term Debt, Gross | 149.7 | ||
$150 senior unsecured notes | Level 1 | |||
Liabilities: | |||
Debt instruments | 153.6 | ||
$150 senior unsecured notes | Level 2 | |||
Liabilities: | |||
Debt instruments | 0 | ||
$150 senior unsecured notes | Level 3 | |||
Liabilities: | |||
Debt instruments | 0 | ||
Revolving credit facility | |||
Assets: | |||
Long-term Debt, Gross | 115.8 | ||
Revolving credit facility | Level 1 | |||
Liabilities: | |||
Debt instruments | 0 | ||
Revolving credit facility | Level 2 | |||
Liabilities: | |||
Debt instruments | 115.8 | ||
Revolving credit facility | Level 3 | |||
Liabilities: | |||
Debt instruments | 0 | ||
$100 Series A Notes | |||
Assets: | |||
Long-term Debt, Gross | 100 | ||
$100 Series A Notes | Level 1 | |||
Liabilities: | |||
Debt instruments | 0 | ||
$100 Series A Notes | Level 2 | |||
Liabilities: | |||
Debt instruments | 100.8 | ||
$100 Series A Notes | Level 3 | |||
Liabilities: | |||
Debt instruments | 0 | ||
Derivatives | Cash flow hedging | |||
Financial assets and liabilities at carrying value and fair value | |||
Derivative, notional amount | 283.1 | ||
Reported Value Measurement | |||
Assets: | |||
Investments in rabbi trust | 4.6 | ||
Derivative instruments | 1.5 | ||
Liabilities: | |||
Derivative instruments | $ 7.5 |
Segment and Geographical Info_3
Segment and Geographical Information - Schedule of net revenue and assets by segment (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | ||
Segment and Geographical Information | ||||
Total assets assigned | $ 1,870.2 | $ 1,864.6 | ||
Property, plant, and equipment, net | 140.2 | 142 | ||
Net revenue | [1] | 410.3 | $ 397.2 | |
United States | ||||
Segment and Geographical Information | ||||
Property, plant, and equipment, net | 75.5 | 76.6 | ||
Net revenue | 214.8 | 218.8 | ||
GERMANY | ||||
Segment and Geographical Information | ||||
Property, plant, and equipment, net | 39.7 | 40.7 | ||
Net revenue | 111.3 | 110.4 | ||
All other foreign business units | ||||
Segment and Geographical Information | ||||
Property, plant, and equipment, net | 25 | 24.7 | ||
Net revenue | 84.2 | 68 | ||
Operating segments | ||||
Segment and Geographical Information | ||||
Net revenue | 410.3 | 397.2 | ||
Corporate | ||||
Segment and Geographical Information | ||||
Adjusted EBITDA | (8.8) | (8.3) | ||
Total assets assigned | 32.9 | 34 | ||
Process Equipment Group | ||||
Segment and Geographical Information | ||||
Net revenue | 282.2 | 264.3 | ||
Process Equipment Group | Operating segments | ||||
Segment and Geographical Information | ||||
Adjusted EBITDA | 46.2 | 45.6 | ||
Total assets assigned | 1,649.5 | 1,638.8 | ||
Batesville | ||||
Segment and Geographical Information | ||||
Net revenue | 128.1 | 132.9 | ||
Batesville | Operating segments | ||||
Segment and Geographical Information | ||||
Adjusted EBITDA | 26.7 | $ 27.9 | ||
Total assets assigned | $ 187.8 | $ 191.8 | ||
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. |
Segment and Geographical Info_4
Segment and Geographical Information - Schedule of reconciliation of segment (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment and Geographical Information | ||
Interest income | $ (0.2) | $ (0.5) |
Interest expense | 5.5 | 6.3 |
Income tax expense | 14.5 | 23.7 |
Depreciation and amortization | 14.1 | 13.8 |
Business acquisition, development, and integration | 0.6 | 2.3 |
Restructuring and restructuring related | 0.5 | 0.5 |
Business Combination, Inventory Step Up Costs | 0.1 | 0 |
Consolidated net income | 29 | 19.1 |
Corporate | ||
Segment and Geographical Information | ||
Adjusted EBITDA | (8.8) | (8.3) |
Process Equipment Group | Operating segments | ||
Segment and Geographical Information | ||
Adjusted EBITDA | 46.2 | 45.6 |
Batesville | Operating segments | ||
Segment and Geographical Information | ||
Adjusted EBITDA | $ 26.7 | $ 27.9 |
Condensed Consolidating Infor_3
Condensed Consolidating Information - Consolidating statements of income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Condensed Financial Information Disclosure [Abstract] | |||
Percentage ownership of subsidiaries with indebtedness guaranteed by the parent | 100.00% | ||
Condensed Consolidating Statements of Income | |||
Net revenue | [1] | $ 410.3 | $ 397.2 |
Cost of Goods and Services Sold | 263.3 | 251 | |
Gross profit | 147 | 146.2 | |
Operating expenses | 90.7 | 89.1 | |
Amortization of Intangible Assets | 7.8 | 7.6 | |
Interest expense | 5.5 | 6.3 | |
Other income (expense), net | 0.5 | (0.4) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 43.5 | 42.8 | |
Income tax expense (benefit) | 14.5 | 23.7 | |
Consolidated net income | 29 | 19.1 | |
Less: Net income attributable to noncontrolling interests | 0.7 | 1 | |
Total reclassifications for the period, net of tax | [2] | 28.3 | 18.1 |
Consolidated comprehensive income | 19.1 | 25.9 | |
Less: Comprehensive income attributable to noncontrolling interests | 0.9 | 1.1 | |
Comprehensive income (loss) | [3],[4] | 18.2 | 24.8 |
Reportable legal entities | Parent | |||
Condensed Consolidating Statements of Income | |||
Operating expenses | 10.2 | 10.9 | |
Amortization of Intangible Assets | 0 | 0 | |
Interest expense | 4.5 | 5.8 | |
Other income (expense), net | (0.3) | (0.3) | |
Equity in net income (loss) of subsidiaries | 42 | 37.4 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 27 | 20.4 | |
Income tax expense (benefit) | (1.3) | 2.3 | |
Consolidated net income | 28.3 | 18.1 | |
Total reclassifications for the period, net of tax | [2] | 28.3 | 18.1 |
Consolidated comprehensive income | 18.2 | 24.8 | |
Comprehensive income (loss) | [4] | 18.2 | 24.8 |
Reportable legal entities | Guarantors | |||
Condensed Consolidating Statements of Income | |||
Net revenue | 216.1 | 218.2 | |
Cost of Goods and Services Sold | 115.8 | 115.1 | |
Gross profit | 100.3 | 103.1 | |
Operating expenses | 61.4 | 61.6 | |
Amortization of Intangible Assets | 3.3 | 3.5 | |
Interest expense | 0 | 0 | |
Other income (expense), net | 0 | 0.5 | |
Equity in net income (loss) of subsidiaries | 2.2 | 1.4 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 37.8 | 39.9 | |
Income tax expense (benefit) | 9.9 | 15.5 | |
Consolidated net income | 27.9 | 24.4 | |
Total reclassifications for the period, net of tax | [2] | 27.9 | 24.4 |
Consolidated comprehensive income | 27.8 | 24.9 | |
Comprehensive income (loss) | [4] | 27.8 | 24.9 |
Reportable legal entities | Non-Guarantors | |||
Condensed Consolidating Statements of Income | |||
Net revenue | 247.8 | 229.1 | |
Cost of Goods and Services Sold | 174.4 | 160.1 | |
Gross profit | 73.4 | 69 | |
Operating expenses | 45.8 | 42.5 | |
Amortization of Intangible Assets | 4.5 | 4.1 | |
Interest expense | 1 | 0.5 | |
Other income (expense), net | 0.8 | (0.6) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 22.9 | 21.3 | |
Income tax expense (benefit) | 5.9 | 5.9 | |
Consolidated net income | 17 | 15.4 | |
Less: Net income attributable to noncontrolling interests | 0.7 | 1 | |
Total reclassifications for the period, net of tax | [2] | 16.3 | 14.4 |
Consolidated comprehensive income | 11.8 | 21.3 | |
Less: Comprehensive income attributable to noncontrolling interests | 0.9 | 1.1 | |
Comprehensive income (loss) | [4] | 10.9 | 20.2 |
Eliminations | |||
Condensed Consolidating Statements of Income | |||
Net revenue | (53.6) | (50.1) | |
Cost of Goods and Services Sold | (26.9) | (24.2) | |
Gross profit | (26.7) | (25.9) | |
Operating expenses | (26.7) | (25.9) | |
Other income (expense), net | 0 | ||
Equity in net income (loss) of subsidiaries | (44.2) | (38.8) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (44.2) | (38.8) | |
Consolidated net income | (44.2) | (38.8) | |
Total reclassifications for the period, net of tax | [2] | (44.2) | (38.8) |
Consolidated comprehensive income | (38.7) | (45.1) | |
Comprehensive income (loss) | [4] | $ (38.7) | $ (45.1) |
[1] | We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. | ||
[2] | Net income attributable to Hillenbrand | ||
[3] | Comprehensive income attributable to Hillenbrand | ||
[4] | Comprehensive income attributable to Hillenbrand |
Condensed Consolidating Infor_4
Condensed Consolidating Information - Consolidating balance sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
ASSETS | |||||
Cash and cash equivalents | $ 64.8 | $ 56 | $ 77.8 | ||
Trade receivables, net | 190.5 | 218.5 | |||
Receivables from long-term manufacturing contracts | 134.2 | $ 122.2 | 120.3 | ||
Inventories | 182.3 | 170.9 | 172.5 | ||
Prepaid expense | 24.5 | 25.2 | |||
Other current assets | 17.1 | 18.1 | |||
Total current assets | 613.4 | 610.6 | |||
Property, plant, and equipment, net | 140.2 | 142 | |||
Intangible assets, net | 490.6 | 487.3 | |||
Goodwill | 587.3 | 581.9 | |||
Other assets | 38.7 | 42.8 | |||
Total Assets | 1,870.2 | 1,864.6 | |||
LIABILITIES | |||||
Trade accounts payable | 196 | 196.8 | |||
Liabilities from long-term manufacturing contracts and advances | 135.8 | 125.9 | |||
Current portion of long-term debt | 0 | 0 | |||
Accrued compensation | 53.5 | 71.9 | |||
Other current liabilities | 125.2 | 137.1 | |||
Total current liabilities | 510.5 | 531.7 | |||
Long-term debt | 364.8 | 344.6 | |||
Accrued pension and postretirement healthcare | 117.8 | 120.5 | |||
Deferred income taxes | 77.7 | $ 76.5 | 76.4 | ||
Other long-term liabilities | 52 | 47.3 | |||
Total Liabilities | 1,122.8 | 1,120.5 | |||
Hillenbrand Shareholders’ Equity | 734.5 | 731.1 | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Noncontrolling interests | 12.9 | 13 | |||
Total Shareholders’ Equity | 747.4 | 744.1 | $ 768.5 | $ 765.9 | |
Total Liabilities and Equity | 1,870.2 | 1,864.6 | |||
Reportable legal entities | Parent | |||||
ASSETS | |||||
Cash and cash equivalents | 0.4 | 1.1 | |||
Prepaid expense | 3.4 | 2.7 | |||
Intercompany receivables | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Total current assets | 3.8 | 3.8 | |||
Property, plant, and equipment, net | 3.8 | 3.8 | |||
Intangible assets, net | 2.9 | 3.2 | |||
Investment in consolidated subsidiaries | 2,331.9 | 2,263.1 | |||
Other assets | 29.9 | 15.7 | |||
Total Assets | 2,372.3 | 2,289.6 | |||
LIABILITIES | |||||
Trade accounts payable | 2 | 0 | |||
Current portion of long-term debt | 0 | 0 | |||
Accrued compensation | 2.1 | 7.2 | |||
Intercompany payables | 1,249.6 | 1,206.2 | |||
Other current liabilities | 21 | 19.4 | |||
Total current liabilities | 1,274.7 | 1,232.8 | |||
Long-term debt | 334 | 300.2 | |||
Accrued pension and postretirement healthcare | 0.7 | 0.7 | |||
Deferred income taxes | 0 | 0.7 | |||
Other long-term liabilities | 28.4 | 24.1 | |||
Total Liabilities | 1,637.8 | 1,558.5 | |||
Hillenbrand Shareholders’ Equity | 734.5 | 731.1 | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Total Shareholders’ Equity | 734.5 | 731.1 | |||
Total Liabilities and Equity | 2,372.3 | 2,289.6 | |||
Reportable legal entities | Guarantors | |||||
ASSETS | |||||
Cash and cash equivalents | 4.2 | 5.8 | |||
Trade receivables, net | 109.4 | 124.5 | |||
Receivables from long-term manufacturing contracts | 6.4 | 5.3 | |||
Inventories | 83.3 | 76.7 | |||
Prepaid expense | 7.2 | 7 | |||
Intercompany receivables | 1,196.5 | 1,131.1 | |||
Other current assets | 2.6 | 3.2 | |||
Total current assets | 1,409.6 | 1,353.6 | |||
Property, plant, and equipment, net | 59.7 | 60.2 | |||
Intangible assets, net | 192.4 | 196 | |||
Goodwill | 225 | 225 | |||
Investment in consolidated subsidiaries | 668 | 653.9 | |||
Other assets | 26.7 | 28.2 | |||
Total Assets | 2,581.4 | 2,516.9 | |||
LIABILITIES | |||||
Trade accounts payable | 60.6 | 62.4 | |||
Liabilities from long-term manufacturing contracts and advances | 31.2 | 26.6 | |||
Accrued compensation | 14.8 | 20.1 | |||
Intercompany payables | 4.2 | 6.1 | |||
Other current liabilities | 52.8 | 38.9 | |||
Total current liabilities | 163.6 | 154.1 | |||
Accrued pension and postretirement healthcare | 29.4 | 29.8 | |||
Deferred income taxes | 25.5 | 22.9 | |||
Other long-term liabilities | 14.7 | 14.3 | |||
Total Liabilities | 233.2 | 221.1 | |||
Hillenbrand Shareholders’ Equity | 2,348.2 | 2,295.8 | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Total Shareholders’ Equity | 2,348.2 | 2,295.8 | |||
Total Liabilities and Equity | 2,581.4 | 2,516.9 | |||
Reportable legal entities | Non-Guarantors | |||||
ASSETS | |||||
Cash and cash equivalents | 60.2 | 49.1 | |||
Trade receivables, net | 81.1 | 94 | |||
Receivables from long-term manufacturing contracts | 127.8 | 115 | |||
Inventories | 102 | 98.6 | |||
Prepaid expense | 13.9 | 15.5 | |||
Intercompany receivables | 54.3 | 79.1 | |||
Other current assets | 14.1 | 14.6 | |||
Total current assets | 453.4 | 465.9 | |||
Property, plant, and equipment, net | 76.7 | 78 | |||
Intangible assets, net | 295.3 | 288.1 | |||
Goodwill | 362.3 | 356.9 | |||
Other assets | 2.4 | 5.9 | |||
Total Assets | 1,190.1 | 1,194.8 | |||
LIABILITIES | |||||
Trade accounts payable | 133.4 | 134.4 | |||
Liabilities from long-term manufacturing contracts and advances | 104.6 | 99.3 | |||
Current portion of long-term debt | 0 | 0 | |||
Accrued compensation | 36.6 | 44.6 | |||
Other current liabilities | 63.6 | 78.1 | |||
Total current liabilities | 338.2 | 356.4 | |||
Long-term debt | 30.8 | 44.4 | |||
Accrued pension and postretirement healthcare | 87.7 | 90 | |||
Deferred income taxes | 59.9 | 60.9 | |||
Other long-term liabilities | 8.9 | 8.9 | |||
Total Liabilities | 525.5 | 560.6 | |||
Hillenbrand Shareholders’ Equity | 651.7 | 621.2 | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Noncontrolling interests | 12.9 | 13 | |||
Total Shareholders’ Equity | 664.6 | 634.2 | |||
Total Liabilities and Equity | 1,190.1 | 1,194.8 | |||
Consolidation, Eliminations [Member] | |||||
ASSETS | |||||
Inventories | (3) | (2.8) | |||
Intercompany receivables | (1,250.8) | (1,210.2) | |||
Other current assets | 0.4 | 0.3 | |||
Total current assets | (1,253.4) | (1,212.7) | |||
Investment in consolidated subsidiaries | (2,999.9) | (2,917) | |||
Other assets | (20.3) | (7) | |||
Total Assets | (4,273.6) | (4,136.7) | |||
LIABILITIES | |||||
Trade accounts payable | 0 | 0 | |||
Intercompany payables | (1,253.8) | (1,212.3) | |||
Other current liabilities | (12.2) | 0.7 | |||
Total current liabilities | (1,266) | (1,211.6) | |||
Deferred income taxes | (7.7) | (8.1) | |||
Other long-term liabilities | 0 | ||||
Total Liabilities | (1,273.7) | (1,219.7) | |||
Hillenbrand Shareholders’ Equity | (2,999.9) | (2,917) | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Total Shareholders’ Equity | (2,999.9) | (2,917) | |||
Total Liabilities and Equity | $ (4,273.6) | $ (4,136.7) |
Condensed Consolidating Infor_5
Condensed Consolidating Information - Consolidating cash flow statement (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Cash Flow Statements | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ (26.2) | $ 0 | ||
Net cash provided by (used in) operating activities | 35.5 | 26.9 | ||
Investing activities: | ||||
Capital expenditures | (3.6) | (5.6) | ||
Net cash used in investing activities | (29.8) | (5.6) | ||
Financing activities: | ||||
Repayments on term loan | 0 | (148.5) | ||
Proceeds from revolving credit facilities, net of financing costs | 160.2 | 371.8 | ||
Repayments on revolving credit facilities | (139.6) | (213) | ||
Payment of dividends on common stock | (13.1) | (13.1) | ||
Repurchases of common stock | 0 | (15.2) | ||
Net (payments) proceeds on stock plans | (3.8) | 2.6 | ||
Other, net | (0.9) | 2.8 | ||
Net cash provided by (used in) financing activities | 2.8 | (12.6) | ||
Effect of exchange rates on cash and cash equivalents | 0.3 | 2.9 | ||
Net cash flows | 8.8 | 11.6 | ||
At beginning of period | 56 | |||
At end of period | 64.8 | 77.8 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 65.3 | 78.3 | $ 56.5 | $ 66.7 |
Reportable legal entities | Parent | ||||
Condensed Cash Flow Statements | ||||
Net cash provided by (used in) operating activities | (17.5) | 17.2 | ||
Investing activities: | ||||
Capital expenditures | 0 | (1) | ||
Net cash used in investing activities | 0 | (1) | ||
Financing activities: | ||||
Repayments on term loan | 0 | (148.5) | ||
Proceeds from revolving credit facilities, net of financing costs | 106 | 264.7 | ||
Repayments on revolving credit facilities | (72.3) | (106) | ||
Payment of dividends on common stock | (13.1) | (13.1) | ||
Repurchases of common stock | 0 | (15.2) | ||
Net (payments) proceeds on stock plans | (3.8) | 2.6 | ||
Other, net | 0 | 0 | ||
Net cash provided by (used in) financing activities | 16.8 | (15.5) | ||
Net cash flows | (0.7) | 0.7 | ||
At beginning of period | 1.1 | |||
At end of period | 0.4 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0.4 | 0.8 | 1.1 | 0.1 |
Reportable legal entities | Guarantors | ||||
Condensed Cash Flow Statements | ||||
Net cash provided by (used in) operating activities | 0.1 | 5.4 | ||
Investing activities: | ||||
Capital expenditures | (1.7) | (3) | ||
Net cash used in investing activities | (1.7) | (3) | ||
Financing activities: | ||||
Net cash provided by (used in) financing activities | 0 | 0 | ||
Net cash flows | (1.6) | 2.4 | ||
At beginning of period | 5.8 | |||
At end of period | 4.2 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4.2 | 7.4 | 5.8 | 5 |
Reportable legal entities | Non-Guarantors | ||||
Condensed Cash Flow Statements | ||||
Payments to Acquire Businesses, Net of Cash Acquired | (26.2) | |||
Net cash provided by (used in) operating activities | 52.9 | 4.3 | ||
Investing activities: | ||||
Capital expenditures | (1.9) | (1.6) | ||
Net cash used in investing activities | (28.1) | (1.6) | ||
Financing activities: | ||||
Proceeds from revolving credit facilities, net of financing costs | 54.2 | 107.1 | ||
Repayments on revolving credit facilities | (67.3) | (107) | ||
Other, net | (0.9) | 2.8 | ||
Net cash provided by (used in) financing activities | (14) | 2.9 | ||
Effect of exchange rates on cash and cash equivalents | 0.3 | 2.9 | ||
Net cash flows | 11.1 | 8.5 | ||
At beginning of period | 49.1 | |||
At end of period | 60.2 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 60.7 | 70.1 | $ 49.6 | $ 61.6 |
Eliminations | ||||
Condensed Cash Flow Statements | ||||
Net cash provided by (used in) operating activities | 0 | 0 | ||
Financing activities: | ||||
Net cash provided by (used in) financing activities | $ 0 | $ 0 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring and Related Cost | ||
Restructuring charges | $ 0.5 | $ 0.1 |
Restructuring and restructuring related | 0.5 | 0.5 |
Restructuring reserve, current | 1.2 | |
Corporate | ||
Restructuring and Related Cost | ||
Restructuring charges | 0 | (0.1) |
Process Equipment Group | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.3 | 0.2 |
Batesville | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.2 | 0 |
Operating expense | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.2 | 0.1 |
Operating expense | Process Equipment Group | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.1 | 0.2 |
Operating expense | Batesville | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.1 | 0 |
Operating expense | Corporate | ||
Restructuring and Related Cost | ||
Restructuring charges | 0 | (0.1) |
Cost of goods, segment | Process Equipment Group | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.2 | 0 |
Cost of goods, segment | Batesville | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.1 | 0 |
Cost of goods, segment | Corporate | ||
Restructuring and Related Cost | ||
Restructuring charges | 0 | 0 |
Cost of Goods, Total [Member] | ||
Restructuring and Related Cost | ||
Restructuring charges | $ 0.3 | $ 0 |