Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 13, 2018 | Jun. 30, 2017 | |
Document And Entity Information Abstract | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2018 | ||
Entity Registrant Name | Hill-Rom Holdings, Inc. | ||
Entity Central Index Key | 47,518 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 67,283,434 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.8 | ||
Trading Symbol | HRC |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | |||
Product sales and service | $ 2,469.6 | $ 2,358.1 | $ 2,263.4 |
Rental revenue | 378.4 | 385.6 | 391.8 |
Revenues | 2,848 | 2,743.7 | 2,655.2 |
Cost of Net Revenue | |||
Rental expenses | 179.7 | 187.3 | 188.8 |
Cost of Revenue | 1,453.8 | 1,423.1 | 1,398.2 |
Total cost of net revenue | 1,274.1 | 1,235.8 | 1,209.4 |
Gross Profit | 1,394.2 | 1,320.6 | 1,257 |
Research and development expenses | 135.6 | 133.7 | 133.5 |
Selling and administrative expenses | 891.5 | 876.1 | 853.3 |
Special charges | 77.6 | 37.4 | 39.9 |
Operating Profit | 289.5 | 273.4 | 230.3 |
Interest expense | (95) | (88.9) | (90.4) |
Loss on extinguishment of debt | 0 | 0 | (10.8) |
Investment income and other, net | 2.7 | (1.5) | 9.2 |
Income Before Income Taxes | 197.2 | 183 | 138.3 |
Income tax expense (benefit) | (55.2) | 50.7 | 15.5 |
Net Income | 252.4 | 132.3 | 122.8 |
Less: Net loss attributable to noncontrolling interests | 0 | (1.3) | (1.3) |
Net Income Attributable to Common Shareholders | $ 252.4 | $ 133.6 | $ 124.1 |
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) | $ 3.81 | $ 2.04 | $ 1.90 |
Net Income Attributable to Common Shareholders per Common Share - Diluted (usd per share) | 3.73 | 1.99 | 1.86 |
Dividends per Common Share (usd per share) | $ 0.78 | $ 0.71 | $ 0.67 |
Average Common Shares Outstanding - Basic (in shares) | 66,234 | 65,599 | 65,333 |
Average Common Shares Outstanding - Diluted (in shares) | 67,612 | 67,225 | 66,596 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 252.4 | $ 132.3 | $ 122.8 |
Other Comprehensive Income (Loss), net of tax: | |||
Derivative instruments and hedges | 12.5 | 7.4 | (3.1) |
Foreign currency translation adjustment | (24) | 33.9 | (22.4) |
Change in pension and postretirement defined benefit plans | 8.5 | 17.8 | (2.8) |
Total Other Comprehensive Income (Loss), net of tax | (3) | 59.1 | (28.3) |
Total Comprehensive Income | 249.4 | 191.4 | 94.5 |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | (1.3) | (1.3) |
Total Comprehensive Income Attributable to Common Shareholders | $ 249.4 | $ 192.7 | $ 95.8 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 183 | $ 231.8 |
Trade accounts receivable, less allowances of $21.8 in 2018 and $25.1 in 2017 (Note 1) | 580.7 | 579.3 |
Inventories (Note 1) | 291.7 | 284.5 |
Other current assets | 100.2 | 70.6 |
Total current assets | 1,155.6 | 1,166.2 |
Property, plant and equipment (Note 1) | 915 | 979.6 |
Less accumulated depreciation | (586.7) | (624.2) |
Property, plant and equipment, net | 328.3 | 355.4 |
Intangible assets: | ||
Goodwill (Notes 1, 2 and 3) | 1,738.3 | 1,759.6 |
Other intangible assets and software, net (Notes 1, 2 and 3) | 1,027.7 | 1,144 |
Deferred income taxes (Notes 1 and 8) | 35 | 40.9 |
Other assets | 75.1 | 62.6 |
Total Assets | 4,360 | 4,528.7 |
Current Liabilities | ||
Trade accounts payable | 177.3 | 167.9 |
Short-term borrowings (Note 4) | 182.5 | 188.9 |
Accrued compensation | 132.5 | 126.9 |
Accrued product warranties (Note 1) | 20.5 | 25.5 |
Accrued rebates | 42.5 | 39.7 |
Deferred Revenue | 40 | 35.2 |
Other current liabilities | 67.1 | 74.6 |
Total current liabilities | 662.4 | 658.7 |
Long-term debt (Note 4) | 1,790.4 | 2,120.4 |
Accrued pension and postretirement benefits (Note 5) | 69.3 | 78.1 |
Deferred income taxes (Notes 1 and 8) | 181.3 | 266.2 |
Other long-term liabilities | 40.4 | 39.7 |
Total Liabilities | 2,743.8 | 3,163.1 |
Capital Stock: | ||
Common stock - without par value: Authorized - 199,000,000; Issued - 88,457,634 shares in 2017 and 2016 | 4.4 | 4.4 |
Additional paid-in capital | 602.9 | 584.4 |
Retained earnings | 1,876.2 | 1,676.2 |
Accumulated other comprehensive loss | (113) | (110) |
Treasury stock, common shares at cost: 21,201,522 in 2018 and 22,643,840 in 2017 | (754.3) | (796.8) |
Total Shareholders’ Equity Attributable to Common Shareholders | 1,616.2 | 1,358.2 |
Noncontrolling interests | 0 | 7.4 |
Total Shareholders’ Equity | 1,616.2 | 1,365.6 |
Total Liabilities and Shareholders’ Equity | $ 4,360 | $ 4,528.7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 21.8 | $ 25.1 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 199,000,000 | 199,000,000 |
Common stock, issued (in shares) | 88,457,634 | 88,457,634 |
Treasury stock (in shares) | 21,201,522 | 22,643,840 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | |||
Net income | $ 252.4 | $ 132.3 | $ 122.8 |
Depreciation and Amortization of PP&E and Software | 89.6 | 95.2 | 103.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Acquisition-related intangible asset amortization | 106.9 | 108.4 | 95.9 |
Amortization of Debt Issuance Costs and Discounts | 7.4 | 7.2 | 9.2 |
Loss on extinguishment of debt | 0 | 0 | 10.8 |
Provision (benefit) for deferred income taxes | (84.8) | (32.8) | (0.5) |
(Gain) loss on disposal of property, equipment leased to others, intangible assets and impairments | 2.7 | 24.7 | 1.9 |
Pension contribution to master pension plan | 0 | 0 | (30) |
(Gain) loss on disposition of businesses | 23 | (1) | (10.1) |
Stock compensation | 28.1 | 23 | 23.1 |
Excess tax benefits from employee stock plans | 0 | 0 | (3.6) |
Change in working capital excluding cash, current debt, acquisitions and dispositions: | |||
Trade accounts receivable | (5.1) | (42.5) | (15.8) |
Inventories | (10.4) | (14.9) | 21.3 |
Other current assets | (29.4) | 15 | 27.7 |
Trade accounts payable | 12.5 | 21.6 | (0.5) |
Accrued expenses and other liabilities | (1) | (32.3) | (73) |
Other, net | 3.3 | 7.2 | (1.9) |
Net cash provided by operating activities | 395.2 | 311.1 | 281.2 |
Investing Activities | |||
Capital expenditures and purchases of intangible assets | (89.5) | (97.5) | (83.3) |
Proceeds on sale of property and equipment leased to others | 4.2 | 15.1 | 2.2 |
Payment for acquisition of businesses, net of cash acquired | 0 | (311.4) | (25.3) |
Proceeds on sale of businesses | 1 | 5.8 | 10.3 |
Other | 1.9 | (1.4) | (1.6) |
Net cash used in investing activities | (82.4) | (389.4) | (97.7) |
Financing Activities | |||
Proceeds from borrowings on long-term debt | 1 | 300 | 530.4 |
Payments of long-term debt | (351) | (73.2) | (767.9) |
Borrowings on Revolving Credit Facility | 75 | 180 | 156.9 |
Payments on Revolving Credit Facility | (165) | (325.8) | (20) |
Borrowings on Securitization Program | 71.6 | 124.5 | 0 |
Payments on Securitization Program | (40.7) | (45.4) | 0 |
Borrowings on Note Securitization Facility | 122.4 | 0 | 0 |
Payments on Note Securitization Facility | (50) | 0 | 0 |
Debt issuance costs | (0.4) | (5.1) | (2.3) |
Purchase of noncontrolling interest of former joint venture | 0 | 0 | (0.4) |
Payments of cash dividends | (51.8) | (46.6) | (43.8) |
Proceeds from exercise of stock options | 40 | 17.8 | 6.2 |
Proceeds from stock issuance | 6.4 | 5 | 3.8 |
Excess tax benefits from employee stock plans | 0 | 0 | 3.6 |
Treasury stock acquired | (14.1) | (60.6) | (8.4) |
Net cash provided by (used in) financing activities | (356.6) | 70.6 | (141.9) |
Effect of exchange rate changes on cash | (5) | 7.3 | (2.2) |
Net Cash Flows | (48.8) | (0.4) | 39.4 |
Cash and Cash Equivalents | |||
At beginning of period | 231.8 | 232.2 | 192.8 |
At end of period | 183 | 231.8 | 232.2 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 44.8 | 70.4 | 10.9 |
Cash paid for interest | 90.4 | 81.3 | 80.9 |
Net income attributable to common shareholders | $ 74.5 | 45.5 | 36.7 |
Non-cash investing and financing activities: | |||
Treasury stock issued under stock compensation plans | $ 37.5 | $ 23.3 |
STATEMENTS OF CONSOLIDATED SHAR
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock in Treasury [Member] | Total Equity Attributable to Common Shareholders [Member] | Noncontrolling Interests [Member] |
Balance (in shares) at Sep. 30, 2015 | 65,165,896 | 23,291,738 | ||||||
Balance at Sep. 30, 2015 | $ 1,156.9 | $ 4.4 | $ 562 | $ 1,509.9 | $ (140.8) | $ (788.6) | $ 1,146.9 | $ 10 |
Net income | 122.8 | 124.1 | 124.1 | (1.3) | ||||
Other comprehensive income (loss) | (28.3) | (28.3) | ||||||
Dividends | (43.8) | (0.5) | (44.3) | (43.8) | ||||
Treasury shares acquired (in shares) | (148,203) | (148,203) | ||||||
September 30, 2016 | (8.4) | $ (8.4) | (8.4) | |||||
Stock awards and option exercises (in shares) | (687,560) | (687,560) | ||||||
Net income attributable to common shareholders | 36.7 | 13.4 | $ 23.3 | 36.7 | ||||
Balance (in shares) at Sep. 30, 2016 | 65,705,253 | 22,752,381 | ||||||
Balance at Sep. 30, 2016 | 1,235.9 | $ 4.4 | 575.9 | 1,589.7 | (169.1) | $ (773.7) | 1,227.2 | 8.7 |
Net income | 132.3 | 133.6 | 133.6 | (1.3) | ||||
Other comprehensive income (loss) | 59.1 | 59.1 | ||||||
Dividends | (46.6) | (0.5) | (47.1) | (46.6) | ||||
Treasury shares acquired (in shares) | (976,473) | (976,473) | ||||||
September 30, 2016 | (60.6) | $ (60.6) | (60.6) | |||||
Stock awards and option exercises (in shares) | (1,085,014) | (1,085,014) | ||||||
Net income attributable to common shareholders | 45.5 | 8 | $ 37.5 | 45.5 | ||||
Balance (in shares) at Sep. 30, 2017 | 65,813,794 | 22,643,840 | ||||||
Balance at Sep. 30, 2017 | 1,365.6 | $ 4.4 | 584.4 | 1,676.2 | (110) | $ (796.8) | 1,358.2 | 7.4 |
Net income | 252.4 | 252.4 | ||||||
Other comprehensive income (loss) | (3) | (3) | ||||||
Dividends | (51.8) | (0.6) | (52.4) | (51.8) | ||||
Treasury shares acquired (in shares) | (158,182) | (158,182) | ||||||
September 30, 2016 | (14.1) | $ 14.1 | 14.1 | |||||
Stock awards and option exercises (in shares) | (1,600,500) | (1,600,500) | ||||||
Net income attributable to common shareholders | 74.5 | 17.9 | $ 56.6 | 74.5 | ||||
Balance (in shares) at Sep. 30, 2018 | 67,256,112 | 21,201,522 | ||||||
Balance (Deconsolidation of VIE [Member]) at Sep. 30, 2018 | (7.4) | $ (7.4) | ||||||
Balance at Sep. 30, 2018 | $ 1,616.2 | $ 4.4 | $ 602.9 | $ 1,876.2 | $ (113) | $ (754.3) | $ 1,616.2 |
STATEMENTS OF CONSOLIDATED SH_2
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Comprehensive loss, tax | $ (5.9) | $ (14.6) | $ 3.2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Hill-Rom Holdings, Inc. (the “Company,” “Hill-Rom,” “we,” “us,” or “our”) was incorporated on August 7, 1969 in the State of Indiana and is headquartered in Chicago, Illinois. We are a leading global medical technology company with more than 10,000 employees worldwide. We partner with health care providers in more than 100 countries, across multiple care settings, by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Patient Monitoring and Diagnostics, Surgical Safety and Efficiency and Respiratory Health. Our innovations ensure caregivers have the products they need to help diagnose, treat and protect their patients; speed up recoveries; and manage conditions. Every day, around the world, we enhance outcomes for patients and their caregivers. We have three reportable segments, each of which is generally aligned by product type. Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. In addition, we also consolidate variable interest entities (“VIEs”) where Hill-Rom is considered to have a controlling financial interest. Intercompany accounts and transactions have been eliminated in consolidation, including the intercompany transactions with consolidated VIEs. Where our ownership interest is less than 100 %, the noncontrolling interests are reported in our Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense in the period. Actual results could differ from those estimates. Examples of such estimates include, but are not limited to, our accounts receivable reserves (Note 1), accrued warranties (Note 1), the impairment of intangibles and goodwill (Note 3), use of the spot yield curve approach for pension expense (Note 5), income taxes (Notes 1 and 8) and commitments and contingencies (Note 13). Cash and Cash Equivalents We consider investments in marketable securities and other highly liquid instruments with a maturity of three months or less at date of purchase to be cash equivalents. All of our marketable securities may be freely traded. Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest, unless the transaction is an installment sale with extended payment terms. Provisions for doubtful accounts are recorded as a component of operating expense and represent our best estimate of the amount of probable credit losses and collection risk in our existing accounts receivable. Receivables are generally reviewed for collectability based on historical collection experience for each receivable type and are also reviewed individually for collectability. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. Within rental revenue, domestic third-party payers’ reimbursement process requires extensive documentation, which has had the effect of slowing both the billing and cash collection cycles relative to the rest of the business, and therefore, increasing total accounts receivable. Because of the extensive documentation required and the requirement to settle a claim with the primary payer prior to billing the secondary and/or patient portion of the claim, the collection period for a claim in a portion of our business may, in some cases, be extended. We generally hold our trade accounts receivable until they are paid. Certain long-term receivables are occasionally sold to third parties; however, any recognized gain or loss on such sales has historically not been material. Inventories Inventories are valued at lower of cost or market. Inventory costs are determined by the last-in, first-out (“LIFO”) method for approximately 23% and 21% of our inventories as of September 30, 2018 and 2017 . Costs for other inventories have been determined principally by the first-in, first-out (“FIFO”) method. Inventories consist of the following: September 30 2018 2017 Finished products $ 139.7 $ 147.5 Work in process 44.8 38.8 Raw materials 107.2 98.2 Total $ 291.7 $ 284.5 If the FIFO method of inventory accounting, which approximates current cost, had been used for all inventories, they would have been approximately $0.6 million and $2.0 million higher than reported as of September 30, 2018 and 2017 . Property, Plant and Equipment Property, plant and equipment is recorded at cost and depreciated over the estimated useful life of the assets using principally the straight-line method. Ranges of estimated useful lives are as follows: Useful Life Land improvements 6 - 15 years Buildings and building equipment 10 - 40 years Machinery and equipment 3 - 10 years Equipment leased to others 2 - 10 years When property, plant and equipment is retired from service or otherwise disposed of, the cost and related amount of depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds on sale are charged or credited to income. Total depreciation expense in fiscal 2018 , 2017 and 2016 was $78.6 million , $82.0 million and $86.2 million . The major components of property, plant and equipment and the related accumulated depreciation were as follows: September 30 2018 2017 Cost Accumulated Depreciation Cost Accumulated Depreciation Land and land improvements $ 18.4 $ 3.7 $ 18.4 $ 3.3 Buildings and building equipment 209.0 89.6 196.1 84.7 Machinery and equipment 410.9 288.1 402.6 265.1 Equipment leased to others 276.7 205.3 362.5 271.1 Total $ 915.0 $ 586.7 $ 979.6 $ 624.2 Fair Value Measurements Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: Financial instruments with unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. • Level 2: Financial instruments with observable inputs other than those included in Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Financial instruments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs reflect our own assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include our own data. We record cash and cash equivalents, as disclosed on our Consolidated Balance Sheets, as Level 1 instruments and certain other investments and derivatives as Level 2 instruments as they are not actively quoted. Except for the adoption of revised disclosure guidance related to investments held by our pension plan as discussed in Note 5, there have been no significant changes in our classification among assets and liabilities. Refer to Note 4 for disclosure of our debt instrument fair values. Guarantees We routinely grant limited warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year ; however, certain components and products have substantially longer warranty periods. We recognize a reserve with respect to these obligations at the time of product sale, with subsequent warranty claims recorded directly against the reserve. The amount of the warranty reserve is determined based on historical trend experience for the covered products. For more significant warranty-related matters which might require a field corrective action, separate reserves are established when such events are identified and the cost of correction can be reasonably estimated. A rollforward of changes in our warranty reserve is as follows: 2018 2017 2016 Balance as of October 1 $ 25.5 $ 27.5 $ 32.1 Provision for warranties in the period 10.8 13.9 13.9 Warranty reserves acquired — 1.5 2.6 Warranty claims incurred in the period (15.8 ) (17.4 ) (21.1 ) Balance as of September 30 $ 20.5 $ 25.5 $ 27.5 In the normal course of business, we enter into various other guarantees and indemnities in our relationships with suppliers, service providers, customers, business partners and others. Examples of these arrangements would include guarantees of product performance, indemnifications to service providers and indemnifications of our actions to business partners. These guarantees and indemnifications have not historically had a material impact on our financial condition or results of operations, nor do we expect them to although indemnifications associated with our actions generally have no dollar limitations. In conjunction with our acquisition and divestiture activities, we have entered into select guarantees and indemnifications of performance with respect to the fulfillment of our commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. With respect to divestitures, we also routinely enter into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on our Consolidated Financial Statements. Accrued Rebates We provide rebates and sales incentives to certain customer groups and distributors. We also have arrangements where we provide rebates to certain distributors that sell to end-user customers at prices determined under a contract between us and the end-user customer. Provisions for rebates are recorded as a reduction in net revenue when revenue is recognized. Retirement Plans We sponsor retirement and postretirement benefit plans covering certain employees. Expense recognized in relation to these defined benefit retirement and postretirement health care plans is based upon actuarial valuations and inherent in those valuations are key assumptions including discount and mortality rates, and where applicable, expected returns on assets, projected future salary rates and projected health care cost trends. The discount rates used in the valuation of our defined benefit pension and postretirement plans are evaluated annually based on current market conditions. In setting these rates we utilize long-term bond indices and yield curves as a preliminary indication of interest rate movements, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our obligations. Our overall expected long-term rate of return on pension assets is based on historical and expected future returns, which are inflation adjusted and weighted for the expected return for each component of the investment portfolio. Our rate of assumed compensation increase is also based on our specific historical trends wage adjustments. We account for our defined benefit pension and other postretirement plans by recognizing the funded status of a benefit plan in the balance sheet. We also recognize in Accumulated other comprehensive income (loss) certain gains and losses that arose in the period. See Note 5 for key assumptions and further discussion related to our pension and postretirement plans. Environmental Liabilities Expenditures that relate to an existing environmental condition caused by past operations, and which do not contribute to future revenue generation, are expensed. A reserve is established when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These reserves are determined without consideration of possible loss recoveries from third parties. Specific costs included in environmental expense and reserves include site assessment, development of a remediation plan, clean-up costs, post-remediation expenditures, monitoring, fines, penalties and legal fees. Reserve amounts represent the expected undiscounted future cash outflows associated with such plans and actions. Self Insurance We are generally self-insured up to certain stop-loss limits for certain employee health benefits, including medical, drug and dental. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims and outside actuarial analysis, which are based on historical information along with certain assumptions about future events. Such estimated reserves are classified as Other current liabilities and Other long-term liabilities within the Consolidated Balance Sheets. Refer to Note 13 for additional information. Treasury Stock Treasury stock consists of our common shares that have been issued, but subsequently reacquired. We account for treasury stock purchases under the cost method. When these shares are reissued, we use an average-cost method to determine cost. Proceeds in excess of cost are credited to additional paid-in capital. Revenue Recognition — Sales and Rentals Revenue is presented in the Statements of Consolidated Income net of sales discounts and allowances, GPO fees, price concessions rebates and customer returns for product sales and rental revenue reserves. Revenue is evaluated under the following criteria and recognized when each is met: • Evidence of an arrangement: An agreement with the customer reflecting the terms and conditions to deliver products or services serves as evidence of an arrangement. • Delivery: For products, delivery is generally considered to occur upon transfer of title and risk of loss per the respective sales terms. For rental services, delivery is considered to occur when the services are rendered. • Fixed or determinable price: The sales price is considered fixed or determinable if it is not subject to refund or measurable adjustment. • Collection is considered probable: At or prior to the time of a transaction, credit reviews of each customer are performed to determine the creditworthiness of the customer. Collection is considered probable if the customer is expected to be able to pay amounts under the arrangement as those amounts become due. If collection is not probable, revenue is recognized when collection becomes probable, generally upon cash collection. Revenue for health care and surgical products are generally recognized upon delivery of the products to the customer and their assumption of risk of loss and other risks and rewards of ownership. Local business customs and sales terms specific to certain customers or products can sometimes result in deviations to this normal practice; however, in no case is revenue recognized prior to the transfer of risk of loss and other risks and rewards of ownership. For non-invasive therapy products and medical equipment management services, the majority of product offerings are rental products for which revenue is recognized consistent with the rendering of the service and use of products. For The Vest ® product, revenue is generally recognized at the time of receipt of authorization for billing from the applicable paying entity as this serves as evidence of the arrangement and sets a fixed or determinable price. For health care products and services aimed at improving operational efficiency and asset utilization, various revenue recognition techniques are used, depending on the offering. Arrangements to provide services, routinely under separately sold service and maintenance contracts, result in the deferral of revenue until specified services are performed. Service contract revenue is generally recognized ratably over the contract period, if applicable, or as services are rendered. Product-related goods are generally recognized upon delivery to the customer. For product sales, we record reserves resulting in a reduction of revenue for contractual discounts, as well as price concessions and product returns. Likewise, rental revenue reserves, reflecting contractual and other routine billing adjustments, are recorded as a reduction of revenue. Reserves for revenue are estimated based upon historical rates for revenue adjustments. Taxes Collected from Customers and Remitted to Governmental Units Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between us and our customers, including but not limited to sales taxes, use taxes, and value added taxes, are excluded from revenue and cost. Cost of Net Revenue Cost of goods sold for product sales consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, overhead costs and costs associated with the distribution and delivery of products to our customers. Rental expenses consist of costs associated directly with rental revenue, including depreciation, maintenance, logistics and service center facility and personnel costs. Research and Development Costs Research and development costs are expensed as incurred. Costs were $135.6 million , $133.7 million and $133.5 million in fiscal 2018 , 2017 and 2016 . In addition, certain costs for software development technology held for sale are capitalized as intangibles and are amortized over a period of three to five years once the software is ready for its intended use. The amount capitalized as of September 30, 2018 and 2017 was approximately $2.4 million and $2.3 million . Advertising Costs Advertising costs are expensed as incurred. Costs were $12.0 million , $13.8 million and $10.4 million in fiscal 2018 , 2017 and 2016 . Comprehensive Income We include the after-tax effect of unrealized gains or losses on our available-for-sale securities, interest and foreign currency hedges, foreign currency translation adjustments and pension or other defined benefit postretirement plans’ actuarial gains or losses and prior service costs or credits in Accumulated other comprehensive income (loss). See Note 6 of our Consolidated Financial Statements for further details. Foreign Currency The functional currency of foreign operations is generally the local currency in the country of domicile. Assets and liabilities of foreign operations are primarily translated into U.S. dollars at year-end rates of exchange and the income statements are translated at the average rates of exchange prevailing in the year. Adjustments resulting from translation of the financial statements of foreign operations into U.S. dollars are excluded from the determination of net income, but included as a component of Accumulated other comprehensive income (loss). Foreign currency gains and losses resulting from foreign currency transactions are included in our results of operations and are not material. Foreign currency movements on items designated as net investment hedges were recorded in Accumulated other comprehensive income (loss). Stock-Based Compensation We account for stock-based compensation under fair value provisions. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options on the date of grant, we utilize a Binomial model. In order to determine the fair value of other performance-based stock awards on the date of grant, we utilize a Monte Carlo model. Inherent in this model are assumptions related to a volatility factor, expected life, risk-free interest rate, dividend yield and expected forfeitures. The risk-free interest rate is based on factual data derived from public sources. The volatility factor, expected life, dividend yield and expected forfeiture assumptions require judgment utilizing historical information, peer data and future expectations. Restricted stock units (“RSUs”) are measured based on the fair market price of our common stock on the date of grant, as reported by the New York Stock Exchange, multiplied by the number of units granted. See Note 10 for further details. Income Taxes Hill-Rom and its eligible subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. We have a variety of deferred tax assets in numerous tax jurisdictions which are computed using an asset and liability approach to reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. These deferred tax assets are subject to periodic assessment as to recoverability. If it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recognized. In evaluating whether it is more likely than not that we would recover these deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies are considered. As of September 30, 2018 and 2017 , we had $80.2 million and $58.2 million of valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to certain foreign deferred tax attributes that are not expected to be utilized. The valuation allowance total was not materially impacted by the Tax Cuts and Jobs Act (the “Tax Act”) enacted in the United States in December 2017. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances. We account for uncertain income tax positions using a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The difference between the tax benefit recognized in the financial statements for an uncertain income tax position and the tax benefit claimed in the tax return is referred to as an unrecognized tax benefit. As of September 30, 2018 , the amount of unrecognized tax benefit was $6.2 million . See Note 8 for further details. Derivative Instruments and Hedging Activity We use derivative financial instruments to manage the economic impact of fluctuations in currency exchange and interest rates. Derivative financial instruments related to currency exchange rates include forward purchase and sale agreements which generally have terms no greater than 15 months . Additionally, interest rate swaps and cross-currency interest rate swaps are sometimes used to convert some or all of our long-term debt to either a fixed or variable rate. Derivative financial instruments are recognized on the Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in the Statement of Consolidated Income or the Statement of Consolidated Comprehensive Income, depending on whether a derivative is designated and considered effective as part of a hedge transaction, and if it is, the type of hedge transaction. The Company's derivatives are considered to be highly effective under hedge accounting principles. As a result of being effective, gains and losses on derivative instruments reported in Accumulated other comprehensive income (loss) are subsequently included in the Statement of Consolidated Income in the periods in which earnings are affected by the hedged item. These activities have not had a material effect on our Consolidated Financial Statements for the periods presented herein. Recently Adopted Accounting Guidance In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which delayed the effective date of the new revenue guidance by one year, while permitting companies to early adopt the new standard as of the original effective date. As a result, the provisions of ASU 2014-09 and subsequent amendments, are effective for us in the first quarter of fiscal 2019 using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption. We adopted the new standard effective October 1, 2018 with the modified retrospective approach. While we are continuing to evaluate the impact of adoption on our Consolidated Financial Statements, the preliminary assessment of the impact includes a reduction of fiscal 2018 revenue of up to $20.0 million , which also approximates the one-time impact on revenue from the adoption of this standard. In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This standard amends and simplifies hedge accounting guidance, as well as improves presentation and disclosure to align the economic effects of risk management strategies in the financial statements. More specifically, this update expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to Accumulated other comprehensive income (loss) with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this update. The amended presentation and disclosure guidance is required only prospectively. We adopted ASU 2017-12 in the fourth quarter of fiscal 2018. ASU 2017-12 did not have a material impact on our Consolidated Financial Statements. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) . The standard is for companies that are not able to complete their accounting for the income tax effects of the Tax Act in the period of enactment. The changes were effective when issued. See Note 8 for additional information of how ASU 2018-05 impacts our Consolidated Financial Statements. Recently Issued Accounting Guidance In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . From the lessee’s perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor’s perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. ASU 2016-02 is effective for our first quarter of fiscal 2020. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases . The standard made 16 technical improvements to ASC 842 including the following: the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . The standard allows companies to use the effective date of the new leases standard as the date of initial application on transition. Companies that elect this transition option will not adjust their comparative period financial information for the effects of ASC 842, not make the new required lease disclosures for periods before the effective date, and carry forward their ASC 840 disclosures for comparative periods. Additionally, the standard provides a practical expedient that permits lessors to make an accounting policy election by class of underlying asset to not separate lease and non-lease components if specified criteria are met. We are currently in the process of evaluating the impact of the amended guidance on our Consolidated Financial Statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) . This standard requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. ASU 2016-16 is effective for our first quarter of fiscal 2019 and requires a modified retrospective transition method. While we are still assessing the impact of ASU 2016-16, we currently believe that the adoption of this guidance will not have a material impact on our Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . This standard requires that companies include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. ASU 2016-18 is effective for our first quarter of fiscal 2019 requires a retrospective transition method. We believe that the adoption of this guidance will not have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . This standard provides clarification on the definition of a business and provides guidance on whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for our first quarter of fiscal 2019 and requires a prospective transition method. We believe that the adoption of this guidance will not have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment . This standard eliminates Step 2 of the goodwill impairment test and requires a goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. ASU 2017-04 is effective for our first quarter of fiscal 2021 and requires a prospective transition method. We are currently in the process of evaluating the impact of adoption on our Consolidated Financial Statements. In February 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Mortara Instrument On February 14, 2017, we completed the acquisition of Mortara Instrument, Inc. (“Mortara”) for consideration of $330.0 million in cash ( $311.2 million , net of cash acquired), primarily financed through a private offering of $300.0 million of senior unsecured notes (Note 4). Mortara provides a portfolio of diagnostic cardiology devices designed to serve the full continuum of clinical care, from acute care to primary care and clinical research organizations. The results of Mortara are included in the Consolidated Financial Statements since the date of acquisition. The impact to our fiscal 2017 net revenue and net income was not significant. The impact to our net revenue and net income on an unaudited proforma basis, as if the Mortara acquisition had been consummated at the beginning of fiscal 2016, would not have been significant. The following summarizes the fair value of assets acquired and liabilities assumed at the date of the Mortara acquisition. The results are considered final. Amount Trade receivables $ 16.4 Inventory 21.5 Other current assets 2.8 Property, plant and equipment 18.2 Goodwill 165.5 Trade names (7-year weighted average useful life) 15.8 Customer relationships (8-year useful life) 37.9 Developed technology (7-year useful life) 52.3 Other noncurrent assets 4.8 Current liabilities (22.8 ) Noncurrent liabilities (1.2 ) Total purchase price, net of cash acquired $ 311.2 Goodwill in connection with the Mortara acquisition was allocated entirely to our Front Line Care segment. A majority of the goodwill is attributed to the acquired U.S. operations which is deductible for tax purposes. Tridien Medical On September 21, 2016, we acquired all of the outstanding shares of Tridien Medical (“Tridien”) for a purchase price of $26.0 million , net of cash acquired. Tridien develops, manufactures and markets support surfaces and patient positioning devices. We funded the transaction primarily with borrowings under our Senior Secured Revolving Credit Facility (“Revolving Credit Facility”) (Note 4). The fair value of assets acquired included $10.4 million of working capital consisting primarily of inventories and accounts receivable, $7.4 million of goodwill and $6.3 million of acquisition-related intangible assets. The results of Tridien are included in the Consolidated Financial Statements since the date of acquisition. Goodwill in connection with the Tridien acquisition was allocated entirely to our Patient Support Systems segment and is not deductible for tax purposes. In fiscal 2017, we made certain adjustments to the opening balance sheet as of the acquisition date which were not material. Welch Allyn Final purchase accounting adjustments related to our Welch Allyn acquisition were made in fiscal 2016 reducing goodwill by $23.7 million primarily due to the finalization of deferred income taxes. Asset Acquisition On October 1, 2018, the Company acquired the right to use patented technology and certain related assets from a supplier to our Front Line Care segment. The Company paid $17.0 million of cash and a guaranteed minimum future royalty payment of $22.0 million over a 7 -year period. Dispositions In fiscal 2018, we conveyed certain net assets related to our third-party rental business, which is comprised of purchased moveable medical equipment that can be rented to customers, to Universal Hospital Services, Inc. (“UHS”) in exchange for UHS’s agreement to dismiss its previously disclosed litigation against us (“Settlement Agreement”). As a result, we recorded a loss of $24.5 million in Special charges, which included $20.9 million related to the non-cash loss reserve for the assets conveyed, and other Settlement Agreement related costs of approximately $3.6 million . The transaction closed in fiscal 2018 subject to potential purchase price adjustments. In fiscal 2017, we sold our Völker business. We recorded a loss of $25.4 million , relating mainly to non-cash write-downs of long-lived assets and working capital associated with the Völker brand portfolio, and transaction related costs of approximately $3.0 million in Special charges. In fiscal 2018, we recorded a gain of $1.0 million attributable to the final working capital settlement associated with the Völker transaction. In fiscal 2017, we sold our Architectural Products business for $4.5 million in cash proceeds and recorded a gain in Investment income and other, net that was not material. In fiscal 2016, we sold our perinatal data management systems business for $10.5 million and recorded a gain of $10.1 million in Investment income and other, net. All businesses recently disposed were part of our Patient Support Systems segment. |
Goodwill and Indefinite-Lived I
Goodwill and Indefinite-Lived Intangible Assets | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill The following summarizes goodwill activity by reportable segment: Patient Support Systems Front Line Care Surgical Solutions Total Balances as of September 30, 2016 Goodwill $ 544.1 $ 1,205.5 $ 307.6 $ 2,057.2 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net as of September 30, 2016 71.3 1,205.5 307.6 1,584.4 Changes in Goodwill in the period: Goodwill related to acquisitions (0.5 ) 164.8 — 164.3 Currency translation effect 1.4 5.3 4.2 10.9 Balances as of September 30, 2017 Goodwill 545.0 1,375.6 311.8 2,232.4 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net as of September 30, 2017 72.2 1,375.6 311.8 1,759.6 Changes in Goodwill in the period: Goodwill related to acquisitions — 0.8 — 0.8 Deconsolidation of VIE — — (13.2 ) (13.2 ) Currency translation effect (0.6 ) (5.8 ) (2.5 ) (8.9 ) Balances as of September 30, 2018 Goodwill 544.4 1,370.6 296.1 2,211.1 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net as of September 30, 2018 $ 71.6 $ 1,370.6 $ 296.1 $ 1,738.3 The majority of our goodwill is not deductible for income tax purposes. In fiscal 2018, the Company deconsolidated a VIE as a result of no longer having a controlling financial interest in the entity upon the termination of an exclusive distribution agreement. The portion of this entity’s assets, including goodwill, liabilities and operating results that are not attributable to the Company are excluded from our Consolidated Financial Statements as of the effective date of the termination. The impact of this transaction was not significant to our Consolidated Financial Statements. We acquired Mortara and Tridien in fiscal 2017 and 2016. All goodwill associated with Mortara was assigned to the Front Line Care segment and all goodwill associated Tridien was assigned to the Patient Support Systems segment. In fiscal 2017, we recorded adjustments to goodwill related to the Mortara and Tridien acquisitions. Refer to Note 2 for additional information regarding these acquisitions. As discussed in Note 11, we operate in three reportable business segments. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded and is reallocated as necessary based on the composition of reporting units over time. Once goodwill is assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Testing goodwill for impairment must be performed annually, or on an interim basis upon the occurrence of a triggering event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The annual evaluation of goodwill performed in the third quarter of fiscal 2018 and 2017 did not result in any impairments. Intangible Assets Intangible assets are stated at cost and consist predominantly of software, patents, acquired technology, trademarks, and acquired customer relationship assets. With the exception of certain indefinite-lived trademarks, our intangible assets are amortized on a straight-line basis over periods generally ranging from 1 to 20 years. Many of our intangible assets are not deductible for income tax purposes. A summary of intangible assets and the related accumulated amortization follows: September 30 2018 2017 Cost Accumulated Amortization Cost Accumulated Amortization Patents $ 3.0 $ 2.2 $ 3.0 $ 2.0 Software 167.1 139.0 166.1 133.0 Trademarks 500.0 16.8 501.2 14.4 Other 890.4 374.8 966.0 342.9 Total $ 1,560.5 $ 532.8 $ 1,636.3 $ 492.3 Amortization expense in fiscal 2018 , 2017 and 2016 was $117.9 million , $121.6 million and $113.6 million . Amortization expense for all other intangibles is expected to approximate the following for each of the next five fiscal years and thereafter: Amount 2019 $ 115.0 2020 103.0 2021 87.5 2022 74.3 2023 58.5 2024 and beyond 122.6 Software consists mainly of capitalized costs associated with internal use software, including applicable costs associated with the implementation and upgrade of our enterprise resource planning systems. In addition, software includes capitalized development costs for software products to be sold. Capitalized software costs are amortized on a straight-line basis over periods ranging from three to ten years. Software amortization expense was $11.1 million , $12.8 million and $17.0 million in fiscal 2018 , 2017 and 2016 and is included primarily in Selling and administrative expenses. Other intangible assets include mainly acquired customer relationships and developed technology at Welch Allyn and Mortara. The cost and accumulated amortization amounts of customer relationships at Welch Allyn were $513.6 million and $187.9 million as of September 30, 2018 and $517.4 million and $125.5 million as of September 30, 2017 . The cost and accumulated amortization amounts of developed technology at Welch Allyn were $54.0 million and $24.6 million as of September 30, 2018 and $54.0 million and $16.6 million as of September 30, 2017 . The cost and accumulated amortization amounts of customer relationships at Mortara were $37.9 million and $7.9 million as of September 30, 2018 and $37.9 million and $2.9 million as of September 30, 2017 . The cost and accumulated amortization amounts of developed technology at Mortara were $52.3 million and $12.5 million as of September 30, 2018 and $52.3 million and $4.6 million as of September 30, 2017 . We have various indefinite-lived intangible assets representing trade names with a carrying value of $466.9 million as of both September 30, 2018 and 2017 . Testing indefinite-lived intangible assets for impairment must be performed annually, or on an interim basis upon the occurrence of a triggering event or change in circumstances that would more likely than not reduce the fair value of an indefinite-lived intangible asset below its carrying amount. The annual evaluation of indefinite-lived intangible assets performed in the third quarter of fiscal 2018 and 2017 did not result in any impairments. |
Financing Agreements
Financing Agreements | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements Total debt consists of the following: September 30, September 30, Revolving credit facility, matures September 2021 $ — $ 90.0 Current portion of long-term debt 0.1 109.8 Senior secured Term Loan A, long-term portion, matures September 2021 1,029.7 1,266.7 Senior unsecured 5.75% notes due on September 1, 2023 420.8 419.9 Senior unsecured 5.00% notes due on February 15, 2025 296.4 295.8 Unsecured 7.00% debentures due on February 15, 2024 13.6 13.6 Unsecured 6.75% debentures due on December 15, 2027 29.5 29.6 Securitization Program 110.0 79.1 Note Securitization Facility 72.4 — Other 0.4 4.8 Total debt 1,972.9 2,309.3 Less Short-term borrowings 182.5 188.9 Total Long-term debt $ 1,790.4 $ 2,120.4 In May 2018, we renewed our 364 -day accounts receivable securitization program (the “Securitization Program”) with certain financial institutions for borrowings up to $110.0 million . We also entered into an additional 364 -day facility for borrowings up to $90.0 million (the “Note Securitization Facility”) in May 2018. Under the terms of each of the Securitization Program and Note Securitization Facility, certain of our accounts receivable secure the amounts borrowed and cannot be used to pay our other debts or liabilities. The amount that we may borrow at a given point in time is determined based on the amount of qualifying accounts receivable that are present at such point in time. As of September 30, 2018 , $110.0 million and $72.4 million was borrowed under the Securitization Program and Note Securitization Facility, respectively. Borrowings outstanding under the Securitization Program and Note Securitization Facility bear interest at the London Interbank Offered Rate (“LIBOR”) plus the applicable margin of 0.8% and 1.0% , respectively, and are included as a component of Short-term borrowings, while the accounts receivable securing these obligations remain as a component of Trade accounts receivable, net of allowances in our Consolidated Balance Sheets. In addition, the agreements governing the Securitization Program and Note Securitization Facility contain various customary affirmative and negative covenants, and customary default and termination provisions. As of September 30, 2018 , we were in compliance with these covenants and provisions. In February 2017, we entered into $300.0 million of senior unsecured notes maturing February 2025 for purposes of financing the Mortara acquisition. These notes bear interest at a fixed rate of 5.00% annually. We also have outstanding senior unsecured notes of $425.0 million maturing in September 2023 that bear interest at a fixed rate of 5.75% annually (collectively, the “Senior Notes”). These Senior Notes were issued at par in a private placement offering and are not registered securities on any public market. All of the notes were outstanding as of September 30, 2018 . We are not required to make any mandatory redemption or sinking fund payments with respect to the Senior Notes, other than in certain circumstances such as a change in control or material sale of assets. We may redeem the 5.00% and 5.75% notes prior to maturity, but doing so prior to February 15, 2025 and September 1, 2023 , respectively, would require payment of a premium on any amounts redeemed, the amount of which varies based on the timing of the redemption. The indentures governing the Senior Notes contain certain covenants which impose limitations on the amount of dividends we may pay and the amount of common shares we may repurchase in the open market, but we do not expect these covenants to affect our current dividend policy or open share repurchase program. The terms of these indentures also impose certain restrictions on the amount and type of additional indebtedness we may obtain in the future, as well as the types of liens and guarantees we may provide. Our Senior Credit Agreement consists of two facilities as follows: • $1,462.5 million senior secured Term Loan A facility (“TLA Facility”), maturing in September 2021 • Revolving Credit Facility, providing borrowing capacity of up to $700.0 million , maturing in September 2021 The TLA Facility and Revolving Credit Facility bear interest at variable rates which currently approximate 3.8% . These interest rates are based primarily on the LIBOR, but under certain conditions could also be based on the U.S. Federal Funds Rate or the U.S. Prime Rate, at our option. We are able to voluntarily prepay outstanding loans under the TLA Facility at any time. In 2018 , we made payments of $350.9 million on the TLA Facility, including the required minimum $146.3 million leaving no scheduled repayment in 2019. The following table summarizes the maturities of the TLA Facility for fiscal 2019 through 2022 : Amount 2019 $ — 2020 106.3 2021 932.2 2022 — On September 30, 2018 , there were no outstanding borrowings on the Revolving Credit Facility, and available borrowing capacity was $691.9 million after giving effect to $8.1 million of outstanding standby letters of credit. The availability of borrowings under our Revolving Credit Facility is subject to our ability at the time of borrowing to meet certain specified conditions, including compliance with covenants contained in the Senior Credit Agreement. The facilities provided by the Senior Credit Agreement are held with a syndicate of banks, which includes over 30 institutions. Our general corporate assets, including those of certain of our subsidiaries, collateralize these obligations. The Credit Agreement governing these facilities contains financial covenants which specify a maximum secured net leverage ratio and a minimum interest coverage ratio, as such terms are defined in the credit agreement. These financial covenants are measured at the end of each fiscal quarter. The required ratios vary providing a gradually decreasing maximum secured net leverage ratio and a gradually increasing minimum interest coverage ratio, as set forth in the following table: Any Fiscal Quarter Ended in the Calendar Year Ending: Maximum Minimum December 31, 2018 3.50x 3.75x December 31, 2019 and thereafter 3.00x 4.00x We were in compliance with all financial covenants under our financing agreements as of September 30, 2018 . In conjunction with the amendment of the Senior Credit Agreement governing these facilities, we recorded a $10.8 million loss on extinguishment of debt related to a majority of the debt issuance costs previously capitalized for the Term Loan B facility in September 2016. We also incurred $6.5 million of costs related to the amendment, $4.5 million of which were capitalized as part of the new Senior Secured Credit Facilities. We are exposed to market risk from fluctuations in interest rates. We sometimes manage our exposure to interest rate fluctuations through the use of interest rate swaps. As of September 30, 2018 , we had seven interest rate swap agreements, with notional amounts of $750.0 million , in aggregate, to hedge the variability of cash flows associated with a portion of the variable interest rate payments through September 2021 on the Senior Secured Credit Facilities. The interest rate swaps have effective start dates ranging between December 31, 2017 and September 8, 2020 and are designated as cash flow hedges. As of September 30, 2018 , these swaps were in a net asset position with an aggregate fair value of $24.8 million , all of which were classified as Other assets. As of September 30, 2017 , these swaps were in a net asset position with an aggregate fair value of $7.3 million , of which $8.5 million were classified as Other assets and $1.2 million were classified as Other current liabilities. We classify fair value measurements on our interest rate swaps as Level 2, as described in Note 1. In July 2018, we entered into two cross-currency swap agreements, with notional amounts of $197.5 million , in aggregate, to hedge the variability of U.S. dollar-Euro exchange rates through July 2023. The cross-currency swaps are designated as net investment hedges of subsidiaries using Euro as their functional currency. The Company entered into the cross-currency swaps to mitigate changes in net assets due to changes in U.S. dollar-Euro spot exchange rates. As of September 30, 2018 , these swaps were in a net liability position with an aggregate fair value of $1.2 million which was classified as Other current liabilities. We classify fair value measurements on our cross-currency swaps as Level 2, as described in Note 1. We adopted ASU 2017-12 in the fourth quarter of fiscal 2018. Under this guidance, the Company assesses hedge effectiveness under the spot-to-spot method and records changes in fair value attributable to the translation of foreign currencies through Accumulated other comprehensive income (loss). The Company has elected to amortize the impact of all other changes in fair value of the derivative through Interest expense. The fair value of our debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities. The book values of our short-term debt instruments and Revolving Credit Facility approximate fair value. The estimated fair values of our long-term debt instruments are described in the table below: September 30, September 30, Senior secured Term Loan A $ 991.9 $ 1,364.8 Senior unsecured 5.75% notes due on September 1, 2023 437.3 449.3 Senior unsecured 5.00% notes due on February 14, 2025 294.0 311.9 Unsecured debentures 42.9 46.8 Total $ 1,766.1 $ 2,172.8 The estimated fair values of our long-term unsecured debentures were based on observable inputs such as quoted prices in markets that are not active. The estimated fair values of our term loans and the Senior Notes were based on quoted prices for similar liabilities. These fair value measurements were classified as Level 2, as described in Note 1. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Sep. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The following tables represent the changes in Accumulated other comprehensive income (loss) by component in fiscal 2018 , 2017 and 2016 : Year Ended September 30, 2018 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending 3 Derivative instruments and hedges: Foreign exchange forward contracts 1 $ 0.4 $ 0.3 $ 0.7 $ (0.1 ) $ 0.6 $ (0.4 ) $ 0.6 $ 0.2 Interest rate swaps 2 22.8 (5.3 ) 17.5 (3.9 ) 13.6 4.7 13.6 18.3 Cross-currency swaps 2 (2.2 ) $ — (2.2 ) 0.5 (1.7 ) — (1.7 ) (1.7 ) Derivative instruments and hedges total 21.0 (5.0 ) 16.0 (3.5 ) 12.5 4.3 12.5 16.8 Foreign currency translation adjustment (24.0 ) — (24.0 ) — (24.0 ) (81.3 ) (24.0 ) (105.3 ) Change in pension and postretirement defined benefit plans 7.9 3.0 10.9 (2.4 ) 8.5 (33.0 ) 8.5 (24.5 ) Total $ 4.9 $ (2.0 ) $ 2.9 $ (5.9 ) $ (3.0 ) $ (110.0 ) $ (3.0 ) $ (113.0 ) 1 We are subject to variability in foreign currency exchange rates due to our international operations. Exposure to this variability is periodically managed primarily through the use of natural hedges, whereby funding obligations and assets are both managed in the local currency. From time-to-time, we enter into currency exchange agreements to manage our exposure arising from fluctuating exchange rates related to specific and projected transactions. We operate this program pursuant to documented corporate risk management policies and do not enter into derivative transactions for speculative purposes. The sensitivity of earnings and cash flows to variability in exchange rates is assessed by applying an appropriate range of potential rate fluctuations to our assets, obligations and projected results of operations denominated in foreign currencies. Our currency risk consists primarily of foreign currency denominated firm commitments and projected foreign currency denominated intercompany and third-party transactions. As of September 30, 2018 , the notional amount of open foreign exchange contracts was $5.5 million . These contracts were in a net asset position reported in Other current assets with a fair value of $0.1 million . The maximum length of time over which we hedge transaction exposures is generally 15 months. Derivative gains and losses, initially reported as a component of Accumulated other comprehensive income (loss), are reclassified to earnings in the period when the transaction affects earnings. 2 See Note 4 for information related to our interest rate and cross-currency swap agreements. 3 The estimated net amount of gains and losses that are reported in Accumulated other comprehensive (loss) as of September 30, 2018 that is expected to be reclassified into earnings within the next 12 months is $6.0 million. Year Ended September 30, 2017 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Derivative instruments and hedges: Foreign exchange forward contracts $ (0.4 ) $ (0.2 ) $ (0.6 ) $ 0.1 $ (0.5 ) $ 0.1 $ (0.5 ) $ (0.4 ) Interest rate swaps 13.1 (0.7 ) 12.4 (4.5 ) 7.9 (3.2 ) 7.9 4.7 Derivative instruments and hedges total 12.7 (0.9 ) 11.8 (4.4 ) 7.4 (3.1 ) 7.4 4.3 Foreign currency translation adjustment 32.9 1.0 33.9 — 33.9 (115.2 ) 33.9 (81.3 ) Change in pension and postretirement defined benefit plans 22.1 5.9 28.0 (10.2 ) 17.8 (50.8 ) 17.8 (33.0 ) Total $ 67.7 $ 6.0 $ 73.7 $ (14.6 ) $ 59.1 $ (169.1 ) $ 59.1 $ (110.0 ) Year Ended September 30, 2016 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Derivative instruments and hedges: Foreign exchange forward contracts $ 0.3 $ (0.2 ) $ 0.1 $ — $ 0.1 $ — $ 0.1 $ 0.1 Interest rate swaps (5.2 ) 0.1 (5.1 ) 1.9 (3.2 ) — (3.2 ) (3.2 ) Derivative instruments and hedges total (4.9 ) (0.1 ) (5.0 ) 1.9 (3.1 ) — (3.1 ) (3.1 ) Foreign currency translation adjustment (22.4 ) — (22.4 ) — (22.4 ) (92.8 ) (22.4 ) (115.2 ) Change in pension and postretirement defined benefit plans (8.5 ) 4.4 (4.1 ) 1.3 (2.8 ) (48.0 ) (2.8 ) (50.8 ) Total $ (35.8 ) $ 4.3 $ (31.5 ) $ 3.2 $ (28.3 ) $ (140.8 ) $ (28.3 ) $ (169.1 ) The following table represents the items reclassified out of Accumulated other comprehensive income (loss) and the related tax effects in fiscal 2018 , 2017 and 2016 : Year Ended September 30 2018 2017 2016 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Derivative instruments and hedges: Foreign exchange forward contracts (a) $ 0.3 $ — $ 0.3 $ (0.2 ) $ — $ (0.2 ) $ (0.2 ) $ — $ (0.2 ) Interest rate swaps (b) (5.3 ) 1.2 (4.1 ) (0.7 ) 0.3 (0.4 ) 0.1 — 0.1 Derivative instruments and hedges total $ (5.0 ) $ 1.2 $ (3.8 ) $ (0.9 ) $ 0.3 $ (0.6 ) $ (0.1 ) $ — $ (0.1 ) Foreign currency translation adjustment (c) — — — 1.0 — 1.0 — — — Change in pension and postretirement defined benefit plans (d) 3.0 (1.0 ) 2.0 5.9 (2.2 ) 3.7 4.4 (1.3 ) 3.1 (a) Reclassified from Accumulated other comprehensive income (loss) into Investment income and other, net. (b) Reclassified from Accumulated other comprehensive income (loss) into Interest expense. (c) Reclassified from Accumulated other comprehensive income (loss) into Special charges. (d) Reclassified from Accumulated other comprehensive income (loss) into Cost of goods sold and Selling and administrative expenses. These components are included in the computation of net periodic pension expense. |
Retirement and Postretirement B
Retirement and Postretirement Benefit Plans | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Retirement and Postretirement Benefit Plans | Retirement and Postretirement Benefit Plans Our retirement plans consist of defined benefit plans, postretirement health care plans and defined contribution savings plans. Plans cover certain employees both in and outside of the United States. Retirement Plans We sponsor five defined benefit retirement plans. Those plans include a master defined benefit retirement plan in the United States, a nonqualified supplemental executive defined benefit retirement plan, and three defined benefit retirement plans covering employees in Germany and France. Benefits for such plans are based primarily on years of service and the employee’s level of compensation in specific periods of employment. We contribute funds to trusts as necessary to provide for current service and for any unfunded projected future benefit obligation over a reasonable period of time. All of our plans have a September 30 measurement date. Effect on Operations The components of net periodic benefit cost for our defined benefit retirement plans were as follows: Year Ended September 30 2018 2017 2016 Service cost $ 4.8 $ 5.8 $ 5.0 Interest cost 11.0 9.9 10.9 Expected return on plan assets (15.7 ) (14.6 ) (13.0 ) Amortization of unrecognized prior service cost, net 0.1 0.2 0.3 Amortization of net loss 4.5 6.1 4.5 Net periodic benefit cost 4.7 7.4 7.7 Special termination benefits — 0.1 — Net pension expense $ 4.7 $ 7.5 $ 7.7 Obligations and Funded Status The change in benefit obligations, plan assets and funded status, along with amounts recognized in the Consolidated Balance Sheets for our defined benefit retirement plans were as follows: Year Ended September 30 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 345.8 $ 347.1 Service cost 4.8 5.8 Interest cost 11.0 9.9 Actuarial gain (13.8 ) (5.7 ) Benefits paid (12.8 ) (12.5 ) Acquisitions 0.1 — Special termination benefits — 0.1 Exchange rate (gain) loss (0.5 ) 1.1 Benefit obligation at end of year 334.6 345.8 Change in plan assets: Fair value of plan assets at beginning of year 284.4 267.0 Actual return on plan assets 7.1 28.8 Employer contributions 1.1 1.1 Benefits paid (12.8 ) (12.5 ) Fair value of plan assets at end of year 279.8 284.4 Funded status and net amounts recognized $ (54.8 ) $ (61.4 ) Amounts recorded in the Consolidated Balance Sheets: Accrued pension benefits, current portion $ (1.1 ) $ (1.2 ) Accrued pension benefits, long-term (53.7 ) (60.2 ) Net amount recognized $ (54.8 ) $ (61.4 ) In addition to the amounts above, net actuarial losses of $50.2 million and prior service costs of $0.5 million , less the tax effect of $20.2 million are included as components of Accumulated other comprehensive income (loss) as of September 30, 2018 . In addition to the amounts above, net actuarial losses of $59.9 million and prior service costs of $0.6 million , less the tax effect of $22.8 million are included as components of Accumulated other comprehensive income (loss) as of September 30, 2017 . The estimated net actuarial loss and prior service cost for our defined benefit retirement plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $2.4 million and $0.1 million , respectively. Accumulated Benefit Obligation The accumulated benefit obligation for all defined benefit pension plans was $316.1 million and $325.7 million as of September 30, 2018 and 2017 . Selected information for our plans, including plans with accumulated benefit obligations exceeding plan assets, was as follows: September 30, 2018 September 30, 2017 PBO ABO Plan Assets PBO ABO Plan Assets Master plan $ 309.5 $ 292.7 $ 279.6 $ 319.8 $ 301.5 $ 284.1 International plans 20.5 18.8 0.2 20.8 19.0 0.3 Supplemental executive plan 4.6 4.6 — 5.2 5.2 — $ 334.6 $ 316.1 $ 279.8 $ 345.8 $ 325.7 $ 284.4 Actuarial Assumptions The weighted average assumptions used in accounting for our domestic pension plans were as follows: 2018 2017 2016 Weighted average assumptions to determine benefit obligations at the measurement date: Discount rate for obligation 4.2% 3.9% 3.7% Rate of compensation increase 3.0% 3.0% 3.0% Weighted average assumptions to determine benefit cost for the year: Discount rate for expense 3.9% 3.7% 4.4% Expected rate of return on plan assets 6.0% 5.8% 5.8% Rate of compensation increase 3.0% 3.0% 3.0% The discount rates used in the valuation of our defined benefit pension plans are evaluated annually based on current market conditions. In setting these rates, we utilize long-term bond indices and yield curves as a preliminary indication of interest rate movements, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our pension obligations. The overall expected long-term rate of return is based on historical and expected future returns, which are inflation adjusted and weighted for the expected return for each component of the investment portfolio, as well as taking into consideration economic and capital market conditions. The rate of assumed compensation increase is also based on our specific historical trends of past wage adjustments. The weighted average discount rate assumptions used for our international plans are lower than our domestic plan assumptions and do not significantly affect the consolidated net benefit obligation or net periodic benefit cost balances. Plan Assets The weighted average asset allocations of our master defined benefit retirement plan as of September 30, 2018 and 2017 , by asset category, along with target allocations, are as follows: 2018 Target Allocation 2017 Target Allocation 2018 Actual Allocation 2017 Actual Allocation Equity securities 31%-37% 37% - 45% 35% 42% Fixed income securities 63%-69% 55% - 63% 65% 58% Total 100% 100% We have a Plan Committee that sets investment guidelines with the assistance of an external consultant. These guidelines are established based on market conditions, risk tolerance, funding requirements and expected benefit payments. The Plan Committee also oversees the investment allocation process and monitors asset performance. As pension liabilities are long-term in nature, we employ a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent level of risk. Target allocations are guidelines, not limitations, and plan fiduciaries may occasionally approve allocations above or below a target range or elect to rebalance the portfolio within the targeted range. The investment portfolio contains a diversified portfolio of fixed income securities and equities. Securities are also diversified in terms of domestic and international securities, short- and long-term securities, growth and value styles, large cap and small cap stocks. The primary investment strategy is a dynamic target allocation method that periodically rebalances among various investment categories depending on the current funded positions. This program is designed to actively move from return-seeking investments (such as equities) toward liability-hedging investments (such as long-duration fixed income) as funding levels improve. Trust assets are invested subject to the following policy restrictions: short-term securities must be rated A2/P2 or higher; all fixed-income securities shall have a credit quality rating “BBB” or higher; and investments in equities in any one company may not exceed 10% of the equity portfolio. Fair Value Measurements of Plan Assets Cash as part of plan assets was $4.0 million and $7.2 million as of September 30, 2018 and 2017 and was classified as a Level 1 financial instrument. In fiscal 2017 , we adopted revised disclosure guidance related to investments measured at NAV as a practical expedient, under which they are no longer categorized in the fair value hierarchy. The following table summarizes these assets by category: September 30, 2018 September 30, 2017 Equities (a) U.S. companies $ 50.0 $ 58.6 International companies 46.4 59.4 Fixed income securities (a) 179.4 159.2 Total plan assets at fair value, excluding cash $ 275.8 $ 277.2 (a) These investments are commingled funds and/or collective trusts valued using the net asset value (“NAV”) unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund. Cash Flows Our U.S. master defined benefit plan is funded in excess of 90% , as measured under the requirements of the Pension Protection Act of 2006, and therefore we expect that the plan will not be subject to the “at risk” funding requirements of this legislation. In fiscal 2018 and 2017 , we contributed cash of $1.1 million to our defined benefit retirement plans in each year. We will not be required to contribute to our master defined benefit retirement plan in fiscal 2019 due to the current funding level; however, minimal contributions will be required for our unfunded plans. Estimated Future Benefit Payments The benefit payments, which are expected to be funded through plan assets and company contributions and reflect expected future service, are expected to be paid as follows: Pension Benefits 2019 $ 14.4 2020 14.5 2021 15.3 2022 16.0 2023 16.7 2024-2028 95.5 Defined Contribution Savings Plans We have defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security in retirement by providing employees with an incentive to make regular savings. Our contributions to the plans are based on eligibility and employee contributions. Expense under these plans was $28.4 million in fiscal 2018 . In fiscal 2017 and 2016 , the expense was $26.8 million in each year. Postretirement Health Care Plans In addition to defined benefit retirement plans, we also offer two postretirement health care plans in the United States that provide health care benefits to qualified retirees and their dependents. The plans are closed to new participants and include retiree cost sharing provisions and generally extends retiree coverage for medical and prescription benefits beyond the COBRA continuation period to the date of Medicare eligibility. We use a measurement date of September 30 for these plans. The expense related to postretirement health care plans has not been significant in fiscal 2018 , 2017 or 2016 . The change in the accumulated postretirement benefit obligation was as follows: Year Ended September 30 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 19.4 $ 21.6 Service cost 0.3 0.4 Interest cost 0.6 0.5 Plan amendments — (0.7 ) Actuarial gain (2.4 ) (1.8 ) Benefits paid (1.2 ) (0.9 ) Retiree contributions 0.3 0.3 Benefit obligation at end of year $ 17.0 $ 19.4 Amounts recorded in the Consolidated Balance Sheets: Accrued benefits obligation, current portion $ 1.6 $ 1.5 Accrued benefits obligation, long-term 15.4 17.9 Net amount recognized $ 17.0 $ 19.4 We contributed approximately $1.2 million to the plans in fiscal 2018 , compared to $0.9 million in fiscal 2017 . In addition to the amounts above, net actuarial gains of $8.7 million and prior service credits of $0.8 million , less the tax effect of $3.0 million are included as components of Accumulated other comprehensive income (loss) as of September 30, 2018 . Net actuarial gains of $7.3 million and prior service credits of $1.0 million , less the tax effect of $3.1 million are included as components of Accumulated other comprehensive income (loss) as of September 30, 2017 . The estimated net actuarial gain and prior service benefit for our postretirement health care plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $0.8 million and $0.2 million . The discount rate used to determine the net periodic benefit cost for the postretirement health care plans for fiscal 2018 , 2017 and 2016 was 3.0% , 3.0% and 3.5% . The discount rate used to determine the benefit obligation as of September 30, 2018 was 4.0% . In fiscal 2017 , the discount rate was 3.3% . In fiscal 2016 , the discount rate for the plans ranged from 2.9% to 3.0% . As of September 30, 2018 , the health care cost trend rates for the plans were generally assumed to be in the ranges of 7.8% to 7.0% , trending down to a rate of 4.5% over the long-term. A one-percentage-point increase/decrease in the assumed health care cost trend rates as of September 30, 2018 would cause an increase/decrease in service and interest costs of less than $0.1 million , along with an increase/decrease in the benefit obligation of $1.0 million . We fund the postretirement health care plans as benefits are paid and current plan benefits are expected to require contributions of approximately $1.6 million in fiscal 2019 and approximately $2.0 million per fiscal year thereafter. |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2018 | |
Class of Stock Disclosures [Abstract] | |
Common Stock | Common Stock Share Repurchases As part of the $190.0 million share repurchase program approved by the Board of Directors (“Board”) in September 2013, we repurchased 0.8 million shares of our common stock in the open market in fiscal 2017 valued at $50.0 million . We did no t repurchase shares in fiscal 2018 or 2016 in the open market. In November 2017, the Board approved an increase to the share repurchase program in an amount of $150.0 million . As of September 30, 2018 , a cumulative total of $175.3 million had been used under both programs, leaving us with availability of $164.7 million under the share repurchase programs. Repurchases may be made on the open market or via private transactions, and are used to manage our capital structure, offset the dilutive impact of stock-based compensation and return cash to shareholders. This program does not have an expiration date and there are no plans to terminate this program in the future. In connection with employee payroll tax withholding for restricted stock distributions, we purchased 0.2 million shares of our common stock for $14.1 million in fiscal 2018 , and 0.2 million shares for $10.6 million in fiscal 2017 and 0.1 million shares for $8.4 million in fiscal 2016 . Stock-Based Compensation We have stock-based compensation plans under which employees and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. In addition to stock options, we grant performance share units (“PSUs”) and RSUs to certain management level employees and vested restricted stock to non-employee directors. We also offer eligible employees the opportunity to buy shares of our common stock at a discount via an Employee Stock Purchase Plan (“ESPP”). Our primary stock-based compensation program is the Stock Incentive Plan, which has been approved by our shareholders. Under the Stock Incentive Plan, we have a total of 15.3 million authorized shares. As of September 30, 2018 , approximately 2.5 million shares were available for future grants under our stock-based compensation plans. We generally settle our stock-based awards with treasury shares. As of September 30, 2018 , we had 21.2 million treasury shares available for use to settle stock-based awards. The following table sets forth a summary of the annual stock-based compensation cost that was charged against income for all types of awards: Year Ended September 30 2018 2017 2016 Stock-based compensation cost (pre-tax) $ 28.1 $ 23.0 $ 23.1 Income tax benefit (22.7 ) (16.5 ) (7.9 ) Stock-based compensation cost, net of tax $ 5.4 $ 6.5 $ 15.2 In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . In the first quarter of fiscal 2017, we elected to early adopt ASU 2016-09, as permitted. Under ASU 2016-09, the tax effects of stock compensation will be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards will be treated as discrete items in the reporting period in which they occur. Amendments related to accounting for excess tax benefits have been adopted prospectively, resulting in recognition of excess tax benefits against income tax expense rather than additional paid-in capital of $16.1 million and $8.9 million in fiscal 2018 and 2017. As a result of the adoption, we did not record an adjustment to retained earnings as we did not have NOL carryforwards attributable to excess tax benefits on stock compensation that had not been previously recognized to additional paid-in capital. Excess tax benefits for share-based payments are now included as net operating activities rather than net financing activities in the Statements of Consolidated Cash Flows. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. Cash paid by an employer when directly withholding shares for tax withholding purposes will continue to be classified as financing activities. We elected not to change our accounting policy for forfeitures. The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Stock Options Stock options granted by our Compensation Committee of our Board under the Stock Incentive Plan are non-qualified stock options. These awards are generally granted with exercise prices equal to the average of the high and low prices of our common stock on the date of grant. They vest in equal annual installments over a three - or four -year period and the maximum contractual term is ten years. We use a Binomial option-pricing model to estimate the fair value of stock options, and compensation cost is recognized on a straight-line basis over the requisite service period. The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values: Year Ended September 30 2018 2017 2016 Weighted average fair value per share $22.50 $15.05 $14.07 Valuation assumptions: Risk-free interest rate 2.2% 1.7% 1.6% Expected dividend yield 0.9% 1.3% 1.2% Expected volatility 30.8% 33.2% 33.1% Weighted average expected life (years) 4.9 4.9 4.9 The risk-free interest rate is based upon observed U.S. Treasury interest rates appropriate for the term of our employee stock options. Expected dividend yield is based on the history and our expectation of dividend payouts. Expected volatility was based on our historical stock price volatility. Expected life represents the weighted average period the stock options are expected to remain outstanding and is a derived output of the Binomial model. The expected life of employee stock options is impacted by the above assumptions as well as the post-vesting forfeiture rate and the exercise factor used in the Binomial model. These two variables are based on the history of exercises and forfeitures for previous stock options granted by us. The following table summarizes transactions under our stock option plans in fiscal 2018 : Weighted Weighted Weighted Aggregate Balance Outstanding as of October 1, 2017 1,705 $ 41.79 Granted 372 80.91 Exercised (1,030 ) 38.88 Cancelled/Forfeited (135 ) 66.27 Balance Outstanding as of September 30, 2018 912 $ 57.40 7.2 $ 33.8 Exercisable as of September 30, 2018 357 $ 41.92 5.3 $ 18.8 Options Expected to Vest 481 $ 66.56 8.4 $ 13.4 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $94.40 , as reported by the New York Stock Exchange on September 30, 2018 . This amount, which changes continuously based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date. The total intrinsic value of options exercised in fiscal 2018 , 2017 and 2016 was $54.7 million , $19.4 million and $4.0 million . As of September 30, 2018 , there was $7.2 million of unrecognized compensation expense related to stock options granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 2.4 years. Restricted Stock Units RSUs are granted to certain employees with fair values equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. RSU grants are contingent upon continued employment and vest over periods ranging from one to four years. Dividends, payable in common stock equivalents, accrue on the grants and are subject to the same specified terms as the original grants, including the risk of forfeiture. The following table summarizes transactions for our nonvested RSUs in fiscal 2018 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested RSUs as of October 1, 2017 521 $ 51.39 Granted 213 81.54 Vested (340) 47.31 Forfeited (76) 60.71 Nonvested RSUs as of September 30, 2018 318 $ 73.72 As of September 30, 2018 , there was $14.1 million of total unrecognized compensation expense related to nonvested RSUs granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 1.8 years. The total vest date fair value of shares that vested in fiscal 2018 , 2017 and 2016 was $21.9 million , $14.5 million and $14.4 million . Performance Share Units Our Compensation Committee grants PSUs to certain employees and these awards are subject to any stock dividends, stock splits, and other similar rights inuring to common stock, but unlike our RSUs are not entitled to dividend reinvestment. Vesting of the grants is contingent upon achievement of performance targets and corresponding service requirements. The fair value of the PSUs is equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. For PSUs with a market condition such as total shareholder return, the Monte-Carlo simulation method is used to determine fair value. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of our and our group of peer companies’ future expected stock prices. The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted in fiscal 2018 , 2017 and 2016 are based on company-specific performance targets, with a total shareholder return collar. Year Ended September 30 2018 2017 2016 Weighted average fair value per share $87.42 $55.95 $50.51 Valuation assumptions: Risk-free interest rate 1.9% 1.2% 1.1% Expected dividend yield 0.0% 0.0% 0.0% Expected volatility 21.9% 22.6% 22.3% The basis for the assumptions listed above is similar to the valuation assumptions used for stock options, as discussed previously. The following table summarizes transactions for our nonvested PSUs in fiscal 2018 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested PSUs as of October 1, 2017 345 $ 53.40 Granted 213 87.42 Vested (174) 75.77 Forfeited (93) 69.39 Nonvested PSUs as of September 30, 2018 291 $ 69.36 As of September 30, 2018 , there was $11.7 million of unrecognized compensation expense related to PSUs granted under the Stock Incentive Plan based on the expected achievement of certain performance targets or market conditions. This unrecognized compensation expense as of September 30, 2018 does not reflect a reduction for our estimate of potential forfeitures and is expected to be recognized by the end of fiscal 2021. The total fair value of shares that vested in fiscal 2018 , 2017 and 2016 was $16.4 million , $14.2 million and $10.2 million . |
Special Charges
Special Charges | 12 Months Ended |
Sep. 30, 2018 | |
Special Charges [Abstract] | |
Special Charges | Special Charges In connection with various organizational changes to improve our business alignment and cost structure, as well as legal settlements, we recognized Special charges of $77.6 million , $37.4 million and $39.9 million in fiscal 2018 , 2017 and 2016 . We continue to evaluate additional actions related to these programs and expect additional Special charges to be incurred. However, it is not practicable to estimate the amount or timing of these future expected costs until such time as the evaluations are complete. These charges are summarized as follows: Legal Claim Recovery and Legal Settlements In fiscal 2018, we received a settlement payment for a legal claim and recorded a gain of $1.2 million in Special charges. In fiscal 2017, we entered into a confidential agreement with Stryker Corporation, resolving alleged infringement of certain Hill-Rom patents covering proprietary communications networks resulting in a gain of $15.1 million recorded in Special charges. Dispositions In fiscal 2018, we entered into an agreement to convey certain net assets related to the Company’s third-party rental business, which is comprised of purchased moveable medical equipment that can be rented to customers, to Universal Hospital Services, Inc. (“UHS”) in exchange for UHS’s agreement to dismiss its previously disclosed litigation against the Company (“Settlement Agreement”). The third-party rental business was part of our Patient Support Systems segment. As a result, in fiscal 2018, we recorded a loss of $24.5 million in Special charges, which included $20.9 million related to the non-cash loss reserve for the assets to be conveyed, and other Settlement Agreement related costs of approximately $3.6 million . The transaction closed in fiscal 2018 subject to potential purchase price adjustments. In fiscal 2017, we sold our Völker business. We recorded impairment charges of $25.4 million in fiscal 2017, relating mainly to non-cash write-downs of long-lived assets and working capital associated with the Völker brand portfolio and fiscal 2017 related transaction costs of approximately $3.0 million in Special charges. In fiscal 2017, we sold our Architectural Products business and recorded $1.1 million of expense, primarily related to severance, in Special charges. Business Optimization In fiscal 2018, we initiated a global transformation program focused on reducing complexity, increasing efficiency, improving our cost structure and accelerating growth with targeted investments that align with our strategic priorities. In fiscal 2018 , this program resulted in charges of $37.2 million , of which $17.6 million were severance and benefit costs with the remainder primarily comprising professional fees and project management costs. In fiscal 2014, we announced a global transformation program focused on improving our cost structure. The domestic portion of this action was completed in fiscal 2015. Part of this program included reducing our European manufacturing capacity and streamlining our global operations by, among other things, executing a back office process transformation program in Europe. The restructuring in Europe is complete and, in fiscal 2017 , we recorded Special charges of $0.9 million for legal and professional fees, temporary labor, project management, severance and benefit costs, and other administrative functions. These amounts compare to charges of $5.1 million (net of reversals) in fiscal 2016 . Since the inception of this program through September 30, 2018 , we have recognized aggregate special charges of $80.8 million . We do not expect to incur further costs related to this action. Site Consolidation In fiscal 2015, we initiated a plan to streamline our operations and simplify our supply chain by consolidating certain manufacturing and distribution operations (“Site Consolidation”). As part of this action, we have announced the closure of eight sites. In fiscal 2018 , we recorded total charges of $15.9 million , related to these efforts, of which $3.7 million were severance and benefit costs with the remainder comprising lease termination and asset write-down costs. In 2017 , we recorded total charges related to these activities of $19.7 million related to these actions, of which $5.1 million were severance and benefit costs. In fiscal 2016 , we recorded total charges of $15.9 million , of which $7.2 million were severance and benefit costs. In fiscal 2017, we sold our Charleston property for $6.1 million in cash proceeds and recorded a gain of $5.2 million in Special charges. Since the inception of the Site Consolidation program through September 30, 2018 , we have recognized aggregate special charges of $50.8 million . Integration and Business Realignment As we acquire businesses, we initiate integration activities and position our existing businesses to capitalize on opportunities for growth. We acquired Mortara and Tridien in fiscal 2017 and 2016 and initiated integration activities to achieve the available synergies of our combined company. We also incurred costs, including severance and benefit costs, associated with other business realignment and integration activities. In fiscal 2018 , we incurred total integration and business realignment charges of approximately $1.2 million . These amounts compare to charges of $ 7.6 million , of which $3.5 million were severance and benefit costs in fiscal 2017 and charges of $19.0 million , of which $14.0 million were severance and benefit costs in fiscal 2016. For all accrued severance and other benefit charges described above, we record restructuring reserves within Other current liabilities. The reserve activity for severance and other benefits in fiscal 2018 and 2017 was as follows: Balance as of September 30, 2016 $ 14.7 Expenses 9.7 Cash Payments (14.3 ) Reversals (1.1 ) Balance as of September 30, 2017 9.0 Expenses 21.3 Cash Payments (20.9 ) Reversals (0.9 ) Balance as of September 30, 2018 $ 8.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of income before income taxes and the consolidated income tax provision were as follows: Year Ended September 30 2018 2017 2016 Income before income taxes: Domestic $ 101.8 $ 129.0 $ 92.2 Foreign 95.4 54.0 46.1 Total $ 197.2 $ 183.0 $ 138.3 Income tax expense: Current provision U.S. Federal $ 5.9 $ 61.6 $ 4.7 State 3.5 8.6 2.2 Foreign 20.2 13.3 9.1 Total current provision 29.6 83.5 16.0 Deferred provision: U.S. Federal (83.4 ) (34.9 ) 21.8 State (2.8 ) 1.3 1.2 Foreign 1.4 0.8 (23.5 ) Total deferred provision (84.8 ) (32.8 ) (0.5 ) Income tax expense $ (55.2 ) $ 50.7 $ 15.5 Differences between income tax expense reported for financial reporting purposes and that computed based upon the application of the statutory U.S. Federal tax rate to the reported income before income taxes were as follows: Year Ended September 30 2018 2017 2016 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income U.S. Federal income tax (a) $ 48.4 24.5 % $ 64.1 35.0 % $ 48.4 35.0 % State income tax (b) 2.9 1.5 % 4.1 2.2 % 2.9 2.1 % Foreign income tax (c) (23.3 ) (11.8 )% (35.6 ) (19.4 )% (14.0 ) (10.1 )% Application of federal research tax credits (5.6 ) (2.9 )% (3.6 ) (2.0 )% (5.6 ) (4.0 )% Application of foreign tax credits (1.0 ) (0.5 )% (15.0 ) (8.2 )% (0.5 ) (0.4 )% Valuation of tax attributes 23.4 11.9 % 36.3 19.8 % (14.4 ) (10.4 )% Foreign inclusions (0.9 ) (0.4 )% 11.5 6.3 % 0.9 0.6 % Domestic manufacturer’s deduction (0.9 ) (0.4 )% (4.4 ) (2.4 )% (1.8 ) (1.3 )% Excess tax benefits from share based awards (16.1 ) (8.2 )% (8.9 ) (4.9 )% — — % U.S. tax benefit of foreign currency loss (9.2 ) (4.7 )% — — % — — % U.S. tax reform deferred tax remeasurement (93.8 ) (47.6 )% — — % — — % U.S. tax reform transition tax 22.9 11.6 % — — % — — % Other, net (2.0 ) (1.0 )% 2.2 1.3 % (0.4 ) (0.3 )% Income tax expense $ (55.2 ) (28.0 )% $ 50.7 27.7 % $ 15.5 11.2 % (a) At statutory rate. (b) Net of U.S. Federal benefit. (c) U.S. Federal tax rate differential. The tax effect of temporary differences that gave rise to the deferred tax balance sheet accounts were as follows: Year Ended September 30 2018 2017 Deferred tax assets: Employee benefit accruals $ 34.9 $ 64.5 Inventory 12.7 16.6 Net operating loss carryforwards 84.5 70.7 Tax credit carryforwards 20.5 23.3 Other, net 26.4 41.4 179.0 216.5 Less: Valuation allowance (80.2 ) (58.2 ) Total deferred tax assets 98.8 158.3 Deferred tax liabilities: Depreciation (19.2 ) (28.6 ) Amortization (216.8 ) (349.7 ) Other, net (9.1 ) (5.3 ) Total deferred tax liabilities (245.1 ) (383.6 ) Deferred tax asset (liability) - net $ (146.3 ) $ (225.3 ) As of September 30, 2018 , we had $83.4 million of deferred tax assets related to operating loss carryforwards in foreign jurisdictions that are subject to various carryforward periods with the majority eligible to be carried forward for an unlimited period. Additionally, we had $0.7 million of deferred tax assets related to U.S. Federal net operating loss (“NOL”) carryforwards which will expire between 2019 and 2033 and $0.4 million of deferred tax assets related to state NOL carryforwards, which expire between 2018 and 2037 . We had $20.5 million of deferred tax assets related to state tax credits, some of which will be carried forward for an unlimited period and some of which will expire between 2018 and 2032 . During fiscal 2018 we fully utilized all of our foreign tax credit carryforwards. We had $2.7 million of deferred tax assets related to capital loss carryforwards, which will expire in 2021 . The gross deferred tax assets as of September 30, 2018 were reduced by valuation allowances of $80.2 million primarily related to certain foreign deferred tax attributes and state tax credit carryforwards as it is more likely than not that some portion or all of these tax attributes will not be realized. In evaluating whether it is more likely than not that we would recover our deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies were considered. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances. We operate under tax holidays in both Singapore and Puerto Rico. The Singapore tax holiday is effective through 2019 while the Puerto Rico tax holiday is effective through 2025 . Both incentives are conditional on meeting certain employment and/or investment thresholds. The impact of these tax holidays decreased foreign taxes by $4.3 million in fiscal 2018 , $3.6 million in fiscal 2017 and $4.1 million in fiscal 2016 . The benefit of the tax holidays on net income per diluted share was $0.06 , $0.05 and $0.06 in fiscal 2018 , 2017 and 2016 . With regard to our non-U.S. subsidiaries, it is our practice and intention to reinvest the earnings in those businesses, to fund capital expenditures and other operating cash needs. Because the undistributed earnings of non-U.S. subsidiaries are considered to be permanently reinvested, no U.S. deferred income taxes or foreign withholding taxes have been provided on earnings subsequent to the enactment of the Tax Act. As of September 30, 2018 , we have approximately $193.0 million of undistributed earnings in our non-U.S. subsidiaries that are considered to be permanently reinvested. If such earnings were repatriated, we do not anticipate incurring a significant amount of additional tax expense. We file a consolidated federal income tax return as well as multiple state, local and foreign jurisdiction tax returns. In the normal course of business, we are subject to examination by the taxing authorities in each of the jurisdictions where we file tax returns. In fiscal 2018, the U.S. Internal Revenue Service (“IRS”) concluded its audit of fiscal 2016 and initiated its post-filing examination of the fiscal 2017 consolidated federal return. We continue to participate in the IRS Compliance Assurance Program (“CAP”) in fiscal 2018 and 2019 and we are in the application process to remain in the CAP in fiscal 2020. The CAP provides the opportunity for the IRS to review certain tax matters prior to us filing our tax return for the year, thereby reducing the time it takes to complete the post-filing examination. We are also subject to state and local or foreign income tax examinations by taxing authorities for years back to fiscal 2013. We also have on-going audits in various stages of completion in several state and foreign jurisdictions, one or more of which may conclude within the next 12 months . Such settlements could involve some or all of the following: the payment of additional taxes and related penalties, the adjustment of certain deferred taxes and/or the recognition of unrecognized tax benefits. The resolution of these matters, in combination with the expiration of certain statutes of limitations in various jurisdictions, make it reasonably possible that our unrecognized tax benefits may decrease as a result of either payment or recognition by approximately $0.5 million to $3.5 million in the next 12 months, excluding interest. The total amount of gross unrecognized tax benefits as of September 30, 2018 , 2017 and 2016 were $6.2 million , $4.5 million and $5.1 million , which includes $5.6 million , $3.3 million and $3.6 million that, if recognized, would impact the effective tax rate in future periods. The remaining amount relates to items which, if recognized, would not impact our effective tax rate. A rollforward of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended September 30 2018 2017 2016 Balance as of October 1 $ 4.5 $ 5.1 $ 5.8 Increases in tax position of prior years 2.3 0.1 0.8 Decreases in tax position of prior years — — (0.1 ) Increases in tax position during the current year 0.3 — — Settlements with taxing authorities — — (0.3 ) Lapse of applicable statute of limitations (0.9 ) (0.8 ) (0.5 ) Change in positions due to acquisitions — — (0.6 ) Foreign currency adjustments — 0.1 — Total change 1.7 (0.6 ) (0.7 ) Balance as of September 30 $ 6.2 $ 4.5 $ 5.1 In fiscal 2018, we recorded a reserve of $2.6 million related to an unrecognized tax benefit in a non-US jurisdiction that we believe is not more likely than not of being sustained on audit. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Accrued interest and penalties, which are not presented in the rollforward table above, were $2.1 million , $2.6 million and $3.0 million as of September 30, 2018 , 2017 and 2016 . Related to interest and penalties, we recognized an income tax benefit of $0.5 million in 2018 and $0.4 million in 2017 . There was no income tax impact of interest or penalties in 2016. A change in a tax accounting method was approved by the Internal Revenue Service in fiscal 2018 which resulted in a reduction in U.S. tax of $9.2 million for prior year currency exchange losses. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code which impacted fiscal 2018 including, but not limited to (1) reduced the U.S. Federal corporate tax rate, (2) required a one-time transition tax (“Transition Tax”) on certain unrepatriated earnings of foreign subsidiaries that may electively be paid over eight years, and (3) accelerated first year expensing of certain capital expenditures. The Tax Act reduces the U.S. Federal corporate tax rate from 35.0% to 21.0% effective January 1, 2018 for calendar year tax filers. Internal Revenue Code Section 15 provides that for fiscal 2018 we will have a blended corporate tax rate of 24.5% , which is based on a proration of the applicable tax rates before and after the effective date of the Tax Act. The statutory tax rate of 21.0% will apply for fiscal 2019 and beyond. The Tax Act also puts in place new tax laws that will impact our taxable income beginning in fiscal 2019, which include, but are not limited to (1) creating a Base Erosion Anti-abuse Tax (“BEAT”), which is a tax on certain related-party payments that reduce the U.S. tax base, (2) generally eliminating U.S. Federal income taxes on dividends from foreign subsidiaries, (3) a new provision designed to tax currently global intangible low-taxed income (“GILTI”), which allows for the possibility of utilizing foreign tax credits and a deduction equal to 50.0% to offset the income tax liability (subject to some limitations), (4) a provision that could limit the amount of deductible interest expense, (5) the repeal of the domestic production activity deduction replaced with an additional deduction for foreign-derived intangible income ("FDII"), (6) limitations on the deductibility of certain executive compensation, and (7) limitations on the utilization of foreign tax credits to reduce the U.S. income tax liability. 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 ASC Topic 740. In accordance with SAB 118, the Company must complete the assessment of the income tax effects of the Tax Act in the first quarter of fiscal 2019. 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. If a Company is unable to provide a reasonable estimate of the impacts of the Tax Act in a reporting period, a provisional amount must be recorded in the first reporting period in which a reasonable estimate can be determined. We initially recorded a provisional discrete net tax benefit of $61.4 million related to the Tax Act. We reduced our estimate of the Transition Tax by $9.5 million primarily related to true–ups to earnings and profits amounts and U.S. taxation of foreign credits and inclusions updated for the end of fiscal 2018. After this adjustment, we have recorded a provisional net tax benefit at year end of $70.9 million related to the Tax Act. This net benefit primarily consists of a net benefit of $93.8 million due to the remeasurement of our deferred tax accounts to reflect the corporate rate reduction impact to our net deferred tax balances and a net expense for the Transition Tax of $22.9 million . Reduction in U.S. Corporate Rate: The Tax Act reduces the U.S. Federal statutory corporate tax rate to 24.5% for fiscal 2018 and 21.0% for fiscal 2019 and beyond. We have recorded a provisional adjustment to our net deferred tax balances, with a corresponding discrete net tax benefit of $93.8 million in fiscal 2018. While we are able to make a reasonable estimate of the impact of the reduction in corporate rate, the Company continues to gather additional information and perform analysis to complete the accounting within the measurement period. Transition Tax: The Transition Tax is a fiscal 2018 tax on the previously untaxed accumulated and current earnings and profits (“E&P”) of our foreign subsidiaries. In order to determine the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. E&P is similar to retained earnings of the subsidiary, but requires other adjustments to conform to U.S. tax rules. We were able to make a reasonable estimate of the Transition Tax and recorded a provisional obligation of $22.9 million . However, proposed interpretative guidance has been provided and we are awaiting final interpretative guidance which the IRS and U.S. Treasury have indicated is anticipated by the end of the 2018 calendar year. GILTI: The Tax Act includes a provision designed to currently tax global intangible low-taxed income starting in fiscal 2019. Due to the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act, the application of ASC 740, and are considering available accounting policy alternatives to adopt to either record the U.S. income tax effect of future GILTI inclusions in the period in which they arise or establish deferred taxes with respect to the expected future tax liabilities associated with future GILTI inclusions. Our accounting policies depend, in part, on analyzing our global income to determine whether we expect a tax liability resulting from the application of this provision, and, if so, whether and when to record related current and deferred income taxes. Whether we intend to recognize deferred tax liabilities related to the GILTI provisions is dependent, in part, on our assessment of the Company's future operating structure. In addition, the Company has reviewed proposed interpretative guidance issued and is awaiting additional interpretative guidance to assess the impact on the computation of the GILTI tax. For these reasons, we are not yet able to reasonably estimate the effect of this provision of the Tax Act. Therefore, we have not made any adjustments relating to potential GILTI tax in our financial statements and have not made a policy decision regarding our accounting for GILTI. Following the enactment of the Tax Act, we repatriated $105.2 million from outside the United States in fiscal 2018. We did not record any incremental U.S. taxes on the repatriation and paid related foreign withholding taxes of $0.5 million . As of September 30, 2017, our practice and intention was to reinvest the earnings in our non-U.S. subsidiaries outside of the U.S., and no U.S. deferred income taxes or foreign withholding taxes were recorded. The Transition Tax noted above will result in the previously untaxed foreign earnings being included in the federal and state fiscal 2018 taxable income. We are currently analyzing our global working capital requirements and the potential tax liabilities that would be incurred if the non-U.S. subsidiaries distribute cash to the U.S. parent, which include local country withholding tax and potential U.S. state taxation. Furthermore, the Transition Tax will close a majority of the outside basis differences in our foreign corporations and any remaining temporary difference will potentially have some interaction with the GILTI tax noted above. Because our analysis is not completed, we are not yet able to reasonably estimate the effect of this provision of the Tax Act and have not recorded any withholding or state tax liabilities, any deferred taxes attributable to GILTI (as noted above) or any deferred taxes attributable to our investment in our foreign subsidiaries. We are also currently analyzing other provisions of the Tax Act that come into effect for tax years after September 30, 2018 to determine if these items would impact the effective tax rate. These provisions include BEAT, eliminating U.S. Federal income taxes on dividends from foreign subsidiaries, the treatment of amounts in accumulated other comprehensive income, the new provision that could limit the amount of deductible interest expense, the evaluation of the deduction for FDII which could represent an additional tax benefit that offsets the repeal of Domestic Production Activities Deduction, and the limitations on the deductibility of certain executive compensation. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is calculated based upon the weighted average number of outstanding common shares for the period, plus the effect of deferred vested shares. Diluted earnings per share is calculated consistent with the basic earnings per share calculation plus the effect of dilutive unissued common shares related to stock-based employee compensation programs. For all periods presented, anti-dilutive stock options were excluded from the calculation of diluted earnings per share. Cumulative treasury stock acquired, less cumulative shares reissued, have been excluded in determining the average number of shares outstanding. Earnings per share are calculated as follows (share information in thousands): Year Ended September 30 2018 2017 2016 Net income attributable to common shareholders $ 252.4 $ 133.6 $ 124.1 Average basic shares outstanding 66,234 65,599 65,333 Add potential effect of exercise of stock options and other unvested equity awards 1,378 1,626 1,263 Average diluted shares outstanding 67,612 67,225 66,596 Net income attributable to common shareholders per basic common share $ 3.81 $ 2.04 $ 1.90 Net income attributable to common shareholders per diluted common share $ 3.73 $ 1.99 $ 1.86 Shares with anti-dilutive effect excluded from the computation of diluted EPS 263 20 395 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We disclose segment information that is consistent with the way in which management operates and views the business. Our operating structure contains the following reporting segments: • Patient Support Systems – globally provides our med-surg and specialty bed systems and surfaces, safe patient handling equipment and mobility solutions, as well as our clinical workflow solutions that deliver software and information technologies to improve care and deliver actionable insight to caregivers and patients. • Front Line Care – globally provides patient monitoring and diagnostic technologies, including a diversified portfolio of physical assessment tools that help diagnose, treat and manage a wide variety of illnesses and diseases, as well as a portfolio of vision care and respiratory care devices. • Surgical Solutions – globally provides products that improve surgical safety and efficiency in the operating room including tables, lights, pendants, positioning devices, and various other surgical instruments and accessories. Our performance within each reportable segment continues to be measured on a divisional income basis before non-allocated operating and administrative costs, litigation, special charges, acquisition and integration costs, acquisition-related intangible asset amortization, and other unusual events. Divisional income generally represents the division’s gross profit less its direct operating costs along with an allocation of manufacturing and distribution costs, research and development and certain corporate functional expenses. Non-allocated operating costs, administrative costs, and other includes functional expenses that support the entire organization such as administration, finance, legal and human resources, expenses associated with strategic developments, acquisition-related intangible asset amortization, and other events that are not indicative of operating trends. We exclude such amounts from divisional income to allow management to evaluate and understand divisional operating trends. The following summarizes financial results by reportable segment: Year Ended September 30 2018 2017 2016 Net revenue: Patient Support Systems $ 1,429.5 $ 1,423.9 $ 1,437.2 Front Line Care 960.2 885.3 809.7 Surgical Solutions 458.3 434.5 408.3 Total net revenue $ 2,848.0 $ 2,743.7 $ 2,655.2 Depreciation and amortization of property, plant, equipment and intangibles: Patient Support Systems $ 37.4 $ 47.0 $ 51.7 Front Line Care 110.7 107.4 98.7 Surgical Solutions 20.8 22.1 22.3 Corporate 27.6 27.1 27.1 Total depreciation and amortization of property, plant, equipment and intangibles $ 196.5 $ 203.6 $ 199.8 Divisional income: Patient Support Systems $ 281.3 $ 249.6 $ 245.2 Front Line Care 253.0 231.8 202.1 Surgical Solutions 53.1 42.5 46.2 Other operating costs: Non-allocated operating costs, administrative costs, and other 220.3 213.1 223.3 Special charges 77.6 37.4 39.9 Operating profit 289.5 273.4 230.3 Interest expense (95.0 ) (88.9 ) (90.4 ) Loss on extinguishment of debt — — (10.8 ) Investment income and other, net 2.7 (1.5 ) 9.2 Income before income taxes $ 197.2 $ 183.0 $ 138.3 Geographic Information Geographic data for net revenue and long-lived assets were as follows: Year Ended September 30 2018 2017 2016 Net revenue to unaffiliated customers: (a) United States $ 1,956.4 $ 1,887.6 $ 1,829.4 Foreign 891.6 856.1 825.8 Total net revenue $ 2,848.0 $ 2,743.7 $ 2,655.2 Long-lived assets: United States $ 239.5 $ 243.9 $ 234.2 Foreign 88.8 111.5 115.8 Total long-lived assets $ 328.3 $ 355.4 $ 350.0 (a) Net revenue is attributed to geographic areas based on the location of the customer. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following table presents selected consolidated financial data by quarter for fiscal 2018 and 2017. 2018 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 669.7 $ 710.5 $ 708.6 $ 759.2 Gross Profit 319.6 350.4 348.0 376.2 Net Income Attributable to Common Shareholders 88.3 28.5 45.2 90.4 Net Income Attributable to Common Shareholders per Common Share - Basic 1.34 0.43 0.68 1.36 Net Income Attributable to Common Shareholders per Common Share - Diluted 1.31 0.42 0.67 1.33 2017 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 637.4 $ 678.9 $ 689.1 $ 783.3 Gross Profit 302.6 324.4 331.1 362.5 Net Income Attributable to Common Shareholders 23.8 34.4 6.0 69.4 Net Income Attributable to Common 0.36 0.52 0.09 1.06 Net Income Attributable to Common 0.36 0.51 0.09 1.03 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments Rental expense in fiscal 2018 , 2017 and 2016 was $33.2 million , $30.5 million and $31.7 million . The table below indicates the minimum annual rental commitments (excluding renewable periods) aggregating $129.6 million , for manufacturing facilities, warehouse distribution centers, service centers and sales offices, under non-cancelable operating leases. Amount 2019 $ 31.0 2020 22.9 2021 18.6 2022 14.9 2023 14.2 2024 and beyond 28.0 Self Insurance We are involved in various claims, including product and general liability, workers’ compensation, auto liability and employment related matters. Such claims in the United States have deductibles and self-insured retentions at various limits up to $1.0 million per occurrence or per claim, depending upon the type of coverage and policy period. International deductibles and self-insured retentions are lower. We are also generally self-insured up to certain stop-loss limits for certain employee health benefits, including medical, drug and dental. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims and outside actuarial analysis, which are based on historical information along with certain assumptions about future events. Such estimated reserves are classified as Other current liabilities and Other long-term liabilities within the Consolidated Balance Sheets. Legal Proceedings General We are subject to various other claims and contingencies arising out of the normal course of business, including those relating to governmental investigations and proceedings, commercial transactions, product liability, employee related matters, antitrust, safety, health, taxes, environmental and other matters. Litigation is subject to many uncertainties and the outcome of individual litigated matters is not predictable with assurance. It is possible that some litigation matters for which reserves have not been established could be decided unfavorably to us, and that any such unfavorable decisions could have a material adverse effect on our financial condition, results of operations and cash flows. Universal Hospital Services, Inc. - Dismissal of Litigation On March 7, 2018, we entered into a Settlement Agreement with UHS which, among other things, provided for the conveyance of certain net assets relating to our third-party rental business (Note 2). On May 15, 2018, the Company and UHS entered into a motion for dismissal with prejudice whereby UHS agreed to drop its lawsuit against the Company as part of the Settlement Agreement. On June 1, 2018, the U.S. District Court - Western District of Texas dismissed the case with prejudice. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Fiscal 2018 , 2017 and 2016 (In millions) ADDITIONS DESCRIPTION BALANCE AT BEGINNING OF PERIOD CHARGED TO COSTS AND EXPENSES CHARGED TO OTHER ACCOUNTS DEDUCTIONS NET OF RECOVERIES BALANCE AT END OF PERIOD Reserves deducted from assets to which they apply: Allowance for possible losses and sales returns - accounts receivable: Fiscal Year Ended: September 30, 2018 $ 25.1 $ 2.5 $ 0.2 (a) $ (6.0 ) (b) $ 21.8 September 30, 2017 26.8 4.3 2.0 (a) (8.0 ) (b) 25.1 September 30, 2016 26.0 2.1 2.2 (a) (3.5 ) (b) 26.8 Valuation allowance against deferred tax assets: Fiscal Year Ended: September 30, 2018 $ 58.2 $ 23.1 $ — (c) $ (1.1 ) (d) $ 80.2 September 30, 2017 26.9 30.8 — (c) 0.5 (d) 58.2 September 30, 2016 40.7 (14.9 ) — 1.1 (d) 26.9 (a) Reduction of gross revenue for uncollectible health care rental reimbursements, cash discounts and other adjustments in determining net revenue. Also includes the effect of acquired businesses, if any. (b) Generally reflects the write-off of specific receivables against recorded reserves. (c) Generally reflects the effect of acquired businesses, if any. (d) Primarily reflects write-offs of deferred tax assets against the valuation allowance. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Hill-Rom Holdings, Inc. (the “Company,” “Hill-Rom,” “we,” “us,” or “our”) was incorporated on August 7, 1969 in the State of Indiana and is headquartered in Chicago, Illinois. We are a leading global medical technology company with more than 10,000 employees worldwide. We partner with health care providers in more than 100 countries, across multiple care settings, by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Patient Monitoring and Diagnostics, Surgical Safety and Efficiency and Respiratory Health. Our innovations ensure caregivers have the products they need to help diagnose, treat and protect their patients; speed up recoveries; and manage conditions. Every day, around the world, we enhance outcomes for patients and their caregivers. We have three reportable segments, each of which is generally aligned by product type. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. In addition, we also consolidate variable interest entities (“VIEs”) where Hill-Rom is considered to have a controlling financial interest. Intercompany accounts and transactions have been eliminated in consolidation, including the intercompany transactions with consolidated VIEs. Where our ownership interest is less than 100 %, the noncontrolling interests are reported in our Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense in the period. Actual results could differ from those estimates. Examples of such estimates include, but are not limited to, our accounts receivable reserves (Note 1), accrued warranties (Note 1), the impairment of intangibles and goodwill (Note 3), use of the spot yield curve approach for pension expense (Note 5), income taxes (Notes 1 and 8) and commitments and contingencies (Note 13). |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider investments in marketable securities and other highly liquid instruments with a maturity of three months or less at date of purchase to be cash equivalents. All of our marketable securities may be freely traded. |
Trade Accounts Receivable | Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest, unless the transaction is an installment sale with extended payment terms. Provisions for doubtful accounts are recorded as a component of operating expense and represent our best estimate of the amount of probable credit losses and collection risk in our existing accounts receivable. Receivables are generally reviewed for collectability based on historical collection experience for each receivable type and are also reviewed individually for collectability. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. Within rental revenue, domestic third-party payers’ reimbursement process requires extensive documentation, which has had the effect of slowing both the billing and cash collection cycles relative to the rest of the business, and therefore, increasing total accounts receivable. Because of the extensive documentation required and the requirement to settle a claim with the primary payer prior to billing the secondary and/or patient portion of the claim, the collection period for a claim in a portion of our business may, in some cases, be extended. We generally hold our trade accounts receivable until they are paid. Certain long-term receivables are occasionally sold to third parties; however, any recognized gain or loss on such sales has historically not been material. |
Inventories | Inventories Inventories are valued at lower of cost or market. Inventory costs are determined by the last-in, first-out (“LIFO”) method for approximately 23% and 21% of our inventories as of September 30, 2018 and 2017 . Costs for other inventories have been determined principally by the first-in, first-out (“FIFO”) method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost and depreciated over the estimated useful life of the assets using principally the straight-line method. Ranges of estimated useful lives are as follows: Useful Life Land improvements 6 - 15 years Buildings and building equipment 10 - 40 years Machinery and equipment 3 - 10 years Equipment leased to others 2 - 10 years When property, plant and equipment is retired from service or otherwise disposed of, the cost and related amount of depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds on sale are charged or credited to income. Total depreciation expense in fiscal 2018 , 2017 and 2016 was $78.6 million , $82.0 million and $86.2 million . The major components of property, plant and equipment and the related accumulated depreciation were as follows: September 30 2018 2017 Cost Accumulated Depreciation Cost Accumulated Depreciation Land and land improvements $ 18.4 $ 3.7 $ 18.4 $ 3.3 Buildings and building equipment 209.0 89.6 196.1 84.7 Machinery and equipment 410.9 288.1 402.6 265.1 Equipment leased to others 276.7 205.3 362.5 271.1 Total $ 915.0 $ 586.7 $ 979.6 $ 624.2 |
Fair Value Measurements | Fair Value Measurements Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: Financial instruments with unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. • Level 2: Financial instruments with observable inputs other than those included in Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Financial instruments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs reflect our own assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include our own data. We record cash and cash equivalents, as disclosed on our Consolidated Balance Sheets, as Level 1 instruments and certain other investments and derivatives as Level 2 instruments as they are not actively quoted. Except for the adoption of revised disclosure guidance related to investments held by our pension plan as discussed in Note 5, there have been no significant changes in our classification among assets and liabilities. Refer to Note 4 for disclosure of our debt instrument fair values. |
Guarantees | Guarantees We routinely grant limited warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year ; however, certain components and products have substantially longer warranty periods. We recognize a reserve with respect to these obligations at the time of product sale, with subsequent warranty claims recorded directly against the reserve. The amount of the warranty reserve is determined based on historical trend experience for the covered products. For more significant warranty-related matters which might require a field corrective action, separate reserves are established when such events are identified and the cost of correction can be reasonably estimated. In the normal course of business, we enter into various other guarantees and indemnities in our relationships with suppliers, service providers, customers, business partners and others. Examples of these arrangements would include guarantees of product performance, indemnifications to service providers and indemnifications of our actions to business partners. These guarantees and indemnifications have not historically had a material impact on our financial condition or results of operations, nor do we expect them to although indemnifications associated with our actions generally have no dollar limitations. In conjunction with our acquisition and divestiture activities, we have entered into select guarantees and indemnifications of performance with respect to the fulfillment of our commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. With respect to divestitures, we also routinely enter into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on our Consolidated Financial Statements. |
Accrued Rebates | Accrued Rebates We provide rebates and sales incentives to certain customer groups and distributors. We also have arrangements where we provide rebates to certain distributors that sell to end-user customers at prices determined under a contract between us and the end-user customer. Provisions for rebates are recorded as a reduction in net revenue when revenue is recognized. |
Retirement Plans | Retirement Plans We sponsor retirement and postretirement benefit plans covering certain employees. Expense recognized in relation to these defined benefit retirement and postretirement health care plans is based upon actuarial valuations and inherent in those valuations are key assumptions including discount and mortality rates, and where applicable, expected returns on assets, projected future salary rates and projected health care cost trends. The discount rates used in the valuation of our defined benefit pension and postretirement plans are evaluated annually based on current market conditions. In setting these rates we utilize long-term bond indices and yield curves as a preliminary indication of interest rate movements, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our obligations. Our overall expected long-term rate of return on pension assets is based on historical and expected future returns, which are inflation adjusted and weighted for the expected return for each component of the investment portfolio. Our rate of assumed compensation increase is also based on our specific historical trends wage adjustments. We account for our defined benefit pension and other postretirement plans by recognizing the funded status of a benefit plan in the balance sheet. We also recognize in Accumulated other comprehensive income (loss) certain gains and losses that arose in the period. See Note 5 for key assumptions and further discussion related to our pension and postretirement plans. |
Environmental Liabilities | Environmental Liabilities Expenditures that relate to an existing environmental condition caused by past operations, and which do not contribute to future revenue generation, are expensed. A reserve is established when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These reserves are determined without consideration of possible loss recoveries from third parties. Specific costs included in environmental expense and reserves include site assessment, development of a remediation plan, clean-up costs, post-remediation expenditures, monitoring, fines, penalties and legal fees. Reserve amounts represent the expected undiscounted future cash outflows associated with such plans and actions. |
Self Insurance | Self Insurance We are generally self-insured up to certain stop-loss limits for certain employee health benefits, including medical, drug and dental. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims and outside actuarial analysis, which are based on historical information along with certain assumptions about future events. Such estimated reserves are classified as Other current liabilities and Other long-term liabilities within the Consolidated Balance Sheets. Refer to Note 13 for additional information. |
Treasury Stock | Treasury Stock Treasury stock consists of our common shares that have been issued, but subsequently reacquired. We account for treasury stock purchases under the cost method. When these shares are reissued, we use an average-cost method to determine cost. Proceeds in excess of cost are credited to additional paid-in capital. |
Revenue Recognition - Sales and Rentals | Revenue Recognition — Sales and Rentals Revenue is presented in the Statements of Consolidated Income net of sales discounts and allowances, GPO fees, price concessions rebates and customer returns for product sales and rental revenue reserves. Revenue is evaluated under the following criteria and recognized when each is met: • Evidence of an arrangement: An agreement with the customer reflecting the terms and conditions to deliver products or services serves as evidence of an arrangement. • Delivery: For products, delivery is generally considered to occur upon transfer of title and risk of loss per the respective sales terms. For rental services, delivery is considered to occur when the services are rendered. • Fixed or determinable price: The sales price is considered fixed or determinable if it is not subject to refund or measurable adjustment. • Collection is considered probable: At or prior to the time of a transaction, credit reviews of each customer are performed to determine the creditworthiness of the customer. Collection is considered probable if the customer is expected to be able to pay amounts under the arrangement as those amounts become due. If collection is not probable, revenue is recognized when collection becomes probable, generally upon cash collection. Revenue for health care and surgical products are generally recognized upon delivery of the products to the customer and their assumption of risk of loss and other risks and rewards of ownership. Local business customs and sales terms specific to certain customers or products can sometimes result in deviations to this normal practice; however, in no case is revenue recognized prior to the transfer of risk of loss and other risks and rewards of ownership. For non-invasive therapy products and medical equipment management services, the majority of product offerings are rental products for which revenue is recognized consistent with the rendering of the service and use of products. For The Vest ® product, revenue is generally recognized at the time of receipt of authorization for billing from the applicable paying entity as this serves as evidence of the arrangement and sets a fixed or determinable price. For health care products and services aimed at improving operational efficiency and asset utilization, various revenue recognition techniques are used, depending on the offering. Arrangements to provide services, routinely under separately sold service and maintenance contracts, result in the deferral of revenue until specified services are performed. Service contract revenue is generally recognized ratably over the contract period, if applicable, or as services are rendered. Product-related goods are generally recognized upon delivery to the customer. For product sales, we record reserves resulting in a reduction of revenue for contractual discounts, as well as price concessions and product returns. Likewise, rental revenue reserves, reflecting contractual and other routine billing adjustments, are recorded as a reduction of revenue. Reserves for revenue are estimated based upon historical rates for revenue adjustments. |
Taxes Collected from Customers and Remitted to Governmental Units | Taxes Collected from Customers and Remitted to Governmental Units Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between us and our customers, including but not limited to sales taxes, use taxes, and value added taxes, are excluded from revenue and cost. |
Cost of Revenue | Cost of Net Revenue Cost of goods sold for product sales consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, overhead costs and costs associated with the distribution and delivery of products to our customers. Rental expenses consist of costs associated directly with rental revenue, including depreciation, maintenance, logistics and service center facility and personnel costs. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. In addition, certain costs for software development technology held for sale are capitalized as intangibles and are amortized over a period of three to five years once the software is ready for its intended use. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Comprehensive Income | Comprehensive Income We include the after-tax effect of unrealized gains or losses on our available-for-sale securities, interest and foreign currency hedges, foreign currency translation adjustments and pension or other defined benefit postretirement plans’ actuarial gains or losses and prior service costs or credits in Accumulated other comprehensive income (loss). See Note 6 of our Consolidated Financial Statements for further details. |
Foreign Currency Translation | Foreign Currency The functional currency of foreign operations is generally the local currency in the country of domicile. Assets and liabilities of foreign operations are primarily translated into U.S. dollars at year-end rates of exchange and the income statements are translated at the average rates of exchange prevailing in the year. Adjustments resulting from translation of the financial statements of foreign operations into U.S. dollars are excluded from the determination of net income, but included as a component of Accumulated other comprehensive income (loss). Foreign currency gains and losses resulting from foreign currency transactions are included in our results of operations and are not material. Foreign currency movements on items designated as net investment hedges were recorded in Accumulated other comprehensive income (loss). |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation under fair value provisions. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options on the date of grant, we utilize a Binomial model. In order to determine the fair value of other performance-based stock awards on the date of grant, we utilize a Monte Carlo model. Inherent in this model are assumptions related to a volatility factor, expected life, risk-free interest rate, dividend yield and expected forfeitures. The risk-free interest rate is based on factual data derived from public sources. The volatility factor, expected life, dividend yield and expected forfeiture assumptions require judgment utilizing historical information, peer data and future expectations. Restricted stock units (“RSUs”) are measured based on the fair market price of our common stock on the date of grant, as reported by the New York Stock Exchange, multiplied by the number of units granted. See Note 10 for further details. |
Income Taxes | Income Taxes Hill-Rom and its eligible subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. We have a variety of deferred tax assets in numerous tax jurisdictions which are computed using an asset and liability approach to reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. These deferred tax assets are subject to periodic assessment as to recoverability. If it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recognized. In evaluating whether it is more likely than not that we would recover these deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies are considered. As of September 30, 2018 and 2017 , we had $80.2 million and $58.2 million of valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to certain foreign deferred tax attributes that are not expected to be utilized. The valuation allowance total was not materially impacted by the Tax Cuts and Jobs Act (the “Tax Act”) enacted in the United States in December 2017. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances. We account for uncertain income tax positions using a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The difference between the tax benefit recognized in the financial statements for an uncertain income tax position and the tax benefit claimed in the tax return is referred to as an unrecognized tax benefit. As of September 30, 2018 , the amount of unrecognized tax benefit was $6.2 million . See Note 8 for further details. |
Derivative Instruments and Hedging Activity | Derivative Instruments and Hedging Activity We use derivative financial instruments to manage the economic impact of fluctuations in currency exchange and interest rates. Derivative financial instruments related to currency exchange rates include forward purchase and sale agreements which generally have terms no greater than 15 months . Additionally, interest rate swaps and cross-currency interest rate swaps are sometimes used to convert some or all of our long-term debt to either a fixed or variable rate. Derivative financial instruments are recognized on the Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in the Statement of Consolidated Income or the Statement of Consolidated Comprehensive Income, depending on whether a derivative is designated and considered effective as part of a hedge transaction, and if it is, the type of hedge transaction. The Company's derivatives are considered to be highly effective under hedge accounting principles. As a result of being effective, gains and losses on derivative instruments reported in Accumulated other comprehensive income (loss) are subsequently included in the Statement of Consolidated Income in the periods in which earnings are affected by the hedged item. These activities have not had a material effect on our Consolidated Financial Statements for the periods presented herein. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Inventories | Inventories consist of the following: September 30 2018 2017 Finished products $ 139.7 $ 147.5 Work in process 44.8 38.8 Raw materials 107.2 98.2 Total $ 291.7 $ 284.5 |
Schedule of Ranges of Estimated Useful Lives | Ranges of estimated useful lives are as follows: Useful Life Land improvements 6 - 15 years Buildings and building equipment 10 - 40 years Machinery and equipment 3 - 10 years Equipment leased to others 2 - 10 years |
Schedule of Major Components of Property and Related Accumulated Depreciation | The major components of property, plant and equipment and the related accumulated depreciation were as follows: September 30 2018 2017 Cost Accumulated Depreciation Cost Accumulated Depreciation Land and land improvements $ 18.4 $ 3.7 $ 18.4 $ 3.3 Buildings and building equipment 209.0 89.6 196.1 84.7 Machinery and equipment 410.9 288.1 402.6 265.1 Equipment leased to others 276.7 205.3 362.5 271.1 Total $ 915.0 $ 586.7 $ 979.6 $ 624.2 |
Schedule of Expected Amortization Expense | Amortization expense for all other intangibles is expected to approximate the following for each of the next five fiscal years and thereafter: Amount 2019 $ 115.0 2020 103.0 2021 87.5 2022 74.3 2023 58.5 2024 and beyond 122.6 |
Reconciliation of Changes in Warranty Reserve | A rollforward of changes in our warranty reserve is as follows: 2018 2017 2016 Balance as of October 1 $ 25.5 $ 27.5 $ 32.1 Provision for warranties in the period 10.8 13.9 13.9 Warranty reserves acquired — 1.5 2.6 Warranty claims incurred in the period (15.8 ) (17.4 ) (21.1 ) Balance as of September 30 $ 20.5 $ 25.5 $ 27.5 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Mortara [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The following summarizes the fair value of assets acquired and liabilities assumed at the date of the Mortara acquisition. The results are considered final. Amount Trade receivables $ 16.4 Inventory 21.5 Other current assets 2.8 Property, plant and equipment 18.2 Goodwill 165.5 Trade names (7-year weighted average useful life) 15.8 Customer relationships (8-year useful life) 37.9 Developed technology (7-year useful life) 52.3 Other noncurrent assets 4.8 Current liabilities (22.8 ) Noncurrent liabilities (1.2 ) Total purchase price, net of cash acquired $ 311.2 |
Welch Allyn Holdings, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed |
Goodwill and Indefinite-Lived_2
Goodwill and Indefinite-Lived Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense for all other intangibles is expected to approximate the following for each of the next five fiscal years and thereafter: Amount 2019 $ 115.0 2020 103.0 2021 87.5 2022 74.3 2023 58.5 2024 and beyond 122.6 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Many of our intangible assets are not deductible for income tax purposes. A summary of intangible assets and the related accumulated amortization follows: September 30 2018 2017 Cost Accumulated Amortization Cost Accumulated Amortization Patents $ 3.0 $ 2.2 $ 3.0 $ 2.0 Software 167.1 139.0 166.1 133.0 Trademarks 500.0 16.8 501.2 14.4 Other 890.4 374.8 966.0 342.9 Total $ 1,560.5 $ 532.8 $ 1,636.3 $ 492.3 |
Schedule of Goodwill Activity | The following summarizes goodwill activity by reportable segment: Patient Support Systems Front Line Care Surgical Solutions Total Balances as of September 30, 2016 Goodwill $ 544.1 $ 1,205.5 $ 307.6 $ 2,057.2 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net as of September 30, 2016 71.3 1,205.5 307.6 1,584.4 Changes in Goodwill in the period: Goodwill related to acquisitions (0.5 ) 164.8 — 164.3 Currency translation effect 1.4 5.3 4.2 10.9 Balances as of September 30, 2017 Goodwill 545.0 1,375.6 311.8 2,232.4 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net as of September 30, 2017 72.2 1,375.6 311.8 1,759.6 Changes in Goodwill in the period: Goodwill related to acquisitions — 0.8 — 0.8 Deconsolidation of VIE — — (13.2 ) (13.2 ) Currency translation effect (0.6 ) (5.8 ) (2.5 ) (8.9 ) Balances as of September 30, 2018 Goodwill 544.4 1,370.6 296.1 2,211.1 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net as of September 30, 2018 $ 71.6 $ 1,370.6 $ 296.1 $ 1,738.3 The majority of our goodwill is not deductible for income tax purposes. |
Financing Agreements (Tables)
Financing Agreements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Total debt consists of the following: September 30, September 30, Revolving credit facility, matures September 2021 $ — $ 90.0 Current portion of long-term debt 0.1 109.8 Senior secured Term Loan A, long-term portion, matures September 2021 1,029.7 1,266.7 Senior unsecured 5.75% notes due on September 1, 2023 420.8 419.9 Senior unsecured 5.00% notes due on February 15, 2025 296.4 295.8 Unsecured 7.00% debentures due on February 15, 2024 13.6 13.6 Unsecured 6.75% debentures due on December 15, 2027 29.5 29.6 Securitization Program 110.0 79.1 Note Securitization Facility 72.4 — Other 0.4 4.8 Total debt 1,972.9 2,309.3 Less Short-term borrowings 182.5 188.9 Total Long-term debt $ 1,790.4 $ 2,120.4 |
Schedule of Maturities of Long-term Debt | The following table summarizes the maturities of the TLA Facility for fiscal 2019 through 2022 : Amount 2019 $ — 2020 106.3 2021 932.2 2022 — |
Schedule of Facility Covenants | The required ratios vary providing a gradually decreasing maximum secured net leverage ratio and a gradually increasing minimum interest coverage ratio, as set forth in the following table: Any Fiscal Quarter Ended in the Calendar Year Ending: Maximum Minimum December 31, 2018 3.50x 3.75x December 31, 2019 and thereafter 3.00x 4.00x |
Schedule of Long-term Debt Instruments | The estimated fair values of our long-term debt instruments are described in the table below: September 30, September 30, Senior secured Term Loan A $ 991.9 $ 1,364.8 Senior unsecured 5.75% notes due on September 1, 2023 437.3 449.3 Senior unsecured 5.00% notes due on February 14, 2025 294.0 311.9 Unsecured debentures 42.9 46.8 Total $ 1,766.1 $ 2,172.8 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in OCL by Component | The following tables represent the changes in Accumulated other comprehensive income (loss) by component in fiscal 2018 , 2017 and 2016 : Year Ended September 30, 2018 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending 3 Derivative instruments and hedges: Foreign exchange forward contracts 1 $ 0.4 $ 0.3 $ 0.7 $ (0.1 ) $ 0.6 $ (0.4 ) $ 0.6 $ 0.2 Interest rate swaps 2 22.8 (5.3 ) 17.5 (3.9 ) 13.6 4.7 13.6 18.3 Cross-currency swaps 2 (2.2 ) $ — (2.2 ) 0.5 (1.7 ) — (1.7 ) (1.7 ) Derivative instruments and hedges total 21.0 (5.0 ) 16.0 (3.5 ) 12.5 4.3 12.5 16.8 Foreign currency translation adjustment (24.0 ) — (24.0 ) — (24.0 ) (81.3 ) (24.0 ) (105.3 ) Change in pension and postretirement defined benefit plans 7.9 3.0 10.9 (2.4 ) 8.5 (33.0 ) 8.5 (24.5 ) Total $ 4.9 $ (2.0 ) $ 2.9 $ (5.9 ) $ (3.0 ) $ (110.0 ) $ (3.0 ) $ (113.0 ) 1 We are subject to variability in foreign currency exchange rates due to our international operations. Exposure to this variability is periodically managed primarily through the use of natural hedges, whereby funding obligations and assets are both managed in the local currency. From time-to-time, we enter into currency exchange agreements to manage our exposure arising from fluctuating exchange rates related to specific and projected transactions. We operate this program pursuant to documented corporate risk management policies and do not enter into derivative transactions for speculative purposes. The sensitivity of earnings and cash flows to variability in exchange rates is assessed by applying an appropriate range of potential rate fluctuations to our assets, obligations and projected results of operations denominated in foreign currencies. Our currency risk consists primarily of foreign currency denominated firm commitments and projected foreign currency denominated intercompany and third-party transactions. As of September 30, 2018 , the notional amount of open foreign exchange contracts was $5.5 million . These contracts were in a net asset position reported in Other current assets with a fair value of $0.1 million . The maximum length of time over which we hedge transaction exposures is generally 15 months. Derivative gains and losses, initially reported as a component of Accumulated other comprehensive income (loss), are reclassified to earnings in the period when the transaction affects earnings. 2 See Note 4 for information related to our interest rate and cross-currency swap agreements. 3 The estimated net amount of gains and losses that are reported in Accumulated other comprehensive (loss) as of September 30, 2018 that is expected to be reclassified into earnings within the next 12 months is $6.0 million. Year Ended September 30, 2017 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Derivative instruments and hedges: Foreign exchange forward contracts $ (0.4 ) $ (0.2 ) $ (0.6 ) $ 0.1 $ (0.5 ) $ 0.1 $ (0.5 ) $ (0.4 ) Interest rate swaps 13.1 (0.7 ) 12.4 (4.5 ) 7.9 (3.2 ) 7.9 4.7 Derivative instruments and hedges total 12.7 (0.9 ) 11.8 (4.4 ) 7.4 (3.1 ) 7.4 4.3 Foreign currency translation adjustment 32.9 1.0 33.9 — 33.9 (115.2 ) 33.9 (81.3 ) Change in pension and postretirement defined benefit plans 22.1 5.9 28.0 (10.2 ) 17.8 (50.8 ) 17.8 (33.0 ) Total $ 67.7 $ 6.0 $ 73.7 $ (14.6 ) $ 59.1 $ (169.1 ) $ 59.1 $ (110.0 ) Year Ended September 30, 2016 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Derivative instruments and hedges: Foreign exchange forward contracts $ 0.3 $ (0.2 ) $ 0.1 $ — $ 0.1 $ — $ 0.1 $ 0.1 Interest rate swaps (5.2 ) 0.1 (5.1 ) 1.9 (3.2 ) — (3.2 ) (3.2 ) Derivative instruments and hedges total (4.9 ) (0.1 ) (5.0 ) 1.9 (3.1 ) — (3.1 ) (3.1 ) Foreign currency translation adjustment (22.4 ) — (22.4 ) — (22.4 ) (92.8 ) (22.4 ) (115.2 ) Change in pension and postretirement defined benefit plans (8.5 ) 4.4 (4.1 ) 1.3 (2.8 ) (48.0 ) (2.8 ) (50.8 ) Total $ (35.8 ) $ 4.3 $ (31.5 ) $ 3.2 $ (28.3 ) $ (140.8 ) $ (28.3 ) $ (169.1 ) |
Schedule of Items Reclassified out of AOCL | The following table represents the items reclassified out of Accumulated other comprehensive income (loss) and the related tax effects in fiscal 2018 , 2017 and 2016 : Year Ended September 30 2018 2017 2016 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Derivative instruments and hedges: Foreign exchange forward contracts (a) $ 0.3 $ — $ 0.3 $ (0.2 ) $ — $ (0.2 ) $ (0.2 ) $ — $ (0.2 ) Interest rate swaps (b) (5.3 ) 1.2 (4.1 ) (0.7 ) 0.3 (0.4 ) 0.1 — 0.1 Derivative instruments and hedges total $ (5.0 ) $ 1.2 $ (3.8 ) $ (0.9 ) $ 0.3 $ (0.6 ) $ (0.1 ) $ — $ (0.1 ) Foreign currency translation adjustment (c) — — — 1.0 — 1.0 — — — Change in pension and postretirement defined benefit plans (d) 3.0 (1.0 ) 2.0 5.9 (2.2 ) 3.7 4.4 (1.3 ) 3.1 (a) Reclassified from Accumulated other comprehensive income (loss) into Investment income and other, net. (b) Reclassified from Accumulated other comprehensive income (loss) into Interest expense. (c) Reclassified from Accumulated other comprehensive income (loss) into Special charges. (d) Reclassified from Accumulated other comprehensive income (loss) into Cost of goods sold and Selling and administrative expenses. These components are included in the computation of net periodic pension expense. |
Retirement and Postretirement_2
Retirement and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Master Defined Benefit Retirement Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Components of Net Pension Expense | The components of net periodic benefit cost for our defined benefit retirement plans were as follows: Year Ended September 30 2018 2017 2016 Service cost $ 4.8 $ 5.8 $ 5.0 Interest cost 11.0 9.9 10.9 Expected return on plan assets (15.7 ) (14.6 ) (13.0 ) Amortization of unrecognized prior service cost, net 0.1 0.2 0.3 Amortization of net loss 4.5 6.1 4.5 Net periodic benefit cost 4.7 7.4 7.7 Special termination benefits — 0.1 — Net pension expense $ 4.7 $ 7.5 $ 7.7 |
Schedule of Changes in Obligations, Assets and Funded Status | The change in benefit obligations, plan assets and funded status, along with amounts recognized in the Consolidated Balance Sheets for our defined benefit retirement plans were as follows: Year Ended September 30 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 345.8 $ 347.1 Service cost 4.8 5.8 Interest cost 11.0 9.9 Actuarial gain (13.8 ) (5.7 ) Benefits paid (12.8 ) (12.5 ) Acquisitions 0.1 — Special termination benefits — 0.1 Exchange rate (gain) loss (0.5 ) 1.1 Benefit obligation at end of year 334.6 345.8 Change in plan assets: Fair value of plan assets at beginning of year 284.4 267.0 Actual return on plan assets 7.1 28.8 Employer contributions 1.1 1.1 Benefits paid (12.8 ) (12.5 ) Fair value of plan assets at end of year 279.8 284.4 Funded status and net amounts recognized $ (54.8 ) $ (61.4 ) Amounts recorded in the Consolidated Balance Sheets: Accrued pension benefits, current portion $ (1.1 ) $ (1.2 ) Accrued pension benefits, long-term (53.7 ) (60.2 ) Net amount recognized $ (54.8 ) $ (61.4 ) |
Schedule of Accumulated Benefit Obligation | Selected information for our plans, including plans with accumulated benefit obligations exceeding plan assets, was as follows: September 30, 2018 September 30, 2017 PBO ABO Plan Assets PBO ABO Plan Assets Master plan $ 309.5 $ 292.7 $ 279.6 $ 319.8 $ 301.5 $ 284.1 International plans 20.5 18.8 0.2 20.8 19.0 0.3 Supplemental executive plan 4.6 4.6 — 5.2 5.2 — $ 334.6 $ 316.1 $ 279.8 $ 345.8 $ 325.7 $ 284.4 |
Schedule of Actuarial Assumptions | The weighted average assumptions used in accounting for our domestic pension plans were as follows: 2018 2017 2016 Weighted average assumptions to determine benefit obligations at the measurement date: Discount rate for obligation 4.2% 3.9% 3.7% Rate of compensation increase 3.0% 3.0% 3.0% Weighted average assumptions to determine benefit cost for the year: Discount rate for expense 3.9% 3.7% 4.4% Expected rate of return on plan assets 6.0% 5.8% 5.8% Rate of compensation increase 3.0% 3.0% 3.0% |
Schedule of Allocation of Plan Assets | The weighted average asset allocations of our master defined benefit retirement plan as of September 30, 2018 and 2017 , by asset category, along with target allocations, are as follows: 2018 Target Allocation 2017 Target Allocation 2018 Actual Allocation 2017 Actual Allocation Equity securities 31%-37% 37% - 45% 35% 42% Fixed income securities 63%-69% 55% - 63% 65% 58% Total 100% 100% |
Schedule of Fair Value Measurements of Plan Assets | In fiscal 2017 , we adopted revised disclosure guidance related to investments measured at NAV as a practical expedient, under which they are no longer categorized in the fair value hierarchy. The following table summarizes these assets by category: September 30, 2018 September 30, 2017 Equities (a) U.S. companies $ 50.0 $ 58.6 International companies 46.4 59.4 Fixed income securities (a) 179.4 159.2 Total plan assets at fair value, excluding cash $ 275.8 $ 277.2 (a) These investments are commingled funds and/or collective trusts valued using the net asset value (“NAV”) unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund. |
Schedule of Estimated Future Benefit Payments | The benefit payments, which are expected to be funded through plan assets and company contributions and reflect expected future service, are expected to be paid as follows: Pension Benefits 2019 $ 14.4 2020 14.5 2021 15.3 2022 16.0 2023 16.7 2024-2028 95.5 |
Postretirement Health Care Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Obligations, Assets and Funded Status | The change in the accumulated postretirement benefit obligation was as follows: Year Ended September 30 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 19.4 $ 21.6 Service cost 0.3 0.4 Interest cost 0.6 0.5 Plan amendments — (0.7 ) Actuarial gain (2.4 ) (1.8 ) Benefits paid (1.2 ) (0.9 ) Retiree contributions 0.3 0.3 Benefit obligation at end of year $ 17.0 $ 19.4 Amounts recorded in the Consolidated Balance Sheets: Accrued benefits obligation, current portion $ 1.6 $ 1.5 Accrued benefits obligation, long-term 15.4 17.9 Net amount recognized $ 17.0 $ 19.4 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Stock-Based Compensation Cost | The following table sets forth a summary of the annual stock-based compensation cost that was charged against income for all types of awards: Year Ended September 30 2018 2017 2016 Stock-based compensation cost (pre-tax) $ 28.1 $ 23.0 $ 23.1 Income tax benefit (22.7 ) (16.5 ) (7.9 ) Stock-based compensation cost, net of tax $ 5.4 $ 6.5 $ 15.2 |
Schedule of Weighted Average Fair Value per Share of Stock Options and Related Valuation Assumptions | The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values: Year Ended September 30 2018 2017 2016 Weighted average fair value per share $22.50 $15.05 $14.07 Valuation assumptions: Risk-free interest rate 2.2% 1.7% 1.6% Expected dividend yield 0.9% 1.3% 1.2% Expected volatility 30.8% 33.2% 33.1% Weighted average expected life (years) 4.9 4.9 4.9 |
Schedule of Transactions under Stock Option Plans | The following table summarizes transactions under our stock option plans in fiscal 2018 : Weighted Weighted Weighted Aggregate Balance Outstanding as of October 1, 2017 1,705 $ 41.79 Granted 372 80.91 Exercised (1,030 ) 38.88 Cancelled/Forfeited (135 ) 66.27 Balance Outstanding as of September 30, 2018 912 $ 57.40 7.2 $ 33.8 Exercisable as of September 30, 2018 357 $ 41.92 5.3 $ 18.8 Options Expected to Vest 481 $ 66.56 8.4 $ 13.4 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $94.40 , as reported by the New York Stock Exchange on September 30, 2018 . This amount, which changes continuously based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date. |
Schedule of Transactions for Nonvested RSUs | The following table summarizes transactions for our nonvested RSUs in fiscal 2018 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested RSUs as of October 1, 2017 521 $ 51.39 Granted 213 81.54 Vested (340) 47.31 Forfeited (76) 60.71 Nonvested RSUs as of September 30, 2018 318 $ 73.72 |
Schedule of Weighted Average Fair Value per Share of PSUs and Related Valuation Assumptions | The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted in fiscal 2018 , 2017 and 2016 are based on company-specific performance targets, with a total shareholder return collar. Year Ended September 30 2018 2017 2016 Weighted average fair value per share $87.42 $55.95 $50.51 Valuation assumptions: Risk-free interest rate 1.9% 1.2% 1.1% Expected dividend yield 0.0% 0.0% 0.0% Expected volatility 21.9% 22.6% 22.3% |
Schedule of Transactions for Nonvested PSUs | The following table summarizes transactions for our nonvested PSUs in fiscal 2018 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested PSUs as of October 1, 2017 345 $ 53.40 Granted 213 87.42 Vested (174) 75.77 Forfeited (93) 69.39 Nonvested PSUs as of September 30, 2018 291 $ 69.36 |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Special Charges [Abstract] | |
Restructuring Activity | The reserve activity for severance and other benefits in fiscal 2018 and 2017 was as follows: Balance as of September 30, 2016 $ 14.7 Expenses 9.7 Cash Payments (14.3 ) Reversals (1.1 ) Balance as of September 30, 2017 9.0 Expenses 21.3 Cash Payments (20.9 ) Reversals (0.9 ) Balance as of September 30, 2018 $ 8.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income before Income Taxes | The significant components of income before income taxes and the consolidated income tax provision were as follows: Year Ended September 30 2018 2017 2016 Income before income taxes: Domestic $ 101.8 $ 129.0 $ 92.2 Foreign 95.4 54.0 46.1 Total $ 197.2 $ 183.0 $ 138.3 |
Schedule of Income Tax Expense | Income tax expense: Current provision U.S. Federal $ 5.9 $ 61.6 $ 4.7 State 3.5 8.6 2.2 Foreign 20.2 13.3 9.1 Total current provision 29.6 83.5 16.0 Deferred provision: U.S. Federal (83.4 ) (34.9 ) 21.8 State (2.8 ) 1.3 1.2 Foreign 1.4 0.8 (23.5 ) Total deferred provision (84.8 ) (32.8 ) (0.5 ) Income tax expense $ (55.2 ) $ 50.7 $ 15.5 |
Reconciliation of Income Tax Expense to Income Tax at Statutory Rate | Differences between income tax expense reported for financial reporting purposes and that computed based upon the application of the statutory U.S. Federal tax rate to the reported income before income taxes were as follows: Year Ended September 30 2018 2017 2016 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income U.S. Federal income tax (a) $ 48.4 24.5 % $ 64.1 35.0 % $ 48.4 35.0 % State income tax (b) 2.9 1.5 % 4.1 2.2 % 2.9 2.1 % Foreign income tax (c) (23.3 ) (11.8 )% (35.6 ) (19.4 )% (14.0 ) (10.1 )% Application of federal research tax credits (5.6 ) (2.9 )% (3.6 ) (2.0 )% (5.6 ) (4.0 )% Application of foreign tax credits (1.0 ) (0.5 )% (15.0 ) (8.2 )% (0.5 ) (0.4 )% Valuation of tax attributes 23.4 11.9 % 36.3 19.8 % (14.4 ) (10.4 )% Foreign inclusions (0.9 ) (0.4 )% 11.5 6.3 % 0.9 0.6 % Domestic manufacturer’s deduction (0.9 ) (0.4 )% (4.4 ) (2.4 )% (1.8 ) (1.3 )% Excess tax benefits from share based awards (16.1 ) (8.2 )% (8.9 ) (4.9 )% — — % U.S. tax benefit of foreign currency loss (9.2 ) (4.7 )% — — % — — % U.S. tax reform deferred tax remeasurement (93.8 ) (47.6 )% — — % — — % U.S. tax reform transition tax 22.9 11.6 % — — % — — % Other, net (2.0 ) (1.0 )% 2.2 1.3 % (0.4 ) (0.3 )% Income tax expense $ (55.2 ) (28.0 )% $ 50.7 27.7 % $ 15.5 11.2 % (a) At statutory rate. (b) Net of U.S. Federal benefit. (c) U.S. Federal tax rate differential. |
Schedule of Deferred Taxes | The tax effect of temporary differences that gave rise to the deferred tax balance sheet accounts were as follows: Year Ended September 30 2018 2017 Deferred tax assets: Employee benefit accruals $ 34.9 $ 64.5 Inventory 12.7 16.6 Net operating loss carryforwards 84.5 70.7 Tax credit carryforwards 20.5 23.3 Other, net 26.4 41.4 179.0 216.5 Less: Valuation allowance (80.2 ) (58.2 ) Total deferred tax assets 98.8 158.3 Deferred tax liabilities: Depreciation (19.2 ) (28.6 ) Amortization (216.8 ) (349.7 ) Other, net (9.1 ) (5.3 ) Total deferred tax liabilities (245.1 ) (383.6 ) Deferred tax asset (liability) - net $ (146.3 ) $ (225.3 ) |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A rollforward of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended September 30 2018 2017 2016 Balance as of October 1 $ 4.5 $ 5.1 $ 5.8 Increases in tax position of prior years 2.3 0.1 0.8 Decreases in tax position of prior years — — (0.1 ) Increases in tax position during the current year 0.3 — — Settlements with taxing authorities — — (0.3 ) Lapse of applicable statute of limitations (0.9 ) (0.8 ) (0.5 ) Change in positions due to acquisitions — — (0.6 ) Foreign currency adjustments — 0.1 — Total change 1.7 (0.6 ) (0.7 ) Balance as of September 30 $ 6.2 $ 4.5 $ 5.1 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculated Earnings per share | Earnings per share are calculated as follows (share information in thousands): Year Ended September 30 2018 2017 2016 Net income attributable to common shareholders $ 252.4 $ 133.6 $ 124.1 Average basic shares outstanding 66,234 65,599 65,333 Add potential effect of exercise of stock options and other unvested equity awards 1,378 1,626 1,263 Average diluted shares outstanding 67,612 67,225 66,596 Net income attributable to common shareholders per basic common share $ 3.81 $ 2.04 $ 1.90 Net income attributable to common shareholders per diluted common share $ 3.73 $ 1.99 $ 1.86 Shares with anti-dilutive effect excluded from the computation of diluted EPS 263 20 395 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Consolidated Financial Information | Year Ended September 30 2018 2017 2016 Net revenue: Patient Support Systems $ 1,429.5 $ 1,423.9 $ 1,437.2 Front Line Care 960.2 885.3 809.7 Surgical Solutions 458.3 434.5 408.3 Total net revenue $ 2,848.0 $ 2,743.7 $ 2,655.2 Depreciation and amortization of property, plant, equipment and intangibles: Patient Support Systems $ 37.4 $ 47.0 $ 51.7 Front Line Care 110.7 107.4 98.7 Surgical Solutions 20.8 22.1 22.3 Corporate 27.6 27.1 27.1 Total depreciation and amortization of property, plant, equipment and intangibles $ 196.5 $ 203.6 $ 199.8 Divisional income: Patient Support Systems $ 281.3 $ 249.6 $ 245.2 Front Line Care 253.0 231.8 202.1 Surgical Solutions 53.1 42.5 46.2 Other operating costs: Non-allocated operating costs, administrative costs, and other 220.3 213.1 223.3 Special charges 77.6 37.4 39.9 Operating profit 289.5 273.4 230.3 Interest expense (95.0 ) (88.9 ) (90.4 ) Loss on extinguishment of debt — — (10.8 ) Investment income and other, net 2.7 (1.5 ) 9.2 Income before income taxes $ 197.2 $ 183.0 $ 138.3 |
Schedule of Geographic Information | Geographic data for net revenue and long-lived assets were as follows: Year Ended September 30 2018 2017 2016 Net revenue to unaffiliated customers: (a) United States $ 1,956.4 $ 1,887.6 $ 1,829.4 Foreign 891.6 856.1 825.8 Total net revenue $ 2,848.0 $ 2,743.7 $ 2,655.2 Long-lived assets: United States $ 239.5 $ 243.9 $ 234.2 Foreign 88.8 111.5 115.8 Total long-lived assets $ 328.3 $ 355.4 $ 350.0 (a) Net revenue is attributed to geographic areas based on the location of the customer. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Consolidated Financial Data | The following table presents selected consolidated financial data by quarter for fiscal 2018 and 2017. 2018 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 669.7 $ 710.5 $ 708.6 $ 759.2 Gross Profit 319.6 350.4 348.0 376.2 Net Income Attributable to Common Shareholders 88.3 28.5 45.2 90.4 Net Income Attributable to Common Shareholders per Common Share - Basic 1.34 0.43 0.68 1.36 Net Income Attributable to Common Shareholders per Common Share - Diluted 1.31 0.42 0.67 1.33 2017 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 637.4 $ 678.9 $ 689.1 $ 783.3 Gross Profit 302.6 324.4 331.1 362.5 Net Income Attributable to Common Shareholders 23.8 34.4 6.0 69.4 Net Income Attributable to Common 0.36 0.52 0.09 1.06 Net Income Attributable to Common 0.36 0.51 0.09 1.03 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | The table below indicates the minimum annual rental commitments (excluding renewable periods) aggregating $129.6 million , for manufacturing facilities, warehouse distribution centers, service centers and sales offices, under non-cancelable operating leases. Amount 2019 $ 31.0 2020 22.9 2021 18.6 2022 14.9 2023 14.2 2024 and beyond 28.0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Nature of Operations) (Details) | 12 Months Ended |
Sep. 30, 2018employeescore_areacountriessegment | |
Accounting Policies [Abstract] | |
Number of employees (more than) | employees | 10,000 |
Number of countries | countries | 100 |
Number of core areas | core_area | 5 |
Number of reportable business segments | segment | 3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Inventories | ||
Percentage of inventories determined by LIFO method | 23.00% | 21.00% |
Inventory, Net [Abstract] | ||
Finished products | $ 139.7 | $ 147.5 |
Work in process | 44.8 | 38.8 |
Raw materials | 107.2 | 98.2 |
Total | 291.7 | 284.5 |
Inventories if FIFO method were used | $ 0.6 | $ 2 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 78.6 | $ 82 | $ 86.2 |
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | 915 | 979.6 | |
Accumulated Depreciation | $ 586.7 | 624.2 | |
Land improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 6 years | ||
Land improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Land and land improvements [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | $ 18.4 | 18.4 | |
Accumulated Depreciation | 3.7 | 3.3 | |
Buildings and building equipment [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | 209 | 196.1 | |
Accumulated Depreciation | $ 89.6 | 84.7 | |
Buildings and building equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Buildings and building equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Machinery and equipment [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | $ 410.9 | 402.6 | |
Accumulated Depreciation | $ 288.1 | 265.1 | |
Machinery and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Machinery and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Equipment leased to others | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | $ 276.7 | 362.5 | |
Accumulated Depreciation | $ 205.3 | $ 271.1 | |
Equipment leased to others | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 2 years | ||
Equipment leased to others | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Guarantees) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | |||
Warranty term, generally | 1 year | ||
Guarantees | |||
Balance as of October 1 | $ 25.5 | $ 27.5 | $ 32.1 |
Provision for warranties in the period | 10.8 | 13.9 | 13.9 |
Warranty reserves acquired | 0 | 1.5 | 2.6 |
Warranty claims incurred in the period | (15.8) | (17.4) | (21.1) |
Balance as of September 30 | $ 20.5 | $ 25.5 | $ 27.5 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Other Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 20 | |||||
Research and Development Costs | ||||||
Research and development expenses | 135.6 | $ 133.7 | $ 133.5 | |||
Software costs capitalized | 2.4 | 2.3 | ||||
Advertising Costs | ||||||
Advertising costs | 12 | 13.8 | 10.4 | |||
Income Taxes | ||||||
Unrecognized Tax Benefits | 6.2 | 4.5 | $ 5.1 | $ 5.8 | ||
Valuation allowances on deferred tax assets | $ (80.2) | (58.2) | ||||
Derivative Instruments and Hedging Activity | ||||||
Derivative term, generally (no greater than) | 15 months | |||||
Dispositions | ||||||
Proceeds on sale of businesses | $ 1 | 5.8 | 10.3 | |||
Sale of non-core products | $ 10.5 | 10.5 | ||||
Gain on sale of perinatal data management system | $ 10.1 | $ (23) | $ 1 | $ 10.1 | ||
Minimum [Member] | ||||||
Research and Development Costs | ||||||
Useful life of intangible assets | 1 year | |||||
Minimum [Member] | Computer Software, Intangible Asset [Member] | ||||||
Research and Development Costs | ||||||
Useful life of intangible assets | 3 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Intangible Assets (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Minimum [Member] | Computer Software, Intangible Asset [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Maximum [Member] | Computer Software, Intangible Asset [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) | Feb. 14, 2017 | Sep. 21, 2016 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Feb. 28, 2017 |
Business Acquisition [Line Items] | |||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 1,000,000 | $ 5,800,000 | $ 10,300,000 | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,500,000 | 10,500,000 | |||||
Gain (Loss) on Disposition of Other Assets | 10,100,000 | (23,000,000) | 1,000,000 | 10,100,000 | |||
Cash payment, net of cash acquired | 0 | 311,400,000 | 25,300,000 | ||||
Goodwill | $ 1,584,400,000 | 1,738,300,000 | 1,759,600,000 | 1,584,400,000 | |||
Royalty Guarantees, Commitments, Amount | 22,000,000 | ||||||
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Senior unsecured notes | $ 300,000,000 | ||||||
Mortara [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 330,000,000 | ||||||
Cash payment, net of cash acquired | 311,200,000 | ||||||
Goodwill | $ 165,500,000 | ||||||
Tridien Medical [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment, net of cash acquired | $ 26,000,000 | ||||||
Working capital | 10,400,000 | ||||||
Goodwill | 7,400,000 | ||||||
Intangible assets | $ 6,300,000 | ||||||
Welch Allyn Holdings, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill, Purchase Accounting Adjustments | $ (23,700,000) | ||||||
Architectural Products Business [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | 4,500,000 | ||||||
Volker [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Gain (Loss) on Disposition of Business | $ 1,000,000 | ||||||
Impairment charges relating to non-cash write-downs of long-lived assets and working capital | 25,400,000 | ||||||
Transaction related costs for businesses to be disposed of | $ 3,000,000 |
Acquisitions (Schedule of Fair
Acquisitions (Schedule of Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Feb. 14, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
Goodwill | $ 1,738.3 | $ 1,759.6 | $ 1,584.4 | |
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract] | ||||
Cash payment, net of cash acquired | $ 0 | $ 311.4 | $ 25.3 | |
Mortara [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
Trade receivables | $ 16.4 | |||
Inventory | 21.5 | |||
Other current assets | 2.8 | |||
Property, plant and equipment | 18.2 | |||
Goodwill | 165.5 | |||
Other noncurrent assets | 4.8 | |||
Current liabilities | (22.8) | |||
Noncurrent liabilities | (1.2) | |||
Total purchase price, net of cash acquired | 311.2 | |||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract] | ||||
Cash payment, net of cash acquired | 311.2 | |||
Mortara [Member] | Trade names [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
Intangibles (finite-lived) | $ 15.8 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Weighted-average useful life | 7 years | |||
Mortara [Member] | Customer relationships [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
Intangibles (finite-lived) | $ 37.9 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Weighted-average useful life | 8 years | |||
Mortara [Member] | Developed technology [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
Intangibles (finite-lived) | $ 52.3 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Weighted-average useful life | 7 years |
Acquisitions Asset Acquisitions
Acquisitions Asset Acquisitions (Details) $ in Millions | Oct. 01, 2018USD ($) |
Business Combinations [Abstract] | |
Cash Paid for Asset Acquisition | $ 17 |
Goodwill and Indefinite-Lived_3
Goodwill and Indefinite-Lived Intangible Assets (Schedule of Goodwill Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Line Items] | |||
Goodwill | $ 2,211.1 | $ 2,232.4 | $ 2,057.2 |
Accumulated impairment losses | (472.8) | (472.8) | (472.8) |
Goodwill [Roll Forward] | |||
Goodwill, net | 1,759.6 | 1,584.4 | |
Goodwill related to acquisitions | (0.8) | (164.3) | |
Goodwill, Written Off Related to Deconsolidation of VIE | (13.2) | ||
Currency translation effect | (8.9) | 10.9 | |
Goodwill, net | 1,738.3 | 1,759.6 | |
Patient Support Systems [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 544.4 | 545 | 544.1 |
Accumulated impairment losses | (472.8) | (472.8) | 472.8 |
Goodwill [Roll Forward] | |||
Goodwill, net | 72.2 | 71.3 | |
Goodwill related to acquisitions | 0 | (0.5) | |
Goodwill, Written Off Related to Deconsolidation of VIE | 0 | ||
Currency translation effect | (0.6) | 1.4 | |
Goodwill, net | 71.6 | 72.2 | |
Front Line Care [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 1,370.6 | 1,375.6 | 1,205.5 |
Accumulated impairment losses | 0 | 0 | |
Goodwill [Roll Forward] | |||
Goodwill, net | 1,375.6 | 1,205.5 | |
Goodwill related to acquisitions | (0.8) | (164.8) | |
Goodwill, Written Off Related to Deconsolidation of VIE | 0 | ||
Currency translation effect | (5.8) | 5.3 | |
Goodwill, net | 1,370.6 | 1,375.6 | |
Surgical Solutions [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 296.1 | 311.8 | $ 307.6 |
Accumulated impairment losses | 0 | 0 | |
Goodwill [Roll Forward] | |||
Goodwill, net | 311.8 | 307.6 | |
Goodwill related to acquisitions | 0 | 0 | |
Goodwill, Written Off Related to Deconsolidation of VIE | (13.2) | ||
Currency translation effect | (2.5) | 4.2 | |
Goodwill, net | $ 296.1 | $ 311.8 |
Goodwill and Indefinite-Lived_4
Goodwill and Indefinite-Lived Intangible Assets (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Capitalized Computer Software, Amortization | $ 11.1 | $ 12.8 | $ 17 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 532.8 | 492.3 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 466.9 | ||
Number of reportable business segments | segment | 3 | ||
Indefinite-lived intangible assets | $ 466.9 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Software and Software Development Costs [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Software and Software Development Costs [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Mortara [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 37.9 | 37.9 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 7.9 | 2.9 | |
Mortara [Member] | Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 52.3 | 52.3 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 12.5 | 4.6 | |
Welch Allyn Holdings, Inc. [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 513.6 | 517.4 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 187.9 | 125.5 | |
Welch Allyn Holdings, Inc. [Member] | Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 54 | 54 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 24.6 | $ 16.6 |
Goodwill and Indefinite-Lived_5
Goodwill and Indefinite-Lived Intangible Assets Intangible Assets Cost & Accum Amort (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Patents, Gross | $ 3 | $ 3 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 532.8 | 492.3 | |
Intangible Assets, Gross (Excluding Goodwill) | 1,560.5 | 1,636.3 | |
Capitalized Computer Software, Gross | 167.1 | 166.1 | |
Capitalized Computer Software, Accumulated Amortization | 139 | 133 | |
Finite-Lived Trademarks, Gross | 500 | ||
Indefinite-Lived Trademarks | 501.2 | ||
Other Finite-Lived Intangible Assets, Gross | 890.4 | 966 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 115 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 103 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 87.5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 74.3 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 58.5 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 122.6 | ||
Amortization of Intangible Assets | 117.9 | 121.6 | $ 113.6 |
Patents [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 2.2 | 2 | |
Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 16.8 | 14.4 | |
Other Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 374.8 | 342.9 | |
Welch Allyn Holdings, Inc. [Member] | Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 187.9 | 125.5 | |
Finite-Lived Intangible Assets, Gross | $ 513.6 | $ 517.4 | |
Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Minimum [Member] | Software and Software Development Costs [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Minimum [Member] | Computer Software, Intangible Asset [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Financing Agreements (Schedule
Financing Agreements (Schedule of Total Debt) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | $ 351 | $ 73.2 | $ 767.9 | |
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Current portion of long-term debt | 0.1 | 109.8 | ||
Long-term debt | 1,790.4 | 2,120.4 | ||
Total debt | 1,972.9 | 2,309.3 | ||
Less Short-term borrowings | $ 182.5 | 188.9 | ||
Revolving credit facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date | Sep. 1, 2021 | |||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Revolving credit facility, matures September 2021 | $ 0 | 90 | ||
Senior secured Term Loan A [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Long-term Debt | 350.9 | |||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 | |||
Debt Instrument, Maturity Date | Sep. 30, 2021 | |||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Long-term debt | $ 1,029.7 | 1,266.7 | ||
Senior unsecured 5.75% Notes due on September 1, 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date | Sep. 1, 2023 | |||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Long-term debt | $ 420.8 | 419.9 | ||
Stated interest rate (percent) | 5.75% | |||
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date | Feb. 15, 2025 | |||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Long-term debt | $ 296.4 | 295.8 | ||
Stated interest rate (percent) | 5.00% | |||
Unsecured 7.00% debentures due on February 15, 2024 [Member] | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Total debt | $ 13.6 | 13.6 | ||
Stated interest rate (percent) | 7.00% | |||
Unsecured 6.75% debentures due on December 15, 2027 [Member] | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Total debt | $ 29.5 | 29.6 | ||
Stated interest rate (percent) | 6.75% | |||
Securitization Program [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 364 days | |||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Securitization Program | $ 110 | 79.1 | ||
Note Securitization Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 364 days | |||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Securitization Program | 72.4 | 0 | ||
Other [Member] | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||
Total debt | $ 0.4 | $ 4.8 |
Financing Agreements (Narrative
Financing Agreements (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2018USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2018USD ($)derivative | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Feb. 28, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 10,800,000 | $ 0 | $ 0 | $ 10,800,000 | ||
Costs incurred related to amendment of facility | 6,500,000 | |||||
Capitalized debt costs | $ 4,500,000 | |||||
Currency Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative agreements | derivative | 2 | |||||
Interest rate swap agreement, notional amount | $ 197,500,000 | |||||
Interest rate swap, fair value | $ (1,200,000) | |||||
Interest Rate Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative agreements | derivative | 7 | |||||
Interest rate swap agreement, notional amount | $ 750,000,000 | |||||
Fair Value, Net Asset (Liability) | 7,300,000 | |||||
Interest Rate Swap [Member] | Other Assets [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swap, fair value | 24,800,000 | |||||
Interest Rate Derivative Assets, at Fair Value | 8,500,000 | |||||
Interest Rate Swap [Member] | Other Current Liabilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate Derivative Liabilities, at Fair Value | 1,200,000 | |||||
Securitization Program [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable securitization program | 364 days | |||||
Accounts receivable securitization program, amount | $ 110,000,000 | |||||
Securitization program outstanding amount | $ 110,000,000 | 79,100,000 | ||||
Securitization Program [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 0.80% | |||||
Note Securitization Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable securitization program | 364 days | |||||
Accounts receivable securitization program, amount | $ 90,000,000 | |||||
Securitization program outstanding amount | $ 72,400,000 | 0 | ||||
Note Securitization Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 1.00% | |||||
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable securitization program, amount | $ 300,000,000 | |||||
Stated interest rate (percent) | 5.00% | |||||
Debt maturity date | Feb. 15, 2025 | |||||
Senior unsecured 5.75% Notes due on September 1, 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable securitization program, amount | $ 425,000,000 | |||||
Stated interest rate (percent) | 5.75% | |||||
Debt maturity date | Sep. 1, 2023 | |||||
Senior secured Term Loan A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity date | Sep. 30, 2021 | |||||
Senior revolving credit facility, maximum borrowing amount | $ 1,462,500,000 | |||||
Revolving credit facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity date | Sep. 1, 2021 | |||||
Senior revolving credit facility, maximum borrowing amount | $ 700,000,000 | |||||
Revolving credit facility, matures September 2021 | 0 | $ 90,000,000 | ||||
Available borrowing capacity | 691,900,000 | |||||
Outstanding letters of credit | $ 8,100,000 | |||||
Senior secured credit facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate during period (less than) | 3.80% |
Financing Agreements (Schedul_2
Financing Agreements (Schedule of Maturities of Long-Term Debt) (Details) - Senior secured Term Loan A [Member] $ in Millions | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 0 |
2,019 | 106.3 |
2,020 | 932.2 |
2,021 | $ 0 |
Financing Agreements (Schedul_3
Financing Agreements (Schedule of Covenants) (Details) - Scenario, Forecast [Member] | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Maximum Secured Net Leverage Ratio | 3 | 3.50 |
Minimum Interest Coverage Ratio | 4 | 3.75 |
Financing Agreements (Schedul_4
Financing Agreements (Schedule of Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 1,766.1 | $ 2,172.8 |
Unsecured debentures [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured, fair value | 42.9 | 46.8 |
Senior secured Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Secured, fair value | 991.9 | 1,364.8 |
Senior unsecured 5.75% Notes due on September 1, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured, fair value | $ 437.3 | 449.3 |
Stated interest rate (percent) | 5.75% | |
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured, fair value | $ 294 | $ 311.9 |
Stated interest rate (percent) | 5.00% |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Changes in AOCL by Component) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | $ 4,900,000 | $ 67,700,000 | $ (35,800,000) |
Reclassification from | (2,000,000) | 6,000,000 | 4,300,000 |
Pre-tax | 2,900,000 | 73,700,000 | (31,500,000) |
Tax effect | (5,900,000) | (14,600,000) | 3,200,000 |
Other comprehensive income (loss) | (3,000,000) | 59,100,000 | (28,300,000) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 1,358,200,000 | ||
Other comprehensive income (loss) | (3,000,000) | 59,100,000 | (28,300,000) |
Ending balance3 | 1,616,200,000 | 1,358,200,000 | |
Foreign Exchange Forward [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Derivative, Notional Amount | 5,500,000 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Derivative, Fair Value, Net | 100,000 | ||
Currency Swap [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Derivative, Notional Amount | 197,500,000 | ||
Interest Rate Swap [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Derivative, Notional Amount | 750,000,000 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Derivative, Fair Value, Net | 7,300,000 | ||
Derivative Instruments and Hedges [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | 21,000,000 | 12,700,000 | (4,900,000) |
Reclassification from | (5,000,000) | (900,000) | (100,000) |
Pre-tax | 16,000,000 | 11,800,000 | (5,000,000) |
Tax effect | (3,500,000) | (4,400,000) | 1,900,000 |
Other comprehensive income (loss) | 12,500,000 | 7,400,000 | (3,100,000) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 4,300,000 | (3,100,000) | 0 |
Other comprehensive income (loss) | 12,500,000 | 7,400,000 | (3,100,000) |
Ending balance3 | 16,800,000 | 4,300,000 | (3,100,000) |
Derivative Instruments and Hedges [Member] | Foreign Exchange Forward [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | 400,000 | (400,000) | 300,000 |
Reclassification from | 300,000 | (200,000) | (200,000) |
Pre-tax | 700,000 | (600,000) | 100,000 |
Tax effect | (100,000) | 100,000 | 0 |
Other comprehensive income (loss) | 600,000 | (500,000) | 100,000 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (400,000) | 100,000 | 0 |
Other comprehensive income (loss) | 600,000 | (500,000) | 100,000 |
Ending balance3 | 200,000 | (400,000) | 100,000 |
Derivative Instruments and Hedges [Member] | Currency Swap [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | (2,200,000) | ||
Reclassification from | 0 | ||
Derivative Instruments and Hedges [Member] | Interest Rate Swap [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | 22,800,000 | 13,100,000 | (5,200,000) |
Reclassification from | (5,300,000) | (700,000) | 100,000 |
Pre-tax | 17,500,000 | 12,400,000 | (5,100,000) |
Tax effect | (3,900,000) | (4,500,000) | 1,900,000 |
Other comprehensive income (loss) | 13,600,000 | 7,900,000 | (3,200,000) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 4,700,000 | (3,200,000) | 0 |
Other comprehensive income (loss) | 13,600,000 | 7,900,000 | (3,200,000) |
Ending balance3 | 18,300,000 | 4,700,000 | (3,200,000) |
Derivative Instruments and Hedges [Member] | Foreign Exchange Contract [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Pre-tax | (2,200,000) | ||
Tax effect | 500,000 | ||
Other comprehensive income (loss) | (1,700,000) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | ||
Other comprehensive income (loss) | (1,700,000) | ||
Ending balance3 | (1,700,000) | 0 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | (24,000,000) | 32,900,000 | (22,400,000) |
Reclassification from | 0 | 1,000,000 | 0 |
Pre-tax | (24,000,000) | 33,900,000 | (22,400,000) |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss) | (24,000,000) | 33,900,000 | (22,400,000) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (81,300,000) | (115,200,000) | (92,800,000) |
Other comprehensive income (loss) | (24,000,000) | 33,900,000 | (22,400,000) |
Ending balance3 | (105,300,000) | (81,300,000) | (115,200,000) |
Change in Pension and Postretiremen Defined Benefit Plans [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | 7,900,000 | 22,100,000 | (8,500,000) |
Reclassification from | 3,000,000 | 5,900,000 | 4,400,000 |
Pre-tax | 10,900,000 | 28,000,000 | (4,100,000) |
Tax effect | (2,400,000) | (10,200,000) | 1,300,000 |
Other comprehensive income (loss) | 8,500,000 | 17,800,000 | (2,800,000) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (33,000,000) | (50,800,000) | (48,000,000) |
Other comprehensive income (loss) | 8,500,000 | 17,800,000 | (2,800,000) |
Ending balance3 | (24,500,000) | (33,000,000) | (50,800,000) |
AOCI Attributable to Parent [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Other comprehensive income (loss) | (3,000,000) | 59,100,000 | (28,300,000) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (110,000,000) | (169,100,000) | (140,800,000) |
Other comprehensive income (loss) | (3,000,000) | 59,100,000 | (28,300,000) |
Ending balance3 | $ (113,000,000) | $ (110,000,000) | $ (169,100,000) |
Other Comprehensive Income (S_2
Other Comprehensive Income (Schedule of Items Reclassified out of AOCL) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ (2,000,000) | $ 6,000,000 | $ 4,300,000 | ||||||||
Tax effect | (55,200,000) | 50,700,000 | 15,500,000 | ||||||||
Net of tax | $ (90,400,000) | $ (45,200,000) | $ (28,500,000) | $ (88,300,000) | $ (69,400,000) | $ (6,000,000) | $ (34,400,000) | $ (23,800,000) | (252,400,000) | (133,600,000) | (124,100,000) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (5,000,000) | (900,000) | (100,000) | ||||||||
Net of tax | (3,800,000) | (600,000) | (100,000) | ||||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 1,000,000 | 0 | ||||||||
Change in Pension and Postretirement Defined Benefit Plans [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3,000,000 | 5,900,000 | 4,400,000 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax effect | 1,200,000 | 300,000 | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax effect | 0 | 0 | 0 | ||||||||
Net of tax | 0 | (1,000,000) | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in Pension and Postretirement Defined Benefit Plans [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax effect | (1,000,000) | (2,200,000) | (1,300,000) | ||||||||
Net of tax | (2,000,000) | (3,700,000) | (3,100,000) | ||||||||
Foreign Exchange Forward [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax effect | 0 | ||||||||||
Foreign Exchange Forward [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 300,000 | (200,000) | (200,000) | ||||||||
Tax effect | 0 | 0 | |||||||||
Net of tax | (300,000) | (200,000) | 200,000 | ||||||||
Interest Rate Swap [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax effect | 0 | ||||||||||
Interest Rate Swap [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (5,300,000) | (700,000) | 100,000 | ||||||||
Tax effect | 1,200,000 | 300,000 | |||||||||
Net of tax | $ 4,100,000 | $ 400,000 | $ (100,000) |
Retirement and Postretirement_3
Retirement and Postretirement Benefit Plans (Schedule of Net Periodic Benefit Cost) (Details) - Pension Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4.8 | $ 5.8 | $ 5 |
Interest cost | 11 | 9.9 | 10.9 |
Expected return on plan assets | (15.7) | (14.6) | (13) |
Amortization of unrecognized prior service cost, net | 0.1 | 0.2 | 0.3 |
Amortization of net loss | 4.5 | 6.1 | 4.5 |
Net periodic benefit cost | 4.7 | 7.4 | 7.7 |
Special termination benefits | 0 | 0.1 | 0 |
Net pension expense | $ 4.7 | $ 7.5 | $ 7.7 |
Retirement and Postretirement_4
Retirement and Postretirement Benefit Plans (Schedule of Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 345.8 | ||
Special termination benefits | 0 | $ 0.1 | |
Benefit obligation at end of year | 334.6 | 345.8 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 284.4 | ||
Fair value of plan assets at end of year | 279.8 | 284.4 | |
Amounts recorded in the Consolidated Balance Sheets: | |||
Accrued pension benefits, long-term | (69.3) | (78.1) | |
Pension Plan [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 345.8 | $ 347.1 | |
Service cost | 4.8 | 5.8 | 5 |
Interest cost | 11 | 9.9 | 10.9 |
Actuarial gain | (13.8) | (5.7) | |
Exchange rate (gain) loss | (0.5) | 1.1 | |
Benefit obligation at end of year | 334.6 | 345.8 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 284.4 | $ 267 | |
Actual return on plan assets | 7.1 | 28.8 | |
Employer contributions | 1.1 | 1.1 | |
Fair value of plan assets at end of year | 279.8 | 284.4 | |
Funded status and net amounts recognized | (54.8) | (61.4) | |
Amounts recorded in the Consolidated Balance Sheets: | |||
Accrued pension benefits, current portion | (1.1) | (1.2) | |
Accrued pension benefits, long-term | (53.7) | (60.2) | |
Net amount recognized | (54.8) | (61.4) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 12.8 | 12.5 | |
Defined Benefit Plan, Benefit Obligation, Business Combination | 0.1 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | $ 12.8 | $ 12.5 |
Retirement and Postretirement_5
Retirement and Postretirement Benefit Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018USD ($)plan | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of retirement plans | plan | 5 | |||
Estimated net actuarial loss that will be amortized over the next fiscal year | $ 2.4 | |||
Estimated prior service cost that will be amortized over the next fiscal year | 0.1 | |||
Accumulated Benefit Obligation | ||||
Accumulated benefit obligation | 316.1 | $ 325.7 | ||
Defined Contribution Plan [Abstract] | ||||
Defined contribution savings plans expense | $ 28.4 | 26.8 | $ 26.8 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of retirement plans | plan | 1 | |||
Net actuarial gains (losses) included in Accumulated Other Comprehensive Income (Loss) | $ (50.2) | (59.9) | ||
Prior service (credits) costs included in Accumulated Other Comprehensive Income (Loss) | 0.5 | 0.6 | ||
Pension items in AOCI, aggregate tax effect | $ (20.2) | 22.8 | ||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Equity securities of one entity, maximum percentage of portfolio | 10.00% | |||
Cash Flows | ||||
Employer contributions | $ 1.1 | $ 1.1 | ||
Defined Benefit Plan [Abstract] | ||||
Discount rate for expense | 3.90% | 3.70% | 4.40% | |
Discount rate for obligation | 4.20% | 3.90% | 3.70% | |
Domestic Plan [Member] | ||||
Accumulated Benefit Obligation | ||||
Accumulated benefit obligation | $ 292.7 | $ 301.5 | ||
Cash Flows | ||||
Funded percentage (in excess of) | 90.00% | |||
Postretirement Health Coverage [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of retirement plans | plan | 2 | |||
Net actuarial gains (losses) included in Accumulated Other Comprehensive Income (Loss) | $ 8.7 | 7.3 | ||
Prior service (credits) costs included in Accumulated Other Comprehensive Income (Loss) | (0.8) | (1) | ||
Pension items in AOCI, aggregate tax effect | 3 | 3.1 | ||
Estimated net actuarial loss that will be amortized over the next fiscal year | (0.8) | |||
Estimated prior service cost that will be amortized over the next fiscal year | (0.2) | |||
Cash Flows | ||||
Employer contributions | $ 1.2 | $ 0.9 | ||
Defined Benefit Plan [Abstract] | ||||
Discount rate for expense | 3.00% | 3.00% | 3.50% | |
Discount rate for obligation | 4.00% | 3.00% | ||
Ultimate health care cost trend rate | 4.50% | |||
Effect of one-percentage-point increase/decrease on service and interest costs | $ 0.1 | |||
Effect of one-percentage-point increase on service and benefit obligation | 1 | |||
Expected employer contributions required in next year | 1.6 | |||
Defined benefit plan estimated future employer contributions in next fiscal, per year, thereafter | $ 2 | |||
Postretirement Health Coverage [Member] | Minimum [Member] | ||||
Defined Benefit Plan [Abstract] | ||||
Health care cost trend rate | 7.00% | |||
Postretirement Health Coverage [Member] | Maximum [Member] | ||||
Defined Benefit Plan [Abstract] | ||||
Discount rate for obligation | 3.30% | |||
Health care cost trend rate | 7.80% | |||
Germany and France [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of retirement plans | plan | 3 | |||
Executives [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of retirement plans | plan | 1 | |||
Cash [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan [Abstract] | ||||
Assets for Plan Benefits, Defined Benefit Plan | $ 4 | $ 7.2 |
Retirement and Postretirement_6
Retirement and Postretirement Benefit Plans (Schedule of Accumulated Benefit Obligation) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | $ 334.6 | $ 345.8 | |
ABO | 316.1 | 325.7 | |
Plan Assets | 279.8 | 284.4 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | 334.6 | 345.8 | $ 347.1 |
Plan Assets | 279.8 | 284.4 | $ 267 |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | 309.5 | 319.8 | |
ABO | 292.7 | 301.5 | |
Plan Assets | 279.6 | 284.1 | |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | 20.5 | 20.8 | |
ABO | 18.8 | 19 | |
Plan Assets | 0.2 | 0.3 | |
Supplemental Executive Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | 4.6 | 5.2 | |
ABO | 4.6 | 5.2 | |
Plan Assets | $ 0 | $ 0 |
Retirement and Postretirement_7
Retirement and Postretirement Benefit Plans (Schedule of Actuarial Assumptions) (Details) - Pension Plan [Member] | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted average assumptions to determine benefit obligations at the measurement date: | |||
Discount rate for obligation | 4.20% | 3.90% | 3.70% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Weighted average assumptions to determine benefit cost for the year: | |||
Discount rate for expense | 3.90% | 3.70% | 4.40% |
Expected rate of return on plan assets | 6.00% | 5.80% | 5.80% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Retirement and Postretirement_8
Retirement and Postretirement Benefit Plans (Schedule of Allocation of Plan Assets) (Details) - Pension Plan [Member] | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 35.00% | 42.00% |
Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 65.00% | 58.00% |
Minimum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .37 | .39 |
Minimum [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .55 | .51 |
Maximum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .45 | .49 |
Maximum [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | .63 | .61 |
Retirement and Postretirement_9
Retirement and Postretirement Benefit Plans (Schedule of Fair Value Measurements of Plan Assets) (Details) - Fair Value Measured at Net Asset Value Per Share [Member] - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 275,800,000 | $ 277,200,000 |
Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | 179,400,000 | 159,200,000 |
U.S. companies [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | 50,000,000 | 58,600,000 |
International companies [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 46,400,000 | $ 59,400,000 |
Retirement and Postretiremen_10
Retirement and Postretirement Benefit Plans (Schedule of Estimated Future Benefit Payments) (Details) - Pension Plan [Member] $ in Millions | Sep. 30, 2018USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,018 | $ 14.4 |
2,019 | 14.5 |
2,020 | 15.3 |
2,021 | 16 |
2,022 | 16.7 |
2024-2028 | $ 95.5 |
Retirement and Postretiremen_11
Retirement and Postretirement Benefit Plans (Schedule of Postretirement Health Care Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of year | $ 345.8 | |
Special termination benefits | 0 | $ 0.1 |
Benefit obligation at end of year | 334.6 | 345.8 |
Amounts recorded in the Consolidated Balance Sheets: | ||
Accrued benefits obligation, long-term | 69.3 | 78.1 |
Postretirement Health Coverage [Member] | ||
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 19.4 | 21.6 |
Service cost | 0.3 | 0.4 |
Interest cost | 0.6 | 0.5 |
Plan amendments | 0 | (0.7) |
Actuarial gain | (2.4) | (1.8) |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1.2 | 0.9 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0.3 | 0.3 |
Benefit obligation at end of year | 17 | 19.4 |
Amounts recorded in the Consolidated Balance Sheets: | ||
Accrued benefits obligation, current portion | 1.6 | 1.5 |
Accrued benefits obligation, long-term | 15.4 | 17.9 |
Net amount recognized | $ 17 | $ 19.4 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - USD ($) | Nov. 06, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share repurchase authorization | $ 190,000,000 | |||||
Increase in share repurchase authorization | $ 150,000,000 | |||||
Remaining availability | $ 164,700,000 | $ 164,700,000 | ||||
Payments for Repurchase of Common Stock | $ 14,100,000 | $ 60,600,000 | $ 8,400,000 | |||
Number of shares authorized (in shares) | 15,300,000 | 15,300,000 | ||||
Shares available for future grants (in shares) | 2,500,000 | 2,500,000 | ||||
Treasury stock (in shares) | 21,201,522 | 22,643,840 | 21,201,522 | |||
Recognition of excess tax benefits against income tax expense | $ 16,100,000 | $ 8,900,000 | ||||
Employee Tax Withholding For Restricted and Deferred Stock Distributions [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payments for Repurchase of Common Stock | $ 10,600,000 | |||||
Treasury Stock, Shares, Acquired | 200,000 | 200,000 | 100,000 | |||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum contractual term | 10 years | |||||
Total intrinsic value of options exercised | $ 54,700,000 | $ 19,400,000 | $ 4,000,000 | |||
Unrecognized compensation expense | $ 7,200,000 | $ 7,200,000 | ||||
Unrecognized compensation expense, weighted-average recognition period | 2 years 4 months 24 days | |||||
Employee Stock Option [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Employee Stock Option [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 14,100,000 | 14,100,000 | ||||
Unrecognized compensation expense, weighted-average recognition period | 1 year 9 months 19 days | |||||
Total vest date fair value of shares that vested | $ 21,900,000 | 14,500,000 | 14,400,000 | |||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 11,700,000 | 11,700,000 | ||||
Total vest date fair value of shares that vested | $ 16,400,000 | $ 14,200,000 | $ 10,200,000 | |||
Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares repurchased (in shares) | 0 | 800,000 | ||||
Value of shares repurchased | $ 50,000,000 | $ 175,300,000 | ||||
Treasury Stock, Shares, Acquired | 158,182 | 976,473 | 148,203 |
Common Stock (Schedule of Stock
Common Stock (Schedule of Stock-Based Compensation Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Class of Stock Disclosures [Abstract] | |||
Stock-based compensation cost (pre-tax) | $ 23 | $ 23.1 | |
Income tax benefit | $ 22.7 | (16.5) | (7.9) |
Stock-based compensation cost, net of tax | $ 5.4 | $ 6.5 | $ 15.2 |
Common Stock (Schedule of Weigh
Common Stock (Schedule of Weighted Average Fair Value per Share of Stock Options and Related Valuation Assumptions) (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |||
Weighted average fair value per share (usd per share) | $ 22.50 | $ 15.05 | $ 14.07 |
Valuation assumptions: | |||
Risk-free interest rate | 2.20% | 1.70% | 1.60% |
Expected dividend yield | 0.90% | 1.30% | 1.20% |
Expected volatility | 30.80% | 33.20% | 33.10% |
Weighted average expected life (years) | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
Common Stock (Schedule of Trans
Common Stock (Schedule of Transactions under Stock Option Plans) (Details) - Employee Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Weighted Average Number of Shares | |
Balance Outstanding (in shares) | shares | 1,705 |
Granted (in shares) | shares | 372 |
Exercised (in shares) | shares | (1,030) |
Cancelled/Forfeited (in shares) | shares | (135) |
Balance Outstanding (in shares) | shares | 912 |
Exercisable (in shares) | shares | 357 |
Options Expected to Vest (in shares) | shares | 481 |
Weighted Average Exercise Price | |
Balance Outstanding (usd per share) | $ 41.79 |
Granted (usd per share) | 80.91 |
Exercised (usd per share) | 38.88 |
Cancelled/Forfeited (usd per share) | 66.27 |
Balance Outstanding (usd per share) | 57.40 |
Exercisable at September 30, 2017 (usd per share) | 41.92 |
Options Expected to Vest (usd per share) | $ 66.56 |
Weighted Average Remaining Contractual Term | |
Balance Outstanding | 7 years 2 months |
Exercisable | 5 years 3 months |
Options Expected to Vest | 8 years 5 months |
Aggregate Intrinsic Value | |
Balance Outstanding (usd per share) | $ | $ 33.8 |
Exercisable (usd per share) | $ | 18.8 |
Options Expected to Vest (usd per share) | $ | $ 13.4 |
Closing stock price (usd per share) | $ 94.4 |
Common Stock (Schedule of Tra_2
Common Stock (Schedule of Transactions for Nonvested RSUs) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Share Units | |
Nonvested (in shares) | shares | 521 |
Granted (in shares) | shares | 213 |
Vested (in shares) | shares | (340) |
Forfeited (in shares) | shares | (76) |
Nonvested (in shares) | shares | 318 |
Weighted Average Grant Date Fair Value | |
Nonvested (usd per share) | $ / shares | $ 51.39 |
Granted (usd per share) | $ / shares | 81.54 |
Vested (usd per share) | $ / shares | 47.31 |
Forfeited (usd per share) | $ / shares | 60.71 |
Nonvested (usd per share) | $ / shares | $ 73.72 |
Common Stock (Schedule of Wei_2
Common Stock (Schedule of Weighted Average Fair Value per Share PSUs and Related Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Stock Option [Member] | |||
Performance Share Units | |||
Weighted average fair value per share (usd per share) | $ 22.50 | $ 15.05 | $ 14.07 |
Valuation assumptions: | |||
Risk-free interest rate | 2.20% | 1.70% | 1.60% |
Expected dividend yield | 0.90% | 1.30% | 1.20% |
Expected volatility | 30.80% | 33.20% | 33.10% |
Performance Shares [Member] | |||
Performance Share Units | |||
Weighted average fair value per share (usd per share) | $ 87.42 | $ 55.95 | $ 50.51 |
Valuation assumptions: | |||
Risk-free interest rate | 1.90% | 1.20% | 1.10% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 21.90% | 22.60% | 22.30% |
Common Stock (Schedule of Tra_3
Common Stock (Schedule of Transactions for Nonvested PSUs) (Details) - Performance Shares [Member] shares in Thousands | 12 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Share Units | |
Nonvested (in shares) | shares | 345 |
Granted (in shares) | shares | 213 |
Vested (in shares) | shares | (174) |
Forfeited (in shares) | shares | (93) |
Nonvested (in shares) | shares | 291 |
Weighted Average Grant Date Fair Value | |
Nonvested (usd per share) | $ / shares | $ 53.40 |
Granted (usd per share) | $ / shares | 87.42 |
Vested (usd per share) | $ / shares | 75.77 |
Forfeited (usd per share) | $ / shares | 69.39 |
Nonvested (usd per share) | $ / shares | $ 69.36 |
Special Charges (Narrative) (De
Special Charges (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2015site | |
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | $ 77.6 | $ 37.4 | $ 39.9 | |||
Gain (Loss) Related to Litigation Settlement | 1.2 | |||||
Restructuring charges | 21.3 | 9.7 | ||||
Proceeds from legal settlement | $ 15.1 | |||||
Number of site closures | site | 8 | |||||
Cash proceeds from sale of property | $ 6.1 | |||||
Gain recorded from sale of property | $ 5.2 | |||||
Integration and Business Realignment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | 1.2 | 7.6 | 19 | |||
Employee Severance [Member] | Integration and Business Realignment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | 3.5 | 14 | ||||
Employee Severance [Member] | Site Consolidation [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | 3.7 | 5.1 | 7.2 | |||
Employee Severance [Member] | Global Restructuring Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | 17.6 | |||||
Facility Closing [Member] | Site Consolidation [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | 19.7 | 15.9 | 15.9 | |||
Aggregate special charges recognized | 50.8 | |||||
Other Restructuring [Member] | Global Restructuring Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | 37.2 | |||||
Aggregate special charges recognized | 80.8 | |||||
Other Restructuring [Member] | Global Restructuring Program [Member] | Europe [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Special charge | 0.9 | $ 5.1 | ||||
MEMS [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Professional Fees | 3.6 | |||||
Gain (Loss) on Disposition of Business | 24.5 | |||||
Non-Cash Loss Reserve for Assets | 20.9 | |||||
Volker [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges relating to non-cash write-downs of long-lived assets and working capital | 25.4 | |||||
Transaction related costs for businesses to be disposed of | 3 | |||||
Gain (Loss) on Disposition of Business | $ 1 | |||||
Architectural Products Business [Member] | Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 1.1 |
Special Charges (Schedule of Re
Special Charges (Schedule of Restructuring Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance | $ 9 | $ 14.7 |
Expenses | 21.3 | 9.7 |
Cash Payments | (20.9) | (14.3) |
Reversals | (0.9) | (1.1) |
Balance | $ 8.5 | $ 9 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income before Income Taxes and the Consolidated Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosures [Line Items] | |||||
Unrecognized Tax Benefits | $ 6.2 | $ 4.5 | $ 5.1 | $ 5.8 | |
Income before income taxes: | |||||
Domestic | 101.8 | 129 | $ 92.2 | ||
Foreign | 95.4 | 54 | 46.1 | ||
Total | 197.2 | 183 | 138.3 | ||
Current provision | |||||
U.S. Federal | 5.9 | 61.6 | 4.7 | ||
State | 3.5 | 8.6 | 2.2 | ||
Foreign | 20.2 | 13.3 | 9.1 | ||
Total current provision | 29.6 | 83.5 | 16 | ||
Deferred provision: | |||||
U.S. Federal | (83.4) | (34.9) | 21.8 | ||
State | (2.8) | 1.3 | 1.2 | ||
Foreign | 1.4 | 0.8 | (23.5) | ||
Total deferred provision | (84.8) | (32.8) | (0.5) | ||
Income tax expense | (55.2) | $ 50.7 | $ 15.5 | ||
Non-US [Member] | |||||
Income Tax Disclosures [Line Items] | |||||
Unrecognized Tax Benefits | $ 2.6 |
Income Taxes (Schedule of Diffe
Income Taxes (Schedule of Differences between Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Federal Corporate tax rate | 35.00% | 21.00% | ||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Federal income tax | $ 48.4 | $ 64.1 | $ 48.4 | |
State income tax | 2.9 | 4.1 | 2.9 | |
Foreign income tax | (23.3) | (35.6) | (14) | |
Application of federal research tax credits | (5.6) | (3.6) | (5.6) | |
Application of foreign tax credits | (1) | (15) | (0.5) | |
Valuation of tax attributes | 23.4 | 36.3 | (14.4) | |
Foreign inclusions | (0.9) | (11.5) | (0.9) | |
Domestic manufacturer’s deduction | (0.9) | (4.4) | (1.8) | |
Excess tax benefits from share based awards | 16.1 | 8.9 | 0 | |
Capitalized transaction costs | (9.2) | 0 | 0 | |
Other, net | (2) | 2.2 | (0.4) | |
Income tax expense | $ (55.2) | $ 50.7 | $ 15.5 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Federal income tax | 24.50% | 35.00% | 35.00% | |
State income tax | 1.50% | 2.20% | 2.10% | |
Foreign income tax | (11.80%) | (19.40%) | (10.10%) | |
Application of federal research tax credits | (2.90%) | (2.00%) | (4.00%) | |
Application of foreign tax credits | (0.50%) | (8.20%) | (0.40%) | |
Valuation of tax attributes | 11.90% | 19.80% | (10.40%) | |
Foreign inclusions | (0.40%) | (6.30%) | (0.60%) | |
Domestic manufacturer’s deduction | (0.40%) | (2.40%) | (1.30%) | |
Excess tax benefits from share based awards | 8.20% | 4.90% | (0.00%) | |
Capitalized transaction costs | (4.70%) | 0.00% | 0.00% | |
Other, net | (1.00%) | 1.30% | (0.30%) | |
Income tax expense | (28.00%) | 27.70% | 11.20% | |
Deferred Tax Remeasurement, Amount | $ (93.8) | $ 0 | $ 0 | |
Deferred Tax Remeasurement, Percent | (47.60%) | (0.00%) | (0.00%) | |
Transition tax obligation, amount | $ 22.9 | |||
Transition tax obligation, percent | 11.60% | 0.00% | 0.00% | |
DTA Corporate Rate Reduction Net Benefit | $ 93.8 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Taxes) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
Employee benefit accruals | $ 34.9 | $ 64.5 |
Inventory | 12.7 | 16.6 |
Net operating loss carryforwards | 84.5 | 70.7 |
Tax credit carryforwards | 20.5 | 23.3 |
Other, net | 26.4 | 41.4 |
Deferred tax assets, gross | 179 | 216.5 |
Less: Valuation allowance | (80.2) | (58.2) |
Total deferred tax assets | 98.8 | 158.3 |
Deferred tax liabilities: | ||
Depreciation | (19.2) | (28.6) |
Amortization | (216.8) | (349.7) |
Other, net | (9.1) | (5.3) |
Total deferred tax liabilities | (245.1) | (383.6) |
Deferred tax asset (liability) - net | $ (146.3) | $ (225.3) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosures [Line Items] | |||||||
Foreign Earnings Repatriated | $ 105.2 | ||||||
Global intangible low-taxed income- foreign tax deduction | 50.00% | ||||||
Deferred tax assets related to operating loss carryforwards in foreign jurisdictions | 83.4 | ||||||
Deferred tax assets related to domestic federal net operating loss carryforwards | 0.7 | ||||||
Deferred tax assets related to state net operating loss carryforwards | 0.4 | ||||||
Deferred tax assets related to state credits | 20.5 | ||||||
Capital loss carryforwards | 2.7 | ||||||
Valuation allowances on deferred tax assets | 80.2 | $ 58.2 | |||||
Impact of tax holidays | $ 4.3 | $ 3.6 | $ 4.1 | ||||
Benefit of tax holidays on net income per share (diluted) (usd per share) | $ 0.06 | $ 0.05 | $ 0.06 | ||||
Undistributed earnings in our non-U.S. subsidiaries | $ 193 | ||||||
Total gross unrecognized tax benefits | 6.2 | $ 4.5 | $ 5.1 | $ 5.8 | |||
Unrecognized tax benefits that would impact effective tax rate, if recognized | 5.6 | 3.3 | 3.6 | ||||
Accrued interest and penalties related to unrecognized tax benefits | 2.1 | 2.6 | $ 3 | ||||
Income tax benefit for interest and penalties | 0.5 | $ 0 | |||||
Federal Corporate tax rate | 35.00% | 21.00% | |||||
DTA Corporate Rate Reduction Net Benefit | $ 93.8 | ||||||
Blended Corporate Tax rate | 24.50% | ||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 1 | ||||||
Discrete net tax benefit- Tax Act | $ 61.4 | 70.9 | |||||
Reduction of discrete net tax benefit - Tax Act | 9.5 | ||||||
Deferred Tax Remeasurement, Amount | 93.8 | $ 0 | $ 0 | ||||
Transition tax obligation, amount | 22.9 | ||||||
Minimum [Member] | |||||||
Income Tax Disclosures [Line Items] | |||||||
Amount of reasonably possible decrease | 0.5 | ||||||
Maximum [Member] | |||||||
Income Tax Disclosures [Line Items] | |||||||
Amount of reasonably possible decrease | 3.5 | ||||||
Non-US [Member] | |||||||
Income Tax Disclosures [Line Items] | |||||||
Total gross unrecognized tax benefits | $ 2.6 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of October 1 | $ 4.5 | $ 5.1 | |
Prior year currency exchange losses | 9.2 | ||
Increases in tax position of prior years | 2.3 | $ 0.1 | 0.8 |
Decreases in tax position of prior years | 0 | 0 | (0.1) |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 0.3 | 0 | 0 |
Settlements with taxing authorities | 0 | 0 | (0.3) |
Lapse of applicable statute of limitations | (0.9) | (0.8) | (0.5) |
Change in positions due to acquisitions | 0 | 0 | (0.6) |
Foreign currency adjustments | 0 | 0.1 | 0 |
Total change | 1.7 | (0.6) | $ (0.7) |
Balance as of September 30 | $ 6.2 | $ 4.5 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to common shareholders | $ 90.4 | $ 45.2 | $ 28.5 | $ 88.3 | $ 69.4 | $ 6 | $ 34.4 | $ 23.8 | $ 252.4 | $ 133.6 | $ 124.1 |
Average shares outstanding - Basic (in shares) | 66,234,000 | 65,599,000 | 65,333,000 | ||||||||
Add potential effect of exercise of stock options and other unvested equity awards (in shares) | 1,378,000 | 1,626,000 | 1,263,000 | ||||||||
Average shares outstanding - Diluted (in shares) | 67,612,000 | 67,225,000 | 66,596,000 | ||||||||
Basic net income attributable to common shareholders per common share | $ 1.36 | $ 0.68 | $ 0.43 | $ 1.34 | $ 1.06 | $ 0.09 | $ 0.52 | $ 0.36 | $ 3.81 | $ 2.04 | $ 1.90 |
Diluted net income attributable to common shareholders per common share | $ 1.33 | $ 0.67 | $ 0.42 | $ 1.31 | $ 1.03 | $ 0.09 | $ 0.51 | $ 0.36 | $ 3.73 | $ 1.99 | $ 1.86 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 263 | 20 | 395 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net revenue: | ||||||||||||
Revenues | $ 759.2 | $ 708.6 | $ 710.5 | $ 669.7 | $ 783.3 | $ 689.1 | $ 678.9 | $ 637.4 | $ 2,848 | $ 2,743.7 | $ 2,655.2 | |
Divisional income: | ||||||||||||
Divisional income | 289.5 | 273.4 | 230.3 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 289.5 | 273.4 | 230.3 | |||||||||
Special charge | 77.6 | 37.4 | 39.9 | |||||||||
Interest expense | (95) | (88.9) | (90.4) | |||||||||
Loss on extinguishment of debt | $ (10.8) | 0 | 0 | (10.8) | ||||||||
Investment income and other, net | 2.7 | (1.5) | 9.2 | |||||||||
Income before income taxes | 197.2 | 183 | 138.3 | |||||||||
Depreciation, Depletion and Amortization | 196.5 | 203.6 | 199.8 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Other operating costs: | ||||||||||||
Depreciation, Depletion and Amortization | 27.6 | 27.1 | 27.1 | |||||||||
Patient Support Systems [Member] | ||||||||||||
Other operating costs: | ||||||||||||
Depreciation, Depletion and Amortization | 37.4 | 47 | 51.7 | |||||||||
Front Line Care [Member] | ||||||||||||
Other operating costs: | ||||||||||||
Depreciation, Depletion and Amortization | 110.7 | 107.4 | 98.7 | |||||||||
Surgical Solutions [Member] | ||||||||||||
Other operating costs: | ||||||||||||
Depreciation, Depletion and Amortization | 20.8 | 22.1 | 22.3 | |||||||||
Operating Segments [Member] | ||||||||||||
Net revenue: | ||||||||||||
Revenues | 2,848 | 2,743.7 | 2,655.2 | |||||||||
Operating Segments [Member] | Patient Support Systems [Member] | ||||||||||||
Net revenue: | ||||||||||||
Revenues | 1,429.5 | 1,423.9 | 1,437.2 | |||||||||
Divisional income: | ||||||||||||
Divisional income | 281.3 | 249.6 | 245.2 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 281.3 | 249.6 | 245.2 | |||||||||
Operating Segments [Member] | Front Line Care [Member] | ||||||||||||
Net revenue: | ||||||||||||
Revenues | 960.2 | 885.3 | 809.7 | |||||||||
Divisional income: | ||||||||||||
Divisional income | 253 | 231.8 | 202.1 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 253 | 231.8 | 202.1 | |||||||||
Operating Segments [Member] | Surgical Solutions [Member] | ||||||||||||
Net revenue: | ||||||||||||
Revenues | 458.3 | 434.5 | 408.3 | |||||||||
Divisional income: | ||||||||||||
Divisional income | 53.1 | 42.5 | 46.2 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 53.1 | 42.5 | 46.2 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Divisional income: | ||||||||||||
Divisional income | 220.3 | 213.1 | 223.3 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | $ 220.3 | $ 213.1 | $ 223.3 |
Segment Reporting (Schedule o_2
Segment Reporting (Schedule of Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 759.2 | $ 708.6 | $ 710.5 | $ 669.7 | $ 783.3 | $ 689.1 | $ 678.9 | $ 637.4 | $ 2,848 | $ 2,743.7 | $ 2,655.2 |
Long-lived assets | 328.3 | 355.4 | 328.3 | 355.4 | 350 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,956.4 | 1,887.6 | 1,829.4 | ||||||||
Long-lived assets | 239.5 | 243.9 | 239.5 | 243.9 | 234.2 | ||||||
Foreign [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 891.6 | 856.1 | 825.8 | ||||||||
Long-lived assets | $ 88.8 | $ 111.5 | $ 88.8 | $ 111.5 | $ 115.8 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 759.2 | $ 708.6 | $ 710.5 | $ 669.7 | $ 783.3 | $ 689.1 | $ 678.9 | $ 637.4 | $ 2,848 | $ 2,743.7 | $ 2,655.2 |
Gross Profit | 376.2 | 348 | 350.4 | 319.6 | 362.5 | 331.1 | 324.4 | 302.6 | 1,394.2 | 1,320.6 | 1,257 |
Net Income Attributable to Common Shareholders | $ 90.4 | $ 45.2 | $ 28.5 | $ 88.3 | $ 69.4 | $ 6 | $ 34.4 | $ 23.8 | $ 252.4 | $ 133.6 | $ 124.1 |
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) | $ 1.36 | $ 0.68 | $ 0.43 | $ 1.34 | $ 1.06 | $ 0.09 | $ 0.52 | $ 0.36 | $ 3.81 | $ 2.04 | $ 1.90 |
Net Income Attributable to Common Shareholders per Common Share - Diluted (usd per share) | $ 1.33 | $ 0.67 | $ 0.42 | $ 1.31 | $ 1.03 | $ 0.09 | $ 0.51 | $ 0.36 | $ 3.73 | $ 1.99 | $ 1.86 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Commitments and Long-Term Agreement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Leases, Operating [Abstract] | |||
Rent expense | $ 33.2 | $ 30.5 | $ 31.7 |
Minimum annual rental commitments | 129.6 | ||
2,018 | 31 | ||
2,019 | 22.9 | ||
2,020 | 18.6 | ||
2,021 | 14.9 | ||
2,022 | 14.2 | ||
2024 and beyond | $ 28 |
Commitments and Contingencies_3
Commitments and Contingencies (Self Insurance and Legal Proceedings) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Uninsured Risk [Member] | Maximum [Member] | |
Loss Contingencies [Line Items] | |
Deductibles and self-insured retentions | $ 1 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for possible losses and sales returns - accounts receivable [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | $ 25.1 | $ 26.8 | $ 26 |
CHARGED TO COSTS AND EXPENSES | (2.5) | (4.3) | (2.1) |
CHARGED TO OTHER ACCOUNTS | 0.2 | 2 | 2.2 |
DEDUCTIONS NET OF RECOVERIES | (6) | (8) | (3.5) |
BALANCE AT END OF PERIOD | 21.8 | 25.1 | 26.8 |
Valuation allowance against deferred tax assets [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 58.2 | 26.9 | 40.7 |
CHARGED TO COSTS AND EXPENSES | (23.1) | (30.8) | (14.9) |
CHARGED TO OTHER ACCOUNTS | 0 | 0 | 0 |
DEDUCTIONS NET OF RECOVERIES | (1.1) | 0.5 | 1.1 |
BALANCE AT END OF PERIOD | $ 80.2 | $ 58.2 | $ 26.9 |