Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2015 | Apr. 27, 2015 | |
Document And Entity Information Abstract | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Entity Registrant Name | Hill-Rom Holdings, Inc. | |
Entity Central Index Key | 47518 | |
Current Fiscal Year End Date | -21 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,660,230 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Net Revenue | ||||
Capital sales | $375.70 | $313.60 | $749.10 | $609.10 |
Rental revenue | 99.1 | 101.7 | 190.7 | 199.6 |
Total revenue | 474.8 | 415.3 | 939.8 | 808.7 |
Cost of Revenue | ||||
Cost of goods sold | 213.9 | 169.5 | 434.4 | 340.7 |
Rental expenses | 46.7 | 43.1 | 91.3 | 88.5 |
Total cost of revenue | 260.6 | 212.6 | 525.7 | 429.2 |
Gross Profit | 214.2 | 202.7 | 414.1 | 379.5 |
Research and development expenses | 22.2 | 16.4 | 44 | 32.8 |
Selling and administrative expenses | 149.9 | 130.1 | 305 | 268.1 |
Special charges (Note 8) | 3.8 | 28.4 | 7.5 | 29.4 |
Operating Profit | 38.3 | 27.8 | 57.6 | 49.2 |
Interest expense | -3 | -2.3 | -6.2 | -4.3 |
Investment income and other, net | 1.3 | -0.2 | 2.2 | -0.2 |
Income Before Income Taxes | 36.6 | 25.3 | 53.6 | 44.7 |
Income tax expense (Note 9) | 10.5 | 28.6 | 15.4 | 34.8 |
Net Income (Loss) | $26.10 | ($3.30) | $38.20 | $9.90 |
Net Income (Loss) per Common Share - Basic | $0.46 | ($0.06) | $0.67 | $0.17 |
Net Income (Loss) per Common Share - Diluted | $0.45 | ($0.06) | $0.66 | $0.17 |
Dividends per Common Share | $0.16 | $0.15 | $0.31 | $0.29 |
Average Common Shares Outstanding - Basic (thousands) (Note 10) | 56,544 | 57,303 | 56,841 | 57,781 |
Average Common Shares Outstanding - Diluted (thousands) (Note 10) | 57,610 | 57,303 | 57,894 | 58,612 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net Income (Loss) | $26.10 | ($3.30) | $38.20 | $9.90 |
Other Comprehensive Income (Loss), net of tax (Note 7): | ||||
Available-for-sale securities and currency hedges | -0.2 | 0.1 | -0.6 | 0.2 |
Foreign currency translation adjustment | -48 | -0.2 | -70.6 | 5.6 |
Change in pension and postretirement defined benefit plans | 0.9 | 0.5 | 1.8 | 1.1 |
Total Other Comprehensive Income (Loss), net of tax | -47.3 | 0.4 | -69.4 | 6.9 |
Total Comprehensive Income (Loss) | ($21.20) | ($2.90) | ($31.20) | $16.80 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $114.50 | $99.30 |
Trade accounts receivable, net of allowances (Note 2) | 368 | 411 |
Inventories (Note 2) | 168.7 | 176.2 |
Deferred income taxes (Notes 1 and 9) | 41.9 | 40.9 |
Other current assets | 51.5 | 51.9 |
Total current assets | 744.6 | 779.3 |
Property, plant and equipment, net (Note 2) | 286 | 261.5 |
Goodwill (Note 4) | 387.3 | 399.8 |
Software and other intangible assets, net (Note 2) | 236.9 | 261.1 |
Deferred income taxes (Notes 1 and 9) | 21.5 | 23 |
Other assets | 29.9 | 27.4 |
Total Assets | 1,706.20 | 1,752.10 |
Current Liabilities | ||
Trade accounts payable | 87.7 | 112.7 |
Short-term borrowings (Note 5) | 128.7 | 126.9 |
Accrued compensation | 76.1 | 89.2 |
Accrued product warranties (Note 12) | 27.2 | 28.4 |
Other current liabilities | 82 | 85.1 |
Total current liabilities | 401.7 | 442.3 |
Long-term debt (Note 5) | 449.8 | 364.9 |
Accrued pension and postretirement benefits (Note 6) | 74.4 | 76.9 |
Deferred income taxes (Notes 1 and 9) | 27.8 | 31 |
Other long-term liabilities | 30.2 | 30.5 |
Total Liabilities | 983.9 | 945.6 |
Commitments and Contingencies (Note 14) | ||
SHAREHOLDERS' EQUITY | ||
Common stock (Note 2) | 4.4 | 4.4 |
Additional paid-in-capital | 140.4 | 134.1 |
Retained earnings | 1,520.20 | 1,499.80 |
Accumulated other comprehensive loss (Note 7) | -143.5 | -74.1 |
Treasury stock, at cost (Note 2) | -799.2 | -757.7 |
Total Shareholders' Equity | 722.3 | 806.5 |
Total Liabilities and Shareholders' Equity | $1,706.20 | $1,752.10 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $38.20 | $9.90 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 34.9 | 33.6 |
Amortization | 5.5 | 7 |
Acquisition-related intangible asset amortization | 15.7 | 13.8 |
Provision for deferred income taxes | -6.2 | 6.5 |
(Gain) loss on disposal of property, equipment leased to others, intangible assets and impairments | -0.2 | 7.8 |
Stock compensation | 9.9 | 9 |
Excess tax benefits from employee stock plans | -1.4 | 0.6 |
Change in working capital excluding cash, current debt, acquisitions and dispositions | ||
Trade accounts receivable | 22.6 | 15.8 |
Inventories | -3.9 | 0.9 |
Other current assets | -2.8 | -1.3 |
Trade accounts payable | -16.6 | -14.5 |
Accrued expenses and other liabilities | -9.4 | -14.6 |
Other, net | 0.8 | 3.4 |
Net cash provided by operating activities | 87.1 | 77.9 |
Investing Activities | ||
Capital expenditures and purchases of intangible assets | -80.3 | -31.4 |
Proceeds on sale of property and equipment leased to others | 0.9 | 1.3 |
Payment for acquisition of businesses, net of cash acquired | -2.7 | -14.3 |
Refund on acquisition of businesses | 4.6 | |
Other | -4.8 | |
Net cash used in investing activities | -86.9 | -39.8 |
Financing Activities | ||
Net change in short-term debt | -0.7 | -0.2 |
Borrowings on revolving credit facility | 95 | 41 |
Proceeds from long-term debt | 0.6 | |
Payment of long-term debt | -7.6 | -5 |
Purchase of noncontrolling interest | -1.3 | -1 |
Payment of cash dividends | -17.7 | -16.7 |
Proceeds from exercise of stock options | 9.1 | 7.4 |
Proceeds from stock issuance | 1.3 | 1.3 |
Excess tax benefits from employee stock plans | 1.4 | -0.6 |
Treasury stock acquired | -57.1 | -71.6 |
Net cash provided by (used in) financing activities | 22.4 | -44.8 |
Effect of exchange rate changes on cash | -7.4 | -0.4 |
Net Cash Flows | 15.2 | -7.1 |
Cash and Cash Equivalents | ||
At beginning of period | 99.3 | 127.4 |
At end of period | $114.50 | $120.30 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||
Mar. 31, 2015 | |||
Summary of Significant Accounting Policies [Abstract] | |||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies | ||
Basis of Presentation and Principles of Consolidation | |||
Unless the context otherwise requires, the terms “Hill-Rom,” “we,” “our” and “us” refer to Hill-Rom Holdings, Inc. and our wholly-owned subsidiaries. The unaudited Condensed Consolidated Financial Statements appearing in this Quarterly Report on Form 10-Q should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our latest Annual Report on Form 10-K for the fiscal year ended September 30, 2014 (“2014 Form 10-K”) as filed with the United States (“U.S.”) Securities and Exchange Commission. The September 30, 2014 Condensed Consolidated Balance Sheet was derived from audited Consolidated Financial Statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. In the opinion of management, the Condensed Consolidated Financial Statements herein include all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the interim periods presented. Quarterly results are not necessarily indicative of annual results. | |||
The Condensed Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |||
Use of Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires our 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 during the period. Actual results could differ from those estimates. Examples of such estimates include our income taxes (Notes 1 and 9), accounts receivable reserves (Note 2), accrued warranties (Note 12), and commitments and contingencies (Note 14), among others. | |||
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 Condensed Consolidated Balance Sheets, as Level 1 instruments and certain other insignificant derivatives and investments as either Level 2 or 3 instruments. Refer to Note 5 for disclosure of our debt instrument fair values. | |||
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 accounted for on a net (excluded from revenue and costs) basis. | |||
Income Taxes | |||
We and our eligible domestic subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. Deferred income taxes 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. We have a variety of deferred tax assets in numerous tax jurisdictions. 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 March 31, 2015, we had $23.2 million of valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to foreign operating loss carryforwards and other tax attributes. The valuation allowance was decreased in the current period by $1.9 million to reflect the expected realization of certain deferred assets in Australia. 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. | |||
Employee Benefits Change | |||
During the second quarter of fiscal 2014, we implemented a new paid time off policy as part of our employee benefits programs, replacing certain previously existing vacation and sick time policies. In conjunction with these changes in policies, the vesting provisions with respect to the accumulation of paid time off were delayed resulting in the recognition and utilization of paid time off in the same benefits year. As a result of this change, significant portions of our existing accrued vacation balance were no longer necessary and we reversed $12.2 million in the second quarter of fiscal 2014 and an additional $1.2 million in the third quarter of fiscal 2014 to reflect the change in vesting provisions. | |||
Recently Issued Accounting Standards | |||
In May 2014, the FASB issued Accounting Standards Update (“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. At present time, this guidance will be effective for us in the first quarter of fiscal 2018, ending December 31, 2017. Early adoption is not permitted. | |||
In April 2015, the FASB proposed deferring the effective date by one year to annual reporting periods beginning after December 15, 2017. The FASB also proposed permitting early adoption of the standard, but not before the original effective date. We are currently in the process of evaluating the impact of adoption of this ASU on our Consolidated Financial Statements. | |||
Except as noted above, there have been no significant changes to our assessment of the impact of recently issued accounting standards included in Note 1 of Notes to Consolidated Financial Statements in our 2014 Form 10-K. | |||
Supplementary_Balance_Sheet_In
Supplementary Balance Sheet Information | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplementary Balance Sheet Information [Abstract] | |||||||||
Supplementary Balance Sheet Information | 2. Supplementary Balance Sheet Information | ||||||||
31-Mar-15 | 30-Sep-14 | ||||||||
Allowance for possible losses and discounts on trade receivables | $ | 27.9 | $ | 31.4 | |||||
Inventories: | |||||||||
Finished products | $ | 89.1 | $ | 93.5 | |||||
Raw materials and work in process | 79.6 | 82.7 | |||||||
Total inventory | $ | 168.7 | $ | 176.2 | |||||
Accumulated depreciation of property, plant and equipment | $ | 592.6 | $ | 588.1 | |||||
Accumulated amortization of software and other intangible assets | $ | 296.5 | $ | 283.3 | |||||
Preferred stock, without par value: | |||||||||
Shares authorized | 1,000,000 | 1,000,000 | |||||||
Shares issued | None | None | |||||||
Common stock, without par value: | |||||||||
Shares authorized | 199,000,000 | 199,000,000 | |||||||
Shares issued | 80,323,912 | 80,323,912 | |||||||
Shares outstanding | 56,654,412 | 57,439,911 | |||||||
Treasury shares | 23,669,500 | 22,884,001 | |||||||
Acquisitions
Acquisitions | 6 Months Ended | |||||
Mar. 31, 2015 | ||||||
Acquisitions [Abstract] | ||||||
Acquisitions | 3. Acquisitions | |||||
Trumpf Medical | ||||||
On August 1, 2014, we completed the acquisition of Trumpf Medical (“Trumpf”) and funded the transaction with a combination of cash on hand and borrowings under the revolving credit facility. Trumpf provides a portfolio of well-established operating room (OR) infrastructure products such as surgical tables, surgical lighting, and supply units and expands our product offerings in the surgical suite. | ||||||
The purchase price was $232.9 million ($226.6 million net of cash acquired). The results of Trumpf are included in the Condensed Consolidated Financial Statements since the date of acquisition. | ||||||
The following summarizes the fair value of assets acquired and liabilities assumed at the date of the acquisition. During the first and second quarters of 2015, we made certain adjustments to the opening balance sheet as of the acquisition date to reflect certain fair value adjustments and recorded a $3.0 million liability to reflect the settlement of certain purchase agreement provisions with the seller. These results are preliminary and subject to other fair value adjustments. | ||||||
Amount | ||||||
Trade receivables | $ | 65.6 | ||||
Inventory | 63.6 | |||||
Other current assets | 24.2 | |||||
Property, plant, and equipment | 42.1 | |||||
Goodwill | 62.8 | |||||
Trade name (5-year useful life) | 6.7 | |||||
Customer relationships (10-year weighted average useful life) | 15.8 | |||||
Developed technology (8-year weighted average useful life) | 17.8 | |||||
Other intangibles | 4.8 | |||||
Other noncurrent assets | 0.7 | |||||
Deferred tax asset | 15.2 | |||||
Current liabilities | (72.3 | ) | ||||
Long term debt | (6.0 | ) | ||||
Noncurrent liabilities | (8.1 | ) | ||||
Total purchase price | $ | 232.9 | ||||
Goodwill was allocated entirely to our Surgical and Respiratory Care segment. The goodwill related to the acquired German operations will be tax deductible while the remaining goodwill will not be deductible for tax purposes. | ||||||
On an unaudited proforma basis, as if the Trumpf acquisition had been consummated prior to the earliest date of the financial results presented, our revenue would have been higher by approximately $63 million and $123 million for the quarter and year to date periods ended March 31, 2014. As previously disclosed, the impact to net income on an unaudited proforma basis would not have been significant to our financial results for fiscal 2014. The unaudited pro forma results are based on the Company's historical financial statements and those of the Trumpf business and do not necessarily indicate the results of operations that would have resulted had the acquisition been completed at the beginning of the comparable period presented and are not indicative of the results of operations in future periods. | ||||||
Goodwill_and_IndefiniteLived_I
Goodwill and Indefinite-Lived Intangible Assets | 6 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets [Abstract] | |||||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | 4. Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||||
The following summarizes goodwill activity by reportable segment: | |||||||||||||||||
North America | Surgical and | International | Total | ||||||||||||||
Respiratory Care | |||||||||||||||||
Balances at September 30, 2014: | |||||||||||||||||
Goodwill | $ | 390.6 | $ | 333.5 | $ | 148.5 | $ | 872.6 | |||||||||
Accumulated impairment losses | (358.1 | ) | - | (114.7 | ) | (472.8 | ) | ||||||||||
Goodwill, net at September 30, 2014 | 32.5 | 333.5 | 33.8 | 399.8 | |||||||||||||
Changes in Goodwill during the period: | |||||||||||||||||
Goodwill related to acquisitions | - | 5.5 | - | 5.5 | |||||||||||||
Currency translation effect | - | (13.8 | ) | (4.2 | ) | (18.0 | ) | ||||||||||
Balances at March 31, 2015: | |||||||||||||||||
Goodwill | 390.6 | 325.2 | 144.3 | 860.1 | |||||||||||||
Accumulated impairment losses | (358.1 | ) | - | (114.7 | ) | (472.8 | ) | ||||||||||
Goodwill, net at March 31, 2015 | $ | 32.5 | $ | 325.2 | $ | 29.6 | $ | 387.3 | |||||||||
As discussed in Note 3, we recorded adjustments to goodwill during the first and second quarters of fiscal 2015 related to the Trumpf acquisition completed during the fourth quarter of fiscal 2014. | |||||||||||||||||
Financing_Agreements
Financing Agreements | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Financing Agreements [Abstract] | |||||||||
Financing Agreements | 5. Financing Agreements | ||||||||
Total debt consists of the following: | |||||||||
31-Mar-15 | 30-Sep-14 | ||||||||
Revolving credit facility | $ | 360 | $ | 265 | |||||
Term loan, current portion | 18.7 | 16.2 | |||||||
Term loan, long-term portion | 150 | 160 | |||||||
Unsecured 7.00% debentures due on February 15, 2024 | 19.4 | 19.4 | |||||||
Unsecured 6.75% debentures due on December 15, 2027 | 29.8 | 29.8 | |||||||
Other | 0.6 | 1.4 | |||||||
Total debt | 578.5 | 491.8 | |||||||
Less current portion of debt | 128.7 | 126.9 | |||||||
Total long-term debt | $ | 449.8 | $ | 364.9 | |||||
Prior to May 1, 2015, we had a credit facility that provided for revolving loans of up to $500.0 million, plus a term loan in the aggregate amount of $200.0 million. Borrowings under the credit facility and term loan bear interest at variable rates specified therein, that are currently less than 2.0 percent, and the availability of borrowings is subject to our ability at the time of borrowing to meet certain specified conditions, including compliance with covenants contained in the credit agreement governing the facility. The credit facility contains covenants that, among other matters, require us to maintain a ratio of consolidated indebtedness to consolidated EBITDA (each as defined in the credit agreement) of not more than 3.5:1.0 and a ratio of consolidated EBITDA to interest expense of not less than 3.5:1.0. As of March 31, 2015, we had outstanding borrowings of $360.0 million and undrawn letters of credit of $5.1 million under the revolving credit facility, leaving $134.9 million of borrowing capacity available. We are in compliance with all of our debt covenants as of March 31, 2015. | |||||||||
On May 1, 2015, we entered into an Amended and Restated Credit Agreement (the “New Credit Facility”) with the lenders named therein, JPMorgan Chase Bank, N.A., as Administrative agent, and each of Citizens Bank, N.A. Bank of America, N.A. and PNC Bank, National Association, as Co-Syndication Agents, which amended and restated our prior credit facility, entered into August 24, 2012. The New Credit Facility provides for revolving loans of up to $900.0 million at any time outstanding plus term loans in the current principal amount of $168.8 million. We currently have $360.0 million of outstanding borrowings and undrawn letters of credit of $5.1 million under the revolving loan portion of the New Credit Facility, leaving $534.9 million of available borrowing capacity. The New Credit Facility is to be used for general corporate purposes, including financing permitted acquisitions. | |||||||||
All revolving loans under the New Credit Facility mature May 1, 2020. The term loans will continue to amortize so that $43.8 million of the remaining principal will be repaid through August 24, 2017, with the balance due at such date. | |||||||||
Borrowings under the New Credit Facility bear interest based on a margin (which varies dependent upon the Company's credit rating) over certain pre-defined index rates, selected at the Company's option. The New Credit Facility is guaranteed by several fully owned subsidiaries of the Company. The New Credit Facility contains terms and conditions, events of default, and customary covenants, including requiring that (1) the Company maintain a ratio of Consolidated Indebtedness to Consolidated EBITDA of not more than 3.50:1.0; and (2) a ratio of Consolidated EBITDA to interest expense of not less than 3.00:1.0. | |||||||||
Unsecured debentures outstanding at March 31, 2015 have fixed rates of interest. We have deferred gains included in the amounts above from the termination of previous interest rate swap agreements, and those deferred gains amounted to less than $1.0 million at both March 31, 2015 and September 30, 2014. The deferred gains are being amortized and recognized as a reduction of interest expense over the remaining term of the related debt through 2024, and as a result, the effective interest rates on that debt have been and will continue to be lower than the stated interest rates. | |||||||||
We have trade finance credit lines and uncommitted letter of credit facilities. These lines are associated with the normal course of business and we had $1.3 million and $42.4 million of outstanding standby letters of credit as of March 31, 2015 and September 30, 2014, respectively. | |||||||||
We are exposed to market risk from fluctuations in interest rates. The Company sometimes manages its exposure to interest rate fluctuations through the use of interest rate swaps (cash flow hedges). As of March 31, 2015, we had one interest rate swap agreement with a notional amount of $118.8 million to hedge the variability of cash flows associated with a portion of the term loan variable interest rate payments for the period of January 2014 to August 2017. The interest rate swap has been designated as a cash flow hedge. The interest rate swap fair value was a $0.5 million liability as of March 31, 2015 and an asset of $0.2 million as of September 30, 2014. The fair value measurement for our interest rate swap is classified as Level 2, as described in Note 1. | |||||||||
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 approximate fair value. The estimated fair values of our long-term unsecured debentures were $58.2 million at March 31, 2015 and $55.5 million at September 30, 2014, and were based on observable inputs such as quoted prices in markets that are not active. The estimated fair value of our term loan was $168.0 million and $175.2 million based on quoted prices for similar liabilities at March 31, 2015 and September 30, 2014. The fair value measurements for both our long-term unsecured debentures and our term loan were classified as Level 2, as described in Note 1. | |||||||||
Retirement_and_Postretirement_
Retirement and Postretirement Plans | 6 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Retirement and Postretirement Plans [Abstract] | |||||||||||||||
Retirement and Postretirement Plans | 6. Retirement and Postretirement Plans | ||||||||||||||
We sponsor five defined benefit retirement plans: a master defined benefit retirement plan, 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 during 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 for our funded plans. All of our plans have an annual measurement date of September 30. The following table includes the components of net pension expense for our defined benefit plans. | |||||||||||||||
Quarter Ended March 31 | Year to Date Ended March 31 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Service cost | $ | 1.3 | $ | 1.3 | $ | 2.7 | $ | 2.5 | |||||||
Interest cost | 3.7 | 3.6 | 7.4 | 7.2 | |||||||||||
Expected return on plan assets | (4.2 | ) | (4.2 | ) | (8.5 | ) | (8.4 | ) | |||||||
Amortization of unrecognized prior service cost, net | 0.2 | 0.1 | 0.3 | 0.3 | |||||||||||
Amortization of net loss | 1.3 | 0.8 | 2.7 | 1.6 | |||||||||||
Net pension expense | 2.3 | 1.6 | 4.6 | 3.2 | |||||||||||
Special termination benefits | - | 2.4 | - | 2.4 | |||||||||||
Net pension expense | $ | 2.3 | $ | 4 | $ | 4.6 | $ | 5.6 | |||||||
We also sponsor a domestic postretirement health care plan that provides health care benefits to qualified retirees and dependents until eligible for Medicare. Annual costs related to the domestic postretirement health care plan are not significant. | |||||||||||||||
During the second quarter of fiscal 2014, we initiated a domestic early retirement program, which offered certain special termination benefits relating to our pension and postretirement health care plans. This program and the related special termination benefits resulted in a non-cash charge of $4.5 million, $2.4 million of which related to our master defined benefit retirement plan and $2.1 million for our postretirement health care plan. During the third and fourth quarters of fiscal 2014, we reversed a cumulative $1.3 million of the $2.1 million postretirement health care plan charge as certain participants elected alternative coverage separate from the postretirement health care plan. The employee elections were not known until the third and fourth quarters of fiscal 2014. Refer to Note 8 for more details. | |||||||||||||||
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 during retirement by providing employees with an incentive to make regular savings. Company contributions to the plans are based on eligibility and employee contributions. Expense under these plans was $3.8 million and $3.6 million in each of the quarterly periods ended March 31, 2015 and 2014; and $8.0 million and $7.3 million in the year to date periods ended March 31, 2015 and 2014. |
Other_Comprehensive_Income
Other Comprehensive Income | 6 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||
Other Comprehensive Income | 7. Other Comprehensive Income | ||||||||||||||||||||||||||||||||
The following tables describe the changes in accumulated other comprehensive loss by component: | |||||||||||||||||||||||||||||||||
Quarter Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | (0.4 | ) | $ | - | $ | (0.4 | ) | $ | 0.2 | $ | (0.2 | ) | $ | (0.4 | ) | $ | (0.2 | ) | $ | (0.6 | ) | |||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | (48.0 | ) | - | (48.0 | ) | - | (48.0 | ) | (56.8 | ) | (48.0 | ) | (104.8 | ) | |||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | - | 1.4 | 1.4 | (0.5 | ) | 0.9 | (39.0 | ) | 0.9 | (38.1 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | (48.4 | ) | $ | 1.4 | $ | (47.0 | ) | $ | (0.3 | ) | $ | (47.3 | ) | $ | (96.2 | ) | $ | (47.3 | ) | $ | (143.5 | ) | ||||||||||
Quarter Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | - | $ | 0.1 | $ | 0.1 | $ | - | $ | 0.1 | $ | (0.2 | ) | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | (0.2 | ) | - | (0.2 | ) | - | (0.2 | ) | 1.2 | (0.2 | ) | 1 | |||||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | - | 0.9 | 0.9 | (0.4 | ) | 0.5 | (30.2 | ) | 0.5 | (29.7 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | (0.2 | ) | $ | 1 | $ | 0.8 | $ | (0.4 | ) | $ | 0.4 | $ | (29.2 | ) | $ | 0.4 | $ | (28.8 | ) | |||||||||||||
Year to Date Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Other comprehensive income | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | (1.0 | ) | $ | - | $ | (1.0 | ) | $ | 0.4 | $ | (0.6 | ) | $ | - | $ | (0.6 | ) | $ | (0.6 | ) | ||||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | (70.6 | ) | - | (70.6 | ) | - | (70.6 | ) | (34.2 | ) | (70.6 | ) | (104.8 | ) | |||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | 0.1 | 2.7 | 2.8 | (1.0 | ) | 1.8 | (39.9 | ) | 1.8 | (38.1 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | (71.5 | ) | $ | 2.7 | $ | (68.8 | ) | $ | (0.6 | ) | $ | (69.4 | ) | $ | (74.1 | ) | $ | (69.4 | ) | $ | (143.5 | ) | ||||||||||
Year to Date Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Other comprehensive income | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | - | $ | 0.2 | $ | (0.3 | ) | $ | 0.2 | $ | (0.1 | ) | |||||||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | 5.6 | - | 5.6 | - | 5.6 | (4.6 | ) | 5.6 | 1 | ||||||||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | 0.2 | 1.7 | 1.9 | (0.8 | ) | 1.1 | (30.8 | ) | 1.1 | (29.7 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | 5.9 | $ | 1.8 | $ | 7.7 | $ | (0.8 | ) | $ | 6.9 | $ | (35.7 | ) | $ | 6.9 | $ | (28.8 | ) | ||||||||||||||
The following table represents the items reclassified out of accumulated other comprehensive loss and the related tax effects: | |||||||||||||||||||||||||||||||||
Quarter Ended March 31 | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Amount | Tax effect | Net of tax | Amount | Tax effect | Net of tax | ||||||||||||||||||||||||||||
reclassified | reclassified | ||||||||||||||||||||||||||||||||
Change in pension and postretirement defined benefit plans (a) | $ | 1.4 | $ | (0.5 | ) | $ | 0.9 | $ | 0.9 | $ | (0.4 | ) | $ | 0.5 | |||||||||||||||||||
Available-for-sale securities and currency hedges (b) | - | - | - | 0.1 | - | 0.1 | |||||||||||||||||||||||||||
Year to Date Ended March 31 | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Amount | Tax effect | Net of tax | Amount | Tax effect | Net of tax | ||||||||||||||||||||||||||||
reclassified | reclassified | ||||||||||||||||||||||||||||||||
Change in pension and postretirement defined benefit plans (a) | $ | 2.7 | $ | (1.0 | ) | $ | 1.7 | $ | 1.7 | $ | (0.7 | ) | $ | 1 | |||||||||||||||||||
Available-for-sale securities and currency hedges (b) | - | - | - | 0.1 | - | 0.1 | |||||||||||||||||||||||||||
(a) | Reclassified from accumulated other comprehensive loss into cost of goods sold and selling and administrative expenses. These components are included in the computation of net periodic pension expense. | ||||||||||||||||||||||||||||||||
(b) | Reclassified from accumulated other comprehensive loss into other income (expense), net. | ||||||||||||||||||||||||||||||||
Special_Charges
Special Charges | 6 Months Ended | |||||
Mar. 31, 2015 | ||||||
Special Charges [Abstract] | ||||||
Special Charges | 8. Special Charges | |||||
During the second quarter of fiscal 2014, we announced a global restructuring program focused on improving our cost structure. This action included early retirement and reduction in force programs that eliminated over 200 net positions primarily in the U.S., which was substantially completed in fiscal 2014 with cash expenditures continuing during fiscal 2015. The program is also 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 in process and has resulted in severance and benefit charges of $2.3 million and $4.6 million for the quarter and year to date ended March 31, 2015, as well as other costs of $2.0 and $3.4 million over the same periods related to legal and professional fees, temporary labor, project management, and other administrative functions. In the second quarter of fiscal 2015, we also reversed $0.5 million of previously recorded severance and benefit charges due to certain plan participants declining continuing healthcare coverage. | ||||||
Since the inception of the global restructuring program through March 31, 2015, we have recognized aggregate special charges of $32.4 million, which are recorded in both fiscal 2014 and 2015. Charges of $16.9 million were recorded in the quarter ended March 31, 2014. We expect to incur $10 million to $15 million of additional European restructuring costs through the completion of the program. | ||||||
Also during the second quarter of fiscal 2014, we initiated a plan to discontinue third-party payer rentals of therapy products occurring primarily in home care settings. We intend to continue renting these products to facilities and customers who are billed directly for the product. Special charges recorded for this action included a $7.7 million non-cash tangible asset impairment charge, a $2.0 million charge for severance and other benefits for approximately 70 eliminated positions, and $1.8 million in other related costs. This action is substantially complete. | ||||||
During the first quarter of fiscal 2014, we initiated a plan to improve our cost structure and streamline our organization by offering an early retirement program to certain manufacturing employees in our Batesville, Indiana plant, meeting specific eligibility requirements, and other minor reduction in force actions. These programs resulted in the elimination of approximately 35 positions and required recognition of a special charge of approximately $1 million for lump sum payments under the program and severance and other benefits provided to other affected employees. This action was substantially complete by the end of the second quarter of fiscal 2014. | ||||||
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 during fiscal 2015 was as follows: | ||||||
Balance at September 30, 2014 | $ | 11.7 | ||||
Expenses | 4.6 | |||||
Cash Payments | (7.2 | ) | ||||
Reversals | (0.5 | ) | ||||
Balance at March 31, 2015 | $ | 8.6 |
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes |
The effective tax rate was 28.7 percent for both the quarterly and year to date periods ended March 31, 2015 compared to 113.0 and 77.9 percent for the comparable prior year periods. | |
The effective rates for both the three- and six-month periods ended March 31, 2015 are lower than the comparable periods in fiscal 2014 due primarily to $19.6 million of tax expense realized in the prior year to establish a valuation allowance in France reflecting cumulative and expected future losses associated with the expenses of our global restructuring program. The three- and six-month periods ended March 31, 2015 are also favorably impacted by a $1.9 million tax benefit due to the reversal of previously recorded valuation allowances in Australia. Additionally, the reinstatement of the research and development tax credit favorably impacted the effective rate for the three- and six-month periods ended March 31, 2015. | |
On December 19, 2014, the President signed into law the Tax Increase Prevention Act of 2014 (the Tax Act). The Tax Act retroactively extended the research and development tax credit for one year beginning January 1, 2014 through December 31, 2014. This credit had previously expired effective December 31, 2013. | |
We expect the reinstatement of the research and development tax credit to favorably impact the effective tax rate for fiscal 2015 by nearly $2 million through a combination of a one-time catch-up adjustment from the reinstatement of the credit recorded in our first quarter of fiscal 2015 and the inclusion of the limited current year research credit into the fiscal 2015 effective tax rate. | |
Earnings_per_Common_Share
Earnings per Common Share | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings per Common Share [Abstract] | ||||||||||||||||
Earnings per Common Share | 10. 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): | ||||||||||||||||
Quarter Ended March 31 | Year to Date Ended March 31 | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income (loss) | $ | 26.1 | $ | (3.3 | ) | $ | 38.2 | $ | 9.9 | |||||||
Average shares outstanding - Basic | 56,544 | 57,303 | 56,841 | 57,781 | ||||||||||||
Add potential effect of exercise of stock options | ||||||||||||||||
and other unvested equity awards | 1,066 | - | 1,053 | 831 | ||||||||||||
Average shares outstanding - Diluted | 57,610 | 57,303 | 57,894 | 58,612 | ||||||||||||
Net income (loss) per common share - Basic | $ | 0.46 | $ | (0.06 | ) | $ | 0.67 | $ | 0.17 | |||||||
Net income (loss) per common share - Diluted | $ | 0.45 | $ | (0.06 | ) | $ | 0.66 | $ | 0.17 | |||||||
Shares with anti-dilutive effect excluded from the computation of Diluted EPS | 541 | 1,812 | 516 | 504 | ||||||||||||
Common_Stock
Common Stock | 6 Months Ended |
Mar. 31, 2015 | |
Common Stock [Abstract] | |
Common Stock | 11. Common Stock |
The stock-based compensation cost that was charged against income, net of tax, for all plans was $3.4 million and $6.4 million for the quarterly and year to date periods ended March 31, 2015 and $3.4 million and $5.7 million for the comparable prior year periods. |
Guarantees
Guarantees | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Guarantees [Abstract] | ||||||||||||||||
Guarantees | 12. 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 broad-based correction, separate reserves are established when such events are identified and the cost of correction can be reasonably estimated. The existing broad-based corrections do not limit the manufacture, sale or ongoing use of these products. | ||||||||||||||||
A reconciliation of changes in the warranty reserve for the periods covered in this report is as follows: | ||||||||||||||||
Quarter Ended March 31 | Year to Date Ended March 31 | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Balance at beginning of period | $ | 28 | $ | 37.3 | $ | 28.4 | $ | 38.1 | ||||||||
Provision for warranties during the period | 3.6 | 2.6 | 6.5 | 7.2 | ||||||||||||
Warranty reserves acquired | - | - | 1.1 | - | ||||||||||||
Warranty claims during the period | (4.4 | ) | (5.8 | ) | (8.8 | ) | (11.2 | ) | ||||||||
Balance at end of period | $ | 27.2 | $ | 34.1 | $ | 27.2 | $ | 34.1 | ||||||||
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, nor do we expect them to have, a material impact on our financial condition or results of operations, 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 commitments under applicable purchase and sale agreements. With respect to sale transactions, 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 financial condition and results of operations. |
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Reporting | 13. 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: | ||||||||||||||||
North America - sells and rents our patient support and near-patient technologies and services, as well as our clinical workflow solutions, in the U.S. and Canada. | ||||||||||||||||
Surgical and Respiratory Care - sells and rents our surgical and respiratory care products. | ||||||||||||||||
International - sells and rents similar products as our North America segment in regions outside of the U.S. and Canada. | ||||||||||||||||
Our performance under each reportable segment is measured on a divisional income basis before non-allocated operating and administrative costs, acquisition-related intangible asset amortization, impairments, litigation, and special charges. 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 and administrative costs include 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 without the effects of such items. | ||||||||||||||||
Quarter Ended March 31 | Year to Date Ended March 31 | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue: | ||||||||||||||||
North America | $ | 246.9 | $ | 224.5 | $ | 472.1 | $ | 430 | ||||||||
Surgical and Respiratory Care | 120 | 65.6 | 246.3 | 128.9 | ||||||||||||
International | 107.9 | 125.2 | 221.4 | 249.8 | ||||||||||||
Total revenue | $ | 474.8 | $ | 415.3 | $ | 939.8 | $ | 808.7 | ||||||||
Divisional income: | ||||||||||||||||
North America | $ | 52.3 | $ | 47.5 | $ | 90.8 | $ | 75.5 | ||||||||
Surgical and Respiratory Care | 18.3 | 15.7 | 37.7 | 30.3 | ||||||||||||
International | 4.4 | 5.2 | 7.2 | 10.7 | ||||||||||||
Other operating costs: | ||||||||||||||||
Non-allocated operating and administrative costs | 32.9 | 12.2 | 70.6 | 37.9 | ||||||||||||
Special charges | 3.8 | 28.4 | 7.5 | 29.4 | ||||||||||||
Operating profit | 38.3 | 27.8 | 57.6 | 49.2 | ||||||||||||
Interest expense | (3.0 | ) | (2.3 | ) | (6.2 | ) | (4.3 | ) | ||||||||
Investment income and other, net | 1.3 | (0.2 | ) | 2.2 | (0.2 | ) | ||||||||||
Income before income taxes | $ | 36.6 | $ | 25.3 | $ | 53.6 | $ | 44.7 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies |
General | |
We are subject to various 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. | |
We are also involved in other possible 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 ranging from $25 thousand 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 Condensed Consolidated Balance Sheets. | |
Universal Hospital Services, Inc. Litigation | |
On January 13, 2015, Universal Hospital Services, Inc. filed a complaint against us in the United States District Court for the Western District of Texas. The plaintiff alleges, among other things, that we engaged in certain customer contracting practices in violation of state and federal antitrust laws. The plaintiff also has asserted claims for tortious interference with business relationships. The plaintiff seeks injunctive relief and money damages in an unspecified amount. On March 23, 2015, we filed a motion to dismiss the complaint, however no ruling has been yet made on such motion, and we can make no assurances as to the outcome of such ruling. We believe that the allegations are without merit and intend to defend this matter vigorously. | |
Stryker Litigation | |
On April 4, 2011, we filed two separate actions against Stryker Corporation alleging infringement of certain Hill-Rom patents covering proprietary communications networks, status information systems and powered wheels used in our beds or stretchers. Both suits sought monetary damages and injunctions against Stryker for selling or distributing any beds, stretchers or ancillary products that infringe on Hill-Rom's patents. On August 14, 2012, we entered into a confidential favorable settlement agreement with Stryker Corporation to resolve our claims about our powered wheel patents, and on March 26, 2015, we entered into a confidential favorable settlement agreement with Stryker Corporation to resolve our claims about our status information systems. No trial date for the remaining claims covering proprietary communications networks has been set, and accordingly we cannot, at this time, assess the likelihood of any potential outcome or damages or other relief. | |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events |
On April 22, 2015, we offered all terminated vested participants of our domestic master defined benefit retirement plan an option to receive a lump sum cash payout in lieu of their right to future periodic benefit payments under the plan upon their retirement. The offer will extend for a period of several months with payments likely to occur in September 2015. Based on the voluntary elections of participants we may incur a settlement charge in the second half of fiscal 2015 with respect to this action. We cannot reasonably estimate the financial impact of any potential settlement charge at this time. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||
Mar. 31, 2015 | |||
Summary of Significant Accounting Policies [Abstract] | |||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation | ||
Unless the context otherwise requires, the terms “Hill-Rom,” “we,” “our” and “us” refer to Hill-Rom Holdings, Inc. and our wholly-owned subsidiaries. The unaudited Condensed Consolidated Financial Statements appearing in this Quarterly Report on Form 10-Q should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our latest Annual Report on Form 10-K for the fiscal year ended September 30, 2014 (“2014 Form 10-K”) as filed with the United States (“U.S.”) Securities and Exchange Commission. The September 30, 2014 Condensed Consolidated Balance Sheet was derived from audited Consolidated Financial Statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. In the opinion of management, the Condensed Consolidated Financial Statements herein include all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the interim periods presented. Quarterly results are not necessarily indicative of annual results. | |||
The Condensed Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |||
Use of Estimates | Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires our 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 during the period. Actual results could differ from those estimates. Examples of such estimates include our income taxes (Notes 1 and 9), accounts receivable reserves (Note 2), accrued warranties (Note 12), and commitments and contingencies (Note 14), among others. | |||
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 Condensed Consolidated Balance Sheets, as Level 1 instruments and certain other insignificant derivatives and investments as either Level 2 or 3 instruments. Refer to Note 5 for disclosure of our debt instrument fair values. | |||
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 accounted for on a net (excluded from revenue and costs) basis. | |||
Income Taxes | Income Taxes | ||
We and our eligible domestic subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. Deferred income taxes 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. We have a variety of deferred tax assets in numerous tax jurisdictions. 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 March 31, 2015, we had $23.2 million of valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to foreign operating loss carryforwards and other tax attributes. The valuation allowance was decreased in the current period by $1.9 million to reflect the expected realization of certain deferred assets in Australia. 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. | |||
Employee Benefits Change | Employee Benefits Change | ||
During the second quarter of fiscal 2014, we implemented a new paid time off policy as part of our employee benefits programs, replacing certain previously existing vacation and sick time policies. In conjunction with these changes in policies, the vesting provisions with respect to the accumulation of paid time off were delayed resulting in the recognition and utilization of paid time off in the same benefits year. As a result of this change, significant portions of our existing accrued vacation balance were no longer necessary and we reversed $12.2 million in the second quarter of fiscal 2014 and an additional $1.2 million in the third quarter of fiscal 2014 to reflect the change in vesting provisions. | |||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | ||
In May 2014, the FASB issued Accounting Standards Update (“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. At present time, this guidance will be effective for us in the first quarter of fiscal 2018, ending December 31, 2017. Early adoption is not permitted. | |||
In April 2015, the FASB proposed deferring the effective date by one year to annual reporting periods beginning after December 15, 2017. The FASB also proposed permitting early adoption of the standard, but not before the original effective date. We are currently in the process of evaluating the impact of adoption of this ASU on our Consolidated Financial Statements. | |||
Except as noted above, there have been no significant changes to our assessment of the impact of recently issued accounting standards included in Note 1 of Notes to Consolidated Financial Statements in our 2014 Form 10-K. | |||
Supplementary_Balance_Sheet_In1
Supplementary Balance Sheet Information (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplementary Balance Sheet Information [Abstract] | |||||||||
Supplementary Balance Sheet Information | 31-Mar-15 | 30-Sep-14 | |||||||
Allowance for possible losses and discounts on trade receivables | $ | 27.9 | $ | 31.4 | |||||
Inventories: | |||||||||
Finished products | $ | 89.1 | $ | 93.5 | |||||
Raw materials and work in process | 79.6 | 82.7 | |||||||
Total inventory | $ | 168.7 | $ | 176.2 | |||||
Accumulated depreciation of property, plant and equipment | $ | 592.6 | $ | 588.1 | |||||
Accumulated amortization of software and other intangible assets | $ | 296.5 | $ | 283.3 | |||||
Preferred stock, without par value: | |||||||||
Shares authorized | 1,000,000 | 1,000,000 | |||||||
Shares issued | None | None | |||||||
Common stock, without par value: | |||||||||
Shares authorized | 199,000,000 | 199,000,000 | |||||||
Shares issued | 80,323,912 | 80,323,912 | |||||||
Shares outstanding | 56,654,412 | 57,439,911 | |||||||
Treasury shares | 23,669,500 | 22,884,001 |
Acquisitions_Tables
Acquisitions (Tables) (Trumpf Medical [Member]) | 6 Months Ended | |||||
Mar. 31, 2015 | ||||||
Trumpf Medical [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | Amount | |||||
Trade receivables | $ | 65.6 | ||||
Inventory | 63.6 | |||||
Other current assets | 24.2 | |||||
Property, plant, and equipment | 42.1 | |||||
Goodwill | 62.8 | |||||
Trade name (5-year useful life) | 6.7 | |||||
Customer relationships (10-year weighted average useful life) | 15.8 | |||||
Developed technology (8-year weighted average useful life) | 17.8 | |||||
Other intangibles | 4.8 | |||||
Other noncurrent assets | 0.7 | |||||
Deferred tax asset | 15.2 | |||||
Current liabilities | (72.3 | ) | ||||
Long term debt | (6.0 | ) | ||||
Noncurrent liabilities | (8.1 | ) | ||||
Total purchase price | $ | 232.9 | ||||
Goodwill_and_IndefiniteLived_I1
Goodwill and Indefinite-Lived Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets [Abstract] | |||||||||||||||||
Schedule of Goodwill Activity | North America | Surgical and | International | Total | |||||||||||||
Respiratory Care | |||||||||||||||||
Balances at September 30, 2014: | |||||||||||||||||
Goodwill | $ | 390.6 | $ | 333.5 | $ | 148.5 | $ | 872.6 | |||||||||
Accumulated impairment losses | (358.1 | ) | - | (114.7 | ) | (472.8 | ) | ||||||||||
Goodwill, net at September 30, 2014 | 32.5 | 333.5 | 33.8 | 399.8 | |||||||||||||
Changes in Goodwill during the period: | |||||||||||||||||
Goodwill related to acquisitions | - | 5.5 | - | 5.5 | |||||||||||||
Currency translation effect | - | (13.8 | ) | (4.2 | ) | (18.0 | ) | ||||||||||
Balances at March 31, 2015: | |||||||||||||||||
Goodwill | 390.6 | 325.2 | 144.3 | 860.1 | |||||||||||||
Accumulated impairment losses | (358.1 | ) | - | (114.7 | ) | (472.8 | ) | ||||||||||
Goodwill, net at March 31, 2015 | $ | 32.5 | $ | 325.2 | $ | 29.6 | $ | 387.3 | |||||||||
Financing_Agreements_Tables
Financing Agreements (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Financing Agreements [Abstract] | |||||||||
Schedule of Total Debt | 31-Mar-15 | 30-Sep-14 | |||||||
Revolving credit facility | $ | 360 | $ | 265 | |||||
Term loan, current portion | 18.7 | 16.2 | |||||||
Term loan, long-term portion | 150 | 160 | |||||||
Unsecured 7.00% debentures due on February 15, 2024 | 19.4 | 19.4 | |||||||
Unsecured 6.75% debentures due on December 15, 2027 | 29.8 | 29.8 | |||||||
Other | 0.6 | 1.4 | |||||||
Total debt | 578.5 | 491.8 | |||||||
Less current portion of debt | 128.7 | 126.9 | |||||||
Total long-term debt | $ | 449.8 | $ | 364.9 |
Retirement_and_Postretirement_1
Retirement and Postretirement Plans (Tables) | 6 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||
Schedule of Components of Net Pension Expense | Quarter Ended March 31 | Year to Date Ended March 31 | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Service cost | $ | 1.3 | $ | 1.3 | $ | 2.7 | $ | 2.5 | |||||||
Interest cost | 3.7 | 3.6 | 7.4 | 7.2 | |||||||||||
Expected return on plan assets | (4.2 | ) | (4.2 | ) | (8.5 | ) | (8.4 | ) | |||||||
Amortization of unrecognized prior service cost, net | 0.2 | 0.1 | 0.3 | 0.3 | |||||||||||
Amortization of net loss | 1.3 | 0.8 | 2.7 | 1.6 | |||||||||||
Net pension expense | 2.3 | 1.6 | 4.6 | 3.2 | |||||||||||
Special termination benefits | - | 2.4 | - | 2.4 | |||||||||||
Net pension expense | $ | 2.3 | $ | 4 | $ | 4.6 | $ | 5.6 |
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Changes in AOCL by Component | |||||||||||||||||||||||||||||||||
Quarter Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | (0.4 | ) | $ | - | $ | (0.4 | ) | $ | 0.2 | $ | (0.2 | ) | $ | (0.4 | ) | $ | (0.2 | ) | $ | (0.6 | ) | |||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | (48.0 | ) | - | (48.0 | ) | - | (48.0 | ) | (56.8 | ) | (48.0 | ) | (104.8 | ) | |||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | - | 1.4 | 1.4 | (0.5 | ) | 0.9 | (39.0 | ) | 0.9 | (38.1 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | (48.4 | ) | $ | 1.4 | $ | (47.0 | ) | $ | (0.3 | ) | $ | (47.3 | ) | $ | (96.2 | ) | $ | (47.3 | ) | $ | (143.5 | ) | ||||||||||
Quarter Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | - | $ | 0.1 | $ | 0.1 | $ | - | $ | 0.1 | $ | (0.2 | ) | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | (0.2 | ) | - | (0.2 | ) | - | (0.2 | ) | 1.2 | (0.2 | ) | 1 | |||||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | - | 0.9 | 0.9 | (0.4 | ) | 0.5 | (30.2 | ) | 0.5 | (29.7 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | (0.2 | ) | $ | 1 | $ | 0.8 | $ | (0.4 | ) | $ | 0.4 | $ | (29.2 | ) | $ | 0.4 | $ | (28.8 | ) | |||||||||||||
Year to Date Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
Other comprehensive income | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | (1.0 | ) | $ | - | $ | (1.0 | ) | $ | 0.4 | $ | (0.6 | ) | $ | - | $ | (0.6 | ) | $ | (0.6 | ) | ||||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | (70.6 | ) | - | (70.6 | ) | - | (70.6 | ) | (34.2 | ) | (70.6 | ) | (104.8 | ) | |||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | 0.1 | 2.7 | 2.8 | (1.0 | ) | 1.8 | (39.9 | ) | 1.8 | (38.1 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | (71.5 | ) | $ | 2.7 | $ | (68.8 | ) | $ | (0.6 | ) | $ | (69.4 | ) | $ | (74.1 | ) | $ | (69.4 | ) | $ | (143.5 | ) | ||||||||||
Year to Date Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Other comprehensive income | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Prior to | Reclassification | Pre-tax | Tax effect | Net of tax | Beginning | Net activity | Ending | ||||||||||||||||||||||||||
reclassification | from | balance | balance | ||||||||||||||||||||||||||||||
Available-for-sale securities | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | - | $ | 0.2 | $ | (0.3 | ) | $ | 0.2 | $ | (0.1 | ) | |||||||||||||||
and currency hedges | |||||||||||||||||||||||||||||||||
Foreign currency translation | 5.6 | - | 5.6 | - | 5.6 | (4.6 | ) | 5.6 | 1 | ||||||||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||||||
Change in pension and postretirement | 0.2 | 1.7 | 1.9 | (0.8 | ) | 1.1 | (30.8 | ) | 1.1 | (29.7 | ) | ||||||||||||||||||||||
defined benefit plans | |||||||||||||||||||||||||||||||||
Total | $ | 5.9 | $ | 1.8 | $ | 7.7 | $ | (0.8 | ) | $ | 6.9 | $ | (35.7 | ) | $ | 6.9 | $ | (28.8 | ) | ||||||||||||||
Schedule of Items Reclassified out of AOCL | Quarter Ended March 31 | ||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Amount | Tax effect | Net of tax | Amount | Tax effect | Net of tax | ||||||||||||||||||||||||||||
reclassified | reclassified | ||||||||||||||||||||||||||||||||
Change in pension and postretirement defined benefit plans (a) | $ | 1.4 | $ | (0.5 | ) | $ | 0.9 | $ | 0.9 | $ | (0.4 | ) | $ | 0.5 | |||||||||||||||||||
Available-for-sale securities and currency hedges (b) | - | - | - | 0.1 | - | 0.1 | |||||||||||||||||||||||||||
Year to Date Ended March 31 | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Amount | Tax effect | Net of tax | Amount | Tax effect | Net of tax | ||||||||||||||||||||||||||||
reclassified | reclassified | ||||||||||||||||||||||||||||||||
Change in pension and postretirement defined benefit plans (a) | $ | 2.7 | $ | (1.0 | ) | $ | 1.7 | $ | 1.7 | $ | (0.7 | ) | $ | 1 | |||||||||||||||||||
Available-for-sale securities and currency hedges (b) | - | - | - | 0.1 | - | 0.1 | |||||||||||||||||||||||||||
(a) | Reclassified from accumulated other comprehensive loss into cost of goods sold and selling and administrative expenses. These components are included in the computation of net periodic pension expense. | ||||||||||||||||||||||||||||||||
(b) | Reclassified from accumulated other comprehensive loss into other income (expense), net. | ||||||||||||||||||||||||||||||||
Special_Charges_Tables
Special Charges (Tables) | 6 Months Ended | |||||
Mar. 31, 2015 | ||||||
Special Charges [Abstract] | ||||||
Restructuring Activity | Balance at September 30, 2014 | $ | 11.7 | |||
Expenses | 4.6 | |||||
Cash Payments | (7.2 | ) | ||||
Reversals | (0.5 | ) | ||||
Balance at March 31, 2015 | $ | 8.6 |
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings per Common Share [Abstract] | ||||||||||||||||
Calculated Earnings per Share | Quarter Ended March 31 | Year to Date Ended March 31 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income (loss) | $ | 26.1 | $ | (3.3 | ) | $ | 38.2 | $ | 9.9 | |||||||
Average shares outstanding - Basic | 56,544 | 57,303 | 56,841 | 57,781 | ||||||||||||
Add potential effect of exercise of stock options | ||||||||||||||||
and other unvested equity awards | 1,066 | - | 1,053 | 831 | ||||||||||||
Average shares outstanding - Diluted | 57,610 | 57,303 | 57,894 | 58,612 | ||||||||||||
Net income (loss) per common share - Basic | $ | 0.46 | $ | (0.06 | ) | $ | 0.67 | $ | 0.17 | |||||||
Net income (loss) per common share - Diluted | $ | 0.45 | $ | (0.06 | ) | $ | 0.66 | $ | 0.17 | |||||||
Shares with anti-dilutive effect excluded from the computation of Diluted EPS | 541 | 1,812 | 516 | 504 |
Guarantees_Tables
Guarantees (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Guarantees [Abstract] | ||||||||||||||||
Reconciliation of Changes in the Warranty Reserve | Quarter Ended March 31 | Year to Date Ended March 31 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Balance at beginning of period | $ | 28 | $ | 37.3 | $ | 28.4 | $ | 38.1 | ||||||||
Provision for warranties during the period | 3.6 | 2.6 | 6.5 | 7.2 | ||||||||||||
Warranty reserves acquired | - | - | 1.1 | - | ||||||||||||
Warranty claims during the period | (4.4 | ) | (5.8 | ) | (8.8 | ) | (11.2 | ) | ||||||||
Balance at end of period | $ | 27.2 | $ | 34.1 | $ | 27.2 | $ | 34.1 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Reconciliation of Segment Information to Consolidated Financial Information | Quarter Ended March 31 | Year to Date Ended March 31 | ||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue: | ||||||||||||||||
North America | $ | 246.9 | $ | 224.5 | $ | 472.1 | $ | 430 | ||||||||
Surgical and Respiratory Care | 120 | 65.6 | 246.3 | 128.9 | ||||||||||||
International | 107.9 | 125.2 | 221.4 | 249.8 | ||||||||||||
Total revenue | $ | 474.8 | $ | 415.3 | $ | 939.8 | $ | 808.7 | ||||||||
Divisional income: | ||||||||||||||||
North America | $ | 52.3 | $ | 47.5 | $ | 90.8 | $ | 75.5 | ||||||||
Surgical and Respiratory Care | 18.3 | 15.7 | 37.7 | 30.3 | ||||||||||||
International | 4.4 | 5.2 | 7.2 | 10.7 | ||||||||||||
Other operating costs: | ||||||||||||||||
Non-allocated operating and administrative costs | 32.9 | 12.2 | 70.6 | 37.9 | ||||||||||||
Special charges | 3.8 | 28.4 | 7.5 | 29.4 | ||||||||||||
Operating profit | 38.3 | 27.8 | 57.6 | 49.2 | ||||||||||||
Interest expense | (3.0 | ) | (2.3 | ) | (6.2 | ) | (4.3 | ) | ||||||||
Investment income and other, net | 1.3 | (0.2 | ) | 2.2 | (0.2 | ) | ||||||||||
Income before income taxes | $ | 36.6 | $ | 25.3 | $ | 53.6 | $ | 44.7 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 6 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 |
Summary of Significant Accounting Policies [Abstract] | |||
Valuation allowance on deferred tax assets | $23.20 | ||
Net change in valuation allowance | -1.9 | ||
Paid Time Off Policy [Member] | |||
Employee Benefits Change | |||
Employee benefits expense reversed | ($1.20) | ($12.20) |
Supplementary_Balance_Sheet_In2
Supplementary Balance Sheet Information (Details) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Supplementary Balance Sheet Information [Abstract] | ||
Allowance for possible losses and discounts on trade receivables | $27.90 | $31.40 |
Inventories: | ||
Finished products | 89.1 | 93.5 |
Raw materials and work in process | 79.6 | 82.7 |
Total inventory | 168.7 | 176.2 |
Accumulated depreciation of property, plant and equipment | 592.6 | 588.1 |
Accumulated amortization of software and other intangible assets | $296.50 | $283.30 |
Preferred stock, without par value: | ||
Par value | ||
Shares authorized | 1,000,000 | 1,000,000 |
Shares issued | 0 | 0 |
Common stock, without par value: | ||
Par value | ||
Shares authorized | 199,000,000 | 199,000,000 |
Shares issued | 80,323,912 | 80,323,912 |
Shares outstanding | 56,654,412 | 57,439,911 |
Treasury shares | 23,669,500 | 22,884,001 |
Acquisitions_Acquisition_of_Tr
Acquisitions (Acquisition of Trumpf Medical) (Details) (USD $) | 6 Months Ended | 0 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Aug. 01, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 |
Business Acquisition [Line Items] | ||||||
Purchase price of entity, net of cash acquired | $2.70 | $14.30 | ||||
Fair value of the assets acquired and liabilities assumed: | ||||||
Goodwill | 387.3 | 387.3 | 399.8 | |||
Trumpf Medical [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price of entity | 232.9 | |||||
Purchase price of entity, net of cash acquired | 226.6 | |||||
Purchase price adjustment | 3 | |||||
Fair value of the assets acquired and liabilities assumed: | ||||||
Trade receivables | 65.6 | |||||
Inventory | 63.6 | |||||
Other current assets | 24.2 | |||||
Property, plant, and equipment | 42.1 | |||||
Goodwill | 62.8 | |||||
Other intangibles | 4.8 | |||||
Other noncurrent assets | 0.7 | |||||
Deferred tax asset | 15.2 | |||||
Current liabilities | -72.3 | |||||
Long term debt | -6 | |||||
Noncurrent liabilities | -8.1 | |||||
Total purchase price | 232.9 | |||||
Pro Forma Information: | ||||||
Total revenues | 123 | 63 | ||||
Trumpf Medical [Member] | Trade Name [Member] | ||||||
Fair value of the assets acquired and liabilities assumed: | ||||||
Intangible assets (Finite Lived) | 6.7 | |||||
Useful lives assigned to intangibles: | ||||||
Weighted-average useful life | 5 years | |||||
Trumpf Medical [Member] | Customer Relationships [Member] | ||||||
Fair value of the assets acquired and liabilities assumed: | ||||||
Intangible assets (Finite Lived) | 15.8 | |||||
Useful lives assigned to intangibles: | ||||||
Weighted-average useful life | 10 years | |||||
Trumpf Medical [Member] | Technology [Member] | ||||||
Fair value of the assets acquired and liabilities assumed: | ||||||
Intangible assets (Finite Lived) | $17.80 | |||||
Useful lives assigned to intangibles: | ||||||
Weighted-average useful life | 8 years |
Goodwill_and_IndefiniteLived_I2
Goodwill and Indefinite-Lived Intangible Assets (Schedule of Goodwill Activity) (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 |
Goodwill [Line Items] | ||
Goodwill | $860.10 | $872.60 |
Accumulated impairment losses | -472.8 | -472.8 |
Goodwill, net | 387.3 | 399.8 |
Goodwill related to acquisitions | 5.5 | |
Currency translation effect | -18 | |
North America Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 390.6 | 390.6 |
Accumulated impairment losses | -358.1 | -358.1 |
Goodwill, net | 32.5 | 32.5 |
Goodwill related to acquisitions | ||
Currency translation effect | ||
Surgical and Respiratory Care Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 325.2 | 333.5 |
Accumulated impairment losses | ||
Goodwill, net | 325.2 | 333.5 |
Goodwill related to acquisitions | 5.5 | |
Currency translation effect | -13.8 | |
International [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 144.3 | 148.5 |
Accumulated impairment losses | -114.7 | -114.7 |
Goodwill, net | 29.6 | 33.8 |
Goodwill related to acquisitions | ||
Currency translation effect | ($4.20) |
Financing_Agreements_Schedule_
Financing Agreements (Schedule of Total Debt) (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 |
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | $578.50 | $491.80 |
Less current portion of debt | 128.7 | 126.9 |
Total long-term debt | 449.8 | 364.9 |
Revolving Credit Facility [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | 360 | 265 |
Term Loan [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Less current portion of debt | 18.7 | 16.2 |
Total long-term debt | 150 | 160 |
Unsecured 7.00% Debentures due on February 15, 2024 [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | 19.4 | 19.4 |
Unsecured debenture interest rate | 7.00% | |
Debt instrument, maturity date | 15-Feb-24 | |
Unsecured 6.75% Debentures due on December 15, 2027 [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | 29.8 | 29.8 |
Unsecured debenture interest rate | 6.75% | |
Debt instrument, maturity date | 15-Dec-27 | |
Other [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | $0.60 | $1.40 |
Financing_Agreements_Narrative
Financing Agreements (Narrative) (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 1.3 | $42.40 |
Deferred gains from the termination of previous interest rate swap agreements | 1 | 1 |
Fair value of unsecured debentures | 58.2 | 55.5 |
Fair value of term loan | 168 | 175.2 |
Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate swap agreement, notional amount | 118.8 | |
Interest rate swap, fair value | -0.5 | 0.2 |
Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum interest rate during period | 2.00% | |
Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Senior revolving credit facility, maximum borrowing amount | 500 | |
Outstanding borrowings | 360 | |
Current borrowing capacity under the facility | 134.9 | |
Credit Facility [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate value of debt | 200 | |
Credit Facility [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 5.1 | |
New Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Senior revolving credit facility, maximum borrowing amount | 900 | |
Credit facility expiration date | 1-May-20 | |
Amount of principal payment | 43.8 | |
Outstanding borrowings | 360 | |
Current borrowing capacity under the facility | 534.9 | |
New Credit Facility [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate value of debt | 168.8 | |
Debt instrument, maturity date | 24-Aug-17 | |
New Credit Facility [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | 5.1 | |
Maximum [Member] | Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Ratio of consolidated indebtedness to consolidated EBITDA | 3.5 | |
Maximum [Member] | New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Ratio of consolidated indebtedness to consolidated EBITDA | 3.5 | |
Minimum [Member] | Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest coverage ratio | 3.5 | |
Minimum [Member] | New Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest coverage ratio | 3 |
Retirement_and_Postretirement_2
Retirement and Postretirement Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Special termination benefits | $4.50 | ||||
Defined contribution savings plans expense | 3.8 | 3.6 | 8 | 7.3 | |
Master Defined Benefit Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1.3 | 1.3 | 2.7 | 2.5 | |
Interest cost | 3.7 | 3.6 | 7.4 | 7.2 | |
Expected return on plan assets | -4.2 | -4.2 | -8.5 | -8.4 | |
Amortization of unrecognized prior service cost, net | 0.2 | 0.1 | 0.3 | 0.3 | |
Amortization of net loss | 1.3 | 0.8 | 2.7 | 1.6 | |
Net pension expense | 2.3 | 1.6 | 4.6 | 3.2 | |
Special termination benefits | 2.4 | 2.4 | |||
Net pension expense | 2.3 | 4 | 4.6 | 5.6 | |
Postretirement Health Care Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Special termination benefits | $2.10 | ($1.30) |
Other_Comprehensive_Income_Sch
Other Comprehensive Income (Schedule of Changes in AOCL by Component) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Other comprehensive income (loss) | ||||||||
Prior to reclassification | ($48.40) | ($0.20) | ($71.50) | $5.90 | ||||
Reclassification from | 1.4 | 1 | 2.7 | 1.8 | ||||
Pre-tax | -47 | 0.8 | -68.8 | 7.7 | ||||
Tax effect | -0.3 | -0.4 | -0.6 | -0.8 | ||||
Net of tax | -47.3 | 0.4 | -69.4 | 6.9 | ||||
Accumulated other comprehensive loss | ||||||||
Beginning balance | 806.5 | |||||||
Net activity | -47.3 | 0.4 | -69.4 | 6.9 | ||||
Ending balance | 722.3 | 722.3 | ||||||
Available-for-Sale Securities and Currency Hedges [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Prior to reclassification | -0.4 | -1 | 0.1 | |||||
Reclassification from | 0.1 | 0.1 | ||||||
Pre-tax | -0.4 | 0.1 | -1 | 0.2 | ||||
Tax effect | 0.2 | 0.4 | ||||||
Net of tax | -0.2 | 0.1 | -0.6 | 0.2 | ||||
Accumulated other comprehensive loss | ||||||||
Beginning balance | -0.4 | -0.2 | -0.3 | |||||
Net activity | -0.2 | 0.1 | -0.6 | 0.2 | ||||
Ending balance | -0.6 | -0.1 | -0.6 | -0.1 | ||||
Foreign Currency Translation Adjustment [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Prior to reclassification | -48 | -0.2 | -70.6 | 5.6 | ||||
Reclassification from | ||||||||
Pre-tax | -48 | -0.2 | -70.6 | 5.6 | ||||
Tax effect | ||||||||
Net of tax | -48 | -0.2 | -70.6 | 5.6 | ||||
Accumulated other comprehensive loss | ||||||||
Beginning balance | -56.8 | 1.2 | -34.2 | -4.6 | ||||
Net activity | -48 | -0.2 | -70.6 | 5.6 | ||||
Ending balance | -104.8 | 1 | -104.8 | 1 | ||||
Pension and Postretirement Defined Benefit Plan Items [Member] | ||||||||
Other comprehensive income (loss) | ||||||||
Prior to reclassification | 0.1 | 0.2 | ||||||
Reclassification from | 1.4 | 0.9 | 2.7 | 1.7 | ||||
Pre-tax | 1.4 | 0.9 | 2.8 | 1.9 | ||||
Tax effect | -0.5 | -0.4 | -1 | -0.8 | ||||
Net of tax | 0.9 | 0.5 | 1.8 | 1.1 | ||||
Accumulated other comprehensive loss | ||||||||
Beginning balance | -39 | -30.2 | -39.9 | -30.8 | ||||
Net activity | 0.9 | 0.5 | 1.8 | 1.1 | ||||
Ending balance | -38.1 | -29.7 | -38.1 | -29.7 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Accumulated other comprehensive loss | ||||||||
Beginning balance | -96.2 | -74.1 | -29.2 | -35.7 | ||||
Ending balance | ($143.50) | ($28.80) | ($143.50) | ($28.80) | ($96.20) | ($74.10) | ($29.20) | ($35.70) |
Other_Comprehensive_Income_Sch1
Other Comprehensive Income (Schedule of Items Reclassified out of AOCL) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amount reclassified | ($36.60) | ($25.30) | ($53.60) | ($44.70) | ||||
Tax effect | 10.5 | 28.6 | 15.4 | 34.8 | ||||
Net of tax | -26.1 | 3.3 | -38.2 | -9.9 | ||||
Pension and Postretirement Defined Benefit Plan Items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amount reclassified | 1.4 | [1] | 0.9 | [1] | 2.7 | [1] | 1.7 | [1] |
Tax effect | -0.5 | [1] | -0.4 | [1] | -1 | [1] | -0.7 | [1] |
Net of tax | 0.9 | [1] | 0.5 | [1] | 1.7 | [1] | 1 | [1] |
Available-for-Sale Securities and Currency Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amount reclassified | [2] | 0.1 | [2] | [2] | 0.1 | [2] | ||
Tax effect | [2] | [2] | [2] | [2] | ||||
Net of tax | [2] | $0.10 | [2] | [2] | $0.10 | [2] | ||
[1] | Reclassified from accumulated other comprehensive loss into cost of goods sold and selling and administrative expenses. These components are included in the computation of net periodic pension expense. | |||||||
[2] | Reclassified from accumulated other comprehensive loss into other income (expense), net. |
Special_Charges_Narrative_Deta
Special Charges (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
employees | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charge | $3.80 | $28.40 | $7.50 | $29.40 | |
Reversals of previously recorded expenses | 0.5 | ||||
Global Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charge | 16.9 | ||||
Number of positions planned to be eliminated | 200 | ||||
Aggregate special charges recognized | 32.4 | 32.4 | |||
Global Restructuring Program [Member] | Employee Termination and Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charge | 2.3 | 4.6 | |||
Reversals of previously recorded expenses | 0.5 | ||||
Global Restructuring Program [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charge | 2 | 3.4 | |||
Global Restructuring Program [Member] | Minimum [Member] | Europe [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected additional costs | 10 | 10 | |||
Global Restructuring Program [Member] | Maximum [Member] | Europe [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected additional costs | 15 | 15 | |||
Plan to Discontinue Third Party Payer Rentals [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of certain tangible assets | 7.7 | ||||
Number of positions planned to be eliminated | 70 | ||||
Plan to Discontinue Third Party Payer Rentals [Member] | Employee Termination and Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charge | 2 | ||||
Plan to Discontinue Third Party Payer Rentals [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charge | 1.8 | ||||
Batesville, Indiana Plant Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Special charge | $1 | ||||
Number of positions eliminated | 35 |
Special_Charges_Schedule_of_Re
Special Charges (Schedule of Restructuring Activity) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $11.70 |
Expenses | 4.6 |
Cash Payments | -7.2 |
Reversals | -0.5 |
Ending Balance | $8.60 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2015 |
Effective tax rate | 28.70% | 113.00% | 28.70% | 77.90% | |
Effect of change in valuation allowance on tax expense | ($1.90) | $19.60 | ($1.90) | $19.60 | |
Scenario, Forecast [Member] | |||||
Favorable impact of tax credit | $2 |
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings per Common Share [Abstract] | ||||
Net income (loss) | $26.10 | ($3.30) | $38.20 | $9.90 |
Average shares outstanding - Basic | 56,544 | 57,303 | 56,841 | 57,781 |
Add potential effect of exercise of stock options and other unvested equity awards | 1,066 | 1,053 | 831 | |
Average shares outstanding - Diluted | 57,610 | 57,303 | 57,894 | 58,612 |
Net income (loss) per common share - Basic | $0.46 | ($0.06) | $0.67 | $0.17 |
Net income (loss) per common share - Diluted | $0.45 | ($0.06) | $0.66 | $0.17 |
Shares with anti-dilutive effect excluded from the computation of Diluted EPS | 541 | 1,812 | 516 | 504 |
Common_Stock_Details
Common Stock (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Common Stock [Abstract] | ||||
Stock based compensation cost charged against income, net of tax | $3.40 | $3.40 | $6.40 | $5.70 |
Guarantees_Details
Guarantees (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $28 | $37.30 | $28.40 | $38.10 |
Provision for warranties during the period | 3.6 | 2.6 | 6.5 | 7.2 |
Warranty reserves acquired | 1.1 | |||
Warranty claims during the period | -4.4 | -5.8 | -8.8 | -11.2 |
Balance at end of period | $27.20 | $34.10 | $27.20 | $34.10 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||||
Revenue | $474.80 | $415.30 | $939.80 | $808.70 |
Special charge | 3.8 | 28.4 | 7.5 | 29.4 |
Operating profit | 38.3 | 27.8 | 57.6 | 49.2 |
Interest expense | -3 | -2.3 | -6.2 | -4.3 |
Investment income and other, net | 1.3 | -0.2 | 2.2 | -0.2 |
Income Before Income Taxes | 36.6 | 25.3 | 53.6 | 44.7 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 474.8 | 415.3 | 939.8 | 808.7 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | -32.9 | -12.2 | -70.6 | -37.9 |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Special charge | 3.8 | 28.4 | 7.5 | 29.4 |
North America Segment [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 246.9 | 224.5 | 472.1 | 430 |
Operating profit | 52.3 | 47.5 | 90.8 | 75.5 |
Surgical and Respiratory Care Segment [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 120 | 65.6 | 246.3 | 128.9 |
Operating profit | 18.3 | 15.7 | 37.7 | 30.3 |
International [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 107.9 | 125.2 | 221.4 | 249.8 |
Operating profit | $4.40 | $5.20 | $7.20 | $10.70 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Uninsured Risk [Member], USD $) | Mar. 31, 2015 |
Uninsured Risk [Member] | |
Loss Contingencies [Line Items] | |
Deductibles and self-insured retentions, minimum | $25,000 |
Deductibles and self-insured retentions, maximum | $1,000,000 |