Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document And Entity Information Abstract | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Entity Registrant Name | Hill-Rom Holdings, Inc. | |
Entity Central Index Key | 47,518 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,719,589 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Revenue | ||||
Capital sales | $ 376.8 | $ 302.8 | $ 1,125.9 | $ 911.9 |
Rental revenue | 97.7 | 94.8 | 288.4 | 294.4 |
Total revenue | 474.5 | 397.6 | 1,414.3 | 1,206.3 |
Cost of Revenue | ||||
Cost of goods sold | 217.9 | 168.2 | 652.3 | 508.9 |
Rental expenses | 47.1 | 42.3 | 138.4 | 130.8 |
Total cost of revenue | 265 | 210.5 | 790.7 | 639.7 |
Gross Profit | 209.5 | 187.1 | 623.6 | 566.6 |
Research and development expenses | 23.3 | 17.5 | 67.3 | 50.3 |
Selling and administrative expenses | 150.5 | 128.6 | 455.5 | 396.7 |
Special charges (Note 8) | 4.4 | 3 | 11.9 | 32.4 |
Operating Profit | 31.3 | 38 | 88.9 | 87.2 |
Interest expense | $ (3.3) | (2.5) | (9.5) | (6.8) |
Investment income and other, net | 0.8 | 2.2 | 0.6 | |
Income Before Income Taxes | $ 28 | 36.3 | 81.6 | 81 |
Income tax expense (Note 9) | 9.3 | 10.2 | 24.7 | 45 |
Net Income | 18.7 | $ 26.1 | 56.9 | $ 36 |
Less: Net loss attributable to noncontrolling interests | (0.4) | (0.4) | ||
Net Income Attributable to Common Shareholders | $ 19.1 | $ 26.1 | $ 57.3 | $ 36 |
Net Income Attributable to Common Shareholders per Common Share - Basic | $ 0.34 | $ 0.46 | $ 1.01 | $ 0.62 |
Net Income Attributable to Common Shareholders per Common Share - Diluted | 0.33 | 0.45 | 0.99 | 0.61 |
Dividends per Common Share | $ 0.1600 | $ 0.1525 | $ 0.4725 | $ 0.4425 |
Average Common Shares Outstanding - Basic (thousands) (Note 10) | 56,670 | 57,273 | 56,777 | 57,612 |
Average Common Shares Outstanding - Diluted (thousands) (Note 10) | 57,899 | 58,160 | 57,943 | 58,499 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net Income | $ 18.7 | $ 26.1 | $ 56.9 | $ 36 |
Other Comprehensive Income (Loss), net of tax (Note 7): | ||||
Available-for-sale securities and currency hedges | 0.1 | (0.5) | (0.5) | (0.3) |
Foreign currency translation adjustment | 19.4 | 1.1 | (51.2) | 6.7 |
Change in pension and postretirement defined benefit plans | 0.8 | 0.6 | 2.6 | 1.7 |
Total Other Comprehensive Income (Loss), net of tax | 20.3 | 1.2 | (49.1) | 8.1 |
Total Comprehensive Income | 39 | $ 27.3 | 7.8 | $ 44.1 |
Less: Comprehensive loss attributable to noncontrolling interests | (0.4) | (0.4) | ||
Total Comprehensive Income Attributable to Common Shareholders | $ 39.4 | $ 27.3 | $ 8.2 | $ 44.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Sep. 30, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 123.4 | $ 99.3 |
Trade accounts receivable, net of allowances (Note 2) | 390.6 | 411 |
Inventories (Note 2) | 169.9 | 176.2 |
Deferred income taxes (Notes 1 and 9) | 43.1 | 40.9 |
Other current assets | 54.4 | 51.9 |
Total current assets | 781.4 | 779.3 |
Property, plant and equipment, net (Note 2) | 287.5 | 261.5 |
Goodwill (Note 4) | 406.3 | 399.8 |
Software and other intangible assets, net (Note 2) | 235 | 261.1 |
Deferred income taxes (Notes 1 and 9) | 22.9 | 23 |
Other assets | 24.4 | 27.4 |
Total Assets | 1,757.5 | 1,752.1 |
Current Liabilities | ||
Trade accounts payable | 85.2 | 112.7 |
Short-term borrowings (Note 5) | 130 | 126.9 |
Accrued compensation | 82.8 | 89.2 |
Accrued product warranties (Note 12) | 29.4 | 28.4 |
Other current liabilities | 81.1 | 85.1 |
Total current liabilities | 408.5 | 442.3 |
Long-term debt (Note 5) | 447.8 | 364.9 |
Accrued pension and postretirement benefits (Note 6) | 75.7 | 76.9 |
Deferred income taxes (Notes 1 and 9) | 23.9 | 31 |
Other long-term liabilities | 32.4 | 30.5 |
Total Liabilities | $ 988.3 | $ 945.6 |
Commitments and Contingencies (Note 14) | ||
SHAREHOLDERS' EQUITY | ||
Common stock (Note 2) | $ 4.4 | $ 4.4 |
Additional paid-in-capital | 144.6 | 134.1 |
Retained earnings | 1,530.1 | 1,499.8 |
Accumulated other comprehensive loss (Note 7) | (123.2) | (74.1) |
Treasury stock, at cost (Note 2) | (797.2) | (757.7) |
Total Shareholders' Equity Attributable to Common Shareholders | 758.7 | $ 806.5 |
Noncontrolling Interests | 10.5 | |
Total Shareholders' Equity | 769.2 | $ 806.5 |
Total Liabilities and Shareholders' Equity | $ 1,757.5 | $ 1,752.1 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities | ||
Net Income | $ 56.9 | $ 36 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 53.1 | 49.5 |
Amortization | 8.3 | 9.6 |
Acquisition-related intangible asset amortization | 23.4 | 20.9 |
Provision for deferred income taxes | $ (12.3) | 4.6 |
Loss on disposal of property, equipment leased to others, intangible assets and impairments | 7.3 | |
Stock compensation | $ 14 | 13.2 |
Excess tax benefits from employee stock plans | (1.7) | 0.5 |
Change in working capital excluding cash, current debt, acquisitions and dispositions | ||
Trade accounts receivable | 4.7 | 29.8 |
Inventories | (3.4) | (1.2) |
Other current assets | (5.1) | (4.2) |
Trade accounts payable | (18.1) | (9.4) |
Accrued expenses and other liabilities | 0.3 | (23.1) |
Other, net | 4.3 | 0.7 |
Net cash provided by operating activities | 124.4 | 134.2 |
Investing Activities | ||
Capital expenditures and purchases of intangible assets | (102.6) | (44.4) |
Proceeds on sale of property and equipment leased to others | 1.2 | 1.8 |
Payment for acquisition of businesses, net of cash acquired | $ (5.1) | (15.5) |
Refund on acquisition of businesses | 4.6 | |
Other | $ 2.1 | 3.2 |
Net cash used in investing activities | (104.4) | (50.3) |
Financing Activities | ||
Net change in short-term debt | (0.7) | (0.2) |
Borrowings on revolving credit facility | $ 95 | 35 |
Payments on revolving credit facility | (40) | |
Proceeds from long-term debt | 0.6 | |
Payment of long-term debt | $ (11.5) | $ (7.6) |
Debt issuance costs | (1.6) | |
Purchase of noncontrolling interest of former joint venture | (1.6) | $ (1.3) |
Payment of cash dividends | (26.7) | (25.4) |
Proceeds from exercise of stock options | 10.2 | 10.2 |
Proceeds from stock issuance | 2.1 | 1.8 |
Excess tax benefits from employee stock plans | 1.7 | (0.5) |
Treasury stock acquired | (57.4) | (71.6) |
Net cash provided by (used in) financing activities | 9.5 | (99) |
Effect of exchange rate changes on cash | (5.4) | (0.4) |
Net Cash Flows | 24.1 | (15.5) |
Cash and Cash Equivalents | ||
At beginning of period | 99.3 | 127.4 |
At end of period | $ 123.4 | $ 111.9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 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 consolidated 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 Condensed Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. 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 re ceivable 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 June 30, 201 5 , we had $ 23.8 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 year to date period by $ 1.9 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 1.2 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. In July 2015, the FASB approved delaying the effective date of the new standard by one year. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for us in the first quarter of fiscal 2017, ending December 31, 2016. Early adoption is permitted. We do not expect the adoption of this standard to materially impact 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 Inf
Supplementary Balance Sheet Information | 9 Months Ended |
Jun. 30, 2015 | |
Supplementary Balance Sheet Information [Abstract] | |
Supplementary Balance Sheet Information | 2. Supplementary Balance Sheet Information June 30, 2015 September 30, 2014 Allowance for possible losses and discounts on trade receivables $ 26.1 $ 31.4 Inventories: Finished products $ 88.8 $ 93.5 Raw materials and work in process 81.1 82.7 Total inventory $ 169.9 $ 176.2 Accumulated depreciation of property, plant and equipment $ 599.5 $ 588.1 Accumulated amortization of software and other intangible assets $ 302.0 $ 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 56,715,942 57,439,911 Treasury shares 23,607,970 22,884,001 |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 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 our 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 $ 232.9 226.6 The following summarizes the fair value of assets acquired and liabilities assumed at the date of the acquisition. In fiscal 2015, we made certain adjustments to the opening balance sheet as of the acquisition date to reflect certain fair value adjustments and, in the second quarter, recorded a $ 3.0 million liability to reflect the final settlement of certain purchase agreement provisions with the seller, which has subsequently been paid. These adjustments were not material to prior period financial statements and therefore, the 2014 comparative period presented has not been revised to reflect these adjustments. Fair values of assets and liabilities acquired are still considered preliminary and subject to further adjustments Amount Trade receivables $ 65.6 Inventory 63.6 Other current assets 24.2 Property, plant, and equipment 42.1 Goodwill 63.6 Trade name ( 5 6.7 Customer relationships ( 10 15.8 Developed technology ( 8 17.8 Other intangibles 4.8 Other noncurrent assets 0.7 Deferred tax asset 15.5 Current liabilities (73.4 ) 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 in Germany 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 $ 79 202 Other We have used cash on hand for other business acquisitions and equity investments which we do not consider individually material to the Company's financial position or results of operations. These included one equity investment in which the investee was determined to be a VIE and Hill-Rom was determined to have a controlling financial interest, resulting in consolidation of the investee. The portion of this investee's assets, liabilities, and operating results which are not attributable to Hill-Rom's equity investment are recognized in our Condensed Consolidated Financial Statements as attributable to noncontrolling interests. Welch Allyn In June 2015, we announced entry into a definitive agreement under which Hill-Rom will acquire Welch Allyn Holdings, Inc. (Welch Allyn) for $ 1.625 8.1 2.05 |
Goodwill and Indefinite-Lived I
Goodwill and Indefinite-Lived Intangible Assets | 9 Months Ended |
Jun. 30, 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 Respiratory Care International Total Balances at Goodwill $ 390.6 $ 333.5 $ 148.5 $ 872.6 Accumulated impairment losses (358.1 ) - (114.7 ) (472.8 ) Goodwill, net at 32.5 333.5 33.8 399.8 Changes in Goodwill during the period: Goodwill related to acquisitions - 18.4 - 18.4 Currency translation effect - (8.8 ) (3.1 ) (11.9 ) Balances at June 30, 2015: Goodwill 390.6 343.1 145.4 879.1 Accumulated impairment losses (358.1 ) - (114.7 ) (472.8 ) Goodwill, net at June 30, 2015 $ 32.5 $ 343.1 $ 30.7 $ 406.3 As discussed in Note 3, we recorded adjustments to goodwill during fiscal 2015 related to the Trumpf acquisition completed during the fourth quarter of fiscal 2014. We also consolidated an investment made in fiscal 2015 that was determined to be a VIE in which we have a controlling financial interest. The consolidation resulted in $ 12.1 As discussed in Note 13, we operate in three ten Testing for impairment must be performed annually, or on an interim basis upon the occurrence of a triggering event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The annual evaluation of goodwill performed during the third quarter of fiscal 2015 and 2014 did not result in any impairments. A 10 Indefinite-lived intangible assets We have various indefinite-lived intangible assets representing trade names with a carrying value of $ 32.9 |
Financing Agreements
Financing Agreements | 9 Months Ended |
Jun. 30, 2015 | |
Financing Agreements [Abstract] | |
Financing Agreements | 5. Financing Agreements Total debt consists of the following: June 30, 2015 September 30, 2014 Revolving credit facility $ 360.0 $ 265.0 Term loan current portion 20.0 16.2 Term loan long-term portion 145.0 160.0 Unsecured 7.00 19.4 19.4 Unsecured 6.75 29.8 29.8 Other 3.6 1.4 Total debt 577.8 491.8 Less current portion of debt 130.0 126.9 Total long-term debt $ 447.8 $ 364.9 Prior to May 1, 2015, we had a credit facility that provided for revolving loans of up to $ 500.0 a term loan in the aggregate amount of $ 200.0 Borrowings under the credit facility and term loan bore interest at variable rates specified therein, that were less than 2.0 . On May 1, 2015, we entered into an Amended and Restated Credit Agreement (the Current 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 Current Credit Facility provides for revolving loans outstanding of up to $ 900.0 165.0 360.0 5.1 534.9 All revolving loans under the Current Credit Facility mature May 1, 2020 The term loans will continue to amortize so that $ 40.0 August 24, 2017 Borrowings under the Current 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 that are currently less than 2 3.50 3.00 Unsecured debentures outstanding at June 30, 201 5 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 June 30, 201 5 and September 30, 201 4 . The deferred gains are being amortized and recognized as a reduction of interest expense over the remaining term of the related debt through 2024 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 of outstanding standby letters of credit as of June 30, 201 5 . 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 June 30, 201 5 , we had one interest rate swap agreement with a notional amount of $ 115.0 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 $ 0.4 million liability as of June 30, 201 5 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 $ 55.5 million a t both June 30, 201 5 and September 30, 20 14 , 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 $ 164.4 million and $ 175.2 million at June 30, 2015 and September 30, 2014 based on quoted prices for similar liabilities as of those dates . 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 . In conjunction with the pending acquisition of Welch Allyn, as outlined in Note 3, we intend to refinance our debt. See the Liquidity and Capital Resources section of Management's Discussion and Analysis of Financial Condition and Results of Operations for further details. |
Retirement and Postretirement P
Retirement and Postretirement Plans | 9 Months Ended |
Jun. 30, 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 June 30 Year to Date Ended June 30 2015 2014 2015 2014 Service cost $ 1.4 $ 1.2 $ 4.1 $ 3.7 Interest cost 3.7 3.6 11.1 10.8 Expected return on plan assets (4.3 ) (4.2 ) (12.8 ) (12.6 ) Amortization of unrecognized prior service cost, net 0.2 0.2 0.5 0.5 Amortization of net loss 1.3 0.8 4.0 2.4 Net pension expense 2.3 1.6 6.9 4.8 Special termination benefits - - - 2.4 Net pension expense $ 2.3 $ 1.6 $ 6.9 $ 7.2 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. In April, 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 election window has closed, with initial participant elections received, and we anticipate the lump sum payments to be made in September 2015. Based on the voluntary elections of participants during the window, we expect to incur a non-cash settlement charge of $ 7 10 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 2.4 1.3 2.1 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 $ 4.6 4.1 12.6 11.5 |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Jun. 30, 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 June 30, 2015 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ 0.2 $ - $ 0.2 $ (0.1 ) $ 0.1 $ (0.6 ) $ 0.1 $ (0.5 ) Foreign currency translation adjustment 19.4 - 19.4 - 19.4 (104.8 ) 19.4 (85.4 ) Change in pension and postretirement defined benefit plans - 1.4 1.4 (0.6 ) 0.8 (38.1 ) 0.8 (37.3 ) Total $ 19.6 $ 1.4 $ 21.0 $ (0.7 ) $ 20.3 $ (143.5 ) $ 20.3 $ (123.2 ) Quarter Ended June 30, 2014 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ (0.7) $ - $ (0.7 ) $ 0.2 $ (0.5 ) $ (0.1 ) $ (0.5 ) $ (0.6 ) Foreign currency translation adjustment 1.1 - 1.1 - 1.1 1.0 1.1 2.1 Change in pension and postretirement defined benefit plans - 1.0 1.0 (0.4 ) 0.6 (29.7 ) 0.6 (29.1 ) Total $ 0.4 $ 1.0 $ 1.4 $ (0.2 ) $ 1.2 $ (28.8 ) $ 1.2 $ (27.6 ) Year to Date Ended June 30, 2015 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ (0.8 ) $ - $ (0.8 ) $ 0.3 $ (0.5 ) $ - $ (0.5 ) $ (0.5 ) Foreign currency translation adjustment (51.2 ) - (51.2 ) - (51.2 ) (34.2 ) (51.2 ) (85.4 ) Change in pension and postretirement defined benefit plans 0.1 4.1 4.2 (1.6 ) 2.6 (39.9 ) 2.6 (37.3 ) Total $ (51.9 ) $ 4.1 $ (47.8 ) $ (1.3 ) $ (49.1 ) $ (74.1 ) $ (49.1 ) $ (123.2 ) Year to Date Ended June 30, 2014 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ (0.6 ) $ 0.1 $ (0.5 ) $ 0.2 $ (0.3 ) $ (0.3 ) $ (0.3 ) $ (0.6 ) Foreign currency translation adjustment 6.7 - 6.7 - 6.7 (4.6 ) 6.7 2.1 Change in pension and postretirement defined benefit plans 0.2 2.7 2.9 (1.2 ) 1.7 (30.8 ) 1.7 (29.1 ) Total $ 6.3 $ 2.8 $ 9.1 $ (1.0 ) $ 8.1 $ (35.7 ) $ 8.1 $ (27.6 ) The following table represents the items reclassified out of accumulated other comprehensive loss and the related tax effects: Quarter Ended June 30 2015 2014 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Change in pension and postretirement defined benefit plans (a) $ 1.4 $ (0.6 ) $ 0.8 $ 1.0 $ (0.4 ) $ 0.6 Year to Date Ended June 30 2015 2014 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Change in pension and postretirement defined benefit plans (a) $ 4.1 $ (1.6 ) $ 2.5 $ 2.7 $ (1.1 ) $ 1.6 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 | 9 Months Ended |
Jun. 30, 2015 | |
Special Charges [Abstract] | |
Special Charges | 8 . Special Charges Site Consolidation In the third quarter of fiscal 2015, we initiated a plan to streamline our operations and simplify our supply chain by consolidating certain manufacturing and distribution operations. As part of this action, we have announced the closure of sites in Redditch, England and Charleston, South Carolina. Upon closure, each site's operations will either be relocated to other existing Company facilities or outsourced to third-party suppliers. For the quarter and year to date ended June 30, 2015, we recorded severance and benefit charges of $ 2.0 160 0.2 costs. We expect to incur approximately $ 4 Global Restructuring Program 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 $ 0.4 million and $ 5.0 million for the quarter and year to date ended June 30, 2015, as well as other costs of $ 1.8 5.2 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 Since the inception of the global restructuring program through June 30, 2015, we have recognized aggregate special charges of $ 34.6 million, which are recorded in both fiscal 2014 and 2015. Charges of $ 3.2 20.1 $ 8 to $ 13 million of additional European restructuring costs through the completion of the program. Discontinuance of Third-Party Payer Rentals 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. Special charges recorded for this action included a $ 7.7 2.0 70 1.6 0.2 . Batesville Manufacturing Early Retirement Program 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 1 For all accrued severance and other benefit charges described above, we record restructuring reserves within other current liabilities and other long-term liabilities. The reserve activity for severance and other benefits during fiscal 2015 was as follows: Balance at September 30, 2014 $ 11.7 Expenses 7.0 Cash Payments (8.5 ) Reversals (0.5 ) Balance at June 30, 2015 $ 9.7 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 9 . Income Taxes The effective tax rate was 33.2 30.3 28.1 and 55.6 percent for the comparable prior year periods . The effective rate for the current quarter is higher than the comparable period in fiscal 2014 due primarily to lower earnings in favorable rate jurisdictions. The effective tax rate for the first nine months of fiscal 2015 is lower than the comparable period in fiscal 2014 due primarily to the $ 19.6 3.5 . On December 19, 2014, the Tax Increase Prevention Act of 2014 (the Tax Act) was signed into law. 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 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Jun. 30, 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 June 30 Year to Date Ended June 30 2015 2014 2015 2014 Net income attributable to common shareholders $ 19.1 $ 26.1 $ 57.3 $ 36.0 Average shares outstanding - Basic 56,670 57,273 56,777 57,612 Add potential effect of exercise of stock options and other unvested equity awards 1,229 887 1,166 887 Average shares outstanding - Diluted 57,899 58,160 57,943 58,499 Net income attributable to common shareholders per common share - Basic $ 0.34 $ 0.46 $ 1.01 $ 0.62 Net income attributable to common shareholders per common share - Diluted $ 0.33 $ 0.45 $ 0.99 $ 0.61 Shares with anti-dilutive effect excluded from the computation of Diluted EPS 239 746 457 497 |
Common Stock
Common Stock | 9 Months Ended |
Jun. 30, 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 $ 2.5 8.9 2.7 8.4 |
Guarantees
Guarantees | 9 Months Ended |
Jun. 30, 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 June 30 Year to Date Ended June 30 2015 2014 2015 2014 Balance at beginning of period $ 27.2 $ 34.1 $ 28.4 $ 38.1 Provision for warranties during the period 5.8 0.7 12.3 7.9 Warranty reserves acquired 1.1 - 2.2 - Warranty claims during the period (4.7 ) (5.8 ) (13.5 ) (17.0 ) Balance at end of period $ 29.4 $ 29.0 $ 29.4 $ 29.0 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 | 9 Months Ended |
Jun. 30, 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 - Surgical and Respiratory Care - . International - 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 June 30 Year to Date Ended June 30 2015 2014 2015 2014 Revenue: North America $ 252.4 $ 211.6 $ 724.5 $ 641.6 Surgical and Respiratory Care 119.7 66.2 366.0 195.1 International 102.4 119.8 323.8 369.6 Total revenue $ 474.5 $ 397.6 $ 1,414.3 $ 1,206.3 Divisional income: North America $ 51.3 $ 40.0 $ 142.1 $ 115.5 Surgical and Respiratory Care 18.2 17.5 55.9 47.8 International 1.9 4.7 9.1 15.4 Other operating costs: Non-allocated operating and administrative costs 35.7 21.2 106.3 59.1 Special charges 4.4 3.0 11.9 32.4 Operating profit 31.3 38.0 88.9 87.2 Interest expense (3.3 ) (2.5 ) (9.5 ) (6.8 ) Investment income and other, net - 0.8 2.2 0.6 ) Income before income taxes $ 28.0 $ 36.3 $ 81.6 $ 81.0 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 1 4 . 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 1.0 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 al so has asserted claims for torti ous 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 o n 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. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 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 consolidated 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 Condensed Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. |
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 re ceivable 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 June 30, 201 5 , we had $ 23.8 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 year to date period by $ 1.9 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 1.2 |
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. In July 2015, the FASB approved delaying the effective date of the new standard by one year. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance is effective for us in the first quarter of fiscal 2017, ending December 31, 2016. Early adoption is permitted. We do not expect the adoption of this standard to materially impact 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 I21
Supplementary Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Supplementary Balance Sheet Information [Abstract] | |
Supplementary Balance Sheet Information | June 30, 2015 September 30, 2014 Allowance for possible losses and discounts on trade receivables $ 26.1 $ 31.4 Inventories: Finished products $ 88.8 $ 93.5 Raw materials and work in process 81.1 82.7 Total inventory $ 169.9 $ 176.2 Accumulated depreciation of property, plant and equipment $ 599.5 $ 588.1 Accumulated amortization of software and other intangible assets $ 302.0 $ 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 56,715,942 57,439,911 Treasury shares 23,607,970 22,884,001 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 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 63.6 Trade name ( 5 6.7 Customer relationships ( 10 15.8 Developed technology ( 8 17.8 Other intangibles 4.8 Other noncurrent assets 0.7 Deferred tax asset 15.5 Current liabilities (73.4 ) Long term debt (6.0 ) Noncurrent liabilities (8.1 ) Total purchase price $ 232.9 |
Goodwill and Indefinite-Lived23
Goodwill and Indefinite-Lived Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill and Indefinite-Lived Intangible Assets [Abstract] | |
Schedule of Goodwill Activity | North America Surgical and Respiratory Care International Total Balances at Goodwill $ 390.6 $ 333.5 $ 148.5 $ 872.6 Accumulated impairment losses (358.1 ) - (114.7 ) (472.8 ) Goodwill, net at 32.5 333.5 33.8 399.8 Changes in Goodwill during the period: Goodwill related to acquisitions - 18.4 - 18.4 Currency translation effect - (8.8 ) (3.1 ) (11.9 ) Balances at June 30, 2015: Goodwill 390.6 343.1 145.4 879.1 Accumulated impairment losses (358.1 ) - (114.7 ) (472.8 ) Goodwill, net at June 30, 2015 $ 32.5 $ 343.1 $ 30.7 $ 406.3 |
Financing Agreements (Tables)
Financing Agreements (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Financing Agreements [Abstract] | |
Schedule of Total Debt | June 30, 2015 September 30, 2014 Revolving credit facility $ 360.0 $ 265.0 Term loan current portion 20.0 16.2 Term loan long-term portion 145.0 160.0 Unsecured 7.00 19.4 19.4 Unsecured 6.75 29.8 29.8 Other 3.6 1.4 Total debt 577.8 491.8 Less current portion of debt 130.0 126.9 Total long-term debt $ 447.8 $ 364.9 |
Retirement and Postretirement25
Retirement and Postretirement Plans (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Components of Net Pension Expense | Quarter Ended June 30 Year to Date Ended June 30 2015 2014 2015 2014 Service cost $ 1.4 $ 1.2 $ 4.1 $ 3.7 Interest cost 3.7 3.6 11.1 10.8 Expected return on plan assets (4.3 ) (4.2 ) (12.8 ) (12.6 ) Amortization of unrecognized prior service cost, net 0.2 0.2 0.5 0.5 Amortization of net loss 1.3 0.8 4.0 2.4 Net pension expense 2.3 1.6 6.9 4.8 Special termination benefits - - - 2.4 Net pension expense $ 2.3 $ 1.6 $ 6.9 $ 7.2 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Other Comprehensive Income [Abstract] | |
Schedule of Changes in AOCL by Component | Quarter Ended June 30, 2015 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ 0.2 $ - $ 0.2 $ (0.1 ) $ 0.1 $ (0.6 ) $ 0.1 $ (0.5 ) Foreign currency translation adjustment 19.4 - 19.4 - 19.4 (104.8 ) 19.4 (85.4 ) Change in pension and postretirement defined benefit plans - 1.4 1.4 (0.6 ) 0.8 (38.1 ) 0.8 (37.3 ) Total $ 19.6 $ 1.4 $ 21.0 $ (0.7 ) $ 20.3 $ (143.5 ) $ 20.3 $ (123.2 ) Quarter Ended June 30, 2014 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ (0.7) $ - $ (0.7 ) $ 0.2 $ (0.5 ) $ (0.1 ) $ (0.5 ) $ (0.6 ) Foreign currency translation adjustment 1.1 - 1.1 - 1.1 1.0 1.1 2.1 Change in pension and postretirement defined benefit plans - 1.0 1.0 (0.4 ) 0.6 (29.7 ) 0.6 (29.1 ) Total $ 0.4 $ 1.0 $ 1.4 $ (0.2 ) $ 1.2 $ (28.8 ) $ 1.2 $ (27.6 ) Year to Date Ended June 30, 2015 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ (0.8 ) $ - $ (0.8 ) $ 0.3 $ (0.5 ) $ - $ (0.5 ) $ (0.5 ) Foreign currency translation adjustment (51.2 ) - (51.2 ) - (51.2 ) (34.2 ) (51.2 ) (85.4 ) Change in pension and postretirement defined benefit plans 0.1 4.1 4.2 (1.6 ) 2.6 (39.9 ) 2.6 (37.3 ) Total $ (51.9 ) $ 4.1 $ (47.8 ) $ (1.3 ) $ (49.1 ) $ (74.1 ) $ (49.1 ) $ (123.2 ) Year to Date Ended June 30, 2014 Other comprehensive income (loss) Accumulated other comprehensive loss Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Available-for-sale securities and currency hedges $ (0.6 ) $ 0.1 $ (0.5 ) $ 0.2 $ (0.3 ) $ (0.3 ) $ (0.3 ) $ (0.6 ) Foreign currency translation adjustment 6.7 - 6.7 - 6.7 (4.6 ) 6.7 2.1 Change in pension and postretirement defined benefit plans 0.2 2.7 2.9 (1.2 ) 1.7 (30.8 ) 1.7 (29.1 ) Total $ 6.3 $ 2.8 $ 9.1 $ (1.0 ) $ 8.1 $ (35.7 ) $ 8.1 $ (27.6 ) |
Schedule of Items Reclassified out of AOCL | Quarter Ended June 30 2015 2014 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Change in pension and postretirement defined benefit plans (a) $ 1.4 $ (0.6 ) $ 0.8 $ 1.0 $ (0.4 ) $ 0.6 Year to Date Ended June 30 2015 2014 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Change in pension and postretirement defined benefit plans (a) $ 4.1 $ (1.6 ) $ 2.5 $ 2.7 $ (1.1 ) $ 1.6 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) | 9 Months Ended |
Jun. 30, 2015 | |
Special Charges [Abstract] | |
Restructuring Activity | Balance at September 30, 2014 $ 11.7 Expenses 7.0 Cash Payments (8.5 ) Reversals (0.5 ) Balance at June 30, 2015 $ 9.7 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Earnings per Common Share [Abstract] | |
Calculated Earnings per Share | Quarter Ended June 30 Year to Date Ended June 30 2015 2014 2015 2014 Net income attributable to common shareholders $ 19.1 $ 26.1 $ 57.3 $ 36.0 Average shares outstanding - Basic 56,670 57,273 56,777 57,612 Add potential effect of exercise of stock options and other unvested equity awards 1,229 887 1,166 887 Average shares outstanding - Diluted 57,899 58,160 57,943 58,499 Net income attributable to common shareholders per common share - Basic $ 0.34 $ 0.46 $ 1.01 $ 0.62 Net income attributable to common shareholders per common share - Diluted $ 0.33 $ 0.45 $ 0.99 $ 0.61 Shares with anti-dilutive effect excluded from the computation of Diluted EPS 239 746 457 497 |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Reconciliation of Changes in the Warranty Reserve | Quarter Ended June 30 Year to Date Ended June 30 2015 2014 2015 2014 Balance at beginning of period $ 27.2 $ 34.1 $ 28.4 $ 38.1 Provision for warranties during the period 5.8 0.7 12.3 7.9 Warranty reserves acquired 1.1 - 2.2 - Warranty claims during the period (4.7 ) (5.8 ) (13.5 ) (17.0 ) Balance at end of period $ 29.4 $ 29.0 $ 29.4 $ 29.0 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Consolidated Financial Information | Quarter Ended June 30 Year to Date Ended June 30 2015 2014 2015 2014 Revenue: North America $ 252.4 $ 211.6 $ 724.5 $ 641.6 Surgical and Respiratory Care 119.7 66.2 366.0 195.1 International 102.4 119.8 323.8 369.6 Total revenue $ 474.5 $ 397.6 $ 1,414.3 $ 1,206.3 Divisional income: North America $ 51.3 $ 40.0 $ 142.1 $ 115.5 Surgical and Respiratory Care 18.2 17.5 55.9 47.8 International 1.9 4.7 9.1 15.4 Other operating costs: Non-allocated operating and administrative costs 35.7 21.2 106.3 59.1 Special charges 4.4 3.0 11.9 32.4 Operating profit 31.3 38.0 88.9 87.2 Interest expense (3.3 ) (2.5 ) (9.5 ) (6.8 ) Investment income and other, net - 0.8 2.2 0.6 ) Income before income taxes $ 28.0 $ 36.3 $ 81.6 $ 81.0 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |||
Valuation allowance on deferred tax assets | $ 23.8 | ||
Net change in valuation allowance | $ (1.9) | ||
Paid Time Off Policy [Member] | |||
Employee Benefits Change | |||
Employee benefits expense reversed | $ (1.2) | $ (12.2) |
Supplementary Balance Sheet I32
Supplementary Balance Sheet Information (Details) - USD ($) $ in Millions, None in scaling factor is -9223372036854775296 | Jun. 30, 2015 | Sep. 30, 2014 |
Supplementary Balance Sheet Information [Abstract] | ||
Allowance for possible losses and discounts on trade receivables | $ 26.1 | $ 31.4 |
Inventories: | ||
Finished products | 88.8 | 93.5 |
Raw materials and work in process | 81.1 | 82.7 |
Total inventory | 169.9 | 176.2 |
Accumulated depreciation of property, plant and equipment | 599.5 | 588.1 |
Accumulated amortization of software and other intangible assets | $ 302 | $ 283.3 |
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 | 56,715,942 | 57,439,911 |
Treasury shares | 23,607,970 | 22,884,001 |
Acquisitions (Acquisition of Tr
Acquisitions (Acquisition of Trumpf Medical) (Details) - USD ($) $ in Millions | Aug. 01, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 |
Business Acquisition [Line Items] | ||||||
Purchase price of entity, net of cash acquired | $ 5.1 | $ 15.5 | ||||
Fair value of the assets acquired and liabilities assumed: | ||||||
Goodwill | $ 406.3 | $ 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 | 63.6 | |||||
Other intangibles | 4.8 | |||||
Other noncurrent assets | 0.7 | |||||
Deferred tax asset | 15.5 | |||||
Current liabilities | (73.4) | |||||
Long term debt | (6) | |||||
Noncurrent liabilities | (8.1) | |||||
Total purchase price | 232.9 | |||||
Pro Forma Information: | ||||||
Total revenues | $ 79 | $ 202 | ||||
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) | $ 17.8 | |||||
Useful lives assigned to intangibles: | ||||||
Weighted-average useful life | 8 years |
Acquisitions (Acquisition of We
Acquisitions (Acquisition of Welch Allyn) (Details) - 9 months ended Jun. 30, 2015 - Welch Allyn [Member] - Scenario, Plan [Member] - USD ($) shares in Millions, $ in Millions | Total |
Business Acquisition [Line Items] | |
Cash paid for acquisition | $ 1,625 |
Shares issued in acquisition | 8.1 |
Combined purchase price | $ 2,050 |
Goodwill and Indefinite-Lived35
Goodwill and Indefinite-Lived Intangible Assets (Schedule of Goodwill Activity) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Goodwill [Line Items] | ||
Goodwill | $ 879.1 | $ 872.6 |
Accumulated impairment losses | (472.8) | (472.8) |
Goodwill, net | 406.3 | 399.8 |
Goodwill related to acquisitions | 18.4 | |
Currency translation effect | (11.9) | |
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 | $ 343.1 | $ 333.5 |
Accumulated impairment losses | ||
Goodwill, net | $ 343.1 | $ 333.5 |
Goodwill related to acquisitions | 18.4 | |
Currency translation effect | (8.8) | |
International [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 145.4 | 148.5 |
Accumulated impairment losses | (114.7) | (114.7) |
Goodwill, net | $ 30.7 | $ 33.8 |
Goodwill related to acquisitions | ||
Currency translation effect | $ (3.1) |
Goodwill and Indefinite-Lived36
Goodwill and Indefinite-Lived Intangible Assets (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015USD ($)units | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Goodwill [Line Items] | |||
Goodwill related to acquisitions | $ 18.4 | ||
Number of reportable business segments | units | 3 | ||
Number of reporting units | units | 10 | ||
Minimum threshold at which impairment charge may be recognized | 10.00% | ||
Indefinite-lived intangible assets | $ 32.9 | 32.9 | $ 32.9 |
Consolidation of VIE [Member] | |||
Goodwill [Line Items] | |||
Goodwill related to acquisitions | $ 12.1 |
Financing Agreements (Schedule
Financing Agreements (Schedule of Total Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | $ 577.8 | $ 491.8 |
Less current portion of debt | 130 | 126.9 |
Total long-term debt | 447.8 | 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 | 20 | 16.2 |
Total long-term debt | 145 | 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 | Feb. 15, 2024 | |
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 | Dec. 15, 2027 | |
Other [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | $ 3.6 | $ 1.4 |
Financing Agreements (Narrative
Financing Agreements (Narrative) (Details) $ in Millions | 2 Months Ended | 7 Months Ended | 9 Months Ended | |
Jun. 30, 2015USD ($) | Apr. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 1.3 | $ 1.3 | ||
Deferred gains from the termination of previous interest rate swap agreements | 1 | 1 | $ 1 | |
Fair value of unsecured debentures | 55.5 | 55.5 | 55.5 | |
Fair value of term loan | 164.4 | 164.4 | 175.2 | |
Interest Rate Swap [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate swap agreement, notional amount | 115 | 115 | ||
Interest rate swap, fair value | $ (0.4) | (0.4) | $ 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 | |||
Credit Facility [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate value of debt | $ 200 | |||
Current Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum interest rate during period | 2.00% | |||
Current Credit Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior revolving credit facility, maximum borrowing amount | $ 900 | $ 900 | ||
Credit facility expiration date | May 1, 2020 | |||
Amount of principal payment | $ 40 | |||
Outstanding borrowings | 360 | 360 | ||
Current borrowing capacity under the facility | 534.9 | 534.9 | ||
Current Credit Facility [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate value of debt | 165 | $ 165 | ||
Debt instrument, maturity date | Aug. 24, 2017 | |||
Current Credit Facility [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 5.1 | $ 5.1 | ||
Maximum [Member] | Current Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio of consolidated indebtedness to consolidated EBITDA | 3.50 | 3.50 | ||
Minimum [Member] | Current Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest coverage ratio | 3 | 3 |
Retirement and Postretirement39
Retirement and Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Special termination benefits | $ 4.5 | ||||||
Defined contribution savings plans expense | $ 4.6 | $ 4.1 | $ 12.6 | $ 11.5 | |||
Master Defined Benefit Retirement Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Service cost | 1.4 | 1.2 | 4.1 | 3.7 | |||
Interest cost | 3.7 | 3.6 | 11.1 | 10.8 | |||
Expected return on plan assets | (4.3) | (4.2) | (12.8) | (12.6) | |||
Amortization of unrecognized prior service cost, net | 0.2 | 0.2 | 0.5 | 0.5 | |||
Amortization of net loss | 1.3 | 0.8 | 4 | 2.4 | |||
Net pension expense | $ 2.3 | $ 1.6 | $ 6.9 | 4.8 | |||
Special termination benefits | 2.4 | 2.4 | |||||
Net pension expense | $ 2.3 | $ 1.6 | $ 6.9 | $ 7.2 | |||
Master Defined Benefit Retirement Plan [Member] | Scenario, Forecast [Member] | Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Non-cash settlement charge | $ (7) | ||||||
Master Defined Benefit Retirement Plan [Member] | Scenario, Forecast [Member] | Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Non-cash settlement charge | $ (10) | ||||||
Postretirement Health Care Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Special termination benefits | $ 2.1 | $ (1.3) |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Changes in AOCL by Component) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other comprehensive income (loss) | ||||
Total Other Comprehensive Income (Loss), net of tax | $ 20.3 | $ 1.2 | $ (49.1) | $ 8.1 |
Accumulated other comprehensive loss | ||||
Beginning balance | 806.5 | |||
Net activity | 20.3 | 1.2 | (49.1) | 8.1 |
Ending balance | 758.7 | 758.7 | ||
Available-for-Sale Securities and Currency Hedges [Member] | ||||
Other comprehensive income (loss) | ||||
Prior to reclassification | $ 0.2 | (0.7) | $ (0.8) | (0.6) |
Reclassification from | 0.1 | |||
Pre-tax | $ 0.2 | (0.7) | $ (0.8) | (0.5) |
Tax effect | (0.1) | 0.2 | 0.3 | 0.2 |
Total Other Comprehensive Income (Loss), net of tax | 0.1 | (0.5) | $ (0.5) | (0.3) |
Accumulated other comprehensive loss | ||||
Beginning balance | (0.6) | (0.1) | (0.3) | |
Net activity | 0.1 | (0.5) | $ (0.5) | (0.3) |
Ending balance | (0.5) | (0.6) | (0.5) | (0.6) |
Foreign Currency Translation Adjustment [Member] | ||||
Other comprehensive income (loss) | ||||
Prior to reclassification | $ 19.4 | $ 1.1 | $ (51.2) | $ 6.7 |
Reclassification from | ||||
Pre-tax | $ 19.4 | $ 1.1 | $ (51.2) | $ 6.7 |
Tax effect | ||||
Total Other Comprehensive Income (Loss), net of tax | $ 19.4 | $ 1.1 | $ (51.2) | $ 6.7 |
Accumulated other comprehensive loss | ||||
Beginning balance | (104.8) | 1 | (34.2) | (4.6) |
Net activity | 19.4 | 1.1 | (51.2) | 6.7 |
Ending balance | $ (85.4) | $ 2.1 | (85.4) | 2.1 |
Pension and Postretirement Defined Benefit Plan Items [Member] | ||||
Other comprehensive income (loss) | ||||
Prior to reclassification | 0.1 | 0.2 | ||
Reclassification from | $ 1.4 | $ 1 | 4.1 | 2.7 |
Pre-tax | 1.4 | 1 | 4.2 | 2.9 |
Tax effect | (0.6) | (0.4) | (1.6) | (1.2) |
Total Other Comprehensive Income (Loss), net of tax | 0.8 | 0.6 | 2.6 | 1.7 |
Accumulated other comprehensive loss | ||||
Beginning balance | (38.1) | (29.7) | (39.9) | (30.8) |
Net activity | 0.8 | 0.6 | 2.6 | 1.7 |
Ending balance | (37.3) | (29.1) | (37.3) | (29.1) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Other comprehensive income (loss) | ||||
Prior to reclassification | 19.6 | 0.4 | (51.9) | 6.3 |
Reclassification from | 1.4 | 1 | 4.1 | 2.8 |
Pre-tax | 21 | 1.4 | (47.8) | 9.1 |
Tax effect | (0.7) | (0.2) | (1.3) | (1) |
Total Other Comprehensive Income (Loss), net of tax | 20.3 | 1.2 | (49.1) | 8.1 |
Accumulated other comprehensive loss | ||||
Beginning balance | (143.5) | (28.8) | (74.1) | (35.7) |
Net activity | 20.3 | 1.2 | (49.1) | 8.1 |
Ending balance | $ (123.2) | $ (27.6) | $ (123.2) | $ (27.6) |
Other Comprehensive Income (S41
Other Comprehensive Income (Schedule of Items Reclassified out of AOCL) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amount reclassified | $ (28) | $ (36.3) | $ (81.6) | $ (81) | |
Tax effect | 9.3 | 10.2 | 24.7 | 45 | |
Net of tax | (19.1) | (26.1) | (57.3) | (36) | |
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] | 1.4 | 1 | 4.1 | 2.7 |
Tax effect | [1] | (0.6) | (0.4) | (1.6) | (1.1) |
Net of tax | [1] | $ 0.8 | $ 0.6 | $ 2.5 | 1.6 |
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 | |||
Tax effect | [2] | ||||
Net of tax | [2] | $ 0.1 | |||
[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) (De
Special Charges (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($)employees | Dec. 31, 2013USD ($)employees | Jun. 30, 2015USD ($)employees | Jun. 30, 2014USD ($)employees | |
Restructuring Cost and Reserve [Line Items] | |||||||
Special charge | $ 4.4 | $ 3 | $ 11.9 | $ 32.4 | |||
Reversals of previously recorded expenses | $ 0.5 | ||||||
Site Consolidation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of positions eliminated | employees | 160 | ||||||
Expected additional costs | 4 | $ 4 | |||||
Site Consolidation [Member] | Employee Termination and Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Special charge | 2 | 2 | |||||
Site Consolidation [Member] | Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Special charge | 0.2 | ||||||
Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Special charge | 3.2 | $ 20.1 | |||||
Number of positions planned to be eliminated | employees | 200 | ||||||
Aggregate special charges recognized | 34.6 | 34.6 | |||||
Global Restructuring Program [Member] | Employee Termination and Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Special charge | 0.4 | 5 | |||||
Reversals of previously recorded expenses | $ 0.5 | ||||||
Global Restructuring Program [Member] | Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Special charge | 1.8 | 5.2 | |||||
Global Restructuring Program [Member] | Minimum [Member] | Europe [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected additional costs | 8 | 8 | |||||
Global Restructuring Program [Member] | Maximum [Member] | Europe [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected additional costs | $ 13 | $ 13 | |||||
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 | employees | 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 | $ 1.6 | ||||||
Reversals of previously recorded expenses | $ 0.2 | ||||||
Batesville, Indiana Plant Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Special charge | $ 1 | ||||||
Number of positions eliminated | employees | 35 |
Special Charges (Schedule of Re
Special Charges (Schedule of Restructuring Activity) (Details) - Restructuring Plan [Domain] $ in Millions | 9 Months Ended |
Jun. 30, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 11.7 |
Expenses | 7 |
Cash Payments | (8.5) |
Reversals | (0.5) |
Ending Balance | $ 9.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | |
Effective tax rate | 33.20% | 28.10% | 30.30% | 55.60% | |
Effect of change in valuation allowance on tax expense | $ (3.5) | $ 19.6 | |||
Scenario, Forecast [Member] | |||||
Favorable impact of tax credit | $ 2 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings per Common Share [Abstract] | ||||
Net income attributable to common shareholders | $ 19.1 | $ 26.1 | $ 57.3 | $ 36 |
Average shares outstanding - Basic | 56,670 | 57,273 | 56,777 | 57,612 |
Add potential effect of exercise of stock options and other unvested equity awards | 1,229 | 887 | 1,166 | 887 |
Average shares outstanding - Diluted | 57,899 | 58,160 | 57,943 | 58,499 |
Net income attributable to common shareholders per common share - Basic | $ 0.34 | $ 0.46 | $ 1.01 | $ 0.62 |
Net income attributable to common shareholders per common share - Diluted | $ 0.33 | $ 0.45 | $ 0.99 | $ 0.61 |
Shares with anti-dilutive effect excluded from the computation of Diluted EPS | 239 | 746 | 457 | 497 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Common Stock [Abstract] | ||||
Stock based compensation cost charged against income, net of tax | $ 2.5 | $ 2.7 | $ 8.9 | $ 8.4 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 27.2 | $ 34.1 | $ 28.4 | $ 38.1 |
Provision for warranties during the period | 5.8 | $ 0.7 | 12.3 | $ 7.9 |
Warranty reserves acquired | 1.1 | 2.2 | ||
Warranty claims during the period | (4.7) | $ (5.8) | (13.5) | $ (17) |
Balance at end of period | $ 29.4 | $ 29 | $ 29.4 | $ 29 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 474.5 | $ 397.6 | $ 1,414.3 | $ 1,206.3 |
Special charge | 4.4 | 3 | 11.9 | 32.4 |
Operating profit | 31.3 | 38 | 88.9 | 87.2 |
Interest expense | $ (3.3) | (2.5) | (9.5) | (6.8) |
Investment income and other, net | 0.8 | 2.2 | 0.6 | |
Income Before Income Taxes | $ 28 | 36.3 | 81.6 | 81 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 474.5 | 397.6 | 1,414.3 | 1,206.3 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | (35.7) | (21.2) | (106.3) | (59.1) |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Special charge | 4.4 | 3 | 11.9 | 32.4 |
North America Segment [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 252.4 | 211.6 | 724.5 | 641.6 |
Operating profit | 51.3 | 40 | 142.1 | 115.5 |
Surgical and Respiratory Care Segment [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 119.7 | 66.2 | 366 | 195.1 |
Operating profit | 18.2 | 17.5 | 55.9 | 47.8 |
International [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 102.4 | 119.8 | 323.8 | 369.6 |
Operating profit | $ 1.9 | $ 4.7 | $ 9.1 | $ 15.4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Uninsured Risk [Member] $ in Thousands | Jun. 30, 2015USD ($) |
Loss Contingencies [Line Items] | |
Deductibles and self-insured retentions, minimum | $ 25 |
Deductibles and self-insured retentions, maximum | $ 1,000 |