Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Jan. 19, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | OSHKOSH CORP | |
Entity Central Index Key | 775,158 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 74,611,447 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 1,211.4 | $ 1,252 |
Cost of sales | 1,011.7 | 1,069.2 |
Gross income | 199.7 | 182.8 |
Operating expenses: | ||
Selling, general and administrative | 151 | 139.3 |
Amortization of purchased intangibles | 12.5 | 13.2 |
Total operating expenses | 163.5 | 152.5 |
Operating income | 36.2 | 30.3 |
Other income (expense): | ||
Interest expense | (14.7) | (14.6) |
Interest income | 0.8 | 0.5 |
Miscellaneous, net | 1.3 | 0 |
Income before income taxes and equity in earnings of unconsolidated affiliates | 23.6 | 16.2 |
Provision for income taxes | 5.2 | 1.7 |
Income before equity in earnings of unconsolidated affiliates | 18.4 | 14.5 |
Equity in earnings of unconsolidated affiliates | 0.8 | 0.1 |
Net income | $ 19.2 | $ 14.6 |
Earnings per share attributable to common shareholders: | ||
Basic earnings per share (in dollars per share) | $ 0.26 | $ 0.20 |
Diluted earnings per share (in dollars per share) | $ 0.26 | $ 0.19 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 19.2 | $ 14.6 |
Other comprehensive income (loss), net of tax: | ||
Employee pension and postretirement benefits | 0.8 | 0.5 |
Currency translation adjustments | (30.4) | (11.2) |
Change in fair value of derivative instruments | 0 | 0.2 |
Total other comprehensive income (loss), net of tax | (29.6) | (10.5) |
Comprehensive income (loss) | $ (10.4) | $ 4.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 369.6 | $ 321.9 |
Receivables, net | 699 | 1,021.9 |
Inventories, net | 1,208.7 | 979.8 |
Other current assets | 118.7 | 93.9 |
Total current assets | 2,396 | 2,417.5 |
Property, plant and equipment, net | 446.9 | 452.1 |
Goodwill | 991 | 1,003.5 |
Purchased intangible assets, net | 540.7 | 553.5 |
Other long-term assets | 116.4 | 87.2 |
Total assets | 4,491 | 4,513.8 |
Current liabilities: | ||
Revolving credit facilities and current maturities of long-term debt | 5 | 20 |
Accounts payable | 477.7 | 466.1 |
Customer advances | 502.8 | 471.8 |
Payroll-related obligations | 109 | 147.9 |
Other current liabilities | 243.5 | 261.8 |
Total current liabilities | 1,338 | 1,367.6 |
Long-term debt, less current maturities | 821.6 | 826.2 |
Deferred income taxes, net | 20.3 | 11.3 |
Other long-term liabilities | 330.8 | 332.2 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred Stock ($.01 par value; 2,000,000 shares authorized; none issued and outstanding) | 0 | 0 |
Common Stock ($.01 par value; 300,000,000 shares authorized; 92,101,465 shares issued) | 0.9 | 0.9 |
Additional paid-in capital | 790.1 | 782.3 |
Retained earnings | 2,180.6 | 2,177 |
Accumulated other comprehensive loss | (204.6) | (175) |
Common Stock in treasury, at cost (17,532,618 and 18,175,669 shares, respectively) | (786.7) | (808.7) |
Total shareholders’ equity | 1,980.3 | 1,976.5 |
Total liabilities and shareholders' equity | $ 4,491 | $ 4,513.8 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Sep. 30, 2016 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock, shares issued | 92,101,465 | 92,101,465 |
Common Stock in treasury, shares | 17,532,618 | 18,175,669 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury, at Cost |
Balance at Sep. 30, 2015 | $ 1,911.1 | $ 0.9 | $ 771.5 | $ 2,016.5 | $ (144.4) | $ (733.4) |
Changes in Equity | ||||||
Net income | 14.6 | 14.6 | ||||
Employee pension and postretirement benefits | 0.5 | 0.5 | ||||
Currency translation adjustments | (11.2) | (11.2) | ||||
Cash dividends | (14.1) | (14.1) | ||||
Repurchases of Common Stock | (100.1) | (100.1) | ||||
Exercise of stock options | 1.4 | 1.4 | ||||
Stock-based compensation expense | 5.3 | 5.3 | ||||
Excess tax benefit from stock-based compensation | 0.1 | 0.1 | ||||
Payment of earned performance shares | 0 | (2.6) | 2.6 | |||
Shares tendered for taxes on stock-based compensation | (1.4) | (1.4) | ||||
Derivative instruments | 0.2 | 0.2 | ||||
Balance at Dec. 31, 2015 | 1,806.4 | 0.9 | 774.3 | 2,017 | (154.9) | (830.9) |
Balance at Sep. 30, 2016 | 1,976.5 | 0.9 | 782.3 | 2,177 | (175) | (808.7) |
Changes in Equity | ||||||
Net income | 19.2 | 19.2 | ||||
Employee pension and postretirement benefits | 0.8 | 0.8 | ||||
Currency translation adjustments | (30.4) | (30.4) | ||||
Cash dividends | (15.6) | (15.6) | ||||
Exercise of stock options | 26.2 | 5.7 | 20.5 | |||
Stock-based compensation expense | 6.5 | 6.5 | ||||
Payment of earned performance shares | 0 | (1.3) | 1.3 | |||
Shares tendered for taxes on stock-based compensation | (3) | (3) | ||||
Derivative instruments | 0 | |||||
Other | 0.1 | (3.1) | 3.2 | |||
Balance at Dec. 31, 2016 | $ 1,980.3 | $ 0.9 | $ 790.1 | $ 2,180.6 | $ (204.6) | $ (786.7) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Employee pension and postretirement benefits, tax | $ 0.5 | $ 0.3 |
Cash dividends declared per share on Common Stock (in dollars per share) | $ 0.21 | $ 0.19 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | ||
Net income | $ 19.2 | $ 14.6 |
Depreciation and amortization | 32.1 | 31 |
Stock-based compensation expense | 6.5 | 5.3 |
Deferred income taxes | 8.4 | (1.6) |
Gain on sale of assets | (0.3) | (5.7) |
Foreign currency transaction (gains) losses | 0.4 | (4.1) |
Other non-cash adjustments | 0.8 | 0.9 |
Changes in operating assets and liabilities | 16.7 | 32.8 |
Net cash provided by operating activities | 83.8 | 73.2 |
Investing activities: | ||
Additions to property, plant and equipment | (14.2) | (21.3) |
Additions to equipment held for rental | (12.9) | (15) |
Proceeds from sale of equipment held for rental | 5.3 | 18.7 |
Other investing activities | (0.2) | (0.6) |
Net cash provided (used) by investing activities | (22) | (18.2) |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 0 | 153.6 |
Repayments of debt (original maturities greater than three months) | (20) | (135) |
Net increase in short-term debt | 0 | 28.2 |
Repurchases of Common Stock | (3) | (101.5) |
Dividends paid | (15.6) | (14.1) |
Proceeds from exercise of stock options | 26.2 | 1.4 |
Excess tax benefit from stock-based compensation | 0 | 0.8 |
Net cash used by financing activities | (12.4) | (66.6) |
Effect of exchange rate changes on cash | (1.7) | 2.4 |
Increase (decrease) in cash and cash equivalents | 47.7 | (9.2) |
Cash and cash equivalents at beginning of period | 321.9 | 42.9 |
Cash and cash equivalents at end of period | 369.6 | 33.7 |
Supplemental disclosures: | ||
Cash paid for interest | 6.6 | 6 |
Cash paid for income taxes | $ 22.5 | $ 26.5 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (which include normal recurring adjustments, unless otherwise noted) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. These Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K of Oshkosh Corporation for the year ended September 30, 2016 . The interim results are not necessarily indicative of results for the full year. “Oshkosh” refers to Oshkosh Corporation not including its subsidiaries and “the Company” refers to Oshkosh Corporation and its subsidiaries. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) , and the FASB has since issued several amendments to this standard, which clarifies the principles for recognizing revenue. This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard supersedes all existing U.S. GAAP guidance on revenue recognition and is expected to require the use of more judgment and result in additional disclosures. The standard becomes effective for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted one year earlier. The Company is currently evaluating the impact of ASU 2014-09 on the Company’s financial statements and has not yet determined its method of adoption. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory . ASU 2015-11 is part of the FASB’s initiative to simplify accounting standards. The guidance requires an entity to recognize inventory within the scope of the standard at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company will be required to adopt ASU 2015-11 as of October 1, 2017. The Company is currently evaluating the impact of ASU 2015-11 on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is expected to increase transparency and comparability among organizations . The standard requires lessees to reflect most leases on their balance sheet as lease liabilities with a corresponding right-of-use asset, while leaving presentation of lease expense in the statement of income largely unchanged. The standard also eliminates the real-estate specific provisions that exist under current U.S. GAAP and modifies the classification criteria and accounting lessors must apply to sales-type and direct financing leases. The standard is effective for fiscal years and interim periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-02 on the Company's financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 is part of the FASB’s initiative to simplify accounting standards. The standard requires that all tax effects of share-based payments at settlement (or expiration) be recorded in the income statement at the time the tax effects arise. The standard also clarifies that cash flows resulting from share-based payments be reported as operating activities within the statement of cash flows, permits employers to withhold shares upon settlement of an award to satisfy an employee's tax liability up to the employee's maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award and permits entities to make an accounting policy election to estimate or use actual forfeitures when recognizing the expense of share-based compensation. The Company adopted ASU 2016-09 as of October 1, 2016 following a prospective approach for the income tax and earnings per share impacts and a retrospective approach for the cash flow impacts. The adoption of ASU 2016-09 did not have a material impact on the Company's financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectibility of the related financial asset.The Company will be required to adopt ASU 2016-13 as of October 1, 2020. The Company is currently evaluating the impact of ASU 2016-13 on the Company's financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory . The standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset when the transfer occurs as opposed to when the asset is transferred to an outside party as required under current U.S. GAAP. The standard does not apply to intra-entity transfers of inventory, which will continue to follow current U.S. GAAP. The Company will be required to adopt ASU 2016-16 as of October 1, 2018. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-16 on the Company's financial statements. |
Receivables
Receivables | 3 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following (in millions): December 31, September 30, 2016 2016 U.S. government: Amounts billed $ 50.8 $ 49.0 Costs and profits not billed 65.5 55.3 116.3 104.3 Other trade receivables 545.9 881.8 Finance receivables 46.3 7.6 Notes receivable 35.1 36.1 Other receivables 33.0 38.6 776.6 1,068.4 Less allowance for doubtful accounts (20.2 ) (21.2 ) $ 756.4 $ 1,047.2 Classification of receivables in the Condensed Consolidated Balance Sheets consisted of the following (in millions): December 31, September 30, 2016 2016 Current receivables $ 699.0 $ 1,021.9 Long-term receivables (included in “Other long-term assets”) 57.4 25.3 $ 756.4 $ 1,047.2 Finance and notes receivable aging and accrual status consisted of the following (in millions): Finance Receivables Notes Receivable December 31, 2016 September 30, 2016 December 31, 2016 September 30, 2016 Aging of receivables that are past due: Greater than 30 days and less than 60 days $ — $ — $ — $ — Greater than 60 days and less than 90 days — — — — Greater than 90 days 2.6 2.9 0.2 — Receivables on nonaccrual status 4.4 4.5 23.4 25.1 Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 41.9 3.1 — — Allowance for doubtful accounts (0.7 ) (0.1 ) — — Receivables subject to specific reserves 4.4 4.5 35.1 36.1 Allowance for doubtful accounts (1.4 ) (0.9 ) (11.6 ) (13.0 ) Finance Receivables: Finance receivables represent sales-type leases resulting from the sale of the Company's products and the purchase of finance receivables from lenders pursuant to customer defaults under program agreements with finance companies. Finance receivables originated by the Company generally include a residual value component. Residual values are determined based on the expectation that the underlying equipment will have a minimum fair market value at the end of the lease term. This residual value accrues to the Company at the end of the lease. The Company uses its experience and knowledge as an original equipment manufacturer and participant in end markets for the related products along with third-party studies to estimate residual values. The Company monitors these values for impairment on a periodic basis and reflects any resulting reductions in value in current earnings. Delinquency is the primary indicator of credit quality of finance receivables. The Company maintains a general allowance for finance receivables considered doubtful of future collection based upon historical experience. Additional allowances are established based upon the Company’s perception of the quality of the finance receivables, including the length of time the receivables are past due, past experience of collectibility and underlying economic conditions. In circumstances where the Company believes collectibility is no longer reasonably assured, a specific allowance is recorded to reduce the net recognized receivable to the amount reasonably expected to be collected. Finance receivables are written off if management determines that the specific borrower does not have the ability to repay the loan amounts due in full. The terms of the finance agreements generally give the Company the ability to take possession of the underlying collateral. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers’ financial obligations is not realized. Notes Receivable: Notes receivable include amounts related to refinancing of trade accounts and finance receivables. As of December 31, 2016 , approximately 87% of the notes receivable balance outstanding was due from four parties. The Company routinely evaluates the creditworthiness of its customers and establishes reserves where the Company believes collectibility is no longer reasonably assured. Certain notes receivable are collateralized by a security interest in the underlying assets and/or other assets owned by the debtor. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers' financial obligations is not realized. Quality of Finance and Notes Receivable: The Company does not accrue interest income on finance and notes receivable in circumstances where the Company believes collectibility is no longer reasonably assured. Any cash payments received on nonaccrual finance and notes receivable are applied first to the principal balances. The Company does not resume accrual of interest income until the customer has shown that it is capable of meeting its financial obligations by making timely payments over a sustained period of time. The Company determines past due or delinquency status based upon the due date of the receivable. Receivables subject to specific reserves also include loans that the Company has modified in troubled debt restructurings as a concession to customers experiencing financial difficulty. To minimize the economic loss, the Company may modify certain finance and notes receivable. Modifications generally consist of restructured payment terms and time frames in which no payments are required. At December 31, 2016 , restructured finance and notes receivables were $3.7 million and $11.6 million , respectively. Losses on troubled debt restructurings were not significant during the three months ended December 31, 2016 and 2015 , respectively. Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions): Three Months Ended December 31, 2016 Finance Receivables Notes Receivable Trade and Other Receivables Total Allowance for doubtful accounts at beginning of period $ 1.0 $ 13.0 $ 7.2 $ 21.2 Provision for doubtful accounts, net of recoveries 1.1 (0.6 ) (0.5 ) — Charge-off of accounts — (0.1 ) (0.2 ) (0.3 ) Foreign currency translation — (0.7 ) — (0.7 ) Allowance for doubtful accounts at end of period $ 2.1 $ 11.6 $ 6.5 $ 20.2 Three Months Ended December 31, 2015 Finance Receivables Notes Receivables Trade and Other Receivables Total Allowance for doubtful accounts at beginning of period $ 0.1 $ 12.7 $ 7.5 $ 20.3 Provision for doubtful accounts, net of recoveries — 0.2 (1.1 ) (0.9 ) Charge-off of accounts — — (0.3 ) (0.3 ) Foreign currency translation — (0.3 ) — (0.3 ) Allowance for doubtful accounts at end of period $ 0.1 $ 12.6 $ 6.1 $ 18.8 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): December 31, September 30, 2016 2016 Raw materials $ 559.2 $ 481.2 Partially finished products 360.8 307.8 Finished products 379.4 286.9 Inventories at FIFO cost 1,299.4 1,075.9 Less: Progress/performance-based payments on U.S. government contracts (10.6 ) (17.8 ) Excess of FIFO cost over LIFO cost (80.1 ) (78.3 ) $ 1,208.7 $ 979.8 Title to all inventories related to U.S. government contracts, which provide for progress or performance-based payments, vests with the U.S. government to the extent of unliquidated progress or performance-based payments. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in millions): December 31, September 30, 2016 2016 Land and land improvements $ 56.6 $ 56.8 Buildings 283.1 283.4 Machinery and equipment 596.9 597.3 Software and related costs 148.9 147.4 Equipment on operating lease to others 33.5 25.7 1,119.0 1,110.6 Less accumulated depreciation (672.1 ) (658.5 ) $ 446.9 $ 452.1 Depreciation expense was $18.9 million and $17.1 million for the three months ended December 31, 2016 and 2015 , respectively. Capitalized interest was insignificant for all reported periods. Equipment on operating lease to others represents the cost of equipment shipped to customers for whom the Company has guaranteed the residual value and equipment on short-term leases. These transactions are accounted for as operating leases with the related assets capitalized and depreciated over their estimated economic lives of five to ten years. Cost less accumulated depreciation for equipment on operating lease at December 31, 2016 and September 30, 2016 was $26.3 million and $18.6 million , respectively. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill and other indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually or more frequently if potential interim indicators exist that could result in impairment. The Company performs its annual impairment test in the fourth quarter of its fiscal year. The following table presents changes in goodwill during the three months ended December 31, 2016 (in millions): Access Equipment Fire & Emergency Commercial Total Net goodwill at September 30, 2016 $ 876.6 $ 106.1 $ 20.8 $ 1,003.5 Foreign currency translation (12.5 ) — — (12.5 ) Net goodwill at December 31, 2016 $ 864.1 $ 106.1 $ 20.8 $ 991.0 The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions): December 31, 2016 September 30, 2016 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access equipment $ 1,796.2 $ (932.1 ) $ 864.1 $ 1,808.7 $ (932.1 ) $ 876.6 Fire & emergency 108.1 (2.0 ) 106.1 108.1 (2.0 ) 106.1 Commercial 196.7 (175.9 ) 20.8 196.7 (175.9 ) 20.8 $ 2,101.0 $ (1,110.0 ) $ 991.0 $ 2,113.5 $ (1,110.0 ) $ 1,003.5 Details of the Company’s total purchased intangible assets are as follows (in millions): December 31, 2016 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (28.4 ) $ 27.0 Non-compete 10.5 56.4 (56.4 ) — Technology-related 11.9 104.7 (93.6 ) 11.1 Customer relationships 12.8 545.6 (432.4 ) 113.2 Other 16.2 16.3 (14.6 ) 1.7 14.5 778.4 (625.4 ) 153.0 Non-amortizable trade names 387.7 — 387.7 $ 1,166.1 $ (625.4 ) $ 540.7 September 30, 2016 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (28.0 ) $ 27.4 Non-compete 10.5 56.4 (56.4 ) — Technology-related 11.9 104.7 (91.5 ) 13.2 Customer relationships 12.8 550.8 (427.4 ) 123.4 Other 16.3 16.5 (14.7 ) 1.8 14.5 783.8 (618.0 ) 165.8 Non-amortizable trade names 387.7 — 387.7 $ 1,171.5 $ (618.0 ) $ 553.5 The estimated future amortization expense of purchased intangible assets for the remainder of fiscal 2017 and the five years succeeding September 30, 2017 are as follows: 2017 (remaining nine months) - $33.3 million ; 2018 - $38.3 million ; 2019 - $36.9 million ; 2020 - $11.0 million ; 2021 - $5.3 million and 2022 - $4.9 million . |
Credit Agreements
Credit Agreements | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreements The Company was obligated under the following debt instruments (in millions): December 31, 2016 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 335.0 $ (1.3 ) $ 333.7 5.375% Senior Notes due March 2022 250.0 (4.1 ) 245.9 5.375% Senior Notes due March 2025 250.0 (3.0 ) 247.0 $ 835.0 $ (8.4 ) 826.6 Less current maturities (5.0 ) $ 821.6 Revolving Credit Facility $ — Current maturities of long-term debt 5.0 $ 5.0 September 30, 2016 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 355.0 $ (1.4 ) $ 353.6 5.375% Senior Notes due March 2022 250.0 (4.3 ) 245.7 5.375% Senior Notes due March 2025 250.0 (3.1 ) 246.9 $ 855.0 $ (8.8 ) 846.2 Less current maturities (20.0 ) $ 826.2 Revolving Credit Facility $ — Current maturities of long-term debt 20.0 $ 20.0 In March 2014, the Company entered into an Amended and Restated Credit Agreement with various lenders (the “Credit Agreement”). The Credit Agreement provides for (i) a revolving credit facility (Revolving Credit Facility) that matures in March 2019 with an initial maximum aggregate amount of availability of $600 million and (ii) a $400 million term loan (Term Loan) due in quarterly principal installments of $5 million with a balloon payment of $310 million due at maturity in March 2019. In January 2015, the Company entered into an agreement with lenders under the Credit Agreement that increased the Revolving Credit Facility to an aggregate maximum amount of $850 million . At December 31, 2016 , there was no outstanding balance under the Revolving Credit Facility. Outstanding letters of credit of $99.8 million reduced available capacity under the Revolving Credit Facility to $750.2 million . The Company’s obligations under the Credit Agreement are guaranteed by certain of its domestic subsidiaries, and the Company will guarantee the obligations of certain of its subsidiaries under the Credit Agreement. Subject to certain exceptions, the Credit Agreement is collateralized by (i) a first-priority perfected lien and security interests in substantially all of the personal property of the Company, each material subsidiary of the Company and each subsidiary guarantor, (ii) mortgages upon certain real property of the Company and certain of its domestic subsidiaries and (iii) a pledge of the equity of each material subsidiary of the Company. Under the Credit Agreement, the Company must pay (i) an unused commitment fee ranging from 0.225% to 0.35% per annum of the average daily unused portion of the aggregate revolving credit commitments under the Credit Agreement and (ii) a fee ranging from 0.625% to 2.00% per annum of the maximum amount available to be drawn for each letter of credit issued and outstanding under the Credit Agreement. Borrowings under the Credit Agreement bear interest at a variable rate equal to (i) LIBOR plus a specified margin , which may be adjusted upward or downward depending on whether certain criteria are satisfied, or (ii) for dollar-denominated loans only, the base rate (which is the highest of (a) the administrative agent’s prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR ) plus a specified margin, which may be adjusted upward or downward depending on whether certain criteria are satisfied. At December 31, 2016 , the interest spread on the Revolving Credit Facility and Term Loan was 150 basis points . The weighted-average interest rate on borrowings outstanding under the Term Loan was 2.27% at December 31, 2016 . The Credit Agreement contains various restrictions and covenants, including requirements that the Company maintain certain financial ratios at prescribed levels and restrictions, subject to certain exceptions, on the ability of the Company and certain of its subsidiaries to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, consummate acquisitions and make investments in joint ventures and foreign subsidiaries. The Credit Agreement contains the following financial covenants: • Leverage Ratio: A maximum leverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated indebtedness to consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and certain other items (EBITDA)) as of the last day of any fiscal quarter of 4.50 to 1.00 . • Interest Coverage Ratio: A minimum interest coverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated EBITDA to the Company’s consolidated cash interest expense) as of the last day of any fiscal quarter of 2.50 to 1.00 . • Senior Secured Leverage Ratio: A maximum senior secured leverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated secured indebtedness to the Company’s consolidated EBITDA) of 3.00 to 1.00 . With certain exceptions, the Company may elect to have the collateral pledged in connection with the Credit Agreement released during any period that the Company maintains an investment grade corporate family rating from either Standard & Poor’s Ratings Group or Moody’s Investor Service Inc. During any such period when the collateral has been released, the Company’s leverage ratio as of the last day of any fiscal quarter must not be greater than 3.75 to 1.00 , and the Company would not be subject to any additional requirement to limit its senior secured leverage ratio. The Company was in compliance with the financial covenants contained in the Credit Agreement as of December 31, 2016 . Additionally, with certain exceptions, the Credit Agreement limits the ability of the Company to pay dividends and other distributions, including repurchases of shares of its Common Stock. However, so long as no event of default exists under the Credit Agreement or would result from such payment, the Company may pay dividends and other distributions after March 3, 2010 in an aggregate amount not exceeding the sum of: i. 50% of the consolidated net income of the Company and its subsidiaries (or if such consolidated net income is a deficit, minus 100% of such deficit), accrued on a cumulative basis during the period beginning on January 1, 2010 and ending on the last day of the fiscal quarter immediately preceding the date of the applicable proposed dividend or distribution; and ii. 100% of the aggregate net proceeds received by the Company subsequent to March 3, 2010 either as a contribution to its common equity capital or from the issuance and sale of its Common Stock. In February 2014, the Company issued $250.0 million of 5.375% unsecured senior notes due March 1, 2022 (the “2022 Senior Notes”). In March 2015, the Company issued $250.0 million of 5.375% unsecured senior notes due March 1, 2025 (the “2025 Senior Notes”). The net proceeds of both note issuances were used to repay existing outstanding notes of the Company. The Company has the option to redeem the 2022 Senior Notes and the 2025 Senior Notes for a premium after March 1, 2017 and March 1, 2020, respectively. The 2022 Senior Notes and the 2025 Senior Notes were issued pursuant to separate indentures (the “Indentures”) among the Company, the subsidiary guarantors named therein and a trustee. The Indentures contain customary affirmative and negative covenants. Certain of the Company’s subsidiaries jointly, severally, fully and unconditionally guarantee the Company’s obligations under the 2022 Senior Notes and 2025 Senior Notes. See Note 21 of the Notes to Condensed Consolidated Financial Statements for separate financial information of the subsidiary guarantors. The fair value of the long-term debt is estimated based upon Level 2 inputs to reflect market rate of the Company’s debt. At December 31, 2016 , the fair value of the 2022 Senior Notes and the 2025 Senior Notes was estimated to be $260 million ( $262 million at September 30, 2016 ) and $254 million ( $263 million at September 30, 2016 ), respectively. The fair value of the Term Loan approximated book value at both December 31, 2016 and September 30, 2016 . See Note 12 of the Notes to Condensed Consolidated Financial Statements for the definition of a Level 2 input. |
Warranties
Warranties | 3 Months Ended |
Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Warranties The Company’s products generally carry explicit warranties that extend from six months to five years, based on terms that are generally accepted in the marketplace. Selected components (such as engines, transmissions, tires, etc.) included in the Company’s end products may include manufacturers’ warranties. These manufacturers’ warranties are generally passed on to the end customer of the Company’s products, and the customer would generally deal directly with the component manufacturer. Accrued warranty is reported in “Other current liabilities” in the Condensed Consolidated Balance Sheets. The Company offers a variety of extended warranty programs. The premiums received for an extended warranty are generally deferred until after the expiration of the standard warranty period. The unearned premium is then recognized in income over the term of the extended warranty period in proportion to the costs that are expected to be incurred. Unamortized extended warranty premiums included in the following table totaled $29.4 million and $27.3 million at December 31, 2016 and 2015 , respectively, and are included in the Condensed Consolidated Balance Sheets as “Other current liabilities” or “Other long-term liabilities”. Changes in the Company’s warranty liability and unearned extended warranty premiums were as follows (in millions): Three Months Ended 2016 2015 Balance at beginning of period $ 89.6 $ 92.1 Warranty provisions 10.7 10.0 Settlements made (11.9 ) (13.9 ) Changes in liability for pre-existing warranties, net (1.1 ) (0.6 ) Premiums received 2.8 2.6 Amortization of premiums received (2.9 ) (2.6 ) Foreign currency translation (1.0 ) (0.5 ) Balance at end of period $ 86.2 $ 87.1 Provisions for estimated warranty and other related costs are recorded at the time of sale and are periodically adjusted to reflect actual experience. Certain warranty and other related claims involve matters of dispute that ultimately are resolved by negotiation, arbitration or litigation. At times, warranty issues arise that are beyond the scope of the Company's historical experience. It is reasonably possible that additional warranty and other related claims could arise from disputes or other matters in excess of amounts accrued; however, the Company does not expect that any such amounts, while not determinable, would have a material effect on the Company's consolidated financial condition, results of operations or cash flows. |
Guarantee Arrangements
Guarantee Arrangements | 3 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Guarantee Arrangements | Guarantee Arrangements The Company is party to multiple agreements whereby at December 31, 2016 it guaranteed an aggregate of $582.5 million in indebtedness of customers. The Company estimated that its maximum loss exposure under these contracts at December 31, 2016 was $117.0 million . Under the terms of these and various related agreements and upon the occurrence of certain events, the Company generally has the ability to, among other things, take possession of the underlying collateral. If the financial condition of the customers were to deteriorate and result in their inability to make payments, then loss provisions in excess of amounts provided for at inception may be required. While the Company does not expect to experience losses under these agreements that are materially in excess of the amounts reserved, it cannot provide any assurance that the financial condition of the third parties will not deteriorate resulting in the third parties ’ inability to meet their obligations. In the event that this occurs, the Company cannot guarantee that the collateral underlying the agreements will be sufficient to avoid losses materially in excess of the amounts reserved. Any losses under these guarantees would generally be mitigated by the value of any underlying collateral, including financed equipment, and are generally subject to the finance company's ability to provide the Company clear title to foreclosed equipment and other conditions. During periods of economic weakness, collateral values generally decline and can contribute to higher exposure to losses. Changes in the Company’s credit guarantee liability were as follows (in millions): Three Months Ended 2016 2015 Balance at beginning of period $ 8.4 $ 5.6 Provision for new credit guarantees 0.6 0.8 Changes for pre-existing guarantees, net 0.1 0.3 Amortization of previous guarantees (0.5 ) (0.9 ) Foreign currency translation (0.1 ) — Balance at end of period $ 8.5 $ 5.8 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity On August 31, 2015, the Company's Board of Directors increased the Company's Common Stock repurchase authorization by 10,000,000 shares, increasing the repurchase authorization to 10,299,198 shares from the balance remaining from prior authorizations. Between August 31, 2015 and December 31, 2015, the Company repurchased 2,786,624 shares under this authorization at a cost of $112.0 million . As a result, the Company had 7,512,574 shares of Common Stock remaining under this repurchase authorization as of December 31, 2016 . The Company did not repurchase any shares under this authorization during the three months ended December 31, 2016 . The Company is restricted by its Credit Agreement from repurchasing shares in certain situations. See Note 7 of the Notes to Condensed Consolidated Financial Statements for information regarding these restrictions. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company has used forward foreign currency exchange contracts (derivatives) to reduce the exchange rate risk of specific foreign currency denominated transactions. These derivatives typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date. At times, the Company has designated these hedges as either cash flow hedges or fair value hedges under FASB Accounting Standards Codification (ASC) Topic 815, Derivatives and Hedging. At December 31, 2016 , the total notional U.S. dollar equivalent of outstanding forward foreign exchange contracts designated as hedges in accordance with ASC Topic 815 was $6.0 million . Net gains or losses related to hedge ineffectiveness were insignificant for the three month periods ended December 31, 2016 and 2015 . Ineffectiveness is included in “Miscellaneous, net” in the Condensed Consolidated Statements of Income along with mark-to market adjustments on outstanding non-designated derivatives. The maximum length of time the Company is hedging its exposure to the variability in future cash flows is eighteen months. The Company has entered into forward foreign currency exchange contracts to create an economic hedge to manage foreign exchange risk exposure associated with non-functional currency denominated payables resulting from global sourcing activities. The Company has not designated these derivative contracts as hedge transactions under FASB ASC Topic 815, and accordingly, the mark-to-market impact of these derivatives is recorded each period in current earnings. At December 31, 2016 , the U.S. dollar equivalent of these outstanding forward foreign exchange contracts totaled $81.4 million in notional amounts covering a variety of foreign currencies. The Company has entered into interest rate contracts to create an economic hedge to manage changes in interest rates on executory sales contracts that exposes the Company to interest rate risk based on changes in market interest rates. The Company has not designated these interest rate contracts as hedge transactions under FASB ASC Topic 815, and accordingly, the mark-to-market impact of these derivatives is recorded each period in current earnings. At December 31, 2016 , the U.S. dollar equivalent notional amount of these outstanding interest rate contracts totaled $19.8 million . Fair Market Value of Financial Instruments — The fair values of all open derivative instruments were as follows (in millions): December 31, 2016 September 30, 2016 Other Current Assets Other Current Liabilities Other Current Assets Other Current Liabilities Cash flow hedges: Foreign exchange contracts $ 0.1 $ — $ — $ — Not designated as hedging instruments: Foreign exchange contracts 1.4 0.2 0.1 0.4 Interest rate contracts 0.5 1.2 — 0.4 $ 2.0 $ 1.4 $ 0.1 $ 0.8 The pre-tax effects of derivative instruments consisted of the following (in millions): Classification of Gains (Losses) Three Months Ended 2016 2015 Cash flow hedges: Foreign exchange contracts Cost of sales $ 0.1 $ — Not designated as hedging instruments: Foreign exchange contracts Miscellaneous, net 2.7 (1.3 ) Interest rate contracts Miscellaneous, net 0.4 (0.1 ) $ 3.2 $ (1.4 ) |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement FASB ASC Topic 820, Fair Value Measurements and Disclosures , defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than quoted prices in active markets for identical assets or liabilities, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3: Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. There were no transfers of assets between levels during the three months ended December 31, 2016 . The fair values of the Company’s financial assets and liabilities were as follows (in millions): Level 1 Level 2 Level 3 Total December 31, 2016 Assets: SERP plan assets (a) $ 21.6 $ — $ — $ 21.6 Foreign currency exchange derivatives (b) — 1.5 — 1.5 Interest rate contracts (c) — 0.5 — 0.5 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.2 $ — $ 0.2 Interest rate contracts (c) — 1.2 — 1.2 September 30, 2016 Assets: SERP plan assets (a) $ 21.7 $ — $ — $ 21.7 Foreign currency exchange derivatives (b) — 0.1 — 0.1 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.4 $ — $ 0.4 Interest rate contracts (c) — 0.4 — 0.4 _________________________ (a) Represents investments in a rabbi trust for the Company's non-qualified supplemental executive retirement plan (SERP). The fair values of these investments are determined using a market approach. Investments include mutual funds for which quoted prices in active markets are available. The Company records changes in the fair value of investments in “Miscellaneous, net” in the Condensed Consolidated Statements of Income. (b) Based on observable market transactions of forward currency prices. (c) Based on observable market transactions of interest rate swap prices. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In February 2009, the Company’s shareholders approved the 2009 Incentive Stock and Awards Plan (as amended, the “2009 Stock Plan”). The 2009 Stock Plan replaced the 2004 Incentive Stock and Awards Plan (as amended, the “2004 Stock Plan”). While no new awards will be granted under the 2004 Stock Plan, awards previously made under the 2004 Stock Plan that were outstanding as of the initial approval date of the 2009 Stock Plan will remain outstanding and continue to be governed by the provisions of the 2004 Stock Plan. At December 31, 2016 , the Company had reserved 4,469,445 shares of Common Stock available for issuance under the 2009 Stock Plan to provide for the exercise of outstanding stock options and the issuance of Common Stock under incentive compensation awards, including awards issued prior to the effective date of the 2009 Stock Plan. The Company recognizes stock-based compensation expense over the requisite service period for vesting of an award, or to an employee's eligible retirement date, if earlier and applicable. Total stock-based compensation expense, including cash-based liability awards, for the three months ended December 31, 2016 and 2015 was $7.9 million ( $5.0 million net of tax) and $6.0 million ( $3.8 million net of tax), respectively. |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges On September 21, 2016, the Company committed to transition its access equipment aftermarket parts distribution network to a third party logistics company. Concurrent with this decision, the Company's access equipment segment committed to cease operations at its Orrville, Ohio parts distribution center by August 1, 2017. This initiative is intended to improve customer service levels, increase operational efficiency and allow the Company to reallocate resources to invest in future growth. With the Company's announced intent to outsource its aftermarket parts distribution to a third party, the Company abandoned an information system which was developed to support aftermarket parts distribution and recognized a pre-tax impairment charge of $26.9 million in the fourth quarter of fiscal 2016. The Company expects to incur cash charges related to severance costs and other employment-related benefits of approximately $3.0 million related to this decision, of which $0.7 million were incurred in the three months ended December 31, 2016. The commercial segment recognized $0.4 million of restructuring costs for the three months ended December 31, 2016. The costs incurred were associated with a reduction in workforce that is expected to better align its cost structure for long term success. Pre-tax restructuring charges for the three months ended December 31, 2016 were as follows (in millions): Cost of Sales Selling, General and Administrative Expenses Total Access equipment $ 0.7 $ — $ 0.7 Commercial — 0.4 0.4 Total $ 0.7 $ 0.4 $ 1.1 Changes in the Company's restructuring reserves, included within "Other current liabilities" in the Condensed Consolidated Balance Sheets, were as follows (in millions): Employee Severance and Termination Benefits Balance at September 30, 2016 $ 0.9 Restructuring provision 1.1 Utilized - cash (0.3 ) Balance as of December 31, 2016 $ 1.7 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Components of net periodic pension benefit cost were as follows (in millions): Three Months Ended 2016 2015 Components of net periodic benefit cost Service cost $ 3.3 $ 2.9 Interest cost 4.4 4.6 Expected return on plan assets (4.5 ) (4.5 ) Amortization of prior service cost 0.4 0.4 Amortization of net actuarial loss 1.0 0.6 Net periodic benefit cost $ 4.6 $ 4.0 Components of net periodic other post-employment benefit cost were as follows (in millions): Three Months Ended 2016 2015 Components of net periodic benefit cost Service cost $ 0.6 $ 0.3 Interest cost 0.4 0.4 Amortization of prior service cost (0.2 ) (0.2 ) Amortization of net actuarial loss 0.1 — Net periodic benefit cost $ 0.9 $ 0.5 The Company made contributions to fund benefit payments under its other post-employment benefit plans of $0.5 million for each of the three months ended December 31, 2016 and 2015 , respectively. The Company estimates that it will make additional contributions of approximately $1.6 million under these other post-employment benefit plans prior to the end of fiscal 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $5.2 million for the three months ended December 31, 2016 , or 21.8% of pre-tax income, compared to $1.7 million , or 10.6% of pre-tax income, for the three months ended December 31, 2015 . Results for the three months ended December 31, 2016 were favorably impacted by $2.8 million of discrete tax benefits, including $2.1 million of tax benefits related to the release of valuation allowances on deferred tax assets for state net operating losses and $0.7 million related to the release of valuation allowances on deferred taxes on federal capital loss carryforwards. Results for the three months ended December 31, 2015 were favorably impacted by $3.7 million of discrete tax benefits, including $2.4 million related to the retroactive reinstatement of the U.S. research and development tax credit and $1.3 million related to reduction in reserves for uncertain tax benefits, largely related to interest. The Company’s liability for gross unrecognized tax benefits, excluding related interest and penalties, was $38.6 million and $37.4 million as of December 31, 2016 and September 30, 2016 , respectively. As of December 31, 2016 , net unrecognized tax benefits, excluding interest and penalties, of $19.9 million would affect the Company’s net income if recognized. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in the “Provision for income taxes” in the Condensed Consolidated Statements of Income. During the three months ended December 31, 2016 and 2015 , the Company recognized costs of $0.4 million and benefits of $0.8 million , respectively, related to interest and penalties. At December 31, 2016 , the Company had accruals for the payment of interest and penalties of $10.4 million . During the next twelve months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce net unrecognized tax benefits by approximately $2.8 million because the Company’s tax positions are sustained on audit, the Company agrees to their disallowance or the statutes of limitations close. The Company files federal income tax returns as well as multiple state, local and non-U.S. jurisdiction tax returns. The Company is regularly audited by federal, state and foreign tax authorities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows (in millions): Three Months Ended December 31, 2016 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (73.9 ) $ (101.1 ) $ (175.0 ) Other comprehensive income (loss) before reclassifications — (30.4 ) (30.4 ) Amounts reclassified from accumulated other comprehensive income 0.8 — 0.8 Net current period other comprehensive income (loss) 0.8 (30.4 ) (29.6 ) Balance at end of period $ (73.1 ) $ (131.5 ) $ (204.6 ) Three Months Ended December 31, 2015 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (46.4 ) $ (98.1 ) $ 0.1 $ (144.4 ) Other comprehensive income (loss) before reclassifications — (11.2 ) 0.2 (11.0 ) Amounts reclassified from accumulated other comprehensive income 0.5 — — 0.5 Net current period other comprehensive income (loss) 0.5 (11.2 ) 0.2 (10.5 ) Balance at end of period $ (45.9 ) $ (109.3 ) $ 0.3 $ (154.9 ) Reclassifications out of accumulated other comprehensive income (loss) included in the computation of net periodic pension and postretirement benefit cost (refer to Note 15 of the Notes to Condensed Consolidated Financial Statements for additional details regarding employee benefit plans) were as follows (in millions): Three Months Ended 2016 2015 Amortization of employee pension and postretirement benefits items Prior service costs $ (0.2 ) $ (0.2 ) Actuarial losses (1.1 ) (0.6 ) Total before tax (1.3 ) (0.8 ) Tax benefit 0.5 0.3 Net of tax $ (0.8 ) $ (0.5 ) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The calculation of basic and diluted earnings per common share was as follows (in millions, except number of share amounts): Three Months Ended 2016 2015 Earnings available to common shareholders $ 19.2 $ 14.6 Basic Earnings Per Share: Weighted-average common shares outstanding 74,280,377 74,063,418 Diluted Earnings Per Share: Basic weighted-average common shares outstanding 74,280,377 74,063,418 Dilutive stock options and other equity-based compensation awards 1,104,540 789,798 Diluted weighted-average common shares outstanding 75,384,917 74,853,216 Options not included in the computation of diluted earnings per share attributable to common shareholders because they would have been anti-dilutive were as follows: Three Months Ended 2016 2015 Stock options 393,975 1,697,145 |
Contingencies, Significant Esti
Contingencies, Significant Estimates and Concentrations | 3 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Significant Estimates and Concentrations | Contingencies, Significant Estimates and Concentrations Personal Injury Actions and Other - Product and general liability claims are made against the Company from time to time in the ordinary course of business. The Company is generally self-insured for future claims up to $5.0 million per claim. Accordingly, a reserve is maintained for the estimated costs of such claims. At December 31, 2016 and September 30, 2016 , the estimated net liabilities for product and general liability claims totaled $35.2 million and $38.3 million , respectively. There is inherent uncertainty as to the eventual resolution of unsettled claims. Management, however, believes that any losses in excess of established reserves will not have a material effect on the Company’s financial condition, results of operations or cash flows. Market Risks - The Company was contingently liable under bid, performance and specialty bonds totaling $504.9 million and $503.6 million at December 31, 2016 and September 30, 2016 , respectively. Open standby letters of credit issued by the Company’s banks in favor of third parties totaled $99.8 million and $110.8 million at December 31, 2016 and September 30, 2016 , respectively. Other Matters - The Company is subject to environmental matters and legal proceedings and claims, including patent, antitrust, product liability, warranty and state dealership regulation compliance proceedings, that arise in the ordinary course of business. Although the final results of all such matters and claims cannot be predicted with certainty, management believes that the ultimate resolution of all such matters and claims will not have a material effect on the Company’s financial condition, results of operations or cash flows. Actual results could vary, among other things, due to the uncertainties involved in litigation. Major contracts for military systems are performed over extended periods of time and are subject to changes in scope of work and delivery schedules. Pricing negotiations on changes and settlement of claims often extend over prolonged periods of time. The Company’s ultimate profitability on such contracts may depend on the eventual outcome of an equitable settlement of contractual issues with the Company’s customers. The Company was one of several bidders on a large, multi-year military truck solicitation for the Canadian government. The Company's bid was not selected and the Company subsequently submitted a legal challenge of that conclusion. In May 2016 the Canadian International Trade Tribunal ruled in the Company's favor in connection with that challenge. At this time, the Company is unable to estimate the ultimate impact of this challenge and subsequent ruling in the Company's favor. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company is organized into four reportable segments based on the internal organization used by management for making operating decisions and measuring performance and based on the similarity of customers served, common management, common use of facilities and economic results attained. In accordance with FASB ASC Topic 280, Segment Reporting , for purposes of business segment performance measurement, the Company does not allocate to individual business segments costs or items that are of a non-operating nature or organizational or functional expenses of a corporate nature. The caption “Corporate” includes corporate office expenses, share-based compensation, costs of certain business initiatives and shared services or operations benefiting multiple segments, including start-up costs related to a shared manufacturing facility in Mexico, and results of insignificant operations. Identifiable assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, certain property, plant and equipment, and certain other assets pertaining to corporate activities. Intersegment sales generally include amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed and agreed-upon pricing, which is intended to be reflective of the contribution made by the supplying business segment. Selected financial information concerning the Company’s reportable segments and product lines is as follows (in millions): Three Months Ended December 31, 2016 2015 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 233.7 $ — $ 233.7 $ 242.0 $ — $ 242.0 Telehandlers 93.3 — 93.3 111.8 — 111.8 Other 162.2 — 162.2 176.0 — 176.0 Total access equipment 489.2 — 489.2 529.8 — 529.8 Defense 294.2 0.3 294.5 316.9 1.1 318.0 Fire & emergency 229.1 3.4 232.5 205.4 2.1 207.5 Commercial Concrete placement 84.4 — 84.4 72.3 — 72.3 Refuse collection 92.2 — 92.2 99.0 — 99.0 Other 21.5 1.1 22.6 28.6 0.4 29.0 Total commercial 198.1 1.1 199.2 199.9 0.4 200.3 Corporate and intersegment eliminations 0.8 (4.8 ) (4.0 ) — (3.6 ) (3.6 ) Consolidated $ 1,211.4 $ — $ 1,211.4 $ 1,252.0 $ — $ 1,252.0 Three Months Ended 2016 2015 Operating income (loss): Access equipment $ 24.4 $ 20.4 Defense 23.8 23.2 Fire & emergency 17.0 10.1 Commercial 4.6 8.9 Corporate (33.6 ) (32.3 ) Intersegment eliminations — — Consolidated 36.2 30.3 Interest expense, net of interest income (13.9 ) (14.1 ) Miscellaneous other income 1.3 — Income before income taxes and equity in earnings of unconsolidated affiliates $ 23.6 $ 16.2 December 31, September 30, 2016 2016 Identifiable assets: Access equipment: U.S. $ 1,783.6 $ 1,856.0 Europe (a) 483.7 521.5 Rest of the World 196.0 193.7 Total access equipment 2,463.3 2,571.2 Defense: U.S. 568.5 522.2 Rest of the World 2.6 3.0 Total defense 571.1 525.2 Fire & emergency - U.S. 518.5 522.7 Commercial: U.S. 355.1 358.4 Rest of the World (a) 31.3 33.4 Total commercial 386.4 391.8 Corporate: U.S. (b) 457.1 408.3 Rest of the world (c) 94.6 94.6 Total corporate 551.7 502.9 Consolidated $ 4,491.0 $ 4,513.8 _________________________ (a) Includes investments in unconsolidated affiliates. (b) Primarily includes cash and short-term investments. (c) Includes a corporate-led manufacturing facility that supports multiple operating segments. The following table presents net sales by geographic region based on product shipment destination (in millions): Three Months Ended December 31, 2016 2015 Net sales: United States $ 1,018.3 $ 904.4 Other North America 35.7 61.5 Europe, Africa and Middle East 71.6 200.1 Rest of the World 85.8 86.0 Consolidated $ 1,211.4 $ 1,252.0 |
Separate Financial Information
Separate Financial Information of Subsidiary Guarantors of Indebtedness | 3 Months Ended |
Dec. 31, 2016 | |
Separate Financial Information of Subsidiary Guarantors of Indebtedness Disclosure Abstract | |
Separate Financial Information of Subsidiary Guarantors of Indebtedness | Separate Financial Information of Subsidiary Guarantors of Indebtedness The 2022 Senior Notes and the 2025 Senior Notes are jointly, severally, fully and unconditionally guaranteed on a senior unsecured basis by all of the Company’s 100% owned existing and future subsidiaries that from time to time guarantee obligations under the Credit Agreement, with certain exceptions (the “Guarantors”). Under the Indentures governing the 2022 Senior Notes and 2025 Senior Notes, a Guarantor’s guarantee of such Senior Notes will be automatically and unconditionally released and will terminate upon the following customary circumstances: (i) the sale of such Guarantor or substantially all of the assets of such Guarantor if such sale complies with the indentures; (ii) if such Guarantor no longer guarantees certain other indebtedness of the Company; or (iii) the defeasance or satisfaction and discharge of the indentures. The following condensed supplemental consolidating financial information reflects the summarized financial information of Oshkosh Corporation, the Guarantors on a combined basis and Oshkosh Corporation’s non-guarantor subsidiaries on a combined basis (in millions): Condensed Consolidating Statement of Income and Comprehensive Income For the Three Months Ended December 31, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,049.8 $ 202.9 $ (41.3 ) $ 1,211.4 Cost of sales (0.8 ) 874.5 179.5 (41.5 ) 1,011.7 Gross income 0.8 175.3 23.4 0.2 199.7 Selling, general and administrative expenses 31.6 91.5 27.9 — 151.0 Amortization of purchased intangibles — 9.6 2.9 — 12.5 Operating income (loss) (30.8 ) 74.2 (7.4 ) 0.2 36.2 Interest expense (13.6 ) (13.6 ) (0.5 ) 13.0 (14.7 ) Interest income 0.7 4.1 9.0 (13.0 ) 0.8 Miscellaneous, net 22.5 (52.2 ) 31.0 — 1.3 Income (loss) before income taxes (21.2 ) 12.5 32.1 0.2 23.6 Provision for (benefit from) income taxes (5.1 ) 3.0 7.2 0.1 5.2 Income (loss) before equity in earnings of affiliates (16.1 ) 9.5 24.9 0.1 18.4 Equity in earnings of consolidated subsidiaries 35.3 15.7 (10.7 ) (40.3 ) — Equity in earnings of unconsolidated affiliates — — 0.8 — 0.8 Net income 19.2 25.2 15.0 (40.2 ) 19.2 Other comprehensive income (loss), net of tax (29.6 ) (0.9 ) (29.2 ) 30.1 (29.6 ) Comprehensive income (loss) $ (10.4 ) $ 24.3 $ (14.2 ) $ (10.1 ) $ (10.4 ) Condensed Consolidating Statement of Income and Comprehensive Income For the Three Months Ended December 31, 2015 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,056.8 $ 220.4 $ (25.2 ) $ 1,252.0 Cost of sales 0.3 899.0 195.1 (25.2 ) 1,069.2 Gross income (loss) (0.3 ) 157.8 25.3 — 182.8 Selling, general and administrative expenses 23.6 89.3 26.4 — 139.3 Amortization of purchased intangibles — 9.8 3.4 — 13.2 Operating income (loss) (23.9 ) 58.7 (4.5 ) — 30.3 Interest expense (59.6 ) (14.7 ) (0.7 ) 60.4 (14.6 ) Interest income 0.5 16.2 44.2 (60.4 ) 0.5 Miscellaneous, net 14.9 (41.4 ) 26.5 — — Income (loss) before income taxes (68.1 ) 18.8 65.5 — 16.2 Provision for (benefit from) income taxes (5.8 ) 1.6 5.9 — 1.7 Income (loss) before equity in earnings of affiliates (62.3 ) 17.2 59.6 — 14.5 Equity in earnings of consolidated subsidiaries 77.2 18.1 (6.4 ) (88.9 ) — Equity in earnings of unconsolidated affiliates (0.3 ) — 0.4 — 0.1 Net income 14.6 35.3 53.6 (88.9 ) 14.6 Other comprehensive income (loss), net of tax (10.5 ) (2.9 ) (8.1 ) 11.0 (10.5 ) Comprehensive income (loss) $ 4.1 $ 32.4 $ 45.5 $ (77.9 ) $ 4.1 Condensed Consolidating Balance Sheet As of December 31, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 323.5 $ 4.5 $ 41.6 $ — $ 369.6 Receivables, net 18.7 539.2 174.1 (33.0 ) 699.0 Inventories, net — 845.5 363.2 — 1,208.7 Other current assets 53.4 58.6 6.7 — 118.7 Total current assets 395.6 1,447.8 585.6 (33.0 ) 2,396.0 Investment in and advances to consolidated subsidiaries 2,746.1 1,274.4 (112.8 ) (3,907.7 ) — Intercompany receivables 47.9 231.9 1,887.4 (2,167.2 ) — Intangible assets, net — 936.5 595.2 — 1,531.7 Other long-term assets 83.9 228.5 250.9 — 563.3 Total assets $ 3,273.5 $ 4,119.1 $ 3,206.3 $ (6,107.9 ) $ 4,491.0 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 12.4 $ 378.5 $ 119.5 $ (32.7 ) $ 477.7 Customer advances — 495.9 6.9 — 502.8 Other current liabilities 61.8 211.4 84.6 (0.3 ) 357.5 Total current liabilities 74.2 1,085.8 211.0 (33.0 ) 1,338.0 Long-term debt, less current maturities 821.6 — — — 821.6 Intercompany payables 325.8 1,793.5 47.9 (2,167.2 ) — Other long-term liabilities 71.6 154.3 125.2 — 351.1 Total shareholders' equity 1,980.3 1,085.5 2,822.2 (3,907.7 ) 1,980.3 Total liabilities and shareholders' equity $ 3,273.5 $ 4,119.1 $ 3,206.3 $ (6,107.9 ) $ 4,491.0 Condensed Consolidating Balance Sheet As of September 30, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 285.4 $ 1.7 $ 34.8 $ — $ 321.9 Receivables, net 13.0 734.3 319.6 (45.0 ) 1,021.9 Inventories, net — 679.1 300.7 — 979.8 Other current assets 28.0 58.5 7.4 — 93.9 Total current assets 326.4 1,473.6 662.5 (45.0 ) 2,417.5 Investment in and advances to consolidated subsidiaries 6,148.2 1,253.6 (120.0 ) (7,281.8 ) — Intercompany receivables 48.0 1,353.7 4,632.2 (6,033.9 ) — Intangible assets, net — 947.5 609.5 — 1,557.0 Other long-term assets 87.3 232.7 219.3 — 539.3 Total assets $ 6,609.9 $ 5,261.1 $ 6,003.5 $ (13,360.7 ) $ 4,513.8 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 13.3 $ 375.0 $ 122.6 $ (44.8 ) $ 466.1 Customer advances — 465.8 6.0 — 471.8 Other current liabilities 85.5 246.5 97.9 (0.2 ) 429.7 Total current liabilities 98.8 1,087.3 226.5 (45.0 ) 1,367.6 Long-term debt, less current maturities 826.2 — — — 826.2 Intercompany payables 3,639.4 2,346.5 48.0 (6,033.9 ) — Other long-term liabilities 69.0 147.9 126.6 — 343.5 Total shareholders' equity 1,976.5 1,679.4 5,602.4 (7,281.8 ) 1,976.5 Total liabilities and shareholders' equity $ 6,609.9 $ 5,261.1 $ 6,003.5 $ (13,360.7 ) $ 4,513.8 Condensed Consolidating Statement of Cash Flows For the Three Months Ended December 31, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (42.8 ) $ 67.0 $ 59.6 $ — $ 83.8 Investing activities: Additions to property, plant and equipment (0.4 ) (9.1 ) (4.7 ) — (14.2 ) Additions to equipment held for rental — — (12.9 ) — (12.9 ) Proceeds from sale of equipment held for rental — — 5.3 — 5.3 Intercompany investing — 498.1 (39.0 ) (459.1 ) — Other investing activities (0.2 ) — — — (0.2 ) Net cash provided (used) by investing activities (0.6 ) 489.0 (51.3 ) (459.1 ) (22.0 ) Financing activities: Repayments of debt (original maturities greater than three months) (20.0 ) — — — (20.0 ) Repurchases of Common Stock (3.0 ) — — — (3.0 ) Dividends paid (15.6 ) — — — (15.6 ) Proceeds from exercise of stock options 26.2 — — — 26.2 Intercompany financing 93.9 (553.0 ) — 459.1 — Net cash provided (used) by financing activities 81.5 (553.0 ) — 459.1 (12.4 ) Effect of exchange rate changes on cash — (0.2 ) (1.5 ) — (1.7 ) Increase in cash and cash equivalents 38.1 2.8 6.8 — 47.7 Cash and cash equivalents at beginning of period 285.4 1.7 34.8 — 321.9 Cash and cash equivalents at end of period $ 323.5 $ 4.5 $ 41.6 $ — $ 369.6 Condensed Consolidating Statement of Cash Flows For the Three Months Ended December 31, 2015 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (83.3 ) $ 86.8 $ 69.7 $ — $ 73.2 Investing activities: Additions to property, plant and equipment (7.0 ) (5.1 ) (9.2 ) — (21.3 ) Additions to equipment held for rental — — (15.0 ) — (15.0 ) Proceeds from sale of equipment held for rental — 0.6 18.1 — 18.7 Intercompany investing — (76.6 ) (75.3 ) 151.9 — Other investing activities (0.5 ) (0.1 ) — — (0.6 ) Net cash used by investing activities (7.5 ) (81.2 ) (81.4 ) 151.9 (18.2 ) Financing activities: Proceeds from issuance of debt (original maturities greater than three months) 150.0 — 3.6 — 153.6 Repayments of debt (original maturities greater than three months) (135.0 ) — — — (135.0 ) Net increase in short-term debt 28.2 — — — 28.2 Repurchases of Common Stock (101.5 ) — — — (101.5 ) Dividends paid (14.1 ) — — — (14.1 ) Proceeds from exercise of stock options 1.4 — — — 1.4 Excess tax benefit from stock-based compensation 0.8 — — — 0.8 Intercompany financing 158.4 (6.5 ) — (151.9 ) — Net cash provided (used) by financing activities 88.2 (6.5 ) 3.6 (151.9 ) (66.6 ) Effect of exchange rate changes on cash — 0.2 2.2 — 2.4 Decrease in cash and cash equivalents (2.6 ) (0.7 ) (5.9 ) — (9.2 ) Cash and cash equivalents at beginning of period 14.8 6.3 21.8 — 42.9 Cash and cash equivalents at end of period $ 12.2 $ 5.6 $ 15.9 $ — $ 33.7 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 11, 2017 the Company experienced an explosion and fire at its commercial segment’s Dodge Center, Minnesota production facility. Five people were injured, two seriously, and the Company’s facility was damaged. The Company implemented its emergency response and business continuity plan. The Company carries property, liability and business interruption insurance, with various levels of self-insured retention/deductibles, for unforeseen events such as this. The expected financial impact of this event is not expected to be material to the Company. On January 26, 2017, as part of simplification activities in support of the Company’s MOVE strategy, the Company's access equipment segment announced it had committed to certain restructuring plans, final details of which are subject to discussions with employees or their representatives in several countries. These plans include the closure of its manufacturing plant and pre-delivery inspection facilities in Belgium, the streamlining of telehandler product offerings to a reduced range in Europe, the transfer of remaining European telehandler manufacturing to the Company’s facility in Romania and reductions in engineering staff supporting European telehandlers, including the closure of the UK-based engineering facility. The announced plans also include the move of North American telehandler production from Ohio to facilities in Pennsylvania. The Company expects implementation costs for these actions to be between $45 million and $50 million , pre-tax, including approximately $10 million of non-cash charges. Approximately $43 million of the pre-tax implementation costs are expected to be incurred in fiscal 2017 with the remainder to be incurred in fiscal 2018. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) , and the FASB has since issued several amendments to this standard, which clarifies the principles for recognizing revenue. This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard supersedes all existing U.S. GAAP guidance on revenue recognition and is expected to require the use of more judgment and result in additional disclosures. The standard becomes effective for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted one year earlier. The Company is currently evaluating the impact of ASU 2014-09 on the Company’s financial statements and has not yet determined its method of adoption. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory . ASU 2015-11 is part of the FASB’s initiative to simplify accounting standards. The guidance requires an entity to recognize inventory within the scope of the standard at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company will be required to adopt ASU 2015-11 as of October 1, 2017. The Company is currently evaluating the impact of ASU 2015-11 on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is expected to increase transparency and comparability among organizations . The standard requires lessees to reflect most leases on their balance sheet as lease liabilities with a corresponding right-of-use asset, while leaving presentation of lease expense in the statement of income largely unchanged. The standard also eliminates the real-estate specific provisions that exist under current U.S. GAAP and modifies the classification criteria and accounting lessors must apply to sales-type and direct financing leases. The standard is effective for fiscal years and interim periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-02 on the Company's financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 is part of the FASB’s initiative to simplify accounting standards. The standard requires that all tax effects of share-based payments at settlement (or expiration) be recorded in the income statement at the time the tax effects arise. The standard also clarifies that cash flows resulting from share-based payments be reported as operating activities within the statement of cash flows, permits employers to withhold shares upon settlement of an award to satisfy an employee's tax liability up to the employee's maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award and permits entities to make an accounting policy election to estimate or use actual forfeitures when recognizing the expense of share-based compensation. The Company adopted ASU 2016-09 as of October 1, 2016 following a prospective approach for the income tax and earnings per share impacts and a retrospective approach for the cash flow impacts. The adoption of ASU 2016-09 did not have a material impact on the Company's financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectibility of the related financial asset.The Company will be required to adopt ASU 2016-13 as of October 1, 2020. The Company is currently evaluating the impact of ASU 2016-13 on the Company's financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory . The standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset when the transfer occurs as opposed to when the asset is transferred to an outside party as required under current U.S. GAAP. The standard does not apply to intra-entity transfers of inventory, which will continue to follow current U.S. GAAP. The Company will be required to adopt ASU 2016-16 as of October 1, 2018. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-16 on the Company's financial statements. |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of receivables | Receivables consisted of the following (in millions): December 31, September 30, 2016 2016 U.S. government: Amounts billed $ 50.8 $ 49.0 Costs and profits not billed 65.5 55.3 116.3 104.3 Other trade receivables 545.9 881.8 Finance receivables 46.3 7.6 Notes receivable 35.1 36.1 Other receivables 33.0 38.6 776.6 1,068.4 Less allowance for doubtful accounts (20.2 ) (21.2 ) $ 756.4 $ 1,047.2 |
Classification of receivables in the consolidated balance sheets | Classification of receivables in the Condensed Consolidated Balance Sheets consisted of the following (in millions): December 31, September 30, 2016 2016 Current receivables $ 699.0 $ 1,021.9 Long-term receivables (included in “Other long-term assets”) 57.4 25.3 $ 756.4 $ 1,047.2 |
Schedule of finance and notes receivable aging and accrual status | Finance and notes receivable aging and accrual status consisted of the following (in millions): Finance Receivables Notes Receivable December 31, 2016 September 30, 2016 December 31, 2016 September 30, 2016 Aging of receivables that are past due: Greater than 30 days and less than 60 days $ — $ — $ — $ — Greater than 60 days and less than 90 days — — — — Greater than 90 days 2.6 2.9 0.2 — Receivables on nonaccrual status 4.4 4.5 23.4 25.1 Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 41.9 3.1 — — Allowance for doubtful accounts (0.7 ) (0.1 ) — — Receivables subject to specific reserves 4.4 4.5 35.1 36.1 Allowance for doubtful accounts (1.4 ) (0.9 ) (11.6 ) (13.0 ) |
Schedule of allowance for doubtful accounts | Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions): Three Months Ended December 31, 2016 Finance Receivables Notes Receivable Trade and Other Receivables Total Allowance for doubtful accounts at beginning of period $ 1.0 $ 13.0 $ 7.2 $ 21.2 Provision for doubtful accounts, net of recoveries 1.1 (0.6 ) (0.5 ) — Charge-off of accounts — (0.1 ) (0.2 ) (0.3 ) Foreign currency translation — (0.7 ) — (0.7 ) Allowance for doubtful accounts at end of period $ 2.1 $ 11.6 $ 6.5 $ 20.2 Three Months Ended December 31, 2015 Finance Receivables Notes Receivables Trade and Other Receivables Total Allowance for doubtful accounts at beginning of period $ 0.1 $ 12.7 $ 7.5 $ 20.3 Provision for doubtful accounts, net of recoveries — 0.2 (1.1 ) (0.9 ) Charge-off of accounts — — (0.3 ) (0.3 ) Foreign currency translation — (0.3 ) — (0.3 ) Allowance for doubtful accounts at end of period $ 0.1 $ 12.6 $ 6.1 $ 18.8 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following (in millions): December 31, September 30, 2016 2016 Raw materials $ 559.2 $ 481.2 Partially finished products 360.8 307.8 Finished products 379.4 286.9 Inventories at FIFO cost 1,299.4 1,075.9 Less: Progress/performance-based payments on U.S. government contracts (10.6 ) (17.8 ) Excess of FIFO cost over LIFO cost (80.1 ) (78.3 ) $ 1,208.7 $ 979.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following (in millions): December 31, September 30, 2016 2016 Land and land improvements $ 56.6 $ 56.8 Buildings 283.1 283.4 Machinery and equipment 596.9 597.3 Software and related costs 148.9 147.4 Equipment on operating lease to others 33.5 25.7 1,119.0 1,110.6 Less accumulated depreciation (672.1 ) (658.5 ) $ 446.9 $ 452.1 |
Goodwill and Purchased Intang35
Goodwill and Purchased Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents changes in goodwill during the three months ended December 31, 2016 (in millions): Access Equipment Fire & Emergency Commercial Total Net goodwill at September 30, 2016 $ 876.6 $ 106.1 $ 20.8 $ 1,003.5 Foreign currency translation (12.5 ) — — (12.5 ) Net goodwill at December 31, 2016 $ 864.1 $ 106.1 $ 20.8 $ 991.0 |
Schedule of company's goodwill allocated to the reportable segments | The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions): December 31, 2016 September 30, 2016 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access equipment $ 1,796.2 $ (932.1 ) $ 864.1 $ 1,808.7 $ (932.1 ) $ 876.6 Fire & emergency 108.1 (2.0 ) 106.1 108.1 (2.0 ) 106.1 Commercial 196.7 (175.9 ) 20.8 196.7 (175.9 ) 20.8 $ 2,101.0 $ (1,110.0 ) $ 991.0 $ 2,113.5 $ (1,110.0 ) $ 1,003.5 |
Schedule of purchased intangible assets | Details of the Company’s total purchased intangible assets are as follows (in millions): December 31, 2016 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (28.4 ) $ 27.0 Non-compete 10.5 56.4 (56.4 ) — Technology-related 11.9 104.7 (93.6 ) 11.1 Customer relationships 12.8 545.6 (432.4 ) 113.2 Other 16.2 16.3 (14.6 ) 1.7 14.5 778.4 (625.4 ) 153.0 Non-amortizable trade names 387.7 — 387.7 $ 1,166.1 $ (625.4 ) $ 540.7 September 30, 2016 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (28.0 ) $ 27.4 Non-compete 10.5 56.4 (56.4 ) — Technology-related 11.9 104.7 (91.5 ) 13.2 Customer relationships 12.8 550.8 (427.4 ) 123.4 Other 16.3 16.5 (14.7 ) 1.8 14.5 783.8 (618.0 ) 165.8 Non-amortizable trade names 387.7 — 387.7 $ 1,171.5 $ (618.0 ) $ 553.5 |
Credit Agreements (Tables)
Credit Agreements (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | The Company was obligated under the following debt instruments (in millions): December 31, 2016 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 335.0 $ (1.3 ) $ 333.7 5.375% Senior Notes due March 2022 250.0 (4.1 ) 245.9 5.375% Senior Notes due March 2025 250.0 (3.0 ) 247.0 $ 835.0 $ (8.4 ) 826.6 Less current maturities (5.0 ) $ 821.6 Revolving Credit Facility $ — Current maturities of long-term debt 5.0 $ 5.0 September 30, 2016 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 355.0 $ (1.4 ) $ 353.6 5.375% Senior Notes due March 2022 250.0 (4.3 ) 245.7 5.375% Senior Notes due March 2025 250.0 (3.1 ) 246.9 $ 855.0 $ (8.8 ) 846.2 Less current maturities (20.0 ) $ 826.2 Revolving Credit Facility $ — Current maturities of long-term debt 20.0 $ 20.0 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in warranty liability | Changes in the Company’s warranty liability and unearned extended warranty premiums were as follows (in millions): Three Months Ended 2016 2015 Balance at beginning of period $ 89.6 $ 92.1 Warranty provisions 10.7 10.0 Settlements made (11.9 ) (13.9 ) Changes in liability for pre-existing warranties, net (1.1 ) (0.6 ) Premiums received 2.8 2.6 Amortization of premiums received (2.9 ) (2.6 ) Foreign currency translation (1.0 ) (0.5 ) Balance at end of period $ 86.2 $ 87.1 |
Guarantee Arrangements (Tables)
Guarantee Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Schedule of provision for losses on customer guarantees | Changes in the Company’s credit guarantee liability were as follows (in millions): Three Months Ended 2016 2015 Balance at beginning of period $ 8.4 $ 5.6 Provision for new credit guarantees 0.6 0.8 Changes for pre-existing guarantees, net 0.1 0.3 Amortization of previous guarantees (0.5 ) (0.9 ) Foreign currency translation (0.1 ) — Balance at end of period $ 8.5 $ 5.8 |
Derivative Financial Instrume39
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of all open derivative instruments | The fair values of all open derivative instruments were as follows (in millions): December 31, 2016 September 30, 2016 Other Current Assets Other Current Liabilities Other Current Assets Other Current Liabilities Cash flow hedges: Foreign exchange contracts $ 0.1 $ — $ — $ — Not designated as hedging instruments: Foreign exchange contracts 1.4 0.2 0.1 0.4 Interest rate contracts 0.5 1.2 — 0.4 $ 2.0 $ 1.4 $ 0.1 $ 0.8 |
Schedule of pre-tax effects of derivative instruments | The pre-tax effects of derivative instruments consisted of the following (in millions): Classification of Gains (Losses) Three Months Ended 2016 2015 Cash flow hedges: Foreign exchange contracts Cost of sales $ 0.1 $ — Not designated as hedging instruments: Foreign exchange contracts Miscellaneous, net 2.7 (1.3 ) Interest rate contracts Miscellaneous, net 0.4 (0.1 ) $ 3.2 $ (1.4 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values of financial assets and liabilities | The fair values of the Company’s financial assets and liabilities were as follows (in millions): Level 1 Level 2 Level 3 Total December 31, 2016 Assets: SERP plan assets (a) $ 21.6 $ — $ — $ 21.6 Foreign currency exchange derivatives (b) — 1.5 — 1.5 Interest rate contracts (c) — 0.5 — 0.5 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.2 $ — $ 0.2 Interest rate contracts (c) — 1.2 — 1.2 September 30, 2016 Assets: SERP plan assets (a) $ 21.7 $ — $ — $ 21.7 Foreign currency exchange derivatives (b) — 0.1 — 0.1 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.4 $ — $ 0.4 Interest rate contracts (c) — 0.4 — 0.4 _________________________ (a) Represents investments in a rabbi trust for the Company's non-qualified supplemental executive retirement plan (SERP). The fair values of these investments are determined using a market approach. Investments include mutual funds for which quoted prices in active markets are available. The Company records changes in the fair value of investments in “Miscellaneous, net” in the Condensed Consolidated Statements of Income. (b) Based on observable market transactions of forward currency prices. (c) Based on observable market transactions of interest rate swap prices. |
Restructuring and Other Charg41
Restructuring and Other Charges (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Pre-tax restructuring charges for the three months ended December 31, 2016 were as follows (in millions): Cost of Sales Selling, General and Administrative Expenses Total Access equipment $ 0.7 $ — $ 0.7 Commercial — 0.4 0.4 Total $ 0.7 $ 0.4 $ 1.1 |
Schedule of restructuring reserve by type of cost | Changes in the Company's restructuring reserves, included within "Other current liabilities" in the Condensed Consolidated Balance Sheets, were as follows (in millions): Employee Severance and Termination Benefits Balance at September 30, 2016 $ 0.9 Restructuring provision 1.1 Utilized - cash (0.3 ) Balance as of December 31, 2016 $ 1.7 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of net periodic benefit cost | Components of net periodic pension benefit cost were as follows (in millions): Three Months Ended 2016 2015 Components of net periodic benefit cost Service cost $ 3.3 $ 2.9 Interest cost 4.4 4.6 Expected return on plan assets (4.5 ) (4.5 ) Amortization of prior service cost 0.4 0.4 Amortization of net actuarial loss 1.0 0.6 Net periodic benefit cost $ 4.6 $ 4.0 Components of net periodic other post-employment benefit cost were as follows (in millions): Three Months Ended 2016 2015 Components of net periodic benefit cost Service cost $ 0.6 $ 0.3 Interest cost 0.4 0.4 Amortization of prior service cost (0.2 ) (0.2 ) Amortization of net actuarial loss 0.1 — Net periodic benefit cost $ 0.9 $ 0.5 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Changes in accumulated other comprehensive income (loss) by component were as follows (in millions): Three Months Ended December 31, 2016 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (73.9 ) $ (101.1 ) $ (175.0 ) Other comprehensive income (loss) before reclassifications — (30.4 ) (30.4 ) Amounts reclassified from accumulated other comprehensive income 0.8 — 0.8 Net current period other comprehensive income (loss) 0.8 (30.4 ) (29.6 ) Balance at end of period $ (73.1 ) $ (131.5 ) $ (204.6 ) Three Months Ended December 31, 2015 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (46.4 ) $ (98.1 ) $ 0.1 $ (144.4 ) Other comprehensive income (loss) before reclassifications — (11.2 ) 0.2 (11.0 ) Amounts reclassified from accumulated other comprehensive income 0.5 — — 0.5 Net current period other comprehensive income (loss) 0.5 (11.2 ) 0.2 (10.5 ) Balance at end of period $ (45.9 ) $ (109.3 ) $ 0.3 $ (154.9 ) |
Schedule of amounts recognized in other comprehensive income (loss) | Reclassifications out of accumulated other comprehensive income (loss) included in the computation of net periodic pension and postretirement benefit cost (refer to Note 15 of the Notes to Condensed Consolidated Financial Statements for additional details regarding employee benefit plans) were as follows (in millions): Three Months Ended 2016 2015 Amortization of employee pension and postretirement benefits items Prior service costs $ (0.2 ) $ (0.2 ) Actuarial losses (1.1 ) (0.6 ) Total before tax (1.3 ) (0.8 ) Tax benefit 0.5 0.3 Net of tax $ (0.8 ) $ (0.5 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The calculation of basic and diluted earnings per common share was as follows (in millions, except number of share amounts): Three Months Ended 2016 2015 Earnings available to common shareholders $ 19.2 $ 14.6 Basic Earnings Per Share: Weighted-average common shares outstanding 74,280,377 74,063,418 Diluted Earnings Per Share: Basic weighted-average common shares outstanding 74,280,377 74,063,418 Dilutive stock options and other equity-based compensation awards 1,104,540 789,798 Diluted weighted-average common shares outstanding 75,384,917 74,853,216 |
Schedule of antidilutive securities excluded from computation of earnings per share | Options not included in the computation of diluted earnings per share attributable to common shareholders because they would have been anti-dilutive were as follows: Three Months Ended 2016 2015 Stock options 393,975 1,697,145 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of net sales by product lines and reportable segments | Selected financial information concerning the Company’s reportable segments and product lines is as follows (in millions): Three Months Ended December 31, 2016 2015 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 233.7 $ — $ 233.7 $ 242.0 $ — $ 242.0 Telehandlers 93.3 — 93.3 111.8 — 111.8 Other 162.2 — 162.2 176.0 — 176.0 Total access equipment 489.2 — 489.2 529.8 — 529.8 Defense 294.2 0.3 294.5 316.9 1.1 318.0 Fire & emergency 229.1 3.4 232.5 205.4 2.1 207.5 Commercial Concrete placement 84.4 — 84.4 72.3 — 72.3 Refuse collection 92.2 — 92.2 99.0 — 99.0 Other 21.5 1.1 22.6 28.6 0.4 29.0 Total commercial 198.1 1.1 199.2 199.9 0.4 200.3 Corporate and intersegment eliminations 0.8 (4.8 ) (4.0 ) — (3.6 ) (3.6 ) Consolidated $ 1,211.4 $ — $ 1,211.4 $ 1,252.0 $ — $ 1,252.0 |
Schedule of income (loss) from continuing operations by product lines and reportable segments | Three Months Ended 2016 2015 Operating income (loss): Access equipment $ 24.4 $ 20.4 Defense 23.8 23.2 Fire & emergency 17.0 10.1 Commercial 4.6 8.9 Corporate (33.6 ) (32.3 ) Intersegment eliminations — — Consolidated 36.2 30.3 Interest expense, net of interest income (13.9 ) (14.1 ) Miscellaneous other income 1.3 — Income before income taxes and equity in earnings of unconsolidated affiliates $ 23.6 $ 16.2 |
Schedule of identifiable assets by business segments and by geographical segments | December 31, September 30, 2016 2016 Identifiable assets: Access equipment: U.S. $ 1,783.6 $ 1,856.0 Europe (a) 483.7 521.5 Rest of the World 196.0 193.7 Total access equipment 2,463.3 2,571.2 Defense: U.S. 568.5 522.2 Rest of the World 2.6 3.0 Total defense 571.1 525.2 Fire & emergency - U.S. 518.5 522.7 Commercial: U.S. 355.1 358.4 Rest of the World (a) 31.3 33.4 Total commercial 386.4 391.8 Corporate: U.S. (b) 457.1 408.3 Rest of the world (c) 94.6 94.6 Total corporate 551.7 502.9 Consolidated $ 4,491.0 $ 4,513.8 _________________________ (a) Includes investments in unconsolidated affiliates. (b) Primarily includes cash and short-term investments. (c) Includes a corporate-led manufacturing facility that supports multiple operating segments. |
Schedule of net sales by geographical segments | The following table presents net sales by geographic region based on product shipment destination (in millions): Three Months Ended December 31, 2016 2015 Net sales: United States $ 1,018.3 $ 904.4 Other North America 35.7 61.5 Europe, Africa and Middle East 71.6 200.1 Rest of the World 85.8 86.0 Consolidated $ 1,211.4 $ 1,252.0 |
Separate Financial Informatio46
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Separate Financial Information of Subsidiary Guarantors of Indebtedness Disclosure Abstract | |
Schedule of condensed consolidating statements of income and comprehensive income | Condensed Consolidating Statement of Income and Comprehensive Income For the Three Months Ended December 31, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,049.8 $ 202.9 $ (41.3 ) $ 1,211.4 Cost of sales (0.8 ) 874.5 179.5 (41.5 ) 1,011.7 Gross income 0.8 175.3 23.4 0.2 199.7 Selling, general and administrative expenses 31.6 91.5 27.9 — 151.0 Amortization of purchased intangibles — 9.6 2.9 — 12.5 Operating income (loss) (30.8 ) 74.2 (7.4 ) 0.2 36.2 Interest expense (13.6 ) (13.6 ) (0.5 ) 13.0 (14.7 ) Interest income 0.7 4.1 9.0 (13.0 ) 0.8 Miscellaneous, net 22.5 (52.2 ) 31.0 — 1.3 Income (loss) before income taxes (21.2 ) 12.5 32.1 0.2 23.6 Provision for (benefit from) income taxes (5.1 ) 3.0 7.2 0.1 5.2 Income (loss) before equity in earnings of affiliates (16.1 ) 9.5 24.9 0.1 18.4 Equity in earnings of consolidated subsidiaries 35.3 15.7 (10.7 ) (40.3 ) — Equity in earnings of unconsolidated affiliates — — 0.8 — 0.8 Net income 19.2 25.2 15.0 (40.2 ) 19.2 Other comprehensive income (loss), net of tax (29.6 ) (0.9 ) (29.2 ) 30.1 (29.6 ) Comprehensive income (loss) $ (10.4 ) $ 24.3 $ (14.2 ) $ (10.1 ) $ (10.4 ) Condensed Consolidating Statement of Income and Comprehensive Income For the Three Months Ended December 31, 2015 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,056.8 $ 220.4 $ (25.2 ) $ 1,252.0 Cost of sales 0.3 899.0 195.1 (25.2 ) 1,069.2 Gross income (loss) (0.3 ) 157.8 25.3 — 182.8 Selling, general and administrative expenses 23.6 89.3 26.4 — 139.3 Amortization of purchased intangibles — 9.8 3.4 — 13.2 Operating income (loss) (23.9 ) 58.7 (4.5 ) — 30.3 Interest expense (59.6 ) (14.7 ) (0.7 ) 60.4 (14.6 ) Interest income 0.5 16.2 44.2 (60.4 ) 0.5 Miscellaneous, net 14.9 (41.4 ) 26.5 — — Income (loss) before income taxes (68.1 ) 18.8 65.5 — 16.2 Provision for (benefit from) income taxes (5.8 ) 1.6 5.9 — 1.7 Income (loss) before equity in earnings of affiliates (62.3 ) 17.2 59.6 — 14.5 Equity in earnings of consolidated subsidiaries 77.2 18.1 (6.4 ) (88.9 ) — Equity in earnings of unconsolidated affiliates (0.3 ) — 0.4 — 0.1 Net income 14.6 35.3 53.6 (88.9 ) 14.6 Other comprehensive income (loss), net of tax (10.5 ) (2.9 ) (8.1 ) 11.0 (10.5 ) Comprehensive income (loss) $ 4.1 $ 32.4 $ 45.5 $ (77.9 ) $ 4.1 |
Condensed consolidating balance sheet | Condensed Consolidating Balance Sheet As of December 31, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 323.5 $ 4.5 $ 41.6 $ — $ 369.6 Receivables, net 18.7 539.2 174.1 (33.0 ) 699.0 Inventories, net — 845.5 363.2 — 1,208.7 Other current assets 53.4 58.6 6.7 — 118.7 Total current assets 395.6 1,447.8 585.6 (33.0 ) 2,396.0 Investment in and advances to consolidated subsidiaries 2,746.1 1,274.4 (112.8 ) (3,907.7 ) — Intercompany receivables 47.9 231.9 1,887.4 (2,167.2 ) — Intangible assets, net — 936.5 595.2 — 1,531.7 Other long-term assets 83.9 228.5 250.9 — 563.3 Total assets $ 3,273.5 $ 4,119.1 $ 3,206.3 $ (6,107.9 ) $ 4,491.0 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 12.4 $ 378.5 $ 119.5 $ (32.7 ) $ 477.7 Customer advances — 495.9 6.9 — 502.8 Other current liabilities 61.8 211.4 84.6 (0.3 ) 357.5 Total current liabilities 74.2 1,085.8 211.0 (33.0 ) 1,338.0 Long-term debt, less current maturities 821.6 — — — 821.6 Intercompany payables 325.8 1,793.5 47.9 (2,167.2 ) — Other long-term liabilities 71.6 154.3 125.2 — 351.1 Total shareholders' equity 1,980.3 1,085.5 2,822.2 (3,907.7 ) 1,980.3 Total liabilities and shareholders' equity $ 3,273.5 $ 4,119.1 $ 3,206.3 $ (6,107.9 ) $ 4,491.0 Condensed Consolidating Balance Sheet As of September 30, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 285.4 $ 1.7 $ 34.8 $ — $ 321.9 Receivables, net 13.0 734.3 319.6 (45.0 ) 1,021.9 Inventories, net — 679.1 300.7 — 979.8 Other current assets 28.0 58.5 7.4 — 93.9 Total current assets 326.4 1,473.6 662.5 (45.0 ) 2,417.5 Investment in and advances to consolidated subsidiaries 6,148.2 1,253.6 (120.0 ) (7,281.8 ) — Intercompany receivables 48.0 1,353.7 4,632.2 (6,033.9 ) — Intangible assets, net — 947.5 609.5 — 1,557.0 Other long-term assets 87.3 232.7 219.3 — 539.3 Total assets $ 6,609.9 $ 5,261.1 $ 6,003.5 $ (13,360.7 ) $ 4,513.8 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 13.3 $ 375.0 $ 122.6 $ (44.8 ) $ 466.1 Customer advances — 465.8 6.0 — 471.8 Other current liabilities 85.5 246.5 97.9 (0.2 ) 429.7 Total current liabilities 98.8 1,087.3 226.5 (45.0 ) 1,367.6 Long-term debt, less current maturities 826.2 — — — 826.2 Intercompany payables 3,639.4 2,346.5 48.0 (6,033.9 ) — Other long-term liabilities 69.0 147.9 126.6 — 343.5 Total shareholders' equity 1,976.5 1,679.4 5,602.4 (7,281.8 ) 1,976.5 Total liabilities and shareholders' equity $ 6,609.9 $ 5,261.1 $ 6,003.5 $ (13,360.7 ) $ 4,513.8 |
Condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows For the Three Months Ended December 31, 2016 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (42.8 ) $ 67.0 $ 59.6 $ — $ 83.8 Investing activities: Additions to property, plant and equipment (0.4 ) (9.1 ) (4.7 ) — (14.2 ) Additions to equipment held for rental — — (12.9 ) — (12.9 ) Proceeds from sale of equipment held for rental — — 5.3 — 5.3 Intercompany investing — 498.1 (39.0 ) (459.1 ) — Other investing activities (0.2 ) — — — (0.2 ) Net cash provided (used) by investing activities (0.6 ) 489.0 (51.3 ) (459.1 ) (22.0 ) Financing activities: Repayments of debt (original maturities greater than three months) (20.0 ) — — — (20.0 ) Repurchases of Common Stock (3.0 ) — — — (3.0 ) Dividends paid (15.6 ) — — — (15.6 ) Proceeds from exercise of stock options 26.2 — — — 26.2 Intercompany financing 93.9 (553.0 ) — 459.1 — Net cash provided (used) by financing activities 81.5 (553.0 ) — 459.1 (12.4 ) Effect of exchange rate changes on cash — (0.2 ) (1.5 ) — (1.7 ) Increase in cash and cash equivalents 38.1 2.8 6.8 — 47.7 Cash and cash equivalents at beginning of period 285.4 1.7 34.8 — 321.9 Cash and cash equivalents at end of period $ 323.5 $ 4.5 $ 41.6 $ — $ 369.6 Condensed Consolidating Statement of Cash Flows For the Three Months Ended December 31, 2015 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (83.3 ) $ 86.8 $ 69.7 $ — $ 73.2 Investing activities: Additions to property, plant and equipment (7.0 ) (5.1 ) (9.2 ) — (21.3 ) Additions to equipment held for rental — — (15.0 ) — (15.0 ) Proceeds from sale of equipment held for rental — 0.6 18.1 — 18.7 Intercompany investing — (76.6 ) (75.3 ) 151.9 — Other investing activities (0.5 ) (0.1 ) — — (0.6 ) Net cash used by investing activities (7.5 ) (81.2 ) (81.4 ) 151.9 (18.2 ) Financing activities: Proceeds from issuance of debt (original maturities greater than three months) 150.0 — 3.6 — 153.6 Repayments of debt (original maturities greater than three months) (135.0 ) — — — (135.0 ) Net increase in short-term debt 28.2 — — — 28.2 Repurchases of Common Stock (101.5 ) — — — (101.5 ) Dividends paid (14.1 ) — — — (14.1 ) Proceeds from exercise of stock options 1.4 — — — 1.4 Excess tax benefit from stock-based compensation 0.8 — — — 0.8 Intercompany financing 158.4 (6.5 ) — (151.9 ) — Net cash provided (used) by financing activities 88.2 (6.5 ) 3.6 (151.9 ) (66.6 ) Effect of exchange rate changes on cash — 0.2 2.2 — 2.4 Decrease in cash and cash equivalents (2.6 ) (0.7 ) (5.9 ) — (9.2 ) Cash and cash equivalents at beginning of period 14.8 6.3 21.8 — 42.9 Cash and cash equivalents at end of period $ 12.2 $ 5.6 $ 15.9 $ — $ 33.7 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
U.S. government: | ||||
Amounts billed | $ 50.8 | $ 49 | ||
Costs and profits not billed | 65.5 | 55.3 | ||
Contract receivables | 116.3 | 104.3 | ||
Other trade receivables | 545.9 | 881.8 | ||
Finance receivables | 46.3 | 7.6 | ||
Notes receivable | 35.1 | 36.1 | ||
Other receivables | 33 | 38.6 | ||
Receivables, gross | 776.6 | 1,068.4 | ||
Less allowance for doubtful accounts | (20.2) | (21.2) | $ (18.8) | $ (20.3) |
Receivables, net | 756.4 | 1,047.2 | ||
Classification of receivables | ||||
Current receivables | 699 | 1,021.9 | ||
Long-term receivables (included in “Other long-term assets”) | $ 57.4 | $ 25.3 |
Receivables (Details 2)
Receivables (Details 2) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Change in allowance for doubtful accounts | |||
Allowance for doubtful accounts at beginning of period | $ 21.2 | $ 20.3 | |
Provision for doubtful accounts, net of recoveries | 0 | (0.9) | |
Charge-off of accounts | (0.3) | (0.3) | |
Foreign currency translation | (0.7) | (0.3) | |
Allowance for doubtful accounts at end of period | 20.2 | 18.8 | |
Finance Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables on nonaccrual status | 4.4 | $ 4.5 | |
Receivables past due 90 days or more and still accruing | 0 | 0 | |
Receivables subject to general reserves | 41.9 | 3.1 | |
Allowance for doubtful accounts | (0.7) | (0.1) | |
Receivables subject to specific reserves | 4.4 | 4.5 | |
Allowance for doubtful accounts | (1.4) | (0.9) | |
Change in allowance for doubtful accounts | |||
Allowance for doubtful accounts at beginning of period | 1 | 0.1 | |
Provision for doubtful accounts, net of recoveries | 1.1 | 0 | |
Charge-off of accounts | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Allowance for doubtful accounts at end of period | 2.1 | 0.1 | |
Finance Receivables | Greater than 30 days and less than 60 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Aging of receivables that are past due: | 0 | 0 | |
Finance Receivables | Greater than 60 days and less than 90 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Aging of receivables that are past due: | 0 | 0 | |
Finance Receivables | Greater than 90 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Aging of receivables that are past due: | 2.6 | 2.9 | |
Notes Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables on nonaccrual status | 23.4 | 25.1 | |
Receivables past due 90 days or more and still accruing | 0 | 0 | |
Receivables subject to general reserves | 0 | 0 | |
Allowance for doubtful accounts | 0 | 0 | |
Receivables subject to specific reserves | 35.1 | 36.1 | |
Allowance for doubtful accounts | (11.6) | (13) | |
Change in allowance for doubtful accounts | |||
Allowance for doubtful accounts at beginning of period | 13 | 12.7 | |
Provision for doubtful accounts, net of recoveries | (0.6) | 0.2 | |
Charge-off of accounts | (0.1) | 0 | |
Foreign currency translation | (0.7) | (0.3) | |
Allowance for doubtful accounts at end of period | 11.6 | 12.6 | |
Notes Receivable | Greater than 30 days and less than 60 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Aging of receivables that are past due: | 0 | 0 | |
Notes Receivable | Greater than 60 days and less than 90 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Aging of receivables that are past due: | 0 | 0 | |
Notes Receivable | Greater than 90 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Aging of receivables that are past due: | 0.2 | $ 0 | |
Trade and Other Receivables | |||
Change in allowance for doubtful accounts | |||
Allowance for doubtful accounts at beginning of period | 7.2 | 7.5 | |
Provision for doubtful accounts, net of recoveries | (0.5) | (1.1) | |
Charge-off of accounts | (0.2) | (0.3) | |
Foreign currency translation | 0 | 0 | |
Allowance for doubtful accounts at end of period | $ 6.5 | $ 6.1 |
Receivables (Details 3)
Receivables (Details 3) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($)Party | |
Notes Receivable | Credit concentration | |
Finance and notes receivables | |
Receivables due from third parties (as a percent) | 87.00% |
Number of parties | Party | 4 |
Restructured finance receivables | |
Finance and notes receivables | |
Financing receivable, modifications, recorded investment | $ 3.7 |
Restructured notes receivables | |
Finance and notes receivables | |
Financing receivable, modifications, recorded investment | $ 11.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 559.2 | $ 481.2 |
Partially finished products | 360.8 | 307.8 |
Finished products | 379.4 | 286.9 |
Inventories at FIFO cost | 1,299.4 | 1,075.9 |
Less: Progress/performance-based payments on U.S. government contracts | (10.6) | (17.8) |
Excess of FIFO cost over LIFO cost | (80.1) | (78.3) |
Inventory net | $ 1,208.7 | $ 979.8 |
Property, Plant and Equipment51
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 1,119 | $ 1,110.6 | |
Less accumulated depreciation | (672.1) | (658.5) | |
Property, plant and equipment, net | 446.9 | 452.1 | |
Depreciation expenses | 18.9 | $ 17.1 | |
Land and land improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 56.6 | 56.8 | |
Buildings | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 283.1 | 283.4 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 596.9 | 597.3 | |
Software and related costs | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 148.9 | 147.4 | |
Equipment on operating lease to others | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 33.5 | 25.7 | |
Equipment on operating lease, net | $ 26.3 | $ 18.6 | |
Equipment on operating lease to others | Minimum | |||
Property, plant and equipment | |||
Estimated useful life (in years) | 5 years | ||
Equipment on operating lease to others | Maximum | |||
Property, plant and equipment | |||
Estimated useful life (in years) | 10 years |
Goodwill and Purchased Intang52
Goodwill and Purchased Intangible Assets (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Changes in goodwill | |
Net goodwill at the beginning of the period | $ 1,003.5 |
Foreign currency translation | (12.5) |
Net goodwill at the end of the period | 991 |
Access Equipment | |
Changes in goodwill | |
Net goodwill at the beginning of the period | 876.6 |
Foreign currency translation | (12.5) |
Net goodwill at the end of the period | 864.1 |
Fire & Emergency | |
Changes in goodwill | |
Net goodwill at the beginning of the period | 106.1 |
Foreign currency translation | 0 |
Net goodwill at the end of the period | 106.1 |
Commercial | |
Changes in goodwill | |
Net goodwill at the beginning of the period | 20.8 |
Foreign currency translation | 0 |
Net goodwill at the end of the period | $ 20.8 |
Goodwill and Purchased Intang53
Goodwill and Purchased Intangible Assets (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | $ 2,101 | $ 2,113.5 |
Accumulated Impairment | (1,110) | (1,110) |
Net | 991 | 1,003.5 |
Access Equipment | ||
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | 1,796.2 | 1,808.7 |
Accumulated Impairment | (932.1) | (932.1) |
Net | 864.1 | 876.6 |
Fire & Emergency | ||
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | 108.1 | 108.1 |
Accumulated Impairment | (2) | (2) |
Net | 106.1 | 106.1 |
Commercial | ||
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | 196.7 | 196.7 |
Accumulated Impairment | (175.9) | (175.9) |
Net | $ 20.8 | $ 20.8 |
Goodwill and Purchased Intang54
Goodwill and Purchased Intangible Assets (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | |
Purchased intangible assets | ||
Weighted- Average Life (in years) | 14 years 6 months | 14 years 6 months |
Gross | $ 778.4 | $ 783.8 |
Accumulated Amortization | (625.4) | (618) |
Net | 153 | 165.8 |
Non-amortizable trade names | 387.7 | 387.7 |
Intangible assets excluding goodwill, gross | 1,166.1 | 1,171.5 |
Purchased intangible assets, net | 540.7 | $ 553.5 |
Future amortization expense of purchased intangible assets for the five years succeeding fiscal year 2016 | ||
2017 (remaining nine months) | 33.3 | |
2,018 | 38.3 | |
2,019 | 36.9 | |
2,020 | 11 | |
2,021 | 5.3 | |
2,022 | $ 4.9 | |
Distribution network | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 39 years 1 month | 39 years 1 month |
Gross | $ 55.4 | $ 55.4 |
Accumulated Amortization | (28.4) | (28) |
Net | $ 27 | $ 27.4 |
Non-compete | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 10 years 6 months | 10 years 6 months |
Gross | $ 56.4 | $ 56.4 |
Accumulated Amortization | (56.4) | (56.4) |
Net | $ 0 | $ 0 |
Technology-related | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 11 years 11 months | 11 years 11 months |
Gross | $ 104.7 | $ 104.7 |
Accumulated Amortization | (93.6) | (91.5) |
Net | $ 11.1 | $ 13.2 |
Customer relationships | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 12 years 10 months | 12 years 10 months |
Gross | $ 545.6 | $ 550.8 |
Accumulated Amortization | (432.4) | (427.4) |
Net | $ 113.2 | $ 123.4 |
Other | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 16 years 2 months | 16 years 4 months |
Gross | $ 16.3 | $ 16.5 |
Accumulated Amortization | (14.6) | (14.7) |
Net | $ 1.7 | $ 1.8 |
Credit Agreements (Details)
Credit Agreements (Details) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2015USD ($) | Feb. 28, 2014USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Mar. 21, 2014USD ($) | |
Long term debt | |||||
Principal | $ 835,000,000 | $ 855,000,000 | |||
Debt Issuance Costs | (8,400,000) | (8,800,000) | |||
Debt, Net | 826,600,000 | 846,200,000 | |||
Long term debt net of current maturities | 821,600,000 | 826,200,000 | |||
Revolving Credit Facility | 0 | 0 | |||
Current maturities of long-term debt | (5,000,000) | (20,000,000) | |||
Revolving line of credit and current maturities of long-term debt | $ 5,000,000 | 20,000,000 | |||
Credit agreement | |||||
Long term debt | |||||
Interest spread in basis points (as a percent) | 1.50% | ||||
Maximum leverage ratio | 4.50 | ||||
Debt instrument, leverage ratio, maximum denominator | 1 | ||||
Minimum interest coverage ratio | 2.50 | ||||
Debt instrument, covenant terms interest, coverage ratio, minimum denominator | 1 | ||||
Maximum senior secured leverage ratio | 3 | ||||
Debt instrument, covenant terms, senior secured, leverage ratio for intermediate period maximum, denominator | 1 | ||||
Debt instrument, covenant terms, senior secured leverage ratio without collateral | 3.75 | ||||
Debt instrument, covenant terms, senior secured, leverage ratio for intermediate period maximum without collateral, denominator | 1 | ||||
Dividend payment restriction under credit agreement | |||||
Percentage of consolidated net income of the Company and its subsidiaries accrued on a cumulative basis during the period beginning on January 1, 2010 and ending on the last day of the fiscal quarter | 50.00% | ||||
Percentage of consolidated net deficit of the Company and its subsidiaries accrued on a cumulative basis during the period beginning on January 1, 2010 and ending on the last day of the fiscal quarter | 100.00% | ||||
Percentage of aggregate net proceeds received by the Company subsequent to March 3, 2010 as a contribution to its common equity or from the issuance and sale of its Common Stock | 100.00% | ||||
Credit agreement | Minimum | |||||
Long term debt | |||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.225% | ||||
Credit agreement | Maximum | |||||
Long term debt | |||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.35% | ||||
Senior Secured Term Loan | |||||
Long term debt | |||||
Principal | $ 335,000,000 | 355,000,000 | |||
Debt Issuance Costs | (1,300,000) | (1,400,000) | |||
Debt, Net | 333,700,000 | $ 353,600,000 | $ 400,000,000 | ||
Quarterly principal installment, at commencement | 5,000,000 | ||||
Payment due at maturity | $ 310,000,000 | ||||
Weighted-average interest rate (as a percent) | 2.27% | ||||
Revolving credit facility | |||||
Long term debt | |||||
Maximum borrowing capacity | $ 850,000,000 | $ 600,000,000 | |||
Available borrowing capacity | $ 750,200,000 | ||||
5.375% Senior Notes due March 2022 | |||||
Long term debt | |||||
Debt instrument interest rate (as a percent) | 5.375% | 5.375% | 5.375% | ||
Principal | $ 250,000,000 | $ 250,000,000 | |||
Debt Issuance Costs | (4,100,000) | (4,300,000) | |||
Debt, Net | 245,900,000 | 245,700,000 | |||
Dividend payment restriction under credit agreement | |||||
Debt issued | $ 250,000,000 | ||||
Fair value of debt | $ 260,000,000 | $ 262,000,000 | |||
5.375% Senior Notes due March 2025 | |||||
Long term debt | |||||
Debt instrument interest rate (as a percent) | 5.375% | 5.375% | 5.375% | ||
Principal | $ 250,000,000 | $ 250,000,000 | |||
Debt Issuance Costs | (3,000,000) | (3,100,000) | |||
Debt, Net | 247,000,000 | 246,900,000 | |||
Dividend payment restriction under credit agreement | |||||
Debt issued | $ 250,000,000 | ||||
Fair value of debt | 254,000,000 | $ 263,000,000 | |||
Letter of credit | |||||
Long term debt | |||||
Letters of credit outstanding | $ 99,800,000 | ||||
Letter of credit fees percentage on available borrowing capacity, low end of range (as a percent) | 0.625% | ||||
Letter of credit fees percentage on available borrowing capacity, high end of range (as a percent) | 2.00% | ||||
Credit agreement - dollar-denominated loans | Federal funds rate | |||||
Long term debt | |||||
Interest spread in basis points (as a percent) | 0.50% | ||||
Credit agreement - dollar-denominated loans | LIBOR | |||||
Long term debt | |||||
Interest spread in basis points (as a percent) | 1.00% |
Warranties (Details)
Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Product Warranty Liability [Line Items] | ||
Extended product warranty accrual | $ 29.4 | $ 27.3 |
Changes in warranty liability | ||
Balance at beginning of period | 89.6 | 92.1 |
Warranty provisions | 10.7 | 10 |
Settlements made | (11.9) | (13.9) |
Changes in liability for pre-existing warranties, net | (1.1) | (0.6) |
Premiums received | 2.8 | 2.6 |
Amortization of premiums received | (2.9) | (2.6) |
Foreign currency translation | (1) | (0.5) |
Balance at end of period | $ 86.2 | $ 87.1 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Product warranty term | 6 months | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Product warranty term | 5 years |
Guarantee Arrangements (Details
Guarantee Arrangements (Details) - Indirect guarantee of deferred payment and lease payment agreements member - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantee Obligations | ||
Guarantee obligations, maximum exposure | $ 582.5 | |
Aggregate amount of indebtedness which the Company is a party to through guarantee agreements | 117 | |
Changes in provision for loss on customer guarantees | ||
Balance at beginning of period | 8.4 | $ 5.6 |
Provision for new credit guarantees | 0.6 | 0.8 |
Changes for pre-existing guarantees, net | 0.1 | 0.3 |
Amortization of previous guarantees | (0.5) | (0.9) |
Foreign currency translation | (0.1) | 0 |
Balance at end of period | $ 8.5 | $ 5.8 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |||
Number of shares of common stock authorized for buyback (in shares) | 10,000,000 | ||
Remaining number of shares authorized to be repurchased (in shares) | 7,512,574 | 10,299,198 | |
Treasury stock, shares, acquired (in shares) | 0 | 2,786,624 | |
Treasury stock cumulative value acquired cost method | $ 112 |
Derivative Financial Instrume59
Derivative Financial Instruments and Hedging Activities (Details) $ in Millions | Dec. 31, 2016USD ($) |
Foreign exchange contracts | Cash flow hedges: | |
Open derivative instruments | |
Derivative, notional amount | $ 6 |
Foreign exchange contracts | Not designated as hedging instruments: | |
Open derivative instruments | |
Derivative, notional amount | 81.4 |
Interest rate contracts | Not designated as hedging instruments: | |
Open derivative instruments | |
Derivative, notional amount | $ 19.8 |
Derivative Financial Instrume60
Derivative Financial Instruments and Hedging Activities (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | $ 2 | $ 0.1 |
Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | 1.4 | 0.8 |
Cash flow hedges: | Foreign exchange contracts | Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | 0.1 | 0 |
Cash flow hedges: | Foreign exchange contracts | Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | 0 | 0 |
Not designated as hedging instruments: | Foreign exchange contracts | Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | 1.4 | 0.1 |
Not designated as hedging instruments: | Foreign exchange contracts | Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | 0.2 | 0.4 |
Not designated as hedging instruments: | Interest rate contracts | Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | 0.5 | 0 |
Not designated as hedging instruments: | Interest rate contracts | Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | $ 1.2 | $ 0.4 |
Derivative Financial Instrume61
Derivative Financial Instruments and Hedging Activities (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pre-tax gains (losses) on derivative instruments | ||
Derivative gains (losses) | $ 3.2 | $ (1.4) |
Cash flow hedges: | Foreign exchange contracts | Cost of Sales | ||
Pre-tax gains (losses) on derivative instruments | ||
Derivative gains (losses) | 0.1 | 0 |
Not designated as hedging instruments: | Foreign exchange contracts | Miscellaneous, net | ||
Pre-tax gains (losses) on derivative instruments | ||
Not designated as hedging instruments, gains (losses) | 2.7 | (1.3) |
Not designated as hedging instruments: | Interest rate contracts | Miscellaneous, net | ||
Pre-tax gains (losses) on derivative instruments | ||
Not designated as hedging instruments, gains (losses) | $ 0.4 | $ (0.1) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Fair value measured on recurring basis - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | |
Assets: | |||
SERP plan assets | [1] | $ 21.6 | $ 21.7 |
Foreign currency exchange derivatives | [2] | 1.5 | 0.1 |
Interest rate contracts | [3] | 0.5 | |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0.2 | 0.4 |
Interest rate contracts | [3] | 1.2 | 0.4 |
Level 1 | |||
Assets: | |||
SERP plan assets | [1] | 21.6 | 21.7 |
Foreign currency exchange derivatives | [2] | 0 | 0 |
Interest rate contracts | [3] | 0 | |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0 | 0 |
Interest rate contracts | [3] | 0 | 0 |
Level 2 | |||
Assets: | |||
SERP plan assets | [1] | 0 | 0 |
Foreign currency exchange derivatives | [2] | 1.5 | 0.1 |
Interest rate contracts | [3] | 0.5 | |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0.2 | 0.4 |
Interest rate contracts | [3] | 1.2 | 0.4 |
Level 3 | |||
Assets: | |||
SERP plan assets | [1] | 0 | 0 |
Foreign currency exchange derivatives | [2] | 0 | 0 |
Interest rate contracts | [3] | 0 | |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0 | 0 |
Interest rate contracts | [3] | $ 0 | $ 0 |
[1] | Represents investments in a rabbi trust for the Company's non-qualified supplemental executive retirement plan (SERP). The fair values of these investments are determined using a market approach. Investments include mutual funds for which quoted prices in active markets are available. The Company records changes in the fair value of investments in “Miscellaneous, net” in the Condensed Consolidated Statements of Income. | ||
[2] | Based on observable market transactions of forward currency prices. | ||
[3] | Based on observable market transactions of interest rate swap prices. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock-based compensation expense | $ 7.9 | $ 6 |
Stock-based compensation expense, net of tax | $ 5 | $ 3.8 |
2009 Stock Plan | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Common stock reserved for issuance stock awards (in shares) | 4,469,445 |
Restructuring and Other Charg64
Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring charges | $ 3 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 1.1 | |
Employee Severance and Termination Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0.9 | |
Restructuring provision | 1.1 | |
Utilized - cash | (0.3) | |
Ending Balance | 1.7 | $ 0.9 |
Asset Impairment | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | $ 26.9 | |
Access Equipment | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 0.7 | |
Commercial | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 0.4 | |
Cost of Sales | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 0.7 | |
Cost of Sales | Access Equipment | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 0.7 | |
Cost of Sales | Commercial | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 0 | |
Operating Expenses | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 0.4 | |
Operating Expenses | Access Equipment | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | 0 | |
Operating Expenses | Commercial | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring provision | $ 0.4 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension benefit | ||
Components of net periodic benefit cost | ||
Service cost | $ 3.3 | $ 2.9 |
Interest cost | 4.4 | 4.6 |
Expected return on plan assets | (4.5) | (4.5) |
Amortization of prior service cost | 0.4 | 0.4 |
Amortization of net actuarial loss | 1 | 0.6 |
Net periodic benefit cost | 4.6 | 4 |
Other post-employment benefit | ||
Components of net periodic benefit cost | ||
Service cost | 0.6 | 0.3 |
Interest cost | 0.4 | 0.4 |
Amortization of prior service cost | (0.2) | (0.2) |
Amortization of net actuarial loss | 0.1 | 0 |
Net periodic benefit cost | 0.9 | 0.5 |
Company contributions to fund benefit payments | 0.5 | $ 0.5 |
Defined benefit pension plans estimated future employer contributions in fiscal year | $ 1.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense | $ 5.2 | $ 1.7 | |
Effective income tax rate (as a percent) | 21.80% | 10.60% | |
Income tax expense (benefit), tax credit, discrete items | $ (2.8) | $ (3.7) | |
Effective income tax rate reconciliation, tax credit, research, amount | 2.4 | ||
Effective income tax rate reconciliation, prior year income taxes, amount | 1.3 | ||
Gross unrecognized tax benefits, excluding income tax penalties and interest | 38.6 | $ 37.4 | |
Net unrecognized tax benefits, excluding interest and penalties that would affect the Company's net income if recognized | 19.9 | ||
Interest and penalties benefit (cost) | (0.4) | $ (0.8) | |
Accruals for payment of interest and penalties | 10.4 | ||
Estimated reduction in unrecognized tax benefits due to tax audit resolutions during the next twelve months | 2.8 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 2.1 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 0.7 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ 1,976.5 | |
Total other comprehensive income (loss), net of tax | (29.6) | $ (10.5) |
Balance at end of period | 1,980.3 | |
Employee Pension and Postretirement Benefits, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (73.9) | (46.4) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0.8 | 0.5 |
Total other comprehensive income (loss), net of tax | 0.8 | 0.5 |
Balance at end of period | (73.1) | (45.9) |
Cumulative Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (101.1) | (98.1) |
Other comprehensive income (loss) before reclassifications | (30.4) | (11.2) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income (loss), net of tax | (30.4) | (11.2) |
Balance at end of period | (131.5) | (109.3) |
Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | 0.1 | |
Other comprehensive income (loss) before reclassifications | 0.2 | |
Amounts reclassified from accumulated other comprehensive income | 0 | |
Total other comprehensive income (loss), net of tax | 0.2 | |
Balance at end of period | 0.3 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (175) | (144.4) |
Other comprehensive income (loss) before reclassifications | (30.4) | (11) |
Amounts reclassified from accumulated other comprehensive income | 0.8 | 0.5 |
Total other comprehensive income (loss), net of tax | (29.6) | (10.5) |
Balance at end of period | $ (204.6) | $ (154.9) |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Pension and Postretirement Benefits, Net of Tax | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | $ (1.3) | $ (0.8) |
Tax benefit | 0.5 | 0.3 |
Net of tax | (0.8) | (0.5) |
Prior service costs | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | (0.2) | (0.2) |
Actuarial losses | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | $ (1.1) | $ (0.6) |
Earnings Per Share (Detail 1)
Earnings Per Share (Detail 1) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Earnings available to common shareholders | $ 19.2 | $ 14.6 |
Basic Earnings Per Share: | ||
Weighted-average common shares outstanding (in shares) | 74,280,377 | 74,063,418 |
Diluted Earnings Per Share: | ||
Basic weighted-average common shares outstanding (in shares) | 74,280,377 | 74,063,418 |
Dilutive stock options and other equity-based compensation awards (in shares) | 1,104,540 | 789,798 |
Diluted weighted-average common shares outstanding (in shares) | 75,384,917 | 74,853,216 |
Earnings Per Share (Details 2)
Earnings Per Share (Details 2) - shares | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Stock options (in shares) | 393,975 | 1,697,145 |
Contingencies, Significant Es71
Contingencies, Significant Estimates and Concentrations (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Personal injury actions and other | ||
Loss contingencies | ||
Maximum self-insurance available per claim | $ 5,000,000 | |
Reserve for loss contingencies | 35,200,000 | $ 38,300,000 |
Performance and specialty bonds | ||
Loss contingencies | ||
Commitments and contingencies | 504,900,000 | 503,600,000 |
Standby letters of credit | ||
Loss contingencies | ||
Commitments and contingencies | $ 99,800,000 | $ 110,800,000 |
Business Segment Information (D
Business Segment Information (Details) | 3 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments of entity (in segments) | 4 |
Business Segment Information 73
Business Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales: | ||
Net sales | $ 1,211.4 | $ 1,252 |
Operating income (loss) from continuing operations: | ||
Operating income (loss): | 36.2 | 30.3 |
Interest expense, net of interest income | (13.9) | (14.1) |
Miscellaneous other income | 1.3 | 0 |
Income before income taxes and equity in earnings of unconsolidated affiliates | 23.6 | 16.2 |
Access Equipment | ||
Net sales: | ||
Net sales | 489.2 | 529.8 |
Operating income (loss) from continuing operations: | ||
Operating income (loss): | 24.4 | 20.4 |
Access Equipment | Aerial work platforms | ||
Net sales: | ||
Net sales | 233.7 | 242 |
Access Equipment | Telehandlers | ||
Net sales: | ||
Net sales | 93.3 | 111.8 |
Access Equipment | Other | ||
Net sales: | ||
Net sales | 162.2 | 176 |
Defense | ||
Net sales: | ||
Net sales | 294.2 | 316.9 |
Operating income (loss) from continuing operations: | ||
Operating income (loss): | 23.8 | 23.2 |
Fire & Emergency | ||
Net sales: | ||
Net sales | 229.1 | 205.4 |
Operating income (loss) from continuing operations: | ||
Operating income (loss): | 17 | 10.1 |
Commercial | ||
Net sales: | ||
Net sales | 198.1 | 199.9 |
Operating income (loss) from continuing operations: | ||
Operating income (loss): | 4.6 | 8.9 |
Commercial | Concrete placement | ||
Net sales: | ||
Net sales | 84.4 | 72.3 |
Commercial | Refuse collection | ||
Net sales: | ||
Net sales | 92.2 | 99 |
Commercial | Other | ||
Net sales: | ||
Net sales | 21.5 | 28.6 |
Intersegment eliminations | ||
Net sales: | ||
Net sales | 0.8 | 0 |
Operating Segments | ||
Net sales: | ||
Net sales | 1,211.4 | 1,252 |
Operating Segments | Access Equipment | ||
Net sales: | ||
Net sales | 489.2 | 529.8 |
Operating Segments | Access Equipment | Aerial work platforms | ||
Net sales: | ||
Net sales | 233.7 | 242 |
Operating Segments | Access Equipment | Telehandlers | ||
Net sales: | ||
Net sales | 93.3 | 111.8 |
Operating Segments | Access Equipment | Other | ||
Net sales: | ||
Net sales | 162.2 | 176 |
Operating Segments | Defense | ||
Net sales: | ||
Net sales | 294.5 | 318 |
Operating Segments | Fire & Emergency | ||
Net sales: | ||
Net sales | 232.5 | 207.5 |
Operating Segments | Commercial | ||
Net sales: | ||
Net sales | 199.2 | 200.3 |
Operating Segments | Commercial | Concrete placement | ||
Net sales: | ||
Net sales | 84.4 | 72.3 |
Operating Segments | Commercial | Refuse collection | ||
Net sales: | ||
Net sales | 92.2 | 99 |
Operating Segments | Commercial | Other | ||
Net sales: | ||
Net sales | 22.6 | 29 |
Operating Segments | Intersegment eliminations | ||
Net sales: | ||
Net sales | (4) | (3.6) |
Intersegment eliminations | ||
Net sales: | ||
Net sales | 0 | 0 |
Operating income (loss) from continuing operations: | ||
Operating income (loss): | 0 | 0 |
Intersegment eliminations | Access Equipment | ||
Net sales: | ||
Net sales | 0 | 0 |
Intersegment eliminations | Access Equipment | Aerial work platforms | ||
Net sales: | ||
Net sales | 0 | 0 |
Intersegment eliminations | Access Equipment | Telehandlers | ||
Net sales: | ||
Net sales | 0 | 0 |
Intersegment eliminations | Access Equipment | Other | ||
Net sales: | ||
Net sales | 0 | 0 |
Intersegment eliminations | Defense | ||
Net sales: | ||
Net sales | 0.3 | 1.1 |
Intersegment eliminations | Fire & Emergency | ||
Net sales: | ||
Net sales | 3.4 | 2.1 |
Intersegment eliminations | Commercial | ||
Net sales: | ||
Net sales | 1.1 | 0.4 |
Intersegment eliminations | Commercial | Concrete placement | ||
Net sales: | ||
Net sales | 0 | 0 |
Intersegment eliminations | Commercial | Refuse collection | ||
Net sales: | ||
Net sales | 0 | 0 |
Intersegment eliminations | Commercial | Other | ||
Net sales: | ||
Net sales | 1.1 | 0.4 |
Intersegment eliminations | Intersegment eliminations | ||
Net sales: | ||
Net sales | (4.8) | (3.6) |
Corporate, non-segment | ||
Operating income (loss) from continuing operations: | ||
Operating income (loss): | $ (33.6) | $ (32.3) |
Business Segment Information 74
Business Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | ||
Revenue and assets by geography | ||||
Identifiable assets | $ 4,491 | $ 4,513.8 | ||
Net sales | 1,211.4 | $ 1,252 | ||
United States | ||||
Revenue and assets by geography | ||||
Net sales | 1,018.3 | 904.4 | ||
Other North America | ||||
Revenue and assets by geography | ||||
Net sales | 35.7 | 61.5 | ||
Europe, Africa and Middle East | ||||
Revenue and assets by geography | ||||
Net sales | 71.6 | 200.1 | ||
Rest of the World | ||||
Revenue and assets by geography | ||||
Net sales | 85.8 | 86 | ||
Access Equipment | ||||
Revenue and assets by geography | ||||
Net sales | 489.2 | 529.8 | ||
Defense | ||||
Revenue and assets by geography | ||||
Net sales | 294.2 | 316.9 | ||
Fire & Emergency | ||||
Revenue and assets by geography | ||||
Net sales | 229.1 | 205.4 | ||
Commercial | ||||
Revenue and assets by geography | ||||
Net sales | 198.1 | 199.9 | ||
Operating Segments | ||||
Revenue and assets by geography | ||||
Net sales | 1,211.4 | 1,252 | ||
Operating Segments | Access Equipment | ||||
Revenue and assets by geography | ||||
Identifiable assets | 2,463.3 | 2,571.2 | ||
Net sales | 489.2 | 529.8 | ||
Operating Segments | Access Equipment | United States | ||||
Revenue and assets by geography | ||||
Identifiable assets | 1,783.6 | 1,856 | ||
Operating Segments | Access Equipment | Europe | ||||
Revenue and assets by geography | ||||
Identifiable assets | [1] | 483.7 | 521.5 | |
Operating Segments | Access Equipment | Rest of the World | ||||
Revenue and assets by geography | ||||
Identifiable assets | 196 | 193.7 | ||
Operating Segments | Defense | ||||
Revenue and assets by geography | ||||
Identifiable assets | 571.1 | 525.2 | ||
Net sales | 294.5 | 318 | ||
Operating Segments | Defense | United States | ||||
Revenue and assets by geography | ||||
Identifiable assets | 568.5 | 522.2 | ||
Operating Segments | Defense | Rest of the World | ||||
Revenue and assets by geography | ||||
Identifiable assets | 2.6 | 3 | ||
Operating Segments | Fire & Emergency | ||||
Revenue and assets by geography | ||||
Net sales | 232.5 | 207.5 | ||
Operating Segments | Fire & Emergency | United States | ||||
Revenue and assets by geography | ||||
Identifiable assets | 518.5 | 522.7 | ||
Operating Segments | Commercial | ||||
Revenue and assets by geography | ||||
Identifiable assets | 386.4 | 391.8 | ||
Net sales | 199.2 | $ 200.3 | ||
Operating Segments | Commercial | United States | ||||
Revenue and assets by geography | ||||
Identifiable assets | 355.1 | 358.4 | ||
Operating Segments | Commercial | Rest of the World | ||||
Revenue and assets by geography | ||||
Identifiable assets | [1] | 31.3 | 33.4 | |
Corporate, non-segment | ||||
Revenue and assets by geography | ||||
Identifiable assets | 551.7 | 502.9 | ||
Corporate, non-segment | United States | ||||
Revenue and assets by geography | ||||
Identifiable assets | [2] | 457.1 | 408.3 | |
Corporate, non-segment | Rest of the World | ||||
Revenue and assets by geography | ||||
Identifiable assets | [3] | $ 94.6 | $ 94.6 | |
[1] | Includes investments in unconsolidated affiliates. | |||
[2] | Primarily includes cash and short-term investments. | |||
[3] | Includes a corporate-led manufacturing facility that supports multiple operating segments. |
Separate Financial Informatio75
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Consolidating Statements of Income | ||
Net sales | $ 1,211.4 | $ 1,252 |
Cost of sales | 1,011.7 | 1,069.2 |
Gross income | 199.7 | 182.8 |
Selling, general and administrative | 151 | 139.3 |
Amortization of purchased intangibles | 12.5 | 13.2 |
Operating income | 36.2 | 30.3 |
Interest expense | (14.7) | (14.6) |
Interest income | 0.8 | 0.5 |
Miscellaneous, net | 1.3 | 0 |
Income before income taxes and equity in earnings of unconsolidated affiliates | 23.6 | 16.2 |
Provision for income taxes | 5.2 | 1.7 |
Income before equity in earnings of unconsolidated affiliates | 18.4 | 14.5 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Equity in earnings of unconsolidated affiliates | 0.8 | 0.1 |
Net income | 19.2 | 14.6 |
Other comprehensive income (loss), net of tax | (29.6) | (10.5) |
Comprehensive income (loss) | (10.4) | 4.1 |
Oshkosh Corporation | ||
Condensed Consolidating Statements of Income | ||
Net sales | 0 | 0 |
Cost of sales | (0.8) | 0.3 |
Gross income | 0.8 | (0.3) |
Selling, general and administrative | 31.6 | 23.6 |
Amortization of purchased intangibles | 0 | 0 |
Operating income | (30.8) | (23.9) |
Interest expense | (13.6) | (59.6) |
Interest income | 0.7 | 0.5 |
Miscellaneous, net | 22.5 | 14.9 |
Income before income taxes and equity in earnings of unconsolidated affiliates | (21.2) | (68.1) |
Provision for income taxes | (5.1) | (5.8) |
Income before equity in earnings of unconsolidated affiliates | (16.1) | (62.3) |
Equity in earnings of consolidated subsidiaries | 35.3 | 77.2 |
Equity in earnings of unconsolidated affiliates | 0 | (0.3) |
Net income | 19.2 | 14.6 |
Other comprehensive income (loss), net of tax | (29.6) | (10.5) |
Comprehensive income (loss) | (10.4) | 4.1 |
Guarantor Subsidiaries | ||
Condensed Consolidating Statements of Income | ||
Net sales | 1,049.8 | 1,056.8 |
Cost of sales | 874.5 | 899 |
Gross income | 175.3 | 157.8 |
Selling, general and administrative | 91.5 | 89.3 |
Amortization of purchased intangibles | 9.6 | 9.8 |
Operating income | 74.2 | 58.7 |
Interest expense | (13.6) | (14.7) |
Interest income | 4.1 | 16.2 |
Miscellaneous, net | (52.2) | (41.4) |
Income before income taxes and equity in earnings of unconsolidated affiliates | 12.5 | 18.8 |
Provision for income taxes | 3 | 1.6 |
Income before equity in earnings of unconsolidated affiliates | 9.5 | 17.2 |
Equity in earnings of consolidated subsidiaries | 15.7 | 18.1 |
Equity in earnings of unconsolidated affiliates | 0 | 0 |
Net income | 25.2 | 35.3 |
Other comprehensive income (loss), net of tax | (0.9) | (2.9) |
Comprehensive income (loss) | 24.3 | 32.4 |
Non-Guarantor Subsidiaries | ||
Condensed Consolidating Statements of Income | ||
Net sales | 202.9 | 220.4 |
Cost of sales | 179.5 | 195.1 |
Gross income | 23.4 | 25.3 |
Selling, general and administrative | 27.9 | 26.4 |
Amortization of purchased intangibles | 2.9 | 3.4 |
Operating income | (7.4) | (4.5) |
Interest expense | (0.5) | (0.7) |
Interest income | 9 | 44.2 |
Miscellaneous, net | 31 | 26.5 |
Income before income taxes and equity in earnings of unconsolidated affiliates | 32.1 | 65.5 |
Provision for income taxes | 7.2 | 5.9 |
Income before equity in earnings of unconsolidated affiliates | 24.9 | 59.6 |
Equity in earnings of consolidated subsidiaries | (10.7) | (6.4) |
Equity in earnings of unconsolidated affiliates | 0.8 | 0.4 |
Net income | 15 | 53.6 |
Other comprehensive income (loss), net of tax | (29.2) | (8.1) |
Comprehensive income (loss) | (14.2) | 45.5 |
Eliminations | ||
Condensed Consolidating Statements of Income | ||
Net sales | (41.3) | (25.2) |
Cost of sales | (41.5) | (25.2) |
Gross income | 0.2 | 0 |
Selling, general and administrative | 0 | 0 |
Amortization of purchased intangibles | 0 | 0 |
Operating income | 0.2 | 0 |
Interest expense | 13 | 60.4 |
Interest income | (13) | (60.4) |
Miscellaneous, net | 0 | 0 |
Income before income taxes and equity in earnings of unconsolidated affiliates | 0.2 | 0 |
Provision for income taxes | 0.1 | 0 |
Income before equity in earnings of unconsolidated affiliates | 0.1 | 0 |
Equity in earnings of consolidated subsidiaries | (40.3) | (88.9) |
Equity in earnings of unconsolidated affiliates | 0 | 0 |
Net income | (40.2) | (88.9) |
Other comprehensive income (loss), net of tax | 30.1 | 11 |
Comprehensive income (loss) | $ (10.1) | $ (77.9) |
Separate Financial Informatio76
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 369.6 | $ 321.9 | $ 33.7 | $ 42.9 |
Receivables, net | 699 | 1,021.9 | ||
Inventories, net | 1,208.7 | 979.8 | ||
Other current assets | 118.7 | 93.9 | ||
Total current assets | 2,396 | 2,417.5 | ||
Investment in and advances to consolidated subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Intangible assets, net | 1,531.7 | 1,557 | ||
Other long-term assets | 563.3 | 539.3 | ||
Total assets | 4,491 | 4,513.8 | ||
Current liabilities: | ||||
Accounts payable | 477.7 | 466.1 | ||
Customer advances | 502.8 | 471.8 | ||
Other current liabilities | 357.5 | 429.7 | ||
Total current liabilities | 1,338 | 1,367.6 | ||
Long-term debt, less current maturities | 821.6 | 826.2 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 351.1 | 343.5 | ||
Total shareholders' equity | 1,980.3 | 1,976.5 | ||
Total liabilities and shareholders' equity | 4,491 | 4,513.8 | ||
Oshkosh Corporation | ||||
Current assets: | ||||
Cash and cash equivalents | 323.5 | 285.4 | 12.2 | 14.8 |
Receivables, net | 18.7 | 13 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 53.4 | 28 | ||
Total current assets | 395.6 | 326.4 | ||
Investment in and advances to consolidated subsidiaries | 2,746.1 | 6,148.2 | ||
Intercompany receivables | 47.9 | 48 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 83.9 | 87.3 | ||
Total assets | 3,273.5 | 6,609.9 | ||
Current liabilities: | ||||
Accounts payable | 12.4 | 13.3 | ||
Customer advances | 0 | 0 | ||
Other current liabilities | 61.8 | 85.5 | ||
Total current liabilities | 74.2 | 98.8 | ||
Long-term debt, less current maturities | 821.6 | 826.2 | ||
Intercompany payables | 325.8 | 3,639.4 | ||
Other long-term liabilities | 71.6 | 69 | ||
Total shareholders' equity | 1,980.3 | 1,976.5 | ||
Total liabilities and shareholders' equity | 3,273.5 | 6,609.9 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 4.5 | 1.7 | 5.6 | 6.3 |
Receivables, net | 539.2 | 734.3 | ||
Inventories, net | 845.5 | 679.1 | ||
Other current assets | 58.6 | 58.5 | ||
Total current assets | 1,447.8 | 1,473.6 | ||
Investment in and advances to consolidated subsidiaries | 1,274.4 | 1,253.6 | ||
Intercompany receivables | 231.9 | 1,353.7 | ||
Intangible assets, net | 936.5 | 947.5 | ||
Other long-term assets | 228.5 | 232.7 | ||
Total assets | 4,119.1 | 5,261.1 | ||
Current liabilities: | ||||
Accounts payable | 378.5 | 375 | ||
Customer advances | 495.9 | 465.8 | ||
Other current liabilities | 211.4 | 246.5 | ||
Total current liabilities | 1,085.8 | 1,087.3 | ||
Long-term debt, less current maturities | 0 | 0 | ||
Intercompany payables | 1,793.5 | 2,346.5 | ||
Other long-term liabilities | 154.3 | 147.9 | ||
Total shareholders' equity | 1,085.5 | 1,679.4 | ||
Total liabilities and shareholders' equity | 4,119.1 | 5,261.1 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 41.6 | 34.8 | 15.9 | 21.8 |
Receivables, net | 174.1 | 319.6 | ||
Inventories, net | 363.2 | 300.7 | ||
Other current assets | 6.7 | 7.4 | ||
Total current assets | 585.6 | 662.5 | ||
Investment in and advances to consolidated subsidiaries | (112.8) | (120) | ||
Intercompany receivables | 1,887.4 | 4,632.2 | ||
Intangible assets, net | 595.2 | 609.5 | ||
Other long-term assets | 250.9 | 219.3 | ||
Total assets | 3,206.3 | 6,003.5 | ||
Current liabilities: | ||||
Accounts payable | 119.5 | 122.6 | ||
Customer advances | 6.9 | 6 | ||
Other current liabilities | 84.6 | 97.9 | ||
Total current liabilities | 211 | 226.5 | ||
Long-term debt, less current maturities | 0 | 0 | ||
Intercompany payables | 47.9 | 48 | ||
Other long-term liabilities | 125.2 | 126.6 | ||
Total shareholders' equity | 2,822.2 | 5,602.4 | ||
Total liabilities and shareholders' equity | 3,206.3 | 6,003.5 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Receivables, net | (33) | (45) | ||
Inventories, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (33) | (45) | ||
Investment in and advances to consolidated subsidiaries | (3,907.7) | (7,281.8) | ||
Intercompany receivables | (2,167.2) | (6,033.9) | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (6,107.9) | (13,360.7) | ||
Current liabilities: | ||||
Accounts payable | (32.7) | (44.8) | ||
Customer advances | 0 | 0 | ||
Other current liabilities | (0.3) | (0.2) | ||
Total current liabilities | (33) | (45) | ||
Long-term debt, less current maturities | 0 | 0 | ||
Intercompany payables | (2,167.2) | (6,033.9) | ||
Other long-term liabilities | 0 | 0 | ||
Total shareholders' equity | (3,907.7) | (7,281.8) | ||
Total liabilities and shareholders' equity | $ (6,107.9) | $ (13,360.7) |
Separate Financial Informatio77
Separate Financial Information of Subsidiary Guarantors of Indebtedness Details 3 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | $ 83.8 | $ 73.2 |
Additions to property, plant and equipment | (14.2) | (21.3) |
Additions to equipment held for rental | (12.9) | (15) |
Proceeds from sale of equipment held for rental | 5.3 | 18.7 |
Intercompany investing | 0 | 0 |
Other investing activities | (0.2) | (0.6) |
Net cash provided (used) by investing activities | (22) | (18.2) |
Proceeds from issuance of debt (original maturities greater than three months) | 0 | 153.6 |
Repayments of debt (original maturities greater than three months) | (20) | (135) |
Net increase in short-term debt | 0 | 28.2 |
Repurchases of Common Stock | (3) | (101.5) |
Dividends paid | (15.6) | (14.1) |
Proceeds from exercise of stock options | 26.2 | 1.4 |
Excess tax benefit from stock-based compensation | 0 | 0.8 |
Intercompany financing | 0 | 0 |
Net cash used by financing activities | (12.4) | (66.6) |
Effect of exchange rate changes on cash | (1.7) | 2.4 |
Increase (decrease) in cash and cash equivalents | 47.7 | (9.2) |
Cash and cash equivalents at beginning of period | 321.9 | 42.9 |
Cash and cash equivalents at end of period | 369.6 | 33.7 |
Oshkosh Corporation | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | (42.8) | (83.3) |
Additions to property, plant and equipment | (0.4) | (7) |
Additions to equipment held for rental | 0 | 0 |
Proceeds from sale of equipment held for rental | 0 | 0 |
Intercompany investing | 0 | 0 |
Other investing activities | (0.2) | (0.5) |
Net cash provided (used) by investing activities | (0.6) | (7.5) |
Proceeds from issuance of debt (original maturities greater than three months) | 150 | |
Repayments of debt (original maturities greater than three months) | (20) | (135) |
Net increase in short-term debt | 28.2 | |
Repurchases of Common Stock | (3) | (101.5) |
Dividends paid | (15.6) | (14.1) |
Proceeds from exercise of stock options | 26.2 | 1.4 |
Excess tax benefit from stock-based compensation | 0.8 | |
Intercompany financing | 93.9 | 158.4 |
Net cash used by financing activities | 81.5 | 88.2 |
Effect of exchange rate changes on cash | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 38.1 | (2.6) |
Cash and cash equivalents at beginning of period | 285.4 | 14.8 |
Cash and cash equivalents at end of period | 323.5 | 12.2 |
Guarantor Subsidiaries | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | 67 | 86.8 |
Additions to property, plant and equipment | (9.1) | (5.1) |
Additions to equipment held for rental | 0 | 0 |
Proceeds from sale of equipment held for rental | 0 | 0.6 |
Intercompany investing | 498.1 | (76.6) |
Other investing activities | 0 | (0.1) |
Net cash provided (used) by investing activities | 489 | (81.2) |
Proceeds from issuance of debt (original maturities greater than three months) | 0 | |
Repayments of debt (original maturities greater than three months) | 0 | 0 |
Net increase in short-term debt | 0 | |
Repurchases of Common Stock | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | |
Intercompany financing | (553) | (6.5) |
Net cash used by financing activities | (553) | (6.5) |
Effect of exchange rate changes on cash | (0.2) | 0.2 |
Increase (decrease) in cash and cash equivalents | 2.8 | (0.7) |
Cash and cash equivalents at beginning of period | 1.7 | 6.3 |
Cash and cash equivalents at end of period | 4.5 | 5.6 |
Non-Guarantor Subsidiaries | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | 59.6 | 69.7 |
Additions to property, plant and equipment | (4.7) | (9.2) |
Additions to equipment held for rental | (12.9) | (15) |
Proceeds from sale of equipment held for rental | 5.3 | 18.1 |
Intercompany investing | (39) | (75.3) |
Other investing activities | 0 | 0 |
Net cash provided (used) by investing activities | (51.3) | (81.4) |
Proceeds from issuance of debt (original maturities greater than three months) | 3.6 | |
Repayments of debt (original maturities greater than three months) | 0 | 0 |
Net increase in short-term debt | 0 | |
Repurchases of Common Stock | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | |
Intercompany financing | 0 | 0 |
Net cash used by financing activities | 0 | 3.6 |
Effect of exchange rate changes on cash | (1.5) | 2.2 |
Increase (decrease) in cash and cash equivalents | 6.8 | (5.9) |
Cash and cash equivalents at beginning of period | 34.8 | 21.8 |
Cash and cash equivalents at end of period | 41.6 | 15.9 |
Eliminations | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | 0 | 0 |
Additions to property, plant and equipment | 0 | 0 |
Additions to equipment held for rental | 0 | 0 |
Proceeds from sale of equipment held for rental | 0 | 0 |
Intercompany investing | (459.1) | 151.9 |
Other investing activities | 0 | 0 |
Net cash provided (used) by investing activities | (459.1) | 151.9 |
Proceeds from issuance of debt (original maturities greater than three months) | 0 | |
Repayments of debt (original maturities greater than three months) | 0 | 0 |
Net increase in short-term debt | 0 | |
Repurchases of Common Stock | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | |
Intercompany financing | 459.1 | (151.9) |
Net cash used by financing activities | 459.1 | (151.9) |
Effect of exchange rate changes on cash | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events - USD ($) $ in Millions | Jan. 26, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Expected restructuring charges | $ 3 | ||
Facility Closing | Access equipment | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Non-cash charges | $ 10 | ||
Facility Closing | Access equipment | Minimum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Expected restructuring charges | 45 | ||
Facility Closing | Access equipment | Maximum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Expected restructuring charges | $ 50 | ||
Facility Closing | Expected implementation costs | Access equipment | |||
Subsequent Event [Line Items] | |||
Expected restructuring charges | $ 43 |