Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2018 | Apr. 19, 2018 | |
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 | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 73,918,841 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,886.4 | $ 1,618.3 | $ 3,472.7 | $ 2,829.7 |
Cost of sales | 1,551 | 1,357 | 2,895.1 | 2,368.7 |
Gross income | 335.4 | 261.3 | 577.6 | 461 |
Operating expenses: | ||||
Selling, general and administrative | 170.3 | 169.8 | 328.1 | 320.8 |
Amortization of purchased intangibles | 9.2 | 11.1 | 19.8 | 23.6 |
Total operating expenses | 179.5 | 180.9 | 347.9 | 344.4 |
Operating income | 155.9 | 80.4 | 229.7 | 116.6 |
Other income (expense): | ||||
Interest expense | (16.1) | (15.1) | (31.5) | (29.8) |
Interest income | 8.1 | 1 | 9.8 | 1.8 |
Miscellaneous, net | (0.8) | 1.2 | (0.3) | 2.5 |
Income before income taxes and earnings of unconsolidated affiliates | 147.1 | 67.5 | 207.7 | 91.1 |
Provision for income taxes | 36.2 | 23.6 | 40.9 | 28.8 |
Income before earnings of unconsolidated affiliates | 110.9 | 43.9 | 166.8 | 62.3 |
Equity in earnings (losses) of unconsolidated affiliates | (0.1) | 0.4 | 0.4 | 1.2 |
Net income | $ 110.8 | $ 44.3 | $ 167.2 | $ 63.5 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 1.49 | $ 0.59 | $ 2.24 | $ 0.85 |
Diluted earnings per share (in dollars per share) | 1.47 | 0.58 | 2.21 | 0.84 |
Cash dividends declared per share on common stock (in dollars per share) | $ 0.24 | $ 0.21 | $ 0.48 | $ 0.42 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 110.8 | $ 44.3 | $ 167.2 | $ 63.5 |
Other comprehensive income (loss), net of tax: | ||||
Employee pension and postretirement benefits | 0.5 | 0.8 | 1 | 1.6 |
Currency translation adjustments | 16.5 | 10.7 | 18.6 | (19.7) |
Change in fair value of derivative instruments | 0.3 | 0 | 0.3 | 0 |
Total other comprehensive income (loss), net of tax | 17.3 | 11.5 | 19.9 | (18.1) |
Comprehensive income | $ 128.1 | $ 55.8 | $ 187.1 | $ 45.4 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 287.9 | $ 447 |
Receivables, net | 1,457.3 | 1,306.3 |
Inventories, net | 1,321.8 | 1,198.4 |
Other current assets | 86.6 | 88.1 |
Total current assets | 3,153.6 | 3,039.8 |
Property, plant and equipment, net | 458.7 | 469.9 |
Goodwill | 1,020.4 | 1,013 |
Purchased intangible assets, net | 490.4 | 507.8 |
Other long-term assets | 71.4 | 68.4 |
Total assets | 5,194.5 | 5,098.9 |
Current liabilities: | ||
Revolving credit facilities and current maturities of long-term debt | 8.7 | 23 |
Accounts payable | 706 | 651 |
Customer advances | 566.2 | 513.4 |
Payroll-related obligations | 154.9 | 191.8 |
Other current liabilities | 304 | 303.9 |
Total current liabilities | 1,739.8 | 1,683.1 |
Long-term debt, less current maturities | 818.8 | 807.9 |
Other long-term liabilities | 286.3 | 300.5 |
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 | 804.3 | 802.2 |
Retained earnings | 2,531.1 | 2,399.8 |
Accumulated other comprehensive loss | (105.1) | (125) |
Common Stock in treasury, at cost (18,185,291 and 17,088,224 shares, respectively) | (881.6) | (770.5) |
Total shareholders’ equity | 2,349.6 | 2,307.4 |
Total liabilities and shareholders' equity | $ 5,194.5 | $ 5,098.9 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Sep. 30, 2017 |
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 | 18,185,291 | 17,088,224 |
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, 2016 | $ 1,976.5 | $ 0.9 | $ 782.3 | $ 2,177 | $ (175) | $ (808.7) |
Changes in Equity | ||||||
Net income | 63.5 | 63.5 | ||||
Employee pension and postretirement benefits, net of tax | 1.6 | 1.6 | ||||
Currency translation adjustments | (19.7) | (19.7) | ||||
Cash dividends | (31.3) | (31.3) | ||||
Exercise of stock options | 33.2 | 4.3 | 28.9 | |||
Stock-based compensation expense | 12.2 | 12.2 | ||||
Payment of earned performance shares | 0 | (1.3) | 1.3 | |||
Shares tendered for taxes on stock-based compensation | (3) | (3) | ||||
Other | 0.3 | (3.3) | 3.6 | |||
Balance at Mar. 31, 2017 | 2,033.3 | 0.9 | 794.2 | 2,209.2 | (193.1) | (777.9) |
Balance at Sep. 30, 2017 | 2,307.4 | 0.9 | 802.2 | 2,399.8 | (125) | (770.5) |
Changes in Equity | ||||||
Net income | 167.2 | 167.2 | ||||
Employee pension and postretirement benefits, net of tax | 1 | 1 | ||||
Currency translation adjustments | 18.6 | 18.6 | ||||
Cash dividends | (35.9) | (35.9) | ||||
Repurchases of Common Stock | (128.7) | (128.7) | ||||
Exercise of stock options | 12.5 | (3.1) | 15.6 | |||
Stock-based compensation expense | 13.8 | 13.8 | ||||
Payment of earned performance shares | 0 | (2.7) | 2.7 | |||
Shares tendered for taxes on stock-based compensation | (7.5) | (7.5) | ||||
Other | 1.2 | (5.9) | 6.8 | |||
Balance at Mar. 31, 2018 | $ 2,349.6 | $ 0.9 | $ 804.3 | $ 2,531.1 | $ (105.1) | $ (881.6) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Employee pension and postretirement benefits, net of tax | $ 0.4 | $ 0.9 |
Cash dividends declared per share on common stock (in dollars per share) | $ 0.48 | $ 0.42 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net income | $ 167.2 | $ 63.5 |
Depreciation and amortization | 61.3 | 64.4 |
Stock-based compensation expense | 13.8 | 12.2 |
Deferred income taxes | (21.8) | 1 |
Gain on sale of assets | (0.6) | (4.2) |
Foreign currency transaction (gains) losses | (0.7) | 0.2 |
Other non-cash adjustments | 1.1 | 0.5 |
Changes in operating assets and liabilities | (176.4) | 10.5 |
Net cash provided by operating activities | 43.9 | 148.1 |
Investing activities: | ||
Additions to property, plant and equipment | (37.9) | (28) |
Additions to equipment held for rental | (2.9) | (24.6) |
Proceeds from sale of equipment held for rental | 4.4 | 19.8 |
Other investing activities | (0.5) | (0.9) |
Net cash used by investing activities | (36.9) | (33.7) |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 13.1 | 0 |
Repayments of debt (original maturities greater than three months) | (17.9) | (20) |
Repurchases of Common Stock | (136.2) | (3) |
Dividends paid | (35.9) | (31.3) |
Proceeds from exercise of stock options | 12.5 | 33.2 |
Net cash used by financing activities | (164.4) | (21.1) |
Effect of exchange rate changes on cash | (1.7) | (1.8) |
Increase (decrease) in cash and cash equivalents | (159.1) | 91.5 |
Cash and cash equivalents at beginning of period | 447 | 321.9 |
Cash and cash equivalents at end of period | 287.9 | 413.4 |
Supplemental disclosures: | ||
Cash paid for interest | 29.7 | 28.4 |
Cash paid for income taxes | $ 24 | $ 22.2 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2018 | |
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, 2017 . 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 | 6 Months Ended |
Mar. 31, 2018 | |
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 new standard is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company plans to adopt the standard on October 1, 2018. The Company has elected to adopt the new revenue recognition standard following the modified retrospective approach, as permitted by the standard. This approach will result in an adjustment to retained earnings for the cumulative effect of initially applying the new standard on its adoption date. The Company has assembled a cross-functional team with representation from all segments that is dedicated to the implementation of this new accounting standard. The team, with the support of a project management office, is focused on executing a multi-phase plan that will culminate with the adoption of the standard. The cross-functional team continued its focus on concluding and documenting key accounting positions during the three months ended March 31, 2018. The Company's Audit Committee has been receiving regular briefings on the implementation team's progress and potential implications related to adoption of the new standard. The internal control and process changes necessary to comply with the requirements of the new standard as well as its financial impact remain under evaluation. 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 adopted ASU 2015-11 on October 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which 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 Company will be required to adopt ASU 2016-02 and related amendments to the standard as of October 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-02 on the Company's consolidated 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. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company's consolidated 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 consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. The standard simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The standard also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The Company will be required to adopt ASU 2017-04 as of October 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-04 on the Company's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard requires that an entity report the service cost component of net periodic pension and postretirement cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The remaining components of net benefit costs are required to be presented in the income statement separately from the service component and outside a subtotal of income from operations, if one is presented. The amendment further allows only the service cost component of net periodic pension and postretirement costs to be eligible for capitalization, when applicable. The Company will be required to adopt ASU 2017-07 as of October 1, 2018. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-07 on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities . The standard more closely aligns hedge accounting with risk management strategies, simplifies the application of hedge accounting, and increases transparency as to the scope and results of hedging programs. The standard expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The Company adopted ASU 2017-12 on October 1, 2017. The adoption of ASU 2017-12 did not have a material impact on the Company's consolidated financial statements. |
Receivables
Receivables | 6 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following (in millions): March 31, September 30, 2018 2017 U.S. government: Amounts billed $ 78.9 $ 137.8 Costs and profits not billed 206.1 137.9 285.0 275.7 Other trade receivables 1,128.8 985.4 Finance receivables 28.6 5.8 Notes receivable 7.7 34.2 Other receivables 46.2 46.3 1,496.3 1,347.4 Less allowance for doubtful accounts (12.9 ) (18.3 ) $ 1,483.4 $ 1,329.1 Classification of receivables in the Condensed Consolidated Balance Sheets consisted of the following (in millions): March 31, September 30, 2018 2017 Current receivables $ 1,457.3 $ 1,306.3 Long-term receivables (included in “Other long-term assets”) 26.1 22.8 $ 1,483.4 $ 1,329.1 Finance and notes receivable accrual status consisted of the following (in millions): Finance Receivables Notes Receivable March 31, 2018 September 30, 2017 March 31, 2018 September 30, 2017 Receivables on nonaccrual status $ 3.6 $ 3.7 $ 3.8 $ 21.3 Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 17.0 2.1 — — Allowance for doubtful accounts (0.3 ) — — — Receivables subject to specific reserves 11.6 3.7 7.7 34.2 Allowance for doubtful accounts (1.4 ) (1.5 ) (3.8 ) (10.0 ) 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 March 31, 2018 , approximately 76% of the notes receivable balance outstanding was due from two 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. During the three months ended March 31, 2018 , the Company received $19.6 million from a customer that had previously been accounted for under the cost recovery method of accounting and on non-accrual status. The payment resulted in the recognition of $11.5 million of margin, the reversal of $2.4 million of bad debt expense and the recognition of $6.6 million of interest income for the three and six months ended March 31, 2018 . 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 March 31, 2018 , restructured finance and notes receivables were $2.9 million and $3.8 million , respectively. Losses on troubled debt restructurings were not significant during the three and six months ended March 31, 2018 and 2017 . Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance for doubtful accounts at beginning of period $ 1.5 $ 6.1 $ 6.9 $ 14.5 $ 2.1 $ 11.6 $ 6.5 $ 20.2 Provision for doubtful accounts, net of recoveries 0.2 (4.5 ) 0.6 (3.7 ) 0.4 (0.1 ) 0.1 0.4 Charge-off of accounts — 2.0 (0.1 ) 1.9 — (0.4 ) (0.8 ) (1.2 ) Foreign currency translation — 0.2 — 0.2 — 0.2 (0.1 ) 0.1 Allowance for doubtful accounts at end of period $ 1.7 $ 3.8 $ 7.4 $ 12.9 $ 2.5 $ 11.3 $ 5.7 $ 19.5 Six Months Ended March 31, 2018 Six Months Ended March 31, 2017 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance for doubtful accounts at beginning of period $ 1.5 $ 10.0 $ 6.8 $ 18.3 $ 1.0 $ 13.0 $ 7.2 $ 21.2 Provision for doubtful accounts, net of recoveries 0.2 (8.5 ) 0.8 (7.5 ) 1.5 (0.7 ) (0.4 ) 0.4 Charge-off of accounts — 2.0 (0.2 ) 1.8 — (0.5 ) (1.0 ) (1.5 ) Foreign currency translation — 0.3 — 0.3 — (0.5 ) (0.1 ) (0.6 ) Allowance for doubtful accounts at end of period $ 1.7 $ 3.8 $ 7.4 $ 12.9 $ 2.5 $ 11.3 $ 5.7 $ 19.5 |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): March 31, September 30, 2018 2017 Raw materials $ 642.4 $ 578.1 Partially finished products 359.1 336.6 Finished products 434.5 398.1 Inventories at FIFO cost 1,436.0 1,312.8 Less: Progress/performance-based payments on U.S. government contracts (27.3 ) (31.6 ) Excess of FIFO cost over LIFO cost (86.9 ) (82.8 ) $ 1,321.8 $ 1,198.4 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 | 6 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in millions): March 31, September 30, 2018 2017 Land and land improvements $ 59.0 $ 58.5 Buildings 302.0 298.5 Machinery and equipment 664.7 652.2 Software and related costs 156.8 149.6 Equipment on operating lease to others 27.8 30.0 1,210.3 1,188.8 Less accumulated depreciation (751.6 ) (718.9 ) $ 458.7 $ 469.9 Depreciation expense was $19.9 million and $20.4 million for the three months ended March 31, 2018 and 2017 , respectively. Depreciation expense was $40.0 million and $39.3 million for the six months ended March 31, 2018 and 2017 , 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 March 31, 2018 and September 30, 2017 was $18.6 million and $21.6 million , respectively. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 6 Months Ended |
Mar. 31, 2018 | |
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 six months ended March 31, 2018 (in millions): Access Equipment Fire & Emergency Commercial Total Net goodwill at September 30, 2017 $ 885.9 $ 106.1 $ 21.0 $ 1,013.0 Foreign currency translation 7.5 — (0.1 ) 7.4 Net goodwill at March 31, 2018 $ 893.4 $ 106.1 $ 20.9 $ 1,020.4 The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions): March 31, 2018 September 30, 2017 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access equipment $ 1,825.5 $ (932.1 ) $ 893.4 $ 1,818.0 $ (932.1 ) $ 885.9 Fire & emergency 108.1 (2.0 ) 106.1 108.1 (2.0 ) 106.1 Commercial 196.8 (175.9 ) 20.9 196.9 (175.9 ) 21.0 $ 2,130.4 $ (1,110.0 ) $ 1,020.4 $ 2,123.0 $ (1,110.0 ) $ 1,013.0 Details of the Company’s total purchased intangible assets are as follows (in millions): March 31, 2018 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (30.2 ) $ 25.2 Technology-related 11.9 104.8 (101.5 ) 3.3 Customer relationships 12.8 555.0 (484.9 ) 70.1 Other 16.5 16.6 (14.8 ) 1.8 14.7 731.8 (631.4 ) 100.4 Non-amortizable trade names 390.0 — 390.0 $ 1,121.8 $ (631.4 ) $ 490.4 September 30, 2017 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (29.5 ) $ 25.9 Technology-related 11.9 104.7 (99.7 ) 5.0 Customer relationships 12.8 555.0 (467.6 ) 87.4 Other 16.3 16.4 (14.7 ) 1.7 14.4 731.5 (611.5 ) 120.0 Non-amortizable trade names 387.8 — 387.8 $ 1,119.3 $ (611.5 ) $ 507.8 The estimated future amortization expense of purchased intangible assets for the remainder of fiscal 2018 and the five years succeeding September 30, 2018 are as follows: 2018 (remaining six months) - $18.5 million ; 2019 - $36.9 million ; 2020 - $11.0 million ; 2021 - $5.3 million ; 2022 - $4.9 million ; and 2023 - $3.5 million . |
Credit Agreements
Credit Agreements | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreements The Company was obligated under the following debt instruments (in millions): March 31, 2018 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 325.0 $ (0.5 ) $ 324.5 5.375% Senior Notes due March 2022 250.0 (3.1 ) 246.9 5.375% Senior Notes due March 2025 250.0 (2.6 ) 247.4 $ 825.0 $ (6.2 ) 818.8 Less current maturities — $ 818.8 Other short-term debt $ 8.7 Current maturities of long-term debt — $ 8.7 September 30, 2017 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 335.0 $ (0.8 ) $ 334.2 5.375% Senior Notes due March 2022 250.0 (3.5 ) 246.5 5.375% Senior Notes due March 2025 250.0 (2.8 ) 247.2 $ 835.0 $ (7.1 ) 827.9 Less current maturities (20.0 ) $ 807.9 Other short-term debt $ 3.0 Current maturities of long-term debt 20.0 $ 23.0 In March 2014, the Company entered into an Amended and Restated Credit Agreement with various lenders (the “Credit Agreement”). The Credit Agreement provided for (i) a revolving credit facility (Revolving Credit Facility) that matured 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 March 31, 2018 , outstanding letters of credit of $89.1 million reduced available capacity under the Revolving Credit Facility to $760.9 million . On April 3, 2018, the Company entered into a Second Amended and Restated Credit Agreement to refinance the Credit Agreement. See Note 21 of the Notes to Condensed Consolidated Financial Statements for additional details regarding the new credit agreement. The Company’s obligations under the Credit Agreement were guaranteed by certain of its domestic subsidiaries, and the Company guaranteed the obligations of certain of its subsidiaries under the Credit Agreement. Subject to certain exceptions, the Credit Agreement was 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 was obligated to 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 bore interest at a variable rate equal to (i) LIBOR plus a specified margin, which was adjusted upward or downward depending on whether certain criteria were satisfied, or (ii) for dollar-denominated loans only, the base rate (which was 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 was adjusted upward or downward depending on whether certain criteria were satisfied. At March 31, 2018 , 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 at March 31, 2018 was 3.15% . The Credit Agreement contained 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 contained 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 could have elected to have the collateral pledged in connection with the Credit Agreement released during any period that the Company maintained an investment grade corporate family rating from either S&P Global Ratings or Moody’s Investor Service. During such period when the collateral had been released, if the Company’s leverage ratio as of the last day of any fiscal quarter was not greater than 3.75 to 1.00 , the Company would not have been 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 March 31, 2018 . Additionally, with certain exceptions, the Credit Agreement limited 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 existed under the Credit Agreement or would have resulted from such payment, the Company could have paid 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 was 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 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 20 of the Notes to Condensed Consolidated Financial Statements for separate financial information of the subsidiary guarantors. See Note 21 of the Notes to Condensed Consolidated Financial Statements for information regarding amendments to the Indentures in conjunction with the refinancing of the Credit Agreement. 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 March 31, 2018 , the fair value of the 2022 Senior Notes and the 2025 Senior Notes was estimated to be $258 million ( $260 million at September 30, 2017 ) and $258 million ( $264 million at September 30, 2017 ), respectively. The fair value of the Term Loan approximated book value at both March 31, 2018 and September 30, 2017 . See Note 11 of the Notes to Condensed Consolidated Financial Statements for the definition of a Level 2 input. |
Warranties
Warranties | 6 Months Ended |
Mar. 31, 2018 | |
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. The Company offers a variety of extended warranty programs. The premiums received for an extended warranty are 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 totaled $31.1 million and $29.2 million at March 31, 2018 and 2017 , respectively. Changes in the Company’s warranty liability and unearned extended warranty premiums were as follows (in millions): Six Months Ended 2018 2017 Balance at beginning of period $ 98.8 $ 89.6 Warranty provisions 24.7 24.7 Settlements made (23.8 ) (25.7 ) Changes in liability for pre-existing warranties, net 1.5 (0.5 ) Premiums received 5.6 5.4 Amortization of premiums received (5.0 ) (5.8 ) Foreign currency translation 0.3 (0.7 ) Balance at end of period $ 102.1 $ 87.0 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 | 6 Months Ended |
Mar. 31, 2018 | |
Guarantees [Abstract] | |
Guarantee Arrangements | Guarantee Arrangements The Company is party to multiple agreements whereby at March 31, 2018 it guaranteed an aggregate of $674.0 million in indebtedness of customers. The Company estimated that its maximum loss exposure under these contracts at March 31, 2018 was $121.5 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 Six Months Ended 2018 2017 2018 2017 Balance at beginning of period $ 9.8 $ 8.5 $ 9.1 $ 8.4 Provision for new credit guarantees 0.4 0.9 1.7 1.5 Changes for pre-existing guarantees, net (0.6 ) 0.4 (0.6 ) 0.5 Amortization of previous guarantees (0.6 ) (0.8 ) (1.2 ) (1.3 ) Foreign currency translation 0.1 0.1 0.1 — Balance at end of period $ 9.1 $ 9.1 $ 9.1 $ 9.1 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 31, 2018 | |
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. The Company repurchased 1,587,013 shares of Common Stock under this authorization during the six months ended March 31, 2018 at a cost of $128.7 million . The Company did not repurchase any shares under this authorization during the six months ended March 31, 2017. As of March 31, 2018 , the Company repurchased 4,373,637 shares under this authorization at a cost of $240.7 million . The Company had 5,925,561 shares of Common Stock remaining under this repurchase authorization as of March 31, 2018 . The Company was 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. See Note 21 of the Notes to Condensed Consolidated Financial Statements for information regarding restrictions under the Company's new credit agreement. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement FASB Accounting Standards Codification (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 and six months ended March 31, 2018 . The fair values of the Company’s financial assets and liabilities were as follows (in millions): Level 1 Level 2 Level 3 Total March 31, 2018 Assets: SERP plan assets (a) $ 21.6 $ — $ — $ 21.6 Foreign currency exchange derivatives (b) — 0.6 — 0.6 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.8 $ — $ 0.8 Level 1 Level 2 Level 3 Total September 30, 2017 Assets: SERP plan assets (a) $ 21.7 $ — $ — $ 21.7 Foreign currency exchange derivatives (b) — 0.5 — 0.5 Interest rate contracts (c) — 0.3 — 0.3 Liabilities: Foreign currency exchange derivatives (b) $ — $ 1.2 $ — $ 1.2 Interest rate contracts (c) — 0.7 — 0.7 _____________________________ (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 | 6 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In February 2017, the Company’s shareholders approved the 2017 Incentive Stock and Awards Plan (the “2017 Stock Plan”). The 2017 Stock Plan replaced the 2009 Incentive Stock and Awards Plan (as amended, the “2009 Stock Plan”). While no new awards will be granted under the 2009 Stock Plan or its predecessor, the 2004 Incentive Stock and Awards Plan, awards previously made under these two plans that were outstanding as of the approval date of the 2017 Stock Plan will remain outstanding and continue to be governed by the provisions of the respective stock plan under which they were issued. At March 31, 2018 , the Company had reserved 8,046,263 shares of Common Stock available for issuance 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 2017 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 and six months ended March 31, 2018 was $5.7 million ( $4.4 million net of tax) and $14.2 million ( $11.0 million net of tax), respectively. Total stock-based compensation expense, including cash-based liability awards, for the three and six months ended March 31, 2017 was $6.5 million ( $4.1 million net of tax) and $14.4 million ( $9.1 million net of tax), respectively. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges In September 2016, the Company committed to transition its access equipment aftermarket parts distribution network to a third party logistics company. This initiative is intended to improve customer service levels, increase operational efficiency and allow the Company to reallocate resources to invest in future growth. The Company expected to incur cash charges related to severance costs and other employment-related benefits of approximately $3.0 million related to this decision. Of this amount, $0.2 million was incurred in the six months ended March 31, 2018 and $0.4 million and $1.1 million was incurred in the three and six months ended March 31, 2017 , respectively. In January 2017, the access equipment segment announced it had committed to certain restructuring plans as part of simplification activities in support of the Company’s MOVE strategy. The 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 recognized restructuring costs under this program of $3.1 million in the six months ended March 31, 2018 and $16.3 million in both the three and six months ended March 31, 2017 . The Company expects another $3 million of restructuring costs under this program to be recognized in fiscal 2018. The Company had originally expected total implementation costs for the September 2016 and January 2017 restructuring actions in the access equipment segment to be between $48 million and $53 million . The Company made significant progress implementing these actions in fiscal 2017 however, during the six months ended March 31, 2018 , the Company experienced issues that caused operational inefficiencies resulting in additional costs. The Company now expects total costs for these actions to be approximately $78 million , including approximately $35 million of operating costs and inefficiencies. The access equipment segment recognized operational costs and inefficiencies related to these actions of $5.2 million and $18.2 million during the three and six months ended March 31, 2018 , respectively, and $0.9 million in both the three and six months ended March 31, 2017 . The Company expects to recognize another $7 million of operational costs and inefficiencies in the remainder of fiscal 2018. In December 2017, the commercial segment announced it was undertaking certain restructuring actions to realign a portion of the business under three product platforms. The Company recognized $1.8 million and $4.3 million of costs in the three and six months ended March 31, 2018 , respectively, relate to this action. The Company has substantially completed this program and does not anticipate significant future costs related to this action. Pre-tax restructuring charges were as follows (in millions): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Cost of Sales Selling, General and Administrative Expenses Total Cost of Sales Selling, General and Administrative Expenses Total Access equipment $ — $ — $ — $ 16.7 $ — $ 16.7 Commercial 0.8 1.0 1.8 — — — Total $ 0.8 $ 1.0 $ 1.8 $ 16.7 $ — $ 16.7 Six Months Ended March 31, 2018 Six Months Ended March 31, 2017 Cost of Sales Selling, General and Administrative Expenses Total Cost of Sales Selling, General and Administrative Expenses Total Access equipment $ 3.3 $ — $ 3.3 $ 17.4 $ — $ 17.4 Commercial 1.4 2.9 4.3 — 0.4 0.4 Total $ 4.7 $ 2.9 $ 7.6 $ 17.4 $ 0.4 $ 17.8 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 Property, Plant and Equipment Impairment Other Costs Total Balance at September 30, 2017 $ 19.8 $ — $ 1.0 $ 20.8 Restructuring provision 3.5 0.9 3.2 7.6 Utilized - cash (13.1 ) — (2.1 ) (15.2 ) Utilized - noncash — (0.9 ) — (0.9 ) Foreign currency translation 0.6 — 0.1 0.7 Balance at March 31, 2018 $ 10.8 $ — $ 2.2 $ 13.0 Employee Severance and Termination Benefits Property, Plant and Equipment Impairment Other Costs Total Balance at September 30, 2016 $ 0.9 $ — $ — $ 0.9 Restructuring provision 15.3 1.5 1.0 17.8 Utilized - cash (1.2 ) — (0.2 ) (1.4 ) Utilized - noncash — (1.5 ) — (1.5 ) Foreign currency translation — — — — Balance at March 31, 2017 $ 15.0 $ — $ 0.8 $ 15.8 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Components of net periodic pension benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 3.1 $ 3.2 $ 6.2 $ 6.5 Interest cost 4.5 4.4 9.0 8.8 Expected return on plan assets (5.1 ) (4.6 ) (10.1 ) (9.1 ) Amortization of prior service cost 0.5 0.5 0.9 0.9 Amortization of net actuarial loss 0.4 1.0 0.9 2.0 Net periodic benefit cost $ 3.4 $ 4.5 $ 6.9 $ 9.1 Components of net periodic other post-employment benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 0.9 $ 0.7 $ 1.8 $ 1.3 Interest cost 0.4 0.4 0.9 0.8 Amortization of prior service cost (0.3 ) (0.3 ) (0.5 ) (0.5 ) Amortization of net actuarial loss 0.1 — 0.1 0.1 Net periodic benefit cost $ 1.1 $ 0.8 $ 2.3 $ 1.7 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $36.2 million for the three months ended March 31, 2018 , or 24.6% of pre-tax income, compared to $23.6 million , or 35.0% of pre-tax income, for the three months ended March 31, 2017 . Results for the three months ended March 31, 2018 were favorably impacted by $1.1 million of net discrete tax benefits, including a $1.2 million tax benefit related to employee share-based payments. Results for the three months ended March 31, 2017 were favorably impacted by $1.5 million of discrete tax benefits, including a $1.8 million tax benefit related to employee share-based payments. The Company recorded income tax expense of $40.9 million for the six months ended March 31, 2018 , or 19.7% of pre-tax income, compared to $28.8 million , or 31.6% of pre-tax income for the six months ended March 31, 2017 . Tax expense included net discrete tax benefits of $11.4 million and $4.9 million for the six months ended March 31, 2018 and 2017 , respectively. Discrete tax benefits recorded in the six months ended March 31, 2018 included $4.5 million of tax benefits related to employee share-based payments and a $6.5 million net tax benefit related to tax reform legislation enacted in the United States on December 22, 2017. Discrete tax benefits recorded in the six months ended March 31, 2017 included $2.0 million of tax benefits related to employee share-based payments and $2.9 million of tax benefits related to the release of valuation allowances on federal capital loss carryforwards and state net operating losses. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law by President Trump. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result of the Tax Reform Act, the Company recorded a tax benefit of $23.9 million due to a remeasurement of deferred tax assets and liabilities and a tax charge of $17.4 million due to the transition tax on deemed repatriation of deferred foreign income in the three months ended December 31, 2017. Both the tax benefit and the tax charge represent provisional amounts and the Company’s current best estimates. Any adjustments recorded to the provisional amounts through the first quarter of fiscal 2019 will be included in income from operations as an adjustment to tax expense. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance. Because of the complexity of the new Global Intangible Low-Taxed Income (GILTI) tax rules, the Company continues to evaluate this provision of the Tax Reform Act and the application of ASC 740, Income Taxes . Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company's measurement of its deferred taxes (the “deferred method”). The Company's selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing its global income to determine whether it expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends on not only the Company's current structure and estimated future results of global operations but also its intent and ability to modify its structure. The Company is currently in the process of analyzing its structure and, as a result, is not yet able to reasonably estimate the effect of this provision of the Tax Reform Act. Therefore, the Company has not made any adjustments related to potential GILTI tax in its financial statements and has not made a policy decision regarding whether to use the period cost method or the deferred method. The Company’s liability for gross unrecognized tax benefits, excluding related interest and penalties, was $36.6 million and $37.2 million as of March 31, 2018 and September 30, 2017 , respectively. As of March 31, 2018 , net unrecognized tax benefits, excluding interest and penalties, of $20.5 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 six months ended March 31, 2018 and 2017 , the Company recognized expense of $0.6 million and $0.9 million , respectively, related to interest and penalties. At March 31, 2018 , the Company had accruals for the payment of interest and penalties of $10.6 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 $2.7 million because the Company’s tax positions are sustained on audit, the Company agrees to their disallowance or the statutes of limitations close. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (45.7 ) $ (76.5 ) $ (0.2 ) $ (122.4 ) Other comprehensive income (loss) before reclassifications — 16.5 0.3 16.8 Amounts reclassified from accumulated other comprehensive income (loss) 0.5 — — 0.5 Net current period other comprehensive income (loss) 0.5 16.5 0.3 17.3 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) Three Months Ended March 31, 2017 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (73.1 ) $ (131.5 ) $ (204.6 ) Other comprehensive income (loss) before reclassifications — 10.7 10.7 Amounts reclassified from accumulated other comprehensive income (loss) 0.8 — 0.8 Net current period other comprehensive income (loss) 0.8 10.7 11.5 Balance at end of period $ (72.3 ) $ (120.8 ) $ (193.1 ) Six Months Ended March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (46.2 ) $ (78.6 ) $ (0.2 ) $ (125.0 ) Other comprehensive income (loss) before reclassifications — 18.6 0.3 18.9 Amounts reclassified from accumulated other comprehensive income (loss) 1.0 — — 1.0 Net current period other comprehensive income (loss) 1.0 18.6 0.3 19.9 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) Six Months Ended March 31, 2017 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 — (19.7 ) (19.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 1.6 — 1.6 Net current period other comprehensive income (loss) 1.6 (19.7 ) (18.1 ) Balance at end of period $ (72.3 ) $ (120.8 ) $ (193.1 ) Reclassifications out of accumulated other comprehensive income (loss) included in the computation of net periodic pension and postretirement benefit cost (See Note 14 of the Notes to Condensed Consolidated Financial Statements for additional details regarding employee benefit plans) were as follows (in millions): Three Months Ended Six Months Ended 2018 2017 2018 2017 Amortization of employee pension and postretirement benefits items Prior service costs $ 0.2 $ 0.2 $ 0.4 $ 0.4 Actuarial losses 0.5 1.0 1.0 2.1 Total before tax 0.7 1.2 1.4 2.5 Tax benefit (0.2 ) (0.4 ) (0.4 ) (0.9 ) Net of tax $ 0.5 $ 0.8 $ 1.0 $ 1.6 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The calculation of diluted earnings per common share was as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Diluted Earnings Per Share: Basic weighted-average common shares outstanding 74,519,741 74,696,616 74,685,082 74,486,209 Dilutive stock options and other equity-based compensation awards 977,808 1,086,846 1,077,722 1,095,693 Diluted weighted-average common shares outstanding 75,497,549 75,783,462 75,762,804 75,581,902 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 Six Months Ended 2018 2017 2018 2017 Stock options 254,000 389,950 257,837 391,962 |
Contingencies, Significant Esti
Contingencies, Significant Estimates and Concentrations | 6 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and September 30, 2017 , the estimated net liabilities for product and general liability claims totaled $41.9 million and $39.1 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 $699.9 million and $598.4 million at March 31, 2018 and September 30, 2017 , respectively. Open standby letters of credit issued by the Company’s banks in favor of third parties totaled $89.1 million and $96.9 million at March 31, 2018 and September 30, 2017 , respectively. Other Matters - The Company is subject to environmental matters and legal proceedings and claims, including patent, antitrust, product liability, breach of contract, 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 (the “Tribunal”) ruled in the Company's favor in connection with that challenge. In December 2017, the Tribunal issued its determination outlining the compensation to which the Company is entitled as a result of the challenge. As the determination has been appealed, the Company has not recognized any gain for this matter as it is not yet realized or realizable. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company is organized into four reportable segments based on the internal organization used by the President and Chief Executive Officer 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, 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 March 31, 2018 2017 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 487.2 $ — $ 487.2 $ 369.4 $ — $ 369.4 Telehandlers 234.9 — 234.9 161.6 — 161.6 Other 205.8 — 205.8 192.2 — 192.2 Total access equipment 927.9 — 927.9 723.2 — 723.2 Defense 427.8 0.4 428.2 445.7 0.4 446.1 Fire & emergency 269.1 4.0 273.1 233.5 4.0 237.5 Commercial Concrete placement 114.6 — 114.6 112.7 — 112.7 Refuse collection 117.8 — 117.8 79.1 — 79.1 Other 29.1 2.4 31.5 22.3 1.9 24.2 Total commercial 261.5 2.4 263.9 214.1 1.9 216.0 Corporate and intersegment eliminations 0.1 (6.8 ) (6.7 ) 1.8 (6.3 ) (4.5 ) Consolidated $ 1,886.4 $ — $ 1,886.4 $ 1,618.3 $ — $ 1,618.3 Six Months Ended March 31, 2018 2017 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 810.7 $ — $ 810.7 $ 603.1 $ — $ 603.1 Telehandlers 364.4 — 364.4 254.9 — 254.9 Other 381.0 — 381.0 354.4 — 354.4 Total access equipment 1,556.1 — 1,556.1 1,212.4 — 1,212.4 Defense 921.0 0.7 921.7 739.9 0.7 740.6 Fire & emergency 494.0 8.2 502.2 462.6 7.4 470.0 Commercial Concrete placement 226.1 — 226.1 197.1 — 197.1 Refuse collection 219.0 — 219.0 171.3 — 171.3 Other 56.1 4.1 60.2 43.8 3.0 46.8 Total commercial 501.2 4.1 505.3 412.2 3.0 415.2 Corporate and intersegment eliminations 0.4 (13.0 ) (12.6 ) 2.6 (11.1 ) (8.5 ) Consolidated $ 3,472.7 $ — $ 3,472.7 $ 2,829.7 $ — $ 2,829.7 Three Months Ended Six Months Ended March 31, 2018 2017 2018 2017 Operating income (loss): Access equipment $ 97.7 $ 42.1 $ 111.5 $ 66.5 Defense 47.8 48.7 113.0 72.5 Fire & emergency 36.0 21.8 61.1 38.8 Commercial 16.4 6.0 24.7 10.6 Corporate (42.0 ) (38.2 ) (80.6 ) (71.8 ) Consolidated 155.9 80.4 229.7 116.6 Interest expense, net of interest income (8.0 ) (14.1 ) (21.7 ) (28.0 ) Miscellaneous other income (expense) (0.8 ) 1.2 (0.3 ) 2.5 Income before income taxes and earnings of unconsolidated affiliates $ 147.1 $ 67.5 $ 207.7 $ 91.1 March 31, September 30, 2018 2017 Identifiable assets: Access equipment: U.S. $ 2,095.2 $ 1,905.5 Europe 547.2 541.0 Rest of the World 249.8 246.1 Total access equipment 2,892.2 2,692.6 Defense: U.S. 781.5 775.1 Rest of the World 6.7 7.0 Total defense 788.2 782.1 Fire & emergency - U.S. 533.7 552.6 Commercial: U.S. 398.8 377.3 Rest of the World 49.5 42.3 Total commercial 448.3 419.6 Corporate: U.S. (a) 424.9 543.9 Rest of the World (b) 107.2 108.1 Total corporate 532.1 652.0 Consolidated $ 5,194.5 $ 5,098.9 _________________________ (a) Primarily includes cash and short-term investments. (b) Primarily 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): Six Months Ended March 31, 2018 2017 Net sales: United States $ 2,793.6 $ 2,237.5 Other North America 111.0 82.7 Europe, Africa and Middle East 406.0 351.2 Rest of the World 162.1 158.3 Consolidated $ 3,472.7 $ 2,829.7 |
Separate Financial Information
Separate Financial Information of Subsidiary Guarantors of Indebtedness | 6 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,591.9 $ 356.7 $ (62.2 ) $ 1,886.4 Cost of sales 0.5 1,336.7 275.7 (61.9 ) 1,551.0 Gross income (loss) (0.5 ) 255.2 81.0 (0.3 ) 335.4 Selling, general and administrative expenses 38.9 101.7 29.7 — 170.3 Amortization of purchased intangibles — 8.3 0.9 — 9.2 Operating income (loss) (39.4 ) 145.2 50.4 (0.3 ) 155.9 Interest expense (19.2 ) (13.9 ) (0.7 ) 17.7 (16.1 ) Interest income 1.1 14.6 10.1 (17.7 ) 8.1 Miscellaneous, net 25.2 (40.5 ) 14.5 — (0.8 ) Income (loss) before income taxes (32.3 ) 105.4 74.3 (0.3 ) 147.1 Provision for (benefit from) income taxes (7.9 ) 26.2 18.0 (0.1 ) 36.2 Income (loss) before equity in earnings of affiliates (24.4 ) 79.2 56.3 (0.2 ) 110.9 Equity in earnings of consolidated subsidiaries 135.2 39.2 26.8 (201.2 ) — Equity in losses of unconsolidated affiliates — — (0.1 ) — (0.1 ) Net income 110.8 118.4 83.0 (201.4 ) 110.8 Other comprehensive income (loss), net of tax 17.3 (0.5 ) 17.2 (16.7 ) 17.3 Comprehensive income $ 128.1 $ 117.9 $ 100.2 $ (218.1 ) $ 128.1 Condensed Consolidating Statement of Income and Comprehensive Income For the Three Months Ended March 31, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,378.1 $ 285.1 $ (44.9 ) $ 1,618.3 Cost of sales (0.2 ) 1,132.9 268.9 (44.6 ) 1,357.0 Gross income (loss) 0.2 245.2 16.2 (0.3 ) 261.3 Selling, general and administrative expenses 35.6 103.9 30.3 — 169.8 Amortization of purchased intangibles — 9.6 1.5 — 11.1 Operating income (loss) (35.4 ) 131.7 (15.6 ) (0.3 ) 80.4 Interest expense (13.6 ) (13.7 ) (0.5 ) 12.7 (15.1 ) Interest income 0.6 4.2 8.9 (12.7 ) 1.0 Miscellaneous, net 24.3 (54.7 ) 31.6 — 1.2 Income (loss) before income taxes (24.1 ) 67.5 24.4 (0.3 ) 67.5 Provision for (benefit from) income taxes (9.3 ) 22.4 10.6 (0.1 ) 23.6 Income (loss) before equity in earnings of affiliates (14.8 ) 45.1 13.8 (0.2 ) 43.9 Equity in earnings of consolidated subsidiaries 59.1 7.9 8.0 (75.0 ) — Equity in earnings of unconsolidated affiliates — — 0.4 — 0.4 Net income 44.3 53.0 22.2 (75.2 ) 44.3 Other comprehensive income (loss), net of tax 11.5 1.5 9.4 (10.9 ) 11.5 Comprehensive income $ 55.8 $ 54.5 $ 31.6 $ (86.1 ) $ 55.8 Condensed Consolidating Statement of Income and Comprehensive Income For the Six Months Ended March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 2,964.1 $ 624.6 $ (116.0 ) $ 3,472.7 Cost of sales (0.4 ) 2,489.7 521.4 (115.6 ) 2,895.1 Gross income (loss) 0.4 474.4 103.2 (0.4 ) 577.6 Selling, general and administrative expenses 76.7 192.0 59.4 — 328.1 Amortization of purchased intangibles — 17.5 2.3 — 19.8 Operating income (loss) (76.3 ) 264.9 41.5 (0.4 ) 229.7 Interest expense (38.2 ) (27.4 ) (1.5 ) 35.6 (31.5 ) Interest income 2.4 22.6 20.4 (35.6 ) 9.8 Miscellaneous, net 50.4 (102.5 ) 51.8 — (0.3 ) Income (loss) before income taxes (61.7 ) 157.6 112.2 (0.4 ) 207.7 Provision for (benefit from) income taxes (4.9 ) 62.8 (17.1 ) 0.1 40.9 Income (loss) before equity in earnings of affiliates (56.8 ) 94.8 129.3 (0.5 ) 166.8 Equity in earnings of consolidated subsidiaries 224.0 96.3 (4.8 ) (315.5 ) — Equity in earnings of unconsolidated affiliates — — 0.4 — 0.4 Net income 167.2 191.1 124.9 (316.0 ) 167.2 Other comprehensive income (loss), net of tax 19.9 (0.3 ) 19.4 (19.1 ) 19.9 Comprehensive income $ 187.1 $ 190.8 $ 144.3 $ (335.1 ) $ 187.1 Condensed Consolidating Statement of Income and Comprehensive Income For the Six Months Ended March 31, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 2,427.9 $ 488.0 $ (86.2 ) $ 2,829.7 Cost of sales (1.0 ) 2,007.4 448.4 (86.1 ) 2,368.7 Gross income (loss) 1.0 420.5 39.6 (0.1 ) 461.0 Selling, general and administrative expenses 67.2 195.4 58.2 — 320.8 Amortization of purchased intangibles — 19.2 4.4 — 23.6 Operating income (loss) (66.2 ) 205.9 (23.0 ) (0.1 ) 116.6 Interest expense (27.2 ) (27.3 ) (1.0 ) 25.7 (29.8 ) Interest income 1.3 8.3 17.9 (25.7 ) 1.8 Miscellaneous, net 46.8 (106.9 ) 62.6 — 2.5 Income (loss) before income taxes (45.3 ) 80.0 56.5 (0.1 ) 91.1 Provision for (benefit from) income taxes (14.4 ) 25.4 17.8 — 28.8 Income (loss) before equity in earnings of affiliates (30.9 ) 54.6 38.7 (0.1 ) 62.3 Equity in earnings of consolidated subsidiaries 94.4 23.6 (2.7 ) (115.3 ) — Equity in earnings of unconsolidated affiliates — — 1.2 — 1.2 Net income 63.5 78.2 37.2 (115.4 ) 63.5 Other comprehensive income (loss), net of tax (18.1 ) 0.6 (19.8 ) 19.2 (18.1 ) Comprehensive income $ 45.4 $ 78.8 $ 17.4 $ (96.2 ) $ 45.4 Condensed Consolidating Balance Sheet As of March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 263.2 $ 4.6 $ 20.1 $ — $ 287.9 Receivables, net 19.8 1,152.9 338.2 (53.6 ) 1,457.3 Inventories, net — 881.9 439.9 — 1,321.8 Other current assets 50.4 27.0 9.2 — 86.6 Total current assets 333.4 2,066.4 807.4 (53.6 ) 3,153.6 Investment in and advances to consolidated subsidiaries 3,361.1 1,450.6 (57.5 ) (4,754.2 ) — Intercompany receivables 47.9 295.8 1,956.7 (2,300.4 ) — Intangible assets, net — 891.6 619.2 — 1,510.8 Other long-term assets 103.9 255.0 171.2 — 530.1 Total assets $ 3,846.3 $ 4,959.4 $ 3,497.0 $ (7,108.2 ) $ 5,194.5 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 7.8 $ 571.3 $ 180.0 $ (53.1 ) $ 706.0 Customer advances — 561.2 5.0 — 566.2 Other current liabilities 79.6 268.5 120.0 (0.5 ) 467.6 Total current liabilities 87.4 1,401.0 305.0 (53.6 ) 1,739.8 Long-term debt, less current maturities 818.8 — — — 818.8 Intercompany payables 491.5 1,761.0 47.9 (2,300.4 ) — Other long-term liabilities 99.0 176.3 11.0 — 286.3 Total shareholders' equity 2,349.6 1,621.1 3,133.1 (4,754.2 ) 2,349.6 Total liabilities and shareholders' equity $ 3,846.3 $ 4,959.4 $ 3,497.0 $ (7,108.2 ) $ 5,194.5 Condensed Consolidating Balance Sheet As of September 30, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 399.5 $ 4.6 $ 42.9 $ — $ 447.0 Receivables, net 28.3 1,025.5 316.1 (63.6 ) 1,306.3 Inventories, net — 819.3 379.1 — 1,198.4 Other current assets 45.4 31.9 10.8 — 88.1 Total current assets 473.2 1,881.3 748.9 (63.6 ) 3,039.8 Investment in and advances to consolidated subsidiaries 3,138.3 1,340.4 (59.6 ) (4,419.1 ) — Intercompany receivables 48.0 261.6 1,971.8 (2,281.4 ) — Intangible assets, net — 909.5 611.3 — 1,520.8 Other long-term assets 69.1 242.9 226.3 — 538.3 Total assets $ 3,728.6 $ 4,635.7 $ 3,498.7 $ (6,764.1 ) $ 5,098.9 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 11.6 $ 517.2 $ 176.4 $ (54.2 ) $ 651.0 Customer advances — 510.7 2.7 — 513.4 Other current liabilities 105.2 304.9 118.0 (9.4 ) 518.7 Total current liabilities 116.8 1,332.8 297.1 (63.6 ) 1,683.1 Long-term debt, less current maturities 807.9 — — — 807.9 Intercompany payables 452.9 1,780.5 48.0 (2,281.4 ) — Other long-term liabilities 43.6 134.1 122.8 — 300.5 Total shareholders' equity 2,307.4 1,388.3 3,030.8 (4,419.1 ) 2,307.4 Total liabilities and shareholders' equity $ 3,728.6 $ 4,635.7 $ 3,498.7 $ (6,764.1 ) $ 5,098.9 Condensed Consolidating Statement of Cash Flows For the Six Months Ended March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (26.5 ) $ 48.1 $ 22.3 $ — $ 43.9 Investing activities: Additions to property, plant and equipment (3.4 ) (22.3 ) (12.2 ) — (37.9 ) Additions to equipment held for rental — — (2.9 ) — (2.9 ) Proceeds from sale of equipment held for rental — — 4.4 — 4.4 Intercompany investing — (6.2 ) (37.9 ) 44.1 — Other investing activities (0.5 ) — — — (0.5 ) Net cash provided (used) by investing activities (3.9 ) (28.5 ) (48.6 ) 44.1 (36.9 ) Financing activities: Proceeds from issuance of debt (original maturities greater than three months) — — 13.1 — 13.1 Repayments of debt (original maturities greater than three months) (10.0 ) — (7.9 ) — (17.9 ) Repurchases of Common Stock (136.2 ) — — — (136.2 ) Dividends paid (35.9 ) — — — (35.9 ) Proceeds from exercise of stock options 12.5 — — — 12.5 Intercompany financing 63.7 (19.5 ) (0.1 ) (44.1 ) — Net cash provided (used) by financing activities (105.9 ) (19.5 ) 5.1 (44.1 ) (164.4 ) Effect of exchange rate changes on cash — (0.1 ) (1.6 ) — (1.7 ) Decrease in cash and cash equivalents (136.3 ) — (22.8 ) — (159.1 ) Cash and cash equivalents at beginning of period 399.5 4.6 42.9 — 447.0 Cash and cash equivalents at end of period $ 263.2 $ 4.6 $ 20.1 $ — $ 287.9 Condensed Consolidating Statement of Cash Flows For the Six Months Ended March 31, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (20.4 ) $ 193.2 $ (24.7 ) $ — $ 148.1 Investing activities: Additions to property, plant and equipment (1.6 ) (19.6 ) (6.8 ) — (28.0 ) Additions to equipment held for rental — — (24.6 ) — (24.6 ) Proceeds from sale of equipment held for rental — — 19.8 — 19.8 Intercompany investing — 387.0 — (387.0 ) — Other investing activities (0.8 ) (0.1 ) — — (0.9 ) Net cash provided (used) by investing activities (2.4 ) 367.3 (11.6 ) (387.0 ) (33.7 ) 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 (31.3 ) — — — (31.3 ) Proceeds from exercise of stock options 33.2 — — — 33.2 Intercompany financing 132.0 (559.5 ) 40.5 387.0 — Net cash provided (used) by financing activities 110.9 (559.5 ) 40.5 387.0 (21.1 ) Effect of exchange rate changes on cash — — (1.8 ) — (1.8 ) Increase in cash and cash equivalents 88.1 1.0 2.4 — 91.5 Cash and cash equivalents at beginning of period 285.4 1.7 34.8 — 321.9 Cash and cash equivalents at end of period $ 373.5 $ 2.7 $ 37.2 $ — $ 413.4 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On April 3, 2018, the Company entered into a Second Amended and Restated Credit Agreement with various lenders (the “2018 Credit Agreement”). The 2018 Credit Agreement provides for (i) an unsecured revolving credit facility (2018 Revolving Credit Facility) that matures in April 2023 with an initial maximum aggregate amount of availability of $850 million and (ii) an unsecured $325 million term loan (2018 Term Loan) due in quarterly principal installments of $4.1 million commencing September 30, 2019 with a balloon payment of $264.1 million due at maturity in April 2023. The Company expects to recognize approximately $0.7 million of expense in the third quarter of fiscal 2018 on the partial extinguishment of debt under the Credit Agreement. Of the remaining costs incurred in connection with the refinancing, approximately $3.0 million is expected to be capitalized and will be amortized over the term of the 2018 Credit Agreement. Effective April 3, 2018, to transition from secured facilities under the Credit Agreement to unsecured facilities under the 2018 Credit Agreement, (i) the guaranties made pursuant to the Credit Agreement and the related loan documents were terminated (other than the Company’s guaranty under the Credit Agreement of certain obligations of its subsidiaries, which guaranty was superseded and replaced by a similar guaranty made by the Company under the 2018 Credit Agreement), and (ii) the collateral documents executed by the Company and/or its subsidiaries in connection with the Credit Agreement and the related loan documents and the liens created under such collateral documents were terminated, released and discharged. Under the 2018 Credit Agreement, the Company must pay (i) an unused commitment fee ranging from 0.125% to 0.275% per annum of the average daily unused portion of the aggregate revolving credit commitments under the 2018 Credit Agreement and (ii) a fee ranging from 0.563% to 1.750% per annum of the maximum amount available to be drawn for each letter of credit issued and outstanding under the 2018 Credit Agreement. Borrowings under the 2018 Credit Agreement bear interest at a variable rate equal to, at the Company's election, (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. The 2018 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 2018 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 3.75 to 1.0 . • 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 1.0 . Additionally, with certain exceptions, the 2018 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 2018 Credit Agreement or would result from such payment, the Company may pay dividends and other distributions after April 3, 2018 in an aggregate amount not exceeding the sum of: i. $1.46 billion ; ii. 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 April 3, 2018 and ending on the last day of the fiscal quarter immediately preceding the date of the applicable proposed dividend or distribution; and iii. 100% of the aggregate net proceeds received by the Company subsequent to April 3, 2018 either as a contribution to its common equity capital or from the issuance and sale of its Common Stock. On April 3, 2018, the Company also entered into (a) a First Supplemental Indenture (the “First Supplemental Indenture”) to the 2025 Notes Indenture between the Company and Wells Fargo Bank, National Association, as trustee, and (b) a Third Supplemental Indenture (the “Third Supplemental Indenture”) to the 2022 Notes Indenture between the Company and Wells Fargo Bank, National Association, as trustee. As a result of the termination of all guaranties of the subsidiaries of the Company made pursuant to the Credit Agreement and the related loan documents, the First Supplemental Indenture and the Third Supplemental Indenture amended and supplemented the 2025 Notes Indenture and the 2022 Notes Indenture, respectively, to release and discharge all note guaranties made by subsidiaries of the Company pursuant thereto. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Mar. 31, 2018 | |
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 new standard is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company plans to adopt the standard on October 1, 2018. The Company has elected to adopt the new revenue recognition standard following the modified retrospective approach, as permitted by the standard. This approach will result in an adjustment to retained earnings for the cumulative effect of initially applying the new standard on its adoption date. The Company has assembled a cross-functional team with representation from all segments that is dedicated to the implementation of this new accounting standard. The team, with the support of a project management office, is focused on executing a multi-phase plan that will culminate with the adoption of the standard. The cross-functional team continued its focus on concluding and documenting key accounting positions during the three months ended March 31, 2018. The Company's Audit Committee has been receiving regular briefings on the implementation team's progress and potential implications related to adoption of the new standard. The internal control and process changes necessary to comply with the requirements of the new standard as well as its financial impact remain under evaluation. 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 adopted ASU 2015-11 on October 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which 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 Company will be required to adopt ASU 2016-02 and related amendments to the standard as of October 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-02 on the Company's consolidated 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. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company's consolidated 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 consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. The standard simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The standard also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The Company will be required to adopt ASU 2017-04 as of October 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-04 on the Company's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard requires that an entity report the service cost component of net periodic pension and postretirement cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The remaining components of net benefit costs are required to be presented in the income statement separately from the service component and outside a subtotal of income from operations, if one is presented. The amendment further allows only the service cost component of net periodic pension and postretirement costs to be eligible for capitalization, when applicable. The Company will be required to adopt ASU 2017-07 as of October 1, 2018. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-07 on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities . The standard more closely aligns hedge accounting with risk management strategies, simplifies the application of hedge accounting, and increases transparency as to the scope and results of hedging programs. The standard expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The Company adopted ASU 2017-12 on October 1, 2017. The adoption of ASU 2017-12 did not have a material impact on the Company's consolidated financial statements. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of receivables | Receivables consisted of the following (in millions): March 31, September 30, 2018 2017 U.S. government: Amounts billed $ 78.9 $ 137.8 Costs and profits not billed 206.1 137.9 285.0 275.7 Other trade receivables 1,128.8 985.4 Finance receivables 28.6 5.8 Notes receivable 7.7 34.2 Other receivables 46.2 46.3 1,496.3 1,347.4 Less allowance for doubtful accounts (12.9 ) (18.3 ) $ 1,483.4 $ 1,329.1 |
Classification of receivables in the condensed consolidated balance sheets | Classification of receivables in the Condensed Consolidated Balance Sheets consisted of the following (in millions): March 31, September 30, 2018 2017 Current receivables $ 1,457.3 $ 1,306.3 Long-term receivables (included in “Other long-term assets”) 26.1 22.8 $ 1,483.4 $ 1,329.1 |
Schedule of finance and notes receivable aging and accrual status | Finance and notes receivable accrual status consisted of the following (in millions): Finance Receivables Notes Receivable March 31, 2018 September 30, 2017 March 31, 2018 September 30, 2017 Receivables on nonaccrual status $ 3.6 $ 3.7 $ 3.8 $ 21.3 Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 17.0 2.1 — — Allowance for doubtful accounts (0.3 ) — — — Receivables subject to specific reserves 11.6 3.7 7.7 34.2 Allowance for doubtful accounts (1.4 ) (1.5 ) (3.8 ) (10.0 ) |
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 March 31, 2018 Three Months Ended March 31, 2017 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance for doubtful accounts at beginning of period $ 1.5 $ 6.1 $ 6.9 $ 14.5 $ 2.1 $ 11.6 $ 6.5 $ 20.2 Provision for doubtful accounts, net of recoveries 0.2 (4.5 ) 0.6 (3.7 ) 0.4 (0.1 ) 0.1 0.4 Charge-off of accounts — 2.0 (0.1 ) 1.9 — (0.4 ) (0.8 ) (1.2 ) Foreign currency translation — 0.2 — 0.2 — 0.2 (0.1 ) 0.1 Allowance for doubtful accounts at end of period $ 1.7 $ 3.8 $ 7.4 $ 12.9 $ 2.5 $ 11.3 $ 5.7 $ 19.5 Six Months Ended March 31, 2018 Six Months Ended March 31, 2017 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance for doubtful accounts at beginning of period $ 1.5 $ 10.0 $ 6.8 $ 18.3 $ 1.0 $ 13.0 $ 7.2 $ 21.2 Provision for doubtful accounts, net of recoveries 0.2 (8.5 ) 0.8 (7.5 ) 1.5 (0.7 ) (0.4 ) 0.4 Charge-off of accounts — 2.0 (0.2 ) 1.8 — (0.5 ) (1.0 ) (1.5 ) Foreign currency translation — 0.3 — 0.3 — (0.5 ) (0.1 ) (0.6 ) Allowance for doubtful accounts at end of period $ 1.7 $ 3.8 $ 7.4 $ 12.9 $ 2.5 $ 11.3 $ 5.7 $ 19.5 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following (in millions): March 31, September 30, 2018 2017 Raw materials $ 642.4 $ 578.1 Partially finished products 359.1 336.6 Finished products 434.5 398.1 Inventories at FIFO cost 1,436.0 1,312.8 Less: Progress/performance-based payments on U.S. government contracts (27.3 ) (31.6 ) Excess of FIFO cost over LIFO cost (86.9 ) (82.8 ) $ 1,321.8 $ 1,198.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following (in millions): March 31, September 30, 2018 2017 Land and land improvements $ 59.0 $ 58.5 Buildings 302.0 298.5 Machinery and equipment 664.7 652.2 Software and related costs 156.8 149.6 Equipment on operating lease to others 27.8 30.0 1,210.3 1,188.8 Less accumulated depreciation (751.6 ) (718.9 ) $ 458.7 $ 469.9 |
Goodwill and Purchased Intang34
Goodwill and Purchased Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents changes in goodwill during the six months ended March 31, 2018 (in millions): Access Equipment Fire & Emergency Commercial Total Net goodwill at September 30, 2017 $ 885.9 $ 106.1 $ 21.0 $ 1,013.0 Foreign currency translation 7.5 — (0.1 ) 7.4 Net goodwill at March 31, 2018 $ 893.4 $ 106.1 $ 20.9 $ 1,020.4 |
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): March 31, 2018 September 30, 2017 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access equipment $ 1,825.5 $ (932.1 ) $ 893.4 $ 1,818.0 $ (932.1 ) $ 885.9 Fire & emergency 108.1 (2.0 ) 106.1 108.1 (2.0 ) 106.1 Commercial 196.8 (175.9 ) 20.9 196.9 (175.9 ) 21.0 $ 2,130.4 $ (1,110.0 ) $ 1,020.4 $ 2,123.0 $ (1,110.0 ) $ 1,013.0 |
Schedule of purchased intangible assets | Details of the Company’s total purchased intangible assets are as follows (in millions): March 31, 2018 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (30.2 ) $ 25.2 Technology-related 11.9 104.8 (101.5 ) 3.3 Customer relationships 12.8 555.0 (484.9 ) 70.1 Other 16.5 16.6 (14.8 ) 1.8 14.7 731.8 (631.4 ) 100.4 Non-amortizable trade names 390.0 — 390.0 $ 1,121.8 $ (631.4 ) $ 490.4 September 30, 2017 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (29.5 ) $ 25.9 Technology-related 11.9 104.7 (99.7 ) 5.0 Customer relationships 12.8 555.0 (467.6 ) 87.4 Other 16.3 16.4 (14.7 ) 1.7 14.4 731.5 (611.5 ) 120.0 Non-amortizable trade names 387.8 — 387.8 $ 1,119.3 $ (611.5 ) $ 507.8 |
Credit Agreements (Tables)
Credit Agreements (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | The Company was obligated under the following debt instruments (in millions): March 31, 2018 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 325.0 $ (0.5 ) $ 324.5 5.375% Senior Notes due March 2022 250.0 (3.1 ) 246.9 5.375% Senior Notes due March 2025 250.0 (2.6 ) 247.4 $ 825.0 $ (6.2 ) 818.8 Less current maturities — $ 818.8 Other short-term debt $ 8.7 Current maturities of long-term debt — $ 8.7 September 30, 2017 Principal Debt Issuance Costs Debt, Net Senior Secured Term Loan $ 335.0 $ (0.8 ) $ 334.2 5.375% Senior Notes due March 2022 250.0 (3.5 ) 246.5 5.375% Senior Notes due March 2025 250.0 (2.8 ) 247.2 $ 835.0 $ (7.1 ) 827.9 Less current maturities (20.0 ) $ 807.9 Other short-term debt $ 3.0 Current maturities of long-term debt 20.0 $ 23.0 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in warranty liability and unearned extended warranty premiums | Changes in the Company’s warranty liability and unearned extended warranty premiums were as follows (in millions): Six Months Ended 2018 2017 Balance at beginning of period $ 98.8 $ 89.6 Warranty provisions 24.7 24.7 Settlements made (23.8 ) (25.7 ) Changes in liability for pre-existing warranties, net 1.5 (0.5 ) Premiums received 5.6 5.4 Amortization of premiums received (5.0 ) (5.8 ) Foreign currency translation 0.3 (0.7 ) Balance at end of period $ 102.1 $ 87.0 |
Guarantee Arrangements (Tables)
Guarantee Arrangements (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
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 Six Months Ended 2018 2017 2018 2017 Balance at beginning of period $ 9.8 $ 8.5 $ 9.1 $ 8.4 Provision for new credit guarantees 0.4 0.9 1.7 1.5 Changes for pre-existing guarantees, net (0.6 ) 0.4 (0.6 ) 0.5 Amortization of previous guarantees (0.6 ) (0.8 ) (1.2 ) (1.3 ) Foreign currency translation 0.1 0.1 0.1 — Balance at end of period $ 9.1 $ 9.1 $ 9.1 $ 9.1 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Assets: SERP plan assets (a) $ 21.6 $ — $ — $ 21.6 Foreign currency exchange derivatives (b) — 0.6 — 0.6 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.8 $ — $ 0.8 Level 1 Level 2 Level 3 Total September 30, 2017 Assets: SERP plan assets (a) $ 21.7 $ — $ — $ 21.7 Foreign currency exchange derivatives (b) — 0.5 — 0.5 Interest rate contracts (c) — 0.3 — 0.3 Liabilities: Foreign currency exchange derivatives (b) $ — $ 1.2 $ — $ 1.2 Interest rate contracts (c) — 0.7 — 0.7 _____________________________ (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 Charg39
Restructuring and Other Charges (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Pre-tax restructuring charges were as follows (in millions): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Cost of Sales Selling, General and Administrative Expenses Total Cost of Sales Selling, General and Administrative Expenses Total Access equipment $ — $ — $ — $ 16.7 $ — $ 16.7 Commercial 0.8 1.0 1.8 — — — Total $ 0.8 $ 1.0 $ 1.8 $ 16.7 $ — $ 16.7 Six Months Ended March 31, 2018 Six Months Ended March 31, 2017 Cost of Sales Selling, General and Administrative Expenses Total Cost of Sales Selling, General and Administrative Expenses Total Access equipment $ 3.3 $ — $ 3.3 $ 17.4 $ — $ 17.4 Commercial 1.4 2.9 4.3 — 0.4 0.4 Total $ 4.7 $ 2.9 $ 7.6 $ 17.4 $ 0.4 $ 17.8 |
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 Property, Plant and Equipment Impairment Other Costs Total Balance at September 30, 2017 $ 19.8 $ — $ 1.0 $ 20.8 Restructuring provision 3.5 0.9 3.2 7.6 Utilized - cash (13.1 ) — (2.1 ) (15.2 ) Utilized - noncash — (0.9 ) — (0.9 ) Foreign currency translation 0.6 — 0.1 0.7 Balance at March 31, 2018 $ 10.8 $ — $ 2.2 $ 13.0 Employee Severance and Termination Benefits Property, Plant and Equipment Impairment Other Costs Total Balance at September 30, 2016 $ 0.9 $ — $ — $ 0.9 Restructuring provision 15.3 1.5 1.0 17.8 Utilized - cash (1.2 ) — (0.2 ) (1.4 ) Utilized - noncash — (1.5 ) — (1.5 ) Foreign currency translation — — — — Balance at March 31, 2017 $ 15.0 $ — $ 0.8 $ 15.8 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic benefit cost | Components of net periodic pension benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 3.1 $ 3.2 $ 6.2 $ 6.5 Interest cost 4.5 4.4 9.0 8.8 Expected return on plan assets (5.1 ) (4.6 ) (10.1 ) (9.1 ) Amortization of prior service cost 0.5 0.5 0.9 0.9 Amortization of net actuarial loss 0.4 1.0 0.9 2.0 Net periodic benefit cost $ 3.4 $ 4.5 $ 6.9 $ 9.1 Components of net periodic other post-employment benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 0.9 $ 0.7 $ 1.8 $ 1.3 Interest cost 0.4 0.4 0.9 0.8 Amortization of prior service cost (0.3 ) (0.3 ) (0.5 ) (0.5 ) Amortization of net actuarial loss 0.1 — 0.1 0.1 Net periodic benefit cost $ 1.1 $ 0.8 $ 2.3 $ 1.7 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (45.7 ) $ (76.5 ) $ (0.2 ) $ (122.4 ) Other comprehensive income (loss) before reclassifications — 16.5 0.3 16.8 Amounts reclassified from accumulated other comprehensive income (loss) 0.5 — — 0.5 Net current period other comprehensive income (loss) 0.5 16.5 0.3 17.3 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) Three Months Ended March 31, 2017 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (73.1 ) $ (131.5 ) $ (204.6 ) Other comprehensive income (loss) before reclassifications — 10.7 10.7 Amounts reclassified from accumulated other comprehensive income (loss) 0.8 — 0.8 Net current period other comprehensive income (loss) 0.8 10.7 11.5 Balance at end of period $ (72.3 ) $ (120.8 ) $ (193.1 ) Six Months Ended March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (46.2 ) $ (78.6 ) $ (0.2 ) $ (125.0 ) Other comprehensive income (loss) before reclassifications — 18.6 0.3 18.9 Amounts reclassified from accumulated other comprehensive income (loss) 1.0 — — 1.0 Net current period other comprehensive income (loss) 1.0 18.6 0.3 19.9 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) Six Months Ended March 31, 2017 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 — (19.7 ) (19.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 1.6 — 1.6 Net current period other comprehensive income (loss) 1.6 (19.7 ) (18.1 ) Balance at end of period $ (72.3 ) $ (120.8 ) $ (193.1 ) |
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 (See Note 14 of the Notes to Condensed Consolidated Financial Statements for additional details regarding employee benefit plans) were as follows (in millions): Three Months Ended Six Months Ended 2018 2017 2018 2017 Amortization of employee pension and postretirement benefits items Prior service costs $ 0.2 $ 0.2 $ 0.4 $ 0.4 Actuarial losses 0.5 1.0 1.0 2.1 Total before tax 0.7 1.2 1.4 2.5 Tax benefit (0.2 ) (0.4 ) (0.4 ) (0.9 ) Net of tax $ 0.5 $ 0.8 $ 1.0 $ 1.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The calculation of diluted earnings per common share was as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Diluted Earnings Per Share: Basic weighted-average common shares outstanding 74,519,741 74,696,616 74,685,082 74,486,209 Dilutive stock options and other equity-based compensation awards 977,808 1,086,846 1,077,722 1,095,693 Diluted weighted-average common shares outstanding 75,497,549 75,783,462 75,762,804 75,581,902 |
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 Six Months Ended 2018 2017 2018 2017 Stock options 254,000 389,950 257,837 391,962 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 2017 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 487.2 $ — $ 487.2 $ 369.4 $ — $ 369.4 Telehandlers 234.9 — 234.9 161.6 — 161.6 Other 205.8 — 205.8 192.2 — 192.2 Total access equipment 927.9 — 927.9 723.2 — 723.2 Defense 427.8 0.4 428.2 445.7 0.4 446.1 Fire & emergency 269.1 4.0 273.1 233.5 4.0 237.5 Commercial Concrete placement 114.6 — 114.6 112.7 — 112.7 Refuse collection 117.8 — 117.8 79.1 — 79.1 Other 29.1 2.4 31.5 22.3 1.9 24.2 Total commercial 261.5 2.4 263.9 214.1 1.9 216.0 Corporate and intersegment eliminations 0.1 (6.8 ) (6.7 ) 1.8 (6.3 ) (4.5 ) Consolidated $ 1,886.4 $ — $ 1,886.4 $ 1,618.3 $ — $ 1,618.3 Six Months Ended March 31, 2018 2017 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 810.7 $ — $ 810.7 $ 603.1 $ — $ 603.1 Telehandlers 364.4 — 364.4 254.9 — 254.9 Other 381.0 — 381.0 354.4 — 354.4 Total access equipment 1,556.1 — 1,556.1 1,212.4 — 1,212.4 Defense 921.0 0.7 921.7 739.9 0.7 740.6 Fire & emergency 494.0 8.2 502.2 462.6 7.4 470.0 Commercial Concrete placement 226.1 — 226.1 197.1 — 197.1 Refuse collection 219.0 — 219.0 171.3 — 171.3 Other 56.1 4.1 60.2 43.8 3.0 46.8 Total commercial 501.2 4.1 505.3 412.2 3.0 415.2 Corporate and intersegment eliminations 0.4 (13.0 ) (12.6 ) 2.6 (11.1 ) (8.5 ) Consolidated $ 3,472.7 $ — $ 3,472.7 $ 2,829.7 $ — $ 2,829.7 |
Schedule of income (loss) from continuing operations by product lines and reportable segments | Three Months Ended Six Months Ended March 31, 2018 2017 2018 2017 Operating income (loss): Access equipment $ 97.7 $ 42.1 $ 111.5 $ 66.5 Defense 47.8 48.7 113.0 72.5 Fire & emergency 36.0 21.8 61.1 38.8 Commercial 16.4 6.0 24.7 10.6 Corporate (42.0 ) (38.2 ) (80.6 ) (71.8 ) Consolidated 155.9 80.4 229.7 116.6 Interest expense, net of interest income (8.0 ) (14.1 ) (21.7 ) (28.0 ) Miscellaneous other income (expense) (0.8 ) 1.2 (0.3 ) 2.5 Income before income taxes and earnings of unconsolidated affiliates $ 147.1 $ 67.5 $ 207.7 $ 91.1 |
Schedule of identifiable assets by business segments and by geographical segments | March 31, September 30, 2018 2017 Identifiable assets: Access equipment: U.S. $ 2,095.2 $ 1,905.5 Europe 547.2 541.0 Rest of the World 249.8 246.1 Total access equipment 2,892.2 2,692.6 Defense: U.S. 781.5 775.1 Rest of the World 6.7 7.0 Total defense 788.2 782.1 Fire & emergency - U.S. 533.7 552.6 Commercial: U.S. 398.8 377.3 Rest of the World 49.5 42.3 Total commercial 448.3 419.6 Corporate: U.S. (a) 424.9 543.9 Rest of the World (b) 107.2 108.1 Total corporate 532.1 652.0 Consolidated $ 5,194.5 $ 5,098.9 _________________________ (a) Primarily includes cash and short-term investments. (b) Primarily 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): Six Months Ended March 31, 2018 2017 Net sales: United States $ 2,793.6 $ 2,237.5 Other North America 111.0 82.7 Europe, Africa and Middle East 406.0 351.2 Rest of the World 162.1 158.3 Consolidated $ 3,472.7 $ 2,829.7 |
Separate Financial Informatio44
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,591.9 $ 356.7 $ (62.2 ) $ 1,886.4 Cost of sales 0.5 1,336.7 275.7 (61.9 ) 1,551.0 Gross income (loss) (0.5 ) 255.2 81.0 (0.3 ) 335.4 Selling, general and administrative expenses 38.9 101.7 29.7 — 170.3 Amortization of purchased intangibles — 8.3 0.9 — 9.2 Operating income (loss) (39.4 ) 145.2 50.4 (0.3 ) 155.9 Interest expense (19.2 ) (13.9 ) (0.7 ) 17.7 (16.1 ) Interest income 1.1 14.6 10.1 (17.7 ) 8.1 Miscellaneous, net 25.2 (40.5 ) 14.5 — (0.8 ) Income (loss) before income taxes (32.3 ) 105.4 74.3 (0.3 ) 147.1 Provision for (benefit from) income taxes (7.9 ) 26.2 18.0 (0.1 ) 36.2 Income (loss) before equity in earnings of affiliates (24.4 ) 79.2 56.3 (0.2 ) 110.9 Equity in earnings of consolidated subsidiaries 135.2 39.2 26.8 (201.2 ) — Equity in losses of unconsolidated affiliates — — (0.1 ) — (0.1 ) Net income 110.8 118.4 83.0 (201.4 ) 110.8 Other comprehensive income (loss), net of tax 17.3 (0.5 ) 17.2 (16.7 ) 17.3 Comprehensive income $ 128.1 $ 117.9 $ 100.2 $ (218.1 ) $ 128.1 Condensed Consolidating Statement of Income and Comprehensive Income For the Three Months Ended March 31, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 1,378.1 $ 285.1 $ (44.9 ) $ 1,618.3 Cost of sales (0.2 ) 1,132.9 268.9 (44.6 ) 1,357.0 Gross income (loss) 0.2 245.2 16.2 (0.3 ) 261.3 Selling, general and administrative expenses 35.6 103.9 30.3 — 169.8 Amortization of purchased intangibles — 9.6 1.5 — 11.1 Operating income (loss) (35.4 ) 131.7 (15.6 ) (0.3 ) 80.4 Interest expense (13.6 ) (13.7 ) (0.5 ) 12.7 (15.1 ) Interest income 0.6 4.2 8.9 (12.7 ) 1.0 Miscellaneous, net 24.3 (54.7 ) 31.6 — 1.2 Income (loss) before income taxes (24.1 ) 67.5 24.4 (0.3 ) 67.5 Provision for (benefit from) income taxes (9.3 ) 22.4 10.6 (0.1 ) 23.6 Income (loss) before equity in earnings of affiliates (14.8 ) 45.1 13.8 (0.2 ) 43.9 Equity in earnings of consolidated subsidiaries 59.1 7.9 8.0 (75.0 ) — Equity in earnings of unconsolidated affiliates — — 0.4 — 0.4 Net income 44.3 53.0 22.2 (75.2 ) 44.3 Other comprehensive income (loss), net of tax 11.5 1.5 9.4 (10.9 ) 11.5 Comprehensive income $ 55.8 $ 54.5 $ 31.6 $ (86.1 ) $ 55.8 Condensed Consolidating Statement of Income and Comprehensive Income For the Six Months Ended March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 2,964.1 $ 624.6 $ (116.0 ) $ 3,472.7 Cost of sales (0.4 ) 2,489.7 521.4 (115.6 ) 2,895.1 Gross income (loss) 0.4 474.4 103.2 (0.4 ) 577.6 Selling, general and administrative expenses 76.7 192.0 59.4 — 328.1 Amortization of purchased intangibles — 17.5 2.3 — 19.8 Operating income (loss) (76.3 ) 264.9 41.5 (0.4 ) 229.7 Interest expense (38.2 ) (27.4 ) (1.5 ) 35.6 (31.5 ) Interest income 2.4 22.6 20.4 (35.6 ) 9.8 Miscellaneous, net 50.4 (102.5 ) 51.8 — (0.3 ) Income (loss) before income taxes (61.7 ) 157.6 112.2 (0.4 ) 207.7 Provision for (benefit from) income taxes (4.9 ) 62.8 (17.1 ) 0.1 40.9 Income (loss) before equity in earnings of affiliates (56.8 ) 94.8 129.3 (0.5 ) 166.8 Equity in earnings of consolidated subsidiaries 224.0 96.3 (4.8 ) (315.5 ) — Equity in earnings of unconsolidated affiliates — — 0.4 — 0.4 Net income 167.2 191.1 124.9 (316.0 ) 167.2 Other comprehensive income (loss), net of tax 19.9 (0.3 ) 19.4 (19.1 ) 19.9 Comprehensive income $ 187.1 $ 190.8 $ 144.3 $ (335.1 ) $ 187.1 Condensed Consolidating Statement of Income and Comprehensive Income For the Six Months Ended March 31, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 2,427.9 $ 488.0 $ (86.2 ) $ 2,829.7 Cost of sales (1.0 ) 2,007.4 448.4 (86.1 ) 2,368.7 Gross income (loss) 1.0 420.5 39.6 (0.1 ) 461.0 Selling, general and administrative expenses 67.2 195.4 58.2 — 320.8 Amortization of purchased intangibles — 19.2 4.4 — 23.6 Operating income (loss) (66.2 ) 205.9 (23.0 ) (0.1 ) 116.6 Interest expense (27.2 ) (27.3 ) (1.0 ) 25.7 (29.8 ) Interest income 1.3 8.3 17.9 (25.7 ) 1.8 Miscellaneous, net 46.8 (106.9 ) 62.6 — 2.5 Income (loss) before income taxes (45.3 ) 80.0 56.5 (0.1 ) 91.1 Provision for (benefit from) income taxes (14.4 ) 25.4 17.8 — 28.8 Income (loss) before equity in earnings of affiliates (30.9 ) 54.6 38.7 (0.1 ) 62.3 Equity in earnings of consolidated subsidiaries 94.4 23.6 (2.7 ) (115.3 ) — Equity in earnings of unconsolidated affiliates — — 1.2 — 1.2 Net income 63.5 78.2 37.2 (115.4 ) 63.5 Other comprehensive income (loss), net of tax (18.1 ) 0.6 (19.8 ) 19.2 (18.1 ) Comprehensive income $ 45.4 $ 78.8 $ 17.4 $ (96.2 ) $ 45.4 |
Condensed consolidating balance sheet | Condensed Consolidating Balance Sheet As of March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 263.2 $ 4.6 $ 20.1 $ — $ 287.9 Receivables, net 19.8 1,152.9 338.2 (53.6 ) 1,457.3 Inventories, net — 881.9 439.9 — 1,321.8 Other current assets 50.4 27.0 9.2 — 86.6 Total current assets 333.4 2,066.4 807.4 (53.6 ) 3,153.6 Investment in and advances to consolidated subsidiaries 3,361.1 1,450.6 (57.5 ) (4,754.2 ) — Intercompany receivables 47.9 295.8 1,956.7 (2,300.4 ) — Intangible assets, net — 891.6 619.2 — 1,510.8 Other long-term assets 103.9 255.0 171.2 — 530.1 Total assets $ 3,846.3 $ 4,959.4 $ 3,497.0 $ (7,108.2 ) $ 5,194.5 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 7.8 $ 571.3 $ 180.0 $ (53.1 ) $ 706.0 Customer advances — 561.2 5.0 — 566.2 Other current liabilities 79.6 268.5 120.0 (0.5 ) 467.6 Total current liabilities 87.4 1,401.0 305.0 (53.6 ) 1,739.8 Long-term debt, less current maturities 818.8 — — — 818.8 Intercompany payables 491.5 1,761.0 47.9 (2,300.4 ) — Other long-term liabilities 99.0 176.3 11.0 — 286.3 Total shareholders' equity 2,349.6 1,621.1 3,133.1 (4,754.2 ) 2,349.6 Total liabilities and shareholders' equity $ 3,846.3 $ 4,959.4 $ 3,497.0 $ (7,108.2 ) $ 5,194.5 Condensed Consolidating Balance Sheet As of September 30, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ 399.5 $ 4.6 $ 42.9 $ — $ 447.0 Receivables, net 28.3 1,025.5 316.1 (63.6 ) 1,306.3 Inventories, net — 819.3 379.1 — 1,198.4 Other current assets 45.4 31.9 10.8 — 88.1 Total current assets 473.2 1,881.3 748.9 (63.6 ) 3,039.8 Investment in and advances to consolidated subsidiaries 3,138.3 1,340.4 (59.6 ) (4,419.1 ) — Intercompany receivables 48.0 261.6 1,971.8 (2,281.4 ) — Intangible assets, net — 909.5 611.3 — 1,520.8 Other long-term assets 69.1 242.9 226.3 — 538.3 Total assets $ 3,728.6 $ 4,635.7 $ 3,498.7 $ (6,764.1 ) $ 5,098.9 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 11.6 $ 517.2 $ 176.4 $ (54.2 ) $ 651.0 Customer advances — 510.7 2.7 — 513.4 Other current liabilities 105.2 304.9 118.0 (9.4 ) 518.7 Total current liabilities 116.8 1,332.8 297.1 (63.6 ) 1,683.1 Long-term debt, less current maturities 807.9 — — — 807.9 Intercompany payables 452.9 1,780.5 48.0 (2,281.4 ) — Other long-term liabilities 43.6 134.1 122.8 — 300.5 Total shareholders' equity 2,307.4 1,388.3 3,030.8 (4,419.1 ) 2,307.4 Total liabilities and shareholders' equity $ 3,728.6 $ 4,635.7 $ 3,498.7 $ (6,764.1 ) $ 5,098.9 |
Condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows For the Six Months Ended March 31, 2018 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (26.5 ) $ 48.1 $ 22.3 $ — $ 43.9 Investing activities: Additions to property, plant and equipment (3.4 ) (22.3 ) (12.2 ) — (37.9 ) Additions to equipment held for rental — — (2.9 ) — (2.9 ) Proceeds from sale of equipment held for rental — — 4.4 — 4.4 Intercompany investing — (6.2 ) (37.9 ) 44.1 — Other investing activities (0.5 ) — — — (0.5 ) Net cash provided (used) by investing activities (3.9 ) (28.5 ) (48.6 ) 44.1 (36.9 ) Financing activities: Proceeds from issuance of debt (original maturities greater than three months) — — 13.1 — 13.1 Repayments of debt (original maturities greater than three months) (10.0 ) — (7.9 ) — (17.9 ) Repurchases of Common Stock (136.2 ) — — — (136.2 ) Dividends paid (35.9 ) — — — (35.9 ) Proceeds from exercise of stock options 12.5 — — — 12.5 Intercompany financing 63.7 (19.5 ) (0.1 ) (44.1 ) — Net cash provided (used) by financing activities (105.9 ) (19.5 ) 5.1 (44.1 ) (164.4 ) Effect of exchange rate changes on cash — (0.1 ) (1.6 ) — (1.7 ) Decrease in cash and cash equivalents (136.3 ) — (22.8 ) — (159.1 ) Cash and cash equivalents at beginning of period 399.5 4.6 42.9 — 447.0 Cash and cash equivalents at end of period $ 263.2 $ 4.6 $ 20.1 $ — $ 287.9 Condensed Consolidating Statement of Cash Flows For the Six Months Ended March 31, 2017 Oshkosh Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net cash provided (used) by operating activities $ (20.4 ) $ 193.2 $ (24.7 ) $ — $ 148.1 Investing activities: Additions to property, plant and equipment (1.6 ) (19.6 ) (6.8 ) — (28.0 ) Additions to equipment held for rental — — (24.6 ) — (24.6 ) Proceeds from sale of equipment held for rental — — 19.8 — 19.8 Intercompany investing — 387.0 — (387.0 ) — Other investing activities (0.8 ) (0.1 ) — — (0.9 ) Net cash provided (used) by investing activities (2.4 ) 367.3 (11.6 ) (387.0 ) (33.7 ) 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 (31.3 ) — — — (31.3 ) Proceeds from exercise of stock options 33.2 — — — 33.2 Intercompany financing 132.0 (559.5 ) 40.5 387.0 — Net cash provided (used) by financing activities 110.9 (559.5 ) 40.5 387.0 (21.1 ) Effect of exchange rate changes on cash — — (1.8 ) — (1.8 ) Increase in cash and cash equivalents 88.1 1.0 2.4 — 91.5 Cash and cash equivalents at beginning of period 285.4 1.7 34.8 — 321.9 Cash and cash equivalents at end of period $ 373.5 $ 2.7 $ 37.2 $ — $ 413.4 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
U.S. government: | ||||||
Amounts billed | $ 78.9 | $ 137.8 | ||||
Costs and profits not billed | 206.1 | 137.9 | ||||
Contract receivables | 285 | 275.7 | ||||
Other trade receivables | 1,128.8 | 985.4 | ||||
Finance receivables | 28.6 | 5.8 | ||||
Notes receivable | 7.7 | 34.2 | ||||
Other receivables | 46.2 | 46.3 | ||||
Receivables, gross | 1,496.3 | 1,347.4 | ||||
Less allowance for doubtful accounts | (12.9) | $ (14.5) | (18.3) | $ (19.5) | $ (20.2) | $ (21.2) |
Receivables, net | 1,483.4 | 1,329.1 | ||||
Classification of receivables | ||||||
Current receivables | 1,457.3 | 1,306.3 | ||||
Long-term receivables (included in “Other long-term assets”) | $ 26.1 | $ 22.8 |
Receivables (Details 2)
Receivables (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Change in allowance for doubtful accounts | |||||
Allowance for doubtful accounts at beginning of period | $ 14.5 | $ 20.2 | $ 18.3 | $ 21.2 | |
Provision for doubtful accounts, net of recoveries | (3.7) | 0.4 | (7.5) | 0.4 | |
Charge-off of accounts | 1.9 | (1.2) | 1.8 | (1.5) | |
Foreign currency translation | 0.2 | 0.1 | 0.3 | (0.6) | |
Allowance for doubtful accounts at end of period | 12.9 | 19.5 | 12.9 | 19.5 | |
Finance Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables on nonaccrual status | 3.6 | 3.6 | $ 3.7 | ||
Receivables past due 90 days or more and still accruing | 0 | 0 | 0 | ||
Receivables subject to general reserves | 17 | 17 | 2.1 | ||
Allowance for doubtful accounts | (0.3) | (0.3) | 0 | ||
Receivables subject to specific reserves | 11.6 | 11.6 | 3.7 | ||
Allowance for doubtful accounts | (1.4) | (1.4) | (1.5) | ||
Change in allowance for doubtful accounts | |||||
Allowance for doubtful accounts at beginning of period | 1.5 | 2.1 | 1.5 | 1 | |
Provision for doubtful accounts, net of recoveries | 0.2 | 0.4 | 0.2 | 1.5 | |
Charge-off of accounts | 0 | 0 | 0 | 0 | |
Foreign currency translation | 0 | 0 | 0 | 0 | |
Allowance for doubtful accounts at end of period | 1.7 | 2.5 | 1.7 | 2.5 | |
Notes Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables on nonaccrual status | 3.8 | 3.8 | 21.3 | ||
Receivables past due 90 days or more and still accruing | 0 | 0 | 0 | ||
Receivables subject to general reserves | 0 | 0 | 0 | ||
Allowance for doubtful accounts | 0 | 0 | 0 | ||
Receivables subject to specific reserves | 7.7 | 7.7 | 34.2 | ||
Allowance for doubtful accounts | (3.8) | (3.8) | $ (10) | ||
Change in allowance for doubtful accounts | |||||
Allowance for doubtful accounts at beginning of period | 6.1 | 11.6 | 10 | 13 | |
Provision for doubtful accounts, net of recoveries | (4.5) | (0.1) | (8.5) | (0.7) | |
Charge-off of accounts | 2 | (0.4) | 2 | (0.5) | |
Foreign currency translation | 0.2 | 0.2 | 0.3 | (0.5) | |
Allowance for doubtful accounts at end of period | 3.8 | 11.3 | 3.8 | 11.3 | |
Trade and Other Receivable | |||||
Change in allowance for doubtful accounts | |||||
Allowance for doubtful accounts at beginning of period | 6.9 | 6.5 | 6.8 | 7.2 | |
Provision for doubtful accounts, net of recoveries | 0.6 | 0.1 | 0.8 | (0.4) | |
Charge-off of accounts | (0.1) | (0.8) | (0.2) | (1) | |
Foreign currency translation | 0 | (0.1) | 0 | (0.1) | |
Allowance for doubtful accounts at end of period | $ 7.4 | $ 5.7 | $ 7.4 | $ 5.7 |
Receivables (Details 3)
Receivables (Details 3) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018USD ($)Party | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)Party | Mar. 31, 2017USD ($) | |
Finance and notes receivables | ||||
Gross Profit | $ 335.4 | $ 261.3 | $ 577.6 | $ 461 |
Interest expense, net of interest income | $ (8) | $ (14.1) | $ (21.7) | $ (28) |
Notes Receivable | Credit concentration | ||||
Finance and notes receivables | ||||
Receivables due from third parties (as a percent) | 76.00% | |||
Notes Receivable, Concentration Risk, Number of Parties | Party | 2 | 2 | ||
Restructured finance receivables | ||||
Finance and notes receivables | ||||
Financing receivable, modifications, recorded investment | $ 2.9 | $ 2.9 | ||
Restructured notes receivables | ||||
Finance and notes receivables | ||||
Financing receivable, modifications, recorded investment | 3.8 | 3.8 | ||
Customer Contracts [Member] | ||||
Finance and notes receivables | ||||
Gross Profit | 11.5 | 11.5 | ||
Collection of a receivable previously considered uncollectable | 2.4 | 2.4 | ||
Interest expense, net of interest income | 6.6 | 6.6 | ||
Proceeds from Collection of Notes Receivable | $ 19.6 | $ 19.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 642.4 | $ 578.1 |
Partially finished products | 359.1 | 336.6 |
Finished products | 434.5 | 398.1 |
Inventories at FIFO cost | 1,436 | 1,312.8 |
Less: Progress/performance-based payments on U.S. government contracts | (27.3) | (31.6) |
Excess of FIFO cost over LIFO cost | (86.9) | (82.8) |
Inventory net | $ 1,321.8 | $ 1,198.4 |
Property, Plant and Equipment49
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 1,210.3 | $ 1,210.3 | $ 1,188.8 | ||
Less accumulated depreciation | (751.6) | (751.6) | (718.9) | ||
Property, plant and equipment, net | 458.7 | 458.7 | 469.9 | ||
Depreciation expenses | 19.9 | $ 20.4 | 40 | $ 39.3 | |
Land and land improvements | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 59 | 59 | 58.5 | ||
Buildings | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 302 | 302 | 298.5 | ||
Machinery and equipment | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 664.7 | 664.7 | 652.2 | ||
Software and related costs | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 156.8 | 156.8 | 149.6 | ||
Equipment on operating lease to others | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 27.8 | 27.8 | 30 | ||
Equipment on operating lease, net | $ 18.6 | $ 18.6 | $ 21.6 | ||
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 Intang50
Goodwill and Purchased Intangible Assets (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2018USD ($) | |
Changes in goodwill | |
Net goodwill at the beginning of the period | $ 1,013 |
Foreign currency translation | 7.4 |
Net goodwill at the end of the period | 1,020.4 |
Access Equipment | |
Changes in goodwill | |
Net goodwill at the beginning of the period | 885.9 |
Foreign currency translation | 7.5 |
Net goodwill at the end of the period | 893.4 |
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 | 21 |
Foreign currency translation | (0.1) |
Net goodwill at the end of the period | $ 20.9 |
Goodwill and Purchased Intang51
Goodwill and Purchased Intangible Assets (Details 2) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | $ 2,130.4 | $ 2,123 |
Accumulated Impairment | (1,110) | (1,110) |
Net | 1,020.4 | 1,013 |
Access Equipment | ||
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | 1,825.5 | 1,818 |
Accumulated Impairment | (932.1) | (932.1) |
Net | 893.4 | 885.9 |
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 | 196.8 | 196.9 |
Accumulated Impairment | (175.9) | (175.9) |
Net | $ 20.9 | $ 21 |
Goodwill and Purchased Intang52
Goodwill and Purchased Intangible Assets (Details 3) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2017 | |
Purchased intangible assets | ||
Weighted- Average Life (in years) | 14 years 8 months | 14 years 5 months |
Gross | $ 731.8 | $ 731.5 |
Accumulated Amortization | (631.4) | (611.5) |
Net | 100.4 | 120 |
Non-amortizable trade names | 390 | 387.8 |
Intangible assets excluding goodwill, gross | 1,121.8 | 1,119.3 |
Purchased intangible assets, net | 490.4 | $ 507.8 |
Future amortization expense of purchased intangible assets for the five years succeeding fiscal year 2018 | ||
2018 (remaining six months) | 18.5 | |
2,019 | 36.9 | |
2,020 | 11 | |
2,021 | 5.3 | |
2,022 | 4.9 | |
2,023 | $ 3.5 | |
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 | (30.2) | (29.5) |
Net | $ 25.2 | $ 25.9 |
Technology-related | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 11 years 11 months | 11 years 11 months |
Gross | $ 104.8 | $ 104.7 |
Accumulated Amortization | (101.5) | (99.7) |
Net | $ 3.3 | $ 5 |
Customer relationships | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 12 years 9 months | 12 years 9 months |
Gross | $ 555 | $ 555 |
Accumulated Amortization | (484.9) | (467.6) |
Net | $ 70.1 | $ 87.4 |
Other | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 16 years 6 months | 16 years 4 months |
Gross | $ 16.6 | $ 16.4 |
Accumulated Amortization | (14.8) | (14.7) |
Net | $ 1.8 | $ 1.7 |
Credit Agreements (Details)
Credit Agreements (Details) | 1 Months Ended | 6 Months Ended | ||||
Mar. 31, 2015USD ($) | Feb. 28, 2014USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jan. 31, 2015USD ($) | Mar. 21, 2014USD ($) | |
Long term debt | ||||||
Principal | $ 825,000,000 | $ 835,000,000 | ||||
Debt Issuance Costs | (6,200,000) | (7,100,000) | ||||
Debt, Net | 818,800,000 | 827,900,000 | ||||
Long term debt net of current maturities | 818,800,000 | 807,900,000 | ||||
Other Short-term Borrowings | 8,700,000 | 3,000,000 | ||||
Current maturities of long-term debt | 0 | (20,000,000) | ||||
Revolving line of credit and current maturities of long-term debt | $ 8,700,000 | 23,000,000 | ||||
Credit agreement | ||||||
Long term debt | ||||||
Interest spread in basis points (as a percent) | 1.50% | |||||
Maximum leverage ratio | 4.50 | |||||
Minimum interest coverage ratio | 2.50 | |||||
Maximum senior secured leverage ratio | 3 | |||||
Debt instrument, covenant terms, senior secured leverage ratio without collateral | 3.75 | |||||
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 per the credit agreement 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 per the credit agreement and ending on the last day of the fiscal quarter | 100.00% | |||||
Percentage of aggregate net proceeds received by the Company subsequent to the date defined in the credit agreement 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 | ||||||
Debt instruments | ||||||
Debt Instrument, Fair Value Disclosure | $ 325,000,000 | 335,000,000 | ||||
Long term debt | ||||||
Principal | 325,000,000 | 335,000,000 | ||||
Debt Issuance Costs | (500,000) | (800,000) | ||||
Debt, Net | 324,500,000 | 334,200,000 | $ 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) | 3.15% | |||||
Revolving Credit Facility | ||||||
Long term debt | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 850,000,000 | $ 600,000,000 | ||||
Available borrowing capacity | $ 760,900,000 | |||||
Letter of credit | ||||||
Long term debt | ||||||
Letters of credit outstanding | $ 89,100,000 | |||||
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% | |||||
5.375% Senior notes due March 2022 [Member] | ||||||
Debt instruments | ||||||
Debt Instrument, Fair Value Disclosure | $ 258,000,000 | $ 260,000,000 | ||||
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 | (3,100,000) | (3,500,000) | ||||
Debt, Net | 246,900,000 | 246,500,000 | ||||
Debt issued | $ 250,000,000 | |||||
5.375% Senior Notes due March 2025 | ||||||
Debt instruments | ||||||
Debt Instrument, Fair Value Disclosure | $ 258,000,000 | $ 264,000,000 | ||||
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 | (2,600,000) | (2,800,000) | ||||
Debt, Net | $ 247,400,000 | $ 247,200,000 | ||||
Debt issued | $ 250,000,000 |
Warranties (Details)
Warranties (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Product Warranty Liability [Line Items] | ||
Extended product warranty accrual | $ 31.1 | $ 29.2 |
Changes in warranty liability | ||
Balance at beginning of period | 98.8 | 89.6 |
Warranty provisions | 24.7 | 24.7 |
Settlements made | (23.8) | (25.7) |
Changes in liability for pre-existing warranties, net | 1.5 | (0.5) |
Premiums received | 5.6 | 5.4 |
Amortization of premiums received | (5) | (5.8) |
Foreign currency translation | 0.3 | (0.7) |
Balance at end of period | $ 102.1 | $ 87 |
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 | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Guarantee Obligations | ||||
Guarantee obligations, maximum exposure | $ 674 | $ 674 | ||
Aggregate amount of indebtedness which the Company is a party to through guarantee agreements | 121.5 | 121.5 | ||
Changes in provision for loss on customer guarantees | ||||
Balance at beginning of period | 9.8 | $ 8.5 | 9.1 | $ 8.4 |
Provision for new credit guarantees | 0.4 | 0.9 | 1.7 | 1.5 |
Changes for pre-existing guarantees, net | (0.6) | 0.4 | (0.6) | 0.5 |
Amortization of previous guarantees | (0.6) | (0.8) | (1.2) | (1.3) |
Guarantee Obligations Currency Translation Increase (Decrease) | 0.1 | 0.1 | 0.1 | 0 |
Balance at end of period | $ 9.1 | $ 9.1 | $ 9.1 | $ 9.1 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 6 Months Ended | 31 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2018 | 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) | 5,925,561 | 5,925,561 | 10,299,198 |
Treasury stock, shares, acquired (in shares) | 1,587,013 | 4,373,637 | |
Treasury stock cumulative value acquired cost method | $ 240.7 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 128.7 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Fair value measured on recurring basis - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 | |
Assets: | |||
SERP plan assets | [1] | $ 21.6 | $ 21.7 |
Foreign currency exchange derivatives | [2] | 0.6 | 0.5 |
Interest rate contracts | [3] | 0.3 | |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0.8 | 1.2 |
Interest rate contracts | [3] | 0.7 | |
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 | |
Level 2 | |||
Assets: | |||
SERP plan assets | [1] | 0 | 0 |
Foreign currency exchange derivatives | [2] | 0.6 | 0.5 |
Interest rate contracts | [3] | 0.3 | |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0.8 | 1.2 |
Interest rate contracts | [3] | 0.7 | |
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 | |
[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 | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 5.7 | $ 6.5 | $ 14.2 | $ 14.4 |
Stock-based compensation expense, net of tax | $ 4.4 | $ 4.1 | $ 11 | $ 9.1 |
2017 Stock Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Common stock reserved for issuance stock awards (in shares) | 8,046,263 | 8,046,263 |
Restructuring and Other Charg59
Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jan. 26, 2017 | Sep. 21, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 1.8 | $ 16.7 | $ 7.6 | $ 17.8 | ||
Selling, General and Administrative Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1 | 0 | 2.9 | 0.4 | ||
Cost of Sales | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0.8 | 16.7 | 4.7 | 17.4 | ||
Employee Severance and Termination Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 3.5 | 15.3 | ||||
Other Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 3.2 | 1 | ||||
Access Equipment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring charges | 78 | 78 | ||||
Restructuring charges | 0 | 16.7 | 3.3 | 17.4 | ||
Access Equipment | Selling, General and Administrative Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0 | 0 | 0 | 0 | ||
Access Equipment | Cost of Sales | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0 | 16.7 | 3.3 | 17.4 | ||
Access Equipment | Operating Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring charges | 35 | 35 | ||||
Restructuring charges | 5.2 | 0.9 | 18.2 | 0.9 | ||
Restructuring and Related Cost, Expected Cost Remaining | 7 | 7 | ||||
Commercial | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1.8 | 0 | 4.3 | 0.4 | ||
Commercial | Selling, General and Administrative Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1 | 0 | 2.9 | 0.4 | ||
Commercial | Cost of Sales | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 0.8 | 0 | 1.4 | 0 | ||
Minimum | Access Equipment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring charges | $ 48 | |||||
Maximum | Access Equipment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring charges | $ 53 | |||||
Access Equipment Restructuring Plan 1 | Access Equipment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring charges | $ 3 | |||||
Restructuring charges | 0.2 | 0.4 | 0.2 | 1.1 | ||
Access Equipment Restructuring Plan 2 | Access Equipment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 3.1 | $ 16.3 | 3.1 | $ 16.3 | ||
Restructuring and Related Cost, Expected Cost Remaining | $ 3 | $ 3 |
Restructuring and Other Charg60
Restructuring and Other Charges (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 20.8 | $ 0.9 | ||
Restructuring provision | $ 1.8 | $ 16.7 | 7.6 | 17.8 |
Utilized - cash | (15.2) | (1.4) | ||
Utilized - noncash | (0.9) | (1.5) | ||
Foreign currency translation | 0.7 | 0 | ||
Ending Balance | 13 | 15.8 | 13 | 15.8 |
Employee Severance and Termination Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 19.8 | 0.9 | ||
Restructuring provision | 3.5 | 15.3 | ||
Utilized - cash | (13.1) | (1.2) | ||
Utilized - noncash | 0 | 0 | ||
Foreign currency translation | 0.6 | 0 | ||
Ending Balance | 10.8 | 15 | 10.8 | 15 |
Property, Plant and Equipment Impairment | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Restructuring provision | 0.9 | 1.5 | ||
Utilized - cash | 0 | 0 | ||
Utilized - noncash | (0.9) | (1.5) | ||
Foreign currency translation | 0 | 0 | ||
Ending Balance | 0 | 0 | 0 | 0 |
Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 1 | 0 | ||
Restructuring provision | 3.2 | 1 | ||
Utilized - cash | (2.1) | (0.2) | ||
Utilized - noncash | 0 | 0 | ||
Foreign currency translation | 0.1 | 0 | ||
Ending Balance | 2.2 | 0.8 | 2.2 | 0.8 |
Access Equipment | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | 0 | 16.7 | 3.3 | 17.4 |
Commercial | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | 1.8 | 0 | 4.3 | 0.4 |
Cost of Sales | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | 0.8 | 16.7 | 4.7 | 17.4 |
Cost of Sales | Access Equipment | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | 0 | 16.7 | 3.3 | 17.4 |
Cost of Sales | Commercial | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | 0.8 | 0 | 1.4 | 0 |
Selling, General and Administrative Expenses | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | 1 | 0 | 2.9 | 0.4 |
Selling, General and Administrative Expenses | Access Equipment | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | 0 | 0 | 0 | 0 |
Selling, General and Administrative Expenses | Commercial | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring provision | $ 1 | $ 0 | $ 2.9 | $ 0.4 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Pension benefit | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 3.1 | $ 3.2 | $ 6.2 | $ 6.5 |
Interest cost | 4.5 | 4.4 | 9 | 8.8 |
Expected return on plan assets | (5.1) | (4.6) | (10.1) | (9.1) |
Amortization of prior service cost | 0.5 | 0.5 | 0.9 | 0.9 |
Amortization of net actuarial loss | 0.4 | 1 | 0.9 | 2 |
Net periodic benefit cost | 3.4 | 4.5 | 6.9 | 9.1 |
Other post-employment benefit | ||||
Components of net periodic benefit cost | ||||
Service cost | 0.9 | 0.7 | 1.8 | 1.3 |
Interest cost | 0.4 | 0.4 | 0.9 | 0.8 |
Amortization of prior service cost | (0.3) | (0.3) | (0.5) | (0.5) |
Amortization of net actuarial loss | 0.1 | 0 | 0.1 | 0.1 |
Net periodic benefit cost | $ 1.1 | $ 0.8 | $ 2.3 | $ 1.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Effective income tax rate (as a percent) | 24.60% | 35.00% | 19.70% | 31.60% | |||
Income tax expense | $ 36.2 | $ 23.6 | $ 40.9 | $ 28.8 | |||
Income tax expense (benefit), tax credit, discrete items | (1.1) | (1.5) | (11.4) | (4.9) | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 1.2 | $ 1.8 | 4.5 | 2 | |||
Other Tax Expense (Benefit) | (6.5) | ||||||
Gross unrecognized tax benefits, excluding income tax penalties and interest | 36.6 | 36.6 | $ 37.2 | ||||
Net unrecognized tax benefits, excluding interest and penalties that would affect the Company's net income if recognized | 20.5 | 20.5 | |||||
Interest and penalties benefit (cost) | 0.6 | 0.9 | |||||
Accruals for payment of interest and penalties | 10.6 | 10.6 | |||||
Estimated reduction in unrecognized tax benefits due to tax audit resolutions during the next twelve months | $ 2.7 | 2.7 | |||||
Domestic Tax Authority [Member] | |||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (2.9) | ||||||
Tax Reform [Member] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | |||||
Deferred Federal Income Tax Expense (Benefit) | 23.9 | ||||||
Current Foreign Income Tax Expense (Benefit) | $ 17.4 |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ 2,307.4 | |||
Total other comprehensive income (loss), net of tax | $ 17.3 | $ 11.5 | 19.9 | $ (18.1) |
Balance at end of period | 2,349.6 | 2,349.6 | ||
Employee Pension and Postretirement Benefits, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (45.7) | (73.1) | (46.2) | (73.9) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.5 | 0.8 | 1 | 1.6 |
Total other comprehensive income (loss), net of tax | 0.5 | 0.8 | 1 | 1.6 |
Balance at end of period | (45.2) | (72.3) | (45.2) | (72.3) |
Cumulative Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (76.5) | (131.5) | (78.6) | (101.1) |
Other comprehensive income (loss) before reclassifications | 16.5 | 10.7 | 18.6 | (19.7) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 16.5 | 10.7 | 18.6 | (19.7) |
Balance at end of period | (60) | (120.8) | (60) | (120.8) |
Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (0.2) | (0.2) | ||
Other comprehensive income (loss) before reclassifications | 0.3 | 0.3 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 0.3 | 0.3 | ||
Balance at end of period | 0.1 | 0.1 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (122.4) | (204.6) | (125) | (175) |
Other comprehensive income (loss) before reclassifications | 16.8 | 10.7 | 18.9 | (19.7) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.5 | 0.8 | 1 | 1.6 |
Total other comprehensive income (loss), net of tax | 17.3 | 11.5 | 19.9 | (18.1) |
Balance at end of period | $ (105.1) | $ (193.1) | $ (105.1) | $ (193.1) |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Pension and Postretirement Benefits, Net of Tax | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit | $ 0.2 | $ 0.4 | $ 0.4 | $ 0.9 |
Net of tax | 0.5 | 0.8 | 1 | 1.6 |
Total before tax | 0.7 | 1.2 | 1.4 | 2.5 |
Prior service costs | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 0.2 | 0.2 | 0.4 | 0.4 |
Actuarial losses | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | $ 0.5 | $ 1 | $ 1 | $ 2.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Diluted Earnings Per Share: | ||||
Basic weighted-average common shares outstanding (in shares) | 74,519,741 | 74,696,616 | 74,685,082 | 74,486,209 |
Dilutive stock options and other equity-based compensation awards (in shares) | 977,808 | 1,086,846 | 1,077,722 | 1,095,693 |
Diluted weighted-average common shares outstanding (in shares) | 75,497,549 | 75,783,462 | 75,762,804 | 75,581,902 |
Earnings Per Share (Details 2)
Earnings Per Share (Details 2) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Stock options (in shares) | 254,000 | 389,950 | 257,837 | 391,962 |
Contingencies, Significant Es67
Contingencies, Significant Estimates and Concentrations (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2017 | |
Personal injury actions and other | ||
Loss contingencies | ||
Maximum self-insurance available per claim | $ 5,000,000 | |
Reserve for loss contingencies | 41,900,000 | $ 39,100,000 |
Performance and specialty bonds | ||
Loss contingencies | ||
Commitments and contingencies | 699,900,000 | 598,400,000 |
Standby letters of credit | ||
Loss contingencies | ||
Commitments and contingencies | $ 89,100,000 | $ 96,900,000 |
Business Segment Information (D
Business Segment Information (Details) | 6 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments of entity (in segments) | 4 |
Business Segment Information 69
Business Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net sales: | ||||
Net sales | $ 1,886.4 | $ 1,618.3 | $ 3,472.7 | $ 2,829.7 |
Operating income (loss) from continuing operations: | ||||
Operating income (loss): | 155.9 | 80.4 | 229.7 | 116.6 |
Interest expense, net of interest income | (8) | (14.1) | (21.7) | (28) |
Miscellaneous other income (expense) | (0.8) | 1.2 | (0.3) | 2.5 |
Income before income taxes and earnings of unconsolidated affiliates | 147.1 | 67.5 | 207.7 | 91.1 |
Access Equipment | ||||
Net sales: | ||||
Net sales | 927.9 | 723.2 | 1,556.1 | 1,212.4 |
Operating income (loss) from continuing operations: | ||||
Operating income (loss): | 97.7 | 42.1 | 111.5 | 66.5 |
Access Equipment | Aerial work platforms | ||||
Net sales: | ||||
Net sales | 487.2 | 369.4 | 810.7 | 603.1 |
Access Equipment | Telehandlers | ||||
Net sales: | ||||
Net sales | 234.9 | 161.6 | 364.4 | 254.9 |
Access Equipment | Other | ||||
Net sales: | ||||
Net sales | 205.8 | 192.2 | 381 | 354.4 |
Defense | ||||
Net sales: | ||||
Net sales | 427.8 | 445.7 | 921 | 739.9 |
Operating income (loss) from continuing operations: | ||||
Operating income (loss): | 47.8 | 48.7 | 113 | 72.5 |
Fire & Emergency | ||||
Net sales: | ||||
Net sales | 269.1 | 233.5 | 494 | 462.6 |
Operating income (loss) from continuing operations: | ||||
Operating income (loss): | 36 | 21.8 | 61.1 | 38.8 |
Commercial | ||||
Net sales: | ||||
Net sales | 261.5 | 214.1 | 501.2 | 412.2 |
Operating income (loss) from continuing operations: | ||||
Operating income (loss): | 16.4 | 6 | 24.7 | 10.6 |
Commercial | Concrete placement | ||||
Net sales: | ||||
Net sales | 114.6 | 112.7 | 226.1 | 197.1 |
Commercial | Refuse collection | ||||
Net sales: | ||||
Net sales | 117.8 | 79.1 | 219 | 171.3 |
Commercial | Other | ||||
Net sales: | ||||
Net sales | 29.1 | 22.3 | 56.1 | 43.8 |
Intersegment eliminations | ||||
Net sales: | ||||
Net sales | 0.1 | 1.8 | 0.4 | 2.6 |
Operating segments | ||||
Net sales: | ||||
Net sales | 1,886.4 | 1,618.3 | 3,472.7 | 2,829.7 |
Operating segments | Access Equipment | ||||
Net sales: | ||||
Net sales | 927.9 | 723.2 | 1,556.1 | 1,212.4 |
Operating segments | Access Equipment | Aerial work platforms | ||||
Net sales: | ||||
Net sales | 487.2 | 369.4 | 810.7 | 603.1 |
Operating segments | Access Equipment | Telehandlers | ||||
Net sales: | ||||
Net sales | 234.9 | 161.6 | 364.4 | 254.9 |
Operating segments | Access Equipment | Other | ||||
Net sales: | ||||
Net sales | 205.8 | 192.2 | 381 | 354.4 |
Operating segments | Defense | ||||
Net sales: | ||||
Net sales | 428.2 | 446.1 | 921.7 | 740.6 |
Operating segments | Fire & Emergency | ||||
Net sales: | ||||
Net sales | 273.1 | 237.5 | 502.2 | 470 |
Operating segments | Commercial | ||||
Net sales: | ||||
Net sales | 263.9 | 216 | 505.3 | 415.2 |
Operating segments | Commercial | Concrete placement | ||||
Net sales: | ||||
Net sales | 114.6 | 112.7 | 226.1 | 197.1 |
Operating segments | Commercial | Refuse collection | ||||
Net sales: | ||||
Net sales | 117.8 | 79.1 | 219 | 171.3 |
Operating segments | Commercial | Other | ||||
Net sales: | ||||
Net sales | 31.5 | 24.2 | 60.2 | 46.8 |
Operating segments | Intersegment eliminations | ||||
Net sales: | ||||
Net sales | (6.7) | (4.5) | (12.6) | (8.5) |
Corporate, non-segment | ||||
Operating income (loss) from continuing operations: | ||||
Operating income (loss): | (42) | (38.2) | (80.6) | (71.8) |
Intersegment eliminations | ||||
Net sales: | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment eliminations | Access Equipment | ||||
Net sales: | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment eliminations | Access Equipment | Aerial work platforms | ||||
Net sales: | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment eliminations | Access Equipment | Telehandlers | ||||
Net sales: | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment eliminations | Access Equipment | Other | ||||
Net sales: | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment eliminations | Defense | ||||
Net sales: | ||||
Net sales | 0.4 | 0.4 | 0.7 | 0.7 |
Intersegment eliminations | Fire & Emergency | ||||
Net sales: | ||||
Net sales | 4 | 4 | 8.2 | 7.4 |
Intersegment eliminations | Commercial | ||||
Net sales: | ||||
Net sales | 2.4 | 1.9 | 4.1 | 3 |
Intersegment eliminations | Commercial | Concrete placement | ||||
Net sales: | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment eliminations | Commercial | Refuse collection | ||||
Net sales: | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment eliminations | Commercial | Other | ||||
Net sales: | ||||
Net sales | 2.4 | 1.9 | 4.1 | 3 |
Intersegment eliminations | Intersegment eliminations | ||||
Net sales: | ||||
Net sales | $ (6.8) | $ (6.3) | $ (13) | $ (11.1) |
Business Segment Information 70
Business Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | ||
Revenue and assets by geography | ||||||
Identifiable assets | $ 5,194.5 | $ 5,194.5 | $ 5,098.9 | |||
Net sales | 1,886.4 | $ 1,618.3 | 3,472.7 | $ 2,829.7 | ||
United States | ||||||
Revenue and assets by geography | ||||||
Net sales | 2,793.6 | 2,237.5 | ||||
Other North America | ||||||
Revenue and assets by geography | ||||||
Net sales | 111 | 82.7 | ||||
Europe, Africa and Middle East | ||||||
Revenue and assets by geography | ||||||
Net sales | 406 | 351.2 | ||||
Rest of the World | ||||||
Revenue and assets by geography | ||||||
Net sales | 162.1 | 158.3 | ||||
Access Equipment | ||||||
Revenue and assets by geography | ||||||
Net sales | 927.9 | 723.2 | 1,556.1 | 1,212.4 | ||
Defense | ||||||
Revenue and assets by geography | ||||||
Net sales | 427.8 | 445.7 | 921 | 739.9 | ||
Fire & Emergency | ||||||
Revenue and assets by geography | ||||||
Net sales | 269.1 | 233.5 | 494 | 462.6 | ||
Commercial | ||||||
Revenue and assets by geography | ||||||
Net sales | 261.5 | 214.1 | 501.2 | 412.2 | ||
Operating segments | ||||||
Revenue and assets by geography | ||||||
Net sales | 1,886.4 | 1,618.3 | 3,472.7 | 2,829.7 | ||
Operating segments | Access Equipment | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 2,892.2 | 2,892.2 | 2,692.6 | |||
Net sales | 927.9 | 723.2 | 1,556.1 | 1,212.4 | ||
Operating segments | Access Equipment | United States | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 2,095.2 | 2,095.2 | 1,905.5 | |||
Operating segments | Access Equipment | Europe | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 547.2 | 547.2 | 541 | |||
Operating segments | Access Equipment | Rest of the World | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 249.8 | 249.8 | 246.1 | |||
Operating segments | Defense | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 788.2 | 788.2 | 782.1 | |||
Net sales | 428.2 | 446.1 | 921.7 | 740.6 | ||
Operating segments | Defense | United States | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 781.5 | 781.5 | 775.1 | |||
Operating segments | Defense | Rest of the World | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 6.7 | 6.7 | 7 | |||
Operating segments | Fire & Emergency | ||||||
Revenue and assets by geography | ||||||
Net sales | 273.1 | 237.5 | 502.2 | 470 | ||
Operating segments | Fire & Emergency | United States | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 533.7 | 533.7 | 552.6 | |||
Operating segments | Commercial | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 448.3 | 448.3 | 419.6 | |||
Net sales | 263.9 | $ 216 | 505.3 | $ 415.2 | ||
Operating segments | Commercial | United States | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 398.8 | 398.8 | 377.3 | |||
Operating segments | Commercial | Rest of the World | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 49.5 | 49.5 | 42.3 | |||
Corporate, non-segment | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | 532.1 | 532.1 | 652 | |||
Corporate, non-segment | United States | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | [1] | 424.9 | 424.9 | 543.9 | ||
Corporate, non-segment | Rest of the World | ||||||
Revenue and assets by geography | ||||||
Identifiable assets | [2] | $ 107.2 | $ 107.2 | $ 108.1 | ||
[1] | Primarily includes cash and short-term investments. | |||||
[2] | Primarily includes a corporate-led manufacturing facility that supports multiple operating segments. |
Separate Financial Informatio71
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidating Statements of Income | ||||
Net sales | $ 1,886.4 | $ 1,618.3 | $ 3,472.7 | $ 2,829.7 |
Cost of sales | 1,551 | 1,357 | 2,895.1 | 2,368.7 |
Gross income | 335.4 | 261.3 | 577.6 | 461 |
Selling, general and administrative | 170.3 | 169.8 | 328.1 | 320.8 |
Amortization of purchased intangibles | 9.2 | 11.1 | 19.8 | 23.6 |
Operating income | 155.9 | 80.4 | 229.7 | 116.6 |
Interest expense | (16.1) | (15.1) | (31.5) | (29.8) |
Interest income | 8.1 | 1 | 9.8 | 1.8 |
Miscellaneous, net | (0.8) | 1.2 | (0.3) | 2.5 |
Income before income taxes and earnings of unconsolidated affiliates | 147.1 | 67.5 | 207.7 | 91.1 |
Provision for income taxes | 36.2 | 23.6 | 40.9 | 28.8 |
Income before earnings of unconsolidated affiliates | 110.9 | 43.9 | 166.8 | 62.3 |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of unconsolidated affiliates | (0.1) | 0.4 | 0.4 | 1.2 |
Net income | 110.8 | 44.3 | 167.2 | 63.5 |
Other comprehensive income (loss), net of tax | 17.3 | 11.5 | 19.9 | (18.1) |
Comprehensive income | 128.1 | 55.8 | 187.1 | 45.4 |
Reportable legal entities | Oshkosh Corporation | ||||
Condensed Consolidating Statements of Income | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0.5 | (0.2) | (0.4) | (1) |
Gross income | (0.5) | 0.2 | 0.4 | 1 |
Selling, general and administrative | 38.9 | 35.6 | 76.7 | 67.2 |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Operating income | (39.4) | (35.4) | (76.3) | (66.2) |
Interest expense | (19.2) | (13.6) | (38.2) | (27.2) |
Interest income | 1.1 | 0.6 | 2.4 | 1.3 |
Miscellaneous, net | 25.2 | 24.3 | 50.4 | 46.8 |
Income before income taxes and earnings of unconsolidated affiliates | (32.3) | (24.1) | (61.7) | (45.3) |
Provision for income taxes | (7.9) | (9.3) | (4.9) | (14.4) |
Income before earnings of unconsolidated affiliates | (24.4) | (14.8) | (56.8) | (30.9) |
Equity in earnings of consolidated subsidiaries | 135.2 | 59.1 | 224 | 94.4 |
Equity in earnings (losses) of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Net income | 110.8 | 44.3 | 167.2 | 63.5 |
Other comprehensive income (loss), net of tax | 17.3 | 11.5 | 19.9 | (18.1) |
Comprehensive income | 128.1 | 55.8 | 187.1 | 45.4 |
Reportable legal entities | Guarantor Subsidiaries | ||||
Condensed Consolidating Statements of Income | ||||
Net sales | 1,591.9 | 1,378.1 | 2,964.1 | 2,427.9 |
Cost of sales | 1,336.7 | 1,132.9 | 2,489.7 | 2,007.4 |
Gross income | 255.2 | 245.2 | 474.4 | 420.5 |
Selling, general and administrative | 101.7 | 103.9 | 192 | 195.4 |
Amortization of purchased intangibles | 8.3 | 9.6 | 17.5 | 19.2 |
Operating income | 145.2 | 131.7 | 264.9 | 205.9 |
Interest expense | (13.9) | (13.7) | (27.4) | (27.3) |
Interest income | 14.6 | 4.2 | 22.6 | 8.3 |
Miscellaneous, net | (40.5) | (54.7) | (102.5) | (106.9) |
Income before income taxes and earnings of unconsolidated affiliates | 105.4 | 67.5 | 157.6 | 80 |
Provision for income taxes | 26.2 | 22.4 | 62.8 | 25.4 |
Income before earnings of unconsolidated affiliates | 79.2 | 45.1 | 94.8 | 54.6 |
Equity in earnings of consolidated subsidiaries | 39.2 | 7.9 | 96.3 | 23.6 |
Equity in earnings (losses) of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Net income | 118.4 | 53 | 191.1 | 78.2 |
Other comprehensive income (loss), net of tax | (0.5) | 1.5 | (0.3) | 0.6 |
Comprehensive income | 117.9 | 54.5 | 190.8 | 78.8 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed Consolidating Statements of Income | ||||
Net sales | 356.7 | 285.1 | 624.6 | 488 |
Cost of sales | 275.7 | 268.9 | 521.4 | 448.4 |
Gross income | 81 | 16.2 | 103.2 | 39.6 |
Selling, general and administrative | 29.7 | 30.3 | 59.4 | 58.2 |
Amortization of purchased intangibles | 0.9 | 1.5 | 2.3 | 4.4 |
Operating income | 50.4 | (15.6) | 41.5 | (23) |
Interest expense | (0.7) | (0.5) | (1.5) | (1) |
Interest income | 10.1 | 8.9 | 20.4 | 17.9 |
Miscellaneous, net | 14.5 | 31.6 | 51.8 | 62.6 |
Income before income taxes and earnings of unconsolidated affiliates | 74.3 | 24.4 | 112.2 | 56.5 |
Provision for income taxes | 18 | 10.6 | (17.1) | 17.8 |
Income before earnings of unconsolidated affiliates | 56.3 | 13.8 | 129.3 | 38.7 |
Equity in earnings of consolidated subsidiaries | 26.8 | 8 | (4.8) | (2.7) |
Equity in earnings (losses) of unconsolidated affiliates | (0.1) | 0.4 | 0.4 | 1.2 |
Net income | 83 | 22.2 | 124.9 | 37.2 |
Other comprehensive income (loss), net of tax | 17.2 | 9.4 | 19.4 | (19.8) |
Comprehensive income | 100.2 | 31.6 | 144.3 | 17.4 |
Eliminations | ||||
Condensed Consolidating Statements of Income | ||||
Net sales | (62.2) | (44.9) | (116) | (86.2) |
Cost of sales | (61.9) | (44.6) | (115.6) | (86.1) |
Gross income | (0.3) | (0.3) | (0.4) | (0.1) |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Amortization of purchased intangibles | 0 | 0 | 0 | 0 |
Operating income | (0.3) | (0.3) | (0.4) | (0.1) |
Interest expense | 17.7 | 12.7 | 35.6 | 25.7 |
Interest income | (17.7) | (12.7) | (35.6) | (25.7) |
Miscellaneous, net | 0 | 0 | 0 | 0 |
Income before income taxes and earnings of unconsolidated affiliates | (0.3) | (0.3) | (0.4) | (0.1) |
Provision for income taxes | (0.1) | (0.1) | 0.1 | 0 |
Income before earnings of unconsolidated affiliates | (0.2) | (0.2) | (0.5) | (0.1) |
Equity in earnings of consolidated subsidiaries | (201.2) | (75) | (315.5) | (115.3) |
Equity in earnings (losses) of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Net income | (201.4) | (75.2) | (316) | (115.4) |
Other comprehensive income (loss), net of tax | (16.7) | (10.9) | (19.1) | 19.2 |
Comprehensive income | $ (218.1) | $ (86.1) | $ (335.1) | $ (96.2) |
Separate Financial Informatio72
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details 2) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 287.9 | $ 447 | $ 413.4 | $ 321.9 |
Receivables, net | 1,457.3 | 1,306.3 | ||
Inventories, net | 1,321.8 | 1,198.4 | ||
Other current assets | 86.6 | 88.1 | ||
Total current assets | 3,153.6 | 3,039.8 | ||
Investment in and advances to consolidated subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Intangible assets, net | 1,510.8 | 1,520.8 | ||
Other long-term assets | 530.1 | 538.3 | ||
Total assets | 5,194.5 | 5,098.9 | ||
Current liabilities: | ||||
Accounts payable | 706 | 651 | ||
Customer advances | 566.2 | 513.4 | ||
Other current liabilities | 467.6 | 518.7 | ||
Total current liabilities | 1,739.8 | 1,683.1 | ||
Long-term debt, less current maturities | 818.8 | 807.9 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 286.3 | 300.5 | ||
Total shareholders' equity | 2,349.6 | 2,307.4 | ||
Total liabilities and shareholders' equity | 5,194.5 | 5,098.9 | ||
Reportable legal entities | Oshkosh Corporation | ||||
Current assets: | ||||
Cash and cash equivalents | 263.2 | 399.5 | 373.5 | 285.4 |
Receivables, net | 19.8 | 28.3 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 50.4 | 45.4 | ||
Total current assets | 333.4 | 473.2 | ||
Investment in and advances to consolidated subsidiaries | 3,361.1 | 3,138.3 | ||
Intercompany receivables | 47.9 | 48 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 103.9 | 69.1 | ||
Total assets | 3,846.3 | 3,728.6 | ||
Current liabilities: | ||||
Accounts payable | 7.8 | 11.6 | ||
Customer advances | 0 | 0 | ||
Other current liabilities | 79.6 | 105.2 | ||
Total current liabilities | 87.4 | 116.8 | ||
Long-term debt, less current maturities | 818.8 | 807.9 | ||
Intercompany payables | 491.5 | 452.9 | ||
Other long-term liabilities | 99 | 43.6 | ||
Total shareholders' equity | 2,349.6 | 2,307.4 | ||
Total liabilities and shareholders' equity | 3,846.3 | 3,728.6 | ||
Reportable legal entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 4.6 | 4.6 | 2.7 | 1.7 |
Receivables, net | 1,152.9 | 1,025.5 | ||
Inventories, net | 881.9 | 819.3 | ||
Other current assets | 27 | 31.9 | ||
Total current assets | 2,066.4 | 1,881.3 | ||
Investment in and advances to consolidated subsidiaries | 1,450.6 | 1,340.4 | ||
Intercompany receivables | 295.8 | 261.6 | ||
Intangible assets, net | 891.6 | 909.5 | ||
Other long-term assets | 255 | 242.9 | ||
Total assets | 4,959.4 | 4,635.7 | ||
Current liabilities: | ||||
Accounts payable | 571.3 | 517.2 | ||
Customer advances | 561.2 | 510.7 | ||
Other current liabilities | 268.5 | 304.9 | ||
Total current liabilities | 1,401 | 1,332.8 | ||
Long-term debt, less current maturities | 0 | 0 | ||
Intercompany payables | 1,761 | 1,780.5 | ||
Other long-term liabilities | 176.3 | 134.1 | ||
Total shareholders' equity | 1,621.1 | 1,388.3 | ||
Total liabilities and shareholders' equity | 4,959.4 | 4,635.7 | ||
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 20.1 | 42.9 | 37.2 | 34.8 |
Receivables, net | 338.2 | 316.1 | ||
Inventories, net | 439.9 | 379.1 | ||
Other current assets | 9.2 | 10.8 | ||
Total current assets | 807.4 | 748.9 | ||
Investment in and advances to consolidated subsidiaries | (57.5) | (59.6) | ||
Intercompany receivables | 1,956.7 | 1,971.8 | ||
Intangible assets, net | 619.2 | 611.3 | ||
Other long-term assets | 171.2 | 226.3 | ||
Total assets | 3,497 | 3,498.7 | ||
Current liabilities: | ||||
Accounts payable | 180 | 176.4 | ||
Customer advances | 5 | 2.7 | ||
Other current liabilities | 120 | 118 | ||
Total current liabilities | 305 | 297.1 | ||
Long-term debt, less current maturities | 0 | 0 | ||
Intercompany payables | 47.9 | 48 | ||
Other long-term liabilities | 11 | 122.8 | ||
Total shareholders' equity | 3,133.1 | 3,030.8 | ||
Total liabilities and shareholders' equity | 3,497 | 3,498.7 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Receivables, net | (53.6) | (63.6) | ||
Inventories, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (53.6) | (63.6) | ||
Investment in and advances to consolidated subsidiaries | (4,754.2) | (4,419.1) | ||
Intercompany receivables | (2,300.4) | (2,281.4) | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (7,108.2) | (6,764.1) | ||
Current liabilities: | ||||
Accounts payable | (53.1) | (54.2) | ||
Customer advances | 0 | 0 | ||
Other current liabilities | (0.5) | (9.4) | ||
Total current liabilities | (53.6) | (63.6) | ||
Long-term debt, less current maturities | 0 | 0 | ||
Intercompany payables | (2,300.4) | (2,281.4) | ||
Other long-term liabilities | 0 | 0 | ||
Total shareholders' equity | (4,754.2) | (4,419.1) | ||
Total liabilities and shareholders' equity | $ (7,108.2) | $ (6,764.1) |
Separate Financial Informatio73
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details 3) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | $ 43.9 | $ 148.1 |
Investing activities: | ||
Additions to property, plant and equipment | (37.9) | (28) |
Additions to equipment held for rental | (2.9) | (24.6) |
Proceeds from sale of equipment held for rental | 4.4 | 19.8 |
Intercompany investing | 0 | 0 |
Other investing activities | (0.5) | (0.9) |
Net cash used by investing activities | (36.9) | (33.7) |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 13.1 | 0 |
Repayments of debt (original maturities greater than three months) | (17.9) | (20) |
Repurchases of Common Stock | (136.2) | (3) |
Dividends paid | (35.9) | (31.3) |
Proceeds from exercise of stock options | 12.5 | 33.2 |
Intercompany financing | 0 | 0 |
Net cash used by financing activities | (164.4) | (21.1) |
Effect of exchange rate changes on cash | (1.7) | (1.8) |
Increase (decrease) in cash and cash equivalents | (159.1) | 91.5 |
Cash and cash equivalents at beginning of period | 447 | 321.9 |
Cash and cash equivalents at end of period | 287.9 | 413.4 |
Reportable legal entities | Oshkosh Corporation | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | (26.5) | (20.4) |
Investing activities: | ||
Additions to property, plant and equipment | (3.4) | (1.6) |
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 | (0.5) | (0.8) |
Net cash used by investing activities | (3.9) | (2.4) |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 0 | |
Repayments of debt (original maturities greater than three months) | (10) | (20) |
Repurchases of Common Stock | (136.2) | (3) |
Dividends paid | (35.9) | (31.3) |
Proceeds from exercise of stock options | 12.5 | 33.2 |
Intercompany financing | 63.7 | 132 |
Net cash used by financing activities | (105.9) | 110.9 |
Effect of exchange rate changes on cash | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (136.3) | 88.1 |
Cash and cash equivalents at beginning of period | 399.5 | 285.4 |
Cash and cash equivalents at end of period | 263.2 | 373.5 |
Reportable legal entities | Guarantor Subsidiaries | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | 48.1 | 193.2 |
Investing activities: | ||
Additions to property, plant and equipment | (22.3) | (19.6) |
Additions to equipment held for rental | 0 | 0 |
Proceeds from sale of equipment held for rental | 0 | 0 |
Intercompany investing | (6.2) | 387 |
Other investing activities | 0 | (0.1) |
Net cash used by investing activities | (28.5) | 367.3 |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 0 | |
Repayments of debt (original maturities greater than three months) | 0 | 0 |
Repurchases of Common Stock | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Intercompany financing | (19.5) | (559.5) |
Net cash used by financing activities | (19.5) | (559.5) |
Effect of exchange rate changes on cash | (0.1) | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 1 |
Cash and cash equivalents at beginning of period | 4.6 | 1.7 |
Cash and cash equivalents at end of period | 4.6 | 2.7 |
Reportable legal entities | Non-Guarantor Subsidiaries | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | 22.3 | (24.7) |
Investing activities: | ||
Additions to property, plant and equipment | (12.2) | (6.8) |
Additions to equipment held for rental | (2.9) | (24.6) |
Proceeds from sale of equipment held for rental | 4.4 | 19.8 |
Intercompany investing | (37.9) | 0 |
Other investing activities | 0 | 0 |
Net cash used by investing activities | (48.6) | (11.6) |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 13.1 | |
Repayments of debt (original maturities greater than three months) | (7.9) | 0 |
Repurchases of Common Stock | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Intercompany financing | (0.1) | 40.5 |
Net cash used by financing activities | 5.1 | 40.5 |
Effect of exchange rate changes on cash | (1.6) | (1.8) |
Increase (decrease) in cash and cash equivalents | (22.8) | 2.4 |
Cash and cash equivalents at beginning of period | 42.9 | 34.8 |
Cash and cash equivalents at end of period | 20.1 | 37.2 |
Eliminations | ||
Condensed financial statements, captions | ||
Net cash provided (used) by operating activities | 0 | 0 |
Investing activities: | ||
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 | 44.1 | (387) |
Other investing activities | 0 | 0 |
Net cash used by investing activities | 44.1 | (387) |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 0 | |
Repayments of debt (original maturities greater than three months) | 0 | 0 |
Repurchases of Common Stock | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Intercompany financing | (44.1) | 387 |
Net cash used by financing activities | (44.1) | 387 |
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 (Details)
Subsequent Events (Details) | Apr. 03, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jan. 31, 2015USD ($) | Mar. 21, 2014USD ($) |
Subsequent Event [Line Items] | |||||
Long-term Debt | $ 818,800,000 | $ 827,900,000 | |||
Revolving Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 850,000,000 | $ 600,000,000 | |||
Revolving Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 850,000,000 | ||||
Term Loan - Unsecured Debt | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Long-term Debt | 325,000,000 | ||||
Quarterly principal installment, at commencement | 4,100,000 | ||||
Payment due at maturity | 264,100,000 | ||||
Credit Agreement - 4/3/18 [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Gain (Loss) on Extinguishment of Debt | 700,000 | ||||
Debt Issuance Costs, Gross | $ 3,000,000 | ||||
Maximum leverage ratio | 3.75 | ||||
Minimum interest coverage ratio | 2.5 | ||||
Debt Instrument, Dividends and Other Distributions Restrictions, Dollar Restriction | $ 1,460,000,000 | ||||
Percentage of consolidated net income of the Company and its subsidiaries accrued on a cumulative basis during the period beginning per the credit agreement 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 per the credit agreement and ending on the last day of the fiscal quarter | 100.00% | ||||
Percentage of aggregate net proceeds received by the Company subsequent to the date defined in the credit agreement as a contribution to its common equity or from the issuance and sale of its Common Stock | 100.00% | ||||
Maximum | Credit Agreement - 4/3/18 [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.275% | ||||
Maximum | Letter of Credit - 4/3/18 Credit Agreement [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Letter of credit fees percentage on available borrowing capacity, high end of range (as a percent) | 1.75% | ||||
Minimum | Credit Agreement - 4/3/18 [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.125% | ||||
Minimum | Letter of Credit - 4/3/18 Credit Agreement [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Letter of credit fees percentage on available borrowing capacity, low end of range (as a percent) | 0.5625% | ||||
LIBOR | Credit Agreement - 4/13/18 Dollar Denominated Loans Member [Domain] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Interest spread in basis points (as a percent) | 1.00% | ||||
Federal funds rate | Credit Agreement - 4/13/18 Dollar Denominated Loans Member [Domain] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Interest spread in basis points (as a percent) | 0.50% |