Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 13, 2018 | Mar. 31, 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-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 71,894,110 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 5,711,502,765 | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 7,705.5 | $ 6,829.6 | $ 6,279.2 |
Cost of sales | 6,349.8 | 5,655.2 | 5,223.4 |
Gross income | 1,355.7 | 1,174.4 | 1,055.8 |
Operating expenses: | |||
Selling, general and administrative | 663.9 | 665.6 | 612.4 |
Amortization of purchased intangibles | 38.3 | 45.8 | 52.5 |
Asset impairment charge | 0 | 0 | 26.9 |
Total operating expenses | 702.2 | 711.4 | 691.8 |
Operating income | 653.5 | 463 | 364 |
Other income (expense): | |||
Interest expense | (70.9) | (59.8) | (60.4) |
Interest income | 15.3 | 4.9 | 2.1 |
Miscellaneous, net | (3.3) | 3.2 | 1.3 |
Income before income taxes and earnings of unconsolidated affiliates | 594.6 | 411.3 | 307 |
Provision for income taxes | 123.8 | 127.2 | 92.4 |
Income before earnings of unconsolidated affiliates | 470.8 | 284.1 | 214.6 |
Equity in earnings of unconsolidated affiliates | 1.1 | 1.5 | 1.8 |
Net income | $ 471.9 | $ 285.6 | $ 216.4 |
Earnings per share: | |||
Total earnings (loss) per share-basic (in dollars per share) | $ 6.38 | $ 3.82 | $ 2.94 |
Total earnings (loss) per share -diluted (in dollars per share) | $ 6.29 | $ 3.77 | $ 2.91 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Statement - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 471.9 | $ 285.6 | $ 216.4 |
Other comprehensive income (loss), net of tax: | |||
Employee pension and postretirement benefits | 35.3 | 27.7 | (27.5) |
Currency translation adjustments | (17.6) | 22.5 | (3) |
Change in fair value of derivative instruments | 0.5 | (0.2) | (0.1) |
Total other comprehensive income (loss), net of tax | 18.2 | 50 | (30.6) |
Comprehensive income | $ 490.1 | $ 335.6 | $ 185.8 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 454.6 | $ 447 |
Receivables, net | 1,521.6 | 1,306.3 |
Inventories, net | 1,227.7 | 1,198.4 |
Other current assets | 66 | 88.1 |
Total current assets | 3,269.9 | 3,039.8 |
Property, plant and equipment, net | 481.1 | 469.9 |
Goodwill | 1,007.9 | 1,013 |
Purchased intangible assets, net | 469.4 | 507.8 |
Other long-term assets | 65.9 | 68.4 |
Total assets | 5,294.2 | 5,098.9 |
Current liabilities: | ||
Revolving credit facility and current maturities of long-term debt | 0 | 23 |
Accounts payable | 776.9 | 651 |
Customer advances | 444.9 | 513.4 |
Payroll-related obligations | 192.5 | 191.8 |
Other current liabilities | 275.8 | 303.9 |
Total current liabilities | 1,690.1 | 1,683.1 |
Long-term debt, less current maturities | 818 | 807.9 |
Other long-term liabilities | 272.6 | 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; 75,101,465 and 92,101,465 shares issued, respectively) | 0.7 | 0.9 |
Additional paid-in capital | 814.8 | 802.2 |
Retained earnings | 2,007.9 | 2,399.8 |
Accumulated other comprehensive loss | (106.8) | (125) |
Common Stock in treasury, at cost (2,730,707 and 17,088,224 shares, respectively) | (203.1) | (770.5) |
Total shareholders’ equity | 2,513.5 | 2,307.4 |
Total liabilities and shareholders’ equity | $ 5,294.2 | $ 5,098.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 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 | 75,101,465 | 92,101,465 |
Common Stock in treasury, shares | 2,730,707 | 17,088,224 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common stocks | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury at Cost |
Balance at Sep. 30, 2015 | $ 1,911.1 | $ 0.9 | $ 771.5 | $ 2,016.5 | $ (144.4) | $ (733.4) |
Changes in Equity | ||||||
Net income | 216.4 | 216.4 | ||||
Employee pension and postretirement benefits | (27.5) | (27.5) | ||||
Currency translation adjustments | (3) | (3) | ||||
Cash dividends | (55.9) | (55.9) | ||||
Repurchase of common stock | (100.1) | (100.1) | ||||
Exercise of stock options | 21.7 | 0.5 | 21.2 | |||
Stock-based compensation expense | 18.7 | 18.7 | ||||
Excess tax benefit from stock-based compensation | 1.1 | 1.1 | ||||
Payment of stock-based restricted and performance shares | 0 | (9) | 9 | |||
Shares tendered for taxes on stock-based compensation | (6.2) | (6.2) | ||||
Other | 0.2 | (0.5) | (0.1) | 0.8 | ||
Balance at Sep. 30, 2016 | 1,976.5 | 0.9 | 782.3 | 2,177 | (175) | (808.7) |
Changes in Equity | ||||||
Net income | 285.6 | 285.6 | ||||
Employee pension and postretirement benefits | 27.7 | 27.7 | ||||
Currency translation adjustments | 22.5 | 22.5 | ||||
Cash dividends | (62.8) | (62.8) | ||||
Exercise of stock options | 39.9 | 4.3 | 35.6 | |||
Stock-based compensation expense | 22.4 | 22.4 | ||||
Payment of stock-based restricted and performance shares | 0 | (7) | 7 | |||
Shares tendered for taxes on stock-based compensation | (4.8) | (4.8) | ||||
Other | 0.4 | 0.2 | (0.2) | 0.4 | ||
Balance at Sep. 30, 2017 | 2,307.4 | 0.9 | 802.2 | 2,399.8 | (125) | (770.5) |
Changes in Equity | ||||||
Net income | 471.9 | 471.9 | ||||
Employee pension and postretirement benefits | 35.3 | 35.3 | ||||
Currency translation adjustments | (17.6) | (17.6) | ||||
Cash dividends | (71.2) | (71.2) | ||||
Repurchase of common stock | (249.3) | (249.3) | ||||
Exercise of stock options | 16.6 | (5.1) | 21.7 | |||
Stock-based compensation expense | 26.7 | 26.7 | ||||
Payment of stock-based restricted and performance shares | 0 | (9.4) | 9.4 | |||
Shares tendered for taxes on stock-based compensation | (7.7) | (7.7) | ||||
Treasury Stock, Retired, Cost Method, Amount | 0 | (0.2) | (792.6) | 792.8 | ||
Other | 1.4 | 0.4 | 0.5 | 0.5 | ||
Balance at Sep. 30, 2018 | $ 2,513.5 | $ 0.7 | $ 814.8 | $ 2,007.9 | $ (106.8) | $ (203.1) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Employee pension and postretirement benefits, tax | $ 10.6 | $ 15.2 | $ (14.2) |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.96 | $ 0.84 | $ 0.76 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | |||
Net income | $ 471.9 | $ 285.6 | $ 216.4 |
Asset impairment charge | 0 | 0 | 26.9 |
Depreciation and amortization | 120.5 | 130.3 | 128.8 |
Stock-based compensation expense | 26.7 | 22.4 | 18.7 |
Deferred income taxes | (3.1) | 7.8 | (17) |
Loss (gain) on sale of assets | 1.1 | (6.6) | (19.1) |
Foreign Currency Transaction (Gains) Losses, Unrealized | 1.4 | 1.6 | (1.1) |
Debt extinguishment | 10.3 | 0 | 0 |
Other non-cash adjustments | 2.3 | 0.1 | 0.3 |
Changes in operating assets and liabilities: | |||
Receivables, net | (227) | (295.9) | (39.6) |
Inventories, net | (38.6) | (202.3) | 327.2 |
Other current assets | 11.2 | 14.6 | (19) |
Accounts payable | 124.3 | 177.2 | (87.6) |
Customer advances | (68.4) | 41.5 | 31.6 |
Payroll-related obligations | 1.7 | 43.5 | 31.2 |
Income taxes | 26.2 | (14.8) | (14) |
Other current liabilities | (33.9) | 43.7 | 10.8 |
Other long-term assets and liabilities | 9.7 | (2.2) | (10.6) |
Total changes in operating assets and liabilities | (194.8) | (194.7) | 230 |
Net cash provided by operating activities | 436.3 | 246.5 | 583.9 |
Investing activities: | |||
Additions to property, plant and equipment | (95.3) | (85.8) | (92.5) |
Additions to equipment held for rental | (4.8) | (27.4) | (34.8) |
Proceeds from sale of property, plant and equipment | 5.7 | 0.8 | 0.1 |
Proceeds from sale of equipment held for rental | 5.8 | 49.5 | 40.2 |
Other investing activities | (1.8) | (2.3) | (2.2) |
Net cash used by investing activities | (90.4) | (65.2) | (89.2) |
Financing activities: | |||
Net decrease in short-term debt | 0 | 0 | (33.5) |
Proceeds from issuance of debt (original maturities greater than three months) | 639.4 | 5.9 | 323.5 |
Repayments of debt (original maturities greater than three months) | (653.8) | (23) | (373.5) |
Debt issuance costs | (12.9) | 0 | 0 |
Repurchases of Common Stock | (257) | (4.8) | (106.3) |
Dividends paid | (71.2) | (62.8) | (55.9) |
Proceeds from exercise of stock options | 16.6 | 39.9 | 21.7 |
Excess tax benefit from stock-based compensation | 0 | 0 | 2 |
Net cash used by financing activities | (338.9) | (44.8) | (222) |
Effect of exchange rate changes on cash | 0.6 | (11.4) | 6.3 |
Increase in cash and cash equivalents | 7.6 | 125.1 | 279 |
Cash and cash equivalents at beginning of year | 447 | 321.9 | 42.9 |
Cash and cash equivalents at end of year | 454.6 | 447 | 321.9 |
Supplemental disclosures: | |||
Cash paid for interest | 55.7 | 57.1 | 54.7 |
Cash paid for income taxes | $ 100.3 | $ 129.9 | $ 116.8 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Oshkosh Corporation and its subsidiaries (the “Company”) are leading designers and manufacturers of a wide variety of specialty vehicles and vehicle bodies for the Americas and global markets. “Oshkosh” refers to Oshkosh Corporation, not including its subsidiaries. The Company sells its products into four principal vehicle markets — access equipment, defense, fire & emergency and commercial. The access equipment business is conducted through its wholly-owned subsidiary, JLG Industries, Inc. and its wholly-owned subsidiaries (JLG) and JerrDan Corporation (JerrDan). The Company’s defense business is conducted principally through its wholly-owned subsidiary, Oshkosh Defense, LLC and its wholly-owned subsidiary (Oshkosh Defense). The Company’s fire & emergency business is principally conducted through its wholly-owned subsidiaries Pierce Manufacturing Inc. (Pierce), Oshkosh Airport Products, LLC (Airport Products) and Kewaunee Fabrications, LLC (Kewaunee). The Company’s commercial business is principally conducted through its wholly-owned subsidiaries, McNeilus Companies, Inc. (McNeilus), Concrete Equipment Company, Inc. and its wholly-owned subsidiary (CON-E-CO), London Machinery Inc. and its wholly-owned subsidiary (London), Iowa Mold Tooling Co., Inc. (IMT) and Oshkosh Commercial Products, LLC (Oshkosh Commercial). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Presentation — The consolidated financial statements include the accounts of Oshkosh and all of its majority-owned or controlled subsidiaries and are prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP). All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition — Through September 30, 2018, the Company recognized revenue on equipment and parts sales when contract terms were met, collectability was reasonably assured and a product was shipped or risk of ownership had been transferred to and accepted by the customer. Revenue from service agreements was recognized as earned, when services had been rendered. Appropriate provisions were made for discounts, returns and sales allowances. Sales were recorded net of amounts invoiced for taxes imposed on the customer such as excise or value-added taxes. Sales to the U.S. government of non-commercial products manufactured to the government’s specifications are recognized under percentage-of-completion accounting using either the units-of-delivery method or cost-to-cost method to measure contract performance. Under the units-of-delivery method, the Company records sales as units are accepted by the U.S. Department of Defense (DoD), generally based on unit sales values stated in the respective contracts. Costs of sales are based on actual costs incurred to produce the units delivered under the contract. Under the cost-to-cost method, sales and estimated margins are recognized as contract costs are incurred. The measurement method selected is generally determined based on the nature of the contract. The Company includes amounts representing contract change orders, claims or other items in sales only when they can be reliably estimated and realization is probable. Bid and proposal costs are expensed as incurred. The Company has significant experience in contracting and producing vehicles for the defense industry, which has resulted in a history of making reasonable estimates of revenues and costs when measuring progress toward contract completion. The Company charges anticipated losses on contracts or programs in progress to earnings when identified. Approximately 21% , 16% and 19% of the Company’s revenues were recognized under the percentage-of-completion accounting method in fiscal 2018 , 2017 and 2016 , respectively. The Company invoices the government as the units are formally accepted. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. In fiscal 2018 , changes in estimates on contracts accounted for under the cost-to-cost method on prior year revenues increased defense segment operating income by $2.2 million , net income by $1.7 million and earnings per share by $0.02 . In fiscal 2017 , changes in estimates on contracts accounted for under the cost-to-cost method on prior year revenues increased defense segment operating income by $6.3 million , net income by $3.9 million and earnings per share by $0.05 . In fiscal 2016 , changes in estimates on contracts accounted for under the cost-to-cost method on prior year revenues did not have a material impact on the defense segment operating income, net income and earnings per share. Shipping and Handling Fees and Costs — Revenue received from shipping and handling fees is reflected in net sales. Shipping and handling fee revenue was not significant for any period presented. Shipping and handling costs are included in cost of sales. Warranty — Provisions for estimated warranty and other related costs are recorded in cost of sales at the time of sale and are periodically adjusted to reflect actual experience. The amount of warranty liability accrued reflects management’s best estimate of the expected future cost of honoring Company obligations under the warranty plans. Historically, the cost of fulfilling the Company’s warranty obligations has principally involved replacement parts, labor and sometimes travel for any field retrofit campaigns. The Company’s estimates are based on historical experience, the extent of pre-production testing, the number of units involved and the extent of features/components included in product models. Also, each quarter, the Company reviews actual warranty claims experience to determine if there are systemic defects that would require a field campaign. The Company recognizes the revenue from sales of extended warranties over the life of the contracts. Research and Development and Similar Costs — Except for customer sponsored research and development costs incurred pursuant to contracts (generally with the DoD), research and development costs are expensed as incurred and included in cost of sales. Research and development costs charged to expense amounted to $99.3 million , $98.0 million and $103.1 million during fiscal 2018 , 2017 and 2016 , respectively. Customer sponsored research and development costs incurred pursuant to contracts are accounted for as contract costs. Advertising — Advertising costs are included in selling, general and administrative expense and are expensed as incurred. These expenses totaled $21.1 million , $23.0 million and $21.6 million in fiscal 2018 , 2017 and 2016 , respectively. Stock-Based Compensation — The Company recognizes stock-based compensation using the fair value provisions prescribed by Accounting Standards Codification (ASC) Topic 718, Compensation — Stock Compensation . Accordingly, compensation costs for awards of stock-based compensation settled in shares are determined based on the fair value of the share-based instrument at the time of grant and are recognized as expense over the vesting period of the share-based instrument, net of estimated forfeitures. See Note 15 of the Notes to Consolidated Financial Statements for information regarding the Company’s stock-based incentive plans. Debt Financing Costs — Debt issuance costs on term debt are amortized using the interest method over the term of the debt. Deferred financing costs on lines of credit are amortized on a straight-line basis over the term of the related lines of credit. Amortization expense was $5.6 million (including $3.2 million of amortization related to early debt retirement), $3.0 million and $3.0 million in fiscal 2018 , 2017 and 2016 , respectively. Income Taxes — Deferred income taxes are provided to recognize temporary differences between the financial reporting basis and the income tax basis of the Company’s assets and liabilities using currently enacted tax rates and laws. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The Company evaluates uncertain income tax positions in a two -step process. The first step is recognition, where the Company evaluates whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, zero tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from the Company’s estimates. In future periods, changes in facts and circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in results of operations and financial position in the period in which such changes occur. Fair Value of Financial Instruments — Based on Company estimates, the carrying amounts of cash equivalents, receivables, accounts payable and accrued liabilities approximated fair value as of September 30, 2018 and 2017 . See Notes 9, 14 and 17 of the Notes to Consolidated Financial Statements for additional fair value information. Cash and Cash Equivalents — The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents at September 30, 2018 consisted principally of bank deposits and money market instruments. Receivables — Receivables consist of amounts billed and currently due from customers and unbilled costs and accrued profits related to revenues on long-term contracts with the U.S. government that have been recognized for accounting purposes but not yet billed to customers. The Company extends credit to customers in the normal course of business and maintains an allowance for estimated losses resulting from the inability or unwillingness of customers to make required payments. The accrual for estimated losses is based on the Company’s historical experience, existing economic conditions and any specific customer collection issues the Company has identified. Account balances are charged against the allowance when the Company determines it is probable the receivable will not be recovered. Concentration of Credit Risk — Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, trade accounts receivable and guarantees of certain customers’ obligations under deferred payment contracts and lease purchase agreements. The Company maintains cash and cash equivalents, and other financial instruments, with various major financial institutions. The Company performs periodic evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any institution. Concentration of credit risk with respect to trade accounts and lease receivables is limited due to the large number of customers and their dispersion across many geographic areas. However, a significant amount of trade and lease receivables are with the U.S. government, with rental companies globally, with companies in the ready-mix concrete industry, with municipalities and with several large waste haulers in the United States. The Company continues to monitor credit risk associated with its trade receivables. Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (LIFO) method for 82% of the Company’s inventories at both September 30, 2018 and 2017. For the remaining inventories, cost has been determined using the first-in, first-out (FIFO) method. Property, Plant and Equipment — Property, plant and equipment are recorded at cost. Depreciation expense is recognized over the estimated useful lives of the respective assets using accelerated and straight-line methods. The estimated useful lives range from ten to forty years for buildings and improvements, from four to twenty-five years for machinery and equipment and from three to ten years for software and related costs. The Company capitalizes interest on borrowings during the active construction period of major capital projects. All capitalized interest has been added to the cost of the underlying assets and is amortized over the useful lives of the assets. Goodwill — Goodwill reflects the cost of an acquisition in excess of the aggregate fair value assigned to identifiable net assets acquired. Goodwill is not amortized; however, it is assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. The Company performs its annual impairment test as of July 1 of each fiscal year. The Company evaluates the recoverability of goodwill by estimating the fair value of the businesses to which the goodwill relates. Estimated cash flows and related goodwill are grouped at the reporting unit level. A reporting unit is an operating segment or, under certain circumstances, a component of an operating segment. When the fair value of the reporting unit is less than the carrying value of the reporting unit, a further analysis is performed to measure and recognize the amount of the impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying amount of a reporting unit’s goodwill over the implied fair value of that goodwill. In evaluating the recoverability of goodwill, it is necessary to estimate the fair value of the reporting units. The Company evaluates the recoverability of goodwill utilizing the income approach and the market approach. The Company weighted the income approach more heavily ( 75% ) as the Company believes the income approach more accurately considers long-term fluctuations in the U.S. and European construction markets than the market approach. Under the income approach, the Company determines fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Estimated future cash flows are based on the Company’s internal projection models, industry projections and other assumptions deemed reasonable by management. Rates used to discount estimated cash flows correspond to the Company’s cost of capital, adjusted for risk where appropriate, and are dependent upon interest rates at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. Under the market approach, the Company derives the fair value of its reporting units based on revenue and earnings multiples of comparable publicly-traded companies. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future. Impairment of Long-Lived Assets — Property, plant and equipment and amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Non-amortizable trade names are assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. The Company performs its annual impairment test in the fourth quarter of its fiscal year. The Company evaluates the potential impairment by estimating the fair value of the non-amortizing intangible assets using the “relief from royalty” method. When the fair value of the non-amortizable trade name is less than the carrying value of the trade name, a further analysis is performed to measure and recognize the amount of the impairment loss, if any. Impairment losses, limited to the carrying value of the non-amortizable trade name, represent the excess of the carrying amount over the implied fair value of that non-amortizable trade name. Customer Advances — Customer advances include amounts received in advance of the completion of fire & emergency and commercial vehicles. Most of these advances bear interest at fixed rates that approximate the prime rate at the time of the advance. Advances also include any performance-based payments received from the DoD in excess of the value of related inventory. Other Long-Term Liabilities — Other long-term liabilities are comprised principally of the portions of the Company’s pension liability, other post-employment benefit liability, tax liability, accrued warranty and accrued product liability that are not expected to be settled in the subsequent twelve month period. Foreign Currency Translation — All balance sheet accounts have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Income statement amounts have been translated using the average exchange rate during the period in which the transactions occurred. Resulting translation adjustments are included in “Accumulated other comprehensive income (loss).” Foreign currency transaction gains or losses are included in “Miscellaneous, net” in the Consolidated Statements of Income. The Company recorded a net foreign currency transaction loss of $3.8 million in fiscal 2018 , a net foreign currency transaction gain of $0.2 million in fiscal 2017 and a net foreign currency transaction loss of $1.2 million in fiscal 2016 . Derivative Financial Instruments — The Company recognizes all derivative financial instruments, such as foreign exchange contracts, in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Changes in the fair value of derivative financial instruments are either recognized periodically in income or in equity as a component of comprehensive income depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or cash flow hedge. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income along with the portions of the changes in the fair values of the hedged items that relate to the hedged risks. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net of deferred income taxes. Changes in fair value of derivatives not qualifying as hedges are reported in income. Cash flows from derivatives that are accounted for as cash flow or fair value hedges are included in the Consolidated Statements of Cash Flows in the same category as the item being hedged. Reclassifications — Certain reclassifications have been made to the fiscal 2017 and 2016 financial statements to conform with the fiscal 2018 presentation. “Derivative instruments,” which was previously reported as a separate line item within the Consolidated Statements of Shareholders’ Equity, is now reported in “Other.” “Payment of stock-based restricted shares,” which was previously included in “Other” in the Consolidated Statements of Shareholders’ Equity, is now reported in “Payment of stock-based restricted and performance shares.” “Proceeds from sale of property, plant and equipment,” which was previously included in “Other investing activities” in the Consolidated Statements of Cash Flows, is now reported as a separate line item. Recent Accounting Pronouncements — 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 Company will adopt the standard as of 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 expects to record a pre-tax reduction of retained earnings of approximately $80 million upon the initial adoption of the new revenue recognition standard, which represents the cumulative impact as of the date of adoption. Primary differences between the new and existing revenue standard include changing from a point-in-time method to an over time method for certain defense and commercial segment contracts, changes to how a contract is defined, the recognition of implied performance obligations and the deferral of margin on service-type warranties. The adoption of the new revenue recognition standard will also impact the Company’s processes and controls around revenue recognition. 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), and the FASB has since issued amendments to this standard, 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 adopt ASU 2016-16 as of October 1, 2018 and expects to record an increase to retained earnings of approximately $45 million upon adoption under the modified retrospective approach, primarily related to intra-entity transfers of intellectual property. 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 adopt ASU 2017-07 as of October 1, 2018 following the retrospective approach required by the standard. Adoption is expected to result in the reclassification of approximately $3 million of non-service costs from operating income to other income (expense). 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. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, thereby eliminating the resulting stranded tax effect. The Company will be required to adopt ASU 2018-02 as of October 1, 2019. Early adoption is permitted. The Company plans to early adopt ASU 2018-02 as of October 1, 2018 and expects to record an increase to retained earnings of approximately $9 million upon adoption to eliminate the tax effects stranded in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act. |
Receivables
Receivables | 12 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following (in millions): September 30, 2018 2017 U.S. government: Amounts billed $ 156.3 $ 137.8 Cost and profits not billed 235.4 137.9 391.7 275.7 Other trade receivables 1,089.4 985.4 Finance receivables 11.7 5.8 Notes receivable 1.4 34.2 Other receivables 48.6 46.3 1,542.8 1,347.4 Less allowance for doubtful accounts (9.9 ) (18.3 ) $ 1,532.9 $ 1,329.1 Classification of receivables in the Consolidated Balance Sheets consisted of the following (in millions): September 30, 2018 2017 Current receivables $ 1,521.6 $ 1,306.3 Long-term receivables 11.3 22.8 $ 1,532.9 $ 1,329.1 Finance and notes receivable accrual status consisted of the following (in millions): September 30, Finance Receivables Notes Receivable 2018 2017 2018 2017 Receivables on nonaccrual status $ 10.2 $ 3.7 $ — $ 21.3 Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 1.5 2.1 — — Allowance for doubtful accounts — — — — Receivables subject to specific reserves 10.2 3.7 1.4 34.2 Allowance for doubtful accounts (2.8 ) (1.5 ) — (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. As of September 30, 2018 , approximately 82% of the Company’s outstanding finance receivables balance was due from three parties. 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 continuous 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 evaluation of the quality of the finance receivables, including the length of time the receivables are past due, past experience of collectability and underlying economic conditions. In circumstances where the Company believes collectability is no longer reasonably assured, a specific allowance is recorded to reduce the net recognized receivable to the amount reasonably expected to be collected. 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 September 30, 2018 , approximately 98% of the notes receivable balance outstanding was due from one party. The Company continually evaluates the creditworthiness of its customers and establishes reserves where the Company believes collectability is no longer reasonably assured. Notes receivable are written down if management determines that the specific borrower does not have the ability to repay the loan in full. 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 second quarter of fiscal 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 fiscal year ended September 30, 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 collectability 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. Losses on troubled debt restructurings were not significant during fiscal 2018 , 2017 or 2016 , respectively. Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions): Fiscal Year Ended September 30, 2018 Finance Receivables Notes Receivable Trade and Other Receivables Total Allowance for doubtful accounts at beginning of year $ 1.5 $ 10.0 $ 6.8 $ 18.3 Provision for doubtful accounts, net of recoveries 1.3 (8.2 ) 0.9 (6.0 ) Charge-off of accounts — (1.7 ) (0.5 ) (2.2 ) Foreign currency translation — (0.1 ) (0.1 ) (0.2 ) Allowance for doubtful accounts at end of year $ 2.8 $ — $ 7.1 $ 9.9 Fiscal Year Ended September 30, 2017 Finance Receivables Notes Receivable Trade and Other Receivables Total Allowance for doubtful accounts at beginning of year $ 1.0 $ 13.0 $ 7.2 $ 21.2 Provision for doubtful accounts, net of recoveries 1.4 (1.3 ) 0.7 0.8 Charge-off of accounts (0.9 ) (2.2 ) (1.1 ) (4.2 ) Foreign currency translation — 0.5 — 0.5 Allowance for doubtful accounts at end of year $ 1.5 $ 10.0 $ 6.8 $ 18.3 |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): September 30, 2018 2017 Raw materials $ 639.2 $ 578.1 Partially finished products 354.3 336.6 Finished products 330.2 398.1 Inventories at FIFO cost 1,323.7 1,312.8 Less: Progress/performance-based payments on U.S. government contracts — (31.6 ) Excess of FIFO cost over LIFO cost (96.0 ) (82.8 ) $ 1,227.7 $ 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 | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in millions): September 30, 2018 2017 Land and land improvements $ 54.2 $ 58.5 Buildings 297.6 298.5 Machinery and equipment 673.0 652.2 Software and related costs 164.4 149.6 Equipment on operating lease to others 22.1 30.0 Construction in progress 11.4 — 1,222.7 1,188.8 Less accumulated depreciation (741.6 ) (718.9 ) $ 481.1 $ 469.9 Depreciation expense was $79.8 million , $81.5 million and $73.3 million in fiscal 2018 , 2017 and 2016 , respectively. The Company recognized a long-lived asset impairment charge of $26.9 million during fiscal 2016. 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 to others at September 30, 2018 and 2017 was $17.2 million and $21.6 million , respectively. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets As of July 1, 2018 , the Company performed its annual impairment review relative to goodwill and indefinite-lived intangible assets (principally non-amortizable trade names). The Company performed the valuation analysis with the assistance of a third-party valuation adviser. To derive the fair value of its reporting units, the Company utilized both the income and market approaches. For the annual impairment testing in the fourth quarter of fiscal 2018 , the Company used a weighted-average cost of capital, depending on the reporting unit, of 10.5% to 13.5% ( 9.0% to 10.5% at July 1, 2017 ) and a terminal growth rate of 3.0% ( 3.0% at July 1, 2017 ). Under the market approach, the Company derived the fair value of its reporting units based on revenue and earnings multiples of comparable publicly-traded companies. As a corroborative source of information, the Company reconciles its estimated fair value to within a reasonable range of its market capitalization, which includes an assumed control premium (an adjustment reflecting an estimated fair value on a control basis), to verify the reasonableness of the fair value of its reporting units obtained through the aforementioned methods. The control premium is estimated based upon control premiums observed in comparable market transactions. To derive the fair value of its trade names, the Company utilized the “relief from royalty” approach. At July 1, 2018 , approximately 90% of the Company’s recorded goodwill and indefinite-lived purchased intangibles were concentrated within the JLG reporting unit in the access equipment segment. The impairment model assumes that the U.S. economy and construction spending will continue to improve over time. Assumptions utilized in the impairment analysis are highly judgmental. While the Company currently believes that an impairment of intangible assets at JLG is unlikely, events and conditions that could result in the impairment of intangibles at JLG include a sharp decline in economic conditions, significantly increased pricing pressure on JLG’s margins or other factors leading to reductions in expected long-term sales or profitability at JLG. Based on the Company’s annual impairment review, the Company concluded that there was no impairment of goodwill or indefinite-lived intangible assets. Changes in estimates or the application of alternative assumptions could have produced significantly different results. The following table presents changes in goodwill during fiscal 2018 and 2017 (in millions): Access Equipment Fire & Emergency Commercial Total Net goodwill at September 30, 2016 $ 876.6 $ 106.1 $ 20.8 $ 1,003.5 Foreign currency translation 9.3 — 0.2 9.5 Net goodwill at September 30, 2017 885.9 106.1 21.0 1,013.0 Foreign currency translation (5.0 ) — (0.1 ) (5.1 ) Net goodwill at September 30, 2018 $ 880.9 $ 106.1 $ 20.9 $ 1,007.9 The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions): September 30, 2018 September 30, 2017 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access Equipment $ 1,813.0 $ (932.1 ) $ 880.9 $ 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 $ 2,117.9 $ (1,110.0 ) $ 1,007.9 $ 2,123.0 $ (1,110.0 ) $ 1,013.0 Details of the Company’s total purchased intangible assets were as follows (in millions): September 30, 2018 Weighted- Average Life Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (30.9 ) $ 24.5 Technology-related 11.9 104.7 (101.8 ) 2.9 Customer relationships 12.8 555.0 (502.3 ) 52.7 Other 16.2 16.4 (14.8 ) 1.6 14.7 731.5 (649.8 ) 81.7 Non-amortizable trade names 387.7 — 387.7 $ 1,119.2 $ (649.8 ) $ 469.4 September 30, 2017 Weighted- Average Life 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 When determining the value of customer relationships for purposes of allocating the purchase price of an acquisition, the Company looks at existing customer contracts of the acquired business to determine if they represent a reliable future source of income and hence, a valuable intangible asset for the Company. The Company determines the fair value of the customer relationships based on the estimated future benefits the Company expects from the acquired customer contracts. In performing its evaluation and estimation of the useful lives of customer relationships, the Company looks to the historical growth rate of revenue of the acquired company’s existing customers as well as the historical attrition rates. In connection with the valuation of intangible assets, a 40 -year life was assigned to the value of the Pierce distribution network (net book value of $23.8 million at September 30, 2018 ). The Company believes Pierce maintains the largest North American fire apparatus distribution network. Pierce has exclusive contracts with each distributor related to the fire apparatus product offerings manufactured by Pierce. The useful life of the Pierce distribution network was based on a historical turnover analysis. Non-compete intangible asset lives are based on the terms of the applicable agreements. The estimated future amortization expense of purchased intangible assets for the five years succeeding September 30, 2018 are as follows: 2019 - $36.9 million ; 2020 - $11.0 million ; 2021 - $5.3 million ; 2022 - $4.9 million and 2023 - $3.5 million . |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Sep. 30, 2018 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Assets Disclosure | Other Long-Term Assets Other long-term assets consisted of the following (in millions): September 30, 2018 2017 Rabbi trust, less current portion $ 20.9 $ 20.6 Customer finance receivables 7.6 1.7 Customer notes receivable 0.1 25.7 Deferred income taxes, net 9.7 4.2 Investments in unconsolidated affiliates 12.9 15.5 Other 16.4 9.3 67.6 77.0 Less allowance for doubtful receivables (1.7 ) (8.6 ) $ 65.9 $ 68.4 The rabbi trust (the “Trust”) holds investments to fund certain of the Company’s obligations under its nonqualified supplemental executive retirement plan (SERP). Trust investments include money market and mutual funds. The Trust assets are subject to claims of the Company’s creditors. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Leases | Leases Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets included in net property, plant and equipment were immaterial at September 30, 2018 and 2017 . Other facilities and equipment are leased under arrangements that are accounted for as noncancelable operating leases. Total rental expense for property, plant and equipment under noncancelable operating leases was $47.1 million , $48.0 million and $45.0 million in fiscal 2018 , 2017 and 2016 , respectively. Future minimum lease payments due under operating leases at September 30, 2018 were as follows: 2019 - $23.6 million ; 2020 - $18.3 million ; 2021 - $14.5 million ; 2022 - $7.6 million ; 2023 - $4.6 million ; and thereafter - $2.8 million . |
Credit Agreements
Credit Agreements | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreements The Company was obligated under the following debt instruments (in millions): September 30, 2018 Principal Debt Issuance Costs Debt, Net Senior Term Loan $ 275.0 $ (0.8 ) $ 274.2 5.375% Senior notes due March 2025 250.0 (2.4 ) 247.6 4.600% Senior notes due May 2028 300.0 (3.8 ) 296.2 $ 825.0 $ (7.0 ) $ 818.0 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 On April 3, 2018, the Company entered into a Second Amended and Restated Credit Agreement with various lenders (the “Credit Agreement”). The Credit Agreement provides for (i) an unsecured revolving credit facility (the “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 (the “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. During the third quarter of fiscal 2018, the Company prepaid all required quarterly principal installments on the Term Loan through June 2022. The Company recognized $0.6 million of debt extinguishment expense in fiscal 2018 as a result of the amendment, including acceleration of $0.2 million of debt issuance costs previously capitalized and $0.4 million of third-party fees. In addition, $2.9 million of new debt issuance costs were capitalized and are being amortized over the term of the Credit Agreement. At September 30, 2018 , outstanding letters of credit of $85.5 million reduced the available capacity under the Revolving Credit Facility to $764.5 million . Effective April 3, 2018, to transition from the secured facilities under the previous credit agreement to unsecured facilities under the Credit Agreement, (i) the guaranties made pursuant to the previous credit agreement and the related loan documents were terminated (other than the Company’s guaranty under the previous credit agreement of certain obligations of its subsidiaries, which guaranty was superseded and replaced by a similar guaranty made by the Company under the Credit Agreement), and (ii) the collateral documents executed by the Company and/or its subsidiaries in connection with the previous credit agreement and the related loan documents and the liens created under such collateral documents were terminated, released and discharged. Under the Credit Agreement, the Company is obligated to 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 Credit Agreement and (ii) a fee ranging from 0.563% to 1.75% per annum of the maximum amount available to be drawn for each letter of credit issued and outstanding under the Credit Agreement. Borrowings under the Credit Agreement bear interest at a variable rate equal to (i) LIBOR plus a specified margin , which may be adjusted upward or downward depending on whether certain criteria are satisfied, or (ii) for dollar-denominated loans only, the base rate (which is the highest of (a) the administrative agent’s prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR ) plus a specified margin, which may be adjusted upward or downward depending on whether certain criteria are satisfied. At September 30, 2018 , the interest spread on the Revolving Credit Facility and Term Loan was 125 basis points . The weighted-average interest rate on borrowings outstanding under the Term Loan at September 30, 2018 was 3.49% . The Credit Agreement contains various restrictions and covenants, including requirements that the Company maintain certain financial ratios at prescribed levels and restrictions, subject to certain exceptions, on the ability of the Company and certain of its subsidiaries to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, consummate acquisitions and make investments in joint ventures and foreign subsidiaries. The Credit Agreement contains the following financial covenants: • Leverage Ratio: A maximum leverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated indebtedness to consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and certain other items (EBITDA) as of the last day of any fiscal quarter of 3.75 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 . With certain exceptions, the Credit Agreement limits the ability of the Company to pay dividends and other distributions, including repurchases of shares of its Common Stock. However, so long as no event of default exists under the Credit Agreement or would result from such payment, the Company may pay dividends and other distributions after 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. The Company was in compliance with the financial covenants contained in the Credit Agreement as of September 30, 2018 . 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”). On May 17, 2018, the Company issued $300.0 million of 4.600% unsecured senior notes due May 15, 2028 (the “2028 Senior Notes”) at a $1.0 million discount. The Company used the net proceeds from the sale of the 2028 Senior Notes to redeem all of the outstanding 2022 Senior Notes at a price of 102.688% and to pre-pay $49.2 million of quarterly principal installment payments under the Term Loan. The Company recognized $9.7 million of debt extinguishment expense, included in “Interest expense,” associated with the 2028 Senior Notes transaction in fiscal 2018, comprised of unamortized debt issuance costs of $3.0 million and the call premium on the 2022 Senior Notes of $6.7 million . In addition, $2.9 million of debt issuance costs were capitalized and are being amortized over the term of the 2028 Senior Notes. The 2025 Senior Notes and the 2028 Senior Notes were issued pursuant to separate indentures (the “Indentures”) between the Company and a trustee. The Indentures contain customary affirmative and negative covenants. The Company has the option to redeem the 2025 Senior Notes for a premium after March 1, 2020. The Company has the option to redeem the 2028 Senior Notes at any time for a premium. On April 3, 2018, the Company also entered into a First Supplemental Indenture relating to the 2025 Senior Notes, which amended and supplemented the 2025 Senior Notes indenture to release and discharge all note guaranties made by subsidiaries of the Company pursuant thereto 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 fair value of the long-term debt is estimated based upon Level 2 inputs to reflect market rate of the Company’s debt. At September 30, 2018 , the fair value of the 2025 Senior Notes and the 2028 Senior Notes was estimated to be $257 million ( $264 million at September 30, 2017 ) and $299 million , respectively. The fair value of the Term Loan approximated book value at both September 30, 2018 and 2017 . See Note 14 of the Notes to Consolidated Financial Statements for the definition of a Level 2 input. |
Warranties
Warranties | 12 Months Ended |
Sep. 30, 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. Warranty costs recorded were $57.0 million , $60.4 million and $46.8 million in fiscal 2018 , 2017 and 2016 , respectively. The Company offers a variety of extended warranty programs. The premiums received for an extended warranty are generally deferred until 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 $30.8 million at both September 30, 2018 and 2017 . Changes in the Company’s warranty liability and unearned extended warranty premiums were as follows (in millions): Fiscal Year Ended September 30, 2018 2017 Balance at beginning of year $ 98.8 $ 89.6 Warranty provisions 56.6 57.4 Settlements made (49.8 ) (51.8 ) Changes in liability for pre-existing warranties, net 2.4 2.5 Premiums received 12.7 12.4 Amortization of premiums received (14.2 ) (12.0 ) Foreign currency translation (0.5 ) 0.7 Balance at end of year $ 106.0 $ 98.8 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 | 12 Months Ended |
Sep. 30, 2018 | |
Guarantees [Abstract] | |
Guarantee Arrangements | Guarantee Arrangements The Company is party to multiple agreements whereby at September 30, 2018 and 2017 it guaranteed an aggregate of $685.3 million and $568.2 million , respectively, in indebtedness of customers. The Company estimated that its maximum loss exposure under these contracts at September 30, 2018 and 2017 was $121.8 million and $101.9 million , respectively. 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 additional accruals 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): Fiscal Year Ended September 30, 2018 2017 Balance at beginning of year $ 9.1 $ 8.4 Provision for new credit guarantees 5.1 3.2 Changes for pre-existing guarantees, net (0.9 ) 0.5 Amortization of previous guarantees (2.7 ) (3.1 ) Foreign currency translation (0.2 ) 0.1 Balance at end of year $ 10.4 $ 9.1 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 30, 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 . As of September 30, 2018 , the Company repurchased 6,059,664 shares under this authorization, leaving 4,239,534 shares of Common Stock remaining under this repurchase authorization as of September 30, 2018 . The Company repurchased 3.3 million shares at a cost of $249.3 million during fiscal 2018. The Company did not repurchase any shares under this authorization during fiscal 2017. Including shares repurchased under prior authorizations, the Company repurchased 2.5 million shares at a cost of $100.1 million during fiscal 2016 . The Company is restricted by its Credit Agreement from repurchasing shares in certain situations. See Note 9 of the Notes to Consolidated Financial Statements for information regarding these restrictions. The Company retired 17.0 million shares of treasury stock during fiscal 2018. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | 13. Derivative Financial Instruments and Hedging Activities The Company has used forward foreign currency exchange contracts (derivatives) to reduce the exchange rate risk of specific foreign currency denominated transactions. These derivatives typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date. At times, the Company has designated these hedges as either cash flow hedges or fair value hedges under FASB ASC Topic 815, Derivatives and Hedging as follows: Fair Value Hedging Strategy - The Company enters into forward foreign exchange contracts to hedge certain firm commitments denominated in foreign currencies. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the sale of products to international customers will be adversely affected by changes in exchange rates. Cash Flow Hedging Strategy - To protect against the impact of movements in foreign exchange rates on forecasted purchases or sales transactions denominated in foreign currency, the Company has a foreign currency cash flow hedging program. The Company hedges portions of its forecasted transactions denominated in foreign currency with forward contracts. At September 30, 2018 , the total notional U.S. dollar equivalent of outstanding forward foreign exchange contracts designated as hedges in accordance with ASC Topic 815 was $16.4 million . Net gains or losses related to these contracts are recorded within the same line item in the Consolidated Statements of Income impacted by the hedged item. The maximum length of time the Company is hedging its exposure to the variability in future cash flows is under twelve months. The Company has entered into forward foreign currency exchange contracts to create an economic hedge to manage foreign exchange risk exposure associated with non-functional currency denominated receivables and payables resulting from global sales and sourcing activities. The Company has not designated these derivative contracts as hedge transactions under FASB ASC Topic 815, and accordingly, the mark-to-market impact of these derivatives is recorded each period in current earnings within “Miscellaneous, net” in the Consolidated Statements of Income. The fair value of foreign currency related derivatives is included in the Consolidated Balance Sheets in “Other current assets” and “Other current liabilities.” At September 30, 2018 , the U.S. dollar equivalent of these outstanding forward foreign exchange contracts totaled $69.6 million in notional amounts covering a variety of foreign currency exposures. The Company entered into interest rate contracts to create an economic hedge to manage changes in interest rates on an executory sales contract that exposes the Company to interest rate risk based on changes in market interest rates. These contracts matured in the first quarter of fiscal 2018. The Company did not designate these derivative contracts as hedge transactions under FASB ASC Topic 815, and accordingly, the mark-to-market impact of these derivatives was recorded each period in current earnings within “Miscellaneous, net” in the Consolidated Statements of Income. The fair value of the interest rate related derivatives was included in the Consolidated Balance Sheets in “Other current assets” and “Other current liabilities.” There were no outstanding interest rate contracts at September 30, 2018 . The fair values of all open derivative instruments were as follows (in millions): September 30, 2018 September 30, 2017 Other Current Assets Other Current Liabilities Other Current Assets Other Current Liabilities Cash flow hedges: Foreign exchange contracts $ 0.4 $ — $ — $ 0.4 Not designated as hedging instruments: Foreign exchange contracts 0.4 0.2 0.5 0.8 Interest rate contracts — — 0.3 0.7 $ 0.8 $ 0.2 $ 0.8 $ 1.9 The pre-tax effects of derivative instruments consisted of the following (in millions): Classification of Gains (Losses) Fiscal Year Ended September 30, 2018 2017 2016 Cash flow hedges: Foreign exchange contracts Net sales $ — $ (0.1 ) $ — Foreign exchange contracts Cost of sales (0.5 ) (0.1 ) — Foreign exchange contracts Miscellaneous, net — (0.1 ) (0.2 ) Not designated as hedging instruments: Foreign exchange contracts Miscellaneous, net (2.4 ) 3.5 (7.6 ) Interest rate contracts Miscellaneous, net (0.7 ) 0.2 (0.2 ) $ (3.6 ) $ 3.4 $ (8.0 ) |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement FASB ASC Topic 820, Fair Value Measurements and Disclosures , defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than quoted prices in active markets for identical assets or liabilities, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. There were no transfers of assets between levels during fiscal 2018 or 2017 . The fair values of the Company’s financial assets and liabilities were as follows (in millions): Level 1 Level 2 Level 3 Total September 30, 2018 Assets: SERP plan assets (a) $ 22.1 $ — $ — $ 22.1 Foreign currency exchange derivatives (b) — 0.8 — 0.8 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.2 $ — $ 0.2 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 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 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. See Notes 9 and 17 of the Notes to Consolidated Financial Statements for fair value information related to debt and pension assets. Items Measured at Fair Value on a Nonrecurring Basis — In addition to items that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets (See Note 5 of the Notes to Consolidated Financial Statements for impairments of long-lived assets and Note 6 of the Notes to Consolidated Financial Statements for impairment valuation analysis of intangible assets). The Company has determined that the fair value measurements related to each of these assets rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets, as observable inputs are not available. As such, the Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 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 September 30, 2018 , the Company had reserved 7,919,214 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. Under the 2017 Stock Plan, officers, directors, including non-employee directors, and employees of the Company may be granted stock options, stock appreciation rights (SAR), performance shares, performance units, shares of Common Stock, restricted stock, restricted stock units (RSU) or other stock-based awards. The 2017 Stock Plan provides for the granting of options to purchase shares of the Company’s Common Stock at not less than the fair market value of such shares on the date of grant. Stock options granted under the 2017 Stock Plan generally become exercisable in equal installments over a three -year period, beginning with the first anniversary of the date of grant of the option, unless a shorter or longer duration is established by the Human Resources Committee of the Board of Directors at the time of the option grant. Stock options terminate not more than ten years from the date of grant. The exercise price of stock options and the market value of restricted stock unit awards are determined based on the closing market price of the Company’s Common Stock on the date of grant. Except to the extent vesting is accelerated upon early retirement and except for performance shares and performance units, vesting is based solely on continued service as an employee of the Company. 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. Information related to the Company’s equity-based compensation plans in effect as of September 30, 2018 was as follows: Plan Category Number of Securities to be Issued Upon Exercise of Outstanding Options or Vesting of Share Awards Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Equity compensation plans approved by security holders 1,915,157 $ 57.03 6,004,057 Equity compensation plans not approved by security holders — — — 1,915,157 $ 57.03 6,004,057 Total stock-based compensation expense (income) was as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Stock options $ 6.6 $ 7.5 $ 6.7 Stock awards (shares and units) 13.7 11.6 9.7 Performance share awards 6.4 3.3 2.3 Cash-settled stock appreciation rights (0.2 ) 3.3 3.4 Cash-settled restricted stock unit awards 0.4 0.5 0.9 Total stock-based compensation cost 26.9 26.2 23.0 Income tax benefit recognized for stock-based compensation (5.8 ) (9.6 ) (8.4 ) $ 21.1 $ 16.6 $ 14.6 Stock Options — A summary of the Company’s stock option activity is as follows: Fiscal Year Ended September 30, 2018 2017 2016 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Outstanding, beginning of year 1,531,691 $ 45.14 2,104,929 $ 39.55 2,369,872 $ 36.57 Granted 261,900 86.59 393,975 66.89 567,550 41.52 Forfeited (43,270 ) 66.49 (11,145 ) 52.54 (70,177 ) 44.31 Expired (1 ) 41.52 — — (43,392 ) 49.19 Exercised (481,336 ) 34.41 (956,068 ) 41.70 (718,924 ) 30.25 Outstanding, end of year 1,268,984 57.03 1,531,691 45.14 2,104,929 39.55 Exercisable, end of year 650,143 45.92 819,906 36.47 1,473,761 38.28 Stock options outstanding and exercisable as of September 30, 2018 were as follows (in millions, except share and per share amounts): Outstanding Exercisable Exercise Prices Options Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Aggregate Intrinsic Value Options Weighted Average Weighted Average Aggregate $ 7.95 - $ 28.96 93,784 0.9 $ 28.38 $ 4.0 93,784 0.9 $ 28.38 $ 4.0 $ 40.67 - $ 50.27 596,394 3.5 43.77 16.4 450,937 3.3 44.50 12.1 $ 66.89 - $ 86.59 578,806 6.9 75.34 1.4 105,422 5.3 67.61 0.4 1,268,984 4.8 57.03 $ 21.8 650,143 3.3 45.92 $ 16.5 The aggregate intrinsic values in the tables above represent the total pre-tax intrinsic value (difference between the Company’s closing stock price on the last trading day of fiscal 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2018 . This amount changes based on the fair market value of the Company’s Common Stock. The total intrinsic value of options exercised for fiscal 2018 , 2017 and 2016 was $23.2 million , $24.0 million and $12.6 million , respectively. The actual income tax benefit realized totaled $6.3 million , $8.8 million and $4.6 million for those same periods. As of September 30, 2018 , total unrecognized compensation cost related to outstanding stock options was $2.6 million , net of estimated forfeitures, which the Company expects to be recognized over a weighted-average period of 1.9 years. The Company uses the Black-Scholes valuation model to value stock options utilizing the following weighted-average assumptions: Fiscal Year Ended September 30, Options Granted During 2018 2017 2016 Assumptions: Expected term (in years) 5.4 5.1 5.1 Expected volatility 34.50 % 37.30 % 40.40 % Risk-free interest rate 2.09 % 1.79 % 1.73 % Expected dividend yield 1.15 % 1.52 % 1.65 % The expected option term represents the period of time that the options granted are expected to be outstanding and was based on historical experience. The Company used its historical stock prices over the expected term as the basis for the Company’s volatility assumption. The assumed risk-free interest rates were based on five-year U.S. Treasury rates in effect at the time of grant. The expected dividend yield was based on average actual yield on the ex-dividend date. The weighted-average per share grant date fair values for stock option grants during fiscal 2018 , 2017 and 2016 were $26.84 , $20.43 and $13.44 , respectively. Stock Awards — A summary of the Company’s stock award activity is as follows: Fiscal Year Ended September 30, 2018 2017 2016 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested, beginning of year 352,159 $ 55.22 313,806 $ 42.93 273,992 $ 46.84 Granted 163,225 86.07 214,325 66.84 323,800 40.33 Forfeited (26,915 ) 65.66 (16,381 ) 51.67 (53,928 ) 45.71 Vested (155,996 ) 56.02 (159,591 ) 47.01 (230,058 ) 43.28 Nonvested, end of year 332,473 69.15 352,159 55.22 313,806 42.93 The total fair value of shares vested during fiscal 2018 , 2017 and 2016 was $13.2 million , $11.2 million and $10.7 million , respectively. The actual income tax benefit realized totaled $3.0 million , $4.1 million and $3.9 million for those same periods. As of September 30, 2018 , total unrecognized compensation cost related to stock awards was $6.7 million , net of estimated forfeitures, which the Company expects to be recognized over a weighted-average period of 1.9 years. Performance Share Awards — A summary of the Company’s performance share awards activity is as follows: Fiscal Year Ended September 30, 2018 2017 2016 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested, beginning of year 116,600 $ 60.71 103,550 $ 49.83 129,475 $ 54.94 Granted 57,625 97.79 49,800 79.01 78,175 47.07 Forfeited (13,977 ) 71.75 — — (31,326 ) 52.90 Performance adjustments 57,914 47.50 36,750 54.84 (27,874 ) 54.71 Vested (119,787 ) 47.55 (73,500 ) 54.84 (44,900 ) 54.59 Nonvested, end of year 98,375 89.11 116,600 60.71 103,550 49.83 Performance share awards generally vest over a three-year service period following the grant date. Performance shares vest under two separate measurement criteria. The first type vest only if the Company’s total shareholder return (TSR) over the three year term of the awards compares favorably to that of a comparator group of companies. The second type vest only if the Company’s return on invested capital (ROIC) over the vesting period compares favorably to that of a comparator group of companies. Potential payouts range from zero to 200% of the target awards and changes from target amounts are reflected as performance adjustments. Actual payouts for TSR performance share awards vesting in the fiscal years ending September 30, 2018 , 2017 and 2016 were 200% , 200% and 80% of target levels, respectively. Awards based on ROIC were not granted until fiscal 2016; therefore, September 2018 was the first time this type of award vested. Actual payout for the ROIC performance share award vesting in the fiscal year ended September 30, 2018 was 191% of target level. In October 2018, 118,286 shares of Common Stock were issued from treasury for unpaid performance shares that vested in fiscal 2018. The total fair value of performance shares vested during fiscal 2018 , 2017 and 2016 was $7.6 million , $6.5 million and $2.4 million , respectively. The actual income tax benefit realized totaled $2.1 million , $2.4 million and $0.9 million for the same periods. As of September 30, 2018 , the Company had $7.2 million of unrecognized compensation expense related to performance share awards, which will be recognized over a weighted-average period of 1.9 years. The grant date fair values of the TSR performance share awards were estimated using a Monte Carlo simulation model utilizing the following weighted-average assumptions: Fiscal Year Ended September 30, Total Shareholder Return Performance Shares Granted During 2018 2017 2016 Assumptions: Expected term (in years) 2.86 2.86 2.88 Expected volatility 32.27 % 34.09 % 33.28 % Risk-free interest rate 1.84 % 1.32 % 1.20 % The Company used its historical stock prices as the basis for the Company’s volatility assumption. The assumed risk-free interest rates were based on U.S. Treasury rates in effect at the time of grant. The expected term was based on the vesting period. The weighted-average fair value used to record compensation expense for TSR performance share awards granted during fiscal 2018 , 2017 and 2016 was $112.30 , $96.47 and $54.33 per award, respectively. ROIC performance shares are granted as target awards. The grant date fair value of the awards is determined based on the Company’s stock price at the time of the grant and the anticipated awards expected to vest. A payout factor has been established ranging from zero to 200% of the target award based on the Company’s actual performance compared to performance of a peer group over the vesting period. Compensation expense is recorded ratably over the vesting period based on the amount of award that is expected to be earned under the plan formula, adjusted each reporting period based on current information. Cash-Settled Stock Appreciation Rights — In fiscal 2018 , 2017 and 2016 , the Company granted employees 11,650 , 11,750 and 27,900 cash-settled SARs, respectively. Each SAR award represents the right to receive cash equal to the excess of the per share price of the Company’s Common Stock on the date that a participant exercises such right over the grant date price of the Company’s Common Stock. Compensation cost for SARs is remeasured at each reporting period based on the estimated fair value on the date of grant using the Black Scholes option-pricing model, utilizing assumptions similar to stock option awards and is recognized as an expense over the requisite service period. The total value of SARs exercised during fiscal 2018 , 2017 and 2016 was $3.8 million , $2.9 million and $1.2 million , respectively. As of September 30, 2018 , the Company had $0.1 million of unrecognized compensation expense related to SAR awards, which will be recognized over a weighted-average period of 1.2 years. Cash-Settled Restricted Stock Units — In fiscal 2018 , 2017 and 2016 the Company granted employees 8,125 , 7,125 and 13,700 cash-settled RSUs, respectively. Each RSU award provides recipients the right to receive cash equal to the value of a share of the Company’s Common Stock at predetermined vesting dates. Compensation cost for RSUs is remeasured at each reporting period and is recognized as an expense over the requisite service period. The total value of RSUs vested during fiscal 2018 , 2017 and 2016 was $0.4 million , $0.5 million and $0.6 million , respectively. As of September 30, 2018 , the Company had $0.5 million of unrecognized compensation expense related to RSUs, which will be recognized over a weighted-average period of 1.4 years. |
Restructuring and Other Charges
Restructuring and Other Charges Restructuring and Other Charges | 12 Months Ended |
Sep. 30, 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 warehousing to a third party logistics company. This initiative was undertaken 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 which $0.2 million , $1.9 million and $0.9 million was incurred in fiscal 2018 , 2017 , and 2016, respectively. The Company has substantially completed this program and does not anticipate significant future costs related to this action. With the Company’s announced intent to outsource its aftermarket parts distribution to a third party, the Company abandoned an information system which was developed to support aftermarket parts distribution and recognized a pre-tax impairment charge of $26.9 million in the fourth quarter of fiscal 2016. In January 2017, the access equipment segment announced plans to close its manufacturing plant and pre-delivery inspection facilities in Belgium, streamline telehandler product offerings to a reduced range in Europe, transfer the remaining European telehandler manufacturing to the Company’s facility in Romania and reduce its engineering staff supporting European telehandlers, including the closure of a UK-based engineering facility. The plans also included the move of North American telehandler production from Ohio to facilities in Pennsylvania. The Company recognized restructuring costs under this program of $4.5 million and $33.9 million in fiscal 2018 and 2017, respectively. The Company has substantially completed this program and does not anticipate significant future costs related to this action. 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 an expense of $3.8 million during fiscal 2018 related to these actions. The Company has substantially completed this program and does not anticipate significant future costs related to this action. The commercial segment exited an additional facility in September 2018. The Company recognized an expense of $1.6 million during fiscal 2018 related 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): September 30, 2018 Cost of Sales Operating Expenses Total Access equipment $ 4.7 $ — $ 4.7 Commercial 1.9 3.5 5.4 Total $ 6.6 $ 3.5 $ 10.1 September 30, 2017 Cost of Sales Operating Expenses Total Access equipment $ 35.8 $ — $ 35.8 September 30, 2016 Cost of Sales Operating Expenses Total Access equipment $ 0.9 $ 26.9 $ 27.8 Changes in the Company’s restructuring reserves for fiscal 2018 , 2017 and 2016 were as follows (in millions): Employee Severance and Termination Benefits Property, Plant and Equipment Impairment Other Costs Total Balance at September 30, 2015 $ — $ — $ — $ — Restructuring provision 0.9 26.9 — 27.8 Utilized - noncash — (26.9 ) — (26.9 ) Balance at September 30, 2016 0.9 — — 0.9 Restructuring provision 27.3 4.3 4.2 35.8 Utilized - cash (9.7 ) — (3.3 ) (13.0 ) Utilized - noncash — (4.3 ) — (4.3 ) Foreign currency translation 1.3 — 0.1 1.4 Balance at September 30, 2017 19.8 — 1.0 20.8 Restructuring provision 3.5 0.4 6.2 10.1 Utilized - cash (21.3 ) — (5.8 ) (27.1 ) Utilized - noncash — (0.4 ) — (0.4 ) Foreign currency translation 0.1 — — 0.1 Balance at September 30, 2018 $ 2.1 $ — $ 1.4 $ 3.5 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plans — Oshkosh and certain of its subsidiaries sponsor multiple defined benefit pension plans for certain employees providing services to Oshkosh, Oshkosh Defense, Airport Products, Oshkosh Commercial and Pierce. The benefits provided are based primarily on average compensation, years of service and date of birth. Hourly plans are generally based on years of service and a benefit dollar multiplier. The Company periodically amends the plans, including changing the benefit dollar multipliers and other revisions. Effective December 31, 2012, salaried participants in the pension plans no longer receive credit, other than for vesting purposes, for eligible earnings. In December 2013, the Pierce pension plan was amended to close participation in the plan for new production employees. Effective October 1, 2016, the Oshkosh Defense hourly defined benefit pension plan was closed to new production employees, who will instead participate in an expanded Company-sponsored, defined contribution plan. Determination of defined benefit pension and postretirement plan obligations and their associated expenses requires the use of actuarial valuations to estimate the benefits that employees earn while working, as well as the present value of those benefits. The Company uses the services of independent actuaries to assist with these calculations. The Company determines the discount rate used each year based on the rate of return currently available on a portfolio of high-quality fixed-income investments with a maturity that is consistent with the projected benefit payout period. The Company’s long-term rate of return on assets is based on consideration of historical and forward-looking returns and the current asset allocation strategy. Supplemental Executive Retirement Plans — The Company maintains defined benefit and defined contribution SERPs for certain executive officers of Oshkosh and its subsidiaries. In fiscal 2013, the Oshkosh defined benefit SERP was amended to freeze benefits under the plan and certain executive officers became eligible for the new Oshkosh defined contribution SERP. At the same time, the Company established the Trust to fund obligations under the Oshkosh SERPs. As of September 30, 2018 , the Trust held assets of $22.1 million . The Trust assets are subject to claims of the Company’s creditors. The Trust assets are included in “Other current assets ” and “Other long-term assets ” in the Consolidated Balance Sheets. The Company recognized $2.0 million , $2.0 million and $1.8 million of expense under the Oshkosh defined contribution SERP in fiscal 2018 , 2017 and 2016 , respectively. Postretirement Medical Plans — Oshkosh and certain of its subsidiaries sponsor multiple postretirement benefit plans for Oshkosh Defense, JLG, Pierce and Kewaunee hourly employees, retirees and their spouses. The plans generally provide health benefits based on years of service and date of birth. These plans are unfunded. Changes in benefit obligations and plan assets, as well as the funded status of the Company’s defined benefit pension plans and postretirement benefit plans as of and for the fiscal years ended September 30, 2018 and 2017 , were as follows (in millions): Postretirement Pension Benefits Health and Other 2018 2017 2018 2017 Accumulated benefit obligation at September 30 $ 452.6 $ 468.9 $ 46.6 $ 50.0 Change in projected benefit obligation Benefit obligation at October 1 $ 473.7 $ 482.3 $ 50.0 $ 47.2 Service cost 10.5 10.7 3.7 2.5 Interest cost 17.9 17.8 1.8 1.6 Actuarial loss (gain) (32.3 ) (12.1 ) (6.5 ) 0.5 Participant contributions 0.1 0.2 — — Plan amendments — — (0.6 ) — Curtailments — 0.5 — — Benefits paid (13.4 ) (26.6 ) (1.8 ) (1.8 ) Currency translation adjustments (0.7 ) 0.9 — — Benefit obligation at September 30 $ 455.8 $ 473.7 $ 46.6 $ 50.0 Change in plan assets Fair value of plan assets at October 1 $ 367.8 $ 334.0 $ — $ — Actual return on plan assets 25.0 43.5 — — Company contributions 8.8 17.7 1.8 1.8 Participant contributions 0.1 0.2 — — Expenses paid (3.2 ) (1.9 ) — — Benefits paid (13.4 ) (26.6 ) (1.8 ) (1.8 ) Currency translation adjustments (0.9 ) 0.9 — — Fair value of plan assets at September 30 $ 384.2 $ 367.8 $ — $ — Funded status of plan - underfunded at September 30 $ (71.6 ) $ (105.9 ) $ (46.6 ) $ (50.0 ) Recognized in consolidated balance sheet at September 30 Prepaid benefit (long-term asset) $ 4.3 $ — $ — $ — Accrued benefit liability (current liability) (1.9 ) (1.9 ) (1.2 ) (1.1 ) Accrued benefit liability (long-term liability) (74.0 ) (104.0 ) (45.4 ) (48.9 ) $ (71.6 ) $ (105.9 ) $ (46.6 ) $ (50.0 ) Recognized in accumulated other comprehensive income (loss) as of September 30 (net of taxes) Net actuarial (loss) gain $ (12.6 ) $ (41.7 ) $ 0.4 $ (4.6 ) Prior service (cost) benefit (6.5 ) (7.9 ) 7.8 8.0 $ (19.1 ) $ (49.6 ) $ 8.2 $ 3.4 Weighted-average assumptions as of September 30 Discount rate 4.18 % 3.85 % 4.20 % 3.71 % Expected return on plan assets 5.50 % 5.93 % n/a n/a Pension benefit plans with accumulated benefit obligations in excess of plan assets consisted of the following (in millions): September 30, 2018 2017 Projected benefit obligation $ 430.3 $ 473.7 Accumulated benefit obligation 425.5 468.9 Fair value of plan assets 354.4 367.8 The components of net periodic benefit cost for fiscal years ended September 30 were as follows (in millions): Postretirement Pension Benefits Health and Other 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 10.5 $ 10.7 $ 8.8 $ 3.7 $ 2.5 $ 2.0 Interest cost 17.9 17.8 18.3 1.8 1.6 1.5 Expected return on plan assets (21.4 ) (17.9 ) (17.4 ) — — — Amortization of prior service cost (benefit) 1.8 1.8 1.8 (0.9 ) (0.9 ) (0.9 ) Curtailment/settlement — 0.5 — — — — Amortization of net actuarial loss (gain) 1.9 4.5 2.3 0.1 0.2 (0.1 ) Expenses paid 3.2 1.9 2.2 — — — Net periodic benefit cost $ 13.9 $ 19.3 $ 16.0 $ 4.7 $ 3.4 $ 2.5 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss (gain) $ (35.9 ) $ (37.8 ) $ 36.6 $ (6.5 ) $ 0.5 $ 8.3 Prior service cost (benefit) — — 1.1 (0.6 ) — — Amortization of prior service benefit (cost) (1.8 ) (1.8 ) (1.8 ) 0.9 0.9 0.9 Amortization of net actuarial (loss) gain (1.9 ) (4.5 ) (2.3 ) (0.1 ) (0.2 ) 0.1 $ (39.6 ) $ (44.1 ) $ 33.6 $ (6.3 ) $ 1.2 $ 9.3 Weighted-average assumptions Discount rate 3.85 % 3.70 % 4.45 % 3.71 % 3.47 % 4.08 % Expected return on plan assets 5.93 % 5.78 % 6.03 % n/a n/a n/a Amounts expected to be recognized in pension and supplemental employee retirement plan net periodic benefit costs during fiscal 2019 included in “Accumulated other comprehensive income (loss)” in the Consolidated Balance Sheet at September 30, 2018 are prior service costs of $1.7 million ( $1.3 million net of tax) and unrecognized net actuarial losses of $0.6 million ( $0.4 million net of tax). The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the Company was 6.7% in fiscal 2018 , declining to 5.0% in fiscal 2025. If the health care cost trend rate was increased by 100 basis points, the accumulated postretirement benefit obligation at September 30, 2018 would increase by $11.5 million and the net periodic postretirement benefit cost for fiscal 2019 would increase by $1.7 million . A corresponding decrease of 100 basis points would decrease the accumulated postretirement benefit obligation at September 30, 2018 by $8.1 million and the net periodic postretirement benefit cost for fiscal 2019 would decrease by $1.1 million . The Company’s Board of Directors has appointed an Investment Committee (Committee), which consists of members of management, to manage the investment of the Company’s pension plan assets. The Committee has established and operates under an Investment Policy. The Committee determines the asset allocation and target ranges based upon periodic asset/liability studies and capital market projections. The Committee retains external investment managers to invest the assets and an adviser to monitor the performance of the investment managers. The Investment Policy prohibits certain investment transactions, such as commodity contracts, margin transactions, short selling and investments in Company securities, unless the Committee gives prior approval. The weighted-average of the Company’s pension plan asset allocations and target allocations at September 30, 2018 by asset category, were as follows: Target % Actual Asset Category Fixed income 40% - 50% 44 % Large-cap equity 20% - 30% 26 % Mid-cap equity 5% - 15% 11 % Small-cap equity 5% - 10% 9 % Global equity 5% - 10% 7 % Other 0% - 10% 3 % 100 % The Company’s pension plan investment strategy is based on an expectation that, over time, equity securities will provide higher returns than debt securities. The plans primarily minimize the risk of larger losses under this strategy through diversification of investments by asset class, by investing in different styles of investment management within the classes and using a number of different investment managers. Beginning in fiscal 2016, the Company began to implement a dynamic liability driven investment strategy for those pension plans with frozen benefits. The objective of this strategy is to more closely align the pension plan assets with its pension plan liabilities in terms of how both respond to changes in interest rates. Plan assets will be allocated to two investment categories, including a category containing high quality fixed income securities and another category comprised of traditional securities and alternative asset classes. Assets are managed externally according to guidelines approved by the Company. Over time, the Company intends to reduce assets allocated to the return seeking category and correspondingly increase assets allocated to the high quality fixed income category to align assets more closely with the pension plan obligations. The plans’ expected return on assets is based on management’s and the Committee’s expectations of long-term average rates of return to be achieved by the plans’ investments. These expectations are based on the plans’ historical returns and expected returns for the asset classes in which the plans are invested. The fair value of plan assets by major category and level within the fair value hierarchy was as follows (in millions): Quoted Prices for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total September 30, 2018 Common stocks U.S. companies (a) $ 77.0 $ 6.6 $ — $ 83.6 International companies (b) — 13.1 — 13.1 Mutual funds (a) 76.6 — — 76.6 Government and agency bonds (c) — 6.1 — 6.1 Corporate bonds and notes (d) — 6.9 — 6.9 Money market funds (e) 7.9 — — 7.9 $ 161.5 $ 32.7 $ — 194.2 Investments measured at net asset value (NAV) (f) 190.0 $ 384.2 September 30, 2017 Common stocks U.S. companies (a) $ 70.8 $ 5.7 $ — $ 76.5 International companies (b) — 11.4 — 11.4 Mutual funds (a) 71.3 — — 71.3 Government and agency bonds (c) — 5.4 — 5.4 Corporate bonds and notes (d) — 4.5 — 4.5 Money market funds (e) 9.1 — — 9.1 $ 151.2 $ 27.0 $ — 178.2 Investments measured at net asset value (NAV) (f) 189.6 $ 367.8 _________________________ (a) Primarily valued using a market approach based on the quoted market prices of identical instruments that are actively traded on public exchanges. (b) Valuation model looks at underlying security “best” price, exchange rate for underlying security’s currency against the U.S. dollar and ratio of underlying security to American depository receipt. (c) These investments consist of debt securities issued by the U.S. Treasury, U.S. government agencies and U.S. government-sponsored enterprises and have a variety of structures, coupon rates and maturities. These investments are considered to have low default risk as they are guaranteed by the U.S. government. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (d) These investments consist of debt obligations issued by a variety of private and public corporations. These are investment grade securities which historically have provided a steady stream of income. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (e) These investments largely consist of short-term investment funds and are valued using a market approach based on the quoted market prices of identical instruments. (f) These investments consist of privately placed funds that are valued based on NAV. NAV of the funds is based on the fair value of each funds underlying investments. In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The following table sets forth additional disclosures for the fair value measurement of the fair value of pension plans assets that calculate fair value based on NAV per share practical expedient as of September 30, 2018 (in millions): Fair Value Unfunded Commitments Redemption Frequency (if Currently Eligible) Redemption Notice Period (1) Common collective trust $ 190.0 $ — N/A 15 days _________________________ (1) Represents the maximum redemption period. A portion of the investment does not have any redemption period restrictions. The following table sets forth additional disclosures for the fair value measurement of the fair value of pension plans assets that calculate fair value based on NAV per share practical expedient as of September 30, 2017 (in millions): Fair Value Unfunded Commitments Redemption Frequency (if Currently Eligible) Redemption Notice Period (1) Common collective trust $ 189.6 $ — N/A 15 days _________________________ (1) Represents the maximum redemption period. A portion of the investment does not have any redemption period restrictions. The Company’s policy is to fund the pension plans in amounts that comply with contribution limits imposed by law. The Company expects to make contributions of approximately $10.0 million to its pension plans in fiscal 2019 . The Company’s estimated future benefit payments under Company sponsored plans were as follows (in millions): Postretirement Health and Other Fiscal Year Ending Pension Benefits September 30, Qualified Non-Qualified 2019 $ 13.0 $ 1.9 $ 1.2 2020 14.5 1.9 1.7 2021 16.0 1.8 2.2 2022 17.4 1.8 2.8 2023 18.8 1.9 3.2 2024-2028 113.3 9.8 21.1 Multi-Employer Pension Plans — The Company participates in the Boilermaker-Blacksmith National Pension Trust (Employer Identification Number 48-6168020), a multi-employer defined benefit pension plan related to collective bargaining employees at the Company’s Kewaunee facility. The Company’s contributions and pension benefits payable under the plan and the administration of the plan are determined by the terms of the related collective-bargaining agreement, which expires on May 1, 2022. The multi-employer plan poses different risks to the Company than single-employer plans in the following respects: 1. The Company’s contributions to the multi-employer plan may be used to provide benefits to all participating employees of the program, including employees of other employers. 2. In the event that another participating employer ceases contributions to the multi-employer plan, the Company may be responsible for any unfunded obligations along with the remaining participating employers. 3. If the Company chooses to withdraw from the multi-employer plan, the Company may be required to pay a withdrawal liability based on the underfunded status of the plan at that time. As of December 31, 2017, the plan-certified zone status as defined by the Pension Protection Act of 2006 was Yellow and accordingly the plan has implemented a financial improvement plan or a rehabilitation plan. The Company’s contributions to the multi-employer plan did not exceed 5% of the total plan contributions for fiscal 2018 , 2017 or 2016 . The Company made contributions to the plan of $1.3 million , $1.2 million and $1.2 million in fiscal 2018 , 2017 and 2016 , respectively. 401(k) and Defined Contribution Pension Replacement Plans — The Company has defined contribution 401(k) plans for substantially all domestic employees. The plans allow employees to defer 2% to 100% of their income on a pre-tax basis. Each employee who elects to participate is eligible to receive Company matching contributions, which are based on employee contributions to the plans, subject to certain limitations. For pension replacement plans, the Company contributes between 2% and 6% of an employee’s base pay, depending on age. Amounts expensed for Company matching and discretionary contributions were $42.9 million , $37.6 million and $35.6 million in fiscal 2018 , 2017 and 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Pre-tax income was taxed in the following jurisdictions (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Domestic $ 514.9 $ 392.7 $ 277.1 Foreign 79.7 18.6 29.9 $ 594.6 $ 411.3 $ 307.0 Significant components of the provision for income taxes were as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Allocated to Income Before Earnings of Unconsolidated Affiliates Current: Federal $ 92.0 $ 104.9 $ 103.6 Foreign 22.0 13.5 3.2 State 12.9 1.0 2.6 Total current 126.9 119.4 109.4 Deferred: Federal 5.4 6.6 (18.5 ) Foreign (5.5 ) 4.2 2.0 State (3.0 ) (3.0 ) (0.5 ) Total deferred (3.1 ) 7.8 (17.0 ) $ 123.8 $ 127.2 $ 92.4 Allocated to Other Comprehensive Income (Loss) Deferred federal, state and foreign $ 11.0 $ 15.1 $ (14.2 ) The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense was: Fiscal Year Ended September 30, 2018 2017 2016 Effective Rate Reconciliation U.S. federal tax rate 24.5 % 35.0 % 35.0 % State income taxes, net 2.1 1.3 1.3 Foreign taxes 1.0 0.6 (1.7 ) Valuation allowance (1.4 ) 0.5 (0.6 ) Domestic tax credits (2.1 ) (4.2 ) (1.5 ) Manufacturing deduction (1.6 ) (2.8 ) (3.0 ) Share-based compensation (0.7 ) (1.3 ) — Remeasurement of deferred taxes - U.S. Tax Reform (5.1 ) — — Mandatory repatriation tax - U.S. Tax Reform 3.3 — — Other, net 0.8 1.8 0.6 20.8 % 30.9 % 30.1 % During fiscal 2018 , the Company recorded discrete tax benefits of $21.7 million ( 3.6% of pre-tax income), which included benefits related to excess tax deductions from share-based compensation, provision to return adjustments for federal, state, and foreign jurisdictions, tax reserve releases due to expiration of statutes of limitations and other resolutions, and new tax legislation in the United States. During fiscal 2017 , the Company recorded discrete tax benefits of $20.1 million ( 4.9% of pre-tax income), which included benefits related to excess tax benefit from share-based compensation, provision to return adjustments for federal, state, and foreign jurisdictions, tax reserve releases due to expiration of statutes of limitations and other resolutions, and releases of valuation allowances on deferred tax assets for federal capital loss and state net operating loss carryforwards. During fiscal 2016 , the Company recorded discrete tax benefits of $7.5 million ( 2.4% of pre-tax income), which included benefits related to the reinstatement of the U.S. research and development tax credit for periods prior to fiscal 2016, provision to return adjustments for federal, state, and foreign jurisdictions, and tax reserve releases due to expiration of statutes of limitations. 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, imposing a one-time repatriation tax on deemed repatriated earnings of foreign subsidiaries (the “Transition Tax”), and creating new taxes on certain foreign-sourced earnings. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. The U.S. Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) No. 118, which provides guidance on how to account for the effects of the Tax Reform Act under ASC 740, Income Taxes . SAB No. 118 enables companies to record a provisional amount for the effects of the U.S. Tax Reform Act based on a reasonable estimate, subject to adjustment during a measurement period of up to one year, until accounting is complete. The Company recorded $30.2 million of tax benefit during fiscal 2018 as a result of the remeasurement of deferred tax assets and liabilities required as a result of the Tax Reform Act, which completes the Company’s remeasurement of deferred taxes for the Tax Reform Act. The Company recorded net tax expense of $19.5 million with respect to the Transition Tax, which represents a provisional amount and the Company’s best estimate as of September 30, 2018. Adjustments recorded to the provisional amount are and will be included in income from operations as an adjustment to tax expense. The provisional amount incorporates 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. The Company expects to have future U.S. inclusions in taxable income related to the new Global Intangible Low-Taxed Income (GILTI) tax created by the Tax Reform Act. 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 is utilizing the period cost method and therefore has not made any adjustments related to potential GILTI tax in its fiscal 2018 financial statements. Deferred income tax assets and liabilities were comprised of the following (in millions): September 30, 2018 2017 Deferred tax assets: Other long-term liabilities $ 20.5 $ 81.0 Losses and credits 33.5 31.2 Accrued warranty 22.1 31.8 Other current liabilities 17.0 24.5 Payroll-related obligations 22.7 34.9 Receivables 1.7 7.0 Other 6.2 12.4 Gross deferred tax assets 123.7 222.8 Less valuation allowance (2.1 ) (10.4 ) Deferred tax assets, net 121.6 212.4 Deferred tax liabilities: Intangible assets 89.1 154.8 Property, plant and equipment 41.4 52.4 Inventories 12.5 17.6 Other 2.4 3.6 Deferred tax liabilities 145.4 228.4 Deferred tax liabilities, net of deferred tax assets $ (23.8 ) $ (16.0 ) The net deferred tax liability is classified in the Consolidated Balance Sheets as follows (in millions): September 30, 2018 2017 Long-term net deferred tax asset $ 9.7 $ 4.2 Long-term net deferred tax liability (33.5 ) (20.2 ) Net deferred tax liability $ (23.8 ) $ (16.0 ) As of September 30, 2018 , the Company had $36.3 million of net operating loss carryforwards available to reduce future taxable income of certain foreign subsidiaries in countries which allow such losses to be carried forward anywhere from seven years to an unlimited period. In addition, the Company had $227.5 million of state net operating loss carryforwards, which are subject to expiration in 2018 to 2037 and state credit carryforwards of $22.9 million , which are subject to expiration in 2025 to 2032. Deferred tax assets for foreign net operating loss carryforwards, state net operating loss carryforwards and state credit carryforwards were $9.4 million , $9.2 million and $14.9 million , respectively. Amounts are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax-planning strategies and projections of future taxable income. The Company maintains a valuation allowance against state deferred tax assets of $2.1 million as of September 30, 2018 . As a result of the Tax Reform Act, the Company has provided for U.S. income taxes on deemed repatriated earnings related to non-U.S. subsidiaries as of September 30, 2018. Notwithstanding the deemed repatriation under the Tax Reform Act, the Company considers that undistributed earnings of its foreign operations are intended to be indefinitely reinvested. Should these earnings be distributed in the future in the form of dividends or otherwise, the Company may be subject to foreign withholding taxes. At September 30, 2018 , the Company had undistributed earnings not subject to the deemed repatriation tax of $41.8 million . At this time, determination of the unrecognized deferred tax liabilities for temporary differences related to the Company’s investment in non-U.S. subsidiaries, and any withholding taxes upon any future repatriation, is not practicable. A reconciliation of gross unrecognized tax benefits, excluding interest and penalties, was as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Balance at beginning of year $ 37.2 $ 37.4 $ 27.0 Additions for tax positions related to current year 4.2 1.2 7.6 Additions for tax positions related to prior years 5.4 6.0 8.4 Reductions for tax positions related to prior years (7.1 ) (5.5 ) (1.1 ) Settlements (4.1 ) — (3.0 ) Lapse of statutes of limitations (1.9 ) (1.9 ) (1.5 ) Balance at end of year $ 33.7 $ 37.2 $ 37.4 As of September 30, 2018 , net unrecognized tax benefits of $18.2 million would affect the Company’s effective tax rate if recognized. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in the “Provision for income taxes” in the Consolidated Statements of Income. During fiscal 2018 , 2017 and 2016 , the Company recognized income of $3.7 million , $0.4 million and $1.2 million related to interest and penalties, respectively. At September 30, 2018 and 2017 , the Company had accruals for the payment of interest and penalties of $5.0 million and $9.8 million , respectively. During fiscal 2018, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce unrecognized tax benefits by approximately $3.2 million , either because the Company’s tax positions are sustained on audit, because the Company agrees to their disallowance or the statute of limitations closes. The Company files federal income tax returns, as well as multiple state, local and non-U.S. jurisdiction tax returns. The Company is regularly audited by federal, state and foreign tax authorities. During fiscal 2016, the U.S. Internal Revenue Service completed its audit of the Company for the taxable years ended September 30, 2012 and 2013. As of September 30, 2018 , tax years open for examination under applicable statutes were as follows: Tax Jurisdiction Open Tax Years Australia 2013 - 2018 Belgium 2016 - 2018 Brazil 2013 - 2018 Canada 2014 - 2018 China 2013 - 2018 Romania 2012 - 2018 Netherlands 2013 - 2018 United Kingdom 2017 - 2018 United States (federal) 2015 - 2018 United States (state and local) 2009 - 2018 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [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): Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments, Net of Tax Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2015 $ (46.4 ) $ (98.1 ) $ 0.1 $ (144.4 ) Other comprehensive income (loss) before reclassifications (29.5 ) (3.0 ) (0.2 ) (32.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 2.0 — 0.1 2.1 Net current period other comprehensive income (loss) (27.5 ) (3.0 ) (0.1 ) (30.6 ) Balance at September 30, 2016 (73.9 ) (101.1 ) — (175.0 ) Other comprehensive income (loss) before reclassifications 23.7 22.5 (0.2 ) 46.0 Amounts reclassified from accumulated other comprehensive income (loss) 4.0 — — 4.0 Net current period other comprehensive income (loss) 27.7 22.5 (0.2 ) 50.0 Balance at September 30, 2017 (46.2 ) (78.6 ) (0.2 ) (125.0 ) Other comprehensive income (loss) before reclassifications 33.1 (17.6 ) 0.6 16.1 Amounts reclassified from accumulated other comprehensive income (loss) 2.2 — (0.1 ) 2.1 Net current period other comprehensive income (loss) 35.3 (17.6 ) 0.5 18.2 Balance at September 30, 2018 $ (10.9 ) $ (96.2 ) $ 0.3 $ (106.8 ) Reclassifications out of accumulated other comprehensive income (loss) included in the computation of net periodic pension and postretirement benefit cost (See Note 17 of the Notes to Consolidated Financial Statements for additional details regarding employee benefit plans) were as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Amortization of employee pension and postretirement benefits items Prior service costs $ 0.9 $ 0.9 $ 0.9 Actuarial losses 2.0 4.7 2.2 Curtailment/settlement — 0.5 — Total before tax 2.9 6.1 3.1 Tax benefit (0.7 ) (2.1 ) (1.1 ) Net of tax $ 2.2 $ 4.0 $ 2.0 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding was as follows: Fiscal Year Ended September 30, 2018 2017 2016 Basic weighted-average common shares outstanding 74,001,582 74,674,115 73,570,020 Dilutive stock options and other equity-based compensation awards 980,417 1,115,930 862,898 Diluted weighted-average common shares outstanding 74,981,999 75,790,045 74,432,918 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: Fiscal Year Ended September 30, 2018 2017 2016 Stock options 253,238 381,350 224,200 |
Contingencies, Significant Esti
Contingencies, Significant Estimates and Concentrations | 12 Months Ended |
Sep. 30, 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 September 30, 2018 and 2017 , the estimated net liabilities for product and general liability claims totaled $36.0 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 $599.2 million and $598.4 million at September 30, 2018 and 2017 , respectively. Open standby letters of credit issued by the Company’s banks in favor of third parties totaled $91.1 million and $96.9 million at September 30, 2018 and 2017 , respectively. Other Matters — The Company is subject to other environmental matters and legal proceedings and claims, including patent, antitrust, product liability, warranty and state dealership regulation compliance proceedings that arise in the ordinary course of business. Although the final results of all such matters and claims cannot be predicted with certainty, management believes that the ultimate resolution of all such matters and claims will not have a material effect on the Company’s financial condition, results of operations or cash flows. Actual results could vary, among other things, due to the uncertainties involved in litigation. At September 30, 2018 , approximately 25% of the Company’s workforce was covered under collective bargaining agreements. The Company derived a significant portion of its revenue from the DoD, as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 DoD $ 1,648.4 $ 1,314.6 $ 1,205.0 Foreign military sales 28.0 32.1 1.8 Total DoD sales $ 1,676.4 $ 1,346.7 $ 1,206.8 No other customer represented more than 10% of sales for fiscal 2018 , 2017 or 2016 . Certain risks are inherent in doing business with the DoD, including technological changes and changes in levels of defense spending. All DoD contracts contain a provision that they may be terminated at any time at the convenience of the U.S. government. In such an event, the Company is entitled to recover allowable costs plus a reasonable profit earned to the date of termination. Because the Company is a relatively large defense contractor, the Company’s U.S. government contract operations are subject to extensive annual audit processes and to U.S. government investigations of business practices and cost classifications from which legal or administrative proceedings can result. Based on U.S. government procurement regulations, under certain circumstances the Company could be fined, as well as suspended or debarred from U.S. government contracting. During a suspension or debarment, the Company would also be prohibited from selling equipment or services to customers that depend on loans or financial commitments from the Export-Import Bank, Overseas Private Investment Corporation and similar U.S. government agencies. 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 Order and Reasons (the “Order”) outlining the compensation to which the Company is entitled as a result of the challenge. Under the Order, the Tribunal recommended that the Company be awarded a fixed payment for lost profits of approximately 25.3 million Canadian dollars plus additional compensation on any potential future option exercises if and when exercised by Canada. In August 2018, the Company reached a settlement with the Canadian government. The Company recorded a $19.0 million U.S. dollar reduction of selling, general and administrative expenses in fiscal 2018 in connection with the settlement. The Company recognized a $6.6 million gain during fiscal 2018 upon receipt of proceeds for a claim under its business interruption insurance. The claim was primarily for loss profits due to an accident that occurred at one of the commercial segments facilities in January 2017. The gain has been recognized as a reduction of cost of sales. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Sep. 30, 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. The Company’s segments are as follows: Access Equipment : This segment consists of JLG and JerrDan. JLG designs and manufactures aerial work platforms and telehandlers that are sold worldwide for use in a wide variety of construction, industrial, institutional and general maintenance applications to position workers and materials at elevated heights. Access equipment customers include equipment rental companies, construction contractors, manufacturing companies and home improvement centers. JerrDan designs, manufactures and markets towing and recovery equipment in the U.S. and abroad. Defense : This segment consists of Oshkosh Defense. Oshkosh Defense designs and manufactures tactical wheeled vehicles and supply parts and services for the U.S. military and for other militaries around the world. Sales to the DoD accounted for 89.7% , 70.6% and 86.1% of the segment’s sales for fiscal 2018 , 2017 and 2016 , respectively. Fire & Emergency : This segment includes Pierce, Airport Products and Kewaunee. These business units design, manufacture and market commercial and custom fire vehicles, simulators and emergency vehicles primarily for fire departments, airports and other governmental units, and broadcast vehicles for broadcasters and TV stations in the U.S. and abroad. Commercial : This segment includes McNeilus, CON-E-CO, London, IMT and Oshkosh Commercial. McNeilus, CON-E-CO, London and Oshkosh Commercial design, manufacture, market and distribute concrete mixers, portable concrete batch plants and vehicle and vehicle body components. McNeilus and London also design, manufacture, market and distribute refuse collection vehicles and components. IMT is a designer and manufacturer of field service vehicles and truck-mounted cranes for niche markets. Sales are made primarily to commercial and municipal customers in the Americas. 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. The accounting policies of the reportable segments are the same as those described in Note 2 of the Notes to Consolidated Financial Statements. Selected financial information concerning the Company’s reportable segments and product lines is as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 2,017.2 $ — $ 2,017.2 $ 1,629.6 $ — $ 1,629.6 $ 1,539.5 $ — $ 1,539.5 Telehandlers 948.9 — 948.9 661.8 — 661.8 773.9 — 773.9 Other 810.7 — 810.7 735.0 — 735.0 699.0 — 699.0 Total access equipment 3,776.8 — 3,776.8 3,026.4 — 3,026.4 3,012.4 — 3,012.4 Defense 1,827.3 1.6 1,828.9 1,818.6 1.5 1,820.1 1,349.3 1.8 1,351.1 Fire & emergency 1,053.6 16.1 1,069.7 1,015.4 15.5 1,030.9 941.5 11.8 953.3 Commercial Concrete placement 491.8 — 491.8 474.0 — 474.0 463.6 — 463.6 Refuse collection 438.3 — 438.3 391.1 — 391.1 409.1 — 409.1 Other 116.7 7.9 124.6 99.3 5.9 105.2 103.3 3.2 106.5 Total commercial 1,046.8 7.9 1,054.7 964.4 5.9 970.3 976.0 3.2 979.2 Corporate and intersegment eliminations 1.0 (25.6 ) (24.6 ) 4.8 (22.9 ) (18.1 ) — (16.8 ) (16.8 ) Consolidated $ 7,705.5 $ — $ 7,705.5 $ 6,829.6 $ — $ 6,829.6 $ 6,279.2 $ — $ 6,279.2 Fiscal Year Ended September 30, 2018 2017 2016 Operating income (loss): Access equipment (a) $ 387.8 $ 259.1 $ 263.4 Defense (b) 222.9 207.9 122.5 Fire & emergency 137.2 104.2 67.0 Commercial (c) 67.5 43.8 67.6 Corporate (161.9 ) (152.0 ) (156.5 ) Consolidated 653.5 463.0 364.0 Interest expense, net of interest income (d) (55.6 ) (54.9 ) (58.3 ) Miscellaneous other (expense) income (3.3 ) 3.2 1.3 Income before income taxes and earnings of unconsolidated affiliates $ 594.6 $ 411.3 $ 307.0 _________________________ (a) Fiscal 2018 results include $4.7 million of restructuring costs and $24.8 million of operating expenses related to restructuring plans. Fiscal 2017 results include $35.8 million of restructuring costs and $9.4 million of operating expenses related to restructuring plans. Fiscal 2016 results include a $26.9 million asset impairment charge and a $0.9 million workforce reduction charge. (b) Fiscal 2018 results include a $19.0 million gain for a litigation settlement. See Note 21 of the Notes to Consolidated Financial Statements for additional details regarding the settlement. (c) Fiscal 2018 results include $5.4 million of restructuring costs, a business interruption insurance gain of $6.6 million and a loss on the sale of a small product line of $1.4 million . (d) Fiscal 2018 results include $9.9 million in debt extinguishment costs. Fiscal Year Ended September 30, 2018 2017 2016 Depreciation and amortization: Access equipment $ 61.1 $ 72.1 $ 77.0 Defense 15.2 14.5 11.1 Fire & emergency 9.5 9.4 9.7 Commercial 12.9 12.7 12.0 Corporate 21.8 21.6 19.0 Consolidated $ 120.5 $ 130.3 $ 128.8 Capital expenditures: Access equipment (a) $ 34.2 $ 51.4 $ 52.5 Defense 29.1 31.9 22.2 Fire & emergency 12.8 7.2 7.2 Commercial (a) 12.0 10.9 10.0 Corporate (b) 12.0 11.8 35.4 Consolidated $ 100.1 $ 113.2 $ 127.3 _________________________ (a) Capital expenditures include both the purchase of property, plant and equipment and equipment held for rental. (b) Fiscal 2016 includes capital expenditures for an enterprise-wide information system and the corporate-led shared manufacturing facility in Mexico that supports multiple operating segments. September 30, 2018 2017 Identifiable assets: Access equipment: U.S. $ 2,207.2 $ 1,905.5 Europe 406.6 541.0 Rest of the world 215.2 246.1 Total access equipment 2,829.0 2,692.6 Defense: U.S. 824.2 775.1 Rest of the world 5.1 7.0 Total defense 829.3 782.1 Fire & emergency - U.S. 564.9 552.6 Commercial: U.S. 364.3 377.3 Rest of the world 45.4 42.3 Total commercial 409.7 419.6 Corporate: U.S. (a) 548.6 543.9 Rest of the world (b) 112.7 108.1 Total corporate 661.3 652.0 Consolidated $ 5,294.2 $ 5,098.9 _________________________ (a) Primarily includes cash and short-term investments. (b) Primarily includes the corporate-led shared manufacturing facility in Mexico that supports multiple operating segments. The following table presents net sales by geographic region based on product shipment destination (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Net sales: United States $ 6,177.8 $ 5,094.8 $ 4,756.6 Other North America 311.8 191.6 219.5 Europe, Africa and the Middle East 851.8 1,146.9 905.5 Rest of the world 364.1 396.3 397.6 Consolidated $ 7,705.5 $ 6,829.6 $ 6,279.2 |
Unaudited Quarterly Results
Unaudited Quarterly Results | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Results | Unaudited Quarterly Results (in millions, except per share amounts) Fiscal Year Ended September 30, 2018 4th Quarter (a) 3rd Quarter (b) 2nd Quarter (c) 1st Quarter (d) Net sales $ 2,057.0 $ 2,175.8 $ 1,886.4 $ 1,586.3 Gross income 375.2 402.9 335.4 242.2 Operating income 201.4 222.4 155.9 73.8 Net income 151.3 153.4 110.8 56.4 Earnings per share: Basic $ 2.08 $ 2.08 $ 1.49 $ 0.75 Diluted $ 2.05 $ 2.05 $ 1.47 $ 0.74 Common Stock per share dividends $ 0.24 $ 0.24 $ 0.24 $ 0.24 _________________________ (a) The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ( $2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ( $15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ( $4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ( $1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million . (b) The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ( $5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ( $7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million . (c) The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ( $5.8 million after-tax) in the access equipment and commercial segments. (d) The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ( $14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million . Fiscal Year Ended September 30, 2017 4th Quarter (a) 3rd Quarter (b) 2nd Quarter (c) 1st Quarter (d) Net sales $ 1,963.0 $ 2,036.9 $ 1,618.3 $ 1,211.4 Gross income 326.5 386.9 261.3 199.7 Operating income 134.5 211.9 80.4 36.2 Net income 93.5 128.6 44.3 19.2 Earnings per share: Basic $ 1.25 $ 1.72 $ 0.59 $ 0.26 Diluted $ 1.23 $ 1.69 $ 0.58 $ 0.26 Common Stock per share dividends $ 0.21 $ 0.21 $ 0.21 $ 0.21 _________________________ (a) The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ( $11.5 million after-tax) in the access equipment segment. (b) The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ( $11.5 million after-tax) in the access equipment segment. (c) The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ( $14.0 million after-tax) in the access equipment segment. (d) The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ( $0.4 million after-tax) in the access equipment segment. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Sep. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | OSHKOSH CORPORATION VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts Years Ended September 30, 2018 , 2017 and 2016 (In millions) Fiscal Year Balance at Beginning of Year Additions Charged to Expense Reductions* Balance at End of Year 2016 $ 20.3 $ 2.7 $ (1.8 ) $ 21.2 2017 $ 21.2 $ 0.8 $ (3.7 ) $ 18.3 2018 $ 18.3 $ (6.0 ) $ (2.4 ) $ 9.9 _________________________ * Represents amounts written off to the reserve, net of recoveries and foreign currency translation adjustments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation — The consolidated financial statements include the accounts of Oshkosh and all of its majority-owned or controlled subsidiaries and are prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP). All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition — Through September 30, 2018, the Company recognized revenue on equipment and parts sales when contract terms were met, collectability was reasonably assured and a product was shipped or risk of ownership had been transferred to and accepted by the customer. Revenue from service agreements was recognized as earned, when services had been rendered. Appropriate provisions were made for discounts, returns and sales allowances. Sales were recorded net of amounts invoiced for taxes imposed on the customer such as excise or value-added taxes. Sales to the U.S. government of non-commercial products manufactured to the government’s specifications are recognized under percentage-of-completion accounting using either the units-of-delivery method or cost-to-cost method to measure contract performance. Under the units-of-delivery method, the Company records sales as units are accepted by the U.S. Department of Defense (DoD), generally based on unit sales values stated in the respective contracts. Costs of sales are based on actual costs incurred to produce the units delivered under the contract. Under the cost-to-cost method, sales and estimated margins are recognized as contract costs are incurred. The measurement method selected is generally determined based on the nature of the contract. The Company includes amounts representing contract change orders, claims or other items in sales only when they can be reliably estimated and realization is probable. Bid and proposal costs are expensed as incurred. The Company has significant experience in contracting and producing vehicles for the defense industry, which has resulted in a history of making reasonable estimates of revenues and costs when measuring progress toward contract completion. The Company charges anticipated losses on contracts or programs in progress to earnings when identified. Approximately 21% , 16% and 19% of the Company’s revenues were recognized under the percentage-of-completion accounting method in fiscal 2018 , 2017 and 2016 , respectively. The Company invoices the government as the units are formally accepted. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. In fiscal 2018 , changes in estimates on contracts accounted for under the cost-to-cost method on prior year revenues increased defense segment operating income by $2.2 million , net income by $1.7 million and earnings per share by $0.02 . In fiscal 2017 , changes in estimates on contracts accounted for under the cost-to-cost method on prior year revenues increased defense segment operating income by $6.3 million , net income by $3.9 million and earnings per share by $0.05 . In fiscal 2016 , changes in estimates on contracts accounted for under the cost-to-cost method on prior year revenues did not have a material impact on the defense segment operating income, net income and earnings per share. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs — Revenue received from shipping and handling fees is reflected in net sales. Shipping and handling fee revenue was not significant for any period presented. Shipping and handling costs are included in cost of sales. |
Warranty | Warranty — Provisions for estimated warranty and other related costs are recorded in cost of sales at the time of sale and are periodically adjusted to reflect actual experience. The amount of warranty liability accrued reflects management’s best estimate of the expected future cost of honoring Company obligations under the warranty plans. Historically, the cost of fulfilling the Company’s warranty obligations has principally involved replacement parts, labor and sometimes travel for any field retrofit campaigns. The Company’s estimates are based on historical experience, the extent of pre-production testing, the number of units involved and the extent of features/components included in product models. Also, each quarter, the Company reviews actual warranty claims experience to determine if there are systemic defects that would require a field campaign. The Company recognizes the revenue from sales of extended warranties over the life of the contracts. |
Research and Development and Similar Costs | Research and Development and Similar Costs — Except for customer sponsored research and development costs incurred pursuant to contracts (generally with the DoD), research and development costs are expensed as incurred and included in cost of sales. Research and development costs charged to expense amounted to $99.3 million , $98.0 million and $103.1 million during fiscal 2018 , 2017 and 2016 , respectively. Customer sponsored research and development costs incurred pursuant to contracts are accounted for as contract costs. |
Advertising | Advertising — Advertising costs are included in selling, general and administrative expense and are expensed as incurred. These expenses totaled $21.1 million , $23.0 million and $21.6 million in fiscal 2018 , 2017 and 2016 , respectively. |
Stock-based Compensation | Stock-Based Compensation — The Company recognizes stock-based compensation using the fair value provisions prescribed by Accounting Standards Codification (ASC) Topic 718, Compensation — Stock Compensation . Accordingly, compensation costs for awards of stock-based compensation settled in shares are determined based on the fair value of the share-based instrument at the time of grant and are recognized as expense over the vesting period of the share-based instrument, net of estimated forfeitures. See Note 15 of the Notes to Consolidated Financial Statements for information regarding the Company’s stock-based incentive plans. |
Debt Financing Costs | Debt Financing Costs — Debt issuance costs on term debt are amortized using the interest method over the term of the debt. Deferred financing costs on lines of credit are amortized on a straight-line basis over the term of the related lines of credit. Amortization expense was $5.6 million (including $3.2 million of amortization related to early debt retirement), $3.0 million and $3.0 million in fiscal 2018 , 2017 and 2016 , respectively. |
Income Taxes | Income Taxes — Deferred income taxes are provided to recognize temporary differences between the financial reporting basis and the income tax basis of the Company’s assets and liabilities using currently enacted tax rates and laws. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The Company evaluates uncertain income tax positions in a two -step process. The first step is recognition, where the Company evaluates whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, zero tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from the Company’s estimates. In future periods, changes in facts and circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in results of operations and financial position in the period in which such changes occur. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — Based on Company estimates, the carrying amounts of cash equivalents, receivables, accounts payable and accrued liabilities approximated fair value as of September 30, 2018 and 2017 . See Notes 9, 14 and 17 of the Notes to Consolidated Financial Statements for additional fair value information. |
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents at September 30, 2018 consisted principally of bank deposits and money market instruments. |
Receivables | Receivables — Receivables consist of amounts billed and currently due from customers and unbilled costs and accrued profits related to revenues on long-term contracts with the U.S. government that have been recognized for accounting purposes but not yet billed to customers. The Company extends credit to customers in the normal course of business and maintains an allowance for estimated losses resulting from the inability or unwillingness of customers to make required payments. The accrual for estimated losses is based on the Company’s historical experience, existing economic conditions and any specific customer collection issues the Company has identified. Account balances are charged against the allowance when the Company determines it is probable the receivable will not be recovered. |
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, trade accounts receivable and guarantees of certain customers’ obligations under deferred payment contracts and lease purchase agreements. The Company maintains cash and cash equivalents, and other financial instruments, with various major financial institutions. The Company performs periodic evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any institution. Concentration of credit risk with respect to trade accounts and lease receivables is limited due to the large number of customers and their dispersion across many geographic areas. However, a significant amount of trade and lease receivables are with the U.S. government, with rental companies globally, with companies in the ready-mix concrete industry, with municipalities and with several large waste haulers in the United States. The Company continues to monitor credit risk associated with its trade receivables. |
Inventories | Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (LIFO) method for 82% of the Company’s inventories at both September 30, 2018 and 2017. For the remaining inventories, cost has been determined using the first-in, first-out (FIFO) method. |
Property, Plant and Equipment | Property, Plant and Equipment — Property, plant and equipment are recorded at cost. Depreciation expense is recognized over the estimated useful lives of the respective assets using accelerated and straight-line methods. The estimated useful lives range from ten to forty years for buildings and improvements, from four to twenty-five years for machinery and equipment and from three to ten years for software and related costs. The Company capitalizes interest on borrowings during the active construction period of major capital projects. All capitalized interest has been added to the cost of the underlying assets and is amortized over the useful lives of the assets. |
Goodwill | Goodwill — Goodwill reflects the cost of an acquisition in excess of the aggregate fair value assigned to identifiable net assets acquired. Goodwill is not amortized; however, it is assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. The Company performs its annual impairment test as of July 1 of each fiscal year. The Company evaluates the recoverability of goodwill by estimating the fair value of the businesses to which the goodwill relates. Estimated cash flows and related goodwill are grouped at the reporting unit level. A reporting unit is an operating segment or, under certain circumstances, a component of an operating segment. When the fair value of the reporting unit is less than the carrying value of the reporting unit, a further analysis is performed to measure and recognize the amount of the impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying amount of a reporting unit’s goodwill over the implied fair value of that goodwill. In evaluating the recoverability of goodwill, it is necessary to estimate the fair value of the reporting units. The Company evaluates the recoverability of goodwill utilizing the income approach and the market approach. The Company weighted the income approach more heavily ( 75% ) as the Company believes the income approach more accurately considers long-term fluctuations in the U.S. and European construction markets than the market approach. Under the income approach, the Company determines fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Estimated future cash flows are based on the Company’s internal projection models, industry projections and other assumptions deemed reasonable by management. Rates used to discount estimated cash flows correspond to the Company’s cost of capital, adjusted for risk where appropriate, and are dependent upon interest rates at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. Under the market approach, the Company derives the fair value of its reporting units based on revenue and earnings multiples of comparable publicly-traded companies. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — Property, plant and equipment and amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Non-amortizable trade names are assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. The Company performs its annual impairment test in the fourth quarter of its fiscal year. The Company evaluates the potential impairment by estimating the fair value of the non-amortizing intangible assets using the “relief from royalty” method. When the fair value of the non-amortizable trade name is less than the carrying value of the trade name, a further analysis is performed to measure and recognize the amount of the impairment loss, if any. Impairment losses, limited to the carrying value of the non-amortizable trade name, represent the excess of the carrying amount over the implied fair value of that non-amortizable trade name. |
Customer Advances | Customer Advances — Customer advances include amounts received in advance of the completion of fire & emergency and commercial vehicles. Most of these advances bear interest at fixed rates that approximate the prime rate at the time of the advance. Advances also include any performance-based payments received from the DoD in excess of the value of related inventory. |
Other Long-Term Liabilities | Other Long-Term Liabilities — Other long-term liabilities are comprised principally of the portions of the Company’s pension liability, other post-employment benefit liability, tax liability, accrued warranty and accrued product liability that are not expected to be settled in the subsequent twelve month period. |
Foreign Currency Translation | Foreign Currency Translation — All balance sheet accounts have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Income statement amounts have been translated using the average exchange rate during the period in which the transactions occurred. Resulting translation adjustments are included in “Accumulated other comprehensive income (loss).” Foreign currency transaction gains or losses are included in “Miscellaneous, net” in the Consolidated Statements of Income. The Company recorded a net foreign currency transaction loss of $3.8 million in fiscal 2018 , a net foreign currency transaction gain of $0.2 million in fiscal 2017 and a net foreign currency transaction loss of $1.2 million in fiscal 2016 . |
Derivative Financial Instruments | Derivative Financial Instruments — The Company recognizes all derivative financial instruments, such as foreign exchange contracts, in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Changes in the fair value of derivative financial instruments are either recognized periodically in income or in equity as a component of comprehensive income depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or cash flow hedge. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income along with the portions of the changes in the fair values of the hedged items that relate to the hedged risks. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net of deferred income taxes. Changes in fair value of derivatives not qualifying as hedges are reported in income. Cash flows from derivatives that are accounted for as cash flow or fair value hedges are included in the Consolidated Statements of Cash Flows in the same category as the item being hedged. |
Reclassification | Reclassifications — Certain reclassifications have been made to the fiscal 2017 and 2016 financial statements to conform with the fiscal 2018 presentation. “Derivative instruments,” which was previously reported as a separate line item within the Consolidated Statements of Shareholders’ Equity, is now reported in “Other.” “Payment of stock-based restricted shares,” which was previously included in “Other” in the Consolidated Statements of Shareholders’ Equity, is now reported in “Payment of stock-based restricted and performance shares.” “Proceeds from sale of property, plant and equipment,” which was previously included in “Other investing activities” in the Consolidated Statements of Cash Flows, is now reported as a separate line item. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — 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 Company will adopt the standard as of 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 expects to record a pre-tax reduction of retained earnings of approximately $80 million upon the initial adoption of the new revenue recognition standard, which represents the cumulative impact as of the date of adoption. Primary differences between the new and existing revenue standard include changing from a point-in-time method to an over time method for certain defense and commercial segment contracts, changes to how a contract is defined, the recognition of implied performance obligations and the deferral of margin on service-type warranties. The adoption of the new revenue recognition standard will also impact the Company’s processes and controls around revenue recognition. 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), and the FASB has since issued amendments to this standard, 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 adopt ASU 2016-16 as of October 1, 2018 and expects to record an increase to retained earnings of approximately $45 million upon adoption under the modified retrospective approach, primarily related to intra-entity transfers of intellectual property. 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 adopt ASU 2017-07 as of October 1, 2018 following the retrospective approach required by the standard. Adoption is expected to result in the reclassification of approximately $3 million of non-service costs from operating income to other income (expense). 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. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, thereby eliminating the resulting stranded tax effect. The Company will be required to adopt ASU 2018-02 as of October 1, 2019. Early adoption is permitted. The Company plans to early adopt ASU 2018-02 as of October 1, 2018 and expects to record an increase to retained earnings of approximately $9 million upon adoption to eliminate the tax effects stranded in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of receivables | Receivables consisted of the following (in millions): September 30, 2018 2017 U.S. government: Amounts billed $ 156.3 $ 137.8 Cost and profits not billed 235.4 137.9 391.7 275.7 Other trade receivables 1,089.4 985.4 Finance receivables 11.7 5.8 Notes receivable 1.4 34.2 Other receivables 48.6 46.3 1,542.8 1,347.4 Less allowance for doubtful accounts (9.9 ) (18.3 ) $ 1,532.9 $ 1,329.1 |
Classification of receivables in the Consolidated Balance Sheets | Classification of receivables in the Consolidated Balance Sheets consisted of the following (in millions): September 30, 2018 2017 Current receivables $ 1,521.6 $ 1,306.3 Long-term receivables 11.3 22.8 $ 1,532.9 $ 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): September 30, Finance Receivables Notes Receivable 2018 2017 2018 2017 Receivables on nonaccrual status $ 10.2 $ 3.7 $ — $ 21.3 Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 1.5 2.1 — — Allowance for doubtful accounts — — — — Receivables subject to specific reserves 10.2 3.7 1.4 34.2 Allowance for doubtful accounts (2.8 ) (1.5 ) — (10.0 ) |
Schedule of changes in the allowance for doubtful accounts | Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions): Fiscal Year Ended September 30, 2018 Finance Receivables Notes Receivable Trade and Other Receivables Total Allowance for doubtful accounts at beginning of year $ 1.5 $ 10.0 $ 6.8 $ 18.3 Provision for doubtful accounts, net of recoveries 1.3 (8.2 ) 0.9 (6.0 ) Charge-off of accounts — (1.7 ) (0.5 ) (2.2 ) Foreign currency translation — (0.1 ) (0.1 ) (0.2 ) Allowance for doubtful accounts at end of year $ 2.8 $ — $ 7.1 $ 9.9 Fiscal Year Ended September 30, 2017 Finance Receivables Notes Receivable Trade and Other Receivables Total Allowance for doubtful accounts at beginning of year $ 1.0 $ 13.0 $ 7.2 $ 21.2 Provision for doubtful accounts, net of recoveries 1.4 (1.3 ) 0.7 0.8 Charge-off of accounts (0.9 ) (2.2 ) (1.1 ) (4.2 ) Foreign currency translation — 0.5 — 0.5 Allowance for doubtful accounts at end of year $ 1.5 $ 10.0 $ 6.8 $ 18.3 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following (in millions): September 30, 2018 2017 Raw materials $ 639.2 $ 578.1 Partially finished products 354.3 336.6 Finished products 330.2 398.1 Inventories at FIFO cost 1,323.7 1,312.8 Less: Progress/performance-based payments on U.S. government contracts — (31.6 ) Excess of FIFO cost over LIFO cost (96.0 ) (82.8 ) $ 1,227.7 $ 1,198.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following (in millions): September 30, 2018 2017 Land and land improvements $ 54.2 $ 58.5 Buildings 297.6 298.5 Machinery and equipment 673.0 652.2 Software and related costs 164.4 149.6 Equipment on operating lease to others 22.1 30.0 Construction in progress 11.4 — 1,222.7 1,188.8 Less accumulated depreciation (741.6 ) (718.9 ) $ 481.1 $ 469.9 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents changes in goodwill during fiscal 2018 and 2017 (in millions): Access Equipment Fire & Emergency Commercial Total Net goodwill at September 30, 2016 $ 876.6 $ 106.1 $ 20.8 $ 1,003.5 Foreign currency translation 9.3 — 0.2 9.5 Net goodwill at September 30, 2017 885.9 106.1 21.0 1,013.0 Foreign currency translation (5.0 ) — (0.1 ) (5.1 ) Net goodwill at September 30, 2018 $ 880.9 $ 106.1 $ 20.9 $ 1,007.9 |
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): September 30, 2018 September 30, 2017 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access Equipment $ 1,813.0 $ (932.1 ) $ 880.9 $ 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 $ 2,117.9 $ (1,110.0 ) $ 1,007.9 $ 2,123.0 $ (1,110.0 ) $ 1,013.0 |
Schedule of purchased intangible assets | Details of the Company’s total purchased intangible assets were as follows (in millions): September 30, 2018 Weighted- Average Life Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (30.9 ) $ 24.5 Technology-related 11.9 104.7 (101.8 ) 2.9 Customer relationships 12.8 555.0 (502.3 ) 52.7 Other 16.2 16.4 (14.8 ) 1.6 14.7 731.5 (649.8 ) 81.7 Non-amortizable trade names 387.7 — 387.7 $ 1,119.2 $ (649.8 ) $ 469.4 September 30, 2017 Weighted- Average Life 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 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of other long-term assets | Other long-term assets consisted of the following (in millions): September 30, 2018 2017 Rabbi trust, less current portion $ 20.9 $ 20.6 Customer finance receivables 7.6 1.7 Customer notes receivable 0.1 25.7 Deferred income taxes, net 9.7 4.2 Investments in unconsolidated affiliates 12.9 15.5 Other 16.4 9.3 67.6 77.0 Less allowance for doubtful receivables (1.7 ) (8.6 ) $ 65.9 $ 68.4 |
Credit Agreements (Tables)
Credit Agreements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | The Company was obligated under the following debt instruments (in millions): September 30, 2018 Principal Debt Issuance Costs Debt, Net Senior Term Loan $ 275.0 $ (0.8 ) $ 274.2 5.375% Senior notes due March 2025 250.0 (2.4 ) 247.6 4.600% Senior notes due May 2028 300.0 (3.8 ) 296.2 $ 825.0 $ (7.0 ) $ 818.0 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) | 12 Months Ended |
Sep. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in warranty liability | Changes in the Company’s warranty liability and unearned extended warranty premiums were as follows (in millions): Fiscal Year Ended September 30, 2018 2017 Balance at beginning of year $ 98.8 $ 89.6 Warranty provisions 56.6 57.4 Settlements made (49.8 ) (51.8 ) Changes in liability for pre-existing warranties, net 2.4 2.5 Premiums received 12.7 12.4 Amortization of premiums received (14.2 ) (12.0 ) Foreign currency translation (0.5 ) 0.7 Balance at end of year $ 106.0 $ 98.8 |
Guarantee Arrangements (Tables)
Guarantee Arrangements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Guarantees [Abstract] | |
Schedule of provision for losses on customer guarantees | Changes in the Company’s credit guarantee liability were as follows (in millions): Fiscal Year Ended September 30, 2018 2017 Balance at beginning of year $ 9.1 $ 8.4 Provision for new credit guarantees 5.1 3.2 Changes for pre-existing guarantees, net (0.9 ) 0.5 Amortization of previous guarantees (2.7 ) (3.1 ) Foreign currency translation (0.2 ) 0.1 Balance at end of year $ 10.4 $ 9.1 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of all open derivative instruments | The fair values of all open derivative instruments were as follows (in millions): September 30, 2018 September 30, 2017 Other Current Assets Other Current Liabilities Other Current Assets Other Current Liabilities Cash flow hedges: Foreign exchange contracts $ 0.4 $ — $ — $ 0.4 Not designated as hedging instruments: Foreign exchange contracts 0.4 0.2 0.5 0.8 Interest rate contracts — — 0.3 0.7 $ 0.8 $ 0.2 $ 0.8 $ 1.9 |
Schedule of pre-tax effects of derivative instruments | The pre-tax effects of derivative instruments consisted of the following (in millions): Classification of Gains (Losses) Fiscal Year Ended September 30, 2018 2017 2016 Cash flow hedges: Foreign exchange contracts Net sales $ — $ (0.1 ) $ — Foreign exchange contracts Cost of sales (0.5 ) (0.1 ) — Foreign exchange contracts Miscellaneous, net — (0.1 ) (0.2 ) Not designated as hedging instruments: Foreign exchange contracts Miscellaneous, net (2.4 ) 3.5 (7.6 ) Interest rate contracts Miscellaneous, net (0.7 ) 0.2 (0.2 ) $ (3.6 ) $ 3.4 $ (8.0 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Sep. 30, 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 September 30, 2018 Assets: SERP plan assets (a) $ 22.1 $ — $ — $ 22.1 Foreign currency exchange derivatives (b) — 0.8 — 0.8 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.2 $ — $ 0.2 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 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 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 (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of equity-based compensation plans | Information related to the Company’s equity-based compensation plans in effect as of September 30, 2018 was as follows: Plan Category Number of Securities to be Issued Upon Exercise of Outstanding Options or Vesting of Share Awards Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Equity compensation plans approved by security holders 1,915,157 $ 57.03 6,004,057 Equity compensation plans not approved by security holders — — — 1,915,157 $ 57.03 6,004,057 |
Schedule of stock based compensation expense | Total stock-based compensation expense (income) was as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Stock options $ 6.6 $ 7.5 $ 6.7 Stock awards (shares and units) 13.7 11.6 9.7 Performance share awards 6.4 3.3 2.3 Cash-settled stock appreciation rights (0.2 ) 3.3 3.4 Cash-settled restricted stock unit awards 0.4 0.5 0.9 Total stock-based compensation cost 26.9 26.2 23.0 Income tax benefit recognized for stock-based compensation (5.8 ) (9.6 ) (8.4 ) $ 21.1 $ 16.6 $ 14.6 |
Schedule of stock option activity | Stock Options — A summary of the Company’s stock option activity is as follows: Fiscal Year Ended September 30, 2018 2017 2016 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Outstanding, beginning of year 1,531,691 $ 45.14 2,104,929 $ 39.55 2,369,872 $ 36.57 Granted 261,900 86.59 393,975 66.89 567,550 41.52 Forfeited (43,270 ) 66.49 (11,145 ) 52.54 (70,177 ) 44.31 Expired (1 ) 41.52 — — (43,392 ) 49.19 Exercised (481,336 ) 34.41 (956,068 ) 41.70 (718,924 ) 30.25 Outstanding, end of year 1,268,984 57.03 1,531,691 45.14 2,104,929 39.55 Exercisable, end of year 650,143 45.92 819,906 36.47 1,473,761 38.28 |
Schedule of outstanding stock options | Stock options outstanding and exercisable as of September 30, 2018 were as follows (in millions, except share and per share amounts): Outstanding Exercisable Exercise Prices Options Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Aggregate Intrinsic Value Options Weighted Average Weighted Average Aggregate $ 7.95 - $ 28.96 93,784 0.9 $ 28.38 $ 4.0 93,784 0.9 $ 28.38 $ 4.0 $ 40.67 - $ 50.27 596,394 3.5 43.77 16.4 450,937 3.3 44.50 12.1 $ 66.89 - $ 86.59 578,806 6.9 75.34 1.4 105,422 5.3 67.61 0.4 1,268,984 4.8 57.03 $ 21.8 650,143 3.3 45.92 $ 16.5 |
Schedule of weighted-average assumptions used to value options | The Company uses the Black-Scholes valuation model to value stock options utilizing the following weighted-average assumptions: Fiscal Year Ended September 30, Options Granted During 2018 2017 2016 Assumptions: Expected term (in years) 5.4 5.1 5.1 Expected volatility 34.50 % 37.30 % 40.40 % Risk-free interest rate 2.09 % 1.79 % 1.73 % Expected dividend yield 1.15 % 1.52 % 1.65 % |
Schedule of nonvested stock activity | Stock Awards — A summary of the Company’s stock award activity is as follows: Fiscal Year Ended September 30, 2018 2017 2016 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested, beginning of year 352,159 $ 55.22 313,806 $ 42.93 273,992 $ 46.84 Granted 163,225 86.07 214,325 66.84 323,800 40.33 Forfeited (26,915 ) 65.66 (16,381 ) 51.67 (53,928 ) 45.71 Vested (155,996 ) 56.02 (159,591 ) 47.01 (230,058 ) 43.28 Nonvested, end of year 332,473 69.15 352,159 55.22 313,806 42.93 |
Schedule of Novested Performance-based Units Activity | Performance Share Awards — A summary of the Company’s performance share awards activity is as follows: Fiscal Year Ended September 30, 2018 2017 2016 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested, beginning of year 116,600 $ 60.71 103,550 $ 49.83 129,475 $ 54.94 Granted 57,625 97.79 49,800 79.01 78,175 47.07 Forfeited (13,977 ) 71.75 — — (31,326 ) 52.90 Performance adjustments 57,914 47.50 36,750 54.84 (27,874 ) 54.71 Vested (119,787 ) 47.55 (73,500 ) 54.84 (44,900 ) 54.59 Nonvested, end of year 98,375 89.11 116,600 60.71 103,550 49.83 |
Schedule of weighted-average assumptions to estimate grant date fair values | The grant date fair values of the TSR performance share awards were estimated using a Monte Carlo simulation model utilizing the following weighted-average assumptions: Fiscal Year Ended September 30, Total Shareholder Return Performance Shares Granted During 2018 2017 2016 Assumptions: Expected term (in years) 2.86 2.86 2.88 Expected volatility 32.27 % 34.09 % 33.28 % Risk-free interest rate 1.84 % 1.32 % 1.20 % |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Pre-tax restructuring charges were as follows (in millions): September 30, 2018 Cost of Sales Operating Expenses Total Access equipment $ 4.7 $ — $ 4.7 Commercial 1.9 3.5 5.4 Total $ 6.6 $ 3.5 $ 10.1 September 30, 2017 Cost of Sales Operating Expenses Total Access equipment $ 35.8 $ — $ 35.8 September 30, 2016 Cost of Sales Operating Expenses Total Access equipment $ 0.9 $ 26.9 $ 27.8 |
Schedule of restructuring reserve by type of cost | Changes in the Company’s restructuring reserves for fiscal 2018 , 2017 and 2016 were as follows (in millions): Employee Severance and Termination Benefits Property, Plant and Equipment Impairment Other Costs Total Balance at September 30, 2015 $ — $ — $ — $ — Restructuring provision 0.9 26.9 — 27.8 Utilized - noncash — (26.9 ) — (26.9 ) Balance at September 30, 2016 0.9 — — 0.9 Restructuring provision 27.3 4.3 4.2 35.8 Utilized - cash (9.7 ) — (3.3 ) (13.0 ) Utilized - noncash — (4.3 ) — (4.3 ) Foreign currency translation 1.3 — 0.1 1.4 Balance at September 30, 2017 19.8 — 1.0 20.8 Restructuring provision 3.5 0.4 6.2 10.1 Utilized - cash (21.3 ) — (5.8 ) (27.1 ) Utilized - noncash — (0.4 ) — (0.4 ) Foreign currency translation 0.1 — — 0.1 Balance at September 30, 2018 $ 2.1 $ — $ 1.4 $ 3.5 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of changes in the benefit obligations and plan assets, the funded status of the plans and the amounts recognized in the balance sheet | Changes in benefit obligations and plan assets, as well as the funded status of the Company’s defined benefit pension plans and postretirement benefit plans as of and for the fiscal years ended September 30, 2018 and 2017 , were as follows (in millions): Postretirement Pension Benefits Health and Other 2018 2017 2018 2017 Accumulated benefit obligation at September 30 $ 452.6 $ 468.9 $ 46.6 $ 50.0 Change in projected benefit obligation Benefit obligation at October 1 $ 473.7 $ 482.3 $ 50.0 $ 47.2 Service cost 10.5 10.7 3.7 2.5 Interest cost 17.9 17.8 1.8 1.6 Actuarial loss (gain) (32.3 ) (12.1 ) (6.5 ) 0.5 Participant contributions 0.1 0.2 — — Plan amendments — — (0.6 ) — Curtailments — 0.5 — — Benefits paid (13.4 ) (26.6 ) (1.8 ) (1.8 ) Currency translation adjustments (0.7 ) 0.9 — — Benefit obligation at September 30 $ 455.8 $ 473.7 $ 46.6 $ 50.0 Change in plan assets Fair value of plan assets at October 1 $ 367.8 $ 334.0 $ — $ — Actual return on plan assets 25.0 43.5 — — Company contributions 8.8 17.7 1.8 1.8 Participant contributions 0.1 0.2 — — Expenses paid (3.2 ) (1.9 ) — — Benefits paid (13.4 ) (26.6 ) (1.8 ) (1.8 ) Currency translation adjustments (0.9 ) 0.9 — — Fair value of plan assets at September 30 $ 384.2 $ 367.8 $ — $ — Funded status of plan - underfunded at September 30 $ (71.6 ) $ (105.9 ) $ (46.6 ) $ (50.0 ) Recognized in consolidated balance sheet at September 30 Prepaid benefit (long-term asset) $ 4.3 $ — $ — $ — Accrued benefit liability (current liability) (1.9 ) (1.9 ) (1.2 ) (1.1 ) Accrued benefit liability (long-term liability) (74.0 ) (104.0 ) (45.4 ) (48.9 ) $ (71.6 ) $ (105.9 ) $ (46.6 ) $ (50.0 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Recognized in accumulated other comprehensive income (loss) as of September 30 (net of taxes) Net actuarial (loss) gain $ (12.6 ) $ (41.7 ) $ 0.4 $ (4.6 ) Prior service (cost) benefit (6.5 ) (7.9 ) 7.8 8.0 $ (19.1 ) $ (49.6 ) $ 8.2 $ 3.4 |
Schedule of Weighted-average assumptions | Weighted-average assumptions as of September 30 Discount rate 4.18 % 3.85 % 4.20 % 3.71 % Expected return on plan assets 5.50 % 5.93 % n/a n/a |
Schedule of Benefit Obligations in Excess of Plan Fair Value | Pension benefit plans with accumulated benefit obligations in excess of plan assets consisted of the following (in millions): September 30, 2018 2017 Projected benefit obligation $ 430.3 $ 473.7 Accumulated benefit obligation 425.5 468.9 Fair value of plan assets 354.4 367.8 |
Schedule of net periodic benefit cost | The components of net periodic benefit cost for fiscal years ended September 30 were as follows (in millions): Postretirement Pension Benefits Health and Other 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 10.5 $ 10.7 $ 8.8 $ 3.7 $ 2.5 $ 2.0 Interest cost 17.9 17.8 18.3 1.8 1.6 1.5 Expected return on plan assets (21.4 ) (17.9 ) (17.4 ) — — — Amortization of prior service cost (benefit) 1.8 1.8 1.8 (0.9 ) (0.9 ) (0.9 ) Curtailment/settlement — 0.5 — — — — Amortization of net actuarial loss (gain) 1.9 4.5 2.3 0.1 0.2 (0.1 ) Expenses paid 3.2 1.9 2.2 — — — Net periodic benefit cost $ 13.9 $ 19.3 $ 16.0 $ 4.7 $ 3.4 $ 2.5 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss (gain) $ (35.9 ) $ (37.8 ) $ 36.6 $ (6.5 ) $ 0.5 $ 8.3 Prior service cost (benefit) — — 1.1 (0.6 ) — — Amortization of prior service benefit (cost) (1.8 ) (1.8 ) (1.8 ) 0.9 0.9 0.9 Amortization of net actuarial (loss) gain (1.9 ) (4.5 ) (2.3 ) (0.1 ) (0.2 ) 0.1 $ (39.6 ) $ (44.1 ) $ 33.6 $ (6.3 ) $ 1.2 $ 9.3 Weighted-average assumptions Discount rate 3.85 % 3.70 % 4.45 % 3.71 % 3.47 % 4.08 % Expected return on plan assets 5.93 % 5.78 % 6.03 % n/a n/a n/a |
Schedule of pension plan asset and target allocation | The weighted-average of the Company’s pension plan asset allocations and target allocations at September 30, 2018 by asset category, were as follows: Target % Actual Asset Category Fixed income 40% - 50% 44 % Large-cap equity 20% - 30% 26 % Mid-cap equity 5% - 15% 11 % Small-cap equity 5% - 10% 9 % Global equity 5% - 10% 7 % Other 0% - 10% 3 % 100 % |
Schedule of fair value of plan assets by major category and level within fair value hierarchy | The fair value of plan assets by major category and level within the fair value hierarchy was as follows (in millions): Quoted Prices for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total September 30, 2018 Common stocks U.S. companies (a) $ 77.0 $ 6.6 $ — $ 83.6 International companies (b) — 13.1 — 13.1 Mutual funds (a) 76.6 — — 76.6 Government and agency bonds (c) — 6.1 — 6.1 Corporate bonds and notes (d) — 6.9 — 6.9 Money market funds (e) 7.9 — — 7.9 $ 161.5 $ 32.7 $ — 194.2 Investments measured at net asset value (NAV) (f) 190.0 $ 384.2 September 30, 2017 Common stocks U.S. companies (a) $ 70.8 $ 5.7 $ — $ 76.5 International companies (b) — 11.4 — 11.4 Mutual funds (a) 71.3 — — 71.3 Government and agency bonds (c) — 5.4 — 5.4 Corporate bonds and notes (d) — 4.5 — 4.5 Money market funds (e) 9.1 — — 9.1 $ 151.2 $ 27.0 $ — 178.2 Investments measured at net asset value (NAV) (f) 189.6 $ 367.8 _________________________ (a) Primarily valued using a market approach based on the quoted market prices of identical instruments that are actively traded on public exchanges. (b) Valuation model looks at underlying security “best” price, exchange rate for underlying security’s currency against the U.S. dollar and ratio of underlying security to American depository receipt. (c) These investments consist of debt securities issued by the U.S. Treasury, U.S. government agencies and U.S. government-sponsored enterprises and have a variety of structures, coupon rates and maturities. These investments are considered to have low default risk as they are guaranteed by the U.S. government. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (d) These investments consist of debt obligations issued by a variety of private and public corporations. These are investment grade securities which historically have provided a steady stream of income. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (e) These investments largely consist of short-term investment funds and are valued using a market approach based on the quoted market prices of identical instruments. (f) These investments consist of privately placed funds that are valued based on NAV. NAV of the funds is based on the fair value of each funds underlying investments. In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | The following table sets forth additional disclosures for the fair value measurement of the fair value of pension plans assets that calculate fair value based on NAV per share practical expedient as of September 30, 2018 (in millions): Fair Value Unfunded Commitments Redemption Frequency (if Currently Eligible) Redemption Notice Period (1) Common collective trust $ 190.0 $ — N/A 15 days _________________________ (1) Represents the maximum redemption period. A portion of the investment does not have any redemption period restrictions. The following table sets forth additional disclosures for the fair value measurement of the fair value of pension plans assets that calculate fair value based on NAV per share practical expedient as of September 30, 2017 (in millions): Fair Value Unfunded Commitments Redemption Frequency (if Currently Eligible) Redemption Notice Period (1) Common collective trust $ 189.6 $ — N/A 15 days _________________________ (1) Represents the maximum redemption period. A portion of the investment does not have any redemption period restrictions. |
Schedule of estimated future benefit payments | The Company’s estimated future benefit payments under Company sponsored plans were as follows (in millions): Postretirement Health and Other Fiscal Year Ending Pension Benefits September 30, Qualified Non-Qualified 2019 $ 13.0 $ 1.9 $ 1.2 2020 14.5 1.9 1.7 2021 16.0 1.8 2.2 2022 17.4 1.8 2.8 2023 18.8 1.9 3.2 2024-2028 113.3 9.8 21.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of pre-tax income (loss) from continuing operations | Pre-tax income was taxed in the following jurisdictions (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Domestic $ 514.9 $ 392.7 $ 277.1 Foreign 79.7 18.6 29.9 $ 594.6 $ 411.3 $ 307.0 |
Schedule of components of provision for (benefit from) income taxes | Significant components of the provision for income taxes were as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Allocated to Income Before Earnings of Unconsolidated Affiliates Current: Federal $ 92.0 $ 104.9 $ 103.6 Foreign 22.0 13.5 3.2 State 12.9 1.0 2.6 Total current 126.9 119.4 109.4 Deferred: Federal 5.4 6.6 (18.5 ) Foreign (5.5 ) 4.2 2.0 State (3.0 ) (3.0 ) (0.5 ) Total deferred (3.1 ) 7.8 (17.0 ) $ 123.8 $ 127.2 $ 92.4 Allocated to Other Comprehensive Income (Loss) Deferred federal, state and foreign $ 11.0 $ 15.1 $ (14.2 ) |
Schedule of reconciliation of income tax computed at U.S. federal statutory tax rates to income tax expense | The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense was: Fiscal Year Ended September 30, 2018 2017 2016 Effective Rate Reconciliation U.S. federal tax rate 24.5 % 35.0 % 35.0 % State income taxes, net 2.1 1.3 1.3 Foreign taxes 1.0 0.6 (1.7 ) Valuation allowance (1.4 ) 0.5 (0.6 ) Domestic tax credits (2.1 ) (4.2 ) (1.5 ) Manufacturing deduction (1.6 ) (2.8 ) (3.0 ) Share-based compensation (0.7 ) (1.3 ) — Remeasurement of deferred taxes - U.S. Tax Reform (5.1 ) — — Mandatory repatriation tax - U.S. Tax Reform 3.3 — — Other, net 0.8 1.8 0.6 20.8 % 30.9 % 30.1 % |
Components of deferred income tax assets and liabilities | Deferred income tax assets and liabilities were comprised of the following (in millions): September 30, 2018 2017 Deferred tax assets: Other long-term liabilities $ 20.5 $ 81.0 Losses and credits 33.5 31.2 Accrued warranty 22.1 31.8 Other current liabilities 17.0 24.5 Payroll-related obligations 22.7 34.9 Receivables 1.7 7.0 Other 6.2 12.4 Gross deferred tax assets 123.7 222.8 Less valuation allowance (2.1 ) (10.4 ) Deferred tax assets, net 121.6 212.4 Deferred tax liabilities: Intangible assets 89.1 154.8 Property, plant and equipment 41.4 52.4 Inventories 12.5 17.6 Other 2.4 3.6 Deferred tax liabilities 145.4 228.4 Deferred tax liabilities, net of deferred tax assets $ (23.8 ) $ (16.0 ) |
Schedule of classification of deferred tax liability in consolidated balance sheets | The net deferred tax liability is classified in the Consolidated Balance Sheets as follows (in millions): September 30, 2018 2017 Long-term net deferred tax asset $ 9.7 $ 4.2 Long-term net deferred tax liability (33.5 ) (20.2 ) Net deferred tax liability $ (23.8 ) $ (16.0 ) |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of gross unrecognized tax benefits, excluding interest and penalties, was as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Balance at beginning of year $ 37.2 $ 37.4 $ 27.0 Additions for tax positions related to current year 4.2 1.2 7.6 Additions for tax positions related to prior years 5.4 6.0 8.4 Reductions for tax positions related to prior years (7.1 ) (5.5 ) (1.1 ) Settlements (4.1 ) — (3.0 ) Lapse of statutes of limitations (1.9 ) (1.9 ) (1.5 ) Balance at end of year $ 33.7 $ 37.2 $ 37.4 |
Schedule of tax years open for examination under applicable statutes | As of September 30, 2018 , tax years open for examination under applicable statutes were as follows: Tax Jurisdiction Open Tax Years Australia 2013 - 2018 Belgium 2016 - 2018 Brazil 2013 - 2018 Canada 2014 - 2018 China 2013 - 2018 Romania 2012 - 2018 Netherlands 2013 - 2018 United Kingdom 2017 - 2018 United States (federal) 2015 - 2018 United States (state and local) 2009 - 2018 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) by component were as follows (in millions): Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments, Net of Tax Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2015 $ (46.4 ) $ (98.1 ) $ 0.1 $ (144.4 ) Other comprehensive income (loss) before reclassifications (29.5 ) (3.0 ) (0.2 ) (32.7 ) Amounts reclassified from accumulated other comprehensive income (loss) 2.0 — 0.1 2.1 Net current period other comprehensive income (loss) (27.5 ) (3.0 ) (0.1 ) (30.6 ) Balance at September 30, 2016 (73.9 ) (101.1 ) — (175.0 ) Other comprehensive income (loss) before reclassifications 23.7 22.5 (0.2 ) 46.0 Amounts reclassified from accumulated other comprehensive income (loss) 4.0 — — 4.0 Net current period other comprehensive income (loss) 27.7 22.5 (0.2 ) 50.0 Balance at September 30, 2017 (46.2 ) (78.6 ) (0.2 ) (125.0 ) Other comprehensive income (loss) before reclassifications 33.1 (17.6 ) 0.6 16.1 Amounts reclassified from accumulated other comprehensive income (loss) 2.2 — (0.1 ) 2.1 Net current period other comprehensive income (loss) 35.3 (17.6 ) 0.5 18.2 Balance at September 30, 2018 $ (10.9 ) $ (96.2 ) $ 0.3 $ (106.8 ) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income (loss) included in the computation of net periodic pension and postretirement benefit cost (See Note 17 of the Notes to Consolidated Financial Statements for additional details regarding employee benefit plans) were as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 Amortization of employee pension and postretirement benefits items Prior service costs $ 0.9 $ 0.9 $ 0.9 Actuarial losses 2.0 4.7 2.2 Curtailment/settlement — 0.5 — Total before tax 2.9 6.1 3.1 Tax benefit (0.7 ) (2.1 ) (1.1 ) Net of tax $ 2.2 $ 4.0 $ 2.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of income | The reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding was as follows: Fiscal Year Ended September 30, 2018 2017 2016 Basic weighted-average common shares outstanding 74,001,582 74,674,115 73,570,020 Dilutive stock options and other equity-based compensation awards 980,417 1,115,930 862,898 Diluted weighted-average common shares outstanding 74,981,999 75,790,045 74,432,918 |
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: Fiscal Year Ended September 30, 2018 2017 2016 Stock options 253,238 381,350 224,200 |
Contingencies, Significant Es_2
Contingencies, Significant Estimates and Concentrations (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of significant portion of revenues from the Department of Defense | The Company derived a significant portion of its revenue from the DoD, as follows (in millions): Fiscal Year Ended September 30, 2018 2017 2016 DoD $ 1,648.4 $ 1,314.6 $ 1,205.0 Foreign military sales 28.0 32.1 1.8 Total DoD sales $ 1,676.4 $ 1,346.7 $ 1,206.8 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Sep. 30, 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): Fiscal Year Ended September 30, 2018 2017 2016 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 2,017.2 $ — $ 2,017.2 $ 1,629.6 $ — $ 1,629.6 $ 1,539.5 $ — $ 1,539.5 Telehandlers 948.9 — 948.9 661.8 — 661.8 773.9 — 773.9 Other 810.7 — 810.7 735.0 — 735.0 699.0 — 699.0 Total access equipment 3,776.8 — 3,776.8 3,026.4 — 3,026.4 3,012.4 — 3,012.4 Defense 1,827.3 1.6 1,828.9 1,818.6 1.5 1,820.1 1,349.3 1.8 1,351.1 Fire & emergency 1,053.6 16.1 1,069.7 1,015.4 15.5 1,030.9 941.5 11.8 953.3 Commercial Concrete placement 491.8 — 491.8 474.0 — 474.0 463.6 — 463.6 Refuse collection 438.3 — 438.3 391.1 — 391.1 409.1 — 409.1 Other 116.7 7.9 124.6 99.3 5.9 105.2 103.3 3.2 106.5 Total commercial 1,046.8 7.9 1,054.7 964.4 5.9 970.3 976.0 3.2 979.2 Corporate and intersegment eliminations 1.0 (25.6 ) (24.6 ) 4.8 (22.9 ) (18.1 ) — (16.8 ) (16.8 ) Consolidated $ 7,705.5 $ — $ 7,705.5 $ 6,829.6 $ — $ 6,829.6 $ 6,279.2 $ — $ 6,279.2 |
Schedule of income (loss) from continuing operations by product lines and reportable segments | Fiscal Year Ended September 30, 2018 2017 2016 Operating income (loss): Access equipment (a) $ 387.8 $ 259.1 $ 263.4 Defense (b) 222.9 207.9 122.5 Fire & emergency 137.2 104.2 67.0 Commercial (c) 67.5 43.8 67.6 Corporate (161.9 ) (152.0 ) (156.5 ) Consolidated 653.5 463.0 364.0 Interest expense, net of interest income (d) (55.6 ) (54.9 ) (58.3 ) Miscellaneous other (expense) income (3.3 ) 3.2 1.3 Income before income taxes and earnings of unconsolidated affiliates $ 594.6 $ 411.3 $ 307.0 _________________________ (a) Fiscal 2018 results include $4.7 million of restructuring costs and $24.8 million of operating expenses related to restructuring plans. Fiscal 2017 results include $35.8 million of restructuring costs and $9.4 million of operating expenses related to restructuring plans. Fiscal 2016 results include a $26.9 million asset impairment charge and a $0.9 million workforce reduction charge. (b) Fiscal 2018 results include a $19.0 million gain for a litigation settlement. See Note 21 of the Notes to Consolidated Financial Statements for additional details regarding the settlement. (c) Fiscal 2018 results include $5.4 million of restructuring costs, a business interruption insurance gain of $6.6 million and a loss on the sale of a small product line of $1.4 million . (d) Fiscal 2018 results include $9.9 million in debt extinguishment costs. |
Schedule of Depreciation Amortization Capital Expenditure by Segment | Fiscal Year Ended September 30, 2018 2017 2016 Depreciation and amortization: Access equipment $ 61.1 $ 72.1 $ 77.0 Defense 15.2 14.5 11.1 Fire & emergency 9.5 9.4 9.7 Commercial 12.9 12.7 12.0 Corporate 21.8 21.6 19.0 Consolidated $ 120.5 $ 130.3 $ 128.8 Capital expenditures: Access equipment (a) $ 34.2 $ 51.4 $ 52.5 Defense 29.1 31.9 22.2 Fire & emergency 12.8 7.2 7.2 Commercial (a) 12.0 10.9 10.0 Corporate (b) 12.0 11.8 35.4 Consolidated $ 100.1 $ 113.2 $ 127.3 _________________________ (a) Capital expenditures include both the purchase of property, plant and equipment and equipment held for rental. (b) Fiscal 2016 includes capital expenditures for an enterprise-wide information system and the corporate-led shared manufacturing facility in Mexico that supports multiple operating segments. |
Schedule of identifiable assets by business segments and by geographical segments | September 30, 2018 2017 Identifiable assets: Access equipment: U.S. $ 2,207.2 $ 1,905.5 Europe 406.6 541.0 Rest of the world 215.2 246.1 Total access equipment 2,829.0 2,692.6 Defense: U.S. 824.2 775.1 Rest of the world 5.1 7.0 Total defense 829.3 782.1 Fire & emergency - U.S. 564.9 552.6 Commercial: U.S. 364.3 377.3 Rest of the world 45.4 42.3 Total commercial 409.7 419.6 Corporate: U.S. (a) 548.6 543.9 Rest of the world (b) 112.7 108.1 Total corporate 661.3 652.0 Consolidated $ 5,294.2 $ 5,098.9 _________________________ (a) Primarily includes cash and short-term investments. (b) Primarily includes the corporate-led shared manufacturing facility in Mexico 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): Fiscal Year Ended September 30, 2018 2017 2016 Net sales: United States $ 6,177.8 $ 5,094.8 $ 4,756.6 Other North America 311.8 191.6 219.5 Europe, Africa and the Middle East 851.8 1,146.9 905.5 Rest of the world 364.1 396.3 397.6 Consolidated $ 7,705.5 $ 6,829.6 $ 6,279.2 |
Unaudited Quarterly Results (Ta
Unaudited Quarterly Results (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly results | Unaudited Quarterly Results (in millions, except per share amounts) Fiscal Year Ended September 30, 2018 4th Quarter (a) 3rd Quarter (b) 2nd Quarter (c) 1st Quarter (d) Net sales $ 2,057.0 $ 2,175.8 $ 1,886.4 $ 1,586.3 Gross income 375.2 402.9 335.4 242.2 Operating income 201.4 222.4 155.9 73.8 Net income 151.3 153.4 110.8 56.4 Earnings per share: Basic $ 2.08 $ 2.08 $ 1.49 $ 0.75 Diluted $ 2.05 $ 2.05 $ 1.47 $ 0.74 Common Stock per share dividends $ 0.24 $ 0.24 $ 0.24 $ 0.24 _________________________ (a) The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ( $2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ( $15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ( $4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ( $1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million . (b) The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ( $5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ( $7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million . (c) The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ( $5.8 million after-tax) in the access equipment and commercial segments. (d) The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ( $14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million . Fiscal Year Ended September 30, 2017 4th Quarter (a) 3rd Quarter (b) 2nd Quarter (c) 1st Quarter (d) Net sales $ 1,963.0 $ 2,036.9 $ 1,618.3 $ 1,211.4 Gross income 326.5 386.9 261.3 199.7 Operating income 134.5 211.9 80.4 36.2 Net income 93.5 128.6 44.3 19.2 Earnings per share: Basic $ 1.25 $ 1.72 $ 0.59 $ 0.26 Diluted $ 1.23 $ 1.69 $ 0.58 $ 0.26 Common Stock per share dividends $ 0.21 $ 0.21 $ 0.21 $ 0.21 _________________________ (a) The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ( $11.5 million after-tax) in the access equipment segment. (b) The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ( $11.5 million after-tax) in the access equipment segment. (c) The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ( $14.0 million after-tax) in the access equipment segment. (d) The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ( $0.4 million after-tax) in the access equipment segment. |
Nature of Operations (Details)
Nature of Operations (Details) - 12 months ended Sep. 30, 2018 | Total | segment |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments of entity (in segments) | 4 | 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Sep. 30, 2018USD ($)Step$ / shares | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | |
Revenue Recognition [Abstract] | |||
Percent of Companies Current Year Revenues Recognized Using Percentage of Completion Method Accounting | 21.00% | 16.00% | 19.00% |
Research and Development and Similar Costs | |||
Research and development costs charged to expense | $ 99,300,000 | $ 98,000,000 | $ 103,100,000 |
Advertising | |||
Advertising cost | 21,100,000 | 23,000,000 | 21,600,000 |
Debt Disclosure [Abstract] | |||
Amortization of Debt Issuance Costs | 5,600,000 | $ 3,000,000 | 3,000,000 |
Write off of Deferred Debt Issuance Cost | $ 3,200,000 | ||
Income Taxes | |||
Number of steps to evaluate uncertain income tax positions (in steps) | Step | 2 | ||
Minimum percentage likelihood of tax benefit being realized (as a percent) | 50.00% | ||
Maximum percentage likelihood of tax benefit being realized (as a percent) | 50.00% | ||
Amount of tax benefit realized for tax positions currently estimated to have a less than likelihood percentage of being sustained | $ 0 | ||
Cash and Cash Equivalents | |||
Maximum remaining maturity period at time of purchase of liquid investments classified as cash equivalents (in months) | 3 months | ||
Inventories | |||
Inventory valued using LIFO method (as a percent) | 82.00% | 82.00% | |
Defense | |||
Change in Accounting Estimate [Line Items] | |||
Increase in operating income due to margin rate adjustments | $ 2,200,000 | $ 6,300,000 | 0 |
Increase in net income due to margin rate adjustments | $ 1,700,000 | $ 3,900,000 | $ 0 |
Increase in earnings per share due to margin rate adjustments (in dollars per share) | $ / shares | $ 0.02 | $ 0.05 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill | |||
Percentage of importance to income approach used for evaluation of recoverability of goodwill (as a percent) | 75.00% | ||
Foreign Currency Translation | |||
Net foreign currency transaction gains (losses) related to continuing operations | $ (3.8) | $ 0.2 | $ (1.2) |
Minimum | Buildings and improvements | |||
Property Plant and Equipment | |||
Useful life | 10 years | ||
Minimum | Machinery and equipment | |||
Property Plant and Equipment | |||
Useful life | 4 years | ||
Minimum | Software and Software Development Costs | |||
Property Plant and Equipment | |||
Useful life | 3 years | ||
Maximum | Buildings and improvements | |||
Property Plant and Equipment | |||
Useful life | 40 years | ||
Maximum | Machinery and equipment | |||
Property Plant and Equipment | |||
Useful life | 25 years | ||
Maximum | Software and Software Development Costs | |||
Property Plant and Equipment | |||
Useful life | 10 years | ||
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (80) | ||
Accounting Standards Update 2016-16 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 45 | ||
Accounting Standards Update 2017-07 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 3 | ||
Accounting Standards Update 2018-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 9 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
U.S. government: | |||
Amounts billed | $ 156.3 | $ 137.8 | |
Cost and profits not billed | 235.4 | 137.9 | |
Contract receivables | 391.7 | 275.7 | |
Other trade receivables | 1,089.4 | 985.4 | |
Finance receivables | 11.7 | 5.8 | |
Notes receivable | 1.4 | 34.2 | |
Other receivables | 48.6 | 46.3 | |
Receivables, gross | 1,542.8 | 1,347.4 | |
Less allowance for doubtful accounts | (9.9) | (18.3) | $ (21.2) |
Receivables, net | 1,532.9 | 1,329.1 | |
Classification of receivables | |||
Current receivables | 1,521.6 | 1,306.3 | |
Long-term receivables | 11.3 | 22.8 | |
Receivables, net | $ 1,532.9 | $ 1,329.1 |
Receivables (Details 2)
Receivables (Details 2) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2018USD ($)Party | Jun. 30, 2018USD ($) | [2] | Mar. 31, 2018USD ($) | [3] | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | [6] | Mar. 31, 2017USD ($) | [7] | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($)Party | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | ||||||
Change in allowance for doubtful accounts | ||||||||||||||||||||
Allowance for doubtful accounts at beginning of period | $ 18.3 | $ 21.2 | $ 18.3 | $ 21.2 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | (6) | 0.8 | ||||||||||||||||||
Charge-off of accounts | (2.2) | (4.2) | ||||||||||||||||||
Foreign currency translation | (0.2) | 0.5 | ||||||||||||||||||
Allowance for doubtful accounts at end of period | $ 9.9 | $ 18.3 | 9.9 | 18.3 | $ 21.2 | |||||||||||||||
Gross income | $ 375.2 | [1] | $ 402.9 | $ 335.4 | 242.2 | [4] | 326.5 | [5] | $ 386.9 | $ 261.3 | 199.7 | [8] | 1,355.7 | 1,174.4 | 1,055.8 | |||||
Interest Income (Expense), Net | $ (55.6) | [9] | (54.9) | (58.3) | ||||||||||||||||
Credit Concentration Risk [Member] | Financing Receivable [Member] | ||||||||||||||||||||
Receivable aging and accrual status | ||||||||||||||||||||
Concentration of risk | 82.00% | |||||||||||||||||||
Numbers of parties in receivable | Party | 3 | 3 | ||||||||||||||||||
Credit Concentration Risk [Member] | Notes receivables | ||||||||||||||||||||
Receivable aging and accrual status | ||||||||||||||||||||
Concentration of risk | 98.00% | |||||||||||||||||||
Numbers of parties in receivable | Party | 1 | 1 | ||||||||||||||||||
Financing Receivable [Member] | ||||||||||||||||||||
Receivable aging and accrual status | ||||||||||||||||||||
Receivables on nonaccrual status | $ 10.2 | 3.7 | $ 10.2 | 3.7 | ||||||||||||||||
Receivables past due 90 days or more and still accruing | 0 | 0 | 0 | 0 | ||||||||||||||||
Receivables subject to general reserves | 1.5 | 2.1 | 1.5 | 2.1 | ||||||||||||||||
Allowance for doubtful accounts | 0 | 0 | 0 | 0 | ||||||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 10.2 | 3.7 | 10.2 | 3.7 | ||||||||||||||||
Allowance for doubtful accounts | (2.8) | (1.5) | (2.8) | (1.5) | ||||||||||||||||
Change in allowance for doubtful accounts | ||||||||||||||||||||
Allowance for doubtful accounts at beginning of period | 1.5 | 1 | 1.5 | 1 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | 1.3 | 1.4 | ||||||||||||||||||
Charge-off of accounts | 0 | (0.9) | ||||||||||||||||||
Foreign currency translation | 0 | 0 | ||||||||||||||||||
Allowance for doubtful accounts at end of period | 2.8 | 1.5 | 2.8 | 1.5 | 1 | |||||||||||||||
Notes receivables | ||||||||||||||||||||
Receivable aging and accrual status | ||||||||||||||||||||
Receivables on nonaccrual status | 0 | 21.3 | 0 | 21.3 | ||||||||||||||||
Receivables past due 90 days or more and still accruing | 0 | 0 | 0 | 0 | ||||||||||||||||
Receivables subject to general reserves | 0 | 0 | 0 | 0 | ||||||||||||||||
Allowance for doubtful accounts | 0 | 0 | 0 | 0 | ||||||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 1.4 | 34.2 | 1.4 | 34.2 | ||||||||||||||||
Allowance for doubtful accounts | 0 | (10) | 0 | (10) | ||||||||||||||||
Change in allowance for doubtful accounts | ||||||||||||||||||||
Allowance for doubtful accounts at beginning of period | 10 | 13 | 10 | 13 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | (8.2) | (1.3) | ||||||||||||||||||
Charge-off of accounts | (1.7) | (2.2) | ||||||||||||||||||
Foreign currency translation | (0.1) | 0.5 | ||||||||||||||||||
Allowance for doubtful accounts at end of period | 0 | 10 | 0 | 10 | 13 | |||||||||||||||
Trade and other receivables | ||||||||||||||||||||
Change in allowance for doubtful accounts | ||||||||||||||||||||
Allowance for doubtful accounts at beginning of period | $ 6.8 | $ 7.2 | 6.8 | 7.2 | ||||||||||||||||
Provision for doubtful accounts, net of recoveries | 0.9 | 0.7 | ||||||||||||||||||
Charge-off of accounts | (0.5) | (1.1) | ||||||||||||||||||
Foreign currency translation | (0.1) | 0 | ||||||||||||||||||
Allowance for doubtful accounts at end of period | $ 7.1 | $ 6.8 | 7.1 | $ 6.8 | $ 7.2 | |||||||||||||||
Access Equipment Customer 1 [Member] | ||||||||||||||||||||
Change in allowance for doubtful accounts | ||||||||||||||||||||
Proceeds from Collection of Notes Receivable | 19.6 | |||||||||||||||||||
Gross income | 11.5 | |||||||||||||||||||
Collection of a receivable previously considered uncollectable | 2.4 | |||||||||||||||||||
Interest Income (Expense), Net | $ 6.6 | |||||||||||||||||||
[1] | The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ($2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ($15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ($4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ($1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million. | |||||||||||||||||||
[2] | The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ($5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ($7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million. | |||||||||||||||||||
[3] | The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ($5.8 million after-tax) in the access equipment and commercial segments. | |||||||||||||||||||
[4] | The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ($14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million. | |||||||||||||||||||
[5] | The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ($11.5 million after-tax) in the access equipment segment. | |||||||||||||||||||
[6] | The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ($11.5 million after-tax) in the access equipment segment. | |||||||||||||||||||
[7] | The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ($14.0 million after-tax) in the access equipment segment. | |||||||||||||||||||
[8] | The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ($0.4 million after-tax) in the access equipment segment. | |||||||||||||||||||
[9] | Fiscal 2018 results include $9.9 million in debt extinguishment costs. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Inventories | ||
Raw materials | $ 639.2 | $ 578.1 |
Partially finished products | 354.3 | 336.6 |
Finished products | 330.2 | 398.1 |
Inventories at FIFO cost | 1,323.7 | 1,312.8 |
Less: Progress / performance-based payments on U.S. government contracts | 0 | (31.6) |
Less: Excess of FIFO cost over LIFO cost | (96) | (82.8) |
Inventories, net | $ 1,227.7 | $ 1,198.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 1,222.7 | $ 1,188.8 | |
Less accumulated depreciation | (741.6) | (718.9) | |
Property, plant and equipment, net | 481.1 | 469.9 | |
Depreciation expenses | 79.8 | 81.5 | $ 73.3 |
Asset impairment charge | 0 | 0 | 26.9 |
Land and land improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 54.2 | 58.5 | |
Buildings | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 297.6 | 298.5 | |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 673 | 652.2 | |
Machinery and equipment | Minimum | |||
Property, plant and equipment | |||
Useful life | 4 years | ||
Machinery and equipment | Maximum | |||
Property, plant and equipment | |||
Useful life | 25 years | ||
Software and Software Development Costs | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 164.4 | 149.6 | |
Software and Software Development Costs | Minimum | |||
Property, plant and equipment | |||
Useful life | 3 years | ||
Software and Software Development Costs | Maximum | |||
Property, plant and equipment | |||
Useful life | 10 years | ||
Equipment on operating lease to others | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 22.1 | 30 | |
Equipment on operating lease, net | $ 17.2 | 21.6 | |
Equipment on operating lease to others | Minimum | |||
Property, plant and equipment | |||
Useful life | 5 years | ||
Equipment on operating lease to others | Maximum | |||
Property, plant and equipment | |||
Useful life | 10 years | ||
Construction in Progress [Member] | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 11.4 | $ 0 | |
Access Equipment [Member] | Property, Plant and Equipment Impairment | |||
Property, plant and equipment | |||
Asset impairment charge | $ 26.9 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Jul. 01, 2018 | Sep. 30, 2017 | Jul. 01, 2017 | |
Carrying amount of goodwill by reportable segment | ||||||
Minimum weighted-average cost of capital (as a percent) | 10.50% | 9.00% | ||||
Maximum weighted-average cost of capital (as a percent) | 13.50% | 10.50% | ||||
Terminal growth rate (as a percent) | 3.00% | 3.00% | ||||
Changes in goodwill | ||||||
Net goodwill at the beginning of the period | $ 1,013 | $ 1,003.5 | ||||
Foreign currency translation | (5.1) | 9.5 | ||||
Net goodwill at the end of the period | 1,007.9 | 1,013 | ||||
Details of the Company's goodwill allocated to the reportable segments | ||||||
Gross | $ 2,117.9 | $ 2,123 | ||||
Accumulated Impairment | (1,110) | (1,110) | ||||
Net | 1,013 | 1,003.5 | 1,007.9 | 1,013 | ||
Access equipment | ||||||
Changes in goodwill | ||||||
Net goodwill at the beginning of the period | 885.9 | 876.6 | ||||
Foreign currency translation | (5) | 9.3 | ||||
Net goodwill at the end of the period | 880.9 | 885.9 | ||||
Details of the Company's goodwill allocated to the reportable segments | ||||||
Gross | 1,813 | 1,818 | ||||
Accumulated Impairment | (932.1) | (932.1) | ||||
Net | 885.9 | 876.6 | 880.9 | 885.9 | ||
Fire & emergency | ||||||
Changes in goodwill | ||||||
Net goodwill at the beginning of the period | 106.1 | 106.1 | ||||
Foreign currency translation | 0 | 0 | ||||
Net goodwill at the end of the period | 106.1 | 106.1 | ||||
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 | 106.1 | 106.1 | ||
Commercial | ||||||
Changes in goodwill | ||||||
Net goodwill at the beginning of the period | 21 | 20.8 | ||||
Foreign currency translation | (0.1) | 0.2 | ||||
Net goodwill at the end of the period | 20.9 | 21 | ||||
Details of the Company's goodwill allocated to the reportable segments | ||||||
Gross | 196.8 | 196.9 | ||||
Accumulated Impairment | (175.9) | (175.9) | ||||
Net | $ 21 | $ 20.8 | $ 20.9 | $ 21 | ||
JLG Industries Inc And Its Wholly Owned Subsidiaries Member | ||||||
Carrying amount of goodwill by reportable segment | ||||||
Percentage of recorded goodwill and purchased intangibles concentrated within the JLG reporting unit in the access equipment segment (as a percent) | 90.00% |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Purchased intangible assets | ||
Weighted-Average Life (in years) | 14 years 8 months | 14 years 5 months |
Gross | $ 731.5 | $ 731.5 |
Accumulated Amortization | (649.8) | (611.5) |
Net | 81.7 | 120 |
Non-amortizable trade names | 387.7 | 387.8 |
Intangible assets excluding goodwill, gross | 1,119.2 | 1,119.3 |
Purchased intangible assets, net | 469.4 | $ 507.8 |
Future amortization expense of purchased intangible assets for the five years succeeding fiscal years | ||
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 | (30.9) | (29.5) |
Net | $ 24.5 | $ 25.9 |
Distribution network | Pierce | ||
Purchased intangible assets | ||
Weighted-Average Life (in years) | 40 years | |
Net | $ 23.8 | |
Technology-related | ||
Purchased intangible assets | ||
Weighted-Average Life (in years) | 11 years 11 months | 11 years 11 months |
Gross | $ 104.7 | $ 104.7 |
Accumulated Amortization | (101.8) | (99.7) |
Net | $ 2.9 | $ 5 |
Customer relationships | ||
Purchased intangible assets | ||
Weighted-Average Life (in years) | 12 years 9 months | 12 years 9 months |
Gross | $ 555 | $ 555 |
Accumulated Amortization | (502.3) | (467.6) |
Net | $ 52.7 | $ 87.4 |
Other | ||
Purchased intangible assets | ||
Weighted-Average Life (in years) | 16 years 2 months | 16 years 4 months |
Gross | $ 16.4 | $ 16.4 |
Accumulated Amortization | (14.8) | (14.7) |
Net | $ 1.6 | $ 1.7 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Assets Held-in-trust, Noncurrent | $ 20.9 | $ 20.6 |
Finance receivables - noncurrent | 7.6 | 1.7 |
Notes receivable - noncurrent | 0.1 | 25.7 |
Deferred Tax Assets, Net, Noncurrent | 9.7 | 4.2 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 12.9 | 15.5 |
Other | 16.4 | 9.3 |
Less allowance for doubtful receivables - noncurrent | (1.7) | (8.6) |
Other long-term assets, net | 65.9 | 68.4 |
Other long-term assets, gross | $ 67.6 | $ 77 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Leases | |||
Rental expense for property, plant and equipment | $ 47.1 | $ 48 | $ 45 |
Operating Leases, 2019 | 23.6 | ||
Operating Leases, 2020 | 18.3 | ||
Operating Leases, 2021 | 14.5 | ||
Operating Leases, 2022 | 7.6 | ||
Operating Leases, 2023 | 4.6 | ||
Operating Leases, Thereafter | $ 2.8 |
Credit Agreements (Details)
Credit Agreements (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | May 17, 2018USD ($) | Apr. 03, 2018USD ($) | Mar. 02, 2015USD ($) | Feb. 21, 2014USD ($) | |
Long term debt | ||||||||
Long-term Debt, Gross | $ 825 | $ 835 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (7) | (7.1) | ||||||
Long-term Debt | 818 | 827.9 | ||||||
Less current maturities | 0 | (20) | ||||||
Long term debt net of current maturities | 818 | 807.9 | ||||||
Debt, current | ||||||||
Revolving Credit Facility | 0 | 3 | ||||||
Current maturities of long-term debt | 0 | 20 | ||||||
Revolving line of credit and current maturities of long-term debt | 0 | 23 | ||||||
Gain (Loss) on Extinguishment of Debt | $ (9.9) | (10.3) | 0 | $ 0 | ||||
Write off of Deferred Debt Issuance Cost | $ 3.2 | |||||||
Senior Secured Term Loan Member | ||||||||
Long term debt | ||||||||
Long-term Debt, Gross | 335 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (0.8) | |||||||
Long-term Debt | 334.2 | |||||||
Debt, current | ||||||||
Fair value of debt | 335 | |||||||
5.375% Senior notes due March 2022 [Member] | ||||||||
Long term debt | ||||||||
Long-term Debt, Gross | 250 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (3.5) | |||||||
Long-term Debt | $ 246.5 | |||||||
Debt, current | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.688% | |||||||
Debt instrument interest rate (as a percent) | 5.375% | 5.375% | ||||||
Debt Instrument, Face Amount | $ 250 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt, current | ||||||||
Maximum borrowing capacity | $ 850 | |||||||
Available borrowing capacity | $ 764.5 | |||||||
Senior Credit Agreement Member [Member] | ||||||||
Debt, current | ||||||||
Interest spread in basis points (as a percent) | 125.00% | |||||||
Maximum leverage ratio | 3.75 | |||||||
Minimum interest coverage ratio | 2.5 | |||||||
Debt Instrument, Dividends and Other Distributions Restrictions, Dollar Restriction | $ 1,460 | |||||||
Debt Issuance Costs, Gross | 2.9 | |||||||
Dividend payment restriction under credit agreement | ||||||||
Percentage of consolidated net income of the Company and its subsidiaries accrued on a cummulative basis during the period beginning on April 3, 2018 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 cummulative basis during the period beginning on April 3, 2018 and ending on the last day of the fiscal quarter | 100.00% | |||||||
Percentage of aggregate net proceeds received by the Company subsequent ot April 3, 2018 as a contribution to its common equity or from the issuance and sale of its Common Stock | 100.00% | |||||||
Senior Credit Agreement Member [Member] | Minimum | ||||||||
Debt, current | ||||||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.125% | |||||||
Senior Credit Agreement Member [Member] | Maximum | ||||||||
Debt, current | ||||||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.275% | |||||||
Senior Term Loan Member [Member] | ||||||||
Long term debt | ||||||||
Long-term Debt, Gross | $ 275 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (0.8) | |||||||
Long-term Debt | 274.2 | $ 325 | ||||||
Debt, current | ||||||||
Repayments of Debt | 49.2 | |||||||
Gain (Loss) on Extinguishment of Debt | (0.6) | |||||||
Write off of Deferred Debt Issuance Cost | 0.2 | |||||||
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | (0.4) | |||||||
Quarterly principal installment, at commencement | 4.1 | |||||||
Payment due at maturity | $ 264.1 | |||||||
Weighted-average interest rate (as a percent) | 3.49% | |||||||
Fair value of debt | $ 275 | |||||||
5.375% Senior notes due March 2025 [Member] | ||||||||
Long term debt | ||||||||
Long-term Debt, Gross | 250 | $ 250 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (2.4) | (2.8) | ||||||
Long-term Debt | $ 247.6 | 247.2 | ||||||
Debt, current | ||||||||
Debt instrument interest rate (as a percent) | 5.375% | 5.375% | ||||||
Debt Instrument, Face Amount | $ 250 | |||||||
Fair value of debt | $ 257 | $ 264 | ||||||
Letter of credit | ||||||||
Debt, current | ||||||||
Letters of credit outstanding | $ 85.5 | |||||||
Letter of credit fees percentage on available borrowing capacity, low end of range (as a percent) | 0.563% | |||||||
Letter of credit fees percentage on available borrowing capacity, high end of range (as a percent) | 1.75% | |||||||
Senior Credit Agreement Dollar Denominated Loans Member | Debt Instrument Variable Rate Base Federal Member | ||||||||
Debt, current | ||||||||
Interest spread in basis points (as a percent) | 0.50% | |||||||
Senior Credit Agreement Dollar Denominated Loans Member | LIBOR | ||||||||
Debt, current | ||||||||
Interest spread in basis points (as a percent) | 1.00% | |||||||
4.600% Senior notes due May 2028 [Member] | ||||||||
Long term debt | ||||||||
Long-term Debt, Gross | $ 300 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (3.8) | |||||||
Long-term Debt | 296.2 | |||||||
Debt, current | ||||||||
Debt instrument interest rate (as a percent) | 4.60% | |||||||
Debt Instrument, Face Amount | $ 300 | |||||||
Debt Instrument, Unamortized Discount | 1 | |||||||
Gain (Loss) on Extinguishment of Debt | (9.7) | |||||||
Write off of Deferred Debt Issuance Cost | 3 | |||||||
Loss on extinguishment of debt - call premium | 6.7 | |||||||
Fair value of debt | $ 299 | |||||||
Debt Issuance Costs, Gross | $ 2.9 |
Warranties (Details)
Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |||
Extended Product Warranty Accrual | $ 30.8 | $ 30.8 | |
Product warranty, minimum | 6 months | ||
Product warranty, maximum | 5 years | ||
Warranty costs | $ 57 | 60.4 | $ 46.8 |
Changes in warranty liability | |||
Balance at beginning of year | 98.8 | 89.6 | |
Warranty provisions | 56.6 | 57.4 | |
Settlements made | (49.8) | (51.8) | |
Change in liability for pre-existing warranties, net | 2.4 | 2.5 | |
Premiums Received | 12.7 | 12.4 | |
Amortization of premiums received | (14.2) | (12) | |
Foreign currency translation | (0.5) | 0.7 | |
Balance at end of year | $ 106 | $ 98.8 | $ 89.6 |
Guarantee Arrangements (Details
Guarantee Arrangements (Details) - Customer obligation guarantees - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Guarantee Obligations | ||
Guarantee obligations, maximum exposure | $ 121.8 | $ 101.9 |
Aggregate amount of indebtedness which the Company is a party to through guarantee agreements | 685.3 | 568.2 |
Changes in provision for loss on customer guarantees | ||
Balance at beginning of year | 9.1 | 8.4 |
Provision for new credit guarantees | 5.1 | 3.2 |
Change for pre-existing guarantees, net | (0.9) | 0.5 |
Amortization of previous guarantees | (2.7) | (3.1) |
Foreign currency translation | (0.2) | 0.1 |
Balance at end of year | $ 10.4 | $ 9.1 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 12 Months Ended | 37 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 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) | 4,239,534 | 4,239,534 | 10,299,198 | ||
Shares repurchased under authorization (in shares) | 3,273,040 | 0 | 2,500,000 | 6,059,664 | |
Aggregate cost of common stock repurchased | $ 249.3 | $ 0 | $ 100.1 | ||
Treasury Stock, Shares, Retired | 17,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) $ in Millions | Sep. 30, 2018USD ($) |
Not designated as hedging instruments | |
Open derivative instruments | |
Derivative, Notional Amount | $ 69.6 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Designated as hedging instrument | |
Open derivative instruments | |
Derivative, Notional Amount | $ 16.4 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities (Details 2) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | $ 0.8 | $ 0.8 |
Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | 0.2 | 1.9 |
Not designated as hedging instruments | Foreign Exchange Contract [Member] | Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | 0.4 | 0.5 |
Not designated as hedging instruments | Foreign Exchange Contract [Member] | Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | 0.2 | 0.8 |
Not designated as hedging instruments | Interest Rate Contract [Member] | Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | 0 | 0.3 |
Not designated as hedging instruments | Interest Rate Contract [Member] | Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | 0 | 0.7 |
Cash Flow Hedging [Member] | Designated as hedging instrument | Foreign Exchange Contract [Member] | Other Current Assets | ||
Fair values of open derivative instruments | ||
Fair value of derivative assets | 0.4 | 0 |
Cash Flow Hedging [Member] | Designated as hedging instrument | Foreign Exchange Contract [Member] | Other Current Liabilities | ||
Fair values of open derivative instruments | ||
Fair value of derivative liabilities | $ 0 | $ 0.4 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pre-tax gains (losses) on derivative instruments | |||
Total pre-tax effects of derivative instruments | $ (3.6) | $ 3.4 | $ (8) |
Designated as hedging instrument | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Net sales | |||
Pre-tax gains (losses) on derivative instruments | |||
Reclassified from other comprehensive income (effective portion): | 0 | (0.1) | 0 |
Designated as hedging instrument | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Other Nonoperating Income (Expense) [Member] | |||
Pre-tax gains (losses) on derivative instruments | |||
Reclassified from other comprehensive income (effective portion): | 0 | (0.1) | (0.2) |
Designated as hedging instrument | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | |||
Pre-tax gains (losses) on derivative instruments | |||
Reclassified from other comprehensive income (effective portion): | (0.5) | (0.1) | 0 |
Not designated as hedging instruments | Foreign Exchange Contract [Member] | Other Nonoperating Income (Expense) [Member] | |||
Pre-tax gains (losses) on derivative instruments | |||
Not designated as hedges | (2.4) | 3.5 | (7.6) |
Not designated as hedging instruments | Interest Rate Contract [Member] | Other Nonoperating Income (Expense) [Member] | |||
Pre-tax gains (losses) on derivative instruments | |||
Not designated as hedges | $ (0.7) | $ 0.2 | $ (0.2) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Fair value measured on recurring basis - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | |
Assets: | |||
Foreign currency exchange derivatives | [1] | $ 0.8 | $ 0.5 |
Interest Rate Derivative Assets, at Fair Value | [2] | 0.3 | |
Liabilities: | |||
Foreign currency exchange derivatives | [1] | 0.2 | 1.2 |
Interest Rate Derivative Liabilities, at Fair Value | [2] | 0.7 | |
Quoted Prices for Identical Assets (Level 1) | |||
Assets: | |||
Foreign currency exchange derivatives | [1] | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | [2] | 0 | |
Liabilities: | |||
Foreign currency exchange derivatives | [1] | 0 | 0 |
Interest Rate Derivative Liabilities, at Fair Value | [2] | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Foreign currency exchange derivatives | [1] | 0.8 | 0.5 |
Interest Rate Derivative Assets, at Fair Value | [2] | 0.3 | |
Liabilities: | |||
Foreign currency exchange derivatives | [1] | 0.2 | 1.2 |
Interest Rate Derivative Liabilities, at Fair Value | [2] | 0.7 | |
Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Foreign currency exchange derivatives | [1] | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | [2] | 0 | |
Liabilities: | |||
Foreign currency exchange derivatives | [1] | 0 | 0 |
Interest Rate Derivative Liabilities, at Fair Value | [2] | 0 | |
Supplemental Executive Retirement Plans | |||
Assets: | |||
SERP plan assets | [3] | 22.1 | 21.7 |
Supplemental Executive Retirement Plans | Quoted Prices for Identical Assets (Level 1) | |||
Assets: | |||
SERP plan assets | [3] | 22.1 | 21.7 |
Supplemental Executive Retirement Plans | Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
SERP plan assets | [3] | 0 | 0 |
Supplemental Executive Retirement Plans | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
SERP plan assets | [3] | $ 0 | $ 0 |
[1] | Based on observable market transactions of forward currency prices. | ||
[2] | Based on observable market transactions of interest rate swap prices. | ||
[3] | Represents investments in a rabbi trust for the Company’s non-qualified 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 Consolidated Statements of Income. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Common stock reserved for issuance stock awards (in shares) | 7,919,214 | ||||
Equity-based compensation plans | |||||
Number of Securities to be Issued Upon Exercise of Outstanding Options or Vesting of Performance Share Awards (in shares) | 1,915,157 | ||||
Weighted-Average Exercise Price of Outstanding Options (in dollars per share) | $ 57.03 | $ 57.03 | $ 57.03 | ||
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (in shares) | 6,004,057 | ||||
Stock-based compensation expense | $ 26.9 | $ 26.2 | $ 23 | ||
Income tax benefit recognized for stock-based compensation | (5.8) | (9.6) | (8.4) | ||
Stock-based compensation expense, net of tax | $ 21.1 | 16.6 | 14.6 | ||
Weighted-Average Exercise Price | |||||
Options outstanding, beginning of year (in dollars per share) | 57.03 | ||||
Options outstanding, end of year (in dollars per share) | $ 57.03 | ||||
Stock Options Outstanding and Exercisable | |||||
Stock Option Awards Outstanding, Weighted-Average Exercise Price, (in dollars per share) | 57.03 | $ 57.03 | 57.03 | ||
Proceeds from exercise of stock options | $ 16.6 | 39.9 | 21.7 | ||
Equity compensation plans approved by security holders Member | |||||
Equity-based compensation plans | |||||
Number of Securities to be Issued Upon Exercise of Outstanding Options or Vesting of Performance Share Awards (in shares) | 1,915,157 | ||||
Weighted-Average Exercise Price of Outstanding Options (in dollars per share) | 57.03 | $ 57.03 | 57.03 | ||
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (in shares) | 6,004,057 | ||||
Weighted-Average Exercise Price | |||||
Options outstanding, beginning of year (in dollars per share) | 57.03 | ||||
Options outstanding, end of year (in dollars per share) | $ 57.03 | ||||
Stock Options Outstanding and Exercisable | |||||
Stock Option Awards Outstanding, Weighted-Average Exercise Price, (in dollars per share) | 57.03 | $ 57.03 | 57.03 | ||
Equity Compensation Plans Not Approved By Security Holders Member | |||||
Equity-based compensation plans | |||||
Number of Securities to be Issued Upon Exercise of Outstanding Options or Vesting of Performance Share Awards (in shares) | 0 | ||||
Weighted-Average Exercise Price of Outstanding Options (in dollars per share) | 0 | $ 0 | 0 | ||
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (in shares) | 0 | ||||
Weighted-Average Exercise Price | |||||
Options outstanding, beginning of year (in dollars per share) | 0 | ||||
Options outstanding, end of year (in dollars per share) | $ 0 | ||||
Stock Options Outstanding and Exercisable | |||||
Stock Option Awards Outstanding, Weighted-Average Exercise Price, (in dollars per share) | $ 0 | $ 0 | $ 0 | ||
Performance Shares [Member] | |||||
Equity-based compensation plans | |||||
Stock-based compensation expense | $ 6.4 | 3.3 | 2.3 | ||
Stock Options Outstanding and Exercisable | |||||
Unrecognized compensation expense | $ 7.2 | ||||
Weighted-average period for unrecognized compensation expense to be recognized (in years) | 1 year 11 months | ||||
Performance Shares [Member] | Scenario, Forecast [Member] | |||||
Weighted-Average Per Share Fair Value | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 118,286 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 23.2 | 24 | 12.6 | ||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 6.3 | $ 8.8 | $ 4.6 | ||
Tenure of award (in years) | 10 years | ||||
Period over which awards are exercisable in equal installments, beginning with the first anniversary of the date of grant of awards (in years) | 3 years | ||||
Equity-based compensation plans | |||||
Weighted-Average Exercise Price of Outstanding Options (in dollars per share) | $ 57.03 | $ 45.14 | $ 39.55 | $ 36.57 | $ 57.03 |
Stock-based compensation expense | $ 6.6 | $ 7.5 | $ 6.7 | ||
Options | |||||
Options outstanding, beginning of year (in shares) | 1,268,984 | 1,531,691 | 2,104,929 | 2,369,872 | |
Options granted (in shares) | 261,900 | 393,975 | 567,550 | ||
Options forfeited (in shares) | (43,270) | (11,145) | (70,177) | ||
Options expired (in shares) | (1) | 0 | (43,392) | ||
Options exercised (in shares) | (481,336) | (956,068) | (718,924) | ||
Options outstanding, end of year (in shares) | 1,268,984 | 1,531,691 | 2,104,929 | ||
Options exercisable, end of year (in shares) | 650,143 | 819,906 | 1,473,761 | ||
Weighted-Average Exercise Price | |||||
Options outstanding, beginning of year (in dollars per share) | $ 57.03 | $ 45.14 | $ 39.55 | $ 36.57 | |
Options granted (in dollars per share) | 86.59 | 66.89 | 41.52 | ||
Options forfeited (in dollars per share) | 66.49 | 52.54 | 44.31 | ||
Options expired (in dollars per share) | 41.52 | 0 | 49.19 | ||
Options exercised (in dollars per share) | 34.41 | 41.70 | 30.25 | ||
Options outstanding, end of year (in dollars per share) | 57.03 | 45.14 | 39.55 | ||
Options exercisable, end of year (in dollars per share) | $ 45.92 | $ 36.47 | $ 38.28 | ||
Stock Options Outstanding and Exercisable | |||||
Stock Option Awards Outstanding, Number Outstanding (in shares) | 1,268,984 | 1,531,691 | 2,104,929 | 2,369,872 | 1,268,984 |
Stock Option Awards Outstanding, Weighted-Average Remaining Contractual Life, (in years) | 4 years 9 months | ||||
Stock Option Awards Outstanding, Weighted-Average Exercise Price, (in dollars per share) | $ 57.03 | $ 45.14 | $ 39.55 | $ 36.57 | $ 57.03 |
Stock Option Awards Outstanding, Aggregate Intrinsic Value | $ 21.8 | ||||
Stock Option Awards Exercisable, Number Exercisable (in shares) | 650,143 | 819,906 | 1,473,761 | 650,143 | |
Stock Option Awards Exercisable, Weighted-Average Remaining Contractual Life (in years) | 3 years 4 months | ||||
Stock Option Awards Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 45.92 | $ 36.47 | $ 38.28 | $ 45.92 | |
Stock Option Awards Exercisable, Aggregate Intrinsic Value | $ 16.5 | ||||
Unrecognized compensation expense | $ 2.6 | ||||
Weighted-average period for unrecognized compensation expense to be recognized (in years) | 1 year 11 months | ||||
Assumptions: | |||||
Expected term (in years) | 5 years 5 months | 5 years 1 month | 5 years 1 month | ||
Expected volatility (as a percent) | 34.50% | 37.30% | 40.40% | ||
Risk-free interest rate (as a percent) | 2.09% | 1.79% | 1.73% | ||
Expected dividend yield (as a percent) | 1.15% | 1.52% | 1.65% | ||
Weighted-average per share fair values for stock option granted (in dollars per share) | $ 26.84 | $ 20.43 | $ 13.44 | ||
Stock options | Price Range, $7.95 - $28.96 | |||||
Equity-based compensation plans | |||||
Weighted-Average Exercise Price of Outstanding Options (in dollars per share) | $ 28.38 | $ 28.38 | $ 28.38 | ||
Options | |||||
Options outstanding, beginning of year (in shares) | 93,784 | ||||
Options outstanding, end of year (in shares) | 93,784 | ||||
Options exercisable, end of year (in shares) | 93,784 | ||||
Weighted-Average Exercise Price | |||||
Options outstanding, beginning of year (in dollars per share) | $ 28.38 | ||||
Options outstanding, end of year (in dollars per share) | $ 28.38 | ||||
Options exercisable, end of year (in dollars per share) | 28.38 | ||||
Stock Options Outstanding and Exercisable | |||||
Stock Option Awards Outstanding, Exercise Prices, Low End of Range (in dollars per share) | 7.95 | ||||
Stock Option Awards Outstanding, Exercise Prices, High End of Range (in dollars per share) | $ 28.96 | ||||
Stock Option Awards Outstanding, Number Outstanding (in shares) | 93,784 | 93,784 | 93,784 | ||
Stock Option Awards Outstanding, Weighted-Average Remaining Contractual Life, (in years) | 11 months | ||||
Stock Option Awards Outstanding, Weighted-Average Exercise Price, (in dollars per share) | $ 28.38 | $ 28.38 | $ 28.38 | ||
Stock Option Awards Outstanding, Aggregate Intrinsic Value | $ 4 | ||||
Stock Option Awards Exercisable, Number Exercisable (in shares) | 93,784 | 93,784 | |||
Stock Option Awards Exercisable, Weighted-Average Remaining Contractual Life (in years) | 11 months | ||||
Stock Option Awards Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 28.38 | $ 28.38 | |||
Stock Option Awards Exercisable, Aggregate Intrinsic Value | $ 4 | ||||
Stock options | Price Range, $40.67 - $50.27 | |||||
Equity-based compensation plans | |||||
Weighted-Average Exercise Price of Outstanding Options (in dollars per share) | $ 43.77 | $ 43.77 | $ 43.77 | ||
Options | |||||
Options outstanding, beginning of year (in shares) | 596,394 | ||||
Options outstanding, end of year (in shares) | 596,394 | ||||
Options exercisable, end of year (in shares) | 450,937 | ||||
Weighted-Average Exercise Price | |||||
Options outstanding, beginning of year (in dollars per share) | $ 43.77 | ||||
Options outstanding, end of year (in dollars per share) | $ 43.77 | ||||
Options exercisable, end of year (in dollars per share) | 44.50 | ||||
Stock Options Outstanding and Exercisable | |||||
Stock Option Awards Outstanding, Exercise Prices, Low End of Range (in dollars per share) | 40.67 | ||||
Stock Option Awards Outstanding, Exercise Prices, High End of Range (in dollars per share) | $ 50.27 | ||||
Stock Option Awards Outstanding, Number Outstanding (in shares) | 596,394 | 596,394 | 596,394 | ||
Stock Option Awards Outstanding, Weighted-Average Remaining Contractual Life, (in years) | 3 years 6 months | ||||
Stock Option Awards Outstanding, Weighted-Average Exercise Price, (in dollars per share) | $ 43.77 | $ 43.77 | $ 43.77 | ||
Stock Option Awards Outstanding, Aggregate Intrinsic Value | $ 16.4 | ||||
Stock Option Awards Exercisable, Number Exercisable (in shares) | 450,937 | 450,937 | |||
Stock Option Awards Exercisable, Weighted-Average Remaining Contractual Life (in years) | 3 years 4 months | ||||
Stock Option Awards Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 44.50 | $ 44.50 | |||
Stock Option Awards Exercisable, Aggregate Intrinsic Value | $ 12.1 | ||||
Stock options | Price Range, $66.89 - $86.59 | |||||
Equity-based compensation plans | |||||
Weighted-Average Exercise Price of Outstanding Options (in dollars per share) | $ 75.34 | $ 75.34 | $ 75.34 | ||
Options | |||||
Options outstanding, beginning of year (in shares) | 578,806 | ||||
Options outstanding, end of year (in shares) | 578,806 | ||||
Options exercisable, end of year (in shares) | 105,422 | ||||
Weighted-Average Exercise Price | |||||
Options outstanding, beginning of year (in dollars per share) | $ 75.34 | ||||
Options outstanding, end of year (in dollars per share) | $ 75.34 | ||||
Options exercisable, end of year (in dollars per share) | 67.61 | ||||
Stock Options Outstanding and Exercisable | |||||
Stock Option Awards Outstanding, Exercise Prices, Low End of Range (in dollars per share) | 66.89 | ||||
Stock Option Awards Outstanding, Exercise Prices, High End of Range (in dollars per share) | $ 86.59 | ||||
Stock Option Awards Outstanding, Number Outstanding (in shares) | 578,806 | 578,806 | 578,806 | ||
Stock Option Awards Outstanding, Weighted-Average Remaining Contractual Life, (in years) | 6 years 11 months | ||||
Stock Option Awards Outstanding, Weighted-Average Exercise Price, (in dollars per share) | $ 75.34 | $ 75.34 | $ 75.34 | ||
Stock Option Awards Outstanding, Aggregate Intrinsic Value | $ 1.4 | ||||
Stock Option Awards Exercisable, Number Exercisable (in shares) | 105,422 | 105,422 | |||
Stock Option Awards Exercisable, Weighted-Average Remaining Contractual Life (in years) | 5 years 4 months | ||||
Stock Option Awards Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 67.61 | $ 67.61 | |||
Stock Option Awards Exercisable, Aggregate Intrinsic Value | $ 0.4 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 3.8 | $ 2.9 | $ 1.2 | ||
Equity-based compensation plans | |||||
Stock-based compensation expense | $ (0.2) | $ 3.3 | $ 3.4 | ||
Stock Options Outstanding and Exercisable | |||||
Unrecognized compensation expense | 0.1 | ||||
Weighted-average period for unrecognized compensation expense to be recognized (in years) | 1 year 2 months | ||||
Stock Award Activity | |||||
Granted (in shares) | 11,650 | 11,750 | 27,900 | ||
Nonvested Stock Awards Member | |||||
Equity-based compensation plans | |||||
Stock-based compensation expense | $ 13.7 | $ 11.6 | $ 9.7 | ||
Income tax benefit recognized for stock-based compensation | $ (3) | (4.1) | (3.9) | ||
Stock Options Outstanding and Exercisable | |||||
Unrecognized compensation expense | 6.7 | ||||
Weighted-average period for unrecognized compensation expense to be recognized (in years) | 1 year 11 months | ||||
Weighted-Average Per Share Fair Value | |||||
Fair value of shares vested | $ 13.2 | $ 11.2 | $ 10.7 | ||
Nonvested Equity Options [Member] | |||||
Stock Award Activity | |||||
Nonvested, beginning of year (in shares) | 332,473 | 352,159 | 313,806 | 273,992 | |
Granted (in shares) | 163,225 | 214,325 | 323,800 | ||
Forfeited (in shares) | (26,915) | (16,381) | (53,928) | ||
Vested (in shares) | (155,996) | (159,591) | (230,058) | ||
Nonvested, end of year (in shares) | 332,473 | 352,159 | 313,806 | ||
Weighted-Average Per Share Fair Value | |||||
Nonvested, beginning of year (in dollars per share) | $ 69.15 | $ 55.22 | $ 42.93 | $ 46.84 | |
Granted (in dollars per share) | 86.07 | 66.84 | 40.33 | ||
Forfeited (in dollars per share) | 65.66 | 51.67 | 45.71 | ||
Vested (in dollars per share) | 56.02 | 47.01 | 43.28 | ||
Nonvested, end of year (in dollars per share) | $ 69.15 | $ 55.22 | $ 42.93 | ||
Nonvested Performance Share Awards [Member] | |||||
Equity-based compensation plans | |||||
Income tax benefit recognized for stock-based compensation | $ (2.1) | $ (2.4) | $ (0.9) | ||
Stock Award Activity | |||||
Nonvested, beginning of year (in shares) | 98,375 | 116,600 | 103,550 | 129,475 | |
Granted (in shares) | 57,625 | 49,800 | 78,175 | ||
Forfeited (in shares) | (13,977) | 0 | (31,326) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other | 57,914 | 36,750 | (27,874) | ||
Vested (in shares) | (119,787) | (73,500) | (44,900) | ||
Nonvested, end of year (in shares) | 98,375 | 116,600 | 103,550 | ||
Weighted-Average Per Share Fair Value | |||||
Nonvested, beginning of year (in dollars per share) | $ 89.11 | $ 60.71 | $ 49.83 | $ 54.94 | |
Granted (in dollars per share) | 97.79 | 79.01 | 47.07 | ||
Forfeited (in dollars per share) | 71.75 | 0 | 52.90 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | 47.50 | 54.84 | 54.71 | ||
Vested (in dollars per share) | 47.55 | 54.84 | 54.59 | ||
Nonvested, end of year (in dollars per share) | $ 89.11 | $ 60.71 | $ 49.83 | ||
Period over which shareholder return compares favorably to that of a competitor group of companies for purposes of calculating executive performance shares earned (in years) | 3 years | ||||
Potential payouts, low end of range (as a percent) | 0.00% | ||||
Potential payouts, high end of range (as a percent) | 200.00% | ||||
Fair value of shares vested | $ 7.6 | $ 6.5 | $ 2.4 | ||
Cash-based restricted stock awards | |||||
Equity-based compensation plans | |||||
Stock-based compensation expense | $ 0.4 | $ 0.5 | $ 0.9 | ||
Stock Options Outstanding and Exercisable | |||||
Unrecognized compensation expense | $ 0.5 | ||||
Weighted-average period for unrecognized compensation expense to be recognized (in years) | 1 year 5 months | ||||
Stock Award Activity | |||||
Granted (in shares) | 8,125 | 7,125 | 13,700 | ||
Weighted-Average Per Share Fair Value | |||||
Fair value of shares vested | $ 0.4 | $ 0.5 | $ 0.6 | ||
Total Shareholder Return [Member] | Performance Shares [Member] | |||||
Assumptions: | |||||
Expected term (in years) | 2 years 10 months 10 days | 2 years 10 months 10 days | 2 years 10 months 18 days | ||
Expected volatility (as a percent) | 32.27% | 34.09% | 33.28% | ||
Risk-free interest rate (as a percent) | 1.84% | 1.32% | 1.20% | ||
Weighted-Average Per Share Fair Value | |||||
Nonvested, beginning of year (in dollars per share) | $ 112.30 | $ 96.47 | $ 54.33 | ||
Nonvested, end of year (in dollars per share) | $ 112.30 | $ 96.47 | $ 54.33 | ||
Total Shareholder Return [Member] | Nonvested Performance Share Awards [Member] | |||||
Weighted-Average Per Share Fair Value | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percent | 200.00% | 200.00% | 80.00% | ||
Return on Invested Capital [Member] | Nonvested Performance Share Awards [Member] | |||||
Weighted-Average Per Share Fair Value | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percent | 191.00% |
Restructuring and Other Charg_3
Restructuring and Other Charges Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 21, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | $ 2.5 | $ 6.6 | $ 7 | $ 18.8 | $ 15.8 | $ 11.1 | $ 17.6 | $ 0.7 | $ 10.1 | $ 35.8 | $ 27.8 | |
Cost of Sales [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 6.6 | |||||||||||
Operating Expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 3.5 | |||||||||||
Employee Severance and Termination Benefits | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 3.5 | 27.3 | 0.9 | |||||||||
Property, Plant and Equipment Impairment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 0.4 | 4.3 | 26.9 | |||||||||
Other Restructuring Costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 6.2 | 4.2 | 0 | |||||||||
Access Equipment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 4.7 | 35.8 | 27.8 | |||||||||
Access Equipment [Member] | Cost of Sales [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 4.7 | 35.8 | 0.9 | |||||||||
Access Equipment [Member] | Operating Expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 0 | 0 | 26.9 | |||||||||
Access Equipment [Member] | Other Restructuring Costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 24.8 | 9.4 | ||||||||||
Commercial | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 5.4 | |||||||||||
Commercial | Cost of Sales [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 1.9 | |||||||||||
Commercial | Operating Expenses | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 3.5 | |||||||||||
Access Equipment Restructuring Plan 1 | Access Equipment [Member] | Employee Severance and Termination Benefits | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and Related Cost, Expected Cost | $ 3 | |||||||||||
Restructuring provision | 0.2 | 1.9 | $ 0.9 | |||||||||
Access Equipment Restructuring Plan 2 | Access Equipment [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 4.5 | $ 33.9 | ||||||||||
Commercial Segment Plan 1 | Commercial | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | 3.8 | |||||||||||
Commercial Segment Plan 2 | Commercial | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring provision | $ 1.6 |
Restructuring and Other Charg_4
Restructuring and Other Charges Restructuring and Other Changes (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning Balance | $ 20.8 | $ 0.9 | $ 20.8 | $ 0.9 | $ 0 | ||||||
Restructuring provision | $ 2.5 | $ 6.6 | $ 7 | 18.8 | $ 15.8 | $ 11.1 | $ 17.6 | 0.7 | 10.1 | 35.8 | 27.8 |
Utilized - cash | (27.1) | (13) | |||||||||
Utilized - noncash | (0.4) | (4.3) | (26.9) | ||||||||
Foreign currency translation | 0.1 | 1.4 | |||||||||
Ending Balance | 3.5 | 20.8 | 3.5 | 20.8 | 0.9 | ||||||
Employee Severance and Termination Benefits | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning Balance | 19.8 | 0.9 | 19.8 | 0.9 | 0 | ||||||
Restructuring provision | 3.5 | 27.3 | 0.9 | ||||||||
Utilized - cash | (21.3) | (9.7) | |||||||||
Utilized - noncash | 0 | 0 | 0 | ||||||||
Foreign currency translation | 0.1 | 1.3 | |||||||||
Ending Balance | 2.1 | 19.8 | 2.1 | 19.8 | 0.9 | ||||||
Property, Plant and Equipment Impairment | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning Balance | 0 | 0 | 0 | 0 | 0 | ||||||
Restructuring provision | 0.4 | 4.3 | 26.9 | ||||||||
Utilized - cash | 0 | 0 | |||||||||
Utilized - noncash | (0.4) | (4.3) | (26.9) | ||||||||
Foreign currency translation | 0 | 0 | |||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | ||||||
Other Restructuring Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning Balance | $ 1 | $ 0 | 1 | 0 | 0 | ||||||
Restructuring provision | 6.2 | 4.2 | 0 | ||||||||
Utilized - cash | (5.8) | (3.3) | |||||||||
Utilized - noncash | 0 | 0 | 0 | ||||||||
Foreign currency translation | 0 | 0.1 | |||||||||
Ending Balance | $ 1.4 | $ 1 | 1.4 | 1 | 0 | ||||||
Access Equipment [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 4.7 | 35.8 | 27.8 | ||||||||
Access Equipment [Member] | Other Restructuring Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 24.8 | 9.4 | |||||||||
Commercial | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 5.4 | ||||||||||
Cost of Sales [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 6.6 | ||||||||||
Cost of Sales [Member] | Access Equipment [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 4.7 | 35.8 | 0.9 | ||||||||
Cost of Sales [Member] | Commercial | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 1.9 | ||||||||||
Operating Expenses | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 3.5 | ||||||||||
Operating Expenses | Access Equipment [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | 0 | $ 0 | $ 26.9 | ||||||||
Operating Expenses | Commercial | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring provision | $ 3.5 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amounts included in accumulated other comprehensive income (loss) prior service costs and unrecognized net actuarial losses expected to be recognized in Pension and Supplemental Employee Retirement Plan | |||
Prior service cost included in accumulated other comprehensive income (loss) | $ 1.7 | ||
Prior service cost included in accumulated other comprehensive income (loss), net of tax | 1.3 | ||
Unrecognized net actuarial losses included in accumulated other comprehensive income (loss) | 0.6 | ||
Unrecognized net actuarial losses included in accumulated other comprehensive income (loss), net of tax | 0.4 | ||
Pension Plan, Defined Benefit | |||
Employee benefit plans | |||
Accumulated benefit obligation | 452.6 | $ 468.9 | |
Change in projected benefit obligation | |||
Benefit obligation at the beginning of the period | 473.7 | 482.3 | |
Service cost | 10.5 | 10.7 | $ 8.8 |
Interest cost | 17.9 | 17.8 | 18.3 |
Actuarial loss (gain) | (32.3) | (12.1) | |
Participant contributions | 0.1 | 0.2 | |
Plan amendments | 0 | 0 | |
Curtailments | 0 | 0.5 | |
Benefits paid | (13.4) | (26.6) | |
Currency translation adjustments | (0.7) | 0.9 | |
Benefit obligation at the end of the period | 455.8 | 473.7 | 482.3 |
Change in plan assets | |||
Fair value of plan assets at the beginning of the period | 367.8 | 334 | |
Actual return on plan assets | 25 | 43.5 | |
Company contributions | 8.8 | 17.7 | |
Participant contributions | 0.1 | 0.2 | |
Expenses paid | (3.2) | (1.9) | |
Benefits paid | (13.4) | (26.6) | |
Currency translation adjustments | (0.9) | 0.9 | |
Fair value of plan assets at the end of the period | 384.2 | 367.8 | 334 |
Funded status of plan - underfunded at September 30 | (71.6) | (105.9) | |
Recognized in consolidated balance sheet at September 30 | |||
Assets for Plan Benefits, Defined Benefit Plan | 4.3 | 0 | |
Accrued benefit liability (current liability) | (1.9) | (1.9) | |
Accrued benefit liability (long-term liability) | (74) | (104) | |
Total | (71.6) | (105.9) | |
Recognized in accumulated other comprehensive income (loss) as of September 30 (net of taxes) | |||
Net actuarial (loss) gain | (12.6) | (41.7) | |
Prior service (cost) benefit | (6.5) | (7.9) | |
Total | $ (19.1) | $ (49.6) | |
Weighted-average assumptions as of September 30 | |||
Discount rate (as a percent) | 4.18% | 3.85% | |
Expected return on plan assets (as a percent) | 5.50% | 5.93% | |
Accumulated benefit obligations in excess of plan assets | |||
Projected benefit obligation | $ 430.3 | $ 473.7 | |
Accumulated benefit obligation | 425.5 | 468.9 | |
Fair value of plan assets | 354.4 | 367.8 | |
Components of net periodic benefit cost | |||
Service cost | 10.5 | 10.7 | 8.8 |
Interest cost | 17.9 | 17.8 | 18.3 |
Expected return on plan assets | (21.4) | (17.9) | (17.4) |
Amortization of prior service cost (benefit) | 1.8 | 1.8 | 1.8 |
Curtailment/settlement | 0 | 0.5 | 0 |
Amortization of net actuarial loss (gain) | 1.9 | 4.5 | 2.3 |
Expenses paid | 3.2 | 1.9 | 2.2 |
Net periodic benefit cost | 13.9 | 19.3 | 16 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net actuarial loss (gain) | (35.9) | (37.8) | 36.6 |
Prior service cost (benefit) | 0 | 0 | 1.1 |
Amortization of prior service benefit (cost) | (1.8) | (1.8) | (1.8) |
Amortization of net actuarial (loss) gain | (1.9) | (4.5) | (2.3) |
Total | $ (39.6) | $ (44.1) | $ 33.6 |
Weighted-average assumptions | |||
Discount rate (as a percent) | 3.85% | 3.70% | 4.45% |
Expected return on plan assets (as a percent) | 5.93% | 5.78% | 6.03% |
Supplemental Executive Retirement Plans | |||
Employee benefit plans | |||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $ 2 | $ 2 | $ 1.8 |
Other Postretirement Benefits Plan [Member] | |||
Employee benefit plans | |||
Accumulated benefit obligation | 46.6 | 50 | |
Change in projected benefit obligation | |||
Benefit obligation at the beginning of the period | 50 | 47.2 | |
Service cost | 3.7 | 2.5 | 2 |
Interest cost | 1.8 | 1.6 | 1.5 |
Actuarial loss (gain) | (6.5) | 0.5 | |
Participant contributions | 0 | 0 | |
Plan amendments | (0.6) | 0 | |
Curtailments | 0 | 0 | |
Benefits paid | (1.8) | (1.8) | |
Currency translation adjustments | 0 | 0 | |
Benefit obligation at the end of the period | 46.6 | 50 | 47.2 |
Change in plan assets | |||
Fair value of plan assets at the beginning of the period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 1.8 | 1.8 | |
Participant contributions | 0 | 0 | |
Expenses paid | 0 | 0 | |
Benefits paid | (1.8) | (1.8) | |
Currency translation adjustments | 0 | 0 | |
Fair value of plan assets at the end of the period | 0 | 0 | 0 |
Funded status of plan - underfunded at September 30 | (46.6) | (50) | |
Recognized in consolidated balance sheet at September 30 | |||
Assets for Plan Benefits, Defined Benefit Plan | 0 | 0 | |
Accrued benefit liability (current liability) | (1.2) | (1.1) | |
Accrued benefit liability (long-term liability) | (45.4) | (48.9) | |
Total | (46.6) | (50) | |
Recognized in accumulated other comprehensive income (loss) as of September 30 (net of taxes) | |||
Net actuarial (loss) gain | 0.4 | (4.6) | |
Prior service (cost) benefit | 7.8 | 8 | |
Total | $ 8.2 | $ 3.4 | |
Weighted-average assumptions as of September 30 | |||
Discount rate (as a percent) | 4.20% | 3.71% | |
Components of net periodic benefit cost | |||
Service cost | $ 3.7 | $ 2.5 | 2 |
Interest cost | 1.8 | 1.6 | 1.5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (benefit) | (0.9) | (0.9) | (0.9) |
Curtailment/settlement | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | 0.1 | 0.2 | (0.1) |
Expenses paid | 0 | 0 | 0 |
Net periodic benefit cost | 4.7 | 3.4 | 2.5 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net actuarial loss (gain) | (6.5) | 0.5 | 8.3 |
Prior service cost (benefit) | (0.6) | 0 | 0 |
Amortization of prior service benefit (cost) | 0.9 | 0.9 | 0.9 |
Amortization of net actuarial (loss) gain | (0.1) | (0.2) | 0.1 |
Total | $ (6.3) | $ 1.2 | $ 9.3 |
Weighted-average assumptions | |||
Discount rate (as a percent) | 3.71% | 3.47% | 4.08% |
Health care cost trend rate | |||
Health care cost trend rate (as a percent) | 6.70% | ||
Assumed health care cost trend rate for next fiscal year (as a percent) | 5.00% | ||
Increase in accumulated postretirement benefit obligation with 100 basis points increase in health care cost trend rate | $ 11.5 | ||
Increase in net periodic postretirement benefit cost with 100 basis points increase in health care cost trend rate | 1.7 | ||
Decrease in accumulated postretirement benefit obligation with 100 basis points decrease in health care cost trend rate | 8.1 | ||
Decrease in net periodic postretirement benefit cost with 100 basis points decrease in health care cost trend rate | $ 1.1 |
Employee Benefit Plans - Costs
Employee Benefit Plans - Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Employee benefit plans | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year, Description | 10 | |||
Multi-Employer Pension Plans | ||||
Maximum Percent of Total Plan Contributions Contributed to Multi-employer Plan | 5.00% | 5.00% | 5.00% | |
Multiemployer plan period contributions | $ 1.3 | $ 1.2 | $ 1.2 | |
401(k) plans | ||||
Percentage contribution by employees for defined contribution 401(k) plans, low end of range (as a percent) | 2.00% | |||
Percentage contribution by employees for defined contribution 401(k) plans, high end of range (as a percent) | 100.00% | |||
Amounts expensed (income recognized) for matching and discretionary contributions | $ 42.9 | 37.6 | 35.6 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 0 | $ 0 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Frequency | N/A | N/A | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | [1] | 15 days | 15 days | |
Supplemental Executive Retirement Plans | ||||
401(k) plans | ||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $ 2 | $ 2 | 1.8 | |
Other Postretirement Benefits Plan [Member] | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | 0 | 0 | 0 | |
Estimated future benefit payment under company sponsored plans | ||||
2,019 | 1.2 | |||
2,020 | 1.7 | |||
2,021 | 2.2 | |||
2,022 | 2.8 | |||
2,023 | 3.2 | |||
2024-2028 | $ 21.1 | |||
Pension Plan, Defined Benefit | ||||
Plan assets, actual allocation | ||||
Total assets (as a percent) | 100.00% | |||
Total assets - at fair value | $ 384.2 | 367.8 | $ 334 | |
Fair value of plan assets that are classified in the fair value hierarchy | 194.2 | 178.2 | ||
Estimated future benefit payment under company sponsored plans | ||||
2,019 | 13 | |||
2,020 | 14.5 | |||
2,021 | 16 | |||
2,022 | 17.4 | |||
2,023 | 18.8 | |||
2024-2028 | 113.3 | |||
401(k) plans | ||||
Alternative Investment | [2] | $ 190 | 189.6 | |
Pension Plan, Defined Benefit | Other Investments [Member] | ||||
Plan assets, actual allocation | ||||
Total assets (as a percent) | 3.00% | |||
Pension Plan, Defined Benefit | Large-cap Equity Funds [Member] | ||||
Plan assets, actual allocation | ||||
Total assets (as a percent) | 26.00% | |||
Pension Plan, Defined Benefit | Fixed income | ||||
Plan assets, actual allocation | ||||
Total assets (as a percent) | 44.00% | |||
Pension Plan, Defined Benefit | U.S. companies (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | $ 83.6 | 76.5 | |
Pension Plan, Defined Benefit | International companies (b) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [4] | 13.1 | 11.4 | |
Pension Plan, Defined Benefit | Mutual Funds (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | 76.6 | 71.3 | |
Pension Plan, Defined Benefit | Government and agency bonds (c) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [5] | 6.1 | 5.4 | |
Pension Plan, Defined Benefit | Corporate bonds and notes (d) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [6] | 6.9 | 4.5 | |
Pension Plan, Defined Benefit | Money market funds (e) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [7] | $ 7.9 | 9.1 | |
Pension Plan, Defined Benefit | Mid-cap equity funds [Member] | ||||
Plan assets, actual allocation | ||||
Total assets (as a percent) | 11.00% | |||
Pension Plan, Defined Benefit | Small-cap equity funds [Member] | ||||
Plan assets, actual allocation | ||||
Total assets (as a percent) | 9.00% | |||
Pension Plan, Defined Benefit | Global equity fund [Member] | ||||
Plan assets, actual allocation | ||||
Total assets (as a percent) | 7.00% | |||
Pension Plan, Defined Benefit | Quoted Prices for Identical Assets (Level 1) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | $ 161.5 | 151.2 | ||
Pension Plan, Defined Benefit | Quoted Prices for Identical Assets (Level 1) | U.S. companies (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | 77 | 70.8 | |
Pension Plan, Defined Benefit | Quoted Prices for Identical Assets (Level 1) | International companies (b) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [4] | 0 | 0 | |
Pension Plan, Defined Benefit | Quoted Prices for Identical Assets (Level 1) | Mutual Funds (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | 76.6 | 71.3 | |
Pension Plan, Defined Benefit | Quoted Prices for Identical Assets (Level 1) | Government and agency bonds (c) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [5] | 0 | 0 | |
Pension Plan, Defined Benefit | Quoted Prices for Identical Assets (Level 1) | Corporate bonds and notes (d) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [6] | 0 | 0 | |
Pension Plan, Defined Benefit | Quoted Prices for Identical Assets (Level 1) | Money market funds (e) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [7] | 7.9 | 9.1 | |
Pension Plan, Defined Benefit | Significant Other Observable Inputs (Level 2) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | 32.7 | 27 | ||
Pension Plan, Defined Benefit | Significant Other Observable Inputs (Level 2) | U.S. companies (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | 6.6 | 5.7 | |
Pension Plan, Defined Benefit | Significant Other Observable Inputs (Level 2) | International companies (b) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [4] | 13.1 | 11.4 | |
Pension Plan, Defined Benefit | Significant Other Observable Inputs (Level 2) | Mutual Funds (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | 0 | 0 | |
Pension Plan, Defined Benefit | Significant Other Observable Inputs (Level 2) | Government and agency bonds (c) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [5] | 6.1 | 5.4 | |
Pension Plan, Defined Benefit | Significant Other Observable Inputs (Level 2) | Corporate bonds and notes (d) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [6] | 6.9 | 4.5 | |
Pension Plan, Defined Benefit | Significant Other Observable Inputs (Level 2) | Money market funds (e) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [7] | 0 | 0 | |
Pension Plan, Defined Benefit | Significant Unobservable Inputs (Level 3) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | 0 | 0 | ||
Pension Plan, Defined Benefit | Significant Unobservable Inputs (Level 3) | U.S. companies (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | 0 | 0 | |
Pension Plan, Defined Benefit | Significant Unobservable Inputs (Level 3) | International companies (b) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [4] | 0 | 0 | |
Pension Plan, Defined Benefit | Significant Unobservable Inputs (Level 3) | Mutual Funds (a) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [3] | 0 | 0 | |
Pension Plan, Defined Benefit | Significant Unobservable Inputs (Level 3) | Government and agency bonds (c) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [5] | 0 | 0 | |
Pension Plan, Defined Benefit | Significant Unobservable Inputs (Level 3) | Corporate bonds and notes (d) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [6] | 0 | 0 | |
Pension Plan, Defined Benefit | Significant Unobservable Inputs (Level 3) | Money market funds (e) | ||||
Plan assets, actual allocation | ||||
Total assets - at fair value | [7] | $ 0 | $ 0 | |
Minimum | ||||
401(k) plans | ||||
Employer contribution | 2.00% | |||
Minimum | Pension Plan, Defined Benefit | Fixed Income Funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.4 | |||
Minimum | Pension Plan, Defined Benefit | Other Investments [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0 | |||
Minimum | Pension Plan, Defined Benefit | Large-cap Equity Funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.2 | |||
Minimum | Pension Plan, Defined Benefit | Mid-cap equity funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.05 | |||
Minimum | Pension Plan, Defined Benefit | Small-cap equity funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.05 | |||
Minimum | Pension Plan, Defined Benefit | Global equity fund [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.05 | |||
Maximum | ||||
401(k) plans | ||||
Employer contribution | 6.00% | |||
Maximum | Pension Plan, Defined Benefit | Fixed Income Funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.5 | |||
Maximum | Pension Plan, Defined Benefit | Other Investments [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.1 | |||
Maximum | Pension Plan, Defined Benefit | Large-cap Equity Funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.3 | |||
Maximum | Pension Plan, Defined Benefit | Mid-cap equity funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.15 | |||
Maximum | Pension Plan, Defined Benefit | Small-cap equity funds [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.1 | |||
Maximum | Pension Plan, Defined Benefit | Global equity fund [Member] | ||||
Employee benefit plans | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.1 | |||
Non-Qualified | ||||
Estimated future benefit payment under company sponsored plans | ||||
2,019 | $ 1.9 | |||
2,020 | 1.9 | |||
2,021 | 1.8 | |||
2,022 | 1.8 | |||
2,023 | 1.9 | |||
2024-2028 | $ 9.8 | |||
[1] | Represents the maximum redemption period. A portion of the investment does not have any redemption period restrictions. | |||
[2] | These investments consist of privately placed funds that are valued based on NAV. NAV of the funds is based on the fair value of each funds underlying investments. In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy | |||
[3] | Primarily valued using a market approach based on the quoted market prices of identical instruments that are actively traded on public exchanges. | |||
[4] | Valuation model looks at underlying security “best” price, exchange rate for underlying security’s currency against the U.S. dollar and ratio of underlying security to American depository receipt. | |||
[5] | These investments consist of debt securities issued by the U.S. Treasury, U.S. government agencies and U.S. government-sponsored enterprises and have a variety of structures, coupon rates and maturities. These investments are considered to have low default risk as they are guaranteed by the U.S. government. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. | |||
[6] | These investments consist of debt obligations issued by a variety of private and public corporations. These are investment grade securities which historically have provided a steady stream of income. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. | |||
[7] | These investments largely consist of short-term investment funds and are valued using a market approach based on the quoted market prices of identical instruments. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pre-tax income (loss) from continuing operations | |||||
Domestic | $ 514.9 | $ 392.7 | $ 277.1 | ||
Foreign | 79.7 | 18.6 | 29.9 | ||
Income before income taxes and earnings of unconsolidated affiliates | 594.6 | 411.3 | 307 | ||
Current: | |||||
Federal | 92 | 104.9 | 103.6 | ||
Foreign | 22 | 13.5 | 3.2 | ||
State | 12.9 | 1 | 2.6 | ||
Total current | 126.9 | 119.4 | 109.4 | ||
Deferred: | |||||
Federal | 5.4 | 6.6 | (18.5) | ||
Foreign | (5.5) | 4.2 | 2 | ||
State | (3) | (3) | (0.5) | ||
Total deferred | (3.1) | 7.8 | (17) | ||
Provision for income taxes | 123.8 | 127.2 | 92.4 | ||
Allocated to Other Comprehensive Income (Loss) | |||||
Deferred federal, state and foreign | $ 11 | $ 15.1 | $ (14.2) | ||
Effective Rate Reconciliation | |||||
U.S. federal tax rate | 35.00% | 21.00% | 24.50% | 35.00% | 35.00% |
State income taxes, net | 2.10% | 1.30% | 1.30% | ||
Foreign taxes | 1.00% | 0.60% | (1.70%) | ||
Valuation allowance | (1.40%) | 0.50% | (0.60%) | ||
Domestic tax credits | (2.10%) | (4.20%) | (1.50%) | ||
Manufacturing deduction | (1.60%) | (2.80%) | (3.00%) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | (0.70%) | (1.30%) | (0.00%) | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (5.10%) | 0.00% | 0.00% | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 3.30% | 0.00% | 0.00% | ||
Other, net | 0.80% | 1.80% | 0.60% | ||
Effective income tax rate | 20.80% | 30.90% | 30.10% | ||
Deferred tax assets: | |||||
Other long-term liabilities | $ 20.5 | $ 20.5 | $ 81 | ||
Losses and credits | 33.5 | 33.5 | 31.2 | ||
Accrued warranty | 22.1 | 22.1 | 31.8 | ||
Other current liabilities | 17 | 17 | 24.5 | ||
Payroll-related obligations | 22.7 | 22.7 | 34.9 | ||
Receivables | 1.7 | 1.7 | 7 | ||
Other | 6.2 | 6.2 | 12.4 | ||
Gross deferred tax assets | 123.7 | 123.7 | 222.8 | ||
Less valuation allowance | (2.1) | (2.1) | (10.4) | ||
Deferred tax assets | 121.6 | 121.6 | 212.4 | ||
Deferred tax liabilities: | |||||
Intangible assets | 89.1 | 89.1 | 154.8 | ||
Property, plant and equipment | 41.4 | 41.4 | 52.4 | ||
Inventories | 12.5 | 12.5 | 17.6 | ||
Other | 2.4 | 2.4 | 3.6 | ||
Deferred tax liabilities | 145.4 | 145.4 | 228.4 | ||
Classification of deferred tax liability in consolidated balance sheets | |||||
Deferred Tax Assets, Net, Noncurrent | 9.7 | 9.7 | 4.2 | ||
Non-current net deferred tax liability | (33.5) | (33.5) | (20.2) | ||
Deferred Tax Liabilites, Net | $ (23.8) | $ (23.8) | $ (16) |
Income Taxes - Additional infor
Income Taxes - Additional information regarding Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | |||||
Deferred Tax Assets, Valuation Allowance | $ 2.1 | $ 2.1 | $ 10.4 | ||
Foreign Earnings Reinvested, Income taxes on Undistributed Earnings | $ 41.8 | $ 41.8 | |||
U.S. federal tax rate | 35.00% | 21.00% | 24.50% | 35.00% | 35.00% |
Tax Cuts and Jobs Act, Change in Tax Rate, Income Tax Expense (Benefit) | $ (30.2) | ||||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | 19.5 | ||||
Discrete tax benefits | $ 21.7 | $ 20.1 | $ 7.5 | ||
Income Tax Expense (Benefit), Discrete Items, Percentage of Pre-Tax Income | 3.60% | 4.90% | 2.40% | ||
Foreign Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards | $ 36.3 | $ 36.3 | |||
Tax Credit Carryforwards, Foreign Expiration Period, Minimum | 7 years | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 9.4 | $ 9.4 | |||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards | 227.5 | 227.5 | |||
Tax Credit Carryforward, Amount | 22.9 | 22.9 | |||
Deferred Tax Assets, Tax Credit Carryforwards | 14.9 | 14.9 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 9.2 | 9.2 | |||
Operating Loss Carryforwards, Valuation Allowance | $ 2.1 | $ 2.1 |
Income Taxes - Other Additional
Income Taxes - Other Additional Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance at beginning of year | $ 37.2 | $ 37.4 | $ 27 |
Additions for tax positions related to current year | 4.2 | 1.2 | 7.6 |
Additions for tax positions related to prior years | 5.4 | 6 | 8.4 |
Reductions for tax positions of prior years | (7.1) | (5.5) | (1.1) |
Settlements | (4.1) | 0 | (3) |
Lapse of statute of limitations | (1.9) | (1.9) | (1.5) |
Balance at end of year | 33.7 | 37.2 | 37.4 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 3.2 | ||
Net unrecognized tax benefits, excluding interest and penalties that would affect the Company's net income if recognized | 18.2 | ||
Accruals for payment of interest and penalties | 5 | 9.8 | |
Interest and penalties | $ (3.7) | $ (0.4) | $ (1.2) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Year | $ (125) | $ (175) | $ (144.4) |
Other comprehensive income (loss) before reclassifications | 16.1 | 46 | (32.7) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2.1 | 4 | 2.1 |
Total other comprehensive income (loss), net of tax | 18.2 | 50 | (30.6) |
Accumulated Other Comprehensive Income (Loss), End of Year | (106.8) | (125) | (175) |
Employee Pension and Postretirement Benefits, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Year | (46.2) | (73.9) | (46.4) |
Other comprehensive income (loss) before reclassifications | 33.1 | 23.7 | (29.5) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2.2 | 4 | 2 |
Total other comprehensive income (loss), net of tax | 35.3 | 27.7 | (27.5) |
Accumulated Other Comprehensive Income (Loss), End of Year | (10.9) | (46.2) | (73.9) |
Cumulative Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Year | (78.6) | (101.1) | (98.1) |
Other comprehensive income (loss) before reclassifications | (17.6) | 22.5 | (3) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | (17.6) | 22.5 | (3) |
Accumulated Other Comprehensive Income (Loss), End of Year | (96.2) | (78.6) | (101.1) |
Derivatives Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Year | (0.2) | 0 | 0.1 |
Other comprehensive income (loss) before reclassifications | 0.6 | (0.2) | (0.2) |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.1) | 0 | 0.1 |
Total other comprehensive income (loss), net of tax | 0.5 | (0.2) | (0.1) |
Accumulated Other Comprehensive Income (Loss), End of Year | $ 0.3 | $ (0.2) | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2018 | [1] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [4] | Sep. 30, 2017 | [5] | Jun. 30, 2017 | [6] | Mar. 31, 2017 | [7] | Dec. 31, 2016 | [8] | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amortization of employee pension and postretirement benefits items | |||||||||||||||||||
Income before income taxes and earnings of unconsolidated affiliates | $ 594.6 | $ 411.3 | $ 307 | ||||||||||||||||
Tax benefit | (123.8) | (127.2) | (92.4) | ||||||||||||||||
Net income | $ 151.3 | $ 153.4 | $ 110.8 | $ 56.4 | $ 93.5 | $ 128.6 | $ 44.3 | $ 19.2 | 471.9 | 285.6 | 216.4 | ||||||||
Employee Pension and Postretirement Benefits, Net of Tax | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||||||||
Amortization of employee pension and postretirement benefits items | |||||||||||||||||||
Amortization of prior service benefit (cost) | 0.9 | 0.9 | 0.9 | ||||||||||||||||
Actuarial losses | 2 | 4.7 | 2.2 | ||||||||||||||||
Curtailment/settlement | 0 | 0.5 | 0 | ||||||||||||||||
Income before income taxes and earnings of unconsolidated affiliates | 2.9 | 6.1 | 3.1 | ||||||||||||||||
Tax benefit | (0.7) | (2.1) | (1.1) | ||||||||||||||||
Net income | $ 2.2 | $ 4 | $ 2 | ||||||||||||||||
[1] | The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ($2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ($15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ($4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ($1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million. | ||||||||||||||||||
[2] | The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ($5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ($7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million. | ||||||||||||||||||
[3] | The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ($5.8 million after-tax) in the access equipment and commercial segments. | ||||||||||||||||||
[4] | The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ($14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million. | ||||||||||||||||||
[5] | The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||
[6] | The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||
[7] | The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ($14.0 million after-tax) in the access equipment segment. | ||||||||||||||||||
[8] | The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ($0.4 million after-tax) in the access equipment segment. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2018 | [1] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [4] | Sep. 30, 2017 | [5] | Jun. 30, 2017 | [6] | Mar. 31, 2017 | [7] | Dec. 31, 2016 | [8] | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amount attributable to Oshkosh Corporation common shareholders: | |||||||||||||||||||
Net income | $ 151.3 | $ 153.4 | $ 110.8 | $ 56.4 | $ 93.5 | $ 128.6 | $ 44.3 | $ 19.2 | $ 471.9 | $ 285.6 | $ 216.4 | ||||||||
Weighted-average common shares outstanding (in shares) | 74,001,582 | 74,674,115 | 73,570,020 | ||||||||||||||||
Dilutive stock options and other equity-based compensation awards (in shares) | 980,417 | 1,115,930 | 862,898 | ||||||||||||||||
Diluted weighted-average common shares outstanding (in shares) | 74,981,999 | 75,790,045 | 74,432,918 | ||||||||||||||||
[1] | The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ($2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ($15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ($4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ($1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million. | ||||||||||||||||||
[2] | The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ($5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ($7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million. | ||||||||||||||||||
[3] | The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ($5.8 million after-tax) in the access equipment and commercial segments. | ||||||||||||||||||
[4] | The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ($14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million. | ||||||||||||||||||
[5] | The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||
[6] | The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||
[7] | The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ($14.0 million after-tax) in the access equipment segment. | ||||||||||||||||||
[8] | The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ($0.4 million after-tax) in the access equipment segment. |
Earnings Per Share Antidilutive
Earnings Per Share Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Compensation Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options (in shares) | 253,238 | 381,350 | 224,200 |
Contingencies, Significant Es_3
Contingencies, Significant Estimates and Concentrations (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2017CAD ($) | |
Loss contingencies | |||||
Approximate percentage of workforce covered under collective bargaining agreements (as a percent) | 25.00% | 25.00% | |||
Significant portion of revenue from DoD | |||||
DoD | $ 1,648.4 | $ 1,314.6 | $ 1,205 | ||
Foreign military sales | 28 | 32.1 | 1.8 | ||
Total DoD sales | $ 1,676.4 | $ 1,346.7 | $ 1,206.8 | ||
Percentage of maximum sales not accounted for by single customer (as a percent) | 10.00% | 10.00% | 10.00% | ||
Personal Injury Actions and Other | |||||
Loss contingencies | |||||
Reserve for loss contingencies | $ 36 | $ 36 | $ 39.1 | ||
Maximum self-insurance available per claim | 5 | ||||
Performance and specialty bonds | |||||
Loss contingencies | |||||
Commitments and contingencies | 599.2 | 599.2 | 598.4 | ||
Standby letters of credit | |||||
Loss contingencies | |||||
Commitments and contingencies | 91.1 | 91.1 | $ 96.9 | ||
Defense | |||||
Loss contingencies | |||||
Litigation compensation recommendation | $ 25.3 | ||||
Former Gain Contingency, Recognized in Current Period | 19 | 19 | |||
Commercial | |||||
Loss contingencies | |||||
Gain on Business Interruption Insurance Recovery | $ 6.6 | $ 6.6 |
Business Segment Information (D
Business Segment Information (Details) - segment | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting [Abstract] | ||||
Number of reportable segments of entity (in segments) | 4 | 4 | ||
Net sales | Customer concentration | Defense | DoD | ||||
Business Segment Information | ||||
Percentage of sales accounted for by Department of Defense (as a percent) | 89.70% | 70.60% | 86.10% |
Business Segment Information _2
Business Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||||||||||||
Business Segment Information | |||||||||||||||||||||||
Gain (Loss) on Disposition of Business | $ 1.4 | ||||||||||||||||||||||
Net sales | $ 2,057 | [1] | $ 2,175.8 | [2] | $ 1,886.4 | [3] | $ 1,586.3 | [4] | $ 1,963 | [5] | $ 2,036.9 | [6] | $ 1,618.3 | [7] | $ 1,211.4 | [8] | 7,705.5 | $ 6,829.6 | $ 6,279.2 | ||||
Restructuring provision | 2.5 | 6.6 | 7 | 18.8 | 15.8 | 11.1 | 17.6 | 0.7 | 10.1 | 35.8 | 27.8 | ||||||||||||
Gain (Loss) on Extinguishment of Debt | (9.9) | (10.3) | 0 | 0 | |||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||
Operating income (loss) | 201.4 | [1] | $ 222.4 | [2] | $ 155.9 | [3] | $ 73.8 | [4] | $ 134.5 | [5] | $ 211.9 | [6] | $ 80.4 | [7] | $ 36.2 | [8] | 653.5 | 463 | 364 | ||||
Interest Income (Expense), Net | (55.6) | [9] | (54.9) | (58.3) | |||||||||||||||||||
Miscellaneous other income (expense) | (3.3) | 3.2 | 1.3 | ||||||||||||||||||||
Income before income taxes and earnings of unconsolidated affiliates | 594.6 | 411.3 | 307 | ||||||||||||||||||||
Depreciation and amortization | 120.5 | 130.3 | 128.8 | ||||||||||||||||||||
Capital expenditures | 100.1 | 113.2 | 127.3 | ||||||||||||||||||||
Access equipment | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 3,776.8 | 3,026.4 | 3,012.4 | ||||||||||||||||||||
Restructuring provision | 4.7 | 35.8 | 27.8 | ||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||
Operating income (loss) | [10] | 387.8 | 259.1 | 263.4 | |||||||||||||||||||
Depreciation and amortization | 61.1 | 72.1 | 77 | ||||||||||||||||||||
Capital expenditures | [11] | 34.2 | 51.4 | 52.5 | |||||||||||||||||||
Access equipment | Aerial work platforms | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 2,017.2 | 1,629.6 | 1,539.5 | ||||||||||||||||||||
Access equipment | Telehandlers | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 948.9 | 661.8 | 773.9 | ||||||||||||||||||||
Access equipment | Other | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 810.7 | 735 | 699 | ||||||||||||||||||||
Defense | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 1,827.3 | 1,818.6 | 1,349.3 | ||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||
Operating income (loss) | 222.9 | [12] | 207.9 | 122.5 | |||||||||||||||||||
Depreciation and amortization | 15.2 | 14.5 | 11.1 | ||||||||||||||||||||
Capital expenditures | 29.1 | 31.9 | 22.2 | ||||||||||||||||||||
Fire & emergency | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 1,053.6 | 1,015.4 | 941.5 | ||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||
Operating income (loss) | 137.2 | 104.2 | 67 | ||||||||||||||||||||
Depreciation and amortization | 9.5 | 9.4 | 9.7 | ||||||||||||||||||||
Capital expenditures | 12.8 | 7.2 | 7.2 | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Gain (Loss) on Disposition of Business | $ 1.4 | ||||||||||||||||||||||
Net sales | 1,046.8 | 964.4 | 976 | ||||||||||||||||||||
Restructuring provision | 5.4 | ||||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||
Operating income (loss) | 67.5 | [13] | 43.8 | 67.6 | |||||||||||||||||||
Depreciation and amortization | 12.9 | 12.7 | 12 | ||||||||||||||||||||
Capital expenditures | 12 | 10.9 | [11] | 10 | [11] | ||||||||||||||||||
Commercial | Concrete placement | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 491.8 | 474 | 463.6 | ||||||||||||||||||||
Commercial | Refuse collection | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 438.3 | 391.1 | 409.1 | ||||||||||||||||||||
Commercial | Other | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 116.7 | 99.3 | 103.3 | ||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||
Operating income (loss) | (161.9) | (152) | (156.5) | ||||||||||||||||||||
Intersegment eliminations | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 1 | 4.8 | 0 | ||||||||||||||||||||
Operating income (loss) from continuing operations: | |||||||||||||||||||||||
Depreciation and amortization | 21.8 | 21.6 | 19 | ||||||||||||||||||||
Capital expenditures | 12 | 11.8 | 35.4 | [14] | |||||||||||||||||||
Operating Segments | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 7,705.5 | 6,829.6 | 6,279.2 | ||||||||||||||||||||
Operating Segments | Access equipment | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 3,776.8 | 3,026.4 | 3,012.4 | ||||||||||||||||||||
Operating Segments | Access equipment | Aerial work platforms | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 2,017.2 | 1,629.6 | 1,539.5 | ||||||||||||||||||||
Operating Segments | Access equipment | Telehandlers | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 948.9 | 661.8 | 773.9 | ||||||||||||||||||||
Operating Segments | Access equipment | Other | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 810.7 | 735 | 699 | ||||||||||||||||||||
Operating Segments | Defense | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 1,828.9 | 1,820.1 | 1,351.1 | ||||||||||||||||||||
Operating Segments | Fire & emergency | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 1,069.7 | 1,030.9 | 953.3 | ||||||||||||||||||||
Operating Segments | Commercial | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 1,054.7 | 970.3 | 979.2 | ||||||||||||||||||||
Operating Segments | Commercial | Concrete placement | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 491.8 | 474 | 463.6 | ||||||||||||||||||||
Operating Segments | Commercial | Refuse collection | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 438.3 | 391.1 | 409.1 | ||||||||||||||||||||
Operating Segments | Commercial | Other | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 124.6 | 105.2 | 106.5 | ||||||||||||||||||||
Operating Segments | Intersegment eliminations | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | (24.6) | (18.1) | (16.8) | ||||||||||||||||||||
Intersegment eliminations | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Intersegment eliminations | Access equipment | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Intersegment eliminations | Access equipment | Aerial work platforms | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Intersegment eliminations | Access equipment | Telehandlers | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Intersegment eliminations | Access equipment | Other | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Intersegment eliminations | Defense | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 1.6 | 1.5 | 1.8 | ||||||||||||||||||||
Intersegment eliminations | Fire & emergency | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 16.1 | 15.5 | 11.8 | ||||||||||||||||||||
Intersegment eliminations | Commercial | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 7.9 | 5.9 | 3.2 | ||||||||||||||||||||
Intersegment eliminations | Commercial | Concrete placement | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Intersegment eliminations | Commercial | Refuse collection | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Intersegment eliminations | Commercial | Other | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | 7.9 | 5.9 | 3.2 | ||||||||||||||||||||
Intersegment eliminations | Intersegment eliminations | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Net sales | (25.6) | (22.9) | (16.8) | ||||||||||||||||||||
Cost of Sales [Member] | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Restructuring provision | 6.6 | ||||||||||||||||||||||
Cost of Sales [Member] | Access equipment | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Restructuring provision | 4.7 | 35.8 | 0.9 | ||||||||||||||||||||
Cost of Sales [Member] | Commercial | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Restructuring provision | 1.9 | ||||||||||||||||||||||
Interest Expense [Member] | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | (9.9) | ||||||||||||||||||||||
Other Restructuring Costs | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Restructuring provision | 6.2 | 4.2 | 0 | ||||||||||||||||||||
Other Restructuring Costs | Access equipment | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Restructuring provision | 24.8 | 9.4 | |||||||||||||||||||||
Employee Severance and Termination Benefits | |||||||||||||||||||||||
Business Segment Information | |||||||||||||||||||||||
Restructuring provision | $ 3.5 | $ 27.3 | $ 0.9 | ||||||||||||||||||||
[1] | The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ($2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ($15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ($4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ($1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million. | ||||||||||||||||||||||
[2] | The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ($5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ($7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million. | ||||||||||||||||||||||
[3] | The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ($5.8 million after-tax) in the access equipment and commercial segments. | ||||||||||||||||||||||
[4] | The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ($14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million. | ||||||||||||||||||||||
[5] | The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||||||
[6] | The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||||||
[7] | The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ($14.0 million after-tax) in the access equipment segment. | ||||||||||||||||||||||
[8] | The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ($0.4 million after-tax) in the access equipment segment. | ||||||||||||||||||||||
[9] | Fiscal 2018 results include $9.9 million in debt extinguishment costs. | ||||||||||||||||||||||
[10] | Fiscal 2018 results include $4.7 million of restructuring costs and $24.8 million of operating expenses related to restructuring plans. Fiscal 2017 results include $35.8 million of restructuring costs and $9.4 million of operating expenses related to restructuring plans. Fiscal 2016 results include a $26.9 million asset impairment charge and a $0.9 million workforce reduction charge. | ||||||||||||||||||||||
[11] | Capital expenditures include both the purchase of property, plant and equipment and equipment held for rental. | ||||||||||||||||||||||
[12] | Fiscal 2018 results include a $19.0 million gain for a litigation settlement. See Note 21 of the Notes to Consolidated Financial Statements for additional details regarding the settlement. | ||||||||||||||||||||||
[13] | Fiscal 2018 results include $5.4 million of restructuring costs, a business interruption insurance gain of $6.6 million and a loss on the sale of a small product line of $1.4 million. | ||||||||||||||||||||||
[14] | Fiscal 2016 includes capital expenditures for an enterprise-wide information system and the corporate-led shared manufacturing facility in Mexico that supports multiple operating segments. |
Business Segment Information _3
Business Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [4] | Sep. 30, 2017 | Jun. 30, 2017 | [6] | Mar. 31, 2017 | [7] | Dec. 31, 2016 | [8] | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | $ 2,057 | [1] | $ 2,175.8 | $ 1,886.4 | $ 1,586.3 | $ 1,963 | [5] | $ 2,036.9 | $ 1,618.3 | $ 1,211.4 | $ 7,705.5 | $ 6,829.6 | $ 6,279.2 | |||||||
Identifiable assets | 5,294.2 | 5,098.9 | 5,294.2 | 5,098.9 | ||||||||||||||||
U.S. | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 6,177.8 | 5,094.8 | 4,756.6 | |||||||||||||||||
Other North America | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 311.8 | 191.6 | 219.5 | |||||||||||||||||
Europe, Africa and Middle East | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 851.8 | 1,146.9 | 905.5 | |||||||||||||||||
Rest of the world | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 364.1 | 396.3 | 397.6 | |||||||||||||||||
Access equipment | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 3,776.8 | 3,026.4 | 3,012.4 | |||||||||||||||||
Identifiable assets | 2,829 | 2,692.6 | 2,829 | 2,692.6 | ||||||||||||||||
Access equipment | U.S. | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 2,207.2 | 1,905.5 | 2,207.2 | 1,905.5 | ||||||||||||||||
Access equipment | Europe | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 406.6 | 541 | 406.6 | 541 | ||||||||||||||||
Access equipment | Rest of the world | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 215.2 | 246.1 | 215.2 | 246.1 | ||||||||||||||||
Defense | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 1,827.3 | 1,818.6 | 1,349.3 | |||||||||||||||||
Identifiable assets | 829.3 | 782.1 | 829.3 | 782.1 | ||||||||||||||||
Defense | U.S. | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 824.2 | 775.1 | 824.2 | 775.1 | ||||||||||||||||
Defense | Rest of the world | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 5.1 | 7 | 5.1 | 7 | ||||||||||||||||
Fire & emergency | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 1,053.6 | 1,015.4 | 941.5 | |||||||||||||||||
Fire & emergency | U.S. | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 564.9 | 552.6 | 564.9 | 552.6 | ||||||||||||||||
Commercial | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Net sales | 1,046.8 | 964.4 | $ 976 | |||||||||||||||||
Identifiable assets | 409.7 | 419.6 | 409.7 | 419.6 | ||||||||||||||||
Commercial | U.S. | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 364.3 | 377.3 | 364.3 | 377.3 | ||||||||||||||||
Commercial | Rest of the world | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 45.4 | 42.3 | 45.4 | 42.3 | ||||||||||||||||
Corporate | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | 661.3 | 652 | 661.3 | 652 | ||||||||||||||||
Corporate | U.S. | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | [9] | 548.6 | 543.9 | 548.6 | 543.9 | |||||||||||||||
Corporate | Rest of the world | ||||||||||||||||||||
Revenue and assets by geography | ||||||||||||||||||||
Identifiable assets | [10] | $ 112.7 | $ 108.1 | $ 112.7 | $ 108.1 | |||||||||||||||
[1] | The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ($2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ($15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ($4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ($1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million. | |||||||||||||||||||
[2] | The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ($5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ($7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million. | |||||||||||||||||||
[3] | The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ($5.8 million after-tax) in the access equipment and commercial segments. | |||||||||||||||||||
[4] | The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ($14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million. | |||||||||||||||||||
[5] | The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ($11.5 million after-tax) in the access equipment segment. | |||||||||||||||||||
[6] | The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ($11.5 million after-tax) in the access equipment segment. | |||||||||||||||||||
[7] | The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ($14.0 million after-tax) in the access equipment segment. | |||||||||||||||||||
[8] | The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ($0.4 million after-tax) in the access equipment segment. | |||||||||||||||||||
[9] | Primarily includes cash and short-term investments. | |||||||||||||||||||
[10] | Primarily includes the corporate-led shared manufacturing facility in Mexico that supports multiple operating segments. |
Unaudited Quarterly Results (De
Unaudited Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2018 | [1] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [3] | Dec. 31, 2017 | [4] | Sep. 30, 2017 | [5] | Jun. 30, 2017 | [6] | Mar. 31, 2017 | [7] | Dec. 31, 2016 | [8] | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 2,057 | $ 2,175.8 | $ 1,886.4 | $ 1,586.3 | $ 1,963 | $ 2,036.9 | $ 1,618.3 | $ 1,211.4 | $ 7,705.5 | $ 6,829.6 | $ 6,279.2 | ||||||||
Gross income | 375.2 | 402.9 | 335.4 | 242.2 | 326.5 | 386.9 | 261.3 | 199.7 | 1,355.7 | 1,174.4 | 1,055.8 | ||||||||
Operating income | 201.4 | 222.4 | 155.9 | 73.8 | 134.5 | 211.9 | 80.4 | 36.2 | 653.5 | 463 | 364 | ||||||||
Net income | $ 151.3 | $ 153.4 | $ 110.8 | $ 56.4 | $ 93.5 | $ 128.6 | $ 44.3 | $ 19.2 | $ 471.9 | $ 285.6 | $ 216.4 | ||||||||
Earnings per share: | |||||||||||||||||||
Total earnings (loss) per share-basic (in dollars per share) | $ 2.08 | $ 2.08 | $ 1.49 | $ 0.75 | $ 1.25 | $ 1.72 | $ 0.59 | $ 0.26 | $ 6.38 | $ 3.82 | $ 2.94 | ||||||||
Earnings per share-diluted: | |||||||||||||||||||
Total earnings (loss) per share -diluted (in dollars per share) | 2.05 | 2.05 | 1.47 | 0.74 | 1.23 | 1.69 | 0.58 | 0.26 | $ 6.29 | $ 3.77 | $ 2.91 | ||||||||
Common Stock per share dividends (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | |||||||||||
[1] | The fourth quarter of fiscal 2018 was impacted by restructuring-related charges of $2.5 million ($2.1 million after-tax) in the access equipment and commercial segments, a gain of $19.0 million ($15.4 million after-tax) for a litigation settlement in the defense segment, business interruption insurance proceeds of $6.6 million ($4.9 million after-tax) in the commercial segment, a loss on the sale of a small product line of $1.4 million ($1.0 million after-tax) in the commercial segment and a tax benefit related to tax reform in the U.S. of $2.0 million. | ||||||||||||||||||
[2] | The third quarter of fiscal 2018 was impacted by restructuring-related charges of $6.6 million ($5.0 million after-tax) in the access equipment segment, debt extinguishment costs of $9.9 million ($7.7 million after-tax) and a tax benefit related to tax reform in the U.S. of $2.2 million. | ||||||||||||||||||
[3] | The second quarter of fiscal 2018 was impacted by restructuring-related charges of $7.0 million ($5.8 million after-tax) in the access equipment and commercial segments. | ||||||||||||||||||
[4] | The first quarter of fiscal 2018 was impacted by restructuring-related charges of $18.8 million ($14.2 million after-tax) in the access equipment and commercial segments and a tax benefit related to tax reform in the U.S. of $6.5 million. | ||||||||||||||||||
[5] | The fourth quarter of fiscal 2017 was impacted by restructuring-related charges of $15.8 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||
[6] | The third quarter of fiscal 2017 was impacted by restructuring-related charges of $11.1 million ($11.5 million after-tax) in the access equipment segment. | ||||||||||||||||||
[7] | The second quarter of fiscal 2017 was impacted by restructuring-related charges of $17.6 million ($14.0 million after-tax) in the access equipment segment. | ||||||||||||||||||
[8] | The first quarter of fiscal 2017 was impacted by restructuring-related charges of $0.7 million ($0.4 million after-tax) in the access equipment segment. |
Unaudited Quarterly Results Una
Unaudited Quarterly Results Unaudited Quarterly Results 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Restructuring provision | $ 2.5 | $ 6.6 | $ 7 | $ 18.8 | $ 15.8 | $ 11.1 | $ 17.6 | $ 0.7 | $ 10.1 | $ 35.8 | $ 27.8 |
Restructuring charge, net of tax | 2.1 | 5 | $ 5.8 | 14.2 | $ 11.5 | $ 11.5 | $ 14 | $ 0.4 | |||
Gain (Loss) on Disposition of Business | (1.4) | ||||||||||
Gain (Loss) on Extinguishment of Debt | (9.9) | (10.3) | $ 0 | $ 0 | |||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | (7.7) | ||||||||||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | (2) | $ (2.2) | $ (6.5) | ||||||||
Defense | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Former Gain Contingency, Recognized in Current Period | 19 | 19 | |||||||||
Gain Contingency, Net of Tax | 15.4 | 15.4 | |||||||||
Commercial | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Restructuring provision | 5.4 | ||||||||||
Gain on Business Interruption Insurance Recovery | 6.6 | $ 6.6 | |||||||||
Gain on Business Interruption Insurance Recovery, Net of Tax | 4.9 | ||||||||||
Gain (Loss) on Disposition of Business | (1.4) | ||||||||||
Gain on Disposition of a Business, Net of Tax | $ 1 |
SCHEDULE II - VALUATION & QUALI
SCHEDULE II - VALUATION & QUALIFYING ACCOUNTS (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Movement in Valuation Allowances and Reserves | ||||
Balance at Beginning of Year | $ 18.3 | $ 21.2 | $ 20.3 | |
Additions Charged to Expense | (6) | 0.8 | 2.7 | |
Reductions | [1] | (2.4) | (3.7) | (1.8) |
Balance at End of Year | $ 9.9 | $ 18.3 | $ 21.2 | |
[1] | Represents amounts written off to the reserve, net of recoveries and foreign currency translation adjustments. |