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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

FORM 10-Q
 
 Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
For the quarterly period ended December 31, 2021

OR

  Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
For the transition period from _____ to _____

Commission File Number. 001-33794 
HILLENBRAND, INC.
(Exact name of registrant as specified in its charter)
Indiana 26-1342272
(State of incorporation)(I.R.S. Employer Identification No.)
   
One Batesville Boulevard  
Batesville,Indiana 47006
(Address of principal executive offices) (Zip Code)
(812) 934-7500
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, without par valueHINew York Stock Exchange
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  Accelerated filer Emerging growth company
Non-accelerated filerSmaller reporting company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No  

The registrant had 72,813,915 shares of common stock, no par value per share, outstanding as of January 27, 2022.


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HILLENBRAND, INC.
INDEX TO FORM 10-Q
 
  Page
  
   
 
   
 
   
 
   
 
   
 
   
 
   
   
   
   
  
   
   
   
   
 
1

Table of Contents
PART IFINANCIAL INFORMATION

Item 1.                FINANCIAL STATEMENTS
 
Hillenbrand, Inc.
Consolidated Statements of Operations (Unaudited)
(in millions, except per share data)
 
Three Months Ended
December 31,
 20212020
Net revenue$728.4 $692.5 
Cost of goods sold491.1 448.3 
Gross profit237.3 244.2 
Operating expenses128.1 131.6 
Amortization expense13.7 13.6 
Loss (gain) on divestitures3.1 (31.6)
Interest expense17.9 21.2 
Other expense, net1.1 0.4 
Income before income taxes73.4 109.0 
Income tax expense23.3 31.3 
Consolidated net income50.1 77.7 
Less: Net income attributable to noncontrolling interests1.1 1.3 
Net income attributable to Hillenbrand$49.0 $76.4 
Net income attributable to Hillenbrand — per share of common stock:
Basic earnings per share$0.67 $1.01 
Diluted earnings per share$0.67 $1.01 
Weighted average shares outstanding (basic)72.7 75.3 
Weighted average shares outstanding (diluted)73.5 75.5 

See Condensed Notes to Consolidated Financial Statements


2

Table of Contents
Hillenbrand, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
(in millions)
 
Three Months Ended
December 31,
 20212020
Consolidated net income$50.1 $77.7 
Changes in other comprehensive income, net of tax:
Currency translation adjustment2.4 59.3 
Pension and postretirement (net of tax expense of $0.2 and $0.3)
0.7 1.2 
Change in net unrealized gain on derivative instruments (net of tax expense of $0.0 and $0.3)0.7 1.7 
Total changes in other comprehensive income, net of tax3.8 62.2 
Consolidated comprehensive income53.9 139.9 
Less: Comprehensive income attributable to noncontrolling interests1.0 1.4 
Comprehensive income attributable to Hillenbrand$52.9 $138.5 
 
See Condensed Notes to Consolidated Financial Statements

3

Table of Contents
Hillenbrand, Inc.
Consolidated Balance Sheets
(in millions)
December 31, 2021 (unaudited)September 30,
2021
ASSETS  
Current Assets  
Cash and cash equivalents$447.4 $446.1 
Trade receivables, net312.6 323.5 
Receivables from long-term manufacturing contracts133.8 121.9 
Inventories, net441.7 411.6 
Prepaid expenses and other current assets85.5 75.2 
Current assets held for sale 56.2 
Total current assets1,421.0 1,434.5 
Property, plant, and equipment, net287.9 295.1 
Operating lease right-of-use assets, net128.1 138.1 
Intangible assets, net900.2 913.9 
Goodwill1,165.9 1,168.6 
Other long-term assets91.5 64.7 
Total Assets$3,994.6 $4,014.9 
LIABILITIES  
Current Liabilities  
Trade accounts payable$389.4 $361.3 
Liabilities from long-term manufacturing contracts and advances304.3 296.6 
Accrued compensation83.8 123.5 
Current liabilities held for sale 18.9 
Other current liabilities251.9 234.8 
Total current liabilities1,029.4 1,035.1 
Long-term debt1,213.4 1,212.9 
Accrued pension and postretirement healthcare146.5 151.6 
Operating lease liabilities96.9 105.6 
Deferred income taxes190.4 206.7 
Other long-term liabilities63.4 70.8 
Total Liabilities2,740.0 2,782.7 
Commitments and contingencies (Note 15)
SHAREHOLDERS’ EQUITY  
Common stock, no par value (75.8 and 75.8 shares issued, 72.6 and 72.7 shares outstanding)  
Additional paid-in capital714.8 725.4 
Retained earnings699.1 666.2 
Treasury stock (3.2 and 3.1 shares, at cost)(138.9)(135.7)
Accumulated other comprehensive loss(42.4)(46.3)
Hillenbrand Shareholders’ Equity1,232.6 1,209.6 
Noncontrolling interests22.0 22.6 
Total Shareholders’ Equity1,254.6 1,232.2 
Total Liabilities and Shareholders’ Equity$3,994.6 $4,014.9 

 See Condensed Notes to Consolidated Financial Statements
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Hillenbrand, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(in millions)
Three Months Ended
December 31,
 20212020
Operating Activities  
Consolidated net income$50.1 $77.7 
Adjustments to reconcile consolidated net income to cash provided by operating activities:  
Depreciation and amortization27.9 29.3 
Deferred income taxes(12.3)14.4 
Amortization of deferred financing costs0.9 1.7 
Share-based compensation5.9 4.2 
Loss (gain) on divestitures3.1 (31.6)
Trade accounts receivable, net and receivables from long-term manufacturing contracts(4.1)(32.8)
Inventories, net(32.1)(2.1)
Prepaid expenses and other current assets(1.7)(5.1)
Trade accounts payable30.1 (5.5)
Liabilities from long-term manufacturing contracts and advances,
accrued compensation, and other current liabilities(28.3)9.3 
Income taxes payable12.7 8.1 
Defined benefit plan and postretirement funding(2.3)(2.3)
Defined benefit plan and postretirement expense0.5 0.8 
Other, net(5.9)0.1 
   Net cash provided by operating activities44.5 66.2 
Investing Activities  
Capital expenditures(9.7)(5.6)
Proceeds from divestitures, net of cash divested(4.5)59.4 
Net cash (used in) provided by investing activities(14.2)53.8 
Financing Activities  
Repayments on long-term debt (220.0)
Proceeds from revolving credit facilities 226.0 
Repayments on revolving credit facilities (163.0)
Payments of dividends on common stock(15.8)(16.1)
Repurchases of common stock(28.9) 
Proceeds from stock option exercises 14.6 3.2 
Payments for employee taxes on net settlement equity awards(5.7)(2.9)
Other, net(1.6)(1.3)
Net cash used in financing activities(37.4)(174.1)
Effect of exchange rates on cash and cash equivalents4.4 9.7 
Net cash flows(2.7)(44.4)
Cash, cash equivalents, and restricted cash:  
At beginning of period450.9 311.8 
At end of period$448.2 $267.4 
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:
December 31, 2021December 31, 2020
Cash and cash equivalents$447.4 $265.8 
Short-term restricted cash included in other current assets0.8 1.6 
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows$448.2 $267.4 
See Condensed Notes to Consolidated Financial Statements
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Hillenbrand, Inc.
Consolidated Statements of Shareholders’ Equity (Unaudited)
(in millions)
Three Months Ended December 31, 2021
Shareholders of Hillenbrand, Inc.
Common StockAdditional
Paid-in
Capital
Retained
Earnings
Treasury StockAccumulated
Other
Comprehensive
Loss
Noncontrolling
Interests
Total
SharesSharesAmount
Balance at September 30, 202175.8 $725.4 $666.2 3.1 $(135.7)$(46.3)$22.6 $1,232.2 
Total other comprehensive income (loss), net of tax— — — — — 3.9 (0.1)3.8 
Net income— — 49.0 — — — 1.1 50.1 
Repurchases of common stock— — — 0.6 (28.9)— — (28.9)
Issuance/retirement of stock for stock awards/options— (16.8)— (0.5)25.7 — — 8.9 
Share-based compensation— 5.9 — — — — — 5.9 
Dividends ($0.2175 per share)— 0.3 (16.1)— — — (1.6)(17.4)
Balance at December 31, 202175.8 $714.8 $699.1 3.2 $(138.9)$(42.4)$22.0 $1,254.6 

Three Months Ended December 31, 2020
Shareholders of Hillenbrand, Inc.
Common StockAdditional
Paid-in
Capital
Retained
Earnings
Treasury StockAccumulated
Other
Comprehensive
Loss
Noncontrolling
Interests
Total
SharesSharesAmount
Balance at September 30, 202075.8 $723.6 $481.4 1.0 $(43.2)$(102.8)$20.4 $1,079.4 
Total other comprehensive income (loss), net of tax— — — — — 62.1 0.1 62.2 
Net income— — 76.4 — — — 1.3 77.7 
Issuance/retirement of stock for stock awards/options— (10.9)— (0.3)11.2 — — 0.3 
Share-based compensation— 4.2 — — — — — 4.2 
Dividends ($0.2150 per share)— 0.3 (16.4)— — — (1.4)(17.5)
Balance at December 31, 202075.8 $717.2 $541.4 0.7 $(32.0)$(40.7)$20.4 $1,206.3 



See Condensed Notes to Consolidated Financial Statements

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Hillenbrand, Inc.
Condensed Notes to Consolidated Financial Statements (Unaudited)
(in millions, except share and per share data)
 
1.Background and Basis of Presentation
 
Hillenbrand, Inc. (the “Company” or “Hillenbrand”) is a global diversified industrial company with multiple leading brands that serve a wide variety of industries around the world.  The Company strives to provide superior return for our shareholders, exceptional value for our customers, and great professional opportunities for our employees, and to be responsible to our communities through deployment of the Hillenbrand Operating Model (“HOM”). The HOM is a consistent and repeatable framework designed to produce sustainable and predictable results.  The HOM describes the Company’s mission, vision, values, and mindset as leaders; applies our management practices in Strategy Management, Segmentation, Lean, Talent Development, and Acquisitions; and prescribes three steps (Understand, Focus, and Grow) designed to make the Company’s businesses both bigger and better.  The Company’s goal is to continue developing Hillenbrand as a world-class global diversified industrial company through the deployment of the HOM.

Hillenbrand’s portfolio is composed of three reportable operating segments. Advanced Process Solutions designs, develops, manufactures, and services highly engineered industrial equipment and systems around the world. Molding Technology Solutions is a global leader in highly engineered and customized equipment, systems, and service in plastic technology and processing. Batesville is a recognized leader in the death care industry in North America. “Hillenbrand,” the “Company,” “we,” “us,” “our,” and similar words refer to Hillenbrand and its subsidiaries unless context otherwise requires.
 
The accompanying unaudited Consolidated Financial Statements include the accounts of Hillenbrand and its subsidiaries.  They also include two subsidiaries where the Company’s ownership percentage is less than 100%.  The Company’s fiscal year ends on September 30.  Unless otherwise stated, references to years relate to fiscal years.
 
These unaudited Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements and therefore do not include all information required in accordance with United States generally accepted accounting principles (“GAAP”).  The unaudited Consolidated Financial Statements have been prepared on the same basis as, and should be read in conjunction with, the audited Consolidated Financial Statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended September 30, 2021, as filed with the SEC on November 17, 2021. In the opinion of management, these Consolidated Financial Statements reflect all adjustments necessary to present a fair statement of the Company’s consolidated financial position and the consolidated results of operations and cash flows as of the dates and for the periods presented and are normal and recurring in nature. The interim period results are subject to variation and are not necessarily indicative of the results of operations to be expected for the full fiscal year.
 
The preparation of the Consolidated Financial Statements in conformity with GAAP requires the Company 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 Consolidated Financial Statements and the reported amounts of net revenue and expenses during the period.  Actual results could differ from those estimates.  Examples of such estimates include, but are not limited to, revenue recognition under the over time method, and the establishment of reserves related to customer rebates, doubtful accounts, warranties, early-pay discounts, inventories, income taxes, litigation, self-insurance, and progress toward achievement of performance criteria under incentive compensation programs.

On March 11, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus (“COVID-19”) a global pandemic and recommended containment and mitigation measures worldwide, and the effects of the COVID-19 pandemic and such associated measures on management’s estimates and results of operations through December 31, 2021 are reflected in the Consolidated Financial Statements. Given the unprecedented nature of the ongoing COVID-19 pandemic, the Company cannot reasonably estimate the full extent of the impact that the COVID-19 pandemic will continue to have on its consolidated financial condition, and the consolidated results of operations, and cash flows in the foreseeable future. The ultimate impact of the COVID-19 pandemic on the Company is highly uncertain and will depend on future developments, and such impacts could exist for an extended period of time, even after the ongoing COVID-19 pandemic subsides or if variant strains of the virus further impact the global economy or the Company. Events and changes in circumstances arising after December 31, 2021, including those resulting from the ongoing impacts of the COVID-19 pandemic, will be reflected in management’s estimates for future periods in subsequent periodic filings.

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2.Summary of Significant Accounting Policies
 
The significant accounting policies used in preparing the Consolidated Financial Statements are consistent with the accounting policies described in the Company’s Annual Report on Form 10-K as of and for the year ended September 30, 2021, except as described below.

Recently Adopted Accounting Standards
 
In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intraperiod tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. ASU 2019-12 became effective for the Company’s fiscal year beginning on October 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Consolidated Financial Statements.

No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the Consolidated Financial Statements.

3.Revenue Recognition

Net revenue includes gross revenue less sales discounts, customer rebates, sales incentives, and product returns, all of which require the Company to make estimates for the portion of these allowances that have yet to be credited or paid to customers. The Company estimates these allowances using the expected value method, which is based upon historical rates and projections of customer purchases toward contractual rebate thresholds.

Contract balances

The balance in receivables from long-term manufacturing contracts at December 31, 2021 and September 30, 2021 was $133.8 and $121.9, respectively. The change was driven by the impact of net revenue recognized prior to billings. The balance in the liabilities from long-term manufacturing contracts and advances at December 31, 2021 and September 30, 2021 was $304.3 and $296.6, respectively, and consists primarily of cash payments received or due in advance of satisfying performance obligations. The revenue recognized for the three months ended December 31, 2021 and 2020 related to liabilities from long-term manufacturing contracts and advances as of September 30, 2021 and 2020 was $98.7 and $80.1, respectively. During the three months ended December 31, 2021 and 2020, the adjustments related to performance obligations satisfied in previous periods were immaterial.

Transaction price allocated to the remaining performance obligations
                                            
As of December 31, 2021, the aggregate amount of transaction price of remaining performance obligations for the Company, which corresponds to backlog as defined in Part I, Item 2 of this Form 10-Q, was $1,724.8. Approximately 77% of these performance obligations are expected to be satisfied over the next twelve months, and the remaining performance obligations, primarily within one to three years.

Disaggregation of revenue

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The following tables present net revenue by end market:
Three Months Ended December 31, 2021Three Months Ended December 31, 2020
Advanced Process SolutionsMolding Technology SolutionsBatesvilleTotalAdvanced Process SolutionsMolding Technology SolutionsBatesvilleTotal
End Market
  Plastics$235.0 $ $ $235.0 $194.7 $ $ $194.7 
  Automotive 49.6  49.6  36.5  36.5 
  Chemicals24.2   24.2 19.1   19.1 
  Consumer goods 39.7  39.7  39.0  39.0 
Food and pharmaceuticals21.8   21.8 22.8   22.8 
  Custom molders 38.3  38.3  38.9  38.9 
Packaging 35.2  35.2  31.7  31.7 
Construction 24.6  24.6  20.4  20.4 
  Minerals and mining12.1   12.1 11.9   11.9 
  Electronics 14.3  14.3  18.4  18.4 
  Medical 20.0  20.0  21.2  21.2 
  Death care  162.5 162.5   164.8 164.8 
  Other industrial24.0 27.1  51.1 42.3 30.8  73.1 
    Total$317.1 $248.8 $162.5 $728.4 $290.8 $236.9 $164.8 $692.5 
The following tables present net revenue by geography:
Three Months Ended December 31, 2021Three Months Ended December 31, 2020
Advanced Process SolutionsMolding Technology SolutionsBatesvilleTotalAdvanced Process SolutionsMolding Technology SolutionsBatesvilleTotal
Geography
Americas$63.6 $129.1 $162.5 $355.2 $82.1 $124.7 $164.8 $371.6 
Asia168.6 81.6  250.2 127.9 73.3  201.2 
Europe, the Middle East, and Africa84.9 38.1  123.0 80.8 38.9  119.7 
    Total$317.1 $248.8 $162.5 $728.4 $290.8 $236.9 $164.8 $692.5 



The following tables present net revenue by products and services:
Three Months Ended December 31, 2021Three Months Ended December 31, 2020
Advanced Process SolutionsMolding Technology SolutionsBatesvilleTotalAdvanced Process SolutionsMolding Technology SolutionsBatesvilleTotal
Products and Services
Equipment$231.5 $171.8 $ $403.3 $197.9 $155.1 $ $353.0 
Parts and services85.6 60.3  145.9 92.9 65.5  158.4 
Death care  162.5 162.5   164.8 164.8 
Other 16.7  16.7  16.3  16.3 
    Total$317.1 $248.8 $162.5 $728.4 $290.8 $236.9 $164.8 $692.5 


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The following tables present net revenue by timing of transfer:
Three Months Ended December 31, 2021Three Months Ended December 31, 2020
Advanced Process SolutionsMolding Technology SolutionsBatesvilleTotalAdvanced Process SolutionsMolding Technology SolutionsBatesvilleTotal
Timing of Transfer
Point in time$135.0 $246.1 $162.5 $543.6 $146.2 $236.9 $164.8 $547.9 
Over time182.1 2.7  184.8 144.6   144.6 
    Total$317.1 $248.8 $162.5 $728.4 $290.8 $236.9 $164.8 $692.5 


4.Acquisitions and Divestitures

Assets and liabilities held for sale

During the fourth quarter of 2020, the Company announced that it had initiated a plan to divest the TerraSource Global (“TerraSource”) and flow control businesses, which include the Red Valve business (“Red Valve”) which operated within the Advanced Process Solutions reportable operating segment, as these businesses were no longer considered a strategic fit with the Company’s long-term growth plan and operational objectives. As discussed below, the Company completed the sale of Red Valve on December 31, 2020 and TerraSource on October 22, 2021. The Company had determined that these businesses met the criteria to be classified as held for sale, and therefore reclassified the related assets and liabilities as held for sale on the Consolidated Balance Sheets.

The following is a summary of the major categories of assets and liabilities that have been classified as held for sale on the Consolidated Balance Sheet at September 30, 2021:

Cash and cash equivalents$3.5 
Trade receivables, net7.8 
Inventories12.0 
Property, plant and equipment, net12.0 
Operating lease right-of-use assets, net1.9 
Intangible assets, net49.5 
Goodwill 12.4 
Other assets4.2 
Valuation allowance on disposal group (1)
(47.1)
Total assets held for sale $56.2 
 
Trade accounts payable$5.2 
Liabilities from long-term manufacturing contracts and advances7.5 
Operating lease liabilities2.0 
Deferred income taxes1.9 
Other liabilities2.3 
Total liabilities held for sale$18.9 
(1)The Company adjusted the carrying value to fair value less costs to sell for certain assets held for sale during the year ended September 30, 2021. Those assets were sold during the three months ended December 31, 2021.

The Company determined that the exit from these businesses did not represent a strategic shift that had a major effect on its Consolidated Results of Operations, and therefore these businesses were not classified as discontinued operations. The results of operations up to the respective dates of sale for these businesses are included within the Advanced Process Solutions reportable operating segment for all periods presented in this quarterly report.
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Divestitures of Red Valve and TerraSource Global

On December 31, 2020, the Company completed the divestiture of Red Valve to DeZURIK, Inc. in a transaction valued at $63.0. The sale included cash proceeds received at closing of $59.4, including working capital adjustments, and a $5.0 note receivable, included within other long-term assets on the Consolidated Balance Sheet. The sale followed the Company’s previously announced intent to exit certain non-strategic, sub-scale businesses, resulting in Red Valve being classified as held for sale at September 30, 2020.

As a result of the Red Valve divestiture, the Company recorded a pre-tax gain of $31.6 in the Consolidated Statement of Operations during the three months ended December 31, 2020. The related tax effect resulted in tax expense of $3.8 and was included within income tax expense in the Consolidated Statement of Operations during the three months ended December 31, 2020. The Company incurred $2.9 of transaction costs associated with the sale during the three months ended December 31, 2020, which were recorded within operating expenses in the Consolidated Statement of Operations.

On October 22, 2021, the Company completed the divestiture of TerraSource pursuant to a Contribution Agreement (“Agreement”) between the Company and certain affiliated companies of industrial holding company Right Lane Industries (“RLI”). Under the terms of the Agreement, Hillenbrand contributed TerraSource and its subsidiaries to a newly formed entity, TerraSource Holdings, LLC ("Holdings"), with RLI obtaining majority ownership and full operational control of TerraSource. In exchange for contributing the TerraSource business, the Company received consideration in the form of a five-year note with initial principal amount of $25.6, subject to certain adjustments, and also retained a 49% equity interest in Holdings through one of the Company’s indirect wholly-owned subsidiaries. The fair value of the total consideration received by the Company was $27.7 and is recorded within other long-term assets in the Consolidated Balance Sheet.
As a result of the divestiture, the Company recorded a pre-tax loss, subject to customary post-closing adjustments, of $3.1 in the Consolidated Statement of Operations during the three months ended December 31, 2021. The Company incurred $0.4 of transaction costs associated with the divestiture during the three months ended December 31, 2021, which were recorded within operating expenses in the Consolidated Statement of Operations. TerraSource’s results of operations were included within the Advanced Process Solutions reportable operating segment until the completion of the divestiture on October 22, 2021. Subsequent to the divestiture, the Company’s equity interest in Holdings is accounted for under the equity method of accounting as prescribed by GAAP.


5.Supplemental Consolidated Balance Sheet Information
 
December 31,
2021
September 30,
2021
Allowance for doubtful accounts$26.8 $26.0 
Warranty reserves$24.5 $24.2 
Accumulated depreciation on property, plant, and equipment$389.9 $381.6 
Inventories, net:  
Raw materials and components$168.8 $153.1 
Work in process99.0 104.0 
Finished goods