Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v3.2.0.727
Condensed Consolidating Information
9 Months Ended
Jun. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Information
Condensed Consolidating Information
 
Certain 100% owned subsidiaries of Hillenbrand fully and unconditionally, jointly and severally, agreed to guarantee all of the indebtedness relating to our obligations under our revolving credit facility, term loan, senior unsecured notes, Series A Notes, and LG Facility.  The following are the condensed consolidating financial statements, including the guarantors, which present the statements of income, balance sheets, and cash flows of (i) the parent holding company, (ii) the guarantor subsidiaries, (iii) the non-guarantor subsidiaries, and (iv) eliminations necessary to present the information for Hillenbrand on a consolidated basis.

Condensed Consolidating Statements of Income
 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
225.9

 
$
222.4

 
$
(49.6
)
 
$
398.7

 
$

 
$
219.6

 
$
240.7

 
$
(43.5
)
 
$
416.8

Cost of goods sold

 
121.9

 
163.1

 
(25.2
)
 
259.8

 

 
113.5

 
172.2

 
(18.2
)
 
267.5

Gross profit

 
104.0

 
59.3

 
(24.4
)
 
138.9

 

 
106.1

 
68.5

 
(25.3
)
 
149.3

Operating expenses
9.7

 
60.9

 
39.4

 
(24.4
)
 
85.6

 
8.9

 
63.0

 
51.1

 
(25.3
)
 
97.7

Operating profit
(9.7
)
 
43.1

 
19.9

 

 
53.3

 
(8.9
)
 
43.1

 
17.4

 

 
51.6

Interest expense
5.2

 
0.2

 
0.3

 

 
5.7

 
4.6

 
0.1

 
0.9

 

 
5.6

Other income (expense), net
1.6

 
(2.8
)
 
(0.1
)
 

 
(1.3
)
 

 
(0.7
)
 
0.8

 

 
0.1

Equity in net income (loss) of subsidiaries
38.9

 
0.2

 

 
(39.1
)
 

 
39.3

 
2.7

 

 
(42.0
)
 

Income (loss) before income taxes
25.6

 
40.3

 
19.5

 
(39.1
)
 
46.3

 
25.8

 
45.0

 
17.3

 
(42.0
)
 
46.1

Income tax expense (benefit)
(6.5
)
 
15.0

 
5.3

 

 
13.8

 
(7.0
)
 
15.9

 
3.8

 

 
12.7

Consolidated net income
32.1

 
25.3

 
14.2

 
(39.1
)
 
32.5

 
32.8

 
29.1

 
13.5

 
(42.0
)
 
33.4

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.4

 

 
0.4

 

 

 
0.6

 

 
0.6

Net income (loss) (1)
$
32.1

 
$
25.3

 
$
13.8

 
$
(39.1
)
 
$
32.1

 
$
32.8

 
$
29.1

 
$
12.9

 
$
(42.0
)
 
$
32.8

Consolidated comprehensive income (loss)
$
55.9

 
$
26.2

 
$
38.5

 
$
(64.4
)
 
$
56.2

 
$
29.7

 
$
29.7

 
$
9.8

 
$
(38.9
)
 
$
30.3

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.3

 

 
0.3

 

 

 
0.6

 

 
0.6

Comprehensive income (loss) (2)
$
55.9

 
$
26.2

 
$
38.2

 
$
(64.4
)
 
$
55.9

 
$
29.7

 
$
29.7

 
$
9.2

 
$
(38.9
)
 
$
29.7

 
Nine Months Ended June 30, 2015
 
Nine Months Ended June 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
678.3

 
$
675.9

 
$
(149.4
)
 
$
1,204.8

 
$

 
$
632.3

 
$
693.1

 
$
(126.9
)
 
$
1,198.5

Cost of goods sold

 
355.4

 
498.1

 
(74.6
)
 
778.9

 

 
320.8

 
504.4

 
(49.8
)
 
775.4

Gross profit

 
322.9

 
177.8

 
(74.8
)
 
425.9

 

 
311.5

 
188.7

 
(77.1
)
 
423.1

Operating expenses
28.5

 
187.6

 
127.2

 
(74.8
)
 
268.5

 
29.7

 
188.2

 
150.8

 
(77.1
)
 
291.6

Operating profit
(28.5
)
 
135.3

 
50.6

 

 
157.4

 
(29.7
)
 
123.3

 
37.9

 

 
131.5

Interest expense
15.3

 
0.6

 
1.9

 

 
17.8

 
14.3

 
0.2

 
3.0

 

 
17.5

Other income (expense), net
(0.1
)
 
(3.4
)
 
(2.8
)
 

 
(6.3
)
 
0.1

 
8.7

 
0.9

 

 
9.7

Equity in net income (loss) of subsidiaries
113.9

 
5.4

 

 
(119.3
)
 

 
108.8

 
7.6

 

 
(116.4
)
 

Income (loss) before income taxes
70.0

 
136.7

 
45.9

 
(119.3
)
 
133.3

 
64.9

 
139.4

 
35.8

 
(116.4
)
 
123.7

Income tax expense (benefit)
(22.3
)
 
49.1

 
13.1

 

 
39.9

 
(21.2
)
 
49.0

 
7.6

 

 
35.4

Consolidated net income
92.3

 
87.6

 
32.8

 
(119.3
)
 
93.4

 
86.1

 
90.4

 
28.2

 
(116.4
)
 
88.3

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
1.1

 

 
1.1

 

 

 
2.2

 

 
2.2

Net income (loss) (1)
$
92.3

 
$
87.6

 
$
31.7

 
$
(119.3
)
 
$
92.3

 
$
86.1

 
$
90.4

 
$
26.0

 
$
(116.4
)
 
$
86.1

Consolidated comprehensive income (loss)
$
57.1

 
$
90.2

 
$
8.1

 
$
(97.4
)
 
$
58.0

 
$
95.0

 
$
92.4

 
$
35.1

 
$
(125.3
)
 
$
97.2

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.9

 

 
0.9

 

 

 
2.2

 

 
2.2

Comprehensive income (loss) (2)
$
57.1

 
$
90.2

 
$
7.2

 
$
(97.4
)
 
$
57.1

 
$
95.0

 
$
92.4

 
$
32.9

 
$
(125.3
)
 
$
95.0



(1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand















Condensed Consolidating Balance Sheets
 
June 30, 2015
 
September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and equivalents
$

 
$
8.5

 
$
37.1

 
$

 
$
45.6

 
$
0.4

 
$
10.6

 
$
47.0

 
$

 
$
58.0

Trade receivables, net

 
96.3

 
69.1

 

 
165.4

 

 
113.2

 
77.8

 

 
191.0

Unbilled receivables from long-term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
manufacturing contracts

 
12.2

 
126.2

 

 
138.4

 

 
4.0

 
145.3

 

 
149.3

Inventories

 
81.5

 
91.8

 
(2.7
)
 
170.6

 

 
69.7

 
101.8

 
(3.0
)
 
168.5

Deferred income taxes
13.9

 
12.5

 
3.7

 

 
30.1

 
10.6

 
17.3

 
2.6

 

 
30.5

Prepaid expense
3.5

 
6.7

 
11.5

 

 
21.7

 
2.5

 
4.9

 
11.6

 

 
19.0

Intercompany receivables
300.8

 
1,168.7

 
50.9

 
(1,520.4
)
 

 
291.0

 
1,189.9

 
5.3

 
(1,486.2
)
 

Other current assets
0.6

 
1.8

 
17.3

 
0.4

 
20.1

 
1.2

 
2.1

 
17.8

 
0.4

 
21.5

Total current assets
318.8

 
1,388.2

 
407.6

 
(1,522.7
)
 
591.9

 
305.7

 
1,411.7

 
409.2

 
(1,488.8
)
 
637.8

Property, plant and equipment, net
6.6

 
65.8

 
83.1

 

 
155.5

 
6.7

 
65.4

 
87.4

 

 
159.5

Intangible assets, net
2.3

 
177.8

 
287.6

 

 
467.7

 
2.5

 
186.1

 
321.9

 

 
510.5

Goodwill

 
211.7

 
337.2

 

 
548.9

 

 
211.7

 
359.0

 

 
570.7

Investment in consolidated subsidiaries
2,031.8

 
835.6

 

 
(2,867.4
)
 

 
2,000.2

 
644.0

 

 
(2,644.2
)
 

Other assets
15.5

 
23.1

 
3.9

 
(1.7
)
 
40.8

 
25.8

 
9.9

 
4.3

 

 
40.0

Total Assets
$
2,375.0

 
$
2,702.2

 
$
1,119.4

 
$
(4,391.8
)
 
$
1,804.8

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.6

 
$
27.6

 
$
87.0

 
$

 
$
115.2

 
$
3.0

 
$
32.8

 
$
156.8

 
$

 
$
192.6

Liabilities from long-term manufacturing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
contracts and advances

 
14.4

 
59.1

 

 
73.5

 

 
20.4

 
55.7

 

 
76.1

Current portion of long-term debt
9.6

 

 
1.6

 

 
11.2

 
15.0

 

 

 

 
15.0

Accrued compensation
3.0

 
21.2

 
33.5

 

 
57.7

 
5.0

 
55.3

 
9.3

 

 
69.6

Deferred income taxes

 

 
25.7

 

 
25.7

 

 
1.6

 
19.1

 

 
20.7

Intercompany payables
1,229.4

 
293.7

 

 
(1,523.1
)
 

 
1,202.7

 
286.5

 

 
(1,489.2
)
 

Other current liabilities
4.9

 
57.6

 
50.4

 
0.4

 
113.3

 
4.1

 
61.6

 
51.0

 
0.4

 
117.1

Total current liabilities
1,247.5

 
414.5

 
257.3

 
(1,522.7
)
 
396.6

 
1,229.8

 
458.2

 
291.9

 
(1,488.8
)
 
491.1

Long-term debt
519.1

 

 

 

 
519.1

 
525.9

 

 
17.6

 

 
543.5

Accrued pension and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
postretirement healthcare
1.1

 
96.5

 
91.0

 

 
188.6

 
1.0

 
94.2

 
105.7

 

 
200.9

Deferred income taxes

 
19.1

 
30.7

 
(0.8
)
 
49.0

 
0.8

 
15.1

 
39.5

 

 
55.4

Other long-term liabilities

 
23.8

 
10.2

 
(0.9
)
 
33.1

 
0.1

 
27.7

 
6.0

 

 
33.8

Total Liabilities
1,767.7

 
553.9

 
389.2

 
(1,524.4
)
 
1,186.4

 
1,757.6

 
595.2

 
460.7

 
(1,488.8
)
 
1,324.7

Total Hillenbrand Shareholders’ Equity
607.3

 
2,148.3

 
719.1

 
(2,867.4
)
 
607.3

 
583.3

 
1,933.6

 
710.6

 
(2,644.2
)
 
583.3

Noncontrolling interests

 

 
11.1

 

 
11.1

 

 

 
10.5

 

 
10.5

Total Equity
607.3

 
2,148.3

 
730.2

 
(2,867.4
)
 
618.4

 
583.3

 
1,933.6

 
721.1

 
(2,644.2
)
 
593.8

Total Liabilities and Equity
$
2,375.0

 
$
2,702.2

 
$
1,119.4

 
$
(4,391.8
)
 
$
1,804.8

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5




Condensed Consolidating Statements of Cash Flow
 
 
Nine Months Ended June 30, 2015
 
Nine Months Ended June 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operating activities
$
55.9

 
$
91.1

 
$
14.1

 
$
(85.6
)
 
$
75.5

 
$
72.1

 
$
47.1

 
$
65.0

 
$
(47.3
)
 
$
136.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(1.2
)
 
(12.7
)
 
(5.8
)
 

 
(19.7
)
 
(1.0
)
 
(9.3
)
 
(7.6
)
 

 
(17.9
)
Proceeds from sales of property, plant,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and equipment

 
0.7

 

 

 
0.7

 

 
0.8

 

 

 
0.8

Proceeds from investments

 

 

 

 

 

 
5.5

 

 

 
5.5

Other, net

 
(0.9
)
 
(0.3
)
 

 
(1.2
)
 

 
0.2

 
0.9

 

 
1.1

Net cash used in investing activities
(1.2
)
 
(12.9
)
 
(6.1
)
 

 
(20.2
)
 
(1.0
)
 
(2.8
)
 
(6.7
)
 

 
(10.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(6.8
)
 

 

 

 
(6.8
)
 
(7.5
)
 

 

 

 
(7.5
)
Proceeds from revolving credit facilities
257.8

 

 
76.4

 

 
334.2

 
196.4

 

 
50.7

 

 
247.1

Repayments on revolving credit facilities
(364.0
)
 

 
(89.1
)
 

 
(453.1
)
 
(221.3
)
 

 
(87.9
)
 

 
(309.2
)
Proceeds from unsecured Series A Notes,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
net of financing costs
99.6

 

 

 

 
99.6

 

 

 

 

 

Proceeds from other borrowings
0.6

 

 
1.6

 

 
2.2

 

 

 
0.7

 

 
0.7

Payment of dividends on common stock
(37.8
)
 

 

 

 
(37.8
)
 
(37.2
)
 

 

 

 
(37.2
)
Payment of dividends - intercompany

 
(80.3
)
 
(5.3
)
 
85.6

 

 

 
(41.6
)
 
(5.7
)
 
47.3

 

Repurchases of common stock
(9.2
)
 

 

 

 
(9.2
)
 
(16.5
)
 

 

 

 
(16.5
)
Net proceeds on stock plans
3.5

 

 

 

 
3.5

 
13.5

 

 

 

 
13.5

Other, net
1.2

 

 

 

 
1.2

 
1.0

 

 
(0.8
)
 

 
0.2

Net cash (used in) provided by
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
financing activities
(55.1
)
 
(80.3
)
 
(16.4
)
 
85.6

 
(66.2
)
 
(71.6
)
 
(41.6
)
 
(43.0
)
 
47.3

 
(108.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
cash equivalents

 

 
(1.5
)
 

 
(1.5
)
 

 

 
1.5

 

 
1.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(0.4
)
 
(2.1
)
 
(9.9
)
 

 
(12.4
)
 
(0.5
)
 
2.7

 
16.8

 

 
19.0

Cash and equivalents at beginning of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
period
0.4

 
10.6

 
47.0

 

 
58.0

 
0.6

 
8.7

 
33.4

 

 
42.7

Cash and equivalents at end of period
$

 
$
8.5

 
$
37.1

 
$

 
$
45.6

 
$
0.1

 
$
11.4

 
$
50.2

 
$

 
$
61.7