Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v3.5.0.2
Condensed Consolidating Information
9 Months Ended
Jun. 30, 2016
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 the Facility, 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, 2016
 
Three Months Ended June 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
206.0

 
$
215.0

 
$
(50.0
)
 
$
371.0

 
$

 
$
225.9

 
$
222.4

 
$
(49.6
)
 
$
398.7

Cost of goods sold

 
101.3

 
150.7

 
(24.5
)
 
227.5

 

 
121.9

 
163.1

 
(25.2
)
 
259.8

Gross profit

 
104.7

 
64.3

 
(25.5
)
 
143.5

 

 
104.0

 
59.3

 
(24.4
)
 
138.9

Operating expenses
8.9

 
63.1

 
40.7

 
(25.5
)
 
87.2

 
9.6

 
58.2

 
35.7

 
(24.4
)
 
79.1

Amortization expense

 
2.9

 
4.3

 

 
7.2

 
0.1

 
2.7

 
3.7

 

 
6.5

Interest expense
6.0

 

 
0.6

 

 
6.6

 
5.2

 
0.2

 
0.3

 

 
5.7

Other income (expense), net
(0.1
)
 
(0.4
)
 
0.2

 

 
(0.3
)
 
1.6

 
(2.8
)
 
(0.1
)
 

 
(1.3
)
Equity in net income (loss) of subsidiaries
36.4

 
2.8

 

 
(39.2
)
 

 
38.9

 
0.2

 

 
(39.1
)
 

Income (loss) before income taxes
21.4

 
41.1

 
18.9

 
(39.2
)
 
42.2

 
25.6

 
40.3

 
19.5

 
(39.1
)
 
46.3

Income tax expense (benefit)
(9.3
)
 
14.7

 
5.5

 

 
10.9

 
(6.5
)
 
15.0

 
5.3

 

 
13.8

Consolidated net income (loss)
30.7

 
26.4

 
13.4

 
(39.2
)
 
31.3

 
32.1

 
25.3

 
14.2

 
(39.1
)
 
32.5

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.6

 

 
0.6

 

 

 
0.4

 

 
0.4

Net income (loss) (1)
$
30.7

 
$
26.4

 
$
12.8

 
$
(39.2
)
 
$
30.7

 
$
32.1

 
$
25.3

 
$
13.8

 
$
(39.1
)
 
$
32.1

Consolidated comprehensive income (loss)
$
16.1

 
$
27.0

 
$
(1.3
)
 
$
(25.4
)
 
$
16.4

 
$
55.9

 
$
26.2

 
$
38.5

 
$
(64.4
)
 
$
56.2

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.3

 

 
0.3

 

 

 
0.3

 

 
0.3

Comprehensive income (loss) (2)
$
16.1

 
$
27.0

 
$
(1.6
)
 
$
(25.4
)
 
$
16.1

 
$
55.9

 
$
26.2

 
$
38.2

 
$
(64.4
)
 
$
55.9


 
Nine Months Ended June 30, 2016
 
Nine Months Ended June 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
621.1

 
$
638.5

 
$
(149.9
)
 
$
1,109.7

 
$

 
$
678.3

 
$
675.9

 
$
(149.4
)
 
$
1,204.8

Cost of goods sold

 
312.1

 
456.5

 
(73.3
)
 
695.3

 

 
355.4

 
498.1

 
(74.6
)
 
778.9

Gross profit

 
309.0

 
182.0

 
(76.6
)
 
414.4

 

 
322.9

 
177.8

 
(74.8
)
 
425.9

Operating expenses
23.8

 
186.9

 
122.5

 
(76.6
)
 
256.6

 
28.1

 
179.1

 
114.6

 
(74.8
)
 
247.0

Amortization expense

 
9.7

 
15.9

 

 
25.6

 
0.4

 
8.5

 
12.6

 

 
21.5

Interest expense
16.8

 
0.1

 
2.0

 

 
18.9

 
15.3

 
0.6

 
1.9

 

 
17.8

Other income (expense), net
(0.3
)
 
(2.5
)
 
0.9

 

 
(1.9
)
 
(0.1
)
 
(3.4
)
 
(2.8
)
 

 
(6.3
)
Equity in net income (loss) of subsidiaries
94.8

 
7.7

 

 
(102.5
)
 

 
113.9

 
5.4

 

 
(119.3
)
 

Income (loss) before income taxes
53.9

 
117.5

 
42.5

 
(102.5
)
 
111.4

 
70.0

 
136.7

 
45.9

 
(119.3
)
 
133.3

Income tax expense (benefit)
(22.9
)
 
42.6

 
12.2

 

 
31.9

 
(22.3
)
 
49.1

 
13.1

 

 
39.9

Consolidated net income (loss)
76.8

 
74.9

 
30.3

 
(102.5
)
 
79.5

 
92.3

 
87.6

 
32.8

 
(119.3
)
 
93.4

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
2.7

 

 
2.7

 

 

 
1.1

 

 
1.1

Net income (loss) (1)
$
76.8

 
$
74.9

 
$
27.6

 
$
(102.5
)
 
$
76.8

 
$
92.3

 
$
87.6

 
$
31.7

 
$
(119.3
)
 
$
92.3

Consolidated comprehensive income (loss)
$
68.2

 
$
85.0

 
$
21.2

 
$
(103.9
)
 
$
70.5

 
$
57.1

 
$
90.2

 
$
8.1

 
$
(97.4
)
 
$
58.0

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
2.3

 

 
2.3

 

 

 
0.9

 

 
0.9

Comprehensive income (loss) (2)
$
68.2

 
$
85.0

 
$
18.9

 
$
(103.9
)
 
$
68.2

 
$
57.1

 
$
90.2

 
$
7.2

 
$
(97.4
)
 
$
57.1


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
















Condensed Consolidating Balance Sheets
 
June 30, 2016
 
September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
0.1

 
$
10.7

 
$
36.8

 
$

 
$
47.6

 
$
0.3

 
$
7.1

 
$
40.9

 
$

 
$
48.3

Trade receivables, net

 
99.0

 
76.4

 

 
175.4

 

 
113.4

 
74.5

 

 
187.9

Unbilled receivables from long-term
  manufacturing contracts

 
9.7

 
97.9

 

 
107.6

 

 
13.5

 
131.4

 

 
144.9

Inventories

 
75.8

 
90.5

 
(3.0
)
 
163.3

 

 
69.0

 
87.1

 
(2.5
)
 
153.6

Deferred income taxes
10.1

 
15.8

 
2.6

 

 
28.5

 
1.8

 
15.7

 
4.4

 

 
21.9

Prepaid expense
3.0

 
9.1

 
10.5

 

 
22.6

 
2.8

 
6.5

 
14.5

 

 
23.8

Intercompany receivables

 
959.5

 
58.1

 
(1,017.6
)
 

 

 
921.8

 
60.2

 
(982.0
)
 

Other current assets
0.2

 
1.7

 
15.7

 
0.2

 
17.8

 
0.6

 
1.9

 
20.8

 
0.4

 
23.7

Total current assets
13.4

 
1,181.3

 
388.5

 
(1,020.4
)
 
562.8

 
5.5

 
1,148.9

 
433.8

 
(984.1
)
 
604.1

Property, plant and equipment, net
5.2

 
66.0

 
83.2

 

 
154.4

 
6.3

 
66.2

 
85.8

 

 
158.3

Intangible assets, net
4.0

 
223.8

 
320.6

 

 
548.4

 
2.2

 
175.6

 
281.8

 

 
459.6

Goodwill

 
272.9

 
362.9

 

 
635.8

 

 
211.7

 
332.3

 

 
544.0

Investment in consolidated subsidiaries
2,258.0

 
842.6

 

 
(3,100.6
)
 

 
2,082.7

 
836.1

 

 
(2,918.8
)
 

Other assets
22.3

 
28.2

 
1.0

 
(13.2
)
 
38.3

 
24.5

 
31.0

 
0.9

 
(14.3
)
 
42.1

Total Assets
$
2,302.9

 
$
2,614.8

 
$
1,156.2

 
$
(4,134.2
)
 
$
1,939.7

 
$
2,121.2

 
$
2,469.5

 
$
1,134.6

 
$
(3,917.2
)
 
$
1,808.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
1.0

 
$
23.9

 
$
87.8

 
$

 
$
112.7

 
$
0.5

 
$
22.7

 
$
81.3

 
$
(0.2
)
 
$
104.3

Liabilities from long-term
  manufacturing contracts and advances

 
11.0

 
64.6

 

 
75.6

 

 
13.5

 
66.2

 

 
79.7

Current portion of long-term debt
12.4

 

 

 

 
12.4

 
9.0

 

 
0.4

 

 
9.4

Accrued compensation
2.4

 
15.2

 
32.3

 

 
49.9

 
3.9

 
23.0

 
35.4

 

 
62.3

Deferred income taxes

 

 
23.3

 

 
23.3

 

 

 
25.4

 

 
25.4

Intercompany payables
1,014.5

 
6.1

 

 
(1,020.6
)
 

 
979.7

 
4.8

 

 
(984.5
)
 

Other current liabilities
20.5

 
42.5

 
63.9

 
0.3

 
127.2

 
18.1

 
46.0

 
58.6

 
0.4

 
123.1

Total current liabilities
1,050.8

 
98.7

 
271.9

 
(1,020.3
)
 
401.1

 
1,011.2

 
110.0

 
267.3

 
(984.3
)
 
404.2

Long-term debt
624.6

 

 

 

 
624.6

 
513.1

 

 
5.6

 

 
518.7

Accrued pension and
  postretirement healthcare
1.1

 
120.7

 
94.1

 

 
215.9

 
1.1

 
119.8

 
97.8

 

 
218.7

Deferred income taxes

 
17.4

 
27.8

 
(13.3
)
 
31.9

 

 
17.0

 
26.5

 
(14.1
)
 
29.4

Other long-term liabilities
3.3

 
17.9

 
9.0

 

 
30.2

 
1.7

 
20.4

 
9.2

 

 
31.3

Total Liabilities
1,679.8

 
254.7

 
402.8

 
(1,033.6
)
 
1,303.7

 
1,527.1

 
267.2

 
406.4

 
(998.4
)
 
1,202.3

Total Hillenbrand Shareholders’ Equity
623.1

 
2,360.1

 
740.5

 
(3,100.6
)
 
623.1

 
594.1

 
2,202.3

 
716.5

 
(2,918.8
)
 
594.1

Noncontrolling interests

 

 
12.9

 

 
12.9

 

 

 
11.7

 

 
11.7

Total Equity
623.1

 
2,360.1

 
753.4

 
(3,100.6
)
 
636.0

 
594.1

 
2,202.3

 
728.2

 
(2,918.8
)
 
605.8

Total Liabilities and Equity
$
2,302.9

 
$
2,614.8

 
$
1,156.2

 
$
(4,134.2
)
 
$
1,939.7

 
$
2,121.2

 
$
2,469.5

 
$
1,134.6

 
$
(3,917.2
)
 
$
1,808.1




Condensed Consolidating Statements of Cash Flow
 
 
Nine Months Ended June 30, 2016
 
Nine Months Ended June 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
     operating activities
$
(67.4
)
 
$
244.8

 
$
122.3

 
$
(110.0
)
 
$
189.7

 
$
55.9

 
$
91.1

 
$
14.1

 
$
(85.6
)
 
$
75.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(2.3
)
 
(5.9
)
 
(7.4
)
 

 
(15.6
)
 
(1.2
)
 
(12.7
)
 
(5.8
)
 

 
(19.7
)
Proceeds from sales of property, plant, and
     equipment

 
0.6

 
0.4

 

 
1.0

 

 
0.7

 

 

 
0.7

Acquisition of business, net of cash
     acquired

 
(131.3
)
 
(105.7
)
 

 
(237.0
)
 

 

 

 

 

Other, net

 

 
0.1

 

 
0.1

 

 
(0.9
)
 
(0.3
)
 

 
(1.2
)
Net cash used in investing activities
(2.3
)
 
(136.6
)
 
(112.6
)
 

 
(251.5
)
 
(1.2
)
 
(12.9
)
 
(6.1
)
 

 
(20.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(6.8
)
 

 

 

 
(6.8
)
 
(6.8
)
 

 

 

 
(6.8
)
Proceeds from revolving credit facilities
315.5

 

 
165.0

 

 
480.5

 
257.8

 

 
76.4

 

 
334.2

Repayments on revolving credit facilities
(194.0
)
 


 
(169.7
)
 

 
(363.7
)
 
(364.0
)
 

 
(89.1
)
 

 
(453.1
)
Proceeds from unsecured Series A Notes,
      net of financing costs

 

 

 

 

 
99.6

 

 

 

 
99.6

Proceeds from other borrowings

 

 

 

 

 
0.6

 

 
1.6

 

 
2.2

Payment of dividends on intercompany

 
(104.6
)
 
(5.4
)
 
110.0

 

 

 
(80.3
)
 
(5.3
)
 
85.6

 

Payment of dividends on common stock
(38.3
)
 

 

 

 
(38.3
)
 
(37.8
)
 

 

 

 
(37.8
)
Repurchases of common stock
(16.6
)
 

 

 

 
(16.6
)
 
(9.2
)
 

 

 

 
(9.2
)
Net proceeds on stock plans
7.6

 

 

 

 
7.6

 
3.5

 

 

 

 
3.5

Other, net
2.1

 

 
(1.0
)
 

 
1.1

 
1.2

 

 

 

 
1.2

Net cash provided by
     financing activities
69.5

 
(104.6
)
 
(11.1
)
 
110.0

 
63.8

 
(55.1
)
 
(80.3
)
 
(16.4
)
 
85.6

 
(66.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
     cash equivalents

 

 
(2.7
)
 

 
(2.7
)
 

 

 
(1.5
)
 

 
(1.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(0.2
)
 
3.6

 
(4.1
)
 

 
(0.7
)
 
(0.4
)
 
(2.1
)
 
(9.9
)
 

 
(12.4
)
Cash and equivalents at beginning of
     period
0.3

 
7.1

 
40.9

 

 
48.3

 
0.4

 
10.6

 
47.0

 

 
58.0

Cash and equivalents at end of period
$
0.1

 
$
10.7

 
$
36.8

 
$

 
$
47.6

 
$

 
$
8.5

 
$
37.1

 
$

 
$
45.6