Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v3.7.0.1
Condensed Consolidating Information
6 Months Ended
Mar. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Information
Condensed Consolidating Information

Certain 100% owned domestic subsidiaries of Hillenbrand fully and unconditionally, jointly and severally, agreed to guarantee all of the indebtedness and guarantee obligations 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 March 31, 2017
 
Three Months Ended March 31, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
228.7

 
$
217.5

 
$
(50.9
)
 
$
395.3

 
$

 
$
217.8

 
$
218.3

 
$
(49.1
)
 
$
387.0

Cost of goods sold

 
117.2

 
156.7

 
(27.2
)
 
246.7

 

 
108.6

 
159.1

 
(23.4
)
 
244.3

Gross profit

 
111.5

 
60.8

 
(23.7
)
 
148.6

 

 
109.2

 
59.2

 
(25.7
)
 
142.7

Operating expenses
11.4

 
57.1

 
40.8

 
(23.7
)
 
85.6

 
7.7

 
63.7

 
41.6

 
(25.7
)
 
87.3

Amortization expense

 
3.4

 
3.8

 

 
7.2

 

 
4.5

 
4.1

 

 
8.6

Interest expense
5.4

 

 
0.9

 

 
6.3

 
5.6

 
0.1

 
0.7

 

 
6.4

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

 

 
(0.6
)
 
(0.3
)
 
(1.1
)
 
0.5

 

 
(0.9
)
Equity in net income (loss) of subsidiaries
42.7

 
1.5

 

 
(44.2
)
 

 
32.0

 
2.7

 

 
(34.7
)
 

Income (loss) before income taxes
25.5

 
52.1

 
15.5

 
(44.2
)
 
48.9

 
18.4

 
42.5

 
13.3

 
(34.7
)
 
39.5

Income tax expense (benefit)
(7.9
)
 
19.0

 
3.8

 

 
14.9

 
(7.7
)
 
15.9

 
4.1

 

 
12.3

Consolidated net income
33.4

 
33.1

 
11.7

 
(44.2
)
 
34.0

 
26.1

 
26.6

 
9.2

 
(34.7
)
 
27.2

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.6

 

 
0.6

 

 

 
1.1

 

 
1.1

Net income (loss) (1)
$
33.4

 
$
33.1

 
$
11.1

 
$
(44.2
)
 
$
33.4

 
$
26.1

 
$
26.6

 
$
8.1

 
$
(34.7
)
 
$
26.1

Consolidated comprehensive income (loss)
$
46.2

 
$
38.2

 
$
19.7

 
$
(57.0
)
 
$
47.1

 
$
45.9

 
$
27.2

 
$
29.3

 
$
(55.4
)
 
$
47.0

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.9

 

 
0.9

 

 

 
1.1

 

 
1.1

Comprehensive income (loss) (2)
$
46.2

 
$
38.2

 
$
18.8

 
$
(57.0
)
 
$
46.2

 
$
45.9

 
$
27.2

 
$
28.2

 
$
(55.4
)
 
$
45.9



 
Six Months Ended March 31, 2017
 
Six Months Ended March 31, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
431.4

 
$
420.4

 
$
(100.4
)
 
$
751.4

 
$

 
$
415.1

 
$
423.5

 
$
(99.9
)
 
$
738.7

Cost of goods sold

 
226.4

 
302.2

 
(51.8
)
 
476.8

 

 
210.8

 
305.8

 
(48.8
)
 
467.8

Gross profit

 
205.0

 
118.2

 
(48.6
)
 
274.6

 

 
204.3

 
117.7

 
(51.1
)
 
270.9

Operating expenses
21.0

 
115.8

 
80.2

 
(48.6
)
 
168.4

 
14.9

 
123.8

 
81.8

 
(51.1
)
 
169.4

Amortization expense

 
6.8

 
7.6

 

 
14.4

 

 
6.8

 
11.6

 

 
18.4

Interest expense
10.8

 

 
1.6

 

 
12.4

 
10.8

 
0.1

 
1.4

 

 
12.3

Other income (expense), net
(0.4
)
 
(0.4
)
 
(1.1
)
 

 
(1.9
)
 
(0.2
)
 
(2.1
)
 
0.7

 

 
(1.6
)
Equity in net income (loss) of subsidiaries
71.5

 
3.7

 

 
(75.2
)
 

 
58.4

 
4.9

 

 
(63.3
)
 

Income (loss) before income taxes
39.3

 
85.7

 
27.7

 
(75.2
)
 
77.5

 
32.5

 
76.4

 
23.6

 
(63.3
)
 
69.2

Income tax expense (benefit)
(15.8
)
 
30.7

 
6.7

 

 
21.6

 
(13.6
)
 
27.9

 
6.7

 

 
21.0

Consolidated net income
55.1

 
55.0

 
21.0

 
(75.2
)
 
55.9

 
46.1

 
48.5


16.9

 
(63.3
)
 
48.2

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.8

 

 
0.8

 

 

 
2.1

 

 
2.1

Net income (loss) (1)
$
55.1

 
$
55.0

 
$
20.2

 
$
(75.2
)
 
$
55.1

 
$
46.1

 
$
48.5

 
$
14.8

 
$
(63.3
)
 
$
46.1

Consolidated comprehensive income (loss)
$
51.9

 
$
59.7

 
$
8.1

 
$
(66.8
)
 
$
52.9

 
$
52.1

 
$
58.0

 
$
22.5

 
$
(78.5
)
 
$
54.1

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
1.0

 

 
1.0

 

 

 
2.0

 

 
2.0

Comprehensive income (loss) (2)
$
51.9

 
$
59.7

 
$
7.1

 
$
(66.8
)
 
$
51.9

 
$
52.1

 
$
58.0

 
$
20.5

 
$
(78.5
)
 
$
52.1


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



















Condensed Consolidating Balance Sheets
 
March 31, 2017
 
September 30, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
0.4

 
$
4.9

 
$
46.1

 
$

 
$
51.4

 
$
4.4

 
$
5.6

 
$
42.0

 
$

 
$
52.0

Trade receivables, net

 
111.3

 
81.9

 

 
193.2

 

 
120.6

 
84.4

 

 
205.0

Unbilled receivables from long-term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
manufacturing contracts

 
10.9

 
128.2

 

 
139.1

 

 
10.6

 
115.2

 

 
125.8

Inventories

 
69.3

 
83.4

 
(2.5
)
 
150.2

 

 
69.8

 
86.1

 
(2.8
)
 
153.1

Deferred income taxes

 

 

 

 

 
1.6

 
17.4

 

 
4.9

 
23.9

Prepaid expense
2.3

 
10.2

 
11.0

 

 
23.5

 
2.2

 
6.5

 
9.5

 

 
18.2

Intercompany receivables

 
913.3

 
81.6

 
(994.9
)
 

 

 
1,003.1

 
97.4

 
(1,100.5
)
 

Other current assets
0.2

 
2.0

 
17.4

 
0.4

 
20.0

 
4.6

 
1.5

 
15.9

 
0.3

 
22.3

Total current assets
2.9

 
1,121.9

 
449.6

 
(997.0
)
 
577.4

 
12.8

 
1,235.1

 
450.5

 
(1,098.1
)
 
600.3

Property, plant and equipment, net
4.6

 
63.3

 
77.5

 

 
145.4

 
4.9

 
65.7

 
81.9

 

 
152.5

Intangible assets, net
3.9

 
218.2

 
294.1

 

 
516.2

 
4.1

 
220.4

 
317.0

 

 
541.5

Goodwill

 
283.8

 
336.2

 

 
620.0

 

 
271.8

 
362.5

 

 
634.3

Investment in consolidated subsidiaries
2,118.8

 
664.2

 

 
(2,783.0
)
 

 
2,143.4

 
820.2

 

 
(2,963.6
)
 

Other assets
19.9

 
23.2

 
3.1

 
(12.0
)
 
34.2

 
18.9

 
22.7

 
0.8

 
(11.3
)
 
31.1

Total Assets
$
2,150.1

 
$
2,374.6

 
$
1,160.5

 
$
(3,792.0
)
 
$
1,893.2

 
$
2,184.1

 
$
2,635.9

 
$
1,212.7

 
$
(4,073.0
)
 
$
1,959.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.4

 
$
31.1

 
$
100.8

 
$

 
$
132.3

 
$
0.4

 
$
28.4

 
$
106.9

 
$

 
$
135.7

Liabilities from long-term manufacturing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
contracts and advances

 
22.8

 
67.8

 

 
90.6

 

 
14.0

 
64.6

 

 
78.6

Current portion of long-term debt
15.7

 

 
0.5

 

 
16.2

 
13.5

 

 
0.3

 

 
13.8

Accrued compensation
3.9

 
15.0

 
31.6

 

 
50.5

 
4.7

 
17.3

 
35.3

 

 
57.3

Deferred income taxes

 

 

 

 

 

 

 
18.1

 
4.7

 
22.8

Intercompany payables
993.1

 
4.3

 

 
(997.4
)
 

 
1,098.8

 
4.5

 

 
(1,103.3
)
 

Other current liabilities
14.1

 
40.2

 
64.6

 
0.6

 
119.5

 
13.9

 
39.8

 
71.6

 
0.2

 
125.5

Total current liabilities
1,027.2

 
113.4

 
265.3

 
(996.8
)
 
409.1

 
1,131.3

 
104.0

 
296.8

 
(1,098.4
)
 
433.7

Long-term debt
463.8

 

 
142.6

 

 
606.4

 
416.6

 

 
178.5

 

 
595.1

Accrued pension and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
postretirement healthcare
1.1

 
34.3

 
97.5

 

 
132.9

 
1.1

 
127.0

 
104.6

 

 
232.7

Deferred income taxes

 
10.7

 
46.9

 
(12.2
)
 
45.4

 

 
5.8

 
27.8

 
(11.0
)
 
22.6

Other long-term liabilities
1.1

 
16.7

 
9.8

 

 
27.6

 
2.8

 
16.3

 
10.3

 

 
29.4

Total Liabilities
1,493.2

 
175.1

 
562.1

 
(1,009.0
)
 
1,221.4

 
1,551.8

 
253.1

 
618.0

 
(1,109.4
)
 
1,313.5

Total Hillenbrand Shareholders’ Equity
656.9

 
2,199.5

 
583.5

 
(2,783.0
)
 
656.9

 
632.3

 
2,382.8

 
580.8

 
(2,963.6
)
 
632.3

Noncontrolling interests

 

 
14.9

 

 
14.9

 

 

 
13.9

 

 
13.9

Total Equity
656.9

 
2,199.5

 
598.4

 
(2,783.0
)
 
671.8

 
632.3

 
2,382.8

 
594.7

 
(2,963.6
)
 
646.2

Total Liabilities and Equity
$
2,150.1

 
$
2,374.6

 
$
1,160.5

 
$
(3,792.0
)
 
$
1,893.2

 
$
2,184.1

 
$
2,635.9

 
$
1,212.7

 
$
(4,073.0
)
 
$
1,959.7




Condensed Consolidating Statements of Cash Flow
 
 
Six Months Ended March 31, 2017
 
Six Months Ended March 31, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
     operating activities
$
(22.9
)
 
$
124.4

 
$
47.0

 
$
(128.7
)
 
$
19.8

 
$
(112.7
)
 
$
238.4

 
$
71.5

 
$
(110.0
)
 
$
87.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(0.4
)
 
(4.0
)
 
(4.7
)
 

 
(9.1
)
 
(1.3
)
 
(3.4
)
 
(4.4
)
 

 
(9.1
)
Proceeds from sales of property, plant, and
     equipment

 
1.8

 
0.4

 

 
2.2

 

 
0.5

 
0.4

 

 
0.9

Acquisition of business, net of cash
     acquired

 

 

 

 

 

 
(131.3
)
 
(105.7
)
 

 
(237.0
)
Other, net
2.7

 
(0.3
)
 
(2.5
)
 

 
(0.1
)
 

 

 

 

 

Net cash provided by (used in) investing activities
2.3

 
(2.5
)
 
(6.8
)
 

 
(7.0
)
 
(1.3
)
 
(134.2
)
 
(109.7
)
 

 
(245.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(6.7
)
 

 

 

 
(6.7
)
 
(4.5
)
 

 

 

 
(4.5
)
Proceeds from revolving credit facilities
189.1

 

 
362.6

 

 
551.7

 
262.0

 

 
125.5

 

 
387.5

Repayments on revolving credit facilities
(133.0
)
 

 
(391.8
)
 

 
(524.8
)
 
(113.9
)
 

 
(85.2
)
 

 
(199.1
)
Payment of dividends - intercompany

 
(122.6
)

(6.1
)
 
128.7

 

 

 
(104.6
)
 
(5.4
)
 
110.0

 

Payment of dividends on common stock
(26.0
)
 

 

 

 
(26.0
)
 
(25.4
)
 

 

 

 
(25.4
)
Repurchases of common stock
(17.0
)
 

 

 

 
(17.0
)
 
(4.0
)
 

 

 

 
(4.0
)
Net proceeds (payments) on stock plans
10.2

 

 

 

 
10.2

 
(0.5
)
 

 

 

 
(0.5
)
Other, net

 

 
(0.2
)
 

 
(0.2
)
 
0.9

 

 
(0.4
)
 

 
0.5

Net cash provided by (used in)
     financing activities
16.6

 
(122.6
)
 
(35.5
)
 
128.7

 
(12.8
)
 
114.6

 
(104.6
)
 
34.5

 
110.0

 
154.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
     cash equivalents

 

 
(0.6
)
 

 
(0.6
)
 

 

 
(1.6
)
 

 
(1.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(4.0
)
 
(0.7
)
 
4.1

 

 
(0.6
)
 
0.6

 
(0.4
)
 
(5.3
)
 

 
(5.1
)
Cash and equivalents at beginning of
     period
4.4

 
5.6

 
42.0

 

 
52.0

 
0.3

 
7.1

 
40.9

 

 
48.3

Cash and equivalents at end of period
$
0.4

 
$
4.9

 
$
46.1

 
$

 
$
51.4

 
$
0.9

 
$
6.7

 
$
35.6

 
$

 
$
43.2