Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Information

v3.10.0.1
Condensed Consolidating Information
12 Months Ended
Sep. 30, 2018
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 senior unsecured notes.  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

 
Year Ended September 30, 2018
 
Year Ended September 30, 2017
 
Year Ended September 30, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
937.0

 
$
1,052.9

 
$
(219.8
)
 
$
1,770.1

 
$

 
$
901.4


$
904.7


$
(215.9
)

$
1,590.2


$


$
846.8


$
892.8


$
(201.2
)

$
1,538.4

Cost of goods sold

 
497.1

 
743.1

 
(113.0
)
 
1,127.2

 

 
467.3


647.4


(115.8
)

998.9




428.7


638.4


(99.3
)

967.8

Gross profit

 
439.9

 
309.8

 
(106.8
)
 
642.9

 

 
434.1

 
257.3

 
(100.1
)
 
591.3




418.1


254.4


(101.9
)

570.6

Operating expenses
54.8

 
247.4

 
183.5

 
(106.8
)
 
378.9

 
42.4

 
237.8


164.3


(100.1
)

344.4


41.8


242.0


164.6


(101.9
)

346.5

Amortization expense

 
13.4

 
16.8

 

 
30.2

 

 
13.5

 
15.7

 

 
29.2

 

 
13.0

 
20.0

 

 
33.0

Impairment charge

 
63.4

 

 

 
63.4

 

 

















Interest expense
20.3

 
1.1

 
1.9

 

 
23.3

 
21.8

 


3.4




25.2


22.7


0.2


2.4




25.3

Other income (expense), net
2.1

 
(2.7
)
 

 

 
(0.6
)
 
(0.6
)
 
(3.4
)

(0.2
)



(4.2
)

(0.3
)

(2.2
)

0.8




(1.7
)
Equity in net income (loss) of subsidiaries
139.3

 
9.1

 

 
(148.4
)
 

 
164.4

 
8.2




(172.6
)



144.4


10.2




(154.6
)


Income (loss) before income taxes
66.3

 
121.0

 
107.6

 
(148.4
)
 
146.5

 
99.6

 
187.6


73.7


(172.6
)

188.3


79.6


170.9


68.2


(154.6
)

164.1

Income tax expense (benefit)
(10.3
)
 
48.3

 
27.3

 

 
65.3

 
(26.6
)
 
65.9


20.6




59.9


(33.2
)

62.4


18.1




47.3

Consolidated net income
76.6

 
72.7

 
80.3

 
(148.4
)
 
81.2

 
126.2

 
121.7


53.1


(172.6
)

128.4


112.8


108.5


50.1


(154.6
)

116.8

Less: Net income attributable to noncontrolling interests

 

 
4.6

 

 
4.6

 

 


2.2




2.2






4.0




4.0

Net income (loss)(1)
$
76.6

 
$
72.7

 
$
75.7

 
$
(148.4
)
 
$
76.6

 
$
126.2

 
$
121.7


$
50.9


$
(172.6
)

$
126.2


$
112.8


$
108.5


$
46.1


$
(154.6
)

$
112.8

Consolidated comprehensive income (loss)
$
73.6

 
$
77.1

 
$
72.1

 
$
(145.3
)
 
$
77.5

 
$
174.8

 
$
131.8


$
86.4


$
(215.8
)

$
177.2


$
90.9


$
116.4


$
33.1


$
(145.8
)

$
94.6

Less: Comprehensive income attributable to noncontrolling interests

 

 
3.9

 

 
3.9

 

 

 
2.4

 

 
2.4






3.7



 
3.7

Comprehensive income (loss)(2)
$
73.6

 
$
77.1

 
$
68.2

 
$
(145.3
)
 
$
73.6

 
$
174.8

 
$
131.8


$
84.0


$
(215.8
)

$
174.8


$
90.9


$
116.4


$
29.4


$
(145.8
)

$
90.9

 
(1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand
Condensed Consolidating Balance Sheets
 
 
September 30, 2018
 
September 30, 2017
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
1.1


$
5.8


$
49.1


$


$
56.0


$
0.1


$
4.9


$
61.0


$


$
66.0

Trade receivables, net


124.5


94.0




218.5




114.5


91.6




206.1

Receivables from long-term manufacturing contracts


5.3


115.0




120.3




8.5


116.7




125.2

Inventories


76.7


98.6


(2.8
)

172.5




68.2


85.9


(2.5
)

151.6

Prepaid expense
2.7


7.0


15.5




25.2


2.1


7.6


18.5




28.2

Intercompany receivables


1,131.1


79.1


(1,210.2
)





1,050.4


93.9


(1,144.3
)


Other current assets


3.2


14.6


0.3


18.1


0.2


1.6


14.4


0.3


16.5

Total current assets
3.8


1,353.6


465.9


(1,212.7
)

610.6


2.4


1,255.7


482.0


(1,146.5
)

593.6

Property, plant, and equipment, net
3.8


60.2


78.0




142.0


4.7


64.5


81.2




150.4

Intangible assets, net
3.2


196.0


288.1




487.3


3.6


211.3


309.0




523.9

Goodwill


225.0


356.9




581.9




283.9


363.6




647.5

Investment in consolidated subsidiaries
2,263.1


653.9




(2,917.0
)



2,298.0


664.1




(2,962.1
)


Other assets
15.7


28.2


5.9


(7.0
)

42.8


20.2


29.0


4.4


(12.5
)

41.1

Total Assets
$
2,289.6


$
2,516.9


$
1,194.8


$
(4,136.7
)

$
1,864.6


$
2,328.9


$
2,508.5


$
1,240.2


$
(4,121.1
)

$
1,956.5

 





























Trade accounts payable
$


$
62.4


$
134.4


$


$
196.8


$
1.0


$
36.7


$
120.0


$
0.3


$
158.0

Liabilities from long-term manufacturing contracts and advances


26.6


99.3




125.9




26.2


106.1




132.3

Current portion of long-term debt










18.0




0.8




18.8

Accrued compensation
7.2


20.1


44.6




71.9


7.6


17.9


41.4




66.9

Intercompany payables
1,206.2


6.1




(1,212.3
)



1,142.8


4.0




(1,146.8
)


Other current liabilities
19.4


38.9


78.1


0.7


137.1


14.0


42.2


79.3


0.2


135.7

Total current liabilities
1,232.8


154.1


356.4


(1,211.6
)

531.7


1,183.4


127.0


347.6


(1,146.3
)

511.7

Long-term debt
300.2




44.4




344.6


392.0




54.9




446.9

Accrued pension and postretirement healthcare
0.7


29.8


90.0




120.5


0.8


33.3


95.5




129.6

Deferred income taxes
0.7


22.9


60.9


(8.1
)

76.4




27.5


60.9


(12.7
)

75.7

Other long-term liabilities
24.1


14.3


8.9




47.3


1.3


15.3


10.1




26.7

Total Liabilities
1,558.5


221.1


560.6


(1,219.7
)

1,120.5


1,577.5


203.1


569.0


(1,159.0
)

1,190.6

Total Hillenbrand Shareholders’ Equity
731.1


2,295.8


621.2


(2,917.0
)

731.1


751.4


2,305.4


656.7


(2,962.1
)

751.4

Noncontrolling interests




13.0




13.0






14.5




14.5

Total Equity
731.1


2,295.8


634.2


(2,917.0
)

744.1


751.4


2,305.4


671.2


(2,962.1
)

765.9

Total Liabilities and Equity
$
2,289.6


$
2,516.9


$
1,194.8


$
(4,136.7
)

$
1,864.6


$
2,328.9


$
2,508.5


$
1,240.2


$
(4,121.1
)

$
1,956.5

Condensed Consolidating Statements of Cash Flows
 
 
Year Ended September 30, 2018
 
Year Ended September 30, 2017
 
Year Ended September 30, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
221.6


$
127.8


$
23.2


$
(124.3
)

$
248.3


$
79.9


$
126.7


$
168.3


$
(128.7
)

$
246.2


$
157.8


$
239.9


$
(49.5
)

$
(110.0
)

$
238.2

 












































Investing activities:












 














 














 

Capital expenditures
(1.7
)

(12.1
)

(13.2
)



(27.0
)

(0.7
)

(9.7
)

(11.6
)



(22.0
)

(2.6
)

(8.0
)

(10.6
)



(21.2
)
Proceeds from sales of property, plant, and equipment


3.4


0.3




3.7




5.3


0.4




5.7




1.6


0.4




2.0

Acquisition of business, net of cash acquired






















(130.4
)

(105.0
)



(235.4
)
Return of investment capital from affiliates

 

 

 

 

 
3.2

 

 

 

 
3.2

 
1.1

 

 

 

 
1.1

Other, net


0.1


0.1




0.2




(0.4
)





(0.4
)










Net cash provided by (used in) investing activities
(1.7
)

(8.6
)

(12.8
)



(23.1
)

2.5


(4.8
)

(11.2
)



(13.5
)

(1.5
)

(136.8
)

(115.2
)



(253.5
)
 












































Financing activities:












 














 














 

Repayments on term loan
(148.5
)







(148.5
)

(13.5
)







(13.5
)

(9.0
)







(9.0
)
Proceeds from revolving credit facility
583.9




510.1




1,094.0


289.5




529.8




819.3


375.5




344.3




719.8

Repayments on revolving credit facility
(548.3
)



(517.4
)



(1,065.7
)

(296.5
)



(656.5
)



(953.0
)

(457.5
)



(169.7
)



(627.2
)
Payment of dividends - intercompany


(118.3
)

(6.0
)

124.3






(122.6
)

(6.1
)

128.7






(104.6
)

(5.4
)

110.0



Payment of dividends on common stock
(52.1
)







(52.1
)

(51.9
)







(51.9
)

(51.1
)







(51.1
)
Repurchases of common stock
(61.0
)







(61.0
)

(28.0
)







(28.0
)

(21.2
)







(21.2
)
Net proceeds on stock plans
7.1








7.1


13.7








13.7


11.1








11.1

Other, net




(6.3
)



(6.3
)





(1.7
)



(1.7
)





(0.8
)



(0.8
)
Net cash (used in) provided by financing activities
(218.9
)

(118.3
)

(19.6
)

124.3


(232.5
)

(86.7
)

(122.6
)

(134.5
)

128.7


(215.1
)

(152.2
)

(104.6
)

168.4


110.0


21.6

 












































Effect of exchange rates on cash and cash equivalents




(2.7
)



(2.7
)





(3.6
)



(3.6
)





(2.6
)



(2.6
)
 












































Net cash flows
1.0


0.9


(11.9
)



(10.0
)

(4.3
)

(0.7
)

19.0




14.0


4.1


(1.5
)

1.1




3.7

Cash and equivalents at beginning of period
0.1


4.9


61.0




66.0


4.4


5.6


42.0




52.0


0.3


7.1


40.9




48.3

Cash and equivalents at end of period
$
1.1


$
5.8


$
49.1


$


$
56.0


$
0.1


$
4.9


$
61.0


$


$
66.0


$
4.4


$
5.6


$
42.0


$


$
52.0