Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v3.19.2
Condensed Consolidating Information
9 Months Ended
Jun. 30, 2019
Condensed Financial Information 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
 
Three Months Ended June 30, 2019
 
Three Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
220.4

 
$
284.2

 
$
(58.0
)
 
$
446.6

 
$

 
$
232.7

 
$
273.2

 
$
(59.9
)
 
$
446.0

Cost of goods sold

 
125.0

 
204.7

 
(31.5
)
 
298.2

 

 
126.4

 
189.6

 
(33.5
)
 
282.5

Gross profit

 
95.4

 
79.5

 
(26.5
)
 
148.4

 

 
106.3

 
83.6

 
(26.4
)
 
163.5

Operating expenses
15.1

 
59.8

 
42.4

 
(26.5
)
 
90.8

 
13.4

 
63.1

 
48.2

 
(26.4
)
 
98.3

Amortization expense

 
3.3

 
5.3

 

 
8.6

 

 
3.3

 
4.3

 

 
7.6

Interest expense
4.4

 
0.1

 
0.7

 

 
5.2

 
4.6

 

 
0.9

 

 
5.5

Other (expense) income, net
(0.1
)
 
(0.3
)
 
(0.1
)
 

 
(0.5
)
 
(0.2
)
 
(0.4
)
 
(0.1
)
 

 
(0.7
)
Equity in net income of subsidiaries
44.8

 
2.4

 

 
(47.2
)
 

 
34.8

 
3.6

 

 
(38.4
)
 

Income before income taxes
25.2

 
34.3

 
31.0

 
(47.2
)
 
43.3

 
16.6

 
43.1

 
30.1

 
(38.4
)
 
51.4

Income tax expense
(5.2
)
 
9.3

 
7.5

 

 
11.6

 
(19.3
)
 
9.9

 
24.6

 

 
15.2

Consolidated net income
30.4

 
25.0

 
23.5

 
(47.2
)
 
31.7

 
35.9

 
33.2

 
5.5

 
(38.4
)
 
36.2

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
1.3

 

 
1.3

 

 

 
0.3

 

 
0.3

Net income (1)
$
30.4

 
$
25.0

 
$
22.2

 
$
(47.2
)
 
$
30.4

 
$
35.9

 
$
33.2

 
$
5.2

 
$
(38.4
)
 
$
35.9

Consolidated comprehensive income
$
33.7

 
$
26.2

 
$
30.2

 
$
(55.1
)
 
$
35.0

 
$
10.7

 
$
33.8

 
$
(20.4
)
 
$
(13.4
)
 
$
10.7

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
1.3

 

 
1.3

 

 

 

 

 

Comprehensive income (2)
$
33.7

 
$
26.2

 
$
28.9

 
$
(55.1
)
 
$
33.7

 
$
10.7

 
$
33.8

 
$
(20.4
)
 
$
(13.4
)
 
$
10.7


 
Nine Months Ended June 30, 2019
 
Nine Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
667.1

 
$
826.1

 
$
(171.7
)
 
$
1,321.5

 
$

 
$
701.8

 
$
758.7

 
$
(165.1
)
 
$
1,295.4

Cost of goods sold

 
367.6

 
589.1

 
(91.5
)
 
865.2

 

 
371.2

 
530.7

 
(84.8
)
 
817.1

Gross profit

 
299.5

 
237.0

 
(80.2
)
 
456.3

 

 
330.6

 
228.0

 
(80.3
)
 
478.3

Operating expenses
39.0

 
182.1

 
134.3

 
(80.2
)
 
275.2

 
37.9

 
189.5

 
138.6

 
(80.3
)
 
285.7

Amortization expense

 
10.0

 
15.0

 

 
25.0

 

 
10.0

 
12.7

 

 
22.7

Impairment charge









 

 
63.4

 

 

 
63.4

Interest expense
13.6

 
0.2

 
2.3

 

 
16.1

 
15.7

 

 
2.1

 

 
17.8

Other (expense) income, net
(0.6
)
 
(0.4
)
 
1.1

 

 
0.1

 
(0.6
)
 
(0.1
)
 
(1.5
)
 

 
(2.2
)
Equity in net income of subsidiaries
138.2

 
8.1

 

 
(146.3
)
 

 
67.1

 
6.8

 

 
(73.9
)
 

Income before income taxes
85.0

 
114.9

 
86.5

 
(146.3
)
 
140.1

 
12.9

 
74.4

 
73.1

 
(73.9
)
 
86.5

Income tax expense
(11.7
)
 
29.8

 
21.8

 

 
39.9

 
(19.2
)
 
34.8

 
36.9

 

 
52.5

Consolidated net income
96.7

 
85.1

 
64.7

 
(146.3
)
 
100.2

 
32.1

 
39.6

 
36.2

 
(73.9
)
 
34.0

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
3.5

 

 
3.5

 

 

 
1.9

 

 
1.9

Net income (1)
$
96.7

 
$
85.1

 
$
61.2

 
$
(146.3
)
 
$
96.7

 
$
32.1

 
$
39.6

 
$
34.3

 
$
(73.9
)
 
$
32.1

Consolidated comprehensive income
$
82.4

 
$
86.4

 
$
61.6

 
$
(144.3
)
 
$
86.1

 
$
29.6

 
$
41.1

 
$
31.0

 
$
(70.5
)
 
$
31.2

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
3.7

 

 
3.7

 

 

 
1.6

 

 
1.6

Comprehensive income (2)
$
82.4

 
$
86.4

 
$
57.9

 
$
(144.3
)
 
$
82.4

 
$
29.6

 
$
41.1

 
$
29.4

 
$
(70.5
)
 
$
29.6


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


















Condensed Consolidating Balance Sheets
 
June 30, 2019
 
September 30, 2018
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
0.1

 
$
5.5

 
$
58.8

 
$

 
$
64.4

 
$
1.1

 
$
5.8

 
$
49.1

 
$

 
$
56.0

Trade receivables, net

 
99.2

 
99.6

 

 
198.8

 

 
124.5

 
94.0

 

 
218.5

Receivables from long-term manufacturing contracts

 
9.8

 
148.8

 

 
158.6

 

 
5.3

 
115.0

 

 
120.3

Inventories

 
81.1

 
108.4

 
(2.8
)
 
186.7

 

 
76.7

 
98.6

 
(2.8
)
 
172.5

Prepaid expense
3.0

 
6.6

 
19.4

 

 
29.0

 
2.7

 
7.0

 
15.5

 

 
25.2

Intercompany receivables

 
1,169.2

 
51.3

 
(1,220.5
)
 

 

 
1,131.1

 
79.1

 
(1,210.2
)
 

Other current assets

 
2.6

 
17.6

 
0.5

 
20.7

 

 
3.2

 
14.6

 
0.3

 
18.1

Total current assets
3.1

 
1,374.0

 
503.9

 
(1,222.8
)
 
658.2

 
3.8

 
1,353.6

 
465.9

 
(1,212.7
)
 
610.6

Property, plant and equipment, net
3.5

 
58.6

 
74.5

 

 
136.6

 
3.8

 
60.2

 
78.0

 

 
142.0

Intangible assets, net
2.5

 
185.0

 
283.6

 

 
471.1

 
3.2

 
196.0

 
288.1

 

 
487.3

Goodwill

 
225.0

 
361.8

 

 
586.8

 

 
225.0

 
356.9

 

 
581.9

Investment in consolidated subsidiaries
2,347.3

 
667.8

 

 
(3,015.1
)
 

 
2,263.1

 
653.9

 

 
(2,917.0
)
 

Other assets
31.2

 
27.6

 
3.0

 
(23.9
)
 
37.9

 
15.7

 
28.2

 
5.9

 
(7.0
)
 
42.8

Total Assets
$
2,387.6

 
$
2,538.0

 
$
1,226.8

 
$
(4,261.8
)
 
$
1,890.6

 
$
2,289.6

 
$
2,516.9

 
$
1,194.8

 
$
(4,136.7
)
 
$
1,864.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.2

 
$
62.5

 
$
161.8

 
$

 
$
224.5

 
$

 
$
62.4

 
$
134.4

 
$

 
$
196.8

Liabilities from long-term manufacturing contracts and advances

 
20.0

 
89.2

 

 
109.2

 

 
26.6

 
99.3

 

 
125.9

Accrued compensation
5.2

 
19.1

 
44.6

 

 
68.9

 
7.2

 
20.1

 
44.6

 

 
71.9

Intercompany payables
1,214.5

 
8.8

 

 
(1,223.3
)
 

 
1,206.2

 
6.1

 

 
(1,212.3
)
 

Other current liabilities
24.1

 
42.6

 
67.0

 
(10.0
)
 
123.7

 
19.4

 
38.9

 
78.1

 
0.7

 
137.1

Total current liabilities
1,244.0

 
153.0

 
362.6

 
(1,233.3
)
 
526.3

 
1,232.8

 
154.1

 
356.4

 
(1,211.6
)
 
531.7

Long-term debt
323.2

 

 

 

 
323.2

 
300.2

 

 
44.4

 

 
344.6

Accrued pension and postretirement healthcare
0.7

 
28.8

 
84.7

 

 
114.2

 
0.7

 
29.8

 
90.0

 

 
120.5

Deferred income taxes

 
23.1

 
61.1

 
(13.4
)
 
70.8

 
0.7

 
22.9

 
60.9

 
(8.1
)
 
76.4

Other long-term liabilities
38.5

 
12.9

 
8.9

 

 
60.3

 
24.1

 
14.3

 
8.9

 

 
47.3

Total Liabilities
1,606.4

 
217.8

 
517.3

 
(1,246.7
)
 
1,094.8

 
1,558.5

 
221.1

 
560.6

 
(1,219.7
)
 
1,120.5

Total Hillenbrand Shareholders’ Equity
781.2

 
2,320.2

 
694.9

 
(3,015.1
)
 
781.2

 
731.1

 
2,295.8

 
621.2

 
(2,917.0
)
 
731.1

Noncontrolling interests

 

 
14.6

 

 
14.6

 

 

 
13.0

 

 
13.0

Total Equity
781.2

 
2,320.2

 
709.5

 
(3,015.1
)
 
795.8

 
731.1

 
2,295.8

 
634.2

 
(2,917.0
)
 
744.1

Total Liabilities and Equity
$
2,387.6

 
$
2,538.0

 
$
1,226.8

 
$
(4,261.8
)
 
$
1,890.6

 
$
2,289.6

 
$
2,516.9

 
$
1,194.8

 
$
(4,136.7
)
 
$
1,864.6



Condensed Consolidating Statements of Cash Flows
 
 
Nine Months Ended June 30, 2019
 
Nine Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
     operating activities
$
18.2

 
$
105.2

 
$
92.6

 
$
(106.4
)
 
$
109.6

 
$
186.0

 
$
126.6

 
$
(32.0
)
 
$
(124.3
)
 
$
156.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(0.7
)
 
(5.6
)
 
(6.3
)
 

 
(12.6
)
 
(1.5
)
 
(7.5
)
 
(7.3
)
 

 
(16.3
)
Acquisition of business, net of cash
     acquired

 

 
(25.9
)
 

 
(25.9
)
 

 

 

 

 

Other, net

 
0.1

 

 

 
0.1

 

 

 
0.4

 

 
0.4

Net cash used in investing activities
(0.7
)
 
(5.5
)
 
(32.2
)
 

 
(38.4
)
 
(1.5
)
 
(7.5
)
 
(6.9
)
 

 
(15.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan

 

 

 

 

 
(148.5
)
 

 

 

 
(148.5
)
Proceeds from revolving credit facilities,
     net of financing costs
215.0

 

 
234.7

 

 
449.7

 
530.6

 

 
415.9

 

 
946.5

Repayments on revolving credit facilities
(192.3
)
 

 
(277.8
)
 

 
(470.1
)
 
(472.9
)
 

 
(364.3
)
 

 
(837.2
)
Payment of dividends - intercompany

 
(100.0
)
 
(6.4
)
 
106.4

 

 

 
(118.3
)
 
(6.0
)
 
124.3

 

Payment of dividends on common stock
(39.4
)
 

 

 

 
(39.4
)
 
(39.1
)
 

 

 

 
(39.1
)
Repurchases of common stock

 

 

 

 

 
(60.6
)
 

 

 

 
(60.6
)
Proceeds from stock option exercises and
     other
2.4

 

 

 

 
2.4

 
10.3

 

 

 

 
10.3

Payments for employee taxes on net
     settlement equity awards
(4.2
)
 


 


 


 
(4.2
)
 
(4.1
)
 

 

 

 
(4.1
)
Other, net

 

 
(0.9
)
 

 
(0.9
)
 

 

 
(1.8
)
 

 
(1.8
)
Net cash (used in) provided by
     financing activities
(18.5
)
 
(100.0
)
 
(50.4
)
 
106.4

 
(62.5
)
 
(184.3
)
 
(118.3
)
 
43.8

 
124.3

 
(134.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
     cash equivalents

 

 
(0.2
)
 

 
(0.2
)
 

 

 
(1.0
)
 

 
(1.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(1.0
)
 
(0.3
)
 
9.8

 

 
8.5

 
0.2

 
0.8

 
3.9

 

 
4.9

Cash, cash equivalents and restricted cash at
     beginning of period
1.1

 
5.8

 
49.6

 

 
56.5

 
0.1

 
5.0

 
61.6

 

 
66.7

Cash, cash equivalents and restricted cash at
     end of period
$
0.1

 
$
5.5

 
$
59.4

 
$

 
$
65.0

 
$
0.3

 
$
5.8

 
$
65.5

 
$

 
$
71.6