Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v3.20.1
Condensed Consolidating Information
6 Months Ended
Mar. 31, 2020
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 obligations under its senior unsecured notes.  The following are the condensed consolidating financial statements, including the guarantors, which present the statements of operations, 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 Operations
 
Three Months Ended March 31, 2020
 
Three Months Ended March 31, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
212.6

 
$
493.2

 
$
(56.9
)
 
$
648.9

 
$

 
$
230.6

 
$
294.1

 
$
(60.1
)
 
$
464.6

Cost of goods sold

 
117.2

 
367.8

 
(29.8
)
 
455.2

 

 
126.8

 
210.0

 
(33.1
)
 
303.7

Gross profit

 
95.4

 
125.4

 
(27.1
)
 
193.7

 

 
103.8

 
84.1

 
(27.0
)
 
160.9

Operating expenses
15.0

 
57.6

 
90.5

 
(27.1
)
 
136.0

 
13.7

 
60.9

 
46.1

 
(27.0
)
 
93.7

Amortization expense

 
3.4

 
20.6

 

 
24.0

 

 
3.4

 
5.2

 

 
8.6

Impairment charges

 
54.7

 
27.8

 

 
82.5

 

 

 

 

 

Interest expense
0.3

 
0.2

 
20.4

 

 
20.9

 
4.7

 
0.1

 
0.6

 

 
5.4

Other (expense) income, net
(0.5
)
 
(0.7
)
 
0.5

 

 
(0.7
)
 
(0.2
)
 
(0.1
)
 
0.4

 

 
0.1

Equity in net income of subsidiaries
(43.7
)
 
2.5

 

 
41.2

 

 
51.4

 
3.5

 

 
(54.9
)
 

(Loss) income before income taxes
(59.5
)
 
(18.7
)
 
(33.4
)
 
41.2

 
(70.4
)
 
32.8

 
42.8

 
32.6

 
(54.9
)
 
53.3

Income tax expense (benefit)
14.5

 
(5.2
)
 
(7.5
)
 

 
1.8

 
(5.2
)
 
10.6

 
8.4

 

 
13.8

Consolidated net (loss) income
(74.0
)
 
(13.5
)
 
(25.9
)
 
41.2

 
(72.2
)
 
38.0

 
32.2

 
24.2

 
(54.9
)
 
39.5

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
1.8

 

 
1.8

 

 

 
1.5

 

 
1.5

Net (loss) income attributable to Hillenbrand
$
(74.0
)
 
$
(13.5
)
 
$
(27.7
)
 
$
41.2

 
$
(74.0
)
 
$
38.0

 
$
32.2

 
$
22.7

 
$
(54.9
)
 
$
38.0

Consolidated comprehensive (loss) income
$
(105.6
)
 
$
(15.1
)
 
$
(55.3
)
 
$
71.7

 
$
(104.3
)
 
$
30.5

 
$
32.4

 
$
19.6

 
$
(50.5
)
 
$
32.0

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
1.3

 

 
1.3

 

 

 
1.5

 

 
1.5

Comprehensive (loss) income attributable to Hillenbrand
$
(105.6
)
 
$
(15.1
)
 
$
(56.6
)
 
$
71.7

 
$
(105.6
)
 
$
30.5

 
$
32.4

 
$
18.1

 
$
(50.5
)
 
$
30.5



 
Six Months Ended March 31, 2020
 
Six Months Ended March 31, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
418.1

 
$
910.2

 
$
(112.5
)
 
$
1,215.8

 
$

 
$
446.7

 
$
541.9

 
$
(113.7
)
 
$
874.9

Cost of goods sold

 
234.9

 
674.1

 
(58.7
)
 
850.3

 

 
242.6

 
384.4

 
(60.0
)
 
567.0

Gross profit

 
183.2

 
236.1

 
(53.8
)
 
365.5

 

 
204.1

 
157.5

 
(53.7
)
 
307.9

Operating expenses
63.6

 
116.1

 
167.5

 
(53.8
)
 
293.4

 
23.9

 
122.3

 
91.9

 
(53.7
)
 
184.4

Amortization expense

 
6.7

 
32.1

 

 
38.8

 

 
6.7

 
9.7

 

 
16.4

Impairment charges

 
54.7

 
27.8

 

 
82.5

 

 

 

 

 

Interest expense
5.5

 
0.2

 
29.9

 

 
35.6

 
9.2

 
0.1

 
1.6

 

 
10.9

Other income (expense), net
0.4

 
(1.6
)
 
2.4

 

 
1.2

 
(0.5
)
 
(0.1
)
 
1.2

 

 
0.6

Equity in net income of subsidiaries
(18.1
)
 
4.3

 

 
13.8

 

 
93.4

 
5.7

 

 
(99.1
)
 

(Loss) income before income taxes
(86.8
)
 
8.2

 
(18.8
)
 
13.8

 
(83.6
)
 
59.8

 
80.6

 
55.5

 
(99.1
)
 
96.8

Income tax (benefit) expense
(9.7
)
 
1.0

 
(1.9
)
 

 
(10.6
)
 
(6.5
)
 
20.5

 
14.3

 

 
28.3

Consolidated net (loss) income
(77.1
)
 
7.2

 
(16.9
)
 
13.8

 
(73.0
)
 
66.3

 
60.1

 
41.2

 
(99.1
)
 
68.5

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
4.1

 

 
4.1

 

 

 
2.2

 

 
2.2

Net (loss) income attributable to Hillenbrand
$
(77.1
)
 
$
7.2

 
$
(21.0
)
 
$
13.8

 
$
(77.1
)
 
$
66.3

 
$
60.1

 
$
39.0

 
$
(99.1
)
 
$
66.3

Consolidated comprehensive (loss) income
$
(88.8
)
 
$
3.8

 
$
(29.4
)
 
$
29.1

 
$
(85.3
)
 
$
48.7

 
$
60.2

 
$
31.4

 
$
(89.2
)
 
$
51.1

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
3.5

 

 
3.5

 

 

 
2.4

 

 
2.4

Comprehensive (loss) income attributable to Hillenbrand
$
(88.8
)
 
$
3.8

 
$
(32.9
)
 
$
29.1

 
$
(88.8
)
 
$
48.7

 
$
60.2

 
$
29.0

 
$
(89.2
)
 
$
48.7
























Condensed Consolidating Balance Sheets
 
March 31, 2020
 
September 30, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
145.3

 
$
11.5

 
$
217.2

 
$

 
$
374.0

 
$
283.1

 
$
9.6

 
$
106.3

 
$

 
$
399.0

Trade receivables, net

 
92.3

 
200.5

 

 
292.8

 

 
113.6

 
103.8

 

 
217.4

Receivables from long-term manufacturing contracts

 
13.2

 
174.1

 

 
187.3

 

 
9.8

 
171.3

 

 
181.1

Inventories, net

 
78.2

 
347.9

 
(2.8
)
 
423.3

 

 
78.2

 
101.2

 
(2.8
)
 
176.6

Intercompany receivables

 
1,135.2

 
149.9

 
(1,285.1
)
 

 

 
1,179.7

 

 
(1,179.7
)
 

Prepaid expenses and other current assets
4.6

 
25.3

 
54.8

 
2.0

 
86.7

 
2.5

 
6.1

 
40.1

 
0.4

 
49.1

Total current assets
149.9

 
1,355.7

 
1,144.4

 
(1,285.9
)
 
1,364.1

 
285.6

 
1,397.0

 
522.7

 
(1,182.1
)
 
1,023.2

Property, plant and equipment, net
3.7

 
60.8

 
284.2

 

 
348.7

 
3.8

 
61.2

 
75.3

 

 
140.3

Operating lease right-of-use assets
0.7

 
13.2

 
151.1

 

 
165.0

 

 

 

 

 

Intangible assets, net
2.3

 
174.3

 
924.7

 

 
1,101.3

 
2.4

 
181.4

 
271.1

 

 
454.9

Goodwill

 
170.3

 
963.2

 

 
1,133.5

 

 
225.0

 
353.0

 

 
578.0

Investment in consolidated subsidiaries
3,947.1

 
654.1

 

 
(4,601.2
)
 

 
2,266.4

 
655.2

 

 
(2,921.6
)
 

Other long-term assets
49.9

 
27.4

 
27.7

 
(26.9
)
 
78.1

 
33.8

 
20.5

 
3.1

 
(25.2
)
 
32.2

Total Assets
$
4,153.6

 
$
2,455.8

 
$
3,495.3

 
$
(5,914.0
)
 
$
4,190.7

 
$
2,592.0

 
$
2,540.3

 
$
1,225.2

 
$
(4,128.9
)
 
$
2,228.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
3.9

 
$
60.4

 
$
233.6

 
$

 
$
297.9

 
$
2.6

 
$
59.0

 
$
174.6

 
$

 
$
236.2

Liabilities from long-term manufacturing contracts and advances

 
13.0

 
163.6

 

 
176.6

 

 
13.5

 
144.7

 

 
158.2

Current portion of long-term debt
45.3

 

 
1.4

 

 
46.7

 

 

 

 

 

Accrued compensation
3.0

 
13.3

 
61.9

 

 
78.2

 
6.9

 
20.8

 
45.5

 

 
73.2

Intercompany payables
1,287.9

 

 

 
(1,287.9
)
 

 
1,167.0

 
10.2

 
5.3

 
(1,182.5
)
 

Other current liabilities
26.2

 
54.8

 
124.5

 
0.3

 
205.8

 
19.2

 
45.0

 
67.1

 
(9.6
)
 
121.7

Total current liabilities
1,366.3

 
141.5

 
585.0

 
(1,287.6
)
 
805.2

 
1,195.7

 
148.5

 
437.2

 
(1,192.1
)
 
589.3

Long-term debt
1,754.8

 

 
71.8

 

 
1,826.6

 
619.5

 

 

 

 
619.5

Accrued pension and postretirement healthcare
0.9

 
30.4

 
126.6

 

 
157.9

 
0.8

 
32.1

 
98.4

 

 
131.3

Operating lease liabilities
0.4

 
10.3

 
120.1

 

 
130.8

 

 

 

 

 

Deferred income taxes

 
12.0

 
200.7

 
(25.2
)
 
187.5

 

 
24.0

 
64.8

 
(15.2
)
 
73.6

Other long-term liabilities
22.2

 
14.7

 
18.8

 

 
55.7

 
21.9

 
12.5

 
10.7

 

 
45.1

Total Liabilities
3,144.6

 
208.9

 
1,123.0

 
(1,312.8
)
 
3,163.7

 
1,837.9

 
217.1

 
611.1

 
(1,207.3
)
 
1,458.8

Hillenbrand Shareholders’ Equity
1,009.0

 
2,246.9

 
2,354.3

 
(4,601.2
)
 
1,009.0

 
754.1

 
2,323.2

 
598.4

 
(2,921.6
)
 
754.1

Noncontrolling interests

 

 
18.0

 

 
18.0

 

 

 
15.7

 

 
15.7

Total Shareholders’ Equity
1,009.0

 
2,246.9

 
2,372.3

 
(4,601.2
)
 
1,027.0

 
754.1

 
2,323.2

 
614.1

 
(2,921.6
)
 
769.8

Total Liabilities and Shareholders’ Equity
$
4,153.6

 
$
2,455.8

 
$
3,495.3

 
$
(5,914.0
)
 
$
4,190.7

 
$
2,592.0

 
$
2,540.3

 
$
1,225.2

 
$
(4,128.9
)
 
$
2,228.6


Condensed Consolidating Statements of Cash Flows
 
 
Six Months Ended March 31, 2020
 
Six Months Ended March 31, 2019
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
     operating activities
$
2.0

 
$
103.2

 
$
42.6

 
$
(102.5
)
 
$
45.3

 
$
(4.7
)
 
$
103.0

 
$
54.6

 
$
(106.4
)
 
$
46.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(0.7
)
 
(5.3
)
 
(9.0
)
 

 
(15.0
)
 
(0.4
)
 
(3.6
)
 
(4.3
)
 

 
(8.3
)
Proceeds from sales of property, plant, and
     equipment

 
0.1

 
13.2

 

 
13.3

 

 

 

 

 

Acquisition of businesses, net of cash
      acquired
(1,503.1
)
 

 

 

 
(1,503.1
)
 

 

 
(26.2
)
 

 
(26.2
)
Proceeds from divestiture, net of cash
      divested
222.4

 
 
 
 
 
 
 
222.4

 

 

 

 

 

Other, net

 

 

 

 

 

 
0.1

 

 

 
0.1

Net cash (used in) provided by investing
       activities
(1,281.4
)
 
(5.2
)
 
4.2

 

 
(1,282.4
)
 
(0.4
)
 
(3.5
)
 
(30.5
)
 

 
(34.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Proceeds from issuance of long-term debt
725.0

 

 

 

 
725.0

 

 

 

 

 

Repayments on long-term debt
(9.1
)
 

 

 

 
(9.1
)
 

 

 

 

 

Proceeds from revolving credit facilities
804.0

 

 
278.8

 

 
1,082.8

 
164.0

 

 
178.0

 

 
342.0

Repayments on revolving credit facilities
(338.0
)
 

 
(206.7
)
 

 
(544.7
)
 
(130.8
)
 

 
(193.0
)
 

 
(323.8
)
Payment of deferred financing costs
(7.0
)
 

 

 

 
(7.0
)
 

 

 

 

 

Payment of dividends - intercompany

 
(96.1
)
 
(6.4
)
 
102.5

 

 

 
(100.0
)
 
(6.4
)
 
106.4

 

Payment of dividends on common stock
(31.7
)
 

 

 

 
(31.7
)
 
(26.2
)
 

 

 

 
(26.2
)
Proceeds from stock option exercises
0.2

 

 

 

 
0.2

 
1.4

 

 

 

 
1.4

Payments for employee taxes on net
     settlement equity awards
(1.8
)
 

 

 

 
(1.8
)
 
(4.2
)
 

 

 

 
(4.2
)
Other, net

 

 
(1.1
)
 

 
(1.1
)
 

 

 
(0.5
)
 

 
(0.5
)
Net cash provided by (used in)
     financing activities
1,141.6

 
(96.1
)
 
64.6

 
102.5

 
1,212.6

 
4.2

 
(100.0
)
 
(21.9
)
 
106.4

 
(11.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
     cash equivalents

 

 
(0.5
)
 

 
(0.5
)
 

 

 
2.1

 

 
2.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(137.8
)
 
1.9

 
110.9

 

 
(25.0
)
 
(0.9
)
 
(0.5
)
 
4.3

 

 
2.9

Cash, cash equivalents and restricted cash at
     beginning of period
283.1

 
9.6

 
106.7

 

 
399.4

 
1.1

 
5.8

 
49.6

 

 
56.5

Cash, cash equivalents and restricted cash at
     end of period
$
145.3

 
$
11.5

 
$
217.6

 
$

 
$
374.4

 
$
0.2

 
$
5.3

 
$
53.9

 
$

 
$
59.4