Annual report pursuant to Section 13 and 15(d)

Restructuring

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Restructuring
12 Months Ended
Sep. 30, 2012
Restructuring  
Restructuring

16.             Restructuring

 

During the fiscal year ended September 30, 2012, Hillenbrand incurred $8.5 of restructuring costs ($3.9 at the Batesville business platform, $3.7 at the Process Equipment Group, and $0.9 at Corporate).  These costs consisted of $4.2 of primarily termination benefits at Batesville and the Process Equipment Group classified as cost of goods sold ($3.3 at Batesville and $0.9 at the Process Equipment Group).  These costs also included $4.3 of operating expenses that represent termination benefits at Batesville, costs related to the consolidation of manufacturing facilities in the Process Equipment Group, and Corporate costs related to our joint ownership interests in aircraft distributed to us when we separated from Hill-Rom as well as termination benefits related to the cessation of airport operations ($0.6 at Batesville, $2.8 at the Process Equipment Group, and $0.9 at Corporate).  Future charges related to these restructurings are not expected to be significant.  Substantially all severance and exit costs have been paid as of September 30, 2012.

 

Batesville management consistently sizes operations to respond to changing market conditions and consumer preferences, and continuously evaluates capacity to ensure they are making the products their customers require in the most efficient manner possible.  Batesville consolidated its first and second shifts at one of its plants and converted one of its international manufacturing facilities into a distribution center.  Batesville also incurred restructuring charges related to a workforce reduction.

 

We continue to see progress in the implementation of Hillenbrand Lean Business principles in our Process Equipment Group.  We strategically realigned the Process Equipment Group through the consolidation of certain manufacturing facilities.  This resulted in the closure of one manufacturing plant enabling the Process Equipment Group to more efficiently meet customer needs, while continuing to provide the same high-quality products and services.