Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographical Information

v3.22.4
Segment and Geographical Information
 3 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and Geographical Information Segment and Geographical Information As previously described in Note 1, on December 15, 2022, the Company entered into a definitive agreement to sell its Batesville reportable operating segment, which was completed on February 1, 2023. The operating results and cash flows for the Batesville reportable operating segment have been classified as discontinued operations within the Consolidated Financial Statements for all periods presented.
As a result of classifying the Batesville reportable operating segment as a discontinued operation, Hillenbrand is now composed of two reportable operating segments: Advanced Process Solutions and Molding Technology Solutions. The Company’s reportable operating segments maintain separate financial information for which results of operations are evaluated on a regular basis by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company records the direct costs of business operations to the reportable operating segments, including stock-based compensation, asset impairments, restructuring activities, and business acquisition costs.  Corporate provides management and administrative services to each reportable operating segment.  These services include treasury management, human resources, legal, business development, information technology, tax compliance, global supply management, sustainability, and other public company support functions such as internal audit, investor relations, and financial reporting.  With limited exception for certain professional services and back-office and technology costs, the Company does not allocate these types of corporate expenses to the reportable operating segments.

The following tables present financial information for the Company’s reportable operating segments and significant geographical locations:
  Three Months Ended December 31,
  2022 2021
Net revenue    
Advanced Process Solutions $ 412.8  $ 317.1 
Molding Technology Solutions 242.9  248.8 
Total $ 655.7  $ 565.9 
Adjusted EBITDA (1)
   
Advanced Process Solutions $ 71.3  $ 54.6 
Molding Technology Solutions 43.1  51.8 
Corporate (13.1) (16.9)
Net revenue (2)
   
United States $ 232.9  $ 162.9 
China 120.2  148.7 
India 52.4  50.9 
Germany 44.5  34.2 
All other countries 205.7  169.2 
Total $ 655.7  $ 565.9 
 
(1)Adjusted earnings before interest, income tax, depreciation, and amortization (“adjusted EBITDA”) is a non-GAAP measure used by management to measure segment performance and make operating decisions.
(2)The Company attributes net revenue to a geography based upon the location of the end customer.
  December 31,
2022		 September 30,
2022
Total assets    
Advanced Process Solutions $ 2,493.8  $ 1,494.2 
Molding Technology Solutions 2,046.7  2,052.6 
Corporate 107.4  99.3 
Held for sale assets 238.0  221.4 
Total $ 4,885.9  $ 3,867.5 
Tangible long-lived assets, net    
United States $ 95.6  $ 79.3 
Germany 129.9  104.1 
China 41.8  42.2 
India 39.4  40.7 
All other countries 84.5  53.5 
Total $ 391.2  $ 319.8 

The following schedule reconciles reportable operating segment adjusted EBITDA to consolidated net income:
  Three Months Ended
December 31,
2022 2021
Adjusted EBITDA:
   Advanced Process Solutions $ 71.3  $ 54.6 
   Molding Technology Solutions 43.1  51.8 
   Corporate (13.1) (16.9)
Add:
     Income from discontinued operations (net of income tax expense) 21.0  27.9 
Less:    
Interest income (1.8) (0.9)
Interest expense 23.3  17.9 
Income tax expense 2.3  13.3 
Depreciation and amortization 31.0  25.6 
Business acquisition, disposition, and integration costs 10.7  7.6 
Inventory step up charges 8.0  — 
Restructuring and restructuring-related charges 1.0  0.7 
Loss on divestiture —  3.1 
Consolidated net income $ 47.8  $ 50.1