Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v2.4.0.8
Condensed Consolidating Information
3 Months Ended
Dec. 31, 2013
Condensed Consolidating Information  
Condensed Consolidating Information

16.       Condensed Consolidating Information

 

On January 9, 2013, the Company’s subsidiary, Coperion Corporation, a Delaware corporation, was joined as a party to the Guaranty dated July 27, 2012 (“Guaranty”), by certain subsidiaries of the Company (including Coperion Corporation, the “Guarantors”), which was entered into in connection with the Company’s revolving credit facility.  In accordance with the terms of the revolving credit facility, Coperion Corporation was required to join the Guaranty as a material domestic subsidiary of the Company following the acquisition of Coperion Capital GmbH.

 

On January 10, 2013, the Company, the Guarantors, and U.S. Bank National Association (“Trustee”) entered into a supplemental indenture pursuant to which the Guarantors agreed to guarantee the obligations of the Company under its 5.50% Notes due 2020 issued pursuant to an Indenture entered into on July 9, 2010, between the Company and the Trustee.  As such, certain 100% owned subsidiaries of Hillenbrand fully and unconditionally, jointly and severally, agreed to guarantee all of the indebtedness relating to our obligations under our 5.50% Notes due 2020.  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 December 31, 2013

 

Three months ended December 31, 2012

 

 

 

Parent

 

Guarantors

 

Non-
Guarantors

 

Eliminations

 

Consolidated

 

Parent

 

Guarantors

 

Non-
Guarantors

 

Eliminations

 

Consolidated

 

Net revenue

 

$

 

$

200.3

 

$

225.0

 

$

(40.4

)

$

384.9

 

$

 

$

198.7

 

$

148.2

 

$

(41.7

)

$

305.2

 

Cost of goods sold

 

 

102.5

 

166.6

 

(15.2

)

253.9

 

 

98.5

 

110.9

 

(14.7

)

194.7

 

Gross profit

 

 

97.8

 

58.4

 

(25.2

)

131.0

 

 

100.2

 

37.3

 

(27.0

)

110.5

 

Operating expenses

 

9.0

 

61.9

 

48.3

 

(25.2

)

94.0

 

18.1

 

60.8

 

34.5

 

(27.0

)

86.4

 

Operating profit

 

(9.0

)

35.9

 

10.1

 

 

37.0

 

(18.1

)

39.4

 

2.8

 

 

24.1

 

Interest expense

 

4.9

 

0.1

 

1.3

 

 

6.3

 

4.1

 

 

0.4

 

 

4.5

 

Other income (expense), net

 

(0.1

)

(0.7

)

0.7

 

 

(0.1

)

1.5

 

(0.9

)

0.3

 

 

0.9

 

Equity in net income (loss) of subsidiaries

 

28.6

 

1.9

 

 

(30.5

)

 

25.1

 

1.5

 

 

(26.6

)

 

Income (loss) before income taxes

 

14.6

 

37.0

 

9.5

 

(30.5

)

30.6

 

4.4

 

40.0

 

2.7

 

(26.6

)

20.5

 

Income tax expense (benefit)

 

(5.7

)

13.2

 

1.5

 

 

9.0

 

(9.9

)

14.4

 

1.4

 

 

5.9

 

Consolidated net income

 

20.3

 

23.8

 

8.0

 

(30.5

)

21.6

 

14.3

 

25.6

 

1.3

 

(26.6

)

14.6

 

Less: Net income attributable to noncontrolling interests

 

 

 

1.3

 

 

1.3

 

 

 

0.3

 

 

0.3

 

Net income (loss)(1)

 

$

20.3

 

$

23.8

 

$

6.7

 

$

(30.5

)

$

20.3

 

$

14.3

 

$

25.6

 

$

1.0

 

$

(26.6

)

$

14.3

 

Consolidated comprehensive income (loss)

 

$

31.8

 

$

24.5

 

$

18.7

 

$

(42.0

)

$

33.0

 

$

25.6

 

$

25.6

 

$

15.2

 

$

(40.5

)

$

25.9

 

Less: Comprehensive income attributable to noncontrolling interests

 

 

 

1.2

 

 

1.2

 

 

 

0.3

 

 

0.3

 

Comprehensive income (loss)(2)

 

$

31.8

 

$

24.5

 

$

17.5

 

$

(42.0

)

$

31.8

 

$

25.6

 

$

25.6

 

$

14.9

 

$

(40.5

)

$

25.6

 

 

(1) Net income attributable to Hillenbrand

(2) Comprehensive income attributable to Hillenbrand

 

Condensed Consolidating Balance Sheets

 

 

 

As of December 31, 2013

 

As of September 30, 2013

 

 

 

Parent

 

Guarantors

 

Non-
Guarantors

 

Eliminations

 

Consolidated

 

Parent

 

Guarantors

 

Non-
Guarantors

 

Eliminations

 

Consolidated

 

Cash and equivalents

 

$

1.2

 

$

9.0

 

$

52.1

 

$

 

$

62.3

 

$

0.6

 

$

8.7

 

$

33.4

 

$

 

$

42.7

 

Trade receivables, net

 

 

92.7

 

96.9

 

 

189.6

 

 

97.0

 

116.4

 

 

213.4

 

Unbilled receivables from long-term manufacturing contracts

 

 

9.6

 

121.4

 

 

131.0

 

 

15.2

 

126.9

 

 

142.1

 

Inventories

 

 

75.6

 

105.9

 

(2.9

)

178.6

 

 

72.4

 

107.8

 

(2.7

)

177.5

 

Deferred income taxes

 

9.1

 

11.4

 

2.9

 

 

23.4

 

9.1

 

8.3

 

4.9

 

 

22.3

 

Prepaid expense

 

1.5

 

4.6

 

22.8

 

 

28.9

 

1.0

 

4.4

 

15.0

 

 

20.4

 

Intercompany receivables

 

238.3

 

1,019.9

 

71.7

 

(1,329.9

)

 

222.5

 

1,011.3

 

33.3

 

(1,267.1

)

 

Other current assets

 

0.5

 

2.7

 

14.3

 

(0.8

)

16.7

 

0.4

 

4.3

 

17.0

 

(0.7

)

21.0

 

Total current assets

 

250.6

 

1,225.5

 

488.0

 

(1,333.6

)

630.5

 

233.6

 

1,221.6

 

454.7

 

(1,270.5

)

639.4

 

Property, plant and equipment, net

 

7.4

 

67.8

 

96.7

 

 

171.9

 

7.4

 

69.0

 

95.5

 

 

171.9

 

Intangible assets, net

 

2.6

 

191.6

 

361.9

 

 

556.1

 

2.7

 

194.3

 

361.6

 

 

558.6

 

Goodwill

 

 

209.1

 

390.3

 

 

599.4

 

 

209.3

 

376.5

 

 

585.8

 

Investment in consolidated subsidiaries

 

1,987.2

 

644.0

 

 

(2,631.2

)

 

1,938.9

 

644.0

 

 

(2,582.9

)

 

Other assets

 

13.1

 

19.4

 

13.5

 

 

46.0

 

13.9

 

19.0

 

15.5

 

(0.9

)

47.5

 

Total Assets

 

$

2,260.9

 

$

2,357.4

 

$

1,350.4

 

$

(3,964.8

)

$

2,003.9

 

$

2,196.5

 

$

2,357.2

 

$

1,303.8

 

$

(3,854.3

)

$

2,003.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

$

0.3

 

$

21.0

 

$

148.3

 

$

 

$

169.6

 

$

0.6

 

$

25.8

 

$

156.8

 

$

 

$

183.2

 

Liabilities from long-term manufacturing contracts and advances

 

 

13.8

 

83.3

 

 

97.1

 

 

12.3

 

68.6

 

 

80.9

 

Current portion of long-term debt

 

11.2

 

 

 

 

11.2

 

10.0

 

 

 

 

10.0

 

Accrued compensation

 

1.0

 

14.7

 

28.4

 

(0.8

)

43.3

 

3.6

 

22.3

 

33.7

 

 

59.6

 

Deferred income taxes

 

 

 

11.0

 

 

11.0

 

 

 

12.1

 

 

12.1

 

Intercompany payables

 

1,091.0

 

233.1

 

8.7

 

(1,332.8

)

 

1,048.1

 

221.7

 

 

(1,269.8

)

 

Other current liabilities

 

5.0

 

62.6

 

50.0

 

 

117.6

 

3.6

 

69.3

 

47.5

 

(0.7

)

119.7

 

Total current liabilities

 

1,108.5

 

345.2

 

329.7

 

(1,333.6

)

449.8

 

1,065.9

 

351.4

 

318.7

 

(1,270.5

)

465.5

 

Long-term debt

 

555.1

 

 

85.4

 

 

640.5

 

562.3

 

 

92.0

 

 

654.3

 

Accrued pension and postretirement healthcare

 

1.0

 

84.9

 

107.1

 

 

193.0

 

 

86.1

 

104.2

 

 

190.3

 

Deferred income taxes

 

 

21.8

 

52.2

 

 

74.0

 

 

46.2

 

30.1

 

(0.9

)

75.4

 

Other long-term liabilities

 

 

23.6

 

16.2

 

 

39.8

 

 

24.4

 

17.0

 

 

41.4

 

Total Liabilities

 

1,664.6

 

475.5

 

590.6

 

(1,333.6

)

1,397.1

 

1,628.2

 

508.1

 

562.0

 

(1,271.4

)

1,426.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Hillenbrand Shareholders’ Equity

 

596.3

 

1,881.9

 

749.3

 

(2,631.2

)

596.3

 

568.3

 

1,849.1

 

733.8

 

(2,582.9

)

568.3

 

Noncontrolling interests

 

 

 

10.5

 

 

10.5

 

 

 

8.0

 

 

8.0

 

Total Equity

 

596.3

 

1,881.9

 

759.8

 

(2,631.2

)

606.8

 

568.3

 

1,849.1

 

741.8

 

(2,582.9

)

576.3

 

Total Liabilities and Equity

 

$

2,260.9

 

$

2,357.4

 

$

1,350.4

 

$

(3,964.8

)

$

2,003.9

 

$

2,196.5

 

$

2,357.2

 

$

1,303.8

 

$

(3,854.3

)

$

2,003.2

 

 

Condensed Consolidating Statements of Cash Flows

 

 

 

Three months ended December 31, 2013

 

Three months ended December 31, 2012

 

 

 

Parent

 

Guarantors

 

Non-
Guarantors

 

Eliminations

 

Consolidated

 

Parent

 

Guarantors

 

Non-
Guarantors

 

Eliminations

 

Consolidated

 

Net cash provided by (used in) operating activities

 

$

11.8

 

$

2.2

 

$

31.9

 

$

 

$

45.9

 

$

(12.1

)

$

26.9

 

$

4.9

 

$

 

$

19.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(0.3

)

(1.9

)

(3.4

)

 

(5.6

)

(0.9

)

(2.7

)

(2.0

)

 

(5.6

)

Proceeds from property, plant, and equipment

 

 

 

 

 

 

1.1

 

0.1

 

 

 

1.2

 

Proceeds from sales of investments

 

 

 

 

 

 

1.4

 

 

 

 

1.4

 

Acquisition of business, net of cash acquired

 

 

 

 

 

 

(404.2

)

(0.5

)

(10.9

)

 

(415.6

)

Other, net

 

(0.6

)

 

 

 

(0.6

)

 

 

 

 

 

Net cash used in investing activities

 

(0.9

)

(1.9

)

(3.4

)

 

(6.2

)

(402.6

)

(3.1

)

(12.9

)

 

(418.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from term loan

 

 

 

 

 

 

200.0

 

 

 

 

200.0

 

Repayments on term loan

 

(2.5

)

 

 

 

(2.5

)

(2.5

)

 

 

 

(2.5

)

Proceeds from revolving credit facilities, net of financing costs

 

76.5

 

 

17.7

 

 

94.2

 

484.1

 

 

51.2

 

 

535.3

 

Repayments on revolving credit facilities

 

(80.0

)

 

(25.9

)

 

(105.9

)

(238.0

)

 

 

 

(238.0

)

Payment of dividends on common stock

 

(12.4

)

 

 

 

(12.4

)

(12.1

)

 

 

 

(12.1

)

Net proceeds (payments) on stock plans

 

7.6

 

 

 

 

7.6

 

(2.7

)

 

 

 

(2.7

)

Other, net

 

0.5

 

 

(0.8

)

 

(0.3

)

 

 

 

 

 

Net cash (used in) provided by financing activities

 

(10.3

)

 

(9.0

)

 

(19.3

)

428.8

 

 

51.2

 

 

480.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rates on cash and cash equivalents

 

 

 

(0.8

)

 

(0.8

)

 

 

0.8

 

 

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow

 

0.6

 

0.3

 

18.7

 

 

19.6

 

14.1

 

23.8

 

44.0

 

 

81.9

 

Cash and equivalents at beginning of period

 

0.6

 

8.7

 

33.4

 

 

42.7

 

3.9

 

6.3

 

10.0

 

 

20.2

 

Cash and equivalents at end of period

 

$

1.2

 

$

9.0

 

$

52.1

 

$

 

$

62.3

 

$

18.0

 

$

30.1

 

$

54.0

 

$

 

$

102.1