Schedule of condensed consolidating statements of income |
|
|
Three months ended March 31, 2014
|
|
Three months ended March 31, 2013
|
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Net revenue
|
|
$
|
—
|
|
$
|
212.4
|
|
$
|
227.4
|
|
$
|
(43.0
|
)
|
$
|
396.8
|
|
$
|
—
|
|
$
|
227.6
|
|
$
|
216.6
|
|
$
|
(45.7
|
)
|
$
|
398.5
|
|
Cost of goods sold
|
|
—
|
|
104.8
|
|
165.6
|
|
(16.4
|
)
|
254.0
|
|
—
|
|
114.7
|
|
166.2
|
|
(16.4
|
)
|
264.5
|
|
Gross profit
|
|
—
|
|
107.6
|
|
61.8
|
|
(26.6
|
)
|
142.8
|
|
—
|
|
112.9
|
|
50.4
|
|
(29.3
|
)
|
134.0
|
|
Operating expenses
|
|
11.8
|
|
63.3
|
|
51.4
|
|
(26.6
|
)
|
99.9
|
|
9.7
|
|
67.9
|
|
60.1
|
|
(29.3
|
)
|
108.4
|
|
Operating profit
|
|
(11.8
|
)
|
44.3
|
|
10.4
|
|
—
|
|
42.9
|
|
(9.7
|
)
|
45.0
|
|
(9.7
|
)
|
—
|
|
25.6
|
|
Interest expense
|
|
4.8
|
|
—
|
|
0.8
|
|
—
|
|
5.6
|
|
5.5
|
|
0.1
|
|
1.2
|
|
—
|
|
6.8
|
|
Other income (expense), net
|
|
0.2
|
|
10.1
|
|
(0.6
|
)
|
—
|
|
9.7
|
|
—
|
|
(0.8
|
)
|
0.5
|
|
—
|
|
(0.3
|
)
|
Equity in net income (loss) of subsidiaries
|
|
40.9
|
|
3.0
|
|
—
|
|
(43.9
|
)
|
—
|
|
22.0
|
|
2.7
|
|
—
|
|
(24.7
|
)
|
—
|
|
Income (loss) before income taxes
|
|
24.5
|
|
57.4
|
|
9.0
|
|
(43.9
|
)
|
47.0
|
|
6.8
|
|
46.8
|
|
(10.4
|
)
|
(24.7
|
)
|
18.5
|
|
Income tax expense (benefit)
|
|
(8.5
|
)
|
19.9
|
|
2.3
|
|
—
|
|
13.7
|
|
(5.9
|
)
|
16.4
|
|
(5.2
|
)
|
—
|
|
5.3
|
|
Consolidated net income
|
|
33.0
|
|
37.5
|
|
6.7
|
|
(43.9
|
)
|
33.3
|
|
12.7
|
|
30.4
|
|
(5.2
|
)
|
(24.7
|
)
|
13.2
|
|
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
—
|
|
0.3
|
|
—
|
|
0.3
|
|
—
|
|
—
|
|
0.5
|
|
—
|
|
0.5
|
|
Net income (loss)(1)
|
|
$
|
33.0
|
|
$
|
37.5
|
|
$
|
6.4
|
|
$
|
(43.9
|
)
|
$
|
33.0
|
|
$
|
12.7
|
|
$
|
30.4
|
|
$
|
(5.7
|
)
|
$
|
(24.7
|
)
|
$
|
12.7
|
|
Consolidated comprehensive income (loss)
|
|
$
|
33.5
|
|
$
|
38.2
|
|
$
|
6.7
|
|
$
|
(44.4
|
)
|
$
|
34.0
|
|
$
|
(7.2
|
)
|
$
|
31.7
|
|
$
|
(26.3
|
)
|
$
|
(4.9
|
)
|
$
|
(6.7
|
)
|
Less: Comprehensive income attributable to noncontrolling interests
|
|
—
|
|
—
|
|
0.5
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
0.5
|
|
—
|
|
0.5
|
|
Comprehensive income (loss)(2)
|
|
$
|
33.5
|
|
$
|
38.2
|
|
$
|
6.2
|
|
$
|
(44.4
|
)
|
$
|
33.5
|
|
$
|
(7.2
|
)
|
$
|
31.7
|
|
$
|
(26.8
|
)
|
$
|
(4.9
|
)
|
$
|
(7.2
|
)
|
|
|
Six months ended March 31, 2014
|
|
Six months ended March 31, 2013
|
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Net revenue
|
|
$
|
—
|
|
$
|
412.7
|
|
$
|
452.4
|
|
$
|
(83.4
|
)
|
$
|
781.7
|
|
$
|
—
|
|
$
|
426.3
|
|
$
|
364.8
|
|
$
|
(87.4
|
)
|
$
|
703.7
|
|
Cost of goods sold
|
|
—
|
|
207.3
|
|
332.2
|
|
(31.6
|
)
|
507.9
|
|
—
|
|
213.2
|
|
277.1
|
|
(31.1
|
)
|
459.2
|
|
Gross profit
|
|
—
|
|
205.4
|
|
120.2
|
|
(51.8
|
)
|
273.8
|
|
—
|
|
213.1
|
|
87.7
|
|
(56.3
|
)
|
244.5
|
|
Operating expenses
|
|
20.8
|
|
125.2
|
|
99.7
|
|
(51.8
|
)
|
193.9
|
|
27.8
|
|
128.7
|
|
94.6
|
|
(56.3
|
)
|
194.8
|
|
Operating profit
|
|
(20.8
|
)
|
80.2
|
|
20.5
|
|
—
|
|
79.9
|
|
(27.8
|
)
|
84.4
|
|
(6.9
|
)
|
—
|
|
49.7
|
|
Interest expense
|
|
9.7
|
|
0.1
|
|
2.1
|
|
—
|
|
11.9
|
|
9.6
|
|
0.1
|
|
1.6
|
|
—
|
|
11.3
|
|
Other income (expense), net
|
|
0.1
|
|
9.4
|
|
0.1
|
|
—
|
|
9.6
|
|
1.5
|
|
(1.7
|
)
|
0.8
|
|
—
|
|
0.6
|
|
Equity in net income (loss) of subsidiaries
|
|
69.5
|
|
4.9
|
|
—
|
|
(74.4
|
)
|
—
|
|
47.1
|
|
4.2
|
|
—
|
|
(51.3
|
)
|
—
|
|
Income before income taxes
|
|
39.1
|
|
94.4
|
|
18.5
|
|
(74.4
|
)
|
77.6
|
|
11.2
|
|
86.8
|
|
(7.7
|
)
|
(51.3
|
)
|
39.0
|
|
Income tax expense (benefit)
|
|
(14.2
|
)
|
33.1
|
|
3.8
|
|
—
|
|
22.7
|
|
(15.8
|
)
|
30.8
|
|
(3.8
|
)
|
—
|
|
11.2
|
|
Consolidated net income
|
|
53.3
|
|
61.3
|
|
14.7
|
|
(74.4
|
)
|
54.9
|
|
27.0
|
|
56.0
|
|
(3.9
|
)
|
(51.3
|
)
|
27.8
|
|
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
—
|
|
1.6
|
|
—
|
|
1.6
|
|
—
|
|
—
|
|
0.8
|
|
—
|
|
0.8
|
|
Net income (loss)(1)
|
|
$
|
53.3
|
|
$
|
61.3
|
|
$
|
13.1
|
|
$
|
(74.4
|
)
|
$
|
53.3
|
|
$
|
27.0
|
|
$
|
56.0
|
|
$
|
(4.7
|
)
|
$
|
(51.3
|
)
|
$
|
27.0
|
|
Consolidated Comprehensive income (loss)
|
|
$
|
65.2
|
|
$
|
62.7
|
|
$
|
25.3
|
|
$
|
(86.3
|
)
|
$
|
66.9
|
|
$
|
18.4
|
|
$
|
57.3
|
|
$
|
(11.1
|
)
|
$
|
(45.4
|
)
|
$
|
19.2
|
|
Less: Comprehensive income attributable to noncontrolling interests
|
|
—
|
|
—
|
|
1.7
|
|
—
|
|
1.7
|
|
—
|
|
—
|
|
0.8
|
|
—
|
|
0.8
|
|
Comprehensive income (loss)(2)
|
|
$
|
65.2
|
|
$
|
62.7
|
|
$
|
23.6
|
|
$
|
(86.3
|
)
|
$
|
65.2
|
|
$
|
18.4
|
|
$
|
57.3
|
|
$
|
(11.9
|
)
|
$
|
(45.4
|
)
|
$
|
18.4
|
|
(1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand
|
Schedule of condensed consolidating balance sheets |
|
|
As of March 31, 2014
|
|
As of September 30, 2013
|
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Cash and equivalents
|
|
$
|
0.6
|
|
$
|
7.5
|
|
$
|
42.9
|
|
$
|
—
|
|
$
|
51.0
|
|
$
|
0.6
|
|
$
|
8.7
|
|
$
|
33.4
|
|
$
|
—
|
|
$
|
42.7
|
|
Trade receivables, net
|
|
—
|
|
99.5
|
|
85.7
|
|
—
|
|
185.2
|
|
—
|
|
97.0
|
|
116.4
|
|
—
|
|
213.4
|
|
Unbilled receivables from long-term manufacturing contracts
|
|
—
|
|
1.0
|
|
136.3
|
|
—
|
|
137.3
|
|
—
|
|
15.2
|
|
126.9
|
|
—
|
|
142.1
|
|
Inventories
|
|
—
|
|
76.4
|
|
109.7
|
|
(3.0
|
)
|
183.1
|
|
—
|
|
72.4
|
|
107.8
|
|
(2.7
|
)
|
177.5
|
|
Deferred income taxes
|
|
9.1
|
|
3.1
|
|
2.8
|
|
—
|
|
15.0
|
|
9.1
|
|
8.3
|
|
4.9
|
|
—
|
|
22.3
|
|
Prepaid expense
|
|
2.5
|
|
7.8
|
|
23.8
|
|
—
|
|
34.1
|
|
1.0
|
|
4.4
|
|
15.0
|
|
—
|
|
20.4
|
|
Intercompany receivables
|
|
249.9
|
|
1,040.5
|
|
20.9
|
|
(1,311.3
|
)
|
—
|
|
222.5
|
|
1,011.3
|
|
33.3
|
|
(1,267.1
|
)
|
—
|
|
Other current assets
|
|
1.0
|
|
2.0
|
|
16.6
|
|
—
|
|
19.6
|
|
0.4
|
|
4.3
|
|
17.0
|
|
(0.7
|
)
|
21.0
|
|
Total current assets
|
|
263.1
|
|
1,237.8
|
|
438.7
|
|
(1,314.3
|
)
|
625.3
|
|
233.6
|
|
1,221.6
|
|
454.7
|
|
(1,270.5
|
)
|
639.4
|
|
Property, plant and equipment, net
|
|
7.2
|
|
67.7
|
|
95.5
|
|
—
|
|
170.4
|
|
7.4
|
|
69.0
|
|
95.5
|
|
—
|
|
171.9
|
|
Intangible assets, net
|
|
2.7
|
|
188.9
|
|
357.2
|
|
—
|
|
548.8
|
|
2.7
|
|
194.3
|
|
361.6
|
|
—
|
|
558.6
|
|
Goodwill
|
|
—
|
|
209.1
|
|
388.9
|
|
—
|
|
598.0
|
|
—
|
|
209.3
|
|
376.5
|
|
—
|
|
585.8
|
|
Investment in consolidated subsidiaries
|
|
1,989.1
|
|
644.0
|
|
—
|
|
(2,633.1
|
)
|
—
|
|
1,938.9
|
|
644.0
|
|
—
|
|
(2,582.9
|
)
|
—
|
|
Other assets
|
|
13.2
|
|
25.1
|
|
14.2
|
|
(0.9
|
)
|
51.6
|
|
13.9
|
|
19.0
|
|
15.5
|
|
(0.9
|
)
|
47.5
|
|
Total Assets
|
|
$
|
2,275.3
|
|
$
|
2,372.6
|
|
$
|
1,294.5
|
|
$
|
(3,948.3
|
)
|
$
|
1,994.1
|
|
$
|
2,196.5
|
|
$
|
2,357.2
|
|
$
|
1,303.8
|
|
$
|
(3,854.3
|
)
|
$
|
2,003.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
$
|
1.0
|
|
$
|
25.9
|
|
$
|
150.8
|
|
$
|
—
|
|
$
|
177.7
|
|
$
|
0.6
|
|
$
|
25.8
|
|
$
|
156.8
|
|
$
|
—
|
|
$
|
183.2
|
|
Liabilities from long-term manufacturing contracts and advances
|
|
—
|
|
19.9
|
|
76.9
|
|
—
|
|
96.8
|
|
—
|
|
12.3
|
|
68.6
|
|
—
|
|
80.9
|
|
Current portion of long-term debt
|
|
12.5
|
|
—
|
|
1.0
|
|
—
|
|
13.5
|
|
10.0
|
|
—
|
|
—
|
|
—
|
|
10.0
|
|
Accrued compensation
|
|
2.4
|
|
18.7
|
|
32.5
|
|
—
|
|
53.6
|
|
3.6
|
|
22.3
|
|
33.7
|
|
—
|
|
59.6
|
|
Deferred income taxes
|
|
—
|
|
—
|
|
13.6
|
|
—
|
|
13.6
|
|
—
|
|
—
|
|
12.1
|
|
—
|
|
12.1
|
|
Intercompany payables
|
|
1,070.3
|
|
244.0
|
|
—
|
|
(1,314.3
|
)
|
—
|
|
1,048.1
|
|
221.7
|
|
—
|
|
(1,269.8
|
)
|
—
|
|
Other current liabilities
|
|
2.9
|
|
48.2
|
|
50.9
|
|
—
|
|
102.0
|
|
3.6
|
|
69.3
|
|
47.5
|
|
(0.7
|
)
|
119.7
|
|
Total current liabilities
|
|
1,089.1
|
|
356.7
|
|
325.7
|
|
(1,314.3
|
)
|
457.2
|
|
1,065.9
|
|
351.4
|
|
318.7
|
|
(1,270.5
|
)
|
465.5
|
|
Long-term debt
|
|
575.4
|
|
—
|
|
37.2
|
|
—
|
|
612.6
|
|
562.3
|
|
—
|
|
92.0
|
|
—
|
|
654.3
|
|
Accrued pension and postretirement healthcare
|
|
1.0
|
|
84.5
|
|
105.7
|
|
—
|
|
191.2
|
|
—
|
|
86.1
|
|
104.2
|
|
—
|
|
190.3
|
|
Deferred income taxes
|
|
—
|
|
22.8
|
|
49.6
|
|
(0.9
|
)
|
71.5
|
|
—
|
|
46.2
|
|
30.1
|
|
(0.9
|
)
|
75.4
|
|
Other long-term liabilities
|
|
—
|
|
24.8
|
|
16.0
|
|
—
|
|
40.8
|
|
—
|
|
24.4
|
|
17.0
|
|
—
|
|
41.4
|
|
Total Liabilities
|
|
1,665.5
|
|
488.8
|
|
534.2
|
|
(1,315.2
|
)
|
1,373.3
|
|
1,628.2
|
|
508.1
|
|
562.0
|
|
(1,271.4
|
)
|
1,426.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Hillenbrand Shareholders’ Equity
|
|
609.8
|
|
1,883.8
|
|
749.3
|
|
(2,633.1
|
)
|
609.8
|
|
568.3
|
|
1,849.1
|
|
733.8
|
|
(2,582.9
|
)
|
568.3
|
|
Noncontrolling interests
|
|
—
|
|
—
|
|
11.0
|
|
—
|
|
11.0
|
|
—
|
|
—
|
|
8.0
|
|
—
|
|
8.0
|
|
Total Equity
|
|
609.8
|
|
1,883.8
|
|
760.3
|
|
(2,633.1
|
)
|
620.8
|
|
568.3
|
|
1,849.1
|
|
741.8
|
|
(2,582.9
|
)
|
576.3
|
|
Total Liabilities and Equity
|
|
$
|
2,275.3
|
|
$
|
2,372.6
|
|
$
|
1,294.5
|
|
$
|
(3,948.3
|
)
|
$
|
1,994.1
|
|
$
|
2,196.5
|
|
$
|
2,357.2
|
|
$
|
1,303.8
|
|
$
|
(3,854.3
|
)
|
$
|
2,003.2
|
|
|
Schedule of condensed consolidating statements of cash flows |
|
|
Six months ended March 31, 2014
|
|
Six months ended March 31, 2013
|
|
|
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
|
Net cash provided by (used in) operating activities
|
|
$
|
13.0
|
|
$
|
37.2
|
|
$
|
79.3
|
|
$
|
(47.3
|
)
|
$
|
82.2
|
|
$
|
61.9
|
|
$
|
98.3
|
|
$
|
(44.6
|
)
|
$
|
(95.9
|
)
|
$
|
19.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(0.8
|
)
|
(6.4
|
)
|
(4.2
|
)
|
—
|
|
(11.4
|
)
|
(1.7
|
)
|
(5.1
|
)
|
(4.4
|
)
|
—
|
|
(11.2
|
)
|
Proceeds from property, plant, and equipment
|
|
—
|
|
0.7
|
|
—
|
|
—
|
|
0.7
|
|
1.0
|
|
0.1
|
|
—
|
|
—
|
|
1.1
|
|
Proceeds from warrant exercise
|
|
—
|
|
5.7
|
|
—
|
|
—
|
|
5.7
|
|
1.8
|
|
—
|
|
—
|
|
—
|
|
1.8
|
|
Acquisition of business, net of cash acquired
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(404.2
|
)
|
(0.5
|
)
|
(10.9
|
)
|
—
|
|
(415.6
|
)
|
Other, net
|
|
—
|
|
—
|
|
0.9
|
|
—
|
|
0.9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Net cash provided by (used in) investing activities
|
|
(0.8
|
)
|
—
|
|
(3.3
|
)
|
—
|
|
(4.1
|
)
|
(403.1
|
)
|
(5.5
|
)
|
(15.3
|
)
|
—
|
|
(423.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from term loan
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
200.0
|
|
—
|
|
—
|
|
—
|
|
200.0
|
|
Repayments on term loan
|
|
(5.0
|
)
|
—
|
|
—
|
|
—
|
|
(5.0
|
)
|
(5.0
|
)
|
—
|
|
—
|
|
—
|
|
(5.0
|
)
|
Proceeds from revolving credit facilities, net of financing costs
|
|
158.0
|
|
—
|
|
24.6
|
|
—
|
|
182.6
|
|
490.8
|
|
—
|
|
85.9
|
|
—
|
|
576.7
|
|
Repayments on revolving credit facilities
|
|
(137.5
|
)
|
—
|
|
(81.1
|
)
|
—
|
|
(218.6
|
)
|
(323.0
|
)
|
—
|
|
—
|
|
—
|
|
(323.0
|
)
|
Proceeds from other borrowings
|
|
—
|
|
—
|
|
1.0
|
|
—
|
|
1.0
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Payment of dividends - intercompany
|
|
—
|
|
(38.4
|
)
|
(8.9
|
)
|
47.3
|
|
—
|
|
—
|
|
(90.3
|
)
|
(5.6
|
)
|
95.9
|
|
—
|
|
Payment of dividends on common stock
|
|
(24.8
|
)
|
—
|
|
—
|
|
—
|
|
(24.8
|
)
|
(24.3
|
)
|
—
|
|
—
|
|
—
|
|
(24.3
|
)
|
Purchase of common stock
|
|
(16.5
|
)
|
—
|
|
—
|
|
—
|
|
(16.5
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Net proceeds (payments) on stock plans
|
|
12.7
|
|
—
|
|
—
|
|
—
|
|
12.7
|
|
(0.8
|
)
|
—
|
|
—
|
|
—
|
|
(0.8
|
)
|
Other, net
|
|
0.9
|
|
—
|
|
(0.8
|
)
|
—
|
|
0.1
|
|
0.4
|
|
—
|
|
—
|
|
—
|
|
0.4
|
|
Net cash provided by (used in) financing activities
|
|
(12.2
|
)
|
(38.4
|
)
|
(65.2
|
)
|
47.3
|
|
(68.5
|
)
|
338.1
|
|
(90.3
|
)
|
80.3
|
|
95.9
|
|
424.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents
|
|
—
|
|
—
|
|
(1.3
|
)
|
—
|
|
(1.3
|
)
|
—
|
|
—
|
|
0.7
|
|
—
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow
|
|
—
|
|
(1.2
|
)
|
9.5
|
|
—
|
|
8.3
|
|
(3.1
|
)
|
2.5
|
|
21.1
|
|
—
|
|
20.5
|
|
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
|
|
$
|
0.6
|
|
$
|
7.5
|
|
$
|
42.9
|
|
$
|
—
|
|
$
|
51.0
|
|
$
|
0.8
|
|
$
|
8.8
|
|
$
|
31.1
|
|
$
|
—
|
|
$
|
40.7
|
|
|