Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v2.4.1.9
Condensed Consolidating Information
6 Months Ended
Mar. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Information
Condensed Consolidating Information
 
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 revolving credit facility, term loan, senior unsecured notes, Series A Notes, and LG Facility.  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 March 31, 2015
 
Three Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
235.7

 
$
220.0

 
$
(51.1
)
 
$
404.6

 
$

 
$
212.4

 
$
227.4

 
$
(43.0
)
 
$
396.8

Cost of goods sold

 
119.2

 
162.2

 
(25.4
)
 
256.0

 

 
104.8

 
165.6

 
(16.4
)
 
254.0

Gross profit

 
116.5

 
57.8

 
(25.7
)
 
148.6

 

 
107.6

 
61.8

 
(26.6
)
 
142.8

Operating expenses
10.7

 
63.8

 
42.9

 
(25.7
)
 
91.7

 
11.8

 
63.3

 
51.4

 
(26.6
)
 
99.9

Operating profit
(10.7
)
 
52.7

 
14.9

 

 
56.9

 
(11.8
)
 
44.3

 
10.4

 

 
42.9

Interest expense
5.2

 
0.4

 
0.8

 

 
6.4

 
4.8

 

 
0.8

 

 
5.6

Other income (expense), net
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
 
0.2

 
10.1

 
(0.6
)
 

 
9.7

Equity in net income (loss) of subsidiaries
40.9

 
3.0

 

 
(43.9
)
 

 
40.9

 
3.0

 

 
(43.9
)
 

Income (loss) before income taxes
23.3

 
54.7

 
11.4

 
(43.9
)
 
45.5

 
24.5

 
57.4

 
9.0

 
(43.9
)
 
47.0

Income tax expense (benefit)
(7.4
)
 
19.2

 
2.5

 

 
14.3

 
(8.5
)
 
19.9

 
2.3

 

 
13.7

Consolidated net income
30.7

 
35.5

 
8.9

 
(43.9
)
 
31.2

 
33.0

 
37.5

 
6.7

 
(43.9
)
 
33.3

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.5

 

 
0.5

 

 

 
0.3

 

 
0.3

Net income (1)
$
30.7

 
$
35.5

 
$
8.4

 
$
(43.9
)
 
$
30.7

 
$
33.0

 
$
37.5

 
$
6.4

 
$
(43.9
)
 
$
33.0

Consolidated comprehensive income
$
(8.6
)
 
$
36.4

 
$
(32.7
)
 
$
(3.2
)
 
$
(8.1
)
 
$
33.5

 
$
38.2

 
$
6.7

 
$
(44.4
)
 
$
34.0

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.5

 

 
0.5

 

 

 
0.5

 

 
0.5

Comprehensive income (2)
$
(8.6
)
 
$
36.4

 
$
(33.2
)
 
$
(3.2
)
 
$
(8.6
)
 
$
33.5

 
$
38.2

 
$
6.2

 
$
(44.4
)
 
$
33.5

 
Six Months Ended March 31, 2015
 
Six Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
452.4

 
$
453.5

 
$
(99.8
)
 
$
806.1

 
$

 
$
412.7

 
$
452.4

 
$
(83.4
)
 
$
781.7

Cost of goods sold

 
233.5

 
335.0

 
(49.4
)
 
519.1

 

 
207.3

 
332.2

 
(31.6
)
 
507.9

Gross profit

 
218.9

 
118.5

 
(50.4
)
 
287.0

 

 
205.4

 
120.2

 
(51.8
)
 
273.8

Operating expenses
18.8

 
126.7

 
87.8

 
(50.4
)
 
182.9

 
20.8

 
125.2

 
99.7

 
(51.8
)
 
193.9

Operating profit
(18.8
)
 
92.2

 
30.7

 

 
104.1

 
(20.8
)
 
80.2

 
20.5

 

 
79.9

Interest expense
10.1

 
0.4

 
1.6

 

 
12.1

 
9.7

 
0.1

 
2.1

 

 
11.9

Other income (expense), net
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
 
0.1

 
9.4

 
0.1

 

 
9.6

Equity in net income (loss) of subsidiaries
75.0

 
5.2

 

 
(80.2
)
 

 
69.5

 
4.9

 

 
(74.4
)
 

Income (loss) before income taxes
44.4

 
96.4

 
26.4

 
(80.2
)
 
87.0

 
39.1

 
94.4

 
18.5

 
(74.4
)
 
77.6

Income tax expense (benefit)
(15.8
)
 
34.1

 
7.8

 

 
26.1

 
(14.2
)
 
33.1

 
3.8

 

 
22.7

Consolidated net income
60.2

 
62.3

 
18.6

 
(80.2
)
 
60.9

 
53.3

 
61.3

 
14.7

 
(74.4
)
 
54.9

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.7

 

 
0.7

 

 

 
1.6

 

 
1.6

Net income (1)
$
60.2

 
$
62.3

 
$
17.9

 
$
(80.2
)
 
$
60.2

 
$
53.3

 
$
61.3

 
$
13.1

 
$
(74.4
)
 
$
53.3

Consolidated comprehensive income
$
1.2

 
$
64.0

 
$
(30.4
)
 
$
(33.0
)
 
$
1.8

 
$
65.2

 
$
62.7

 
$
25.3

 
$
(86.3
)
 
$
66.9

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.6

 

 
0.6

 

 

 
1.7

 

 
1.7

Comprehensive income (2)
$
1.2

 
$
64.0

 
$
(31.0
)
 
$
(33.0
)
 
$
1.2

 
$
65.2

 
$
62.7

 
$
23.6

 
$
(86.3
)
 
$
65.2



 (1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand















Condensed Consolidating Balance Sheets
 
March 31, 2015
 
September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and equivalents
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

 
$
0.4

 
$
10.6

 
$
47.0

 
$

 
$
58.0

Trade receivables, net

 
102.6

 
69.7

 

 
172.3

 

 
113.2

 
77.8

 

 
191.0

Unbilled receivables from long-term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
manufacturing contracts

 
6.5

 
127.8

 

 
134.3

 

 
4.0

 
145.3

 

 
149.3

Inventories

 
80.9

 
97.1

 
(3.1
)
 
174.9

 

 
69.7

 
101.8

 
(3.0
)
 
168.5

Deferred income taxes
8.5

 
17.2

 
3.0

 

 
28.7

 
10.6

 
17.3

 
2.6

 

 
30.5

Prepaid expense
3.0

 
8.2

 
10.2

 

 
21.4

 
2.5

 
4.9

 
11.6

 

 
19.0

Intercompany receivables
283.8

 
1,129.0

 
36.6

 
(1,449.4
)
 

 
291.0

 
1,189.9

 
5.3

 
(1,486.2
)
 

Other current assets
0.5

 
1.7

 
14.9

 
0.7

 
17.8

 
1.2

 
2.1

 
17.8

 
0.4

 
21.5

Total current assets
295.9

 
1,353.6

 
394.7

 
(1,451.8
)
 
592.4

 
305.7

 
1,411.7

 
409.2

 
(1,488.8
)
 
637.8

Property, plant and equipment, net
6.7

 
65.6

 
80.4

 

 
152.7

 
6.7

 
65.4

 
87.4

 

 
159.5

Intangible assets, net
2.3

 
180.4

 
282.1

 

 
464.8

 
2.5

 
186.1

 
321.9

 

 
510.5

Goodwill

 
211.7

 
324.1

 

 
535.8

 

 
211.7

 
359.0

 

 
570.7

Investment in consolidated subsidiaries
1,983.8

 
645.9

 

 
(2,629.7
)
 

 
2,000.2

 
644.0

 

 
(2,644.2
)
 

Other assets
33.9

 
25.9

 
3.8

 
(21.0
)
 
42.6

 
25.8

 
9.9

 
4.3

 

 
40.0

Total Assets
$
2,322.6

 
$
2,483.1

 
$
1,085.1

 
$
(4,102.5
)
 
$
1,788.3

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.4

 
$
25.9

 
$
91.4

 
$
0.3

 
$
118.0

 
$
3.0

 
$
32.8

 
$
156.8

 
$

 
$
192.6

Liabilities from long-term manufacturing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
contracts and advances

 
22.8

 
56.5

 

 
79.3

 

 
20.4

 
55.7

 

 
76.1

Current portion of long-term debt
9.0

 

 

 

 
9.0

 
15.0

 

 

 

 
15.0

Accrued compensation
22.6

 
20.5

 
8.0

 

 
51.1

 
5.0

 
55.3

 
9.3

 

 
69.6

Deferred income taxes

 

 
21.4

 

 
21.4

 

 
1.6

 
19.1

 

 
20.7

Intercompany payables
1,174.9

 
277.6

 

 
(1,452.5
)
 

 
1,202.7

 
286.5

 

 
(1,489.2
)
 

Other current liabilities
3.2

 
48.9

 
74.7

 
(19.4
)
 
107.4

 
4.1

 
61.6

 
51.0

 
0.4

 
117.1

Total current liabilities
1,210.1

 
395.7

 
252.0

 
(1,471.6
)
 
386.2

 
1,229.8

 
458.2

 
291.9

 
(1,488.8
)
 
491.1

Long-term debt
550.0

 

 
11.8

 

 
561.8

 
525.9

 

 
17.6

 

 
543.5

Accrued pension and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
postretirement healthcare
1.1

 
95.7

 
88.3

 

 
185.1

 
1.0

 
94.2

 
105.7

 

 
200.9

Deferred income taxes

 
19.9

 
29.5

 
(0.3
)
 
49.1

 
0.8

 
15.1

 
39.5

 

 
55.4

Other long-term liabilities
0.1

 
23.4

 
11.1

 
(0.9
)
 
33.7

 
0.1

 
27.7

 
6.0

 

 
33.8

Total Liabilities
1,761.3

 
534.7

 
392.7

 
(1,472.8
)
 
1,215.9

 
1,757.6

 
595.2

 
460.7

 
(1,488.8
)
 
1,324.7

Total Hillenbrand Shareholders’ Equity
561.3

 
1,948.4

 
681.3

 
(2,629.7
)
 
561.3

 
583.3

 
1,933.6

 
710.6

 
(2,644.2
)
 
583.3

Noncontrolling interests

 

 
11.1

 

 
11.1

 

 

 
10.5

 

 
10.5

Total Equity
561.3

 
1,948.4

 
692.4

 
(2,629.7
)
 
572.4

 
583.3

 
1,933.6

 
721.1

 
(2,644.2
)
 
593.8

Total Liabilities and Equity
$
2,322.6

 
$
2,483.1

 
$
1,085.1

 
$
(4,102.5
)
 
$
1,788.3

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5




Condensed Consolidating Statements of Cash Flows
 
 
Six Months Ended March 31, 2015
 
Six Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operating activities
$
12.7

 
$
84.8

 
$
(1.7
)
 
$
(85.6
)
 
$
10.2

 
$
13.0

 
$
37.2

 
$
79.3

 
$
(47.3
)
 
$
82.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(0.8
)
 
(7.2
)
 
(3.9
)
 

 
(11.9
)
 
(0.8
)
 
(6.4
)
 
(4.2
)
 

 
(11.4
)
Proceeds from sales of property, plant,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and equipment

 
0.5

 

 

 
0.5

 

 
0.7

 

 

 
0.7

Proceeds from warrant exercise

 

 

 

 

 

 
5.7

 

 

 
5.7

Other, net

 
(0.9
)
 
(0.2
)
 

 
(1.1
)
 

 

 
0.9

 

 
0.9

Net cash used in investing activities
(0.8
)
 
(7.6
)
 
(4.1
)
 

 
(12.5
)
 
(0.8
)
 

 
(3.3
)
 

 
(4.1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(4.5
)
 

 

 

 
(4.5
)
 
(5.0
)
 

 

 

 
(5.0
)
Proceeds from revolving credit facilities
191.0

 

 
63.4

 

 
254.4

 
158.0

 

 
24.6

 

 
182.6

Repayments on revolving credit facilities
(268.5
)
 

 
(63.5
)
 

 
(332.0
)
 
(137.5
)
 

 
(81.1
)
 

 
(218.6
)
Proceeds from unsecured Series A Notes,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
net of financing costs
99.6

 

 

 

 
99.6

 

 

 

 

 

Proceeds from other borrowings

 

 

 

 

 

 

 
1.0

 

 
1.0

Payment of dividends on common stock
(25.2
)
 

 

 

 
(25.2
)
 
(24.8
)
 

 

 

 
(24.8
)
Payment of dividends - intercompany

 
(80.3
)
 
(5.3
)
 
85.6

 

 

 
(38.4
)
 
(8.9
)
 
47.3

 

Repurchases of common stock
(9.2
)
 

 

 

 
(9.2
)
 
(16.5
)
 

 

 

 
(16.5
)
Net proceeds on stock plans
3.4

 

 

 

 
3.4

 
12.7

 

 

 

 
12.7

Other, net
1.2

 

 

 

 
1.2

 
0.9

 

 
(0.8
)
 

 
0.1

Net cash (used in) provided by
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
financing activities
(12.2
)
 
(80.3
)
 
(5.4
)
 
85.6

 
(12.3
)
 
(12.2
)
 
(38.4
)
 
(65.2
)
 
47.3

 
(68.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
cash equivalents

 

 
(0.4
)
 

 
(0.4
)
 

 

 
(1.3
)
 

 
(1.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(0.3
)
 
(3.1
)
 
(11.6
)
 

 
(15.0
)
 

 
(1.2
)
 
9.5

 

 
8.3

Cash and equivalents at beginning of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
period
0.4

 
10.6

 
47.0

 

 
58.0

 
0.6

 
8.7

 
33.4

 

 
42.7

Cash and equivalents at end of period
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

 
$
0.6

 
$
7.5

 
$
42.9

 
$

 
$
51.0