Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Information

v3.5.0.2
Condensed Consolidating Information
12 Months Ended
Sep. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Information
Condensed Consolidating Information
 
In January 2013, the Company’s subsidiary, Coperion Corporation, a Delaware corporation, was joined as a party to the Guaranty dated July 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.
 
In January 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 in July 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

 
Year Ended September 30, 2016
 
Year Ended September 30, 2015
 
Year Ended September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$


$
846.8


$
892.8


$
(201.2
)

$
1,538.4


$


$
912.0


$
889.0


$
(204.2
)

$
1,596.8


$


$
866.1


$
1,001.9


$
(200.8
)

$
1,667.2

Cost of goods sold


428.7


638.4


(99.3
)

967.8




475.6


654.5


(103.7
)

1,026.4




441.9


736.0


(99.9
)

1,078.0

Gross profit


418.1


254.4


(101.9
)

570.6




436.4


234.5


(100.5
)

570.4




424.2


265.9


(100.9
)

589.2

Operating expenses
41.8


242.0


164.6


(101.9
)

346.5


33.1


244.1


153.9


(100.5
)

330.6


41.0


261.4


181.6


(100.9
)

383.1

Amortization expense

 
13.0

 
20.0

 

 
33.0

 
0.4

 
11.4

 
16.3

 

 
28.1

 
0.5

 
11.4

 
19.7

 

 
31.6

Pension settlement charge










3.3


14.4






17.7











Interest expense
22.7


0.2


2.4




25.3


20.5


0.8


2.5




23.8


18.9


0.4


4.0




23.3

Other income (expense), net
(0.3
)

(2.2
)

0.8




(1.7
)

(0.2
)

(4.0
)

(3.7
)



(7.9
)

(0.1
)

8.5


0.3




8.7

Equity in net income (loss) of subsidiaries
144.4


10.2




(154.6
)



141.1


12.5




(153.6
)



144.4


10.3




(154.7
)


Income (loss) before income taxes
79.6


170.9


68.2


(154.6
)

164.1


83.6


174.2


58.1


(153.6
)

162.3


83.9


169.8


60.9


(154.7
)

159.9

Income tax expense (benefit)
(33.2
)

62.4


18.1




47.3


(27.8
)

60.5


16.4




49.1


(25.8
)

59.7


14.8




48.7

Consolidated net income
112.8


108.5


50.1


(154.6
)

116.8


111.4


113.7


41.7


(153.6
)

113.2


109.7


110.1


46.1


(154.7
)

111.2

Less: Net income attributable to noncontrolling interests




4.0




4.0






1.8




1.8






1.5




1.5

Net income (loss)(1)
$
112.8


$
108.5


$
46.1


$
(154.6
)

$
112.8


$
111.4


$
113.7


$
39.9


$
(153.6
)

$
111.4


$
109.7


$
110.1


$
44.6


$
(154.7
)

$
109.7

Consolidated comprehensive income (loss)
$
90.9


$
116.4


$
33.1


$
(145.8
)

$
94.6


$
55.7


$
103.5


$
0.8


$
(102.9
)

$
57.1


$
58.9


$
100.7


$
(8.4
)

$
(90.9
)

$
60.3

Less: Comprehensive income attributable to noncontrolling interests




3.7




3.7






1.4




1.4






1.4




1.4

Comprehensive income (loss)(2)
$
90.9


$
116.4


$
29.4


$
(145.8
)

$
90.9


$
55.7


$
103.5


$
(0.6
)

$
(102.9
)

$
55.7


$
58.9


$
100.7


$
(9.8
)

$
(90.9
)

$
58.9


 
(1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand
Condensed Consolidating Balance Sheets
 
 
September 30, 2016
 
September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and equivalents
$
4.4


$
5.6


$
42.0


$


$
52.0


$
0.3


$
7.1


$
40.9


$


$
48.3

Trade receivables, net


120.6


84.4




205.0




113.4


74.5




187.9

Unbilled receivables from long-term manufacturing contracts


10.6


115.2




125.8




13.5


131.4




144.9

Inventories


69.8


86.1


(2.8
)

153.1




69.0


87.1


(2.5
)

153.6

Deferred income taxes
1.6


17.4




4.9


23.9


1.8


15.7


4.4




21.9

Prepaid expense
2.2


6.5


9.5




18.2


2.8


6.5


14.5




23.8

Intercompany receivables


1,003.1


97.4


(1,100.5
)





921.8


60.2


(982.0
)


Other current assets
4.6


1.5


15.9


0.3


22.3


0.6


1.9


20.8


0.4


23.7

Total current assets
12.8


1,235.1


450.5


(1,098.1
)

600.3


5.5


1,148.9


433.8


(984.1
)

604.1

Property, plant and equipment, net
4.9


65.7


81.9




152.5


6.3


66.2


85.8




158.3

Intangible assets, net
4.1


220.4


317.0




541.5


2.2


175.6


281.8




459.6

Goodwill


271.8


362.5




634.3




211.7


332.3




544.0

Investment in consolidated subsidiaries
2,143.4


820.2




(2,963.6
)



2,082.7


836.1




(2,918.8
)


Other assets
20.1


22.7


0.8


(11.3
)

32.3


24.5


31.0


0.9


(14.3
)

42.1

Total Assets
$
2,185.3


$
2,635.9


$
1,212.7


$
(4,073.0
)

$
1,960.9


$
2,121.2


$
2,469.5


$
1,134.6


$
(3,917.2
)

$
1,808.1

 





























Trade accounts payable
$
0.4


$
28.4


$
106.9


$


$
135.7


$
0.5


$
22.7


$
81.3


$
(0.2
)

$
104.3

Liabilities from long-term manufacturing contracts and advances


14.0


64.6




78.6




13.5


66.2




79.7

Current portion of long-term debt
13.5




0.3




13.8


9.0




0.4




9.4

Accrued compensation
4.7


17.3


35.3




57.3


3.9


23.0


35.4




62.3

Deferred income taxes




18.1


4.7


22.8






25.4




25.4

Intercompany payables
1,098.8


4.5




(1,103.3
)



979.7


4.8




(984.5
)


Other current liabilities
13.9


39.8


71.6


0.2


125.5


18.1


46.0


58.6


0.4


123.1

Total current liabilities
1,131.3


104.0


296.8


(1,098.4
)

433.7


1,011.2


110.0


267.3


(984.3
)

404.2

Long-term debt
417.8




178.5




596.3


513.1




5.6




518.7

Accrued pension and postretirement healthcare
1.1


127.0


104.6




232.7


1.1


119.8


97.8




218.7

Deferred income taxes


5.8


27.8


(11.0
)

22.6




17.0


26.5


(14.1
)

29.4

Other long-term liabilities
2.8


16.3


10.3




29.4


1.7


20.4


9.2




31.3

Total Liabilities
1,553.0


253.1


618.0


(1,109.4
)

1,314.7


1,527.1


267.2


406.4


(998.4
)

1,202.3

Total Hillenbrand Shareholders’ Equity
632.3


2,382.8


580.8


(2,963.6
)

632.3


594.1


2,202.3


716.5


(2,918.8
)

594.1

Noncontrolling interests




13.9




13.9






11.7




11.7

Total Equity
632.3


2,382.8


594.7


(2,963.6
)

646.2


594.1


2,202.3


728.2


(2,918.8
)

605.8

Total Liabilities and Equity
$
2,185.3


$
2,635.9


$
1,212.7


$
(4,073.0
)

$
1,960.9


$
2,121.2


$
2,469.5


$
1,134.6


$
(3,917.2
)

$
1,808.1

Condensed Consolidating Statements of Cash Flows
 
 
Year Ended September 30, 2016
 
Year Ended September 30, 2015
 
Year Ended September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
157.8


$
239.9


$
(49.5
)

$
(110.0
)

$
238.2


$
76.0


$
91.0


$
23.6


$
(85.6
)

$
105.0


$
81.8


$
46.9


$
98.2


$
(47.3
)

$
179.6

 












































Investing activities:












 


 


 


 


 


 


 


 


 


 


 

Capital expenditures
(2.6
)

(8.0
)

(10.6
)



(21.2
)

(1.1
)

(14.5
)

(15.4
)



(31.0
)

(1.0
)

(9.5
)

(13.1
)



(23.6
)
Proceeds from property, plant, and equipment


1.6


0.4




2.0




2.8






2.8




0.3


7.2




7.5

Proceeds from investments






















5.8






5.8

Acquisition of business, net of cash acquired


(130.4
)

(105.0
)



(235.4
)




















Return of investment capital from affiliates
1.1

 

 

 

 
1.1

 
1.5

 

 

 

 
1.5

 
1.1

 

 
0.9

 

 
2.0

Other, net












(2.5
)

(0.3
)



(2.8
)










Net cash used in (provided by) investing activities
(1.5
)

(136.8
)

(115.2
)



(253.5
)

0.4


(14.2
)

(15.7
)



(29.5
)

0.1


(3.4
)

(5.0
)



(8.3
)
 












































Financing activities:












 


 


 


 


 


 


 


 


 


 


 

Repayments on term loan
(9.0
)







(9.0
)

(9.0
)







(9.0
)

(10.0
)







(10.0
)
Proceeds from revolving credit facilities
375.5




344.3




719.8


331.7




98.5




430.2


248.4




68.2




316.6

Repayments on revolving credit facilities
(457.5
)



(169.7
)



(627.2
)

(441.8
)



(105.2
)



(547.0
)

(269.9
)



(140.8
)



(410.7
)
Proceeds from Series A unsecured notes, net of financing costs










99.6








99.6











Payment of dividends - intercompany


(104.6
)

(5.4
)

110.0






(80.3
)

(5.3
)

85.6






(41.6
)

(5.7
)

47.3



Payment of dividends on common stock
(51.1
)







(51.1
)

(50.4
)







(50.4
)

(49.7
)







(49.7
)
Repurchases of common stock
(21.2
)







(21.2
)

(11.2
)







(11.2
)

(16.5
)







(16.5
)
Net proceeds (payments) on stock plans
11.1








11.1


3.4








3.4


14.6








14.6

Other, net




(0.8
)



(0.8
)

1.2








1.2


1.0




(0.8
)



0.2

Net cash (used in) provided by financing activities
(152.2
)

(104.6
)

168.4


110.0


21.6


(76.5
)

(80.3
)

(12.0
)

85.6


(83.2
)

(82.1
)

(41.6
)

(79.1
)

47.3


(155.5
)
 












































Effect of exchange rates on cash and cash equivalents




(2.6
)



(2.6
)





(2.0
)



(2.0
)





(0.5
)



(0.5
)
 












































Net cash flow
4.1


(1.5
)

1.1




3.7


(0.1
)

(3.5
)

(6.1
)



(9.7
)

(0.2
)

1.9


13.6




15.3

Cash and equivalents at beginning of period
0.3


7.1


40.9




48.3


0.4


10.6


47.0




58.0


0.6


8.7


33.4




42.7

Cash and equivalents at end of period
$
4.4


$
5.6


$
42.0


$


$
52.0


$
0.3


$
7.1


$
40.9


$


$
48.3


$
0.4


$
10.6


$
47.0


$


$
58.0