Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Information

v3.10.0.1
Condensed Consolidating Information
3 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Information
Condensed Consolidating Information
 
Certain 100% owned domestic subsidiaries of Hillenbrand fully and unconditionally, jointly and severally, agreed to guarantee all of the indebtedness and guarantee obligations relating to our obligations under our senior unsecured notes.  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, 2018
 
Three Months Ended December 31, 2017
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
216.1

 
$
247.8

 
$
(53.6
)
 
$
410.3

 
$

 
$
218.2

 
$
229.1

 
$
(50.1
)
 
$
397.2

Cost of goods sold

 
115.8

 
174.4

 
(26.9
)
 
263.3

 

 
115.1

 
160.1

 
(24.2
)
 
251.0

Gross profit

 
100.3

 
73.4

 
(26.7
)
 
147.0

 

 
103.1

 
69.0

 
(25.9
)
 
146.2

Operating expenses
10.2

 
61.4

 
45.8

 
(26.7
)
 
90.7

 
10.9

 
61.6

 
42.5

 
(25.9
)
 
89.1

Amortization expense

 
3.3

 
4.5

 

 
7.8

 

 
3.5

 
4.1

 

 
7.6

Interest expense
4.5

 

 
1.0

 

 
5.5

 
5.8

 

 
0.5

 

 
6.3

Other income (expense), net
(0.3
)
 

 
0.8

 

 
0.5

 
(0.3
)
 
0.5

 
(0.6
)
 

 
(0.4
)
Equity in net income (loss) of subsidiaries
42.0

 
2.2

 

 
(44.2
)
 

 
37.4

 
1.4

 

 
(38.8
)
 

Income (loss) before income taxes
27.0

 
37.8

 
22.9

 
(44.2
)
 
43.5

 
20.4

 
39.9

 
21.3

 
(38.8
)
 
42.8

Income tax expense (benefit)
(1.3
)
 
9.9

 
5.9

 

 
14.5

 
2.3

 
15.5

 
5.9

 

 
23.7

Consolidated net income (loss)
28.3

 
27.9

 
17.0

 
(44.2
)
 
29.0

 
18.1

 
24.4

 
15.4

 
(38.8
)
 
19.1

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.7

 

 
0.7

 

 

 
1.0

 

 
1.0

Net income (loss) (1)
$
28.3

 
$
27.9

 
$
16.3

 
$
(44.2
)
 
$
28.3

 
$
18.1

 
$
24.4

 
$
14.4

 
$
(38.8
)
 
$
18.1

Consolidated comprehensive income (loss)
$
18.2

 
$
27.8

 
$
11.8

 
$
(38.7
)
 
$
19.1

 
$
24.8

 
$
24.9

 
$
21.3

 
$
(45.1
)
 
$
25.9

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.9

 

 
0.9

 

 

 
1.1

 

 
1.1

Comprehensive income (loss) (2)
$
18.2

 
$
27.8

 
$
10.9

 
$
(38.7
)
 
$
18.2

 
$
24.8

 
$
24.9

 
$
20.2

 
$
(45.1
)
 
$
24.8



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










Condensed Consolidating Balance Sheets
 
December 31, 2018
 
September 30, 2018
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
0.4

 
$
4.2

 
$
60.2

 
$

 
$
64.8

 
$
1.1

 
$
5.8

 
$
49.1

 
$

 
$
56.0

Trade receivables, net

 
109.4

 
81.1

 

 
190.5

 

 
124.5

 
94.0

 

 
218.5

Receivables from long-term manufacturing contracts

 
6.4

 
127.8

 

 
134.2

 

 
5.3

 
115.0

 

 
120.3

Inventories

 
83.3

 
102.0

 
(3.0
)
 
182.3

 

 
76.7

 
98.6

 
(2.8
)
 
172.5

Prepaid expense
3.4

 
7.2

 
13.9

 

 
24.5

 
2.7

 
7.0

 
15.5

 

 
25.2

Intercompany receivables

 
1,196.5

 
54.3

 
(1,250.8
)
 

 

 
1,131.1

 
79.1

 
(1,210.2
)
 

Other current assets

 
2.6

 
14.1

 
0.4

 
17.1

 

 
3.2

 
14.6

 
0.3

 
18.1

Total current assets
3.8

 
1,409.6

 
453.4

 
(1,253.4
)
 
613.4

 
3.8

 
1,353.6

 
465.9

 
(1,212.7
)
 
610.6

Property, plant and equipment, net
3.8

 
59.7

 
76.7

 

 
140.2

 
3.8

 
60.2

 
78.0

 

 
142.0

Intangible assets, net
2.9

 
192.4

 
295.3

 

 
490.6

 
3.2

 
196.0

 
288.1

 

 
487.3

Goodwill

 
225.0

 
362.3

 

 
587.3

 

 
225.0

 
356.9

 

 
581.9

Investment in consolidated subsidiaries
2,331.9

 
668.0

 

 
(2,999.9
)
 

 
2,263.1

 
653.9

 

 
(2,917.0
)
 

Other assets
29.9

 
26.7

 
2.4

 
(20.3
)
 
38.7

 
15.7

 
28.2

 
5.9

 
(7.0
)
 
42.8

Total Assets
$
2,372.3

 
$
2,581.4

 
$
1,190.1

 
$
(4,273.6
)
 
$
1,870.2

 
$
2,289.6

 
$
2,516.9

 
$
1,194.8

 
$
(4,136.7
)
 
$
1,864.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
2.0

 
$
60.6

 
$
133.4

 
$

 
$
196.0

 
$

 
$
62.4

 
$
134.4

 
$

 
$
196.8

Liabilities from long-term manufacturing contracts and advances

 
31.2

 
104.6

 

 
135.8

 

 
26.6

 
99.3

 

 
125.9

Current portion of long-term debt

 

 

 

 

 

 

 

 

 

Accrued compensation
2.1

 
14.8

 
36.6

 

 
53.5

 
7.2

 
20.1

 
44.6

 

 
71.9

Intercompany payables
1,249.6

 
4.2

 

 
(1,253.8
)
 

 
1,206.2

 
6.1

 

 
(1,212.3
)
 

Other current liabilities
21.0

 
52.8

 
63.6

 
(12.2
)
 
125.2

 
19.4

 
38.9

 
78.1

 
0.7

 
137.1

Total current liabilities
1,274.7

 
163.6

 
338.2

 
(1,266.0
)
 
510.5

 
1,232.8

 
154.1

 
356.4

 
(1,211.6
)
 
531.7

Long-term debt
334.0

 

 
30.8

 

 
364.8

 
300.2

 

 
44.4

 

 
344.6

Accrued pension and postretirement healthcare
0.7

 
29.4

 
87.7

 

 
117.8

 
0.7

 
29.8

 
90.0

 

 
120.5

Deferred income taxes

 
25.5

 
59.9

 
(7.7
)
 
77.7

 
0.7

 
22.9

 
60.9

 
(8.1
)
 
76.4

Other long-term liabilities
28.4

 
14.7

 
8.9

 

 
52.0

 
24.1

 
14.3

 
8.9

 

 
47.3

Total Liabilities
1,637.8

 
233.2

 
525.5

 
(1,273.7
)
 
1,122.8

 
1,558.5

 
221.1

 
560.6

 
(1,219.7
)
 
1,120.5

Total Hillenbrand Shareholders’ Equity
734.5

 
2,348.2

 
651.7

 
(2,999.9
)
 
734.5

 
731.1

 
2,295.8

 
621.2

 
(2,917.0
)
 
731.1

Noncontrolling interests

 

 
12.9

 

 
12.9

 

 

 
13.0

 

 
13.0

Total Equity
734.5

 
2,348.2

 
664.6

 
(2,999.9
)
 
747.4

 
731.1

 
2,295.8

 
634.2

 
(2,917.0
)
 
744.1

Total Liabilities and Equity
$
2,372.3

 
$
2,581.4

 
$
1,190.1

 
$
(4,273.6
)
 
$
1,870.2

 
$
2,289.6

 
$
2,516.9

 
$
1,194.8

 
$
(4,136.7
)
 
$
1,864.6



Condensed Consolidating Statements of Cash Flow
 
 
Three Months Ended December 31, 2018
 
Three Months Ended December 31, 2017
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
     operating activities
$
(17.5
)
 
$
0.1

 
$
52.9

 
$

 
$
35.5

 
$
17.2

 
$
5.4

 
$
4.3

 
$

 
$
26.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures

 
(1.7
)
 
(1.9
)
 

 
(3.6
)
 
(1.0
)
 
(3.0
)
 
(1.6
)
 

 
(5.6
)
Acquisition of business, net of cash
     acquired

 

 
(26.2
)
 

 
(26.2
)
 

 

 

 

 

Net cash used in investing activities

 
(1.7
)
 
(28.1
)
 

 
(29.8
)
 
(1.0
)
 
(3.0
)
 
(1.6
)
 

 
(5.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan

 

 

 

 

 
(148.5
)
 

 

 

 
(148.5
)
Proceeds from revolving credit facilities,
     net of financing costs
106.0

 

 
54.2

 

 
160.2

 
264.7

 

 
107.1

 

 
371.8

Repayments on revolving credit facilities
(72.3
)
 

 
(67.3
)
 

 
(139.6
)
 
(106.0
)
 

 
(107.0
)
 

 
(213.0
)
Payment of dividends on common stock
(13.1
)
 

 

 

 
(13.1
)
 
(13.1
)
 

 

 

 
(13.1
)
Repurchases of common stock

 

 

 

 

 
(15.2
)
 

 

 

 
(15.2
)
Net proceeds on stock plans
(3.8
)
 

 

 

 
(3.8
)
 
2.6

 

 

 

 
2.6

Other, net

 

 
(0.9
)
 

 
(0.9
)
 

 

 
2.8

 

 
2.8

Net cash (used in) provided by
     financing activities
16.8

 

 
(14.0
)
 

 
2.8

 
(15.5
)
 

 
2.9

 

 
(12.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
     cash equivalents

 

 
0.3

 

 
0.3

 

 

 
2.9

 

 
2.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(0.7
)
 
(1.6
)
 
11.1

 

 
8.8

 
0.7

 
2.4

 
8.5

 

 
11.6

Cash, cash equivalents and restricted cash at
     beginning of period
1.1

 
5.8

 
49.6

 

 
56.5

 
0.1

 
5.0

 
61.6

 

 
66.7

Cash, cash equivalents and restricted cash at
     end of period
$
0.4

 
$
4.2

 
$
60.7

 
$

 
$
65.3

 
$
0.8

 
$
7.4

 
$
70.1

 
$

 
$
78.3