Document and Entity Information - USD ($) |
12 Months Ended | ||
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Sep. 30, 2018 |
Nov. 08, 2018 |
Mar. 31, 2017 |
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Document and Entity Information | |||
Entity Registrant Name | Hillenbrand, Inc. | ||
Entity Central Index Key | 0001417398 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 62,347,253 | ||
Entity Public Float | $ 2,259,976 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | |||||
Consolidated net income | $ 81.2 | $ 128.4 | $ 116.8 | ||
Other comprehensive (loss) income, net of tax | |||||
Currency translation | (7.9) | 24.9 | (9.8) | ||
Pension and postretirement (net of tax of $1.3, $10.9, and $4.8) | 4.3 | 22.2 | (13.1) | ||
Net unrealized (loss) gain on derivative instruments (net of tax of $0.0, $1.0, and $0.2) | (0.1) | 1.7 | 0.7 | ||
Total other comprehensive income (loss), net of tax | (3.7) | 48.8 | (22.2) | ||
Consolidated comprehensive income | 77.5 | 177.2 | 94.6 | ||
Less: Comprehensive income attributable to noncontrolling interests | 3.9 | 2.4 | 3.7 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | [1] | $ 73.6 | $ 174.8 | $ 90.9 | |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | |||
Pension and postretirement, tax | $ 1.3 | $ (10.9) | $ (4.8) |
Net unrealized (loss) gain on derivative instruments, tax | $ 0.0 | $ 1.0 | $ 0.2 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Current Assets | ||
Cash and cash equivalents | $ 56.0 | $ 66.0 |
Trade receivables, net | 218.5 | 206.1 |
Receivables from long-term manufacturing contracts | 120.3 | 125.2 |
Inventories | 172.5 | 151.6 |
Prepaid expenses | 25.2 | 28.2 |
Other current assets | 18.1 | 16.5 |
Total current assets | 610.6 | 593.6 |
Property, plant, and equipment, net | 142.0 | 150.4 |
Intangible assets, net | 487.3 | 523.9 |
Goodwill | 581.9 | 647.5 |
Other assets | 42.8 | 41.1 |
Total Assets | 1,864.6 | 1,956.5 |
Current Liabilities | ||
Trade accounts payable | 196.8 | 158.0 |
Liabilities from long-term manufacturing contracts and advances | 125.9 | 132.3 |
Current portion of long-term debt | 0.0 | 18.8 |
Accrued compensation | 71.9 | 66.9 |
Other current liabilities | 137.1 | 135.7 |
Total current liabilities | 531.7 | 511.7 |
Long-term debt | 344.6 | 446.9 |
Accrued pension and postretirement healthcare | 120.5 | 129.6 |
Deferred income taxes | 76.4 | 75.7 |
Other long-term liabilities | 47.3 | 26.7 |
Total Liabilities | 1,120.5 | 1,190.6 |
Commitments and contingencies (Note 11) | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, no par value (63.9 and 63.8 shares issued, 62.3 and 63.1 shares outstanding) | 0.0 | 0.0 |
Additional paid-in capital | 351.4 | 349.9 |
Retained earnings | 531.0 | 507.1 |
Treasury stock (1.6 and 0.7 shares) | (67.1) | (24.4) |
Accumulated other comprehensive loss | (84.2) | (81.2) |
Hillenbrand Shareholders’ Equity | 731.1 | 751.4 |
Noncontrolling interests | 13.0 | 14.5 |
Total Shareholders’ Equity | 744.1 | 765.9 |
Total Liabilities and Equity | $ 1,864.6 | $ 1,956.5 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares issued | 63.9 | 63.8 |
Common stock, shares outstanding | 62.3 | 63.1 |
Treasury stock, shares | 1.6 | 0.7 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Operating Activities | |||
Consolidated net income | $ 81.2 | $ 128.4 | $ 116.8 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 56.5 | 56.6 | 60.4 |
Goodwill and Intangible Asset Impairment | 63.4 | 0.0 | 0.0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0.0 | 2.2 | |
Deferred income taxes | 3.7 | 37.1 | (4.7) |
Net loss (gain) on disposal or impairment of property | 0.7 | (4.6) | 0.3 |
Equity in net loss (income) from affiliates | 0.0 | 0.4 | (0.3) |
Share-based compensation | 12.1 | 10.5 | 8.5 |
Trade accounts receivable and receivables on long-term manufacturing contracts | (13.0) | 10.7 | 9.7 |
Inventories | (24.0) | 5.4 | 11.3 |
Prepaid expenses and other current assets | (0.1) | (6.2) | 5.5 |
Trade accounts payable | 41.6 | 17.2 | 30.2 |
Accrued expenses and other current liabilities | 5.8 | 64.6 | (10.7) |
Income taxes payable | 23.0 | 4.8 | 3.8 |
Defined benefit plan funding | (10.9) | (90.6) | (15.5) |
Defined benefit plan expense | 3.6 | 6.4 | 11.9 |
Other, net | 4.7 | 5.5 | 8.8 |
Net cash provided by operating activities | 248.3 | 246.2 | 238.2 |
Investing Activities | |||
Capital expenditures | (27.0) | (22.0) | (21.2) |
Proceeds from sales of property, plant, and equipment | 3.7 | 5.7 | 2.0 |
Acquisitions of businesses, net of cash acquired | 0.0 | 0.0 | (235.4) |
Return of investment capital from affiliates | 0.0 | 3.2 | 1.1 |
Other, net | 0.2 | (0.4) | 0.0 |
Net cash used in investing activities | (23.1) | (13.5) | (253.5) |
Financing Activities | |||
Repayments on term loan | (148.5) | (13.5) | (9.0) |
Proceeds from revolving credit facility, net of financing costs | 1,094.0 | 819.3 | 719.8 |
Repayments on revolving credit facility | (1,065.7) | (953.0) | (627.2) |
Payment of dividends on common stock | (52.1) | (51.9) | (51.1) |
Repurchases of common stock | (61.0) | (28.0) | (21.2) |
Net proceeds on stock plans | 7.1 | 13.7 | 11.1 |
Other, net | (6.3) | (1.7) | (0.8) |
Net cash (used in) provided by financing activities | (232.5) | (215.1) | 21.6 |
Effect of exchange rate changes on cash and cash equivalents | (2.7) | (3.6) | (2.6) |
Net cash flows | (10.0) | 14.0 | 3.7 |
Cash and cash equivalents: | |||
At beginning of period | 66.0 | 52.0 | 48.3 |
At end of period | 56.0 | 66.0 | 52.0 |
Cash paid for interest | 20.7 | 20.3 | 22.7 |
Cash paid for income taxes | $ 38.9 | $ 18.2 | $ 48.0 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Loss |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|
Balance at Sep. 30, 2015 | $ 605.8 | $ 350.9 | $ 372.1 | $ (21.0) | $ (107.9) | $ 11.7 | |
Balance (in shares) at Sep. 30, 2015 | 63,600,000 | 700,000 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Total other comprehensive income, net of tax | (22.2) | (21.9) | (0.3) | ||||
Net income | 116.8 | 112.8 | 4.0 | ||||
Issuance/retirement of stock for stock awards/options | 11.1 | (11.2) | $ 22.3 | ||||
Issuance/retirement of stock for stock awards/options (in shares) | (100,000) | (700,000) | |||||
Share-based compensation | 8.5 | 8.5 | |||||
Treasury Stock, Shares, Acquired | 700,000 | ||||||
Purchases of common stock | 21.2 | $ 21.2 | |||||
Dividends | (52.6) | (0.5) | (51.6) | (1.5) | |||
Balance at Sep. 30, 2016 | 646.2 | 348.7 | 433.3 | $ (19.9) | (129.8) | 13.9 | |
Balance (in shares) at Sep. 30, 2016 | 63,700,000 | 700,000 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Total other comprehensive income, net of tax | 48.8 | 48.6 | 0.2 | ||||
Net income | 128.4 | 126.2 | 2.2 | ||||
Issuance/retirement of stock for stock awards/options | $ 13.7 | (9.8) | $ 23.5 | ||||
Issuance/retirement of stock for stock awards/options (in shares) | (700,000) | (100,000) | (700,000) | ||||
Share-based compensation | $ 10.5 | 10.5 | |||||
Treasury Stock, Shares, Acquired | 700,000 | ||||||
Purchases of common stock | 28.0 | $ 28.0 | |||||
Dividends | (53.7) | (0.5) | (52.4) | (1.8) | |||
Balance at Sep. 30, 2017 | 765.9 | 349.9 | 507.1 | $ (24.4) | (81.2) | 14.5 | |
Balance (in shares) at Sep. 30, 2017 | 63,800,000 | 700,000 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Total other comprehensive income, net of tax | (3.7) | (3.0) | (0.7) | ||||
Net income | 81.2 | 76.6 | 4.6 | ||||
Issuance/retirement of stock for stock awards/options | $ 7.1 | (11.2) | $ 18.3 | ||||
Issuance/retirement of stock for stock awards/options (in shares) | (500,000) | (100,000) | (500,000) | ||||
Share-based compensation | $ 12.1 | 12.1 | |||||
Treasury Stock, Shares, Acquired | 1,400,000 | ||||||
Purchases of common stock | 61.0 | $ 61.0 | |||||
Dividends | (57.5) | (0.6) | (52.7) | (5.4) | |||
Balance at Sep. 30, 2018 | $ 744.1 | $ 351.4 | $ 531.0 | $ (67.1) | $ (84.2) | $ 13.0 | |
Balance (in shares) at Sep. 30, 2018 | 63,900,000 | 1,600,000 |
Background |
12 Months Ended |
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Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background Hillenbrand, Inc. (“Hillenbrand”) is a global diversified industrial company with multiple leading brands that serve a wide variety of industries around the world. We strive to provide superior return for our shareholders, exceptional value for our customers, great professional opportunities for our employees, and to be responsible to our communities through deployment of the Hillenbrand Operating Model (“HOM”). The HOM is a consistent and repeatable framework designed to produce sustainable and predictable results. The HOM describes our mission, vision, values and mindset as leaders; applies our management practices in Strategy Management, Segmentation, Lean, Talent Development, and Acquisitions; and prescribes three steps (Understand, Focus, and Grow) designed to make our businesses both bigger and better. Our goal is to continue developing Hillenbrand as a world-class global diversified industrial company through the deployment of the HOM. Hillenbrand’s portfolio is composed of two business segments: the Process Equipment Group and Batesville®. The Process Equipment Group businesses design, develop, manufacture, and service highly engineered industrial equipment around the world. Batesville is a recognized leader in the death care industry in North America. “Hillenbrand,” “the Company,” “we,” “us,” “our,” and similar words refer to Hillenbrand and its subsidiaries unless context otherwise requires. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation — The accompanying consolidated financial statements include the accounts of Hillenbrand and its subsidiaries. They also include two subsidiaries where the Company’s ownership percentage is less than 100%. The portion of the business that is not owned by the Company is presented as noncontrolling interests within equity in the balance sheets. Income attributable to the noncontrolling interests is separately reported within the statements of income. All significant intercompany accounts and transactions have been eliminated. Use of estimates — We prepared the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Foreign currency translation — The financial statements of our foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive loss in shareholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, we recognize a transaction gain or loss in “other (expense) income, net” when the transaction is settled. Cash and cash equivalents include short-term investments with original maturities of three months or less. The carrying amounts reported in the balance sheet for cash and cash equivalents are valued at cost, which approximates their fair value. Restricted cash - Restricted cash of $0.5 and $0.8 are included in Other current assets in the Consolidated Balance Sheets at September 30, 2018 and 2017. Trade receivables are recorded at the invoiced amount and generally do not bear interest, unless they become past due. The allowance for doubtful accounts is a best estimate of the amount of probable credit losses and collection risk in the existing accounts receivable portfolio. The allowance for cash discounts and sales returns reserve are based upon historical experience and trends. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We generally hold trade accounts receivable until they are collected. At September 30, 2018 and 2017, we had reserves against trade receivables of $22.2 and $21.6. Inventories are valued at the lower of cost or market. Inventory costs are determined by the last-in, first-out (“LIFO”) method for approximately 30% and 32% of inventories at September 30, 2018 and 2017. Costs of remaining inventories have been determined principally by the first-in, first-out (“FIFO”) and average cost methods. If the FIFO method of inventory accounting, which approximates current cost, had been used for inventory accounted for using the LIFO method, that inventory would have been approximately $15.7 and $15.0 higher than reported at September 30, 2018 and 2017.
Property, plant, and equipment are carried at cost less accumulated depreciation. Depreciation is computed using principally the straight-line method based on estimated useful lives of three to 50 years for buildings and improvements and three to 25 years for machinery and equipment. Maintenance and repairs are expensed as incurred. Upon disposal or retirement, the cost and accumulated depreciation of assets are eliminated. Any gain or loss is reflected in the Company’s income from operations. We review these assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. The impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. Total depreciation expense for 2018, 2017, and 2016 was $23.4, $25.4, and $25.6.
Intangible assets are stated at the lower of cost or fair value. With the exception of certain trade names, intangible assets are amortized on a straight-line basis over periods ranging from three to 21 years, representing the period over which we expect to receive future economic benefits from these assets. We assess the carrying value of trade names annually, or more often if events or changes in circumstances indicate there may be impairment. Estimated amortization expense related to intangible assets for the next five years is: $32.1 in 2019, $31.5 in 2020, $30.4 in 2021, $29.2 in 2022, and $28.8 in 2023.
The net change in intangible assets during the year ended September 30, 2018 was driven by normal amortization, foreign currency translation, and an impairment charge on certain trade names. An impairment charge of $4.6 pre-tax ($3.5 after tax) was recorded during the quarter ended March 31, 2018 for trade names most directly impacted by domestic coal mining and coal power. As of September 30, 2018, we had approximately $4 of trade name book value remaining in the Process Equipment Group segment most directly impacted by domestic coal mining and coal power. In conjunction with our impairment testing, we also reassessed the useful lives of other definite-lived intangible assets specific to the intangibles impacted by domestic coal mining and coal power, resulting in no significant changes in amortization. In the third quarter of 2016, the Company recorded a trade name impairment charge of $2.2, included in operating expenses, on two trade names related to the Process Equipment Group segment. The decline in the estimated fair value of these trade names was largely driven by the decreased demand for equipment and parts used in coal mining and coal power. As a result of the required annual impairment assessment performed in the third quarter of 2018, the fair value of trade names was determined to meet or exceed the carrying value for all trade names, resulting in no further impairment to trade names. Goodwill is not amortized, but is subject to annual impairment tests. Goodwill has been assigned to reporting units. We assess the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment. Impairment testing is performed at a reporting unit level.
In connection with the preparation of the quarterly financial statements for the second quarter of 2018, an interim impairment assessment was performed at the reporting unit most directly impacted by domestic coal mining and coal power. During the quarter ended March 31, 2018, published industry reports reduced their forecasts for domestic coal production and consumption. The reporting unit also experienced a larger than expected decline in orders for equipment and parts used in the domestic coal mining and coal power industries. In conjunction with these events and as part of the long-term strategic forecasting process, the Company made the decision to redirect strategic investments for growth, significantly reducing the reporting unit’s terminal growth rate. As a result of this change in expected future cash flows, along with comparable fair value information, management concluded that the reporting unit carrying value exceeded its fair value, resulting in a goodwill impairment charge of $58.8. The pre-impairment goodwill balance for the reporting unit was $71.3. A 10% further reduction in the fair value of this reporting unit would indicate a potential additional impairment of $7.4. Environmental liabilities — Expenditures that relate to an existing condition caused by past operations which do not contribute to current or future revenue generation are expensed. A reserve is established when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These reserves are determined without consideration of possible loss recoveries. Based on consultations with an environmental engineer, the range of liability is estimated based on current interpretations of environmental laws and regulations. A determination is made of the specific measures that are believed to be required to remediate the site, the estimated total cost to carry out the remediation plan, and the periods in which we will make payments toward the remediation plan. We do not make an estimate of inflation for environmental matters because the number of sites is relatively small, we believe the magnitude of costs to execute remediation plans is not significant, and the estimated time frames to remediate sites are not believed to be lengthy. Specific costs included in environmental expense and reserves include site assessment, remediation plan development, clean-up costs, post-remediation expenditures, monitoring, fines, penalties, and legal fees. The amount reserved represents the expected undiscounted future cash outflows associated with such plans and actions and we believe is not significant to Hillenbrand. Self-insurance — We are self-funded up to certain limits for product and general liability, workers compensation, and auto liability insurance programs, as well as certain employee health benefits including medical, drug, and dental. Claims covered by insurance have in most instances deductibles and self-funded retentions up to $0.5 per occurrence, depending upon the type of coverage and policy period. Our policy is to estimate reserves for product and general liability, workers compensation, and auto liability based upon a number of factors, including known claims, estimated incurred but not reported claims, and outside actuarial analysis. The outside actuarial analysis is based on historical information along with certain assumptions about future events. These reserves are classified as other current and other long-term liabilities within the balance sheets. Treasury stock consists of our common shares that have been issued but subsequently reacquired. We account for treasury stock purchases under the cost method. When these shares are reissued, we use an average-cost method to determine cost. Proceeds in excess of cost are credited to additional paid-in capital. On July 24, 2008, our Board of Directors approved a stock repurchase program for the repurchase of up to $100.0 of our common stock. On February 23, 2017, our Board of Directors approved an increase of $100.0 to the existing stock repurchase program. The authorization brings the maximum cumulative repurchase authorization up to $200.0. The repurchase program has no expiration date, but may be terminated by the Board of Directors at any time. As of September 30, 2018, we had repurchased approximately 4,950,000 shares for approximately $160.4 in the aggregate. Such shares were classified as treasury stock. We repurchased approximately 1,385,600 shares of our common stock during 2018, at a total cost of approximately $61.0. In 2018 and 2017, approximately 500,000 shares and 700,000 shares were issued from treasury stock under our stock compensation programs. At September 30, 2018, we had approximately $39.6 remaining for share repurchases under the existing Board authorization. Preferred stock — The Company has authorized 1,000,000 shares of preferred stock (no par value), of which no shares were issued at September 30, 2018 and 2017. Accumulated other comprehensive loss includes all changes in Hillenbrand shareholders’ equity during the period except those that resulted from investments by or distributions to our shareholders.
Revenue recognition — Net revenue includes gross revenue less sales discounts, customer rebates, sales incentives, and product returns, all of which require us to make estimates for the portion of these allowances that have yet to be credited or paid to our customers. We estimate these allowances based upon historical rates and projections of customer purchases toward contractual rebate thresholds. A portion of Hillenbrand’s revenue is derived from long-term manufacturing contracts. The majority of this revenue is recognized based on the percentage-of-completion method. Under this method, revenue is recognized based upon the costs incurred to date as compared to the total estimated project costs. Approximately 25%, 25%, and 24% of Hillenbrand’s revenue was attributable to these long-term manufacturing contracts for 2018, 2017, and 2016. Accounting for these contracts involves management judgment in estimating total contract revenue and cost. Contract revenues are largely determined by negotiated contract prices and quantities, modified by our assumptions regarding contract options, change orders, and incentive and award provisions associated with technical performance clauses. Contract costs are incurred over longer periods of time and, accordingly, the estimation of these costs requires management judgment. Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends, and other economic projections. Significant factors that influence these estimates include inflationary trends, technical and schedule risk, internal and subcontractor performance trends, business volume assumptions, asset utilization, and anticipated labor agreements. Revenue and cost estimates are regularly monitored and revised based on changes in circumstances. Anticipated losses on long-term contracts are recognized immediately when such losses become evident. We maintain financial controls over the customer qualification, contract pricing, and estimation processes to reduce the risk of contract losses. Revenue for components, most replacement parts, and service is recognized when title and risk of loss passes to the customer. Cost of goods sold consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, and overhead costs. It also includes costs associated with the distribution and delivery of products. Research and development costs are expensed as incurred as a component of operating expenses and were $11.7, $11.9, and $12.6 for 2018, 2017, and 2016. Warranty costs — We provide for the estimated warranty cost of a product at the time revenue is recognized. Warranty expense is accrued based upon historical information and may also include specific provisions for known conditions. Warranty obligations are affected by actual product performance and by material usage and service costs incurred in making product corrections. Our warranty provision takes into account the best estimate of amounts necessary to settle future and existing claims on products sold. The Process Equipment Group generally offers a one to two-year warranty on a majority of its products. It engages in extensive product quality programs and processes in an effort to minimize warranty obligations, including active monitoring and evaluation of the quality of component suppliers. Warranty reserves were $16.9 and $15.8 for 2018 and 2017. Warranty costs were $3.3, $4.1, and $4.3 for 2018, 2017, and 2016. Income taxes — On December 22, 2017, the U.S. government enacted the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code that will impact our fiscal year ended September 30, 2018 including, but not limited to (a) reducing the U.S. federal corporate tax rate, (b) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries (“Transition Tax”), and (c) accelerating expensing of certain capital expenditures. The Tax Act reduced the federal corporate tax rate from 35% to 21%. The Internal Revenue Code stipulates that our fiscal year ending September 30, 2018 had a blended corporate tax rate of 24.5%, which is based on a proration of the applicable tax rates before and after the effective date of the Tax Act. The statutory tax rate of 21% will apply to future years. Furthermore, certain provisions of the Tax Act, such as the repeal of the Domestic Production Activities Deduction, Global Intangible Low-Taxed Income, Foreign Derived Intangible Income Deduction, and the Base Erosion Anti-Avoidance Tax, are not effective until our fiscal year ending September 30, 2019. Shortly after the Tax Act was enacted, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) which provides guidance on accounting for the Tax Act’s impact. SAB 118 provides a measurement period, which in no case should extend beyond one year from the Tax Act enactment date, during which a company acting in good faith may complete the accounting for the impacts of the Tax Act under Accounting Standards Codification Topic 740 (“ASC 740”). Per SAB 118, the Company must reflect the income tax effects of the Tax Act in the reporting period in which the accounting under ASC 740 is complete. In accordance with SAB 118, to the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, the company can determine a reasonable estimate for those effects and record a provisional estimate in the financial statements in the first reporting period in which a reasonable estimate can be determined. If a company cannot determine a provisional estimate to be included in the financial statements, the company should continue to apply ASC 740 based on the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. If a company is unable to provide a reasonable estimate of the impacts of the Tax Act in a reporting period, a provisional amount must be recorded in the first reporting period in which a reasonable estimate can be determined. The impact of the federal tax rate reduction from 35.0% to 24.5% was recognized in the rate applied to earnings. We have reflected the tax effect of temporary differences originating in the current period at the 24.5% federal tax rate and have recognized the deferred tax effect of such differences that will reverse in future periods at the 21% federal tax rate. We recorded a provisional net expense for the transition tax during the quarter ended December 31, 2017 and have revised the estimate during the period ended September 30, 2018. While we have recorded a reasonable estimate of the transition tax certain other information is still being gathered in order to verify the foreign taxes paid and other information. We will record a final revision to the provisional transition tax liability during the quarter ending December 31, 2018. We establish deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined in part based on the differences between the accounting treatment of tax assets and liabilities under GAAP and the tax basis of assets and liabilities using statutory tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in statutory tax rates on deferred tax assets and liabilities is recognized in net income in the period that includes the enactment date. We continue to assert that most of the cash at our foreign subsidiaries represents earnings considered to be permanently reinvested for which deferred taxes have not been provided for in our financial statements, as we do not intend, nor do we foresee a need, to repatriate these funds. However, with the enactment of the Tax Act, we are evaluating our future cash deployment and may change our permanent reinvestment assertion in future periods. We have a variety of deferred income tax assets in numerous tax jurisdictions. The recoverability of these deferred income tax assets is assessed periodically and valuation allowances are recognized if it is determined that it is more likely than not that the benefits will not be realized. When performing this assessment, we consider future taxable income, the reversal of existing temporary differences, and tax planning strategies. We account for accrued interest and penalties related to unrecognized tax benefits in income tax expense. Derivative financial instruments — The Company has hedging programs in place to manage its currency exposures. The objectives of our hedging programs are to mitigate exposures in gross margin and non-functional-currency-denominated assets and liabilities. Under these programs, we use derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates. These include foreign currency exchange forward contracts, which generally have terms up to 24 months. We require that hedging derivative instruments be highly effective in reducing the risk exposure that they are designated to hedge. As a result, there was no significant ineffectiveness from any of our derivative activities during the period. We formally designate any instrument that meets these hedging criteria as a hedge. The aggregate notional amount of all derivative instruments was $152.6 and $262.4 at September 30, 2018 and 2017. We measure all derivative instruments at fair value and report them on our balance sheets as assets or liabilities. Contracts designated as hedges for customer orders or intercompany purchases have an offsetting tax-adjusted amount in accumulated other comprehensive gain (loss). Foreign exchange contracts designated to hedge foreign currency exposures within our balance sheet have an offsetting amount recorded in “Other (expense) income, net”. The cash flows from such hedges are presented in the same category in the Company’s Consolidated Statement of Cash Flows as the items being hedged. The carrying value of all of derivative instruments at fair value resulted in assets of $1.9 and $3.8 (included in other current assets and other assets) and liabilities of $2.2 and $2.3 (included in other current liabilities) at September 30, 2018 and 2017. See Note 13 for additional information on the fair value of our derivative instruments. Changes in the fair value of derivatives are accounted for depending on the intended use of the derivative, designation of the hedging relationship, and whether or not the criteria to apply hedge accounting has been satisfied. Gains and losses on derivative instruments reported in accumulated other comprehensive gain (loss) are subsequently included in earnings in the periods in which earnings are affected by the hedged item. The amounts recognized in accumulated other comprehensive income (loss) and subsequently through earnings were not significant from 2016 through 2018. Net gains and losses on foreign exchange contracts offset foreign exchange effects on the hedged items. The Company does not enter into derivative contracts for purposes of speculation. Business acquisitions and related business acquisition and integration costs — Assets and liabilities associated with business acquisitions are recorded at fair value, using the acquisition method of accounting. We allocate the purchase price of acquisitions based upon the fair value of each component, which may be derived from observable or unobservable inputs and assumptions. We may utilize third-party valuation specialists to assist us in this allocation. Initial purchase price allocations are preliminary and subject to revision within the measurement period, generally not to exceed one year from the date of acquisition. Business acquisition, development, and integration costs are expensed as incurred and are reported as a component of cost of goods sold, operating expenses, interest expense, and “other (expense) income, net,” depending on the nature of the cost. We define these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional or consulting fees, as well as travel associated with the evaluation and effort to acquire specific businesses. Business acquisition and integration costs also include costs associated with acquisition tax planning, retention bonuses, and related integration costs. These costs exclude the ongoing expenses of our business development department. Restructuring costs may occur when we take action to exit or significantly curtail a part of our operations or change the deployment of assets or personnel. A restructuring charge can consist of an impairment or accelerated depreciation of affected assets, severance costs associated with reductions to the workforce, costs to terminate an operating lease or contract, and charges for legal obligations for which no future benefit will be derived. Recently adopted accounting standards — In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test and modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. We early adopted this standard for fiscal year 2018. See Critical Accounting Estimates within this Form 10-K for further information on the impact this adoption had on our consolidated results of operations, financial position, and cash flows. Recently issued accounting standards — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires significant disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 will be effective for our fiscal year beginning on October 1, 2018, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption. Based on our assessment, which included a comparison of our existing accounting policies and practices against the new standard and a review of contracts, we believe the key areas of consideration for our financial statements include percentage-of-completion accounting, separate performance obligations, and related revenue recognized over time. We have executed our implementation plan and have developed new accounting policies and created draft disclosures under the new standard. We are also evaluating changes in our internal controls over revenue recognition and continue to implement system changes and enhancements to facilitate the collection of data required for disclosures under the new standard. As previously disclosed, we expect to adopt this new standard using the modified retrospective method, which would result in a cumulative effect adjustment as of the date of adoption. We currently believe the most significant impact of the adoption of this standard relates to the increased financial statement disclosures. We currently do not expect the adoption of ASU 2014-09 to have a material impact on our consolidated results of operations, financial position, and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize a right of use asset and related lease liability for leases that have terms of more than twelve months. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance, with the classifications based on criteria that are similar to those applied under the current lease guidance, without the explicit bright lines. The FASB has also issued several updates to ASU 2016-02. ASU 2016-02 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements, and expect that there will be increases in assets and liabilities in our Consolidated Balance Sheets upon adoption, due to the recognition of right-of-use assets and corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Statements. ASU 2016-13 replaces the current incurred loss impairment model with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. ASU 2016-13 will be effective for our fiscal year beginning on October 1, 2020, with early adoption permitted for our fiscal year beginning October 1, 2019. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-17 will be effective for our fiscal year beginning on October 1, 2018. We expect the adoption of ASU 2016-18 to have a financial statement presentation and disclosure impact only. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business. ASU 2017-01 assists entities in determining whether a transaction involves an asset or a business. Specifically, it states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If this initial test is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create output. ASU 2017-01 will be effective for our fiscal year beginning on October 1, 2018. We are currently evaluating ASU 2017-01, but do not expect its adoption will have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 states that an employer must report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period and present the other components of net benefit cost (as defined in paragraphs 715-30-35-4 and 715-60-35-9) in the income statement separately from the service cost component and outside a subtotal of income from operations (if one is presented). In addition, ASU 2017-07 limits the capitalization of compensation costs to the service cost component only (if capitalization is appropriate). ASU 2017-07 will be effective for our fiscal year beginning on October 1, 2018. We do not expect the adoption of ASU 2017-07 to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications (in accordance with Topic 718). The new guidance will provide relief to entities that make non-substantive changes to share-based payment awards. ASU 2017-09 will be effective for our fiscal year beginning on October 1, 2018. The amendment would be applied prospectively to an award modified on or after the adoption date. We do not expect ASU 2017-09 to have a significant impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. The amendment would be applied to hedging relationships existing on the date of adoption and the effect of adoption would be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). We are currently evaluating the impact that ASU 2017-12 will have on our consolidated financial statements. |
Business Acquisitions |
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Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Abel We completed the acquisition of Abel Pumps LP and Abel GmbH & Co. KG and certain of their affiliates (collectively “Abel”) on October 2, 2015, for €95 in cash. We utilized borrowings under our former $700.0 revolving credit facility and former$180.0 term loan to fund this acquisition. Based in Büchen, Germany, Abel is a globally-recognized leader in positive displacement pumps. Abel specializes in designing, developing, and manufacturing piston and piston diaphragm pumps as well as pumping solutions and in providing related parts and service. This equipment is sold under the ABEL® Pump Technology brand in the power generation, wastewater treatment, mining, general industry, and marine markets. The results of Abel are reported in our Process Equipment Group segment for the relevant periods. Based on the final purchase allocation, we recorded goodwill of $36 and acquired identifiable intangible assets of $58, which consisted of $5 of trade names not subject to amortization, $9 of developed technology, $3 of backlog, and $41 of customer relationships. In addition, we recorded $14 of net tangible assets, primarily working capital. Goodwill is deductible for tax purposes in Germany. Supplemental proforma information has not been provided as the acquisition did not have a material impact on consolidated results of operations. Red Valve On February 1, 2016, we completed the acquisition of Red Valve Company, Inc. (“Red Valve”) for $130.4 in cash, net of certain adjustments. We utilized borrowings under our former $700.0 revolving credit facility and former $180.0 term loan to fund this acquisition. Based in Carnegie, Pennsylvania, Red Valve is a global leader in highly-engineered valves designed to operate in the harshest municipal and industrial wastewater environments. Its products support mission critical applications in water/wastewater, power and mining, and other general industrial markets. The results of Red Valve are reported in our Process Equipment Group segment for the relevant periods. Based on the final purchase allocation, we recorded goodwill of $59 and acquired identifiable intangible assets of $61, which consisted of $4 of trade names not subject to amortization, $8 of developed technology, $1 of backlog, and $48 of customer relationships. In addition, we recorded $10 of net tangible assets, primarily working capital. Goodwill is deductible for tax purposes. Supplemental proforma information has not been provided, as the acquisition did not have a material impact on consolidated results of operations. Both of these acquisitions continue Hillenbrand’s strategy to transform into a world-class global diversified industrial company by increasing our ability to expand into new markets and geographies within the highly attractive flow control space. The fair value of these acquisitions did not ascribe a significant amount to tangible assets, as we often seek to acquire companies with a relatively low physical asset base in order to limit the need to invest significant additional cash post-acquisition. |
Financing Agreements |
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Financing Agreements | Financing Agreements
The following table summarizes the scheduled maturities of long-term debt for 2019 through 2023:
On December 8, 2017, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”), which governs our revolving credit facility (the “Facility”), by and among the Company and certain of its affiliates, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement amended and extended the Company’s former credit agreement which provided for a revolving credit facility of up to $700.0 in aggregate principal amount and a term loan in an original principal amount of $180.0. The Credit Agreement increased the maximum principal amount available for borrowing under the Facility from $700.0 to $900.0. In connection with the Credit Agreement, the Company repaid the existing term loan in full with borrowings under the Facility. The aggregate principal amount available for borrowing under the Credit Agreement may be expanded, subject to the approval of the lenders, by an additional $450.0. The Credit Agreement extended the maturity date of the Facility to December 8, 2022. New deferred financing costs related to the Credit Agreement were $2.1, which along with existing costs of $1.0, are being amortized to interest expense over the term of the Facility. Borrowings under the Facility bear interest at variable rates plus a margin amount based upon our leverage. There is also a facility fee based upon our leverage. All revolving amounts due under the Facility mature upon expiration. These borrowings are classified as long-term. The Facility is an unsubordinated obligation of Hillenbrand and ranks equally in right of payment with all our other existing and future unsubordinated obligations. With respect to the Facility, as of September 30, 2018, we had $7.3 in outstanding letters of credit issued and $797.0 of maximum borrowing capacity. Of the maximum borrowing capacity, $769.2 was immediately available based on our leverage covenant at September 30, 2018, with additional amounts available in the event of a qualifying acquisition. The weighted-average interest rates on borrowings under the Facility were 1.83% and 1.40% for 2018 and 2017. The weighted average facility fee was 0.15% and 0.23% for 2018 and 2017. The weighted-average interest rate on the Facility’s term loan was 2.60% for 2018 (until the date of repayment) and 2.27% for 2017. We had interest rate swaps on $50.0 of outstanding borrowings under the Facility in order to manage exposure to our variable interest payments. We terminated these swaps in the fourth quarter of 2018, and the related amounts were released from accumulated other comprehensive loss to other (expense) income, net. In July 2010, we issued $150 of senior unsecured notes (“Notes”) due July 2020. The Notes bear interest at a fixed rate of 5.5% per year, payable semi-annually in arrears beginning January 2011. The Notes were issued at a discount of $1.6, resulting in an initial carrying value of $148.4. We are amortizing the discount to interest expense over the term of the Notes using the effective interest rate method, resulting in an annual interest rate of 5.65%. Deferred financing costs associated with the Notes of $2.1 are being amortized to interest expense on a straight-line basis over the term of the Notes. The Notes are unsubordinated obligations of Hillenbrand and rank equally in right of payment with all of our other existing and future unsubordinated obligations. The indenture governing the Notes does not limit our ability to incur additional indebtedness. It does, however, contain certain covenants that restrict our ability to incur secured debt and to engage in certain sale and leaseback transactions. The indenture provides holders of debt securities with remedies if we fail to perform specific obligations. In the event of a “Change of Control Triggering Event” (as defined in the indenture), each holder of the Notes has the right to require the Company to purchase all or a portion of its Notes at a purchase price equal to 101% of the principal amount plus accrued and unpaid interest. The Notes are redeemable with prior notice at a price equal to par plus accrued interest and a make-whole amount. On December 15, 2014, we issued $100.0 in 4.60% Series A unsecured notes (“Series A Notes”) pursuant to the Private Shelf Agreement, dated as of December 6, 2012 (as amended, the “Shelf Agreement”), among the Company, Prudential Investment Management, Inc. (“Prudential”) and each Prudential Affiliate (as defined therein) that became a purchaser thereunder. The Series A Notes are unsecured, mature on December 15, 2024, and bear interest at 4.60% payable semi-annually in arrears. The Company may at any time upon providing notice, prepay all or part of the Series A Notes at 100% of the principal amount prepaid plus a Make-Whole Amount (as defined therein). Deferred financing costs of $0.4 related to the Series A Notes are being amortized to interest expense over the term of the Series A Notes. On December 15, 2014, December 19, 2014, March 24, 2016, and December 8, 2017, the Company and certain of the Company’s domestic subsidiaries entered into amendments (collectively, the “Prudential Amendments”) to the Shelf Agreement. The latest amendment conformed certain terms of the Shelf Agreement with those contained in the Credit Agreement. The Shelf Agreement is a $200 uncommitted facility, of which $100.0 has been drawn. The issuance of notes under the Shelf Agreement is subject to successful placement by Prudential. On March 8, 2018, the Company entered into the L/G Facility Agreement. The L/G Facility Agreement replaces the Company’s former Syndicated L/G Facility Agreement dated as of June 3, 2013 and permits the Company and certain of its subsidiaries to request that one or more of the lenders issue up to an aggregate of €150.0 in unsecured letters of credit, bank guarantees or other surety bonds (collectively, the “Guarantees”). The Guarantees carry an annual fee that varies based on the Company’s leverage ratio. The L/G Facility Agreement also provides for a leverage-based commitment fee assessed on the undrawn portion of the facility. The L/G Facility Agreement matures in December 2022 but can be extended or terminated earlier under certain conditions. New deferred financing costs related to the L/G Facility Agreement were $1.0, which along with existing costs of $0.6, are being amortized to interest expense over the term of the agreement. In the normal course of business, the Process Equipment Group provides to certain customers bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations. This form of trade finance is customary in the industry and, as a result, we maintain adequate capacity to provide the guarantees. As of September 30, 2018, we had credit arrangements totaling $248.4, under which $196.5 was utilized for this purpose. These arrangements included the facilities under the L/G Facility Agreement and other ancillary credit facilities. |
Retirement Benefits |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits | Retirement Benefits Defined Benefit Retirement Plans — Approximately 38% of our employees participate in one of four defined benefit retirement programs, including the master defined benefit retirement plan in the U.S., the defined benefit plans of our German and Swiss subsidiaries, and the supplemental executive defined benefit retirement plan. We fund the pension trusts in compliance with ERISA or local funding requirements and as necessary to provide for current service and for any unfunded projected future benefit obligations over a reasonable period. The benefits for these plans are based primarily on years of service and the employee’s level of compensation during specific periods of employment. All pension plans have a September 30 measurement date. Effect on Operations — The components of net pension costs under defined benefit retirement plans were:
We use a full yield curve approach in the estimation of the service and interest cost components of our defined benefit retirement plans. Under this approach, we applied discounting using individual spot rates from a yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at the measurement date. These spot rates align to each of the projected benefit obligations and service cost cash flows. The service cost component relates to the active participants in the plan, so the relevant cash flows on which to apply the yield curve are considerably longer in duration on average than the total projected benefit obligation cash flows, which also include benefit payments to retirees. Interest cost is computed by multiplying each spot rate by the corresponding discounted projected benefit obligation cash flows. The full yield curve approach reduces any actuarial gains and losses based upon interest rate expectations (e.g. built-in gains in interest cost in an upward sloping yield curve scenario), or gains and losses merely resulting from the timing and magnitude of cash outflows associated with our benefit obligations. We use the full yield curve approach to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of service and interest rate costs. During 2017, we began implementing a plan to transition our U.S. employees not covered by a collective bargaining agreement and our employees covered by collective bargaining agreements at two of our U.S. facilities from a defined benefit-based model to a defined contribution structure over a three-year sunset period. This change caused remeasurements for the U.S. defined benefit pension plan for the affected populations. The remeasurements did not cause a material change, as the assumptions did not materially differ from the assumptions at September 30, 2016. Obligations and Funded Status — The change in benefit obligation and funded status of the Company’s defined benefit retirement plans were:
Net actuarial losses ($67.2) and prior service costs ($0.8), less an aggregate tax effect ($24.0), are included as components of accumulated other comprehensive loss at September 30, 2018. Net actuarial losses ($71.9) and prior service costs ($1.0), less an aggregate tax effect ($25.0), are included as components of accumulated other comprehensive loss at September 30, 2017. The amount that will be amortized from accumulated other comprehensive loss into net pension costs in 2019 is expected to be $2.0. Accumulated Benefit Obligation — The accumulated benefit obligation for all defined benefit retirement plans was $387.0 and $407.7 at September 30, 2018 and 2017. Selected information for plans with accumulated benefit obligations in excess of plan assets was:
The weighted-average assumptions used in accounting for defined benefit retirement plans were:
The discount rates are evaluated annually based on current market conditions. In setting these rates, we utilize long-term bond indices and yield curves as a preliminary indication of interest rate movements, then make adjustments to the indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of pension obligations. The overall expected long-term rate of return is based on historical and expected future returns, which are inflation-adjusted and weighted for the expected return for each component of the investment portfolio. The rate of assumed compensation increase is also based on our specific historical trends of past wage adjustments in recent years. U.S. Pension Plan Assets — Long-term strategic investment objectives utilize a diversified mix of equity and fixed income securities to preserve the funded status of the trusts and balance risk and return. The primary investment strategy is a dynamic target allocation method that periodically rebalances among various investment categories depending on the current funded position. This program is designed to actively move from return-seeking investments (such as equities) toward liability-hedging investments (such as long-duration fixed income) as funding levels improve. The target investment in return-seeking assets may vary from 60% to 20% of total plan assets based on the plan’s funding level. Plan assets are invested by the plans’ fiduciaries, which direct investments according to specific policies. Those policies subject investments to the following restrictions in our domestic plan: short-term securities must be rated A2/P2 or higher, liability-hedging fixed income securities must have an average quality credit rating of investment grade and investments in equities in any one company may not exceed 10% of the equity portfolio. Non-U.S. Pension Plan Assets — Long-term strategic investment objectives utilize a diversified mix of suitable assets of appropriate liquidity to generate income and capital growth that, together with contributions from participants and Hillenbrand, we believe will meet the cost of the current and future benefits that the plan provides. Long-term strategic investment objectives also seek to limit the risk of the assets failing to meet the liabilities over the long term. None of Hillenbrand’s common stock was directly owned by the pension plan trusts at September 30, 2018. The tables below provide the fair value of our pension plan assets by asset category at September 30, 2018 and 2017. The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2, and 3). See Note 13 for definitions. Fair values are determined as follows:
U.S. Pension Plans The plan assets of our U.S. pension plans consist of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Accordingly, these assets are not required to be classified and reported under the fair value hierarchy. At September 30, 2018 and 2017, the fair values of these investments were $253.3 and $262.4. Non-U.S. Pension Plans
Cash Flows — During 2018, 2017, and 2016 we contributed cash of $10.0, $89.6, and $14.6, to our defined benefit pension plans. We expect to make estimated contributions of $10.0 in 2019 to our pension plans. Due to the funded status of our U.S. defined benefit pension plan, we do not expect to make contributions to this plan in 2019. We will evaluate business conditions and capital and equity market volatility to determine whether we will make any additional discretionary contributions. Estimated Future Benefit Payments — The following represents estimated future benefit payments, including expected future service, which are expected to be paid from plan assets or Company contributions as necessary:
Defined Contribution Plans — We sponsor a number of defined contribution plans. Depending on the plan, we may make contributions up to 4% of an employee’s compensation and matching contributions up to 6% of compensation. Company contributions generally vest over a period of zero to five years. Expenses related to our defined contribution plans were $11.3, $11.4, and $9.9 for 2018, 2017, and 2016. See comments above regarding our retirement strategy change for certain U.S. employees in 2017. Postretirement Healthcare Plan — The Company offers a domestic postretirement healthcare plan that provides healthcare benefits to eligible qualified retirees and their spouses. The plan includes retiree cost-sharing provisions and generally extends retiree coverage for medical, prescription, and dental benefits beyond the COBRA continuation period to the date of Medicare eligibility. We use a measurement date of September 30. The net postretirement healthcare benefit cost for 2018 was $0.1, and for 2017 and 2016 cost was $0.3 for both years.
The weighted-average assumptions used in revaluing our obligation under the postretirement healthcare plan were:
Net actuarial gains of $4.0 and $3.4 and prior service costs of $0.7 and $0.8, less tax of $1.7 and $1.6, were included as a component of accumulated other comprehensive loss at September 30, 2018 and 2017. The estimated amount that will be amortized from accumulated other comprehensive loss as a reduction to postretirement healthcare costs in 2019 is $0.5. A one percentage-point increase or decrease in the assumed healthcare cost trend rates as of September 30, 2018, would cause an increase or decrease in service and interest costs of $0.1, along with an increase or decrease in the benefit obligation of $0.5. We fund the postretirement healthcare plan as benefits are paid. Current plan benefits are expected to require net Company contributions for retirees of $0.8 per year for the foreseeable future. |
Other Long-Term Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Liabilities | Other Long-Term Liabilities
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code that impact our fiscal year ended September 30, 2018 including, but not limited to (a) reducing the U.S. federal corporate tax rate, (b) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries (“Transition Tax”), and (c) accelerating expensing of certain capital expenditures. The Tax Act reduced the federal corporate tax rate from 35% to 21%. The Internal Revenue Code stipulates that our fiscal year ending September 30, 2018 had a blended corporate tax rate of 24.5%, which is based on a proration of the applicable tax rates before and after the effective date of the Tax Act. The statutory tax rate of 21% will apply to future years.
We recorded a tax benefit of $13.7 at September 30, 2018, for the remeasurement of the deferred tax items to reflect the impact of the U.S. corporate tax rate reduction to 21%. At September 30, 2018, we had $2.3 of deferred tax assets related to U.S. federal and state net operating losses and tax credit carryforwards, which will begin to expire in 2019, and $35.0 of deferred tax assets related to foreign net operating loss carryforwards, which will begin to expire in 2019. Deferred tax assets as of September 30, 2018 and 2017, were reduced by a valuation allowance of $1.8 and $3.1 relating to foreign net operating loss carryforwards and foreign tax credit carryforwards. At September 30, 2018 and 2017, we had $19.5 and $18.3 of current income tax payable classified as other current liabilities on our balance sheets. The September 30, 2018 current liability included $2.0 of the first annual installment of the Transition Tax. As of September 30, 2018, we also had $22.6 of Transition Tax that we expect to be payable over the next 7 years classified as other noncurrent liabilities on our balance sheets. We establish a valuation allowance for deferred tax assets when it is determined that the amount of expected future taxable income is not likely to support the use of the deduction or credit. As of September 30, 2018 and 2017, we had approximately $321.7 and $241.2 of undistributed earnings from our foreign subsidiaries. Historically, U.S. federal and state income taxes have not been provided on accumulated undistributed earnings of substantially all our foreign subsidiaries, as these earnings were considered permanently reinvested. However, upon enactment of the Tax Act, the undistributed earnings of our foreign subsidiaries are subject to U.S. tax due to the Transition Tax. As a result we have provisionally recognized a one-time tax expense of $29.2 to be partially offset by current year foreign tax credits and foreign tax credit carryforwards of approximately $4.6. As of September 30, 2018 and 2017, $0.5 and $4.2 of deferred tax liability on unremitted earnings of foreign subsidiaries was recognized, representing the assumed tax on the distribution and tax withholdings on the distribution of such earnings among certain of our foreign subsidiaries. Deferred tax liabilities were not provided for any additional outside basis differences inherent in our foreign subsidiaries (i.e. basis differences in excess of those subject to the transition tax) as these amounts continue to be provisionally permanently reinvested outside of the US. If these amounts were not considered permanently reinvested, deferred tax liabilities would be recorded for any additional income taxes, distribution taxes, and withholding taxes payable in various countries. A determination of the unrecognized deferred tax liabilities on the permanently reinvested earnings at September 30, 2018 is not practicable. A reconciliation of the unrecognized tax benefits is as follows:
The gross unrecognized tax benefit included $12.1 and $9.9 at September 30, 2018 and 2017, which, if recognized, would impact the effective tax rate in future periods. We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. During 2018 and 2017, we recognized $0.9 and $0.7 in additional interest and penalties. Excluded from the reconciliation were $2.0 and $1.3 of accrued interest and penalties at September 30, 2018 and 2017. We operate in multiple income tax jurisdictions both inside and outside the U.S. and are currently under examination in various federal, state, and foreign jurisdictions. Specifically, we are currently under examination in the U.S. for 2016 and under examination in Germany for 2009 through 2013. In addition, there are other ongoing audits in various stages of completion in several state and foreign jurisdictions. It is possible that the liability associated with the unrecognized tax benefits will increase or decrease within the next 12 months. These changes may be the result of ongoing audits or the expiration of statutes of limitations and could range up to $3.0 based on current estimates. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although we believe that adequate provision has been made for such issues, it is possible that their ultimate resolution could affect our earnings. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced and yield a positive impact on earnings. We do not expect that the outcome of these audits will significantly impact the financial statements. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share The dilutive effects of performance-based stock awards described in Note 9 are included in the computation of diluted earnings per share at the level the related performance criteria are met through the respective balance sheet date. At September 30, 2018, 2017, and 2016, potential dilutive effects, representing 400,000, 600,000, and 800,000 shares were excluded from the computation of diluted earnings per share as the related performance criteria were not yet met, although we expect to meet various levels of criteria in the future.
(1) Net income attributable to Hillenbrand |
Share-Based Compensation |
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Compensation Related Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation We have share-based compensation plans under which 12,685,436 shares are registered. As of September 30, 2018, 2,844,887 shares were outstanding under these plans and 6,334,429 shares had been issued, leaving 3,506,120 shares available for future issuance. Our primary plan, the Hillenbrand, Inc. Stock Incentive Plan, provides for long-term performance compensation for management and members of the Board of Directors. Under the Stock Incentive Plan, a variety of discretionary awards for employees and non-employee directors are authorized, including incentive or non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, and bonus stock. These programs are administered by the Board of Directors and its Compensation and Management Development Committee.
The Company realized current tax benefits of $5.4 from the exercise of stock options and the payment of stock awards during 2018. Stock Options — The fair values of option grants are estimated on the date of grant using the Black-Scholes option-pricing model. For grants issued prior to 2017, fair values were estimated using the binomial option-pricing model. The grants are contingent upon continued employment and generally vest over a three-year period. Expense is recognized on a straight-line basis over the applicable vesting periods. Option terms generally do not exceed 10 years. The weighted-average fair value of options granted was $11.28, $8.37, and $7.80 per share for 2018, 2017, and 2016. The following assumptions were used in the determination of fair value:
(1) Assumption only applicable to the binomial option-pricing model used in 2016 The risk-free interest rate is based upon observed interest rates appropriate for the term of the employee stock options. The remaining assumptions require significant judgment utilizing historical information, peer data, and future expectations. The dividend yield is based on the history of dividend payouts and the computation of expected volatility is based on historical stock volatility. The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding. In 2018 and 2017, the expected life was based on historical exercise activity. Prior to 2017, the expected life was a derived output of the binomial model. Prior to 2017, the post-vesting termination rate and the exercise factor were based on the history of exercises and forfeitures for previous stock options. A summary of outstanding stock option awards as of September 30, 2018 and changes during the year is presented below:
As of September 30, 2018, there was $4.2 of unrecognized stock-based compensation associated with unvested stock options expected to be recognized over a weighted-average period of 2.1 years. This unrecognized compensation expense included a reduction for our estimate of potential forfeitures. As of September 30, 2018, the average remaining life of the outstanding stock options was 6.8 years with an aggregate intrinsic value of $34.5. As of September 30, 2018, the average remaining life of the exercisable stock options was 5.4 years with an aggregate intrinsic value of $25.2. The total intrinsic value of options exercised by employees and directors during 2018, 2017, and 2016 was $7.5, $11.2, and $7.5. The grant-date fair value of options that vested during 2018, 2017, and 2016 was $11.1, $11.2, and $9.6. Time-Based Stock Awards and Performance-Based Stock Awards — These awards are consistent with our compensation program’s guiding principles and are designed to (i) align management’s interests with those of shareholders, (ii) motivate and provide incentive to achieve superior results, (iii) maintain a significant portion of at-risk incentive compensation, (iv) delineate clear accountabilities, and (v) ensure competitive compensation. We believe that our blend of compensation components provides the Company’s management with the appropriate incentives to create long-term value for shareholders while taking thoughtful and prudent risks to grow the value of the Company. Our stock plan enables us to grant several types of restricted stock unit awards including time-based, performance-based contingent on the creation of shareholder value (“SV”), and performance-based based on a relative total shareholder return formula (“TSR”). Our time-based stock awards provide an unconditional delivery of shares after a specified period of service. We record expense associated with time-based awards on a straight-line basis over the vesting period, net of estimated forfeitures. The vesting of the SV awards is contingent upon the creation of shareholder value as measured by the cumulative cash returns and final period net operating profit after tax compared to the established hurdle rate over a three-year period and a corresponding service requirement. The hurdle rate is a reflection of the weighted-average cost of capital and targeted capital structure. The number of shares awarded is based upon the fair value of our stock at the date of grant adjusted for the attainment level at the end of the period. Based on the extent to which the performance criteria are achieved, it is possible for none of the awards to vest or for a range up to the maximum to vest. We record expense associated with the awards on a straight-line basis over the vesting period based upon an estimate of projected performance. The actual performance of the Company is evaluated quarterly, and the expense is adjusted according to the new projections. As a result, depending on the degree to which performance criteria are achieved or projections change, expenses related to the SV awards may become more volatile as we approach the final performance measurement date at the end of the three-year period. The vesting of TSR awards is determined by comparing our total shareholder return during a three-year period to the respective total shareholder returns of companies in a designated performance peer group. Based on the Company’s relative ranking within the performance peer group, it is possible for none of the awards to vest or for a range up to the maximum to vest. The Monte-Carlo simulation method is used to determine fair value of TSR awards at the grant date. The Monte-Carlo simulation model estimates the fair value of this market-based award based upon the expected term, risk-free interest rate, expected dividend yield, and expected volatility measure for the Company and its peer group. Compensation expense for the TSR awards is recognized over the vesting period regardless of whether the market conditions are expected to be achieved. A summary of the non-vested stock awards, including dividends, as of September 30, 2018 (representing the maximum number of shares that could be vested) and changes during the year is presented below:
The total vest date fair value of shares held by Hillenbrand employees and directors which vested during 2018, 2017, and 2016 was $15.2, $10.9, and $7.4 (including dividends). As of September 30, 2018, $1.5 and $7.1 of unrecognized stock-based compensation was associated with our unvested time-based and performance-based (including SV and TSR) stock awards. The unrecognized amount of compensation related to the SV awards is based upon projected performance to date. The unrecognized compensation cost of the time-based and performance based awards is expected to be recognized over a weighted-average period of 2.0 and 1.7 years and includes a reduction for an estimate of potential forfeitures. As of September 30, 2018, the outstanding time-based stock awards and performance-based stock awards had an aggregate fair value of $4.8 and $24.2. The weighted-average grant date fair value of time-based stock awards was $35.41 and $30.59 per share for 2017 and 2016. The weighted-average grant date fair value of performance-based stock awards was $39.72 and $33.14 per share for 2017 and 2016. Dividends payable in stock accrue on both time-based and SV awards during the performance period and are subject to the same terms as the original grants. Dividends do not accrue on TSR awards during the performance period. As of September 30, 2018, a total of 9,135 shares had accumulated on unvested stock awards due to dividend reinvestments and were excluded from the tables above. The aggregate fair value of these shares at September 30, 2018 was $0.5. Vested Deferred Stock — Certain stock-based compensation programs allow or require deferred delivery of shares after vesting. As of September 30, 2018, there were 403,918 fully vested deferred shares, which were excluded from the tables above. The aggregate fair value of these shares at September 30, 2018 was $21.1. |
Other Comprehensive Income (Loss) |
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Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss)
(1) Amounts are net of tax. Reclassifications out of Accumulated Other Comprehensive Income include:
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).
(1) Amounts are net of tax. Reclassifications out of Accumulated Other Comprehensive Income include:
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).
(1) Amounts are net of tax. Reclassifications out of Accumulated Other Comprehensive Income include:
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5). |
Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies Lease Commitments — We lease certain manufacturing facilities, warehouse distribution centers, service centers, and sales offices under operating leases. Rental expense for 2018, 2017, and 2016 was $23.2, $23.6 and $27.8. The aggregate future minimum lease payments for operating leases, excluding renewable periods, as of September 30, 2018, were as follows:
Litigation General — Like most companies, we are involved from time to time in claims, lawsuits, and government proceedings relating to our operations, including environmental, patent infringement, business practices, commercial transactions, product and general liability, workers’ compensation, auto liability, employment, and other matters. The ultimate outcome of these matters cannot be predicted with certainty. An estimated loss from these contingencies is recognized when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated; however, it is difficult to measure the actual loss that might be incurred related to these matters. If a loss is not considered probable and/or cannot be reasonably estimated, we are required to make a disclosure if there is at least a reasonable possibility that a significant loss may have been incurred. Legal fees associated with claims and lawsuits are generally expensed as incurred. Claims covered by insurance have in most instances deductibles and self-funded retentions up to $0.5 per occurrence or per claim, depending upon the type of coverage and policy period. For auto, workers compensation, and general liability, outside insurance companies and third-party claims administrators generally assist in establishing individual claim reserves. An independent outside actuary often provides estimates of ultimate projected losses, including incurred but not reported claims, which are used to establish reserves for losses. For all other types of claims, reserves are established based upon advice from internal and external counsel and historical settlement information for claims when such amounts are considered probable of payment. The recorded amounts represent our best estimate of the costs we will incur in relation to such exposures, but it is possible that actual costs will differ from those estimates. |
Other (Expense) Income, Net |
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Other (Expense) Income, Net | Other (Expense) Income, Net
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels:
See the section below titled “Valuation Techniques” for further discussion of how Hillenbrand determines fair value for investments.
Valuation Techniques
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Segment and Geographical Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographical Information | Segment and Geographical Information We conduct our operations through two reportable business segments: the Process Equipment Group and Batesville. These reporting segments are determined on the basis of our management structure, and how we internally report financial information used to make operating decisions and evaluate results. We record the direct costs of business operations to the reporting segments, including stock-based compensation, asset impairments, restructuring activities, and business acquisition costs. Corporate provides management and administrative services to each reporting segment. These services include treasury management, human resources, legal, business development, and other public company support functions such as internal audit, investor relations, financial reporting, and tax compliance. With limited exception for certain professional services and back-office and technology costs, we do not allocate these types of corporate expenses to the reporting segments.
(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.
The following schedule reconciles segment adjusted EBITDA to consolidated net income.
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Unaudited Quarterly Financial Information |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Quarterly Financial Information | Unaudited Quarterly Financial Information
(1) Net income (loss) attributable to Hillenbrand |
Condensed Consolidating Information |
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Condensed Financial Information of Parent Company Only 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
(1) Net income attributable to Hillenbrand (2) Comprehensive income attributable to Hillenbrand Condensed Consolidating Balance Sheets
Condensed Consolidating Statements of Cash Flows
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Restructuring |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring The following schedule details the restructuring charges by segment and the classification of those charges on the income statement.
The charges related primarily to the closure of a Batesville plant, corporate functional restructuring, and severance costs at the Process Equipment Group. At September 30, 2018, $1.3 of restructuring costs were accrued and are expected to be paid over the next twelve months. |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II HILLENBRAND, INC. VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED SEPTEMBER 30, 2018, 2017, AND 2016
(a) Reflects the write-off of specific receivables against recorded reserves and other adjustments. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of presentation | Basis of presentation — The accompanying consolidated financial statements include the accounts of Hillenbrand and its subsidiaries. They also include two subsidiaries where the Company’s ownership percentage is less than 100%. The portion of the business that is not owned by the Company is presented as noncontrolling interests within equity in the balance sheets. Income attributable to the noncontrolling interests is separately reported within the statements of income. All significant intercompany accounts and transactions have been eliminated. |
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Use of estimates | Use of estimates — We prepared the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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Foreign currency translation | Foreign currency translation — The financial statements of our foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive loss in shareholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, we recognize a transaction gain or loss in “other (expense) income, net” when the transaction is settled. |
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Cash and cash equivalents | Cash and cash equivalents include short-term investments with original maturities of three months or less. The carrying amounts reported in the balance sheet for cash and cash equivalents are valued at cost, which approximates their fair value. |
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Restricted Cash | Restricted cash - Restricted cash of $0.5 and $0.8 are included in Other current assets in the Consolidated Balance Sheets at September 30, 2018 and 2017. |
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Trade receivables | Trade receivables are recorded at the invoiced amount and generally do not bear interest, unless they become past due. The allowance for doubtful accounts is a best estimate of the amount of probable credit losses and collection risk in the existing accounts receivable portfolio. The allowance for cash discounts and sales returns reserve are based upon historical experience and trends. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We generally hold trade accounts receivable until they are collected. At September 30, 2018 and 2017, we had reserves against trade receivables of $22.2 and $21.6. |
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Inventories | Inventories are valued at the lower of cost or market. Inventory costs are determined by the last-in, first-out (“LIFO”) method for approximately 30% and 32% of inventories at September 30, 2018 and 2017. Costs of remaining inventories have been determined principally by the first-in, first-out (“FIFO”) and average cost methods. If the FIFO method of inventory accounting, which approximates current cost, had been used for inventory accounted for using the LIFO method, that inventory would have been approximately $15.7 and $15.0 higher than reported at September 30, 2018 and 2017. |
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Property, plant, and equipment | Property, plant, and equipment are carried at cost less accumulated depreciation. Depreciation is computed using principally the straight-line method based on estimated useful lives of three to 50 years for buildings and improvements and three to 25 years for machinery and equipment. Maintenance and repairs are expensed as incurred. Upon disposal or retirement, the cost and accumulated depreciation of assets are eliminated. Any gain or loss is reflected in the Company’s income from operations. We review these assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. The impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. Total depreciation expense for 2018, 2017, and 2016 was $23.4, $25.4, and $25.6. |
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Intangible assets | Intangible assets are stated at the lower of cost or fair value. With the exception of certain trade names, intangible assets are amortized on a straight-line basis over periods ranging from three to 21 years, representing the period over which we expect to receive future economic benefits from these assets. We assess the carrying value of trade names annually, or more often if events or changes in circumstances indicate there may be impairment. Estimated amortization expense related to intangible assets for the next five years is: $32.1 in 2019, $31.5 in 2020, $30.4 in 2021, $29.2 in 2022, and $28.8 in 2023.
The net change in intangible assets during the year ended September 30, 2018 was driven by normal amortization, foreign currency translation, and an impairment charge on certain trade names. An impairment charge of $4.6 pre-tax ($3.5 after tax) was recorded during the quarter ended March 31, 2018 for trade names most directly impacted by domestic coal mining and coal power. As of September 30, 2018, we had approximately $4 of trade name book value remaining in the Process Equipment Group segment most directly impacted by domestic coal mining and coal power. In conjunction with our impairment testing, we also reassessed the useful lives of other definite-lived intangible assets specific to the intangibles impacted by domestic coal mining and coal power, resulting in no significant changes in amortization. In the third quarter of 2016, the Company recorded a trade name impairment charge of $2.2, included in operating expenses, on two trade names related to the Process Equipment Group segment. The decline in the estimated fair value of these trade names was largely driven by the decreased demand for equipment and parts used in coal mining and coal power. As a result of the required annual impairment assessment performed in the third quarter of 2018, the fair value of trade names was determined to meet or exceed the carrying value for all trade names, resulting in no further impairment to trade names. |
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Goodwill | Goodwill is not amortized, but is subject to annual impairment tests. Goodwill has been assigned to reporting units. We assess the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment. Impairment testing is performed at a reporting unit level.
In connection with the preparation of the quarterly financial statements for the second quarter of 2018, an interim impairment assessment was performed at the reporting unit most directly impacted by domestic coal mining and coal power. During the quarter ended March 31, 2018, published industry reports reduced their forecasts for domestic coal production and consumption. The reporting unit also experienced a larger than expected decline in orders for equipment and parts used in the domestic coal mining and coal power industries. In conjunction with these events and as part of the long-term strategic forecasting process, the Company made the decision to redirect strategic investments for growth, significantly reducing the reporting unit’s terminal growth rate. As a result of this change in expected future cash flows, along with comparable fair value information, management concluded that the reporting unit carrying value exceeded its fair value, resulting in a goodwill impairment charge of $58.8. The pre-impairment goodwill balance for the reporting unit was $71.3. |
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Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental liabilities | Environmental liabilities — Expenditures that relate to an existing condition caused by past operations which do not contribute to current or future revenue generation are expensed. A reserve is established when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These reserves are determined without consideration of possible loss recoveries. Based on consultations with an environmental engineer, the range of liability is estimated based on current interpretations of environmental laws and regulations. A determination is made of the specific measures that are believed to be required to remediate the site, the estimated total cost to carry out the remediation plan, and the periods in which we will make payments toward the remediation plan. We do not make an estimate of inflation for environmental matters because the number of sites is relatively small, we believe the magnitude of costs to execute remediation plans is not significant, and the estimated time frames to remediate sites are not believed to be lengthy. Specific costs included in environmental expense and reserves include site assessment, remediation plan development, clean-up costs, post-remediation expenditures, monitoring, fines, penalties, and legal fees. The amount reserved represents the expected undiscounted future cash outflows associated with such plans and actions and we believe is not significant to Hillenbrand. |
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Self-insurance | Self-insurance — We are self-funded up to certain limits for product and general liability, workers compensation, and auto liability insurance programs, as well as certain employee health benefits including medical, drug, and dental. Claims covered by insurance have in most instances deductibles and self-funded retentions up to $0.5 per occurrence, depending upon the type of coverage and policy period. Our policy is to estimate reserves for product and general liability, workers compensation, and auto liability based upon a number of factors, including known claims, estimated incurred but not reported claims, and outside actuarial analysis. The outside actuarial analysis is based on historical information along with certain assumptions about future events. These reserves are classified as other current and other long-term liabilities within the balance sheets. |
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Treasury stock | Treasury stock consists of our common shares that have been issued but subsequently reacquired. We account for treasury stock purchases under the cost method. When these shares are reissued, we use an average-cost method to determine cost. Proceeds in excess of cost are credited to additional paid-in capital. On July 24, 2008, our Board of Directors approved a stock repurchase program for the repurchase of up to $100.0 of our common stock. On February 23, 2017, our Board of Directors approved an increase of $100.0 to the existing stock repurchase program. The authorization brings the maximum cumulative repurchase authorization up to $200.0. The repurchase program has no expiration date, but may be terminated by the Board of Directors at any time. As of September 30, 2018, we had repurchased approximately 4,950,000 shares for approximately $160.4 in the aggregate. Such shares were classified as treasury stock. We repurchased approximately 1,385,600 shares of our common stock during 2018, at a total cost of approximately $61.0. In 2018 and 2017, approximately 500,000 shares and 700,000 shares were issued from treasury stock under our stock compensation programs. At September 30, 2018, we had approximately $39.6 remaining for share repurchases under the existing Board authorization. |
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Preferred stock | Preferred stock — The Company has authorized 1,000,000 shares of preferred stock (no par value), of which no shares were issued at September 30, 2018 and 2017. |
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Accumulated other comprehensive loss | Accumulated other comprehensive loss includes all changes in Hillenbrand shareholders’ equity during the period except those that resulted from investments by or distributions to our shareholders. |
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Revenue recognition | Revenue recognition — Net revenue includes gross revenue less sales discounts, customer rebates, sales incentives, and product returns, all of which require us to make estimates for the portion of these allowances that have yet to be credited or paid to our customers. We estimate these allowances based upon historical rates and projections of customer purchases toward contractual rebate thresholds. A portion of Hillenbrand’s revenue is derived from long-term manufacturing contracts. The majority of this revenue is recognized based on the percentage-of-completion method. Under this method, revenue is recognized based upon the costs incurred to date as compared to the total estimated project costs. Approximately 25%, 25%, and 24% of Hillenbrand’s revenue was attributable to these long-term manufacturing contracts for 2018, 2017, and 2016. Accounting for these contracts involves management judgment in estimating total contract revenue and cost. Contract revenues are largely determined by negotiated contract prices and quantities, modified by our assumptions regarding contract options, change orders, and incentive and award provisions associated with technical performance clauses. Contract costs are incurred over longer periods of time and, accordingly, the estimation of these costs requires management judgment. Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends, and other economic projections. Significant factors that influence these estimates include inflationary trends, technical and schedule risk, internal and subcontractor performance trends, business volume assumptions, asset utilization, and anticipated labor agreements. Revenue and cost estimates are regularly monitored and revised based on changes in circumstances. Anticipated losses on long-term contracts are recognized immediately when such losses become evident. We maintain financial controls over the customer qualification, contract pricing, and estimation processes to reduce the risk of contract losses. Revenue for components, most replacement parts, and service is recognized when title and risk of loss passes to the customer. |
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Cost of goods sold | Cost of goods sold consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, and overhead costs. It also includes costs associated with the distribution and delivery of products. |
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Research and development costs | Research and development costs are expensed as incurred as a component of operating expenses and were $11.7, $11.9, and $12.6 for 2018, 2017, and 2016. |
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Warranty costs | Warranty costs — We provide for the estimated warranty cost of a product at the time revenue is recognized. Warranty expense is accrued based upon historical information and may also include specific provisions for known conditions. Warranty obligations are affected by actual product performance and by material usage and service costs incurred in making product corrections. Our warranty provision takes into account the best estimate of amounts necessary to settle future and existing claims on products sold. The Process Equipment Group generally offers a one to two-year warranty on a majority of its products. It engages in extensive product quality programs and processes in an effort to minimize warranty obligations, including active monitoring and evaluation of the quality of component suppliers. Warranty reserves were $16.9 and $15.8 for 2018 and 2017. Warranty costs were $3.3, $4.1, and $4.3 for 2018, 2017, and 2016 |
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Income taxes | Income taxes — |
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Derivative financial instruments | Derivative financial instruments — The Company has hedging programs in place to manage its currency exposures. The objectives of our hedging programs are to mitigate exposures in gross margin and non-functional-currency-denominated assets and liabilities. Under these programs, we use derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates. These include foreign currency exchange forward contracts, which generally have terms up to 24 months. We require that hedging derivative instruments be highly effective in reducing the risk exposure that they are designated to hedge. As a result, there was no significant ineffectiveness from any of our derivative activities during the period. We formally designate any instrument that meets these hedging criteria as a hedge. The aggregate notional amount of all derivative instruments was $152.6 and $262.4 at September 30, 2018 and 2017. We measure all derivative instruments at fair value and report them on our balance sheets as assets or liabilities. Contracts designated as hedges for customer orders or intercompany purchases have an offsetting tax-adjusted amount in accumulated other comprehensive gain (loss). Foreign exchange contracts designated to hedge foreign currency exposures within our balance sheet have an offsetting amount recorded in “Other (expense) income, net”. The cash flows from such hedges are presented in the same category in the Company’s Consolidated Statement of Cash Flows as the items being hedged. The carrying value of all of derivative instruments at fair value resulted in assets of $1.9 and $3.8 (included in other current assets and other assets) and liabilities of $2.2 and $2.3 (included in other current liabilities) at September 30, 2018 and 2017. See Note 13 for additional information on the fair value of our derivative instruments. Changes in the fair value of derivatives are accounted for depending on the intended use of the derivative, designation of the hedging relationship, and whether or not the criteria to apply hedge accounting has been satisfied. Gains and losses on derivative instruments reported in accumulated other comprehensive gain (loss) are subsequently included in earnings in the periods in which earnings are affected by the hedged item. The amounts recognized in accumulated other comprehensive income (loss) and subsequently through earnings were not significant from 2016 through 2018. Net gains and losses on foreign exchange contracts offset foreign exchange effects on the hedged items. The Company does not enter into derivative contracts for purposes of speculation. |
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Business acquisitions and related business acquisition and integration costs | Business acquisitions and related business acquisition and integration costs — Assets and liabilities associated with business acquisitions are recorded at fair value, using the acquisition method of accounting. We allocate the purchase price of acquisitions based upon the fair value of each component, which may be derived from observable or unobservable inputs and assumptions. We may utilize third-party valuation specialists to assist us in this allocation. Initial purchase price allocations are preliminary and subject to revision within the measurement period, generally not to exceed one year from the date of acquisition. Business acquisition, development, and integration costs are expensed as incurred and are reported as a component of cost of goods sold, operating expenses, interest expense, and “other (expense) income, net,” depending on the nature of the cost. We define these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional or consulting fees, as well as travel associated with the evaluation and effort to acquire specific businesses. Business acquisition and integration costs also include costs associated with acquisition tax planning, retention bonuses, and related integration costs. These costs exclude the ongoing expenses of our business development department. |
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Restructuring costs | Restructuring costs may occur when we take action to exit or significantly curtail a part of our operations or change the deployment of assets or personnel. A restructuring charge can consist of an impairment or accelerated depreciation of affected assets, severance costs associated with reductions to the workforce, costs to terminate an operating lease or contract, and charges for legal obligations for which no future benefit will be derived. |
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Recently adopted accounting standards | Recently adopted accounting standards — In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test and modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. We early adopted this standard for fiscal year 2018. See Critical Accounting Estimates within this Form 10-K for further information on the impact this adoption had on our consolidated results of operations, financial position, and cash flows. |
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Recently issued accounting standards — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires significant disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 will be effective for our fiscal year beginning on October 1, 2018, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption. Based on our assessment, which included a comparison of our existing accounting policies and practices against the new standard and a review of contracts, we believe the key areas of consideration for our financial statements include percentage-of-completion accounting, separate performance obligations, and related revenue recognized over time. We have executed our implementation plan and have developed new accounting policies and created draft disclosures under the new standard. We are also evaluating changes in our internal controls over revenue recognition and continue to implement system changes and enhancements to facilitate the collection of data required for disclosures under the new standard. As previously disclosed, we expect to adopt this new standard using the modified retrospective method, which would result in a cumulative effect adjustment as of the date of adoption. We currently believe the most significant impact of the adoption of this standard relates to the increased financial statement disclosures. We currently do not expect the adoption of ASU 2014-09 to have a material impact on our consolidated results of operations, financial position, and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize a right of use asset and related lease liability for leases that have terms of more than twelve months. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance, with the classifications based on criteria that are similar to those applied under the current lease guidance, without the explicit bright lines. The FASB has also issued several updates to ASU 2016-02. ASU 2016-02 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements, and expect that there will be increases in assets and liabilities in our Consolidated Balance Sheets upon adoption, due to the recognition of right-of-use assets and corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Statements. ASU 2016-13 replaces the current incurred loss impairment model with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. ASU 2016-13 will be effective for our fiscal year beginning on October 1, 2020, with early adoption permitted for our fiscal year beginning October 1, 2019. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-17 will be effective for our fiscal year beginning on October 1, 2018. We expect the adoption of ASU 2016-18 to have a financial statement presentation and disclosure impact only. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business. ASU 2017-01 assists entities in determining whether a transaction involves an asset or a business. Specifically, it states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If this initial test is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create output. ASU 2017-01 will be effective for our fiscal year beginning on October 1, 2018. We are currently evaluating ASU 2017-01, but do not expect its adoption will have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 states that an employer must report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period and present the other components of net benefit cost (as defined in paragraphs 715-30-35-4 and 715-60-35-9) in the income statement separately from the service cost component and outside a subtotal of income from operations (if one is presented). In addition, ASU 2017-07 limits the capitalization of compensation costs to the service cost component only (if capitalization is appropriate). ASU 2017-07 will be effective for our fiscal year beginning on October 1, 2018. We do not expect the adoption of ASU 2017-07 to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications (in accordance with Topic 718). The new guidance will provide relief to entities that make non-substantive changes to share-based payment awards. ASU 2017-09 will be effective for our fiscal year beginning on October 1, 2018. The amendment would be applied prospectively to an award modified on or after the adoption date. We do not expect ASU 2017-09 to have a significant impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. The amendment would be applied to hedging relationships existing on the date of adoption and the effect of adoption would be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). We are currently evaluating the impact that ASU 2017-12 will have on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The amendments in this ASU also require certain disclosures about stranded tax effects. The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. ASU 2018-02 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. We are currently evaluating the impact that ASU 2018-02 will have on our consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories |
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Schedule of carrying value of property, plant and equipment |
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Schedule of intangible assets and related amortization |
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Changes in the carrying amount of goodwill |
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Schedule of changes in accumulated other comprehensive income (loss) by component |
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Financing Agreements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of borrowings under financing agreements |
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Summary of scheduled maturities of long-term debt | The following table summarizes the scheduled maturities of long-term debt for 2019 through 2023:
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Retirement Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans Defined Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Postemployment Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net pension costs | The components of net pension costs under defined benefit retirement plans were:
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Schedule of changes in projected benefit obligations, plan assets, and funded status, along with amounts recognized in the consolidated balance sheets for defined benefit retirement plans | The change in benefit obligation and funded status of the Company’s defined benefit retirement plans were:
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Schedule of accumulated benefit obligation in excess of plan assets | Selected information for plans with accumulated benefit obligations in excess of plan assets was:
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Summary of actuarial assumptions | The weighted-average assumptions used in accounting for defined benefit retirement plans were:
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Schedule of fair value of pension plan assets by asset category |
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Schedule of estimated future benefit payments | The following represents estimated future benefit payments, including expected future service, which are expected to be paid from plan assets or Company contributions as necessary:
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Other Postretirement Benefits Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Postemployment Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in projected benefit obligations, plan assets, and funded status, along with amounts recognized in the consolidated balance sheets for defined benefit retirement plans |
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Schedule of weighted average assumptions under the postretirement healthcare plan | The weighted-average assumptions used in revaluing our obligation under the postretirement healthcare plan were:
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Other Long-Term Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other long-term liabilities |
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of components of earnings before income taxes and the consolidated income tax provision |
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Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate |
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Summary of deferred income tax balance sheet accounts |
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Activity within the reserve for unrecognized tax benefits | A reconciliation of the unrecognized tax benefits is as follows:
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Earnings Per Share (Tables) |
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings per share |
(1) Net income attributable to Hillenbrand |
Share-Based Compensation (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation costs |
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Summary of assumptions used in determining fair value of options | The following assumptions were used in the determination of fair value:
(1) Assumption only applicable to the binomial option-pricing model used in 2016 |
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Summary of outstanding stock options | A summary of outstanding stock option awards as of September 30, 2018 and changes during the year is presented below:
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Summary of outstanding restricted stock units | A summary of the non-vested stock awards, including dividends, as of September 30, 2018 (representing the maximum number of shares that could be vested) and changes during the year is presented below:
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Summary of outstanding performance-based units |
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Other Comprehensive Income (Loss) (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) by component |
(1) Amounts are net of tax.
(1) Amounts are net of tax.
(1) Amounts are net of tax. |
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Schedule of reclassifications out of accumulated other comprehensive income | Reclassifications out of Accumulated Other Comprehensive Income include:
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5). Reclassifications out of Accumulated Other Comprehensive Income include:
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5). Reclassifications out of Accumulated Other Comprehensive Income include:
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5). |
Commitments and Contingencies (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of aggregate future minimum lease payments for operating leases, excluding renewable periods | The aggregate future minimum lease payments for operating leases, excluding renewable periods, as of September 30, 2018, were as follows:
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Other (Expense) Income, Net (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net |
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial assets and liabilities at carrying value and fair value and the level within the fair value hierarchy |
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Segment and Geographical Information (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment |
(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale. |
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Schedule of Assets from Segment and Long Lived Assets by Geographical Area |
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Reconciliation of Adjusted Earnings before Interest, Tax, Depreciation and Amortization from Segments to Consolidated | The following schedule reconciles segment adjusted EBITDA to consolidated net income.
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Unaudited Quarterly Financial Information (Tables) |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of unaudited quarterly financial information |
(1) Net income (loss) attributable to Hillenbrand |
Condensed Consolidating Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statements of income | Condensed Consolidating Statements of Income
(1) Net income attributable to Hillenbrand (2) Comprehensive income attributable to Hillenbrand |
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Schedule of condensed consolidating balance sheets | Condensed Consolidating Balance Sheets
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Schedule of condensed consolidating statements of cash flows | Condensed Consolidating Statements of Cash Flows
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Restructuring Restructuring (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges by segment | The following schedule details the restructuring charges by segment and the classification of those charges on the income statement.
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Description of the Business (Details) |
12 Months Ended |
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Sep. 30, 2018
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accounting Policies - Basis of presentation (Details) |
Sep. 30, 2018 |
---|---|
Coperion Capital Gmb H | Maximum | |
Business acquisitions | |
Percentage ownership in affiliates acquired through acquisition of the affiliate's parent company | 100.00% |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 0.5 | $ 0.8 |
Summary of Significant Accounting Policies - Trade receivables, Inventories and Property, plant, and equipment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Trade Receivables | |||
Reserve for trade receivables | $ (22.2) | $ (21.6) | |
Inventories | |||
Percentage of inventories determined by LIFO method | 30.00% | 32.00% | |
Difference in valuation if the FIFO method of inventory accounting had been used for all inventories | $ 15.7 | $ 15.0 | |
Raw materials and components | 68.3 | 52.6 | |
Work in process | 44.7 | 55.4 | |
Finished goods | 59.5 | 43.6 | |
Total inventories | 172.5 | 151.6 | |
Properties | |||
Depreciation expense | 23.4 | 25.4 | $ 25.6 |
Cost | 445.8 | 462.2 | |
Accumulated Depreciation | (303.8) | (311.8) | |
Land and land improvements | |||
Properties | |||
Cost | 15.0 | 15.9 | |
Accumulated Depreciation | (3.3) | (3.5) | |
Buildings and building equipment | |||
Properties | |||
Cost | 102.3 | 110.5 | |
Accumulated Depreciation | $ (60.7) | (68.0) | |
Buildings and building equipment | Minimum | |||
Properties | |||
Estimated useful lives | 3 years | ||
Buildings and building equipment | Maximum | |||
Properties | |||
Estimated useful lives | 50 years | ||
Machinery and equipment | |||
Properties | |||
Cost | $ 328.5 | 335.8 | |
Accumulated Depreciation | $ (239.8) | $ (240.3) | |
Machinery and equipment | Minimum | |||
Properties | |||
Estimated useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Properties | |||
Estimated useful lives | 25 years |
Summary of Significant Accounting Policies - Intangible assets (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Future amortization expense | ||||
2017 | $ 32.1 | |||
2018 | 31.5 | |||
2019 | 30.4 | |||
2020 | 29.2 | |||
2021 | 28.8 | |||
Components of intangible assets and the related accumulated amortization | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4.6 | $ 0.0 | $ 2.2 | |
Cost | 602.5 | 598.1 | ||
Accumulated amortization | (242.8) | (207.6) | ||
Other Finite-Lived Intangible Assets, Gross | $ 730.1 | 731.5 | ||
Minimum | ||||
Components of intangible assets and the related accumulated amortization | ||||
Intangible assets amortization period | 3 years | |||
Maximum | ||||
Components of intangible assets and the related accumulated amortization | ||||
Intangible assets amortization period | 21 years | |||
After Tax [Member] | ||||
Components of intangible assets and the related accumulated amortization | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3.5 | |||
Trade names | ||||
Components of intangible assets and the related accumulated amortization | ||||
Trade names, indefinite lives | $ 127.6 | 133.4 | ||
Trade names | ||||
Components of intangible assets and the related accumulated amortization | ||||
Cost | 0.2 | 0.2 | ||
Accumulated amortization | (0.2) | (0.1) | ||
Customer relationships | ||||
Components of intangible assets and the related accumulated amortization | ||||
Cost | 464.5 | 468.7 | ||
Accumulated amortization | (148.4) | (125.9) | ||
Technology, including patents | ||||
Components of intangible assets and the related accumulated amortization | ||||
Cost | 79.6 | 80.7 | ||
Accumulated amortization | (45.1) | (39.9) | ||
Software | ||||
Components of intangible assets and the related accumulated amortization | ||||
Cost | 58.0 | 48.3 | ||
Accumulated amortization | (48.9) | (41.5) | ||
Other | ||||
Components of intangible assets and the related accumulated amortization | ||||
Cost | 0.2 | 0.2 | ||
Accumulated amortization | $ (0.2) | $ (0.2) | ||
Customer Concentration Risk [Member] | Trade names | ||||
Components of intangible assets and the related accumulated amortization | ||||
Trade names, indefinite lives | $ 4.0 |
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Goodwill | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4,600,000 | $ 0 | $ 2,200,000 | ||
Goodwill, Impairment Loss | $ (58,800,000) | 0 | 0 | ||
Changes in the carrying amount of goodwill | |||||
Goodwill, Beginning Balance | $ 647,500,000 | 647,500,000 | 634,300,000 | ||
Adjustments | (900,000) | ||||
Foreign currency adjustments | (6,800,000) | 14,100,000 | |||
Goodwill, Ending Balance | 581,900,000 | 647,500,000 | 634,300,000 | ||
Process Equipment Group | |||||
Goodwill | |||||
Goodwill, Impairment Loss | (58,800,000.0) | ||||
Changes in the carrying amount of goodwill | |||||
Goodwill, Beginning Balance | 639,200,000 | 639,200,000 | 626,000,000 | ||
Adjustments | (900,000) | ||||
Foreign currency adjustments | (6,800,000) | 14,100,000 | |||
Goodwill, Ending Balance | 573,600,000 | 639,200,000 | 626,000,000 | ||
Batesville | |||||
Changes in the carrying amount of goodwill | |||||
Goodwill, Beginning Balance | 8,300,000 | 8,300,000 | 8,300,000 | ||
Acquisitions | 0 | ||||
Adjustments | 0 | ||||
Foreign currency adjustments | 0 | 0 | |||
Goodwill, Ending Balance | 8,300,000 | $ 8,300,000 | $ 8,300,000 | ||
Concentration Risk Type [Domain] | |||||
Goodwill | |||||
Goodwill, Impairment Loss | $ 7.4 | ||||
Reporting Unit, Approximate Percentage of Fair Value in Excess of Carrying Amount | 10.00% | 10.00% | |||
Customer Concentration Risk [Member] | |||||
Changes in the carrying amount of goodwill | |||||
Goodwill, Ending Balance | $ 71,300,000 |
Summary of Significant Accounting Policies - Other (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Jan. 01, 2018 |
Dec. 31, 2017 |
Feb. 23, 2017 |
Jul. 24, 2008 |
|
FederalCorporateTaxRate | 21.00% | 35.00% | |||||
BlendedCorporateTaxRate | 24.50% | ||||||
Treasury Stock | |||||||
Maximum amount of common stock repurchases | $ 200.0 | $ 100.0 | $ 100.0 | ||||
Shares Repurchased And Classified As Treasury Stock Value (Aggregate) | $ 160.4 | ||||||
Shares Repurchased (Aggregate) | 4,950,000 | ||||||
Shares Repurchased and Classified as Treasury Stock (shares) | 1,385,600 | ||||||
Shares repurchased (in dollars) | $ 61.0 | $ 28.0 | $ 21.2 | ||||
Shares issued from treasury stock under various stock compensation programs (in shares) | 500,000 | 700,000 | |||||
Remaining amount of share repurchases | $ 39.6 | ||||||
Preferred stock | |||||||
Authorized shares of preferred stock (in shares) | 1,000,000 | ||||||
Preferred stock par value (in dollars per share) | $ 0 | $ 0 | |||||
Shares issued | 0 | 0 | |||||
Accumulated other comprehensive loss | |||||||
Currency translation | $ (44.1) | $ (36.9) | |||||
Pension and postretirement (net of taxes of $22.3 and $23.4) | (41.0) | (45.3) | |||||
Unrealized gain (loss) on derivative instruments (net of taxes of $0.3 and $0.8) | 0.9 | 1.0 | |||||
Accumulated other comprehensive loss | (84.2) | (81.2) | |||||
Pension and postretirement, taxes | 22.3 | 23.4 | |||||
Unrealized gain (loss) on derivative instruments, taxes | $ 0.3 | $ 0.8 | |||||
Revenue recognition | |||||||
Revenue from long-term manufacturing contracts as a percentage of total revenue | 25.00% | 25.00% | 24.00% | ||||
Research and Development Costs | |||||||
Research and development costs | $ 11.7 | $ 11.9 | $ 12.6 | ||||
Warranty costs | |||||||
Warranty reserves | 16.9 | 15.8 | |||||
Warranty costs | 3.3 | 4.1 | 4.3 | ||||
Recently Adopted Accounting Standards | |||||||
Income tax expense | 65.3 | 59.9 | $ 47.3 | ||||
Cash Flow Hedging | Foreign Exchange Forward | |||||||
Derivative instruments and hedging activity | |||||||
Aggregate notional value of derivatives | $ 152.6 | 262.4 | |||||
Minimum | |||||||
Standard Product Warranty Period | 1 year | ||||||
Maximum | |||||||
Standard Product Warranty Period | 2 years | ||||||
Self-Insurance | |||||||
Deductibles and self-insured retentions per occurrence | $ 0.5 | ||||||
Derivative instruments and hedging activity | |||||||
Term of foreign currency exchange forward contracts | 24 months | ||||||
Business acquisitions and related business acquisition and transition costs | |||||||
Measurement period over which initial purchase price allocations are subject to revision | 1 year | ||||||
Carrying Value | |||||||
Derivative instruments and hedging activity | |||||||
Derivative Asset | $ 1.9 | 3.8 | |||||
Derivative Liability | $ 2.2 | $ 2.3 |
Business Acquisitions - Identifiable finite-lived intangible assets (Details) - USD ($) $ in Millions |
Feb. 01, 2016 |
Oct. 02, 2015 |
---|---|---|
ABEL Pumps LP and Abel GmbH & Co. KG | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | $ 36 | |
Fair Values | 58 | |
ABEL Pumps LP and Abel GmbH & Co. KG | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Values | 41 | |
ABEL Pumps LP and Abel GmbH & Co. KG | Technology, including patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Values | 9 | |
ABEL Pumps LP and Abel GmbH & Co. KG | Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Values | $ 3 | |
Red Valve Company, Inc. [Member] [Domain] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | $ 59 | |
Fair Values | 61 | |
Red Valve Company, Inc. [Member] [Domain] | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Values | 48 | |
Red Valve Company, Inc. [Member] [Domain] | Technology, including patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Values | 8 | |
Red Valve Company, Inc. [Member] [Domain] | Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Values | $ 1 |
Business Acquisitions - Other (Details) |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Feb. 01, 2016
USD ($)
|
Oct. 02, 2015
EUR (€)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Oct. 02, 2015
USD ($)
|
Dec. 19, 2014
USD ($)
|
|
Acquisitions | |||||||
Business acquisition, development, and integration | $ 3,500,000 | $ 1,100,000 | $ 3,700,000 | ||||
ABEL Pumps LP and Abel GmbH & Co. KG | |||||||
Acquisitions | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 58,000,000 | ||||||
Payment to acquire business | € | € 95,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Equipment | 14,000,000 | ||||||
Red Valve Company, Inc. [Member] [Domain] | |||||||
Acquisitions | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 61,000,000 | ||||||
Payment to acquire business | 130,400,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Equipment | 10,000,000 | ||||||
Line of Credit [Member] | |||||||
Acquisitions | |||||||
Maximum borrowing capacity available under the facility | 700.0 | 900.0 | $ 700.0 | $ 700,000,000.0 | |||
$180 term loan | |||||||
Acquisitions | |||||||
Debt issued | 180.0 | $ 180.0 | $ 180,000,000.0 | ||||
Trade Names [Member] | ABEL Pumps LP and Abel GmbH & Co. KG | |||||||
Acquisitions | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 5,000,000 | ||||||
Trade Names [Member] | Red Valve Company, Inc. [Member] [Domain] | |||||||
Acquisitions | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4,000,000 |
Financing Agreements (Details) |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 15, 2014
USD ($)
|
Jul. 09, 2010
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Mar. 24, 2016
USD ($)
|
Feb. 01, 2016
USD ($)
|
Dec. 19, 2014
USD ($)
|
|
Financing Agreements | |||||||
LeverageHolidayBusinessAcquisition | 75.0 | ||||||
Long-term Debt | |||||||
Total debt | $ 344,600,000 | $ 465,700,000 | |||||
Less: current portion | 0 | 18,800,000 | |||||
Total long-term debt | 344,600,000 | 446,900,000 | |||||
Maturities of long-term debt | |||||||
2016 | 0 | ||||||
2017 | 150,000,000 | ||||||
2018 | 0 | ||||||
2019 | 0 | ||||||
2020 | 95,700,000 | ||||||
Accordion option to increase commitments under the unsecured revolving credit facility | 450.0 | ||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 2.1 | ||||||
Debt Instrument, Covenant Terms, Maximum Ratio of Indebtedness to Earnings before Interest, Taxes, Depreciation, and Amortization | 3.5 | ||||||
Restricted Cash and Cash Equivalents | $ 500,000 | 800,000 | |||||
Debt Instrument, Covenant Terms, Minimum Ratio of Earnings before Interest, Taxes, Depreciation, and Amortization to Interest Expense | 3.0 | ||||||
Maximum | |||||||
Financing Agreements | |||||||
Debt Instrument, Covenant Holiday, Maximum Ratio of Indebtedness to Earnings before Interest, Taxes, Depreciation, and Amortization | 4.0 | ||||||
$700 revolving credit facility | |||||||
Financing Agreements | |||||||
Long-term Debt, Gross | $ 95,700,000 | 68,000,000 | |||||
Maturities of long-term debt | |||||||
Maximum borrowing capacity available under the facility | 900.0 | $ 700.0 | $ 700.0 | $ 700,000,000.0 | |||
Letters of credit outstanding | 7,300,000 | ||||||
Remaining borrowing capacity available under the credit facility | 769,200,000 | ||||||
Current borrowing capacity available under the facility | $ 797,000,000 | ||||||
Weighted average interest rates (as a percent) | 1.83% | 1.40% | |||||
Weighted average facility fee (as a percent) | 0.15% | 0.23% | |||||
$180 term loan | |||||||
Financing Agreements | |||||||
Long-term Debt, Gross | $ 0 | $ 148,500,000 | |||||
Maturities of long-term debt | |||||||
Debt issued | $ 180.0 | $ 180.0 | $ 180,000,000.0 | ||||
Weighted average interest rates (as a percent) | 2.60% | 2.27% | |||||
$150 senior unsecured notes | |||||||
Financing Agreements | |||||||
Long-term Debt, Gross | $ 149,700,000 | $ 149,500,000 | |||||
Long-term Debt | |||||||
Total debt | $ 149,300,000 | 148,900,000 | |||||
Total long-term debt | $ 148,400,000 | ||||||
Maturities of long-term debt | |||||||
Debt issued | 150,000,000 | ||||||
Deferred financing costs | $ 2,100,000 | ||||||
Term of debt instrument | 10 years | ||||||
Stated interest rate | 5.50% | 5.50% | |||||
Notes issued at a discount | $ 1,600,000 | ||||||
Effective annual interest rate (as a percent) | 5.65% | ||||||
Percentage of the principal amount at which the notes are redeemable due to a change of control | 101.00% | ||||||
Debt Issuance Costs, Net | $ 400,000 | 600,000 | |||||
$100 Series A Notes (2) | |||||||
Financing Agreements | |||||||
Long-term Debt, Gross | 100,000,000 | 100,000,000 | |||||
Long-term Debt | |||||||
Total debt | 99,600,000 | 99,700,000 | |||||
Maturities of long-term debt | |||||||
Debt issued | $ 100,000,000.0 | ||||||
Deferred financing costs | $ 400,000 | ||||||
Private Shelf Facility, Accordion Feature, Maximum | $ 200 | ||||||
Stated interest rate | 4.60% | ||||||
Redemption price, percentage | 100.00% | ||||||
Debt Issuance Costs, Net | 400,000 | 300,000 | |||||
Other | |||||||
Long-term Debt | |||||||
Total debt | 0 | $ 600,000 | |||||
Syndicated Credit Facility | |||||||
Maturities of long-term debt | |||||||
Deferred financing costs | 1.0 | ||||||
Other Financing Agreements | |||||||
Maturities of long-term debt | |||||||
Maximum borrowing capacity available under the facility | 248,400,000 | ||||||
Amount of credit facility utilized for providing bank guarantees | 196,500,000 | ||||||
Interest Rate Swap [Member] | Cash Flow Hedging | |||||||
Maturities of long-term debt | |||||||
Derivative, Notional Amount | 50.0 | ||||||
Letter of Credit [Member] | |||||||
Maturities of long-term debt | |||||||
Letters of credit outstanding | 150.0 | ||||||
Scenario, Previously Reported [Member] | |||||||
Maturities of long-term debt | |||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 1.0 | ||||||
Scenario, Previously Reported [Member] | Syndicated Credit Facility | |||||||
Maturities of long-term debt | |||||||
Deferred financing costs | $ 0.6 |
Retirement Benefits (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018
USD ($)
program
shares
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
|
Retirement and Postemployment Benefits | |||
Percentage of employee participation in the defined benefit retirement programs | 38.00% | ||
Number of defined benefit retirement programs in which a specified percentage of employees participate | program | 1 | ||
Number of defined benefit retirement programs | program | 4 | ||
Funded status: | |||
Plan assets less than benefit obligations | $ (102.0) | ||
Amounts recorded in the consolidated balance sheets: | |||
Accrued pension costs, long-term portion | $ 120.5 | 129.6 | |
Plan Assets | |||
Reporting entity's common stock owned by trust (in shares) | shares | 0 | ||
Domestic Plan [Member] | |||
Defined benefit plans | |||
Service cost | $ 2.7 | 3.6 | $ 3.9 |
Interest cost | 8.7 | 8.8 | 9.5 |
Expected return on plan assets | (14.0) | (13.7) | (9.7) |
Amortization of unrecognized prior service cost, net | (0.2) | (0.4) | (0.6) |
Amortization of actuarial loss | 3.2 | 3.6 | 3.8 |
Settlement expense | 0.0 | 0.1 | 0.0 |
Net pension costs | (0.8) | (2.8) | (8.1) |
Change in benefit obligation: | |||
Projected benefit obligation at beginning of year | 281.8 | 294.2 | |
Service cost | 2.7 | 3.6 | 3.9 |
Interest cost | 8.7 | 8.8 | 9.5 |
Actuarial loss (gain) | (14.7) | (6.9) | |
Benefits paid | (11.5) | (11.0) | |
Gain due to settlement | 0.0 | (6.9) | |
Employee contributions | 0.0 | 0.0 | |
Effect of exchange rates on projected benefit obligation | 0.0 | 0.0 | |
Projected benefit obligation at end of year | 267.0 | 281.8 | 294.2 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 262.4 | 173.7 | |
Actual return on plan assets | 0.6 | 17.9 | |
Employee and employer contributions | 1.8 | 81.8 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 11.5 | 11.0 | |
Effect of exchange rates on plan assets | 0.0 | 0.0 | |
Fair value of plan assets at end of year | 253.3 | 262.4 | $ 173.7 |
Funded status: | |||
Plan assets less than benefit obligations | (13.7) | (19.4) | |
Amounts recorded in the consolidated balance sheets: | |||
Assets for Plan Benefits, Defined Benefit Plan | 12.0 | 8.2 | |
Accrued pension costs, current portion | (2.0) | (1.8) | |
Accrued pension costs, long-term portion | 23.7 | 25.8 | |
Plan assets less than benefit obligations | (13.7) | (19.4) | |
Accumulated Benefit Obligation | |||
Projected benefit obligation | 25.7 | 27.7 | |
Accumulated benefit obligation | 25.7 | 27.6 | |
Fair value of plan assets | $ 0.0 | $ 0.0 | |
Actuarial Assumptions | |||
Discount rate for obligation, end of year (as a percent) | 4.20% | 3.70% | 3.60% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.40% | 3.50% | 4.40% |
Expected rate of return on plan assets (as a percent) | 5.60% | 5.60% | 5.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Foreign Plan [Member] | |||
Defined benefit plans | |||
Service cost | $ 1.4 | $ 1.3 | $ 1.8 |
Interest cost | 1.1 | 0.7 | 1.8 |
Expected return on plan assets | (0.6) | (0.5) | (1.0) |
Amortization of unrecognized prior service cost, net | 0.1 | 0.1 | 0.1 |
Amortization of actuarial loss | 0.7 | 1.1 | 0.3 |
Settlement expense | 0.0 | 0.6 | 0.5 |
Net pension costs | 2.7 | 3.3 | 3.5 |
Change in benefit obligation: | |||
Projected benefit obligation at beginning of year | 133.4 | 140.9 | |
Service cost | 1.4 | 1.3 | 1.8 |
Interest cost | 1.1 | 0.7 | 1.8 |
Actuarial loss (gain) | 0.4 | (9.5) | |
Benefits paid | (5.2) | (5.7) | |
Gain due to settlement | (3.4) | (1.2) | |
Employee contributions | 0.9 | 0.8 | |
Effect of exchange rates on projected benefit obligation | (2.3) | 6.1 | |
Projected benefit obligation at end of year | 126.3 | 133.4 | 140.9 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 31.4 | 29.7 | |
Actual return on plan assets | (0.1) | 0.3 | |
Employee and employer contributions | 9.0 | 8.5 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 5.2 | 5.7 | |
Effect of exchange rates on plan assets | (0.2) | 0.2 | |
Fair value of plan assets at end of year | 31.9 | 31.4 | $ 29.7 |
Funded status: | |||
Plan assets less than benefit obligations | (94.4) | ||
Amounts recorded in the consolidated balance sheets: | |||
Assets for Plan Benefits, Defined Benefit Plan | 2.2 | 0.4 | |
Accrued pension costs, current portion | (6.6) | (6.8) | |
Accrued pension costs, long-term portion | 90.0 | 95.6 | |
Plan assets less than benefit obligations | (94.4) | (102.0) | |
Accumulated Benefit Obligation | |||
Projected benefit obligation | 96.6 | 102.0 | |
Accumulated benefit obligation | 96.6 | 102.0 | |
Fair value of plan assets | $ 0.0 | $ 0.0 | |
Actuarial Assumptions | |||
Discount rate for obligation, end of year (as a percent) | 1.20% | 1.10% | 1.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.50% | 0.50% | 1.70% |
Expected rate of return on plan assets (as a percent) | 2.00% | 2.00% | 2.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.00% | 2.00% | 2.00% |
Other Postretirement Benefits Plan [Member] | |||
Retirement and Postemployment Benefits | |||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | $ 0.5 | ||
Defined benefit plans | |||
Service cost | 0.3 | $ 0.4 | |
Interest cost | 0.2 | 0.2 | |
Change in benefit obligation: | |||
Projected benefit obligation at beginning of year | 9.0 | 10.3 | |
Service cost | 0.3 | 0.4 | |
Interest cost | 0.2 | 0.2 | |
Actuarial loss (gain) | 0.9 | 0.9 | |
Benefits paid | (1.0) | (1.0) | |
Projected benefit obligation at end of year | 7.6 | 9.0 | $ 10.3 |
Amounts recorded in the consolidated balance sheets: | |||
Accrued pension costs, current portion | (0.8) | (0.8) | |
Accrued pension costs, long-term portion | 6.8 | 8.2 | |
Accumulated other comprehensive loss | |||
Net actuarial gains (losses) | 4.0 | 3.4 | |
Prior service cost | 0.7 | 0.8 | |
Aggregate tax effect | 1.7 | $ 1.6 | |
Amount that will be amortized from accumulated other comprehensive loss into net benefit costs | $ 0.5 | ||
Actuarial Assumptions | |||
Discount rate for obligation, end of year (as a percent) | 4.00% | 3.30% | 3.10% |
Pension Plans Defined Benefit | |||
Accumulated other comprehensive loss | |||
Net actuarial gains (losses) | $ (67.2) | $ 71.9 | |
Prior service cost | 0.8 | (1.0) | |
Aggregate tax effect | (24.0) | (25.0) | |
Amount that will be amortized from accumulated other comprehensive loss into net benefit costs | 2.0 | ||
Accumulated Benefit Obligation | |||
Accumulated benefit obligation | $ 387.0 | $ 407.7 |
Retirement Benefits - Pension Plans and Defined Contribution Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Cash Flows | |||
Cash contribution to defined benefit retirement plans | $ 10.9 | $ 90.6 | $ 15.5 |
Defined Contribution Plans | |||
Employer's contribution to defined contribution plans (as a percent) | 4.00% | ||
Expenses related to defined contribution plans | $ 11.3 | 11.4 | 9.9 |
Minimum | |||
Defined Contribution Plans | |||
Contribution vesting period | 0 years | ||
Maximum | |||
Defined Contribution Plans | |||
Employer's matching contribution to defined contribution plans (as a percent) | 6.00% | ||
Contribution vesting period | 5 years | ||
Other Postretirement Benefits Plan [Member] | |||
Fair Value Measurements | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ (0.9) | (0.9) | |
Other Postretirement Benefits Cost (Reversal of Cost) | 0.1 | 0.3 | 0.3 |
Cash Flows | |||
Estimated cash contribution to defined benefit retirement plans | 0.8 | ||
Pension Plans Defined Benefit | |||
Cash Flows | |||
Cash contribution to defined benefit retirement plans | 10.0 | $ 89.6 | $ 14.6 |
Pension Plans Defined Benefit | Minimum | |||
Cash Flows | |||
Estimated cash contribution to defined benefit retirement plans | $ 10.0 | ||
Domestic Plan [Member] | |||
Fair Value Measurements | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.40% | 3.50% | 4.40% |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 14.7 | $ 6.9 | |
Employee and employer contributions | $ 1.8 | $ 81.8 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Fair value of plan assets | $ 253.3 | $ 262.4 | $ 173.7 |
Estimated Future Benefit Payments | |||
2017 | 14.0 | ||
2018 | 14.3 | ||
2019 | 15.0 | ||
2020 | 15.5 | ||
2021 | 16.0 | ||
2023 - 2027 | $ 83.8 | ||
Foreign Plan [Member] | |||
Fair Value Measurements | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.50% | 0.50% | 1.70% |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ (0.4) | $ 9.5 | |
Employee and employer contributions | $ 9.0 | $ 8.5 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.00% | 2.00% | 2.00% |
Fair value of plan assets | $ 31.9 | $ 31.4 | $ 29.7 |
Estimated Future Benefit Payments | |||
2017 | 7.7 | ||
2018 | 7.9 | ||
2019 | 7.2 | ||
2020 | 7.3 | ||
2021 | 7.3 | ||
2023 - 2027 | 33.6 | ||
Foreign Plan [Member] | Cash equivalents | Level 1 | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.4 | 5.2 | |
Foreign Plan [Member] | Cash equivalents | Level 2 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Cash equivalents | Level 3 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurements | |||
Fair value of plan assets | 31.9 | 31.4 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Level 1 | |||
Fair Value Measurements | |||
Fair value of plan assets | 27.4 | 27.5 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Level 2 | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.1 | 1.9 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Level 3 | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.4 | 2.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Cash equivalents | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.4 | 5.2 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Equity securities | |||
Fair Value Measurements | |||
Fair value of plan assets | 7.3 | 6.8 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Equity securities | Level 1 | |||
Fair Value Measurements | |||
Fair value of plan assets | 7.3 | 6.8 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Equity securities | Level 2 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Equity securities | Level 3 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Government index funds | |||
Fair Value Measurements | |||
Fair value of plan assets | 5.6 | 5.7 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Government index funds | Level 1 | |||
Fair Value Measurements | |||
Fair value of plan assets | 5.6 | 5.7 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Government index funds | Level 2 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Government index funds | Level 3 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Corporate bond funds | |||
Fair Value Measurements | |||
Fair value of plan assets | 12.1 | 9.8 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Corporate bond funds | Level 1 | |||
Fair Value Measurements | |||
Fair value of plan assets | 12.1 | 9.8 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Corporate bond funds | Level 2 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Corporate bond funds | Level 3 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Real estate and real estate funds | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.4 | 2.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Real estate and real estate funds | Level 1 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Real estate and real estate funds | Level 2 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Real estate and real estate funds | Level 3 | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.4 | 2.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Other | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.1 | 1.9 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Other | Level 1 | |||
Fair Value Measurements | |||
Fair value of plan assets | 0.0 | 0.0 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Other | Level 2 | |||
Fair Value Measurements | |||
Fair value of plan assets | 2.1 | 1.9 | |
Foreign Plan [Member] | Estimate of Fair Value Measurement [Member] | Other | Level 3 | |||
Fair Value Measurements | |||
Fair value of plan assets | $ 0.0 | $ 0.0 |
Retirement Benefits - Postretirement Healthcare Plan (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
One-percentage-point increase/decrease in the assumed healthcare cost trend rates | |||
Accrued pension costs, long-term portion | $ 120.5 | $ 129.6 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (102.0) | ||
Other Postretirement Benefits Plan [Member] | |||
Retirement and Postemployment Benefits | |||
Other Postretirement Benefits Cost (Reversal of Cost) | $ 0.1 | $ 0.3 | $ 0.3 |
Weighted average assumptions used in revaluing obligation under the postretirement healthcare plan | |||
Discount rate for obligation (as a percent) | 4.00% | 3.30% | 3.10% |
Healthcare cost rate assumed for next year (as a percent) | 7.10% | 7.60% | 7.30% |
Ultimate trend rate (as a percent) | 4.50% | ||
One-percentage-point increase/decrease in the assumed healthcare cost trend rates | |||
Impact of a one percentage point increase in healthcare cost trends on service and interest costs | $ 0.1 | ||
Impact of a one percentage point decrease in healthcare cost trends on service and interest costs | 0.1 | ||
Impact of a one percentage point increase in healthcare cost trends on the benefit obligation | 0.5 | ||
Impact of a one percentage point decrease in healthcare cost trends on the benefit obligation | 0.5 | ||
Employer's expected annual future contribution to the postretirement healthcare plan | 0.8 | ||
Defined Benefit Plan, Benefit Obligation | 7.6 | $ 9.0 | $ 10.3 |
Interest cost | 0.2 | 0.2 | |
Service cost | 0.3 | 0.4 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (0.9) | (0.9) | |
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | 1.0 | 1.0 | |
Accrued pension costs, current portion | 0.8 | 0.8 | |
Accrued pension costs, long-term portion | 6.8 | 8.2 | |
Net amount recognized | 7.6 | 9.0 | |
Domestic Plan [Member] | |||
Retirement and Postemployment Benefits | |||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 25.7 | $ 27.7 | |
Weighted average assumptions used in revaluing obligation under the postretirement healthcare plan | |||
Discount rate for obligation (as a percent) | 4.20% | 3.70% | 3.60% |
One-percentage-point increase/decrease in the assumed healthcare cost trend rates | |||
Defined Benefit Plan, Benefit Obligation | $ 267.0 | $ 281.8 | $ 294.2 |
Interest cost | 8.7 | 8.8 | 9.5 |
Service cost | 2.7 | 3.6 | 3.9 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 14.7 | 6.9 | |
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | 11.5 | 11.0 | |
Accrued pension costs, current portion | 2.0 | 1.8 | |
Accrued pension costs, long-term portion | 23.7 | 25.8 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 14.0 | 13.7 | 9.7 |
Amortization of unrecognized prior service cost, net | (0.2) | (0.4) | (0.6) |
Defined Benefit Plan, Amortization of Gain (Loss) | (3.2) | (3.6) | (3.8) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0.0 | (0.1) | 0.0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (0.8) | (2.8) | (8.1) |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0.0 | 6.9 | |
Employee contributions | 0.0 | 0.0 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0.0 | 0.0 | |
Defined Benefit Plan, Fair Value of Plan Assets | 253.3 | 262.4 | $ 173.7 |
Actual return on plan assets | 0.6 | 17.9 | |
Employee and employer contributions | 1.8 | 81.8 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 11.5 | 11.0 | |
Effect of exchange rates on plan assets | 0.0 | 0.0 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (13.7) | (19.4) | |
Assets for Plan Benefits, Defined Benefit Plan | 12.0 | 8.2 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (13.7) | (19.4) | |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 25.7 | 27.6 | |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | 0.0 | 0.0 | |
Foreign Plan [Member] | |||
Retirement and Postemployment Benefits | |||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 96.6 | $ 102.0 | |
Weighted average assumptions used in revaluing obligation under the postretirement healthcare plan | |||
Discount rate for obligation (as a percent) | 1.20% | 1.10% | 1.00% |
One-percentage-point increase/decrease in the assumed healthcare cost trend rates | |||
Defined Benefit Plan, Benefit Obligation | $ 126.3 | $ 133.4 | $ 140.9 |
Interest cost | 1.1 | 0.7 | 1.8 |
Service cost | 1.4 | 1.3 | 1.8 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (0.4) | 9.5 | |
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | 5.2 | 5.7 | |
Accrued pension costs, current portion | 6.6 | 6.8 | |
Accrued pension costs, long-term portion | 90.0 | 95.6 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0.6 | 0.5 | 1.0 |
Amortization of unrecognized prior service cost, net | 0.1 | 0.1 | 0.1 |
Defined Benefit Plan, Amortization of Gain (Loss) | (0.7) | (1.1) | (0.3) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0.0 | (0.6) | (0.5) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 2.7 | 3.3 | 3.5 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 3.4 | 1.2 | |
Employee contributions | 0.9 | 0.8 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 2.3 | (6.1) | |
Defined Benefit Plan, Fair Value of Plan Assets | 31.9 | 31.4 | $ 29.7 |
Actual return on plan assets | (0.1) | 0.3 | |
Employee and employer contributions | 9.0 | 8.5 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 5.2 | 5.7 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (3.0) | (1.6) | |
Effect of exchange rates on plan assets | (0.2) | 0.2 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (94.4) | ||
Assets for Plan Benefits, Defined Benefit Plan | 2.2 | 0.4 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (94.4) | (102.0) | |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 96.6 | 102.0 | |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | $ 0.0 | $ 0.0 |
Other Long-Term Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Transition Tax liability | $ 24.6 | $ 0.0 |
Deferred Compensation Liability, Classified, Noncurrent | 4.3 | 4.3 |
Self-insurance loss reserves | 11.2 | 14.3 |
Other | 13.1 | 14.9 |
Other long-term liabilities including current and long-term portion | 53.2 | 33.5 |
Less current portion | (5.9) | (6.8) |
Total long-term portion | $ 47.3 | $ 26.7 |
Income Taxes (Details) - USD ($) |
12 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 12,100,000 | $ 9,900,000 | |||
FederalCorporateTaxRate | 21.00% | 35.00% | |||
BlendedCorporateTaxRate | 24.50% | ||||
Components of earnings before income taxes and the consolidated income tax provision: | |||||
Domestic | $ 33,700,000 | 108,200,000 | $ 99,300,000 | ||
Foreign | 112,800,000 | 80,100,000 | 64,800,000 | ||
Income (Loss) from Subsidiaries, before Tax | 146,500,000 | 188,300,000 | 164,100,000 | ||
Current provision: | |||||
Federal | 38,200,000 | 500,000 | 28,900,000 | ||
State | 6,700,000 | (400,000) | 5,100,000 | ||
Foreign | 16,700,000 | 22,700,000 | 18,000,000 | ||
Total current provision | 61,600,000 | 22,800,000 | 52,000,000 | ||
Deferred provision (benefit): | |||||
Federal | (7,500,000) | 32,000,000 | 3,200,000 | ||
State | 500,000 | 5,000,000 | (700,000) | ||
Foreign | 10,700,000 | 100,000 | (7,200,000) | ||
Total deferred provision (benefit) | 3,700,000 | 37,100,000 | (4,700,000) | ||
Income tax expense | $ 65,300,000 | $ 59,900,000 | $ 47,300,000 | ||
Reconciliation of the effective income tax rate with the U.S. federal statutory income tax rate | |||||
Federal statutory rates (as a percent) | 24.50% | 35.00% | 35.00% | ||
Adjustments resulting from the tax effect of: | |||||
State income taxes, net of federal benefit | 2.40% | 1.60% | 2.00% | ||
Foreign income tax rate differential (as a percent) | (0.60%) | (5.80%) | (6.70%) | ||
Domestic manufacturer's deduction (as a percent) | (1.20%) | (0.30%) | (1.90%) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | (1.60%) | (1.10%) | (1.50%) | ||
Effective Income Tax Rate Reconciliation, Deduction, Percent | (1.70%) | 2.70% | (0.00%) | ||
Valuation allowance (as a percent) | (0.70%) | (1.30%) | 1.70% | ||
Effective Income Tax Rate Reconciliation, Tax Contingency, Percent | 0.00% | 0.00% | 0.00% | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Percent | 10.00% | 0.00% | 0.00% | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 20.00% | 0.00% | 0.00% | ||
effective income tax rate, deferred tax impact of rate change | (9.40%) | 0.00% | 0.00% | ||
Other, net (as a percent) | 1.80% | 1.00% | 0.20% | ||
Effective income tax rate (as a percent) | 44.60% | 31.80% | 28.80% | ||
Deferred tax assets: | |||||
Employee benefit accruals | $ 29,000,000 | $ 46,000,000 | |||
Loss and tax credit carryforwards | 37,300,000 | 43,700,000 | |||
Rebates and other discounts | 4,400,000 | 5,800,000 | |||
Self-insurance reserves | 2,500,000 | 4,600,000 | |||
Inventory, net | 2,000,000 | 3,100,000 | |||
Other, net | 8,500,000 | 12,600,000 | |||
Total deferred tax assets before valuation allowance | 83,700,000 | 115,800,000 | |||
Less valuation allowance | (1,800,000) | (3,100,000) | |||
Total deferred tax assets, net | 81,900,000 | 112,700,000 | |||
Deferred tax liabilities: | |||||
Depreciation | (8,300,000) | (11,600,000) | |||
Amortization | 105,300,000 | 134,900,000 | |||
Long-term contracts and customer prepayments | (38,900,000) | (28,900,000) | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 500,000 | 4,200,000 | |||
Other, net | (1,800,000) | (5,100,000) | |||
Total deferred tax liabilities | (154,800,000) | (184,700,000) | |||
Deferred tax liabilities, net | (72,900,000) | (72,000,000) | |||
Amounts recorded in the balance sheets: | |||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 3,500,000 | 3,700,000 | |||
Deferred tax liabilities, non-current | (76,400,000) | (75,700,000) | |||
Deferred tax liabilities, net | (72,900,000) | (72,000,000) | |||
Deferred income tax assets related to U.S. federal and state tax credit carryforwards | 2,300,000 | ||||
Deferred income tax assets related to foreign net operating loss carryforwards | 35,000,000 | ||||
Current income tax payable | 19,500,000 | 18,300,000 | |||
Deferred Tax Liability, Unremitted Earnings of Foreign Subsidiaries | 0.5 | 4,200,000 | |||
Total permanently reinvested earnings | $ 321,700,000 | $ 241,200,000 |
Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Activity within the reserve for unrecognized tax benefits | |||
Balance at the beginning of the period | $ 9.9 | $ 7.7 | $ 7.8 |
Additions for tax positions related to the current year | 0.3 | 0.7 | 0.2 |
Additions for tax positions of prior years | 2.8 | 3.4 | 1.7 |
Reductions for tax positions of prior years | (0.6) | (1.5) | (2.0) |
Settlements | (0.3) | (0.4) | 0.0 |
Balance at the end of the period | 12.1 | 9.9 | $ 7.7 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 12.1 | 9.9 | |
Additional amounts recognized (released) for interest and penalties | 0.9 | 0.7 | |
Other amounts accrued for interest and penalties | 2.0 | $ 1.3 | |
Amount by which the unrecognized tax benefits could increase or decrease over the next 12 months | $ 3.0 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||
Income per common share | ||||||||||||||||
Net income | $ 44.5 | $ 35.9 | $ (21.9) | $ 18.1 | $ 38.2 | $ 32.9 | $ 33.4 | $ 21.7 | $ 76.6 | [1] | $ 126.2 | [1] | $ 112.8 | [1] | ||
Weighted-average shares outstanding-basic (in shares) | 63,100,000 | 63,600,000 | 63,300,000 | |||||||||||||
Effect of dilutive stock options and unvested time-based restricted stock (in shares) | 700,000 | 400,000 | 500,000 | |||||||||||||
Weighted average shares outstanding-diluted (in shares) | 63,800,000 | 64,000,000 | 63,800,000 | |||||||||||||
Earnings per share-basic (in dollars per share) | $ 0.71 | $ 0.57 | $ (0.34) | $ 0.28 | $ 0.60 | $ 0.52 | $ 0.52 | $ 0.34 | $ 1.21 | [1] | $ 1.99 | [1] | $ 1.78 | [1] | ||
Earnings per share-diluted (in dollars per share) | $ 0.70 | $ 0.56 | $ (0.34) | $ 0.28 | $ 0.60 | $ 0.52 | $ 0.52 | $ 0.34 | $ 1.20 | [1] | $ 1.97 | [1] | $ 1.77 | [1] | ||
Performance Shares | ||||||||||||||||
Income per common share | ||||||||||||||||
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share | 400,000 | 600,000 | 800,000 | |||||||||||||
Stock Option Awards and Time Based Stock Awards | ||||||||||||||||
Income per common share | ||||||||||||||||
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share | 300,000 | 400,000 | 800,000 | |||||||||||||
|
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Compensation Related Costs [Abstract] | |||
Number of shares initially registered and authorized for issuance | 12,685,436 | ||
Total number of shares outstanding (in shares) | 2,844,887 | ||
Number of shares issued (in shares) | 6,334,429 | ||
Number of shares available for future issuance (in shares) | 3,506,120 | ||
Stock-based compensation cost | $ 12.1 | $ 10.5 | $ 8.5 |
Less impact of income tax | 2.9 | 3.8 | 3.1 |
Stock-based compensation cost, net of tax | 9.2 | $ 6.7 | $ 5.4 |
Current tax benefit realized from the exercise of stock options and payment of restricted stock units | 5.4 | ||
Time Based Stock Awards | |||
Weighted average exercise price | |||
Unrecognized stock-based compensation | $ 1.5 | ||
Period for recognition of unrecognized stock-based compensation | 2 years 3 days | ||
Number of shares | |||
Number of shares outstanding under time-based stock awards and performance-based stock awards at the beginning of the period (in shares) | 93,232 | ||
Granted (in shares) | 34,166 | ||
Vested (in shares) | (28,810) | ||
Forfeited (in shares) | (6,010) | ||
Number of shares outstanding under time-based stock awards and performance-based stock awards at the end of the period (in shares) | 92,578 | 93,232 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested time-based stock awards at the beginning of the period (in dollars per share) | $ 33.05 | ||
Granted (in dollars per share) | 46.77 | $ 35.41 | $ 30.59 |
Vested (in dollars per share) | 32.27 | ||
Forfeited (in dollars per share) | 35.61 | ||
Non-vested time-based stock awards at the end of the period (in dollars per share) | $ 38.19 | $ 33.05 | |
Aggregate fair value | $ 4.8 | ||
Time Based Stock Awards and Performance Based Stock Awards | |||
Time-based stock awards and performance-based stock awards | |||
Total vest date fair value of vested time-based stock awards and performance-based stock awards shares held by employees and directors | $ 15.2 | $ 10.9 | $ 7.4 |
Weighted-Average Grant Date Fair Value | |||
Number of shares under the time-based and performance-based stock awards due to dividend reinvestment (in shares) | 9,135 | ||
Aggregate fair value of shares under the time-based and performance-based stock awards plans due to dividend reinvestment | $ 0.5 | ||
Vested Deferred Stock | |||
Vested deferred stock (in shares) | 403,918 | ||
Aggregate fair value of vested deferred stock | $ 21.1 | ||
Employee Stock Option | |||
Share-based compensation | |||
Vesting period | 3 years | ||
Weighted average fair value of options granted (in dollars per share) | $ 11.28 | $ 8.37 | $ 7.80 |
Assumptions used in the determination of fair value of options | |||
Risk-free interest rate (as a percent) | 2.40% | 1.90% | |
Weighted-average dividend yield (as a percent) | 1.80% | 2.20% | 2.60% |
Weighted-average volatility factor (as a percent) | 28.00% | 28.80% | 31.00% |
Exercise factor (as a percent) | n/a | n/a | 0.336 |
Post-vesting termination rate (as a percent) | 5.00% | ||
Expected life | 5 years 7 months 23 days | 5 years 9 months 5 days | 4 years 6 months 1 day |
Number of shares | |||
Outstanding at the beginning of the period (in shares) | 1,833,931 | ||
Granted (in shares) | 479,991 | ||
Exercised (in shares) | (388,379) | ||
Forfeited (in shares) | (56,532) | ||
Expired (in shares) | (754) | ||
Outstanding at the end of the period (in shares) | 1,868,257 | 1,833,931 | |
Exercisable at the end of the period (in shares) | 1,050,458 | ||
Weighted average exercise price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 28.93 | ||
Granted (in dollars per share) | 45.94 | ||
Exercised (in dollars per share) | 24.88 | ||
Forfeited (in dollars per share) | 33.56 | ||
Expired (in dollars per share) | 38.96 | ||
Outstanding at the end of the period (in dollars per share) | 33.84 | $ 28.93 | |
Exercisable at the end of the period (in dollars per share) | $ 28.31 | ||
Unrecognized stock-based compensation | $ 4.2 | ||
Period for recognition of unrecognized stock-based compensation | 2 years 26 days | ||
Average remaining life of outstanding stock options | 6 years 10 months 3 days | ||
Aggregate intrinsic value of outstanding options | $ 34.5 | ||
Average remaining life of the exercisable options | 5 years 4 months 24 days | ||
Aggregate intrinsic value of exercisable options | $ 25.2 | ||
Total intrinsic value of options exercised | 7.5 | $ 11.2 | $ 7.5 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | $ 11.1 | $ 11.2 | $ 9.6 |
Employee Stock Option | Minimum | |||
Assumptions used in the determination of fair value of options | |||
Risk-free interest rate (as a percent) | 0.50% | ||
Employee Stock Option | Maximum | |||
Share-based compensation | |||
Award expiration term | 10 years | ||
Assumptions used in the determination of fair value of options | |||
Risk-free interest rate (as a percent) | 2.20% | ||
Performance Shares | |||
Weighted average exercise price | |||
Unrecognized stock-based compensation | $ 7.1 | ||
Period for recognition of unrecognized stock-based compensation | 1 year 8 months 7 days | ||
Time-based stock awards and performance-based stock awards | |||
Performance measurement period used to determined shares granted included in performance-based stock awards | 3 years | ||
Number of shares | |||
Number of shares outstanding under time-based stock awards and performance-based stock awards at the beginning of the period (in shares) | 608,633 | ||
Granted (in shares) | 237,617 | ||
Vested (in shares) | (243,310) | ||
Forfeited (in shares) | (122,805) | ||
Number of shares outstanding under time-based stock awards and performance-based stock awards at the end of the period (in shares) | 480,135 | 608,633 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested time-based stock awards at the beginning of the period (in dollars per share) | $ 35.80 | ||
Granted (in dollars per share) | 53.35 | $ 39.72 | $ 33.14 |
Vested (in dollars per share) | 33.50 | ||
Forfeited (in dollars per share) | 34.74 | ||
Non-vested time-based stock awards at the end of the period (in dollars per share) | $ 45.93 | $ 35.80 | |
Aggregate fair value | $ 24.2 |
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Changes in accumulated other comprehensive income (loss) by component | |||
Balance at the beginning of the period | $ (81.2) | ||
Other comprehensive income before reclassifications | |||
Before tax amount | (4.3) | $ 56.2 | $ (32.3) |
Tax benefit (expense) | (1.1) | (10.5) | 6.6 |
After tax amount | (5.4) | 45.7 | (25.7) |
Amounts reclassified from accumulated other comprehensive income | 1.7 | 3.1 | 3.5 |
Total other comprehensive income (loss), net of tax | (3.7) | 48.8 | (22.2) |
Balance at the end of the period | (84.2) | (81.2) | |
Total Attributable to Hillenbrand, Inc. | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Balance at the beginning of the period | (81.2) | (129.8) | (107.9) |
Other comprehensive income before reclassifications | |||
Before tax amount | (3.6) | 56.0 | (32.0) |
Tax benefit (expense) | (1.1) | (10.5) | 6.6 |
After tax amount | (4.7) | 45.5 | (25.4) |
Amounts reclassified from accumulated other comprehensive income | 1.7 | 3.1 | 3.5 |
Total other comprehensive income (loss), net of tax | (3.0) | 48.6 | (21.9) |
Balance at the end of the period | (84.2) | (81.2) | (129.8) |
Pension and Postretirement | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Balance at the beginning of the period | (45.3) | (67.5) | (54.4) |
Other comprehensive income before reclassifications | |||
Before tax amount | 1.8 | 28.1 | (22.7) |
Tax benefit (expense) | (0.5) | (9.3) | 6.5 |
After tax amount | 1.3 | 18.8 | (16.2) |
Amounts reclassified from accumulated other comprehensive income | 3.0 | 3.4 | 3.1 |
Total other comprehensive income (loss), net of tax | 4.3 | 22.2 | (13.1) |
Balance at the end of the period | (41.0) | (45.3) | (67.5) |
Currency Translation | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Balance at the beginning of the period | (36.9) | (61.6) | (52.1) |
Other comprehensive income before reclassifications | |||
Before tax amount | (7.2) | 24.7 | (9.5) |
Tax benefit (expense) | 0.0 | 0.0 | 0.0 |
After tax amount | (7.2) | 24.7 | (9.5) |
Amounts reclassified from accumulated other comprehensive income | 0.0 | 0.0 | 0.0 |
Total other comprehensive income (loss), net of tax | (7.2) | 24.7 | (9.5) |
Balance at the end of the period | (44.1) | (36.9) | (61.6) |
Net Unrealized Gain (Loss) on Derivative Instruments | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Balance at the beginning of the period | 1.0 | (0.7) | (1.4) |
Other comprehensive income before reclassifications | |||
Before tax amount | 1.8 | 3.2 | 0.2 |
Tax benefit (expense) | (0.6) | (1.2) | 0.1 |
After tax amount | 1.2 | 2.0 | 0.3 |
Amounts reclassified from accumulated other comprehensive income | (1.3) | (0.3) | 0.4 |
Total other comprehensive income (loss), net of tax | (0.1) | 1.7 | 0.7 |
Balance at the end of the period | 0.9 | 1.0 | (0.7) |
Noncontrolling Interests | |||
Other comprehensive income before reclassifications | |||
Before tax amount | (0.7) | 0.2 | (0.3) |
Tax benefit (expense) | 0.0 | 0.0 | 0.0 |
After tax amount | (0.7) | 0.2 | (0.3) |
Amounts reclassified from accumulated other comprehensive income | 0.0 | 0.0 | 0.0 |
Total other comprehensive income (loss), net of tax | $ (0.7) | $ 0.2 | $ (0.3) |
Other Comprehensive Income (Loss) - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Affected Line in the Consolidated Statement of Operations: | |||||||||||
Net revenue | $ 474.7 | $ 446.0 | $ 452.2 | $ 397.2 | $ 442.9 | $ 395.9 | $ 395.3 | $ 356.1 | $ 1,770.1 | $ 1,590.2 | $ 1,538.4 |
Cost of goods sold | (1,127.2) | (998.9) | (967.8) | ||||||||
Operating expenses | (378.9) | (344.4) | (346.5) | ||||||||
Other (expense) income, net | (0.6) | (4.2) | (1.7) | ||||||||
Tax expense | (65.3) | (59.9) | (47.3) | ||||||||
Total reclassifications for the period, net of tax | 1.7 | 3.1 | 3.5 | ||||||||
Pension and Postretirement | |||||||||||
Affected Line in the Consolidated Statement of Operations: | |||||||||||
Total reclassifications for the period, net of tax | 3.0 | 3.4 | 3.1 | ||||||||
Net Unrealized Gain (Loss) on Derivative Instruments | |||||||||||
Affected Line in the Consolidated Statement of Operations: | |||||||||||
Total reclassifications for the period, net of tax | (1.3) | (0.3) | 0.4 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Affected Line in the Consolidated Statement of Operations: | |||||||||||
Net revenue | 0.5 | (0.1) | 0.3 | ||||||||
Cost of goods sold | 2.5 | 3.0 | 3.3 | ||||||||
Operating expenses | 1.2 | 1.5 | 1.5 | ||||||||
Other (expense) income, net | (2.3) | 0.1 | 0.4 | ||||||||
Income before income taxes | 1.9 | 4.5 | 5.5 | ||||||||
Tax expense | (0.2) | (1.4) | (2.0) | ||||||||
Total reclassifications for the period, net of tax | 1.7 | 3.1 | 3.5 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Loss Recognized | |||||||||||
Affected Line in the Consolidated Statement of Operations: | |||||||||||
Net revenue | 0.0 | 0.0 | 0.0 | ||||||||
Cost of goods sold | 2.4 | 3.2 | 3.0 | ||||||||
Operating expenses | 1.2 | 1.4 | 1.3 | ||||||||
Other (expense) income, net | 0.0 | 0.0 | 0.0 | ||||||||
Income before income taxes | 3.6 | 4.6 | 4.3 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Prior Service Costs Recognized | |||||||||||
Affected Line in the Consolidated Statement of Operations: | |||||||||||
Net revenue | 0.0 | 0.0 | 0.0 | ||||||||
Cost of goods sold | 0.2 | 0.3 | 0.3 | ||||||||
Operating expenses | 0.0 | 0.1 | 0.2 | ||||||||
Other (expense) income, net | 0.0 | 0.0 | 0.0 | ||||||||
Income before income taxes | 0.2 | 0.4 | 0.5 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gain (Loss) on Derivative Instruments | |||||||||||
Affected Line in the Consolidated Statement of Operations: | |||||||||||
Net revenue | 0.5 | (0.1) | 0.3 | ||||||||
Cost of goods sold | (0.1) | (0.5) | 0.0 | ||||||||
Operating expenses | 0.0 | 0.0 | 0.0 | ||||||||
Other (expense) income, net | (2.3) | 0.1 | 0.4 | ||||||||
Income before income taxes | $ (1.9) | $ (0.5) | $ 0.7 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expense charged to income | $ 23.2 | $ 23.6 | $ 27.8 | |
Aggregate future minimum lease payments for operating leases, excluding renewable periods | ||||
2017 | 20.4 | |||
2018 | 15.8 | |||
2019 | 14.2 | |||
2020 | 11.7 | |||
2021 | 8.5 | |||
Thereafter | 33.7 | |||
Future minimum operating lease payments, excluding renewable periods | 104.3 | |||
Commitments and Contingencies | ||||
Loss Contingency, Damages Sought | 38.5 | |||
General Claims and Lawsuit | Maximum | ||||
Commitments and Contingencies | ||||
Deductibles and self-insured retentions per occurrence or per claim | $ 0.5 |
Other (Expense) Income, Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Other Nonoperating Income (Expense) [Abstract] | |||
Foreign currency exchange gain (loss), net | $ (1.2) | $ (1.4) | $ 0.3 |
Other, net | 0.6 | (2.8) | (2.0) |
Other (expense) income, net | $ (0.6) | $ (4.2) | $ (1.7) |
Fair Value Measurements (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 15, 2014 |
Jul. 09, 2010 |
|
$150 senior unsecured notes | ||||
Liabilities: | ||||
Long-term Debt, Gross | $ 149.7 | $ 149.5 | ||
Additional disclosures | ||||
Term of debt issued | 10 years | |||
Stated interest rate | 5.50% | 5.50% | ||
Line of Credit [Member] | ||||
Liabilities: | ||||
Long-term Debt, Gross | $ 95.7 | 68.0 | ||
$180 term loan | ||||
Liabilities: | ||||
Long-term Debt, Gross | 0.0 | 148.5 | ||
$100 Series A Notes | ||||
Liabilities: | ||||
Long-term Debt, Gross | 100.0 | 100.0 | ||
Additional disclosures | ||||
Stated interest rate | 4.60% | |||
Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 56.0 | 66.0 | ||
Investments in rabbi trust | 4.3 | 4.3 | ||
Derivative instruments | 0.0 | 0.0 | ||
Liabilities: | ||||
Derivative instruments | 0.0 | 0.0 | ||
Level 1 | $150 senior unsecured notes | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 154.9 | 161.2 | ||
Level 1 | Line of Credit [Member] | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | 0.0 | ||
Level 1 | $180 term loan | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | |||
Level 1 | $100 Series A Notes | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | 0.0 | ||
Level 2 | ||||
Assets: | ||||
Cash and cash equivalents | 0.0 | 0.0 | ||
Investments in rabbi trust | 0.0 | 0.0 | ||
Derivative instruments | 1.9 | 3.8 | ||
Liabilities: | ||||
Derivative instruments | 2.2 | 2.3 | ||
Level 2 | $150 senior unsecured notes | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | 0.0 | ||
Level 2 | Line of Credit [Member] | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 95.7 | 68.0 | ||
Level 2 | $180 term loan | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 148.5 | |||
Level 2 | $100 Series A Notes | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 102.4 | 106.7 | ||
Level 3 | ||||
Assets: | ||||
Cash and cash equivalents | 0.0 | 0.0 | ||
Investments in rabbi trust | 0.0 | 0.0 | ||
Derivative instruments | 0.0 | 0.0 | ||
Liabilities: | ||||
Derivative instruments | 0.0 | 0.0 | ||
Level 3 | $150 senior unsecured notes | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | 0.0 | ||
Level 3 | Line of Credit [Member] | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | 0.0 | ||
Level 3 | $180 term loan | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | |||
Level 3 | $100 Series A Notes | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0.0 | 0.0 | ||
Carrying Value | ||||
Assets: | ||||
Cash and cash equivalents | 56.0 | 66.0 | ||
Investments in rabbi trust | 4.3 | 4.3 | ||
Derivative instruments | 1.9 | 3.8 | ||
Liabilities: | ||||
Derivative instruments | $ 2.2 | $ 2.3 |
Segment and Geographical Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2018
USD ($)
segment
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
|
Segment and Geographical Information | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Net revenue | $ 474.7 | $ 446.0 | $ 452.2 | $ 397.2 | $ 442.9 | $ 395.9 | $ 395.3 | $ 356.1 | $ 1,770.1 | $ 1,590.2 | $ 1,538.4 |
Assets | 1,864.6 | 1,956.5 | 1,864.6 | 1,956.5 | |||||||
Property, plant, and equipment, net | 142.0 | 150.4 | 142.0 | 150.4 | |||||||
Depreciation and amortization | 56.5 | 56.6 | 60.4 | ||||||||
UNITED STATES | |||||||||||
Segment and Geographical Information | |||||||||||
Net revenue | 926.4 | 896.1 | 857.0 | ||||||||
Property, plant, and equipment, net | 76.6 | 84.4 | 76.6 | 84.4 | |||||||
All other international | |||||||||||
Segment and Geographical Information | |||||||||||
Net revenue | 331.2 | 268.5 | 278.4 | ||||||||
Property, plant, and equipment, net | 24.7 | 27.0 | 24.7 | 27.0 | |||||||
GERMANY | |||||||||||
Segment and Geographical Information | |||||||||||
Net revenue | 512.5 | 425.6 | 403.0 | ||||||||
Property, plant, and equipment, net | 40.7 | 39.0 | 40.7 | 39.0 | |||||||
Corporate | |||||||||||
Segment and Geographical Information | |||||||||||
Assets | 34.0 | 30.9 | 34.0 | 30.9 | |||||||
Depreciation and amortization | 1.8 | 1.5 | 1.1 | ||||||||
Process Equipment Group Segment | |||||||||||
Segment and Geographical Information | |||||||||||
Net revenue | 1,219.5 | 1,028.2 | 964.7 | ||||||||
Process Equipment Group Segment | Operating Segments | |||||||||||
Segment and Geographical Information | |||||||||||
Assets | 1,638.8 | 1,722.2 | 1,638.8 | 1,722.2 | |||||||
Depreciation and amortization | 42.8 | 41.3 | 45.2 | ||||||||
Batesville Segment | |||||||||||
Segment and Geographical Information | |||||||||||
Net revenue | 550.6 | 562.0 | 573.7 | ||||||||
Batesville Segment | Operating Segments | |||||||||||
Segment and Geographical Information | |||||||||||
Assets | $ 191.8 | $ 203.4 | 191.8 | 203.4 | |||||||
Depreciation and amortization | $ 11.9 | $ 13.8 | $ 14.1 |
Segment and Geographical Information - Segment adjusted EBITDA to consolidated net income (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Segment and Geographical Information | ||||
Goodwill and Intangible Asset Impairment | $ 63.4 | $ 0.0 | $ 0.0 | |
Interest income | 1.4 | 0.9 | 1.2 | |
Interest expense | 23.3 | 25.2 | 25.3 | |
Income tax expense | 65.3 | 59.9 | 47.3 | |
Depreciation and amortization | 56.5 | 56.6 | 60.4 | |
Business acquisition, development, and integration | 3.5 | 1.1 | 3.7 | |
Inventory step-up | 0.0 | 0.0 | 2.4 | |
Restructuring and restructuring related | 2.5 | 10.7 | 10.2 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4.6 | 0.0 | 2.2 | |
Consolidated net income | 81.2 | 128.4 | 116.8 | |
Corporate | ||||
Segment and Geographical Information | ||||
Adjusted EBITDA | (42.3) | (38.6) | (37.3) | |
Depreciation and amortization | 1.8 | 1.5 | 1.1 | |
Process Equipment Group Segment | Operating Segments | ||||
Segment and Geographical Information | ||||
Adjusted EBITDA | 215.8 | 177.7 | 160.9 | |
Depreciation and amortization | 42.8 | 41.3 | 45.2 | |
Batesville Segment | Operating Segments | ||||
Segment and Geographical Information | ||||
Adjusted EBITDA | 120.8 | 141.9 | 143.5 | |
Depreciation and amortization | $ 11.9 | $ 13.8 | $ 14.1 |
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Net revenue | $ 474.7 | $ 446.0 | $ 452.2 | $ 397.2 | $ 442.9 | $ 395.9 | $ 395.3 | $ 356.1 | $ 1,770.1 | $ 1,590.2 | $ 1,538.4 | |||||
Gross profit | 164.2 | 163.7 | 168.7 | 146.3 | 164.3 | 152.4 | 148.6 | 126.0 | 642.9 | 591.3 | 570.6 | |||||
Net income | $ 44.5 | $ 35.9 | $ (21.9) | $ 18.1 | $ 38.2 | $ 32.9 | $ 33.4 | $ 21.7 | $ 76.6 | [1] | $ 126.2 | [1] | $ 112.8 | [1] | ||
Earnings per share-basic (in dollars per share) | $ 0.71 | $ 0.57 | $ (0.34) | $ 0.28 | $ 0.60 | $ 0.52 | $ 0.52 | $ 0.34 | $ 1.21 | [1] | $ 1.99 | [1] | $ 1.78 | [1] | ||
Earnings per share-diluted (in dollars per share) | $ 0.70 | $ 0.56 | $ (0.34) | $ 0.28 | $ 0.60 | $ 0.52 | $ 0.52 | $ 0.34 | $ 1.20 | [1] | $ 1.97 | [1] | $ 1.77 | [1] | ||
|
Condensed Consolidating Information - Condensed Consolidating Statements of Income (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||||
Condensed Consolidating Statements of Income | ||||||||||||||||||
Net revenue | $ 474.7 | $ 446.0 | $ 452.2 | $ 397.2 | $ 442.9 | $ 395.9 | $ 395.3 | $ 356.1 | $ 1,770.1 | $ 1,590.2 | $ 1,538.4 | |||||||
Cost of goods sold | 1,127.2 | 998.9 | 967.8 | |||||||||||||||
Gross profit | 164.2 | 163.7 | 168.7 | 146.3 | 164.3 | 152.4 | 148.6 | 126.0 | 642.9 | 591.3 | 570.6 | |||||||
Operating expenses | 378.9 | 344.4 | 346.5 | |||||||||||||||
Amortization expense | 30.2 | 29.2 | 33.0 | |||||||||||||||
Goodwill and Intangible Asset Impairment | 63.4 | 0.0 | 0.0 | |||||||||||||||
Goodwill, Impairment Loss | (58.8) | 0.0 | 0.0 | |||||||||||||||
Interest expense | 23.3 | 25.2 | 25.3 | |||||||||||||||
Other Nonoperating Income (Expense) | (0.6) | (4.2) | (1.7) | |||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 146.5 | 188.3 | 164.1 | |||||||||||||||
Income Tax Expense (Benefit) | 65.3 | 59.9 | 47.3 | |||||||||||||||
Consolidated net income | 81.2 | 128.4 | 116.8 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 4.6 | 2.2 | 4.0 | |||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 44.5 | $ 35.9 | $ (21.9) | $ 18.1 | $ 38.2 | $ 32.9 | $ 33.4 | $ 21.7 | 76.6 | [1] | 126.2 | [1] | 112.8 | [1] | ||||
Consolidated comprehensive income (loss) | 77.5 | 177.2 | 94.6 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 3.9 | 2.4 | 3.7 | |||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | [2] | 73.6 | 174.8 | 90.9 | ||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (3.7) | 48.8 | (22.2) | |||||||||||||||
Reportable Legal Entities | ||||||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 174.8 | (145.8) | ||||||||||||||||
Reportable Legal Entities | Parent | ||||||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||||||
Operating expenses | 54.8 | 42.4 | 41.8 | |||||||||||||||
Amortization expense | 0.0 | 0.0 | 0.0 | |||||||||||||||
Impairment charge | 0.0 | 0.0 | 0.0 | |||||||||||||||
Interest expense | 20.3 | 21.8 | 22.7 | |||||||||||||||
Other Nonoperating Income (Expense) | 2.1 | (0.6) | (0.3) | |||||||||||||||
Income (Loss) from Subsidiaries, Net of Tax | 139.3 | 164.4 | 144.4 | |||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 66.3 | 99.6 | 79.6 | |||||||||||||||
Income Tax Expense (Benefit) | (10.3) | (26.6) | (33.2) | |||||||||||||||
Consolidated net income | 76.6 | 126.2 | 112.8 | |||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 76.6 | 126.2 | 112.8 | |||||||||||||||
Consolidated comprehensive income (loss) | 73.6 | 174.8 | 90.9 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0.0 | 0.0 | 0.0 | |||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 73.6 | 90.9 | ||||||||||||||||
Reportable Legal Entities | Guarantors | ||||||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||||||
Net revenue | 937.0 | 901.4 | 846.8 | |||||||||||||||
Cost of goods sold | 497.1 | 467.3 | 428.7 | |||||||||||||||
Gross profit | 439.9 | 434.1 | 418.1 | |||||||||||||||
Operating expenses | 247.4 | 237.8 | 242.0 | |||||||||||||||
Amortization expense | 13.4 | 13.5 | 13.0 | |||||||||||||||
Impairment charge | 0.0 | 0.0 | ||||||||||||||||
Goodwill and Intangible Asset Impairment | 63.4 | |||||||||||||||||
Interest expense | 1.1 | 0.0 | 0.2 | |||||||||||||||
Other Nonoperating Income (Expense) | (2.7) | (3.4) | (2.2) | |||||||||||||||
Income (Loss) from Subsidiaries, Net of Tax | 9.1 | 8.2 | 10.2 | |||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 121.0 | 187.6 | 170.9 | |||||||||||||||
Income Tax Expense (Benefit) | 48.3 | 65.9 | 62.4 | |||||||||||||||
Consolidated net income | 72.7 | 121.7 | 108.5 | |||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 72.7 | 121.7 | 108.5 | |||||||||||||||
Consolidated comprehensive income (loss) | 77.1 | 131.8 | 116.4 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0.0 | 0.0 | 0.0 | |||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 77.1 | 131.8 | 116.4 | |||||||||||||||
Reportable Legal Entities | Non-Guarantors | ||||||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||||||
Net revenue | 1,052.9 | 904.7 | 892.8 | |||||||||||||||
Cost of goods sold | 743.1 | 647.4 | 638.4 | |||||||||||||||
Gross profit | 309.8 | 257.3 | 254.4 | |||||||||||||||
Operating expenses | 183.5 | 164.3 | 164.6 | |||||||||||||||
Amortization expense | 16.8 | 15.7 | 20.0 | |||||||||||||||
Impairment charge | 0.0 | 0.0 | 0.0 | |||||||||||||||
Interest expense | 1.9 | 3.4 | 2.4 | |||||||||||||||
Other Nonoperating Income (Expense) | 0.0 | (0.2) | 0.8 | |||||||||||||||
Income (Loss) from Subsidiaries, Net of Tax | 0.0 | |||||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 107.6 | 73.7 | 68.2 | |||||||||||||||
Income Tax Expense (Benefit) | 27.3 | 20.6 | 18.1 | |||||||||||||||
Consolidated net income | 80.3 | 53.1 | 50.1 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 4.6 | 2.2 | 4.0 | |||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 75.7 | 50.9 | 46.1 | |||||||||||||||
Consolidated comprehensive income (loss) | 72.1 | 86.4 | 33.1 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 3.9 | 2.4 | 3.7 | |||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 68.2 | 84.0 | 29.4 | |||||||||||||||
Eliminations | ||||||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||||||
Net revenue | (219.8) | (215.9) | (201.2) | |||||||||||||||
Cost of goods sold | (113.0) | (115.8) | (99.3) | |||||||||||||||
Gross profit | (106.8) | (100.1) | (101.9) | |||||||||||||||
Operating expenses | (106.8) | (100.1) | (101.9) | |||||||||||||||
Other Nonoperating Income (Expense) | 0.0 | 0.0 | 0.0 | |||||||||||||||
Income (Loss) from Subsidiaries, Net of Tax | (148.4) | (172.6) | (154.6) | |||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (148.4) | (172.6) | (154.6) | |||||||||||||||
Consolidated net income | (148.4) | (172.6) | (154.6) | |||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | (148.4) | (172.6) | (154.6) | |||||||||||||||
Consolidated comprehensive income (loss) | (145.3) | (215.8) | (145.8) | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0.0 | 0.0 | $ 0.0 | |||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (145.3) | $ (215.8) | ||||||||||||||||
|
Condensed Consolidating Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|---|---|
Condensed Consolidating Balance Sheets | ||||
Cash and cash equivalents | $ 56.0 | $ 66.0 | $ 52.0 | $ 48.3 |
Trade receivables, net | 218.5 | 206.1 | ||
Receivables from long-term manufacturing contracts | 120.3 | 125.2 | ||
Inventories | 172.5 | 151.6 | ||
Prepaid expense | 25.2 | 28.2 | ||
Intercompany receivables | 0.0 | 0.0 | ||
Other current assets | 18.1 | 16.5 | ||
Total current assets | 610.6 | 593.6 | ||
Property, plant, and equipment, net | 142.0 | 150.4 | ||
Intangible assets, net | 487.3 | 523.9 | ||
Goodwill | 581.9 | 647.5 | 634.3 | |
Investment in consolidated subsidiaries | 0.0 | 0.0 | ||
Other assets | 42.8 | 41.1 | ||
Total Assets | 1,864.6 | 1,956.5 | ||
Trade accounts payable | 196.8 | 158.0 | ||
Liabilities from long-term manufacturing contracts and advances | 125.9 | 132.3 | ||
Current portion of long-term debt | 0.0 | 18.8 | ||
Accrued compensation | 71.9 | 66.9 | ||
Intercompany payables | 0.0 | 0.0 | ||
Other current liabilities | 137.1 | 135.7 | ||
Total current liabilities | 531.7 | 511.7 | ||
Long-term debt | 344.6 | 446.9 | ||
Accrued pension and postretirement healthcare | 120.5 | 129.6 | ||
Deferred income taxes | 76.4 | 75.7 | ||
Other long-term liabilities | 47.3 | 26.7 | ||
Total Liabilities | 1,120.5 | 1,190.6 | ||
Total Hillenbrand Shareholders’ Equity | 731.1 | 751.4 | ||
Noncontrolling interests | 13.0 | 14.5 | ||
Total Shareholders’ Equity | 744.1 | 765.9 | 646.2 | 605.8 |
Total Liabilities and Equity | 1,864.6 | 1,956.5 | ||
Reportable Legal Entities | Parent | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and cash equivalents | 1.1 | 0.1 | 4.4 | 0.3 |
Trade receivables, net | 0.0 | 0.0 | ||
Receivables from long-term manufacturing contracts | 0.0 | 0.0 | ||
Inventories | 0.0 | 0.0 | ||
Prepaid expense | 2.7 | 2.1 | ||
Intercompany receivables | 0.0 | 0.0 | ||
Other current assets | 0.0 | 0.2 | ||
Total current assets | 3.8 | 2.4 | ||
Property, plant, and equipment, net | 3.8 | 4.7 | ||
Intangible assets, net | 3.2 | 3.6 | ||
Goodwill | 0.0 | 0.0 | ||
Investment in consolidated subsidiaries | 2,263.1 | 2,298.0 | ||
Other assets | 15.7 | 20.2 | ||
Total Assets | 2,289.6 | 2,328.9 | ||
Trade accounts payable | 0.0 | 1.0 | ||
Liabilities from long-term manufacturing contracts and advances | 0.0 | 0.0 | ||
Current portion of long-term debt | 0.0 | 18.0 | ||
Accrued compensation | 7.2 | 7.6 | ||
Intercompany payables | 1,206.2 | 1,142.8 | ||
Other current liabilities | 19.4 | 14.0 | ||
Total current liabilities | 1,232.8 | 1,183.4 | ||
Long-term debt | 300.2 | 392.0 | ||
Accrued pension and postretirement healthcare | 0.7 | 0.8 | ||
Deferred income taxes | 0.7 | 0.0 | ||
Other long-term liabilities | 24.1 | 1.3 | ||
Total Liabilities | 1,558.5 | 1,577.5 | ||
Total Hillenbrand Shareholders’ Equity | 731.1 | 751.4 | ||
Noncontrolling interests | 0.0 | 0.0 | ||
Total Shareholders’ Equity | 731.1 | 751.4 | ||
Total Liabilities and Equity | 2,289.6 | 2,328.9 | ||
Reportable Legal Entities | Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and cash equivalents | 5.8 | 4.9 | 5.6 | 7.1 |
Trade receivables, net | 124.5 | 114.5 | ||
Receivables from long-term manufacturing contracts | 5.3 | 8.5 | ||
Inventories | 76.7 | 68.2 | ||
Prepaid expense | 7.0 | 7.6 | ||
Intercompany receivables | 1,131.1 | 1,050.4 | ||
Other current assets | 3.2 | 1.6 | ||
Total current assets | 1,353.6 | 1,255.7 | ||
Property, plant, and equipment, net | 60.2 | 64.5 | ||
Intangible assets, net | 196.0 | 211.3 | ||
Goodwill | 225.0 | 283.9 | ||
Investment in consolidated subsidiaries | 653.9 | 664.1 | ||
Other assets | 28.2 | 29.0 | ||
Total Assets | 2,516.9 | 2,508.5 | ||
Trade accounts payable | 62.4 | 36.7 | ||
Liabilities from long-term manufacturing contracts and advances | 26.6 | 26.2 | ||
Current portion of long-term debt | 0.0 | 0.0 | ||
Accrued compensation | 20.1 | 17.9 | ||
Intercompany payables | 6.1 | 4.0 | ||
Other current liabilities | 38.9 | 42.2 | ||
Total current liabilities | 154.1 | 127.0 | ||
Long-term debt | 0.0 | 0.0 | ||
Accrued pension and postretirement healthcare | 29.8 | 33.3 | ||
Deferred income taxes | 22.9 | 27.5 | ||
Other long-term liabilities | 14.3 | 15.3 | ||
Total Liabilities | 221.1 | 203.1 | ||
Total Hillenbrand Shareholders’ Equity | 2,295.8 | 2,305.4 | ||
Noncontrolling interests | 0.0 | 0.0 | ||
Total Shareholders’ Equity | 2,295.8 | 2,305.4 | ||
Total Liabilities and Equity | 2,516.9 | 2,508.5 | ||
Reportable Legal Entities | Non-Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and cash equivalents | 49.1 | 61.0 | 42.0 | 40.9 |
Trade receivables, net | 94.0 | 91.6 | ||
Receivables from long-term manufacturing contracts | 115.0 | 116.7 | ||
Inventories | 98.6 | 85.9 | ||
Prepaid expense | 15.5 | 18.5 | ||
Intercompany receivables | 79.1 | 93.9 | ||
Other current assets | 14.6 | 14.4 | ||
Total current assets | 465.9 | 482.0 | ||
Property, plant, and equipment, net | 78.0 | 81.2 | ||
Intangible assets, net | 288.1 | 309.0 | ||
Goodwill | 356.9 | 363.6 | ||
Investment in consolidated subsidiaries | 0.0 | 0.0 | ||
Other assets | 5.9 | 4.4 | ||
Total Assets | 1,194.8 | 1,240.2 | ||
Trade accounts payable | 134.4 | 120.0 | ||
Liabilities from long-term manufacturing contracts and advances | 99.3 | 106.1 | ||
Current portion of long-term debt | 0.0 | 0.8 | ||
Accrued compensation | 44.6 | 41.4 | ||
Intercompany payables | 0.0 | 0.0 | ||
Other current liabilities | 78.1 | 79.3 | ||
Total current liabilities | 356.4 | 347.6 | ||
Long-term debt | 44.4 | 54.9 | ||
Accrued pension and postretirement healthcare | 90.0 | 95.5 | ||
Deferred income taxes | 60.9 | 60.9 | ||
Other long-term liabilities | 8.9 | 10.1 | ||
Total Liabilities | 560.6 | 569.0 | ||
Total Hillenbrand Shareholders’ Equity | 621.2 | 656.7 | ||
Noncontrolling interests | 13.0 | 14.5 | ||
Total Shareholders’ Equity | 634.2 | 671.2 | ||
Total Liabilities and Equity | 1,194.8 | 1,240.2 | ||
Eliminations | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and cash equivalents | 0.0 | 0.0 | $ 0.0 | $ 0.0 |
Trade receivables, net | 0.0 | 0.0 | ||
Receivables from long-term manufacturing contracts | 0.0 | 0.0 | ||
Inventories | (2.8) | (2.5) | ||
Prepaid expense | 0.0 | 0.0 | ||
Intercompany receivables | (1,210.2) | (1,144.3) | ||
Other current assets | 0.3 | 0.3 | ||
Total current assets | (1,212.7) | (1,146.5) | ||
Property, plant, and equipment, net | 0.0 | 0.0 | ||
Intangible assets, net | 0.0 | 0.0 | ||
Goodwill | 0.0 | 0.0 | ||
Investment in consolidated subsidiaries | (2,917.0) | (2,962.1) | ||
Other assets | (7.0) | (12.5) | ||
Total Assets | (4,136.7) | (4,121.1) | ||
Trade accounts payable | 0.0 | 0.3 | ||
Liabilities from long-term manufacturing contracts and advances | 0.0 | 0.0 | ||
Current portion of long-term debt | 0.0 | 0.0 | ||
Accrued compensation | 0.0 | 0.0 | ||
Intercompany payables | (1,212.3) | (1,146.8) | ||
Other current liabilities | 0.7 | 0.2 | ||
Total current liabilities | (1,211.6) | (1,146.3) | ||
Long-term debt | 0.0 | 0.0 | ||
Accrued pension and postretirement healthcare | 0.0 | 0.0 | ||
Deferred income taxes | (8.1) | (12.7) | ||
Other long-term liabilities | 0.0 | 0.0 | ||
Total Liabilities | (1,219.7) | (1,159.0) | ||
Total Hillenbrand Shareholders’ Equity | (2,917.0) | (2,962.1) | ||
Noncontrolling interests | 0.0 | 0.0 | ||
Total Shareholders’ Equity | (2,917.0) | (2,962.1) | ||
Total Liabilities and Equity | $ (4,136.7) | $ (4,121.1) |
Condensed Consolidating Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | $ 248.3 | $ 246.2 | $ 238.2 |
Investing activities: | |||
Capital expenditures | (27.0) | (22.0) | (21.2) |
Proceeds from sales of property, plant, and equipment | 3.7 | 5.7 | 2.0 |
Acquisitions of businesses, net of cash acquired | 0.0 | 0.0 | (235.4) |
Return of investment capital from affiliates | 0.0 | 3.2 | 1.1 |
Other, net | 0.2 | (0.4) | 0.0 |
Net cash used in investing activities | (23.1) | (13.5) | (253.5) |
Financing activities: | |||
Repayments on term loan | (148.5) | (13.5) | (9.0) |
Proceeds from revolving credit facility, net of financing costs | 1,094.0 | 819.3 | 719.8 |
Repayments on revolving credit facility | (1,065.7) | (953.0) | (627.2) |
Payment of dividends - intercompany | 0.0 | 0.0 | 0.0 |
Payment of dividends on common stock | (52.1) | (51.9) | (51.1) |
Repurchases of common stock | (61.0) | (28.0) | (21.2) |
Net proceeds on stock plans | 7.1 | 13.7 | 11.1 |
Other, net | (6.3) | (1.7) | (0.8) |
Net cash (used in) provided by financing activities | (232.5) | (215.1) | 21.6 |
Effect of exchange rate changes on cash and cash equivalents | (2.7) | (3.6) | (2.6) |
Net cash flows | (10.0) | 14.0 | 3.7 |
At beginning of period | 66.0 | 52.0 | 48.3 |
At end of period | 56.0 | 66.0 | 52.0 |
Reportable Legal Entities | Parent | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 221.6 | 79.9 | 157.8 |
Investing activities: | |||
Capital expenditures | (1.7) | (0.7) | (2.6) |
Proceeds from sales of property, plant, and equipment | 0.0 | 0.0 | 0.0 |
Acquisitions of businesses, net of cash acquired | 0.0 | 0.0 | 0.0 |
Return of investment capital from affiliates | 0.0 | 3.2 | 1.1 |
Other, net | 0.0 | 0.0 | 0.0 |
Net cash used in investing activities | (1.7) | 2.5 | (1.5) |
Financing activities: | |||
Repayments on term loan | (148.5) | (13.5) | (9.0) |
Proceeds from revolving credit facility, net of financing costs | 583.9 | 289.5 | 375.5 |
Repayments on revolving credit facility | (548.3) | (296.5) | (457.5) |
Payment of dividends - intercompany | 0.0 | 0.0 | 0.0 |
Payment of dividends on common stock | (52.1) | (51.9) | (51.1) |
Repurchases of common stock | (61.0) | (28.0) | (21.2) |
Net proceeds on stock plans | 7.1 | 13.7 | 11.1 |
Other, net | 0.0 | 0.0 | 0.0 |
Net cash (used in) provided by financing activities | (218.9) | (86.7) | (152.2) |
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | 0.0 |
Net cash flows | 1.0 | (4.3) | 4.1 |
At beginning of period | 0.1 | 4.4 | 0.3 |
At end of period | 1.1 | 0.1 | 4.4 |
Reportable Legal Entities | Guarantors | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 127.8 | 126.7 | 239.9 |
Investing activities: | |||
Capital expenditures | (12.1) | (9.7) | (8.0) |
Proceeds from sales of property, plant, and equipment | 3.4 | 5.3 | 1.6 |
Acquisitions of businesses, net of cash acquired | 0.0 | 0.0 | (130.4) |
Return of investment capital from affiliates | 0.0 | 0.0 | 0.0 |
Other, net | 0.1 | (0.4) | 0.0 |
Net cash used in investing activities | (8.6) | (4.8) | (136.8) |
Financing activities: | |||
Repayments on term loan | 0.0 | 0.0 | 0.0 |
Proceeds from revolving credit facility, net of financing costs | 0.0 | 0.0 | 0.0 |
Repayments on revolving credit facility | 0.0 | 0.0 | 0.0 |
Payment of dividends - intercompany | (118.3) | (122.6) | (104.6) |
Payment of dividends on common stock | 0.0 | 0.0 | 0.0 |
Repurchases of common stock | 0.0 | 0.0 | 0.0 |
Net proceeds on stock plans | 0.0 | 0.0 | 0.0 |
Other, net | 0.0 | 0.0 | 0.0 |
Net cash (used in) provided by financing activities | (118.3) | (122.6) | (104.6) |
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | 0.0 |
Net cash flows | 0.9 | (0.7) | (1.5) |
At beginning of period | 4.9 | 5.6 | 7.1 |
At end of period | 5.8 | 4.9 | 5.6 |
Reportable Legal Entities | Non-Guarantors | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 23.2 | 168.3 | (49.5) |
Investing activities: | |||
Capital expenditures | (13.2) | (11.6) | (10.6) |
Proceeds from sales of property, plant, and equipment | 0.3 | 0.4 | 0.4 |
Acquisitions of businesses, net of cash acquired | 0.0 | 0.0 | (105.0) |
Return of investment capital from affiliates | 0.0 | 0.0 | 0.0 |
Other, net | 0.1 | 0.0 | 0.0 |
Net cash used in investing activities | (12.8) | (11.2) | (115.2) |
Financing activities: | |||
Repayments on term loan | 0.0 | 0.0 | 0.0 |
Proceeds from revolving credit facility, net of financing costs | 510.1 | 529.8 | 344.3 |
Repayments on revolving credit facility | (517.4) | (656.5) | (169.7) |
Payment of dividends - intercompany | (6.0) | (6.1) | (5.4) |
Payment of dividends on common stock | 0.0 | 0.0 | 0.0 |
Repurchases of common stock | 0.0 | 0.0 | 0.0 |
Net proceeds on stock plans | 0.0 | 0.0 | 0.0 |
Other, net | (6.3) | (1.7) | (0.8) |
Net cash (used in) provided by financing activities | (19.6) | (134.5) | 168.4 |
Effect of exchange rate changes on cash and cash equivalents | (2.7) | (3.6) | (2.6) |
Net cash flows | (11.9) | 19.0 | 1.1 |
At beginning of period | 61.0 | 42.0 | 40.9 |
At end of period | 49.1 | 61.0 | 42.0 |
Eliminations | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | (124.3) | (128.7) | (110.0) |
Investing activities: | |||
Capital expenditures | 0.0 | 0.0 | 0.0 |
Proceeds from sales of property, plant, and equipment | 0.0 | 0.0 | 0.0 |
Acquisitions of businesses, net of cash acquired | 0.0 | 0.0 | 0.0 |
Return of investment capital from affiliates | 0.0 | 0.0 | 0.0 |
Other, net | 0.0 | 0.0 | 0.0 |
Net cash used in investing activities | 0.0 | 0.0 | 0.0 |
Financing activities: | |||
Repayments on term loan | 0.0 | 0.0 | 0.0 |
Proceeds from revolving credit facility, net of financing costs | 0.0 | 0.0 | 0.0 |
Repayments on revolving credit facility | 0.0 | 0.0 | 0.0 |
Payment of dividends - intercompany | 124.3 | 128.7 | 110.0 |
Payment of dividends on common stock | 0.0 | 0.0 | 0.0 |
Repurchases of common stock | 0.0 | 0.0 | 0.0 |
Net proceeds on stock plans | 0.0 | 0.0 | 0.0 |
Other, net | 0.0 | 0.0 | 0.0 |
Net cash (used in) provided by financing activities | 124.3 | 128.7 | 110.0 |
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | 0.0 |
Net cash flows | 0.0 | 0.0 | 0.0 |
At beginning of period | 0.0 | 0.0 | 0.0 |
At end of period | $ 0.0 | $ 0.0 | $ 0.0 |
Restructuring (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Restructuring and Related Cost | ||
Restructuring charges | $ 2.1 | $ 9.5 |
Restructuring costs accrued | 1.3 | |
Corporate | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.4 | 2.1 |
Process Equipment Group | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.7 | 1.9 |
Batesville | ||
Restructuring and Related Cost | ||
Restructuring charges | 1.0 | 5.5 |
Cost of goods sold | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.8 | 6.0 |
Cost of goods sold | Corporate | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.0 | 0.0 |
Cost of goods sold | Process Equipment Group | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.3 | 0.5 |
Cost of goods sold | Batesville | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.5 | 5.5 |
Operating expenses | ||
Restructuring and Related Cost | ||
Restructuring charges | 1.3 | 3.5 |
Operating expenses | Corporate | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.4 | 2.1 |
Operating expenses | Process Equipment Group | ||
Restructuring and Related Cost | ||
Restructuring charges | 0.4 | 1.4 |
Operating expenses | Batesville | ||
Restructuring and Related Cost | ||
Restructuring charges | $ 0.5 | $ 0.0 |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Allowance for doubtful accounts, early pay discounts, and sales returns | |||
Valuation and qualifying accounts activity | |||
Balance at Beginning of Period | $ 21.6 | $ 21.0 | $ 20.0 |
Charged to Revenue, Costs, and Expense | 3.5 | 2.5 | 3.7 |
Charged to Other Accounts | (0.1) | 0.1 | 0.4 |
Deductions Net of Recoveries | (2.8) | (2.0) | (3.1) |
Balance at End of Period | 22.2 | 21.6 | 21.0 |
Allowance for inventory valuation | |||
Valuation and qualifying accounts activity | |||
Balance at Beginning of Period | 19.0 | 18.0 | 14.8 |
Charged to Revenue, Costs, and Expense | 2.2 | 2.4 | 4.3 |
Charged to Other Accounts | (0.4) | 0.8 | 0.6 |
Deductions Net of Recoveries | (2.6) | (2.2) | (1.7) |
Balance at End of Period | $ 18.2 | $ 19.0 | $ 18.0 |