HILLENBRAND, INC., 10-K filed on 11/13/2018
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
12 Months Ended
Sep. 30, 2018
Nov. 08, 2018
Mar. 31, 2017
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
v3.10.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]      
Net revenue $ 1,770.1 $ 1,590.2 $ 1,538.4
Cost of goods sold 1,127.2 998.9 967.8
Gross profit 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
Interest expense 23.3 25.2 25.3
Other (expense) income, net (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 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 [1] $ 76.6 $ 126.2 $ 112.8
Net income - per share of common stock:      
Basic earnings per share (in dollars per share) [1] $ 1.21 $ 1.99 $ 1.78
Diluted earnings per share (in dollars per share) [1] $ 1.20 $ 1.97 $ 1.77
Weighted-average shares outstanding-basic (in shares) 63.1 63.6 63.3
Weighted-average shares outstanding-diluted (in shares) 63.8 64.0 63.8
Cash dividends per share (in dollars per share) $ 0.83 $ 0.82 $ 0.81
[1] Net income attributable to Hillenbrand
v3.10.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
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
[1] Comprehensive income attributable to Hillenbrand
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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
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
v3.10.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2018
Sep. 30, 2017
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
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Millions
Sep. 30, 2018
Sep. 30, 2017
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
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
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
v3.10.0.1
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    
v3.10.0.1
Background
12 Months Ended
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.
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Summary of Significant Accounting Policies
12 Months Ended
Sep. 30, 2018
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.
 
September 30,
 
2018
 
2017
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


 
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.
 
 
September 30, 2018
 
September 30, 2017
 
Cost
 
Accumulated
Depreciation
 
Cost
 
Accumulated
Depreciation
Land and land improvements
$
15.0

 
$
(3.3
)
 
$
15.9

 
$
(3.5
)
Buildings and building equipment
102.3

 
(60.7
)
 
110.5

 
(68.0
)
Machinery and equipment
328.5

 
(239.8
)
 
335.8

 
(240.3
)
Total
$
445.8

 
$
(303.8
)
 
$
462.2

 
$
(311.8
)

 
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.
 
 
September 30, 2018
 
September 30, 2017
 
Cost
 
Accumulated
Amortization
 
Cost
 
Accumulated
Amortization
Finite-lived assets:
 

 
 

 
 

 
 

Trade names
$
0.2

 
$
(0.2
)
 
$
0.2

 
$
(0.1
)
Customer relationships
464.5

 
(148.4
)
 
468.7

 
(125.9
)
Technology, including patents
79.6

 
(45.1
)
 
80.7

 
(39.9
)
Software
58.0

 
(48.9
)
 
48.3

 
(41.5
)
Other
0.2

 
(0.2
)
 
0.2

 
(0.2
)
 
602.5

 
(242.8
)
 
598.1

 
(207.6
)
Indefinite-lived assets:
 

 
 

 
 

 
 

Trade names
127.6

 

 
133.4

 

 
 
 
 
 
 
 
 
Total
$
730.1

 
$
(242.8
)
 
$
731.5

 
$
(207.6
)


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.
 
Process
Equipment
Group
 
Batesville
 
Total
Balance September 30, 2016
$
626.0

 
$
8.3

 
$
634.3

Adjustments
(0.9
)
 

 
(0.9
)
Foreign currency adjustments
14.1

 

 
14.1

Balance September 30, 2017
639.2

 
8.3

 
647.5

Impairment charge
(58.8
)
 

 
(58.8
)
Foreign currency adjustments
(6.8
)
 

 
(6.8
)
Balance September 30, 2018
$
573.6

 
$
8.3

 
$
581.9



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.
 
September 30,
 
2018
 
2017
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
)

 
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 taxesOn 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.
v3.10.0.1
Business Acquisitions
12 Months Ended
Sep. 30, 2018
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.
v3.10.0.1
Financing Agreements
12 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Financing Agreements
Financing Agreements
 
 
September 30,
 
2018
 
2017
$900 revolving credit facility (excluding outstanding letters of credit)
$
95.7

 
$
68.0

$180 term loan

 
148.5

$150 senior unsecured notes, net of discount (1)
149.3

 
148.9

$100 Series A Notes (2)
99.6

 
99.7

Other

 
0.6

Total debt
344.6

 
465.7

Less: current portion

 
18.8

Total long-term debt
$
344.6

 
$
446.9

 
 
 
 
(1) Includes debt issuance costs of $0.4 and $0.6 at September 30, 2018 and September 30, 2017.
(2) Includes debt issuance costs of $0.4 and $0.3 at September 30, 2018 and September 30, 2017.

 
The following table summarizes the scheduled maturities of long-term debt for 2019 through 2023:
 
 
Amount
2019
$

2020
150.0

2021

2022

2023
95.7


 

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.
 
v3.10.0.1
Retirement Benefits
12 Months Ended
Sep. 30, 2018
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:
 
 
U.S. Pension Benefits
Year Ended September 30,
 
Non-U.S. Pension Benefits
Year Ended September 30,
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost
$
2.7

 
$
3.6

 
$
3.9

 
$
1.4

 
$
1.3

 
$
1.8

Interest cost
8.7

 
8.8

 
9.5

 
1.1

 
0.7

 
1.8

Expected return on plan assets
(14.0
)
 
(13.7
)
 
(9.7
)
 
(0.6
)
 
(0.5
)
 
(1.0
)
Amortization of unrecognized prior service cost, net
0.2

 
0.4

 
0.6

 
0.1

 
0.1

 
0.1

Amortization of actuarial loss
3.2

 
3.6

 
3.8

 
0.7

 
1.1

 
0.3

Settlement expense

 
0.1

 

 

 
0.6

 
0.5

Net pension costs
$
0.8

 
$
2.8

 
$
8.1

 
$
2.7

 
$
3.3

 
$
3.5



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: 

 
U.S. Pension Benefits
September 30,
 
Non-U.S. Pension Benefits
September 30,
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation:
 

 
 

 
 

 
 

Projected benefit obligation at beginning of year
$
281.8

 
$
294.2

 
$
133.4

 
$
140.9

Service cost
2.7

 
3.6

 
1.4

 
1.3

Interest cost
8.7

 
8.8

 
1.1

 
0.7

Actuarial (gain) loss
(14.7
)
 
(6.9
)
 
0.4

 
(9.5
)
Benefits paid
(11.5
)
 
(11.0
)
 
(5.2
)
 
(5.7
)
Gain due to settlement

 
(6.9
)
 
(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
267.0

 
281.8

 
126.3

 
133.4

 
 
 
 
 
 
 
 
Change in plan assets:
 

 
 

 
 

 
 

Fair value of plan assets at beginning of year
262.4

 
173.7

 
31.4

 
29.7

Actual return on plan assets
0.6

 
17.9

 
(0.1
)
 
0.3

Employee and employer contributions
1.8

 
81.8

 
9.0

 
8.5

Benefits paid
(11.5
)
 
(11.0
)
 
(5.2
)
 
(5.7
)
Gain due to settlement

 

 
(3.0
)
 
(1.6
)
Effect of exchange rates on plan assets

 

 
(0.2
)
 
0.2

Fair value of plan assets at end of year
253.3

 
262.4

 
31.9

 
31.4

 
 
 
 
 
 
 
 
Funded status:
 

 
 

 
 

 
 

Plan assets less than benefit obligations
$
(13.7
)
 
$
(19.4
)
 
$
(94.4
)
 
$
(102.0
)
 
 
 
 
 
 
 
 
Amounts recorded in the consolidated balance sheets:
 

 
 

 
 

 
 

Prepaid pension costs, non-current
$
12.0

 
$
8.2

 
$
2.2

 
$
0.4

Accrued pension costs, current portion
(2.0
)
 
(1.8
)
 
(6.6
)
 
(6.8
)
Accrued pension costs, long-term portion
(23.7
)
 
(25.8
)
 
(90.0
)
 
(95.6
)
Plan assets greater (less) than benefit obligations
$
(13.7
)
 
$
(19.4
)
 
$
(94.4
)
 
$
(102.0
)

 
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:
 
 
U.S. Pension Benefits
September 30,
 
Non-U.S. Pension Benefits
September 30,
 
2018
 
2017
 
2018
 
2017
Projected benefit obligation
$
25.7

 
$
27.7

 
$
96.6

 
$
102.0

Accumulated benefit obligation
25.7

 
27.6

 
96.6

 
102.0

Fair value of plan assets

 

 

 



The weighted-average assumptions used in accounting for defined benefit retirement plans were:
 
 
U.S. Pension Benefits
Year Ended September 30,
 
Non-U.S. Pension Benefits
Year Ended September 30,
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rate for obligation, end of year
4.2
%
 
3.7
%
 
3.6
%
 
1.2
%
 
1.1
%
 
1.0
%
Discount rate for expense, during the year
3.4
%
 
3.5
%
 
4.4
%
 
1.5
%
 
0.5
%
 
1.7
%
Expected rate of return on plan assets
5.6
%
 
5.6
%
 
5.5
%
 
2.0
%
 
2.0
%
 
2.0
%
Rate of compensation increase
3.0
%
 
3.0
%
 
3.0
%
 
2.0
%
 
2.0
%
 
2.0
%

 
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:
 
Cash equivalents are stated at the carrying amount, which approximates fair value, or at the fund’s net asset value.
Equity securities are stated at the last reported sales price on the day of valuation.
Government index funds are stated at the closing price reported in the active market in which the fund is traded.
Corporate bond funds and equity mutual funds are stated at the closing price in the active markets in which the underlying securities of the funds are traded.
Real estate is stated based on a discounted cash flow approach, which includes future rental receipts, expenses, and residual values as the highest and best use of the real estate from a market participant view as rental property.

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
 
Fair Value at September 30, 2018 Using Inputs Considered as:
 
Total
 
Level 1
 
Level 2
 
Level 3
Non-U.S. Pension Plans
 

 
 

 
 

 
 

Cash equivalents
$
2.4

 
$
2.4

 
$

 
$

Equity securities
7.3

 
7.3

 

 

Other types of investments:
 
 
 
 
 
 
 
Government index funds
5.6

 
5.6

 

 

Corporate bond funds
12.1

 
12.1

 

 

Real estate and real estate funds
2.4

 

 

 
2.4

Other
2.1

 

 
2.1

 

Total Non-U.S. pension plan assets
$
31.9

 
$
27.4

 
$
2.1

 
$
2.4

 
 
Fair Value at September 30, 2017 Using Inputs Considered as:
 
Total
 
Level 1
 
Level 2
 
Level 3
Non-U.S. Pension Plans
 

 
 

 
 

 
 

Cash equivalents
$
5.2

 
$
5.2

 
$

 
$

Equity securities
6.8

 
6.8

 

 

Other types of investments:
0

 
0

 
0

 
0

Government index funds
5.7

 
5.7

 

 

Corporate bond funds
9.8

 
9.8

 

 

Real estate and real estate funds
2.0

 

 

 
2.0

Other
1.9

 

 
1.9

 

Total Non-U.S. pension plan assets
$
31.4

 
$
27.5

 
$
1.9

 
$
2.0


 
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:
 
 
U.S. Pension Plans
Projected Pension
Benefits Payout
 
Non-U.S. Pension Plans
Projected Pension
Benefits Payout
2019
$
14.0

 
$
7.7

2020
14.3

 
7.9

2021
15.0

 
7.2

2022
15.5

 
7.3

2023
16.0

 
7.3

2023 - 2027
83.8

 
33.6


 
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.
 
 
September 30,
 
2018
 
2017
Benefit obligation at beginning of year
$
9.0

 
$
10.3

Interest cost
0.2

 
0.2

Service cost
0.3

 
0.4

Actuarial (gain) loss
(0.9
)
 
(0.9
)
Net benefits paid
(1.0
)
 
(1.0
)
Benefit obligation at end of year
$
7.6

 
$
9.0

 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Accrued postretirement benefits, current portion
$
0.8

 
$
0.8

Accrued postretirement benefits, long-term portion
6.8

 
8.2

Net amount recognized
$
7.6

 
$
9.0


 
The weighted-average assumptions used in revaluing our obligation under the postretirement healthcare plan were:
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Discount rate for obligation
4.0
%
 
3.3
%
 
3.1
%
Healthcare cost rate assumed for next year
7.1
%
 
7.6
%
 
7.3
%
Ultimate trend rate
4.5
%
 
4.5
%
 
4.5
%

 
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.
v3.10.0.1
Other Long-Term Liabilities
12 Months Ended
Sep. 30, 2018
Other Liabilities Disclosure [Abstract]  
Other Long-Term Liabilities
Other Long-Term Liabilities
 
 
September 30,
 
2018
 
2017
Transition Tax liability
$
24.6

 
$

Rabbi trust liability
4.3

 
4.3

Self-insurance loss reserves
11.2

 
14.3

Other
13.1

 
14.9

 
53.2

 
33.5

Less current portion
(5.9
)
 
(6.8
)
Total long-term portion
$
47.3

 
$
26.7


 

v3.10.0.1
Income Taxes
12 Months Ended
Sep. 30, 2018
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.

 
Year Ended September 30,
 
2018
 
2017
 
2016
Domestic
$
33.7

 
$
108.2

 
$
99.3

Foreign
112.8

 
80.1

 
64.8

Total earnings before income taxes
$
146.5

 
$
188.3

 
$
164.1

 
 
 
 
 
 
Income tax expense:
 

 
 

 
 

Current provision:
 

 
 

 
 

Federal
$
38.2

 
$
0.5

 
$
28.9

State
6.7

 
(0.4
)
 
5.1

Foreign
16.7

 
22.7

 
18.0

Total current provision
61.6

 
22.8

 
52.0

 
 
 
 
 
 
Deferred provision (benefit):
 

 
 

 
 

Federal
(7.5
)
 
32.0

 
3.2

State
0.5

 
5.0

 
(0.7
)
Foreign
10.7

 
0.1

 
(7.2
)
Total deferred provision (benefit)
3.7

 
37.1

 
(4.7
)
Income tax expense
$
65.3

 
$
59.9

 
$
47.3


 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Federal statutory rates
24.5
 %
 
35.0
 %
 
35.0
 %
Adjustments resulting from the tax effect of:
 

 
 

 
 

State income taxes, net of federal benefit
2.4

 
1.6

 
2.0

Foreign income tax rate differential
(0.6
)
 
(5.8
)
 
(6.7
)
Domestic manufacturer’s deduction
(1.2
)
 
(0.3
)
 
(1.9
)
Share-based compensation
(1.6
)
 
(1.1
)
 
(1.5
)
Foreign distribution taxes
(1.7
)
 
2.7

 

Valuation allowance
(0.7
)
 
(1.3
)
 
1.7

Goodwill impairment charge
11.2

 

 

Transition tax
17.8

 

 

Deferred tax impact of rate change
(9.4
)
 

 

Unrecognized tax benefits
2.1

 

 

Other, net
1.8

 
1.0

 
0.2

Effective income tax rate
44.6
 %
 
31.8
 %
 
28.8
 %

 
September 30,
 
2018
 
2017
Deferred tax assets:
 

 
 

Employee benefit accruals
$
29.0

 
$
46.0

Loss and tax credit carryforwards
37.3

 
43.7

Rebates and other discounts
4.4

 
5.8

Self-insurance reserves
2.5

 
4.6

Inventory, net
2.0

 
3.1

Other, net
8.5

 
12.6

Total deferred tax assets before valuation allowance
83.7

 
115.8

Less valuation allowance
(1.8
)
 
(3.1
)
Total deferred tax assets, net
81.9

 
112.7

Deferred tax liabilities:
 

 
 

Depreciation
(8.3
)
 
(11.6
)
Amortization
(105.3
)
 
(134.9
)
Long-term contracts and customer prepayments
(38.9
)
 
(28.9
)
Unremitted earnings of foreign operations
(0.5
)
 
(4.2
)
Other, net
(1.8
)
 
(5.1
)
Total deferred tax liabilities
(154.8
)
 
(184.7
)
Deferred tax liabilities, net
$
(72.9
)
 
$
(72.0
)
 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Deferred tax assets, non-current
3.5

 
3.7

Deferred tax liabilities, non-current
(76.4
)
 
(75.7
)
Total
$
(72.9
)
 
$
(72.0
)

 
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:
 
September 30,
 
2018
 
2017
 
2016
Balance at September 30
$
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
)
 

Balance at September 30
$
12.1

 
$
9.9

 
$
7.7



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.
v3.10.0.1
Earnings Per Share
12 Months Ended
Sep. 30, 2018
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.

 
Year Ended September 30,
 
2018
 
2017
 
2016
Net income(1)
$
76.6

 
$
126.2

 
$
112.8

Weighted average shares outstanding — basic (in millions)
63.1

 
63.6

 
63.3

Effect of dilutive stock options and unvested time-based
restricted stock (in millions)
0.7

 
0.4

 
0.5

Weighted average shares outstanding — diluted (in millions)
63.8

 
64.0

 
63.8

 


 


 


Earnings per share — basic
$
1.21

 
$
1.99

 
$
1.78

Earnings per share — diluted
$
1.20

 
$
1.97

 
$
1.77

 
 
 
 
 
 
Shares with anti-dilutive effect excluded from the computation
of diluted earnings per share (millions)
0.3

 
0.4

 
0.8

 
 
(1) Net income attributable to Hillenbrand
 
v3.10.0.1
Share-Based Compensation
12 Months Ended
Sep. 30, 2018
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.
 
Year Ended September 30,
 
2018
 
2017
 
2016
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


 
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:
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Risk-free interest rate
2.4
%
 
1.9
%
 
0.5 - 2.2%

Weighted-average dividend yield
1.8
%
 
2.2
%
 
2.6
%
Weighted-average volatility factor
28.0
%
 
28.8
%
 
31.0
%
Exercise factor(1)
n/a

 
n/a

 
33.6
%
Post-vesting termination rate(1)
n/a

 
n/a

 
5.0
%
Expected life (years)
5.6

 
5.8

 
4.5


(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:
 
 
Number
of Shares
 
Weighted-Average
Exercise Price
Outstanding at September 30, 2017
1,833,931

 
$
28.93

Granted
479,991

 
45.94

Exercised
(388,379
)
 
24.88

Forfeited
(56,532
)
 
33.56

Expired/cancelled
(754
)
 
38.96

Outstanding at September 30, 2018
1,868,257

 
$
33.84

 
 
 
 
Exercisable at September 30, 2018
1,050,458

 
$
28.31


 
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:
 
 
 
Number of Shares
 
Weighted-Average
Grant Date Fair Value
Time-Based Stock Awards 
 
 
Non-vested time-based stock awards at September 30, 2017
 
93,232

 
$
33.05

Granted
 
34,166

 
46.77

Vested
 
(28,810
)
 
32.27

Forfeited
 
(6,010
)
 
35.61

Non-vested time-based stock awards at September 30, 2018
 
92,578

 
$
38.19


 
 
 
Number of Shares
 
Weighted-Average
Grant Date Fair Value
Performance-Based Stock Awards 
 
 
Non-vested performance-based stock awards at September 30, 2017
 
608,633

 
$
35.80

Granted
 
237,617

 
53.35

Vested
 
(243,310
)
 
33.50

Forfeited
 
(122,805
)
 
34.74

Non-vested performance-based stock awards at September 30, 2018
 
480,135

 
$
45.93


 
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.
v3.10.0.1
Other Comprehensive Income (Loss)
12 Months Ended
Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss)
 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss) on
Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2017
$
(45.3
)
 
$
(36.9
)
 
$
1.0

 
$
(81.2
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 
 
 

 
 

Before tax amount
1.8

 
(7.2
)
 
1.8

 
(3.6
)
 
$
(0.7
)
 
$
(4.3
)
Tax expense
(0.5
)
 

 
(0.6
)
 
(1.1
)
 

 
(1.1
)
After tax amount
1.3

 
(7.2
)
 
1.2

 
(4.7
)
 
(0.7
)
 
(5.4
)
Amounts reclassified from accumulated other comprehensive income(1)
3.0

 

 
(1.3
)
 
1.7

 

 
1.7

Net current period other comprehensive income
4.3

 
(7.2
)
 
(0.1
)
 
(3.0
)
 
$
(0.7
)
 
$
(3.7
)
Balance at September 30, 2018
$
(41.0
)
 
$
(44.1
)
 
$
0.9

 
$
(84.2
)
 
 

 
 

 
 
(1)  Amounts are net of tax.
 
Reclassifications out of Accumulated Other Comprehensive Income include:
 
 
Year Ended September 30, 2018
 
Amortization of Pension and 
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Income:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.5

 
$
0.5

Cost of goods sold
2.4

 
0.2

 
(0.1
)
 
2.5

Operating expenses
1.2

 

 

 
1.2

Other (expense) income, net

 

 
(2.3
)
 
(2.3
)
Total before tax
$
3.6

 
$
0.2

 
$
(1.9
)
 
1.9

Tax expense
 

 
 

 
 

 
(0.2
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
1.7

 
 
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).


 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss) on
Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2016
$
(67.5
)
 
$
(61.6
)
 
$
(0.7
)
 
$
(129.8
)
 
 

 
 
Other comprehensive income before reclassifications
 
 
 
 
 
 
 

 
 

 
 
Before tax amount
28.1

 
24.7

 
3.2

 
56.0

 
$
0.2

 
$
56.2

Tax expense
(9.3
)
 

 
(1.2
)
 
(10.5
)
 

 
(10.5
)
After tax amount
18.8

 
24.7

 
2.0

 
45.5

 
0.2

 
45.7

Amounts reclassified from accumulated other comprehensive income(1)
3.4

 

 
(0.3
)
 
3.1

 

 
3.1

Net current period other comprehensive income (loss)
22.2

 
24.7

 
1.7

 
48.6

 
$
0.2

 
$
48.8

Balance at September 30, 2017
$
(45.3
)
 
$
(36.9
)
 
$
1.0

 
$
(81.2
)
 
 

 
 
 
 
(1)  Amounts are net of tax.
 
Reclassifications out of Accumulated Other Comprehensive Income include:
 
 
Year Ended September 30, 2017
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Income:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.1
)
 
$
(0.1
)
Cost of goods sold
3.2

 
0.3

 
(0.5
)
 
3.0

Operating expenses
1.4

 
0.1

 

 
1.5

Other (expense) income, net

 

 
0.1

 
0.1

Total before tax
$
4.6

 
$
0.4

 
$
(0.5
)
 
4.5

Tax expense
 

 
 

 
 

 
(1.4
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
3.1

 
 
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).



 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss) on
Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2015
$
(54.4
)
 
$
(52.1
)
 
$
(1.4
)
 
$
(107.9
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
(22.7
)
 
(9.5
)
 
0.2

 
(32.0
)
 
$
(0.3
)
 
$
(32.3
)
Tax benefit
6.5

 

 
0.1

 
6.6

 

 
6.6

After tax amount
(16.2
)
 
(9.5
)
 
0.3

 
(25.4
)
 
(0.3
)
 
(25.7
)
Amounts reclassified from accumulated other comprehensive income(1)
3.1

 

 
0.4

 
3.5

 

 
3.5

Net current period other comprehensive loss
(13.1
)
 
(9.5
)
 
0.7

 
(21.9
)
 
$
(0.3
)
 
$
(22.2
)
Balance at September 30, 2016
$
(67.5
)
 
$
(61.6
)
 
$
(0.7
)
 
$
(129.8
)
 
 

 
 

 
 
(1)  Amounts are net of tax.
 
Reclassifications out of Accumulated Other Comprehensive Income include:
 
 
Year Ended September 30, 2016
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Income:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.3

 
$
0.3

Cost of goods sold
3.0

 
0.3

 

 
3.3

Operating expenses
1.3

 
0.2

 

 
1.5

Other (expense) income, net

 

 
0.4

 
0.4

Total before tax
$
4.3

 
$
0.5

 
$
0.7

 
5.5

Tax expense
 

 
 

 
 

 
(2.0
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
3.5

 
 
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).
v3.10.0.1
Commitments and Contingencies
12 Months Ended
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
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:
 
 
Amount
2019
$
20.4

2020
15.8

2021
14.2

2022
11.7

2023
8.5

Thereafter
33.7

 
$
104.3


 
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.
 
v3.10.0.1
Other (Expense) Income, Net
12 Months Ended
Sep. 30, 2018
Other Nonoperating Income (Expense) [Abstract]  
Other (Expense) Income, Net
Other (Expense) Income, Net
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
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
)

  
v3.10.0.1
Fair Value Measurements
12 Months Ended
Sep. 30, 2018
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:
 
Level 1:
Inputs are quoted prices in active markets for identical assets or liabilities.
Level 2:
Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.
Level 3:
Inputs are unobservable for the asset or liability.
 
See the section below titled “Valuation Techniques” for further discussion of how Hillenbrand determines fair value for investments.
 
Carrying
Value at
9/30/2018
 
Fair Value at September 30, 2018
 
 
Using Inputs Considered as:
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
56.0

 
$
56.0

 
$

 
$

Investments in rabbi trust
4.3

 
4.3

 

 

Derivative instruments
1.9

 

 
1.9

 

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.7

 
154.9

 

 

Revolving credit facility
95.7

 

 
95.7

 

$100 Series A Notes
100.0

 

 
102.4

 

Derivative instruments
2.2

 

 
2.2

 

 
 
Carrying
Value at
9/30/2017
 
Fair Value at September 30, 2017
 
 
Using Inputs Considered as:
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
66.0

 
$
66.0

 
$

 
$

Investments in rabbi trust
4.3

 
4.3

 

 

Derivative instruments
3.8

 

 
3.8

 

 


 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.5

 
161.2

 

 

Revolving credit facility
68.0

 

 
68.0

 

Term loan
148.5

 

 
148.5

 

$100 Series A Notes
100.0

 

 
106.7

 

Derivative instruments
2.3

 

 
2.3

 


 
Valuation Techniques
 
The fair value of the investments in the rabbi trust were based on quoted prices in active markets.  The trust assets consist of participant-directed investments in publicly traded mutual funds.
We estimate the fair value of our foreign currency derivatives using industry accepted models.  The significant Level 2 inputs used in the valuation of our derivatives include spot rates, forward rates, and volatility.  These inputs were obtained from pricing services, broker quotes, and other sources.
The fair value of the 10-year, 5.5% fixed-rate senior unsecured notes was based on quoted prices in an active market.
The fair values of the revolving credit facility, term loan, and Series A Notes were estimated based on internally-developed models, using current market interest rate data for similar issues, as there is no active market for our revolving credit facility, term loan or Series A Notes.
v3.10.0.1
Segment and Geographical Information
12 Months Ended
Sep. 30, 2018
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.
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Net revenue
 

 
 

 
 

Process Equipment Group
$
1,219.5

 
$
1,028.2

 
$
964.7

Batesville
550.6

 
562.0

 
573.7

Total net revenue
$
1,770.1

 
$
1,590.2

 
$
1,538.4

 
 
 
 
 
 
Adjusted EBITDA
 
 
 

 
 

Process Equipment Group
$
215.8

 
$
177.7

 
$
160.9

Batesville
120.8

 
141.9

 
143.5

Corporate
(42.3
)
 
(38.6
)
 
(37.3
)
 
 
 
 
 
 
Net revenue(1)
 
 
 

 
 

United States
$
926.4

 
$
896.1

 
$
857.0

Germany
512.5

 
425.6

 
403.0

All other foreign business units
331.2

 
268.5

 
278.4

Total revenue
$
1,770.1

 
$
1,590.2

 
$
1,538.4

 
 
 
 
 
 
Depreciation and amortization
 

 
 

 
 

Process Equipment Group
$
42.8

 
$
41.3

 
$
45.2

Batesville
11.9

 
13.8

 
14.1

Corporate
1.8

 
1.5

 
1.1

Total depreciation and amortization
$
56.5

 
$
56.6

 
$
60.4

 
 
(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.
 
 
September 30,
 
2018
 
2017
Total assets assigned
 

 
 

Process Equipment Group
$
1,638.8

 
$
1,722.2

Batesville
191.8

 
203.4

Corporate
34.0

 
30.9

Total assets
$
1,864.6

 
$
1,956.5

 
 
 
 
Tangible long-lived assets, net
 
 
 

United States
$
76.6

 
$
84.4

Germany
40.7

 
39.0

All other foreign business units
24.7

 
27.0

Tangible long-lived assets, net
$
142.0

 
$
150.4



The following schedule reconciles segment adjusted EBITDA to consolidated net income.
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Adjusted EBITDA:
 

 
 

 
 

Process Equipment Group
$
215.8

 
$
177.7

 
$
160.9

Batesville
120.8

 
141.9

 
143.5

Corporate
(42.3
)
 
(38.6
)
 
(37.3
)
Less:
 

 
 

 
 

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

 

 
2.4

Restructuring and restructuring related
2.5

 
10.7

 
10.2

Impairment charges
63.4

 

 
2.2

Consolidated net income
$
81.2

 
$
128.4

 
$
116.8

v3.10.0.1
Unaudited Quarterly Financial Information
12 Months Ended
Sep. 30, 2018
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Financial Information
Unaudited Quarterly Financial Information
 
 
First
 Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
2018
 

 
 

 
 

 
 

Net revenue
$
397.2

 
$
452.2

 
$
446.0

 
$
474.7

Gross profit
146.3

 
168.7

 
163.7

 
164.2

Net income (loss) (1)
18.1

 
(21.9
)
 
35.9

 
44.5

Earnings per share — basic
0.28

 
(0.34
)
 
0.57

 
0.71

Earnings per share —diluted
0.28

 
(0.34
)
 
0.56

 
0.70

 
 
 
 
 
 
 
 
2017
 

 
 

 
 

 
 

Net revenue
$
356.1

 
$
395.3

 
$
395.9

 
$
442.9

Gross profit
126.0

 
148.6

 
152.4

 
164.3

Net income (1)
21.7

 
33.4

 
32.9

 
38.2

Earnings per share — basic
0.34

 
0.52

 
0.52

 
0.60

Earnings per share —diluted
0.34

 
0.52

 
0.52

 
0.60


 
 
(1) Net income (loss) attributable to Hillenbrand
v3.10.0.1
Condensed Consolidating Information
12 Months Ended
Sep. 30, 2018
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

 
Year Ended September 30, 2018
 
Year Ended September 30, 2017
 
Year Ended September 30, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
937.0

 
$
1,052.9

 
$
(219.8
)
 
$
1,770.1

 
$

 
$
901.4


$
904.7


$
(215.9
)

$
1,590.2


$


$
846.8


$
892.8


$
(201.2
)

$
1,538.4

Cost of goods sold

 
497.1

 
743.1

 
(113.0
)
 
1,127.2

 

 
467.3


647.4


(115.8
)

998.9




428.7


638.4


(99.3
)

967.8

Gross profit

 
439.9

 
309.8

 
(106.8
)
 
642.9

 

 
434.1

 
257.3

 
(100.1
)
 
591.3




418.1


254.4


(101.9
)

570.6

Operating expenses
54.8

 
247.4

 
183.5

 
(106.8
)
 
378.9

 
42.4

 
237.8


164.3


(100.1
)

344.4


41.8


242.0


164.6


(101.9
)

346.5

Amortization expense

 
13.4

 
16.8

 

 
30.2

 

 
13.5

 
15.7

 

 
29.2

 

 
13.0

 
20.0

 

 
33.0

Impairment charge

 
63.4

 

 

 
63.4

 

 

















Interest expense
20.3

 
1.1

 
1.9

 

 
23.3

 
21.8

 


3.4




25.2


22.7


0.2


2.4




25.3

Other income (expense), net
2.1

 
(2.7
)
 

 

 
(0.6
)
 
(0.6
)
 
(3.4
)

(0.2
)



(4.2
)

(0.3
)

(2.2
)

0.8




(1.7
)
Equity in net income (loss) of subsidiaries
139.3

 
9.1

 

 
(148.4
)
 

 
164.4

 
8.2




(172.6
)



144.4


10.2




(154.6
)


Income (loss) before income taxes
66.3

 
121.0

 
107.6

 
(148.4
)
 
146.5

 
99.6

 
187.6


73.7


(172.6
)

188.3


79.6


170.9


68.2


(154.6
)

164.1

Income tax expense (benefit)
(10.3
)
 
48.3

 
27.3

 

 
65.3

 
(26.6
)
 
65.9


20.6




59.9


(33.2
)

62.4


18.1




47.3

Consolidated net income
76.6

 
72.7

 
80.3

 
(148.4
)
 
81.2

 
126.2

 
121.7


53.1


(172.6
)

128.4


112.8


108.5


50.1


(154.6
)

116.8

Less: Net income attributable to noncontrolling interests

 

 
4.6

 

 
4.6

 

 


2.2




2.2






4.0




4.0

Net income (loss)(1)
$
76.6

 
$
72.7

 
$
75.7

 
$
(148.4
)
 
$
76.6

 
$
126.2

 
$
121.7


$
50.9


$
(172.6
)

$
126.2


$
112.8


$
108.5


$
46.1


$
(154.6
)

$
112.8

Consolidated comprehensive income (loss)
$
73.6

 
$
77.1

 
$
72.1

 
$
(145.3
)
 
$
77.5

 
$
174.8

 
$
131.8


$
86.4


$
(215.8
)

$
177.2


$
90.9


$
116.4


$
33.1


$
(145.8
)

$
94.6

Less: Comprehensive income attributable to noncontrolling interests

 

 
3.9

 

 
3.9

 

 

 
2.4

 

 
2.4






3.7



 
3.7

Comprehensive income (loss)(2)
$
73.6

 
$
77.1

 
$
68.2

 
$
(145.3
)
 
$
73.6

 
$
174.8

 
$
131.8


$
84.0


$
(215.8
)

$
174.8


$
90.9


$
116.4


$
29.4


$
(145.8
)

$
90.9

 
(1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand
Condensed Consolidating Balance Sheets
 
 
September 30, 2018
 
September 30, 2017
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
1.1


$
5.8


$
49.1


$


$
56.0


$
0.1


$
4.9


$
61.0


$


$
66.0

Trade receivables, net


124.5


94.0




218.5




114.5


91.6




206.1

Receivables from long-term manufacturing contracts


5.3


115.0




120.3




8.5


116.7




125.2

Inventories


76.7


98.6


(2.8
)

172.5




68.2


85.9


(2.5
)

151.6

Prepaid expense
2.7


7.0


15.5




25.2


2.1


7.6


18.5




28.2

Intercompany receivables


1,131.1


79.1


(1,210.2
)





1,050.4


93.9


(1,144.3
)


Other current assets


3.2


14.6


0.3


18.1


0.2


1.6


14.4


0.3


16.5

Total current assets
3.8


1,353.6


465.9


(1,212.7
)

610.6


2.4


1,255.7


482.0


(1,146.5
)

593.6

Property, plant, and equipment, net
3.8


60.2


78.0




142.0


4.7


64.5


81.2




150.4

Intangible assets, net
3.2


196.0


288.1




487.3


3.6


211.3


309.0




523.9

Goodwill


225.0


356.9




581.9




283.9


363.6




647.5

Investment in consolidated subsidiaries
2,263.1


653.9




(2,917.0
)



2,298.0


664.1




(2,962.1
)


Other assets
15.7


28.2


5.9


(7.0
)

42.8


20.2


29.0


4.4


(12.5
)

41.1

Total Assets
$
2,289.6


$
2,516.9


$
1,194.8


$
(4,136.7
)

$
1,864.6


$
2,328.9


$
2,508.5


$
1,240.2


$
(4,121.1
)

$
1,956.5

 





























Trade accounts payable
$


$
62.4


$
134.4


$


$
196.8


$
1.0


$
36.7


$
120.0


$
0.3


$
158.0

Liabilities from long-term manufacturing contracts and advances


26.6


99.3




125.9




26.2


106.1




132.3

Current portion of long-term debt










18.0




0.8




18.8

Accrued compensation
7.2


20.1


44.6




71.9


7.6


17.9


41.4




66.9

Intercompany payables
1,206.2


6.1




(1,212.3
)



1,142.8


4.0




(1,146.8
)


Other current liabilities
19.4


38.9


78.1


0.7


137.1


14.0


42.2


79.3


0.2


135.7

Total current liabilities
1,232.8


154.1


356.4


(1,211.6
)

531.7


1,183.4


127.0


347.6


(1,146.3
)

511.7

Long-term debt
300.2




44.4




344.6


392.0




54.9




446.9

Accrued pension and postretirement healthcare
0.7


29.8


90.0




120.5


0.8


33.3


95.5




129.6

Deferred income taxes
0.7


22.9


60.9


(8.1
)

76.4




27.5


60.9


(12.7
)

75.7

Other long-term liabilities
24.1


14.3


8.9




47.3


1.3


15.3


10.1




26.7

Total Liabilities
1,558.5


221.1


560.6


(1,219.7
)

1,120.5


1,577.5


203.1


569.0


(1,159.0
)

1,190.6

Total Hillenbrand Shareholders’ Equity
731.1


2,295.8


621.2


(2,917.0
)

731.1


751.4


2,305.4


656.7


(2,962.1
)

751.4

Noncontrolling interests




13.0




13.0






14.5




14.5

Total Equity
731.1


2,295.8


634.2


(2,917.0
)

744.1


751.4


2,305.4


671.2


(2,962.1
)

765.9

Total Liabilities and Equity
$
2,289.6


$
2,516.9


$
1,194.8


$
(4,136.7
)

$
1,864.6


$
2,328.9


$
2,508.5


$
1,240.2


$
(4,121.1
)

$
1,956.5

Condensed Consolidating Statements of Cash Flows
 
 
Year Ended September 30, 2018
 
Year Ended September 30, 2017
 
Year Ended September 30, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
221.6


$
127.8


$
23.2


$
(124.3
)

$
248.3


$
79.9


$
126.7


$
168.3


$
(128.7
)

$
246.2


$
157.8


$
239.9


$
(49.5
)

$
(110.0
)

$
238.2

 












































Investing activities:












 














 














 

Capital expenditures
(1.7
)

(12.1
)

(13.2
)



(27.0
)

(0.7
)

(9.7
)

(11.6
)



(22.0
)

(2.6
)

(8.0
)

(10.6
)



(21.2
)
Proceeds from sales of property, plant, and equipment


3.4


0.3




3.7




5.3


0.4




5.7




1.6


0.4




2.0

Acquisition of business, net of cash acquired






















(130.4
)

(105.0
)



(235.4
)
Return of investment capital from affiliates

 

 

 

 

 
3.2

 

 

 

 
3.2

 
1.1

 

 

 

 
1.1

Other, net


0.1


0.1




0.2




(0.4
)





(0.4
)










Net cash provided by (used in) investing activities
(1.7
)

(8.6
)

(12.8
)



(23.1
)

2.5


(4.8
)

(11.2
)



(13.5
)

(1.5
)

(136.8
)

(115.2
)



(253.5
)
 












































Financing activities:












 














 














 

Repayments on term loan
(148.5
)







(148.5
)

(13.5
)







(13.5
)

(9.0
)







(9.0
)
Proceeds from revolving credit facility
583.9




510.1




1,094.0


289.5




529.8




819.3


375.5




344.3




719.8

Repayments on revolving credit facility
(548.3
)



(517.4
)



(1,065.7
)

(296.5
)



(656.5
)



(953.0
)

(457.5
)



(169.7
)



(627.2
)
Payment of dividends - intercompany


(118.3
)

(6.0
)

124.3






(122.6
)

(6.1
)

128.7






(104.6
)

(5.4
)

110.0



Payment of dividends on common stock
(52.1
)







(52.1
)

(51.9
)







(51.9
)

(51.1
)







(51.1
)
Repurchases of common stock
(61.0
)







(61.0
)

(28.0
)







(28.0
)

(21.2
)







(21.2
)
Net proceeds on stock plans
7.1








7.1


13.7








13.7


11.1








11.1

Other, net




(6.3
)



(6.3
)





(1.7
)



(1.7
)





(0.8
)



(0.8
)
Net cash (used in) provided by financing activities
(218.9
)

(118.3
)

(19.6
)

124.3


(232.5
)

(86.7
)

(122.6
)

(134.5
)

128.7


(215.1
)

(152.2
)

(104.6
)

168.4


110.0


21.6

 












































Effect of exchange rates on cash and cash equivalents




(2.7
)



(2.7
)





(3.6
)



(3.6
)





(2.6
)



(2.6
)
 












































Net cash flows
1.0


0.9


(11.9
)



(10.0
)

(4.3
)

(0.7
)

19.0




14.0


4.1


(1.5
)

1.1




3.7

Cash and equivalents at beginning of period
0.1


4.9


61.0




66.0


4.4


5.6


42.0




52.0


0.3


7.1


40.9




48.3

Cash and equivalents at end of period
$
1.1


$
5.8


$
49.1


$


$
56.0


$
0.1


$
4.9


$
61.0


$


$
66.0


$
4.4


$
5.6


$
42.0


$


$
52.0

v3.10.0.1
Restructuring
12 Months Ended
Sep. 30, 2018
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.

 
Year Ended September 30,
 
2018
 
2017
 
Cost of goods sold
 
Operating expenses
 
Total
 
Cost of goods sold
 
Operating expenses
 
Total
Process Equipment Group
$
0.3

 
$
0.4

 
$
0.7

 
$
0.5

 
$
1.4

 
$
1.9

Batesville
0.5

 
0.5

 
1.0

 
5.5

 

 
5.5

Corporate

 
0.4

 
0.4

 

 
2.1

 
2.1

Total
$
0.8

 
$
1.3

 
$
2.1

 
$
6.0

 
$
3.5

 
$
9.5



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.
v3.10.0.1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
12 Months Ended
Sep. 30, 2018
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
 
 
 
 
 
Additions
 
 
 
 
(in millions)
 
Balance at
Beginning
of Period
 
Charged to Revenue,
Costs, and
Expense
 
Charged to
Other
Accounts
 
Deductions
Net of
Recoveries (a)
 
Balance
at End
of Period
Allowance for doubtful accounts, early pay discounts, and sales returns:
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Year ended September 30, 2018
 
$
21.6

 
$
3.5

 
$
(0.1
)
 
$
(2.8
)
 
$
22.2

Year ended September 30, 2017
 
$
21.0

 
$
2.5

 
$
0.1

 
$
(2.0
)
 
$
21.6

Year ended September 30, 2016
 
$
20.0

 
$
3.7

 
$
0.4

 
$
(3.1
)
 
$
21.0

 
 
 
 
 
 
 
 
 
 
 
Allowance for inventory valuation:
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Year ended September 30, 2018
 
$
19.0

 
$
2.2

 
$
(0.4
)
 
$
(2.6
)
 
$
18.2

Year ended September 30, 2017
 
$
18.0

 
$
2.4

 
$
0.8

 
$
(2.2
)
 
$
19.0

Year ended September 30, 2016
 
$
14.8

 
$
4.3

 
$
0.6

 
$
(1.7
)
 
$
18.0

 
(a)   Reflects the write-off of specific receivables against recorded reserves and other adjustments.
v3.10.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Sep. 30, 2018
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. 
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.
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.
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.
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.
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.
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.
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.
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.
 
 
September 30, 2018
 
September 30, 2017
 
Cost
 
Accumulated
Amortization
 
Cost
 
Accumulated
Amortization
Finite-lived assets:
 

 
 

 
 

 
 

Trade names
$
0.2

 
$
(0.2
)
 
$
0.2

 
$
(0.1
)
Customer relationships
464.5

 
(148.4
)
 
468.7

 
(125.9
)
Technology, including patents
79.6

 
(45.1
)
 
80.7

 
(39.9
)
Software
58.0

 
(48.9
)
 
48.3

 
(41.5
)
Other
0.2

 
(0.2
)
 
0.2

 
(0.2
)
 
602.5

 
(242.8
)
 
598.1

 
(207.6
)
Indefinite-lived assets:
 

 
 

 
 

 
 

Trade names
127.6

 

 
133.4

 

 
 
 
 
 
 
 
 
Total
$
730.1

 
$
(242.8
)
 
$
731.5

 
$
(207.6
)


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
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.
 
Process
Equipment
Group
 
Batesville
 
Total
Balance September 30, 2016
$
626.0

 
$
8.3

 
$
634.3

Adjustments
(0.9
)
 

 
(0.9
)
Foreign currency adjustments
14.1

 

 
14.1

Balance September 30, 2017
639.2

 
8.3

 
647.5

Impairment charge
(58.8
)
 

 
(58.8
)
Foreign currency adjustments
(6.8
)
 

 
(6.8
)
Balance September 30, 2018
$
573.6

 
$
8.3

 
$
581.9



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.
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.
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.
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.
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.
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.
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.
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.
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.
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
Income taxes
Income taxes
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.
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.
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.
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.

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.

v3.10.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of inventories
 
September 30,
 
2018
 
2017
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

Schedule of carrying value of property, plant and equipment
 
September 30, 2018
 
September 30, 2017
 
Cost
 
Accumulated
Depreciation
 
Cost
 
Accumulated
Depreciation
Land and land improvements
$
15.0

 
$
(3.3
)
 
$
15.9

 
$
(3.5
)
Buildings and building equipment
102.3

 
(60.7
)
 
110.5

 
(68.0
)
Machinery and equipment
328.5

 
(239.8
)
 
335.8

 
(240.3
)
Total
$
445.8

 
$
(303.8
)
 
$
462.2

 
$
(311.8
)
Schedule of intangible assets and related amortization
 
September 30, 2018
 
September 30, 2017
 
Cost
 
Accumulated
Amortization
 
Cost
 
Accumulated
Amortization
Finite-lived assets:
 

 
 

 
 

 
 

Trade names
$
0.2

 
$
(0.2
)
 
$
0.2

 
$
(0.1
)
Customer relationships
464.5

 
(148.4
)
 
468.7

 
(125.9
)
Technology, including patents
79.6

 
(45.1
)
 
80.7

 
(39.9
)
Software
58.0

 
(48.9
)
 
48.3

 
(41.5
)
Other
0.2

 
(0.2
)
 
0.2

 
(0.2
)
 
602.5

 
(242.8
)
 
598.1

 
(207.6
)
Indefinite-lived assets:
 

 
 

 
 

 
 

Trade names
127.6

 

 
133.4

 

 
 
 
 
 
 
 
 
Total
$
730.1

 
$
(242.8
)
 
$
731.5

 
$
(207.6
)
Changes in the carrying amount of goodwill
 
Process
Equipment
Group
 
Batesville
 
Total
Balance September 30, 2016
$
626.0

 
$
8.3

 
$
634.3

Adjustments
(0.9
)
 

 
(0.9
)
Foreign currency adjustments
14.1

 

 
14.1

Balance September 30, 2017
639.2

 
8.3

 
647.5

Impairment charge
(58.8
)
 

 
(58.8
)
Foreign currency adjustments
(6.8
)
 

 
(6.8
)
Balance September 30, 2018
$
573.6

 
$
8.3

 
$
581.9

Schedule of changes in accumulated other comprehensive income (loss) by component
 
September 30,
 
2018
 
2017
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
)
v3.10.0.1
Financing Agreements (Tables)
12 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Schedule of borrowings under financing agreements
 
September 30,
 
2018
 
2017
$900 revolving credit facility (excluding outstanding letters of credit)
$
95.7

 
$
68.0

$180 term loan

 
148.5

$150 senior unsecured notes, net of discount (1)
149.3

 
148.9

$100 Series A Notes (2)
99.6

 
99.7

Other

 
0.6

Total debt
344.6

 
465.7

Less: current portion

 
18.8

Total long-term debt
$
344.6

 
$
446.9

 
 
 
 
(1) Includes debt issuance costs of $0.4 and $0.6 at September 30, 2018 and September 30, 2017.
(2) Includes debt issuance costs of $0.4 and $0.3 at September 30, 2018 and September 30, 2017.
Summary of scheduled maturities of long-term debt
The following table summarizes the scheduled maturities of long-term debt for 2019 through 2023:
 
 
Amount
2019
$

2020
150.0

2021

2022

2023
95.7

v3.10.0.1
Retirement Benefits (Tables)
12 Months Ended
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:
 
 
U.S. Pension Benefits
Year Ended September 30,
 
Non-U.S. Pension Benefits
Year Ended September 30,
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost
$
2.7

 
$
3.6

 
$
3.9

 
$
1.4

 
$
1.3

 
$
1.8

Interest cost
8.7

 
8.8

 
9.5

 
1.1

 
0.7

 
1.8

Expected return on plan assets
(14.0
)
 
(13.7
)
 
(9.7
)
 
(0.6
)
 
(0.5
)
 
(1.0
)
Amortization of unrecognized prior service cost, net
0.2

 
0.4

 
0.6

 
0.1

 
0.1

 
0.1

Amortization of actuarial loss
3.2

 
3.6

 
3.8

 
0.7

 
1.1

 
0.3

Settlement expense

 
0.1

 

 

 
0.6

 
0.5

Net pension costs
$
0.8

 
$
2.8

 
$
8.1

 
$
2.7

 
$
3.3

 
$
3.5

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: 

 
U.S. Pension Benefits
September 30,
 
Non-U.S. Pension Benefits
September 30,
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation:
 

 
 

 
 

 
 

Projected benefit obligation at beginning of year
$
281.8

 
$
294.2

 
$
133.4

 
$
140.9

Service cost
2.7

 
3.6

 
1.4

 
1.3

Interest cost
8.7

 
8.8

 
1.1

 
0.7

Actuarial (gain) loss
(14.7
)
 
(6.9
)
 
0.4

 
(9.5
)
Benefits paid
(11.5
)
 
(11.0
)
 
(5.2
)
 
(5.7
)
Gain due to settlement

 
(6.9
)
 
(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
267.0

 
281.8

 
126.3

 
133.4

 
 
 
 
 
 
 
 
Change in plan assets:
 

 
 

 
 

 
 

Fair value of plan assets at beginning of year
262.4

 
173.7

 
31.4

 
29.7

Actual return on plan assets
0.6

 
17.9

 
(0.1
)
 
0.3

Employee and employer contributions
1.8

 
81.8

 
9.0

 
8.5

Benefits paid
(11.5
)
 
(11.0
)
 
(5.2
)
 
(5.7
)
Gain due to settlement

 

 
(3.0
)
 
(1.6
)
Effect of exchange rates on plan assets

 

 
(0.2
)
 
0.2

Fair value of plan assets at end of year
253.3

 
262.4

 
31.9

 
31.4

 
 
 
 
 
 
 
 
Funded status:
 

 
 

 
 

 
 

Plan assets less than benefit obligations
$
(13.7
)
 
$
(19.4
)
 
$
(94.4
)
 
$
(102.0
)
 
 
 
 
 
 
 
 
Amounts recorded in the consolidated balance sheets:
 

 
 

 
 

 
 

Prepaid pension costs, non-current
$
12.0

 
$
8.2

 
$
2.2

 
$
0.4

Accrued pension costs, current portion
(2.0
)
 
(1.8
)
 
(6.6
)
 
(6.8
)
Accrued pension costs, long-term portion
(23.7
)
 
(25.8
)
 
(90.0
)
 
(95.6
)
Plan assets greater (less) than benefit obligations
$
(13.7
)
 
$
(19.4
)
 
$
(94.4
)
 
$
(102.0
)
Schedule of accumulated benefit obligation in excess of plan assets
Selected information for plans with accumulated benefit obligations in excess of plan assets was:
 
 
U.S. Pension Benefits
September 30,
 
Non-U.S. Pension Benefits
September 30,
 
2018
 
2017
 
2018
 
2017
Projected benefit obligation
$
25.7

 
$
27.7

 
$
96.6

 
$
102.0

Accumulated benefit obligation
25.7

 
27.6

 
96.6

 
102.0

Fair value of plan assets

 

 

 

Summary of actuarial assumptions
The weighted-average assumptions used in accounting for defined benefit retirement plans were:
 
 
U.S. Pension Benefits
Year Ended September 30,
 
Non-U.S. Pension Benefits
Year Ended September 30,
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rate for obligation, end of year
4.2
%
 
3.7
%
 
3.6
%
 
1.2
%
 
1.1
%
 
1.0
%
Discount rate for expense, during the year
3.4
%
 
3.5
%
 
4.4
%
 
1.5
%
 
0.5
%
 
1.7
%
Expected rate of return on plan assets
5.6
%
 
5.6
%
 
5.5
%
 
2.0
%
 
2.0
%
 
2.0
%
Rate of compensation increase
3.0
%
 
3.0
%
 
3.0
%
 
2.0
%
 
2.0
%
 
2.0
%
Schedule of fair value of pension plan assets by asset category
 
Fair Value at September 30, 2018 Using Inputs Considered as:
 
Total
 
Level 1
 
Level 2
 
Level 3
Non-U.S. Pension Plans
 

 
 

 
 

 
 

Cash equivalents
$
2.4

 
$
2.4

 
$

 
$

Equity securities
7.3

 
7.3

 

 

Other types of investments:
 
 
 
 
 
 
 
Government index funds
5.6

 
5.6

 

 

Corporate bond funds
12.1

 
12.1

 

 

Real estate and real estate funds
2.4

 

 

 
2.4

Other
2.1

 

 
2.1

 

Total Non-U.S. pension plan assets
$
31.9

 
$
27.4

 
$
2.1

 
$
2.4

 
 
Fair Value at September 30, 2017 Using Inputs Considered as:
 
Total
 
Level 1
 
Level 2
 
Level 3
Non-U.S. Pension Plans
 

 
 

 
 

 
 

Cash equivalents
$
5.2

 
$
5.2

 
$

 
$

Equity securities
6.8

 
6.8

 

 

Other types of investments:
0

 
0

 
0

 
0

Government index funds
5.7

 
5.7

 

 

Corporate bond funds
9.8

 
9.8

 

 

Real estate and real estate funds
2.0

 

 

 
2.0

Other
1.9

 

 
1.9

 

Total Non-U.S. pension plan assets
$
31.4

 
$
27.5

 
$
1.9

 
$
2.0

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:
 
 
U.S. Pension Plans
Projected Pension
Benefits Payout
 
Non-U.S. Pension Plans
Projected Pension
Benefits Payout
2019
$
14.0

 
$
7.7

2020
14.3

 
7.9

2021
15.0

 
7.2

2022
15.5

 
7.3

2023
16.0

 
7.3

2023 - 2027
83.8

 
33.6

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
 
September 30,
 
2018
 
2017
Benefit obligation at beginning of year
$
9.0

 
$
10.3

Interest cost
0.2

 
0.2

Service cost
0.3

 
0.4

Actuarial (gain) loss
(0.9
)
 
(0.9
)
Net benefits paid
(1.0
)
 
(1.0
)
Benefit obligation at end of year
$
7.6

 
$
9.0

 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Accrued postretirement benefits, current portion
$
0.8

 
$
0.8

Accrued postretirement benefits, long-term portion
6.8

 
8.2

Net amount recognized
$
7.6

 
$
9.0

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:
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Discount rate for obligation
4.0
%
 
3.3
%
 
3.1
%
Healthcare cost rate assumed for next year
7.1
%
 
7.6
%
 
7.3
%
Ultimate trend rate
4.5
%
 
4.5
%
 
4.5
%
v3.10.0.1
Other Long-Term Liabilities (Tables)
12 Months Ended
Sep. 30, 2018
Other Liabilities Disclosure [Abstract]  
Schedule of other long-term liabilities
 
September 30,
 
2018
 
2017
Transition Tax liability
$
24.6

 
$

Rabbi trust liability
4.3

 
4.3

Self-insurance loss reserves
11.2

 
14.3

Other
13.1

 
14.9

 
53.2

 
33.5

Less current portion
(5.9
)
 
(6.8
)
Total long-term portion
$
47.3

 
$
26.7

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Summary of components of earnings before income taxes and the consolidated income tax provision
 
Year Ended September 30,
 
2018
 
2017
 
2016
Domestic
$
33.7

 
$
108.2

 
$
99.3

Foreign
112.8

 
80.1

 
64.8

Total earnings before income taxes
$
146.5

 
$
188.3

 
$
164.1

 
 
 
 
 
 
Income tax expense:
 

 
 

 
 

Current provision:
 

 
 

 
 

Federal
$
38.2

 
$
0.5

 
$
28.9

State
6.7

 
(0.4
)
 
5.1

Foreign
16.7

 
22.7

 
18.0

Total current provision
61.6

 
22.8

 
52.0

 
 
 
 
 
 
Deferred provision (benefit):
 

 
 

 
 

Federal
(7.5
)
 
32.0

 
3.2

State
0.5

 
5.0

 
(0.7
)
Foreign
10.7

 
0.1

 
(7.2
)
Total deferred provision (benefit)
3.7

 
37.1

 
(4.7
)
Income tax expense
$
65.3

 
$
59.9

 
$
47.3

Schedule of reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate
 
Year Ended September 30,
 
2018
 
2017
 
2016
Federal statutory rates
24.5
 %
 
35.0
 %
 
35.0
 %
Adjustments resulting from the tax effect of:
 

 
 

 
 

State income taxes, net of federal benefit
2.4

 
1.6

 
2.0

Foreign income tax rate differential
(0.6
)
 
(5.8
)
 
(6.7
)
Domestic manufacturer’s deduction
(1.2
)
 
(0.3
)
 
(1.9
)
Share-based compensation
(1.6
)
 
(1.1
)
 
(1.5
)
Foreign distribution taxes
(1.7
)
 
2.7

 

Valuation allowance
(0.7
)
 
(1.3
)
 
1.7

Goodwill impairment charge
11.2

 

 

Transition tax
17.8

 

 

Deferred tax impact of rate change
(9.4
)
 

 

Unrecognized tax benefits
2.1

 

 

Other, net
1.8

 
1.0

 
0.2

Effective income tax rate
44.6
 %
 
31.8
 %
 
28.8
 %
Summary of deferred income tax balance sheet accounts
 
September 30,
 
2018
 
2017
Deferred tax assets:
 

 
 

Employee benefit accruals
$
29.0

 
$
46.0

Loss and tax credit carryforwards
37.3

 
43.7

Rebates and other discounts
4.4

 
5.8

Self-insurance reserves
2.5

 
4.6

Inventory, net
2.0

 
3.1

Other, net
8.5

 
12.6

Total deferred tax assets before valuation allowance
83.7

 
115.8

Less valuation allowance
(1.8
)
 
(3.1
)
Total deferred tax assets, net
81.9

 
112.7

Deferred tax liabilities:
 

 
 

Depreciation
(8.3
)
 
(11.6
)
Amortization
(105.3
)
 
(134.9
)
Long-term contracts and customer prepayments
(38.9
)
 
(28.9
)
Unremitted earnings of foreign operations
(0.5
)
 
(4.2
)
Other, net
(1.8
)
 
(5.1
)
Total deferred tax liabilities
(154.8
)
 
(184.7
)
Deferred tax liabilities, net
$
(72.9
)
 
$
(72.0
)
 
 
 
 
Amounts recorded in the balance sheets:
 

 
 

Deferred tax assets, non-current
3.5

 
3.7

Deferred tax liabilities, non-current
(76.4
)
 
(75.7
)
Total
$
(72.9
)
 
$
(72.0
)
Activity within the reserve for unrecognized tax benefits
A reconciliation of the unrecognized tax benefits is as follows:
 
September 30,
 
2018
 
2017
 
2016
Balance at September 30
$
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
)
 

Balance at September 30
$
12.1

 
$
9.9

 
$
7.7

v3.10.0.1
Earnings Per Share (Tables)
12 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Schedule of computation of basic and diluted earnings per share

 
Year Ended September 30,
 
2018
 
2017
 
2016
Net income(1)
$
76.6

 
$
126.2

 
$
112.8

Weighted average shares outstanding — basic (in millions)
63.1

 
63.6

 
63.3

Effect of dilutive stock options and unvested time-based
restricted stock (in millions)
0.7

 
0.4

 
0.5

Weighted average shares outstanding — diluted (in millions)
63.8

 
64.0

 
63.8

 


 


 


Earnings per share — basic
$
1.21

 
$
1.99

 
$
1.78

Earnings per share — diluted
$
1.20

 
$
1.97

 
$
1.77

 
 
 
 
 
 
Shares with anti-dilutive effect excluded from the computation
of diluted earnings per share (millions)
0.3

 
0.4

 
0.8

 
 
(1) Net income attributable to Hillenbrand
v3.10.0.1
Share-Based Compensation (Tables)
12 Months Ended
Sep. 30, 2018
Compensation Related Costs [Abstract]  
Schedule of stock-based compensation costs
 
Year Ended September 30,
 
2018
 
2017
 
2016
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

Summary of assumptions used in determining fair value of options
The following assumptions were used in the determination of fair value:
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Risk-free interest rate
2.4
%
 
1.9
%
 
0.5 - 2.2%

Weighted-average dividend yield
1.8
%
 
2.2
%
 
2.6
%
Weighted-average volatility factor
28.0
%
 
28.8
%
 
31.0
%
Exercise factor(1)
n/a

 
n/a

 
33.6
%
Post-vesting termination rate(1)
n/a

 
n/a

 
5.0
%
Expected life (years)
5.6

 
5.8

 
4.5


(1) Assumption only applicable to the binomial option-pricing model used in 2016

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:
 
 
Number
of Shares
 
Weighted-Average
Exercise Price
Outstanding at September 30, 2017
1,833,931

 
$
28.93

Granted
479,991

 
45.94

Exercised
(388,379
)
 
24.88

Forfeited
(56,532
)
 
33.56

Expired/cancelled
(754
)
 
38.96

Outstanding at September 30, 2018
1,868,257

 
$
33.84

 
 
 
 
Exercisable at September 30, 2018
1,050,458

 
$
28.31

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:
 
 
 
Number of Shares
 
Weighted-Average
Grant Date Fair Value
Time-Based Stock Awards 
 
 
Non-vested time-based stock awards at September 30, 2017
 
93,232

 
$
33.05

Granted
 
34,166

 
46.77

Vested
 
(28,810
)
 
32.27

Forfeited
 
(6,010
)
 
35.61

Non-vested time-based stock awards at September 30, 2018
 
92,578

 
$
38.19

Summary of outstanding performance-based units
 
 
Number of Shares
 
Weighted-Average
Grant Date Fair Value
Performance-Based Stock Awards 
 
 
Non-vested performance-based stock awards at September 30, 2017
 
608,633

 
$
35.80

Granted
 
237,617

 
53.35

Vested
 
(243,310
)
 
33.50

Forfeited
 
(122,805
)
 
34.74

Non-vested performance-based stock awards at September 30, 2018
 
480,135

 
$
45.93

v3.10.0.1
Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of changes in accumulated other comprehensive income (loss) by component
 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss) on
Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2016
$
(67.5
)
 
$
(61.6
)
 
$
(0.7
)
 
$
(129.8
)
 
 

 
 
Other comprehensive income before reclassifications
 
 
 
 
 
 
 

 
 

 
 
Before tax amount
28.1

 
24.7

 
3.2

 
56.0

 
$
0.2

 
$
56.2

Tax expense
(9.3
)
 

 
(1.2
)
 
(10.5
)
 

 
(10.5
)
After tax amount
18.8

 
24.7

 
2.0

 
45.5

 
0.2

 
45.7

Amounts reclassified from accumulated other comprehensive income(1)
3.4

 

 
(0.3
)
 
3.1

 

 
3.1

Net current period other comprehensive income (loss)
22.2

 
24.7

 
1.7

 
48.6

 
$
0.2

 
$
48.8

Balance at September 30, 2017
$
(45.3
)
 
$
(36.9
)
 
$
1.0

 
$
(81.2
)
 
 

 
 
 
 
(1)  Amounts are net of tax.
 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss) on
Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2017
$
(45.3
)
 
$
(36.9
)
 
$
1.0

 
$
(81.2
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 
 
 

 
 

Before tax amount
1.8

 
(7.2
)
 
1.8

 
(3.6
)
 
$
(0.7
)
 
$
(4.3
)
Tax expense
(0.5
)
 

 
(0.6
)
 
(1.1
)
 

 
(1.1
)
After tax amount
1.3

 
(7.2
)
 
1.2

 
(4.7
)
 
(0.7
)
 
(5.4
)
Amounts reclassified from accumulated other comprehensive income(1)
3.0

 

 
(1.3
)
 
1.7

 

 
1.7

Net current period other comprehensive income
4.3

 
(7.2
)
 
(0.1
)
 
(3.0
)
 
$
(0.7
)
 
$
(3.7
)
Balance at September 30, 2018
$
(41.0
)
 
$
(44.1
)
 
$
0.9

 
$
(84.2
)
 
 

 
 

 
 
(1)  Amounts are net of tax.
 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss) on
Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2015
$
(54.4
)
 
$
(52.1
)
 
$
(1.4
)
 
$
(107.9
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
(22.7
)
 
(9.5
)
 
0.2

 
(32.0
)
 
$
(0.3
)
 
$
(32.3
)
Tax benefit
6.5

 

 
0.1

 
6.6

 

 
6.6

After tax amount
(16.2
)
 
(9.5
)
 
0.3

 
(25.4
)
 
(0.3
)
 
(25.7
)
Amounts reclassified from accumulated other comprehensive income(1)
3.1

 

 
0.4

 
3.5

 

 
3.5

Net current period other comprehensive loss
(13.1
)
 
(9.5
)
 
0.7

 
(21.9
)
 
$
(0.3
)
 
$
(22.2
)
Balance at September 30, 2016
$
(67.5
)
 
$
(61.6
)
 
$
(0.7
)
 
$
(129.8
)
 
 

 
 

 
 
(1)  Amounts are net of tax.
Schedule of reclassifications out of accumulated other comprehensive income
Reclassifications out of Accumulated Other Comprehensive Income include:
 
 
Year Ended September 30, 2016
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Income:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.3

 
$
0.3

Cost of goods sold
3.0

 
0.3

 

 
3.3

Operating expenses
1.3

 
0.2

 

 
1.5

Other (expense) income, net

 

 
0.4

 
0.4

Total before tax
$
4.3

 
$
0.5

 
$
0.7

 
5.5

Tax expense
 

 
 

 
 

 
(2.0
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
3.5

 
 
(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:
 
 
Year Ended September 30, 2018
 
Amortization of Pension and 
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Income:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.5

 
$
0.5

Cost of goods sold
2.4

 
0.2

 
(0.1
)
 
2.5

Operating expenses
1.2

 

 

 
1.2

Other (expense) income, net

 

 
(2.3
)
 
(2.3
)
Total before tax
$
3.6

 
$
0.2

 
$
(1.9
)
 
1.9

Tax expense
 

 
 

 
 

 
(0.2
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
1.7

 
 
(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:
 
 
Year Ended September 30, 2017
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Income:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.1
)
 
$
(0.1
)
Cost of goods sold
3.2

 
0.3

 
(0.5
)
 
3.0

Operating expenses
1.4

 
0.1

 

 
1.5

Other (expense) income, net

 

 
0.1

 
0.1

Total before tax
$
4.6

 
$
0.4

 
$
(0.5
)
 
4.5

Tax expense
 

 
 

 
 

 
(1.4
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
3.1

 
 
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).
v3.10.0.1
Commitments and Contingencies (Tables)
12 Months Ended
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:
 
 
Amount
2019
$
20.4

2020
15.8

2021
14.2

2022
11.7

2023
8.5

Thereafter
33.7

 
$
104.3

v3.10.0.1
Other (Expense) Income, Net (Tables)
12 Months Ended
Sep. 30, 2018
Other Nonoperating Income (Expense) [Abstract]  
Other Income (Expense), Net
 
Year Ended September 30,
 
2018
 
2017
 
2016
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
)
v3.10.0.1
Fair Value Measurements (Tables)
12 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Schedule of financial assets and liabilities at carrying value and fair value and the level within the fair value hierarchy
 
Carrying
Value at
9/30/2018
 
Fair Value at September 30, 2018
 
 
Using Inputs Considered as:
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
56.0

 
$
56.0

 
$

 
$

Investments in rabbi trust
4.3

 
4.3

 

 

Derivative instruments
1.9

 

 
1.9

 

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.7

 
154.9

 

 

Revolving credit facility
95.7

 

 
95.7

 

$100 Series A Notes
100.0

 

 
102.4

 

Derivative instruments
2.2

 

 
2.2

 

 
 
Carrying
Value at
9/30/2017
 
Fair Value at September 30, 2017
 
 
Using Inputs Considered as:
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
66.0

 
$
66.0

 
$

 
$

Investments in rabbi trust
4.3

 
4.3

 

 

Derivative instruments
3.8

 

 
3.8

 

 


 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.5

 
161.2

 

 

Revolving credit facility
68.0

 

 
68.0

 

Term loan
148.5

 

 
148.5

 

$100 Series A Notes
100.0

 

 
106.7

 

Derivative instruments
2.3

 

 
2.3

 

v3.10.0.1
Segment and Geographical Information (Tables)
12 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
 
Year Ended September 30,
 
2018
 
2017
 
2016
Net revenue
 

 
 

 
 

Process Equipment Group
$
1,219.5

 
$
1,028.2

 
$
964.7

Batesville
550.6

 
562.0

 
573.7

Total net revenue
$
1,770.1

 
$
1,590.2

 
$
1,538.4

 
 
 
 
 
 
Adjusted EBITDA
 
 
 

 
 

Process Equipment Group
$
215.8

 
$
177.7

 
$
160.9

Batesville
120.8

 
141.9

 
143.5

Corporate
(42.3
)
 
(38.6
)
 
(37.3
)
 
 
 
 
 
 
Net revenue(1)
 
 
 

 
 

United States
$
926.4

 
$
896.1

 
$
857.0

Germany
512.5

 
425.6

 
403.0

All other foreign business units
331.2

 
268.5

 
278.4

Total revenue
$
1,770.1

 
$
1,590.2

 
$
1,538.4

 
 
 
 
 
 
Depreciation and amortization
 

 
 

 
 

Process Equipment Group
$
42.8

 
$
41.3

 
$
45.2

Batesville
11.9

 
13.8

 
14.1

Corporate
1.8

 
1.5

 
1.1

Total depreciation and amortization
$
56.5

 
$
56.6

 
$
60.4

 
 
(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.
Schedule of Assets from Segment and Long Lived Assets by Geographical Area
 
September 30,
 
2018
 
2017
Total assets assigned
 

 
 

Process Equipment Group
$
1,638.8

 
$
1,722.2

Batesville
191.8

 
203.4

Corporate
34.0

 
30.9

Total assets
$
1,864.6

 
$
1,956.5

 
 
 
 
Tangible long-lived assets, net
 
 
 

United States
$
76.6

 
$
84.4

Germany
40.7

 
39.0

All other foreign business units
24.7

 
27.0

Tangible long-lived assets, net
$
142.0

 
$
150.4

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.
 
 
Year Ended September 30,
 
2018
 
2017
 
2016
Adjusted EBITDA:
 

 
 

 
 

Process Equipment Group
$
215.8

 
$
177.7

 
$
160.9

Batesville
120.8

 
141.9

 
143.5

Corporate
(42.3
)
 
(38.6
)
 
(37.3
)
Less:
 

 
 

 
 

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

 

 
2.4

Restructuring and restructuring related
2.5

 
10.7

 
10.2

Impairment charges
63.4

 

 
2.2

Consolidated net income
$
81.2

 
$
128.4

 
$
116.8

v3.10.0.1
Unaudited Quarterly Financial Information (Tables)
12 Months Ended
Sep. 30, 2018
Quarterly Financial Information Disclosure [Abstract]  
Schedule of unaudited quarterly financial information
 
First
 Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
2018
 

 
 

 
 

 
 

Net revenue
$
397.2

 
$
452.2

 
$
446.0

 
$
474.7

Gross profit
146.3

 
168.7

 
163.7

 
164.2

Net income (loss) (1)
18.1

 
(21.9
)
 
35.9

 
44.5

Earnings per share — basic
0.28

 
(0.34
)
 
0.57

 
0.71

Earnings per share —diluted
0.28

 
(0.34
)
 
0.56

 
0.70

 
 
 
 
 
 
 
 
2017
 

 
 

 
 

 
 

Net revenue
$
356.1

 
$
395.3

 
$
395.9

 
$
442.9

Gross profit
126.0

 
148.6

 
152.4

 
164.3

Net income (1)
21.7

 
33.4

 
32.9

 
38.2

Earnings per share — basic
0.34

 
0.52

 
0.52

 
0.60

Earnings per share —diluted
0.34

 
0.52

 
0.52

 
0.60


 
 
(1) Net income (loss) attributable to Hillenbrand
v3.10.0.1
Condensed Consolidating Information (Tables)
12 Months Ended
Sep. 30, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule of condensed consolidating statements of income
Condensed Consolidating Statements of Income

 
Year Ended September 30, 2018
 
Year Ended September 30, 2017
 
Year Ended September 30, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
937.0

 
$
1,052.9

 
$
(219.8
)
 
$
1,770.1

 
$

 
$
901.4


$
904.7


$
(215.9
)

$
1,590.2


$


$
846.8


$
892.8


$
(201.2
)

$
1,538.4

Cost of goods sold

 
497.1

 
743.1

 
(113.0
)
 
1,127.2

 

 
467.3


647.4


(115.8
)

998.9




428.7


638.4


(99.3
)

967.8

Gross profit

 
439.9

 
309.8

 
(106.8
)
 
642.9

 

 
434.1

 
257.3

 
(100.1
)
 
591.3




418.1


254.4


(101.9
)

570.6

Operating expenses
54.8

 
247.4

 
183.5

 
(106.8
)
 
378.9

 
42.4

 
237.8


164.3


(100.1
)

344.4


41.8


242.0


164.6


(101.9
)

346.5

Amortization expense

 
13.4

 
16.8

 

 
30.2

 

 
13.5

 
15.7

 

 
29.2

 

 
13.0

 
20.0

 

 
33.0

Impairment charge

 
63.4

 

 

 
63.4

 

 

















Interest expense
20.3

 
1.1

 
1.9

 

 
23.3

 
21.8

 


3.4




25.2


22.7


0.2


2.4




25.3

Other income (expense), net
2.1

 
(2.7
)
 

 

 
(0.6
)
 
(0.6
)
 
(3.4
)

(0.2
)



(4.2
)

(0.3
)

(2.2
)

0.8




(1.7
)
Equity in net income (loss) of subsidiaries
139.3

 
9.1

 

 
(148.4
)
 

 
164.4

 
8.2




(172.6
)



144.4


10.2




(154.6
)


Income (loss) before income taxes
66.3

 
121.0

 
107.6

 
(148.4
)
 
146.5

 
99.6

 
187.6


73.7


(172.6
)

188.3


79.6


170.9


68.2


(154.6
)

164.1

Income tax expense (benefit)
(10.3
)
 
48.3

 
27.3

 

 
65.3

 
(26.6
)
 
65.9


20.6




59.9


(33.2
)

62.4


18.1




47.3

Consolidated net income
76.6

 
72.7

 
80.3

 
(148.4
)
 
81.2

 
126.2

 
121.7


53.1


(172.6
)

128.4


112.8


108.5


50.1


(154.6
)

116.8

Less: Net income attributable to noncontrolling interests

 

 
4.6

 

 
4.6

 

 


2.2




2.2






4.0




4.0

Net income (loss)(1)
$
76.6

 
$
72.7

 
$
75.7

 
$
(148.4
)
 
$
76.6

 
$
126.2

 
$
121.7


$
50.9


$
(172.6
)

$
126.2


$
112.8


$
108.5


$
46.1


$
(154.6
)

$
112.8

Consolidated comprehensive income (loss)
$
73.6

 
$
77.1

 
$
72.1

 
$
(145.3
)
 
$
77.5

 
$
174.8

 
$
131.8


$
86.4


$
(215.8
)

$
177.2


$
90.9


$
116.4


$
33.1


$
(145.8
)

$
94.6

Less: Comprehensive income attributable to noncontrolling interests

 

 
3.9

 

 
3.9

 

 

 
2.4

 

 
2.4






3.7



 
3.7

Comprehensive income (loss)(2)
$
73.6

 
$
77.1

 
$
68.2

 
$
(145.3
)
 
$
73.6

 
$
174.8

 
$
131.8


$
84.0


$
(215.8
)

$
174.8


$
90.9


$
116.4


$
29.4


$
(145.8
)

$
90.9

 
(1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand
Schedule of condensed consolidating balance sheets
Condensed Consolidating Balance Sheets
 
 
September 30, 2018
 
September 30, 2017
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
1.1


$
5.8


$
49.1


$


$
56.0


$
0.1


$
4.9


$
61.0


$


$
66.0

Trade receivables, net


124.5


94.0




218.5




114.5


91.6




206.1

Receivables from long-term manufacturing contracts


5.3


115.0




120.3




8.5


116.7




125.2

Inventories


76.7


98.6


(2.8
)

172.5




68.2


85.9


(2.5
)

151.6

Prepaid expense
2.7


7.0


15.5




25.2


2.1


7.6


18.5




28.2

Intercompany receivables


1,131.1


79.1


(1,210.2
)





1,050.4


93.9


(1,144.3
)


Other current assets


3.2


14.6


0.3


18.1


0.2


1.6


14.4


0.3


16.5

Total current assets
3.8


1,353.6


465.9


(1,212.7
)

610.6


2.4


1,255.7


482.0


(1,146.5
)

593.6

Property, plant, and equipment, net
3.8


60.2


78.0




142.0


4.7


64.5


81.2




150.4

Intangible assets, net
3.2


196.0


288.1




487.3


3.6


211.3


309.0




523.9

Goodwill


225.0


356.9




581.9




283.9


363.6




647.5

Investment in consolidated subsidiaries
2,263.1


653.9




(2,917.0
)



2,298.0


664.1




(2,962.1
)


Other assets
15.7


28.2


5.9


(7.0
)

42.8


20.2


29.0


4.4


(12.5
)

41.1

Total Assets
$
2,289.6


$
2,516.9


$
1,194.8


$
(4,136.7
)

$
1,864.6


$
2,328.9


$
2,508.5


$
1,240.2


$
(4,121.1
)

$
1,956.5

 





























Trade accounts payable
$


$
62.4


$
134.4


$


$
196.8


$
1.0


$
36.7


$
120.0


$
0.3


$
158.0

Liabilities from long-term manufacturing contracts and advances


26.6


99.3




125.9




26.2


106.1




132.3

Current portion of long-term debt










18.0




0.8




18.8

Accrued compensation
7.2


20.1


44.6




71.9


7.6


17.9


41.4




66.9

Intercompany payables
1,206.2


6.1




(1,212.3
)



1,142.8


4.0




(1,146.8
)


Other current liabilities
19.4


38.9


78.1


0.7


137.1


14.0


42.2


79.3


0.2


135.7

Total current liabilities
1,232.8


154.1


356.4


(1,211.6
)

531.7


1,183.4


127.0


347.6


(1,146.3
)

511.7

Long-term debt
300.2




44.4




344.6


392.0




54.9




446.9

Accrued pension and postretirement healthcare
0.7


29.8


90.0




120.5


0.8


33.3


95.5




129.6

Deferred income taxes
0.7


22.9


60.9


(8.1
)

76.4




27.5


60.9


(12.7
)

75.7

Other long-term liabilities
24.1


14.3


8.9




47.3


1.3


15.3


10.1




26.7

Total Liabilities
1,558.5


221.1


560.6


(1,219.7
)

1,120.5


1,577.5


203.1


569.0


(1,159.0
)

1,190.6

Total Hillenbrand Shareholders’ Equity
731.1


2,295.8


621.2


(2,917.0
)

731.1


751.4


2,305.4


656.7


(2,962.1
)

751.4

Noncontrolling interests




13.0




13.0






14.5




14.5

Total Equity
731.1


2,295.8


634.2


(2,917.0
)

744.1


751.4


2,305.4


671.2


(2,962.1
)

765.9

Total Liabilities and Equity
$
2,289.6


$
2,516.9


$
1,194.8


$
(4,136.7
)

$
1,864.6


$
2,328.9


$
2,508.5


$
1,240.2


$
(4,121.1
)

$
1,956.5

Schedule of condensed consolidating statements of cash flows
Condensed Consolidating Statements of Cash Flows
 
 
Year Ended September 30, 2018
 
Year Ended September 30, 2017
 
Year Ended September 30, 2016
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
221.6


$
127.8


$
23.2


$
(124.3
)

$
248.3


$
79.9


$
126.7


$
168.3


$
(128.7
)

$
246.2


$
157.8


$
239.9


$
(49.5
)

$
(110.0
)

$
238.2

 












































Investing activities:












 














 














 

Capital expenditures
(1.7
)

(12.1
)

(13.2
)



(27.0
)

(0.7
)

(9.7
)

(11.6
)



(22.0
)

(2.6
)

(8.0
)

(10.6
)



(21.2
)
Proceeds from sales of property, plant, and equipment


3.4


0.3




3.7




5.3


0.4




5.7




1.6


0.4




2.0

Acquisition of business, net of cash acquired






















(130.4
)

(105.0
)



(235.4
)
Return of investment capital from affiliates

 

 

 

 

 
3.2

 

 

 

 
3.2

 
1.1

 

 

 

 
1.1

Other, net


0.1


0.1




0.2




(0.4
)





(0.4
)










Net cash provided by (used in) investing activities
(1.7
)

(8.6
)

(12.8
)



(23.1
)

2.5


(4.8
)

(11.2
)



(13.5
)

(1.5
)

(136.8
)

(115.2
)



(253.5
)
 












































Financing activities:












 














 














 

Repayments on term loan
(148.5
)







(148.5
)

(13.5
)







(13.5
)

(9.0
)







(9.0
)
Proceeds from revolving credit facility
583.9




510.1




1,094.0


289.5




529.8




819.3


375.5




344.3




719.8

Repayments on revolving credit facility
(548.3
)



(517.4
)



(1,065.7
)

(296.5
)



(656.5
)



(953.0
)

(457.5
)



(169.7
)



(627.2
)
Payment of dividends - intercompany


(118.3
)

(6.0
)

124.3






(122.6
)

(6.1
)

128.7






(104.6
)

(5.4
)

110.0



Payment of dividends on common stock
(52.1
)







(52.1
)

(51.9
)







(51.9
)

(51.1
)







(51.1
)
Repurchases of common stock
(61.0
)







(61.0
)

(28.0
)







(28.0
)

(21.2
)







(21.2
)
Net proceeds on stock plans
7.1








7.1


13.7








13.7


11.1








11.1

Other, net




(6.3
)



(6.3
)





(1.7
)



(1.7
)





(0.8
)



(0.8
)
Net cash (used in) provided by financing activities
(218.9
)

(118.3
)

(19.6
)

124.3


(232.5
)

(86.7
)

(122.6
)

(134.5
)

128.7


(215.1
)

(152.2
)

(104.6
)

168.4


110.0


21.6

 












































Effect of exchange rates on cash and cash equivalents




(2.7
)



(2.7
)





(3.6
)



(3.6
)





(2.6
)



(2.6
)
 












































Net cash flows
1.0


0.9


(11.9
)



(10.0
)

(4.3
)

(0.7
)

19.0




14.0


4.1


(1.5
)

1.1




3.7

Cash and equivalents at beginning of period
0.1


4.9


61.0




66.0


4.4


5.6


42.0




52.0


0.3


7.1


40.9




48.3

Cash and equivalents at end of period
$
1.1


$
5.8


$
49.1


$


$
56.0


$
0.1


$
4.9


$
61.0


$


$
66.0


$
4.4


$
5.6


$
42.0


$


$
52.0

v3.10.0.1
Restructuring Restructuring (Tables)
12 Months Ended
Sep. 30, 2018
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.

 
Year Ended September 30,
 
2018
 
2017
 
Cost of goods sold
 
Operating expenses
 
Total
 
Cost of goods sold
 
Operating expenses
 
Total
Process Equipment Group
$
0.3

 
$
0.4

 
$
0.7

 
$
0.5

 
$
1.4

 
$
1.9

Batesville
0.5

 
0.5

 
1.0

 
5.5

 

 
5.5

Corporate

 
0.4

 
0.4

 

 
2.1

 
2.1

Total
$
0.8

 
$
1.3

 
$
2.1

 
$
6.0

 
$
3.5

 
$
9.5

v3.10.0.1
Description of the Business (Details)
12 Months Ended
Sep. 30, 2018
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 2
v3.10.0.1
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%
v3.10.0.1
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
v3.10.0.1
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    
v3.10.0.1
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      
v3.10.0.1
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    
v3.10.0.1
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          
v3.10.0.1
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  
v3.10.0.1
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            
v3.10.0.1
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        
v3.10.0.1
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  
v3.10.0.1
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  
v3.10.0.1
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  
v3.10.0.1
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
v3.10.0.1
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      
v3.10.0.1
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    
v3.10.0.1
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
[1] Net income attributable to Hillenbrand
v3.10.0.1
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    
v3.10.0.1
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)
v3.10.0.1
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
v3.10.0.1
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    
v3.10.0.1
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)
v3.10.0.1
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    
v3.10.0.1
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
v3.10.0.1
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
v3.10.0.1
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]
[1] Net income attributable to Hillenbrand
v3.10.0.1
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)  
[1] Net income attributable to Hillenbrand
[2] Comprehensive income attributable to Hillenbrand
v3.10.0.1
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)    
v3.10.0.1
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
v3.10.0.1
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
v3.10.0.1
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