HILL-ROM HOLDINGS, INC., 10-K filed on 11/12/2021
Annual Report
v3.21.2
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Sep. 30, 2021
Nov. 11, 2020
Mar. 31, 2020
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Sep. 30, 2021    
Document Transition Report false    
Entity File Number 1-6651    
Entity Registrant Name HILL-ROM HOLDINGS, INC.    
Entity Incorporation, State or Country Code IN    
Entity Tax Identification Number 35-1160484    
Entity Address, Address Line One 130 E. Randolph St. Suite 1000    
Entity Address, City or Town Chicago, IL    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60601    
City Area Code 312    
Local Phone Number 819-7200    
Title of 12(b) Security Common Stock, without par value    
Trading Symbol HRC    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 7.3
Entity Common Stock, Shares Outstanding   66,050,458  
Amendment Flag false    
Current Fiscal Year End Date --09-30    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000047518    
ICFR Auditor Attestation Flag true    
Document Information [Line Items]      
Document Period End Date Sep. 30, 2021    
v3.21.2
STATEMENTS OF CONSOLIDATED INCOME - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Income Statement [Abstract]      
Product sales and service $ 2,669.6 $ 2,571.2 $ 2,615.0
Rental revenue 349.1 309.8 292.3
Revenues 3,018.7 2,881.0 2,907.3
Cost of Net Revenue      
Total cost of net revenue (excludes acquisition-related intangible asset amortization) 1,282.4 1,259.9 1,330.7
Rental expenses 148.2 146.0 151.6
Cost of Revenue 1,430.6 1,405.9 1,482.3
Research and development expenses 144.9 136.5 139.5
Selling and administrative expenses 887.0 820.4 941.0
Acquisition-related intangible asset amortization 108.6 109.0 122.4
Special charges 47.4 41.5 28.4
Operating Profit 400.2 367.7 316.1
Interest expense (65.6) (74.0) (89.6)
Extinguishment of Debt, Amount     (3.3)
Gain (Loss) on Extinguishment of Debt, not included in Net Income   (15.6)  
Loss on extinguishment of debt (9.8) (15.6) (3.0)
Investment income (expense) and other, net (22.0) (6.9) (14.6)
Income Before Income Taxes 302.8 271.2 208.6
Income tax expense 54.3 48.2 56.4
Net Income 248.5 223.0 152.2
Net Income Attributable to Common Shareholders $ 248.5 $ 223.0 $ 152.2
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) $ 3.75 $ 3.35 $ 2.28
Diluted net income attributable to common shareholders per common share $ 3.72 $ 3.32 $ 2.25
Average Common Shares Outstanding - Basic (in shares) 66,204 66,631 66,772
Average Common Shares Outstanding - Diluted (in shares) 66,847 67,212 67,660
v3.21.2
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]      
Net Income $ 248.5 $ 223.0 $ 152.2
Other Comprehensive Income (Loss), net of tax:      
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax 17.9 (36.5) (10.4)
Foreign currency translation adjustment 9.0 34.7 (40.1)
Change in pension and postretirement defined benefit plans 17.3 4.1 (13.6)
Total Other Comprehensive Income (Loss), net of tax (44.2) (2.3) 64.1
Total Comprehensive Income $ 292.7 $ 225.3 $ 88.1
v3.21.2
CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2021
Sep. 30, 2020
Current Assets    
Cash and cash equivalents $ 271.8 $ 296,500,000
Accounts receivable, allowance 25.4 25.9
Trade accounts receivable, net of allowances of $25.4 and $25.9 as of September 30, 2021 and 2020 671.2 594,900,000
Inventory, Net 319.4 352,000,000.0
Other current assets 101.4 121,500,000
Total current assets 1,363.8 1,364,900,000
Property, plant and equipment 875.8 858,200,000
Less accumulated depreciation (587.7) (552,100,000)
Property, plant and equipment, net 288.1 306,100,000
Intangible assets:    
Goodwill 2,221.7 1,835,500,000
Other intangible assets and software, net 955.3 976,700,000
Deferred income taxes 32.4 32,900,000
Other assets 137.8 155,000,000.0
Total Assets 4,999.1 4,671,100,000
Current Liabilities    
Trade accounts payable 229.9 236,500,000
Short-term borrowings 235.7 222,300,000
Accrued compensation 182.3 144,900,000
Accrued product warranties 29.6 30,800,000
Accrued rebates 50.7 44,800,000
Deferred Revenue 112.7 110,100,000
Other current liabilities 150.3 162,800,000
Total current liabilities 991.2 952,200,000
Long-term debt 1,825.2 1,655,700,000
Accrued pension and postretirement benefits 73.8 89,300,000
Deferred income taxes 65.4 113,000,000.0
Other long-term liabilities 163.8 134,800,000
Total Liabilities $ 3,119.4 $ 2,945,000,000
Preferred stock, authorized (in shares) 1,000,000  
Common stock, authorized (in shares) 199,000,000  
Common stock, issued (in shares) 88,457,634  
Common Stock, Shares, Outstanding 65,893,802 66,640,832
Capital Stock:    
Common stock - without par value: Authorized - 199,000,000; Issued - 88,457,634 shares in 2017 and 2016 $ 4.4 $ 4,400,000
Additional paid-in capital 707.6 667,000,000.0
Retained earnings 2,315.9 2,132,200,000
Accumulated other comprehensive loss $ (136.0) $ (180,200,000)
Treasury Stock, Common, Shares 22,563,832 21,816,802
Treasury stock, common shares at cost: 22,563,832 as of September 30, 2021 and 21,816,802 as of September 30, 2020 $ 1,012.2 $ (897,300,000)
Total Shareholders’ Equity 1,879.7 1,726,100,000
Total Liabilities and Shareholders' Equity 4,999.1 4,671,100,000
Inventory, Net 319.4 352,000,000.0
Inventory, Finished Goods, Net of Reserves $ 153.7 $ 167,600,000
v3.21.2
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Operating Activities      
Net income $ 248,500,000 $ 223,000,000.0 $ 152,200,000
Depreciation and Amortization of PP&E and Software 77,200,000 69,800,000 72,400,000
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities:      
Acquisition-related intangible asset amortization 108,600,000 109,000,000.0 122,400,000
Amortization of Debt Issuance Costs and Discounts 3,700,000 4,000,000.0 7,100,000
Gain (Loss) on Extinguishment of Debt, not included in Net Income   (15,600,000)  
Loss on extinguishment of debt 9,800,000 15,600,000 3,000,000.0
Benefit for deferred income taxes (32,000,000.0) (19,000,000.0) (18,800,000)
Loss on disposal of property, equipment, intangible assets and impairments 400,000 2,700,000 3,400,000
Stock compensation 45,600,000 38,400,000 34,400,000
Other Operating Activities, Cash Flow Statement 24,300,000 27,100,000 28,300,000
Change in working capital excluding cash, current debt, acquisitions and dispositions:      
Trade accounts receivable (67,600,000) 71,300,000 (62,300,000)
Inventories 17,100,000 (91,800,000) (900,000)
Other current assets 24,400,000 (14,800,000) 15,700,000
Trade accounts payable 1,900,000 24,000,000.0 13,200,000
Accrued expenses and other liabilities 37,600,000 15,400,000 28,800,000
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net (23,400,000) 7,000,000.0 2,500,000
Net cash, cash equivalents and restricted cash provided by operating activities 476,100,000 481,700,000 401,400,000
Investing Activities      
Purchases of property, plant, equipment and software (92,100,000) (105,900,000) (73,400,000)
Proceeds on sale of property and equipment 2,400,000 2,500,000 2,900,000
Payments for acquisition of intangible assets (369,000,000.0) 28,400,000 (303,400,000)
Payments to Acquire Intangible Assets 30,000,000.0 0 17,100,000
Payments to Acquire Investments 0 0 26,600,000
Proceeds on sale of businesses 0 800,000 166,600,000
Other investing activities (1,500,000) (200,000) (2,000,000.0)
Net cash, cash equivalents and restricted cash used in investing activities (487,200,000) (131,200,000) (249,000,000.0)
Financing Activities      
Proceeds from borrowing on long-term debt 0 0 1,000,000,000
Payments of long-term debt (50,100,000) (50,100,000) (1,038,500,000)
Proceeds from Lines of Credit 870,000,000.0 190,000,000.0 420,000,000.0
Repayments of Lines of Credit (355,000,000.0) (270,000,000.0) (340,000,000.0)
Payments on Revolving Credit Facility 60,600,000 17,700,000 5,500,000
Borrowings on Securitization Facility (47,200,000) (45,500,000) (5,500,000)
Borrowings on Note Securitization Facility 91,300,000 32,600,000 68,900,000
Payments on Note Securitization Facility (91,300,000) (21,200,000) 62,700,000
Proceeds from Issuance of Unsecured Debt 0 0 425,000,000.0
Payment of debt issuance costs 0 0 (12,700,000)
Costs incurred related to amendment of facility (7,500,000) (12,200,000) 0
Repayments of Senior Debt (300,000,000.0) (425,000,000.0) 0
Cash dividends (62,000,000.0) (58,000,000.0) (55,400,000)
Proceeds on exercise of stock options 10,500,000 8,600,000 14,500,000
Payment, Tax Withholding, Share-based Payment Arrangement (9,500,000) (16,500,000) (4,700,000)
Stock repurchases for stock award withholding obligations (130,700,000) (54,100,000) (117,200,000)
Other financing activities 7,500,000 8,700,000 7,500,000
Net cash, cash equivalents and restricted cash (used in) provided by financing activities (13,400,000) (695,000,000.0) 304,700,000
Effect of exchange rate changes on cash, cash equivalents and restricted cash (200,000) 7,200,000 (6,300,000)
Net Cash Flows (24,700,000) (337,300,000) 450,800,000
Cash, Cash Equivalents and Restricted Cash:      
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents 271,800,000 296,500,000 633,800,000
Gain (Loss) on Sale of Assets and Asset Impairment Charges (400,000) (2,700,000) (3,400,000)
Other financing activities $ 7,500,000 $ 8,700,000 $ 7,500,000
v3.21.2
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY - USD ($)
Total
Accounting Standards Update 2014-09 [Member]
Accounting Standards Update 2016-06
Accounting Standards Update 2016-13
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Accounting Standards Update 2014-09 [Member]
Retained Earnings [Member]
Accounting Standards Update 2016-06
Retained Earnings [Member]
Accounting Standards Update 2018-02
Retained Earnings [Member]
Accounting Standards Update 2016-02 [Member]
Retained Earnings [Member]
Accounting Standards Update 2016-13
AOCI Attributable to Parent [Member]
AOCI Attributable to Parent [Member]
Accounting Standards Update 2018-02
AOCI Attributable to Parent [Member]
Accounting Standards Update 2016-02 [Member]
Treasury Stock [Member]
Accounting Standards Update 2014-09 [Member]
Retained Earnings [Member]
Common Stock, Shares, Issued         88,457,634                        
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest $ 1,616,200,000         $ 602,900,000 $ 1,876,200,000           $ (113,000,000.0)     $ (754,300,000)  
Stockholders' Equity Attributable to Parent                         (113,000,000.0)        
Other Comprehensive Income, Other, Net of Tax                         (64,100,000)   $ (5,400,000)    
Net Income 152,200,000           152,200,000                    
Other comprehensive income (loss) (64,100,000)                                
Dividends (55,400,000)         500,000 (55,900,000)                    
Payment, Tax Withholding, Share-based Payment Arrangement (4,700,000)                             (4,700,000)  
Payments for Repurchase of Common Stock 117,200,000                             117,200,000  
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 33,900,000         33,900,000                   22,700,000  
Stock Issued During Period, Value, Stock Options Exercised 14,500,000         2,600,000                   $ 11,900,000  
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures           (7,700,000)                      
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures                               7,700,000  
Stock Issued During Period, Value, Employee Stock Purchase Plan 8,400,000         5,200,000                   $ 3,200,000  
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted   (4.9) —                            
Common Stock, Shares, Issued         88,457,634                        
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest 1,573,300,000       $ 4,400,000 637,400,000 1,967,400,000           (182,500,000)     (853,400,000)  
Stockholders' Equity Attributable to Parent 4.9             $ (4,900,000) $ (5,600,000) $ 5,400,000 $ 5,400,000   (182,500,000)        
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification                   $ 5,400,000              
Net Income 223,000,000.0           223,000,000.0                    
Other comprehensive income (loss) 2,300,000                       2,300,000        
Dividends (58,000,000.0)         500,000 (58,500,000)                    
Payment, Tax Withholding, Share-based Payment Arrangement (16,500,000)                             (16,500,000)  
Payments for Repurchase of Common Stock 54,100,000                             54,100,000  
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 37,800,000         37,800,000                   26,700,000  
Stock Issued During Period, Value, Stock Options Exercised 8,600,000         2,900,000                   $ 5,700,000  
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures           (17,100,000)                      
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures                               17,100,000  
Stock Issued During Period, Value, Employee Stock Purchase Plan 9,400,000         5,500,000                   $ 3,900,000  
Cumulative Effect on Retained Earnings, Net of Tax 300,000                                
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted                                 0.3
Common Stock, Shares, Issued         88,457,634                        
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest 1,726,100,000       $ 4,400,000 667,000,000.0 2,132,200,000           (180,200,000)     (897,300,000)  
Stockholders' Equity Attributable to Parent 1,726,100,000                       (180,200,000) $ 2,300,000      
Net Income 248,500,000           248,500,000                    
Other comprehensive income (loss) 44,200,000                                
Dividends (62,000,000.0)         600,000 (62,600,000)                    
Payment, Tax Withholding, Share-based Payment Arrangement (9,500,000)                             (9,500,000)  
Payments for Repurchase of Common Stock 130,700,000                             (130,700,000)  
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture 44,500,000         44,500,000                   25,400,000  
Stock Issued During Period, Value, Stock Options Exercised 10,500,000         3,500,000                   $ 7,000,000.0  
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures           (14,500,000)                      
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures                               14,500,000  
Stock Issued During Period, Value, Employee Stock Purchase Plan $ 10,300,000         6,500,000                   $ 3,800,000  
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted       (2.2)                          
Common Stock, Shares, Issued 88,457,634       88,457,634                        
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest $ 1,879,700,000       $ 4,400,000 $ 707,600,000 $ 2,315,900,000           (136,000,000.0)     $ (1,012,200,000)  
Stockholders' Equity Attributable to Parent $ 1,879.7                     $ (2,200,000) $ (136,000,000.0) $ 44,200,000      
v3.21.2
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY (Parenthetical) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]      
Comprehensive loss, tax $ 10,700,000 $ (9,600,000) $ (7,000,000.0)
Common Stock, Dividends, Per Share, Cash Paid $ 0.94 $ 0.87 $ 0.83
Reclassification from AOCI, Current Period, Tax     $ 0.2
Stockholders' Equity Attributable to Parent $ 1,879.7 $ 1,726,100,000 4.9
Reclassification from AOCI, Current Period, Tax     0.2
Other Comprehensive Income (Loss), Tax $ (10,700,000) $ 9,600,000 $ 7,000,000.0
Common Stock, Dividends, Per Share, Cash Paid $ 0.94 $ 0.87 $ 0.83
Stockholders' Equity Attributable to Parent $ 1,879.7 $ 1,726,100,000 $ 4.9
Accounting Standards Update 2016-06 | Retained Earnings [Member]      
Statement of Stockholders' Equity [Abstract]      
Stockholders' Equity Attributable to Parent     (5,600,000)
Stockholders' Equity Attributable to Parent     (5,600,000)
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]      
Statement of Stockholders' Equity [Abstract]      
Reclassification from AOCI, Current Period, Tax     4,800,000
Stockholders' Equity Attributable to Parent     (4,900,000)
Reclassification from AOCI, Current Period, Tax     4,800,000
Stockholders' Equity Attributable to Parent     $ (4,900,000)
Accounting Standards Update 2016-13 | Retained Earnings [Member]      
Statement of Stockholders' Equity [Abstract]      
Reclassification from AOCI, Current Period, Tax 800,000    
Stockholders' Equity Attributable to Parent (2,200,000)    
Reclassification from AOCI, Current Period, Tax 800,000    
Stockholders' Equity Attributable to Parent $ (2,200,000)    
v3.21.2
Summary of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Nature of Operations

Hill-Rom Holdings, Inc. (the “Company,” “Hillrom,” “we,” “us,” or “our”) was incorporated on August 7, 1969, in the State of Indiana and is headquartered in Chicago, Illinois. We are a global medical technology leader whose approximately 10,000 employees have a single purpose: enhancing outcomes for patients and their caregivers by Advancing Connected Care™. Around the world, our innovations touch over 7 million patients each day. Our products and services help enable earlier diagnosis and treatment, optimize surgical efficiency and accelerate patient recovery while simplifying clinical communication and shifting care closer to home. We make these outcomes possible through digital and connected care solutions and collaboration tools, including smart bed systems, patient monitoring and diagnostic technologies, respiratory health devices, advanced equipment for the surgical space and more, delivering actionable, real-time insights at the point of care.

Basis of Presentation and Principles of Consolidation

The Consolidated Financial Statements include the accounts of Hillrom and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Where our ownership interest is less than 100%, the noncontrolling interests are reported in our Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to the current year presentation.

Prior Period Reclassification

During fiscal year ended September 30, 2020, we presented Acquisition-related intangible asset amortization as a separate line item on our Statements of Consolidated Income for all periods presented. Acquisition-related intangible asset amortization was previously included in Selling and administrative expenses. Additionally, we no longer present Gross Profit as a subtotal on our Statements of Consolidated Income.

The following table presents Acquisition-related intangible asset amortization and Selling and administrative expenses, excluding the Acquisition-related intangible asset amortization, for the fiscal year ended September 30, 2019.

(In millions)Year Ended September 30, 2019
Selling and administrative expense, previously reported$941.0 
Less: Acquisition-related intangible asset amortization(122.4)
Selling and administrative expense, currently reported$818.6 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense in the period. Actual results could differ from those estimates. Examples of such estimates include, but are not limited to, our allowance for doubtful accounts receivable, inventory reserves, accrued warranties, the impairment of intangible assets and goodwill, use of the spot yield curve approach for pension expense, income taxes and commitments and contingencies. See below for more information.
Proposed Acquisition by Baxter

On September 1, 2021, Hillrom, Baxter, and Merger Sub entered into the Merger Agreement, pursuant to which, on the terms and subject to the conditions set forth therein, Merger Sub will be merged with and into Hillrom, with Hillrom surviving the Merger as a wholly owned subsidiary of Baxter. Under the terms of the Merger Agreement, which has been unanimously approved by Hillrom’s Board of Directors, Baxter will acquire all outstanding shares of Hillrom for $156.00 per share in cash, for a total equity value of approximately $10.5 billion. The Merger is expected to close by early 2022, subject to receipt of specified regulatory approvals and other customary closing conditions.

Government Programs Related to COVID-19

On March 25, 2020, the U.S. government approved the Coronavirus Aid, Relief and Economic Security (“CARES”) Act to provide economic stimulus to address the impact of the pandemic. The governments in certain other non-U.S. countries have also approved legislation in their jurisdictions to address the impact of the pandemic. We evaluated our eligibility and assessed the conditions and requirements of participation in many programs. For the programs in which we elected to participate, we recognized $0.5 million and $3.2 million in government grants and cost abatements associated with state aid within the Statement of Consolidated Income for the fiscal years ended September 30, 2021 and 2020. In addition, we deferred the payment of the employer share of the U.S. Federal Insurance Contributions Act (“FICA”) tax totaling $21.7 million within the Consolidated Balance Sheet, of which $10.8 million must be repaid in both December 31, 2021 and December 31, 2022, respectively, in accordance with the CARES Act within the Consolidated Balance Sheet. We continue to evaluate what impact, if any, the CARES Act, or any similar legislation in other non-U.S. jurisdictions, may have on our results of operations.

Cash and Cash Equivalents

We consider deposits with banks as well as investments in marketable securities with original maturity of three months or less at date of purchase to be cash equivalents.
Trade Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest, unless the transaction is an installment sale with extended payment terms. Allowances for doubtful accounts are recorded as a component of Selling and administrative expenses and represent our best estimate of the amount of probable credit losses and collection risk in our existing accounts receivable. Receivables are generally reviewed for collectability based on historical collection experience for each receivable type and are also reviewed individually for collectability. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers.

Within rental revenue, domestic third-party payers’ reimbursement process requires extensive documentation, which has had the effect of slowing both the billing and cash collection cycles relative to the rest of the business, and therefore, increasing total accounts receivable. Because of the extensive documentation required and the requirement to settle a claim with the primary payer prior to billing the secondary and/or patient portion of the claim, the collection period for a claim in a portion of our business may, in some cases, be extended.

We generally hold our trade accounts receivable until they are paid. Certain long-term receivables are occasionally sold to third parties; however, any recognized gain or loss on such sales has historically not been material.

Inventories

During the fourth quarter of 2021, we changed our method of accounting for inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method for the remaining of our inventory that was valued using LIFO. We believe that this change in accounting is preferable as it will provide a consistent, uniform, costing method for all inventories across the Company, improves comparability with peers, and better reflects the current value of inventories at the balance sheet date. Prior consolidated financial statements have not been retrospectively adjusted due to immateriality. The cumulative pre-tax effect of
this change in accounting principle of approximately $6.8 million was recorded as an increase in Inventories, net of reserves and a decrease to Cost of goods sold for the fiscal year ended September 30, 2021.

Inventories consist of the following:
(In millions)Year Ended September 30
 20212020
Inventories, net of reserves:  
Finished products$153.7 $167.6 
Work in process53.3 48.4 
Raw materials112.4 136.0 
Total Inventories, net of reserves$319.4 $352.0 

We record reserves when the facts and circumstances indicate that particular inventories will not be sold at prices in excess of current carrying costs. These estimates are based on historical experience and expected future trends.

Property, Plant and Equipment

Property, plant and equipment is recorded at cost and depreciated over the estimated useful life of the assets using principally the straight-line method. Ranges of estimated useful lives are as follows:
 Useful Life
Land improvements6 - 15 years
Buildings and building equipment10 - 40 years
Machinery and equipment3 - 10 years
Equipment leased to others2 - 10 years

When property, plant and equipment is retired from service or otherwise disposed of, the cost and related amount of depreciation is eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds on sale are charged or credited to income.

Total depreciation expense during fiscal years ended September 30, 2021, 2020 and 2019 was $62.8 million, $60.6 million and $62.1 million. The major components of property, plant and equipment and the related accumulated depreciation were as follows:
(In millions)Year Ended September 30
 20212020
CostAccumulated
Depreciation		CostAccumulated
Depreciation
Land and land improvements$15.9 $4.8 $16.9 $4.4 
Buildings and building equipment210.4 105.0 208.2 95.4 
Machinery and equipment437.2 325.5 416.3 303.4 
Equipment leased to others212.3 152.4 216.8 148.9 
Total$875.8 $587.7 $858.2 $552.1 

Goodwill

Goodwill represents the excess of the purchase price paid over the estimated fair value of the net assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized, but is tested for impairment at least annually or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. See Note 4. Goodwill and Intangible Assets for further information.

Fair Value Measurements

Fair value measurements are classified and disclosed in one of the following three categories:
 
•Level 1: Financial instruments with unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.

•Level 2: Financial instruments with observable inputs other than those included in Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3: Financial instruments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs reflect our own assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include our own data.

We record cash and cash equivalents, as disclosed on our Consolidated Balance Sheets, as Level 1 instruments and certain other investments and derivatives as Level 2 instruments as they are not actively quoted. Refer to Note 5. Financing Agreements for disclosure of our debt instrument fair values.

Warranties and Guarantees

We routinely grant limited warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year; however, certain components and products have substantially longer warranty periods. We recognize a reserve with respect to these obligations at the time of product sale, with subsequent warranty claims recorded directly against the reserve. The amount of the warranty reserve is determined based on historical trend experience for the covered products. For more significant warranty-related matters, which might require a field corrective action, separate reserves are established when such events are identified and the cost of correction can be reasonably estimated.

In the normal course of business, we enter into various other guarantees and indemnities in our relationships with suppliers, service providers, customers, business partners and others. Examples of these arrangements would include guarantees of product performance, indemnifications to service providers and indemnifications of our actions to business partners. These guarantees and indemnifications have not historically had a material impact on our financial condition or results of operations, nor do we expect them to although indemnifications associated with our actions generally have no dollar limitations.

In conjunction with our acquisition and divestiture activities, we entered into select guarantees and indemnifications of performance with respect to the fulfillment of our commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. With respect to divestitures, we also routinely enter into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have an adverse impact on our Consolidated Financial Statements.

The following summarizes accrued product warranty activity for the fiscal years ended September 30, 2021 and 2020:
(In millions)Year Ended September 30
 20212020
Balance at the beginning of the period$30.8 $29.7 
Provision for warranties in the period22.5 18.3 
Warranty claims incurred in the period(23.8)(17.5)
Foreign currency translation adjustment0.1 0.3 
Balance at the end of the period$29.6 $30.8 

Accrued Rebates

We provide rebates and sales incentives to certain customer groups and distributors. We also have arrangements where we provide rebates to certain distributors that sell to end-user customers at prices determined under a contract between us and the end-user customer. Provisions for rebates are recorded as a reduction in net revenue when revenue is recognized.
Retirement Plans

We sponsor retirement and postretirement benefit plans covering certain employees. Expense recognized in relation to these defined benefit retirement and postretirement health care plans is based upon actuarial valuations and inherent in those valuations are key assumptions including discount and mortality rates, and where applicable, expected returns on assets, projected future salary rates and projected health care cost trends. The discount rates used in the valuation of our defined benefit pension and postretirement plans 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, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our obligations. Our overall expected long-term rate of return on pension assets 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. Our rate of assumed compensation increase is also based on our specific historical trends wage adjustments.

We account for our defined benefit pension and other postretirement plans by recognizing the funded status of a benefit plan in the balance sheet. We also recognize in Accumulated other comprehensive income (loss) certain gains and losses that arose in the period. See Note 8. Retirement and Postretirement Benefit Plans for key assumptions and further discussion related to our pension and postretirement plans.

Environmental Liabilities

Expenditures that relate to an existing environmental condition caused by past operations, and which do not contribute to 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 from third parties.

Specific costs included in environmental expense and reserves include site assessment, development of a remediation plan, clean-up costs, post-remediation expenditures, monitoring, fines, penalties and legal fees. Reserve amounts represent the expected undiscounted future cash outflows associated with such plans and actions.

Self-Insurance

We are generally self-insured up to certain stop-loss limits for certain employee health benefits, including medical, drug and dental. Our policy is to estimate reserves based upon several factors including known claims, estimated incurred but not reported claims and outside actuarial analysis, which are based on historical information along with certain assumptions about future events. Such estimated reserves are classified as Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. Refer to Note 15. Commitments and Contingencies for further information.

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. The difference between proceeds and the cost basis of the treasury stock is recorded to Additional paid-in capital.

Revenue Recognition — Sales and Rentals

Revenue is presented in the Consolidated Statements of Income net of sales discounts and allowances, GPO fees, price concessions, rebates and customer returns for products sales and rental revenue services.

Disaggregation of Revenue

The Company disaggregates revenue recognized from contracts with customers by geography and reportable segments consistent with the way in which management operates and views the business. See Note 14. Segment Reporting for the presentation of the Company's revenue disaggregation.

Performance Obligations & Transaction Price Determination

Revenue is recognized as performance obligations are satisfied, either at a point in time or over time, driven by the nature of the performance obligation that is contracted to be provided to our customers. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the contract. Revenue is measured as the
amount of consideration we expect to receive in exchange for satisfying the performance obligations. Certain of our contracts have multiple performance obligations. A contract’s transaction price is allocated to the distinct performance obligations and recognized as revenue when, or as, each performance obligation is satisfied. We allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract.

The majority of our product sales revenue is recognized at a point in time, primarily based on the transfer of title, except in circumstances where we are also required to install the equipment, for which revenue is recognized upon customer acceptance of the installation. Performance obligations involving the provision of services and revenue from rental usage of our products are recognized over the time period specified in the contractual arrangement with the customer.

Revenue is presented net of several types of variable consideration including rebates, discounts and product returns, which are estimated at the time of sale generally using the expected value method, although the most likely amount method is also used for certain types of variable consideration. These estimates take into consideration historical experience, current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns.

Deferred Contract Costs

Certain costs associated with obtaining or fulfilling a contract with a customer (collectively referred to as “deferred contract costs”) are capitalized until such time as the related performance obligations are completed and the related revenue is recognized. Deferred contract costs are recorded as Other current assets and Other assets.

Costs to obtain a contract are primarily comprised of sales commissions paid upon receipt of a purchase order for certain products, primarily care communications. Commissions are expensed commensurate with the timing of revenue recognition, which is generally 1 to 36 months.

Costs to fulfill a contract includes equipment, installation and other costs directly related to certain performance obligations not completed. These costs primarily relate to our care communications products and other construction projects that require installation or ongoing service maintenance. These costs are expensed commensurate with the timing of revenue recognition, which is generally 6 to 24 months.

The following table summarizes deferred contract cost balances for the fiscal year ended September 30, 2021:
(In millions)September 30, 2021
Ending BalanceAmortizationStatement of Consolidated Income Classification
Costs to obtain a contract
Other current assets$9.8 $(6.5)Selling and administrative expenses
Other assets2.5 — 
Costs to fulfill a contract
Other current assets$22.0 $(76.4)Cost of goods sold
Other assets6.0 — 
Contract Balances

Contract liabilities represent deferred revenues that arise as a result of cash received from customers at inception of contracts or where the timing of billing for services precedes satisfaction of our performance obligations. Such remaining performance obligations represent the portion of the contract price for which work has not been performed and are primarily related to our installation and service contracts. These contract liabilities are recorded in Deferred revenue and Other long-term liabilities. We expect to satisfy the majority of the remaining performance obligations and recognize revenue related to installation and service contracts within 6 to 24 months.

The nature of our products and services does not give rise to contract assets as we typically do not have instances where a right to payment for goods and services already transferred to a customer exists that is conditional on something other than the passage of time.
The contract liability balance represents the transaction price allocated to the remaining performance obligations. The following table summarizes contract liability activity for the fiscal year ended September 30, 2021.
(In millions)
Contract
Liabilities
Balance at the beginning of the period$138.1 
Deferred revenue acquired1.1 
New revenue deferrals543.4 
Revenue recognized upon satisfaction of performance obligations(546.5)
Foreign currency translation adjustment2.4 
Balance at the end of the period$138.5 
Accounting & Practical Expedient Elections
We account for shipping and handling activities as fulfillment costs within Cost of goods sold. These activities are not considered to be a separate performance obligation. Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between us and our customers, including but not limited to sales taxes, use taxes and value added taxes, are excluded from revenue and cost.

We adopted the significant financing practical expedient under which the impacts of financing are considered immaterial if the duration of the financing is one year or less. Customer payments are due at various times up to 90 days from the date of invoice, though in some countries and for certain customer types, credit terms are longer based on local industry standard.

Cost of Net Revenue

Cost of goods sold for product sales consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, overhead costs and costs associated with the distribution and delivery of products to our customers. Rental expenses consist of costs associated directly with rental revenue, including depreciation, maintenance, logistics and service center facility and personnel costs.

Research and Development Costs

Research and development costs relate primarily to internal costs for salaries and direct overhead expenses as well as the cost of outside vendors to conduct R&D activities. These costs are expensed as incurred. In addition, certain costs for software development technology held for sale are capitalized as intangibles when technological feasibility in the software is established and are amortized over a period of three years to five years once the software is ready for its intended use. The amounts capitalized during fiscal years ended September 30, 2021, 2020 and 2019 were approximately $10.1 million, $15.3 million and $8.0 million.

Comprehensive Income

We include the after-tax effect of unrealized gains or losses on interest and foreign currency hedges, foreign currency translation adjustments and pension or other defined benefit postretirement plans’ actuarial gains or losses and prior service costs or credits in Accumulated other comprehensive income (loss). See Note 9. Other Comprehensive Income of our Consolidated Financial Statements for further details.

Foreign Currency

The functional currency of foreign operations is generally the local currency in the country of domicile. Assets and liabilities of foreign operations are primarily translated into U.S. dollars at year-end rates of exchange and the income statements are translated at the average rates of exchange prevailing in the year. Adjustments resulting from translation of the financial statements of foreign operations into U.S. dollars are excluded from the determination of net income, but included as a component of Accumulated other comprehensive income (loss). Foreign currency gains and losses resulting from foreign currency transactions are included in our results of operations and are not material. Foreign currency movements on items designated as net investment hedges were recorded in Accumulated other comprehensive income (loss).
Stock-Based Compensation

We account for stock-based compensation under fair value provisions. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. We estimate forfeitures on stock-based compensation, which are based on historical and expected forfeiture rates. In order to determine the fair value of stock options on the date of grant, we utilize a Binomial model. In order to determine the fair value of other performance-based stock awards on the date of grant, we utilize a Monte Carlo model. Inherent in these models are assumptions related to a volatility factor, expected life, risk-free interest rate, dividend yield and expected forfeitures. The risk-free interest rate is based on factual data derived from public sources. The volatility factor, expected life, dividend yield and expected forfeiture assumptions require judgment utilizing historical information, peer data and future expectations. Restricted stock units (“RSUs”) are measured based on the fair market price of our common stock on the date of grant, as reported by the New York Stock Exchange, multiplied by the number of units granted. See Note 13. Common Stock for further details.

Income Taxes

Hillrom and its eligible subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. We have a variety of deferred tax assets in numerous tax jurisdictions which are computed using an asset and liability approach to reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. These deferred tax assets are subject to periodic assessment as to recoverability. If it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recognized. In evaluating whether it is more likely than not that we would recover these deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies are considered.

As of fiscal year ended September 30, 2021, we had valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to certain foreign deferred tax attributes that are not expected to be utilized. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances.

We account for uncertain income tax positions using a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The difference between the tax benefit recognized in the financial statements for an uncertain income tax position and the tax benefit claimed in the tax return is referred to as an unrecognized tax benefit. See Note 11. Income Taxes for further details.

Derivative Instruments and Hedging Activity

We use derivative financial instruments to manage the economic impact of fluctuations in currency exchange and interest rates. Derivative financial instruments related to currency exchange rates include forward purchase and sale agreements that generally have terms no greater than 12 months. Additionally, interest rate swaps and cross-currency interest rate swaps are sometimes used to convert some or all of our long-term debt to either a fixed or variable rate.

Derivative financial instruments are recognized in the Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in the Statement of Consolidated Income or the Statement of Consolidated Comprehensive Income (Loss), depending on whether a derivative is designated and considered effective as part of a hedge transaction, and if it is, the type of hedge transaction. The Company's derivatives are considered to be highly effective under hedge accounting principles. The Company does not hold or issue derivative financial instruments for speculative purposes. As a result of being effective, gains and losses on derivative instruments reported in Accumulated other comprehensive income (loss) are subsequently included in the Statement of Consolidated Income in the periods in which earnings are affected by the hedged item. These activities have not had a material effect on our Consolidated Financial Statements for the periods presented herein.
Recently Adopted Accounting Guidance

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and subsequently issued related amendments, collectively referred to as “ASC 842”. The objective of this guidance is to increase transparency and comparability among organizations through recognizing leased assets, called right-of-use assets (“ROU”), and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. As a lessee, the new standard requires us to recognize both the ROU assets and lease liabilities in the balance sheet for most leases, whereas under previous GAAP only finance lease liabilities (referred to as capital leases) were recognized in the balance sheet. In addition, for both lessees and lessors, the definition of a lease has been revised, which may result in changes to the classification of an arrangement as a lease. Under the new standard, an arrangement that conveys the right to control the use of an identified asset by obtaining substantially all of its economic benefits and directing how it is used is a lease, whereas the previous definition focused on the ability to control the use of the asset or to obtain its output. Quantitative and qualitative disclosures related to the amount, timing and judgments of an entity’s accounting for leases and the related cash flows are expanded under the new standard. Disclosure requirements apply to both lessees and lessors, whereas previous disclosures related only to lessees. The recognition, measurement, and presentation of revenues, expenses, and cash flows arising from a lease have not significantly changed from previous GAAP.

We adopted ASC 842 effective October 1, 2019 using the optional transition method approach. We elected the package of practical expedients, which applies to both lessees and lessors, to (1) not reassess whether existing contracts contain leases, (2) carryforward the existing lease classification, and (3) not reassess initial direct costs associated with existing leases.

As a lessee, the adoption of the guidance on October 1, 2019 resulted in the recognition of ROU assets of $82.5 million and lease liabilities of $85.8 million, which all related to operating leases. The ROU assets were lower than the lease liabilities due to the derecognition of deferred rent balances of $3.3 million. As a lessor, there was no impact as a result of the adoption. We did not recognize any adjustment to the comparative period presented in the financial statements in accordance with our adoption method. The guidance did not have a material impact on our Statements of Consolidated Income.

See Note 7. Leases for further information on the impacts of ASC 842.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard eliminates Step 2 of the goodwill impairment test and requires a goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. ASU 2017-04 is effective for our first quarter of fiscal 2021 and requires a prospective transition method. Early adoption is permitted. We early adopted this standard in the first quarter of fiscal year ended September 30, 2020 and the guidance did not have a material impact on our Consolidated Financial Statements.

In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. The purpose of the standard is to allow the use of the OIS rate based on the SOFR for hedge accounting purposes, which allows entities to designate changes in the fair values of fixed-rate financial assets or liabilities attributable to the OIS rate as the hedged risk.  The amendment recognizes the OIS rate based on the SOFR as likely London Interbank Offered Rate (“LIBOR”) replacements and supports the marketplace transition by adding the new reference rate as a benchmark rate. We adopted this standard in the first quarter of fiscal year ended September 30, 2020. The adoption of this ASU did not impact our financial statements as we have not yet utilized the OIS rate based on the SOFR for borrowings under our lending arrangements or as a benchmark rate for hedge accounting purposes. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The purpose of the standard is to provide guidance for the effects of the marketplace transition from LIBOR to a new reference rate as a benchmark rate.  ASU 2020-04 is optional and is effective for a limited period of time from March 12, 2020 through December 31, 2022. We will continue to monitor, assess, and plan for the phase out of LIBOR.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. We adopted the new standard in the first quarter of fiscal year ended September 30, 2019 using the modified retrospective approach. The cumulative effect of initially applying ASC 606 was an adjustment to decrease the opening Retained earnings by $4.9 million, which is net of a $4.8 million tax effect, as of October 1, 2018.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses of Financial Instruments and has subsequently issued related amendments, collectively referred to as “Topic 326”. Topic 326 requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses rather than incurred losses. This adoption primarily impacted our trade accounts receivables. Under the current expected credit loss model, we review receivables for collectability based on an assessment of various factors, including historical collection experience for each receivable type and expectations of forward-looking loss estimates, and individual receivables are also reviewed for collectability based on unique circumstances. Any adjustments made to our historical loss experience reflect current differences in asset-specific risk characteristics, including, customer type (public or government entity versus private entity) and geographic location of the customer. We adopted ASU 2016-13 in the first quarter of fiscal year ended September 30, 2021 using the modified retrospective transition method with a cumulative effect adjustment directly to retained earnings. The cumulative effect of applying Topic 326 was an increase to the allowance for credit losses of $3.0 million and deferred tax assets of $0.8 million with a corresponding decrease to the opening balance of Retained earnings of $2.2 million

In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This standard requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. We adopted ASU 2016-16 in the first quarter of fiscal 2019 using the modified retrospective approach with a cumulative effect adjustment directly to retained earnings. The cumulative effect of applying ASU 2016-16 was an adjustment to decrease prepaid taxes by $5.8 million and increase deferred tax assets by $0.2 million with a corresponding decrease to the opening balance of Retained earnings of $5.6 million.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220). The standard allows entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings. We adopted ASU 2018-02 in the first quarter of fiscal 2019. As a result of the adoption of ASU 2018-02, we reclassified $5.4 million from Accumulated other comprehensive income (loss) to Retained earnings. We applied the individual item approach for releasing income tax effects from Accumulated other comprehensive income (loss).

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The purpose of the standard is to improve the overall usefulness of fair value disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. ASU 2018-13 requires the application of the prospective method of transition (for only the most recent interim or annual period presented in the initial fiscal year of adoption) to the new disclosure requirements for (1) changes in unrealized gains and losses included in other comprehensive income and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 also requires prospective application to any modifications to disclosures made because of the change to the requirements for the narrative description of measurement uncertainty. The effects of all other amendments made by ASU 2018-13 must be applied retrospectively to all periods presented. We adopted ASU 2018-13 in the first quarter of fiscal year ended September 30, 2021. The adoption of ASU 2018-13 had no impact on our Consolidated Financial Statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The purpose of the standard is to improve the overall usefulness of defined benefit pension and other postretirement plan disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. We adopted ASU 2018-14 retrospectively in the fourth quarter of fiscal year ended September 30, 2021. The adoption had no material impact on our Consolidated Financial Statements as it modifies disclosure requirements only. See Note 8. Retirement and Postretirement Benefit Plans for further details.

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement to be consistent with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). We adopted ASU 2018-15 in the first quarter of fiscal year ended September 30, 2021 using the prospective transition method approach. The Company’s cloud computing hosting arrangements are primarily information technology agreements that support the Company’s operations and infrastructure. The adoption of ASU 2018-15 did not have a significant impact on our Consolidated Financial Statements.
In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. The purpose of the standard is to (1) clarify that transactions between participants in a collaborative agreement should be accounted for under Topic 606 and (2) add unit-of-account guidance in Topic 808 to align with Topic 606. We retrospectively adopted ASU 2018-18 in the first quarter of fiscal year ended September 30, 2021. The adoption of ASU 2018-18 had no impact on our Consolidated Financial Statements.

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2021- 01 is an extension of ASU 2020-04 disclosed in our 2020 Form 10-K. ASU 2021-01 clarifies the scope and guidance of Topic 848 and allows derivatives impacted by the changing of interest rates used for margin payments, discounting, or contract price alignment to qualify for certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting. ASU 2021-01 is optional and is effective for a limited period of time through December 31, 2022. As of September 30, 2021, this standard has no impact on our Consolidated Financial Statements. We will continue to monitor, assess and plan for the phase out of LIBOR.

Recently Issued Accounting Guidance

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The purpose of the standard is to remove certain exceptions to the general principles of Topic 740: Income Taxes in order to reduce the cost and complexity of its application and to maintain or improve the usefulness of the information provided to users of financial statements. ASU 2019-12 is effective for our first quarter of fiscal year end September 30, 2022 and will be applied either retrospectively or prospectively depending on the specific Topic 740 exception affected. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption on our Consolidated Financial Statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s Consolidated Financial Statements upon adoption.
v3.21.2
Acquisitions
 12 Months Ended
Sep. 30, 2021
Business Combinations [Abstract]  
Acquisitions Business Combinations
Business Acquisitions

Assets acquired and liabilities assumed in a business combination are recorded at their estimated fair values on the date of acquisition. The difference between the purchase price amount and the net fair value of assets acquired and liabilities assumed is recognized as goodwill on the balance sheet if the purchase price exceeds the estimated net fair value or as a bargain purchase gain on the income statement if the purchase price is less than the estimated net fair value. The allocation of the purchase price may be modified up to one year after the acquisition date as more information is obtained about the fair value of assets acquired and liabilities assumed.

During fiscal years ended September 30, 2021, 2020 and 2019, we acquired the following companies:
Fiscal YearCompany NameDescription of the BusinessDescription of the Acquisition
2021BardyDeveloper and supplier of cardiac arrhythmia monitoring devices located in the United States.Purchased all of the outstanding equity interest.
2020Excel MedicalClinical communications software company located in the United StatesPurchased all of the outstanding equity interest.
2020ConnectaClinical communications software company based in Mexico.Purchased the multiplatform medical device integration and connectivity software programs, products, and solutions of the company.
2020
Videomed 1
Developer of integrated video solutions in operating rooms located in Italy.Purchased all of the outstanding equity interest.
2019VoalteClinical communications software company located in the United States.Purchased all of the outstanding equity interest.
2019BreatheDeveloper and manufacturer of a patented wearable, non-invasive ventilation technology that supports improved patient mobility, which is located in the United States.Purchased all of the outstanding equity interest.
1 On July 21, 2020, we acquired the remaining 74% outstanding equity interest in Videomed for total aggregate consideration of $10.7 million. As a result of the transaction, the previously held 26% equity investment was adjusted to reflect the fair value as of the acquisition date and a gain of $3.0 million was recognized in Investment income (expense) and other, net for the fiscal year ended September 30, 2020. The fair value of the previously held equity investment was estimated using the discounted cash flow method of the income approach that incorporated a discount for the lack of marketability.

The following tables summarize additional details for each acquisition that closed during fiscal years ended September 30, 2021, 2020, and 2019:
(In millions)Company Name
Bardy
Acquisition Details:
Date of acquisitionAugust 6, 2021
Cash paid$369.0 
Contingent consideration 1
65.2 
Total consideration 2
$434.2 
Contingent consideration payable based upon mid-point of commercial milestones: 3
$130.5 
Segment information:Front Line Care
The following summarizes the fair value of assets acquired and liabilities assumed for each fiscal 2021 acquisition: 4
Trade accounts receivable$10.4 
Inventories4.5 
Other current assets0.3 
Property, plant and equipment2.3 
Goodwill 5
383.8 
Developed technology 6
10.0 
Trade name6
5.0 
Customer relationships6
2.0 
Other assets31.5 
Trade accounts payable(4.1)
Deferred revenue(1.1)
Other current liabilities(5.6)
Other long-term liabilities(4.8)
Total purchase price, net of cash acquired$434.2 
Acquisition costs for the fiscal year ended September 30, 2021:
Acquisition and integration costs recognized in Selling and administrative expenses7
$24.4 
Indemnity claim settlement recognized in Investment income (expense) and other, net8
$32.5 
1 This amount represents the fair value of the contingent consideration on the acquisition date. The fair value adjustment related to Bardy contingent consideration subsequent to acquisition was not significant for the fiscal year ended September 30, 2021.


2 The purchase price for the fiscal year ended September 30, 2021 acquisitions are subject to post-closing adjustments. The impact to reported revenue and net income in fiscal 2021 was not significant.
3 The contingent consideration will be payable if commercial milestones defined in the merger agreement are achieved within the first two calendar years starting with the calendar year in which the transaction is closed. The contingent consideration payable for the first calendar year in which the transaction closes will equal (i) 50% of the revenue generated if less than $45.0 million, (ii) 100% of the revenue generated if such revenue is between $45.0 million and $57.0 million, and (iii) 150% of revenue generated if greater than $57.0 million during calendar year 2021. The contingent consideration payable for the second calendar year will equal (i) 50% of the revenue generated if such revenue is less than $70.0 million, (ii) 100% of the revenue generated if such revenue is between $70.0 million and $89.0 million, and (iii) 125% of the revenue generated if such revenue is greater than $89.0 million during the calendar year 2022.

In order to determine the fair value of the contingent consideration, we utilize a Monte Carlo model. Inherent in this model is an assumption related to revenue growth rate.
4 The fair values of assets acquired and liabilities assumed are still considered to be preliminary. The values reflect net working capital and fair value adjustments as of the fiscal year ended September 30, 2021. We do not expect further adjustments to be significant.
5 Goodwill recognized reflect the value associated with enhancing synergies and accelerating our leadership in ambulatory cardiac monitoring technologies and custom data solutions. Goodwill in connection with the Bardy acquisition is not deductible for tax purposes in the United States.
6 Useful lives for the acquired intangible assets range from 8 years to 13 years.
7 Acquisition and integration costs include legal and professional fees, consulting and other costs related to the closing and integration of Bardy.
  8 On January 29, 2021, the Medicare Administrative Contractor, Novitas Solutions ("Novitas"), published newly established, Category 1 reimbursement rates applicable to the Current Procedural Terminology ("CPT") codes 93241, 93243, 93245 and 93247 for the extended holter cardiac monitoring category. As a result of the unexpected Novitas reimbursement rate reduction, on February 21, 2021, Hillrom asserted that a "Company Material Adverse Effect" occurred, and therefore the closing conditions were not satisfied. On February 28, 2021, Bardy filed a complaint against Hillrom in the Court of Chancery of the State of Delaware seeking, among other things, specific performance to compel Hillrom to close the transaction. Following a trial conducted during May 5-7, 2021, on July 9, 2021, the Court of Chancery of the State of Delaware ordered Hillrom to proceed with the closing of the Bardy Transaction, denying Hillrom’s claim of a "Company Material Adverse Effect". The litigation expenses related to the court proceedings are included in Selling and administrative expenses and the settlement payments of (i) $24.1 million related to an indemnity claim settlement payment and (ii) $8.4 million in related to accrued interest, subject to further adjustments as set forth under the terms of the merger agreement are included in Investment income (expense) and other, net for the fiscal year ended September 30, 2021.
(In millions)Company Name

Excel Medical
Connecta		Videomed
Acquisition Details:
Date of acquisitionJanuary 10, 2020May 18, 2020July 21, 2020
Cash paid$13.1 $7.5 $7.8 
Contingent consideration 6.1 0.2 2.9 
Total consideration 1
$19.2 $7.7 $10.7 
Contingent consideration payable up to: 2
$15.0 $4.0 $3.7 
Segment information:Patient Support
Systems		Front Line CareSurgical Solutions
The following summarizes the fair value of assets acquired and liabilities assumed for each fiscal 2020 acquisition:
Trade accounts receivable$0.6 $— $2.5 
Inventories0.2 — 0.9 
Other current assets0.1 — 0.2 
Goodwill 3
9.9 4.8 10.1 
Developed technology 4
10.9 2.9 4.4 
Other assets0.1 — 0.6 
Trade accounts payable— — (1.2)
Deferred revenue(2.1)— (0.2)
Other current liabilities(0.5)— (1.2)
Other long-term liabilities— — (2.4)
Fair value of assets acquired and liabilities assumed19.2 7.7 13.7 
Less: Fair value adjustment of previously held investment — — (3.0)
Total purchase price, net of cash acquired$19.2 $7.7 $10.7 
Acquisition costs for the fiscal year ended September 30, 2021
Acquisition and integration costs recognized in Selling and administrative expenses 5
$(3.8)$(0.1)$0.3 
Acquisition costs for the fiscal year ended September 30, 2020:
Acquisition and integration costs recognized in Selling and administrative expenses 5
$2.2 $0.3 $0.4 
1 The purchase price for the fiscal year ended September 30, 2020 acquisitions are considered final.


2 The contingent consideration will be payable if commercial milestones defined in the sale and purchase agreements are achieved within the specified time period following the date of the acquisition. For Excel Medical, Connecta and Videomed, the specified time periods are 2 years, 3.5 years and 2 years.


3 Goodwill recognized in our acquisitions is attributable to the following:
Excel Medical - Accelerating our leadership in care communications platform and advancing our digital and mobile communications platform and capabilities.
Connecta - Advancing connected care in Mexico as well as creating lower cost opportunities to expand to other emerging markets.
Videomed - Expanding our operating room integration platform and our market leadership in advancing connected care.

Goodwill in connection with the Excel Medical and Connecta acquisitions is deductible for tax purposes in the United States. Goodwill for the Videomed acquisition is not deductible for tax purposes in Italy.
4 Useful lives for the acquired developed technology intangible assets range from 5 years to 10 years.
5 Acquisition and integration costs recognized for Excel Medical during fiscal year ended September 30, 2021 and 2020 include a gain of $3.9 million and expense of $1.4 million related to fair value adjustments to contingent consideration. The reduction in the contingent consideration obligation is due to the reduced likelihood of certain milestones being met. The fair value adjustment related to Connecta and Videomed contingent consideration were not significant for the fiscal year ended September 30, 2021 and 2020. During fiscal year ended September 30, 2021, we paid $2.0 million in cash as contingent consideration associated with the acquisition of Excel Medical.
 (In millions)Company Name

Voalte
Breathe
Acquisition Details:
Date of acquisitionApril 1, 2019September 3, 2019
Cash paid$175.8 $127.6 
Contingent consideration 5.2 — 
Total consideration $181.0 $127.6 
Contingent consideration payable up to: 2
$15.0 $— 
Segment information:Patient Support
Systems		Front Line Care
Acquisition costs for the fiscal year ended September 30, 2021:
Acquisition and integration costs recognized in Selling and administrative expenses 1
$0.4 $0.3 
Acquisition and integration costs recognized in Special charges
— — 
Acquisition costs for the fiscal year ended September 30, 2020:
Acquisition and integration costs recognized in Selling and administrative expenses 1
$(8.4)$2.5 
Acquisition and integration costs recognized in Special charges
— 3.1 
Acquisition costs for the fiscal year ended September 30, 2019:
Acquisition and integration costs recognized in Selling and administrative expenses 1
$12.1 $6.4 
Acquisition and integration costs recognized in Special charges
— 1.7 
1 There were no acquisition and integration costs recognized related to fair value adjustments of contingent consideration related to Voalte during fiscal year ended September 30, 2021. Acquisition and integration costs recognized during fiscal year ended September 30, 2020 and 2019 include a gain of $8.4 million and expense of $3.2 million related to fair value adjustments to contingent consideration. Hillrom did not pay any contingent consideration as the commercial milestones were not met within 1 year of the acquisition date.

Proposed Acquisition by Baxter

See Note 1. Summary of Significant Accounting Policies for further information.

Epiphany Cardiography Products, LLC

On November 4, 2021, we closed on the acquisition of Epiphany Cardiography Products, LLC (“Epiphany”), a company that offers an interoperable connectivity solution capable of supporting more than 260 unique devices from more than 80 manufacturers and integrating across all major Electronic Medical Record (EMR) vendors. Purchase consideration was $38.0 million, subject to certain post-closing adjustments. The results of Epiphany will be included in the Front Line Care segment from the date of acquisition. It is not practical to disclose the preliminary purchase price allocation for this transaction given the short period of time between the acquisition date and the filing of this report.

Asset Acquisitions

On January 28, 2021, we acquired the contact-free continuous monitoring intellectual property and technology from EarlySense in exchange for cash of $30.0 million, a portion of our non-marketable equity investment in EarlySense of $25.5 million at cost and forgiveness of a prepayment of approximately $1.8 million. The investment was transferred to EarlySense on April 27, 2021 after certain conditions outlined in the purchase agreement were satisfied. Additionally, contingent consideration of up to $10.0 million will be payable if commercial milestones defined in the purchase agreement are achieved through September 2023.
The value of the acquired intangible asset recorded upon close of the transaction was $59.4 million, which included estimated contingent consideration of $2.4 million. The intangible asset acquired is presented in Other intangible assets and software, net and is amortized over the expected useful life of the technology of 8 years. The liability for the contingent consideration is included in Other long-term liabilities. Revenues generated from this asset acquisition are recorded within the Patient Support Systems segment.

On October 1, 2018, we acquired the right to use patented technology and certain related assets from a supplier to our Front Line Care segment. We paid $17.1 million of cash and committed to guaranteed minimum future royalty payments of $22.0 million, which are presented in Other intangible assets and software, net and are being amortized over the 7-year term of the agreement.

Dispositions

On August 2, 2019, we completed a disposition to sell certain of our surgical consumable products and related assets for a purchase price of $166.6 million, which is net of cash and working capital adjustments. During fiscal year ended September 30, 2019, we recorded a pre-tax loss on this disposition of $15.9 million, including transaction costs of $4.0 million, in Investment income (expense) and other, net. During fiscal year ended September 30, 2020, we recorded an additional loss of $4.2 million related to this transaction primarily due to income taxes. This disposition did not have a significant effect on our operations or financial results, and, therefore, has not been reported as a discontinued operation.
v3.21.2
Goodwill and Indefinite-Lived Intangible Assets
 12 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Indefinite-Lived Intangible Assets Goodwill and Intangible Assets
Goodwill

As discussed in Note 14. Segment Reporting, we operate in three reportable business segments. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded and is reallocated as necessary based on the composition of reporting units over time. Once goodwill is assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill.

The following summarizes goodwill activity by reportable segment:
(In millions)Patient Support SystemsFront Line CareSurgical Solutions Total
Balances as of September 30, 2019
Goodwill$640.5 $1,424.7 $208.5 $2,273.7 
Accumulated impairment losses(472.8)— — (472.8)
Goodwill, net as of September 30, 2019167.7 1,424.7 208.5 1,800.9 
Changes in Goodwill in the period:
Goodwill related to acquisitions10.6 4.4 10.0 25.0 
Currency translation effect2.4 3.5 3.7 9.6 
Balances as of September 30, 2020
Goodwill653.5 1,432.6 222.2 2,308.3 
Accumulated impairment losses(472.8)— — (472.8)
Goodwill, net as of September 30, 2020180.7 1,432.6 222.2 1,835.5 
Changes in Goodwill in the period:    
Goodwill related to acquisitions (0.6)383.8 0.1 383.3 
Currency translation effect(0.8)3.9 (0.2)2.9 
Balances as of September 30, 2021    
Goodwill652.1 1,820.3 222.1 2,694.5 
Accumulated impairment losses(472.8)— — (472.8)
Goodwill, net as of September 30, 2021$179.3 $1,820.3 $222.1 $2,221.7 

Testing for goodwill is performed annually, or on an interim basis upon the occurrence of a triggering event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The annual evaluation of goodwill for impairment was performed as of April 30, 2021 and did not result in any impairment.
The below table summarizes our changes in goodwill related to the acquisitions that occurred during fiscal years ended September 30, 2021, 2020 and 2019. Refer to Note 3. Business Combinations for further information regarding these acquisitions.
 Company Name

Voalte		.
Breathe
Excel Medical
Connecta		Videomed

Bardy
Date of AcquisitionApril 1,
2019		September 3, 2019January 10, 2020May 18,
2020		July 21,
 2020		August 6, 2021
Segment assigned GoodwillPatient Support Systems Front Line CarePatient Support SystemsFront Line CareSurgical SolutionFront Line Care
Percentage of Goodwill assigned to segment100%100%100%100%100%100%

For the fiscal year ended September 30, 2019, we completed a disposition to sell certain of our surgical consumable products and related assets. All goodwill associated with this disposition was included in our Surgical Solutions segment. Refer to Note 3. Business Combinations for further information.
Intangible Assets

Intangible assets are stated at cost and consist predominantly of software, patents, acquired technology, trademarks, trade names and acquired customer relationship assets. With the exception of certain indefinite-lived trade names, our intangible assets are amortized on a straight-line basis over periods generally ranging from 1 to 20 years and our capitalized software costs are amortized on a straight-line basis over periods ranging from 3 to 10 years.

Many of our intangible assets are not deductible for income tax purposes. A summary of intangible assets and the related accumulated amortization follows:
(In millions)September 30
 20212020
CostAccumulated AmortizationCostAccumulated Amortization
Customer relationships$638.1 $416.9 $633.2 $358.7 
Trademarks and trade names50.0 32.5 45.3 25.7 
Developed technology297.8 153.3 287.9 116.5 
Software 1
Software for internal use
161.3 127.6 159.3 119.2 
Software to be sold 73.8 33.3 55.1 29.5 
Other 2
86.0 25.5 25.8 17.7 
Total definite-lived$1,307.0 $789.1 $1,206.6 $667.3 
Indefinite-lived 3
437.4 — 437.4 — 
Total identifiable intangible assets$1,744.4 $789.1 $1,644.0 $667.3 
1 Software consists mainly of capitalized costs associated with internal use software, including applicable costs associated with the implementation and upgrade of our enterprise resource planning systems. In addition, software includes capitalized development costs for software products to be sold. Software amortization expense was $14.4 million, $9.2 million and $10.3 million for the fiscal years ended September 30, 2021, 2020 and 2019 and was primarily included in Selling and administrative expenses.
2 Other intangible assets primarily comprised of patents, non-competition agreements and intellectual property rights.
3 Indefinite-lived intangible assets represent primarily the Welch Allyn trade name with a carrying value of $434.0 million as of September 30, 2021 and 2020.

Testing for indefinite-lived intangible asset impairment is performed annually, or on an interim basis upon the occurrence of a triggering event or change in circumstances that would more likely than not reduce the fair value of the indefinite-lived intangible asset below its carrying amount. The annual evaluation of indefinite-lived intangible assets was performed as of April 30, 2021 and did not result in any impairment.
Amortization expense for definite-lived intangible assets for the fiscal years ended September 30, 2021, 2020 and 2019 was $123.0 million, $118.2 million and $132.7 million. Amortization expense for definite-lived intangible assets is expected to approximate the following for each of the next five fiscal years and thereafter:
(In millions)Amount
2022$120.7 
2023100.9 
202485.6 
202566.7 
202654.8 
2027 and beyond89.2 
v3.21.2
Statement of Cash Flows, Supplemental Disclosures
 12 Months Ended
Sep. 30, 2021
Supplemental Cash Flow Elements [Abstract]  
Additional Financial Information Disclosure Supplementary Financial Statement Information
Supplemental Balance Sheet Information

Investments

During fiscal year ended September 30, 2021, we transferred a portion of our non-marketable equity investment that was valued at cost of $25.5 million to EarlySense. See Note 3. Business Combinations for further information.

During fiscal year ended September 30, 2020, we sold an equity investment with a carrying value of $3.1 million and recognized a loss of $0.3 million and recognized an impairment loss of $1.7 million on a cost method investment. These losses were recorded as a component of Investment income (expense) and other, net.

As of September 30, 2021 and 2020, investments totaling $22.3 million and $49.0 million were recorded as a component of Other assets.
Supplemental Cash Flow Information
(In millions)Year Ended September 30
202120202019
Cash paid for income taxes$56.8 $88.0 $54.4 
Cash paid for interest57.1 72.4 91.8 
Non-cash investing activities:
Change in capital expenditures not paid$(12.5)$4.9 $8.0 
Sale of equity method investment— 2.1 $— 
Non-cash consideration in exchange for asset acquisition:
Preferred securities investment25.5 — — 
Forgiveness of a prepaid performance obligation1.8 — — 
Total non-cash investing activities:$14.8 $7.0 $8.0 
Non-cash financing activities:  
Treasury stock issued under stock compensations plans$25.4 $26.7 $22.7 
Distribution of shares issued under stock-based compensation plans40.1 30.0 15.4 
v3.21.2
Financing Agreements
 12 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Financing Agreements Financing Agreements
Total debt consists of the following:
(In millions)September 30,
2021		September 30, 2020
Current portion of long-term debt$50.1 $50.1 
Securitization Facility95.6 82.2 
Note Securitization Facility90.0 90.0 
Total Short-term borrowings$235.7 $222.3 
Revolving credit facility, matures August 2024$515.0 $— 
Senior secured Term Loan A, long-term-portion, matures August 2024$846.7 895.4 
Senior unsecured 5.00% notes due on February 15, 2025$— 297.5 
Senior unsecured 4.375% notes due on September 17, 2027$420.3 419.5 
Unsecured 7.00% debentures due on February 15, 2024$13.4 13.4 
Unsecured 6.75% debentures due on December 15, 2027$29.7 29.7 
Other$0.1 0.2 
Total Long-term debt$1,825.2 $1,655.7 
Total debt$2,060.9 $1,878.0 

Short-Term Borrowings

Securitization Facilities

On April 23, 2021, we renewed our 364-day accounts receivable securitization program (the “Securitization Facility”) with certain financial institutions for borrowings up to $110.0 million. Additionally, we renewed our 364-day facility for borrowings up to $90.0 million (the “Note Securitization Facility”) on April 23, 2021. The terms and conditions of the renewed April 2021 facilities are substantially similar to the expired April 2020 facilities. Under the terms of each the Securitization Facility and Note Securitization Facility, certain of our accounts receivable secure the amounts borrowed and cannot be used to pay our other debts or liabilities. The amount of permissible borrowings outstanding is determined based on the amount of qualifying accounts receivable at any point in time. Borrowings outstanding under the renewed Securitization Facility and Note Securitization Facility bear interest at 1-month U.S. LIBOR plus the applicable margin of 0.78% and 0.90% and are included as a component of Short-term borrowings, while the accounts receivable securing these obligations remain as a component of Trade accounts receivable, net of allowances.

As of September 30, 2021, the weighted average interest rate on Short-Term borrowings was 0.97%.

Long-Term Debt

As of September 30, 2021, there were $515.0 million outstanding borrowings on the Revolving Credit Facility and available borrowing capacity was $675.0 million after giving effect to the $9.9 million of outstanding standby letters of credit. As of
September 30, 2020, there were no outstanding borrowings on the Revolving Credit Facility, and available borrowing capacity was $1,191.0 million after giving effect to $9.0 million of outstanding standby letters of credit.

In August 2019, we entered into a senior credit agreement (the “Senior Credit Agreement”) for purposes of refinancing our then-existing senior secured credit facilities maturing in 2021 (the “Prior Senior Secured Credit Facilities”). The Prior Senior Secured Credit Facilities consisted of a senior secured term loan facility (“2021 TLA Facility”) with an original principal amount of $1,462.5 million and a Senior Secured Revolving Credit Facility (“2021 Revolving Credit Facility”) providing borrowing capacity of up to $700.0 million, both maturing in September 2021. During fiscal year ended September 30, 2019, we paid the outstanding balance of $1,038.4 million on the 2021 TLA Facility.

The Senior Credit Agreement consists of two facilities as follows:
•$1,000.0 million senior secured Term Loan A facility, maturing in August 2024 (“2024 TLA Facility”)
•Revolving Credit Facility, providing borrowing capacity of up to $1,200.0 million, maturing in August 2024 (“2024 Revolving Credit Facility”)

In connection with the refinancing of the Prior Senior Secured Credit Facilities, we recorded $3.3 million in Loss on extinguishment of debt primarily related to the debt issuance costs previously capitalized for the 2021 TLA Facility during fiscal year ended September 30, 2019. We capitalized debt issuance costs of $2.5 million in connection with the 2024 TLA Facility and $3.7 million in connection with the 2024 Revolving Credit Facility.

The Senior Credit Agreement facilities bear interest at variable rates which currently approximate 1.4%. These interest rates are based primarily on LIBOR, but under certain conditions could also be based on the U.S. Federal Funds Rate or the U.S. Prime Rate, at our option. We are able to voluntarily prepay outstanding loans under the 2024 TLA Facility at any time. We made the required minimum payments of $50.0 million on the 2024 TLA Facility during both fiscal years ended September 30, 2021 and 2020.

The following table summarizes the maturities of the 2024 TLA Facility for the fiscal years ending September 30, 2022 through 2024:
(In millions)Amount
2022$50.0 
202375.0 
2024775.0 

Long-Term Debt Redemption

On May 20, 2021, we redeemed the senior unsecured 5.00% notes due February 15, 2025 for $300.0 million using cash on hand and funds borrowed from both Securitization Facilities and the Revolving Credit Facility. During the year ended September 30, 2021, we recorded a loss on extinguishment of debt of $9.8 million, which was comprised of a $7.5 million prepayment premium and $2.3 million of debt issuance costs previously capitalized.

In September 2019, we issued senior unsecured notes of $425.0 million maturing September 2027 that bear interest at a fixed rate of 4.375% annually and capitalized debt issuance costs of $6.3 million. On October 7, 2019, we used the net proceeds from the offering of these notes, together with funds borrowed from the 2024 Revolving Credit Facility, to redeem all of our previously outstanding senior unsecured 5.75% notes due September 2023 (the “2023 Notes”) and pay the prepayment premium of $12.2 million. The 30-day notice required to redeem the 2023 Notes was filed on September 7, 2019 and, as a result, the outstanding liability of $421.6 million as of September 30, 2019 was classified as current within short-term borrowings. In October 2019, we recorded a loss on extinguishment of debt of $15.6 million, which was comprised of a $12.2 million prepayment premium and $3.4 million of debt issuance costs previously capitalized.

Fair Value

The fair value of our debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities. The book values of our Securitization Facility, Note Securitization Facility, 2024 TLA Facility, and 2024 Revolving Credit Facility approximate fair value.
The estimated fair values of our long-term debt instruments are described in the table below:
(In millions)September 30,
2021		September 30, 2020
Senior unsecured 5.00% notes due on February 15, 2025$— $310.1 
Senior unsecured 4.375% notes due on September 15, 2027445.4 441.2 
Unsecured debentures48.6 48.0 
Total$494.0 $799.3 

The estimated fair values of our long-term unsecured debentures were based on observable inputs such as quoted prices in markets that are not active. The estimated fair values of our Senior Notes were based on quoted prices for similar liabilities. These fair value measurements were classified as Level 2, as described in Note 1. Summary of Significant Accounting Policies.

Debt Covenants

The facilities provided by the Senior Credit Agreement are held with a syndicate of banks, which includes 13 institutions. Our general corporate assets, with exceptions including those of certain of our subsidiaries, collateralize these obligations. The Senior Credit Agreement contains financial covenants that specify a maximum secured net leverage ratio and a minimum interest coverage ratio. These financial covenants are measured at the end of each quarter. The required maximum secured net leverage ratio is 3.00x and the required minimum interest coverage ratio is 4.00x. As of September 30, 2021, we were in compliance with all debt covenants under our financing agreements.
v3.21.2
Derivative Instruments and Hedging Activity (Notes)
 12 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure
Note 6. Derivative Instruments and Hedging Activity

We are exposed to various market risks, including fluctuations in interest rates and variability in foreign currency exchange rates. We have established policies, procedures and internal processes governing our management of market risks and the use of financial instruments to manage our exposure to such risks. We employ cash flow hedges, net investment hedges, and other derivative instruments not designated for hedge accounting to manage these risks.

Cash Flow Hedges

To manage our exposure to market risk from fluctuations in interest rates, we enter into interest rate swaps that are designated as cash flow hedges. As of September 30, 2021 and September 30, 2020, we had interest rate swap agreements with an aggregate notional amount of $750.0 million to hedge the variability of cash flows through August 2024 associated with a portion of the variable interest rate payments on outstanding borrowings under our Senior Credit Agreement.

We are subject to variability in foreign currency exchange rates due to our international operations. We enter into currency exchange contracts that are designated as cash flow hedges to manage our exposure arising from fluctuating exchange rates related to specific and projected transactions. We operate this program pursuant to documented corporate risk management policies and do not enter into derivative transactions for speculative purposes. The sensitivity of earnings and cash flows to variability in exchange rates is assessed by applying an appropriate range of potential rate fluctuations to our assets, obligations, and projected results of operations denominated in foreign currencies. Our currency risk consists primarily of foreign currency denominated firm commitments and projected foreign currency denominated intercompany and third-party transactions. As of September 30, 2021, we had no outstanding currency exchange contracts. As of September 30, 2020, the notional amount of outstanding currency exchange contracts was $64.4 million. The maximum length of time over which we hedge transaction exposures is generally 12 months. Derivative gains and losses, initially reported as a component of Accumulated other comprehensive income (loss), are reclassified to earnings in the period when the underlying transaction affects earnings.

Net Investment Hedges

As of September 30, 2021 and 2020, we had cross-currency swap agreements, with an aggregate notional amount of $198.3 million to hedge the variability of U.S. dollar-Euro exchange rates through July 2023. These cross-currency swaps are designated as net investment hedges of subsidiaries using Euro as their functional currency. 

We assess hedge effectiveness under the spot-to-spot method and record changes in fair value attributable to the translation of foreign currencies through Accumulated other comprehensive income (loss). The remaining changes in fair value are related to
interest earned on cross-currency swaps and are amortized through Interest expense, which was income of $5.2 million for both the fiscal year ended September 30, 2021 and 2020.

Undesignated Derivative Instruments

We use forward contracts to mitigate the foreign exchange revaluation risk associated with recorded monetary assets and liabilities that are denominated in a non-functional currency. These derivative instruments are not formally designated as hedges and the terms of these instruments generally do not exceed one month. As of September 30, 2021 and 2020, we had forward contracts not designated as hedges with aggregate notional amounts of $116.4 million and $169.9 million. The following table summarizes unrealized and realized gains and losses for forward contracts not designated as hedges, which are recorded in Investment income (expense) and other, net.
(In millions)Year Ended September 30
20212020
Unrealized gains (losses)$(0.5)$— 
Realized gains (losses)(5.1)3.0 

Fair Value

We classify fair value measurements on our derivative instruments as Level 2. The estimated fair values of our derivative instruments are described in the table below:
(In millions)

Derivative Instruments
September 30, 2021September 30, 2020Consolidated Balance Sheet Classification
Interest Rate Swaps$(22.2)$(46.3)Other current liabilities
Currency Exchange Contracts— (0.4)Other current liabilities
Cross-Currency Swaps8.5 9.7 Other assets
Undesignated Forward Contracts0.4 — Other assets
Undesignated Forward Contracts(1.0)— Other current liabilities
Total$(14.3)$(37.0)
v3.21.2
Leases, Codification Topic 842
 12 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Lessee, Operating Leases Leases
Hillrom as the Lessee

We determine if an arrangement is a lease or contains a lease at contract inception. We lease real estate, automobiles, and equipment under various operating leases. A lease liability and ROU asset is recognized for operating leases with terms greater than one year at the lease commencement date. The lease liability is measured as the present value of all remaining fixed payments calculated using our estimated secured incremental borrowing rate. The ROU asset is measured as the sum of the lease liability and any initial indirect costs incurred, less any lease incentives received. We use our estimated secured incremental borrowing rate as most lease agreements do not specify an interest rate. Our lease agreements include leases that have both lease and non-lease components. We elected to account for lease components and the associated non-lease components as a single lease component.

Our leases have remaining lease terms of approximately 1 year to 8 years. Many of our real estate and equipment leases include options to renew. Renewal periods are generally not included when calculating the remaining lease term unless we are reasonably certain to exercise a renewal option based on beneficial terms or significance of the leased asset to our operations.
Expense for operating leases and leases with a term of one year or less is recognized on a straight-line basis over the lease term. Lease expense is recorded in Cost of goods sold or Selling and administrative expenses based on the purpose of the leased asset. The following table summarizes our lease expense:
(In millions)September 30, 2021September 30, 2020
Operating lease expense$27.2 $27.8 
Short-term leases and variable lease payments11.9 11.5 
Total $39.1 $39.3 

The following table summarizes the balance sheet classification of our operating leases and amounts of the ROU asset and lease liability:
(In millions)September 30, 2021September 30, 2020Consolidated Balance Sheet Classification
Right-of-use assets$68.5 $72.3 Other assets
Current lease liabilities22.7 22.8 Other current liabilities
Non-current lease liabilities50.6 54.4 Other long-term liabilities

The following table summarizes our supplemental information related to operating leases:
September 30, 2021September 30, 2020
Supplemental information:
Weighted-average discount rate3.14 %3.30 %
Weighted-average remaining lease term in years4.414.48
Cash Flow information (In millions):
Operating cash flows paid for amounts included in the measurement of lease liabilities$27.0 $27.6 
Right of use assets obtained in exchange for new lease liabilities$18.2 $16.6 

The following table summarizes the maturities of our operating leases as of September 30, 2021:
(In millions)Amount
2022$24.6 
202318.9 
202412.5 
20258.2 
20266.3 
Thereafter8.7 
Total lease payments79.2 
Less: imputed interest(5.9)
Total lease liability$73.3 
Disclosures Related to Periods Prior to Adopting the New Lease Guidance

Future minimum payments under non-cancellable operating leases (excluding executory costs) aggregating $47.8 million for manufacturing facilities, warehouse distribution centers, service centers, sales offices, automobiles, and other equipment consisted of the following as of the fiscal year ended September 30, 2021:
(In millions)Amount
2022$15.7 
202311.1 
20246.4 
2025 and beyond14.6 

Rental expense during fiscal year ended September 30, 2019 was $39.8 million.
Lessor, Operating Leases Hillrom as the LessorWe make certain products available to customers under short-term lease arrangements. Rental usage of these products is provided as an alternative to product sales and is short-term in nature. Products primarily include smart beds, including, but not limited to, bariatric, critical care, maternal, and home care beds, as well as other surfaces. These lease arrangements provide our customers with our products during periods of peak demand or often times for specialty purposes. Additionally, we provide wearable, non-invasive ventilation products to patients covered by monthly medical insurance reimbursements, which are considered month-to-month leasing arrangements. Income arising from these lease arrangements where we are the lessor is recognized within Rental revenue. We accounted for these lease arrangements as operating leases.
v3.21.2
Retirement and Postretirement Benefit Plans
 12 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Retirement and Postretirement Benefit Plans Retirement and Postretirement Benefit Plans
Our retirement plans consist of defined benefit plans, postretirement health care plans and defined contribution savings plans. Plans cover certain employees both in and outside of the United States.
 
Retirement Plans
 
We sponsor five defined benefit retirement plans. Those plans include a master defined benefit retirement plan in the United States, a nonqualified supplemental executive defined benefit retirement plan, and three defined benefit retirement plans covering employees in Germany and France. Benefits for such plans are based primarily on years of service and the employee’s level of compensation in specific periods of employment. We contribute funds to trusts as necessary to provide for current service and any unfunded projected future benefit obligation over a reasonable period of time. All of our plans have a September 30 measurement date.
Effect on Operations

The following table details the components of net pension expense for our defined benefit retirement plans:
(In millions)Year Ended September 30Statements of Consolidated
 202120202019Income Classification
Service cost$1.7 $1.8 $1.8 Cost of goods sold
Service cost3.4 3.4 2.7 Selling and administrative expenses
Interest cost7.4 8.7 12.5 Investment income (expense) and other, net
Expected return on plan assets(11.8)(14.0)(14.8)Investment income (expense) and other, net
Amortization of unrecognized prior service cost, net0.1 — 0.1 Investment income (expense) and other, net
Amortization of net loss6.3 6.9 2.4 Investment income (expense) and other, net
Net periodic benefit cost 7.1 6.8 4.7 
Settlement loss 1
— 8.5 — Investment income (expense) and other, net
Special termination benefits 2
3.3 0.5 — Special charges
Net pension expense$10.4 $15.8 $4.7 
1 On March 9, 2020, we transferred pension assets totaling $40.6 million to purchase annuity contracts for a certain population of retirees with a third-party insurance company. As a result, we recognized a non-cash settlement loss of $8.5 million for the fiscal year ended September 30, 2020, which is recorded as a component of Investment income (expense) and other, net in the Consolidated Statements of Income.
2 In September 2020, we offered certain employees in the United States the option to participate in a voluntary early retirement plan. The employees who accepted the offer received special termination benefits, which were recorded as a component of Special charges in the Consolidated Statements of Income. See Note 10. Special Charges for further information.
Obligations and Funded Status

The change in benefit obligations, plan assets and funded status, along with amounts recognized in the Consolidated Balance Sheets for our defined benefit retirement plans were as follows:
(In millions)Year Ended September 30
 20212020
Change in benefit obligation:  
Benefit obligation at beginning of year$371.8 $380.4 
Service cost5.1 5.2 
Interest cost7.4 8.7 
Actuarial (gain) loss 1
(10.7)28.7 
Benefits paid(12.6)(12.6)
Acquisition2
— 3.5 
Plan settlements(0.2)(44.2)
Special termination benefits 3.3 0.5 
Exchange rate (gain) loss (0.3)1.6 
Benefit obligation at end of year363.8 371.8 
Change in plan assets:  
Fair value of plan assets at beginning of year291.7 310.6 
Actual return on plan assets21.8 33.4 
Employer contributions1.2 1.0 
Benefits paid(12.6)(12.6)
Acquisition2
— 3.5 
Plan settlements (0.2)(44.2)
Fair value of plan assets at end of year301.9 291.7 
Funded status and net amounts recognized$(61.9)$(80.1)
Amounts recorded in the Consolidated Balance Sheets:  
Accrued pension benefits, current portion$(1.4)$(1.5)
Accrued pension benefits, long-term(60.5)(78.6)
Net amount recognized$(61.9)$(80.1)
1 For the fiscal year ended September 30, 2021, the increase in Actuarial (gain) loss is primarily due to the change in the yield curve.
  2 Represents the plan assets and obligations assumed as part of the defined benefit retirement plan of Excel Medical, which was acquired on January 10, 2020, and subsequently settled and terminated as of September 30, 2020.

In addition to the amounts above, net actuarial losses of $37.8 million and prior service costs of $0.3 million, less the tax effect of $10.0 million are included as components of Accumulated other comprehensive income (loss) as of September 30, 2021. In addition to the amounts above, net actuarial losses of $64.9 million and prior service costs of $0.4 million, less the tax effect of $16.3 million, are included as components of Accumulated other comprehensive income (loss) as of September 30, 2020.
Accumulated Benefit Obligation

The accumulated benefit obligation for all defined benefit pension plans was $348.3 million and $352.1 million as of September 30, 2021 and 2020. Selected information for our plans, including plans with accumulated benefit obligations exceeding plan assets, was as follows:
(In millions)September 30, 2021September 30, 2020
 PBOABOPlan AssetsPBOABOPlan Assets
Master plan$337.1 $323.6 $301.9 $343.2 $325.7 $291.7 
International plans21.3 19.3 — 23.0 20.8 — 
Supplemental executive plan5.4 5.4 — 5.6 5.6 — 
 $363.8 $348.3 $301.9 $371.8 $352.1 $291.7 

Actuarial Assumptions

The weighted average assumptions used in accounting for our domestic pension plans were as follows:
 202120202019
Weighted average assumptions to determine benefit
obligations at the measurement date:
   
Discount rate for obligation2.9%2.7%3.2%
Rate of compensation increase2.6%2.6%2.6%
   
Weighted average assumptions to determine benefit
cost for the year:
   
Discount rate for expense2.7%3.2%4.2%
Expected rate of return on plan assets4.5%5.3%5.5%
Rate of compensation increase2.6%2.6%3.0%

The discount rates used in the valuation of our defined benefit pension plans 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, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our 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, as well as taking into consideration economic and capital market conditions. The rate of assumed compensation increase is also based on our specific historical trends of past wage adjustments. The weighted average discount rate assumptions used for our international plans are lower than our domestic plan assumptions and do not significantly affect the consolidated net benefit obligation or net periodic benefit cost balances.

Plan Assets

The weighted average asset allocations of our master defined benefit retirement plan as of September 30, 2021 and 2020, by asset category, along with target allocations, are as follows:
2021 and 2020 Target Allocation2021 Actual Allocation 2020 Actual Allocation
Equity securities31%-37%33.7%34%
Fixed income securities63%-69%66.3%66%
Total 100%100%

We have a Plan Committee that sets investment guidelines with the assistance of an external consultant. These guidelines are established based on market conditions, risk tolerance, funding requirements and expected benefit payments. The Plan Committee also oversees the investment allocation process and monitors asset performance. As pension liabilities are long-term in nature, we employ a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent
level of risk. Target allocations are guidelines, not limitations, and plan fiduciaries may occasionally approve allocations above or below a target range or elect to rebalance the portfolio within the targeted range.

The investment portfolio contains a diversified portfolio of fixed income securities and equities. Securities are also diversified in terms of domestic and international securities, short-term and long-term securities, growth and value styles, large cap and small cap stocks. The primary investment strategy is a dynamic target allocation method that periodically rebalances among various investment categories depending on the current funded positions. 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.

Trust assets are invested subject to the following policy restrictions: short-term securities must be rated A2/P2 or higher; all fixed-income securities shall have a credit quality rating “BBB” or higher; and investments in equities in any one company may not exceed 10% of the equity portfolio.

Fair Value Measurements of Plan Assets

Cash as part of plan assets was $3.2 million and $2.1 million as of September 30, 2021 and 2020 and was classified as a Level 1 financial instrument.

The following table summarizes these assets by category:
(In millions)Year Ended September 30
20212020
Equities
U.S. companies$52.0 $49.7 
International companies49.5 48.9 
Fixed income securities 197.2 191.0 
Total plan assets at fair value, excluding cash$298.7 $289.6 

These investments are commingled funds and/or collective trusts valued using the net asset value (“NAV”) unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund.

Cash Flows

Our U.S. master defined benefit plan is funded in excess of 89%, as measured under the requirements of the Pension Protection Act of 2006, and therefore we expect that the plan will not be subject to the “at risk” funding requirements of this legislation.

During fiscal years ended September 30, 2021 and 2020, we contributed cash of $1.2 million and $1.0 million, respectively, to our defined benefit retirement plans. We will not be required to contribute to our master defined benefit retirement plan during the fiscal year ended September 30, 2022 due to the current funding level; however, minimal contributions will be required for our unfunded plans.

Estimated Future Benefit Payments

The benefit payments, which are expected to be funded through plan assets and company contributions and reflect expected future service, are expected to be paid as follows:
(In millions)Pension Benefits
2022$14.9 
202314.6 
202415.4 
202516.1 
202616.6 
2027-203194.2 
Defined Contribution Savings Plans

We have defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security in retirement by providing employees with an incentive to make regular savings. Our contributions to the plans are based on eligibility and employee contributions. Expense under these plans for the fiscal years ended September 30, 2021, 2020 and 2019 was $31.6 million, $31.9 million and $29.0 million.
Postretirement Health Care Plans

In addition to defined benefit retirement plans, we also offer two postretirement health care plans in the United States that provide health care benefits to qualified retirees and their dependents. The plans are closed to new participants and include retiree cost sharing provisions and generally extends retiree coverage for medical and prescription benefits beyond the COBRA continuation period to the date of Medicare eligibility. These plans have a measurement date of September 30.

The net periodic benefit cost related to postretirement health care plans has not been significant for the fiscal years ended September 30, 2021, 2020 or 2019. In September 2020, we offered certain employees in the United States the option to participate in a voluntary early retirement plan. The employees who accepted the offer received special termination benefits of $0.1 million and $0.4 million for the fiscal years ended September 30, 2021 and 2020, which were recorded as a component of Special charges in the Consolidated Statements of Income.
The change in the accumulated postretirement benefit obligation was as follows:
(In millions)Year Ended September 30
 20212020
Change in benefit obligation:  
Benefit obligation at beginning of year$12.2 $12.7 
Service cost0.1 0.1 
Interest cost0.1 0.2 
Actuarial loss (gain)1.8 (0.4)
Benefits paid(1.8)(1.0)
Retiree contributions0.4 0.2 
       Special termination benefits0.1 0.4 
Benefit obligation at end of year$12.9 $12.2 
Amounts recorded in the Consolidated Balance Sheets:  
Accrued benefits obligation, current portion$2.0 $1.6 
Accrued benefits obligation, long-term10.9 10.6 
Net amount recognized$12.9 $12.2 

In addition to the amounts above, net actuarial gains of $7.5 million and prior service credits of $0.3 million, less the tax effect of $2.0 million are included as components of Accumulated other comprehensive income (loss) as of September 30, 2021. Net actuarial gains of $10.9 million and prior service credits of $0.4 million, less the tax effect of $2.9 million are included as components of Accumulated other comprehensive (loss) as of September 30, 2020.

The below table summarizes the discount rates used in accounting for our postretirement plans:
  September 30
 202120202019
Discount rate used to determine:  
Net periodic benefit cost for the postretirement health care plans1.6 %2.6 %4.0 %
Benefit obligation2.0 %1.8 %3.0 %

As of September 30, 2021, the health care cost trend rates for the plans were generally assumed to be in the ranges of 5.6% to 6.0%, trending down to a rate of 4.5% over the long-term.
We fund the postretirement health care plans as benefits are paid and current plan benefits are expected to require contributions of approximately $2.1 million during fiscal year end September 30, 2022 and approximately $1.0 million per fiscal year thereafter.
v3.21.2
Other Comprehensive Income
 12 Months Ended
Sep. 30, 2021
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Income Other Comprehensive Income
The following tables represent the changes in Other comprehensive income (loss) and Accumulated other comprehensive income (loss) by component for the fiscal years ended September 30, 2021, 2020 and 2019.
(In millions)Year Ended September 30, 2021
 Other comprehensive income (loss)Accumulated other comprehensive income (loss)
 Prior to
reclassification		Reclassification
from		Pre-taxTax effectNet of taxBeginning
balance		Net activity
Ending
balance 2
Derivative instruments designated as hedges 1:
Currency exchange contracts
$3.7 $(3.3)$0.4 $(0.1)$0.3 $(0.3)$0.3 $— 
Interest rate swaps
37.9 (13.8)24.1 (5.5)18.6 (35.7)18.6 (17.1)
Cross-currency swaps
(1.3)— (1.3)0.3 (1.0)6.7 (1.0)5.7 
Derivative instruments designated as hedges total
$40.3 $(17.1)$23.2 $(5.3)$17.9 $(29.3)$17.9 $(11.4)
Foreign currency translation adjustment
9.0 — 9.0 — 9.0 (110.7)9.0 (101.7)
Change in pension and postretirement defined benefit plans
0.8 21.9 22.7 (5.4)17.3 (40.2)17.3 (22.9)
Total$50.1 $4.8 $54.9 $(10.7)$44.2 $(180.2)$44.2 $(136.0)

(In millions)Year Ended September 30, 2020
 Other comprehensive income (loss)Accumulated other comprehensive income (loss)
 Prior to
reclassification		Reclassification
from		Pre-taxTax effectNet of taxBeginning
balance		Net activity
Ending
balance
Derivative instruments designated as hedges 1:
Currency exchange contracts$1.9 $(2.6)$(0.7)0.2 $(0.5)$0.2 $(0.5)$(0.3)
Interest rate swaps(35.4)(4.2)(39.6)9.1 (30.5)(5.2)(30.5)(35.7)
Cross-currency swaps(7.2)— (7.2)1.7 (5.5)12.2 (5.5)6.7 
Derivative instruments designated as hedges total$(40.7)$(6.8)$(47.5)11.0 $(36.5)$7.2 $(36.5)$(29.3)
Foreign currency translation adjustment34.7 — 34.7 — 34.7 (145.4)34.7 (110.7)
Change in pension and postretirement defined benefit plans0.9 4.6 5.5 (1.4)4.1 (44.3)4.1 (40.2)
Total$(5.1)$(2.2)$(7.3)$9.6 $2.3 $(182.5)$2.3 $(180.2)
(In millions)Year Ended September 30, 2019
 Other comprehensive income (loss)Accumulated other comprehensive income (loss)
 Prior to
reclassification		Reclassification
from		Pre-taxTax effectNet of taxBeginning
balance		Impacts of ASU 2018-02 Adoption as of October 1, 2018Net activityEnding
balance
Derivative instruments designated as hedges 1:
Currency exchange contracts$(0.6)$0.6 $— $— $— $0.2 $— $— $0.2 
Interest rate swaps(24.8)(6.8)(31.6)7.3 (24.3)18.3 0.8 (24.3)(5.2)
Cross-currency swaps18.0 — 18.0 (4.1)13.9 (1.7)— 13.9 12.2 
Derivative instruments designated as hedges total$(7.4)$(6.2)$(13.6)$3.2 $(10.4)$16.8 $0.8 $(10.4)$7.2 
Foreign currency translation adjustment(40.1)— (40.1)— (40.1)(105.3)— (40.1)(145.4)
Change in pension and postretirement defined benefit plans(19.4)2.0 (17.4)3.8 (13.6)(24.5)(6.2)(13.6)(44.3)
Total$(66.9)$(4.2)$(71.1)$7.0 $(64.1)$(113.0)$(5.4)$(64.1)$(182.5)
1 See Note 6. Derivative Instruments and Hedging Activity for information regarding our hedging strategies
2 The estimated net amount of gains and losses reported in Accumulated other comprehensive income (loss) related to our derivative instruments designated as hedges as of September 30, 2021 that are expected to be reclassified into earnings within the next 12 months is expense of $4.1 million.

The following table represents the items reclassified out of Accumulated other comprehensive income (loss) and the related tax effects for the fiscal years ended September 30, 2021, 2020 and 2019:
(In millions) Year Ended September 30
 202120202019
 Amount
reclassified
Tax effect
Net of taxAmount
reclassified		Tax effectNet of taxAmount
reclassified
Tax effect 4
Net of tax
Derivative instruments designated as hedges:
Currency exchange contracts 1
$(3.3)$0.8 $(2.5)$(2.6)$0.5 $(2.1)$0.6 $(0.2)$0.4 
Interest rate swaps 2
(13.8)3.2 (10.6)(4.2)1.0 (3.2)(6.8)1.6 (5.2)
Derivative instruments designated as hedges total
$(17.1)$4.0 $(13.1)$(6.8)$1.5 $(5.3)$(6.2)$1.4 (4.8)
Change in pension and postretirement defined benefit plans 3
$21.9 $(5.4)$16.5 $4.6 $(1.4)$3.2 $2.0 $(2.4)$(0.4)
1 Reclassified from Accumulated other comprehensive income (loss) into Investment income (expense) and other, net.
2 Reclassified from Accumulated other comprehensive income (loss) into Interest expense.
3 Reclassified from Accumulated other comprehensive income (loss) into Cost of goods sold and Investment income (expense) and other, net. These components are included in the computation of net periodic pension expense.
4 As a result of the adoption of ASU 2018-02, we reclassified $5.4 million from Accumulated other comprehensive income (loss) to Retained earnings.
v3.21.2
Common Stock
 12 Months Ended
Sep. 30, 2021
Class of Stock Disclosures [Abstract]  
Common Stock Common Stock
Share Repurchases

Under the Board-approved share repurchase program, authorization of $340.0 million was previously granted to repurchase shares. In September 2019, the Board approved an additional $170.0 million for repurchases. In July 2021, the Board approved an increase to the share repurchase program in an amount of $500.0 million. Repurchases may be made on the open market or via private transactions, and are used to manage our capital structure, offset the dilutive impact of stock-based compensation and return cash to shareholders. The Merger Agreement places restrictions on our ability to repurchase shares of our common stock. As a result, we do not expect to make repurchases under the common stock repurchase program while the Merger Agreement is in effect. However, we may continue to repurchase shares of our common stock from employees in connection with employee payroll tax withholding for restricted stock distributions. For the fiscal year ended September 30, 2021, we repurchased 1.2 million shares of our common stock in the open market valued at $130.7 million. For the fiscal year ended September 30, 2020, we repurchased 0.5 million shares of our common stock in the open market valued at $54.1 million. For the fiscal year ended September 30, 2019, we repurchased 1.2 million shares of our common stock in the open market valued at $117.2 million. As of September 30, 2021, a cumulative total of $477.3 million had been used, leaving us with availability of $532.7 million for future repurchases.

The following table summarizes common stock purchased in connection with employee payroll tax withholding for restricted stock distributions for the following fiscal years:
Year Ended September 30
202120202019
Total number of shares purchased99,259 158,521 48,908 
Dollar value of shares purchased (in millions)
$9.5 $16.5 $4.7 

Stock-Based Compensation

We have stock-based compensation plans under which employees and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. In addition to stock options, we grant performance share units (“PSUs”) and RSUs to certain management level employees and vested restricted stock to non-employee directors. We also offer eligible employees the opportunity to buy shares of our common stock at a discount via an Employee Stock Purchase Plan (“ESPP”).

The Stock Incentive Plan, which was approved at the 2021 annual meeting of shareholders, replaced the 2002 Stock Incentive Plan. Common shares reserved for issuance under the plan total 3.0 million. As of September 30, 2021, approximately 3.0
million shares were available for future grants under our stock-based compensation plans. We generally settle our stock-based awards with treasury shares. As of September 30, 2021, we had 22.6 million treasury shares available for use to settle stock-based awards.

The stock-based compensation cost that was charged against income for all plans was $45.6 million, $38.4 million and $34.4 million for the fiscal years ended September 30, 2021, 2020 and 2019.

We recognize a tax benefit based on the increase in value from the grant date to the exercise date for stock options and from the grant date to the distribution date for the performance share units and restricted share units. The tax benefit is recorded during the year in which the exercise or distribution occurs. The tax benefit for exercises and distributions for the fiscal years ended September 30, 2021, 2020 and 2019 was $1.5 million, $4.7 million, and $5.2 million.

Options

Stock options granted by our Compensation Committee of our Board under the Stock Incentive Plan are non-qualified stock options. These awards are generally granted with exercise prices equal to the average of the high and low prices of our common stock on the date of grant. They vest in equal annual installments over a three- or four-year period and the maximum contractual term is ten years. We use a Binomial option-pricing model to estimate the fair value of stock options, and compensation cost is recognized on a straight-line basis over the requisite service period.

The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values:
 Year Ended September 30
 202120202019
Weighted average fair value per share$23.86 $24.80 $25.28 
Valuation assumptions:
Risk-free interest rate0.4%1.6%3.0%
Expected dividend yield0.9%0.8%0.8%
Expected volatility32.3%27.7%30.5%
Weighted average expected life (years)4.74.74.7

The risk-free interest rate is based upon observed U.S. Treasury interest rates appropriate for the term of our employee stock options. Expected dividend yield is based on the history and our expectation of dividend payouts. Expected volatility was based on our historical stock price volatility. Expected life represents the weighted average period the stock options are expected to remain outstanding and is a derived output of the Binomial model. The expected life of employee stock options is impacted by the above assumptions as well as the post-vesting forfeiture rate and the exercise factor used in the Binomial model. These two variables are based on the history of exercises and forfeitures for previous stock options granted by us.

The following table summarizes transactions under our stock option plans for the fiscal year ended September 30, 2021:
Weighted
Average
Number of
Shares
(in thousands)		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
(in millions)
Balance Outstanding as of October 1, 2020
740 $81.14 
Granted213 94.17 
Exercised(162)64.81 
Cancelled/Forfeited(24)75.91 
Balance Outstanding as of September 30, 2021767 $88.39 7.3$47.3 
Exercisable as of September 30, 2021332 $78.04 5.9$23.9 
Options Expected to Vest421 96.26 8.322.6 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on our closing stock price of $150.00, as reported by the New York Stock Exchange on September 30, 2021. This amount, which changes continuously
based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date.

The total intrinsic value of options exercised during fiscal years ended September 30, 2021, 2020 and 2019 was $7.9 million, $6.9 million and $17.7 million.

As of September 30, 2021, there was $5.2 million of unrecognized compensation expense related to stock options granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 2.4 years.

Restricted Stock Units

RSUs are granted to certain employees with fair values equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. RSU grants are contingent upon continued employment and vest over periods ranging from one to four years. Dividends, payable in common stock equivalents, accrue on the grants and are subject to the same specified terms as the original grants, including the risk of forfeiture.

The following table summarizes transactions for our nonvested RSUs for the fiscal year ended 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested RSUs as of October 1, 2020
337$112.41 
Granted297 92.16 
Vested(240)93.89 
Forfeited(28)95.38 
Nonvested RSUs as of September 30, 2021366$109.42 

As of September 30, 2021, there was $20.8 million of total unrecognized compensation expense related to nonvested RSUs granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 1.8 years. The total vest date fair value of shares that vested during fiscal years ended September 30, 2021, 2020 and 2019 was $22.5 million, $18.1 million and $16.6 million.

Performance Share Units

Our Compensation Committee grants PSUs to certain employees and these awards are subject to any stock dividends, stock splits, and other similar rights inuring to common stock, but unlike our RSUs are not entitled to dividend reinvestment. Vesting of the grants is contingent upon achievement of performance targets and corresponding service requirements.

The fair value of the PSUs is equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. For PSUs with a market condition such as total shareholder return, the Monte-Carlo simulation method is used to determine fair value. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of our and our group of peer companies’ future expected stock prices.

The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted for the fiscal years ended September 30, 2021, 2020 and 2019 are based on company-specific performance targets, with a total shareholder return collar.
 Year Ended September 30
 202120202019
Weighted average fair value per share$100.15 $110.53 $112.79 
Valuation assumptions:
Risk-free interest rate0.3%1.6%3.0%
Expected volatility34.7%23.8%22.8%
    
The basis for the assumptions listed above is similar to the valuation assumptions used for stock options, as discussed previously.

The following table summarizes transactions for our nonvested PSUs during fiscal year ended September 30, 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested PSUs as of October 1, 2020
165$111.73 
Granted79104.36 
Vested(51)126.55 
Forfeited(10)108.41 
Nonvested PSUs as of September 30, 2021183$104.55 
As of September 30, 2021, there was $10.5 million of unrecognized compensation expense related to PSUs granted under the Stock Incentive Plan based on the expected achievement of certain performance targets or market conditions. This unrecognized compensation expense as of September 30, 2021 does not reflect a reduction for our estimate of potential forfeitures and is expected to be recognized over a weighted average period of 1.7 years. The total fair value of shares that vested during fiscal years ended September 30, 2021, 2020 and 2019 was $6.5 million, $14.1 million and $8.0 million.
v3.21.2
Special Charges
 12 Months Ended
Sep. 30, 2021
Special Charges [Abstract]  
Special Charges Special Charges
Special charges are incurred in connection with various transformative initiatives, exit activities, and organizational changes to improve our business alignment and cost structure. Although these charges are infrequent and unusual in nature, additional Special charges are expected to be incurred. It is not practicable to estimate the amount of these future expected costs until such time as the evaluations are complete. The following table summarizes the Special charges recognized for the fiscal years ended September 30, 2021, 2020 and 2019.

 (In millions)
Special Charges Year Ended September 30
202120202019
Global information technology transformation$12.0 $15.9 $1.3 
Workforce reduction plan25.6 6.7 — 
Integration-related activities 9.2 13.1 19.8 
Site consolidation and other cost optimization activities, including related severance cost0.6 5.8 7.3 
Total Special Charges$47.4 $41.5 $28.4 

Global Information Technology Transformation

In fiscal 2019, management initiated a global information technology transformation, including rationalizing and transforming our enterprise resource planning software solutions and other complementary information technology systems. In addition to the expenses noted in the table above, $17.4 million and $22.0 million was capitalized as software in Other intangible assets and software, net for the fiscal years ended September 30, 2021 and 2020.

The objective of this initiative is to consolidate and streamline our key workstreams that interact with customers and vendors and support our financial reporting processes while maintaining the security of our data. The solutions designed under this initiative will be implemented over the next four to six years.

Workforce Reduction Plan

On September 15, 2020, we committed to a workforce reduction plan as part of the continued business optimization initiatives to advance our strategy and growth platforms and improve our operations and cost structure. The workforce reduction plan includes a voluntary retirement program and involuntary severance actions. For the fiscal years ended September 30, 2021 and 2020, we incurred $25.6 million and $6.7 million related to this initiative within Special charges.

Integration-Related Activities

We incurred costs, including severance and benefit costs, associated with business realignment and integration activities focused on reducing complexity, increasing efficiency, and improving our cost structure. We acquired several businesses during fiscal years ended September 30, 2021 and 2020 as disclosed within Note 3. Business Combinations for which we also continue to incur integration-related costs and severance costs. 
Site Consolidation and Other Cost Optimization Activities, Including Related Severance Cost

We continue to streamline our operations and simplify our supply chain by transforming and consolidating certain manufacturing and distribution operations.

For all accrued severance and other benefit charges described above, we record reserves within Other current liabilities. The following table summarizes the reserve activity for severance and other benefits for the fiscal years ended September 30, 2021 and 2020:

(In millions)
Balance as of September 30, 2019$8.5 
Expenses14.6 
Cash Payments(11.1)
Reversals(0.7)
Balance as of September 30, 2020$11.3 
Expenses23.7 
Cash Payments(27.1)
Reversals— 
Balance as of September 30, 2021$7.9 
v3.21.2
Income Taxes
 12 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The significant components of income before income taxes and the consolidated income tax provision were as follows:
(In millions)Year Ended September 30
 202120202019
Income before income taxes:   
Domestic$145.0 $137.0 $122.5 
Foreign157.8 134.2 86.1 
Total$302.8 $271.2 $208.6 
Income tax expense:   
Current provision   
U.S. Federal$55.5 $38.1 $51.0 
State13.1 10.8 6.0 
Foreign17.7 18.3 18.2 
Total current provision86.3 67.2 75.2 
Deferred provision:   
U.S. Federal(25.5)(15.6)(12.0)
State(4.8)(2.8)(2.5)
Foreign(1.7)(0.6)(4.3)
Total deferred provision(32.0)(19.0)(18.8)
Income tax expense$54.3 $48.2 $56.4 
Differences between income tax expense reported for financial reporting purposes and that computed based upon the application of the statutory U.S. Federal tax rate to the reported income before income taxes were as follows:
(In millions)Year Ended September 30
 202120202019
Amount% of
Pretax
Income		Amount% of
Pretax
Income		Amount% of
Pretax
Income
U.S. Federal income tax 1
$63.6 21.0 %$57.0 21.0 %$43.8 21.0 %
State income tax 2
7.3 2.4 4.1 1.5 3.3 1.6 
Foreign income tax 3
(17.9)(5.9)(15.0)(5.5)(10.1)(4.9)
Application of federal research tax credits(7.7)(2.6)(6.2)(2.3)(5.6)(2.7)
Application of foreign tax credits(9.5)(3.2)(11.6)(4.3)(0.1)— 
Valuation of tax attributes1.2 0.4 5.0 1.9 2.2 1.1 
Foreign inclusions10.3 3.5 7.7 2.9 — — 
Excess tax benefits from share based awards(1.5)(0.5)(4.7)(1.7)(5.2)(2.5)
U.S. tax reform transition tax— — — — (1.0)(0.5)
Foreign-derived intangible income deduction(9.9)(3.4)(7.8)(2.9)(4.3)(2.0)
Global intangible low-taxed income inclusion7.6 2.6 12.6 4.6 9.6 4.6 
Disposition of subsidiary— — 4.1 1.5 18.2 8.7 
Current period change in uncertain tax positions— — — — 4.6 2.2 
Non-deductible transaction costs 4
6.8 2.3 — — — — 
Other, net4.0 1.3 3.0 1.1 1.0 0.4 
Income tax expense$54.3 17.9 %$48.2 17.8 %$56.4 27.0 %
1 At statutory rate.
2 Net of U.S. Federal benefit.
3 U.S. Federal tax rate differential.
4 Non-deductible costs related to the acquisition of Bardy, including the indemnity claim settlement and accrued interest. See Note 3. Business Combinations for further information.
The tax effect of temporary differences that gave rise to the deferred tax assets and liabilities were as follows:
(In millions)September 30, 2021September 30, 2020
Deferred tax assets:  
Employee benefit accruals$58.1 $48.3 
Inventory15.2 14.7 
Net operating loss carryforwards93.3 69.7 
Tax credit carryforwards26.4 26.4 
Lease liabilities18.3 18.8 
Other, net36.5 36.2 
 247.8 214.1 
Less: Valuation allowance(53.0)(50.8)
Total deferred tax assets194.8 163.3 
Deferred tax liabilities:  
Depreciation(14.6)(19.2)
Amortization(190.5)(201.0)
Lease Assets(17.1)(17.6)
Other, net(5.6)(5.6)
Total deferred tax liabilities(227.8)(243.4)
Deferred tax liability - net$(33.0)$(80.1)

As of September 30, 2021, we had $40.7 million of deferred tax assets related to operating loss carryforwards in foreign jurisdictions that are subject to various carryforward periods with the majority eligible to be carried forward for an unlimited period. Additionally, we had $43.1 million of deferred tax assets related to U.S. Federal net operating loss (“NOL”) carryforwards, some of which will be carried forward for an unlimited period and some of which will expire between 2022 and 2036 and $9.5 million of deferred tax assets related to state NOL carryforwards, some of which will be carried forward for an unlimited period and some of which expire between 2022 and 2041. We had $24.3 million of deferred tax assets related to state tax credits, some of which will be carried forward for an unlimited period and some of which will expire between 2022 and 2031. We had $1.1 million of deferred tax assets related to capital loss carryforwards which will expire in 2025. We had $1.7 million of deferred tax assets related to foreign tax credit carryforwards which will expire between 2030 and 2031. We are considering carryback opportunities for the capital loss carryforward and the foreign tax credit carryforward.

The gross deferred tax assets as of September 30, 2021 were reduced by valuation allowances of $53.0 million primarily related to certain foreign deferred tax attributes and state tax credit carryforwards as it is more likely than not that some portion or all of these tax attributes will not be realized. In evaluating whether it is more likely than not that we would recover our deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies were considered. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances.  During fiscal year ended September 30, 2021, the valuation allowance increased by $2.2 million. The increase related primarily to foreign net operating losses, state net operating losses, and state tax credits and that more likely that not will not be realized.

We operate under tax holidays in both Singapore and Puerto Rico. The Singapore tax holiday is effective through 2024. The Puerto Rico tax holiday is effective through 2025, but we disposed of this operation in fiscal 2019 and thus will not recognize any benefit in the future. Both incentives are conditional on meeting certain employment and/or investment thresholds. The impact of these tax holidays decreased foreign taxes by $3.9 million for the fiscal year ended September 30, 2021, $3.3 million for the fiscal year ended September 30, 2020 and $5.2 million for the fiscal year ended September 30, 2019. The benefit of the tax holidays on net income per diluted share was $0.06, $0.05 and $0.08 during fiscal years ended September 30, 2021, 2020 and 2019.

With regard to our non-U.S. subsidiaries, it is our practice and intention to reinvest the earnings in those businesses, to fund capital expenditures and other operating cash needs. Because the undistributed earnings of non-U.S. subsidiaries are considered to be permanently reinvested, no U.S. deferred income taxes or foreign withholding taxes have been provided on earnings subsequent to the enactment of the Tax Act. As of September 30, 2021, we have approximately $83.5 million of undistributed
earnings in our non-U.S. subsidiaries that are considered to be permanently reinvested. If such earnings were repatriated, we do not anticipate incurring a significant amount of additional tax expense.

We file a consolidated federal income tax return as well as multiple state, local and foreign jurisdiction tax returns. In the normal course of business, we are subject to examination by the taxing authorities in each of the jurisdictions where we file tax returns. During fiscal year ended September 30, 2021, the U.S. Internal Revenue Service (“IRS”) concluded its audit of fiscal year ended September 30, 2019 and initiated its post-filing examination of the fiscal year ended September 30, 2020 consolidated federal return. We continue to participate in the IRS Compliance Assurance Program (“CAP”) for fiscal year ended September 30, 2021 and fiscal year end September 30, 2022. We are in the application process to remain in the CAP for fiscal year end September 30, 2023. The CAP provides the opportunity for the IRS to review certain tax matters prior to us filing our tax return for the year, thereby reducing the time it takes to complete the post-filing examination. We are also subject to state and local or foreign income tax examinations by taxing authorities for years back to fiscal year ended September 30, 2016.

We also have on-going audits in various stages of completion in several state and foreign jurisdictions, one or more of which may conclude within the next 12 months. Such settlements could involve some or all of the following: the payment of additional taxes and related penalties, the adjustment of certain deferred taxes and/or the recognition of unrecognized tax benefits. The resolution of these matters, in combination with the expiration of certain statutes of limitations in various jurisdictions, make it reasonably possible that our unrecognized tax benefits may decrease as a result of either payment or recognition by up to $2.0 million in the next 12 months, excluding interest.

The total amount of gross unrecognized tax benefits as of September 30, 2021, 2020 and 2019 were $2.7 million, $3.9 million and $9.6 million, which includes $2.5 million, $3.5 million and $9.3 million that, if recognized, would impact the effective tax rate in future periods. The remaining amount relates to items which, if recognized, would not impact our effective tax rate.

A rollforward of the beginning and ending amount of unrecognized tax benefits is as follows:
(In millions)Year Ended September 30
 202120202019
Balance as of October 1$3.9 $9.6 $6.2 
Increases in tax position of prior years0.2 — 5.8 
Settlements with taxing authorities— (5.8)(1.1)
Lapse of applicable statute of limitations(1.4)(0.2)(1.0)
Foreign currency adjustments— 0.3 (0.3)
Total change(1.2)(5.7)3.4 
Balance as of September 30$2.7 $3.9 $9.6 

We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Accrued interest and penalties, which are not presented in the rollforward table above, were $1.2 million, $1.4 million and $1.7 million as of September 30, 2021, 2020 and 2019. Related to interest and penalties, we recognized an income tax benefit of $0.3 million, $0.4 million, and $0.4 million as of September 30, 2021, 2020 and 2019.
v3.21.2
Earnings per Common Share
 12 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Earnings per Common Share
Note 12. Earnings per Common Share

Basic earnings per share is calculated based upon the weighted average number of outstanding common shares for the period, plus the effect of deferred vested shares. Diluted earnings per share is calculated consistent with the basic earnings per share calculation plus the effect of dilutive unissued common shares related to stock-based employee compensation programs. For all periods presented, anti-dilutive stock options were excluded from the calculation of diluted earnings per share. Cumulative
treasury stock acquired, less cumulative shares reissued, have been excluded in determining the average number of shares outstanding.

Earnings per share are calculated as follows (in millions, except share information in thousands):
Year Ended September 30
 202120202019
Net Income$248.5 $223.0 $152.2 
Net Income per Basic Common Share$3.75 $3.35 $2.28 
Net Income per Diluted Common Share$3.72 $3.32 $2.25 
Average Basic Common Shares Outstanding 66,204 66,631 66,772 
Add: Potential effect of exercise of stock options and other unvested equity awards643 581 888 
Average Diluted Common Shares Outstanding 66,847 67,212 67,660 
Shares with anti-dilutive effect excluded from the computation of Diluted EPS
272 342 288 
v3.21.2
Segment Reporting
 12 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We disclose segment information that is consistent with the way in which management operates and views the business. Our operating structure contains the following reportable segments:
•Patient Support Systems – globally provides an ecosystem of our digital and connected care solutions: devices, software, communications and integration technologies that improve care and deliver actionable insights to caregivers and patients in the acute care setting. Key products include care communications and mobility solutions, connected med-surg and ICU bed systems, sensors and surfaces, safe patient handling equipment and services.

•Front Line Care – globally provides integrated patient monitoring and diagnostic technologies – from hospital to home – that enable and support Hillrom’s connected care strategy. Our diverse portfolio includes secure, connected, digital assessment technologies to help diagnose, treat and manage a wide variety of illnesses and diseases, including respiratory therapy, cardiology, vision screening and physical assessment.

•Surgical Solutions – globally enables peak procedural performance, connectivity and video integration products that improve collaboration, workflow, safety and efficiency in the operating room, such as surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories.

Our performance within each reportable segment continues to be measured on a divisional income basis before non-allocated operating and administrative costs, litigation, special charges, acquisition and integration costs, acquisition-related intangible asset amortization, and other unusual events. Divisional income generally represents the division’s gross profit, excluding acquisition-related intangible asset amortization, less its direct operating costs along with an allocation of manufacturing and distribution costs, research and development and certain corporate functional expenses.

Non-allocated operating costs, administrative costs, and other includes functional expenses that support the entire organization such as administration, finance, legal and human resources, expenses associated with strategic developments, acquisition-related intangible asset amortization, and other events that are not indicative of operating trends. We exclude such amounts from divisional income to allow management to evaluate and understand divisional operating trends. The chief operating decision maker does not receive any asset information by reportable segment and, accordingly, we do not report asset information by reportable segment.

Effective in the fiscal year ended September 30, 2020, the allocation of operating costs to each segment was modified to improve the alignment to how management evaluates the performance of each segment. The fiscal year ended September 30, 2019 segment information has been recast to conform to the current presentation. The reclassification did not impact our reported Consolidated Net Revenue or Income Before Income Taxes.
The following summarizes financial results by reportable segment:
(In millions)Year Ended September 30
 202120202019
Net Revenue - United States:  
Patient Support Systems$1,162.1 $1,133.6 $1,135.0 
Front Line Care785.7 707.4 700.6 
Surgical Solutions150.4 125.8 221.2 
Total net revenue - United States$2,098.2 $1,966.8 $2,056.8 
Net Revenue - Outside of the United States (“OUS”):
Patient Support Systems$406.2 $405.5 $355.5 
Front Line Care331.3 317.6 277.5 
Surgical Solutions183.0 191.1 217.5 
Total net revenue - OUS$920.5 $914.2 $850.5 
Net Revenue:
Patient Support Systems$1,568.3 $1,539.1 $1,490.5 
Front Line Care1,117.0 1,025.0 978.1 
Surgical Solutions333.4 316.9 438.7 
Total net revenue$3,018.7 $2,881.0 $2,907.3 
Divisional income:  
Patient Support Systems$356.1 $332.3 $299.9 
Front Line Care348.8 301.8 266.4 
Surgical Solutions51.6 39.5 61.2 
Other operating costs:  
Non-allocated operating costs, administrative costs, and other308.9 264.4 283.0 
Special charges47.4 41.5 28.4 
Operating profit$400.2 $367.7 $316.1 
Interest expense(65.6)(74.0)(89.6)
Loss on extinguishment of debt(9.8)(15.6)(3.3)
Investment income and other, net(22.0)(6.9)(14.6)
Income before income taxes$302.8 $271.2 $208.6 
Depreciation and amortization of property, plant, equipment and intangibles:
Patient Support Systems $52.0 $43.5 $36.2 
Front Line Care90.0 95.4 101.9 
Surgical Solutions8.4 7.4 28.4 
Corporate35.4 32.5 28.3 
Total depreciation and amortization of property, plant, equipment and intangibles$185.8 $178.8 $194.8 
Geographic Information

Geographic data for net revenue and long-lived assets were as follows:
(In millions)Year Ended September 30
 202120202019
Net revenue to unaffiliated customers:   
United States$2,098.2 $1,966.8 $2,056.8 
Foreign920.5 914.2 850.5 
Total net revenue$3,018.7 $2,881.0 $2,907.3 
Long-lived assets:    
United States$217.2 $222.7 $212.5 
Foreign70.9 83.4 84.3 
Total long-lived assets$288.1 $306.1 $296.8 

Net revenue in the above table is attributed to geographic areas based on the location of the customer.
v3.21.2
Commitments and Contingencies
 12 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
General

We are subject to various other claims and contingencies arising out of the normal course of business, including those relating to governmental investigations and proceedings, commercial transactions, product liability, employee related matters, antitrust, safety, health, taxes, environmental and other matters. Litigation is subject to many uncertainties and the outcome of individual litigated matters is not predictable with assurance. It is possible that some litigation matters for which reserves have not been established could be decided unfavorably to us, and that any such unfavorable decisions could have a material adverse effect on our financial condition, results of operations and cash flows.

The Company has received a subpoena from the United States Office of Inspector General for the Department of Health and Human Services (the “DHHS”) requesting documents and information related to compliance with the False Claims Act (“FCA”) and the Anti-Kickback Statute (the “AKS”) by certain of its subsidiaries with respect to the Company’s direct to consumer business. The Company has voluntarily contacted DHHS with respect to these matters including its compliance with the FCA and the AKS. The Company is conducting an ongoing internal review and cooperating fully with the DHHS with respect to these matters.

At this stage of the inquiries, the Company is unable to predict the ultimate outcome of these matters or what impact, if any, the outcome of these matters might have on the Company's consolidated financial position, results of operations or cash flows. Violations of the FCA and AKS may result in a range of possible penalties, however, at this time, no claims have been made against the Company.

On January 15, 2021, we entered into a definitive merger agreement with Bardy. On February 21, 2021, as a result of certain unexpected reimbursement rate reductions, Hillrom asserted that a "Company Material Adverse Effect" occurred, and therefore the closing conditions were not satisfied. On February 28, 2021, Bardy filed a complaint against Hillrom in the Court of Chancery of the State of Delaware seeking, among other things, specific performance to compel Hillrom to close the transaction.

Following a trial, on July 9, 2021, the Court of Chancery of the State of Delaware ordered Hillrom to proceed with the closing of the Bardy transaction, denying Hillrom’s claim of a "Company Material Adverse Effect" and ending the litigation. Hillrom subsequently closed the Bardy transaction on August 6, 2021. See Note 3. Business Combinations for further information.

As of November 11, 2021, nine lawsuits have been filed by purported Hillrom shareholders in connection with the Merger with Baxter. Each of the lawsuits seeks, among other things, to enjoin Hillrom from consummating the Merger, or in the alternative, rescission of the Merger and/or compensatory damages, as well as attorney’s fees. The lawsuits generally allege that the preliminary proxy statement (the “Proxy Statement”) filed by Hillrom in connection with the Merger fails to disclose allegedly material information in violation of Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder. Hillrom believes that the allegations in the complaints are without merit. Additional lawsuits arising out of the Merger may also be filed in the future.
Self-Insurance

We are involved in various claims, including product and general liability, workers’ compensation, auto liability and employment related matters. Such claims in the United States have deductibles and self-insured retentions at various limits up to $1.0 million per occurrence or per claim, depending upon the type of coverage and policy period. International deductibles and self-insured retentions are lower. We are also generally self-insured up to certain stop-loss limits for certain employee health benefits, including medical, drug and dental. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims and outside actuarial analysis, which are based on historical information along with certain assumptions about future events. Such estimated reserves are classified as Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets.
v3.21.2
Valuation and Qualifying Accounts
 12 Months Ended
Sep. 30, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Valuation and Qualifying Accounts
Valuation and Qualifying Accounts

Fiscal years ended September 30, 2021, 2020 and 2019

(In millions)
  ADDITIONS   
DESCRIPTIONBALANCE AS OF
BEGINNING
OF PERIOD		CHARGED TO
COSTS AND
EXPENSES		CHARGED TO
OTHER
ACCOUNTS		DEDUCTIONS
NET OF
RECOVERIES		 BALANCE
AS OF END
OF PERIOD
Reserves deducted from assets to which they apply:      
Allowance for possible losses and sales returns - accounts receivable:      
Fiscal Year Ended:      
September 30, 2021$25.9 $2.4 $5.7 1$(8.6)2$25.4 
September 30, 202020.6 8.8 (0.3)1(3.2)225.9 
September 30, 201921.8 5.0 0.7 1(6.9)220.6 
Valuation allowance against deferred tax assets:      
Fiscal Year Ended:      
September 30, 2021$50.8 $1.2 $1.1 $(0.1)$53.0 
September 30, 202045.0 4.6 0.5 30.7 50.8 
September 30, 201980.2 2.2 4.5 3(41.9)445.0 

1 Reduction of gross revenue for uncollectible health care rental reimbursements, cash discounts and other adjustments in determining net revenue. Also includes the effect of acquired businesses, if any.
2 Generally reflects the write-off of specific receivables against recorded reserves.
3 Generally reflects the effect of acquired businesses, if any.
4 Primarily reflects utilization of valuation allowance as a result of forfeitures on net operating losses.
v3.21.2
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Nature of Operations
Nature of Operations

Hill-Rom Holdings, Inc. (the “Company,” “Hillrom,” “we,” “us,” or “our”) was incorporated on August 7, 1969, in the State of Indiana and is headquartered in Chicago, Illinois. We are a global medical technology leader whose approximately 10,000 employees have a single purpose: enhancing outcomes for patients and their caregivers by Advancing Connected Care™. Around the world, our innovations touch over 7 million patients each day. Our products and services help enable earlier diagnosis and treatment, optimize surgical efficiency and accelerate patient recovery while simplifying clinical communication and shifting care closer to home. We make these outcomes possible through digital and connected care solutions and collaboration tools, including smart bed systems, patient monitoring and diagnostic technologies, respiratory health devices, advanced equipment for the surgical space and more, delivering actionable, real-time insights at the point of care.
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation

The Consolidated Financial Statements include the accounts of Hillrom and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Where our ownership interest is less than 100%, the noncontrolling interests are reported in our Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to the current year presentation.

Prior Period Reclassification

During fiscal year ended September 30, 2020, we presented Acquisition-related intangible asset amortization as a separate line item on our Statements of Consolidated Income for all periods presented. Acquisition-related intangible asset amortization was previously included in Selling and administrative expenses. Additionally, we no longer present Gross Profit as a subtotal on our Statements of Consolidated Income.

The following table presents Acquisition-related intangible asset amortization and Selling and administrative expenses, excluding the Acquisition-related intangible asset amortization, for the fiscal year ended September 30, 2019.

(In millions)Year Ended September 30, 2019
Selling and administrative expense, previously reported$941.0 
Less: Acquisition-related intangible asset amortization(122.4)
Selling and administrative expense, currently reported$818.6 
Cash and Cash Equivalents
Cash and Cash Equivalents

We consider deposits with banks as well as investments in marketable securities with original maturity of three months or less at date of purchase to be cash equivalents.
Trade Accounts Receivable
Trade Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest, unless the transaction is an installment sale with extended payment terms. Allowances for doubtful accounts are recorded as a component of Selling and administrative expenses and represent our best estimate of the amount of probable credit losses and collection risk in our existing accounts receivable. Receivables are generally reviewed for collectability based on historical collection experience for each receivable type and are also reviewed individually for collectability. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers.

Within rental revenue, domestic third-party payers’ reimbursement process requires extensive documentation, which has had the effect of slowing both the billing and cash collection cycles relative to the rest of the business, and therefore, increasing total accounts receivable. Because of the extensive documentation required and the requirement to settle a claim with the primary payer prior to billing the secondary and/or patient portion of the claim, the collection period for a claim in a portion of our business may, in some cases, be extended.

We generally hold our trade accounts receivable until they are paid. Certain long-term receivables are occasionally sold to third parties; however, any recognized gain or loss on such sales has historically not been material.
Inventories InventoriesDuring the fourth quarter of 2021, we changed our method of accounting for inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method for the remaining of our inventory that was valued using LIFO.
Property, Plant and Equipment
Property, Plant and Equipment

Property, plant and equipment is recorded at cost and depreciated over the estimated useful life of the assets using principally the straight-line method. Ranges of estimated useful lives are as follows:
 Useful Life
Land improvements6 - 15 years
Buildings and building equipment10 - 40 years
Machinery and equipment3 - 10 years
Equipment leased to others2 - 10 years

When property, plant and equipment is retired from service or otherwise disposed of, the cost and related amount of depreciation is eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds on sale are charged or credited to income.

Total depreciation expense during fiscal years ended September 30, 2021, 2020 and 2019 was $62.8 million, $60.6 million and $62.1 million. The major components of property, plant and equipment and the related accumulated depreciation were as follows:
(In millions)Year Ended September 30
 20212020
CostAccumulated
Depreciation		CostAccumulated
Depreciation
Land and land improvements$15.9 $4.8 $16.9 $4.4 
Buildings and building equipment210.4 105.0 208.2 95.4 
Machinery and equipment437.2 325.5 416.3 303.4 
Equipment leased to others212.3 152.4 216.8 148.9 
Total$875.8 $587.7 $858.2 $552.1 
Fair Value Measurements
Fair Value Measurements

Fair value measurements are classified and disclosed in one of the following three categories:
 
•Level 1: Financial instruments with unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.

•Level 2: Financial instruments with observable inputs other than those included in Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3: Financial instruments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs reflect our own assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include our own data.

We record cash and cash equivalents, as disclosed on our Consolidated Balance Sheets, as Level 1 instruments and certain other investments and derivatives as Level 2 instruments as they are not actively quoted. Refer to Note 5. Financing Agreements for disclosure of our debt instrument fair values.
Guarantees
Warranties and Guarantees

We routinely grant limited warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year; however, certain components and products have substantially longer warranty periods. We recognize a reserve with respect to these obligations at the time of product sale, with subsequent warranty claims recorded directly against the reserve. The amount of the warranty reserve is determined based on historical trend experience for the covered products. For more significant warranty-related matters, which might require a field corrective action, separate reserves are established when such events are identified and the cost of correction can be reasonably estimated.

In the normal course of business, we enter into various other guarantees and indemnities in our relationships with suppliers, service providers, customers, business partners and others. Examples of these arrangements would include guarantees of product performance, indemnifications to service providers and indemnifications of our actions to business partners. These guarantees and indemnifications have not historically had a material impact on our financial condition or results of operations, nor do we expect them to although indemnifications associated with our actions generally have no dollar limitations.

In conjunction with our acquisition and divestiture activities, we entered into select guarantees and indemnifications of performance with respect to the fulfillment of our commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. With respect to divestitures, we also routinely enter into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have an adverse impact on our Consolidated Financial Statements.

The following summarizes accrued product warranty activity for the fiscal years ended September 30, 2021 and 2020:
(In millions)Year Ended September 30
 20212020
Balance at the beginning of the period$30.8 $29.7 
Provision for warranties in the period22.5 18.3 
Warranty claims incurred in the period(23.8)(17.5)
Foreign currency translation adjustment0.1 0.3 
Balance at the end of the period$29.6 $30.8 
Accrued Rebates Accrued RebatesWe provide rebates and sales incentives to certain customer groups and distributors. We also have arrangements where we provide rebates to certain distributors that sell to end-user customers at prices determined under a contract between us and the end-user customer. Provisions for rebates are recorded as a reduction in net revenue when revenue is recognized.
Retirement Plans
Retirement Plans

We sponsor retirement and postretirement benefit plans covering certain employees. Expense recognized in relation to these defined benefit retirement and postretirement health care plans is based upon actuarial valuations and inherent in those valuations are key assumptions including discount and mortality rates, and where applicable, expected returns on assets, projected future salary rates and projected health care cost trends. The discount rates used in the valuation of our defined benefit pension and postretirement plans 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, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our obligations. Our overall expected long-term rate of return on pension assets 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. Our rate of assumed compensation increase is also based on our specific historical trends wage adjustments.

We account for our defined benefit pension and other postretirement plans by recognizing the funded status of a benefit plan in the balance sheet. We also recognize in Accumulated other comprehensive income (loss) certain gains and losses that arose in the period. See Note 8. Retirement and Postretirement Benefit Plans for key assumptions and further discussion related to our pension and postretirement plans.
Environmental Liabilities
Environmental Liabilities

Expenditures that relate to an existing environmental condition caused by past operations, and which do not contribute to 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 from third parties.

Specific costs included in environmental expense and reserves include site assessment, development of a remediation plan, clean-up costs, post-remediation expenditures, monitoring, fines, penalties and legal fees. Reserve amounts represent the expected undiscounted future cash outflows associated with such plans and actions.
Self Insurance
Self-Insurance

We are generally self-insured up to certain stop-loss limits for certain employee health benefits, including medical, drug and dental. Our policy is to estimate reserves based upon several factors including known claims, estimated incurred but not reported claims and outside actuarial analysis, which are based on historical information along with certain assumptions about future events. Such estimated reserves are classified as Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. Refer to Note 15. Commitments and Contingencies for further information.
Treasury Stock
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. The difference between proceeds and the cost basis of the treasury stock is recorded to Additional paid-in capital.
Revenue Recognition - Sales and Rentals
Revenue Recognition — Sales and Rentals

Revenue is presented in the Consolidated Statements of Income net of sales discounts and allowances, GPO fees, price concessions, rebates and customer returns for products sales and rental revenue services.

Disaggregation of Revenue

The Company disaggregates revenue recognized from contracts with customers by geography and reportable segments consistent with the way in which management operates and views the business. See Note 14. Segment Reporting for the presentation of the Company's revenue disaggregation.

Performance Obligations & Transaction Price Determination

Revenue is recognized as performance obligations are satisfied, either at a point in time or over time, driven by the nature of the performance obligation that is contracted to be provided to our customers. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the contract. Revenue is measured as the
amount of consideration we expect to receive in exchange for satisfying the performance obligations. Certain of our contracts have multiple performance obligations. A contract’s transaction price is allocated to the distinct performance obligations and recognized as revenue when, or as, each performance obligation is satisfied. We allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract.

The majority of our product sales revenue is recognized at a point in time, primarily based on the transfer of title, except in circumstances where we are also required to install the equipment, for which revenue is recognized upon customer acceptance of the installation. Performance obligations involving the provision of services and revenue from rental usage of our products are recognized over the time period specified in the contractual arrangement with the customer.

Revenue is presented net of several types of variable consideration including rebates, discounts and product returns, which are estimated at the time of sale generally using the expected value method, although the most likely amount method is also used for certain types of variable consideration. These estimates take into consideration historical experience, current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns.

Deferred Contract Costs

Certain costs associated with obtaining or fulfilling a contract with a customer (collectively referred to as “deferred contract costs”) are capitalized until such time as the related performance obligations are completed and the related revenue is recognized. Deferred contract costs are recorded as Other current assets and Other assets.

Costs to obtain a contract are primarily comprised of sales commissions paid upon receipt of a purchase order for certain products, primarily care communications. Commissions are expensed commensurate with the timing of revenue recognition, which is generally 1 to 36 months.

Costs to fulfill a contract includes equipment, installation and other costs directly related to certain performance obligations not completed. These costs primarily relate to our care communications products and other construction projects that require installation or ongoing service maintenance. These costs are expensed commensurate with the timing of revenue recognition, which is generally 6 to 24 months.

The following table summarizes deferred contract cost balances for the fiscal year ended September 30, 2021:
(In millions)September 30, 2021
Ending BalanceAmortizationStatement of Consolidated Income Classification
Costs to obtain a contract
Other current assets$9.8 $(6.5)Selling and administrative expenses
Other assets2.5 — 
Costs to fulfill a contract
Other current assets$22.0 $(76.4)Cost of goods sold
Other assets6.0 — 
Contract Balances

Contract liabilities represent deferred revenues that arise as a result of cash received from customers at inception of contracts or where the timing of billing for services precedes satisfaction of our performance obligations. Such remaining performance obligations represent the portion of the contract price for which work has not been performed and are primarily related to our installation and service contracts. These contract liabilities are recorded in Deferred revenue and Other long-term liabilities. We expect to satisfy the majority of the remaining performance obligations and recognize revenue related to installation and service contracts within 6 to 24 months.

The nature of our products and services does not give rise to contract assets as we typically do not have instances where a right to payment for goods and services already transferred to a customer exists that is conditional on something other than the passage of time.
The contract liability balance represents the transaction price allocated to the remaining performance obligations. The following table summarizes contract liability activity for the fiscal year ended September 30, 2021.
(In millions)
Contract
Liabilities
Balance at the beginning of the period$138.1 
Deferred revenue acquired1.1 
New revenue deferrals543.4 
Revenue recognized upon satisfaction of performance obligations(546.5)
Foreign currency translation adjustment2.4 
Balance at the end of the period$138.5 
Accounting & Practical Expedient Elections
We account for shipping and handling activities as fulfillment costs within Cost of goods sold. These activities are not considered to be a separate performance obligation. Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between us and our customers, including but not limited to sales taxes, use taxes and value added taxes, are excluded from revenue and cost.

We adopted the significant financing practical expedient under which the impacts of financing are considered immaterial if the duration of the financing is one year or less. Customer payments are due at various times up to 90 days from the date of invoice, though in some countries and for certain customer types, credit terms are longer based on local industry standard.
Cost of Revenue
Cost of Net Revenue

Cost of goods sold for product sales consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, overhead costs and costs associated with the distribution and delivery of products to our customers. Rental expenses consist of costs associated directly with rental revenue, including depreciation, maintenance, logistics and service center facility and personnel costs.
Comprehensive Income
Comprehensive Income

We include the after-tax effect of unrealized gains or losses on interest and foreign currency hedges, foreign currency translation adjustments and pension or other defined benefit postretirement plans’ actuarial gains or losses and prior service costs or credits in Accumulated other comprehensive income (loss). See Note 9. Other Comprehensive Income of our Consolidated Financial Statements for further details.
Foreign Currency Translation
Foreign Currency

The functional currency of foreign operations is generally the local currency in the country of domicile. Assets and liabilities of foreign operations are primarily translated into U.S. dollars at year-end rates of exchange and the income statements are translated at the average rates of exchange prevailing in the year. Adjustments resulting from translation of the financial statements of foreign operations into U.S. dollars are excluded from the determination of net income, but included as a component of Accumulated other comprehensive income (loss). Foreign currency gains and losses resulting from foreign currency transactions are included in our results of operations and are not material. Foreign currency movements on items designated as net investment hedges were recorded in Accumulated other comprehensive income (loss).
Stock-Based Compensation Stock-Based CompensationWe account for stock-based compensation under fair value provisions. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. We estimate forfeitures on stock-based compensation, which are based on historical and expected forfeiture rates. In order to determine the fair value of stock options on the date of grant, we utilize a Binomial model. In order to determine the fair value of other performance-based stock awards on the date of grant, we utilize a Monte Carlo model. Inherent in these models are assumptions related to a volatility factor, expected life, risk-free interest rate, dividend yield and expected forfeitures. The risk-free interest rate is based on factual data derived from public sources. The volatility factor, expected life, dividend yield and expected forfeiture assumptions require judgment utilizing historical information, peer data and future expectations. Restricted stock units (“RSUs”) are measured based on the fair market price of our common stock on the date of grant, as reported by the New York Stock Exchange, multiplied by the number of units granted. See Note 13. Common Stock for further details.
Income Taxes
Income Taxes

Hillrom and its eligible subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. We have a variety of deferred tax assets in numerous tax jurisdictions which are computed using an asset and liability approach to reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. These deferred tax assets are subject to periodic assessment as to recoverability. If it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recognized. In evaluating whether it is more likely than not that we would recover these deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies are considered.

As of fiscal year ended September 30, 2021, we had valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to certain foreign deferred tax attributes that are not expected to be utilized. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances.

We account for uncertain income tax positions using a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The difference between the tax benefit recognized in the financial statements for an uncertain income tax position and the tax benefit claimed in the tax return is referred to as an unrecognized tax benefit. See Note 11. Income Taxes for further details.
Derivative Instruments and Hedging Activity
Derivative Instruments and Hedging Activity

We use derivative financial instruments to manage the economic impact of fluctuations in currency exchange and interest rates. Derivative financial instruments related to currency exchange rates include forward purchase and sale agreements that generally have terms no greater than 12 months. Additionally, interest rate swaps and cross-currency interest rate swaps are sometimes used to convert some or all of our long-term debt to either a fixed or variable rate.
Derivative financial instruments are recognized in the Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in the Statement of Consolidated Income or the Statement of Consolidated Comprehensive Income (Loss), depending on whether a derivative is designated and considered effective as part of a hedge transaction, and if it is, the type of hedge transaction. The Company's derivatives are considered to be highly effective under hedge accounting principles. The Company does not hold or issue derivative financial instruments for speculative purposes. As a result of being effective, gains and losses on derivative instruments reported in Accumulated other comprehensive income (loss) are subsequently included in the Statement of Consolidated Income in the periods in which earnings are affected by the hedged item. These activities have not had a material effect on our Consolidated Financial Statements for the periods presented herein.
Goodwill and Intangible Assets, Goodwill, Policy
Goodwill

Goodwill represents the excess of the purchase price paid over the estimated fair value of the net assets acquired and liabilities assumed in the acquisition of a business. Goodwill is not amortized, but is tested for impairment at least annually or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. See Note 4. Goodwill and Intangible Assets for further information.
Research, Development, and Computer Software, Policy
Research and Development Costs

Research and development costs relate primarily to internal costs for salaries and direct overhead expenses as well as the cost of outside vendors to conduct R&D activities. These costs are expensed as incurred. In addition, certain costs for software development technology held for sale are capitalized as intangibles when technological feasibility in the software is established and are amortized over a period of three years to five years once the software is ready for its intended use. The amounts capitalized during fiscal years ended September 30, 2021, 2020 and 2019 were approximately $10.1 million, $15.3 million and $8.0 million.
v3.21.2
Supplementary Financial Statement Information (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Product Warranty Liability [Line Items]      
Standard Product Warranty Accrual $ 29,600,000 $ 30,800,000 $ 29,700,000
Standard and Extended Product Warranty Accrual, Foreign Currency Translation Gain (Loss) 100,000 300,000  
Payments to Acquire Investments 0 0 (26,600,000)
Research and Development Expense 144,900,000 136,500,000 139,500,000
Capitalized Computer Software, Additions 10,100,000 15,300,000 8,000,000
Depreciation 62,800,000 60,600,000 62,100,000
Equity Method Investment, Aggregate Cost 3,100,000    
Loss on Sale of Investments   (300,000)  
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net   (1,700,000)  
Investments 22,300,000 49,000,000.0  
Income Taxes Paid 56,800,000 88,000,000.0 54,400,000
Interest Paid, Including Capitalized Interest, Operating and Investing Activities 57,100,000 72,400,000 91,800,000
Capital Expenditures Incurred but Not yet Paid (12,500,000) 4,900,000 8,000,000.0
Equity Method Investment, Realized Gain (Loss) on Disposal 0 2,100,000  
Non-cash Investing Activities 14,800,000 7,000,000.0 8,000,000.0
Net income 44,500,000 37,800,000 33,900,000
Restricted Stock or Unit Expense 40,100,000 30,000,000.0 15,400,000
Asset Acquisition, Consideration Transferred 25,500,000    
Treasury Stock [Member]      
Net income $ 25,400,000 $ 26,700,000 $ 22,700,000
v3.21.2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Schedule of Ranges of Estimated Useful Lives Ranges of estimated useful lives are as follows:
 Useful Life
Land improvements6 - 15 years
Buildings and building equipment10 - 40 years
Machinery and equipment3 - 10 years
Equipment leased to others2 - 10 years
Schedule of Expected Amortization Expense Amortization expense for definite-lived intangible assets is expected to approximate the following for each of the next five fiscal years and thereafter:
(In millions)Amount
2022$120.7 
2023100.9 
202485.6 
202566.7 
202654.8 
2027 and beyond89.2 
v3.21.2
Goodwill and Indefinite-Lived Intangible Assets (Tables)
 12 Months Ended
Sep. 30, 2021
Finite-Lived Intangible Assets [Line Items]  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] Amortization expense for definite-lived intangible assets is expected to approximate the following for each of the next five fiscal years and thereafter:
(In millions)Amount
2022$120.7 
2023100.9 
202485.6 
202566.7 
202654.8 
2027 and beyond89.2 
Schedule of Finite-Lived Intangible Assets [Table Text Block]
Many of our intangible assets are not deductible for income tax purposes. A summary of intangible assets and the related accumulated amortization follows:
(In millions)September 30
 20212020
CostAccumulated AmortizationCostAccumulated Amortization
Customer relationships$638.1 $416.9 $633.2 $358.7 
Trademarks and trade names50.0 32.5 45.3 25.7 
Developed technology297.8 153.3 287.9 116.5 
Software 1
Software for internal use
161.3 127.6 159.3 119.2 
Software to be sold 73.8 33.3 55.1 29.5 
Other 2
86.0 25.5 25.8 17.7 
Total definite-lived$1,307.0 $789.1 $1,206.6 $667.3 
Indefinite-lived 3
437.4 — 437.4 — 
Total identifiable intangible assets$1,744.4 $789.1 $1,644.0 $667.3 
1 Software consists mainly of capitalized costs associated with internal use software, including applicable costs associated with the implementation and upgrade of our enterprise resource planning systems. In addition, software includes capitalized development costs for software products to be sold. Software amortization expense was $14.4 million, $9.2 million and $10.3 million for the fiscal years ended September 30, 2021, 2020 and 2019 and was primarily included in Selling and administrative expenses.
2 Other intangible assets primarily comprised of patents, non-competition agreements and intellectual property rights.
3 Indefinite-lived intangible assets represent primarily the Welch Allyn trade name with a carrying value of $434.0 million as of September 30, 2021 and 2020.
Schedule of Goodwill Activity
The following summarizes goodwill activity by reportable segment:
(In millions)Patient Support SystemsFront Line CareSurgical Solutions Total
Balances as of September 30, 2019
Goodwill$640.5 $1,424.7 $208.5 $2,273.7 
Accumulated impairment losses(472.8)— — (472.8)
Goodwill, net as of September 30, 2019167.7 1,424.7 208.5 1,800.9 
Changes in Goodwill in the period:
Goodwill related to acquisitions10.6 4.4 10.0 25.0 
Currency translation effect2.4 3.5 3.7 9.6 
Balances as of September 30, 2020
Goodwill653.5 1,432.6 222.2 2,308.3 
Accumulated impairment losses(472.8)— — (472.8)
Goodwill, net as of September 30, 2020180.7 1,432.6 222.2 1,835.5 
Changes in Goodwill in the period:    
Goodwill related to acquisitions (0.6)383.8 0.1 383.3 
Currency translation effect(0.8)3.9 (0.2)2.9 
Balances as of September 30, 2021    
Goodwill652.1 1,820.3 222.1 2,694.5 
Accumulated impairment losses(472.8)— — (472.8)
Goodwill, net as of September 30, 2021$179.3 $1,820.3 $222.1 $2,221.7 
v3.21.2
Financing Agreements (Tables)
 12 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of Debt Total debt consists of the following:
(In millions)September 30,
2021		September 30, 2020
Current portion of long-term debt$50.1 $50.1 
Securitization Facility95.6 82.2 
Note Securitization Facility90.0 90.0 
Total Short-term borrowings$235.7 $222.3 
Revolving credit facility, matures August 2024$515.0 $— 
Senior secured Term Loan A, long-term-portion, matures August 2024$846.7 895.4 
Senior unsecured 5.00% notes due on February 15, 2025$— 297.5 
Senior unsecured 4.375% notes due on September 17, 2027$420.3 419.5 
Unsecured 7.00% debentures due on February 15, 2024$13.4 13.4 
Unsecured 6.75% debentures due on December 15, 2027$29.7 29.7 
Other$0.1 0.2 
Total Long-term debt$1,825.2 $1,655.7 
Total debt$2,060.9 $1,878.0 
Schedule of Maturities of Long-term Debt The following table summarizes the maturities of the 2024 TLA Facility for the fiscal years ending September 30, 2022 through 2024:
(In millions)Amount
2022$50.0 
202375.0 
2024775.0 
Schedule of Long-term Debt Instruments
The estimated fair values of our long-term debt instruments are described in the table below:
(In millions)September 30,
2021		September 30, 2020
Senior unsecured 5.00% notes due on February 15, 2025$— $310.1 
Senior unsecured 4.375% notes due on September 15, 2027445.4 441.2 
Unsecured debentures48.6 48.0 
Total$494.0 $799.3 
v3.21.2
Derivative Instruments and Hedging Activity (Tables)
 12 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value The estimated fair values of our derivative instruments are described in the table below:
(In millions)

Derivative Instruments
September 30, 2021September 30, 2020Consolidated Balance Sheet Classification
Interest Rate Swaps$(22.2)$(46.3)Other current liabilities
Currency Exchange Contracts— (0.4)Other current liabilities
Cross-Currency Swaps8.5 9.7 Other assets
Undesignated Forward Contracts0.4 — Other assets
Undesignated Forward Contracts(1.0)— Other current liabilities
Total$(14.3)$(37.0)
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location The following table summarizes unrealized and realized gains and losses for forward contracts not designated as hedges, which are recorded in Investment income (expense) and other, net.
(In millions)Year Ended September 30
20212020
Unrealized gains (losses)$(0.5)$— 
Realized gains (losses)(5.1)3.0 
v3.21.2
Leases, Codification Topic 842 (Tables)
 12 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Schedule of Future Minimum Rental Payments
Disclosures Related to Periods Prior to Adopting the New Lease Guidance

Future minimum payments under non-cancellable operating leases (excluding executory costs) aggregating $47.8 million for manufacturing facilities, warehouse distribution centers, service centers, sales offices, automobiles, and other equipment consisted of the following as of the fiscal year ended September 30, 2021:
(In millions)Amount
2022$15.7 
202311.1 
20246.4 
2025 and beyond14.6 
Lessee, Operating Lease, Liability, Maturity
The following table summarizes the maturities of our operating leases as of September 30, 2021:
(In millions)Amount
2022$24.6 
202318.9 
202412.5 
20258.2 
20266.3 
Thereafter8.7 
Total lease payments79.2 
Less: imputed interest(5.9)
Total lease liability$73.3 
v3.21.2
Retirement and Postretirement Benefit Plans (Tables)
 12 Months Ended
Sep. 30, 2021
Master Defined Benefit Retirement Plan [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Components of Net Pension Expense The following table details the components of net pension expense for our defined benefit retirement plans:
(In millions)Year Ended September 30Statements of Consolidated
 202120202019Income Classification
Service cost$1.7 $1.8 $1.8 Cost of goods sold
Service cost3.4 3.4 2.7 Selling and administrative expenses
Interest cost7.4 8.7 12.5 Investment income (expense) and other, net
Expected return on plan assets(11.8)(14.0)(14.8)Investment income (expense) and other, net
Amortization of unrecognized prior service cost, net0.1 — 0.1 Investment income (expense) and other, net
Amortization of net loss6.3 6.9 2.4 Investment income (expense) and other, net
Net periodic benefit cost 7.1 6.8 4.7 
Settlement loss 1
— 8.5 — Investment income (expense) and other, net
Special termination benefits 2
3.3 0.5 — Special charges
Net pension expense$10.4 $15.8 $4.7 
1 On March 9, 2020, we transferred pension assets totaling $40.6 million to purchase annuity contracts for a certain population of retirees with a third-party insurance company. As a result, we recognized a non-cash settlement loss of $8.5 million for the fiscal year ended September 30, 2020, which is recorded as a component of Investment income (expense) and other, net in the Consolidated Statements of Income.
2 In September 2020, we offered certain employees in the United States the option to participate in a voluntary early retirement plan. The employees who accepted the offer received special termination benefits, which were recorded as a component of Special charges in the Consolidated Statements of Income. See Note 10. Special Charges for further information.
Schedule of Changes in Obligations, Assets and Funded Status
The change in benefit obligations, plan assets and funded status, along with amounts recognized in the Consolidated Balance Sheets for our defined benefit retirement plans were as follows:
(In millions)Year Ended September 30
 20212020
Change in benefit obligation:  
Benefit obligation at beginning of year$371.8 $380.4 
Service cost5.1 5.2 
Interest cost7.4 8.7 
Actuarial (gain) loss 1
(10.7)28.7 
Benefits paid(12.6)(12.6)
Acquisition2
— 3.5 
Plan settlements(0.2)(44.2)
Special termination benefits 3.3 0.5 
Exchange rate (gain) loss (0.3)1.6 
Benefit obligation at end of year363.8 371.8 
Change in plan assets:  
Fair value of plan assets at beginning of year291.7 310.6 
Actual return on plan assets21.8 33.4 
Employer contributions1.2 1.0 
Benefits paid(12.6)(12.6)
Acquisition2
— 3.5 
Plan settlements (0.2)(44.2)
Fair value of plan assets at end of year301.9 291.7 
Funded status and net amounts recognized$(61.9)$(80.1)
Amounts recorded in the Consolidated Balance Sheets:  
Accrued pension benefits, current portion$(1.4)$(1.5)
Accrued pension benefits, long-term(60.5)(78.6)
Net amount recognized$(61.9)$(80.1)
1 For the fiscal year ended September 30, 2021, the increase in Actuarial (gain) loss is primarily due to the change in the yield curve.
  2 Represents the plan assets and obligations assumed as part of the defined benefit retirement plan of Excel Medical, which was acquired on January 10, 2020, and subsequently settled and terminated as of September 30, 2020.
Schedule of Accumulated Benefit Obligation Selected information for our plans, including plans with accumulated benefit obligations exceeding plan assets, was as follows:
(In millions)September 30, 2021September 30, 2020
 PBOABOPlan AssetsPBOABOPlan Assets
Master plan$337.1 $323.6 $301.9 $343.2 $325.7 $291.7 
International plans21.3 19.3 — 23.0 20.8 — 
Supplemental executive plan5.4 5.4 — 5.6 5.6 — 
 $363.8 $348.3 $301.9 $371.8 $352.1 $291.7 
Schedule of Actuarial Assumptions
The weighted average assumptions used in accounting for our domestic pension plans were as follows:
 202120202019
Weighted average assumptions to determine benefit
obligations at the measurement date:
   
Discount rate for obligation2.9%2.7%3.2%
Rate of compensation increase2.6%2.6%2.6%
   
Weighted average assumptions to determine benefit
cost for the year:
   
Discount rate for expense2.7%3.2%4.2%
Expected rate of return on plan assets4.5%5.3%5.5%
Rate of compensation increase2.6%2.6%3.0%
Schedule of Allocation of Plan Assets
The weighted average asset allocations of our master defined benefit retirement plan as of September 30, 2021 and 2020, by asset category, along with target allocations, are as follows:
2021 and 2020 Target Allocation2021 Actual Allocation 2020 Actual Allocation
Equity securities31%-37%33.7%34%
Fixed income securities63%-69%66.3%66%
Total 100%100%
Schedule of Fair Value Measurements of Plan Assets
The following table summarizes these assets by category:
(In millions)Year Ended September 30
20212020
Equities
U.S. companies$52.0 $49.7 
International companies49.5 48.9 
Fixed income securities 197.2 191.0 
Total plan assets at fair value, excluding cash$298.7 $289.6 
These investments are commingled funds and/or collective trusts valued using the net asset value (“NAV”) unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund.
Schedule of Estimated Future Benefit Payments
The benefit payments, which are expected to be funded through plan assets and company contributions and reflect expected future service, are expected to be paid as follows:
(In millions)Pension Benefits
2022$14.9 
202314.6 
202415.4 
202516.1 
202616.6 
2027-203194.2 
Postretirement Health Care Plan [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Changes in Obligations, Assets and Funded Status
The change in the accumulated postretirement benefit obligation was as follows:
(In millions)Year Ended September 30
 20212020
Change in benefit obligation:  
Benefit obligation at beginning of year$12.2 $12.7 
Service cost0.1 0.1 
Interest cost0.1 0.2 
Actuarial loss (gain)1.8 (0.4)
Benefits paid(1.8)(1.0)
Retiree contributions0.4 0.2 
       Special termination benefits0.1 0.4 
Benefit obligation at end of year$12.9 $12.2 
Amounts recorded in the Consolidated Balance Sheets:  
Accrued benefits obligation, current portion$2.0 $1.6 
Accrued benefits obligation, long-term10.9 10.6 
Net amount recognized$12.9 $12.2 
v3.21.2
Other Comprehensive Income (Tables)
 12 Months Ended
Sep. 30, 2021
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Changes in OCL by Component
(In millions)Year Ended September 30, 2021
 Other comprehensive income (loss)Accumulated other comprehensive income (loss)
 Prior to
reclassification		Reclassification
from		Pre-taxTax effectNet of taxBeginning
balance		Net activity
Ending
balance 2
Derivative instruments designated as hedges 1:
Currency exchange contracts
$3.7 $(3.3)$0.4 $(0.1)$0.3 $(0.3)$0.3 $— 
Interest rate swaps
37.9 (13.8)24.1 (5.5)18.6 (35.7)18.6 (17.1)
Cross-currency swaps
(1.3)— (1.3)0.3 (1.0)6.7 (1.0)5.7 
Derivative instruments designated as hedges total
$40.3 $(17.1)$23.2 $(5.3)$17.9 $(29.3)$17.9 $(11.4)
Foreign currency translation adjustment
9.0 — 9.0 — 9.0 (110.7)9.0 (101.7)
Change in pension and postretirement defined benefit plans
0.8 21.9 22.7 (5.4)17.3 (40.2)17.3 (22.9)
Total$50.1 $4.8 $54.9 $(10.7)$44.2 $(180.2)$44.2 $(136.0)

(In millions)Year Ended September 30, 2020
 Other comprehensive income (loss)Accumulated other comprehensive income (loss)
 Prior to
reclassification		Reclassification
from		Pre-taxTax effectNet of taxBeginning
balance		Net activity
Ending
balance
Derivative instruments designated as hedges 1:
Currency exchange contracts$1.9 $(2.6)$(0.7)0.2 $(0.5)$0.2 $(0.5)$(0.3)
Interest rate swaps(35.4)(4.2)(39.6)9.1 (30.5)(5.2)(30.5)(35.7)
Cross-currency swaps(7.2)— (7.2)1.7 (5.5)12.2 (5.5)6.7 
Derivative instruments designated as hedges total$(40.7)$(6.8)$(47.5)11.0 $(36.5)$7.2 $(36.5)$(29.3)
Foreign currency translation adjustment34.7 — 34.7 — 34.7 (145.4)34.7 (110.7)
Change in pension and postretirement defined benefit plans0.9 4.6 5.5 (1.4)4.1 (44.3)4.1 (40.2)
Total$(5.1)$(2.2)$(7.3)$9.6 $2.3 $(182.5)$2.3 $(180.2)
(In millions)Year Ended September 30, 2019
 Other comprehensive income (loss)Accumulated other comprehensive income (loss)
 Prior to
reclassification		Reclassification
from		Pre-taxTax effectNet of taxBeginning
balance		Impacts of ASU 2018-02 Adoption as of October 1, 2018Net activityEnding
balance
Derivative instruments designated as hedges 1:
Currency exchange contracts$(0.6)$0.6 $— $— $— $0.2 $— $— $0.2 
Interest rate swaps(24.8)(6.8)(31.6)7.3 (24.3)18.3 0.8 (24.3)(5.2)
Cross-currency swaps18.0 — 18.0 (4.1)13.9 (1.7)— 13.9 12.2 
Derivative instruments designated as hedges total$(7.4)$(6.2)$(13.6)$3.2 $(10.4)$16.8 $0.8 $(10.4)$7.2 
Foreign currency translation adjustment(40.1)— (40.1)— (40.1)(105.3)— (40.1)(145.4)
Change in pension and postretirement defined benefit plans(19.4)2.0 (17.4)3.8 (13.6)(24.5)(6.2)(13.6)(44.3)
Total$(66.9)$(4.2)$(71.1)$7.0 $(64.1)$(113.0)$(5.4)$(64.1)$(182.5)
1 See Note 6. Derivative Instruments and Hedging Activity for information regarding our hedging strategies
2 The estimated net amount of gains and losses reported in Accumulated other comprehensive income (loss) related to our derivative instruments designated as hedges as of September 30, 2021 that are expected to be reclassified into earnings within the next 12 months is expense of $4.1 million.
Schedule of Items Reclassified out of AOCL
The following table represents the items reclassified out of Accumulated other comprehensive income (loss) and the related tax effects for the fiscal years ended September 30, 2021, 2020 and 2019:
(In millions) Year Ended September 30
 202120202019
 Amount
reclassified
Tax effect
Net of taxAmount
reclassified		Tax effectNet of taxAmount
reclassified
Tax effect 4
Net of tax
Derivative instruments designated as hedges:
Currency exchange contracts 1
$(3.3)$0.8 $(2.5)$(2.6)$0.5 $(2.1)$0.6 $(0.2)$0.4 
Interest rate swaps 2
(13.8)3.2 (10.6)(4.2)1.0 (3.2)(6.8)1.6 (5.2)
Derivative instruments designated as hedges total
$(17.1)$4.0 $(13.1)$(6.8)$1.5 $(5.3)$(6.2)$1.4 (4.8)
Change in pension and postretirement defined benefit plans 3
$21.9 $(5.4)$16.5 $4.6 $(1.4)$3.2 $2.0 $(2.4)$(0.4)
1 Reclassified from Accumulated other comprehensive income (loss) into Investment income (expense) and other, net.
2 Reclassified from Accumulated other comprehensive income (loss) into Interest expense.
3 Reclassified from Accumulated other comprehensive income (loss) into Cost of goods sold and Investment income (expense) and other, net. These components are included in the computation of net periodic pension expense.
4 As a result of the adoption of ASU 2018-02, we reclassified $5.4 million from Accumulated other comprehensive income (loss) to Retained earnings.
v3.21.2
Common Stock (Tables)
 12 Months Ended
Sep. 30, 2021
Class of Stock Disclosures [Abstract]  
Schedule of Stock-Based Compensation Cost
The stock-based compensation cost that was charged against income for all plans was $45.6 million, $38.4 million and $34.4 million for the fiscal years ended September 30, 2021, 2020 and 2019.

We recognize a tax benefit based on the increase in value from the grant date to the exercise date for stock options and from the grant date to the distribution date for the performance share units and restricted share units. The tax benefit is recorded during the year in which the exercise or distribution occurs. The tax benefit for exercises and distributions for the fiscal years ended September 30, 2021, 2020 and 2019 was $1.5 million, $4.7 million, and $5.2 million.
Schedule of Weighted Average Fair Value per Share of Stock Options and Related Valuation Assumptions
The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values:
 Year Ended September 30
 202120202019
Weighted average fair value per share$23.86 $24.80 $25.28 
Valuation assumptions:
Risk-free interest rate0.4%1.6%3.0%
Expected dividend yield0.9%0.8%0.8%
Expected volatility32.3%27.7%30.5%
Weighted average expected life (years)4.74.74.7
Schedule of Transactions under Stock Option Plans
The following table summarizes transactions under our stock option plans for the fiscal year ended September 30, 2021:
Weighted
Average
Number of
Shares
(in thousands)		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
(in millions)
Balance Outstanding as of October 1, 2020
740 $81.14 
Granted213 94.17 
Exercised(162)64.81 
Cancelled/Forfeited(24)75.91 
Balance Outstanding as of September 30, 2021767 $88.39 7.3$47.3 
Exercisable as of September 30, 2021332 $78.04 5.9$23.9 
Options Expected to Vest421 96.26 8.322.6 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on our closing stock price of $150.00, as reported by the New York Stock Exchange on September 30, 2021. This amount, which changes continuously
based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date.
Schedule of Transactions for Nonvested RSUs
The following table summarizes transactions for our nonvested RSUs for the fiscal year ended 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested RSUs as of October 1, 2020
337$112.41 
Granted297 92.16 
Vested(240)93.89 
Forfeited(28)95.38 
Nonvested RSUs as of September 30, 2021366$109.42 
Schedule of Weighted Average Fair Value per Share of PSUs and Related Valuation Assumptions
The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted for the fiscal years ended September 30, 2021, 2020 and 2019 are based on company-specific performance targets, with a total shareholder return collar.
 Year Ended September 30
 202120202019
Weighted average fair value per share$100.15 $110.53 $112.79 
Valuation assumptions:
Risk-free interest rate0.3%1.6%3.0%
Expected volatility34.7%23.8%22.8%
Schedule of Transactions for Nonvested PSUs
The following table summarizes transactions for our nonvested PSUs during fiscal year ended September 30, 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested PSUs as of October 1, 2020
165$111.73 
Granted79104.36 
Vested(51)126.55 
Forfeited(10)108.41 
Nonvested PSUs as of September 30, 2021183$104.55 
v3.21.2
Special Charges (Tables)
 12 Months Ended
Sep. 30, 2021
Special Charges [Abstract]  
Restructuring Activity
(In millions)
Balance as of September 30, 2019$8.5 
Expenses14.6 
Cash Payments(11.1)
Reversals(0.7)
Balance as of September 30, 2020$11.3 
Expenses23.7 
Cash Payments(27.1)
Reversals— 
Balance as of September 30, 2021$7.9 
v3.21.2
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income before Income Taxes
The significant components of income before income taxes and the consolidated income tax provision were as follows:
(In millions)Year Ended September 30
 202120202019
Income before income taxes:   
Domestic$145.0 $137.0 $122.5 
Foreign157.8 134.2 86.1 
Total$302.8 $271.2 $208.6 
Schedule of Income Tax Expense
Income tax expense:   
Current provision   
U.S. Federal$55.5 $38.1 $51.0 
State13.1 10.8 6.0 
Foreign17.7 18.3 18.2 
Total current provision86.3 67.2 75.2 
Deferred provision:   
U.S. Federal(25.5)(15.6)(12.0)
State(4.8)(2.8)(2.5)
Foreign(1.7)(0.6)(4.3)
Total deferred provision(32.0)(19.0)(18.8)
Income tax expense$54.3 $48.2 $56.4 
Reconciliation of Income Tax Expense to Income Tax at Statutory Rate
Differences between income tax expense reported for financial reporting purposes and that computed based upon the application of the statutory U.S. Federal tax rate to the reported income before income taxes were as follows:
(In millions)Year Ended September 30
 202120202019
Amount% of
Pretax
Income		Amount% of
Pretax
Income		Amount% of
Pretax
Income
U.S. Federal income tax 1
$63.6 21.0 %$57.0 21.0 %$43.8 21.0 %
State income tax 2
7.3 2.4 4.1 1.5 3.3 1.6 
Foreign income tax 3
(17.9)(5.9)(15.0)(5.5)(10.1)(4.9)
Application of federal research tax credits(7.7)(2.6)(6.2)(2.3)(5.6)(2.7)
Application of foreign tax credits(9.5)(3.2)(11.6)(4.3)(0.1)— 
Valuation of tax attributes1.2 0.4 5.0 1.9 2.2 1.1 
Foreign inclusions10.3 3.5 7.7 2.9 — — 
Excess tax benefits from share based awards(1.5)(0.5)(4.7)(1.7)(5.2)(2.5)
U.S. tax reform transition tax— — — — (1.0)(0.5)
Foreign-derived intangible income deduction(9.9)(3.4)(7.8)(2.9)(4.3)(2.0)
Global intangible low-taxed income inclusion7.6 2.6 12.6 4.6 9.6 4.6 
Disposition of subsidiary— — 4.1 1.5 18.2 8.7 
Current period change in uncertain tax positions— — — — 4.6 2.2 
Non-deductible transaction costs 4
6.8 2.3 — — — — 
Other, net4.0 1.3 3.0 1.1 1.0 0.4 
Income tax expense$54.3 17.9 %$48.2 17.8 %$56.4 27.0 %
1 At statutory rate.
2 Net of U.S. Federal benefit.
3 U.S. Federal tax rate differential.
4 Non-deductible costs related to the acquisition of Bardy, including the indemnity claim settlement and accrued interest. See Note 3. Business Combinations for further information.
Schedule of Deferred Taxes The tax effect of temporary differences that gave rise to the deferred tax assets and liabilities were as follows:
(In millions)September 30, 2021September 30, 2020
Deferred tax assets:  
Employee benefit accruals$58.1 $48.3 
Inventory15.2 14.7 
Net operating loss carryforwards93.3 69.7 
Tax credit carryforwards26.4 26.4 
Lease liabilities18.3 18.8 
Other, net36.5 36.2 
 247.8 214.1 
Less: Valuation allowance(53.0)(50.8)
Total deferred tax assets194.8 163.3 
Deferred tax liabilities:  
Depreciation(14.6)(19.2)
Amortization(190.5)(201.0)
Lease Assets(17.1)(17.6)
Other, net(5.6)(5.6)
Total deferred tax liabilities(227.8)(243.4)
Deferred tax liability - net$(33.0)$(80.1)
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits
A rollforward of the beginning and ending amount of unrecognized tax benefits is as follows:
(In millions)Year Ended September 30
 202120202019
Balance as of October 1$3.9 $9.6 $6.2 
Increases in tax position of prior years0.2 — 5.8 
Settlements with taxing authorities— (5.8)(1.1)
Lapse of applicable statute of limitations(1.4)(0.2)(1.0)
Foreign currency adjustments— 0.3 (0.3)
Total change(1.2)(5.7)3.4 
Balance as of September 30$2.7 $3.9 $9.6 
v3.21.2
Earnings per Common Share (Tables)
 12 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Calculated Earnings per share
Earnings per share are calculated as follows (in millions, except share information in thousands):
Year Ended September 30
 202120202019
Net Income$248.5 $223.0 $152.2 
Net Income per Basic Common Share$3.75 $3.35 $2.28 
Net Income per Diluted Common Share$3.72 $3.32 $2.25 
Average Basic Common Shares Outstanding 66,204 66,631 66,772 
Add: Potential effect of exercise of stock options and other unvested equity awards643 581 888 
Average Diluted Common Shares Outstanding 66,847 67,212 67,660 
Shares with anti-dilutive effect excluded from the computation of Diluted EPS
272 342 288 
v3.21.2
Segment Reporting (Tables)
 12 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Reconciliation of Segment Information to Consolidated Financial Information
(In millions)Year Ended September 30
 202120202019
Net Revenue - United States:  
Patient Support Systems$1,162.1 $1,133.6 $1,135.0 
Front Line Care785.7 707.4 700.6 
Surgical Solutions150.4 125.8 221.2 
Total net revenue - United States$2,098.2 $1,966.8 $2,056.8 
Net Revenue - Outside of the United States (“OUS”):
Patient Support Systems$406.2 $405.5 $355.5 
Front Line Care331.3 317.6 277.5 
Surgical Solutions183.0 191.1 217.5 
Total net revenue - OUS$920.5 $914.2 $850.5 
Net Revenue:
Patient Support Systems$1,568.3 $1,539.1 $1,490.5 
Front Line Care1,117.0 1,025.0 978.1 
Surgical Solutions333.4 316.9 438.7 
Total net revenue$3,018.7 $2,881.0 $2,907.3 
Divisional income:  
Patient Support Systems$356.1 $332.3 $299.9 
Front Line Care348.8 301.8 266.4 
Surgical Solutions51.6 39.5 61.2 
Other operating costs:  
Non-allocated operating costs, administrative costs, and other308.9 264.4 283.0 
Special charges47.4 41.5 28.4 
Operating profit$400.2 $367.7 $316.1 
Interest expense(65.6)(74.0)(89.6)
Loss on extinguishment of debt(9.8)(15.6)(3.3)
Investment income and other, net(22.0)(6.9)(14.6)
Income before income taxes$302.8 $271.2 $208.6 
Depreciation and amortization of property, plant, equipment and intangibles:
Patient Support Systems $52.0 $43.5 $36.2 
Front Line Care90.0 95.4 101.9 
Surgical Solutions8.4 7.4 28.4 
Corporate35.4 32.5 28.3 
Total depreciation and amortization of property, plant, equipment and intangibles$185.8 $178.8 $194.8 
Schedule of Geographic Information
Geographic data for net revenue and long-lived assets were as follows:
(In millions)Year Ended September 30
 202120202019
Net revenue to unaffiliated customers:   
United States$2,098.2 $1,966.8 $2,056.8 
Foreign920.5 914.2 850.5 
Total net revenue$3,018.7 $2,881.0 $2,907.3 
Long-lived assets:    
United States$217.2 $222.7 $212.5 
Foreign70.9 83.4 84.3 
Total long-lived assets$288.1 $306.1 $296.8 

Net revenue in the above table is attributed to geographic areas based on the location of the customer.
v3.21.2
Commitments and Contingencies (Tables)
 12 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Rental Payments
Disclosures Related to Periods Prior to Adopting the New Lease Guidance

Future minimum payments under non-cancellable operating leases (excluding executory costs) aggregating $47.8 million for manufacturing facilities, warehouse distribution centers, service centers, sales offices, automobiles, and other equipment consisted of the following as of the fiscal year ended September 30, 2021:
(In millions)Amount
2022$15.7 
202311.1 
20246.4 
2025 and beyond14.6 
v3.21.2
Summary of Significant Accounting Policies (Inventories) (Details) - USD ($)
Sep. 30, 2021
Sep. 30, 2020
Inventory, Net [Abstract]    
Inventory, Finished Goods, Net of Reserves $ 153.7 $ 167,600,000
Inventory, Work in Process, Net of Reserves 53.3 48,400,000
Inventory, Raw Materials, Net of Reserves 112.4 136,000,000.0
Total 319.4 $ 352,000,000.0
Change in Accounting Method Accounted for as Change in Estimate    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
LIFO Inventory Amount $ (6,800,000)  
v3.21.2
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Property, Plant and Equipment [Line Items]      
Depreciation $ 62,800,000 $ 60,600,000 $ 62,100,000
Property, Plant and Equipment, Gross [Abstract]      
Cost 875.8 858,200,000  
Accumulated Depreciation 587.7 552,100,000  
Property, Plant and Equipment, Other, Accumulated Depreciation 152.4 148,900,000  
Land and Land Improvements [Member]      
Property, Plant and Equipment, Gross [Abstract]      
Cost 15.9 16,900,000  
Accumulated Depreciation 4.8 4,400,000  
Building and Building Improvements [Member]      
Property, Plant and Equipment, Gross [Abstract]      
Cost 210.4 208,200,000  
Accumulated Depreciation $ 105.0 95,400,000  
Land improvements [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 6 years    
Land improvements [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 15 years    
Buildings and building equipment [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 10 years    
Buildings and building equipment [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 40 years    
Machinery and equipment [Member]      
Property, Plant and Equipment, Gross [Abstract]      
Cost $ 437.2 416,300,000  
Accumulated Depreciation $ 325.5 303,400,000  
Machinery and equipment [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Machinery and equipment [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 10 years    
Equipment leased to others | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 2 years    
Equipment leased to others | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Estimated useful life 10 years    
Property, Plant, and Equipment, Lessor Asset under Operating Lease, before Accumulated Depreciation      
Property, Plant and Equipment, Gross [Abstract]      
Cost $ 212.3 $ 216,800,000  
v3.21.2
Summary of Significant Accounting Policies (Guarantees) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Guarantees    
Balance as of October 1 $ 30,800,000 $ 29,700,000
Balance as of September 30 29,600,000 30,800,000
Standard Product Warranty Accrual, Increase for Warranties Issued 22,500,000 18,300,000
Standard Product Warranty Accrual, Decrease for Payments $ (23,800,000) $ (17,500,000)
Warranty term, generally 1 year  
v3.21.2
Summary of Significant Accounting Policies (Revenue Recognition) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Oct. 01, 2019
Other Liabilities and Deferred Revenue, Noncurrent $ 138,500,000 $ 138,100,000  
Deferred Revenue, Additions 543,400,000    
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized (546,500,000)    
Translation Adjustment Functional to Reporting Currency, Net of Tax 2,400,000    
Cost of goods sold      
Capitalized Contract Cost, Accumulated Amortization (76,400,000)    
Selling, General and Administrative Expenses [Member]      
Capitalized Contract Cost, Accumulated Amortization (6,500,000)    
Other Current Assets [Member] | cost to obtain a contract      
Capitalized Contract Cost, Gross 9,800,000    
Other Current Assets [Member] | cost to fulfill a contract      
Capitalized Contract Cost, Gross 22,000,000.0    
Other Assets [Member] | cost to obtain a contract      
Capitalized Contract Cost, Gross 2,500,000    
Other Assets [Member] | cost to fulfill a contract      
Capitalized Contract Cost, Gross $ 6,000,000.0    
Minimum [Member]      
Finite-Lived Intangible Asset, Useful Life 1 year    
Maximum [Member]      
Finite-Lived Intangible Asset, Useful Life 20 years    
Computer Software, Intangible Asset [Member] | Minimum [Member]      
Finite-Lived Intangible Asset, Useful Life 3 years    
Computer Software, Intangible Asset [Member] | Maximum [Member]      
Finite-Lived Intangible Asset, Useful Life 5 years    
Accounting Standards Update 2016-02 [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Deferred Rent Credit, Noncurrent     $ 3,300,000
v3.21.2
Summary of Significant Accounting Policies Intangible Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Acquired Finite-Lived Intangible Assets [Line Items]      
Capitalized Computer Software, Additions $ 10.1 $ 15.3 $ 8.0
Minimum [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 1 year    
Minimum [Member] | Computer Software, Intangible Asset [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 3 years    
Maximum [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 20 years    
Maximum [Member] | Computer Software, Intangible Asset [Member]      
Acquired Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 5 years    
v3.21.2
Summary of Significant Accounting Policies (Other Narrative) (Details) - USD ($)
 12 Months Ended
Aug. 02, 2019
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Oct. 01, 2019
Sep. 30, 2018
Research and Development Costs            
Research and development expenses   $ 144,900,000 $ 136,500,000 $ 139,500,000    
Income Taxes            
Unrecognized Tax Benefits   2,700,000 3,900,000 9,600,000   $ 6,200,000
Valuation allowances on deferred tax assets   (53,000,000.0) (50,800,000)      
Dispositions            
Proceeds on sale of businesses $ 166,600,000 0 800,000 166,600,000    
Gain on sale of perinatal data management system   4,200,000 15,900,000      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]            
Government Grants and Cost Abatement's   500,000 3.2      
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]            
Deferred Revenue, Additions   543,400,000        
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized   (546,500,000)        
Other Liabilities and Deferred Revenue, Noncurrent   138,500,000 138,100,000      
Capitalized Computer Software, Additions   10,100,000 $ 15,300,000 8,000,000    
Accounting Standards Update 2018-16 [Member]            
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]            
Increase (Decrease) in Prepaid Taxes       $ 5,800,000    
Accounting Standards Update 2016-02 [Member]            
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]            
Operating Lease, Right-of-Use Asset         $ 82,500,000  
Bardy            
Asset Acquisition, Price of Acquisition, Expected   10,500,000,000        
Videomed and Excel            
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]            
Deferred Revenue, Additions   $ 1,100,000        
Minimum [Member]            
Research and Development Costs            
Useful life of intangible assets   1 year        
Minimum [Member] | Computer Software, Intangible Asset [Member]            
Research and Development Costs            
Useful life of intangible assets   3 years        
v3.21.2
Summary of Significant Accounting Policies Adopted Accounting Policies (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Oct. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Reclassification from AOCI, Current Period, Tax     $ 0.2  
Selling and administrative expenses $ 887,000,000.0 $ 820,400,000 941,000,000.0  
Cares Act 21.7      
Operating Lease, Liability 73,300,000      
Cumulative Effect on Retained Earnings, Net of Tax   300,000    
Acquisition-related intangible asset amortization (108,600,000) (109,000,000.0) (122,400,000)  
Stockholders' Equity Attributable to Parent (1,879.7) (1,726,100,000) (4.9)  
Retained Earnings (Accumulated Deficit) 2,315.9 2,132,200,000    
Deferred Tax Assets, Valuation Allowance 53,000,000.0 50,800,000    
Inventory, Finished Goods, Net of Reserves 153.7 167,600,000    
Inventory, Work in Process, Net of Reserves 53.3 48,400,000    
Inventory, Raw Materials, Net of Reserves 112.4 136,000,000.0    
Inventory, Net 319.4 352,000,000.0    
Deferred Tax Assets, Valuation Allowance 53,000,000.0 50,800,000    
Operating Lease, Liability 73,300,000      
Reclassification from AOCI, Current Period, Tax     0.2  
Selling, General and Administrative Expenses [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Selling and administrative expenses   $ 820,400,000 818,600,000  
Accounting Standards Update 2016-02 [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Operating Lease, Liability       $ 85,800,000
Operating Lease, Liability       $ 85,800,000
Retained Earnings [Member] | Accounting Standards Update 2016-02 [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Stockholders' Equity Attributable to Parent     $ (5,400,000)  
Retained Earnings [Member] | Accounting Standards Update 2016-13        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Reclassification from AOCI, Current Period, Tax 800,000      
Stockholders' Equity Attributable to Parent 2,200,000      
Reclassification from AOCI, Current Period, Tax $ 800,000      
Minimum [Member]        
Finite-Lived Intangible Asset, Useful Life 1 year      
Minimum [Member] | Computer Software, Intangible Asset [Member]        
Finite-Lived Intangible Asset, Useful Life 3 years      
Maximum [Member]        
Finite-Lived Intangible Asset, Useful Life 20 years      
Maximum [Member] | Computer Software, Intangible Asset [Member]        
Finite-Lived Intangible Asset, Useful Life 5 years      
v3.21.2
Summary of Significant Accounting Policies (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Oct. 01, 2019
Business Acquisition, terms [Line Items]      
Share Price $ 150.00    
Deferred Tax Assets, Valuation Allowance $ 53,000,000.0 $ 50,800,000  
Operating Lease, Liability $ 73,300,000    
Accounting Standards Update 2016-02 [Member]      
Operating Lease, Liability     $ 85,800,000
Baxter      
Business Acquisition, terms [Line Items]      
Share Price $ 156.00    
Bardy      
Business Acquisition, terms [Line Items]      
Asset Acquisition, Price of Acquisition, Expected $ 10,500,000,000    
v3.21.2
Acquisitions (Narrative) (Details) - USD ($)
 12 Months Ended
Aug. 06, 2021
Jul. 21, 2020
Jan. 10, 2020
Sep. 03, 2019
Aug. 02, 2019
Apr. 01, 2019
Oct. 01, 2018
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Business Acquisition [Line Items]                    
Proceeds from Sales of Business, Affiliate and Productive Assets         $ 166,600,000     $ 0 $ 800,000 $ 166,600,000
Gain (Loss) on Disposition of Other Assets               4,200,000 15,900,000  
Cash consideration             $ 17,100,000      
Cash payment, net of cash acquired               369,000,000.0 (28,400,000) 303,400,000
Goodwill               2,221.7 1,835,500,000 1,800,900,000
Breathe [Member]                    
Business Acquisition [Line Items]                    
Cash consideration       $ 127,600,000            
Cash payment, net of cash acquired       $ 127,600,000            
Voalte [Member]                    
Business Acquisition [Line Items]                    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability                 (8,400,000) $ 3,200,000
Cash consideration           $ 175,800,000        
Cash payment, net of cash acquired           181,000,000.0        
Business Combination, Contingent Consideration, Liability           5,200,000        
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High           $ 15,000,000.0        
Videomed                    
Business Acquisition [Line Items]                    
Cash consideration   $ 7,800,000                
Cash payment, net of cash acquired   10,700,000                
Goodwill   10,100,000                
Business Combination, Contingent Consideration, Liability   2,900,000                
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High   3,700,000                
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain   3,000,000.0                
Videomed | Developed Technology Rights [Member]                    
Business Acquisition [Line Items]                    
Intangibles (finite-lived)   $ 4,400,000                
Epiphany                    
Business Acquisition [Line Items]                    
Cash consideration               38,000,000    
Bardy                    
Business Acquisition [Line Items]                    
Cash consideration $ 369,000,000.0                  
Cash payment, net of cash acquired 434,200,000             434,200,000    
Business Combination, Contingent Consideration, Liability 65,200,000                  
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High 130,500,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment $ 2,300,000                  
Goodwill, Acquired During Period               383,800,000    
Bardy | Developed Technology Rights [Member]                    
Business Acquisition [Line Items]                    
Intangibles (finite-lived)     $ 10,000,000.0              
Bardy | Trade names [Member]                    
Business Acquisition [Line Items]                    
Intangibles (finite-lived)     5,000,000.0              
Bardy | Customer Relationships [Member]                    
Business Acquisition [Line Items]                    
Intangibles (finite-lived)     2,000,000.0              
Excel                    
Business Acquisition [Line Items]                    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability               $ 3,900,000 $ 1,400,000  
Cash consideration     13,100,000              
Cash payment, net of cash acquired     19,200,000              
Goodwill     9,900,000              
Business Combination, Contingent Consideration, Liability     6,100,000              
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High     15,000,000.0              
Excel | Developed Technology Rights [Member]                    
Business Acquisition [Line Items]                    
Intangibles (finite-lived)     $ 10,900,000              
v3.21.2
Acquisitions (Schedule of Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($)
 12 Months Ended
Aug. 06, 2021
Jul. 21, 2020
May 18, 2020
Jan. 10, 2020
Sep. 03, 2019
Apr. 01, 2019
Oct. 01, 2018
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Business Acquisition [Line Items]                    
Gain (Loss) on Disposition of Other Assets               $ 4,200,000 $ 15,900,000  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Goodwill               2,221.7 1,835,500,000 $ 1,800,900,000
Cash payment, net of cash acquired               369,000,000.0 (28,400,000) 303,400,000
Special charges               47,400,000 41,500,000 28,400,000
Finite-Lived Intangible Assets, Net [Abstract]                    
Cash consideration             $ 17,100,000      
EarlySense                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Intangibles (finite-lived)               59,400,000    
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High               10,000,000    
Finite-Lived Intangible Assets, Net [Abstract]                    
Cash consideration               30,000,000    
Business Combination, Contingent Consideration, Liability               2,400,000    
Breathe [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Cash payment, net of cash acquired         $ 127,600,000          
Professional Fees               300,000 2,500,000 6,400,000
Special charges                 3,100,000 1,700,000
Finite-Lived Intangible Assets, Net [Abstract]                    
Cash consideration         $ 127,600,000          
Voalte [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Cash payment, net of cash acquired           $ 181,000,000.0        
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High           15,000,000.0        
Professional Fees               400,000 (8,400,000) 12,100,000
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability                 (8,400,000) $ 3,200,000
Finite-Lived Intangible Assets, Net [Abstract]                    
Cash consideration           175,800,000        
Business Combination, Contingent Consideration, Liability           $ 5,200,000        
Excel                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables       $ 600,000            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory       200,000            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other       100,000            
Goodwill       9,900,000            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets       100,000            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue       (2,100,000)            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities       (500,000)            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net       19,200,000            
Cash payment, net of cash acquired       19,200,000            
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High       15,000,000.0            
Professional Fees               (3,800,000) 2,200,000  
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability               3,900,000 1,400,000  
Finite-Lived Intangible Assets, Net [Abstract]                    
Payment for Contingent Consideration Liability, Financing Activities               2,000,000    
Cash consideration       13,100,000            
Business Combination, Contingent Consideration, Liability       6,100,000            
Excel | Developed Technology Rights [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Intangibles (finite-lived)       10,900,000            
Connecta                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Goodwill     $ 4,800,000              
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net     7,700,000              
Cash payment, net of cash acquired     7,700,000              
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High     4,000,000.0              
Professional Fees               (100,000) 300,000  
Finite-Lived Intangible Assets, Net [Abstract]                    
Cash consideration     7,500,000              
Business Combination, Contingent Consideration, Liability     200,000              
Connecta | Developed Technology Rights [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Intangibles (finite-lived)     $ 2,900,000              
Videomed                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables   $ 2,500,000                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory   900,000                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other   200,000                
Goodwill   10,100,000                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets   600,000                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable   (1,200,000)                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue   (200,000)                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities   (1,200,000)                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other   2,400,000                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net   13,700,000                
Cash payment, net of cash acquired   10,700,000                
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High   3,700,000                
Professional Fees               $ 300,000 $ 400,000  
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain   (3,000,000.0)                
Finite-Lived Intangible Assets, Net [Abstract]                    
Cash consideration   7,800,000                
Business Combination, Contingent Consideration, Liability   2,900,000                
Videomed | Developed Technology Rights [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Intangibles (finite-lived)   $ 4,400,000                
Excel, Connecta and Videomed | Technology-Based Intangible Assets | Minimum [Member]                    
Finite-Lived Intangible Assets, Net [Abstract]                    
Weighted-average useful life               5 years    
Excel, Connecta and Videomed | Technology-Based Intangible Assets | Maximum [Member]                    
Finite-Lived Intangible Assets, Net [Abstract]                    
Weighted-average useful life               10 years    
Bardy                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables $ 10,400,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory 4,500,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other 300,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment 2,300,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets 31,500,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable 4,100,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue 1,100,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities 5,600,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other (4,800,000)                  
Cash payment, net of cash acquired 434,200,000             $ 434,200,000    
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High 130,500,000                  
Professional Fees               24,400,000    
Finite-Lived Intangible Assets, Net [Abstract]                    
Payments for Legal Settlements               8,400,000    
Business Combination, Separately Recognized Transactions, Net Gains and Losses               $ 24,100,000    
Cash consideration 369,000,000.0                  
Business Combination, Contingent Consideration, Liability 65,200,000                  
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Costs $ 32,500,000                  
Bardy | Trade names [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Intangibles (finite-lived)       5,000,000.0            
Bardy | Developed technology [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Intangibles (finite-lived)       2,000,000.0            
Bardy | Developed Technology Rights [Member]                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]                    
Intangibles (finite-lived)       $ 10,000,000.0            
Bardy | Technology-Based Intangible Assets | Minimum [Member]                    
Finite-Lived Intangible Assets, Net [Abstract]                    
Weighted-average useful life               8 years    
Bardy | Technology-Based Intangible Assets | Maximum [Member]                    
Finite-Lived Intangible Assets, Net [Abstract]                    
Weighted-average useful life               13 years    
v3.21.2
Acquisitions Asset Acquisitions (Details) - USD ($)
 12 Months Ended
Sep. 03, 2019
Oct. 01, 2018
Sep. 30, 2021
Dec. 31, 2020
Cash consideration   $ 17,100,000    
Prepaid Royalties       $ 22,000,000
EarlySense        
Cash consideration     $ 30,000,000  
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination     25,500,000  
Finite-lived Intangible Assets Acquired     8  
Business Combination, Consideration Transferred, Other     $ 1,800,000  
Breathe [Member]        
Cash consideration $ 127,600,000      
v3.21.2
Acquisitions Dispositions (Details) - USD ($)
$ in Millions
 12 Months Ended
Aug. 02, 2019
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Proceeds from Sales of Business, Affiliate and Productive Assets $ 166.6 $ 0.0 $ 0.8 $ 166.6
Business Exit Costs     4.0  
Gain (Loss) on Disposition of Other Assets   $ 4.2 $ 15.9  
v3.21.2
Goodwill and Indefinite-Lived Intangible Assets (Schedule of Goodwill Activity) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Goodwill [Line Items]      
Goodwill $ 2,694.5 $ 2,308,300,000 $ 2,273,700,000
Accumulated impairment losses (472.8) (472,800,000) (472,800,000)
Goodwill [Roll Forward]      
Goodwill, net 1,835,500,000 1,800,900,000  
Goodwill related to acquisitions (383.3) (25,000,000.0)  
Currency translation effect 2.9 9,600,000  
Goodwill, net 2,221.7 1,835,500,000  
Patient Support Systems [Member]      
Goodwill [Line Items]      
Goodwill 652.1 653,500,000 640,500,000
Accumulated impairment losses (472.8) 472,800,000 472,800,000
Goodwill [Roll Forward]      
Goodwill, net 180,700,000 167,700,000  
Goodwill related to acquisitions 0.6 10,600,000  
Currency translation effect (0.8) 2,400,000  
Goodwill, net 179.3 180,700,000  
Front Line Care [Member]      
Goodwill [Line Items]      
Goodwill 1,820.3 1,432,600,000 1,424,700,000
Accumulated impairment losses 0 0  
Goodwill [Roll Forward]      
Goodwill, net 1,432,600,000 1,424,700,000  
Goodwill related to acquisitions (383.8) (4,400,000)  
Currency translation effect 3.9 3,500,000  
Goodwill, net 1,820.3 1,432,600,000  
Surgical Solutions [Member]      
Goodwill [Line Items]      
Goodwill 222.1 222,200,000 $ 208,500,000
Accumulated impairment losses 0 0  
Goodwill [Roll Forward]      
Goodwill, net 222,200,000 208,500,000  
Goodwill related to acquisitions (0.1) (10,000,000.0)  
Goodwill, Written off Related to Sale of Business Unit 0.1    
Currency translation effect (0.2) 3,700,000  
Goodwill, net $ 222.1 $ 222,200,000  
v3.21.2
Goodwill and Indefinite-Lived Intangible Assets (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Finite-Lived Intangible Assets [Line Items]      
Amortization of Intangible Assets $ 123.0 $ 118.2 $ 132.7
Capitalized Computer Software, Amortization 14.4 9.2 $ 10.3
Finite-Lived Intangible Assets, Accumulated Amortization 789.1 667.3  
Indefinite-lived intangible assets $ 434.0    
Minimum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 1 year    
Maximum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 20 years    
Software and Software Development Costs [Member] | Minimum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 3 years    
Software and Software Development Costs [Member] | Maximum [Member]      
Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Asset, Useful Life 10 years    
Customer Relationships [Member]      
Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Assets, Accumulated Amortization $ 416.9 358.7  
Developed Technology Rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Finite-Lived Intangible Assets, Accumulated Amortization $ 153.3 $ 116.5  
v3.21.2
Goodwill and Indefinite-Lived Intangible Assets Intangible Assets Cost & Accum Amort (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross $ 1,307.0 $ 1,206.6
Indefinite-lived Intangible Assets (Excluding Goodwill) 437.4 437.4
Intangible Assets, Gross (Excluding Goodwill) 1,744.4 1,644.0
Finite-Lived Intangible Assets, Accumulated Amortization 789.1 667.3
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months 120.7  
Finite-Lived Intangible Assets, Amortization Expense, Year Two 100.9  
Finite-Lived Intangible Assets, Amortization Expense, Year Three 85.6  
Finite-Lived Intangible Assets, Amortization Expense, Year Four 66.7  
Finite-Lived Intangible Assets, Amortization Expense, Year Five 54.8  
Finite-Lived Intangible Assets, Amortization Expense, after Year Five 89.2  
Indefinite-lived intangible assets 434.0  
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 638.1 633.2
Finite-Lived Intangible Assets, Accumulated Amortization 416.9 358.7
Trade Names [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 50.0 45.3
Finite-Lived Intangible Assets, Accumulated Amortization 32.5 25.7
Developed Technology Rights [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 297.8 287.9
Finite-Lived Intangible Assets, Accumulated Amortization 153.3 116.5
Software for Internal Use    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 161.3 159.3
Finite-Lived Intangible Assets, Accumulated Amortization 127.6 119.2
Software Development    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 73.8 55.1
Finite-Lived Intangible Assets, Accumulated Amortization 33.3 29.5
Other Intangible Assets [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 86.0 25.8
Finite-Lived Intangible Assets, Accumulated Amortization $ 25.5 $ 17.7
Minimum [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Asset, Useful Life 1 year  
Minimum [Member] | Software and Software Development Costs [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Asset, Useful Life 3 years  
v3.21.2
Supplementary Financial Statement Information Inventory (Policies)
 12 Months Ended
Sep. 30, 2021
Inventory Disclosure [Abstract]  
Inventory, Policy [Policy Text Block] InventoriesDuring the fourth quarter of 2021, we changed our method of accounting for inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method for the remaining of our inventory that was valued using LIFO.
v3.21.2
Supplementary Financial Statement Information Inventory (Tables)
 12 Months Ended
Sep. 30, 2021
USD ($)
Noncash or Part Noncash Acquisitions [Line Items]  
Asset Acquisition, Consideration Transferred $ 25,500,000
EarlySense  
Noncash or Part Noncash Acquisitions [Line Items]  
Asset Acquisition, Consideration Transferred $ 1,800,000
v3.21.2
Financing Agreements (Schedule of Total Debt) (Details) - USD ($)
Apr. 23, 2021
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Long-term Debt, by Current and Noncurrent [Abstract]        
Current portion of long-term debt   $ 50.1 $ 50,100,000  
Long-term debt   1,825.2 1,655,700,000  
Short-term Debt   235.7 222,300,000  
Total Long-term debt   2,060.9 1,878,000,000  
Less Short-term borrowings   235.7 222,300,000  
Securitization Program [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Securitization Program   95.6 82,200,000  
Debt Instrument, Term 364 days      
Note Securitization Facility [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Securitization Program   90.0 90,000,000.0  
Debt Instrument, Term 364 days      
Revolving credit facilities [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Revolving credit facility, matures August 2024   515.0 0  
Senior secured Term Loan A [Member]        
Debt Instrument [Line Items]        
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months   50,000,000.0    
Long-term Debt, by Current and Noncurrent [Abstract]        
Long-term debt   846.7 895,400,000  
Senior unsecured 5.00% Notes due on February 14, 2025 [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Long-term debt   $ 0 297,500,000  
Stated interest rate (percent)   5.00%    
Senior Unsecured 4.375% Notes due September 2027 [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Long-term debt   $ 420.3 419,500,000  
Stated interest rate (percent)       4.375%
Unsecured 7.00% debentures due on February 15, 2024 [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Total Long-term debt   $ 13.4 13,400,000  
Stated interest rate (percent)   7.00%    
Unsecured 6.75% debentures due on December 15, 2027 [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Total Long-term debt   $ 29.7 29,700,000  
Stated interest rate (percent)   6.75%    
Other [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Total Long-term debt   $ 0.1 $ 200,000  
Senior unsecured 5.75% Notes due on September 1, 2023 [Member]        
Long-term Debt, by Current and Noncurrent [Abstract]        
Current portion of long-term debt       $ 421,600,000
Stated interest rate (percent)   5.75% 5.75%  
v3.21.2
Financing Agreements (Narrative) (Details) - USD ($)
 12 Months Ended
Apr. 23, 2021
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Aug. 01, 2019
Debt Instrument [Line Items]          
Loss on extinguishment of debt   $ 9,800,000 $ 15,600,000 $ 3,000,000.0  
Costs incurred related to amendment of facility   (7,500,000) (12,200,000) 0  
Repayments of Long-term Debt   50,100,000 50,100,000 1,038,500,000  
Current portion of long-term debt   $ 50.1 50,100,000    
Debt Instrument, Redemption [Line Items]          
Debt Instrument, Interest Rate During Period   0.97%      
Securitization Program [Member]          
Debt Instrument [Line Items]          
Accounts receivable securitization program 364 days        
Accounts receivable securitization program, amount $ 110,000,000        
Securitization Program [Member] | London Interbank Offered Rate (LIBOR) [Member]          
Debt Instrument [Line Items]          
Stated interest rate (percent)   0.78%      
Note Securitization Facility [Member]          
Debt Instrument [Line Items]          
Accounts receivable securitization program 364 days        
Accounts receivable securitization program, amount $ 90,000,000        
Note Securitization Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]          
Debt Instrument [Line Items]          
Stated interest rate (percent)   0.90%      
Revolving credit facilities [Member]          
Debt Instrument [Line Items]          
Debt Issuance Costs, Gross         $ 3,700,000
Senior revolving credit facility, maximum borrowing amount   $ 1,200,000,000      
Revolving credit facility, matures August 2024   515.0 0    
Available borrowing capacity   675,000,000.0 1,191,000,000    
Outstanding letters of credit   9,900,000 9,000,000    
Senior Secured Term Loan A 2021 [Member]          
Debt Instrument [Line Items]          
Senior revolving credit facility, maximum borrowing amount       1,462,500,000  
Repayments of Long-term Debt       1,038,400,000  
Revolving Credit Facility 2021 [Member]          
Debt Instrument [Line Items]          
Senior revolving credit facility, maximum borrowing amount       700,000,000  
Senior secured Term Loan A [Member]          
Debt Instrument [Line Items]          
Debt Issuance Costs, Gross         $ 2,500,000
Senior revolving credit facility, maximum borrowing amount   $ 1,000,000,000      
Interest rate during period (less than)   1.40%      
Repayments of Long-term Debt   $ 50,000,000      
Senior Unsecured 4.375% Notes due September 2027 [Member]          
Debt Instrument [Line Items]          
Debt Issuance Costs, Gross       6,300,000  
Accounts receivable securitization program, amount       $ 425,000,000  
Stated interest rate (percent)       4.375%  
Write off of Deferred Debt Issuance Cost     $ 3,400,000    
Senior unsecured 5.75% Notes due on September 1, 2023 [Member]          
Debt Instrument [Line Items]          
Stated interest rate (percent)   5.75% 5.75%    
Loss on extinguishment of debt     $ (15,600,000)    
Costs incurred related to amendment of facility     $ 12,200,000    
Current portion of long-term debt       $ 421,600,000  
Senior unsecured 5.00% Notes due on February 14, 2025 [Member]          
Debt Instrument [Line Items]          
Stated interest rate (percent)   5.00%      
Senior Unsecured 5.00% Notes due February 15, 2025          
Debt Instrument [Line Items]          
Accounts receivable securitization program, amount   $ 300,000,000      
Stated interest rate (percent)     500.00%    
Loss on extinguishment of debt   9,800,000      
Costs incurred related to amendment of facility   7,500,000      
Write off of Deferred Debt Issuance Cost   2,300,000      
Revolving Credit Facility Member          
Debt Instrument [Line Items]          
Revolving credit facility, matures August 2024   $ 515,000,000      
Maximum [Member]          
Debt Instrument [Line Items]          
Secured Net Leverage Ratio   3.00      
Minimum [Member]          
Debt Instrument [Line Items]          
Interest Coverage Ratio   4.00      
v3.21.2
Financing Agreements (Schedule of Maturities of Long-Term Debt) (Details) - Senior secured Term Loan A [Member]
$ in Millions
Sep. 30, 2021
USD ($)
Debt Instrument [Line Items]  
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months $ 50.0
Long-term Debt, Maturities, Repayments of Principal in Year Three 75.0
Long-term Debt, Maturities, Repayments of Principal in Year Four $ 775.0
v3.21.2
Financing Agreements (Schedule of Fair Value) (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Debt Instrument [Line Items]    
Total $ 494.0 $ 799.3
Unsecured debentures [Member]    
Debt Instrument [Line Items]    
Total 48.6 48.0
Senior Unsecured 4.375% Notes due September 2027 [Member]    
Debt Instrument [Line Items]    
Total 445.4 441.2
Senior Unsecured 5.00% Notes due February 15, 2025    
Debt Instrument [Line Items]    
Total $ 0.0 $ 310.1
v3.21.2
Derivative Instruments and Hedging Activity (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Derivative [Line Items]      
Derivative, Fair Value, Net $ (14,300,000)    
Interest Expense 65,600,000 $ 74,000,000.0 $ 89,600,000
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments $ 5,200,000 5,200,000  
Derivative Instruments and Hedging Activities Disclosure
Note 6. Derivative Instruments and Hedging Activity

We are exposed to various market risks, including fluctuations in interest rates and variability in foreign currency exchange rates. We have established policies, procedures and internal processes governing our management of market risks and the use of financial instruments to manage our exposure to such risks. We employ cash flow hedges, net investment hedges, and other derivative instruments not designated for hedge accounting to manage these risks.

Cash Flow Hedges

To manage our exposure to market risk from fluctuations in interest rates, we enter into interest rate swaps that are designated as cash flow hedges. As of September 30, 2021 and September 30, 2020, we had interest rate swap agreements with an aggregate notional amount of $750.0 million to hedge the variability of cash flows through August 2024 associated with a portion of the variable interest rate payments on outstanding borrowings under our Senior Credit Agreement.

We are subject to variability in foreign currency exchange rates due to our international operations. We enter into currency exchange contracts that are designated as cash flow hedges to manage our exposure arising from fluctuating exchange rates related to specific and projected transactions. We operate this program pursuant to documented corporate risk management policies and do not enter into derivative transactions for speculative purposes. The sensitivity of earnings and cash flows to variability in exchange rates is assessed by applying an appropriate range of potential rate fluctuations to our assets, obligations, and projected results of operations denominated in foreign currencies. Our currency risk consists primarily of foreign currency denominated firm commitments and projected foreign currency denominated intercompany and third-party transactions. As of September 30, 2021, we had no outstanding currency exchange contracts. As of September 30, 2020, the notional amount of outstanding currency exchange contracts was $64.4 million. The maximum length of time over which we hedge transaction exposures is generally 12 months. Derivative gains and losses, initially reported as a component of Accumulated other comprehensive income (loss), are reclassified to earnings in the period when the underlying transaction affects earnings.

Net Investment Hedges

As of September 30, 2021 and 2020, we had cross-currency swap agreements, with an aggregate notional amount of $198.3 million to hedge the variability of U.S. dollar-Euro exchange rates through July 2023. These cross-currency swaps are designated as net investment hedges of subsidiaries using Euro as their functional currency. 

We assess hedge effectiveness under the spot-to-spot method and record changes in fair value attributable to the translation of foreign currencies through Accumulated other comprehensive income (loss). The remaining changes in fair value are related to
interest earned on cross-currency swaps and are amortized through Interest expense, which was income of $5.2 million for both the fiscal year ended September 30, 2021 and 2020.

Undesignated Derivative Instruments

We use forward contracts to mitigate the foreign exchange revaluation risk associated with recorded monetary assets and liabilities that are denominated in a non-functional currency. These derivative instruments are not formally designated as hedges and the terms of these instruments generally do not exceed one month. As of September 30, 2021 and 2020, we had forward contracts not designated as hedges with aggregate notional amounts of $116.4 million and $169.9 million. The following table summarizes unrealized and realized gains and losses for forward contracts not designated as hedges, which are recorded in Investment income (expense) and other, net.
(In millions)Year Ended September 30
20212020
Unrealized gains (losses)$(0.5)$— 
Realized gains (losses)(5.1)3.0 

Fair Value

We classify fair value measurements on our derivative instruments as Level 2. The estimated fair values of our derivative instruments are described in the table below:
(In millions)

Derivative Instruments
September 30, 2021September 30, 2020Consolidated Balance Sheet Classification
Interest Rate Swaps$(22.2)$(46.3)Other current liabilities
Currency Exchange Contracts— (0.4)Other current liabilities
Cross-Currency Swaps8.5 9.7 Other assets
Undesignated Forward Contracts0.4 — Other assets
Undesignated Forward Contracts(1.0)— Other current liabilities
Total$(14.3)$(37.0)
    
Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Derivative, Fair Value, Net   (37,000,000.0)  
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments $ (500,000) 0  
Derivative, Gain on Derivative (5,100,000) 3,000,000.0  
Derivative, Notional Amount 116,400,000 169,900,000  
Net Investment Hedging [Member]      
Derivative [Line Items]      
Derivative, Notional Amount 198,300,000    
Cash Flow Hedges      
Derivative [Line Items]      
Derivative, Notional Amount 750,000,000.0    
Currency Swap [Member]      
Derivative [Line Items]      
Derivative, Notional Amount   64,400,000  
Other Assets [Member] | Net Investment Hedging [Member]      
Derivative [Line Items]      
Derivative, Fair Value, Net 8,500,000 9,700,000  
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Derivative, Fair Value, Net (1,000,000.0) 0  
Other Current Liabilities [Member] | Currency Swap [Member]      
Derivative [Line Items]      
Derivative, Fair Value, Net 0 (400,000)  
Other Current Liabilities [Member] | Cash Flow Hedging      
Derivative [Line Items]      
Derivative, Fair Value, Net (22,200,000) (46,300,000)  
Other Assets | Not Designated as Hedging Instrument [Member]      
Derivative [Line Items]      
Derivative, Fair Value, Net $ 400,000 $ 0  
v3.21.2
Leases, Codification Topic 842 (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Lessee, Lease, Description [Line Items]      
Operating Lease, Expense $ 27,200,000 $ 27,800,000  
Variable Lease, Cost 11,900,000 11,500,000  
Lease, Cost $ 39,100,000 $ 39,300,000  
Operating Lease, Weighted Average Discount Rate, Percent 3.14% 3.30%  
Operating Lease, Weighted Average Remaining Lease Term 4 years 4 months 28 days 4 years 5 months 23 days  
Operating Lease, Payments $ 27,000,000.0 $ 27.6  
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability 18,200,000 16.6  
Lessee, Operating Lease, Liability, Payments, Due Next Rolling Twelve Months 24,600,000    
Lessee, Operating Lease, Liability, to be Paid, Year Two 18,900,000    
Lessee, Operating Lease, Liability, to be Paid, Year Three 12,500,000   $ 15,700,000
Lessee, Operating Lease, Liability, to be Paid, Year Four 8,200,000   11,100,000
Lessee, Operating Lease, Liability, to be Paid, Year Five 6,300,000   6,400,000
Lessee, Operating Lease, Liability, to be Paid, after Year Five 8,700,000   14,600,000
Lessee, Operating Lease, Liability, to be Paid 79,200,000    
Lessee, Operating Lease, Liability, Undiscounted Excess Amount (5,900,000)    
Operating Lease, Liability 73,300,000    
Operating Leases, Future Minimum Payments Receivable 47,800,000    
Operating Leases, Rent Expense     $ 39,800,000
Other Current Liabilities [Member]      
Lessee, Lease, Description [Line Items]      
Operating Lease, Liability, Current 22,700,000 22,800,000  
Other Assets [Member]      
Lessee, Lease, Description [Line Items]      
Operating Lease, Right-of-Use Asset 68,500,000 72,300,000  
Other Liabilities      
Lessee, Lease, Description [Line Items]      
Operating Lease, Liability, Noncurrent $ 50,600,000 $ 54,400,000  
Minimum [Member]      
Lessee, Lease, Description [Line Items]      
Lessor, Operating Lease, Term of Contract 1 year    
Maximum [Member]      
Lessee, Lease, Description [Line Items]      
Lessor, Operating Lease, Term of Contract 8 years    
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Net Periodic Benefit Cost) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure [Line Items]      
Net periodic benefit cost $ 10.4 $ 15.8 $ 4.7
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan   40.6  
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 5.1 5.2  
Interest cost 7.4 8.7 12.5
Expected return on plan assets (11.8) (14.0) (14.8)
Amortization of unrecognized prior service cost, net 0.1 0.0 0.1
Amortization of net loss 6.3 6.9 2.4
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement 0.0 8.5  
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits 3.3 0.5  
Net periodic benefit cost 7.1 6.8 4.7
Selling, General and Administrative Expenses [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 3.4 3.4 2.7
Cost of Sales [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 1.7 $ 1.8 $ 1.8
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Obligations and Funded Status) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Change in benefit obligation:      
Benefit obligation at beginning of year $ 371,800,000    
Benefit obligation at end of year 363,800,000 $ 371,800,000  
Change in plan assets:      
Fair value of plan assets at beginning of year 291,700,000    
Fair value of plan assets at end of year 301,900,000 291,700,000  
Amounts recorded in the Consolidated Balance Sheets:      
Accrued pension benefits, long-term (73.8) (89,300,000)  
Pension Plan [Member]      
Change in benefit obligation:      
Benefit obligation at beginning of year 371,800,000 380,400,000  
Service cost 5,100,000 5,200,000  
Interest cost 7,400,000 8,700,000 $ 12,500,000
Actuarial (gain) loss 1 (10,700,000) 28,700,000  
Defined Benefit Plan, Benefit Obligation, Benefits Paid 12,600,000 12,600,000  
Defined Benefit Plan, Benefit Obligation, Business Combination 0 3,500,000  
Defined Benefit Plan, Benefit Obligation, Payment for Settlement (200,000) (44,200,000)  
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits 3,300,000 500,000  
Exchange rate (gain) loss (300,000) 1,600,000  
Benefit obligation at end of year 363,800,000 371,800,000 380,400,000
Change in plan assets:      
Fair value of plan assets at beginning of year 291,700,000 310,600,000  
Actual return on plan assets 21,800,000 33,400,000  
Employer contributions 1,200,000 1,000,000.0  
Defined Benefit Plan, Plan Assets, Benefits Paid 12,600,000 12,600,000  
Defined Benefit Plan, Plan Assets, Business Combination 0 (3,500,000)  
Defined Benefit Plan, Plan Assets, Payment for Settlement (200,000) (44,200,000)  
Fair value of plan assets at end of year 301,900,000 291,700,000 $ 310,600,000
Funded status and net amounts recognized (61,900,000) (80,100,000)  
Amounts recorded in the Consolidated Balance Sheets:      
Accrued pension benefits, current portion (1,400,000) (1,500,000)  
Accrued pension benefits, long-term (60,500,000) (78,600,000)  
Net amount recognized $ (61,900,000) $ (80,100,000)  
v3.21.2
Retirement and Postretirement Benefit Plans (Narrative) (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
plan
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Defined Benefit Plan Disclosure [Line Items]      
Defined contribution savings plans expense $ 31.6 $ 31.9 $ 29.0
Accumulated Benefit Obligation      
Accumulated benefit obligation $ 348.3 352.1  
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Number of retirement plans | plan 1    
Net actuarial gains (losses) included in Accumulated Other Comprehensive Income (Loss) $ (37.8) (64.9)  
Prior service (credits) costs included in Accumulated Other Comprehensive Income (Loss) 0.3 0.4  
Pension items in AOCI, aggregate tax effect $ 10.0 $ 16.3  
Discount rate for expense 2.70% 3.20% 4.20%
Discount rate for obligation 2.90% 2.70% 3.20%
Defined Benefit Plan, Information about Plan Assets [Abstract]      
Equity securities of one entity, maximum percentage of portfolio 10.00%    
Cash Flows      
Employer contributions $ 1.2 $ 1.0  
Domestic Plan [Member]      
Accumulated Benefit Obligation      
Accumulated benefit obligation $ 323.6 325.7  
Cash Flows      
Funded percentage (in excess of) 89.00%    
Postretirement Health Coverage [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Number of retirement plans | plan 2    
Net actuarial gains (losses) included in Accumulated Other Comprehensive Income (Loss) $ 7.5 10.9  
Prior service (credits) costs included in Accumulated Other Comprehensive Income (Loss) (0.3) (0.4)  
Pension items in AOCI, aggregate tax effect $ 2.0 $ 2.9  
Discount rate for expense 1.60% 2.60% 4.00%
Discount rate for obligation 2.00% 1.80% 3.00%
Ultimate health care cost trend rate 4.50%    
Expected employer contributions required in next year $ 2.1    
Defined benefit plan estimated future employer contributions in next fiscal, per year, thereafter $ 1.0    
Postretirement Health Coverage [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate 6.00%    
Postretirement Health Coverage [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate 5.60%    
Executives [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Number of retirement plans | plan 1    
Cash [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Assets for Plan Benefits, Defined Benefit Plan $ 3.2 $ 2.1  
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Accumulated Benefit Obligation) (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure [Line Items]      
PBO $ 363.8 $ 371.8  
ABO 348.3 352.1  
Plan Assets 301.9 291.7  
Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
PBO 363.8 371.8 $ 380.4
Plan Assets 301.9 291.7 $ 310.6
Domestic Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
PBO 337.1 343.2  
ABO 323.6 325.7  
Plan Assets 301.9 291.7  
Foreign Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
PBO 21.3 23.0  
ABO 19.3 20.8  
Plan Assets 0.0 0.0  
Supplemental Executive Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
PBO 5.4 5.6  
ABO 5.4 5.6  
Plan Assets $ 0.0 $ 0.0  
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Actuarial Assumptions) (Details) - Pension Plan [Member]
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Weighted average assumptions to determine benefit obligations at the measurement date:      
Discount rate for obligation 2.90% 2.70% 3.20%
Rate of compensation increase 2.60% 2.60% 2.60%
Weighted average assumptions to determine benefit cost for the year:      
Discount rate for expense 2.70% 3.20% 4.20%
Expected rate of return on plan assets 4.50% 5.30% 5.50%
Rate of compensation increase 2.60% 2.60% 3.00%
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Allocation of Plan Assets) (Details) - Pension Plan [Member]
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Defined Benefit Plan Disclosure [Line Items]    
Actual Allocation 100.00% 100.00%
Equity Securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actual Allocation 33.70% 34.00%
Fixed income securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actual Allocation 66.30% 66.00%
Minimum [Member] | Equity Securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description 31 31
Minimum [Member] | Fixed income securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description 63 63
Maximum [Member] | Equity Securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description 37 37
Maximum [Member] | Fixed income securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description 69 69
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Fair Value Measurements of Plan Assets) (Details) - USD ($)
Sep. 30, 2021
Sep. 30, 2020
Pension Plan [Member] | Cash [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Assets for Plan Benefits, Defined Benefit Plan $ 3,200,000 $ 2,100,000
Fair Value Measured at Net Asset Value Per Share [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Assets for Plan Benefits, Defined Benefit Plan 298,700,000 289,600,000
Fair Value Measured at Net Asset Value Per Share [Member] | Fixed income securities [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Assets for Plan Benefits, Defined Benefit Plan 197,200,000 191,000,000.0
Fair Value Measured at Net Asset Value Per Share [Member] | U.S. companies [Member] | Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Assets for Plan Benefits, Defined Benefit Plan 52,000,000.0 49,700,000
Fair Value Measured at Net Asset Value Per Share [Member] | International companies [Member] | Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Assets for Plan Benefits, Defined Benefit Plan $ 49,500,000 $ 48,900,000
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Estimated Future Benefit Payments) (Details) - Pension Plan [Member]
$ in Millions
Sep. 30, 2021
USD ($)
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]  
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months $ 14.9
Defined Benefit Plan, Expected Future Benefit Payment, Year Two 14.6
Defined Benefit Plan, Expected Future Benefit Payment, Year Three 15.4
Defined Benefit Plan, Expected Future Benefit Payment, Year Four 16.1
Defined Benefit Plan, Expected Future Benefit Payment, Year Five 16.6
Defined Benefit Plan, Expected Future Benefit Payment, after Year Five for Next Five Years $ 94.2
v3.21.2
Retirement and Postretirement Benefit Plans (Schedule of Postretirement Health Care Plan) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Change in benefit obligation:    
Benefit obligation at beginning of year $ 371,800,000  
Benefit obligation at end of year 363,800,000 $ 371,800,000
Amounts recorded in the Consolidated Balance Sheets:    
Accrued benefits obligation, long-term 73.8 89,300,000
Postretirement Health Coverage [Member]    
Change in benefit obligation:    
Benefit obligation at beginning of year 12,200,000 12,700,000
Service cost 100,000 100,000
Interest cost 100,000 200,000
Actuarial loss (gain) 1,800,000 (400,000)
Defined Benefit Plan, Benefit Obligation, Benefits Paid 1,800,000 1,000,000.0
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant 400,000 200,000
Benefit obligation at end of year 12,900,000 12,200,000
Amounts recorded in the Consolidated Balance Sheets:    
Accrued benefits obligation, current portion 2,000,000.0 1,600,000
Accrued benefits obligation, long-term 10,900,000 10,600,000
Net amount recognized 12,900,000 12,200,000
Special Termination Benefits    
Change in benefit obligation:    
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant $ 100,000 $ 400,000
v3.21.2
Other Comprehensive Income (Schedule of Changes in AOCL by Component) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax $ 50,100,000 $ (5,100,000) $ (66,900,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax (4,800,000) 2,200,000 4,200,000
Other Comprehensive Income (Loss), before Tax, Total 54,900,000 (7,300,000) (71,100,000)
Other Comprehensive Income (Loss), Tax (10,700,000) 9,600,000 7,000,000.0
Other comprehensive income (loss) 44,200,000 2,300,000 (64,100,000)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net 4,100,000    
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 1,726,100,000 4.9  
Other comprehensive income (loss) 44,200,000 2,300,000 (64,100,000)
Ending balance3 1,879.7 1,726,100,000 4.9
Derivative Instruments and Hedges [Member]      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Tax, Total 23,200,000 (47,500,000) (13,600,000)
Other Comprehensive Income (Loss), Tax (5,300,000) 11,000,000.0 3,200,000
Other comprehensive income (loss) 17,900,000 (36,500,000) (10,400,000)
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (29,300,000) 7,200,000 16,800,000
Other comprehensive income (loss) 17,900,000 (36,500,000) (10,400,000)
Ending balance3 (11,400,000) (29,300,000) 7,200,000
Derivative Instruments and Hedges [Member] | Foreign Exchange Forward [Member]      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Tax, Total 400,000 (700,000) 0
Other Comprehensive Income (Loss), Tax (100,000) 200,000 0
Other comprehensive income (loss) 300,000 (500,000) 0
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (300,000) 200,000 200,000
Other comprehensive income (loss) 300,000 (500,000) 0
Ending balance3 0 (300,000) 200,000
Derivative Instruments and Hedges [Member] | Interest Rate Swap [Member]      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Tax, Total 24,100,000 (39,600,000) (31,600,000)
Other Comprehensive Income (Loss), Tax (5,500,000) 9,100,000 7,300,000
Other comprehensive income (loss) 18,600,000 (30,500,000) (24,300,000)
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (35,700,000) (5,200,000) 18,300,000
Other comprehensive income (loss) 18,600,000 (30,500,000) (24,300,000)
Ending balance3 (17,100,000) (35,700,000) (5,200,000)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax 9,000,000.0 34,700,000 (40,100,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 0 0 0
Other Comprehensive Income (Loss), before Tax, Total 9,000,000.0 34,700,000 (40,100,000)
Other Comprehensive Income (Loss), Tax 0 0 0
Other comprehensive income (loss) 9,000,000.0 34,700,000 (40,100,000)
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (110,700,000) (145,400,000) (105,300,000)
Other comprehensive income (loss) 9,000,000.0 34,700,000 (40,100,000)
Ending balance3 (101,700,000) (110,700,000) (145,400,000)
Change in Pension and Postretiremen Defined Benefit Plans [Member]      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax 800,000 900,000 (19,400,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 21,900,000 4,600,000 2,000,000.0
Other Comprehensive Income (Loss), before Tax, Total 22,700,000 5,500,000 (17,400,000)
Other Comprehensive Income (Loss), Tax (5,400,000) (1,400,000) 3,800,000
Other comprehensive income (loss) 17,300,000 4,100,000 (13,600,000)
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (40,200,000) (44,300,000) (24,500,000)
Other comprehensive income (loss) 17,300,000 4,100,000 (13,600,000)
Ending balance3 (22,900,000) (40,200,000) (44,300,000)
AOCI Attributable to Parent [Member]      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other comprehensive income (loss)   2,300,000  
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (180,200,000) (182,500,000) (113,000,000.0)
Other comprehensive income (loss)   2,300,000  
Ending balance3 (136,000,000.0) (180,200,000) (182,500,000)
AOCI Attributable to Parent [Member] | Accounting Standards Update 2018-02      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 2,300,000    
Ending balance3 44,200,000 2,300,000  
Retained Earnings [Member] | Accounting Standards Update 2018-02      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance   5,400,000  
Ending balance3     5,400,000
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification     5,400,000
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax 40,300,000 (40,700,000) (7,400,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax (17,100,000) (6,800,000) (6,200,000)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest Rate Swap [Member]      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax 37,900,000 (35,400,000) (24,800,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax (13,800,000) (4,200,000) (6,800,000)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Foreign Exchange      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax 3,700,000 1,900,000 (600,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax (3,300,000) (2,600,000) 600,000
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent      
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax (1,300,000) (7,200,000) 18,000,000.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 0 0 0
Other Comprehensive Income (Loss), before Tax, Total (1,300,000) (7,200,000) 18,000,000.0
Other Comprehensive Income (Loss), Tax 300,000 1,700,000 (4,100,000)
Other comprehensive income (loss) (1,000,000.0) (5,500,000) 13,900,000
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 6,700,000 12,200,000 (1,700,000)
Other comprehensive income (loss) (1,000,000.0) (5,500,000) 13,900,000
Ending balance3 $ 5,700,000 $ 6,700,000 $ 12,200,000
v3.21.2
Other Comprehensive Income (Schedule of Items Reclassified out of AOCL) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net $ 4.1    
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 4.8 $ (2.2) $ (4.2)
Other Comprehensive Income (Loss), before Reclassifications, before Tax 50.1 (5.1) (66.9)
Tax effect 54.3 48.2 56.4
Net of tax (248.5) (223.0) (152.2)
Retained Earnings [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net of tax (248.5) (223.0) (152.2)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net of tax   (5.3)  
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 0.0 0.0 0.0
Other Comprehensive Income (Loss), before Reclassifications, before Tax 9.0 34.7 (40.1)
Change in Pension and Postretirement Defined Benefit Plans [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax (21.9) (4.6) (2.0)
Other Comprehensive Income (Loss), before Reclassifications, before Tax 0.8 0.9 (19.4)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 17.1 6.8 6.2
Other Comprehensive Income (Loss), before Reclassifications, before Tax 40.3 (40.7) (7.4)
Tax effect 4.0   1.4
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Tax effect   1.5  
Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in Pension and Postretirement Defined Benefit Plans [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Tax effect (5.4) (1.4) (2.4)
Net of tax (16.5) (3.2) 0.4
Foreign Exchange Forward [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Tax effect   0.5  
Net of tax   (2.1)  
Interest Rate Swap [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Tax effect   1.0  
Net of tax (13.1) 3.2 (4.8)
Interest Rate Swap [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 13.8 4.2 6.8
Other Comprehensive Income (Loss), before Reclassifications, before Tax 37.9 (35.4) (24.8)
Tax effect 3.2   1.6
Net of tax 10.6   5.2
Foreign Exchange | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 3.3 2.6 (0.6)
Other Comprehensive Income (Loss), before Reclassifications, before Tax 3.7 $ 1.9 (0.6)
Tax effect 0.8   (0.2)
Net of tax $ 2.5   $ (0.4)
v3.21.2
Common Stock (Narrative) (Details) - USD ($)
 12 Months Ended 97 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2021
Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share Price $ 150.00     $ 150.00  
Stock Repurchase Program, Number of Shares Authorized to be Repurchased $ 500,000,000     $ 500,000,000 $ 340,000,000
Stock Repurchase Program, Number of Shares Authorized to be Repurchased   $ 170,000,000      
Share-based Payment Arrangement, Noncash Expense 45,600,000 38,400,000 $ 34,400,000    
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Amount $ 1,500,000 4,700,000 5,200,000    
Shares repurchased (in shares) 1,200,000        
Value of shares repurchased $ 130,700,000        
Remaining availability 532,700,000     $ 532,700,000  
Payments for Repurchase of Common Stock (130,700,000) (54,100,000) (117,200,000)    
Payment, Tax Withholding, Share-based Payment Arrangement $ 9,500,000 $ 16,500,000 $ 4,700,000    
Treasury stock (in shares) 22,600,000     22,600,000  
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized 3,000,000     3,000,000  
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant 3,000,000     3,000,000  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 1 year 8 months 12 days        
Common Stock Common Stock
Share Repurchases

Under the Board-approved share repurchase program, authorization of $340.0 million was previously granted to repurchase shares. In September 2019, the Board approved an additional $170.0 million for repurchases. In July 2021, the Board approved an increase to the share repurchase program in an amount of $500.0 million. Repurchases may be made on the open market or via private transactions, and are used to manage our capital structure, offset the dilutive impact of stock-based compensation and return cash to shareholders. The Merger Agreement places restrictions on our ability to repurchase shares of our common stock. As a result, we do not expect to make repurchases under the common stock repurchase program while the Merger Agreement is in effect. However, we may continue to repurchase shares of our common stock from employees in connection with employee payroll tax withholding for restricted stock distributions. For the fiscal year ended September 30, 2021, we repurchased 1.2 million shares of our common stock in the open market valued at $130.7 million. For the fiscal year ended September 30, 2020, we repurchased 0.5 million shares of our common stock in the open market valued at $54.1 million. For the fiscal year ended September 30, 2019, we repurchased 1.2 million shares of our common stock in the open market valued at $117.2 million. As of September 30, 2021, a cumulative total of $477.3 million had been used, leaving us with availability of $532.7 million for future repurchases.

The following table summarizes common stock purchased in connection with employee payroll tax withholding for restricted stock distributions for the following fiscal years:
Year Ended September 30
202120202019
Total number of shares purchased99,259 158,521 48,908 
Dollar value of shares purchased (in millions)
$9.5 $16.5 $4.7 

Stock-Based Compensation

We have stock-based compensation plans under which employees and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. In addition to stock options, we grant performance share units (“PSUs”) and RSUs to certain management level employees and vested restricted stock to non-employee directors. We also offer eligible employees the opportunity to buy shares of our common stock at a discount via an Employee Stock Purchase Plan (“ESPP”).

The Stock Incentive Plan, which was approved at the 2021 annual meeting of shareholders, replaced the 2002 Stock Incentive Plan. Common shares reserved for issuance under the plan total 3.0 million. As of September 30, 2021, approximately 3.0
million shares were available for future grants under our stock-based compensation plans. We generally settle our stock-based awards with treasury shares. As of September 30, 2021, we had 22.6 million treasury shares available for use to settle stock-based awards.

The stock-based compensation cost that was charged against income for all plans was $45.6 million, $38.4 million and $34.4 million for the fiscal years ended September 30, 2021, 2020 and 2019.

We recognize a tax benefit based on the increase in value from the grant date to the exercise date for stock options and from the grant date to the distribution date for the performance share units and restricted share units. The tax benefit is recorded during the year in which the exercise or distribution occurs. The tax benefit for exercises and distributions for the fiscal years ended September 30, 2021, 2020 and 2019 was $1.5 million, $4.7 million, and $5.2 million.

Options

Stock options granted by our Compensation Committee of our Board under the Stock Incentive Plan are non-qualified stock options. These awards are generally granted with exercise prices equal to the average of the high and low prices of our common stock on the date of grant. They vest in equal annual installments over a three- or four-year period and the maximum contractual term is ten years. We use a Binomial option-pricing model to estimate the fair value of stock options, and compensation cost is recognized on a straight-line basis over the requisite service period.

The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values:
 Year Ended September 30
 202120202019
Weighted average fair value per share$23.86 $24.80 $25.28 
Valuation assumptions:
Risk-free interest rate0.4%1.6%3.0%
Expected dividend yield0.9%0.8%0.8%
Expected volatility32.3%27.7%30.5%
Weighted average expected life (years)4.74.74.7

The risk-free interest rate is based upon observed U.S. Treasury interest rates appropriate for the term of our employee stock options. Expected dividend yield is based on the history and our expectation of dividend payouts. Expected volatility was based on our historical stock price volatility. Expected life represents the weighted average period the stock options are expected to remain outstanding and is a derived output of the Binomial model. The expected life of employee stock options is impacted by the above assumptions as well as the post-vesting forfeiture rate and the exercise factor used in the Binomial model. These two variables are based on the history of exercises and forfeitures for previous stock options granted by us.

The following table summarizes transactions under our stock option plans for the fiscal year ended September 30, 2021:
Weighted
Average
Number of
Shares
(in thousands)		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
(in millions)
Balance Outstanding as of October 1, 2020
740 $81.14 
Granted213 94.17 
Exercised(162)64.81 
Cancelled/Forfeited(24)75.91 
Balance Outstanding as of September 30, 2021767 $88.39 7.3$47.3 
Exercisable as of September 30, 2021332 $78.04 5.9$23.9 
Options Expected to Vest421 96.26 8.322.6 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on our closing stock price of $150.00, as reported by the New York Stock Exchange on September 30, 2021. This amount, which changes continuously
based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date.

The total intrinsic value of options exercised during fiscal years ended September 30, 2021, 2020 and 2019 was $7.9 million, $6.9 million and $17.7 million.

As of September 30, 2021, there was $5.2 million of unrecognized compensation expense related to stock options granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 2.4 years.

Restricted Stock Units

RSUs are granted to certain employees with fair values equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. RSU grants are contingent upon continued employment and vest over periods ranging from one to four years. Dividends, payable in common stock equivalents, accrue on the grants and are subject to the same specified terms as the original grants, including the risk of forfeiture.

The following table summarizes transactions for our nonvested RSUs for the fiscal year ended 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested RSUs as of October 1, 2020
337$112.41 
Granted297 92.16 
Vested(240)93.89 
Forfeited(28)95.38 
Nonvested RSUs as of September 30, 2021366$109.42 

As of September 30, 2021, there was $20.8 million of total unrecognized compensation expense related to nonvested RSUs granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 1.8 years. The total vest date fair value of shares that vested during fiscal years ended September 30, 2021, 2020 and 2019 was $22.5 million, $18.1 million and $16.6 million.

Performance Share Units

Our Compensation Committee grants PSUs to certain employees and these awards are subject to any stock dividends, stock splits, and other similar rights inuring to common stock, but unlike our RSUs are not entitled to dividend reinvestment. Vesting of the grants is contingent upon achievement of performance targets and corresponding service requirements.

The fair value of the PSUs is equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. For PSUs with a market condition such as total shareholder return, the Monte-Carlo simulation method is used to determine fair value. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of our and our group of peer companies’ future expected stock prices.

The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted for the fiscal years ended September 30, 2021, 2020 and 2019 are based on company-specific performance targets, with a total shareholder return collar.
 Year Ended September 30
 202120202019
Weighted average fair value per share$100.15 $110.53 $112.79 
Valuation assumptions:
Risk-free interest rate0.3%1.6%3.0%
Expected volatility34.7%23.8%22.8%
    
The basis for the assumptions listed above is similar to the valuation assumptions used for stock options, as discussed previously.

The following table summarizes transactions for our nonvested PSUs during fiscal year ended September 30, 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested PSUs as of October 1, 2020
165$111.73 
Granted79104.36 
Vested(51)126.55 
Forfeited(10)108.41 
Nonvested PSUs as of September 30, 2021183$104.55 
As of September 30, 2021, there was $10.5 million of unrecognized compensation expense related to PSUs granted under the Stock Incentive Plan based on the expected achievement of certain performance targets or market conditions. This unrecognized compensation expense as of September 30, 2021 does not reflect a reduction for our estimate of potential forfeitures and is expected to be recognized over a weighted average period of 1.7 years. The total fair value of shares that vested during fiscal years ended September 30, 2021, 2020 and 2019 was $6.5 million, $14.1 million and $8.0 million. 		       
Employee Tax Withholding For Restricted and Deferred Stock Distributions [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Treasury Stock, Shares, Acquired 99,259 158,521 48,908    
Share-based Payment Arrangement, Option [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Maximum contractual term 10 years        
Total intrinsic value of options exercised $ 7,900,000 $ 6,900,000 $ 17,700,000    
Share-based Payment Arrangement, Option [Member] | Minimum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period 3 years        
Share-based Payment Arrangement, Option [Member] | Maximum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period 4 years        
Restricted Stock Units (RSUs) [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total vest date fair value of shares that vested $ 22,500,000 18,100,000 16,600,000    
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 20,800,000     $ 20,800,000  
Restricted Stock Units (RSUs) [Member] | Minimum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period 1 year        
Restricted Stock Units (RSUs) [Member] | Maximum [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period 4 years        
Performance Shares [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total intrinsic value of options exercised $ 6,500,000        
Total vest date fair value of shares that vested   $ 14,100,000 $ 8,000,000    
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount 10,500,000     10,500,000  
Common Stock [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares repurchased (in shares)   500,000 (1,200,000)    
Value of shares repurchased   $ 54,100,000 $ (117,200,000) 477,300,000  
Pension Plan [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Defined Benefit Plan, Plan Assets, Contributions by Employer 1,200,000 1,000,000.0      
Pension Plan [Member] | Cash [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Assets for Plan Benefits, Defined Benefit Plan $ 3,200,000 $ 2,100,000   $ 3,200,000  
v3.21.2
Common Stock (Schedule of Stock-Based Compensation Cost) (Details)
 12 Months Ended
Sep. 30, 2021
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 1 year 8 months 12 days
Restricted Stock Units (RSUs) [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 20,800,000
Stock Compensation Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 5,200,000
v3.21.2
Common Stock (Schedule of Weighted Average Fair Value per Share of Stock Options and Related Valuation Assumptions) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Valuation assumptions:      
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 1 year 8 months 12 days    
Share-based Payment Arrangement, Option [Member]      
Share-based Payment Arrangement, Disclosure [Abstract]      
Weighted average fair value per share (usd per share) $ 23.86 $ 24.80 $ 25.28
Valuation assumptions:      
Risk-free interest rate 0.40% 1.60% 3.00%
Expected dividend yield 0.90% 0.80% 0.80%
Expected volatility 32.30% 27.70% 30.50%
Weighted average expected life (years)     4 years 8 months 12 days
Employee Stock      
Valuation assumptions:      
Weighted average expected life (years) 4 years 8 months 12 days 4 years 8 months 12 days  
Restricted Stock Units (RSUs) [Member]      
Valuation assumptions:      
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 20,800,000    
v3.21.2
Common Stock (Schedule of Transactions under Stock Option Plans) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Weighted Average Exercise Price      
Balance Outstanding (usd per share) $ 81.14    
Balance Outstanding (usd per share)   $ 81.14  
Aggregate Intrinsic Value      
Share Price $ 150.00    
Share-based Payment Arrangement, Option [Member]      
Weighted Average Number of Shares      
Granted (in shares) 213,000    
Exercised (in shares) (162,000)    
Cancelled/Forfeited (in shares) (24,000)    
Balance Outstanding 7 years 3 months 18 days    
Balance Outstanding (in shares) 767,000    
Exercisable (in shares) 332,000    
Options Expected to Vest (in shares) 421,000    
Weighted Average Exercise Price      
Exercised (usd per share) $ 78.04    
Weighted Average Remaining Contractual Term      
Exercisable 5 years 10 months 24 days    
Options Expected to Vest 8 years 3 months 18 days    
Aggregate Intrinsic Value      
Balance Outstanding (usd per share) $ 47,300,000    
Exercisable (usd per share) 23,900,000    
Options Expected to Vest (usd per share) 22,600,000    
Total intrinsic value of options exercised $ 7,900,000 $ 6,900,000 $ 17,700,000
Share-based Payment Arrangement      
Weighted Average Number of Shares      
Balance Outstanding (in shares) 740,000    
Balance Outstanding (in shares)   740,000  
Weighted Average Exercise Price      
Granted (usd per share) $ 94.17    
Exercised (usd per share) 64.81    
Cancelled/Forfeited (usd per share) 75.91    
Balance Outstanding (usd per share) 88.39    
Options Expected to Vest (usd per share) $ 96.26    
v3.21.2
Common Stock (Schedule of Transactions for Nonvested RSUs) (Details) - USD ($)
$ / shares in Units, shares in Thousands
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Weighted Average Grant Date Fair Value      
Common Stock Common Stock
Share Repurchases

Under the Board-approved share repurchase program, authorization of $340.0 million was previously granted to repurchase shares. In September 2019, the Board approved an additional $170.0 million for repurchases. In July 2021, the Board approved an increase to the share repurchase program in an amount of $500.0 million. Repurchases may be made on the open market or via private transactions, and are used to manage our capital structure, offset the dilutive impact of stock-based compensation and return cash to shareholders. The Merger Agreement places restrictions on our ability to repurchase shares of our common stock. As a result, we do not expect to make repurchases under the common stock repurchase program while the Merger Agreement is in effect. However, we may continue to repurchase shares of our common stock from employees in connection with employee payroll tax withholding for restricted stock distributions. For the fiscal year ended September 30, 2021, we repurchased 1.2 million shares of our common stock in the open market valued at $130.7 million. For the fiscal year ended September 30, 2020, we repurchased 0.5 million shares of our common stock in the open market valued at $54.1 million. For the fiscal year ended September 30, 2019, we repurchased 1.2 million shares of our common stock in the open market valued at $117.2 million. As of September 30, 2021, a cumulative total of $477.3 million had been used, leaving us with availability of $532.7 million for future repurchases.

The following table summarizes common stock purchased in connection with employee payroll tax withholding for restricted stock distributions for the following fiscal years:
Year Ended September 30
202120202019
Total number of shares purchased99,259 158,521 48,908 
Dollar value of shares purchased (in millions)
$9.5 $16.5 $4.7 

Stock-Based Compensation

We have stock-based compensation plans under which employees and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. In addition to stock options, we grant performance share units (“PSUs”) and RSUs to certain management level employees and vested restricted stock to non-employee directors. We also offer eligible employees the opportunity to buy shares of our common stock at a discount via an Employee Stock Purchase Plan (“ESPP”).

The Stock Incentive Plan, which was approved at the 2021 annual meeting of shareholders, replaced the 2002 Stock Incentive Plan. Common shares reserved for issuance under the plan total 3.0 million. As of September 30, 2021, approximately 3.0
million shares were available for future grants under our stock-based compensation plans. We generally settle our stock-based awards with treasury shares. As of September 30, 2021, we had 22.6 million treasury shares available for use to settle stock-based awards.

The stock-based compensation cost that was charged against income for all plans was $45.6 million, $38.4 million and $34.4 million for the fiscal years ended September 30, 2021, 2020 and 2019.

We recognize a tax benefit based on the increase in value from the grant date to the exercise date for stock options and from the grant date to the distribution date for the performance share units and restricted share units. The tax benefit is recorded during the year in which the exercise or distribution occurs. The tax benefit for exercises and distributions for the fiscal years ended September 30, 2021, 2020 and 2019 was $1.5 million, $4.7 million, and $5.2 million.

Options

Stock options granted by our Compensation Committee of our Board under the Stock Incentive Plan are non-qualified stock options. These awards are generally granted with exercise prices equal to the average of the high and low prices of our common stock on the date of grant. They vest in equal annual installments over a three- or four-year period and the maximum contractual term is ten years. We use a Binomial option-pricing model to estimate the fair value of stock options, and compensation cost is recognized on a straight-line basis over the requisite service period.

The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values:
 Year Ended September 30
 202120202019
Weighted average fair value per share$23.86 $24.80 $25.28 
Valuation assumptions:
Risk-free interest rate0.4%1.6%3.0%
Expected dividend yield0.9%0.8%0.8%
Expected volatility32.3%27.7%30.5%
Weighted average expected life (years)4.74.74.7

The risk-free interest rate is based upon observed U.S. Treasury interest rates appropriate for the term of our employee stock options. Expected dividend yield is based on the history and our expectation of dividend payouts. Expected volatility was based on our historical stock price volatility. Expected life represents the weighted average period the stock options are expected to remain outstanding and is a derived output of the Binomial model. The expected life of employee stock options is impacted by the above assumptions as well as the post-vesting forfeiture rate and the exercise factor used in the Binomial model. These two variables are based on the history of exercises and forfeitures for previous stock options granted by us.

The following table summarizes transactions under our stock option plans for the fiscal year ended September 30, 2021:
Weighted
Average
Number of
Shares
(in thousands)		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
(in millions)
Balance Outstanding as of October 1, 2020
740 $81.14 
Granted213 94.17 
Exercised(162)64.81 
Cancelled/Forfeited(24)75.91 
Balance Outstanding as of September 30, 2021767 $88.39 7.3$47.3 
Exercisable as of September 30, 2021332 $78.04 5.9$23.9 
Options Expected to Vest421 96.26 8.322.6 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on our closing stock price of $150.00, as reported by the New York Stock Exchange on September 30, 2021. This amount, which changes continuously
based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date.

The total intrinsic value of options exercised during fiscal years ended September 30, 2021, 2020 and 2019 was $7.9 million, $6.9 million and $17.7 million.

As of September 30, 2021, there was $5.2 million of unrecognized compensation expense related to stock options granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 2.4 years.

Restricted Stock Units

RSUs are granted to certain employees with fair values equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. RSU grants are contingent upon continued employment and vest over periods ranging from one to four years. Dividends, payable in common stock equivalents, accrue on the grants and are subject to the same specified terms as the original grants, including the risk of forfeiture.

The following table summarizes transactions for our nonvested RSUs for the fiscal year ended 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested RSUs as of October 1, 2020
337$112.41 
Granted297 92.16 
Vested(240)93.89 
Forfeited(28)95.38 
Nonvested RSUs as of September 30, 2021366$109.42 

As of September 30, 2021, there was $20.8 million of total unrecognized compensation expense related to nonvested RSUs granted under the Stock Incentive Plan. This unrecognized compensation expense does not consider potential forfeitures, and is expected to be recognized over a weighted average period of 1.8 years. The total vest date fair value of shares that vested during fiscal years ended September 30, 2021, 2020 and 2019 was $22.5 million, $18.1 million and $16.6 million.

Performance Share Units

Our Compensation Committee grants PSUs to certain employees and these awards are subject to any stock dividends, stock splits, and other similar rights inuring to common stock, but unlike our RSUs are not entitled to dividend reinvestment. Vesting of the grants is contingent upon achievement of performance targets and corresponding service requirements.

The fair value of the PSUs is equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. For PSUs with a market condition such as total shareholder return, the Monte-Carlo simulation method is used to determine fair value. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of our and our group of peer companies’ future expected stock prices.

The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted for the fiscal years ended September 30, 2021, 2020 and 2019 are based on company-specific performance targets, with a total shareholder return collar.
 Year Ended September 30
 202120202019
Weighted average fair value per share$100.15 $110.53 $112.79 
Valuation assumptions:
Risk-free interest rate0.3%1.6%3.0%
Expected volatility34.7%23.8%22.8%
    
The basis for the assumptions listed above is similar to the valuation assumptions used for stock options, as discussed previously.

The following table summarizes transactions for our nonvested PSUs during fiscal year ended September 30, 2021:
Number of
Share Units
(in thousands)		Weighted
Average
Grant Date
Fair Value
Nonvested PSUs as of October 1, 2020
165$111.73 
Granted79104.36 
Vested(51)126.55 
Forfeited(10)108.41 
Nonvested PSUs as of September 30, 2021183$104.55 
As of September 30, 2021, there was $10.5 million of unrecognized compensation expense related to PSUs granted under the Stock Incentive Plan based on the expected achievement of certain performance targets or market conditions. This unrecognized compensation expense as of September 30, 2021 does not reflect a reduction for our estimate of potential forfeitures and is expected to be recognized over a weighted average period of 1.7 years. The total fair value of shares that vested during fiscal years ended September 30, 2021, 2020 and 2019 was $6.5 million, $14.1 million and $8.0 million. 		   
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 1 year 8 months 12 days    
Restricted Stock Units (RSUs) [Member]      
Number of Share Units      
Nonvested (in shares) 337    
Granted (in shares) 297    
Vested (in shares) (240)    
Forfeited (in shares) (28)    
Nonvested (in shares) 366 337  
Weighted Average Grant Date Fair Value      
Nonvested (usd per share) $ 112.41    
Granted (usd per share) 92.16    
Vested (usd per share) 93.89    
Forfeited (usd per share) 95.38    
Nonvested (usd per share) $ 109.42 $ 112.41  
Total vest date fair value of shares that vested $ 22,500,000 $ 18,100,000 $ 16,600,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 20,800,000    
v3.21.2
Common Stock (Schedule of Weighted Average Fair Value per Share PSUs and Related Valuation Assumptions) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Share-based Payment Arrangement, Option [Member]      
Performance Share Units      
Weighted average fair value per share (usd per share) $ 23.86 $ 24.80 $ 25.28
Valuation assumptions:      
Risk-free interest rate 0.40% 1.60% 3.00%
Expected dividend yield 0.90% 0.80% 0.80%
Expected volatility 32.30% 27.70% 30.50%
Balance Outstanding 7 years 3 months 18 days    
Total intrinsic value of options exercised $ 7,900,000 $ 6,900,000 $ 17,700,000
Performance Shares [Member]      
Performance Share Units      
Weighted average fair value per share (usd per share) $ 100.15 $ 110.53 $ 112.79
Valuation assumptions:      
Risk-free interest rate 0.30% 1.60% 3.00%
Expected volatility 34.70% 23.80% 22.80%
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 10,500,000    
Total intrinsic value of options exercised $ 6,500,000    
v3.21.2
Common Stock (Schedule of Transactions for Nonvested PSUs) (Details) - USD ($)
$ / shares in Units, shares in Thousands
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Weighted Average Grant Date Fair Value      
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition 1 year 8 months 12 days    
Performance Shares [Member]      
Number of Share Units      
Nonvested (in shares) 165    
Granted (in shares) 79    
Vested (in shares) (51)    
Forfeited (in shares) (10)    
Nonvested (in shares) 183 165  
Weighted Average Grant Date Fair Value      
Nonvested (usd per share) $ 111.73    
Granted (usd per share) 104.36    
Vested (usd per share) 126.55    
Forfeited (usd per share) 108.41    
Nonvested (usd per share) $ 104.55 $ 111.73  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 10,500,000    
Total vest date fair value of shares that vested   $ 14,100,000 $ 8,000,000
Restricted Stock Units (RSUs) [Member]      
Number of Share Units      
Nonvested (in shares) 337    
Granted (in shares) 297    
Vested (in shares) (240)    
Forfeited (in shares) (28)    
Nonvested (in shares) 366 337  
Weighted Average Grant Date Fair Value      
Nonvested (usd per share) $ 112.41    
Granted (usd per share) 92.16    
Vested (usd per share) 93.89    
Forfeited (usd per share) 95.38    
Nonvested (usd per share) $ 109.42 $ 112.41  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 20,800,000    
Total vest date fair value of shares that vested $ 22,500,000 $ 18,100,000 $ 16,600,000
v3.21.2
Special Charges (Narrative) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]      
Special charge $ 47,400,000 $ 41,500,000 $ 28,400,000
Restructuring charges 23,700,000 14,600,000  
Global information technology transformation [Member]      
Restructuring Cost and Reserve [Line Items]      
Special charge 17,400,000 22,000,000  
Facility Closing [Member] | Site Consolidation [Member]      
Restructuring Cost and Reserve [Line Items]      
Special charge 600,000 5,800,000 7,300,000
Other Restructuring [Member] | Business Optimization [Member]      
Restructuring Cost and Reserve [Line Items]      
Special charge 9,200,000 13,100,000 19,800,000
Other Restructuring [Member] | Global Restructuring Program [Member]      
Restructuring Cost and Reserve [Line Items]      
Special charge 12,000,000.0 15,900,000 1,300,000
Other Restructuring [Member] | Workforce Reduction Plan [Member]      
Restructuring Cost and Reserve [Line Items]      
Special charge $ 25,600,000 $ 6,700,000  
Architectural Products Business [Member] | Employee Severance [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges     $ 29,600,000
v3.21.2
Special Charges (Schedule of Restructuring Activity) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Restructuring Reserve [Roll Forward]    
Balance $ 11.3 $ 8.5
Expenses 23.7 14.6
Cash Payments (27.1) (11.1)
Reversals 0.0 (0.7)
Balance $ 7.9 $ 11.3
v3.21.2
Income Taxes (Schedule of Components of Income before Income Taxes and the Consolidated Income Tax Provision) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Income Tax Disclosures [Line Items]        
Unrecognized Tax Benefits $ 2,700 $ 3,900 $ 9,600 $ 6,200
Income before income taxes:        
Domestic 145,000 137,000 122,500  
Foreign 157,800 134,200 86,100  
Total 302,800 271,200 208,600  
Current provision        
U.S. Federal 55,500 38,100 51,000  
State 13,100 10,800 6,000  
Foreign 17,700 18,300 18,200  
Total current provision 86,300 67,200 75,200  
Deferred provision:        
U.S. Federal (25,500) (15,600) (12,000)  
State (4,800) (2,800) (2,500)  
Foreign (1,700) (600) (4,300)  
Total deferred provision (32,000) (19,000) (18,800)  
Income tax expense 54,300 $ 48,200 $ 56,400  
Deferred Tax Assets, Tax Credit Carryforwards, Foreign $ 1,700      
v3.21.2
Income Taxes (Schedule of Differences between Income Tax Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Federal income tax $ 63.6 $ 57.0 $ 43.8
State income tax 7.3 4.1 3.3
Foreign income tax (17.9) (15.0) (10.1)
Application of federal research tax credits (7.7) (6.2) (5.6)
Application of foreign tax credits (9.5) (11.6) (0.1)
Valuation of tax attributes 1.2 5.0 2.2
Foreign inclusions (10.3) (7.7) 0.0
Excess tax benefits from share based awards 1.5 4.7 5.2
Other, net 4.0 3.0 1.0
Income tax expense $ 54.3 $ 48.2 $ 56.4
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Federal income tax 21.00% 21.00% 21.00%
State income tax 2.40% 1.50% 1.60%
Foreign income tax (5.90%) (5.50%) (4.90%)
Application of federal research tax credits (2.60%) (2.30%) (2.70%)
Application of foreign tax credits 3.20% 4.30% 0.00%
Valuation of tax attributes 0.40% 1.90% 1.10%
Foreign inclusions (3.50%) (2.90%) 0.00%
Excess tax benefits from share based awards 0.50% 1.70% 2.50%
Other, net 1.30% 1.10% 0.40%
Income tax expense 17.90% 17800000.00% 27000000.00%
Transition tax obligation, amount $ 0.0 $ 0.0 $ 1.0
Transition tax obligation, percent 0.00% 0.00% 0.50%
Foreign-derived Intangible Income Deduction $ (9.9) $ (7.8) $ (4.3)
Foreign-derived Intangible Income Deduction, Percent (3.40%) 2.90% 2.00%
GILTI inclusion $ 7.6 $ 12.6 $ 9.6
GILTI Inclusion, Percent 2.60% 4.60% 4.60%
Effective Income Tax Rate Reconciliation, Disposition of Business, Amount $ 0.0 $ 4.1 $ 18.2
Effective Income Tax Rate Reconciliation, Disposition of Business, Percent 0.00% (1.50%) 8.70%
Current period change in uncertain tax positions $ 0.0 $ 0.0 $ 4.6
Current period change in uncertain tax positions, percent 0.00% 0.00% (2.20%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent 2.30%    
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount $ 6.8    
v3.21.2
Income Taxes (Schedule of Deferred Taxes) (Details) - USD ($)
Sep. 30, 2021
Sep. 30, 2020
Deferred tax assets:    
Employee benefit accruals $ 58,100,000 $ 48,300,000
Inventory 15,200,000 14,700,000
Net operating loss carryforwards 93,300,000 69,700,000
Tax credit carryforwards 26,400,000 26,400,000
Other, net 36,500,000 36,200,000
Deferred tax assets, gross 247,800,000 214,100,000
Less: Valuation allowance (53,000,000.0) (50,800,000)
Total deferred tax assets 194,800,000 163,300,000
Deferred tax liabilities:    
Depreciation (14,600,000) (19,200,000)
Amortization (190,500,000) (201,000,000.0)
Deferred Tax Liabilities, Leasing Arrangements (17,100,000) (17,600,000)
Other, net (5,600,000) (5,600,000)
Total deferred tax liabilities (227,800,000) (243,400,000)
Deferred tax liability - net $ (33,000,000.0) $ (80,100,000)
v3.21.2
Income Taxes (Narrative) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Income Tax Disclosures [Line Items]        
Deferred Tax Assets, Operating Loss Carryforwards, Foreign $ 40,700,000      
Deferred tax assets related to domestic federal net operating loss carryforwards 43,100,000      
Deferred tax assets related to state net operating loss carryforwards 9,500,000      
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount 2,200,000      
Valuation allowances on deferred tax assets (53,000,000.0) $ (50,800,000)    
Impact of tax holidays $ 3,900,000 $ 3,300,000 $ 5,200,000  
Benefit of tax holidays on net income per share (diluted) (usd per share) $ 0.06 $ 0.05 $ 0.08  
Undistributed Earnings of Foreign Subsidiaries $ 83,500,000      
Amount of reasonably possible decrease 2,000,000.0      
Total gross unrecognized tax benefits 2,700,000 $ 3,900,000 $ 9,600,000 $ 6,200,000
Unrecognized tax benefits that would impact effective tax rate, if recognized 2,500,000 3,500,000 9,300,000  
Accrued interest and penalties related to unrecognized tax benefits 1,200,000 1,400,000 1,700,000  
Income tax benefit for interest and penalties 300,000 400,000 400,000  
Payment, Tax Withholding, Share-based Payment Arrangement (9,500,000) (16,500,000) (4,700,000)  
Transition tax obligation, amount 0 0 (1,000,000.0)  
Deferred Tax Assets, State Taxes 24,300,000      
Deferred Tax Assets, Capital Loss Carryforwards 1,100,000      
Deferred tax asset, Lease Liabilities 18,300,000 18,800,000    
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]        
Income tax benefit for interest and penalties 300,000 400,000 400,000  
Total gross unrecognized tax benefits $ 2,700,000 $ 3,900,000 $ 9,600,000 $ 6,200,000
v3.21.2
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance as of October 1 $ 3.9 $ 9.6 $ 6.2
Increases in tax position of prior years 0.2 0.0 5.8
Settlements with taxing authorities 0.0 (5.8) (1.1)
Lapse of applicable statute of limitations (1.4) (0.2) (1.0)
Foreign currency adjustments 0.0 0.3 (0.3)
Total change (1.2) (5.7) 3.4
Balance as of September 30 2.7 3.9 9.6
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Unrecognized tax benefits that would impact effective tax rate, if recognized $ 2.5 $ 3.5 $ 9.3
v3.21.2
Earnings per Common Share (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Earnings Per Share [Abstract]      
Net Income $ 248.5 $ 223.0 $ 152.2
Average shares outstanding - Basic (in shares) 66,204,000 66,631,000 66,772,000
Add potential effect of exercise of stock options and other unvested equity awards (in shares) 643,000 581,000 888,000
Average shares outstanding - Diluted (in shares) 66,847,000 67,212,000 67,660,000
Basic net income attributable to common shareholders per common share $ 3.75 $ 3.35 $ 2.28
Diluted net income attributable to common shareholders per common share $ 3.72 $ 3.32 $ 2.25
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 272,000 342,000 288,000
v3.21.2
Segment Reporting (Schedule of Segment Information) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Net Revenue - United States:      
Revenues $ 3,018.7 $ 2,881.0 $ 2,907.3
Divisional income:      
Divisional income 400.2 367.7 316.1
Other operating costs:      
Other operating costs 400.2 367.7 316.1
Special charge 47.4 41.5 28.4
Interest expense (65.6) (74.0) (89.6)
Loss on extinguishment of debt (9.8) (15.6) (3.0)
Investment income (expense) and other, net (22.0) (6.9) (14.6)
Income before income taxes 302.8 271.2 208.6
Depreciation, Depletion and Amortization 185.8 178.8 194.8
Extinguishment of Debt, Amount     (3.3)
Non-US [Member]      
Net Revenue - United States:      
Revenues 920.5 914.2 850.5
Corporate, Non-Segment [Member]      
Other operating costs:      
Depreciation, Depletion and Amortization 35.4 32.5 28.3
Patient Support Systems [Member]      
Other operating costs:      
Depreciation, Depletion and Amortization 52.0 43.5 36.2
Front Line Care [Member]      
Other operating costs:      
Depreciation, Depletion and Amortization 90.0 95.4 101.9
Surgical Solutions [Member]      
Other operating costs:      
Depreciation, Depletion and Amortization 8.4 7.4 28.4
Corporate and Other [Member]      
Segment Reporting Information [Line Items]      
Non-allocated operating costs, administrative and other 308.9 264.4 283.0
Operating Segments [Member]      
Net Revenue - United States:      
Revenues 3,018.7 2,881.0 2,907.3
Operating Segments [Member] | Geographic Distribution, Domestic      
Net Revenue - United States:      
Revenues 2,098.2 1,966.8 2,056.8
Operating Segments [Member] | Non-US [Member]      
Net Revenue - United States:      
Revenues 920.5 914.2 850.5
Operating Segments [Member] | Patient Support Systems [Member]      
Net Revenue - United States:      
Revenues 1,568.3 1,539.1 1,490.5
Divisional Income 356.1 332.3 299.9
Operating Segments [Member] | Patient Support Systems [Member] | Geographic Distribution, Domestic      
Net Revenue - United States:      
Revenues 1,162.1 1,133.6 1,135.0
Operating Segments [Member] | Patient Support Systems [Member] | Non-US [Member]      
Net Revenue - United States:      
Revenues 406.2 405.5 355.5
Operating Segments [Member] | Front Line Care [Member]      
Net Revenue - United States:      
Revenues 1,117.0 1,025.0 978.1
Divisional Income 348.8 301.8 266.4
Operating Segments [Member] | Front Line Care [Member] | Geographic Distribution, Domestic      
Net Revenue - United States:      
Revenues 785.7 707.4 700.6
Operating Segments [Member] | Front Line Care [Member] | Non-US [Member]      
Net Revenue - United States:      
Revenues 331.3 317.6 277.5
Operating Segments [Member] | Surgical Solutions [Member]      
Net Revenue - United States:      
Revenues 333.4 316.9 438.7
Divisional Income 51.6 39.5 61.2
Operating Segments [Member] | Surgical Solutions [Member] | Geographic Distribution, Domestic      
Net Revenue - United States:      
Revenues 150.4 125.8 221.2
Operating Segments [Member] | Surgical Solutions [Member] | Non-US [Member]      
Net Revenue - United States:      
Revenues $ 183.0 $ 191.1 $ 217.5
v3.21.2
Segment Reporting (Schedule of Geographic Information) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues $ 3,018.7 $ 2,881.0 $ 2,907.3
Long-lived assets 288.1 306.1 296.8
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 2,098.2 1,966.8 2,056.8
Long-lived assets 217.2 222.7 212.5
Foreign [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 920.5 914.2 850.5
Long-lived assets $ 70.9 $ 83.4 $ 84.3
v3.21.2
Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Quarterly Financial Information Disclosure [Abstract]      
Revenues $ 3,018.7 $ 2,881.0 $ 2,907.3
Divisional income 400.2 367.7 316.1
Net Income $ 248.5 $ 223.0 $ 152.2
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) $ 3.75 $ 3.35 $ 2.28
Net Income Attributable to Common Shareholders per Common Share - Diluted (usd per share) $ 3.72 $ 3.32 $ 2.25
v3.21.2
Commitments and Contingencies (Lease Commitments and Long-Term Agreement) (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Leases, Operating [Abstract]  
2018 $ 24.6
v3.21.2
Commitments and Contingencies (Self Insurance and Legal Proceedings) (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Uninsured Risk [Member] | Maximum [Member]  
Loss Contingencies [Line Items]  
Deductibles and self-insured retentions $ 1.0
v3.21.2
Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Allowance for possible losses and sales returns - accounts receivable [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
BALANCE AS OF BEGINNING OF PERIOD $ 25.9 $ 20.6 $ 21.8
CHARGED TO COSTS AND EXPENSES (2.4) (8.8) (5.0)
CHARGED TO OTHER ACCOUNTS 5.7 (0.3) 0.7
DEDUCTIONS NET OF RECOVERIES (8.6) 3.2 6.9
BALANCE AS OF END OF PERIOD 25.4 25.9 20.6
Valuation allowance against deferred tax assets [Member]      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
BALANCE AS OF BEGINNING OF PERIOD 50.8 45.0 80.2
CHARGED TO COSTS AND EXPENSES (1.2) (4.6) (2.2)
CHARGED TO OTHER ACCOUNTS 1.1 0.5 4.5
DEDUCTIONS NET OF RECOVERIES 0.1 (0.7) 41.9
BALANCE AS OF END OF PERIOD $ 53.0 $ 50.8 $ 45.0
v3.21.2
Label Element Value
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents $ 183,000,000.0