OSHKOSH CORP, 10-K filed on 11/19/2012
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Sep. 30, 2012
Nov. 9, 2012
Mar. 31, 2012
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
OSHKOSH CORP 
 
 
Entity Central Index Key
0000775158 
 
 
Document Type
10-K 
 
 
Document Period End Date
Sep. 30, 2012 
 
 
Amendment Flag
false 
 
 
Current Fiscal Year End Date
--09-30 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 2,123,214,322 
Entity Common Stock, Shares Outstanding (in shares)
 
91,565,824 
 
Document Fiscal Year Focus
2012 
 
 
Document Fiscal Period Focus
FY 
 
 
CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Net sales
$ 8,180.9 
$ 7,567.5 
$ 9,820.6 
Cost of sales
7,189.9 
6,489.2 
7,850.6 
Gross income
991.0 
1,078.3 
1,970.0 
Operating expenses:
 
 
 
Selling, general and administrative
567.3 
509.0 
483.9 
Amortization of purchased intangibles
57.7 
59.3 
59.0 
Intangible asset impairment charges
0 
2.0 
2.3 
Total operating expenses
625.0 
570.3 
545.2 
Operating income
366.0 
508.0 
1,424.8 
Other income (expense):
 
 
 
Interest expense
(76.0)
(90.7)
(187.1)
Interest income
1.9 
4.7 
3.0 
Miscellaneous, net
(5.2)
1.6 
1.0 
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
286.7 
423.6 
1,241.7 
Provision for income taxes
57.4 
145.1 
421.4 
Income from continuing operations before equity in earnings (losses) of unconsolidated affiliates
229.3 
278.5 
820.3 
Equity in earnings (losses) of unconsolidated affiliates
2.3 
0.5 
(4.3)
Income from continuing operations, net of tax
231.6 
279.0 
816.0 
Discontinued operations (Note 3):
 
 
 
Loss from discontinued operations
(5.8)
(7.1)
(33.1)
Income tax benefit
6.1 
1.5 
7.1 
Income (loss) from discontinued operations, net of tax
0.3 
(5.6)
(26.0)
Net income
231.9 
273.4 
790.0 
Net income attributable to noncontrolling interest
(1.1)
0 
0 
Net income attributable to Oshkosh Corporation
$ 230.8 
$ 273.4 
$ 790.0 
Earnings (loss) per share attributable to Oshkosh Corporation common shareholders-basic:
 
 
 
From continuing operations (in dollars per share)
$ 2.52 
$ 3.07 
$ 9.07 
From discontinued operations (in dollars per share)
$ 0.00 
$ (0.06)
$ (0.29)
Total earnings (loss) per share attributable to Oshkosh Corporation common shareholders-basic (in dollars per share)
$ 2.52 
$ 3.01 
$ 8.78 
Earnings (loss) per share attributable to Oshkosh Corporation common shareholders-diluted:
 
 
 
From continuing operations (in dollars per share)
$ 2.51 
$ 3.05 
$ 8.97 
From discontinued operations (in dollars per share)
$ 0.00 
$ (0.06)
$ (0.28)
Total earnings (loss) per share attributable to Oshkosh Corporation common shareholders-diluted (in dollars per share)
$ 2.51 
$ 2.99 
$ 8.69 
CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Current assets:
 
 
Cash and cash equivalents
$ 540.7 
$ 428.5 
Receivables, net
1,018.6 
1,089.1 
Inventories, net
937.5 
786.8 
Deferred income taxes
69.9 
72.9 
Prepaid income taxes
98.0 
49.0 
Other current assets
29.8 
28.3 
Total current assets
2,694.5 
2,454.6 
Investment in unconsolidated affiliates
18.8 
31.8 
Property, plant and equipment, net
369.9 
388.7 
Goodwill
1,033.8 
1,041.5 
Purchased intangible assets, net
775.4 
838.7 
Other long-term assets
55.4 
71.6 
Total assets
4,947.8 
4,826.9 
Current liabilities:
 
 
Revolving credit facility and current maturities of long-term debt
0 
40.1 
Accounts payable
683.3 
768.9 
Customer advances
510.4 
468.6 
Payroll-related obligations
130.1 
110.7 
Accrued warranty
95.0 
75.0 
Deferred revenue
113.0 
38.4 
Other current liabilities
172.7 
190.1 
Total current liabilities
1,704.5 
1,691.8 
Long-term debt, less current maturities
955.0 
1,020.0 
Deferred income taxes
129.6 
171.3 
Other long-term liabilities
305.2 
347.2 
Commitments and contingencies
   
   
Equity:
 
 
Preferred Stock ($.01 par value; 2,000,000 shares authorized; none issued and outstanding)
0 
0 
Common Stock ($.01 par value; 300,000,000 shares authorized; 92,086,465 and 91,330,019 shares issued, respectively)
0.9 
0.9 
Additional paid-in capital
703.5 
685.6 
Retained earnings
1,263.5 
1,032.7 
Accumulated other comprehensive loss
(101.4)
(122.6)
Common Stock in treasury, at cost (528,695 and 6,956 shares, respectively)
(13.0)
(0.1)
Total Oshkosh Corporation shareholders' equity
1,853.5 
1,596.5 
Noncontrolling interest
0 
0.1 
Total equity
1,853.5 
1,596.6 
Total liabilities and equity
$ 4,947.8 
$ 4,826.9 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2012
Sep. 30, 2011
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract]
 
 
Preferred Stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Preferred Stock, shares authorized
2,000,000 
2,000,000 
Preferred Stock, shares issued
0 
0 
Preferred Stock, shares outstanding
0 
0 
Common Stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common Stock, shares authorized
300,000,000 
300,000,000 
Common Stock, shares issued
92,086,465 
91,330,019 
Common Stock in treasury, shares
528,695 
6,956 
CONSOLIDATED STATEMENTS OF EQUITY (USD $)
In Millions, unless otherwise specified
Total
Common Stock
Additional Paid-In Capital
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive Income (Loss)
Common Stock in Treasury at Cost
Non-Controlling Interest
Comprehensive Income (Loss)
Balance at Sep. 30, 2009
 
$ 0.9 
$ 619.5 
$ (30.8)
$ (74.7)
$ (0.8)
$ 2.2 
 
Changes in Equity
 
 
 
 
 
 
 
 
Sale of discontinued operations (see Note 3)
 
 
 
 
 
 
(2.2)
 
Comprehensive income (loss):
 
 
 
 
 
 
 
 
Net income
790.0 
 
 
790.0 
 
 
0 
790.0 
Change in fair value of derivative instruments, net of tax of $0.0, $0.7, and $1.2 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
(5.6)
 
 
(5.6)
Losses reclassified into earnings from other comprehensive income, net of tax of $0.8, $6.0, and $14.9 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
26.6 
 
 
26.6 
Employee pension and postretirement benefits, net of tax of $17.9, $19.8, and $3.2 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
(12.6)
 
 
(12.6)
Currency translation adjustments reclassified into earnings from other comprehensive income, net
 
 
 
 
(0.8)
 
 
(0.8)
Currency translation adjustments, net
 
 
 
 
(26.1)
 
0 
(26.1)
Total comprehensive income
 
 
 
 
 
 
 
771.5 
Exercise of stock options
 
 
18.2 
 
 
0.8 
 
 
Stock-based compensation and award of nonvested shares
 
 
14.7 
 
 
 
 
 
Tax benefit related to stock-based compensation
 
 
7.0 
 
 
 
 
 
Other
 
 
0.3 
 
 
0 
0.2 
 
Balance at Sep. 30, 2010
 
0.9 
659.7 
759.2 
(93.2)
0 
0.2 
 
Comprehensive income (loss):
 
 
 
 
 
 
 
 
Net income
273.4 
 
 
273.4 
 
 
 
273.4 
Change in fair value of derivative instruments, net of tax of $0.0, $0.7, and $1.2 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
(1.4)
 
 
(1.4)
Losses reclassified into earnings from other comprehensive income, net of tax of $0.8, $6.0, and $14.9 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
10.6 
 
 
10.6 
Employee pension and postretirement benefits, net of tax of $17.9, $19.8, and $3.2 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
(33.8)
 
 
(33.8)
Currency translation adjustments, net
 
 
 
 
(4.8)
 
 
(4.8)
Total comprehensive income
 
 
 
 
 
 
 
244.0 
Exercise of stock options
 
 
7.8 
 
 
0.2 
 
 
Stock-based compensation and award of nonvested shares
 
 
15.5 
 
 
 
 
 
Tax benefit related to stock-based compensation
 
 
2.5 
 
 
 
 
 
Other
 
 
0.1 
0.1 
 
(0.3)
(0.1)
 
Balance at Sep. 30, 2011
1,596.6 
0.9 
685.6 
1,032.7 
(122.6)
(0.1)
0.1 
 
Comprehensive income (loss):
 
 
 
 
 
 
 
 
Net income
231.9 
 
 
230.8 
 
 
1.1 
231.9 
Losses reclassified into earnings from other comprehensive income, net of tax of $0.8, $6.0, and $14.9 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
1.4 
 
 
1.4 
Employee pension and postretirement benefits, net of tax of $17.9, $19.8, and $3.2 for September 30, 2012, 2011, and 2010, respectively
 
 
 
 
31.1 
 
 
31.1 
Currency translation adjustments, net
 
 
 
 
(11.3)
 
 
(11.3)
Total comprehensive income
 
 
 
 
 
 
 
253.1 
Repurchase of common stock
(13.3)
 
 
 
 
(13.3)
 
 
Exercise of stock options
 
 
2.0 
 
 
1.6 
 
 
Stock-based compensation and award of nonvested shares
 
 
18.5 
 
 
 
 
 
Tax benefit related to stock-based compensation
 
 
(2.7)
 
 
 
 
 
Other
 
 
0.1 
0 
 
(1.2)
(1.2)
 
Balance at Sep. 30, 2012
$ 1,853.5 
$ 0.9 
$ 703.5 
$ 1,263.5 
$ (101.4)
$ (13.0)
$ 0 
 
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Statement of Stockholders' Equity [Abstract]
 
 
 
Change in fair value of derivative instruments, tax
$ 0 
$ 0.7 
$ 1.2 
Losses reclassified into earnings from other comprehensive income, tax
0.8 
6.0 
14.9 
Employee pension and postretirement benefits, tax
$ 17.9 
$ 19.8 
$ 3.2 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Operating activities:
 
 
 
Net income
$ 231.9 
$ 273.4 
$ 790.0 
Intangible asset impairment charges
0 
4.8 
25.6 
Loss on sale of discontinued operations
4.4 
0 
2.9 
Depreciation and amortization
130.9 1
144.4 1
172.9 1
Stock-based compensation expense
18.5 
15.5 
14.7 
Deferred income taxes
(60.2)
10.0 
(70.7)
Equity in (earnings) losses of unconsolidated affiliates
(3.6)
(0.8)
5.1 
Dividends from equity method investments
6.5 
0 
0 
Gain on sale of assets
(0.2)
(3.8)
(1.1)
Foreign currency transaction (gains) losses
(1.2)
6.9 
10.9 
Changes in operating assets and liabilities:
 
 
 
Receivables, net
63.2 
(210.0)
(339.6)
Inventories, net
(161.9)
58.8 
(82.7)
Other current assets
(2.4)
(6.1)
101.0 
Accounts payable
(72.2)
54.2 
169.4 
Customer advances
44.2 
95.4 
(356.4)
Payroll-related obligations
20.1 
(16.6)
55.7 
Income taxes
(72.0)
(8.4)
20.8 
Deferred revenue
74.6 
(38.7)
55.2 
Other current liabilities
9.0 
(27.2)
69.1 
Other long-term assets and liabilities
38.7 
35.9 
(23.1)
(Decrease) increase in operating assets and liabilities
(58.7)
(62.7)
(330.6)
Net cash provided by operating activities
268.3 
387.7 
619.7 
Investing activities:
 
 
 
Additions to property, plant and equipment
(55.9)
(82.3)
(83.2)
Additions to equipment held for rental
(8.4)
(3.9)
(6.3)
Proceeds from sale of property, plant and equipment
7.6 
1.5 
0.8 
Proceeds from sale of equipment held for rental
3.7 
20.2 
10.3 
Proceeds from sale of equity method investments
8.7 
0 
0 
Other investing activities
2.5 
(3.8)
(5.5)
Net cash used by investing activities
(41.8)
(68.3)
(83.9)
Financing activities:
 
 
 
Repayment of long-term debt
(105.1)
(91.4)
(2,020.9)
Proceeds from issuance of long-term debt
0 
0 
1,150.0 
Proceeds (repayments) under revolving credit facility
0 
(150.0)
150.0 
Repurchases of common stock
(13.3)
0 
0 
Debt issuance/amendment costs
(3.1)
(0.1)
(26.3)
Proceeds from exercise of stock options
3.6 
8.0 
19.0 
Other financing activities
0.6 
2.0 
5.7 
Net cash used by financing activities
(117.3)
(231.5)
(722.5)
Effect of exchange rate changes on cash
3.0 
1.6 
(4.7)
Increase (decrease) in cash and cash equivalents
112.2 
89.5 
(191.4)
Cash and cash equivalents at beginning of year
428.5 
339.0 
530.4 
Cash and cash equivalents at end of year
540.7 
428.5 
339.0 
Supplemental disclosures:
 
 
 
Cash paid for interest
69.9 
86.1 
180.7 
Cash paid for income taxes
$ 179.1 
$ 128.2 
$ 457.1 
Nature of Operations
Nature of Operations
Nature of Operations

Oshkosh Corporation and its subsidiaries (the “Company”), are leading manufacturers of a wide variety of specialty vehicles and vehicle bodies for the Americas and global markets. “Oshkosh” refers to Oshkosh Corporation, not including its subsidiaries. The Company sells its products into four principal vehicle markets — access equipment, defense, fire & emergency and commercial. The access equipment business is conducted through its wholly-owned subsidiary, JLG Industries, Inc. and its wholly-owned subsidiaries (“JLG”) and JerrDan Corporation (“JerrDan”). JLG holds, along with an unaffiliated third-party, a 50% interest in a joint venture in The Netherlands, RiRent Europe, B.V. (“RiRent”). The defense business is conducted through the operations of Oshkosh. The Company’s fire & emergency business is principally conducted through its wholly-owned subsidiaries Pierce Manufacturing Inc. (“Pierce”), the airport products division of Oshkosh and Kewaunee Fabrications, LLC (“Kewaunee”). The Company’s commercial business is principally conducted through its wholly-owned subsidiaries, McNeilus Companies, Inc. (“McNeilus”), Concrete Equipment Company, Inc. and its wholly-owned subsidiary (“CON-E-CO”), London Machinery Inc. and its wholly-owned subsidiary (“London”), Iowa Mold Tooling Co., Inc. (“IMT”) and the commercial division of Oshkosh. McNeilus owns a 49% interest in Mezcladores Trailers de Mexico, S.A. de C.V. (“Mezcladores”), which manufactures and markets concrete mixers, concrete batch plants and refuse collection vehicles in Mexico. McNeilus also owns a 45% interest in McNeilus Equipamentos Do Brasil LTDA (“McNeilus Brazil”), which manufactures and distributes McNeilus branded concrete mixers and batch plants in the Mercosur region (Argentina, Brazil, Paraguay and Uruguay).
 
In April 2012, the Company discontinued production of mobile medical trailers in the United States, which were sold under the Oshkosh Specialty Vehicles brand name. In August 2012, the Company sold its interest in Oshkosh Specialty Vehicles (UK), Limited and AK Specialty Vehicles B.V. and its wholly-owned subsidiary (together "SMIT"), for nominal cash consideration. SMIT, a European mobile medical trailer manufacturer, was previously included in the Company's fire & emergency segment. In October 2009, the Company sold its 75% ownership interest in BAI Brescia Antincendi International S.r.l. (“BAI”) to the BAI management team. BAI, a European fire apparatus manufacturer, was previously included in the Company’s fire & emergency segment. The historical operating results of these businesses have been reclassified and are presented in “Income (loss) from discontinued operations, net of tax” in the Consolidated Statements of Income for all periods. See Note 3 of the Notes to Consolidated Financial Statements for further information regarding the sales of mobile medical trailers and BAI.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

Principles of Consolidation and Presentation — The consolidated financial statements include the accounts of Oshkosh and all of its majority-owned or controlled subsidiaries and are prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. The Company accounts for its 50% voting interest in RiRent, its 49% interest in Mezcladores and its 45% interest in McNeilus Brazil under the equity method.
 
Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
 
Revenue Recognition — The Company recognizes revenue on equipment and parts sales when contract terms are met, collectability is reasonably assured and a product is shipped or risk of ownership has been transferred to and accepted by the customer. Revenue from service agreements is recognized as earned when services have been rendered. Appropriate provisions are made for discounts, returns and sales allowances. Sales are recorded net of amounts invoiced for taxes imposed on the customer such as excise or value-added taxes.
 
Sales to the U.S. government of non-commercial whole goods manufactured to the government’s specifications are recognized using the units-of-delivery measure under the percentage-of-completion accounting method as units are accepted by the government. The Company invoices the government as the units are formally accepted. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. Due to a shortage in tires at one of the Company's suppliers, the defense segment was unable to complete production of certain vehicles sufficiently to recognize revenue at September 30, 2012 and has deferred revenue on these vehicles. Revenue will be recognized once tires are obtained and added to the defense vehicles such that the earnings process is complete.

The Company includes amounts representing contract change orders, claims or other items in sales only when they can be reliably estimated and realization is probable. The Company charges anticipated losses on contracts or programs in progress to earnings when identified. Bid and proposal costs are expensed as incurred.

Shipping and Handling Fees and Costs — Revenue received from shipping and handling fees is reflected in net sales. Shipping and handling fee revenue was not significant for all periods presented. Shipping and handling costs are included in cost of sales.
 
Warranty — Provisions for estimated warranty and other related costs are recorded in cost of sales at the time of sale and are periodically adjusted to reflect actual experience. The amount of warranty liability accrued reflects management’s best estimate of the expected future cost of honoring Company obligations under the warranty plans. Historically, the cost of fulfilling the Company’s warranty obligations has principally involved replacement parts, labor and sometimes travel for any field retrofit campaigns. The Company’s estimates are based on historical experience, the extent of pre-production testing, the number of units involved and the extent of features/components included in product models. Also, each quarter, the Company reviews actual warranty claims experience to determine if there are systemic defects that would require a field campaign.
 
Research and Development and Similar Costs — Except for customer sponsored research and development costs incurred pursuant to contracts, research and development costs are expensed as incurred and included in cost of sales. Research and development costs charged to expense amounted to $109.1 million, $99.9 million and $92.4 million during fiscal 2012, 2011 and 2010, respectively. Customer sponsored research and development costs incurred pursuant to contracts are accounted for as contract costs.
 
Advertising — Advertising costs are included in selling, general and administrative expense and are expensed as incurred. These expenses totaled $13.1 million, $15.5 million and $15.4 million in fiscal 2012, 2011 and 2010, respectively.
 
Environmental Remediation Costs — The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. The liabilities are developed based on currently available information and reflect the participation of other potentially responsible parties, depending on the parties’ financial condition and probable contribution. The accruals are recorded at undiscounted amounts and are reflected as liabilities on the accompanying consolidated balance sheets. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. The accruals are adjusted as further information develops or circumstances change.
 
Stock-Based Compensation — The Company recognizes stock-based compensation using the fair value provisions prescribed by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation — Stock Compensation. Accordingly, compensation costs for stock options, restricted stock and performance shares are calculated based on the fair value of the stock-based instrument at the time of grant and are recognized as expense over the vesting period of the stock-based instrument. See Note 17 of the Notes to Consolidated Financial Statements for information regarding the Company’s stock-based incentive plans.
 
Income Taxes — Deferred income taxes are provided to recognize temporary differences between the financial reporting basis and the income tax basis of the Company’s assets and liabilities using currently enacted tax rates and laws. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.
 
The Company evaluates uncertain income tax positions in a two-step process. The first step is recognition, where the Company evaluates whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, zero tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from the Company’s estimates. In future periods, changes in facts and circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in results of operations and financial position in the period in which such changes occur.

Approximately 8% of the Company’s cash and cash equivalents at September 30, 2012 was located outside the United States. Income taxes are provided on financial statement earnings of non-U.S. subsidiaries expected to be repatriated. The Company determines annually the amount of undistributed non-U.S. earnings to invest indefinitely in its non-U.S. operations. As a result of anticipated cash requirements in foreign subsidiaries, the Company currently believes that all earnings of non-U.S. subsidiaries will be reinvested indefinitely to finance foreign activities. Accordingly, no deferred income taxes have been provided for the repatriation of those earnings. 

Fair Value of Financial Instruments — Based on Company estimates, the carrying amounts of cash equivalents, receivables, accounts payable and accrued liabilities approximated fair value as of September 30, 2012 and 2011.
 
Cash and Cash Equivalents — The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents at September 30, 2012 consisted principally of bank deposits and money market instruments.
 
Receivables — Receivables consist of amounts billed and currently due from customers and unbilled costs and accrued profits related to revenues on long-term contracts with the U.S. government that have been recognized for accounting purposes but not yet billed to customers. The Company extends credit to customers in the normal course of business and maintains an allowance for estimated losses resulting from the inability or unwillingness of customers to make required payments. The accrual for estimated losses is based on the Company’s historical experience, existing economic conditions and any specific customer collection issues the Company has identified.
 
Concentration of Credit Risk — Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, trade accounts receivable and guarantees of certain customers’ obligations under deferred payment contracts and lease purchase agreements.
 
The Company maintains cash and cash equivalents, and other financial instruments, with various major financial institutions. The Company performs periodic evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any institution.
 
Concentration of credit risk with respect to trade accounts and leases receivable is limited due to the large number of customers and their dispersion across many geographic areas. However, a significant amount of trade and lease receivables are with the U.S. government, with rental companies globally, with companies in the ready-mix concrete industry, with municipalities and with several large waste haulers in the United States. The Company continues to monitor credit risk associated with its trade receivables, especially during this period of continued global economic weakness.
 
Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (“LIFO”) method for 78.6% of the Company’s inventories at September 30, 2012 and 85.4% at September 30, 2011. For the remaining inventories, cost has been determined using the first-in, first-out (“FIFO”) method.
 
Performance-Based Payments — The Company’s contracts with the U.S. Department of Defense (“DoD”) to deliver heavy-payload tactical vehicles (Family of Heavy Tactical Vehicles and Logistic Vehicle System Replacement) and medium-payload tactical vehicles (Family of Medium Tactical Vehicles and Medium Tactical Vehicle Replacement), as well as certain other defense-related contracts, include requirements for “performance-based payments.” The performance-based payment provisions in the contracts require the DoD to pay the Company based on the completion of certain pre-determined events in connection with the production under these contracts. Performance-based payments received are first applied to reduce outstanding receivables for units accepted in accordance with contractual terms, with any remaining amount recorded as an offset to inventory to the extent of related inventory on hand. Amounts received in excess of receivables and inventories are included in liabilities as customer advances.
 
Property, Plant and Equipment — Property, plant and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the respective assets using accelerated and straight-line methods. The estimated useful lives range from 10 to 40 years for buildings and improvements, from 4 to 25 years for machinery and equipment and from 3 to 10 years for capitalized software and related costs. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is immaterial for all periods presented. All capitalized interest has been added to the cost of the underlying assets and is amortized over the useful lives of the assets.
 
Goodwill — Goodwill reflects the cost of an acquisition in excess of the aggregate fair value assigned to identifiable net assets acquired. Goodwill is not amortized; however, it is assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. The Company performs its annual impairment test in the fourth quarter of its fiscal year. The Company evaluates the recoverability of goodwill by estimating the fair value of the businesses to which the goodwill relates. Estimated cash flows and related goodwill are grouped at the reporting unit level. A reporting unit is an operating segment or, under certain circumstances, a component of an operating segment that constitutes a business. When the fair value of the reporting unit is less than the carrying value of the reporting unit, a further analysis is performed to measure and recognize the amount of the impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying amount of a reporting unit’s goodwill over the implied fair value of that goodwill. In fiscal 2011 and 2010, the Company recorded non-cash impairment charges of $4.3 million and $16.8 million, respectively, of which $2.3 million and $16.8 million, respectively, related to discontinued operations. See Note 8 of the Notes to Consolidated Financial Statements for a discussion of these charges.
 
In evaluating the recoverability of goodwill, it is necessary to estimate the fair value of the reporting units. The Company evaluates the recoverability of goodwill utilizing the income approach and the market approach. The Company weighted the income approach more heavily (75%) as the income approach uses long-term estimates that consider the expected operating profit of each reporting unit during periods where residential and non-residential construction and other macroeconomic indicators are nearer historical averages. The Company believes the income approach more accurately considers the expected recovery in the U.S. and European construction markets than the market approach. Under the income approach, the Company determines fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Estimated future cash flows are based on the Company’s internal projection models, industry projections and other assumptions deemed reasonable by management. Rates used to discount estimated cash flows correspond to the Company’s cost of capital, adjusted for risk where appropriate, and are dependent upon interest rates at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. Under the market approach, the Company derives the fair value of its reporting units based on revenue and earnings multiples of comparable publicly-traded companies. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future.
 
Impairment of Long-Lived Assets — Property, plant and equipment and amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Non-amortizable trade names are assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment. In fiscal 2011 and 2010, the Company recorded non-cash impairment charges related to purchased intangible assets of $0.5 million and $8.8 million, respectively, of which $0.5 million and $6.5 million, respectively, related to discontinued operations.
 
Floor Plan Notes Payable — Floor plan notes payable represent liabilities related to the purchase of commercial vehicle chassis upon which the Company mounts its manufactured vehicle bodies. Floor plan notes payable are non-interest bearing for terms ranging up to 120 days and must be repaid upon the sale of the vehicle to a customer. The Company’s practice is to repay all floor plan notes for which the non-interest bearing period has expired without sale of the vehicle to a customer.
 
Customer Advances — Customer advances include amounts received in advance of the completion of fire & emergency and commercial vehicles. Most of these advances bear interest at variable rates approximating the prime rate. Advances also include any performance-based payments received from the DoD in excess of the value of related inventory. Advances from the DoD are non-interest bearing. See the discussion above regarding performance-based payments.
 
Accumulated Other Comprehensive Income (Loss) — Comprehensive income (loss) is a more inclusive financial reporting method that includes disclosure of financial information that historically has not been recognized in the calculation of net income. The Company has chosen to report comprehensive income (loss) and accumulated other comprehensive income (loss), which encompasses net income (loss), cumulative translation adjustments, employee pension and postretirement benefits, and unrealized gains (losses) on derivatives in the Consolidated Statements of Equity.

The components of accumulated other comprehensive income (loss) were as follows (in millions):
 
 
Cumulative
Translation
Adjustments
 
Employee
Pension and
Postretirement
Benefits, Net
of Tax
 
Gains (Losses)
on Derivatives,
Net of Tax
 
Accumulated
Other
Comprehensive
Income (Loss)
Balance at September 30, 2009
$
41.2

 
$
(84.3
)
 
$
(31.6
)
 
$
(74.7
)
Fiscal year change
(26.1
)
 
(12.6
)
 
(5.6
)
 
(44.3
)
Amounts reclassified to income
(0.8
)
 
—

 
26.6

 
25.8

Balance at September 30, 2010
14.3

 
(96.9
)
 
(10.6
)
 
(93.2
)
Fiscal year change
(4.8
)
 
(33.8
)
 
(1.4
)
 
(40.0
)
Amounts reclassified to income
—

 
—

 
10.6

 
10.6

Balance at September 30, 2011
9.5

 
(130.7
)
 
(1.4
)
 
(122.6
)
Fiscal year change
(10.6
)
 
31.1

 
—

 
20.5

Amounts reclassified to income
(0.7
)
 
—

 
1.4

 
0.7

Balance at September 30, 2012
$
(1.8
)
 
$
(99.6
)
 
$
—

 
$
(101.4
)

 
Foreign Currency Translation — All balance sheet accounts have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Income statement amounts have been translated using the average exchange rate during the period in which the transactions occurred. Resulting translation adjustments are included in “Accumulated other comprehensive income (loss).” Foreign currency transaction gains or losses are included in “Miscellaneous, net” in the Consolidated Statements of Income. The Company recorded net foreign currency transaction gains (losses) related to continuing operations of $(5.1) million, $0.3 million and $1.4 million in fiscal 2012, 2011 and 2010, respectively.
 
Derivative Financial Instruments — The Company recognizes all derivative financial instruments, such as foreign exchange contracts, in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Changes in the fair value of derivative financial instruments are either recognized periodically in income or in equity as a component of comprehensive income depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or cash flow hedge. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income along with the portions of the changes in the fair values of the hedged items that relate to the hedged risks. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net of deferred income taxes. Changes in fair value of derivatives not qualifying as hedges are reported in income. Cash flows from derivatives that are accounted for as cash flow or fair value hedges are included in the Consolidated Statements of Cash Flows in the same category as the item being hedged.

Recent Accounting Pronouncements — In June 2011, the FASB amended ASC Topic 220, Comprehensive Income, to require all non-owner changes in shareholders’ equity to be presented in either a single continuous statement of comprehensive income or in two separate but consecutive statements. Under this amendment, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. An entity is required to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. An entity will no longer be permitted to present the components of other comprehensive income as part of the statement of equity. The Company will be required to adopt the new presentation requirements as of October 1, 2012. The adoption of the new presentation will not have a material impact on the Company’s financial condition, results of operations or cash flows.
Discontinued Operations
Discontinued Operations
Discontinued Operations
 
In fiscal 2012, the Company settled an income tax audit, which resulted in the release of previously accrued amounts for uncertain tax positions related to worthless stock and bad debt deductions claimed in fiscal 2009 associated with its discontinued operations. Fiscal 2012 results from discontinued operations include a $6.1 million income tax benefit related to this audit settlement.

In April 2012, the Company discontinued production of mobile medical trailers in the United States, which were sold under the Oshkosh Specialty Vehicles brand name. In August 2012, the Company sold its interest in SMIT for nominal cash consideration. SMIT, a European mobile medical trailer manufacturer, was previously included in the Company's fire & emergency segment.

In October 2009, the Company sold its 75% ownership interest in BAI to BAI’s management team for nominal cash consideration. Following reclassification of $0.8 million of cumulative translation adjustments out of equity, the Company recorded a small after tax loss on the sale, which was recognized in the first quarter of fiscal 2010. BAI, a European fire apparatus manufacturer, was previously included in the Company’s fire & emergency segment.
 
The following amounts have been segregated from continuing operations and reported as discontinued operations in the Consolidated Statements of Income (in millions):
 
 
Fiscal Year Ended
September 30,
 
2012
 
2011
 
2010
Net sales
$
12.4

 
$
17.2

 
$
21.8

Cost of sales
10.4

 
15.8

 
21.8

Gross income
2.0

 
1.4

 
—

Operating expenses:
 
 
 
 
 

Selling, general and administrative
2.9

 
4.2

 
5.9

Amortization of purchased intangibles
0.5

 
1.5

 
1.5

Intangible asset impairment charges
—

 
2.8

 
23.3

Total operating expenses
3.4

 
8.5

 
30.7

Operating loss
(1.4
)
 
(7.1
)
 
(30.7
)
Other expense
—

 
—

 
0.5

Loss before income taxes
(1.4
)
 
(7.1
)
 
(30.2
)
Benefit from income taxes
(6.1
)
 
(1.5
)
 
(7.1
)
Income (loss) from operations, net of tax
4.7

 
(5.6
)
 
(23.1
)
Loss on sale of discontinued operations
(4.4
)
 
—

 
(2.9
)
Income (loss) from discontinued operations, net of tax
$
0.3

 
$
(5.6
)
 
$
(26.0
)
Receivables
Receivables
Receivables
 
Receivables consisted of the following (in millions):

 
September 30,
 
2012
 
2011
U.S. government:
 

 
 

Amounts billed
$
99.2

 
$
318.8

Cost and profits not billed
251.7

 
172.3

 
350.9

 
491.1

Other trade receivables
633.0

 
568.8

Finance receivables
5.2

 
23.6

Notes receivable
24.6

 
33.7

Other receivables
35.6

 
27.4

 
1,049.3

 
1,144.6

Less allowance for doubtful accounts
(18.0
)
 
(29.5
)
 
$
1,031.3

 
$
1,115.1


 
Costs and profits not billed generally result from undefinitized change orders on existing long-term contracts and “not-to-exceed” undefinitized contracts whereby the Company cannot invoice the customer the full price under the contract or contract change order until such contract or change order is definitized and agreed to with the customer following a review of costs under such a contract award even though the contract deliverables may have been met. Definitization of a change order on an existing long-term contract or a sole source contract begins when the U.S. government customer undertakes a detailed review of the Company’s submitted costs and proposed margin related to the contract and concludes with a final change order. The Company recognizes revenue on undefinitized contracts to the extent that it can reasonably and reliably estimate the expected final contract price and when collectability is reasonably assured. At September 30, 2012, the Company had recorded $83.4 million of revenue on contracts which remained undefinitized as of that date. To the extent that contract definitization results in changes to previously estimated or incurred costs or revenues, the Company records those adjustments as a change in estimate. The Company updated its estimated costs under several undefinitized change orders and recorded $7.8 million of revenue related to such updates during fiscal 2012. As all costs associated with these contracts had been previously expensed, the change increased net income by $5.0 million or $0.05 per share, for fiscal 2012. 

Classification of receivables in the Consolidated Balance Sheets consisted of the following (in millions):
 
 
September 30,
 
2012
 
2011
Current receivables
$
1,018.6

 
$
1,089.1

Long-term receivables
12.7

 
26.0

 
$
1,031.3

 
$
1,115.1


 
Finance Receivables: Finance receivables represent sales-type leases resulting from the sale of the Company's products and the purchase of finance receivables from lenders pursuant to customer defaults under program agreements with finance companies. Finance receivables originated by the Company generally include a residual value component. Residual values are determined based on the expectation that the underlying equipment will have a minimum fair market value at the end of the lease term. This residual value accrues to the Company at the end of the lease. The Company uses its experience and knowledge as an original equipment manufacturer and participant in end markets for the related products along with third-party studies to estimate residual values. The Company monitors these values for impairment on a periodic basis and reflects any resulting reductions in value in current earnings. Finance receivables are written down if management determines that the specific borrower does not have the ability to repay the loan amounts due in full.

Finance receivables consisted of the following (in millions):
 
 
September 30,
 
2012
 
2011
Finance receivables
$
6.0

 
$
27.9

Less unearned income
(0.8
)
 
(4.3
)
Net finance receivables
5.2

 
23.6

Less allowance for doubtful accounts
(1.4
)
 
(11.5
)
 
$
3.8

 
$
12.1


 
Contractual maturities of the Company’s finance receivables at September 30, 2012 were as follows: 2013 - $2.7 million; 2014 - $0.3 million; 2015 - $1.3 million; 2016 - $0.8 million; 2017 - $0.4 million; and thereafter - $0.5 million. Historically, obligors have paid off finance receivables prior to their contractual due dates, although actual repayment timing is impacted by a number of factors, including the economic environment at the time. As a result, contractual maturities are not to be regarded as a forecast of future cash flows.
 
Delinquency is the primary indicator of credit quality of finance receivables. The Company maintains a general allowance for finance receivables considered doubtful of future collection based upon historical experience. Additional allowances are established based upon the Company’s perception of the quality of the finance receivables, including the length of time the receivables are past due, past experience of collectability and underlying economic conditions. In circumstances where the Company believes collectability is no longer reasonably assured, a specific allowance is recorded to reduce the net recognized receivable to the amount reasonably expected to be collected. The terms of the finance agreements generally give the Company the ability to take possession of the underlying collateral. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers’ financial obligations is not realized.
 
Notes Receivable: Notes receivable include amounts related to refinancing of trade accounts and finance receivables. As of September 30, 2012, approximately 96% of the notes receivable balance outstanding was due from three parties. The Company routinely evaluates the creditworthiness of its customers and establishes reserves where the Company believes collectability is no longer reasonably assured. Notes receivable are written down if management determines that the specific borrower does not have the ability to repay the loan in full. Certain notes receivable are collateralized by a security interest in the underlying assets and/or other assets owned by the debtor. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers' financial obligations is not realized.

Quality of Finance and Notes Receivable: The Company does not accrue interest income on finance and notes receivables in circumstances where the Company believes collectability is no longer reasonably assured. Any cash payments received on nonaccrual finance and notes receivable are applied first to principal balances. The Company does not resume accrual of interest income until the customer has shown that it is capable of meeting its financial obligations by making timely payments over a sustained period of time. The Company determines past due or delinquency status based upon the due date of the receivable.

Finance and notes receivable aging and accrual status consisted of the following (in millions):
 
 
September 30,
 
Finance Receivables
 
Notes Receivables
 
2012
 
2011
 
2012
 
2011
Aging of receivables that are past due:
 

 
 

 
 

 
 

Greater than 30 days and less than 60 days
$
0.1

 
$
0.5

 
$
—

 
$
—

Greater than 60 days and less than 90 days
—

 
0.1

 
—

 
—

Greater than 90 days
1.3

 
6.5

 
—

 
0.5

 
 
 
 
 
 
 
 
Receivables on nonaccrual status
3.4

 
17.6

 
19.0

 
0.5

Receivables past due 90 days or more and still accruing
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
Receivables subject to general reserves
1.5

 
0.4

 
—

 
8.6

Allowance for doubtful accounts
—

 
—

 
—

 
(0.1
)
Receivables subject to specific reserves
3.7

 
23.2

 
24.6

 
25.1

Allowance for doubtful accounts
(1.4
)
 
(11.5
)
 
(8.0
)
 
(8.8
)


Receivables subject to specific reserves also include loans that the Company has modified in troubled debt restructurings as a concession to customers experiencing financial difficulty. To minimize the economic loss, the Company may modify certain finance and notes receivable. Modifications generally consist of restructured payment terms and time frames in which no payments are required. At September 30, 2012, restructured finance receivables and notes receivables were $4.1 million and $23.1 million, respectively. Losses on troubled debt restructurings were not significant during fiscal 2012 or 2011. The Company restructured a $19.0 million outstanding note receivable in fiscal 2012 through a combination of extended payment terms, commitment by the customer to purchase an agreed upon quantity of equipment over a specified time horizon and a reduced payment obligation if the customer meets the equipment purchase and repayment schedule.

Changes in the Company’s allowance for doubtful accounts were as follows (in millions):

 
Fiscal Year Ended September 30, 2012
 
Finance
Receivables
 
Notes
Receivable
 
Trade and
Other
Receivables
 
Total
Allowance for doubtful accounts at beginning of year
$
11.5

 
$
8.9

 
$
9.1

 
$
29.5

Provision for doubtful accounts, net of recoveries
(3.4
)
 
(0.4
)
 
1.5

 
(2.3
)
Charge-off of accounts
(6.7
)
 
(0.5
)
 
(1.9
)
 
(9.1
)
Disposition of a business
—

 
—

 
(0.1
)
 
(0.1
)
Foreign currency translation
—

 
—

 
—

 
—

Allowance for doubtful accounts at end of year
$
1.4

 
$
8.0

 
$
8.6

 
$
18.0


 
Fiscal Year Ended September 30, 2011
 
Finance
Receivables
 
Notes
Receivable
 
Trade and
Other
Receivables
 
Total
Allowance for doubtful accounts at beginning of year
$
20.9

 
$
9.4

 
$
11.7

 
$
42.0

Provision for doubtful accounts, net of recoveries
(0.5
)
 
1.9

 
0.6

 
2.0

Charge-off of accounts
(8.9
)
 
(2.5
)
 
(3.1
)
 
(14.5
)
Disposition of a business
—

 
—

 
—

 
—

Foreign currency translation
—

 
0.1

 
(0.1
)
 
—

Allowance for doubtful accounts at end of year
$
11.5

 
$
8.9

 
$
9.1

 
$
29.5

Inventories
Inventories
Inventories

Inventories consisted of the following (in millions):

 
 
September 30,
 
 
2012
 
2011
Raw materials
$
558.0

 
$
587.4

Partially finished products
318.3

 
377.7

Finished products
371.0

 
237.8

Inventories at FIFO cost
1,247.3

 
1,202.9

Less:
Progress/performance-based payments on U.S. government contracts
(238.0
)
 
(341.7
)
 
Excess of FIFO cost over LIFO cost
(71.8
)
 
(74.4
)
 
 
$
937.5

 
$
786.8



Title to all inventories related to U.S. government contracts, which provide for progress or performance-based payments, vests with the U.S. government to the extent of unliquidated progress or performance-based payments. Due to a shortage in tires at one of the Company's suppliers, the defense segment was unable to complete production of certain vehicles sufficiently to recognize revenue. These vehicles have been included in finished goods at September 30, 2012 and will be recognized as revenue once tires are obtained and added to the defense vehicle such that the earnings process is complete.

During fiscal 2012, 2011 and 2010, reductions in FIFO inventory levels resulted in liquidations of LIFO inventory layers carried at lower costs prevailing in prior years as compared with the cost of current-year purchases. The effect of the LIFO inventory liquidations on fiscal 2012, 2011 and 2010 results was to decrease costs of goods sold by $0.3 million, $1.8 million and $5.6 million, respectively, and increase after-tax earnings from continuing operations by $0.2 million ($0.00 per share), $1.1 million ($0.01 per share) and $3.4 million ($0.04 per share), respectively.
Investments in Unconsolidated Affiliates
Investments in Unconsolidated Affiliates
Investments in Unconsolidated Affiliates

Investments in unconsolidated affiliates are accounted for under the equity method and consisted of the following (in millions):

 
 
September 30,
 
 
2012
 
2011
OMFSP (U.S.)
 
$
—

 
$
13.4

RiRent (The Netherlands)
 
10.5

 
10.9

Other
 
8.3

 
7.5

 
 
$
18.8

 
$
31.8


Recorded investments generally represent the Company’s maximum exposure to loss as a result of the Company’s ownership interest. Earnings or losses are reflected in “Equity in earnings (losses) of unconsolidated affiliates” in the Consolidated Statements of Income.
 
The Company and an unaffiliated third party were partners in Oshkosh/McNeilus Financial Services Partnership (“OMFSP”), a general partnership formed for the purpose of offering lease financing to certain customers of the Company, of which the Company was a 50% owner. OMFSP historically engaged in providing vendor lease financing to certain customers of the Company. During the third quarter of fiscal 2012, the Company sold its interest in OMFSP for an immaterial pre-tax loss. Cash distributions and proceeds from the sale aggregated $16.5 million of which $6.5 million has been reflected as a return of equity.

The Company and an unaffiliated third party are joint venture partners in RiRent. RiRent maintains a fleet of access equipment for short-term lease to rental companies throughout most of Europe. The re-rental fleet provides rental companies with equipment to support requirements on short notice. RiRent does not provide services directly to end users. The Company’s sales to RiRent were $5.0 million, $6.5 million and $4.2 million in fiscal 2012, 2011 and 2010, respectively. The Company recognizes income on sales to RiRent at the time of shipment in proportion to the outside third-party interest in RiRent and recognizes the remaining income ratably over the estimated useful life of the equipment, which is generally five years. Indebtedness of RiRent is secured by the underlying leases and assets of RiRent. All such RiRent indebtedness is non-recourse to the Company and its partner. Under RiRent’s €15.0 million bank credit facility, the partners of RiRent have committed to maintain an overall equity to asset ratio of at least 30.0% (60.1% as of September 30, 2012).
Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
 
Property, plant and equipment consisted of the following (in millions):
 
 
September 30,
 
2012
 
2011
Land and land improvements
$
45.8

 
$
46.2

Buildings
236.3

 
243.8

Machinery and equipment
550.6

 
521.5

Equipment on operating lease to others
23.8

 
23.0

 
856.5

 
834.5

Less accumulated depreciation
(486.6
)
 
(445.8
)
 
$
369.9

 
$
388.7



Depreciation expense recorded in continuing operations was $65.6 million, $78.2 million and $80.5 million in fiscal 2012, 2011 and 2010, respectively. Included in depreciation expense from continuing operations in fiscal 2012, 2011 and 2010 were charges of $0.9 million, $3.4 million and $5.8 million, respectively, related to the impairment of long-lived assets. To better align the Company’s cost structure with global market conditions, the Company has announced several plant closures during the past three fiscal years. Impairment of long-lived assets associated with the plant closures was determined using fair value based on a discounted cash flow analysis or appraisals.

Capitalized interest was insignificant for all reported periods. Equipment on operating lease to others represents the cost of equipment shipped to customers for whom the Company has guaranteed the residual value and equipment on short-term leases. These transactions are accounted for as operating leases with the related assets capitalized and depreciated over their estimated economic lives of five to ten years. Cost less accumulated depreciation for equipment on operating lease at September 30, 2012 and 2011 was $9.4 million and $6.5 million, respectively.
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
 
During the fourth quarter of fiscal 2012, the Company performed its annual impairment review relative to goodwill and indefinite-lived intangible assets (principally non-amortizable trade names). The Company performed the valuation analysis with the assistance of a third-party valuation adviser. To derive the fair value of its reporting units, the Company utilized both the income and market approaches. For the annual impairment testing in the fourth quarter of fiscal 2012, the Company used a weighted-average cost of capital, depending on the reporting unit, of 13.0% to 15.0% and a terminal growth rate of 3%. Under the market approach, the Company derived the fair value of its reporting units based on revenue and earnings multiples of comparable publicly-traded companies. As a corroborative source of information, the Company reconciles its estimated fair value to within a reasonable range of its market capitalization, which includes an assumed control premium (an adjustment reflecting an estimated fair value on a control basis), to verify the reasonableness of the fair value of its reporting units obtained through the aforementioned methods. The control premium is estimated based upon control premiums observed in comparable market transactions. To derive the fair value of its trade names, the Company utilized the “relief from royalty” approach.
 
At July 1, 2012, approximately 88% of the Company’s recorded goodwill and indefinite-lived purchased intangibles were concentrated within the JLG reporting unit in the access equipment segment. The impairment model assumes that the U.S. economy and construction spending (and hence access equipment demand) will continue its slow improvement. Assumptions utilized in the impairment analysis are highly judgmental, especially given the severity and global scale of the most recent recession and the subjective assumptions regarding a recovery. Changes in estimates or the application of alternative assumptions could have produced significantly different results. While the Company currently believes that an impairment of intangible assets at JLG is unlikely, events and conditions that could result in the impairment of intangibles at JLG include a sharp decline in economic conditions, pricing pressure on JLG's margins or other factors leading to reductions in expected long-term sales or profitability at JLG.

At July 1, 2012, approximately 7% of the Company’s recorded goodwill and indefinite-lived purchased intangibles were concentrated within the Pierce reporting unit in the fire & emergency segment. This reporting unit has been severely impacted by the decrease in municipal revenue during the past two years. The Company believes that municipal demand is stabilizing as its municipal orders increased in fiscal 2012. The Company expects Pierce sales to decline in fiscal 2013 as federal demand is expected to bottom and that Pierce sales will begin a slow recovery starting in fiscal 2014 as municipal demand continues to rebound. The impairment model assumes that the U.S. economy will continue its slow improvement, reversing the recent trend of decreasing municipal tax revenues. Assumptions utilized in the impairment analysis are highly judgmental, especially given the severity and global scale of the most recent recession and the subjective assumptions regarding a recovery. Changes in estimates or the application of alternative assumptions could have produced significantly different results. While the Company currently believes that an impairment of intangible assets at Pierce is unlikely, events and conditions that could result in the impairment of intangibles at Pierce include a further decline in economic conditions or other factors leading to reductions in expected long-term sales or profitability at Pierce.

Based on the Company’s annual impairment review, the Company concluded that the risk that goodwill or indefinite-lived intangible assets would require an impairment charge was unlikely. Assumptions utilized in the impairment analysis are highly judgmental, especially given the current period of economic uncertainty. Changes in estimates or the application of alternative assumptions could have produced significantly different results.

The following table presents changes in goodwill during fiscal 2012 and 2011 (in millions):

 
Access
Equipment
 
Fire &
Emergency
 
Commercial
 
Total
Net goodwill at September 30, 2010
$
916.0

 
$
112.2

 
$
21.4

 
$
1,049.6

Impairment
—

 
(4.3
)
 
—

 
(4.3
)
Foreign currency translation
(3.8
)
 
0.1

 
—

 
(3.7
)
Other
—

 
(0.1
)
 
—

 
(0.1
)
Net goodwill at September 30, 2011
912.2

 
107.9

 
21.4

 
1,041.5

Foreign currency translation
(6.1
)
 
—

 
0.2

 
(5.9
)
Deconsolidation of variable interest entity
—

 
(1.8
)
 
—

 
(1.8
)
Net goodwill at September 30, 2012
$
906.1

 
$
106.1

 
$
21.6

 
$
1,033.8



The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions):

 
September 30, 2012
 
September 30, 2011
 
Gross
 
Accumulated
Impairment
 
Net
 
Gross
 
Accumulated
Impairment
 
Net
Access Equipment
$
1,838.2

 
$
(932.1
)
 
$
906.1

 
$
1,844.3

 
$
(932.1
)
 
$
912.2

Fire & Emergency
114.3

 
(8.2
)
 
106.1

 
182.1

 
(74.2
)
 
107.9

Commercial
197.5

 
(175.9
)
 
21.6

 
197.3

 
(175.9
)
 
21.4

 
$
2,150.0

 
$
(1,116.2
)
 
$
1,033.8

 
$
2,223.7

 
$
(1,182.2
)
 
$
1,041.5



The following two tables present the changes in gross purchased intangible assets during fiscal 2012 and 2011 (in millions):

 
September 30,
2011
 
Disposition
 
Impairment
 
Translation
 
Other
 
September 30,
2012
Amortizable intangible assets:
 

 
 

 
 

 
 

 
 

 
 

Distribution network
$
55.4

 
$
—

 
$
—

 
$
—

 
$
—

 
$
55.4

Non-compete
56.9

 
—

 
—

 
—

 
—

 
56.9

Technology-related
104.8

 
(3.8
)
 
—

 
(0.1
)
 
—

 
100.9

Customer relationships
576.7

 
(8.9
)
 
—

 
(3.4
)
 
(0.6
)
 
563.8

Other
16.5

 
—

 
—

 
0.1

 
—

 
16.6

 
810.3

 
(12.7
)
 
—

 
(3.4
)
 
(0.6
)
 
793.6

Non-amortizable trade names
397.6

 
(1.3
)
 
—

 
(0.1
)
 
—

 
396.2

 
$
1,207.9

 
$
(14.0
)
 
$
—

 
$
(3.5
)
 
$
(0.6
)
 
$
1,189.8


 
September 30,
2010
 
Disposition
 
Impairment
 
Translation
 
Other
 
September 30,
2011
Amortizable intangible assets:
 

 
 

 
 

 
 

 
 

 
 

Distribution network
$
55.4

 
$
—

 
$
—

 
$
—

 
$
—

 
$
55.4

Non-compete
56.3

 
—

 
—

 
—

 
0.6

 
56.9

Technology-related
104.0

 
—

 
—

 
—

 
0.8

 
104.8

Customer relationships
577.2

 
—

 
—

 
(1.9
)
 
1.4

 
576.7

Other
15.7

 
—

 
—

 
0.1

 
0.7

 
16.5

 
808.6

 
—

 
—

 
(1.8
)
 
3.5

 
810.3

Non-amortizable trade names
397.3

 
—

 
(0.5
)
 
—

 
0.8

 
397.6

 
$
1,205.9

 
$
—

 
$
(0.5
)
 
$
(1.8
)
 
$
4.3

 
$
1,207.9



Details of the Company’s total purchased intangible assets were as follows (in millions):

 
September 30, 2012
 
Weighted-
Average
Life
 
Gross
 
Accumulated
Amortization
 
Net
Amortizable intangible assets:
 
 
 

 
 

 
 

Distribution network
39.1
 
$
55.4

 
$
(22.2
)
 
$
33.2

Non-compete
10.5
 
56.9

 
(55.5
)
 
1.4

Technology-related
12.0
 
100.9

 
(58.4
)
 
42.5

Customer relationships
12.7
 
563.8

 
(265.5
)
 
298.3

Other
16.5
 
16.6

 
(12.8
)
 
3.8

 
14.4
 
793.6

 
(414.4
)
 
379.2

Non-amortizable trade names
 
 
396.2

 
—

 
396.2

 
 
 
$
1,189.8

 
$
(414.4
)
 
$
775.4

 
September 30, 2011
 
Weighted-
Average
Life
 
Gross
 
Accumulated
Amortization
 
Net
Amortizable intangible assets:
 
 
 

 
 

 
 

Distribution network
39.1
 
$
55.4

 
$
(20.8
)
 
$
34.6

Non-compete
10.5
 
56.9

 
(53.0
)
 
3.9

Technology-related
11.7
 
104.8

 
(53.3
)
 
51.5

Customer relationships
12.7
 
576.7

 
(229.9
)
 
346.8

Other
16.5
 
16.5

 
(12.2
)
 
4.3

 
14.3
 
810.3

 
(369.2
)
 
441.1

Non-amortizable trade names
 
 
397.6

 
—

 
397.6

 
 
 
$
1,207.9

 
$
(369.2
)
 
$
838.7



When determining the value of customer relationships for purposes of allocating the purchase price of an acquisition, the Company looks at existing customer contracts of the acquired business to determine if they represent a reliable future source of income and hence, a valuable intangible asset for the Company. The Company determines the fair value of the customer relationships based on the estimated future benefits the Company expects from the acquired customer contracts. In performing its evaluation and estimation of the useful lives of customer relationships, the Company looks to the historical growth rate of revenue of the acquired company’s existing customers as well as the historical attrition rates.
 
In connection with the valuation of intangible assets, a 40-year life was assigned to the value of the Pierce distribution network (net book value of $31.8 million at September 30, 2012). The Company believes Pierce maintains the largest North American fire apparatus distribution network. Pierce has exclusive contracts with each distributor related to the fire apparatus product offerings manufactured by Pierce. The useful life of the Pierce distribution network was based on a historical turnover analysis. Non-compete intangible asset lives are based on the terms of the applicable agreements.
 
Total amortization expense recorded in continuing operations was $57.7 million, $59.3 million and $59.0 million in fiscal 2012, 2011 and 2010, respectively. The estimated future amortization expense of purchased intangible assets for the five years succeeding September 30, 2012 are as follows: 2013 - $55.9 million; 2014 - $54.7 million; 2015 - $53.9 million; 2016 - $53.3 million and 2017 - $45.4 million.
Other Long-Term Assets
Other Long-Term Assets
Other Long-Term Assets

Other long-term assets consisted of the following (in millions):

 
September 30,
 
2012
 
2011
Customer notes receivable
$
18.8

 
$
24.1

Deferred finance costs
17.8

 
21.8

Long-term finance receivables, less current portion
1.4

 
9.4

Other
24.8

 
23.9

 
62.8

 
79.2

Less allowance for doubtful notes receivable
(7.4
)
 
(7.6
)
 
$
55.4

 
$
71.6



Deferred finance costs are amortized using the interest method over the term of the debt. Amortization expense was $7.0 million (including $2.3 million of amortization related to early debt retirement), $5.1 million (including $0.1 million of amortization related to early debt retirement) and $28.6 million (including $20.4 million of amortization related to early debt retirement) in fiscal 2012, 2011 and 2010, respectively.
Leases
Leases
Leases

Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets included in net property, plant and equipment were immaterial at September 30, 2012 and 2011.

Other facilities and equipment are leased under arrangements that are accounted for as noncancelable operating leases. Total rental expense for property, plant and equipment charged to continuing operations under noncancelable operating leases was $44.5 million, $41.8 million and $40.0 million in fiscal 2012, 2011 and 2010, respectively.

Future minimum lease payments due under operating leases at September 30, 2012 were as follows: 2013 - $22.4 million; 2014 - $14.0 million; 2015 - $10.8 million; 2016 - $9.7 million; 2017 - $5.2 million; and thereafter - $5.6 million. Minimum rental payments include $0.4 million due under variable-rate leases through January 2013.
Credit Agreements
Credit Agreements
Credit Agreements

The Company was obligated under the following debt instruments (in millions):

 
September 30,
 
2012
 
2011
Senior Secured Term Loan
$
455.0

 
$
560.0

8¼% Senior notes due March 2017
250.0

 
250.0

8½% Senior notes due March 2020
250.0

 
250.0

Other long-term facilities
—

 
0.1

 
955.0

 
1,060.1

Less current maturities
—

 
(40.1
)
 
$
955.0

 
$
1,020.0

 
 
 
 
Revolving Credit Facility
$
—

 
$
—

Current maturities of long-term debt
—

 
40.1

 
$
—

 
$
40.1



The Company maintains a senior secured credit agreement with various lenders and on July 13, 2012, the Company entered into Amendment No. 1 to the senior secured credit agreement (as amended, the “Credit Agreement”). The Credit Agreement provides for (i) a revolving credit facility (“Revolving Credit Facility”) that matures in October 2015 with an initial maximum aggregate amount of availability of $525 million and (ii) a $455 million term loan (“Term Loan”) facility due in quarterly principal installments of $16.25 million commencing December 31, 2013 with a balloon payment of $341.25 million due at maturity in October 2015. At September 30, 2012, outstanding letters of credit of $179.8 million reduced available capacity under the Revolving Credit Facility to $345.2 million.

The Company’s obligations under the Credit Agreement are guaranteed by certain of its domestic subsidiaries, and the Company will guarantee the obligations of certain of its subsidiaries under the Credit Agreement to the extent such subsidiaries borrow directly under the Credit Agreement. Subject to certain exceptions, the Credit Agreement is secured by (i) a first-priority perfected lien and security interests in substantially all of the personal property of the Company, each material subsidiary of the Company and each subsidiary guarantor, (ii) mortgages upon certain real property of the Company and certain of its domestic subsidiaries and (iii) a pledge of the equity of each material subsidiary and each subsidiary guarantor.

Under the Credit Agreement, the Company must pay (i) an unused commitment fee ranging from 0.25% to 0.50% per annum of the average daily unused portion of the aggregate revolving credit commitments under the Credit Agreement and (ii) a fee ranging from 0.75% to 1.25% per annum of the maximum amount available to be drawn for each performance letter of credit issued and outstanding under the Credit Agreement.

Borrowings under the Credit Agreement bear interest at a variable rate equal to (i) LIBOR plus a specified margin, which may be adjusted upward or downward depending on whether certain criteria are satisfied, or (ii) for dollar-denominated loans only, the base rate (which is the highest of (a) the administrative agent’s prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin, which may be adjusted upward or downward depending on whether certain criteria are satisfied. At September 30, 2012, the interest spread on the Revolving Credit Facility and Term Loan was 175 basis points. The weighted-average interest rate on borrowings outstanding under the Term Loan at September 30, 2012 was 1.97%.

The Credit Agreement contains various restrictions and covenants, including requirements that the Company maintain certain financial ratios at prescribed levels and restrictions on the ability of the Company and certain of its subsidiaries to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, consummate acquisitions and make investments in joint ventures and foreign subsidiaries. The Credit Agreement contains the following financial covenants:
•
Leverage Ratio: A maximum leverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated indebtedness to consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and certain other items (“EBITDA”)) as of the last day of any fiscal quarter of 4.50 to 1.0.
•
Interest Coverage Ratio: A minimum interest coverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated EBITDA to the Company’s consolidated cash interest expense) as of the last day of any fiscal quarter of 2.50 to 1.0.
•
Senior Secured Leverage Ratio: A maximum senior secured leverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated secured indebtedness to the Company’s consolidated EBITDA) of the following:
Fiscal Quarter Ending
 
September 30, 2012
3.00 to 1.0
Thereafter
2.75 to 1.0


The Company was in compliance with the financial covenants contained in the Credit Agreement as of September 30, 2012 and expects to be able to meet the financial covenants contained in the Credit Agreement over the next twelve months.
 
Additionally, with certain exceptions, the Credit Agreement limits the ability of the Company to pay dividends and other distributions. However, so long as no event of default exists under the Credit Agreement or would result from such payment, the Company may pay dividends and other distributions in an aggregate amount not exceeding the sum of:
i.
$485 million; plus
ii.
50% of the consolidated net income of the Company and its subsidiaries (or if such consolidated net income is a deficit, minus 100% of such deficit), accrued on a cumulative basis during the period beginning on April 1, 2012 and ending on the last day of the fiscal quarter immediately preceding the date of the applicable proposed dividend or distribution; plus
iii.
100% of the aggregate net proceeds received by the Company subsequent to March 31, 2012 either as a contribution to its common equity capital or from the issuance and sale of its Common Stock.

In March 2010, the Company issued $250.0 million of 8¼% unsecured senior notes due March 1, 2017 and $250.0 million of 8½% unsecured senior notes due March 1, 2020 (collectively, the “Senior Notes”). The Senior Notes were issued pursuant to an indenture (the “Indenture”) among the Company, the subsidiary guarantors named therein and a trustee. The Indenture contains customary affirmative and negative covenants. The Company has the option to redeem the Senior Notes due 2017 and Senior Notes due 2020 for a premium after March 1, 2014 and March 1, 2015, respectively. Certain of the Company’s subsidiaries fully, unconditionally, jointly and severally guarantee the Company’s obligations under the Senior Notes. See Note 24 of the Notes to Consolidated Financial Statements for separate financial information of the subsidiary guarantors.

The fair value of the long-term debt is estimated based upon the market rate of the Company’s debt. At September 30, 2012, the fair value of the Senior Notes was estimated to be $550 million and the fair value of the Term Loan approximated book value.
Warranties
Warranties
Warranties
 
The Company’s products generally carry explicit warranties that extend from six months to five years, based on terms that are generally accepted in the marketplace. Selected components (such as engines, transmissions, tires, etc.) included in the Company’s end products may include manufacturers’ warranties. These manufacturers’ warranties are generally passed on to the end customer of the Company’s products, and the customer would generally deal directly with the component manufacturer. Warranty costs recorded in continuing operations were $72.5 million, $30.2 million and $87.8 million in fiscal 2012, 2011 and 2010, respectively.
 
Changes in the Company’s warranty liability were as follows (in millions):
 
 
Fiscal Year Ended
September 30,
 
2012
 
2011
Balance at beginning of year
$
75.0

 
$
90.5

Warranty provisions
58.8

 
42.6

Settlements made
(52.8
)
 
(46.8
)
Changes in liability for pre-existing warranties, net
13.7

 
(11.5
)
Disposition of business
(0.1
)
 
—

Foreign currency translation
0.4

 
0.2

Balance at end of year
$
95.0

 
$
75.0


 
Provisions for estimated warranty and other related costs are recorded at the time of sale and are periodically adjusted to reflect actual experience. Changes in the liability for pre-existing warranties during fiscal 2012 primarily related to increased warranty costs in the fire & emergency segment. Actual Mine Resistant Ambush Protected All-Terrain Vehicle (“M-ATV”) warranty claims have been lower than the Company expected on the M-ATV product launch, which resulted in reductions in liabilities for pre-existing warranties in fiscal 2011. Certain warranty and other related claims involve matters of dispute that ultimately are resolved by negotiation, arbitration or litigation. At times, warranty issues arise that are beyond the scope of the Company's historical experience. For example, accelerated programs to design, test, manufacture and deploy products such as the M-ATV, in war-time conditions, carry with them an increased level of inherent risk of product or component failure. It is reasonably possible that additional warranty and other related claims could arise from disputes or other matters in excess of amounts accrued; however, the Company does not expect that any such amounts, while not determinable, would have a material adverse effect on the Company's consolidated financial condition, result of operations or cash flows.
Guarantee Arrangements
Guarantee Arrangements
Guarantee Arrangements

The Company is party to multiple agreements whereby it guarantees an aggregate of $363.8 million in indebtedness of others, including $132.2 million under loss pool agreements. The Company estimated that its maximum loss exposure under these contracts at September 30, 2012 was $94.6 million. Under the terms of these and various related agreements and upon the occurrence of certain events, the Company generally has the ability to, among other things, take possession of the underlying collateral. If the financial condition of the customers were to deteriorate and result in their inability to make payments, then additional accruals may be required. While the Company does not expect to experience losses under these agreements that are materially in excess of the amounts reserved, it cannot provide any assurance that the financial condition of the third parties will not deteriorate resulting in the third parties' inability to meet their obligations. In the event that this occurs, the Company cannot guarantee that the collateral underlying the agreements will be sufficient to avoid losses materially in excess of the amounts reserved. Any losses under these guarantees would generally be mitigated by the value of any underlying collateral, including financed equipment, and are generally subject to the finance company's ability to provide the Company clear title to foreclosed equipment and other conditions. During periods of economic weakness, collateral values generally decline and can contribute to higher exposure to losses.

Changes in the Company’s credit guarantee liability were as follows (in millions):

 
Fiscal Year Ended
September 30,
 
2012
 
2011
Balance at beginning of year
$
6.5

 
$
23.1

Provision for new credit guarantees
1.9

 
0.5

Settlements made
(0.9
)
 
(3.0
)
Changes for pre-existing guarantees, net
(1.4
)
 
(12.7
)
Amortization of previous guarantees
(1.0
)
 
(1.3
)
Foreign currency translation
(0.1
)
 
(0.1
)
Balance at end of year
$
5.0

 
$
6.5



In the first quarter of fiscal 2011, the Company reached a settlement with a customer that resulted in the customer’s repayment of $28.3 million of loans supported by Company guarantees for which the Company had established specific credit loss reserves. Upon release of the guarantees, the Company reduced previously accrued reserves and increased pre-tax income by $8.1 million.
Derivative Financial Instruments and Hedging Activities
Derivative Financial Instruments and Hedging Activities
Derivative Financial Instruments and Hedging Activities

The Company has used forward foreign currency exchange contracts (“derivatives”) to reduce the exchange rate risk of specific foreign currency denominated transactions. These derivatives typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date. At times, the Company has designated these hedges as either cash flow hedges or fair value hedges under FASB ASC Topic 815, Derivatives and Hedging, as follows:

Fair Value Hedging Strategy — The Company enters into forward foreign exchange contracts to hedge certain firm commitments denominated in foreign currencies, primarily the Euro. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual U.S. dollar-equivalent cash flows from the sale of products to international customers will be adversely affected by changes in the exchange rates.
 
Cash Flow Hedging Strategy — To protect against an increase in the cost of forecasted purchases of foreign-sourced component parts payable in Euro, the Company has a foreign currency cash flow hedging program. The Company hedges portions of its forecasted purchases denominated in Euro with forward contracts. When the U.S. dollar weakens against the Euro, increased foreign currency payments are offset by gains in the value of the forward contracts. Conversely, when the U.S. dollar strengthens against the Euro, reduced foreign currency payments are offset by losses in the value of the forward contracts.
 
At September 30, 2012 and 2011, the Company had no forward foreign exchange contracts designated as hedges.

To manage a portion of the Company's exposure to changes in LIBOR-based interest rates on its variable-rate debt, the Company entered into an amortizing interest rate swap agreement that effectively fixed the interest payments on a portion of the Company's variable-rate debt. The swap, which had a termination date of December 6, 2011, was designated as a cash flow hedge of 3-month LIBOR-based interest payments and, accordingly, derivative gains or losses were reflected as a component of accumulated other comprehensive income (loss) and were amortized to interest expense over the respective lives of the borrowings. During fiscal 2012, 2011 and 2010, $2.2 million, $16.6 million and $41.6 million of expense, respectively, was recorded in the Consolidated Statements of Income as amortization of interest rate derivative gains and losses.
  
The Company has entered into forward foreign currency exchange contracts to create an economic hedge to manage foreign exchange risk exposure associated with non-functional currency denominated payables resulting from global sourcing activities. The Company has not designated these derivative contracts as hedge transactions under FASB ASC Topic 815, and accordingly, the mark-to-market impact of these derivatives is recorded each period in current earnings. The fair value of foreign currency related derivatives is included in the Consolidated Balance Sheets in “Other current assets” and “Other current liabilities.” At September 30, 2012, the U.S. dollar equivalent of these outstanding forward foreign exchange contracts totaled $142.7 million in notional amounts, including $76.2 million in contracts to sell Euro, $54.3 million in contracts to sell Australian dollars, $2.7 million in contracts to sell U.K. pounds sterling and buy Euro with the remaining contracts covering a variety of foreign currencies.

Fair Market Value of Financial Instruments — The fair values of all open derivative instruments in the Consolidated Balance Sheets were as follows (in millions):
 
 
September 30, 2012
 
September 30, 2011
 
Other
Current
Assets
 
Other
Current
Liabilities
 
Other
Current
Assets
 
Other
Current
Liabilities
Designated as hedging instruments:
 
 
 
 
 

 
 

Interest rate contracts
$
—

 
$
—

 
$
—

 
$
2.1

 
 
 
 
 
 
 
 
Not designated as hedging instruments:
 
 
 
 
 

 
 

Foreign exchange contracts
0.4

 
—

 
0.8

 
0.2

 
$
0.4

 
$
—

 
$
0.8

 
$
2.3



The pre-tax effects of derivative instruments on the Consolidated Statements of Income consisted of the following (in millions):

 
Classification of
Gains (Losses)
 
Fiscal Year Ended
September 30,
 
 
2012
 
2011
Cash flow hedges:
 
 
 

 
 

Reclassified from other comprehensive income (effective portion):
 
 
 

 
 

Interest rate contracts
Interest expense
 
$
(2.2
)
 
$
(16.6
)
 
 
 
 
 
 
Not designated as hedges:
 
 
 

 
 

Foreign exchange contracts
Miscellaneous, net
 
(5.3
)
 
2.0

 
 
 
$
(7.5
)
 
$
(14.6
)
Fair Value Measurement
Fair Value Measurement
Fair Value Measurement

FASB ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows:

Level 1:
Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2:
Observable inputs other than quoted prices in active markets for identical assets or liabilities, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

Level 3:
Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

There were no transfers of assets between levels during fiscal 2012. As of September 30, 2012, the fair values of the Company’s financial assets and liabilities were as follows (in millions):
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 

 
 

 
 

 
 

Foreign currency exchange derivatives (a)
$
—

 
$
0.4

 
$
—

 
$
0.4

_________________________

(a) 
Based on observable market transactions of forward currency prices.

 
Items Measured at Fair Value on a Nonrecurring Basis
 
In addition to items that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets and investments in affiliates, (see Note 7 of the Notes to Consolidated Financial Statements for impairments of long-lived assets and Note 8 of the Notes to Consolidated Financial Statements for impairments of intangible assets). The Company has determined that the fair value measurements related to each of these assets rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets, as observable inputs are not available. As such, the Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy.
Oshkosh Corporation Shareholders' Equity
Oshkosh Corporation Shareholders' Equity
Oshkosh Corporation Shareholders’ Equity

In July 1995, the Company authorized the repurchase of up to 6,000,000 shares of the Company’s Common Stock. In July 2012, the Company's Board of Directors increased the repurchase authorization by 4,000,000 shares of Common Stock. During fiscal 2012, the Company repurchased 546,965 shares under this authorization at a cost of $13.3 million. As of September 30, 2012, the Company had purchased 3,316,175 shares of its Common Stock at an aggregate cost of $19.9 million leaving 6,683,825 shares of Common Stock remaining under this repurchase authorization. See Note 26 of the Notes to Consolidated Financial Statements for information regarding an additional increase in this authorization. The Company is restricted by its Credit Agreement from repurchasing shares in certain situations. See Note 11 of the Notes to Consolidated Financial Statements for information regarding these restrictions.
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
 
In February 2009, the Company’s shareholders approved the 2009 Incentive Stock and Awards Plan. In January 2012, the Company's shareholders approved amendments to the 2009 Incentive Stock and Awards Plan (as amended, the “2009 Stock Plan”) to add 6,000,000 shares to the number of shares available for issuance under the plan. The 2009 Stock Plan replaced the 2004 Incentive Stock and Awards Plan, as amended (the “2004 Stock Plan”) and 1990 Incentive Stock Plan, as amended (the “1990 Stock Plan”). While no new awards will be granted under the 2004 Stock Plan and 1990 Stock Plan, awards previously made under these two plans that remained outstanding as of the initial approval date of the 2009 Stock Plan will remain outstanding and continue to be governed by the provisions of those plans.

Under the 2009 Stock Plan, officers, directors, including non-employee directors, and employees of the Company may be granted stock options, stock appreciation rights (“SAR”), performance shares, performance units, shares of Common Stock, restricted stock, restricted stock units (“RSU”) or other stock-based awards. The 2009 Stock Plan provides for the granting of options to purchase shares of the Company’s Common Stock at not less than the fair market value of such shares on the date of grant. Stock options granted under the 2009 Stock Plan generally become exercisable in equal installments over a three-year period, beginning with the first anniversary of the date of grant of the option, unless a shorter or longer duration is established by the Human Resources Committee of the Board of Directors at the time of the option grant. Stock options terminate not more than seven years from the date of grant. Except for performance shares and performance units, vesting is based solely on continued service as an employee of the Company. At September 30, 2012, the Company had reserved 10,639,774 shares of Common Stock available for issuance under the 2009 Stock Plan to provide for the exercise of outstanding stock options and the issuance of Common Stock under incentive compensation awards, including awards issued prior to the effective date of the 2009 Stock Plan.
 
The Company recognizes compensation expense over the requisite service period for vesting of an award, or to an employee's eligible retirement date, if earlier and applicable. Total stock-based compensation expense included in the Company’s Consolidated Statements of Income for fiscal 2012, 2011 and 2010 was $27.1 million ($17.2 million net of tax), $15.2 million ($9.6 million net of tax) and $14.3 million ($9.0 million net of tax), respectively.

Information related to the Company’s equity-based compensation plans in effect as of September 30, 2012 was as follows:

Plan Category 
 
Number of Securities
to be Issued Upon
Exercise of Outstanding
Options or Vesting of
Performance Share
Awards
 
Weighted-Average
Exercise Price of
Outstanding
Options
 
Number of
Securities Remaining
Available for Future
Issuance Under Equity
Compensation Plans
Equity compensation plans approved by security holders
 
5,364,834

 
$
31.26

 
5,274,940

Equity compensation plans not approved by security holders
 
—

 
n/a

 
—

 
 
5,364,834

 
$
31.26

 
5,274,940


 
Stock Options — For fiscal 2012, 2011 and 2010, the Company recorded $6.3 million, $11.4 million and $12.4 million, respectively, of stock-based compensation expense in selling, general and administrative expense in the accompanying Consolidated Statements of Income associated with outstanding stock options.
 
A summary of the Company’s stock option activity for the fiscal years ended September 30, 2012, 2011 and 2010 was as follows: 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
 
Options
 
Weighted-
Average
Exercise
Price
 
Options
 
Weighted-
Average
Exercise
Price
 
Options
 
Weighted-
Average
Exercise
Price
Options outstanding, beginning of year
4,774,714

 
$
30.72

 
5,158,370

 
$
30.32

 
5,330,109

 
$
28.03

Options granted
576,400

 
28.55

 
411,575

 
20.90

 
954,350

 
28.96

Options forfeited
(151,092
)
 
26.76

 
(173,009
)
 
27.22

 
(39,836
)
 
27.46

Options expired
(235,081
)
 
39.26

 
(118,199
)
 
47.46

 
(9,499
)
 
54.12

Options exercised
(286,107
)
 
12.56

 
(504,023
)
 
15.94

 
(1,076,754
)
 
17.66

Options outstanding, end of year
4,678,834

 
$
31.26

 
4,774,714

 
$
30.72

 
5,158,370

 
$
30.32

Options exercisable, end of year
3,620,565

 
$
32.53

 
3,478,310

 
$
32.13

 
2,955,909

 
$
33.49


 
The Company uses the Black-Scholes valuation model to value stock options utilizing the following weighted-average assumptions:
 
 
 
Fiscal Year Ended September 30,
Options Granted During
 
2012
 
2011
 
2010
Assumptions:
 
 
 
 
 
 
Risk-free interest rate
 
0.74%
 
0.95%
 
1.45%
Expected volatility
 
66.03%
 
63.88%
 
61.98%
Expected dividend yield
 
0.00%
 
0.00%
 
0.00%
Expected term (in years)
 
5.23
 
5.23
 
5.28

 
The Company used its historical stock prices as the basis for the Company’s volatility assumption. The assumed risk-free interest rates were based on U.S. Treasury rates in effect at the time of grant. The expected option term represents the period of time that the options granted are expected to be outstanding and was based on historical experience. The weighted-average per share fair values for stock option grants during fiscal 2012, 2011 and 2010 were $15.95, $11.42 and $15.69, respectively.
 
As of September 30, 2012, the Company had $10.2 million of unrecognized compensation expense related to outstanding stock options, which will be recognized over a weighted-average period of 2.6 years.

Stock options outstanding as of September 30, 2012 were as follows (in millions, except share and per share amounts): 
Price Range
 
Number
Outstanding
 
Weighted-Average
Remaining
Contractual
Life (in years)
 
Weighted-Average
Exercise Price
 
Aggregate
Intrinsic
Value
$
7.95

-
$
19.75

 
1,129,808

 
5.4
 
$
14.86

 
$
14.2

$
28.27

-
$
38.46

 
2,378,376

 
4.8
 
30.23

 
—

$
39.91

-
$
54.63

 
1,170,650

 
4.1
 
49.18

 
—

 
 
 
 
4,678,834

 
4.8
 
$
31.26

 
$
14.2


 
Stock options exercisable as of September 30, 2012 were as follows (in millions, except share and per share amounts): 
Price Range
 
Number
Exercisable
 
Weighted-Average
Remaining
Contractual
Life (in years)
 
Weighted-Average
Exercise Price
 
Aggregate
Intrinsic
Value
$
7.95

-
$
19.75

 
894,802

 
5.2
 
$
13.76

 
$
12.2

$
28.27

-
$
38.46

 
1,555,113

 
4.1
 
30.81

 
—

$
39.91

-
$
54.63

 
1,170,650

 
4.1
 
49.18

 
—

 
 
 
 
3,620,565

 
4.4
 
$
32.53

 
$
12.2


 
The aggregate intrinsic values in the tables above represent the total pre-tax intrinsic value (difference between the Company’s closing stock price on the last trading day of fiscal 2012 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2012. This amount changes based on the fair market value of the Company’s Common Stock. The total intrinsic value of options exercised for fiscal 2012, 2011 and 2010 was $3.3 million, $9.6 million and $22.8 million, respectively.
 
Net cash proceeds from the exercise of stock options were $3.6 million, $8.0 million and $19.0 million for fiscal 2012, 2011 and 2010, respectively. The actual income tax benefit realized totaled $1.2 million, $3.5 million and $8.4 million for those same periods.
 
Nonvested Stock Awards — Compensation expense related to nonvested stock awards of $4.1 million, $3.0 million and $0.9 million in fiscal 2012, 2011 and 2010, respectively, was recorded in selling, general and administrative expense in the accompanying Consolidated Statements of Income. As of September 30, 2012, the Company had $13.3 million of unrecognized compensation expense related to nonvested stock awards, which will be recognized over a weighted-average period of 2.8 years.

A summary of the Company’s nonvested stock activity for the three years ended September 30, 2012 is as follows:
 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
Nonvested, beginning of year
228,615

 
$
23.75

 
128,907

 
$
30.22

 
2,935

 
$
53.40

Granted
514,800

 
27.37

 
166,412

 
21.99

 
141,682

 
30.93

Forfeited
(37,502
)
 
23.04

 
(5,000
)
 
28.73

 
—

 
—

Vested
(136,631
)
 
24.70

 
(61,704
)
 
32.12

 
(15,710
)
 
40.91

Nonvested, end of year
569,282

 
$
26.84

 
228,615

 
$
23.75

 
128,907

 
$
30.22


 
The total fair value of shares vested during fiscal 2012, 2011 and 2010 was $3.5 million, $1.5 million and $0.6 million, respectively. The actual income tax benefit realized totaled $0.5 million, $0.2 million and $0.1 million for those same periods.
 
Performance Share Awards — In fiscal 2012, 2011 and 2010, the Company granted certain executives performance share awards aggregating 142,000, 153,500 and 75,000 shares at target, respectively, that vest at the end of the third fiscal year following the grant date. Executives earn performance shares only if the Company’s total shareholder return over the three-year term of the awards compares favorably to that of a comparator group of companies. As of September 30, 2012, 343,000 performance shares remained outstanding at target. Potential payouts range from zero to 200 percent of the target awards. Performance share awards were paid out at 0%, 195% and 0% of target amounts in fiscal 2012, 2011 and 2010, respectively. The Company realized an actual income tax benefit of $0.7 million in fiscal 2011 related to the vesting of performance shares.
 
The grant date fair values of performance share awards were estimated using a Monte Carlo simulation model utilizing the following weighted-average assumptions: 
 
 
Fiscal Year Ended September 30,
Performance Shares Granted During
 
2012
 
2011
 
2010
Assumptions:
 
 
 
 
 
 
Risk-free interest rate
 
0.37%
 
0.29%
 
0.73%
Expected volatility
 
44.90%
 
76.98%
 
79.86%
Expected term (in years)
 
3.00
 
3.00
 
3.00

 
The Company used its historical stock prices as the basis for the Company’s volatility assumption. The assumed risk-free rates were based on U.S. Treasury rates in effect at the time of grant. The expected term was based on the vesting period. The weighted-average fair value used to record compensation expense for performance share awards granted during fiscal 2012, 2011 and 2010 was $35.84, $9.75 and $13.88 per award, respectively. Compensation expense of $8.1 million, $1.1 million and $1.4 million related to performance share awards was recorded in fiscal 2012, 2011 and 2010, respectively, in selling, general and administrative expense in the accompanying Consolidated Statements of Income. Performance shares are valued by a global third-party actuarial firm utilizing a complex Monte Carlo simulation model. In October 2012, the Company, in conjunction with the third party, determined that the performance share valuation calculations performed for fiscal 2007 through 2011 were incorrect. The correct weighted-average fair values for performance share awards granted during fiscal 2011 and 2010 were $27.93 and $41.10 per award, respectively. To correct cumulative compensation expense, the Company recorded compensation expense of $4.9 million in fiscal 2012 as an out-of-period adjustment. Correcting this error, which was not material to any of the affected periods, resulted in a $3.1 million after-tax decrease to net income for the year ended September 30, 2012.

Stock Appreciation Rights — In fiscal 2012 and 2011, the Company granted employees 36,400 and 441,000 cash-settled SARs, respectively. Each SAR award represents the right to receive cash equal to the excess of the per share price of the Company’s Common Stock on the date that a participant exercises such right over the grant date price of the Company’s Common Stock. Compensation cost for SARs is remeasured at each reporting period based on the estimated fair value on the date of grant using the Black Scholes option-pricing model, utilizing assumptions similar to stock option awards and is recognized as an expense over the requisite service period. SARs are subsequently remeasured at each interim reporting period based on a revised Black Scholes value. Upon vesting, the fair value of outstanding SARs will be equal to its intrinsic value.

Compensation expense (income) related to SAR awards of $4.4 million, $(0.4) million and $(0.4) million was recorded in fiscal 2012, 2011 and 2010, respectively, in selling, general and administrative expense in the accompanying Consolidated Statements of Income. As of September 30, 2012, the Company had $2.7 million of unrecognized compensation expense related to SAR awards, which will be recognized over a weighted-average period of 2.1 years.

Cash-Settled Restricted Stock Units — In fiscal 2012 and 2011, the Company granted employees 105,600 and 269,000 cash-settled RSUs, respectively. Each RSU award provides recipients the right to receive cash equal to the value of a share of the Company’s Common Stock at predetermined vesting dates. Compensation cost for RSUs is remeasured at each reporting period and is recognized as an expense over the requisite service period. Compensation expense related to RSUs of $4.2 million and $0.1 million was recorded in fiscal 2012 and 2011, respectively, in selling, general and administrative expense in the accompanying Consolidated Statements of Income. As of September 30, 2012, the Company had $5.1 million of unrecognized compensation expense related to RSUs, which will be recognized over a weighted-average period of 2.0 years.
Restructuring and Other Charges
Restructuring and Other Charges
Restructuring and Other Charges

As part of the Company’s actions to rationalize and optimize its global manufacturing footprint and in an effort to streamline operations, the Company announced in September 2010 that it was closing two JerrDan manufacturing facilities and relocating towing and recovery equipment production to other underutilized access equipment segment facilities. The Company largely completed these actions in the fourth quarter of fiscal 2010 and the first quarter of fiscal 2011. As a result of the Company's decision to put a previously closed JerrDan facility back into use, the previously accrued liability for lease termination costs of $2.8 million was reversed to income in the second quarter of fiscal 2011.

In January 2011, the Company initiated a plan to address continued weak market conditions in its access equipment segment in Europe. The plan included the consolidation of certain facilities and other cost reduction initiatives resulting in reductions in its workforce in Europe. In connection with this plan, the Company recorded statutorily or contractually required termination benefit costs in the first quarter of fiscal 2011. During the second quarter of fiscal 2011, the Company reached an agreement with the works councils on certain details of the plan, including the number of employees that would ultimately receive severance. As a result of employees voluntarily leaving the Company, the accrual was reduced throughout the remainder of fiscal 2011. The Company largely completed these actions in the first quarter of fiscal 2012.

In June 2011, the Company announced that its defense segment was closing its Oakes, North Dakota fabrication facility and consolidating operations into other existing Oshkosh facilities. Operations at Oakes concluded in the fourth quarter of fiscal 2011.

On July 26, 2012, the Company initiated a plan to exit its ambulance business. The Company had expected that the move of ambulance production from four separate facilities to a dedicated production facility in Florida in April 2011 would result in significantly improved performance. Despite efforts by numerous dedicated individuals and teams, the Medtec business continued to operate at a loss, and it became apparent that the Medtec product line would not achieve profitability in a reasonable time frame, if at all, and as a result, the Company made a decision to exit the business. The Company expects to discontinue production of ambulances in the second quarter of fiscal 2013 following the completion of units in backlog. In addition to restructuring charges of $3.9 million incurred in connection with the wind down of the Medtec product line, the Company experienced production inefficiencies of $11.3 million and recorded a charge of $3.3 million to write-down inventory to net realizable value during fiscal 2012.

Pre-tax restructuring charges included in continuing operations for fiscal years ended September 30 were as follows (in millions): 
 
Cost of
Sales
 
Selling,
General and
Administrative
 
Total
Fiscal 2012:
 
 
 

 
 

Access equipment
$
(0.2
)
 
$
(0.1
)
 
$
(0.3
)
Defense
—

 
—

 
—

Fire & emergency
0.2

 
4.3

 
4.5

Commercial
0.1

 
—

 
0.1

 
$
0.1

 
$
4.2

 
$
4.3

 
 
 
 
 
 
Fiscal 2011:
 

 
 

 
 

Access equipment
$
1.0

 
$
0.7

 
$
1.7

Defense
3.7

 
—

 
3.7

Fire & emergency
0.1

 
1.0

 
1.1

Commercial
0.1

 
0.3

 
0.4

 
$
4.9

 
$
2.0

 
$
6.9



Changes in the Company’s restructuring reserves, included within “Other current liabilities” in the Consolidated Balance Sheets, were as follows (in millions): 
 
Employee
Severance and
Termination
Benefits
 
Property,
Plant and
Equipment
Impairment
 
Other
 
Total
Balance at September 30, 2010
$
1.6

 
$
—

 
$
3.2

 
$
4.8

Restructuring provisions
6.0

 
3.4

 
(2.5
)
 
6.9

Utilized - cash
(4.6
)
 
—

 
(0.7
)
 
(5.3
)
Utilized - noncash
—

 
(3.4
)
 
—

 
(3.4
)
Currency
0.6

 
—

 
—

 
0.6

Balance at September 30, 2011
3.6

 
—

 
—

 
3.6

Restructuring provisions
0.7

 
0.9

 
2.7

 
4.3

Utilized - cash
(1.1
)
 
—

 
(0.5
)
 
(1.6
)
Utilized - noncash
—

 
(0.9
)
 
(0.1
)
 
(1.0
)
Currency
(0.4
)
 
—

 
—

 
(0.4
)
Balance at September 30, 2012
$
2.8

 
$
—

 
$
2.1

 
$
4.9

Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
 
Defined Benefit Plans — Oshkosh and certain of its subsidiaries sponsor multiple defined benefit pension plans covering certain Oshkosh and Pierce employees. The benefits provided are based primarily on average compensation, years of service and date of birth. Hourly plans are generally based on years of service and a benefit dollar multiplier. The Company periodically amends the plans, including changing the benefit dollar multipliers and other revisions. In September 2012, the Company amended its Oshkosh and Pierce defined benefit plans, freezing benefit accruals for Oshkosh and Pierce salaried employees effective December 31, 2012. The amendment provides that salaried participants in the Oshkosh and Pierce pension plans will not receive credit, other than for vesting purposes, for eligible earnings paid for any month of service worked after the effective date. All accrued benefits under the plans as of the effective date will remain intact, and service credits for vesting and retirement eligibility will continue in accordance with the terms of the plans. As a result of the formal decision to freeze the plans benefit accruals, the Company recognized a reduction of its projected benefit obligation of $31.4 million and recorded a curtailment loss of $2.5 million. The pension benefit is expected to be offset by additional employer contributions to the Company's defined contribution plan beginning in January 2013.

Supplemental Executive Retirement Plans — The Company maintains unfunded defined benefit supplemental executive retirement plans ("SERPs") for certain executive officers of the Company and its subsidiaries. Benefits are based upon the employees' earnings. The Oshkosh SERP was amended to freeze benefits under the plan effective December 31, 2012. The amendment resulted in a net reduction to the benefit obligation under this plan of $2.3 million and a curtailment loss of $0.9 million in fiscal 2012. The pension benefit is expected to be partially offset by a new, non-qualified, defined contribution SERP effective January 1, 2013.

Postretirement Medical Plans — Oshkosh and certain of its subsidiaries sponsor multiple postretirement benefit plans covering Oshkosh, JLG and Kewaunee hourly and salaried active employees, retirees and their spouses. The plans generally provide health benefits based on years of service and date of birth. These plans are unfunded. In September 2012, the Oshkosh plan was amended to eliminate postretirement benefits coverage for salaried employees retiring at age 55 or older effective December 31, 2012, except for existing eligible employees who are at least age 55 with at least five years of service by December 31, 2012 who elect to retire on or before December 31, 2013. The effect of the amendment was a reduction in the benefit obligation of $9.2 million as of September 30, 2012. This reduction is being amortized over the expected average remaining years of service of 17 years for participants expected to receive benefits under this plan.

The changes in benefit obligations and plan assets, as well as the funded status of the Company’s defined benefit pension plans and postretirement benefit plans, were as follows (in millions):
 
 
 
Postretirement
 
Pension Benefits
 
Health and Other
 
2012
 
2011
 
2012
 
2011
 
 
 
 
 
 
 
 
Accumulated benefit obligation
$
377.7

 
$
321.7

 
$
80.4

 
$
77.7

 
 
 
 
 
 
 
 
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at October 1
$
352.6

 
$
283.6

 
$
77.7

 
$
64.8

Service cost
20.6

 
16.6

 
7.2

 
4.5

Interest cost
16.3

 
13.9

 
3.4

 
3.0

Actuarial loss
32.6

 
33.2

 
2.6

 
6.5

Participant contributions
0.1

 
0.1

 
—

 
—

Plan amendments
—

 
10.9

 
(9.2
)
 
—

Curtailments
(33.7
)
 
—

 
—

 
—

Benefits paid
(11.1
)
 
(5.6
)
 
(1.3
)
 
(1.1
)
Currency translation adjustments
0.5

 
(0.1
)
 
—

 
—

Benefit obligation at September 30
$
377.9

 
$
352.6

 
$
80.4

 
$
77.7

 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at October 1
$
213.9

 
$
192.1

 
$
—

 
$
—

Actual return on plan assets
42.8

 
3.3

 
—

 
—

Company contributions
35.8

 
25.9

 
1.3

 
1.1

Participant contributions
0.1

 
0.1

 
—

 
—

Expenses paid
(1.8
)
 
(1.8
)
 
—

 
—

Benefits paid
(11.1
)
 
(5.6
)
 
(1.3
)
 
(1.1
)
Currency translation adjustments
0.7

 
(0.1
)
 
—

 
—

Fair value of plan assets at September 30
$
280.4

 
$
213.9

 
$
—

 
$
—

Funded status of plan - under funded
$
(97.5
)
 
$
(138.7
)
 
$
(80.4
)
 
$
(77.7
)
 
 
 
 
 
 
 
 
Recognized in consolidated balance sheet at September 30
 
 
 
 
 
 
 
Prepaid benefit cost (long-term asset)
$
4.0

 
$
2.6

 
$
—

 
$
—

Accrued benefit liability (current liability)
(1.4
)
 
(5.2
)
 
(2.5
)
 
(2.8
)
Accrued benefit liability (long-term liability)
(100.1
)
 
(136.1
)
 
(77.9
)
 
(74.9
)
 
$
(97.5
)
 
$
(138.7
)
 
$
(80.4
)
 
$
(77.7
)



 
 
 
Postretirement
 
Pension Benefits
 
Health and Other
 
2012
 
2011
 
2012
 
2011
Recognized in accumulated other comprehensive income (loss) as of September 30 (net of taxes)
 

 
 

 
 

 
 

Net actuarial loss
$
(72.9
)
 
$
(96.0
)
 
$
(19.3
)
 
$
(18.5
)
Prior service cost
(13.1
)
 
(16.2
)
 
5.8

 
—

 
$
(86.0
)
 
$
(112.2
)
 
$
(13.5
)
 
$
(18.5
)
Weighted-average assumptions as of September 30


 


 


 


Discount rate
4.24
%
 
4.72
%
 
3.95
%
 
4.45
%
Expected return on plan assets
6.25
%
 
7.00
%
 
n/a

 
n/a

Rate of compensation increase
3.69
%
 
3.73
%
 
n/a

 
n/a



Pension benefit plans with accumulated benefit obligations in excess of plan assets consisted of the following as of September 30 (in millions):
 
 
2012
 
2011
Projected benefit obligation
$
361.8

 
$
338.9

Accumulated benefit obligation
361.2

 
308.1

Fair value of plan assets
260.2

 
197.6


 
The components of net periodic benefit cost for fiscal years ended September 30 were as follows (in millions):

 
 
Postretirement
 
Pension Benefits
Health and Other
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Components of net periodic benefit cost
 

 
 

 
 

 
 

 
 

 
 

Service cost
$
20.6

 
$
16.6

 
$
13.5

 
$
7.2

 
$
4.5

 
$
4.1

Interest cost
16.3

 
13.9

 
12.4

 
3.4

 
3.0

 
2.8

Expected return on plan assets
(15.6
)
 
(15.9
)
 
(13.0
)
 
—

 
—

 
—

Amortization of prior service cost
2.3

 
1.9

 
2.1

 
—

 
—

 
—

Curtailment
3.4

 
1.5

 
0.6

 
—

 
—

 
—

Amortization of net actuarial loss
7.1

 
5.6

 
4.1

 
1.3

 
1.1

 
0.9

Expenses paid
1.8

 
1.4

 
2.5

 
—

 
—

 
—

Net periodic benefit cost
$
35.9

 
$
25.0

 
$
22.2

 
$
11.9

 
$
8.6

 
$
7.8

 
 
 
 
 
 
 
 
 
 
 
 
Other changes in plan assets and benefit obligation recognized in other comprehensive income
 

 
 

 
 

 
 

 
 

 
 

Net actuarial loss (gain)
$
(26.0
)
 
$
46.2

 
$
16.6

 
$
2.6

 
$
6.5

 
$
3.9

Prior service cost
(0.9
)
 
10.9

 
3.0

 
—

 
—

 
—

Amortization of prior service cost
(4.8
)
 
(1.9
)
 
(2.0
)
 
—

 
—

 
—

Curtailment
(2.3
)
 
—

 
—

 
(9.2
)
 
—

 
—

Amortization of net actuarial gain
(7.1
)
 
(7.1
)
 
(4.7
)
 
(1.3
)
 
(1.1
)
 
(0.9
)
 
$
(41.1
)
 
$
48.1

 
$
12.9

 
$
(7.9
)
 
$
5.4

 
$
3.0

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions
 

 
 

 
 

 
 

 
 

 
 

Discount rate
4.72
%
 
4.75
%
 
5.25
%
 
4.45
%
 
4.75
%
 
5.25
%
Expected return on plan assets
7.00
%
 
7.75
%
 
7.75
%
 
n/a

 
n/a

 
n/a

Rate of compensation increase
3.78
%
 
3.94
%
 
4.29
%
 
n/a

 
n/a

 
n/a


 
Included in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet at September 30, 2012 are prior service costs of $1.8 million ($1.1 million net of tax) and unrecognized net actuarial losses of $4.4 million ($2.8 million net of tax) expected to be recognized in pension and supplemental employee retirement plan net periodic benefit costs during fiscal 2013.
 
The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the Company was 8.5% in fiscal 2012, declining to 5.5% in fiscal 2018. If the health care cost trend rate was increased by 100 basis points, the accumulated postretirement benefit obligation at September 30, 2012 would increase by $11.2 million and the net periodic postretirement benefit cost for fiscal 2012 would increase by $2.2 million. A corresponding decrease of 100 basis points would decrease the accumulated postretirement benefit obligation at September 30, 2012 by $9.3 million and the net periodic postretirement benefit cost for fiscal 2012 would decrease by $1.8 million.
 
The Company’s Board of Directors has appointed an Investment Committee (“Committee”), which consists of members of management, to manage the investment of the Company’s pension plan assets. The Committee has established and operates under an Investment Policy. The Committee determines the asset allocation and target ranges based upon periodic asset/liability studies and capital market projections. The Committee retains external investment managers to invest the assets and an adviser to monitor the performance of the investment managers. The Investment Policy prohibits certain investment transactions, such as commodity contracts, margin transactions, short selling and investments in Company securities, unless the Committee gives prior approval.

The weighted-average of the Company’s pension plan asset allocations and target allocations at September 30, by asset category, were as follows:

 
Target %
 
2012
 
2011
Asset Category
 
 
 
 
 
Fixed income
30% - 40%
 
39
%
 
43
%
Large-cap growth
25% - 35%
 
30
%
 
30
%
Large-cap value
5% - 15%
 
10
%
 
9
%
Mid-cap value
5% - 15%
 
10
%
 
8
%
Small-cap value
5% - 15%
 
11
%
 
10
%
Venture capital
0% - 5%
 
—
%
 
—
%
 
 
 
100
%
 
100
%

The plans’ investment strategy is based on an expectation that, over time, equity securities will provide higher total returns than debt securities. The plans primarily minimize the risk of large losses through diversification of investments by asset class, by investing in different styles of investment management within the classes and by using a number of different investment managers. The Committee monitors the asset allocation and investment performance monthly, with a more comprehensive quarterly review with its adviser and annual reviews with each investment manager.
 
The plans’ expected return on assets is based on management’s and the Committee’s expectations of long-term average rates of return to be achieved by the plans’ investments. These expectations are based on the plans’ historical returns and expected returns for the asset classes in which the plans are invested.
 
The fair value of plan assets by major category and level within the fair value hierarchy was as follows (in millions):

 
Quoted Prices
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
September 30, 2012:
 

 
 

 
 

 
 

Common stocks
 

 
 

 
 

 
 

U.S. companies (a)
$
146.8

 
$
3.7

 
$
—

 
$
150.5

International companies (b)
—

 
17.7

 
—

 
17.7

Government and agency bonds (c)
7.1

 
39.2

 
—

 
46.3

Corporate bonds and notes (e)
—

 
51.5

 
—

 
51.5

Money market funds (f)
14.4

 
—

 
—

 
14.4

 
$
168.3

 
$
112.1

 
$
—

 
$
280.4

 
 
 
 
 
 
 
 
September 30, 2011:
 

 
 

 
 

 
 

Common stocks
 

 
 

 
 

 
 

U.S. companies (a)
$
104.2

 
$
—

 
$
—

 
$
104.2

International companies (b)
—

 
14.6

 
—

 
14.6

Government and agency bonds (c)
3.8

 
35.6

 
—

 
39.4

Municipal bonds (d)
—

 
0.1

 
—

 
0.1

Corporate bonds and notes (e)
—

 
43.8

 
—

 
43.8

Money market funds (f)
11.7

 
—

 
—

 
11.7

Venture capital closely held limited partnership (g)
—

 
—

 
0.1

 
0.1

 
$
119.7

 
$
94.1

 
$
0.1

 
$
213.9

_________________________
(a)
Primarily valued using a market approach based on the quoted market prices of identical instruments that are actively traded on public exchanges.
(b)
Valuation model looks at underlying security "best" price, exchange rate for underlying security's currency against the U.S. Dollar and ratio of underlying security to American depository receipt.
(c)
These investments consist of debt securities issued by the U.S. Treasury, U.S. government agencies and U.S. government-sponsored enterprises and have a variety of structures, coupon rates and maturities. These investments are considered to have low default risk as they are guaranteed by the U.S. government. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades.
(d)
These investments consist of debts issued by municipalities. Most provide a fixed amount of interest income while some investments are zero coupon bonds which receive one payment at maturity. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades.
(e)
These investments consist of debt obligations issued by a variety of private and public corporations. These are investment grade securities which historically have provided a steady stream of income. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades.
(f)
These investments largely consist of short-term investment funds and are valued using a market approach based on the quoted market prices of identical instruments.
(g)
These investments finance new and rapidly growing companies and do not have readily determinable market values given the specific investment structures involved and the nature of the underlying investments. Valuation is determined by various sources such as issuer, investment manager, etc.

The change in the fair value of the Master Pension Trust’s Level 3 investment assets during fiscal 2012 and 2011 was not significant.

The Company’s policy is to fund the pension plans in amounts that comply with contribution limits imposed by law. The Company expects to contribute between $10.0 million and $15.0 million to its pension plans and an additional $2.5 million to its postretirement benefit plans in fiscal 2013. However, based on returns on the plans’ investments and the Company’s cash flows, the Company may contribute more than these ranges in fiscal 2013 to reduce the underfunded status of certain plans.

The Company’s estimated future benefit payments under Company sponsored plans were as follows (in millions):
 
 
 
 
 
 
 
Other
Fiscal Year Ending
 
Pension Benefits
 
Postretirement
September 30,
 
U.S. Plans
 
 
Non-Qualified
 
Benefits
2013
 
$
7.0

 
 
$
1.4

 
$
2.5

2014
 
7.7

 
 
1.4

 
2.7

2015
 
8.5

 
 
1.4

 
2.8

2016
 
9.5

 
 
1.4

 
3.1

2017
 
10.6

 
 
1.4

 
3.7

2018-2022
 
73.3

 
 
8.7

 
23.4



Multi-Employer Pension Plans - The Company participates in the Boilermaker-Blacksmith National Pension Trust (Employer Identification Number 48-6168020), a multi-employer defined benefit pension plan related to collective bargaining employees at the Company's Kewaunee facility. The Company's contributions and pension benefits payable under the plan and the administration of the plan are determined by the terms of the related collective-bargaining agreement, which expires on May 1, 2017. The multi-employer plan poses different risks to the Company than single-employer plans in the following respects:

1.
The Company's contributions to the multi-employer plan may be used to provide benefits to all participating employees of the program, including employees of other employers.
2.
In the event that another participating employer ceases contributions to the multi-employer plan, the Company may be responsible for any unfunded obligations along with the remaining participating employers.
3.
If the Company chooses to withdraw from the multi-employer plan, then the Company may be required to pay a withdrawal liability, based on the underfunded status of the plan at that time.

As of December 31, 2011, the plan-certified zone status as defined by the Pension Protection Act of 2006 was Yellow and accordingly it has implemented a financial improvement plan or a rehabilitation plan. The Company's contributions to the multi-employer plan did not exceed 5% of the total plan contributions for the fiscal years 2012, 2011 or 2010. The Company made contributions to the plan of $1.0 million, $0.7 million and $0.6 million in fiscal 2012, 2011 and 2010, respectively.

401(k) Plans - The Company has defined contribution 401(k) plans covering substantially all domestic employees. The plans allow employees to defer 2% to 100% of their income on a pre-tax basis. Each employee who elects to participate is eligible to receive Company matching contributions, which are based on employee contributions to the plans, subject to certain limitations. Amounts expensed for Company matching and discretionary contributions were $11.3 million, $10.5 million and $5.1 million in fiscal 2012, 2011 and 2010, respectively.
Income Taxes
Income Taxes
Income Taxes

Pre-tax income (loss) from continuing operations was taxed in the following jurisdictions (in millions):

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Domestic
$
246.6

 
$
420.8

 
$
1,273.2

Foreign
40.1

 
2.8

 
(31.5
)
 
$
286.7

 
$
423.6

 
$
1,241.7



Significant components of the provision for income taxes were as follows (in millions):

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Allocated to Income From Continuing Operations Before Equity in Earnings (Losses) of Unconsolidated Affiliates
 

 
 

 
 

Current:
 

 
 

 
 

Federal
$
110.1

 
$
150.5

 
$
468.3

Foreign
3.2

 
0.7

 
7.4

State
4.2

 
3.7

 
14.0

Total current
117.5

 
154.9

 
489.7

Deferred:
 

 
 

 
 

Federal
(59.9
)
 
(14.2
)
 
(57.6
)
Foreign
2.0

 
4.8

 
(9.0
)
State
(2.2
)
 
(0.4
)
 
(1.7
)
Total deferred
(60.1
)
 
(9.8
)
 
(68.3
)
 
$
57.4

 
$
145.1

 
$
421.4

 
 
 
 
 
 
Allocated to Other Comprehensive Income (Loss)
 

 
 

 
 

Deferred federal, state and foreign
$
18.7

 
$
(14.5
)
 
$
10.5



The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense was:

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Effective Rate Reconciliation
 

 
 

 
 

U.S. federal tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
Non-deductible intangible asset impairment charges
—

 
0.1

 
—

State income taxes, net
(0.6
)
 
0.8

 
1.0

Foreign taxes
2.4

 
(0.6
)
 
(0.1
)
Tax audit settlements
(4.1
)
 
—

 
(1.2
)
European tax incentive
(1.7
)
 
(0.9
)
 
0.6

Valuation allowance
(2.5
)
 
1.3

 
0.3

Domestic tax credits
(0.3
)
 
(1.5
)
 
(0.1
)
Manufacturing deduction
(3.6
)
 
(1.1
)
 
(1.9
)
Other, net
(4.6
)
 
1.2

 
0.3

 
20.0
 %
 
34.3
 %
 
33.9
 %


During fiscal 2012, the Company recorded discrete tax benefits of $44.8 million which included settlement of audits, changes in filing positions taken in prior periods, expiration of statute of limitations and utilization of losses previously unbenefitted. Other, net for fiscal 2012 included $13.1 million for adjustments related to deferred taxes and changes to filing positions taken in prior periods. In fiscal 2011, the Company recorded a $2.7 million benefit due to the reinstatement of the U.S. research & development tax credit for periods prior to fiscal 2011. The fiscal 2010 research & development tax credit included only one-fourth of the annual benefit because of the timing of the credit reinstatement. During fiscal 2010, the Company settled a number of income tax audits.

The Company is party to a tax incentive agreement (“incentive”) covering certain of its European operations. The incentive provides for a reduction in the Company’s effective income tax rate through allowable deductions that are subject to recapture to the extent that certain conditions are not met, including a requirement to have minimum cumulative operating income over a multiple-year period ending in fiscal 2013. The Company recorded tax deductions (income recapture) under the incentive of €11.5 million, €7.8 million and €(15.9) million in fiscal 2012, 2011 and 2010, respectively, which resulted in additional benefit (expense) of $5.0 million, $3.7 million and $(7.3) million in fiscal 2012, 2011 and 2010, respectively. Life-to-date, the Company has recorded €21.5 million of cumulative net deductions which are subject to recapture provisions should certain minimum income and other requirements not be met. Should the Company reach the maximum level of cumulative operating income under the incentive, aggregate additional unbenefitted deductions of €92.0 million would be available to offset the Company’s future taxable income, although the amount of deductions allowed in any particular tax year are limited by the incentive.

In fiscal 2009, 2010 and 2012, the Company sold several European companies whose operations were subsequently classified as discontinued operations. The Company had made an election with the U.S. Internal Revenue Service to treat Windmill Ventures, the Company’s European holding company parent of these disposed companies, as a disregarded entity for U.S. federal income tax purposes. As a result of this election, the Company recorded a worthless stock/bad debt income tax benefit related to the discontinued operations of the sold companies. In fiscal 2012, the Company settled an income tax audit, which resulted in a tax benefit of $6.1 million related to the release of previously accrued amounts for uncertain tax positions for worthless stock/bad debt deductions, which was included in discontinued operations.

Deferred income tax assets and liabilities were comprised of the following (in millions): 
 
September 30,
 
2012
 
2011
Deferred Tax Assets and Liabilities
 

 
 

Deferred tax assets:
 

 
 

Other long-term liabilities
$
105.1

 
$
112.6

Losses and credits
78.2

 
57.4

Accrued warranty
30.4

 
23.8

Other current liabilities
32.4

 
20.8

Payroll-related obligations
20.1

 
15.7

Receivables
7.2

 
15.2

Other
0.1

 
0.4

Gross deferred tax assets
273.5

 
245.9

Less valuation allowance
(55.0
)
 
(39.5
)
Deferred tax assets
218.5

 
206.4

Deferred tax liabilities:
 

 
 

Intangible assets
223.8

 
241.2

Investment in unconsolidated partnership
—

 
5.3

Property, plant and equipment
34.2

 
48.8

Inventories
16.4

 
2.7

Other
3.8

 
6.8

Deferred tax liabilities
278.2

 
304.8

Net deferred tax liability
$
(59.7
)
 
$
(98.4
)


The net deferred tax liability is classified in the Consolidated Balance Sheets as follows (in millions): 
 
September 30,
 
2012
 
2011
Current net deferred tax asset
$
69.9

 
$
72.9

Non-current net deferred tax liability
(129.6
)
 
(171.3
)
 
$
(59.7
)
 
$
(98.4
)


As of September 30, 2012, the Company had $191.1 million of net operating loss carryforwards available to reduce future taxable income of certain foreign subsidiaries that are primarily from countries with carryforward periods ranging from five years to an unlimited period. In addition, the Company had $157.0 million of state net operating loss carryforwards, which are subject to expiration from 2014 to 2032. The Company also had capital loss carryforwards of $32.4 million, which are subject to expiration from 2014 to 2017, and state credit carryforwards of $8.3 million, which are subject to expiration from 2022 to 2027. The deferred tax assets for foreign net operating loss carryforwards, state net operating loss carryforwards, capital loss carryforwards and state credit carryforwards were $54.0 million, $8.2 million, $11.9 million and $4.1 million, respectively, and are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax-planning strategies and projections of future taxable income. As a result of this analysis, the Company carried a valuation allowance as of September 30, 2012 against the foreign deferred tax assets, state deferred tax assets and capital loss carryforwards of $40.6 million, $2.5 million and $11.9 million, respectively.

The Company does not provide for U.S. income taxes on undistributed earnings of its foreign operations that are intended to be permanently reinvested. At September 30, 2012, these earnings amounted to $50.6 million. If these earnings were repatriated to the United States, the Company would be required to accrue and pay U.S. federal income taxes and foreign withholding taxes, as adjusted for foreign tax credits. Determination of the amount of any unrecognized deferred income tax liability on these earnings is not practicable.

As of September 30, 2012, the Company’s liability for gross unrecognized tax benefits, excluding related interest and penalties, was $33.9 million. As of September 30, 2012, net unrecognized tax benefits, excluding interest and penalties, of $23.8 million would affect the Company’s net income if recognized, including $23.1 million which would impact net income from continuing operations. As of September 30, 2011, net unrecognized tax benefits, excluding interest and penalties, of $43.4 million would have affected the Company’s net income if recognized, $23.3 million of which would have impacted net income from continuing operations. A reconciliation of the beginning and ending amount of unrecognized tax benefits during fiscal 2012 and fiscal 2011 were as follows (in millions):

 
Fiscal Year Ended
September 30,
 
2012
 
2011
Balance at beginning of year
$
53.3

 
$
52.1

Additions for tax positions related to current year
3.8

 
4.0

Additions for tax positions related to prior years
8.7

 
4.0

Reductions for tax positions of prior years
(0.2
)
 
(0.3
)
Settlements
(28.3
)
 
(2.0
)
Lapse of statute of limitations
(4.4
)
 
(4.5
)
Balance at end of year
$
32.9

 
$
53.3



The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in the “Provision for income taxes” in the Consolidated Statements of Income. During the fiscal years ended September 30, 2012, 2011 and 2010, the Company recognized tax benefits of $0.8 million, $1.7 million and $0.9 million related to interest and penalties, respectively. At September 30, 2012 and 2011, the Company had accruals for the payment of interest and penalties of $13.3 million and $14.1 million, respectively. During the next twelve months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce unrecognized tax benefits by approximately $4.0 million, either because the Company’s tax positions are sustained on audit, because the Company agrees to their disallowance or the statute of limitations closes.

The Company files federal income tax returns, as well as multiple state, local and non-U.S. jurisdiction tax returns. The Company is regularly audited by federal, state and foreign tax authorities. During fiscal 2012, the U.S. Internal Revenue Service completed its audit of the Company for the taxable years ended September 30, 2008 and 2009. As of September 30, 2012, tax years open for examination under applicable statutes were as follows:

Tax Jurisdiction
 
Open Tax Years
Australia
 
2007 - 2012
Belgium
 
2010 - 2012
Brazil
 
2006 - 2012
Canada
 
2009 - 2012
Romania
 
2010 - 2012
The Netherlands
 
2007 - 2012
United States (federal)
 
2010 - 2012
United States (state and local)
 
2002 - 2012
Earnings (Loss) Per Share
Earnings (Loss) Per Share
Earnings (Loss) Per Share

Basic earnings per share is computed by dividing net earnings available to common shareholders, which has been modified to include the effects of all participating securities (unvested share-based payment awards with a right to receive nonforfeitable dividends) as prescribed by the two-class method under FASB ASC Topic 260, Earnings Per Share, during the period by the weighted average shares outstanding. Diluted earnings per share is computed similarly but reflects the potential dilution that would occur if dilutive options were exercised and restricted stock and performance share awards vested. Options to purchase 3,549,026, 2,294,124 and 1,425,155 shares of Common Stock were outstanding in fiscal 2012, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share attributable to Oshkosh Corporation common shareholders because the exercise price of the options was greater than the average market price of the shares of Common Stock and therefore would have been anti-dilutive.

Net income (loss) attributable to Oshkosh Corporation common shareholders was as follows (in millions): 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Net income from continuing operations
$
230.5

 
$
279.0

 
$
816.0

Less: net earnings allocated to participating securities
(0.6
)
 
(0.4
)
 
(0.2
)
Net income available to Oshkosh Corporation common shareholders
$
229.9

 
$
278.6

 
$
815.8

 
 
 
 
 
 
Net income (loss) from discontinued operations
$
0.3

 
$
(5.6
)
 
$
(26.0
)


Basic and diluted weighted-average shares used in the denominator of the per share calculations was as follows:
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Basic weighted-average shares outstanding
91,330,635

 
90,888,253

 
89,947,873

Effect of dilutive stock options and equity-based compensation awards
562,508

 
685,107

 
1,006,868

Diluted weighted-average shares outstanding
91,893,143

 
91,573,360

 
90,954,741

Contingencies, Significant Estimates and Concentrations
Contingencies, Significant Estimates and Concentrations
Contingencies, Significant Estimates and Concentrations

Environmental - As part of its routine business operations, the Company disposes of and recycles or reclaims certain industrial waste materials, chemicals and solvents at third-party disposal and recycling facilities, which are licensed by appropriate governmental agencies. In some instances, these facilities have been and may be designated by the United States Environmental Protection Agency (“EPA”) or a state environmental agency for remediation. Under the Comprehensive Environmental Response, Compensation, and Liability Act and similar state laws, each potentially responsible party (“PRP”) that contributed hazardous substances may be jointly and severally liable for the costs associated with cleaning up these sites. Typically, PRPs negotiate a resolution with the EPA and/or the state environmental agencies. PRPs also negotiate with each other regarding allocation of the cleanup costs.

The Company had reserves of $2.0 million and $2.1 million for losses related to environmental matters that were probable and estimable at September 30, 2012 and 2011, respectively. The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. Actual costs incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. Subject to the imprecision in estimating future contingent liability costs, the Company does not expect that any sum it may have to pay in connection with these matters in excess of the amounts recorded will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

Personal Injury Actions and Other - Product and general liability claims are made against the Company from time to time in the ordinary course of business. The Company is generally self-insured for future claims up to $3.0 million per claim. Accordingly, a reserve is maintained for the estimated costs of such claims. At September 30, 2012 and 2011, reserves for product and general liability claims was $45.6 million and $41.7 million, respectively, based on available information. There is inherent uncertainty as to the eventual resolution of unsettled claims. Management, however, believes that any losses in excess of established reserves will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

Market Risks - The Company was contingently liable under bid, performance and specialty bonds totaling $221.9 million and open standby letters of credit issued by the Company’s banks in favor of third parties totaling $179.8 million at September 30, 2012.

Purchase Obligations - The Company utilizes blanket purchase orders to communicate expected annual requirements to many of its suppliers or contractors. Requirements under blanket purchase orders generally do not become “firm” until four weeks prior to the Company’s scheduled unit production. As of September 30, 2012 and September 30, 2011, the Company had purchase obligation commitments considered firm, plus the value of all outstanding subcontracts, totaling $1.8 billion and $2.8 billion, respectively.

Other Matters - The Company is subject to other environmental matters and legal proceedings and claims, including patent, antitrust, product liability, warranty and state dealership regulation compliance proceedings that arise in the ordinary course of business. Although the final results of all such matters and claims cannot be predicted with certainty, management believes that the ultimate resolution of all such matters and claims will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Actual results could vary, among other things, due to the uncertainties involved in litigation.

At September 30, 2012, approximately 25% of the Company’s workforce was covered under collective bargaining agreements.

The Company derived a significant portion of its revenue from the DoD, as follows (in millions): 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
DoD
$
3,452.5

 
$
4,136.8

 
$
7,054.7

Foreign military sales
221.2

 
74.3

 
28.3

Total DoD sales
$
3,673.7

 
$
4,211.1

 
$
7,083.0



No other customer represented more than 10% of sales for fiscal 2012, 2011 or 2010.

Certain risks are inherent in doing business with the DoD, including technological changes and changes in levels of defense spending. All DoD contracts contain a provision that they may be terminated at any time at the convenience of the U.S. government. In such an event, the Company is entitled to recover allowable costs plus a reasonable profit earned to the date of termination.

Major contracts for military systems are performed over extended periods of time and are subject to changes in scope of work and delivery schedules. Pricing negotiations on changes and settlement of claims often extend over prolonged periods of time. The Company’s ultimate profitability on such contracts may depend on the eventual outcome of an equitable settlement of contractual issues with the Company’s customers.

Because the Company is a relatively large defense contractor, the Company’s U.S. government contract operations are subject to extensive annual audit processes and to U.S. government investigations of business practices and cost classifications from which legal or administrative proceedings can result. Based on U.S. government procurement regulations, under certain circumstances the Company could be fined, as well as suspended or debarred from U.S. government contracting. During a suspension or debarment, the Company would also be prohibited from selling equipment or services to customers that depend on loans or financial commitments from the Export Import Bank, Overseas Private Investment Corporation and similar U.S. government agencies.
Business Segment Information
Business Segment Information
Business Segment Information

The Company is organized into four reportable segments based on the internal organization used by management for making operating decisions and measuring performance and based on the similarity of customers served, common management, common use of facilities and economic results attained. The Company’s segments are as follows:

Access Equipment: This segment consists of JLG and JerrDan. JLG manufactures aerial work platforms and telehandlers used in a wide variety of construction, industrial, institutional and general maintenance applications to position workers and materials at elevated heights for sale worldwide. Access equipment customers include equipment rental companies, construction contractors, manufacturing companies, home improvement centers and the U.S. military. JerrDan manufactures and markets towing and recovery equipment in the U.S. and abroad.

Defense: This segment consists of a division of Oshkosh that manufactures tactical wheeled vehicles and supply parts and services for the U.S. military and for other militaries around the world. Sales to the DoD accounted for 90.8%, 93.5% and 96.9% of the segment’s sales for the years ended September 30, 2012, 2011 and 2010, respectively.

Fire & Emergency: This segment includes Pierce, the aircraft rescue and firefighting and snow removal divisions of Oshkosh and Kewaunee. These units manufacture and market commercial and custom fire vehicles, simulators and emergency vehicles primarily for fire departments, airports, other governmental units, and broadcast vehicles for broadcasters and TV stations in the U.S. and abroad.

Commercial: This segment includes McNeilus, CON-E-CO, London, IMT and the commercial division of Oshkosh. McNeilus, CON-E-CO, London and Oshkosh manufacture, market and distribute concrete mixers, portable concrete batch plants and vehicle and vehicle body components. McNeilus and London manufacture, market and distribute refuse collection vehicles and components. IMT is a manufacturer of field service vehicles and truck-mounted cranes for niche markets. Sales are made primarily to commercial and municipal customers in the Americas.

In accordance with FASB ASC Topic 280, Segment Reporting, for purposes of business segment performance measurement, the Company does not allocate to individual business segments costs or items that are of a non-operating nature or organizational or functional expenses of a corporate nature. The caption “Corporate” includes corporate office expenses, share-based compensation, costs of certain business initiatives and shared services benefiting multiple segments and results of insignificant operations. Identifiable assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, certain property, plant and equipment and certain other assets pertaining to corporate activities. Intersegment sales generally include amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed and agreed-upon pricing which is intended to be reflective of the contribution made by the supplying business segment. The accounting policies of the reportable segments are the same as those described in Note 2 of the Notes to Consolidated Financial Statements.

Selected financial information concerning the Company’s product lines and reportable segments is as follows (in millions):
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
 
External
Customers
 
Inter-
segment
 
Net
Sales
 
External
Customers
 
Inter-
segment
 
Net
Sales
 
External
Customers
 
Inter-
segment
 
Net
Sales
Access equipment (a)
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Aerial work platforms
$
1,390.2

 
$
—

 
$
1,390.2

 
$
961.6

 
$
—

 
$
961.6

 
$
558.6

 
$
—

 
$
558.6

Telehandlers
892.3

 
—

 
892.3

 
527.9

 
—

 
527.9

 
342.8

 
—

 
342.8

Other (b)
511.9

 
125.1

 
637.0

 
454.6

 
108.0

 
562.6

 
365.4

 
1,745.1

 
2,110.5

Total access equipment
2,794.4

 
125.1

 
2,919.5

 
1,944.1

 
108.0

 
2,052.1

 
1,266.8

 
1,745.1

 
3,011.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defense
3,947.5

 
3.0

 
3,950.5

 
4,359.9

 
5.3

 
4,365.2

 
7,151.3

 
10.4

 
7,161.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fire & emergency
769.4

 
39.0

 
808.4

 
765.1

 
18.0

 
783.1

 
871.1

 
23.1

 
894.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Concrete placement
231.9

 
—

 
231.9

 
169.6

 
—

 
169.6

 
174.1

 
—

 
174.1

Refuse collection
336.8

 
—

 
336.8

 
249.6

 
—

 
249.6

 
305.7

 
—

 
305.7

Other
100.9

 
27.4

 
128.3

 
79.2

 
66.5

 
145.7

 
51.6

 
90.7

 
142.3

Total commercial
669.6

 
27.4

 
697.0

 
498.4

 
66.5

 
564.9

 
531.4

 
90.7

 
622.1

Intersegment eliminations
—

 
(194.5
)
 
(194.5
)
 
—

 
(197.8
)
 
(197.8
)
 
—

 
(1,869.3
)
 
(1,869.3
)
Consolidated
$
8,180.9

 
$
—

 
$
8,180.9

 
$
7,567.5

 
$
—

 
$
7,567.5

 
$
9,820.6

 
$
—


$
9,820.6

_________________________
(a)
Fiscal 2011 and 2010 amounts have been reclassified to conform with the fiscal 2012 presentation.
(b)
Access equipment intersegment sales are comprised of assembly of M-ATV crew capsules and complete vehicles for the defense segment. The access equipment segment invoices the defense segment for work under this contract. These sales are eliminated in consolidation.

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Operating income (loss) from continuing operations:
 

 
 

 
 

Access equipment
$
229.2

 
$
65.3

 
$
97.3

Defense
236.5

 
543.0

 
1,320.7

Fire & emergency (a)
(12.9
)
 
(1.1
)
 
88.3

Commercial (b)
32.1

 
3.9

 
19.4

Corporate
(119.1
)
 
(107.1
)
 
(99.0
)
Intersegment eliminations
0.2

 
4.0

 
(1.9
)
Consolidated
366.0

 
508.0

 
1,424.8

Interest expense net of interest income
(74.1
)
 
(86.0
)
 
(184.1
)
Miscellaneous other income (expense)
(5.2
)
 
1.6

 
1.0

Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
$
286.7

 
$
423.6

 
$
1,241.7

_________________________
(a)
Fiscal 2011 results include non-cash goodwill and long-lived asset impairment charges of $2.0 million.
(b)
Fiscal 2010 results include non-cash goodwill and long-lived asset impairment charges of $2.3 million.

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Depreciation and amortization: (a)
 

 
 

 
 

Access equipment
$
71.5

 
$
84.1

 
$
95.4

Defense
19.3

 
26.7

 
17.6

Fire & emergency
13.5

 
13.0

 
16.2

Commercial
15.0

 
15.4

 
15.1

Corporate (b)
11.6

 
5.2

 
28.6

Consolidated
$
130.9

 
$
144.4

 
$
172.9

 
 
 
 
 
 
Capital expenditures:
 

 
 

 
 

Access equipment (c)
$
28.3

 
$
26.0

 
$
24.7

Defense
16.0

 
36.4

 
48.0

Fire & emergency
7.3

 
17.7

 
10.0

Commercial
4.8

 
5.9

 
6.8

Corporate
7.9

 
0.2

 
—

Consolidated
$
64.3

 
$
86.2

 
$
89.5

_________________________
(a)
Includes $0.6 million, $1.8 million and $4.8 million in fiscal 2012, 2011 and 2010, respectively, related to discontinued operations.
(b)
Includes $2.3 million, $0.1 million and $20.4 million in fiscal 2012, 2011 and 2010, respectively, related to the write-off of deferred financing fees due to the early extinguishment of the related debt.
(c)
Capital expenditures include both the purchase of property, plant and equipment and equipment held for rental.
 
 
September 30,
 
2012

2011

2010
Identifiable assets:
 

 
 

 
 

Access equipment:
 

 
 

 
 

U.S.
$
1,754.6

 
$
1,779.8

 
$
1,766.5

Europe (a)
684.2

 
694.0

 
794.0

Rest of the world
283.1

 
248.9

 
186.7

Total access equipment
2,721.9

 
2,722.7

 
2,747.2

Defense - U.S. (a)
684.5

 
762.3

 
876.4

Fire & emergency:
 

 
 

 
 

U.S.
534.0

 
518.9

 
529.9

Europe
—

 
12.9

 
15.6

Total fire & emergency
534.0

 
531.8

 
545.5

Commercial:
 

 
 

 
 

U.S.
304.5

 
321.4

 
316.4

Rest of the world (a)
37.0

 
41.5

 
38.7

Total commercial
341.5

 
362.9

 
355.1

Corporate:
 

 
 

 
 

U.S. (b)
658.1

 
441.2

 
183.1

Rest of the world
7.8

 
6.0

 
1.3

Total corporate
665.9

 
447.2

 
184.4

Consolidated
$
4,947.8

 
$
4,826.9

 
$
4,708.6

_________________________
(a)
Includes investments in unconsolidated affiliates.
(b)
Primarily includes cash and short-term investments.

The following table presents net sales by geographic region based on product shipment destination (in millions):

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Net sales:
 

 
 

 
 

United States
$
6,397.0

 
$
6,275.4

 
$
8,873.1

Other North America
248.3

 
179.7

 
110.3

Europe, Africa and Middle East
974.9

 
695.1

 
497.0

Rest of the world
560.7

 
417.3

 
340.2

Consolidated
$
8,180.9

 
$
7,567.5

 
$
9,820.6

Separate Financial Information of Subsidiary Guarantors of Indebtedness
Separate Financial Information of Subsidiary Guarantors of Indebtedness
Separate Financial Information of Subsidiary Guarantors of Indebtedness
 
The Senior Notes are jointly, severally and unconditionally guaranteed on a senior unsecured basis by all of the Company’s existing and future subsidiaries that from time to time guarantee obligations under the Company’s senior credit facility, with certain exceptions (the “Guarantors”). The following condensed supplemental consolidating financial information reflects the summarized financial information of Oshkosh, the Guarantors on a combined basis and Oshkosh’s non-guarantor subsidiaries on a combined basis (in millions):
 
Condensed Consolidating Statement of Income
For the Year Ended September 30, 2012
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net sales
$
4,100.8

 
$
3,419.0

 
$
921.3

 
$
(260.2
)
 
$
8,180.9

Cost of sales
3,743.7

 
2,923.2

 
783.4

 
(260.4
)
 
7,189.9

Gross income
357.1

 
495.8

 
137.9

 
0.2

 
991.0

Selling, general and administrative expenses
238.4

 
295.8

 
33.1

 
—

 
567.3

Amortization of purchased intangibles
0.3

 
39.8

 
17.6

 
—

 
57.7

Intangible asset impairment charges
—

 
—

 
—

 
—

 
—

Operating income
118.4

 
160.2

 
87.2

 
0.2

 
366.0

Interest expense
(197.4
)
 
(75.5
)
 
(3.9
)
 
200.8

 
(76.0
)
Interest income
2.3

 
28.1

 
172.3

 
(200.8
)
 
1.9

Miscellaneous, net
18.2

 
(101.7
)
 
78.3

 
—

 
(5.2
)
Income (loss) from continuing operations before income taxes
(58.5
)
 
11.1

 
333.9

 
0.2

 
286.7

Provision for (benefit from) income taxes
(11.1
)
 
1.3

 
67.2

 
—

 
57.4

Income (loss) from continuing operations before equity in earnings (losses) of affiliates
(47.4
)
 
9.8

 
266.7

 
0.2

 
229.3

Equity in earnings (losses) of consolidated subsidiaries
272.5

 
110.0

 
32.1

 
(414.6
)
 
—

Equity in earnings (losses) of unconsolidated affiliates
(0.4
)
 
—

 
2.7

 
—

 
2.3

Income (loss) from continuing operations
224.7

 
119.8

 
301.5

 
(414.4
)
 
231.6

Discontinued operations, net of tax
6.1

 
(9.9
)
 
4.1

 
—

 
0.3

Net income (loss)
230.8

 
109.9

 
305.6

 
(414.4
)
 
231.9

Net income attributable to the noncontrolling interest
—

 
—

 
(1.1
)
 
—

 
(1.1
)
Net income (loss) attributable to Oshkosh Corporation
$
230.8

 
$
109.9

 
$
304.5

 
$
(414.4
)
 
$
230.8

 
Condensed Consolidating Statement of Income
For the Year Ended September 30, 2011
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net sales
$
4,540.2

 
$
2,409.4

 
$
875.9

 
$
(258.0
)
 
$
7,567.5

Cost of sales
3,873.3

 
2,106.5

 
771.6

 
(262.2
)
 
6,489.2

Gross income
666.9

 
302.9

 
104.3

 
4.2

 
1,078.3

Selling, general and administrative expenses
212.0

 
181.8

 
115.2

 
—

 
509.0

Amortization of purchased intangibles
0.1

 
39.8

 
19.4

 
—

 
59.3

Intangible asset impairment charges
—

 
—

 
2.0

 
—

 
2.0

Operating income (loss)
454.8

 
81.3

 
(32.3
)
 
4.2

 
508.0

Interest expense
(200.2
)
 
(82.2
)
 
(3.9
)
 
195.6

 
(90.7
)
Interest income
2.9

 
26.4

 
171.0

 
(195.6
)
 
4.7

Miscellaneous, net
10.7

 
(120.5
)
 
111.4

 
—

 
1.6

Income (loss) from continuing operations before income taxes
268.2

 
(95.0
)
 
246.2

 
4.2

 
423.6

Provision for (benefit from) income taxes
93.9

 
(30.0
)
 
79.8

 
1.4

 
145.1

Income (loss) from continuing operations before equity in earnings (losses) of affiliates
174.3

 
(65.0
)
 
166.4

 
2.8

 
278.5

Equity in earnings (losses) of consolidated subsidiaries
99.2

 
56.0

 
(52.5
)
 
(102.7
)
 
—

Equity in earnings (losses) of unconsolidated affiliates
(0.1
)
 
—

 
0.6

 
—

 
0.5

Income (loss) from continuing operations
273.4

 
(9.0
)
 
114.5

 
(99.9
)
 
279.0

Discontinued operations, net of tax
—

 
—

 
(5.6
)
 
—

 
(5.6
)
Net income (loss)
273.4

 
(9.0
)
 
108.9

 
(99.9
)
 
273.4

Net income attributable to the noncontrolling interest
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to Oshkosh Corporation
$
273.4

 
$
(9.0
)
 
$
108.9

 
$
(99.9
)
 
$
273.4

 
Condensed Consolidating Statement of Income
For the Year Ended September 30, 2010
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net sales
$
7,341.9

 
$
3,559.1

 
$
813.6

 
$
(1,894.0
)
 
$
9,820.6

Cost of sales
5,892.1

 
3,119.5

 
731.0

 
(1,892.0
)
 
7,850.6

Gross income
1,449.8

 
439.6

 
82.6

 
(2.0
)
 
1,970.0

Selling, general and administrative expenses
196.9

 
164.4

 
122.6

 
—

 
483.9

Amortization of purchased intangibles
—

 
40.2

 
18.8

 
—

 
59.0

Intangible asset impairment charges
—

 
—

 
2.3

 
—

 
2.3

Operating income (loss)
1,252.9

 
235.0

 
(61.1
)
 
(2.0
)
 
1,424.8

Interest expense
(276.4
)
 
(170.6
)
 
(2.5
)
 
262.4

 
(187.1
)
Interest income
2.4

 
18.6

 
244.4

 
(262.4
)
 
3.0

Miscellaneous, net
12.7

 
(94.9
)
 
83.2

 
—

 
1.0

Income (loss) from continuing operations before income taxes
991.6

 
(11.9
)
 
264.0

 
(2.0
)
 
1,241.7

Provision for (benefit from) income taxes
328.4

 
(1.5
)
 
95.2

 
(0.7
)
 
421.4

Income (loss) from continuing operations before equity in earnings (losses) of affiliates
663.2

 
(10.4
)
 
168.8

 
(1.3
)
 
820.3

Equity in earnings (losses) of consolidated subsidiaries
125.4

 
(2.4
)
 
(37.9
)
 
(85.1
)
 
—

Equity in earnings (losses) of unconsolidated affiliates
—

 
—

 
(4.3
)
 
—

 
(4.3
)
Income (loss) from continuing operations
788.6

 
(12.8
)
 
126.6

 
(86.4
)
 
816.0

Discontinued operations, net of tax
1.4

 
—

 
(27.4
)
 
—

 
(26.0
)
Net income (loss)
790.0

 
(12.8
)
 
99.2

 
(86.4
)
 
790.0

Net income attributable to the noncontrolling interest
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to Oshkosh Corporation
$
790.0

 
$
(12.8
)
 
$
99.2

 
$
(86.4
)
 
$
790.0


 
Condensed Consolidating Balance Sheet
As of September 30, 2012
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Assets
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
500.0

 
$
5.5

 
$
35.2

 
$
—

 
$
540.7

Receivables, net
388.0

 
487.5

 
177.3

 
(34.2
)
 
1,018.6

Inventories, net
284.3

 
415.7

 
239.3

 
(1.8
)
 
937.5

Other current assets
129.2

 
47.9

 
20.6

 
—

 
197.7

Total current assets
1,301.5

 
956.6

 
472.4

 
(36.0
)
 
2,694.5

Investment in and advances to consolidated subsidiaries
2,358.1

 
(1,182.9
)
 
3,235.8

 
(4,411.0
)
 
—

Intangible assets, net
2.5

 
1,110.4

 
696.3

 
—

 
1,809.2

Other long-term assets
154.7

 
156.8

 
132.6

 
—

 
444.1

Total assets
$
3,816.8

 
$
1,040.9

 
$
4,537.1

 
$
(4,447.0
)
 
$
4,947.8

 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable
$
326.2

 
$
288.9

 
$
96.7

 
$
(28.5
)
 
$
683.3

Customer advances
315.4

 
190.5

 
4.5

 
—

 
510.4

Other current liabilities
213.6

 
220.2

 
84.5

 
(7.5
)
 
510.8

Total current liabilities
855.2

 
699.6

 
185.7

 
(36.0
)
 
1,704.5

Long-term debt, less current maturities
955.0

 
—

 
—

 
—

 
955.0

Other long-term liabilities
153.1

 
137.3

 
144.4

 
—

 
434.8

Equity:
 

 
 

 
 

 
 

 


Oshkosh Corporation shareholders’ equity
1,853.5

 
204.0

 
4,207.0

 
(4,411.0
)
 
1,853.5

Noncontrolling interest
—

 
—

 
—

 
—

 
—

Total equity
1,853.5

 
204.0

 
4,207.0

 
(4,411.0
)
 
1,853.5

Total liabilities and equity
$
3,816.8

 
$
1,040.9

 
$
4,537.1

 
$
(4,447.0
)
 
$
4,947.8


Condensed Consolidating Balance Sheet
As of September 30, 2011
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Assets
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
376.3

 
$
13.5

 
$
38.7

 
$
—

 
$
428.5

Receivables, net
525.8

 
521.4

 
135.8

 
(93.9
)
 
1,089.1

Inventories, net
194.0

 
336.8

 
257.9

 
(1.9
)
 
786.8

Other current assets
86.0

 
34.8

 
29.4

 
—

 
150.2

Total current assets
1,182.1

 
906.5

 
461.8

 
(95.8
)
 
2,454.6

Investment in and advances to consolidated subsidiaries
2,506.5

 
(1,402.6
)
 
2,902.4

 
(4,006.3
)
 
—

Intangible assets, net
2.7

 
1,131.4

 
746.1

 
—

 
1,880.2

Other long-term assets
167.4

 
156.6

 
168.1

 
—

 
492.1

Total assets
$
3,858.7

 
$
791.9

 
$
4,278.4

 
$
(4,102.1
)
 
$
4,826.9

 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable
$
498.6

 
$
298.7

 
$
61.3

 
$
(89.7
)
 
$
768.9

Customer advances
334.8

 
120.2

 
13.6

 
—

 
468.6

Other current liabilities
208.3

 
167.1

 
85.0

 
(6.1
)
 
454.3

Total current liabilities
1,041.7

 
586.0

 
159.9

 
(95.8
)
 
1,691.8

Long-term debt, less current maturities
1,020.0

 
—

 
—

 
—

 
1,020.0

Other long-term liabilities
200.4

 
172.4

 
145.7

 
—

 
518.5

Equity:
 

 
 

 
 

 
 

 


Oshkosh Corporation shareholders’ equity
1,596.5

 
33.5

 
3,972.7

 
(4,006.2
)
 
1,596.5

Noncontrolling interest
0.1

 
—

 
0.1

 
(0.1
)
 
0.1

Total equity
1,596.6

 
33.5

 
3,972.8

 
(4,006.3
)
 
1,596.6

Total liabilities and equity
$
3,858.7

 
$
791.9

 
$
4,278.4

 
$
(4,102.1
)
 
$
4,826.9


 
Condensed Consolidating Statement of Cash Flows
For the Year Ended September 30, 2012
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net cash provided (used) by operating activities
$
(143.4
)
 
$
122.2

 
$
289.5

 
$
—

 
$
268.3

 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

Additions to property, plant and equipment
(24.5
)
 
(22.7
)
 
(8.7
)
 
—

 
(55.9
)
Additions to equipment held for rental
—

 
—

 
(8.4
)
 
—

 
(8.4
)
Proceeds from sale of equity method investments
—

 
—

 
8.7

 
—

 
8.7

Intercompany investing
405.3

 
(90.6
)
 
(288.3
)
 
(26.4
)
 
—

Other investing activities
5.0

 
8.6

 
0.2

 
—

 
13.8

Net cash provided (used) by investing activities
385.8

 
(104.7
)
 
(296.5
)
 
(26.4
)
 
(41.8
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

Repayment of long-term debt
(105.0
)
 
(0.1
)
 
—

 
—

 
(105.1
)
Repurchase of Common Stock
(13.3
)
 
—

 
—

 
—

 
(13.3
)
Debt issuance/amendment costs
(3.1
)
 
—

 
—

 
—

 
(3.1
)
Intercompany financing
(1.3
)
 
(26.0
)
 
0.9

 
26.4

 
—

Other financing activities
4.0

 
—

 
0.2

 
—

 
4.2

Net cash provided (used) by financing activities
(118.7
)
 
(26.1
)
 
1.1

 
26.4

 
(117.3
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
—

 
0.6

 
2.4

 
—

 
3.0

Increase (decrease) in cash and cash equivalents
123.7

 
(8.0
)
 
(3.5
)
 
—

 
112.2

Cash and cash equivalents at beginning of year
376.3

 
13.5

 
38.7

 
—

 
428.5

Cash and cash equivalents at end of year
$
500.0

 
$
5.5

 
$
35.2

 
$
—

 
$
540.7

 
Condensed Consolidating Statement of Cash Flows
For the Year Ended September 30, 2011
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net cash provided (used) by operating activities
$
259.9

 
$
(35.5
)
 
$
163.3

 
$
—

 
$
387.7

 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

Additions to property, plant and equipment
(42.2
)
 
(27.4
)
 
(12.7
)
 
—

 
(82.3
)
Additions to equipment held for rental
—

 
—

 
(3.9
)
 
—

 
(3.9
)
Intercompany investing
191.9

 
100.4

 
(283.5
)
 
(8.8
)
 
—

Other investing activities
(3.0
)
 
0.8

 
20.1

 
—

 
17.9

Net cash provided (used) by investing activities
146.7

 
73.8

 
(280.0
)
 
(8.8
)
 
(68.3
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

Repayment of long-term debt
(91.1
)
 
(0.3
)
 
—

 
—

 
(91.4
)
Net borrowings under revolving credit facilities
(150.0
)
 
—

 
—

 
—

 
(150.0
)
Debt issuance/amendment costs
(0.1
)
 
—

 
—

 
—

 
(0.1
)
Intercompany financing
(1.3
)
 
(26.0
)
 
18.5

 
8.8

 
—

Other financing activities
10.0

 
—

 
—

 
—

 
10.0

Net cash provided (used) by financing activities
(232.5
)
 
(26.3
)
 
18.5

 
8.8

 
(231.5
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
—

 
(1.0
)
 
2.6

 
—

 
1.6

Increase (decrease) in cash and cash equivalents
174.1

 
11.0

 
(95.6
)
 
—

 
89.5

Cash and cash equivalents at beginning of year
202.2

 
2.5

 
134.3

 
—

 
339.0

Cash and cash equivalents at end of year
$
376.3

 
$
13.5

 
$
38.7

 
$
—

 
$
428.5

 
Condensed Consolidating Statement of Cash Flows
For the Year Ended September 30, 2010
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net cash provided (used) by operating activities
$
379.2

 
$
17.9

 
$
222.6

 
$
—

 
$
619.7

 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

Additions to property, plant and equipment
(56.5
)
 
(6.7
)
 
(20.0
)
 
—

 
(83.2
)
Additions to equipment held for rental
—

 
—

 
(6.3
)
 
—

 
(6.3
)
Intercompany investing
262.2

 
39.8

 
(253.9
)
 
(48.1
)
 
—

Other investing activities
—

 
(7.8
)
 
13.4

 
—

 
5.6

Net cash provided (used) by investing activities
205.7

 
25.3

 
(266.8
)
 
(48.1
)
 
(83.9
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

Repayment of long-term debt
(2,020.4
)
 
(0.3
)
 
(0.2
)
 
—

 
(2,020.9
)
Net borrowings under revolving credit facilities
150.0

 
—

 
—

 
—

 
150.0

Proceeds from issuance of long term debt
1,150.0

 
—

 
—

 
—

 
1,150.0

Debt issuance/amendment costs
(26.3
)
 
—

 
—

 
—

 
(26.3
)
Intercompany financing
(1.3
)
 
(46.0
)
 
(0.8
)
 
48.1

 
—

Other financing activities
24.7

 
—

 
—

 
—

 
24.7

Net cash provided (used) by financing activities
(723.3
)
 
(46.3
)
 
(1.0
)
 
48.1

 
(722.5
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
—

 
—

 
(4.7
)
 
—

 
(4.7
)
Increase (decrease) in cash and cash equivalents
(138.4
)
 
(3.1
)
 
(49.9
)
 
—

 
(191.4
)
Cash and cash equivalents at beginning of year
340.6

 
5.6

 
184.2

 
—

 
530.4

Cash and cash equivalents at end of year
$
202.2

 
$
2.5

 
$
134.3

 
$
—

 
$
339.0

Unaudited Quarterly Results
Unaudited Quarterly Results
Unaudited Quarterly Results

The unaudited quarterly results below have been revised to exclude from continuing operations the results of the Company's mobile medical trailer business, which was reclassified to discontinued operations in fiscal 2012 for all periods presented (in millions, except per share amounts):
 
Fiscal Year Ended September 30, 2012
 
4th Quarter (a)
 
3rd Quarter
 
2nd Quarter
 
1st Quarter
Net sales
$
2,061.8

 
$
2,171.2

 
$
2,072.2

 
$
1,875.7

Gross income
258.0

 
270.9

 
240.6

 
221.5

Operating income
89.2

 
122.9

 
78.5

 
75.4

Net income
78.9

 
75.7

 
38.0

 
39.3

 
 
 
 
 
 
 
 
Net income from continuing operations
$
77.6

 
$
74.7

 
$
39.2

 
$
39.0

Less: net earnings allocated to participating securities
(0.2
)
 
(0.2
)
 
(0.1
)
 
(0.1
)
Net income available to Oshkosh Corporation common shareholders
$
77.4

 
$
74.5

 
$
39.1

 
$
38.9

 
 
 
 
 
 
 
 
Net income (loss) from discontinued operations
$
1.3

 
$
1.0

 
$
(1.9
)
 
$
(0.1
)
 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-basic:
 

 
 

 
 

 
 

From continuing operations
$
0.85

 
$
0.82

 
$
0.43

 
$
0.43

From discontinued operations
0.01

 
0.01

 
(0.02
)
 
(0.01
)
 
$
0.86

 
$
0.83

 
$
0.41

 
$
0.42

 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-diluted:
 

 
 

 
 

 
 

From continuing operations
$
0.85

 
$
0.81

 
$
0.43

 
$
0.43

From discontinued operations
0.01

 
0.01

 
(0.02
)
 
(0.01
)
 
$
0.86

 
$
0.82

 
$
0.41

 
$
0.42

 
 
 
 
 
 
 
 
Common Stock per share dividends
$
—

 
$
—

 
$
—

 
$
—


(a) 
The fourth quarter of 2012 was impacted by: (1) a $7.8 million change in estimate to increase revenue ($5.0 million, after-tax) resulting from the definitization of contracts in the defense segment (See Note 4 of the Notes to Consolidated Financial Statements), (2) a $7.0 million increase to selling, general and administrative expenses ($4.5 million, after-tax) resulting from the correction of a prior period error in the valuation of performance shares (See Note 17 of the Notes to Consolidated Financial Statements), (3) a $3.4 million increase to selling, general and administrative expenses ($2.2 million, after-tax) resulting from the curtailment of pension and other postretirement benefit plans (See Note 19 of the Notes to Consolidated Financial Statements), and (4) a decrease in income tax expense of $5.7 million related to the correction of deferred tax assets (See Note 20 of the Notes to Consolidated Financial Statements). Correction adjustments were not material to any individual prior period or the current period and, accordingly, the prior period results have not been adjusted.

 
Fiscal Year Ended September 30, 2011
 
4th Quarter
 
3rd Quarter
 
2nd Quarter
 
1st Quarter
Net sales
$
2,110.0

 
$
2,017.6

 
$
1,743.0

 
$
1,696.9

Gross income
217.4

 
273.1

 
280.2

 
307.6

Operating income
77.1

 
128.5

 
132.9

 
169.5

Net income
38.0

 
68.6

 
67.7

 
99.0

 
 
 
 
 
 
 
 
Net income from continuing operations
$
40.3

 
$
70.2

 
$
68.3

 
$
100.2

Less: net earnings allocated to participating securities
(0.1
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
Net income available to Oshkosh Corporation common shareholders
$
40.2

 
$
70.1

 
$
68.2

 
$
100.1

 
 
 
 
 
 
 
 
Net loss from discontinued operations
$
(2.8
)
 
$
(1.8
)
 
$
(0.4
)
 
$
(0.6
)
 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-basic:
 

 
 

 
 

 
 

From continuing operations
$
0.44

 
$
0.77

 
$
0.76

 
$
1.11

From discontinued operations
(0.03
)
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
$
0.41

 
$
0.75

 
$
0.75

 
$
1.10

 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-diluted:
 

 
 

 
 

 
 

From continuing operations
$
0.44

 
$
0.77

 
$
0.75

 
$
1.10

From discontinued operations
(0.03
)
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
$
0.41

 
$
0.75

 
$
0.74

 
$
1.09

 
 
 
 
 
 
 
 
Common Stock per share dividends
$
—

 
$
—

 
$
—

 
$
—

Subsequent Events
Subsequent Events
Subsequent Events

On October 17, 2012, Mr. Carl Icahn and related entities (the “Icahn Entities”) commenced an unsolicited tender offer for “any and all” issued and outstanding shares of the Company's Common Stock for $32.50 per share in cash (the “Offer”). On October 26, 2012, the Icahn Entities also submitted to the Company a notice to nominate a slate of candidates to replace the entire Board of Directors of the Company at the Company's 2013 annual meeting of shareholders. The Company's Board of Directors carefully reviewed the Offer, in consultation with the Company's financial and legal advisors, and unanimously determined that the Offer is inadequate, undervalues the Company and is not in the best interests of the Company and its shareholders and recommended that the Company's shareholders reject the Offer and not tender their shares into the Offer. The Company expects to incur costs, which could be significant, in connection with the Offer and threatened proxy contest.

Upon the occurrence of "change of control" events specified in the indentures for our Senior Notes, the Company is required to make an offer to purchase the outstanding notes under such indentures at 101% of the principal amount tendered, together with accrued and unpaid interest within 60 days following a change of control. "Change of control" under the indenture is generally defined to include, among other things: (1) the acquisition by a person or group of a least 50% of the Company's Common Stock, (b) the Company sells all or substantially all of its assets to a person other than a restricted subsidiary of the Company (as defined in the indenture), or (c) replacement of a majority of the members of the Company's Board of Directors by persons who were not nominated by its current directors during any two consecutive years.

Under the Company's Credit Agreement, a change of control would result in an event of default, which would allow the Company's lenders to accelerate the debt owed to them. Under the Credit Agreement, a "change of control" is generally defined to include, among other things: (a) the acquisition by a person or group of at least 30% of the Company's Common Stock, (b) the Company sells all or substantially all of its assets to any person, or (c) replacement of a majority of the members of the Company's Board of Directors by persons who were not nominated by its current directors during the previous 12 consecutive months.

On October 25, 2012, the Company's Board of Directors adopted a shareholder rights plan (the "Rights Plan") and declared a dividend of one preferred stock purchase right (a “right”) on each outstanding share of the Company's Common Stock to shareholders of record at the close of business on November 5, 2012. Pursuant to the Rights Plan, each share of Common Stock of the Company has associated with it one right. Each right entitles the holder to purchase from the Company a unit consisting of one one-thousandth of a share of a new series of preferred stock of the Company for $75.00. The rights generally will become exercisable only if a person or group acquires beneficial ownership of 10% (15% in the case of a “13G Institutional Investor” as defined in the Rights Plan) or more of the Company's Common Stock. In that situation, each holder of a right (other than the acquiror) will be entitled to purchase, upon payment of the exercise price of $75.00, Common Stock of the Company having a market value of twice the exercise price of the right. The rights are redeemable for $0.001 per right at any time until the tenth business day following the first public announcement of the acquisition of beneficial ownership of 10% (15% in the case of a “13G Institutional Investor”) or more of the Company's Common Stock. The Rights Plan will expire on October 25, 2013, unless such date is extended or the rights are earlier redeemed, exchanged or terminated.
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
OSHKOSH CORPORATION
VALUATION AND QUALIFYING ACCOUNTS

Allowance for Doubtful Accounts
Years Ended September 30, 2012, 2011 and 2010
(In millions)
 
Fiscal
Year
 
Balance at
Beginning of
Year
 
Additions
Charged to
Expense
 
Reductions*
 
Balance at
End of Year
2010
 
$
42.0

 
$
16.6

 
$
(16.6
)
 
$
42.0

 
 
 
 
 
 
 
 
 
2011
 
$
42.0

 
$
2.0

 
$
(14.5
)
 
$
29.5

 
 
 
 
 
 
 
 
 
2012
 
$
29.5

 
$
(2.3
)
 
$
(9.2
)
 
$
18.0

_________________________
*
Represents amounts written off to the reserve, net of recoveries and foreign currency translation adjustments. Fiscal 2010 includes a $1.9 million reduction related to the disposition of BAI and fiscal 2012 includes a $0.1 million reduction related to the disposition of Oshkosh Specialty Vehicles.
Summary of Significant Accounting Policies (Policies)
Principles of Consolidation and Presentation 
Principles of Consolidation and Presentation — The consolidated financial statements include the accounts of Oshkosh and all of its majority-owned or controlled subsidiaries and are prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. The Company accounts for its 50% voting interest in RiRent, its 49% interest in Mezcladores and its 45% interest in McNeilus Brazil under the equity method.
Use of Estimates 
Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition 
Revenue Recognition — The Company recognizes revenue on equipment and parts sales when contract terms are met, collectability is reasonably assured and a product is shipped or risk of ownership has been transferred to and accepted by the customer. Revenue from service agreements is recognized as earned when services have been rendered. Appropriate provisions are made for discounts, returns and sales allowances. Sales are recorded net of amounts invoiced for taxes imposed on the customer such as excise or value-added taxes.
 
Sales to the U.S. government of non-commercial whole goods manufactured to the government’s specifications are recognized using the units-of-delivery measure under the percentage-of-completion accounting method as units are accepted by the government. The Company invoices the government as the units are formally accepted. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods when the applicable revenue recognition criteria have been met. Due to a shortage in tires at one of the Company's suppliers, the defense segment was unable to complete production of certain vehicles sufficiently to recognize revenue at September 30, 2012 and has deferred revenue on these vehicles. Revenue will be recognized once tires are obtained and added to the defense vehicles such that the earnings process is complete.

The Company includes amounts representing contract change orders, claims or other items in sales only when they can be reliably estimated and realization is probable. The Company charges anticipated losses on contracts or programs in progress to earnings when identified. Bid and proposal costs are expensed as incurred.
Shipping and Handling Fees and Costs 
Shipping and Handling Fees and Costs — Revenue received from shipping and handling fees is reflected in net sales. Shipping and handling fee revenue was not significant for all periods presented. Shipping and handling costs are included in cost of sales.
Warranty 
Warranty — Provisions for estimated warranty and other related costs are recorded in cost of sales at the time of sale and are periodically adjusted to reflect actual experience. The amount of warranty liability accrued reflects management’s best estimate of the expected future cost of honoring Company obligations under the warranty plans. Historically, the cost of fulfilling the Company’s warranty obligations has principally involved replacement parts, labor and sometimes travel for any field retrofit campaigns. The Company’s estimates are based on historical experience, the extent of pre-production testing, the number of units involved and the extent of features/components included in product models. Also, each quarter, the Company reviews actual warranty claims experience to determine if there are systemic defects that would require a field campaign.
Research and Development and Similar Costs 
Research and Development and Similar Costs — Except for customer sponsored research and development costs incurred pursuant to contracts, research and development costs are expensed as incurred and included in cost of sales. Research and development costs charged to expense amounted to $109.1 million, $99.9 million and $92.4 million during fiscal 2012, 2011 and 2010, respectively. Customer sponsored research and development costs incurred pursuant to contracts are accounted for as contract costs.
Advertising 
Advertising — Advertising costs are included in selling, general and administrative expense and are expensed as incurred.
Environmental Remediation Costs 
Environmental Remediation Costs — The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. The liabilities are developed based on currently available information and reflect the participation of other potentially responsible parties, depending on the parties’ financial condition and probable contribution. The accruals are recorded at undiscounted amounts and are reflected as liabilities on the accompanying consolidated balance sheets. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. The accruals are adjusted as further information develops or circumstances change.
Stock-based Compensation 
Stock-Based Compensation — The Company recognizes stock-based compensation using the fair value provisions prescribed by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation — Stock Compensation. Accordingly, compensation costs for stock options, restricted stock and performance shares are calculated based on the fair value of the stock-based instrument at the time of grant and are recognized as expense over the vesting period of the stock-based instrument. See Note 17 of the Notes to Consolidated Financial Statements for information regarding the Company’s stock-based incentive plans.
Income Taxes 
Income Taxes — Deferred income taxes are provided to recognize temporary differences between the financial reporting basis and the income tax basis of the Company’s assets and liabilities using currently enacted tax rates and laws. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.
 
The Company evaluates uncertain income tax positions in a two-step process. The first step is recognition, where the Company evaluates whether an individual tax position has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have a less than 50% likelihood of being sustained, zero tax benefit is recorded. For tax positions that have met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The actual benefits ultimately realized may differ from the Company’s estimates. In future periods, changes in facts and circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in results of operations and financial position in the period in which such changes occur.

Approximately 8% of the Company’s cash and cash equivalents at September 30, 2012 was located outside the United States. Income taxes are provided on financial statement earnings of non-U.S. subsidiaries expected to be repatriated. The Company determines annually the amount of undistributed non-U.S. earnings to invest indefinitely in its non-U.S. operations. As a result of anticipated cash requirements in foreign subsidiaries, the Company currently believes that all earnings of non-U.S. subsidiaries will be reinvested indefinitely to finance foreign activities.
Fair Value of Financial Instruments 
Fair Value of Financial Instruments — Based on Company estimates, the carrying amounts of cash equivalents, receivables, accounts payable and accrued liabilities approximated fair value as of September 30, 2012 and 2011.
Cash and Cash Equivalents 
Cash and Cash Equivalents — The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents at September 30, 2012 consisted principally of bank deposits and money market instruments.
Receivables 
Receivables — Receivables consist of amounts billed and currently due from customers and unbilled costs and accrued profits related to revenues on long-term contracts with the U.S. government that have been recognized for accounting purposes but not yet billed to customers. The Company extends credit to customers in the normal course of business and maintains an allowance for estimated losses resulting from the inability or unwillingness of customers to make required payments. The accrual for estimated losses is based on the Company’s historical experience, existing economic conditions and any specific customer collection issues the Company has identified.
Concentration of Credit Risk 
Concentration of Credit Risk — Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, trade accounts receivable and guarantees of certain customers’ obligations under deferred payment contracts and lease purchase agreements.
 
The Company maintains cash and cash equivalents, and other financial instruments, with various major financial institutions. The Company performs periodic evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any institution.
 
Concentration of credit risk with respect to trade accounts and leases receivable is limited due to the large number of customers and their dispersion across many geographic areas. However, a significant amount of trade and lease receivables are with the U.S. government, with rental companies globally, with companies in the ready-mix concrete industry, with municipalities and with several large waste haulers in the United States. The Company continues to monitor credit risk associated with its trade receivables, especially during this period of continued global economic weakness.
Inventories 
Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (“LIFO”) method for 78.6% of the Company’s inventories at September 30, 2012 and 85.4% at September 30, 2011. For the remaining inventories, cost has been determined using the first-in, first-out (“FIFO”) method.
Performance-Based Payments 
Performance-Based Payments — The Company’s contracts with the U.S. Department of Defense (“DoD”) to deliver heavy-payload tactical vehicles (Family of Heavy Tactical Vehicles and Logistic Vehicle System Replacement) and medium-payload tactical vehicles (Family of Medium Tactical Vehicles and Medium Tactical Vehicle Replacement), as well as certain other defense-related contracts, include requirements for “performance-based payments.” The performance-based payment provisions in the contracts require the DoD to pay the Company based on the completion of certain pre-determined events in connection with the production under these contracts. Performance-based payments received are first applied to reduce outstanding receivables for units accepted in accordance with contractual terms, with any remaining amount recorded as an offset to inventory to the extent of related inventory on hand. Amounts received in excess of receivables and inventories are included in liabilities as customer advances.
Property, Plant and Equipment 
Property, Plant and Equipment — Property, plant and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the respective assets using accelerated and straight-line methods. The estimated useful lives range from 10 to 40 years for buildings and improvements, from 4 to 25 years for machinery and equipment and from 3 to 10 years for capitalized software and related costs. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is immaterial for all periods presented. All capitalized interest has been added to the cost of the underlying assets and is amortized over the useful lives of the assets.
Goodwill 
Goodwill — Goodwill reflects the cost of an acquisition in excess of the aggregate fair value assigned to identifiable net assets acquired. Goodwill is not amortized; however, it is assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. The Company performs its annual impairment test in the fourth quarter of its fiscal year. The Company evaluates the recoverability of goodwill by estimating the fair value of the businesses to which the goodwill relates. Estimated cash flows and related goodwill are grouped at the reporting unit level. A reporting unit is an operating segment or, under certain circumstances, a component of an operating segment that constitutes a business. When the fair value of the reporting unit is less than the carrying value of the reporting unit, a further analysis is performed to measure and recognize the amount of the impairment loss, if any. Impairment losses, limited to the carrying value of goodwill, represent the excess of the carrying amount of a reporting unit’s goodwill over the implied fair value of that goodwill. In fiscal 2011 and 2010, the Company recorded non-cash impairment charges of $4.3 million and $16.8 million, respectively, of which $2.3 million and $16.8 million, respectively, related to discontinued operations. See Note 8 of the Notes to Consolidated Financial Statements for a discussion of these charges.
 
In evaluating the recoverability of goodwill, it is necessary to estimate the fair value of the reporting units. The Company evaluates the recoverability of goodwill utilizing the income approach and the market approach. The Company weighted the income approach more heavily (75%) as the income approach uses long-term estimates that consider the expected operating profit of each reporting unit during periods where residential and non-residential construction and other macroeconomic indicators are nearer historical averages. The Company believes the income approach more accurately considers the expected recovery in the U.S. and European construction markets than the market approach. Under the income approach, the Company determines fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Estimated future cash flows are based on the Company’s internal projection models, industry projections and other assumptions deemed reasonable by management. Rates used to discount estimated cash flows correspond to the Company’s cost of capital, adjusted for risk where appropriate, and are dependent upon interest rates at a point in time. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of goodwill impairment. Under the market approach, the Company derives the fair value of its reporting units based on revenue and earnings multiples of comparable publicly-traded companies. It is possible that assumptions underlying the impairment analysis will change in such a manner that impairment in value may occur in the future.
Impairment of Long-Lived Assets 
Impairment of Long-Lived Assets — Property, plant and equipment and amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Non-amortizable trade names are assessed for impairment at least annually and as triggering events or “indicators of potential impairment” occur. If the sum of the expected undiscounted cash flows is less than the carrying value of the related asset or group of assets, a loss is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment.
Floor Plan Notes Payable 
Floor Plan Notes Payable — Floor plan notes payable represent liabilities related to the purchase of commercial vehicle chassis upon which the Company mounts its manufactured vehicle bodies. Floor plan notes payable are non-interest bearing for terms ranging up to 120 days and must be repaid upon the sale of the vehicle to a customer. The Company’s practice is to repay all floor plan notes for which the non-interest bearing period has expired without sale of the vehicle to a customer.
Customer Advances 
Customer Advances — Customer advances include amounts received in advance of the completion of fire & emergency and commercial vehicles. Most of these advances bear interest at variable rates approximating the prime rate. Advances also include any performance-based payments received from the DoD in excess of the value of related inventory. Advances from the DoD are non-interest bearing. See the discussion above regarding performance-based payments.
Accumulated Other Comprehensive Income (Loss) 
Accumulated Other Comprehensive Income (Loss) — Comprehensive income (loss) is a more inclusive financial reporting method that includes disclosure of financial information that historically has not been recognized in the calculation of net income. The Company has chosen to report comprehensive income (loss) and accumulated other comprehensive income (loss), which encompasses net income (loss), cumulative translation adjustments, employee pension and postretirement benefits, and unrealized gains (losses) on derivatives in the Consolidated Statements of Equity.

Foreign Currency Translation 
Foreign Currency Translation — All balance sheet accounts have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Income statement amounts have been translated using the average exchange rate during the period in which the transactions occurred. Resulting translation adjustments are included in “Accumulated other comprehensive income (loss).” Foreign currency transaction gains or losses are included in “Miscellaneous, net” in the Consolidated Statements of Income.
Derivative Financial Instruments 
Derivative Financial Instruments — The Company recognizes all derivative financial instruments, such as foreign exchange contracts, in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Changes in the fair value of derivative financial instruments are either recognized periodically in income or in equity as a component of comprehensive income depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or cash flow hedge. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income along with the portions of the changes in the fair values of the hedged items that relate to the hedged risks. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income, net of deferred income taxes. Changes in fair value of derivatives not qualifying as hedges are reported in income. Cash flows from derivatives that are accounted for as cash flow or fair value hedges are included in the Consolidated Statements of Cash Flows in the same category as the item being hedged.
Recent Accounting Pronouncements 

Recent Accounting Pronouncements — In June 2011, the FASB amended ASC Topic 220, Comprehensive Income, to require all non-owner changes in shareholders’ equity to be presented in either a single continuous statement of comprehensive income or in two separate but consecutive statements. Under this amendment, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. An entity is required to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. An entity will no longer be permitted to present the components of other comprehensive income as part of the statement of equity. The Company will be required to adopt the new presentation requirements as of October 1, 2012. The adoption of the new presentation will not have a material impact on the Company’s financial condition, results of operations or cash flows.
Summary of Significant Accounting Policies (Tables)
Schedule of components of accumulated other comprehensive income (loss)
The components of accumulated other comprehensive income (loss) were as follows (in millions):
 
 
Cumulative
Translation
Adjustments
 
Employee
Pension and
Postretirement
Benefits, Net
of Tax
 
Gains (Losses)
on Derivatives,
Net of Tax
 
Accumulated
Other
Comprehensive
Income (Loss)
Balance at September 30, 2009
$
41.2

 
$
(84.3
)
 
$
(31.6
)
 
$
(74.7
)
Fiscal year change
(26.1
)
 
(12.6
)
 
(5.6
)
 
(44.3
)
Amounts reclassified to income
(0.8
)
 
—

 
26.6

 
25.8

Balance at September 30, 2010
14.3

 
(96.9
)
 
(10.6
)
 
(93.2
)
Fiscal year change
(4.8
)
 
(33.8
)
 
(1.4
)
 
(40.0
)
Amounts reclassified to income
—

 
—

 
10.6

 
10.6

Balance at September 30, 2011
9.5

 
(130.7
)
 
(1.4
)
 
(122.6
)
Fiscal year change
(10.6
)
 
31.1

 
—

 
20.5

Amounts reclassified to income
(0.7
)
 
—

 
1.4

 
0.7

Balance at September 30, 2012
$
(1.8
)
 
$
(99.6
)
 
$
—

 
$
(101.4
)
Discontinued Operations (Tables)
Schedule of operations of discontinued operations
The following amounts have been segregated from continuing operations and reported as discontinued operations in the Consolidated Statements of Income (in millions):
 
 
Fiscal Year Ended
September 30,
 
2012
 
2011
 
2010
Net sales
$
12.4

 
$
17.2

 
$
21.8

Cost of sales
10.4

 
15.8

 
21.8

Gross income
2.0

 
1.4

 
—

Operating expenses:
 
 
 
 
 

Selling, general and administrative
2.9

 
4.2

 
5.9

Amortization of purchased intangibles
0.5

 
1.5

 
1.5

Intangible asset impairment charges
—

 
2.8

 
23.3

Total operating expenses
3.4

 
8.5

 
30.7

Operating loss
(1.4
)
 
(7.1
)
 
(30.7
)
Other expense
—

 
—

 
0.5

Loss before income taxes
(1.4
)
 
(7.1
)
 
(30.2
)
Benefit from income taxes
(6.1
)
 
(1.5
)
 
(7.1
)
Income (loss) from operations, net of tax
4.7

 
(5.6
)
 
(23.1
)
Loss on sale of discontinued operations
(4.4
)
 
—

 
(2.9
)
Income (loss) from discontinued operations, net of tax
$
0.3

 
$
(5.6
)
 
$
(26.0
)
Receivables (Tables)
Schedule of receivables 
Receivables consisted of the following (in millions):

 
September 30,
 
2012
 
2011
U.S. government:
 

 
 

Amounts billed
$
99.2

 
$
318.8

Cost and profits not billed
251.7

 
172.3

 
350.9

 
491.1

Other trade receivables
633.0

 
568.8

Finance receivables
5.2

 
23.6

Notes receivable
24.6

 
33.7

Other receivables
35.6

 
27.4

 
1,049.3

 
1,144.6

Less allowance for doubtful accounts
(18.0
)
 
(29.5
)
 
$
1,031.3

 
$
1,115.1

Classification of receivables in the Consolidated Balance Sheets 
Classification of receivables in the Consolidated Balance Sheets consisted of the following (in millions):
 
 
September 30,
 
2012
 
2011
Current receivables
$
1,018.6

 
$
1,089.1

Long-term receivables
12.7

 
26.0

 
$
1,031.3

 
$
1,115.1

Schedule of finance receivables 
Finance receivables consisted of the following (in millions):
 
 
September 30,
 
2012
 
2011
Finance receivables
$
6.0

 
$
27.9

Less unearned income
(0.8
)
 
(4.3
)
Net finance receivables
5.2

 
23.6

Less allowance for doubtful accounts
(1.4
)
 
(11.5
)
 
$
3.8

 
$
12.1

Schedule of finance and notes receivable aging and accrual status 
Finance and notes receivable aging and accrual status consisted of the following (in millions):
 
 
September 30,
 
Finance Receivables
 
Notes Receivables
 
2012
 
2011
 
2012
 
2011
Aging of receivables that are past due:
 

 
 

 
 

 
 

Greater than 30 days and less than 60 days
$
0.1

 
$
0.5

 
$
—

 
$
—

Greater than 60 days and less than 90 days
—

 
0.1

 
—

 
—

Greater than 90 days
1.3

 
6.5

 
—

 
0.5

 
 
 
 
 
 
 
 
Receivables on nonaccrual status
3.4

 
17.6

 
19.0

 
0.5

Receivables past due 90 days or more and still accruing
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
Receivables subject to general reserves
1.5

 
0.4

 
—

 
8.6

Allowance for doubtful accounts
—

 
—

 
—

 
(0.1
)
Receivables subject to specific reserves
3.7

 
23.2

 
24.6

 
25.1

Allowance for doubtful accounts
(1.4
)
 
(11.5
)
 
(8.0
)
 
(8.8
)
Schedule of changes in the allowance for doubtful accounts 
Changes in the Company’s allowance for doubtful accounts were as follows (in millions):

 
Fiscal Year Ended September 30, 2012
 
Finance
Receivables
 
Notes
Receivable
 
Trade and
Other
Receivables
 
Total
Allowance for doubtful accounts at beginning of year
$
11.5

 
$
8.9

 
$
9.1

 
$
29.5

Provision for doubtful accounts, net of recoveries
(3.4
)
 
(0.4
)
 
1.5

 
(2.3
)
Charge-off of accounts
(6.7
)
 
(0.5
)
 
(1.9
)
 
(9.1
)
Disposition of a business
—

 
—

 
(0.1
)
 
(0.1
)
Foreign currency translation
—

 
—

 
—

 
—

Allowance for doubtful accounts at end of year
$
1.4

 
$
8.0

 
$
8.6

 
$
18.0


 
Fiscal Year Ended September 30, 2011
 
Finance
Receivables
 
Notes
Receivable
 
Trade and
Other
Receivables
 
Total
Allowance for doubtful accounts at beginning of year
$
20.9

 
$
9.4

 
$
11.7

 
$
42.0

Provision for doubtful accounts, net of recoveries
(0.5
)
 
1.9

 
0.6

 
2.0

Charge-off of accounts
(8.9
)
 
(2.5
)
 
(3.1
)
 
(14.5
)
Disposition of a business
—

 
—

 
—

 
—

Foreign currency translation
—

 
0.1

 
(0.1
)
 
—

Allowance for doubtful accounts at end of year
$
11.5

 
$
8.9

 
$
9.1

 
$
29.5

Inventories (Tables)
Schedule of inventory
Inventories consisted of the following (in millions):

 
 
September 30,
 
 
2012
 
2011
Raw materials
$
558.0

 
$
587.4

Partially finished products
318.3

 
377.7

Finished products
371.0

 
237.8

Inventories at FIFO cost
1,247.3

 
1,202.9

Less:
Progress/performance-based payments on U.S. government contracts
(238.0
)
 
(341.7
)
 
Excess of FIFO cost over LIFO cost
(71.8
)
 
(74.4
)
 
 
$
937.5

 
$
786.8

Investments in Unconsolidated Affiliates (Tables)
Schedule of Equity Method Investments
Investments in unconsolidated affiliates are accounted for under the equity method and consisted of the following (in millions):

 
 
September 30,
 
 
2012
 
2011
OMFSP (U.S.)
 
$
—

 
$
13.4

RiRent (The Netherlands)
 
10.5

 
10.9

Other
 
8.3

 
7.5

 
 
$
18.8

 
$
31.8


Property, Plant and Equipment (Tables)
Schedule of property, plant and equipment
Property, plant and equipment consisted of the following (in millions):
 
 
September 30,
 
2012
 
2011
Land and land improvements
$
45.8

 
$
46.2

Buildings
236.3

 
243.8

Machinery and equipment
550.6

 
521.5

Equipment on operating lease to others
23.8

 
23.0

 
856.5

 
834.5

Less accumulated depreciation
(486.6
)
 
(445.8
)
 
$
369.9

 
$
388.7

Goodwill and Purchased Intangible Assets (Tables)
Schedule of changes in goodwill 
The following table presents changes in goodwill during fiscal 2012 and 2011 (in millions):

 
Access
Equipment
 
Fire &
Emergency
 
Commercial
 
Total
Net goodwill at September 30, 2010
$
916.0

 
$
112.2

 
$
21.4

 
$
1,049.6

Impairment
—

 
(4.3
)
 
—

 
(4.3
)
Foreign currency translation
(3.8
)
 
0.1

 
—

 
(3.7
)
Other
—

 
(0.1
)
 
—

 
(0.1
)
Net goodwill at September 30, 2011
912.2

 
107.9

 
21.4

 
1,041.5

Foreign currency translation
(6.1
)
 
—

 
0.2

 
(5.9
)
Deconsolidation of variable interest entity
—

 
(1.8
)
 
—

 
(1.8
)
Net goodwill at September 30, 2012
$
906.1

 
$
106.1

 
$
21.6

 
$
1,033.8

Schedule of company's goodwill allocated to the reportable segments 
The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions):

 
September 30, 2012
 
September 30, 2011
 
Gross
 
Accumulated
Impairment
 
Net
 
Gross
 
Accumulated
Impairment
 
Net
Access Equipment
$
1,838.2

 
$
(932.1
)
 
$
906.1

 
$
1,844.3

 
$
(932.1
)
 
$
912.2

Fire & Emergency
114.3

 
(8.2
)
 
106.1

 
182.1

 
(74.2
)
 
107.9

Commercial
197.5

 
(175.9
)
 
21.6

 
197.3

 
(175.9
)
 
21.4

 
$
2,150.0

 
$
(1,116.2
)
 
$
1,033.8

 
$
2,223.7

 
$
(1,182.2
)
 
$
1,041.5

Schedule of changes in gross purchased intangible assets 
The following two tables present the changes in gross purchased intangible assets during fiscal 2012 and 2011 (in millions):

 
September 30,
2011
 
Disposition
 
Impairment
 
Translation
 
Other
 
September 30,
2012
Amortizable intangible assets:
 

 
 

 
 

 
 

 
 

 
 

Distribution network
$
55.4

 
$
—

 
$
—

 
$
—

 
$
—

 
$
55.4

Non-compete
56.9

 
—

 
—

 
—

 
—

 
56.9

Technology-related
104.8

 
(3.8
)
 
—

 
(0.1
)
 
—

 
100.9

Customer relationships
576.7

 
(8.9
)
 
—

 
(3.4
)
 
(0.6
)
 
563.8

Other
16.5

 
—

 
—

 
0.1

 
—

 
16.6

 
810.3

 
(12.7
)
 
—

 
(3.4
)
 
(0.6
)
 
793.6

Non-amortizable trade names
397.6

 
(1.3
)
 
—

 
(0.1
)
 
—

 
396.2

 
$
1,207.9

 
$
(14.0
)
 
$
—

 
$
(3.5
)
 
$
(0.6
)
 
$
1,189.8


 
September 30,
2010
 
Disposition
 
Impairment
 
Translation
 
Other
 
September 30,
2011
Amortizable intangible assets:
 

 
 

 
 

 
 

 
 

 
 

Distribution network
$
55.4

 
$
—

 
$
—

 
$
—

 
$
—

 
$
55.4

Non-compete
56.3

 
—

 
—

 
—

 
0.6

 
56.9

Technology-related
104.0

 
—

 
—

 
—

 
0.8

 
104.8

Customer relationships
577.2

 
—

 
—

 
(1.9
)
 
1.4

 
576.7

Other
15.7

 
—

 
—

 
0.1

 
0.7

 
16.5

 
808.6

 
—

 
—

 
(1.8
)
 
3.5

 
810.3

Non-amortizable trade names
397.3

 
—

 
(0.5
)
 
—

 
0.8

 
397.6

 
$
1,205.9

 
$
—

 
$
(0.5
)
 
$
(1.8
)
 
$
4.3

 
$
1,207.9

Schedule of purchased intangible assets 
Details of the Company’s total purchased intangible assets were as follows (in millions):

 
September 30, 2012
 
Weighted-
Average
Life
 
Gross
 
Accumulated
Amortization
 
Net
Amortizable intangible assets:
 
 
 

 
 

 
 

Distribution network
39.1
 
$
55.4

 
$
(22.2
)
 
$
33.2

Non-compete
10.5
 
56.9

 
(55.5
)
 
1.4

Technology-related
12.0
 
100.9

 
(58.4
)
 
42.5

Customer relationships
12.7
 
563.8

 
(265.5
)
 
298.3

Other
16.5
 
16.6

 
(12.8
)
 
3.8

 
14.4
 
793.6

 
(414.4
)
 
379.2

Non-amortizable trade names
 
 
396.2

 
—

 
396.2

 
 
 
$
1,189.8

 
$
(414.4
)
 
$
775.4

 
September 30, 2011
 
Weighted-
Average
Life
 
Gross
 
Accumulated
Amortization
 
Net
Amortizable intangible assets:
 
 
 

 
 

 
 

Distribution network
39.1
 
$
55.4

 
$
(20.8
)
 
$
34.6

Non-compete
10.5
 
56.9

 
(53.0
)
 
3.9

Technology-related
11.7
 
104.8

 
(53.3
)
 
51.5

Customer relationships
12.7
 
576.7

 
(229.9
)
 
346.8

Other
16.5
 
16.5

 
(12.2
)
 
4.3

 
14.3
 
810.3

 
(369.2
)
 
441.1

Non-amortizable trade names
 
 
397.6

 
—

 
397.6

 
 
 
$
1,207.9

 
$
(369.2
)
 
$
838.7

Other Long-Term Assets (Tables)
Schedule of other long-term assets
Other long-term assets consisted of the following (in millions):

 
September 30,
 
2012
 
2011
Customer notes receivable
$
18.8

 
$
24.1

Deferred finance costs
17.8

 
21.8

Long-term finance receivables, less current portion
1.4

 
9.4

Other
24.8

 
23.9

 
62.8

 
79.2

Less allowance for doubtful notes receivable
(7.4
)
 
(7.6
)
 
$
55.4

 
$
71.6

Credit Agreements (Tables)
Schedule of debt instruments 
The Company was obligated under the following debt instruments (in millions):

 
September 30,
 
2012
 
2011
Senior Secured Term Loan
$
455.0

 
$
560.0

8¼% Senior notes due March 2017
250.0

 
250.0

8½% Senior notes due March 2020
250.0

 
250.0

Other long-term facilities
—

 
0.1

 
955.0

 
1,060.1

Less current maturities
—

 
(40.1
)
 
$
955.0

 
$
1,020.0

 
 
 
 
Revolving Credit Facility
$
—

 
$
—

Current maturities of long-term debt
—

 
40.1

 
$
—

 
$
40.1

Schedule of required senior secured leverage ratio 
Senior Secured Leverage Ratio: A maximum senior secured leverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated secured indebtedness to the Company’s consolidated EBITDA) of the following:
Fiscal Quarter Ending
 
September 30, 2012
3.00 to 1.0
Thereafter
2.75 to 1.0
Warranties (Tables)
Schedule of changes in warranty liability
Changes in the Company’s warranty liability were as follows (in millions):
 
 
Fiscal Year Ended
September 30,
 
2012
 
2011
Balance at beginning of year
$
75.0

 
$
90.5

Warranty provisions
58.8

 
42.6

Settlements made
(52.8
)
 
(46.8
)
Changes in liability for pre-existing warranties, net
13.7

 
(11.5
)
Disposition of business
(0.1
)
 
—

Foreign currency translation
0.4

 
0.2

Balance at end of year
$
95.0

 
$
75.0

Guarantee Arrangements (Tables)
Schedule of provision for losses on customer guarantees
Changes in the Company’s credit guarantee liability were as follows (in millions):

 
Fiscal Year Ended
September 30,
 
2012
 
2011
Balance at beginning of year
$
6.5

 
$
23.1

Provision for new credit guarantees
1.9

 
0.5

Settlements made
(0.9
)
 
(3.0
)
Changes for pre-existing guarantees, net
(1.4
)
 
(12.7
)
Amortization of previous guarantees
(1.0
)
 
(1.3
)
Foreign currency translation
(0.1
)
 
(0.1
)
Balance at end of year
$
5.0

 
$
6.5

Derivative Financial Instruments and Hedging Activities (Tables)
Schedule of fair values of all open derivative instruments 
Fair Market Value of Financial Instruments — The fair values of all open derivative instruments in the Consolidated Balance Sheets were as follows (in millions):
 
 
September 30, 2012
 
September 30, 2011
 
Other
Current
Assets
 
Other
Current
Liabilities
 
Other
Current
Assets
 
Other
Current
Liabilities
Designated as hedging instruments:
 
 
 
 
 

 
 

Interest rate contracts
$
—

 
$
—

 
$
—

 
$
2.1

 
 
 
 
 
 
 
 
Not designated as hedging instruments:
 
 
 
 
 

 
 

Foreign exchange contracts
0.4

 
—

 
0.8

 
0.2

 
$
0.4

 
$
—

 
$
0.8

 
$
2.3

Schedule of pre-tax effects of derivative instruments 
The pre-tax effects of derivative instruments on the Consolidated Statements of Income consisted of the following (in millions):

 
Classification of
Gains (Losses)
 
Fiscal Year Ended
September 30,
 
 
2012
 
2011
Cash flow hedges:
 
 
 

 
 

Reclassified from other comprehensive income (effective portion):
 
 
 

 
 

Interest rate contracts
Interest expense
 
$
(2.2
)
 
$
(16.6
)
 
 
 
 
 
 
Not designated as hedges:
 
 
 

 
 

Foreign exchange contracts
Miscellaneous, net
 
(5.3
)
 
2.0

 
 
 
$
(7.5
)
 
$
(14.6
)
Fair Value Measurement (Tables)
Schedule of fair values of financial assets and liabilities
As of September 30, 2012, the fair values of the Company’s financial assets and liabilities were as follows (in millions):
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 

 
 

 
 

 
 

Foreign currency exchange derivatives (a)
$
—

 
$
0.4

 
$
—

 
$
0.4

_________________________

(a) 
Based on observable market transactions of forward currency prices.

Stock-Based Compensation (Tables)
Schedule of equity-based compensation plans 
Information related to the Company’s equity-based compensation plans in effect as of September 30, 2012 was as follows:

Plan Category 
 
Number of Securities
to be Issued Upon
Exercise of Outstanding
Options or Vesting of
Performance Share
Awards
 
Weighted-Average
Exercise Price of
Outstanding
Options
 
Number of
Securities Remaining
Available for Future
Issuance Under Equity
Compensation Plans
Equity compensation plans approved by security holders
 
5,364,834

 
$
31.26

 
5,274,940

Equity compensation plans not approved by security holders
 
—

 
n/a

 
—

 
 
5,364,834

 
$
31.26

 
5,274,940

Schedule of stock option activity 
A summary of the Company’s stock option activity for the fiscal years ended September 30, 2012, 2011 and 2010 was as follows: 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
 
Options
 
Weighted-
Average
Exercise
Price
 
Options
 
Weighted-
Average
Exercise
Price
 
Options
 
Weighted-
Average
Exercise
Price
Options outstanding, beginning of year
4,774,714

 
$
30.72

 
5,158,370

 
$
30.32

 
5,330,109

 
$
28.03

Options granted
576,400

 
28.55

 
411,575

 
20.90

 
954,350

 
28.96

Options forfeited
(151,092
)
 
26.76

 
(173,009
)
 
27.22

 
(39,836
)
 
27.46

Options expired
(235,081
)
 
39.26

 
(118,199
)
 
47.46

 
(9,499
)
 
54.12

Options exercised
(286,107
)
 
12.56

 
(504,023
)
 
15.94

 
(1,076,754
)
 
17.66

Options outstanding, end of year
4,678,834

 
$
31.26

 
4,774,714

 
$
30.72

 
5,158,370

 
$
30.32

Options exercisable, end of year
3,620,565

 
$
32.53

 
3,478,310

 
$
32.13

 
2,955,909

 
$
33.49

Schedule of weighted-average assumptions using Black-Scholes valuation model to value stock options 
The Company uses the Black-Scholes valuation model to value stock options utilizing the following weighted-average assumptions:
 
 
 
Fiscal Year Ended September 30,
Options Granted During
 
2012
 
2011
 
2010
Assumptions:
 
 
 
 
 
 
Risk-free interest rate
 
0.74%
 
0.95%
 
1.45%
Expected volatility
 
66.03%
 
63.88%
 
61.98%
Expected dividend yield
 
0.00%
 
0.00%
 
0.00%
Expected term (in years)
 
5.23
 
5.23
 
5.28
Schedule of outstanding stock options 
Stock options outstanding as of September 30, 2012 were as follows (in millions, except share and per share amounts): 
Price Range
 
Number
Outstanding
 
Weighted-Average
Remaining
Contractual
Life (in years)
 
Weighted-Average
Exercise Price
 
Aggregate
Intrinsic
Value
$
7.95

-
$
19.75

 
1,129,808

 
5.4
 
$
14.86

 
$
14.2

$
28.27

-
$
38.46

 
2,378,376

 
4.8
 
30.23

 
—

$
39.91

-
$
54.63

 
1,170,650

 
4.1
 
49.18

 
—

 
 
 
 
4,678,834

 
4.8
 
$
31.26

 
$
14.2

Schedule of exercisable stock options 
Stock options exercisable as of September 30, 2012 were as follows (in millions, except share and per share amounts): 
Price Range
 
Number
Exercisable
 
Weighted-Average
Remaining
Contractual
Life (in years)
 
Weighted-Average
Exercise Price
 
Aggregate
Intrinsic
Value
$
7.95

-
$
19.75

 
894,802

 
5.2
 
$
13.76

 
$
12.2

$
28.27

-
$
38.46

 
1,555,113

 
4.1
 
30.81

 
—

$
39.91

-
$
54.63

 
1,170,650

 
4.1
 
49.18

 
—

 
 
 
 
3,620,565

 
4.4
 
$
32.53

 
$
12.2

Schedule of nonvested stock activity 
A summary of the Company’s nonvested stock activity for the three years ended September 30, 2012 is as follows:
 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
 
Number of
Shares
 
Weighted-
Average
Grant Date
Fair Value
Nonvested, beginning of year
228,615

 
$
23.75

 
128,907

 
$
30.22

 
2,935

 
$
53.40

Granted
514,800

 
27.37

 
166,412

 
21.99

 
141,682

 
30.93

Forfeited
(37,502
)
 
23.04

 
(5,000
)
 
28.73

 
—

 
—

Vested
(136,631
)
 
24.70

 
(61,704
)
 
32.12

 
(15,710
)
 
40.91

Nonvested, end of year
569,282

 
$
26.84

 
228,615

 
$
23.75

 
128,907

 
$
30.22

Schedule of weighted-average assumptions to measure grant date fair values of performance share awards 
The grant date fair values of performance share awards were estimated using a Monte Carlo simulation model utilizing the following weighted-average assumptions: 
 
 
Fiscal Year Ended September 30,
Performance Shares Granted During
 
2012
 
2011
 
2010
Assumptions:
 
 
 
 
 
 
Risk-free interest rate
 
0.37%
 
0.29%
 
0.73%
Expected volatility
 
44.90%
 
76.98%
 
79.86%
Expected term (in years)
 
3.00
 
3.00
 
3.00
Restructuring and Other Charges (Tables)
Schedule of pre-tax restructuring charges 
Pre-tax restructuring charges included in continuing operations for fiscal years ended September 30 were as follows (in millions): 
 
Cost of
Sales
 
Selling,
General and
Administrative
 
Total
Fiscal 2012:
 
 
 

 
 

Access equipment
$
(0.2
)
 
$
(0.1
)
 
$
(0.3
)
Defense
—

 
—

 
—

Fire & emergency
0.2

 
4.3

 
4.5

Commercial
0.1

 
—

 
0.1

 
$
0.1

 
$
4.2

 
$
4.3

 
 
 
 
 
 
Fiscal 2011:
 

 
 

 
 

Access equipment
$
1.0

 
$
0.7

 
$
1.7

Defense
3.7

 
—

 
3.7

Fire & emergency
0.1

 
1.0

 
1.1

Commercial
0.1

 
0.3

 
0.4

 
$
4.9

 
$
2.0

 
$
6.9

Schedule of changes in the restructuring reserves, included within other current liabilities 
Changes in the Company’s restructuring reserves, included within “Other current liabilities” in the Consolidated Balance Sheets, were as follows (in millions): 
 
Employee
Severance and
Termination
Benefits
 
Property,
Plant and
Equipment
Impairment
 
Other
 
Total
Balance at September 30, 2010
$
1.6

 
$
—

 
$
3.2

 
$
4.8

Restructuring provisions
6.0

 
3.4

 
(2.5
)
 
6.9

Utilized - cash
(4.6
)
 
—

 
(0.7
)
 
(5.3
)
Utilized - noncash
—

 
(3.4
)
 
—

 
(3.4
)
Currency
0.6

 
—

 
—

 
0.6

Balance at September 30, 2011
3.6

 
—

 
—

 
3.6

Restructuring provisions
0.7

 
0.9

 
2.7

 
4.3

Utilized - cash
(1.1
)
 
—

 
(0.5
)
 
(1.6
)
Utilized - noncash
—

 
(0.9
)
 
(0.1
)
 
(1.0
)
Currency
(0.4
)
 
—

 
—

 
(0.4
)
Balance at September 30, 2012
$
2.8

 
$
—

 
$
2.1

 
$
4.9

Employee Benefit Plans (Tables)
Schedule of changes in the benefit obligations and plan assets, the funded status of the plans and the amounts recognized in the balance sheet 
The changes in benefit obligations and plan assets, as well as the funded status of the Company’s defined benefit pension plans and postretirement benefit plans, were as follows (in millions):
 
 
 
Postretirement
 
Pension Benefits
 
Health and Other
 
2012
 
2011
 
2012
 
2011
 
 
 
 
 
 
 
 
Accumulated benefit obligation
$
377.7

 
$
321.7

 
$
80.4

 
$
77.7

 
 
 
 
 
 
 
 
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at October 1
$
352.6

 
$
283.6

 
$
77.7

 
$
64.8

Service cost
20.6

 
16.6

 
7.2

 
4.5

Interest cost
16.3

 
13.9

 
3.4

 
3.0

Actuarial loss
32.6

 
33.2

 
2.6

 
6.5

Participant contributions
0.1

 
0.1

 
—

 
—

Plan amendments
—

 
10.9

 
(9.2
)
 
—

Curtailments
(33.7
)
 
—

 
—

 
—

Benefits paid
(11.1
)
 
(5.6
)
 
(1.3
)
 
(1.1
)
Currency translation adjustments
0.5

 
(0.1
)
 
—

 
—

Benefit obligation at September 30
$
377.9

 
$
352.6

 
$
80.4

 
$
77.7

 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at October 1
$
213.9

 
$
192.1

 
$
—

 
$
—

Actual return on plan assets
42.8

 
3.3

 
—

 
—

Company contributions
35.8

 
25.9

 
1.3

 
1.1

Participant contributions
0.1

 
0.1

 
—

 
—

Expenses paid
(1.8
)
 
(1.8
)
 
—

 
—

Benefits paid
(11.1
)
 
(5.6
)
 
(1.3
)
 
(1.1
)
Currency translation adjustments
0.7

 
(0.1
)
 
—

 
—

Fair value of plan assets at September 30
$
280.4

 
$
213.9

 
$
—

 
$
—

Funded status of plan - under funded
$
(97.5
)
 
$
(138.7
)
 
$
(80.4
)
 
$
(77.7
)
 
 
 
 
 
 
 
 
Recognized in consolidated balance sheet at September 30
 
 
 
 
 
 
 
Prepaid benefit cost (long-term asset)
$
4.0

 
$
2.6

 
$
—

 
$
—

Accrued benefit liability (current liability)
(1.4
)
 
(5.2
)
 
(2.5
)
 
(2.8
)
Accrued benefit liability (long-term liability)
(100.1
)
 
(136.1
)
 
(77.9
)
 
(74.9
)
 
$
(97.5
)
 
$
(138.7
)
 
$
(80.4
)
 
$
(77.7
)
Schedule of Weighted-average assumptions 
 
 
 
Postretirement
 
Pension Benefits
 
Health and Other
 
2012
 
2011
 
2012
 
2011
Recognized in accumulated other comprehensive income (loss) as of September 30 (net of taxes)
 

 
 

 
 

 
 

Net actuarial loss
$
(72.9
)
 
$
(96.0
)
 
$
(19.3
)
 
$
(18.5
)
Prior service cost
(13.1
)
 
(16.2
)
 
5.8

 
—

 
$
(86.0
)
 
$
(112.2
)
 
$
(13.5
)
 
$
(18.5
)
Weighted-average assumptions as of September 30


 


 


 


Discount rate
4.24
%
 
4.72
%
 
3.95
%
 
4.45
%
Expected return on plan assets
6.25
%
 
7.00
%
 
n/a

 
n/a

Rate of compensation increase
3.69
%
 
3.73
%
 
n/a

 
n/a

Summary of accumulated benefit obligations in excess of plan assets of pension benefit plans 
Pension benefit plans with accumulated benefit obligations in excess of plan assets consisted of the following as of September 30 (in millions):
 
 
2012
 
2011
Projected benefit obligation
$
361.8

 
$
338.9

Accumulated benefit obligation
361.2

 
308.1

Fair value of plan assets
260.2

 
197.6

Schedule of net periodic benefit cost 
The components of net periodic benefit cost for fiscal years ended September 30 were as follows (in millions):

 
 
Postretirement
 
Pension Benefits
Health and Other
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Components of net periodic benefit cost
 

 
 

 
 

 
 

 
 

 
 

Service cost
$
20.6

 
$
16.6

 
$
13.5

 
$
7.2

 
$
4.5

 
$
4.1

Interest cost
16.3

 
13.9

 
12.4

 
3.4

 
3.0

 
2.8

Expected return on plan assets
(15.6
)
 
(15.9
)
 
(13.0
)
 
—

 
—

 
—

Amortization of prior service cost
2.3

 
1.9

 
2.1

 
—

 
—

 
—

Curtailment
3.4

 
1.5

 
0.6

 
—

 
—

 
—

Amortization of net actuarial loss
7.1

 
5.6

 
4.1

 
1.3

 
1.1

 
0.9

Expenses paid
1.8

 
1.4

 
2.5

 
—

 
—

 
—

Net periodic benefit cost
$
35.9

 
$
25.0

 
$
22.2

 
$
11.9

 
$
8.6

 
$
7.8

 
 
 
 
 
 
 
 
 
 
 
 
Other changes in plan assets and benefit obligation recognized in other comprehensive income
 

 
 

 
 

 
 

 
 

 
 

Net actuarial loss (gain)
$
(26.0
)
 
$
46.2

 
$
16.6

 
$
2.6

 
$
6.5

 
$
3.9

Prior service cost
(0.9
)
 
10.9

 
3.0

 
—

 
—

 
—

Amortization of prior service cost
(4.8
)
 
(1.9
)
 
(2.0
)
 
—

 
—

 
—

Curtailment
(2.3
)
 
—

 
—

 
(9.2
)
 
—

 
—

Amortization of net actuarial gain
(7.1
)
 
(7.1
)
 
(4.7
)
 
(1.3
)
 
(1.1
)
 
(0.9
)
 
$
(41.1
)
 
$
48.1

 
$
12.9

 
$
(7.9
)
 
$
5.4

 
$
3.0

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions
 

 
 

 
 

 
 

 
 

 
 

Discount rate
4.72
%
 
4.75
%
 
5.25
%
 
4.45
%
 
4.75
%
 
5.25
%
Expected return on plan assets
7.00
%
 
7.75
%
 
7.75
%
 
n/a

 
n/a

 
n/a

Rate of compensation increase
3.78
%
 
3.94
%
 
4.29
%
 
n/a

 
n/a

 
n/a

Schedule of pension plan asset and target allocation 
The weighted-average of the Company’s pension plan asset allocations and target allocations at September 30, by asset category, were as follows:

 
Target %
 
2012
 
2011
Asset Category
 
 
 
 
 
Fixed income
30% - 40%
 
39
%
 
43
%
Large-cap growth
25% - 35%
 
30
%
 
30
%
Large-cap value
5% - 15%
 
10
%
 
9
%
Mid-cap value
5% - 15%
 
10
%
 
8
%
Small-cap value
5% - 15%
 
11
%
 
10
%
Venture capital
0% - 5%
 
—
%
 
—
%
 
 
 
100
%
 
100
%

Schedule of fair value of plan assets by major category and level within fair value hierarchy 
The fair value of plan assets by major category and level within the fair value hierarchy was as follows (in millions):

 
Quoted Prices
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
September 30, 2012:
 

 
 

 
 

 
 

Common stocks
 

 
 

 
 

 
 

U.S. companies (a)
$
146.8

 
$
3.7

 
$
—

 
$
150.5

International companies (b)
—

 
17.7

 
—

 
17.7

Government and agency bonds (c)
7.1

 
39.2

 
—

 
46.3

Corporate bonds and notes (e)
—

 
51.5

 
—

 
51.5

Money market funds (f)
14.4

 
—

 
—

 
14.4

 
$
168.3

 
$
112.1

 
$
—

 
$
280.4

 
 
 
 
 
 
 
 
September 30, 2011:
 

 
 

 
 

 
 

Common stocks
 

 
 

 
 

 
 

U.S. companies (a)
$
104.2

 
$
—

 
$
—

 
$
104.2

International companies (b)
—

 
14.6

 
—

 
14.6

Government and agency bonds (c)
3.8

 
35.6

 
—

 
39.4

Municipal bonds (d)
—

 
0.1

 
—

 
0.1

Corporate bonds and notes (e)
—

 
43.8

 
—

 
43.8

Money market funds (f)
11.7

 
—

 
—

 
11.7

Venture capital closely held limited partnership (g)
—

 
—

 
0.1

 
0.1

 
$
119.7

 
$
94.1

 
$
0.1

 
$
213.9

_________________________
(a)
Primarily valued using a market approach based on the quoted market prices of identical instruments that are actively traded on public exchanges.
(b)
Valuation model looks at underlying security "best" price, exchange rate for underlying security's currency against the U.S. Dollar and ratio of underlying security to American depository receipt.
(c)
These investments consist of debt securities issued by the U.S. Treasury, U.S. government agencies and U.S. government-sponsored enterprises and have a variety of structures, coupon rates and maturities. These investments are considered to have low default risk as they are guaranteed by the U.S. government. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades.
(d)
These investments consist of debts issued by municipalities. Most provide a fixed amount of interest income while some investments are zero coupon bonds which receive one payment at maturity. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades.
(e)
These investments consist of debt obligations issued by a variety of private and public corporations. These are investment grade securities which historically have provided a steady stream of income. Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades.
(f)
These investments largely consist of short-term investment funds and are valued using a market approach based on the quoted market prices of identical instruments.
(g)
These investments finance new and rapidly growing companies and do not have readily determinable market values given the specific investment structures involved and the nature of the underlying investments. Valuation is determined by various sources such as issuer, investment manager, etc.
Schedule of estimated future benefit payments 
The Company’s estimated future benefit payments under Company sponsored plans were as follows (in millions):
 
 
 
 
 
 
 
Other
Fiscal Year Ending
 
Pension Benefits
 
Postretirement
September 30,
 
U.S. Plans
 
 
Non-Qualified
 
Benefits
2013
 
$
7.0

 
 
$
1.4

 
$
2.5

2014
 
7.7

 
 
1.4

 
2.7

2015
 
8.5

 
 
1.4

 
2.8

2016
 
9.5

 
 
1.4

 
3.1

2017
 
10.6

 
 
1.4

 
3.7

2018-2022
 
73.3

 
 
8.7

 
23.4

Income Taxes (Tables)
Schedule of pre-tax income (loss) from continuing operations 
Pre-tax income (loss) from continuing operations was taxed in the following jurisdictions (in millions):

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Domestic
$
246.6

 
$
420.8

 
$
1,273.2

Foreign
40.1

 
2.8

 
(31.5
)
 
$
286.7

 
$
423.6

 
$
1,241.7

Schedule of components of provision for (benefit from) income taxes 
Significant components of the provision for income taxes were as follows (in millions):

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Allocated to Income From Continuing Operations Before Equity in Earnings (Losses) of Unconsolidated Affiliates
 

 
 

 
 

Current:
 

 
 

 
 

Federal
$
110.1

 
$
150.5

 
$
468.3

Foreign
3.2

 
0.7

 
7.4

State
4.2

 
3.7

 
14.0

Total current
117.5

 
154.9

 
489.7

Deferred:
 

 
 

 
 

Federal
(59.9
)
 
(14.2
)
 
(57.6
)
Foreign
2.0

 
4.8

 
(9.0
)
State
(2.2
)
 
(0.4
)
 
(1.7
)
Total deferred
(60.1
)
 
(9.8
)
 
(68.3
)
 
$
57.4

 
$
145.1

 
$
421.4

 
 
 
 
 
 
Allocated to Other Comprehensive Income (Loss)
 

 
 

 
 

Deferred federal, state and foreign
$
18.7

 
$
(14.5
)
 
$
10.5

Schedule of reconciliation of income tax computed at U.S. federal statutory tax rates to income tax expense 
The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense was:

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Effective Rate Reconciliation
 

 
 

 
 

U.S. federal tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
Non-deductible intangible asset impairment charges
—

 
0.1

 
—

State income taxes, net
(0.6
)
 
0.8

 
1.0

Foreign taxes
2.4

 
(0.6
)
 
(0.1
)
Tax audit settlements
(4.1
)
 
—

 
(1.2
)
European tax incentive
(1.7
)
 
(0.9
)
 
0.6

Valuation allowance
(2.5
)
 
1.3

 
0.3

Domestic tax credits
(0.3
)
 
(1.5
)
 
(0.1
)
Manufacturing deduction
(3.6
)
 
(1.1
)
 
(1.9
)
Other, net
(4.6
)
 
1.2

 
0.3

 
20.0
 %
 
34.3
 %
 
33.9
 %
Components of deferred income tax assets and liabilities 
Deferred income tax assets and liabilities were comprised of the following (in millions): 
 
September 30,
 
2012
 
2011
Deferred Tax Assets and Liabilities
 

 
 

Deferred tax assets:
 

 
 

Other long-term liabilities
$
105.1

 
$
112.6

Losses and credits
78.2

 
57.4

Accrued warranty
30.4

 
23.8

Other current liabilities
32.4

 
20.8

Payroll-related obligations
20.1

 
15.7

Receivables
7.2

 
15.2

Other
0.1

 
0.4

Gross deferred tax assets
273.5

 
245.9

Less valuation allowance
(55.0
)
 
(39.5
)
Deferred tax assets
218.5

 
206.4

Deferred tax liabilities:
 

 
 

Intangible assets
223.8

 
241.2

Investment in unconsolidated partnership
—

 
5.3

Property, plant and equipment
34.2

 
48.8

Inventories
16.4

 
2.7

Other
3.8

 
6.8

Deferred tax liabilities
278.2

 
304.8

Net deferred tax liability
$
(59.7
)
 
$
(98.4
)
Schedule of classification of deferred tax liability in consolidated balance sheets 
The net deferred tax liability is classified in the Consolidated Balance Sheets as follows (in millions): 
 
September 30,
 
2012
 
2011
Current net deferred tax asset
$
69.9

 
$
72.9

Non-current net deferred tax liability
(129.6
)
 
(171.3
)
 
$
(59.7
)
 
$
(98.4
)
Schedule of reconciliation of unrecognized tax benefits 
A reconciliation of the beginning and ending amount of unrecognized tax benefits during fiscal 2012 and fiscal 2011 were as follows (in millions):

 
Fiscal Year Ended
September 30,
 
2012
 
2011
Balance at beginning of year
$
53.3

 
$
52.1

Additions for tax positions related to current year
3.8

 
4.0

Additions for tax positions related to prior years
8.7

 
4.0

Reductions for tax positions of prior years
(0.2
)
 
(0.3
)
Settlements
(28.3
)
 
(2.0
)
Lapse of statute of limitations
(4.4
)
 
(4.5
)
Balance at end of year
$
32.9

 
$
53.3

Schedule of tax years open for examination under applicable statutes 
As of September 30, 2012, tax years open for examination under applicable statutes were as follows:

Tax Jurisdiction
 
Open Tax Years
Australia
 
2007 - 2012
Belgium
 
2010 - 2012
Brazil
 
2006 - 2012
Canada
 
2009 - 2012
Romania
 
2010 - 2012
The Netherlands
 
2007 - 2012
United States (federal)
 
2010 - 2012
United States (state and local)
 
2002 - 2012
Earnings (Loss) Per Share (Tables)
Schedule of income attributable to common shareholders 
Net income (loss) attributable to Oshkosh Corporation common shareholders was as follows (in millions): 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Net income from continuing operations
$
230.5

 
$
279.0

 
$
816.0

Less: net earnings allocated to participating securities
(0.6
)
 
(0.4
)
 
(0.2
)
Net income available to Oshkosh Corporation common shareholders
$
229.9

 
$
278.6

 
$
815.8

 
 
 
 
 
 
Net income (loss) from discontinued operations
$
0.3

 
$
(5.6
)
 
$
(26.0
)
Schedule of computation of basic and diluted weighted-average shares used in the denominator of per share calculations 
Basic and diluted weighted-average shares used in the denominator of the per share calculations was as follows:
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Basic weighted-average shares outstanding
91,330,635

 
90,888,253

 
89,947,873

Effect of dilutive stock options and equity-based compensation awards
562,508

 
685,107

 
1,006,868

Diluted weighted-average shares outstanding
91,893,143

 
91,573,360

 
90,954,741

Contingencies, Significant Estimates and Concentrations (Tables)
Schedule of significant portion of revenues from the Department of Defense
The Company derived a significant portion of its revenue from the DoD, as follows (in millions): 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
DoD
$
3,452.5

 
$
4,136.8

 
$
7,054.7

Foreign military sales
221.2

 
74.3

 
28.3

Total DoD sales
$
3,673.7

 
$
4,211.1

 
$
7,083.0

Business Segment Information (Tables)
Schedule of net sales by product lines and reportable segments 
Selected financial information concerning the Company’s product lines and reportable segments is as follows (in millions):
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
 
External
Customers
 
Inter-
segment
 
Net
Sales
 
External
Customers
 
Inter-
segment
 
Net
Sales
 
External
Customers
 
Inter-
segment
 
Net
Sales
Access equipment (a)
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Aerial work platforms
$
1,390.2

 
$
—

 
$
1,390.2

 
$
961.6

 
$
—

 
$
961.6

 
$
558.6

 
$
—

 
$
558.6

Telehandlers
892.3

 
—

 
892.3

 
527.9

 
—

 
527.9

 
342.8

 
—

 
342.8

Other (b)
511.9

 
125.1

 
637.0

 
454.6

 
108.0

 
562.6

 
365.4

 
1,745.1

 
2,110.5

Total access equipment
2,794.4

 
125.1

 
2,919.5

 
1,944.1

 
108.0

 
2,052.1

 
1,266.8

 
1,745.1

 
3,011.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defense
3,947.5

 
3.0

 
3,950.5

 
4,359.9

 
5.3

 
4,365.2

 
7,151.3

 
10.4

 
7,161.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fire & emergency
769.4

 
39.0

 
808.4

 
765.1

 
18.0

 
783.1

 
871.1

 
23.1

 
894.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Concrete placement
231.9

 
—

 
231.9

 
169.6

 
—

 
169.6

 
174.1

 
—

 
174.1

Refuse collection
336.8

 
—

 
336.8

 
249.6

 
—

 
249.6

 
305.7

 
—

 
305.7

Other
100.9

 
27.4

 
128.3

 
79.2

 
66.5

 
145.7

 
51.6

 
90.7

 
142.3

Total commercial
669.6

 
27.4

 
697.0

 
498.4

 
66.5

 
564.9

 
531.4

 
90.7

 
622.1

Intersegment eliminations
—

 
(194.5
)
 
(194.5
)
 
—

 
(197.8
)
 
(197.8
)
 
—

 
(1,869.3
)
 
(1,869.3
)
Consolidated
$
8,180.9

 
$
—

 
$
8,180.9

 
$
7,567.5

 
$
—

 
$
7,567.5

 
$
9,820.6

 
$
—


$
9,820.6

_________________________
(a)
Fiscal 2011 and 2010 amounts have been reclassified to conform with the fiscal 2012 presentation.
(b)
Access equipment intersegment sales are comprised of assembly of M-ATV crew capsules and complete vehicles for the defense segment. The access equipment segment invoices the defense segment for work under this contract. These sales are eliminated in consolidation.
Schedule of income (loss) from continuing operations by product lines and reportable segments 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Operating income (loss) from continuing operations:
 

 
 

 
 

Access equipment
$
229.2

 
$
65.3

 
$
97.3

Defense
236.5

 
543.0

 
1,320.7

Fire & emergency (a)
(12.9
)
 
(1.1
)
 
88.3

Commercial (b)
32.1

 
3.9

 
19.4

Corporate
(119.1
)
 
(107.1
)
 
(99.0
)
Intersegment eliminations
0.2

 
4.0

 
(1.9
)
Consolidated
366.0

 
508.0

 
1,424.8

Interest expense net of interest income
(74.1
)
 
(86.0
)
 
(184.1
)
Miscellaneous other income (expense)
(5.2
)
 
1.6

 
1.0

Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
$
286.7

 
$
423.6

 
$
1,241.7

_________________________
(a)
Fiscal 2011 results include non-cash goodwill and long-lived asset impairment charges of $2.0 million.
(b)
Fiscal 2010 results include non-cash goodwill and long-lived asset impairment charges of $2.3 million.
Schedule of reconciliation of depreciation and amortization and capital expenditures 
 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Depreciation and amortization: (a)
 

 
 

 
 

Access equipment
$
71.5

 
$
84.1

 
$
95.4

Defense
19.3

 
26.7

 
17.6

Fire & emergency
13.5

 
13.0

 
16.2

Commercial
15.0

 
15.4

 
15.1

Corporate (b)
11.6

 
5.2

 
28.6

Consolidated
$
130.9

 
$
144.4

 
$
172.9

 
 
 
 
 
 
Capital expenditures:
 

 
 

 
 

Access equipment (c)
$
28.3

 
$
26.0

 
$
24.7

Defense
16.0

 
36.4

 
48.0

Fire & emergency
7.3

 
17.7

 
10.0

Commercial
4.8

 
5.9

 
6.8

Corporate
7.9

 
0.2

 
—

Consolidated
$
64.3

 
$
86.2

 
$
89.5

_________________________
(a)
Includes $0.6 million, $1.8 million and $4.8 million in fiscal 2012, 2011 and 2010, respectively, related to discontinued operations.
(b)
Includes $2.3 million, $0.1 million and $20.4 million in fiscal 2012, 2011 and 2010, respectively, related to the write-off of deferred financing fees due to the early extinguishment of the related debt.
(c)
Capital expenditures include both the purchase of property, plant and equipment and equipment held for rental.
Schedule of identifiable assets by business segments and by geographical segments 
 
September 30,
 
2012

2011

2010
Identifiable assets:
 

 
 

 
 

Access equipment:
 

 
 

 
 

U.S.
$
1,754.6

 
$
1,779.8

 
$
1,766.5

Europe (a)
684.2

 
694.0

 
794.0

Rest of the world
283.1

 
248.9

 
186.7

Total access equipment
2,721.9

 
2,722.7

 
2,747.2

Defense - U.S. (a)
684.5

 
762.3

 
876.4

Fire & emergency:
 

 
 

 
 

U.S.
534.0

 
518.9

 
529.9

Europe
—

 
12.9

 
15.6

Total fire & emergency
534.0

 
531.8

 
545.5

Commercial:
 

 
 

 
 

U.S.
304.5

 
321.4

 
316.4

Rest of the world (a)
37.0

 
41.5

 
38.7

Total commercial
341.5

 
362.9

 
355.1

Corporate:
 

 
 

 
 

U.S. (b)
658.1

 
441.2

 
183.1

Rest of the world
7.8

 
6.0

 
1.3

Total corporate
665.9

 
447.2

 
184.4

Consolidated
$
4,947.8

 
$
4,826.9

 
$
4,708.6

_________________________
(a)
Includes investments in unconsolidated affiliates.
(b)
Primarily includes cash and short-term investments.
Schedule of net sales by geographical segments 
The following table presents net sales by geographic region based on product shipment destination (in millions):

 
Fiscal Year Ended September 30,
 
2012
 
2011
 
2010
Net sales:
 

 
 

 
 

United States
$
6,397.0

 
$
6,275.4

 
$
8,873.1

Other North America
248.3

 
179.7

 
110.3

Europe, Africa and Middle East
974.9

 
695.1

 
497.0

Rest of the world
560.7

 
417.3

 
340.2

Consolidated
$
8,180.9

 
$
7,567.5

 
$
9,820.6

Separate Financial Information of Subsidiary Guarantors of Indebtedness (Tables)
Condensed Consolidating Statements of Income 
The following condensed supplemental consolidating financial information reflects the summarized financial information of Oshkosh, the Guarantors on a combined basis and Oshkosh’s non-guarantor subsidiaries on a combined basis (in millions):
 
Condensed Consolidating Statement of Income
For the Year Ended September 30, 2012
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net sales
$
4,100.8

 
$
3,419.0

 
$
921.3

 
$
(260.2
)
 
$
8,180.9

Cost of sales
3,743.7

 
2,923.2

 
783.4

 
(260.4
)
 
7,189.9

Gross income
357.1

 
495.8

 
137.9

 
0.2

 
991.0

Selling, general and administrative expenses
238.4

 
295.8

 
33.1

 
—

 
567.3

Amortization of purchased intangibles
0.3

 
39.8

 
17.6

 
—

 
57.7

Intangible asset impairment charges
—

 
—

 
—

 
—

 
—

Operating income
118.4

 
160.2

 
87.2

 
0.2

 
366.0

Interest expense
(197.4
)
 
(75.5
)
 
(3.9
)
 
200.8

 
(76.0
)
Interest income
2.3

 
28.1

 
172.3

 
(200.8
)
 
1.9

Miscellaneous, net
18.2

 
(101.7
)
 
78.3

 
—

 
(5.2
)
Income (loss) from continuing operations before income taxes
(58.5
)
 
11.1

 
333.9

 
0.2

 
286.7

Provision for (benefit from) income taxes
(11.1
)
 
1.3

 
67.2

 
—

 
57.4

Income (loss) from continuing operations before equity in earnings (losses) of affiliates
(47.4
)
 
9.8

 
266.7

 
0.2

 
229.3

Equity in earnings (losses) of consolidated subsidiaries
272.5

 
110.0

 
32.1

 
(414.6
)
 
—

Equity in earnings (losses) of unconsolidated affiliates
(0.4
)
 
—

 
2.7

 
—

 
2.3

Income (loss) from continuing operations
224.7

 
119.8

 
301.5

 
(414.4
)
 
231.6

Discontinued operations, net of tax
6.1

 
(9.9
)
 
4.1

 
—

 
0.3

Net income (loss)
230.8

 
109.9

 
305.6

 
(414.4
)
 
231.9

Net income attributable to the noncontrolling interest
—

 
—

 
(1.1
)
 
—

 
(1.1
)
Net income (loss) attributable to Oshkosh Corporation
$
230.8

 
$
109.9

 
$
304.5

 
$
(414.4
)
 
$
230.8

 
Condensed Consolidating Statement of Income
For the Year Ended September 30, 2011
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net sales
$
4,540.2

 
$
2,409.4

 
$
875.9

 
$
(258.0
)
 
$
7,567.5

Cost of sales
3,873.3

 
2,106.5

 
771.6

 
(262.2
)
 
6,489.2

Gross income
666.9

 
302.9

 
104.3

 
4.2

 
1,078.3

Selling, general and administrative expenses
212.0

 
181.8

 
115.2

 
—

 
509.0

Amortization of purchased intangibles
0.1

 
39.8

 
19.4

 
—

 
59.3

Intangible asset impairment charges
—

 
—

 
2.0

 
—

 
2.0

Operating income (loss)
454.8

 
81.3

 
(32.3
)
 
4.2

 
508.0

Interest expense
(200.2
)
 
(82.2
)
 
(3.9
)
 
195.6

 
(90.7
)
Interest income
2.9

 
26.4

 
171.0

 
(195.6
)
 
4.7

Miscellaneous, net
10.7

 
(120.5
)
 
111.4

 
—

 
1.6

Income (loss) from continuing operations before income taxes
268.2

 
(95.0
)
 
246.2

 
4.2

 
423.6

Provision for (benefit from) income taxes
93.9

 
(30.0
)
 
79.8

 
1.4

 
145.1

Income (loss) from continuing operations before equity in earnings (losses) of affiliates
174.3

 
(65.0
)
 
166.4

 
2.8

 
278.5

Equity in earnings (losses) of consolidated subsidiaries
99.2

 
56.0

 
(52.5
)
 
(102.7
)
 
—

Equity in earnings (losses) of unconsolidated affiliates
(0.1
)
 
—

 
0.6

 
—

 
0.5

Income (loss) from continuing operations
273.4

 
(9.0
)
 
114.5

 
(99.9
)
 
279.0

Discontinued operations, net of tax
—

 
—

 
(5.6
)
 
—

 
(5.6
)
Net income (loss)
273.4

 
(9.0
)
 
108.9

 
(99.9
)
 
273.4

Net income attributable to the noncontrolling interest
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to Oshkosh Corporation
$
273.4

 
$
(9.0
)
 
$
108.9

 
$
(99.9
)
 
$
273.4

 
Condensed Consolidating Statement of Income
For the Year Ended September 30, 2010
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net sales
$
7,341.9

 
$
3,559.1

 
$
813.6

 
$
(1,894.0
)
 
$
9,820.6

Cost of sales
5,892.1

 
3,119.5

 
731.0

 
(1,892.0
)
 
7,850.6

Gross income
1,449.8

 
439.6

 
82.6

 
(2.0
)
 
1,970.0

Selling, general and administrative expenses
196.9

 
164.4

 
122.6

 
—

 
483.9

Amortization of purchased intangibles
—

 
40.2

 
18.8

 
—

 
59.0

Intangible asset impairment charges
—

 
—

 
2.3

 
—

 
2.3

Operating income (loss)
1,252.9

 
235.0

 
(61.1
)
 
(2.0
)
 
1,424.8

Interest expense
(276.4
)
 
(170.6
)
 
(2.5
)
 
262.4

 
(187.1
)
Interest income
2.4

 
18.6

 
244.4

 
(262.4
)
 
3.0

Miscellaneous, net
12.7

 
(94.9
)
 
83.2

 
—

 
1.0

Income (loss) from continuing operations before income taxes
991.6

 
(11.9
)
 
264.0

 
(2.0
)
 
1,241.7

Provision for (benefit from) income taxes
328.4

 
(1.5
)
 
95.2

 
(0.7
)
 
421.4

Income (loss) from continuing operations before equity in earnings (losses) of affiliates
663.2

 
(10.4
)
 
168.8

 
(1.3
)
 
820.3

Equity in earnings (losses) of consolidated subsidiaries
125.4

 
(2.4
)
 
(37.9
)
 
(85.1
)
 
—

Equity in earnings (losses) of unconsolidated affiliates
—

 
—

 
(4.3
)
 
—

 
(4.3
)
Income (loss) from continuing operations
788.6

 
(12.8
)
 
126.6

 
(86.4
)
 
816.0

Discontinued operations, net of tax
1.4

 
—

 
(27.4
)
 
—

 
(26.0
)
Net income (loss)
790.0

 
(12.8
)
 
99.2

 
(86.4
)
 
790.0

Net income attributable to the noncontrolling interest
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to Oshkosh Corporation
$
790.0

 
$
(12.8
)
 
$
99.2

 
$
(86.4
)
 
$
790.0

Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet
As of September 30, 2012
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Assets
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
500.0

 
$
5.5

 
$
35.2

 
$
—

 
$
540.7

Receivables, net
388.0

 
487.5

 
177.3

 
(34.2
)
 
1,018.6

Inventories, net
284.3

 
415.7

 
239.3

 
(1.8
)
 
937.5

Other current assets
129.2

 
47.9

 
20.6

 
—

 
197.7

Total current assets
1,301.5

 
956.6

 
472.4

 
(36.0
)
 
2,694.5

Investment in and advances to consolidated subsidiaries
2,358.1

 
(1,182.9
)
 
3,235.8

 
(4,411.0
)
 
—

Intangible assets, net
2.5

 
1,110.4

 
696.3

 
—

 
1,809.2

Other long-term assets
154.7

 
156.8

 
132.6

 
—

 
444.1

Total assets
$
3,816.8

 
$
1,040.9

 
$
4,537.1

 
$
(4,447.0
)
 
$
4,947.8

 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable
$
326.2

 
$
288.9

 
$
96.7

 
$
(28.5
)
 
$
683.3

Customer advances
315.4

 
190.5

 
4.5

 
—

 
510.4

Other current liabilities
213.6

 
220.2

 
84.5

 
(7.5
)
 
510.8

Total current liabilities
855.2

 
699.6

 
185.7

 
(36.0
)
 
1,704.5

Long-term debt, less current maturities
955.0

 
—

 
—

 
—

 
955.0

Other long-term liabilities
153.1

 
137.3

 
144.4

 
—

 
434.8

Equity:
 

 
 

 
 

 
 

 


Oshkosh Corporation shareholders’ equity
1,853.5

 
204.0

 
4,207.0

 
(4,411.0
)
 
1,853.5

Noncontrolling interest
—

 
—

 
—

 
—

 
—

Total equity
1,853.5

 
204.0

 
4,207.0

 
(4,411.0
)
 
1,853.5

Total liabilities and equity
$
3,816.8

 
$
1,040.9

 
$
4,537.1

 
$
(4,447.0
)
 
$
4,947.8


Condensed Consolidating Balance Sheet
As of September 30, 2011
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Assets
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
376.3

 
$
13.5

 
$
38.7

 
$
—

 
$
428.5

Receivables, net
525.8

 
521.4

 
135.8

 
(93.9
)
 
1,089.1

Inventories, net
194.0

 
336.8

 
257.9

 
(1.9
)
 
786.8

Other current assets
86.0

 
34.8

 
29.4

 
—

 
150.2

Total current assets
1,182.1

 
906.5

 
461.8

 
(95.8
)
 
2,454.6

Investment in and advances to consolidated subsidiaries
2,506.5

 
(1,402.6
)
 
2,902.4

 
(4,006.3
)
 
—

Intangible assets, net
2.7

 
1,131.4

 
746.1

 
—

 
1,880.2

Other long-term assets
167.4

 
156.6

 
168.1

 
—

 
492.1

Total assets
$
3,858.7

 
$
791.9

 
$
4,278.4

 
$
(4,102.1
)
 
$
4,826.9

 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable
$
498.6

 
$
298.7

 
$
61.3

 
$
(89.7
)
 
$
768.9

Customer advances
334.8

 
120.2

 
13.6

 
—

 
468.6

Other current liabilities
208.3

 
167.1

 
85.0

 
(6.1
)
 
454.3

Total current liabilities
1,041.7

 
586.0

 
159.9

 
(95.8
)
 
1,691.8

Long-term debt, less current maturities
1,020.0

 
—

 
—

 
—

 
1,020.0

Other long-term liabilities
200.4

 
172.4

 
145.7

 
—

 
518.5

Equity:
 

 
 

 
 

 
 

 


Oshkosh Corporation shareholders’ equity
1,596.5

 
33.5

 
3,972.7

 
(4,006.2
)
 
1,596.5

Noncontrolling interest
0.1

 
—

 
0.1

 
(0.1
)
 
0.1

Total equity
1,596.6

 
33.5

 
3,972.8

 
(4,006.3
)
 
1,596.6

Total liabilities and equity
$
3,858.7

 
$
791.9

 
$
4,278.4

 
$
(4,102.1
)
 
$
4,826.9

Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows
For the Year Ended September 30, 2012
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net cash provided (used) by operating activities
$
(143.4
)
 
$
122.2

 
$
289.5

 
$
—

 
$
268.3

 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

Additions to property, plant and equipment
(24.5
)
 
(22.7
)
 
(8.7
)
 
—

 
(55.9
)
Additions to equipment held for rental
—

 
—

 
(8.4
)
 
—

 
(8.4
)
Proceeds from sale of equity method investments
—

 
—

 
8.7

 
—

 
8.7

Intercompany investing
405.3

 
(90.6
)
 
(288.3
)
 
(26.4
)
 
—

Other investing activities
5.0

 
8.6

 
0.2

 
—

 
13.8

Net cash provided (used) by investing activities
385.8

 
(104.7
)
 
(296.5
)
 
(26.4
)
 
(41.8
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

Repayment of long-term debt
(105.0
)
 
(0.1
)
 
—

 
—

 
(105.1
)
Repurchase of Common Stock
(13.3
)
 
—

 
—

 
—

 
(13.3
)
Debt issuance/amendment costs
(3.1
)
 
—

 
—

 
—

 
(3.1
)
Intercompany financing
(1.3
)
 
(26.0
)
 
0.9

 
26.4

 
—

Other financing activities
4.0

 
—

 
0.2

 
—

 
4.2

Net cash provided (used) by financing activities
(118.7
)
 
(26.1
)
 
1.1

 
26.4

 
(117.3
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
—

 
0.6

 
2.4

 
—

 
3.0

Increase (decrease) in cash and cash equivalents
123.7

 
(8.0
)
 
(3.5
)
 
—

 
112.2

Cash and cash equivalents at beginning of year
376.3

 
13.5

 
38.7

 
—

 
428.5

Cash and cash equivalents at end of year
$
500.0

 
$
5.5

 
$
35.2

 
$
—

 
$
540.7

 
Condensed Consolidating Statement of Cash Flows
For the Year Ended September 30, 2011
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net cash provided (used) by operating activities
$
259.9

 
$
(35.5
)
 
$
163.3

 
$
—

 
$
387.7

 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

Additions to property, plant and equipment
(42.2
)
 
(27.4
)
 
(12.7
)
 
—

 
(82.3
)
Additions to equipment held for rental
—

 
—

 
(3.9
)
 
—

 
(3.9
)
Intercompany investing
191.9

 
100.4

 
(283.5
)
 
(8.8
)
 
—

Other investing activities
(3.0
)
 
0.8

 
20.1

 
—

 
17.9

Net cash provided (used) by investing activities
146.7

 
73.8

 
(280.0
)
 
(8.8
)
 
(68.3
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

Repayment of long-term debt
(91.1
)
 
(0.3
)
 
—

 
—

 
(91.4
)
Net borrowings under revolving credit facilities
(150.0
)
 
—

 
—

 
—

 
(150.0
)
Debt issuance/amendment costs
(0.1
)
 
—

 
—

 
—

 
(0.1
)
Intercompany financing
(1.3
)
 
(26.0
)
 
18.5

 
8.8

 
—

Other financing activities
10.0

 
—

 
—

 
—

 
10.0

Net cash provided (used) by financing activities
(232.5
)
 
(26.3
)
 
18.5

 
8.8

 
(231.5
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
—

 
(1.0
)
 
2.6

 
—

 
1.6

Increase (decrease) in cash and cash equivalents
174.1

 
11.0

 
(95.6
)
 
—

 
89.5

Cash and cash equivalents at beginning of year
202.2

 
2.5

 
134.3

 
—

 
339.0

Cash and cash equivalents at end of year
$
376.3

 
$
13.5

 
$
38.7

 
$
—

 
$
428.5

 
Condensed Consolidating Statement of Cash Flows
For the Year Ended September 30, 2010
 
 
Oshkosh
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Net cash provided (used) by operating activities
$
379.2

 
$
17.9

 
$
222.6

 
$
—

 
$
619.7

 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

Additions to property, plant and equipment
(56.5
)
 
(6.7
)
 
(20.0
)
 
—

 
(83.2
)
Additions to equipment held for rental
—

 
—

 
(6.3
)
 
—

 
(6.3
)
Intercompany investing
262.2

 
39.8

 
(253.9
)
 
(48.1
)
 
—

Other investing activities
—

 
(7.8
)
 
13.4

 
—

 
5.6

Net cash provided (used) by investing activities
205.7

 
25.3

 
(266.8
)
 
(48.1
)
 
(83.9
)
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

Repayment of long-term debt
(2,020.4
)
 
(0.3
)
 
(0.2
)
 
—

 
(2,020.9
)
Net borrowings under revolving credit facilities
150.0

 
—

 
—

 
—

 
150.0

Proceeds from issuance of long term debt
1,150.0

 
—

 
—

 
—

 
1,150.0

Debt issuance/amendment costs
(26.3
)
 
—

 
—

 
—

 
(26.3
)
Intercompany financing
(1.3
)
 
(46.0
)
 
(0.8
)
 
48.1

 
—

Other financing activities
24.7

 
—

 
—

 
—

 
24.7

Net cash provided (used) by financing activities
(723.3
)
 
(46.3
)
 
(1.0
)
 
48.1

 
(722.5
)
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
—

 
—

 
(4.7
)
 
—

 
(4.7
)
Increase (decrease) in cash and cash equivalents
(138.4
)
 
(3.1
)
 
(49.9
)
 
—

 
(191.4
)
Cash and cash equivalents at beginning of year
340.6

 
5.6

 
184.2

 
—

 
530.4

Cash and cash equivalents at end of year
$
202.2

 
$
2.5

 
$
134.3

 
$
—

 
$
339.0

Unaudited Quarterly Results (Tables)
Schedule of unaudited quarterly results
The unaudited quarterly results below have been revised to exclude from continuing operations the results of the Company's mobile medical trailer business, which was reclassified to discontinued operations in fiscal 2012 for all periods presented (in millions, except per share amounts):
 
Fiscal Year Ended September 30, 2012
 
4th Quarter (a)
 
3rd Quarter
 
2nd Quarter
 
1st Quarter
Net sales
$
2,061.8

 
$
2,171.2

 
$
2,072.2

 
$
1,875.7

Gross income
258.0

 
270.9

 
240.6

 
221.5

Operating income
89.2

 
122.9

 
78.5

 
75.4

Net income
78.9

 
75.7

 
38.0

 
39.3

 
 
 
 
 
 
 
 
Net income from continuing operations
$
77.6

 
$
74.7

 
$
39.2

 
$
39.0

Less: net earnings allocated to participating securities
(0.2
)
 
(0.2
)
 
(0.1
)
 
(0.1
)
Net income available to Oshkosh Corporation common shareholders
$
77.4

 
$
74.5

 
$
39.1

 
$
38.9

 
 
 
 
 
 
 
 
Net income (loss) from discontinued operations
$
1.3

 
$
1.0

 
$
(1.9
)
 
$
(0.1
)
 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-basic:
 

 
 

 
 

 
 

From continuing operations
$
0.85

 
$
0.82

 
$
0.43

 
$
0.43

From discontinued operations
0.01

 
0.01

 
(0.02
)
 
(0.01
)
 
$
0.86

 
$
0.83

 
$
0.41

 
$
0.42

 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-diluted:
 

 
 

 
 

 
 

From continuing operations
$
0.85

 
$
0.81

 
$
0.43

 
$
0.43

From discontinued operations
0.01

 
0.01

 
(0.02
)
 
(0.01
)
 
$
0.86

 
$
0.82

 
$
0.41

 
$
0.42

 
 
 
 
 
 
 
 
Common Stock per share dividends
$
—

 
$
—

 
$
—

 
$
—


(a) 
The fourth quarter of 2012 was impacted by: (1) a $7.8 million change in estimate to increase revenue ($5.0 million, after-tax) resulting from the definitization of contracts in the defense segment (See Note 4 of the Notes to Consolidated Financial Statements), (2) a $7.0 million increase to selling, general and administrative expenses ($4.5 million, after-tax) resulting from the correction of a prior period error in the valuation of performance shares (See Note 17 of the Notes to Consolidated Financial Statements), (3) a $3.4 million increase to selling, general and administrative expenses ($2.2 million, after-tax) resulting from the curtailment of pension and other postretirement benefit plans (See Note 19 of the Notes to Consolidated Financial Statements), and (4) a decrease in income tax expense of $5.7 million related to the correction of deferred tax assets (See Note 20 of the Notes to Consolidated Financial Statements). Correction adjustments were not material to any individual prior period or the current period and, accordingly, the prior period results have not been adjusted.

 
Fiscal Year Ended September 30, 2011
 
4th Quarter
 
3rd Quarter
 
2nd Quarter
 
1st Quarter
Net sales
$
2,110.0

 
$
2,017.6

 
$
1,743.0

 
$
1,696.9

Gross income
217.4

 
273.1

 
280.2

 
307.6

Operating income
77.1

 
128.5

 
132.9

 
169.5

Net income
38.0

 
68.6

 
67.7

 
99.0

 
 
 
 
 
 
 
 
Net income from continuing operations
$
40.3

 
$
70.2

 
$
68.3

 
$
100.2

Less: net earnings allocated to participating securities
(0.1
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
Net income available to Oshkosh Corporation common shareholders
$
40.2

 
$
70.1

 
$
68.2

 
$
100.1

 
 
 
 
 
 
 
 
Net loss from discontinued operations
$
(2.8
)
 
$
(1.8
)
 
$
(0.4
)
 
$
(0.6
)
 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-basic:
 

 
 

 
 

 
 

From continuing operations
$
0.44

 
$
0.77

 
$
0.76

 
$
1.11

From discontinued operations
(0.03
)
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
$
0.41

 
$
0.75

 
$
0.75

 
$
1.10

 
 
 
 
 
 
 
 
Earnings (loss) per share attributable to Oshkosh
 

 
 

 
 

 
 

Corporation common shareholders-diluted:
 

 
 

 
 

 
 

From continuing operations
$
0.44

 
$
0.77

 
$
0.75

 
$
1.10

From discontinued operations
(0.03
)
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
$
0.41

 
$
0.75

 
$
0.74

 
$
1.09

 
 
 
 
 
 
 
 
Common Stock per share dividends
$
—

 
$
—

 
$
—

 
$
—

Nature of Operations (Details)
12 Months Ended 1 Months Ended
Sep. 30, 2012
Market
Oct. 31, 2009
BAI
Sep. 30, 2012
McNeilus
Sep. 30, 2012
RiRent
Sep. 30, 2012
RiRent
JLG
Jun. 30, 2012
OMFSP
Sep. 30, 2012
Mezcladores
Nature of operations
 
 
 
 
 
 
 
Number of principal vehicle markets (in markets)
4 
 
 
 
 
 
 
Ownership percentage of subsidiary in equity method investee (as a percent)
 
 
45.00% 
50.00% 
50.00% 
50.00% 
49.00% 
Sale of ownership interest (as a percent)
 
75.00% 
 
 
 
 
 
Summary of Significant Accounting Policies (Details) (USD $)
12 Months Ended
Sep. 30, 2012
M
Step
Sep. 30, 2011
Sep. 30, 2010
Research and Development and Similar Costs
 
 
 
Research and development costs charged to expense
$ 109,100,000 
$ 99,900,000 
$ 92,400,000 
Advertising
 
 
 
Advertising cost
13,100,000 
15,500,000 
15,400,000 
Income Taxes
 
 
 
Number of steps to evaluate uncertain income tax positions (in steps)
2 
 
 
Minimum percentage likelihood of tax benefit being realized (as a percent)
50.00% 
 
 
Maximum percentage likelihood of tax benefit being realized (as a percent)
50.00% 
 
 
Amount of tax benefit realized for tax positions currently estimated to have a less than likelihood percentage of being sustained
$ 0 
 
 
Percentage of cash and cash equivalents located outside the United States
8.00% 
 
 
Cash and Cash Equivalents
 
 
 
Maximum remaining maturity period at time of purchase of liquid investments classified as cash equivalents (in months)
3 
 
 
Inventories
 
 
 
Inventory valued using LIFO method (as a percent)
78.60% 
85.40% 
 
RiRent
 
 
 
Investment in unconsolidated affiliates, Accounted under equity method
 
 
 
Voting interest under equity method (as a percent)
50.00% 
 
 
Mezcladores
 
 
 
Investment in unconsolidated affiliates, Accounted under equity method
 
 
 
Voting interest under equity method (as a percent)
49.00% 
 
 
McNeilus Brazil
 
 
 
Investment in unconsolidated affiliates, Accounted under equity method
 
 
 
Voting interest under equity method (as a percent)
45.00% 
 
 
Summary of Significant Accounting Policies (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
D
Sep. 30, 2011
Sep. 30, 2010
Goodwill
 
 
 
Non-cash goodwill impairment charges
 
$ 4.3 
$ 16.8 
Non-cash goodwill impairment charges related to discontinued operations
 
2.3 
16.8 
Percentage of importance to income approach used for evaluation of recoverability of goodwill (as a percent)
75.00% 
 
 
Impairment of Long-Lived Assets
 
 
 
Non-cash impairment charges of long-lived assets
 
0.5 
8.8 
Non-cash impairment charges of long-lived assets related to discontinued operations
 
$ 0.5 
$ 6.5 
Floor Plan Notes Payable
 
 
 
Period of non-interest for floor plan notes payable (in days)
120 
 
 
Buildings and improvements
 
 
 
Property Plant and Equipment
 
 
 
Estimated useful life, minimum (in years)
10 
 
 
Estimated useful life, maximum (in years)
40 
 
 
Machinery and equipment
 
 
 
Property Plant and Equipment
 
 
 
Estimated useful life, minimum (in years)
4 
 
 
Estimated useful life, maximum (in years)
25 
 
 
Capitalized software and related costs
 
 
 
Property Plant and Equipment
 
 
 
Estimated useful life, minimum (in years)
3 
 
 
Estimated useful life, maximum (in years)
10 
 
 
Summary of Significant Accounting Policies (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Components of accumulated other comprehensive income (loss)
 
 
 
Balance at beginning of year
$ (122.6)
 
 
Balance at end of year
(101.4)
(122.6)
 
Foreign Currency Translation
 
 
 
Net foreign currency transaction gains (losses) related to continuing operations
(5.1)
0.3 
1.4 
Cumulative Translation Adjustments
 
 
 
Components of accumulated other comprehensive income (loss)
 
 
 
Balance at beginning of year
9.5 
14.3 
41.2 
Fiscal year change
(10.6)
(4.8)
(26.1)
Amounts reclassified to income
(0.7)
0 
(0.8)
Balance at end of year
(1.8)
9.5 
14.3 
Employee Pension and Postretirement Benefits, Net of Tax
 
 
 
Components of accumulated other comprehensive income (loss)
 
 
 
Balance at beginning of year
(130.7)
(96.9)
(84.3)
Fiscal year change
31.1 
(33.8)
(12.6)
Amounts reclassified to income
0 
0 
0 
Balance at end of year
(99.6)
(130.7)
(96.9)
Gains (Losses) on Derivatives, Net of Tax
 
 
 
Components of accumulated other comprehensive income (loss)
 
 
 
Balance at beginning of year
(1.4)
(10.6)
(31.6)
Fiscal year change
0 
(1.4)
(5.6)
Amounts reclassified to income
1.4 
10.6 
26.6 
Balance at end of year
0 
(1.4)
(10.6)
Accumulated Other Comprehensive Income (Loss)
 
 
 
Components of accumulated other comprehensive income (loss)
 
 
 
Balance at beginning of year
(122.6)
(93.2)
(74.7)
Fiscal year change
20.5 
(40.0)
(44.3)
Amounts reclassified to income
0.7 
10.6 
25.8 
Balance at end of year
$ (101.4)
$ (122.6)
$ (93.2)
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Oct. 31, 2009
BAI
Discontinued Operations
 
 
 
 
Sale of ownership interest (as a percent)
 
 
 
75.00% 
Reclassification of cumulative translation adjustments out of sale of equity
 
 
 
$ 0.8 
Operations of discontinued operations
 
 
 
 
Net sales
12.4 
17.2 
21.8 
 
Cost of sales
10.4 
15.8 
21.8 
 
Gross income
2.0 
1.4 
0 
 
Operating expenses:
 
 
 
 
Selling, general and administrative
2.9 
4.2 
5.9 
 
Amortization of purchased intangibles
0.5 
1.5 
1.5 
 
Intangible assets impairment charges
0 
2.8 
23.3 
 
Total operating expenses
3.4 
8.5 
30.7 
 
Operating loss
(1.4)
(7.1)
(30.7)
 
Other expense
0 
0 
0.5 
 
Loss before income taxes
(1.4)
(7.1)
(30.2)
 
Benefit from income taxes
(6.1)
(1.5)
(7.1)
 
Income (loss) from operations, net of tax
4.7 
(5.6)
(23.1)
 
Loss on sale of discontinued operations
(4.4)
0 
(2.9)
 
Income (loss) from discontinued operations, net of tax
$ 0.3 
$ (5.6)
$ (26.0)
 
Receivables (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2012
Undefinitization Contracts
Defense
Sep. 30, 2012
Undefinitization Contracts
Defense
U.S. government:
 
 
 
 
 
Amount billed
$ 99.2 
$ 318.8 
 
 
 
Cost and profits not billed
251.7 
172.3 
 
 
 
Contract receivables
350.9 
491.1 
 
 
 
Other trade receivables
633.0 
568.8 
 
 
 
Finance receivables
5.2 
23.6 
 
 
 
Notes receivable
24.6 
33.7 
 
 
 
Other receivables
35.6 
27.4 
 
 
 
Receivables, gross
1,049.3 
1,144.6 
 
 
 
Less allowance for doubtful accounts
(18.0)
(29.5)
(42.0)
 
 
Receivables, net
1,031.3 
1,115.1 
 
 
 
Revenue from undefinitized contract
83.4 
 
 
 
 
Revenues
 
 
 
7.8 
7.8 
Increase in net income due to increase in revenue from undefinitized contract
5.0 
 
 
 
 
Increase in net income per share due to increase in revenue from undefinitized contract (in dollars per share)
$ 0.05 
 
 
 
 
Classification of receivables
 
 
 
 
 
Current receivables
1,018.6 
1,089.1 
 
 
 
Long-term receivables
12.7 
26.0 
 
 
 
Receivables, net
$ 1,031.3 
$ 1,115.1 
 
 
 
Receivables (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Change in allowance for doubtful accounts
 
 
Allowance for doubtful accounts at beginning of period
$ 29.5 
$ 42.0 
Provision for doubtful accounts, net of recoveries
(2.3)
2.0 
Charge-off of accounts
(9.1)
(14.5)
Disposition of a business
(0.1)
0 
Foreign currency translation
0 
0 
Allowance for doubtful accounts at end of period
18.0 
29.5 
Finance receivables
 
 
Finance Receivables:
 
 
Finance receivables
6.0 
27.9 
Less unearned income
(0.8)
(4.3)
Net finance receivables
5.2 
23.6 
Less allowance for doubtful accounts
(1.4)
(11.5)
Finance receivables net of allowances
3.8 
12.1 
Contractual maturities of finance receivables
 
 
2013
2.7 
 
2014
0.3 
 
2015
1.3 
 
2016
0.8 
 
2017
0.4 
 
Thereafter
0.5 
 
Aging of receivables that are past due:
 
 
Greater than 30 days and less than 60 days
0.1 
0.5 
Greater than 60 days and less than 90 days
0 
0.1 
Greater than 90 days
1.3 
6.5 
Receivables on nonaccrual status
3.4 
17.6 
Receivables subject to general reserves
1.5 
0.4 
Receivables subject to general reserves, Allowance for doubtful accounts
0 
0 
Receivables subject to specific reserves
3.7 
23.2 
Receivables subject to specific reserves, Allowance for doubtful accounts
(1.4)
(11.5)
Change in allowance for doubtful accounts
 
 
Allowance for doubtful accounts at beginning of period
11.5 
20.9 
Provision for doubtful accounts, net of recoveries
(3.4)
(0.5)
Charge-off of accounts
(6.7)
(8.9)
Disposition of a business
0 
0 
Foreign currency translation
0 
0 
Allowance for doubtful accounts at end of period
1.4 
11.5 
Notes receivables
 
 
Aging of receivables that are past due:
 
 
Greater than 30 days and less than 60 days
0 
0 
Greater than 60 days and less than 90 days
0 
0 
Greater than 90 days
0 
0.5 
Receivables on nonaccrual status
19.0 
0.5 
Receivables subject to general reserves
0 
8.6 
Receivables subject to general reserves, Allowance for doubtful accounts
0 
(0.1)
Receivables subject to specific reserves
24.6 
25.1 
Receivables subject to specific reserves, Allowance for doubtful accounts
(8.0)
(8.8)
Restructured oustanding note receivable
19.0 
 
Change in allowance for doubtful accounts
 
 
Allowance for doubtful accounts at beginning of period
8.9 
9.4 
Provision for doubtful accounts, net of recoveries
(0.4)
1.9 
Charge-off of accounts
(0.5)
(2.5)
Disposition of a business
0 
0 
Foreign currency translation
0 
0.1 
Allowance for doubtful accounts at end of period
8.0 
8.9 
Trade and other receivables
 
 
Change in allowance for doubtful accounts
 
 
Allowance for doubtful accounts at beginning of period
9.1 
11.7 
Provision for doubtful accounts, net of recoveries
1.5 
0.6 
Charge-off of accounts
(1.9)
(3.1)
Disposition of a business
(0.1)
0 
Foreign currency translation
0 
(0.1)
Allowance for doubtful accounts at end of period
8.6 
9.1 
Restructured finance receivables
 
 
Aging of receivables that are past due:
 
 
Receivables subject to specific reserves
4.1 
 
Restructured notes receivables
 
 
Aging of receivables that are past due:
 
 
Receivables subject to specific reserves
$ 23.1 
 
Receivables (Details 3) (Notes receivables, Credit Concentration)
Sep. 30, 2012
Party
Notes receivables |
Credit Concentration
 
Finance and notes receivables
 
Receivables due from third parties (as a percent)
96.00% 
Number of parties
3 
Inventories (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Inventories
 
 
 
Raw materials
$ 558.0 
$ 587.4 
 
Partially finished products
318.3 
377.7 
 
Finished products
371.0 
237.8 
 
Inventories at FIFO cost
1,247.3 
1,202.9 
 
Less: Progress / performance-based payments on U.S. government contracts
(238.0)
(341.7)
 
Less: Excess of FIFO cost over LIFO cost
(71.8)
(74.4)
 
Inventory net
937.5 
786.8 
 
Decrease in costs of goods sold as a result of LIFO inventory liquidation
0.3 
1.8 
5.6 
Increase in earnings from continuing operations as a result of LIFO inventory liquidation
$ 0.2 
$ 1.1 
$ 3.4 
Increase in earnings from continuing operation (in dollars per share)
$ 0.00 
$ 0.01 
$ 0.04 
Investments in Unconsolidated Affiliates (Details)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2011
USD ($)
Sep. 30, 2010
USD ($)
Sep. 30, 2012
OMFSP (U.S.)
USD ($)
Jun. 30, 2012
OMFSP (U.S.)
Sep. 30, 2011
OMFSP (U.S.)
USD ($)
Sep. 30, 2012
RiRent (The Netherlands)
USD ($)
Y
Sep. 30, 2011
RiRent (The Netherlands)
USD ($)
Sep. 30, 2010
RiRent (The Netherlands)
USD ($)
Sep. 30, 2012
RiRent (The Netherlands)
EUR (€)
Sep. 30, 2012
Other
USD ($)
Sep. 30, 2011
Other
USD ($)
Investment in unconsolidated affiliates, Accounted under equity method
 
 
 
 
 
 
 
 
 
 
 
 
Investment in unconsolidated affiliates
$ 18.8 
$ 31.8 
 
$ 0 
 
$ 13.4 
$ 10.5 
$ 10.9 
 
 
$ 8.3 
$ 7.5 
Ownership percentage of investee under equity method (as a percent)
 
 
 
 
50.00% 
 
50.00% 
 
 
 
 
 
Cash distributions and proceeds from sale of equity method investment
 
 
 
16.5 
 
 
 
 
 
 
 
 
Dividends from equity method investments
6.5 
0 
0 
6.5 
 
 
 
 
 
 
 
 
Sales to equity investee
 
 
 
 
 
 
5.0 
6.5 
4.2 
 
 
 
Estimated useful life of equipment (in years)
 
 
 
 
 
 
5 
 
 
 
 
 
Bank credit facility
 
 
 
 
 
 
 
 
 
€ 15.0 
 
 
Equity to asset ratio required to be maintained under bank credit facility (as a percent)
 
 
 
 
 
 
30.00% 
 
 
 
 
 
Overall equity to asset ratio (as a percent)
 
 
 
 
 
 
60.10% 
 
 
 
 
 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Property, plant and equipment
 
 
 
Property, plant and equipment, gross
$ 856.5 
$ 834.5 
 
Less accumulated depreciation
(486.6)
(445.8)
 
Property, plant and equipment, net
369.9 
388.7 
 
Depreciation expenses
65.6 
78.2 
80.5 
Impairment of long lived assets
0.9 
3.4 
5.8 
Land and land improvements
 
 
 
Property, plant and equipment
 
 
 
Property, plant and equipment, gross
45.8 
46.2 
 
Buildings
 
 
 
Property, plant and equipment
 
 
 
Property, plant and equipment, gross
236.3 
243.8 
 
Machinery and equipment
 
 
 
Property, plant and equipment
 
 
 
Property, plant and equipment, gross
550.6 
521.5 
 
Expected economic life, low end of range (in years)
4 
 
 
Expected economic life, high end of range (in years)
25 
 
 
Equipment on operating lease to others
 
 
 
Property, plant and equipment
 
 
 
Property, plant and equipment, gross
23.8 
23.0 
 
Expected economic life, low end of range (in years)
5 
 
 
Expected economic life, high end of range (in years)
10 
 
 
Equipment on operating lease, net
$ 9.4 
$ 6.5 
 
Goodwill and Purchased Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Jul. 2, 2012
JLG
Jul. 2, 2012
Pierce
Sep. 30, 2012
Access Equipment
Sep. 30, 2011
Access Equipment
Sep. 30, 2012
Fire and Emergency
Sep. 30, 2011
Fire and Emergency
Sep. 30, 2012
Commercial
Sep. 30, 2011
Commercial
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Minimum weighted-average cost of capital (as a percent)
13.00% 
 
 
 
 
 
 
 
 
 
 
Maximum weighted-average cost of capital (as a percent)
15.00% 
 
 
 
 
 
 
 
 
 
 
Terminal growth rate (as a percent)
3.00% 
 
 
 
 
 
 
 
 
 
 
Changes in goodwill
 
 
 
 
 
 
 
 
 
 
 
Net goodwill at the beginning of the period
$ 1,041.5 
$ 1,049.6 
 
 
 
$ 912.2 
$ 916.0 
$ 107.9 
$ 112.2 
$ 21.4 
$ 21.4 
Impairment
 
(4.3)
(16.8)
 
 
 
0 
 
(4.3)
 
0 
Foreign currency translation
(5.9)
(3.7)
 
 
 
(6.1)
(3.8)
0 
0.1 
0.2 
0 
Other
(1.8)
(0.1)
 
 
 
0 
0 
(1.8)
(0.1)
0 
0 
Net goodwill at the end of the period
1,033.8 
1,041.5 
1,049.6 
 
 
906.1 
912.2 
106.1 
107.9 
21.6 
21.4 
Details of the Company's goodwill allocated to the reportable segments
 
 
 
 
 
 
 
 
 
 
 
Gross
2,150.0 
2,223.7 
 
 
 
1,838.2 
1,844.3 
114.3 
182.1 
197.5 
197.3 
Accumulated Impairment
(1,116.2)
(1,182.2)
 
 
 
(932.1)
(932.1)
(8.2)
(74.2)
(175.9)
(175.9)
Net
$ 1,033.8 
$ 1,041.5 
$ 1,049.6 
 
 
$ 906.1 
$ 912.2 
$ 106.1 
$ 107.9 
$ 21.6 
$ 21.4 
Percentage of recorded goodwill and purchased intangibles concentrated within the JLG reporting unit in the access equipment segment (as a percent)
 
 
 
88.00% 
7.00% 
 
 
 
 
 
 
Goodwill and Purchased Intangible Assets (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Changes in non-amortizable trade names
 
 
Non-amortizable trade names balance at the beginning of the period
$ 397.6 
$ 397.3 
Disposition
(1.3)
0 
Impairment
0 
(0.5)
Translation
(0.1)
0 
Other
0 
0.8 
Non-amortizable trade names balance at the end of the period
396.2 
397.6 
Changes in intangible assets excluding goodwill, gross
 
 
Intangible assets excluding goodwill, gross balance at the beginning of the period
1,207.9 
1,205.9 
Disposition
(14.0)
0 
Impairment
0 
(0.5)
Translation
(3.5)
(1.8)
Other
(0.6)
4.3 
Intangible assets excluding goodwill, gross balance at the end of the period
1,189.8 
1,207.9 
Changes in gross purchased intangible assets
 
 
Balance at the beginning of the period
810.3 
808.6 
Disposition
(12.7)
0 
Impairment
0 
0 
Translation
(3.4)
(1.8)
Other
(0.6)
3.5 
Balance at the end of the period
793.6 
810.3 
Distribution network
 
 
Changes in gross purchased intangible assets
 
 
Balance at the beginning of the period
55.4 
55.4 
Disposition
0 
0 
Impairment
0 
0 
Translation
0 
0 
Other
0 
0 
Balance at the end of the period
55.4 
55.4 
Non-compete
 
 
Changes in gross purchased intangible assets
 
 
Balance at the beginning of the period
56.9 
56.3 
Disposition
0 
0 
Impairment
0 
0 
Translation
0 
0 
Other
0 
0.6 
Balance at the end of the period
56.9 
56.9 
Technology-related
 
 
Changes in gross purchased intangible assets
 
 
Balance at the beginning of the period
104.8 
104.0 
Disposition
(3.8)
0 
Impairment
0 
0 
Translation
(0.1)
0 
Other
0 
0.8 
Balance at the end of the period
100.9 
104.8 
Customer relationships
 
 
Changes in gross purchased intangible assets
 
 
Balance at the beginning of the period
576.7 
577.2 
Disposition
(8.9)
0 
Impairment
0 
0 
Translation
(3.4)
(1.9)
Other
(0.6)
1.4 
Balance at the end of the period
563.8 
576.7 
Other
 
 
Changes in gross purchased intangible assets
 
 
Balance at the beginning of the period
16.5 
15.7 
Disposition
0 
0 
Impairment
0 
0 
Translation
0.1 
0.1 
Other
0 
0.7 
Balance at the end of the period
$ 16.6 
$ 16.5 
Goodwill and Purchased Intangible Assets (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Y
Sep. 30, 2011
Y
Sep. 30, 2010
Purchased intangible assets
 
 
 
Weighted-Average Life (in years)
14.4 
14.3 
 
Gross
$ 793.6 
$ 810.3 
$ 808.6 
Accumulated Amortization
(414.4)
(369.2)
 
Net
379.2 
441.1 
 
Non-amortizable trade names
396.2 
397.6 
397.3 
Intangible assets excluding goodwill, gross
1,189.8 
1,207.9 
1,205.9 
Purchased intangible assets, net
775.4 
838.7 
 
Amortization expense recorded in continuing operations
57.7 
59.3 
59.0 
Future amortization expense of purchased intangible assets for the five years succeeding fiscal year 2012
 
 
 
2013
55.9 
 
 
2014
54.7 
 
 
2015
53.9 
 
 
2016
53.3 
 
 
2017
45.4 
 
 
Distribution network
 
 
 
Purchased intangible assets
 
 
 
Weighted-Average Life (in years)
39.1 
39.1 
 
Gross
55.4 
55.4 
55.4 
Accumulated Amortization
(22.2)
(20.8)
 
Net
33.2 
34.6 
 
Distribution network |
Pierce
 
 
 
Purchased intangible assets
 
 
 
Weighted-Average Life (in years)
40 
 
 
Net
31.8 
 
 
Non-compete
 
 
 
Purchased intangible assets
 
 
 
Weighted-Average Life (in years)
10.5 
10.5 
 
Gross
56.9 
56.9 
56.3 
Accumulated Amortization
(55.5)
(53.0)
 
Net
1.4 
3.9 
 
Technology-related
 
 
 
Purchased intangible assets
 
 
 
Weighted-Average Life (in years)
12.0 
11.7 
 
Gross
100.9 
104.8 
104.0 
Accumulated Amortization
(58.4)
(53.3)
 
Net
42.5 
51.5 
 
Customer relationships
 
 
 
Purchased intangible assets
 
 
 
Weighted-Average Life (in years)
12.7 
12.7 
 
Gross
563.8 
576.7 
577.2 
Accumulated Amortization
(265.5)
(229.9)
 
Net
298.3 
346.8 
 
Other
 
 
 
Purchased intangible assets
 
 
 
Weighted-Average Life (in years)
16.5 
16.5 
 
Gross
16.6 
16.5 
15.7 
Accumulated Amortization
(12.8)
(12.2)
 
Net
$ 3.8 
$ 4.3 
 
Other Long-Term Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Other Assets, Noncurrent Disclosure [Abstract]
 
 
 
Customer notes receivable
$ 18.8 
$ 24.1 
 
Deferred finance costs
17.8 
21.8 
 
Long-term finance receivables, less current portion
1.4 
9.4 
 
Other
24.8 
23.9 
 
Other long-term assets, gross
62.8 
79.2 
 
Less allowance for doubtful notes receivable
(7.4)
(7.6)
 
Other long-term assets, net
55.4 
71.6 
 
Amortization expense related to deferred finance costs
7.0 
5.1 
28.6 
Amortization expense related to early repayment of debt
$ 2.3 
$ 0.1 
$ 20.4 
Leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Capital Leases
 
 
 
Rental expense for property, plant and equipment
$ 44.5 
$ 41.8 
$ 40.0 
Operating Leases
 
 
 
Operating Leases, 2013
22.4 
 
 
Operating Leases, 2014
14.0 
 
 
Operating Leases, 2015
10.8 
 
 
Operating Leases, 2016
9.7 
 
 
Operating Leases, 2017
5.2 
 
 
Operating Leases, Thereafter
5.6 
 
 
Minimum lease payments due annually under variable rate leases
$ 0.4 
 
 
Credit Agreements (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 1 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Credit agreement
M
numerator
denominator
Sep. 30, 2012
Credit agreement
After March 31, 2012
Sep. 30, 2012
Credit agreement
Minimum
Sep. 30, 2012
Credit agreement
Maximum
Sep. 30, 2012
Senior Secured Term Loan
Sep. 30, 2011
Senior Secured Term Loan
Sep. 30, 2012
Revolving credit facility
Sep. 30, 2012
Credit agreement - dollar-denominated loans
Sep. 30, 2012
Credit agreement - dollar-denominated loans
Federal Funds rate
Sep. 30, 2012
Credit agreement - dollar-denominated loans
LIBOR
Sep. 30, 2012
Senior notes
Mar. 31, 2010
8 1/4 % Senior notes due March 2017
Sep. 30, 2012
8 1/4 % Senior notes due March 2017
Sep. 30, 2011
8 1/4 % Senior notes due March 2017
Mar. 31, 2011
8 1/4 % Senior notes due March 2017
Mar. 31, 2010
8 1/2 % Senior notes due March 2020
Sep. 30, 2012
8 1/2 % Senior notes due March 2020
Sep. 30, 2011
8 1/2 % Senior notes due March 2020
Mar. 31, 2011
8 1/2 % Senior notes due March 2020
Sep. 30, 2012
Other long-term facilities
Sep. 30, 2011
Other long-term facilities
Sep. 30, 2012
Letter of credit
Long term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt
$ 955.0 
$ 1,060.1 
 
 
 
 
$ 455.0 
$ 560.0 
 
 
 
 
 
 
$ 250.0 
$ 250.0 
 
 
$ 250.0 
$ 250.0 
 
$ 0 
$ 0.1 
 
Less current maturities
0 
(40.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt net of current maturities
955.0 
1,020.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, current
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
0 
40.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving line of credit and current maturities of long-term debt
0 
40.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.25% 
8.25% 
8.25% 
 
8.50% 
8.50% 
8.50% 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
 
525 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issued
 
 
 
 
 
 
455.0 
 
 
 
 
 
 
250.0 
 
 
 
250.0 
 
 
 
 
 
 
Quarterly principal installment, at commencement
 
 
 
 
 
 
16.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment due at maturity
 
 
 
 
 
 
341.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
179.8 
Available borrowing capacity
 
 
 
 
 
 
 
 
345.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, unused commitment fee rate (as a percent)
 
 
 
 
0.25% 
0.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letter of credit fees percentage on available borrowing capacity, low end of range (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.75% 
Letter of credit fees percentage on available borrowing capacity, high end of range (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
Variable rate basis
 
 
LIBOR plus a specified margin 
 
 
 
 
 
 
base rate (which is the highest of (a) the administrative agent’s prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin 
federal funds rate 
one-month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
Interest spread in basis points (as a percent)
 
 
 
 
 
 
1.75% 
 
1.75% 
 
0.50% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average interest rate (as a percent)
 
 
 
 
 
 
1.97% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum leverage ratio, numerator
 
 
4.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum leverage ratio, denominator
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum interest coverage ratio, numerator
 
 
2.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum interest coverage ratio, denominator
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum senior secured leverage ratio for fiscal quarter ending September 30, 2012, numerator
 
 
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum senior secured leverage ratio for fiscal quarter ending September 30, 2012, denominator
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum senior secured leverage ratio Thereafter, numerator
 
 
2.75 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum senior secured leverage ratio Thereafter, denominator
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period within which entity expects to be able to meet the financial covenants (in months)
 
 
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend payment restriction under credit agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum aggregate dividends and other distributions allowed during any fiscal year
 
 
485 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of consolidated net income of the Company and its subsidiaries accrued on a cummulative basis during the period beginning on April 1, 2012 and ending on the last day of the fiscal quarter
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of consolidated net deficit of the Company and its subsidiaries accrued on a cummulative basis during the period beginning on April 1, 2012 and ending on the last day of the fiscal quarter
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of aggregate net proceeds received by the Company subsequent ot March 31, 2012 as a contribution to its common equity or from the issuance and sale of its Common Stock
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt
 
 
 
 
 
 
 
 
 
 
 
 
$ 550 
 
 
 
 
 
 
 
 
 
 
 
Warranties (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Y
M
Sep. 30, 2011
Sep. 30, 2010
Product Warranties Disclosures [Abstract]
 
 
 
Product warranty, minimum (in months)
6 
 
 
Product warranty, maximum (in years)
5 
 
 
Warranty costs
$ 72.5 
$ 30.2 
$ 87.8 
Changes in warranty liability
 
 
 
Balance at beginning of year
75.0 
90.5 
 
Warranty provisions
58.8 
42.6 
 
Settlements made
(52.8)
(46.8)
 
Change in liability for pre-existing warranties, net
13.7 
(11.5)
 
Disposition of business
(0.1)
0 
 
Foreign currency translation
0.4 
0.2 
 
Balance at end of year
$ 95.0 
$ 75.0 
$ 90.5 
Guarantee Arrangements (Details) (Access Equipment, USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Customer obligation guarantees
 
 
Guarantee Obligations
 
 
Guarantee obligations, maximum exposure
$ 363.8 
 
Aggregate amount of indebtedness which the Company is a party to through guarantee agreements
94.6 
 
Changes in provision for loss on customer guarantees
 
 
Balance at beginning of year
6.5 
23.1 
Provision for new credit guarantees
1.9 
0.5 
Settlements made
(0.9)
(3.0)
Change for pre-existing guarantees, net
(1.4)
(12.7)
Amortization of previous guarantees
(1.0)
(1.3)
Foreign currency translation
(0.1)
(0.1)
Balance at end of year
5.0 
6.5 
Amount of customer's repayment of loans supported by Company guarantees
28.3 
 
Reversal of reserve upon release of guarantees
8.1 
 
Loss pool agreements
 
 
Guarantee Obligations
 
 
Aggregate amount of indebtedness which the Company is a party to through guarantee agreements
$ 132.2 
 
Derivative Financial Instruments and Hedging Activities (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Interest rate contracts
 
 
 
Open derivative instruments
 
 
 
Amortization to interest expense of derivative losses
$ 2.2 
$ 16.6 
$ 41.6 
Not designated as hedging instruments
 
 
 
Open derivative instruments
 
 
 
Notional amounts of outstanding forward foreign exchange contracts
142.7 
 
 
Not designated as hedging instruments |
Sell Euros
 
 
 
Open derivative instruments
 
 
 
Notional amounts of outstanding forward foreign exchange sale contracts to buy dollars
76.2 
 
 
Not designated as hedging instruments |
Sell Australian dollars
 
 
 
Open derivative instruments
 
 
 
Notional amounts of outstanding forward foreign exchange sale contracts to buy dollars
54.3 
 
 
Not designated as hedging instruments |
Sell U.K. pounds sterling and buy Euros
 
 
 
Open derivative instruments
 
 
 
Notional amounts of outstanding forward foreign exchange contracts
$ 2.7 
 
 
Derivative Financial Instruments and Hedging Activities (Details 2) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Other Current Assets
 
 
Fair values of open derivative instruments
 
 
Fair value of derivative assets
$ 0.4 
$ 0.8 
Other Current Liabilities
 
 
Fair values of open derivative instruments
 
 
Fair value of derivative liabilities
0 
2.3 
Designated as hedging instruments |
Interest rate contracts |
Other Current Assets
 
 
Fair values of open derivative instruments
 
 
Fair value of derivative assets
0 
0 
Designated as hedging instruments |
Interest rate contracts |
Other Current Liabilities
 
 
Fair values of open derivative instruments
 
 
Fair value of derivative liabilities
0 
2.1 
Not designated as hedging instruments |
Foreign exchange contracts |
Other Current Assets
 
 
Fair values of open derivative instruments
 
 
Fair value of derivative assets
0.4 
0.8 
Not designated as hedging instruments |
Foreign exchange contracts |
Other Current Liabilities
 
 
Fair values of open derivative instruments
 
 
Fair value of derivative liabilities
$ 0 
$ 0.2 
Derivative Financial Instruments and Hedging Activities (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Pre-tax gains (losses) on derivative instruments
 
 
 
Total pre-tax effects of derivative instruments
$ (7.5)
$ (14.6)
 
Interest rate contracts
 
 
 
Pre-tax gains (losses) on derivative instruments
 
 
 
Reclassified from other comprehensive income (effective portion):
(2.2)
(16.6)
(41.6)
Foreign exchange contracts |
Miscellaneous, net
 
 
 
Pre-tax gains (losses) on derivative instruments
 
 
 
Not designated as hedges
(5.3)
2.0 
 
Cash flow hedges |
Interest rate contracts |
Interest expense
 
 
 
Pre-tax gains (losses) on derivative instruments
 
 
 
Reclassified from other comprehensive income (effective portion):
$ (2.2)
$ (16.6)
 
Fair Value Measurement (Details) (Fair value measured on recurring basis, USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Level 1
 
Assets:
 
Foreign currency exchange derivatives
$ 0 1
Level 2
 
Assets:
 
Foreign currency exchange derivatives
0.4 1
Level 3
 
Assets:
 
Foreign currency exchange derivatives
0 1
Total
 
Assets:
 
Foreign currency exchange derivatives
$ 0.4 1
Oshkosh Corporation Shareholders' Equity (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 12 Months Ended
Jul. 31, 2012
Sep. 30, 2012
Jul. 31, 1995
Stockholders' Equity Note [Abstract]
 
 
 
Number of shares of common stock authorized for buyback (in shares)
 
 
6,000,000 
Increase in number of shares of common stock authorized for buyback (in shares)
4,000,000 
 
 
Shares repurchased under authorization (in shares)
 
546,965 
 
Value of shares repurchased under authorization
 
$ 13.3 
 
Shares of common stock purchased (in shares)
 
3,316,175 
 
Aggregate cost of common stock repurchased
 
$ 19.9 
 
Remaining number of shares authorized to be repurchased (in shares)
 
6,683,825 
 
Stock-Based Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Feb. 28, 2009
Plan
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Jan. 31, 2012
2009 Stock Plan - stock options
Sep. 30, 2012
2009 Stock Plan - stock options
Y
Sep. 30, 2011
2009 Stock Plan - stock options
Y
Sep. 30, 2010
2009 Stock Plan - stock options
Y
Sep. 30, 2012
2009 Stock Plan - stock options
Price Range, $7.95 - $19.75
Y
Sep. 30, 2012
2009 Stock Plan - stock options
Price Range, $28.27 - $38.46
Y
Sep. 30, 2012
2009 Stock Plan - stock options
Price Range, $39.91 - $54.63
Y
Sep. 30, 2012
Equity compensation plans approved by security holders
Sep. 30, 2012
Equity compensation plans not approved by security holders
Sep. 30, 2012
Nonvested Stock Awards
Y
Sep. 30, 2011
Nonvested Stock Awards
Sep. 30, 2010
Nonvested Stock Awards
Sep. 30, 2012
Performance Share Awards
Y
Sep. 30, 2011
Performance Share Awards
Y
Sep. 30, 2010
Performance Share Awards
Y
Sep. 30, 2012
Stock Appreciation Rights
Y
Sep. 30, 2011
Stock Appreciation Rights
Sep. 30, 2010
Stock Appreciation Rights
Sep. 30, 2012
Cash-Settled Restricted Stock Units
Y
Sep. 30, 2011
Cash-Settled Restricted Stock Units
Sep. 30, 2011
Previously Reported
Performance Share Awards
Sep. 30, 2010
Previously Reported
Performance Share Awards
Sep. 30, 2011
Actual
Performance Share Awards
Sep. 30, 2010
Actual
Performance Share Awards
Sep. 30, 2012
Adjustment
Performance Share Awards
Sep. 30, 2012
Adjustment
Previously Immaterial Error
Net Income [Member]
Performance Share Awards
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized
 
 
 
 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of outstanding plans as of approval date of the 2009 Stock Plan (in plans)
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period over which awards are exercisable in equal installments, beginning with the first anniversary of the date of grant of awards (in years)
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenure of award (in years)
 
 
 
 
 
7 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock reserved for issuance stock awards (in shares)
 
10,639,774 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense
 
$ 27.1 
$ 15.2 
$ 14.3 
 
$ 6.3 
$ 11.4 
$ 12.4 
 
 
 
 
 
$ 4.1 
$ 3.0 
$ 0.9 
$ 8.1 
$ 1.1 
$ 1.4 
$ 4.4 
$ (0.4)
$ (0.4)
$ 4.2 
$ 0.1 
 
 
 
 
$ 4.9 
 
Correction of misstatement, decrease to net income, after tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.1 
Stock-based compensation expense, net of tax
 
17.2 
9.6 
9.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity-based compensation plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Securities to be Issued Upon Exercise of Outstanding Options or Vesting of Performance Share Awards (in shares)
 
5,364,834 
 
 
 
 
 
 
 
 
 
5,364,834 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Exercise Price of Outstanding Options (in dollars per share)
 
$ 31.26 
 
 
 
$ 31.26 
$ 30.72 
$ 30.32 
$ 14.86 
$ 30.23 
$ 49.18 
$ 31.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (in shares)
 
5,274,940 
 
 
 
 
 
 
 
 
 
5,274,940 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options outstanding, beginning of year (in shares)
 
 
 
 
 
4,774,714 
5,158,370 
5,330,109 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted (in shares)
 
 
 
 
 
576,400 
411,575 
954,350 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options forfeited (in shares)
 
 
 
 
 
(151,092)
(173,009)
(39,836)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options expired (in shares)
 
 
 
 
 
(235,081)
(118,199)
(9,499)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercised (in shares)
 
 
 
 
 
(286,107)
(504,023)
(1,076,754)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options outstanding, end of year (in shares)
 
 
 
 
 
4,678,834 
4,774,714 
5,158,370 
1,129,808 
2,378,376 
1,170,650 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercisable, end of year (in shares)
 
 
 
 
 
3,620,565 
3,478,310 
2,955,909 
894,802 
1,555,113 
1,170,650 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Exercise Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options outstanding, beginning of year (in dollars per share)
 
 
 
 
 
$ 30.72 
$ 30.32 
$ 28.03 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted (in dollars per share)
 
 
 
 
 
$ 28.55 
$ 20.90 
$ 28.96 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options forfeited (in dollars per share)
 
 
 
 
 
$ 26.76 
$ 27.22 
$ 27.46 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options expired (in dollars per share)
 
 
 
 
 
$ 39.26 
$ 47.46 
$ 54.12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercised (in dollars per share)
 
 
 
 
 
$ 12.56 
$ 15.94 
$ 17.66 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options outstanding, end of year (in dollars per share)
 
$ 31.26 
 
 
 
$ 31.26 
$ 30.72 
$ 30.32 
$ 14.86 
$ 30.23 
$ 49.18 
$ 31.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercisable, end of year (in dollars per share)
 
 
 
 
 
$ 32.53 
$ 32.13 
$ 33.49 
$ 13.76 
$ 30.81 
$ 49.18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumptions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk-free interest rate (as a percent)
 
 
 
 
 
0.74% 
0.95% 
1.45% 
 
 
 
 
 
 
 
 
0.37% 
0.29% 
0.73% 
 
 
 
 
 
 
 
 
 
 
 
Expected volatility (as a percent)
 
 
 
 
 
66.03% 
63.88% 
61.98% 
 
 
 
 
 
 
 
 
44.90% 
76.98% 
79.86% 
 
 
 
 
 
 
 
 
 
 
 
Expected dividend yield (as a percent)
 
 
 
 
 
0.00% 
0.00% 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected term (in years)
 
 
 
 
 
5.23 
5.23 
5.28 
 
 
 
 
 
 
 
 
3.00 
3.00 
3.00 
 
 
 
 
 
 
 
 
 
 
 
Additional disclosures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average per share fair values for stock option granted (in dollars per share)
 
 
 
 
 
$ 15.95 
$ 11.42 
$ 15.69 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense
 
 
 
 
 
10.2 
 
 
 
 
 
 
 
13.3 
 
 
 
 
 
2.7 
 
 
5.1 
 
 
 
 
 
 
 
Weighted-average period for unrecognized compensation expense to be recognized (in years)
 
 
 
 
 
2.6 
 
 
 
 
 
 
 
2.8 
 
 
 
 
 
2.1 
 
 
2.0 
 
 
 
 
 
 
 
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)
 
 
 
 
 
 
 
 
$ 7.95 
$ 28.27 
$ 39.91 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise prices, outstanding stock option awards, high end of range (in dollars per share)
 
 
 
 
 
 
 
 
$ 19.75 
$ 38.46 
$ 54.63 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number Outstanding (in shares)
 
 
 
 
 
4,678,834 
4,774,714 
5,158,370 
1,129,808 
2,378,376 
1,170,650 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Remaining Contractual Life, Options Outstanding (in years)
 
 
 
 
 
4.8 
 
 
5.4 
4.8 
4.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Exercise Price, Options Outstanding (in dollars per share)
 
$ 31.26 
 
 
 
$ 31.26 
$ 30.72 
$ 30.32 
$ 14.86 
$ 30.23 
$ 49.18 
$ 31.26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate Intrinsic Value, Options Outstanding
 
 
 
 
 
14.2 
 
 
14.2 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise prices, outstanding and potentially exercisable stock option awards, low end of range (in dollars per share)
 
 
 
 
 
 
 
 
$ 7.95 
$ 28.27 
$ 39.91 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise prices, outstanding and potentially exercisable stock option awards, high end of range (in dollars per share)
 
 
 
 
 
 
 
 
$ 19.75 
$ 38.46 
$ 54.63 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number Exercisable (in shares)
 
 
 
 
 
3,620,565 
3,478,310 
2,955,909 
894,802 
1,555,113 
1,170,650 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Remaining Contractual Life, Options Exercisable (in years)
 
 
 
 
 
4.4 
 
 
5.2 
4.1 
4.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Exercise Price, Options Exercisable (in dollars per share)
 
 
 
 
 
$ 32.53 
$ 32.13 
$ 33.49 
$ 13.76 
$ 30.81 
$ 49.18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate Intrinsic Value, Options Exercisable
 
 
 
 
 
12.2 
 
 
12.2 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total intrinsic value of options exercised
 
 
 
 
 
3.3 
9.6 
22.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash proceeds from exercise of stock options
 
3.6 
8.0 
19.0 
 
3.6 
8.0 
19.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actual income tax benefit realized from exercise of stock options
 
 
 
 
 
1.2 
3.5 
8.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested, beginning of year (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
228,615 
128,907 
2,935 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
514,800 
166,412 
141,682 
142,000 
153,500 
75,000 
36,400 
441,000 
 
105,600 
269,000 
 
 
 
 
 
 
Forfeited (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
(37,502)
(5,000)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
(136,631)
(61,704)
(15,710)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested, end of year (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
569,282 
228,615 
128,907 
343,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Grant Date Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested, beginning of year (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 23.75 
$ 30.22 
$ 53.40 
 
 
 
 
 
 
 
 
$ 9.75 
$ 13.88 
$ 27.93 
$ 41.10 
 
 
Granted (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 27.37 
$ 21.99 
$ 30.93 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 23.04 
$ 28.73 
$ 0.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 24.70 
$ 32.12 
$ 40.91 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested, end of year (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 26.84 
$ 23.75 
$ 30.22 
$ 35.84 
 
 
 
 
 
 
 
$ 9.75 
$ 13.88 
$ 27.93 
$ 41.10 
 
 
Fair value of shares vested
 
 
 
 
 
 
 
 
 
 
 
 
 
3.5 
1.5 
0.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense
 
 
 
 
 
 
 
 
 
 
 
 
 
0.5 
0.2 
0.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit realized
 
$ 57.4 
$ 145.1 
$ 421.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.7 
 
 
 
 
 
 
 
 
 
 
 
 
Period over which shareholder return compares favorably to that of a competitor group of companies for purposes of calculating executive performance shares earned (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential payouts, low end of range (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potential payouts, high end of range (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percent
 
0.00% 
195.00% 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and Other Charges (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Cost of Sales
Sep. 30, 2011
Cost of Sales
Sep. 30, 2012
Selling, General and Administrative
Sep. 30, 2011
Selling, General and Administrative
Sep. 30, 2010
JerrDan manufacturing facilities closing
Facility
Mar. 31, 2012
JerrDan manufacturing facilities closing
Apr. 30, 2011
Medtec
Facility
Sep. 30, 2012
Medtec
Sep. 30, 2012
Employee Severance and Termination Benefits
Sep. 30, 2011
Employee Severance and Termination Benefits
Sep. 30, 2012
Property, Plant and Equipment Impairment
Sep. 30, 2011
Property, Plant and Equipment Impairment
Sep. 30, 2012
Other Restructuring
Sep. 30, 2011
Other Restructuring
Sep. 30, 2012
Access Equipment
Sep. 30, 2011
Access Equipment
Sep. 30, 2012
Access Equipment
Cost of Sales
Sep. 30, 2011
Access Equipment
Cost of Sales
Sep. 30, 2012
Access Equipment
Selling, General and Administrative
Sep. 30, 2011
Access Equipment
Selling, General and Administrative
Sep. 30, 2012
Defense
Sep. 30, 2011
Defense
Sep. 30, 2012
Defense
Cost of Sales
Sep. 30, 2011
Defense
Cost of Sales
Sep. 30, 2012
Defense
Selling, General and Administrative
Sep. 30, 2011
Defense
Selling, General and Administrative
Sep. 30, 2012
Fire and Emergency
Sep. 30, 2011
Fire and Emergency
Sep. 30, 2012
Fire and Emergency
Cost of Sales
Sep. 30, 2011
Fire and Emergency
Cost of Sales
Sep. 30, 2012
Fire and Emergency
Selling, General and Administrative
Sep. 30, 2011
Fire and Emergency
Selling, General and Administrative
Sep. 30, 2012
Commercial
Sep. 30, 2011
Commercial
Sep. 30, 2012
Commercial
Cost of Sales
Sep. 30, 2011
Commercial
Cost of Sales
Sep. 30, 2012
Commercial
Selling, General and Administrative
Sep. 30, 2011
Commercial
Selling, General and Administrative
Restructuring and related activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of facilities closed
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reversal of previously accrued liability for lease termination costs
 
 
 
 
 
 
 
$ 2.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of facilities, previously reported
 
 
 
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax restructuring charges
4.3 
6.9 
0.1 
4.9 
4.2 
2.0 
 
 
 
3.9 
 
 
 
 
 
 
(0.3)
1.7 
(0.2)
1.0 
(0.1)
0.7 
0 
3.7 
0 
3.7 
0 
0 
4.5 
1.1 
0.2 
0.1 
4.3 
1.0 
0.1 
0.4 
0.1 
0.1 
0 
0.3 
Production inefficiencies
 
 
 
 
 
 
 
 
 
11.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory write-down
 
 
 
 
 
 
 
 
 
3.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at the beginning of the period
3.6 
4.8 
 
 
 
 
 
 
 
 
3.6 
1.6 
0 
0 
0 
3.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring provisions
4.3 
6.9 
 
 
 
 
 
 
 
 
0.7 
6.0 
0.9 
3.4 
2.7 
(2.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Utilized - cash
(1.6)
(5.3)
 
 
 
 
 
 
 
 
(1.1)
(4.6)
0 
0 
(0.5)
(0.7)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Utilized - noncash
(1.0)
(3.4)
 
 
 
 
 
 
 
 
0 
0 
(0.9)
(3.4)
(0.1)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency
(0.4)
0.6 
 
 
 
 
 
 
 
 
(0.4)
0.6 
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at the end of the period
$ 4.9 
$ 3.6 
 
 
 
 
 
 
 
 
$ 2.8 
$ 3.6 
$ 0 
$ 0 
$ 2.1 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Amounts included in accumulated other comprehensive income (loss) prior service costs and unrecognized net actuarial losses expected to be recognized in Pension and Supplemental Employee Retirement Plan
 
 
 
Prior service cost included in accumulated other comprehensive income (loss)
$ 1.8 
 
 
Prior service cost included in accumulated other comprehensive income (loss), net of tax
1.1 
 
 
Unrecognized net actuarial losses included in accumulated other comprehensive income (loss)
4.4 
 
 
Unrecognized net actuarial losses included in accumulated other comprehensive income (loss), net of tax
2.8 
 
 
Defined Pension Benefit Plans
 
 
 
Change in benefit obligation
 
 
 
Plan amendments
(31.4)
 
 
Components of net periodic benefit cost
 
 
 
Curtailment
(2.5)
 
 
U.S. Pension Plans
 
 
 
Employee benefit plans
 
 
 
Accumulated benefit obligation
377.7 
321.7 
 
Change in benefit obligation
 
 
 
Benefit obligation at the beginning of the period
352.6 
283.6 
 
Service cost
20.6 
16.6 
13.5 
Interest cost
16.3 
13.9 
12.4 
Actuarial loss
32.6 
33.2 
 
Participant contributions
0.1 
0.1 
 
Plan amendments
0 
10.9 
 
Curtailments
(33.7)
0 
 
Benefits paid
(11.1)
(5.6)
 
Currency translation adjustments
0.5 
(0.1)
 
Benefit obligation at the end of the period
377.9 
352.6 
283.6 
Change in plan assets
 
 
 
Fair value of plan assets at the beginning of the period
213.9 
192.1 
 
Actual return on plan assets
42.8 
3.3 
 
Company contributions
35.8 
25.9 
 
Participant contributions
0.1 
0.1 
 
Benefits paid
(11.1)
(5.6)
 
Expenses paid
(1.8)
(1.8)
 
Currency translation adjustments
0.7 
(0.1)
 
Fair value of plan assets at the end of the period
280.4 
213.9 
192.1 
Funded status of plan - under funded
(97.5)
(138.7)
 
Amounts recognized in consolidated balance sheet
 
 
 
Prepaid benefit cost (long-term asset)
4.0 
2.6 
 
Accrued benefit liability (current liability)
(1.4)
(5.2)
 
Accrued benefit liability (long-term liability)
(100.1)
(136.1)
 
Total
(97.5)
(138.7)
 
Amounts recognized in accumulated other comprehensive income (loss) (net of taxes)
 
 
 
Net actuarial loss
(72.9)
(96.0)
 
Prior service cost
(13.1)
(16.2)
 
Total
(86.0)
(112.2)
 
Weighted-average assumptions for calculating benefit obligation
 
 
 
Discount rate (as a percent)
4.24% 
4.72% 
 
Expected return on plan assets (as a percent)
6.25% 
7.00% 
 
Rate of compensation increase (as a percent)
3.69% 
3.73% 
 
Accumulated benefit obligations in excess of plan assets
 
 
 
Projected benefit obligation
361.8 
338.9 
 
Accumulated benefit obligation
361.2 
308.1 
 
Fair value of plan assets
260.2 
197.6 
 
Components of net periodic benefit cost
 
 
 
Service cost
20.6 
16.6 
13.5 
Interest cost
16.3 
13.9 
12.4 
Expected return on plan assets
(15.6)
(15.9)
(13.0)
Amortization of prior service cost
2.3 
1.9 
2.1 
Curtailment
3.4 
1.5 
0.6 
Amortization of net actuarial loss
7.1 
5.6 
4.1 
Expenses paid
1.8 
1.4 
2.5 
Net periodic benefit cost
35.9 
25.0 
22.2 
Other changes in plan assets and benefit obligation recognized in other comprehensive income
 
 
 
Net actuarial loss (gain)
(26.0)
46.2 
16.6 
Prior service cost
(0.9)
10.9 
3.0 
Amortization of prior service cost
(4.8)
(1.9)
(2.0)
Curtailment
(2.3)
0 
0 
Amortization of net actuarial (gain) loss
(7.1)
(7.1)
(4.7)
Total
(41.1)
48.1 
12.9 
Weighted-average assumptions for calculating net periodic benefit cost
 
 
 
Discount rate (as a percent)
4.72% 
4.75% 
5.25% 
Expected return on plan assets (as a percent)
7.00% 
7.75% 
7.75% 
Rate of compensation increase (as a percent)
3.78% 
3.94% 
4.29% 
Supplemental Executive Retirement Plans
 
 
 
Change in benefit obligation
 
 
 
Plan amendments
(2.3)
 
 
Components of net periodic benefit cost
 
 
 
Curtailment
0.9 
 
 
Postretirement Health and Other
 
 
 
Employee benefit plans
 
 
 
Average remaining years of service (in years)
17 years 
 
 
Accumulated benefit obligation
80.4 
77.7 
 
Change in benefit obligation
 
 
 
Benefit obligation at the beginning of the period
77.7 
64.8 
 
Service cost
7.2 
4.5 
4.1 
Interest cost
3.4 
3.0 
2.8 
Actuarial loss
2.6 
6.5 
 
Participant contributions
0 
0 
 
Plan amendments
(9.2)
0 
 
Curtailments
0 
0 
 
Benefits paid
(1.3)
(1.1)
 
Currency translation adjustments
0 
0 
 
Benefit obligation at the end of the period
80.4 
77.7 
64.8 
Change in plan assets
 
 
 
Fair value of plan assets at the beginning of the period
0 
0 
 
Actual return on plan assets
0 
0 
 
Company contributions
1.3 
1.1 
 
Participant contributions
0 
0 
 
Benefits paid
(1.3)
(1.1)
 
Expenses paid
0 
0 
 
Currency translation adjustments
0 
0 
 
Fair value of plan assets at the end of the period
0 
0 
0 
Funded status of plan - under funded
(80.4)
(77.7)
 
Amounts recognized in consolidated balance sheet
 
 
 
Prepaid benefit cost (long-term asset)
0 
0 
 
Accrued benefit liability (current liability)
(2.5)
(2.8)
 
Accrued benefit liability (long-term liability)
(77.9)
(74.9)
 
Total
(80.4)
(77.7)
 
Amounts recognized in accumulated other comprehensive income (loss) (net of taxes)
 
 
 
Net actuarial loss
(19.3)
(18.5)
 
Prior service cost
5.8 
0 
 
Total
(13.5)
(18.5)
 
Weighted-average assumptions for calculating benefit obligation
 
 
 
Discount rate (as a percent)
3.95% 
4.45% 
 
Components of net periodic benefit cost
 
 
 
Service cost
7.2 
4.5 
4.1 
Interest cost
3.4 
3.0 
2.8 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
0 
0 
0 
Curtailment
0 
0 
0 
Amortization of net actuarial loss
1.3 
1.1 
0.9 
Expenses paid
0 
0 
0 
Net periodic benefit cost
11.9 
8.6 
7.8 
Other changes in plan assets and benefit obligation recognized in other comprehensive income
 
 
 
Net actuarial loss (gain)
2.6 
6.5 
3.9 
Prior service cost
0 
0 
0 
Amortization of prior service cost
0 
0 
0 
Curtailment
(9.2)
0 
0 
Amortization of net actuarial (gain) loss
(1.3)
(1.1)
(0.9)
Total
(7.9)
5.4 
3.0 
Weighted-average assumptions for calculating net periodic benefit cost
 
 
 
Discount rate (as a percent)
4.45% 
4.75% 
5.25% 
Health care cost trend rate
 
 
 
Health care cost trend rate (as a percent)
8.50% 
 
 
Assumed health care cost trend rate for next fiscal year (as a percent)
5.50% 
 
 
Increase in accumulated postretirement benefit obligation with 100 basis points increase in health care cost trend rate
11.2 
 
 
Increase in net periodic postretirement benefit cost with 100 basis points increase in health care cost trend rate
2.2 
 
 
Decrease in accumulated postretirement benefit obligation with 100 basis points decrease in health care cost trend rate
9.3 
 
 
Decrease in net periodic postretirement benefit cost with 100 basis points decrease in health care cost trend rate
$ 1.8 
 
 
Employee Benefit Plans (Details 1) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Multi-Employer Pension Plans
 
 
 
Multiemployer plan period contributions
$ 1.0 
$ 0.7 
$ 0.6 
401(k) plans
 
 
 
Percentage contribution by employees for defined contribution 401(k) plans, low end of range (as a percent)
2.00% 
 
 
Percentage contribution by employees for defined contribution 401(k) plans, high end of range (as a percent)
100.00% 
 
 
Amounts expensed (income recognized) for matching and discretionary contributions
11.3 
10.5 
5.1 
Level 1
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
168.3 
119.7 
 
Level 1 |
U.S. companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
146.8 1
104.2 1
 
Level 1 |
International companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 2
0 2
 
Level 1 |
Government and agency bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
7.1 3
3.8 3
 
Level 1 |
Municipal bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0 4
 
Level 1 |
Corporate bonds and notes
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 5
0 5
 
Level 1 |
Money market funds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
14.4 6
11.7 6
 
Level 1 |
Venture capital closely held limited partnership
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0 7
 
Level 2
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
112.1 
94.1 
 
Level 2 |
U.S. companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
3.7 1
0 1
 
Level 2 |
International companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
17.7 2
14.6 2
 
Level 2 |
Government and agency bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
39.2 3
35.6 3
 
Level 2 |
Municipal bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0.1 4
 
Level 2 |
Corporate bonds and notes
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
51.5 5
43.8 5
 
Level 2 |
Money market funds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 6
0 6
 
Level 2 |
Venture capital closely held limited partnership
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0 7
 
Level 3
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 
0.1 
 
Level 3 |
U.S. companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 1
0 1
 
Level 3 |
International companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 2
0 2
 
Level 3 |
Government and agency bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 3
0 3
 
Level 3 |
Municipal bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0 4
 
Level 3 |
Corporate bonds and notes
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 5
0 5
 
Level 3 |
Money market funds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 6
0 6
 
Level 3 |
Venture capital closely held limited partnership
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0.1 7
 
Total
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
280.4 
213.9 
 
Total |
U.S. companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
150.5 1
104.2 1
 
Total |
International companies
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
17.7 2
14.6 2
 
Total |
Government and agency bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
46.3 3
39.4 3
 
Total |
Municipal bonds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0.1 4
 
Total |
Corporate bonds and notes
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
51.5 5
43.8 5
 
Total |
Money market funds
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
14.4 6
11.7 6
 
Total |
Venture capital closely held limited partnership
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
 
0.1 7
 
U.S. Pension Plans
 
 
 
Plan assets, target allocation
 
 
 
Fixed income target range, minimum (as a percent)
30.00% 
 
 
Fixed income target range, maximum (as a percent)
40.00% 
 
 
Large-cap growth target range, minimum (as a percent)
25.00% 
 
 
Large-cap growth target range, maximum (as a percent)
35.00% 
 
 
Large-cap value target range, minimum (as a percent)
5.00% 
 
 
Large-cap value target range, maximum (as a percent)
15.00% 
 
 
Mid-cap value target range, minimum (as a percent)
5.00% 
 
 
Mid-cap value target range, maximum (as a percent)
15.00% 
 
 
Small-cap value target range, minimum (as a percent)
5.00% 
 
 
Small-cap value target range, maximum (as a percent)
15.00% 
 
 
Venture capital target range, minimum (as a percent)
0.00% 
 
 
Venture capital target range, maximum (as a percent)
5.00% 
 
 
Plan assets, actual allocation
 
 
 
Fixed income (as a percent)
39.00% 
43.00% 
 
Large-cap growth (as a percent)
30.00% 
30.00% 
 
Large-cap value (as a percent)
10.00% 
9.00% 
 
Mid-cap value (as a percent)
10.00% 
8.00% 
 
Small-cap value (as a percent)
11.00% 
10.00% 
 
Venture capital (as a percent)
0.00% 
0.00% 
 
Total assets- at fair value (as a percent)
100.00% 
100.00% 
 
Total assets - at fair value
280.4 
213.9 
192.1 
Estimated future benefit payment under company sponsored plans
 
 
 
2013
7.0 
 
 
2014
7.7 
 
 
2015
8.5 
 
 
2016
9.5 
 
 
2017
10.6 
 
 
2018-2022
73.3 
 
 
Non-Qualified
 
 
 
Estimated future benefit payment under company sponsored plans
 
 
 
2013
1.4 
 
 
2014
1.4 
 
 
2015
1.4 
 
 
2016
1.4 
 
 
2017
1.4 
 
 
2018-2022
8.7 
 
 
Postretirement Health and Other
 
 
 
Plan assets, actual allocation
 
 
 
Total assets - at fair value
0 
0 
0 
Defined benefit pension plans estimated future employer contributions in fiscal year
2.5 
 
 
Estimated future benefit payment under company sponsored plans
 
 
 
2013
2.5 
 
 
2014
2.7 
 
 
2015
2.8 
 
 
2016
3.1 
 
 
2017
3.7 
 
 
2018-2022
23.4 
 
 
Minimum |
Defined Pension Benefit Plans
 
 
 
Plan assets, actual allocation
 
 
 
Defined benefit pension plans estimated future employer contributions in fiscal year
10.0 
 
 
Maximum |
Defined Pension Benefit Plans
 
 
 
Plan assets, actual allocation
 
 
 
Defined benefit pension plans estimated future employer contributions in fiscal year
$ 15.0 
 
 
Income Taxes (Details)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
EUR (€)
Sep. 30, 2011
USD ($)
Sep. 30, 2011
EUR (€)
Sep. 30, 2010
USD ($)
Sep. 30, 2010
EUR (€)
Sep. 30, 2012
Discontinued Operations
USD ($)
Pre-tax income (loss) from continuing operations
 
 
 
 
 
 
 
Domestic
$ 246.6 
 
$ 420.8 
 
$ 1,273.2 
 
 
Foreign
40.1 
 
2.8 
 
(31.5)
 
 
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
286.7 
 
423.6 
 
1,241.7 
 
 
Current:
 
 
 
 
 
 
 
Federal
110.1 
 
150.5 
 
468.3 
 
 
Foreign
3.2 
 
0.7 
 
7.4 
 
 
State
4.2 
 
3.7 
 
14.0 
 
 
Total current
117.5 
 
154.9 
 
489.7 
 
 
Deferred:
 
 
 
 
 
 
 
Federal
(59.9)
 
(14.2)
 
(57.6)
 
 
Foreign
2.0 
 
4.8 
 
(9.0)
 
 
State
(2.2)
 
(0.4)
 
(1.7)
 
 
Total deferred
(60.1)
 
(9.8)
 
(68.3)
 
 
Provision for income taxes
57.4 
 
145.1 
 
421.4 
 
 
Allocated to Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
Deferred federal, state and foreign
18.7 
 
(14.5)
 
10.5 
 
 
Effective Rate Reconciliation
 
 
 
 
 
 
 
U.S. federal tax rate (as a percent)
35.00% 
35.00% 
35.00% 
35.00% 
35.00% 
35.00% 
 
Non-deductible intangible asset impairment charges (as a percent)
0.00% 
0.00% 
0.10% 
0.10% 
0.00% 
0.00% 
 
State income taxes, net (as a percent)
(0.60%)
(0.60%)
0.80% 
0.80% 
1.00% 
1.00% 
 
Foreign taxes (as a percent)
2.40% 
2.40% 
(0.60%)
(0.60%)
(0.10%)
(0.10%)
 
Tax audit settlements (as a percent)
(4.10%)
(4.10%)
0.00% 
0.00% 
(1.20%)
(1.20%)
 
European tax incentive (as a percent)
(1.70%)
(1.70%)
(0.90%)
(0.90%)
0.60% 
0.60% 
 
Valuation allowance (as a percent)
(2.50%)
(2.50%)
1.30% 
1.30% 
0.30% 
0.30% 
 
Domestic tax credits (as a percent)
(0.30%)
(0.30%)
(1.50%)
(1.50%)
(0.10%)
(0.10%)
 
Manufacturing deduction (as a percent)
(3.60%)
(3.60%)
(1.10%)
(1.10%)
(1.90%)
(1.90%)
 
Other, net (as a percent)
(4.60%)
(4.60%)
1.20% 
1.20% 
0.30% 
0.30% 
 
Effective income tax rate (as a percent)
20.00% 
20.00% 
34.30% 
34.30% 
33.90% 
33.90% 
 
Income tax reconciliation, discrete items
44.8 
 
 
 
 
 
 
Income tax reconciliation, other adjustments, including adjustments to deferred taxes and changes to filing positions taken in prior periods
13.1 
 
 
 
 
 
 
Benefit due to the reinstatement of the U.S. research & development tax credit
 
 
2.7 
 
 
 
 
(Income recapture) tax deductions under European tax incentive agreement (in euros)
 
11.5 
 
7.8 
 
(15.9)
 
Additional (tax) benefit resulted from (income recapture) tax deductions under incentive agreement
5.0 
 
3.7 
 
(7.3)
 
 
Cumulative net deductions which are subject to recapture provisions (in euros)
 
21.5 
 
 
 
 
 
Aggregate additional unbenefitted deductions
 
92.0 
 
 
 
 
 
Deferred tax assets:
 
 
 
 
 
 
 
Other long-term liabilities
105.1 
 
112.6 
 
 
 
 
Losses and credits
78.2 
 
57.4 
 
 
 
 
Accrued warranty
30.4 
 
23.8 
 
 
 
 
Other current liabilities
32.4 
 
20.8 
 
 
 
 
Payroll-related obligations
20.1 
 
15.7 
 
 
 
 
Receivables
7.2 
 
15.2 
 
 
 
 
Other
0.1 
 
0.4 
 
 
 
 
Gross deferred tax assets
273.5 
 
245.9 
 
 
 
 
Less valuation allowance
(55.0)
 
(39.5)
 
 
 
 
Deferred tax assets
218.5 
 
206.4 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
Intangible assets
223.8 
 
241.2 
 
 
 
 
Investment in unconsolidated partnership
0 
 
5.3 
 
 
 
 
Property, plant and equipment
34.2 
 
48.8 
 
 
 
 
Inventories
16.4 
 
2.7 
 
 
 
 
Other
3.8 
 
6.8 
 
 
 
 
Deferred tax liabilities
278.2 
 
304.8 
 
 
 
 
Net deferred tax liability
(59.7)
 
(98.4)
 
 
 
 
Classification of deferred tax liability in consolidated balance sheets
 
 
 
 
 
 
 
Current net deferred tax asset
69.9 
 
72.9 
 
 
 
 
Non-current net deferred tax liability
(129.6)
 
(171.3)
 
 
 
 
Net deferred tax liability
(59.7)
 
(98.4)
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
 
 
Release of previously accrued amounts for uncertain tax positions upon income tax audit settlement
 
 
 
 
 
 
$ 6.1 
Income Taxes (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Operating loss carryforwards
 
 
 
Deferred tax assets for capital loss carryforwards
$ 11.9 
 
 
Earnings resulting from income Taxes on undistributed earnings from foreign operations
50.6 
 
 
Gross unrecognized tax benefits, excluding income tax penalties and interest
33.9 
 
 
Net unrecognized tax benefits, excluding interest and penalties that would affect the Company's net income if recognized
23.8 
43.4 
 
Net unrecognized tax benefits, excluding interest and penalties that would affect the Company's net income from continuing operations, if recognized
23.1 
23.3 
 
Reconciliation of the beginning and ending amount of unrecognized tax benefits
 
 
 
Balance at beginning of year
53.3 
52.1 
 
Additions for tax positions related to current year
3.8 
4.0 
 
Additions for tax positions related to prior years
8.7 
4.0 
 
Reductions for tax positions of prior years
(0.2)
(0.3)
 
Settlements
(28.3)
(2.0)
 
Lapse of statute of limitations
(4.4)
(4.5)
 
Balance at end of year
32.9 
53.3 
52.1 
Interest and penalties
(0.8)
(1.7)
(0.9)
Accruals for payment of interest and penalties
13.3 
14.1 
 
Estimated reduction in unrecognized tax benefits due to tax audit resolutions during the next twelve months
4.0 
 
 
Capital Loss Carryforward [Member]
 
 
 
Operating loss carryforwards
 
 
 
Capital loss carryfoward
32.4 
 
 
Valuation allowance against deferred tax assets for capital loss carryfowards
11.9 
 
 
State Jurisdiction
 
 
 
Operating loss carryforwards
 
 
 
Net operating loss carryforwards
157.0 
 
 
Tax credit carryforward
8.3 
 
 
Deferred tax assets for net operating loss carryforwards
8.2 
 
 
Deferred tax assets for state credit carryforwards
4.1 
 
 
Valuation allowance against deferred tax assets for net operating loss carryforwards
2.5 
 
 
Foreign Country
 
 
 
Operating loss carryforwards
 
 
 
Net operating loss carryforwards
191.1 
 
 
Foreign tax credit carryforwards expiration period, minimum (in years)
5 
 
 
Deferred tax assets for net operating loss carryforwards
54.0 
 
 
Valuation allowance against deferred tax assets for net operating loss carryforwards
$ 40.6 
 
 
Earnings (Loss) Per Share (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Amount attributable to Oshkosh Corporation common shareholders:
 
 
 
 
 
 
 
 
 
 
 
Net income from continuing operations
$ 77.6 1
$ 74.7 
$ 39.2 
$ 39.0 
$ 40.3 
$ 70.2 
$ 68.3 
$ 100.2 
$ 230.5 
$ 279.0 
$ 816.0 
Less: net earnings allocated to participating securities
(0.2)1
(0.2)
(0.1)
(0.1)
0.1 
0.1 
0.1 
0.1 
(0.6)
(0.4)
(0.2)
Net income available to Oshkosh Corporation common shareholders
77.4 1
74.5 
39.1 
38.9 
40.2 
70.1 
68.2 
100.1 
229.9 
278.6 
815.8 
Net income (loss) from discontinued operations
$ 1.3 1
$ 1.0 
$ (1.9)
$ (0.1)
$ (2.8)
$ (1.8)
$ (0.4)
$ (0.6)
$ 0.3 
$ (5.6)
$ (26.0)
Basic weighted-average shares outstanding (in shares)
 
 
 
 
 
 
 
 
91,330,635 
90,888,253 
89,947,873 
Effect of dilutive stock options and other equity-based compensation awards (in shares)
 
 
 
 
 
 
 
 
562,508 
685,107 
1,006,868 
Diluted weighted-average shares outstanding (in shares)
 
 
 
 
 
 
 
 
91,893,143 
91,573,360 
90,954,741 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
 
Anti dilutive options outstanding excluded from earnings per share calculation (in shares)
 
 
 
 
 
 
 
 
3,549,026 
2,294,124 
1,425,155 
[1] The fourth quarter of 2012 was impacted by: (1) a $7.8 million change in estimate to increase revenue ($5.0 million, after-tax) resulting from the definitization of contracts in the defense segment (See Note 4 of the Notes to Consolidated Financial Statements), (2) a $7.0 million increase to selling, general and administrative expenses ($4.5 million, after-tax) resulting from the correction of a prior period error in the valuation of performance shares (See Note 17 of the Notes to Consolidated Financial Statements), (3) a $3.4 million increase to selling, general and administrative expenses ($2.2 million, after-tax) resulting from the curtailment of pension and other postretirement benefit plans (See Note 19 of the Notes to Consolidated Financial Statements), and (4) a decrease in income tax expense of $5.7 million related to the correction of deferred tax assets (See Note 20 of the Notes to Consolidated Financial Statements). Correction adjustments were not material to any individual prior period or the current period and, accordingly, the prior period results have not been adjusted.
Contingencies, Significant Estimates and Concentrations (Details) (USD $)
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Loss contingencies
 
 
 
Purchase obligation commitments
$ 1,800,000,000 
$ 2,800,000,000 
 
Approximate percentage of workforce covered under collective bargaining agreements (as a percent)
25.00% 
 
 
Significant portion of revenue from DoD
 
 
 
DoD
3,452,500,000 
4,136,800,000 
7,054,700,000 
Foreign military sales
221,200,000 
74,300,000 
28,300,000 
Total DoD sales
3,673,700,000 
4,211,100,000 
7,083,000,000 
Percentage of maximum sales not accounted for by single customer (as a percent)
10.00% 
10.00% 
10.00% 
Environmental matters
 
 
 
Loss contingencies
 
 
 
Reserve for loss contingencies
2,000,000 
2,100,000 
 
Personal Injury Actions and Other
 
 
 
Loss contingencies
 
 
 
Reserve for loss contingencies
45,600,000 
41,700,000 
 
Maximum self-insurance available per claim
3,000,000 
 
 
Performance and specialty bonds
 
 
 
Loss contingencies
 
 
 
Commitments and contingencies
221,900,000 
 
 
Standby letters of credit
 
 
 
Loss contingencies
 
 
 
Commitments and contingencies
$ 179,800,000 
 
 
Business Segment Information (Details)
12 Months Ended
Sep. 30, 2012
segment
Sep. 30, 2012
Net sales
Customer concentration
Defense
DoD
Sep. 30, 2011
Net sales
Customer concentration
Defense
DoD
Sep. 30, 2010
Net sales
Customer concentration
Defense
DoD
Segment Reporting [Abstract]
 
 
 
 
Number of reportable segments of entity (in segments)
4 
 
 
 
Business Segment Information
 
 
 
 
Percentage of sales accounted for by Department of Defense (as a percent)
 
90.80% 
93.50% 
96.90% 
Business Segment Information (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
$ 8,180.9 
$ 7,567.5 
$ 9,820.6 
Inter-segment
 
 
 
 
 
 
 
 
0 
0 
0 
Net sales
2,061.8 1
2,171.2 
2,072.2 
1,875.7 
2,110.0 
2,017.6 
1,743.0 
1,696.9 
8,180.9 
7,567.5 
9,820.6 
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
89.2 1
122.9 
78.5 
75.4 
77.1 
128.5 
132.9 
169.5 
366.0 
508.0 
1,424.8 
Interest expense net of interest income
 
 
 
 
 
 
 
 
(74.1)
(86.0)
(184.1)
Miscellaneous other income (expense)
 
 
 
 
 
 
 
 
(5.2)
1.6 
1.0 
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
286.7 
423.6 
1,241.7 
Non-cash goodwill and long-lived asset impairment charges
 
 
 
 
 
 
 
 
0 
2.0 
2.3 
Depreciation and amortization
 
 
 
 
 
 
 
 
130.9 2
144.4 2
172.9 2
Capital expenditures
 
 
 
 
 
 
 
 
64.3 
86.2 
89.5 
Depreciation and amortization related to discontinued operations
 
 
 
 
 
 
 
 
0.6 
1.8 
4.8 
Write-off of deferred financing fees due to early extinguishment of related debt
 
 
 
 
 
 
 
 
2.3 
0.1 
20.4 
Access Equipment
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
2,794.4 3
1,944.1 3
1,266.8 3
Inter-segment
 
 
 
 
 
 
 
 
125.1 3
108.0 3
1,745.1 3
Net sales
 
 
 
 
 
 
 
 
2,919.5 3
2,052.1 3
3,011.9 3
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
 
229.2 
65.3 
97.3 
Depreciation and amortization
 
 
 
 
 
 
 
 
71.5 2
84.1 2
95.4 2
Capital expenditures
 
 
 
 
 
 
 
 
28.3 4
26.0 4
24.7 4
Access Equipment |
Aerial work platforms
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
1,390.2 3
961.6 3
558.6 3
Inter-segment
 
 
 
 
 
 
 
 
0 3
0 3
0 3
Net sales
 
 
 
 
 
 
 
 
1,390.2 3
961.6 3
558.6 3
Access Equipment |
Telehandlers
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
892.3 3
527.9 3
342.8 3
Inter-segment
 
 
 
 
 
 
 
 
0 3
0 3
0 3
Net sales
 
 
 
 
 
 
 
 
892.3 3
527.9 3
342.8 3
Access Equipment |
Other
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
511.9 3 5
454.6 3 5
365.4 3 5
Inter-segment
 
 
 
 
 
 
 
 
125.1 3 5
108.0 3 5
1,745.1 3 5
Net sales
 
 
 
 
 
 
 
 
637.0 3 5
562.6 3 5
2,110.5 3 5
Defense
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
3,947.5 
4,359.9 
7,151.3 
Inter-segment
 
 
 
 
 
 
 
 
3.0 
5.3 
10.4 
Net sales
 
 
 
 
 
 
 
 
3,950.5 
4,365.2 
7,161.7 
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
 
236.5 
543.0 
1,320.7 
Depreciation and amortization
 
 
 
 
 
 
 
 
19.3 2
26.7 2
17.6 2
Capital expenditures
 
 
 
 
 
 
 
 
16.0 
36.4 
48.0 
Fire and Emergency
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
769.4 
765.1 
871.1 
Inter-segment
 
 
 
 
 
 
 
 
39.0 
18.0 
23.1 
Net sales
 
 
 
 
 
 
 
 
808.4 
783.1 
894.2 
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
 
(12.9)6
(1.1)6
88.3 6
Non-cash goodwill and long-lived asset impairment charges
 
 
 
 
 
 
 
 
 
2.0 
 
Depreciation and amortization
 
 
 
 
 
 
 
 
13.5 2
13.0 2
16.2 2
Capital expenditures
 
 
 
 
 
 
 
 
7.3 
17.7 
10.0 
Commercial
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
669.6 
498.4 
531.4 
Inter-segment
 
 
 
 
 
 
 
 
27.4 
66.5 
90.7 
Net sales
 
 
 
 
 
 
 
 
697.0 
564.9 
622.1 
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
 
32.1 7
3.9 7
19.4 7
Non-cash goodwill and long-lived asset impairment charges
 
 
 
 
 
 
 
 
 
 
2.3 
Depreciation and amortization
 
 
 
 
 
 
 
 
15.0 2
15.4 2
15.1 2
Capital expenditures
 
 
 
 
 
 
 
 
4.8 
5.9 
6.8 
Commercial |
Concrete placement
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
231.9 
169.6 
174.1 
Inter-segment
 
 
 
 
 
 
 
 
0 
0 
0 
Net sales
 
 
 
 
 
 
 
 
231.9 
169.6 
174.1 
Commercial |
Refuse collection
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
336.8 
249.6 
305.7 
Inter-segment
 
 
 
 
 
 
 
 
0 
0 
0 
Net sales
 
 
 
 
 
 
 
 
336.8 
249.6 
305.7 
Commercial |
Other
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
100.9 
79.2 
51.6 
Inter-segment
 
 
 
 
 
 
 
 
27.4 
66.5 
90.7 
Net sales
 
 
 
 
 
 
 
 
128.3 
145.7 
142.3 
Corporate
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
 
(119.1)
(107.1)
(99.0)
Depreciation and amortization
 
 
 
 
 
 
 
 
11.6 2 8
5.2 2 8
28.6 2 8
Capital expenditures
 
 
 
 
 
 
 
 
7.9 
0.2 
0 
Intersegment eliminations
 
 
 
 
 
 
 
 
 
 
 
Net sales:
 
 
 
 
 
 
 
 
 
 
 
External Customers
 
 
 
 
 
 
 
 
0 
0 
0 
Inter-segment
 
 
 
 
 
 
 
 
(194.5)
(197.8)
(1,869.3)
Net sales
 
 
 
 
 
 
 
 
(194.5)
(197.8)
(1,869.3)
Operating income (loss) from continuing operations:
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
 
$ 0.2 
$ 4.0 
$ (1.9)
[1] The fourth quarter of 2012 was impacted by: (1) a $7.8 million change in estimate to increase revenue ($5.0 million, after-tax) resulting from the definitization of contracts in the defense segment (See Note 4 of the Notes to Consolidated Financial Statements), (2) a $7.0 million increase to selling, general and administrative expenses ($4.5 million, after-tax) resulting from the correction of a prior period error in the valuation of performance shares (See Note 17 of the Notes to Consolidated Financial Statements), (3) a $3.4 million increase to selling, general and administrative expenses ($2.2 million, after-tax) resulting from the curtailment of pension and other postretirement benefit plans (See Note 19 of the Notes to Consolidated Financial Statements), and (4) a decrease in income tax expense of $5.7 million related to the correction of deferred tax assets (See Note 20 of the Notes to Consolidated Financial Statements). Correction adjustments were not material to any individual prior period or the current period and, accordingly, the prior period results have not been adjusted.
Business Segment Information (Details 3) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
$ 4,947.8 
 
 
 
$ 4,826.9 
 
 
 
$ 4,947.8 
$ 4,826.9 
$ 4,708.6 
Net sales
2,061.8 1
2,171.2 
2,072.2 
1,875.7 
2,110.0 
2,017.6 
1,743.0 
1,696.9 
8,180.9 
7,567.5 
9,820.6 
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
6,397.0 
6,275.4 
8,873.1 
Other North America
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
248.3 
179.7 
110.3 
Europe, Africa and Middle East
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
974.9 
695.1 
497.0 
Rest of the world
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
560.7 
417.3 
340.2 
Access Equipment
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
2,721.9 
 
 
 
2,722.7 
 
 
 
2,721.9 
2,722.7 
2,747.2 
Net sales
 
 
 
 
 
 
 
 
2,919.5 2
2,052.1 2
3,011.9 2
Access Equipment |
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
1,754.6 
 
 
 
1,779.8 
 
 
 
1,754.6 
1,779.8 
1,766.5 
Access Equipment |
Europe
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
684.2 3
 
 
 
694.0 3
 
 
 
684.2 3
694.0 3
794.0 3
Access Equipment |
Rest of the world
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
283.1 
 
 
 
248.9 
 
 
 
283.1 
248.9 
186.7 
Defense
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
3,950.5 
4,365.2 
7,161.7 
Defense |
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
684.5 3
 
 
 
762.3 3
 
 
 
684.5 3
762.3 3
876.4 3
Fire and Emergency
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
534.0 
 
 
 
531.8 
 
 
 
534.0 
531.8 
545.5 
Net sales
 
 
 
 
 
 
 
 
808.4 
783.1 
894.2 
Fire and Emergency |
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
534.0 
 
 
 
518.9 
 
 
 
534.0 
518.9 
529.9 
Fire and Emergency |
Europe
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
0 
 
 
 
12.9 
 
 
 
0 
12.9 
15.6 
Commercial
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
341.5 
 
 
 
362.9 
 
 
 
341.5 
362.9 
355.1 
Net sales
 
 
 
 
 
 
 
 
697.0 
564.9 
622.1 
Commercial |
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
304.5 
 
 
 
321.4 
 
 
 
304.5 
321.4 
316.4 
Commercial |
Rest of the world
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
37.0 3
 
 
 
41.5 3
 
 
 
37.0 3
41.5 3
38.7 3
Corporate
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
665.9 
 
 
 
447.2 
 
 
 
665.9 
447.2 
184.4 
Corporate |
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
658.1 4
 
 
 
441.2 4
 
 
 
658.1 4
441.2 4
183.1 4
Corporate |
Rest of the world
 
 
 
 
 
 
 
 
 
 
 
Revenue and assets by geography
 
 
 
 
 
 
 
 
 
 
 
Identifiable assets
$ 7.8 
 
 
 
$ 6.0 
 
 
 
$ 7.8 
$ 6.0 
$ 1.3 
[1] The fourth quarter of 2012 was impacted by: (1) a $7.8 million change in estimate to increase revenue ($5.0 million, after-tax) resulting from the definitization of contracts in the defense segment (See Note 4 of the Notes to Consolidated Financial Statements), (2) a $7.0 million increase to selling, general and administrative expenses ($4.5 million, after-tax) resulting from the correction of a prior period error in the valuation of performance shares (See Note 17 of the Notes to Consolidated Financial Statements), (3) a $3.4 million increase to selling, general and administrative expenses ($2.2 million, after-tax) resulting from the curtailment of pension and other postretirement benefit plans (See Note 19 of the Notes to Consolidated Financial Statements), and (4) a decrease in income tax expense of $5.7 million related to the correction of deferred tax assets (See Note 20 of the Notes to Consolidated Financial Statements). Correction adjustments were not material to any individual prior period or the current period and, accordingly, the prior period results have not been adjusted.
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Condensed Consolidating Statements of Income
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 2,061.8 1
$ 2,171.2 
$ 2,072.2 
$ 1,875.7 
$ 2,110.0 
$ 2,017.6 
$ 1,743.0 
$ 1,696.9 
$ 8,180.9 
$ 7,567.5 
$ 9,820.6 
Cost of sales
 
 
 
 
 
 
 
 
7,189.9 
6,489.2 
7,850.6 
Gross income
258.0 1
270.9 
240.6 
221.5 
217.4 
273.1 
280.2 
307.6 
991.0 
1,078.3 
1,970.0 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
567.3 
509.0 
483.9 
Amortization of purchased intangibles
 
 
 
 
 
 
 
 
57.7 
59.3 
59.0 
Intangible asset impairment charges
 
 
 
 
 
 
 
 
0 
2.0 
2.3 
Operating income
89.2 1
122.9 
78.5 
75.4 
77.1 
128.5 
132.9 
169.5 
366.0 
508.0 
1,424.8 
Interest expense
 
 
 
 
 
 
 
 
(76.0)
(90.7)
(187.1)
Interest income
 
 
 
 
 
 
 
 
1.9 
4.7 
3.0 
Miscellaneous, net
 
 
 
 
 
 
 
 
(5.2)
1.6 
1.0 
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
286.7 
423.6 
1,241.7 
Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
57.4 
145.1 
421.4 
Income from continuing operations before equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
229.3 
278.5 
820.3 
Equity in earnings (losses) of consolidated subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
2.3 
0.5 
(4.3)
Income from continuing operations, net of tax
 
 
 
 
 
 
 
 
231.6 
279.0 
816.0 
Discontinued operations, net of tax
 
 
 
 
 
 
 
 
0.3 
(5.6)
(26.0)
Net income
78.9 1
75.7 
38.0 
39.3 
38.0 
68.6 
67.7 
99.0 
231.9 
273.4 
790.0 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
(1.1)
0 
0 
Net income attributable to Oshkosh Corporation
 
 
 
 
 
 
 
 
230.8 
273.4 
790.0 
Oshkosh Corporation
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
4,100.8 
4,540.2 
7,341.9 
Cost of sales
 
 
 
 
 
 
 
 
3,743.7 
3,873.3 
5,892.1 
Gross income
 
 
 
 
 
 
 
 
357.1 
666.9 
1,449.8 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
238.4 
212.0 
196.9 
Amortization of purchased intangibles
 
 
 
 
 
 
 
 
0.3 
0.1 
0 
Intangible asset impairment charges
 
 
 
 
 
 
 
 
0 
0 
0 
Operating income
 
 
 
 
 
 
 
 
118.4 
454.8 
1,252.9 
Interest expense
 
 
 
 
 
 
 
 
(197.4)
(200.2)
(276.4)
Interest income
 
 
 
 
 
 
 
 
2.3 
2.9 
2.4 
Miscellaneous, net
 
 
 
 
 
 
 
 
18.2 
10.7 
12.7 
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
(58.5)
268.2 
991.6 
Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
(11.1)
93.9 
328.4 
Income from continuing operations before equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
(47.4)
174.3 
663.2 
Equity in earnings (losses) of consolidated subsidiaries
 
 
 
 
 
 
 
 
272.5 
99.2 
125.4 
Equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
(0.4)
(0.1)
0 
Income from continuing operations, net of tax
 
 
 
 
 
 
 
 
224.7 
273.4 
788.6 
Discontinued operations, net of tax
 
 
 
 
 
 
 
 
6.1 
0 
1.4 
Net income
 
 
 
 
 
 
 
 
230.8 
273.4 
790.0 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net income attributable to Oshkosh Corporation
 
 
 
 
 
 
 
 
230.8 
273.4 
790.0 
Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
3,419.0 
2,409.4 
3,559.1 
Cost of sales
 
 
 
 
 
 
 
 
2,923.2 
2,106.5 
3,119.5 
Gross income
 
 
 
 
 
 
 
 
495.8 
302.9 
439.6 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
295.8 
181.8 
164.4 
Amortization of purchased intangibles
 
 
 
 
 
 
 
 
39.8 
39.8 
40.2 
Intangible asset impairment charges
 
 
 
 
 
 
 
 
0 
0 
0 
Operating income
 
 
 
 
 
 
 
 
160.2 
81.3 
235.0 
Interest expense
 
 
 
 
 
 
 
 
(75.5)
(82.2)
(170.6)
Interest income
 
 
 
 
 
 
 
 
28.1 
26.4 
18.6 
Miscellaneous, net
 
 
 
 
 
 
 
 
(101.7)
(120.5)
(94.9)
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
11.1 
(95.0)
(11.9)
Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
1.3 
(30.0)
(1.5)
Income from continuing operations before equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
9.8 
(65.0)
(10.4)
Equity in earnings (losses) of consolidated subsidiaries
 
 
 
 
 
 
 
 
110.0 
56.0 
(2.4)
Equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
0 
0 
0 
Income from continuing operations, net of tax
 
 
 
 
 
 
 
 
119.8 
(9.0)
(12.8)
Discontinued operations, net of tax
 
 
 
 
 
 
 
 
(9.9)
0 
0 
Net income
 
 
 
 
 
 
 
 
109.9 
(9.0)
(12.8)
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net income attributable to Oshkosh Corporation
 
 
 
 
 
 
 
 
109.9 
(9.0)
(12.8)
Non-Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
921.3 
875.9 
813.6 
Cost of sales
 
 
 
 
 
 
 
 
783.4 
771.6 
731.0 
Gross income
 
 
 
 
 
 
 
 
137.9 
104.3 
82.6 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
33.1 
115.2 
122.6 
Amortization of purchased intangibles
 
 
 
 
 
 
 
 
17.6 
19.4 
18.8 
Intangible asset impairment charges
 
 
 
 
 
 
 
 
0 
2.0 
2.3 
Operating income
 
 
 
 
 
 
 
 
87.2 
(32.3)
(61.1)
Interest expense
 
 
 
 
 
 
 
 
(3.9)
(3.9)
(2.5)
Interest income
 
 
 
 
 
 
 
 
172.3 
171.0 
244.4 
Miscellaneous, net
 
 
 
 
 
 
 
 
78.3 
111.4 
83.2 
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
333.9 
246.2 
264.0 
Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
67.2 
79.8 
95.2 
Income from continuing operations before equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
266.7 
166.4 
168.8 
Equity in earnings (losses) of consolidated subsidiaries
 
 
 
 
 
 
 
 
32.1 
(52.5)
(37.9)
Equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
2.7 
0.6 
(4.3)
Income from continuing operations, net of tax
 
 
 
 
 
 
 
 
301.5 
114.5 
126.6 
Discontinued operations, net of tax
 
 
 
 
 
 
 
 
4.1 
(5.6)
(27.4)
Net income
 
 
 
 
 
 
 
 
305.6 
108.9 
99.2 
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
(1.1)
0 
0 
Net income attributable to Oshkosh Corporation
 
 
 
 
 
 
 
 
304.5 
108.9 
99.2 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
(260.2)
(258.0)
(1,894.0)
Cost of sales
 
 
 
 
 
 
 
 
(260.4)
(262.2)
(1,892.0)
Gross income
 
 
 
 
 
 
 
 
0.2 
4.2 
(2.0)
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Amortization of purchased intangibles
 
 
 
 
 
 
 
 
0 
0 
0 
Intangible asset impairment charges
 
 
 
 
 
 
 
 
0 
0 
0 
Operating income
 
 
 
 
 
 
 
 
0.2 
4.2 
(2.0)
Interest expense
 
 
 
 
 
 
 
 
200.8 
195.6 
262.4 
Interest income
 
 
 
 
 
 
 
 
(200.8)
(195.6)
(262.4)
Miscellaneous, net
 
 
 
 
 
 
 
 
0 
0 
0 
Income from continuing operations before income taxes and equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
0.2 
4.2 
(2.0)
Provision for (benefit from) income taxes
 
 
 
 
 
 
 
 
0 
1.4 
(0.7)
Income from continuing operations before equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
0.2 
2.8 
(1.3)
Equity in earnings (losses) of consolidated subsidiaries
 
 
 
 
 
 
 
 
(414.6)
(102.7)
(85.1)
Equity in earnings (losses) of unconsolidated affiliates
 
 
 
 
 
 
 
 
0 
0 
0 
Income from continuing operations, net of tax
 
 
 
 
 
 
 
 
(414.4)
(99.9)
(86.4)
Discontinued operations, net of tax
 
 
 
 
 
 
 
 
0 
0 
0 
Net income
 
 
 
 
 
 
 
 
(414.4)
(99.9)
(86.4)
Net income attributable to noncontrolling interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net income attributable to Oshkosh Corporation
 
 
 
 
 
 
 
 
$ (414.4)
$ (99.9)
$ (86.4)
[1] The fourth quarter of 2012 was impacted by: (1) a $7.8 million change in estimate to increase revenue ($5.0 million, after-tax) resulting from the definitization of contracts in the defense segment (See Note 4 of the Notes to Consolidated Financial Statements), (2) a $7.0 million increase to selling, general and administrative expenses ($4.5 million, after-tax) resulting from the correction of a prior period error in the valuation of performance shares (See Note 17 of the Notes to Consolidated Financial Statements), (3) a $3.4 million increase to selling, general and administrative expenses ($2.2 million, after-tax) resulting from the curtailment of pension and other postretirement benefit plans (See Note 19 of the Notes to Consolidated Financial Statements), and (4) a decrease in income tax expense of $5.7 million related to the correction of deferred tax assets (See Note 20 of the Notes to Consolidated Financial Statements). Correction adjustments were not material to any individual prior period or the current period and, accordingly, the prior period results have not been adjusted.
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details 2) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2009
Current assets:
 
 
 
 
Cash and cash equivalents
$ 540.7 
$ 428.5 
$ 339.0 
$ 530.4 
Receivables, net
1,018.6 
1,089.1 
 
 
Inventories, net
937.5 
786.8 
 
 
Other current assets
197.7 
150.2 
 
 
Total current assets
2,694.5 
2,454.6 
 
 
Investment in and advances to consolidated subsidiaries
0 
0 
 
 
Intangible assets, net
1,809.2 
1,880.2 
 
 
Other long-term assets
444.1 
492.1 
 
 
Total assets
4,947.8 
4,826.9 
4,708.6 
 
Current liabilities:
 
 
 
 
Accounts payable
683.3 
768.9 
 
 
Customer advances
510.4 
468.6 
 
 
Other current liabilities
510.8 
454.3 
 
 
Total current liabilities
1,704.5 
1,691.8 
 
 
Long-term debt, less current maturities
955.0 
1,020.0 
 
 
Other long-term liabilities
434.8 
518.5 
 
 
Equity:
 
 
 
 
Oshkosh Corporation shareholders' equity
1,853.5 
1,596.5 
 
 
Noncontrolling interest
0 
0.1 
 
 
Total equity
1,853.5 
1,596.6 
 
 
Total liabilities and equity
4,947.8 
4,826.9 
 
 
Oshkosh Corporation
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
500.0 
376.3 
202.2 
340.6 
Receivables, net
388.0 
525.8 
 
 
Inventories, net
284.3 
194.0 
 
 
Other current assets
129.2 
86.0 
 
 
Total current assets
1,301.5 
1,182.1 
 
 
Investment in and advances to consolidated subsidiaries
2,358.1 
2,506.5 
 
 
Intangible assets, net
2.5 
2.7 
 
 
Other long-term assets
154.7 
167.4 
 
 
Total assets
3,816.8 
3,858.7 
 
 
Current liabilities:
 
 
 
 
Accounts payable
326.2 
498.6 
 
 
Customer advances
315.4 
334.8 
 
 
Other current liabilities
213.6 
208.3 
 
 
Total current liabilities
855.2 
1,041.7 
 
 
Long-term debt, less current maturities
955.0 
1,020.0 
 
 
Other long-term liabilities
153.1 
200.4 
 
 
Equity:
 
 
 
 
Oshkosh Corporation shareholders' equity
1,853.5 
1,596.5 
 
 
Noncontrolling interest
0 
0.1 
 
 
Total equity
1,853.5 
1,596.6 
 
 
Total liabilities and equity
3,816.8 
3,858.7 
 
 
Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
5.5 
13.5 
2.5 
5.6 
Receivables, net
487.5 
521.4 
 
 
Inventories, net
415.7 
336.8 
 
 
Other current assets
47.9 
34.8 
 
 
Total current assets
956.6 
906.5 
 
 
Investment in and advances to consolidated subsidiaries
(1,182.9)
(1,402.6)
 
 
Intangible assets, net
1,110.4 
1,131.4 
 
 
Other long-term assets
156.8 
156.6 
 
 
Total assets
1,040.9 
791.9 
 
 
Current liabilities:
 
 
 
 
Accounts payable
288.9 
298.7 
 
 
Customer advances
190.5 
120.2 
 
 
Other current liabilities
220.2 
167.1 
 
 
Total current liabilities
699.6 
586.0 
 
 
Long-term debt, less current maturities
0 
0 
 
 
Other long-term liabilities
137.3 
172.4 
 
 
Equity:
 
 
 
 
Oshkosh Corporation shareholders' equity
204.0 
33.5 
 
 
Noncontrolling interest
0 
0 
 
 
Total equity
204.0 
33.5 
 
 
Total liabilities and equity
1,040.9 
791.9 
 
 
Non-Guarantor Subsidiaries
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
35.2 
38.7 
134.3 
184.2 
Receivables, net
177.3 
135.8 
 
 
Inventories, net
239.3 
257.9 
 
 
Other current assets
20.6 
29.4 
 
 
Total current assets
472.4 
461.8 
 
 
Investment in and advances to consolidated subsidiaries
3,235.8 
2,902.4 
 
 
Intangible assets, net
696.3 
746.1 
 
 
Other long-term assets
132.6 
168.1 
 
 
Total assets
4,537.1 
4,278.4 
 
 
Current liabilities:
 
 
 
 
Accounts payable
96.7 
61.3 
 
 
Customer advances
4.5 
13.6 
 
 
Other current liabilities
84.5 
85.0 
 
 
Total current liabilities
185.7 
159.9 
 
 
Long-term debt, less current maturities
0 
0 
 
 
Other long-term liabilities
144.4 
145.7 
 
 
Equity:
 
 
 
 
Oshkosh Corporation shareholders' equity
4,207.0 
3,972.7 
 
 
Noncontrolling interest
0 
0.1 
 
 
Total equity
4,207.0 
3,972.8 
 
 
Total liabilities and equity
4,537.1 
4,278.4 
 
 
Eliminations
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Receivables, net
(34.2)
(93.9)
 
 
Inventories, net
(1.8)
(1.9)
 
 
Other current assets
0 
0 
 
 
Total current assets
(36.0)
(95.8)
 
 
Investment in and advances to consolidated subsidiaries
(4,411.0)
(4,006.3)
 
 
Intangible assets, net
0 
0 
 
 
Other long-term assets
0 
0 
 
 
Total assets
(4,447.0)
(4,102.1)
 
 
Current liabilities:
 
 
 
 
Accounts payable
(28.5)
(89.7)
 
 
Customer advances
0 
0 
 
 
Other current liabilities
(7.5)
(6.1)
 
 
Total current liabilities
(36.0)
(95.8)
 
 
Long-term debt, less current maturities
0 
0 
 
 
Other long-term liabilities
0 
0 
 
 
Equity:
 
 
 
 
Oshkosh Corporation shareholders' equity
(4,411.0)
(4,006.2)
 
 
Noncontrolling interest
0 
(0.1)
 
 
Total equity
(4,411.0)
(4,006.3)
 
 
Total liabilities and equity
$ (4,447.0)
$ (4,102.1)
 
 
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Condensed Consolidating Statement of Cash Flows
 
 
 
Net cash provided (used) by operating activities
$ 268.3 
$ 387.7 
$ 619.7 
Investing activities:
 
 
 
Additions to property, plant and equipment
(55.9)
(82.3)
(83.2)
Additions to equipment held for rental
(8.4)
(3.9)
(6.3)
Proceeds from sale of equity method investments
8.7 
0 
0 
Intercompany investing
0 
0 
0 
Other investing activities
13.8 
17.9 
5.6 
Net cash used by investing activities
(41.8)
(68.3)
(83.9)
Financing activities:
 
 
 
Repayment of long-term debt
(105.1)
(91.4)
(2,020.9)
Proceeds (repayments) under revolving credit facility
0 
(150.0)
150.0 
Repurchases of Common Stock
(13.3)
0 
0 
Proceeds from issuance of long-term debt
0 
0 
1,150.0 
Debt issuance/amendment costs
(3.1)
(0.1)
(26.3)
Intercompany financing
0 
0 
 
Other financing activities
4.2 
10.0 
24.7 
Net cash used by financing activities
(117.3)
(231.5)
(722.5)
Effect of exchange rate changes on cash
3.0 
1.6 
(4.7)
Increase (decrease) in cash and cash equivalents
112.2 
89.5 
(191.4)
Cash and cash equivalents at beginning of year
428.5 
339.0 
530.4 
Cash and cash equivalents at end of year
540.7 
428.5 
339.0 
Oshkosh Corporation
 
 
 
Condensed Consolidating Statement of Cash Flows
 
 
 
Net cash provided (used) by operating activities
(143.4)
259.9 
379.2 
Investing activities:
 
 
 
Additions to property, plant and equipment
(24.5)
(42.2)
(56.5)
Additions to equipment held for rental
0 
0 
0 
Proceeds from sale of equity method investments
0 
 
 
Intercompany investing
405.3 
191.9 
262.2 
Other investing activities
5.0 
(3.0)
0 
Net cash used by investing activities
385.8 
146.7 
205.7 
Financing activities:
 
 
 
Repayment of long-term debt
(105.0)
(91.1)
(2,020.4)
Proceeds (repayments) under revolving credit facility
 
(150.0)
150.0 
Repurchases of Common Stock
(13.3)
 
 
Proceeds from issuance of long-term debt
 
 
1,150.0 
Debt issuance/amendment costs
(3.1)
(0.1)
(26.3)
Intercompany financing
(1.3)
(1.3)
(1.3)
Other financing activities
4.0 
10.0 
24.7 
Net cash used by financing activities
(118.7)
(232.5)
(723.3)
Effect of exchange rate changes on cash
0 
0 
0 
Increase (decrease) in cash and cash equivalents
123.7 
174.1 
(138.4)
Cash and cash equivalents at beginning of year
376.3 
202.2 
340.6 
Cash and cash equivalents at end of year
500.0 
376.3 
202.2 
Guarantor Subsidiaries
 
 
 
Condensed Consolidating Statement of Cash Flows
 
 
 
Net cash provided (used) by operating activities
122.2 
(35.5)
17.9 
Investing activities:
 
 
 
Additions to property, plant and equipment
(22.7)
(27.4)
(6.7)
Additions to equipment held for rental
0 
0 
0 
Proceeds from sale of equity method investments
0 
 
 
Intercompany investing
(90.6)
100.4 
39.8 
Other investing activities
8.6 
0.8 
(7.8)
Net cash used by investing activities
(104.7)
73.8 
25.3 
Financing activities:
 
 
 
Repayment of long-term debt
(0.1)
(0.3)
(0.3)
Proceeds (repayments) under revolving credit facility
 
0 
0 
Repurchases of Common Stock
0 
 
 
Proceeds from issuance of long-term debt
 
 
0 
Debt issuance/amendment costs
0 
0 
 
Intercompany financing
(26.0)
(26.0)
(46.0)
Other financing activities
0 
0 
0 
Net cash used by financing activities
(26.1)
(26.3)
(46.3)
Effect of exchange rate changes on cash
0.6 
(1.0)
0 
Increase (decrease) in cash and cash equivalents
(8.0)
11.0 
(3.1)
Cash and cash equivalents at beginning of year
13.5 
2.5 
5.6 
Cash and cash equivalents at end of year
5.5 
13.5 
2.5 
Non-Guarantor Subsidiaries
 
 
 
Condensed Consolidating Statement of Cash Flows
 
 
 
Net cash provided (used) by operating activities
289.5 
163.3 
222.6 
Investing activities:
 
 
 
Additions to property, plant and equipment
(8.7)
(12.7)
(20.0)
Additions to equipment held for rental
(8.4)
(3.9)
(6.3)
Proceeds from sale of equity method investments
8.7 
 
 
Intercompany investing
(288.3)
(283.5)
(253.9)
Other investing activities
0.2 
20.1 
13.4 
Net cash used by investing activities
(296.5)
(280.0)
(266.8)
Financing activities:
 
 
 
Repayment of long-term debt
0 
0 
(0.2)
Proceeds (repayments) under revolving credit facility
 
0 
0 
Repurchases of Common Stock
0 
 
 
Proceeds from issuance of long-term debt
 
 
0 
Debt issuance/amendment costs
0 
0 
 
Intercompany financing
0.9 
18.5 
(0.8)
Other financing activities
0.2 
0 
0 
Net cash used by financing activities
1.1 
18.5 
(1.0)
Effect of exchange rate changes on cash
2.4 
2.6 
(4.7)
Increase (decrease) in cash and cash equivalents
(3.5)
(95.6)
(49.9)
Cash and cash equivalents at beginning of year
38.7 
134.3 
184.2 
Cash and cash equivalents at end of year
35.2 
38.7 
134.3 
Eliminations
 
 
 
Condensed Consolidating Statement of Cash Flows
 
 
 
Net cash provided (used) by operating activities
0 
0 
0 
Investing activities:
 
 
 
Additions to property, plant and equipment
0 
0 
0 
Additions to equipment held for rental
0 
0 
0 
Proceeds from sale of equity method investments
0 
 
 
Intercompany investing
(26.4)
(8.8)
(48.1)
Other investing activities
0 
0 
0 
Net cash used by investing activities
(26.4)
(8.8)
(48.1)
Financing activities:
 
 
 
Repayment of long-term debt
0 
0 
0 
Proceeds (repayments) under revolving credit facility
 
0 
0 
Repurchases of Common Stock
0 
 
 
Proceeds from issuance of long-term debt
 
 
0 
Debt issuance/amendment costs
0 
0 
 
Intercompany financing
26.4 
8.8 
48.1 
Other financing activities
0 
0 
0 
Net cash used by financing activities
26.4 
8.8 
48.1 
Effect of exchange rate changes on cash
0 
0 
0 
Increase (decrease) in cash and cash equivalents
0 
0 
0 
Cash and cash equivalents at beginning of year
0 
0 
0 
Cash and cash equivalents at end of year
$ 0 
$ 0 
$ 0 
Unaudited Quarterly Results (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 2,061.8 1
$ 2,171.2 
$ 2,072.2 
$ 1,875.7 
$ 2,110.0 
$ 2,017.6 
$ 1,743.0 
$ 1,696.9 
$ 8,180.9 
$ 7,567.5 
$ 9,820.6 
Gross income
258.0 1
270.9 
240.6 
221.5 
217.4 
273.1 
280.2 
307.6 
991.0 
1,078.3 
1,970.0 
Operating income
89.2 1
122.9 
78.5 
75.4 
77.1 
128.5 
132.9 
169.5 
366.0 
508.0 
1,424.8 
Net income
78.9 1
75.7 
38.0 
39.3 
38.0 
68.6 
67.7 
99.0 
231.9 
273.4 
790.0 
Earnings (loss) attributable to Oshkosh Corporation common shareholders
 
 
 
 
 
 
 
 
 
 
 
Net income from continuing operations
77.6 1
74.7 
39.2 
39.0 
40.3 
70.2 
68.3 
100.2 
230.5 
279.0 
816.0 
Less: net earnings allocated to participating securities
(0.2)1
(0.2)
(0.1)
(0.1)
0.1 
0.1 
0.1 
0.1 
(0.6)
(0.4)
(0.2)
Net income available to Oshkosh Corporation common shareholders
77.4 1
74.5 
39.1 
38.9 
40.2 
70.1 
68.2 
100.1 
229.9 
278.6 
815.8 
Net income (loss) from discontinued operations
$ 1.3 1
$ 1.0 
$ (1.9)
$ (0.1)
$ (2.8)
$ (1.8)
$ (0.4)
$ (0.6)
$ 0.3 
$ (5.6)
$ (26.0)
Earnings (loss) per share attributable to Oshkosh Corporation common shareholders-basic:
 
 
 
 
 
 
 
 
 
 
 
From continuing operations (in dollars per share)
$ 0.85 1
$ 0.82 
$ 0.43 
$ 0.43 
$ 0.44 
$ 0.77 
$ 0.76 
$ 1.11 
$ 2.52 
$ 3.07 
$ 9.07 
From discontinued operations (in dollars per share)
$ 0.01 1
$ 0.01 
$ (0.02)
$ (0.01)
$ (0.03)
$ (0.02)
$ (0.01)
$ (0.01)
$ 0.00 
$ (0.06)
$ (0.29)
Total earnings (loss) per share attributable to Oshkosh Corporation common shareholders-basic (in dollars per share)
$ 0.86 1
$ 0.83 
$ 0.41 
$ 0.42 
$ 0.41 
$ 0.75 
$ 0.75 
$ 1.10 
$ 2.52 
$ 3.01 
$ 8.78 
Earnings (loss) per share attributable to Oshkosh Corporation common shareholders-diluted:
 
 
 
 
 
 
 
 
 
 
 
From continuing operations (in dollars per share)
$ 0.85 1
$ 0.81 
$ 0.43 
$ 0.43 
$ 0.44 
$ 0.77 
$ 0.75 
$ 1.10 
$ 2.51 
$ 3.05 
$ 8.97 
From discontinued operations (in dollars per share)
$ 0.01 1
$ 0.01 
$ (0.02)
$ (0.01)
$ (0.03)
$ (0.02)
$ (0.01)
$ (0.01)
$ 0.00 
$ (0.06)
$ (0.28)
Total earnings (loss) per share attributable to Oshkosh Corporation common shareholders-diluted (in dollars per share)
$ 0.86 1
$ 0.82 
$ 0.41 
$ 0.42 
$ 0.41 
$ 0.75 
$ 0.74 
$ 1.09 
$ 2.51 
$ 2.99 
$ 8.69 
Common Stock per share dividends (in dollars per share)
$ 0 1
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
[1] The fourth quarter of 2012 was impacted by: (1) a $7.8 million change in estimate to increase revenue ($5.0 million, after-tax) resulting from the definitization of contracts in the defense segment (See Note 4 of the Notes to Consolidated Financial Statements), (2) a $7.0 million increase to selling, general and administrative expenses ($4.5 million, after-tax) resulting from the correction of a prior period error in the valuation of performance shares (See Note 17 of the Notes to Consolidated Financial Statements), (3) a $3.4 million increase to selling, general and administrative expenses ($2.2 million, after-tax) resulting from the curtailment of pension and other postretirement benefit plans (See Note 19 of the Notes to Consolidated Financial Statements), and (4) a decrease in income tax expense of $5.7 million related to the correction of deferred tax assets (See Note 20 of the Notes to Consolidated Financial Statements). Correction adjustments were not material to any individual prior period or the current period and, accordingly, the prior period results have not been adjusted.
Unaudited Quarterly Results (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2012
Undefinitization Contracts |
Defense
 
 
Revenues
$ 7.8 
$ 7.8 
Revenues, net of tax
5.0 
 
Income (Loss), Before Taxes |
Valuation of Performance Shares
 
 
Correction of misstatement
7.0 
 
Net Income [Member] |
Valuation of Performance Shares
 
 
Correction of misstatement
4.5 
 
Selling, General and Administrative Expenses
 
 
Curtailment of pension and other postretirement benefit plans
3.4 
 
Selling, General and Administrative Expenses, Net of Tax
 
 
Curtailment of pension and other postretirement benefit plans
2.2 
 
Income Tax Expense (Benefit) |
Deferred Tax Assets
 
 
Correction of misstatement
$ (5.7)
 
Subsequent Events (Details) (USD $)
12 Months Ended 12 Months Ended 0 Months Ended
Sep. 30, 2012
Jul. 31, 1995
Sep. 30, 2012
Senior Notes
Change of control clause
Sep. 30, 2012
Senior Notes
Change of control clause
Minimum
Sep. 30, 2012
Line of Credit
Change of control clause
Sep. 30, 2012
Line of Credit
Change of control clause
Minimum
Oct. 25, 2012
Subsequent event
Preferred Stock, New Class
Oct. 25, 2012
Subsequent event
Preferred Stock, New Class
Minimum
Oct. 25, 2012
Subsequent event
Preferred Stock, New Class
13G Institutional Investor
Minimum
Oct. 25, 2012
Subsequent event
Preferred Stock, New Class
Dividend declared
rights
Oct. 25, 2012
Subsequent event
Preferred Stock, New Class
Dividend declared
Oct. 17, 2012
Subsequent event
Unsolicited tender offer
Common Stock
Nov. 15, 2012
Subsequent event
Repurchase of equity
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Unsolicted tender offer, sale price per share (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
$ 32.50 
 
Required offer to purchase outstanding notes, percentage of principal amount tendered
 
 
101.00% 
 
 
 
 
 
 
 
 
 
 
Number of days following change in control within which offer to purchase principal and accrued interest is required
 
 
60 days 
 
 
 
 
 
 
 
 
 
 
Change of control definition, required acquisition percentage of common stock
 
 
 
50.00% 
 
30.00% 
 
 
 
 
 
 
 
Change of control definition, consecutive periods during which majority of the members of the Board of Directors who were not nominated by current directors are replaced
 
 
2 years 
 
12 months 
 
 
 
 
 
 
 
 
Stock purchase right, number of rights per share of common stock
 
 
 
 
 
 
 
 
 
1 
1 
 
 
Stock purchase right, number of units of a share
 
 
 
 
 
 
0.001 
 
 
 
 
 
 
Preferred stock, price per share (in dollars per share)
 
 
 
 
 
 
$ 75 
 
 
 
 
 
 
Stock purchase right, terms of exercise, acquired beneficial ownership of common stock upon which right becomes exercisable
 
 
 
 
 
 
 
10.00% 
15.00% 
 
 
 
 
Stock purchase right, redemption price (in dollars per right)
 
 
 
 
 
 
0.001 
 
 
 
 
 
 
Stock purchase right, market value as a percentage of exercise price
 
 
 
 
 
 
200.00% 
 
 
 
 
 
 
Stock purchase right, redemption period, number of days following announcement of acquisition of required beneficial ownership of common stock
 
 
 
 
 
 
10 days 
 
 
 
 
 
 
Remaining number of shares authorized to be repurchased (in shares)
6,683,825 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock authorized for buyback (in shares)
 
6,000,000 
 
 
 
 
 
 
 
 
 
 
11,000,000 
SCHEDULE II - VALUATION & QUALIFYING ACCOUNTS (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
BAI
 
 
 
Movement in Valuation Allowances and Reserves
 
 
 
Reductions
 
 
$ (1.9)
Oshkosh Specialty Vehicles
 
 
 
Movement in Valuation Allowances and Reserves
 
 
 
Reductions
(0.1)
 
 
Allowance for Doubtful Accounts
 
 
 
Movement in Valuation Allowances and Reserves
 
 
 
Balance at Beginning of Year
29.5 
42.0 
42.0 
Additions Charged to Expense
(2.3)
2.0 
16.6 
Reductions
(9.2)1
(14.5)1
(16.6)1
Balance at End of Year
$ 18.0 
$ 29.5 
$ 42.0