HILLENBRAND, INC., 10-Q filed on 5/3/2016
Quarterly Report
Document and Entity Information
6 Months Ended
Mar. 31, 2016
Apr. 28, 2016
Document and Entity Information
 
 
Entity Registrant Name
Hillenbrand, Inc. 
 
Entity Central Index Key
0001417398 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2016 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--09-30 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
63,014,554 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q2 
 
Consolidated Statements of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Income Statement [Abstract]
 
 
 
 
Net revenue
$ 387.0 1
$ 404.6 1
$ 738.7 
$ 806.1 
Cost of goods sold
244.3 
256.0 
467.8 
519.1 
Gross profit
142.7 
148.6 
270.9 
287.0 
Operating expenses
87.3 
84.4 
169.4 
167.9 
Amortization of Intangible Assets
8.6 
7.3 
18.4 
15.0 
Interest expense
6.4 
6.4 
12.3 
12.1 
Other income (expense), net
(0.9)
(5.0)
(1.6)
(5.0)
Income before income taxes
39.5 
45.5 
69.2 
87.0 
Income tax expense
12.3 
14.3 
21.0 
26.1 
Consolidated net income
27.2 
31.2 
48.2 
60.9 
Less: Net income attributable to noncontrolling interests
1.1 
0.5 
2.1 
0.7 
Total reclassifications for the period, net of tax
$ 26.1 2
$ 30.7 2
$ 46.1 2
$ 60.2 2
Net income - per share of common stock:
 
 
 
 
Basic earnings per share
$ 0.41 
$ 0.49 
$ 0.73 
$ 0.95 
Diluted earnings per share
$ 0.41 
$ 0.48 
$ 0.72 
$ 0.94 
Weighted average shares outstanding (basic)
63.3 
63.3 
63.3 
63.2 
Weighted average shares outstanding (diluted)
63.8 
63.9 
63.8 
63.8 
Cash dividends declared per share
$ 0.2025 
$ 0.2 
$ 0.4050 
$ 0.40 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Consolidated net income
$ 27.2 
$ 31.2 
$ 48.2 
$ 60.9 
Changes in other comprehensive income (loss), net of tax
 
 
 
 
Currency translation adjustment
19.6 
(36.5)
4.4 
(56.6)
Pension and postretirement (net of quarter-to-date tax of $0.8 and $ — and year-to-date tax of $1.2 and $0.5)
(0.2)
1.0 
0.5 
1.8 
Change in net unrealized gain (loss) on derivative instruments (net of quarter-to-date tax of ($1.1) and $1.4 and year-to-date tax of ($1.1) and $1.6)
0.4 
(3.8)
1.0 
(4.3)
Total changes in other comprehensive income (loss), net of tax
19.8 
(39.3)
5.9 
(59.1)
Consolidated comprehensive income
47.0 
(8.1)
54.1 
1.8 
Less: Comprehensive income attributable to noncontrolling interests
1.1 
0.5 
2.0 
0.6 
Comprehensive income (loss)
$ 45.9 1
$ (8.6)1
$ 52.1 1
$ 1.2 1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Pension and postretirement, tax
$ 1.0 
$ 0 
$ 1.2 
$ 0.5 
Change in net unrealized gain (loss) on derivative instruments, tax
$ (1.1)
$ 1.4 
$ (1.1)
$ 1.6 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Sep. 30, 2015
Current Assets
 
 
Cash and cash equivalents
$ 43.2 
$ 48.3 
Trade receivables, net
196.0 
187.9 
Unbilled receivables from long-term manufacturing contracts
122.4 
144.9 
Inventories
162.1 
153.6 
Deferred income taxes
21.5 
21.9 
Prepaid expenses
24.2 
23.8 
Other current assets
18.0 
23.7 
Total current assets
587.4 
604.1 
Property, plant, and equipment, net
158.5 
158.3 
Intangible assets, net
563.9 
459.6 
Goodwill
642.6 
544.0 
Other assets
38.6 
42.1 
Total Assets
1,991.0 
1,808.1 
Current Liabilities
 
 
Trade accounts payable
105.6 
104.3 
Liabilities from long-term manufacturing contracts and advances
71.9 
79.7 
Current portion of long-term debt
12.0 
9.4 
Accrued compensation
49.5 
62.3 
Deferred income taxes
23.1 
25.4 
Other current liabilities
115.4 
123.1 
Total current liabilities
377.5 
404.2 
Long-term debt
700.0 
518.7 
Accrued pension and postretirement healthcare
218.8 
218.7 
Deferred income taxes
32.7 
29.4 
Other long-term liabilities
28.8 
31.3 
Total Liabilities
1,357.8 
1,202.3 
Commitments and contingencies
   
   
SHAREHOLDERS’ EQUITY
 
 
Common stock, no par value (63.7 and 63.6 shares issued, 63.0 and 62.9 shares outstanding)
Additional paid-in capital
351.3 
350.9 
Retained earnings
392.2 
372.1 
Treasury stock (0.7 and 0.7 shares)
(21.0)
(21.0)
Accumulated other comprehensive loss
(101.9)
(107.9)
Hillenbrand Shareholders’ Equity
620.6 
594.1 
Noncontrolling interests
12.6 
11.7 
Total Shareholders’ Equity
633.2 
605.8 
Total Liabilities and Equity
$ 1,991.0 
$ 1,808.1 
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2016
Sep. 30, 2015
Statement of Financial Position [Abstract]
 
 
Common stock, par value (in dollars per share)
   
   
Common stock, shares issued
63,700,000.0 
63,600,000.0 
Common stock, shares outstanding
63,000,000.0 
62,900,000.0 
Treasury stock, shares
700,000.0 
700,000.0 
Consolidated Statements of Cash Flow (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating Activities
 
 
Consolidated net income
$ 48.2 
$ 60.9 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
Depreciation and amortization
31.9 
28.4 
Deferred income taxes
(0.8)
4.2 
Share-based compensation
3.7 
6.3 
Net loss on investments
0.5 
1.4 
Trade accounts receivable and receivables on long-term manufacturing contracts
30.1 
5.6 
Inventories
5.0 
(16.8)
Prepaid expenses and other current assets
6.2 
1.2 
Trade accounts payable
(1.8)
(60.7)
Accrued expenses and other current liabilities
(27.8)
(19.2)
Income taxes payable
(4.5)
3.6 
Defined benefit plan and postretirement funding
(5.9)
(5.2)
Defined benefit plan and postretirement expense
6.1 
7.3 
Other, net
(3.7)
(6.8)
Net cash provided by operating activities
87.2 
10.2 
Investing Activities
 
 
Capital expenditures
(9.1)
(11.9)
Proceeds from sales of property, plant, and equipment
0.9 
0.5 
Payments to Acquire Businesses, Net of Cash Acquired
(237.0)
Other, net
(1.1)
Net cash used in investing activities
(245.2)
(12.5)
Financing Activities
 
 
Repayments on term loan
(4.5)
(4.5)
Proceeds from revolving credit facilities
387.5 
254.4 
Repayments on revolving credit facilities
(199.1)
(332.0)
Proceeds from Issuance of Unsecured Debt
99.6 
Payments of dividends on common stock
(25.4)
(25.2)
Repurchases of common stock
(4.0)
(9.2)
Net (payments) proceeds on stock plans
(0.5)
3.4 
Other, net
0.5 
1.2 
Net cash provided by (used in) financing activities
154.5 
(12.3)
Effect of exchange rates on cash and cash equivalents
(1.6)
(0.4)
Net cash flows
(5.1)
(15.0)
Cash and cash equivalents:
 
 
At beginning of period
48.3 
58.0 
At end of period
$ 43.2 
$ 43.0 
Background and Basis of Presentation
Background and Basis of Presentation
Background and Basis of Presentation
 
Hillenbrand, Inc. (“Hillenbrand”) is a global diversified industrial company that makes and sells premium business-to-business products and services for a wide variety of industries.  We strive to provide superior return for our shareholders, exceptional value for our customers, and great professional opportunities for our people through deployment of the Hillenbrand Operating Model (the “HOM”). The HOM is a consistent and repeatable framework designed to produce sustainable and predictable results.  The HOM defines our mission, vision, values, and leader’s mindset; applies our management practices in Strategy Management, Segmentation, Lean, Talent Development, and Acquisitions; and prescribes three steps (Understand, Focus and Grow) to make our businesses both bigger and better.  Our goal is to continue developing Hillenbrand as a world-class global diversified industrial company. Hillenbrand is composed of two segments:  the Process Equipment Group and Batesville®.  The Process Equipment Group businesses design, develop, manufacture, and service highly engineered industrial equipment around the world.  Batesville is a recognized leader in the North American death care industry.  “Hillenbrand,” “the Company,” “we,” “us,” “our,” and similar words refer to Hillenbrand and its subsidiaries.
 
The accompanying unaudited consolidated financial statements include the accounts of Hillenbrand and its subsidiaries.  They also include two minor subsidiaries where the Company’s ownership percentage is less than 100%.  The Company’s fiscal year ends on September 30.  Unless otherwise stated, references to years relate to fiscal years. Certain prior period amounts have been reclassified to conform to the fiscal 2016 presentation.
 
These unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements and therefore do not include all information required in accordance with accounting principles generally accepted in the United States (“GAAP”).  The unaudited consolidated financial statements have been prepared on the same basis as, and should be read in conjunction with, the audited consolidated financial statements and notes thereto included in our latest Annual Report on Form 10-K for the year ended September 30, 2015, as filed with the SEC.  The September 30, 2015 Consolidated Balance Sheet included in this Form 10-Q was derived from audited consolidated financial statements, but does not include all disclosures required by GAAP for a year-end balance sheet included in Form 10-K.  In the opinion of management, these financial statements reflect all adjustments necessary to present a fair statement of the Company’s consolidated financial position and the consolidated results of operations and cash flow as of the dates and for the periods presented.
 
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the period.  Actual results could differ from those estimates.  Examples of such estimates include, but are not limited to, revenue recognition under the percentage-of-completion method and the establishment of reserves related to customer rebates, doubtful accounts, warranties, early-pay discounts, inventories, income taxes, litigation, self-insurance, and progress toward achievement of performance criteria under the incentive compensation programs.
Summary of Significant Accounting Policies
Recently Issued Accounting Standard
The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for 2015.

Summary of Significant Accounting Policies
 
The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for 2015.

Recently Adopted Accounting Standards

In April 2014, the FASB issued ASU 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which includes amendments that change the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations.  Under ASU 2014-8, only disposals representing a strategic shift in operations should be presented as discontinued operations.  ASU 2014-8 became effective and was adopted for our fiscal year beginning October 1, 2015.  The adoption of this standard did not have a significant impact on our consolidated financial statements.




Recently Issued Accounting Standards
 
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for our fiscal year beginning October 1, 2018, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption, with early adoption permitted on October 1, 2017. We are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements.
 
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  ASU 2014-12 states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition.  ASU 2014-12 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted.  We do not expect the adoption of ASU 2014-12 to have a material impact on our consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We do not expect the adoption of ASU 2014-15 to have a material impact on our consolidated financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement—Extraordinary and Unusual Items. ASU 2015-01 eliminates from GAAP the concept of extraordinary items. ASU 2015-01 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We do not expect the adoption of ASU 2015-01 to have a material impact on our consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. The new standard amends the consolidation guidance in ASC 810 and significantly changes the consolidation analysis required under current generally accepted accounting principles. ASU 2015-02 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We are currently evaluating the impact that ASU 2015-02 will have on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest. ASU 2015-03 simplifies the presentation of debt issuance costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. This standard permits an entity to defer and present debt issuance costs related to line-of-credit arrangements as an asset and to subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. These new standards do not affect the recognition and measurement of debt issuance costs. ASU 2015-03 and ASU 2015-15 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We do not expect the adoption of ASU 2015-03 and ASU 2015-15 to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software. ASU 2015-05 helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We are currently evaluating the impact that ASU 2015-05 will have on our consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330). Under current FASB standards, an entity is required to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. ASU 2015-11 requires an entity to measure inventory within the scope of this update at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. ASU 2015-11 will be effective for our fiscal year beginning October 1, 2017, with early adoption permitted. We do not expect the adoption of ASU 2015-11 to have a material impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations. ASU 2015-16 simplifies the accounting for adjustments made to provisional amounts. The amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is also required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 will be effective for our fiscal year beginning on October 1, 2016, with early adoption permitted. We are currently evaluating the impact that ASU 2015-16 will have on our consolidated financial statements.

In November 2015, the FASB issued ASU 2015-17, Income Taxes. ASU 2015-17 requires that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position in order to simplify the presentation of deferred income taxes. ASU 2015-17 will be effective for our fiscal year beginning on October 1, 2017, with early adoption permitted. We expect that ASU 2015-17 will have a financial statement presentation impact only, as all deferred income tax assets and liabilities will be classified as noncurrent on the consolidated balance sheet.

In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize a right of use asset and related lease liability for leases that have lease terms of more than twelve months.  For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance, with the classifications based on criteria that are similar to those applied under the current lease guidance, without the explicit bright lines.  ASU 2016-02 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments. ASU 2016-06 clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. ASU 2016-06 will be effective for our fiscal year beginning on October 1, 2017, with early adoption permitted. We are currently evaluating the impact that ASU 2016-06 will have on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 reduces complexity in the accounting for several aspects of share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification of certain share-based payment transactions on the statement of cash flows.
Accounting for Income Taxes: All excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement. Excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows.
Forfeitures: An entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur.
Minimum Statutory Tax Withholding Requirements: The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Cash paid when directly withholding shares for tax-withholding purposes should be classified as a financing activity in the statement of cash flows.
ASU 2016-09 will be effective for our fiscal year beginning on October 1, 2017, with early adoption permitted. We are currently evaluating the impact that ASU 2016-09 will have on our consolidated financial statements.
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
 
 
March 31,
2016
 
September 30,
2015
Trade accounts receivable reserves
$
21.6

 
$
20.0

 
 
 
 
Accumulated depreciation on property, plant, and equipment
$
303.0

 
$
295.2

 
 
 
 
Accumulated amortization on intangible assets
$
165.4

 
$
144.8

 
 
 
 
Inventories:
 

 
 

Raw materials and components
$
52.6

 
$
40.1

Work in process
60.8

 
63.9

Finished goods
48.7

 
49.6

Total inventories
$
162.1

 
$
153.6

Financing Agreements
Financing Agreements
Financing Agreements
 
March 31,
2016
 
September 30, 2015
$700 revolving credit facility (excluding outstanding letters of credit)
$
295.6

 
$
107.6

$180 term loan
166.5

 
171.0

$150 senior unsecured notes, net of discount
149.2

 
149.1

$100 Series A Notes
100.0

 
100.0

Other
0.7

 
0.4

Total debt
712.0

 
528.1

Less: current portion
12.0

 
9.4

Total long-term debt
$
700.0

 
$
518.7


 
With respect to the Facility, as of March 31, 2016, we had $10.6 in outstanding letters of credit issued and $393.8 of maximum borrowing capacity. $282.6 of borrowing capacity is immediately available based on our leverage covenant at March 31, 2016, with additional amounts available in the event of a qualifying acquisition.  The weighted-average interest rates on borrowings under the Facility were 1.46% and 1.35% for the three and six months ended March 31, 2016, and 1.30% and 1.29% for the same periods in the prior year. The weighted average facility fee was 0.21% and 0.19% for the three and six months ended March 31, 2016, and 0.23% and 0.24% for the same periods in the prior year. The weighted average interest rate on the Facility’s term loan was 1.76% and 1.61% for the three and six months ended March 31, 2016, and 1.55% and 1.54% for the same periods in the prior year. We have interest rate swaps on $50.0 outstanding under the Facility in order to manage exposure to our variable rate interest payments.
 
In the normal course of business, the Process Equipment Group provides to certain customers bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations. This form of trade finance is customary in the industry and, as a result, we are required to maintain adequate capacity to provide the guarantees. As of March 31, 2016, we had credit arrangements totaling $219.9, under which $124.8 was utilized for this purpose. These arrangements included our €150.0 Syndicated Letter of Guarantee Facility (as amended, the “LG Facility”) and other ancillary credit facilities.

In March 2016, the Company entered into an amendment (the “Third Amendment”) to the Private Shelf Agreement, dated as of December 6, 2012 (as amended, the “Shelf Agreement”), among the Company, Prudential Investment Management (“PIM”) and each Prudential Affiliate (as defined thereunder), governing the 4.60% Series A unsecured notes (the “Series A Notes”). The Third Amendment extends the maturity date of the Shelf Agreement to March 24, 2019, and increases the aggregate principal amount available under the private shelf facility from $150.0 to $200.0, of which $100.0 has been drawn. The Shelf Agreement is an uncommitted facility; the issuance of notes under the facility is subject to successful placement by PIM.

The availability of borrowings under the Facility, the LG Facility, and the Shelf Agreement governing the Series A Notes, is subject to our ability to meet certain conditions including compliance with covenants, absence of default, and continued accuracy of certain representations and warranties. Financial covenants include a maximum ratio of Indebtedness to EBITDA (as defined in the agreements) of 3.5 to 1.0 and a minimum ratio of EBITDA to interest expense of 3.5 to 1.0. As of March 31, 2016, we were in compliance with all covenants.

The Facility, our senior unsecured notes, Series A Notes, and LG Facility are fully and unconditionally guaranteed by certain of the Company’s domestic subsidiaries.
 
We had restricted cash of $0.8 and $0.8 at March 31, 2016 and September 30, 2015.
Retirement Benefits
Retirement Benefits
Retirement Benefits
 
Defined Benefit Plans
 
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Three Months Ended March 31,
 
Three Months Ended March 31,
 
2016
 
2015
 
2016
 
2015
Service costs
$
1.0

 
$
1.1

 
$
0.5

 
$
0.5

Interest costs
2.3

 
3.6

 
0.3

 
0.6

Expected return on plan assets
(2.4
)
 
(3.7
)
 
(0.2
)
 
(0.2
)
Amortization of unrecognized prior service costs, net
0.2

 
0.3

 

 

Amortization of net loss
0.9

 
1.4

 
0.2

 

Net pension costs
$
2.0

 
$
2.7

 
$
0.8

 
$
0.9

 
 
 
 
 
 
 
 
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Six Months Ended March 31,
 
Six Months Ended March 31,
 
2016
 
2015
 
2016
 
2015
Service costs
$
2.0

 
$
2.2

 
$
1.1

 
$
0.9

Interest costs
4.7

 
7.2

 
0.9

 
1.4

Expected return on plan assets
(4.8
)
 
(7.2
)
 
(0.5
)
 
(0.5
)
Amortization of unrecognized prior service costs, net
0.3

 
0.5

 

 

Amortization of net loss
1.8

 
2.6

 
0.4

 

Net pension costs
$
4.0

 
$
5.3

 
$
1.9

 
$
1.8

 
Postretirement Healthcare Plans — Net postretirement healthcare costs were $0.1 and $0.1 for the three months ended March 31, 2016 and 2015, and $0.2 and $0.2 for the six months ended March 31, 2016 and 2015.

Defined Contribution Plans — Expenses related to our defined contribution plans were $2.3 and $2.4 for the three months ended March 31, 2016 and 2015, and $4.6 and $4.5 for the six months ended March 31, 2016 and 2015.
Income Taxes
Income Taxes
Income Taxes
 
The effective tax rates for the three months ended March 31, 2016 and 2015 were 31.1% and 31.4%. The decrease in the effective tax rate during the three months ended March 31, 2016 was primarily due to a favorable geographic mix of pre-tax income, partially offset by an increase in the reserve for unrecognized tax benefits. The effective tax rates for the six months ended March 31, 2016 and 2015 were 30.3% and 30.0%. The increase in the effective tax rate during the six months ended March 31, 2016 was primarily due to an increase in the reserve for unrecognized tax benefits, partially offset by a favorable geographic mix of pre-tax income.
Earnings Per Share
Earnings Per Share
Earnings Per Share
 
The dilutive effects of performance-based stock awards were included in the computation of diluted earnings per share at the level the related performance criteria were met through the respective balance sheet date.  At March 31, 2016 and 2015, potential dilutive effects, representing approximately 800,000 and 1,400,000 shares, were excluded from the computation of diluted earnings per share as the related performance criteria were not yet met, although we expect to meet various levels of criteria in the future.

 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Net income(1)
$
26.1

 
$
30.7

 
$
46.1

 
$
60.2

Weighted average shares outstanding (basic - in millions)
63.3

 
63.3

 
63.3

 
63.2

Effect of dilutive stock options and other unvested equity awards (in millions)
0.5

 
0.6

 
0.5

 
0.6

Weighted average shares outstanding (diluted - in millions)
63.8

 
63.9

 
63.8

 
63.8

 
 
 
 
 
 
 
 
Basic earnings per share
$
0.41

 
$
0.49

 
$
0.73

 
$
0.95

Diluted earnings per share
$
0.41

 
$
0.48

 
$
0.72

 
$
0.94

 
 
 
 
 
 
 
 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
1.3

 
0.7

 
0.7

 
0.7

 
(1) Net income attributable to Hillenbrand
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity
 
During the six months ended March 31, 2016, we paid approximately $25.4 of cash dividends.  We also repurchased approximately 145,000 shares of our common stock during the six months ended March 31, 2016, for a total cost of approximately $4.0. In connection with our share-based compensation plans discussed further in Note 11, we also issued approximately 241,000 shares of common stock, of which approximately 136,000 shares were treasury stock.
Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss)
 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss)
on Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2014
$
(46.0
)
 
$
(4.9
)
 
$
(1.3
)
 
$
(52.2
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount

 
(56.5
)
 
(8.5
)
 
(65.0
)
 
$
(0.1
)
 
$
(65.1
)
Tax expense

 

 
2.5

 
2.5

 

 
2.5

After tax amount

 
(56.5
)
 
(6.0
)
 
(62.5
)
 
(0.1
)
 
(62.6
)
Amounts reclassified from accumulated other comprehensive income(1)
1.8

 

 
1.7

 
3.5

 

 
3.5

Net current period other comprehensive income (loss)
1.8

 
(56.5
)
 
(4.3
)
 
(59.0
)
 
$
(0.1
)
 
$
(59.1
)
Balance at March 31, 2015
$
(44.2
)
 
$
(61.4
)
 
$
(5.6
)
 
$
(111.2
)
 
 

 
 

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

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount

 
4.5

 
1.3

 
5.8

 
$
(0.1
)
 
$
5.7

Tax expense

 

 
(0.6
)
 
(0.6
)
 

 
(0.6
)
After tax amount

 
4.5

 
0.7

 
5.2

 
(0.1
)
 
5.1

Amounts reclassified from accumulated other comprehensive income(1)
0.5

 

 
0.3

 
0.8

 

 
0.8

Net current period other comprehensive income (loss)
0.5

 
4.5

 
1.0

 
6.0

 
$
(0.1
)
 
$
5.9

Balance at March 31, 2016
$
(53.9
)
 
$
(47.6
)
 
$
(0.4
)
 
$
(101.9
)
 
 

 
 

(1)  Amounts are net of tax.
 
Reclassifications out of Accumulated Other Comprehensive Income include: 
 
Three Months Ended March 31, 2015
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.8

 
$
0.8

Cost of goods sold
0.8

 
0.2

 
0.1

 
1.1

Operating expenses
0.4

 

 

 
0.4

Other income (expense), net

 

 
0.8

 
0.8

Total before tax
$
1.2

 
$
0.2

 
$
1.7

 
$
3.1

Tax expense
 

 
 

 
 

 
(0.9
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
2.2


 
Six Months Ended March 31, 2015
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
1.3

 
$
1.3

Cost of goods sold
1.7

 
0.3

 

 
2.0

Operating expenses
0.7

 
0.1

 

 
0.8

Other income (expense), net

 

 
1.1

 
1.1

Total before tax
$
2.4

 
$
0.4

 
$
2.4

 
$
5.2

Tax expense
 
 
 
 
 
 
(1.7
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
3.5


 
Three Months Ended March 31, 2016
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.2
)
 
$
(0.2
)
Cost of goods sold
0.6

 

 

 
0.6

Operating expenses
0.2

 
0.1

 

 
0.3

Other income (expense), net

 

 
(0.1
)
 
(0.1
)
Total before tax
$
0.8

 
$
0.1

 
$
(0.3
)
 
$
0.6

Tax expense
 
 
 
 
 
 
(1.1
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
(0.5
)
 
Six Months Ended March 31, 2016
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.3

 
$
0.3

Cost of goods sold
1.2

 
0.1

 

 
1.3

Operating expenses
0.4

 
0.1

 

 
0.5

Other income (expense), net

 

 
0.2

 
0.2

Total before tax
$
1.6

 
$
0.2

 
$
0.5

 
$
2.3

Tax expense
 
 
 
 
 
 
(1.5
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
0.8


(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 6).
Share-Based Compensation
Share-Based Compensation
Share-Based Compensation
 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Share-based compensation costs
$
3.1

 
$
4.1

 
$
3.7

 
$
6.3

Less impact of income tax benefit
1.2

 
1.5

 
1.4

 
2.3

Share-based compensation costs, net of tax
$
1.9

 
$
2.6

 
$
2.3

 
$
4.0


 
We have share-based compensation with long-term performance-based metrics that are contingent upon our relative total shareholder return and the creation of shareholder value as measured by the cumulative cash returns and final period net operating profit after tax compared to the performance-based targets for each grant over a three-year period.  For the performance-based awards contingent upon the creation of shareholder value, compensation expense is adjusted each quarter based upon actual results to date and any changes to forecasted information on each of the separate grants. 
 
During the six months ended March 31, 2016, we made the following grants:
 
 
Number of
Units
Stock options
497,774

Time-based stock awards
42,262

Performance-based stock awards (maximum that can be earned)
378,158


 
Stock options granted during fiscal 2016 had a weighted-average exercise price of $31.11 and a weighted-average grant date fair value of $7.80.  Our time-based stock awards and performance-based stock awards granted during fiscal 2016 had weighted-average grant date fair values of $30.54 and $33.03.  Included in the performance-based stock awards granted during 2016 are 199,372 units whose payout level is based upon the Company’s total shareholder return as it relates to the performance of companies in its compensation peer group over a three-year measurement period.  These units will be expensed on a straight-line basis over the measurement period and are not subsequently adjusted after the grant date.
 
Other Income (Expense), Net
Other Income and Other Expense
Other Income (Expense), Net
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Equity in net loss of affiliates
$
(0.1
)
 
$
(1.7
)
 
$
(0.5
)
 
$
(1.4
)
Foreign currency exchange gain (loss), net
0.2

 
(3.3
)
 
0.1

 
(4.1
)
Other, net
(1.0
)
 

 
(1.2
)
 
0.5

Other income (expense), net
$
(0.9
)
 
$
(5.0
)
 
$
(1.6
)
 
$
(5.0
)
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
 
Like most companies, we are involved from time to time in claims, lawsuits, and government proceedings relating to our operations, including environmental, patent infringement, business practices, commercial transactions, product and general liability, workers’ compensation, auto liability, employment, and other matters. The ultimate outcome of these matters cannot be predicted with certainty. An estimated loss from these contingencies is recognized when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated; however, it is difficult to measure the actual loss that might be incurred related to litigation. If a loss is not considered probable and/or cannot be reasonably estimated, we are required to make a disclosure if there is at least a reasonable possibility that a significant loss may have been incurred. Legal fees associated with claims and lawsuits are generally expensed as incurred.

Claims other than employment and related matters have deductibles and self-funded retentions up to $0.5 per occurrence or per claim, depending upon the type of coverage and policy period. Outside insurance companies and third-party claims administrators assist in establishing individual claim reserves, and an independent outside actuary provides estimates of ultimate projected losses, including incurred but not reported claims, which are used to establish reserves for losses. Claim reserves for employment-related matters are established based upon advice from internal and external counsel and historical settlement information for claims and related fees when such amounts are considered probable of payment.

The recorded amounts represent our best estimate of the costs we will incur in relation to such exposures, but it is possible that actual costs will differ from those estimates.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
 
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.  The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.  Observable inputs are from sources independent of the Company.  Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability, developed based upon the best information available in the circumstances.  The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  The hierarchy is broken down into three levels:
 
Level 1:
Inputs are quoted prices in active markets for identical assets or liabilities.
Level 2:
Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.
Level 3:
Inputs are unobservable for the asset or liability.
 
 
Carrying Value at
March 31, 2016
 
 
 
 
 
 
 
 
Fair Value at March 31, 2016
Using Inputs Considered as:
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
43.2

 
$
43.2

 
$

 
$

Investments in rabbi trust
3.7

 
3.7

 

 

Derivative instruments
3.2

 

 
3.2

 

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.2

 
162.0

 

 

Revolving credit facility
295.6

 

 
295.6

 

Term loan
166.5

 

 
166.5

 

  $100 Series A Notes
100.0

 

 
107.0

 

Derivative instruments
5.0

 

 
5.0

 


 
The fair values of the Facility’s revolving credit facility and term loan approximated carrying value at March 31, 2016.  The fair values of the Facility’s revolving credit facility, and term loan, and the Series A Notes are estimated based on the Facility’s internally developed models, using current market interest rate data for similar issues as there is no active market for our revolving credit facility, and term loan, or the Series A Notes.

The fair values of the Company’s derivative instruments are based upon pricing models using inputs derived from third-party pricing services or observable market data such as currency spot and forward rates.  These values are periodically validated by comparing to third-party broker quotes.  The aggregate notional value of the derivative instruments was $209.6 at March 31, 2016. The derivatives are included in other current assets and other current liabilities on the balance sheet.
Segment and Geographical Information
Segment and Geographical Information
Segment and Geographical Information
 
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2016
 
2015
 
2016
 
2015
Net revenue
 

 
 

 
 

 
 

Process Equipment Group
$
235.8

 
$
240.8

 
$
449.8

 
$
497.2

Batesville
151.2

 
163.8

 
288.9

 
308.9

Total
$
387.0

 
$
404.6

 
$
738.7

 
$
806.1

 
 
 
 
 
 
 
 
Adjusted EBITDA
 

 
 

 
 

 
 

Process Equipment Group
$
35.0

 
$
34.6

 
$
67.9

 
$
72.7

Batesville
43.0

 
44.0

 
74.9

 
76.6

Corporate
(10.2
)
 
(13.1
)
 
(17.2
)
 
(20.4
)
 
 
 
 
 
 
 
 
Net revenue (1)
 

 
 

 
 

 
 

United States
$
220.0

 
$
236.2

 
$
419.0

 
$
452.8

International
167.0

 
168.4

 
319.7

 
353.3

Total
$
387.0

 
$
404.6

 
$
738.7

 
$
806.1

 
(1) We attribute revenue to a geography based upon the location of the legal entity that consummates the external sale.
 
 
March 31,
2016
 
September 30, 2015
Total assets assigned
 

 
 

Process Equipment Group
$
1,746.3

 
$
1,537.3

Batesville
217.8

 
224.9

Corporate
26.9

 
45.9

Total
$
1,991.0

 
$
1,808.1

 
 
 
 
Tangible long-lived assets, net
 

 
 

United States
$
94.1

 
$
95.7

International
64.4

 
62.6

Total
$
158.5

 
$
158.3



The following schedule reconciles segment adjusted EBITDA to consolidated net income.
 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Adjusted EBITDA:
 

 
 

 
 

 
 

Process Equipment Group
$
35.0

 
$
34.6

 
$
67.9

 
$
72.7

Batesville
43.0

 
44.0

 
74.9

 
76.6

Corporate
(10.2
)
 
(13.1
)
 
(17.2
)
 
(20.4
)
Less:
 

 
 

 
 

 
 

Interest income
(0.2
)
 
(0.4
)
 
(0.5
)
 
(0.7
)
Interest expense
6.4

 
6.4

 
12.3

 
12.1

Income tax expense
12.3

 
14.3

 
21.0

 
26.1

Depreciation and amortization
15.9

 
13.4

 
31.9

 
28.4

Business acquisition and integration
1.1

 
(0.1
)
 
2.8

 
0.2

Inventory step-up
1.1

 

 
2.5

 

Restructuring and restructuring related
4.0

 
0.7

 
7.4

 
1.4

Litigation

 

 

 
0.5

Consolidated net income
$
27.2

 
$
31.2

 
$
48.2

 
$
60.9

Condensed Consolidating Information
Condensed Consolidating Information
Condensed Consolidating Information
 
Certain 100% owned subsidiaries of Hillenbrand fully and unconditionally, jointly and severally, agreed to guarantee all of the indebtedness relating to our obligations under the Facility, senior unsecured notes, Series A Notes, and LG Facility.  The following are the condensed consolidating financial statements, including the guarantors, which present the statements of income, balance sheets, and cash flows of (i) the parent holding company, (ii) the guarantor subsidiaries, (iii) the non-guarantor subsidiaries, and (iv) eliminations necessary to present the information for Hillenbrand on a consolidated basis.

Condensed Consolidating Statements of Income
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
217.8

 
$
218.3

 
$
(49.1
)
 
$
387.0

 
$

 
$
235.7

 
$
220.0

 
$
(51.1
)
 
$
404.6

Cost of goods sold

 
108.6

 
159.1

 
(23.4
)
 
244.3

 

 
119.2

 
162.2

 
(25.4
)
 
256.0

Gross profit

 
109.2

 
59.2

 
(25.7
)
 
142.7

 

 
116.5

 
57.8

 
(25.7
)
 
148.6

Operating expenses
7.7

 
63.7

 
41.6

 
(25.7
)
 
87.3

 
10.6

 
60.9

 
38.6

 
(25.7
)
 
84.4

Amortization expense

 
4.5

 
4.1

 

 
8.6

 
0.1

 
2.9

 
4.3

 

 
7.3

Interest expense
5.6

 
0.1

 
0.7

 

 
6.4

 
5.2

 
0.4

 
0.8

 

 
6.4

Other income (expense), net
(0.3
)
 
(1.1
)
 
0.5

 

 
(0.9
)
 
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
Equity in net income (loss) of subsidiaries
32.0

 
2.7

 

 
(34.7
)
 

 
40.9

 
3.0

 

 
(43.9
)
 

Income (loss) before income taxes
18.4

 
42.5

 
13.3

 
(34.7
)
 
39.5

 
23.3

 
54.7

 
11.4

 
(43.9
)
 
45.5

Income tax expense (benefit)
(7.7
)
 
15.9

 
4.1

 

 
12.3

 
(7.4
)
 
19.2

 
2.5

 

 
14.3

Consolidated net income (loss)
26.1

 
26.6

 
9.2

 
(34.7
)
 
27.2

 
30.7

 
35.5

 
8.9

 
(43.9
)
 
31.2

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
1.1

 

 
1.1

 

 

 
0.5

 

 
0.5

Net income (loss) (1)
$
26.1

 
$
26.6

 
$
8.1

 
$
(34.7
)
 
$
26.1

 
$
30.7

 
$
35.5

 
$
8.4

 
$
(43.9
)
 
$
30.7

Consolidated comprehensive income (loss)
$
45.9

 
$
27.2

 
$
29.3

 
$
(55.4
)
 
$
47.0

 
$
(8.6
)
 
$
36.4

 
$
(32.7
)
 
$
(3.2
)
 
$
(8.1
)
Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
1.1

 

 
1.1

 

 

 
0.5

 

 
0.5

Comprehensive income (loss) (2)
$
45.9

 
$
27.2

 
$
28.2

 
$
(55.4
)
 
$
45.9

 
$
(8.6
)
 
$
36.4

 
$
(33.2
)
 
$
(3.2
)
 
$
(8.6
)

 
Six Months Ended March 31, 2016
 
Six Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
415.1

 
$
423.5

 
$
(99.9
)
 
$
738.7

 
$

 
$
452.4

 
$
453.5

 
$
(99.8
)
 
$
806.1

Cost of goods sold

 
210.8

 
305.8

 
(48.8
)
 
467.8

 

 
233.5

 
335.0

 
(49.4
)
 
519.1

Gross profit

 
204.3

 
117.7

 
(51.1
)
 
270.9

 

 
218.9

 
118.5

 
(50.4
)
 
287.0

Operating expenses
14.9

 
123.8

 
81.8

 
(51.1
)
 
169.4

 
18.5

 
120.9

 
78.9

 
(50.4
)
 
167.9

Amortization expense

 
6.8

 
11.6

 

 
18.4

 
0.3

 
5.8

 
8.9

 

 
15.0

Interest expense
10.8

 
0.1

 
1.4

 

 
12.3

 
10.1

 
0.4

 
1.6

 

 
12.1

Other income (expense), net
(0.2
)
 
(2.1
)
 
0.7

 

 
(1.6
)
 
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
Equity in net income (loss) of subsidiaries
58.4

 
4.9

 

 
(63.3
)
 

 
75.0

 
5.2

 

 
(80.2
)
 

Income (loss) before income taxes
32.5

 
76.4

 
23.6

 
(63.3
)
 
69.2

 
44.4

 
96.4

 
26.4

 
(80.2
)
 
87.0

Income tax expense (benefit)
(13.6
)
 
27.9

 
6.7

 

 
21.0

 
(15.8
)
 
34.1

 
7.8

 

 
26.1

Consolidated net income (loss)
46.1

 
48.5

 
16.9

 
(63.3
)
 
48.2

 
60.2

 
62.3

 
18.6

 
(80.2
)
 
60.9

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
2.1

 

 
2.1

 

 

 
0.7

 

 
0.7

Net income (loss) (1)
$
46.1

 
$
48.5

 
$
14.8

 
$
(63.3
)
 
$
46.1

 
$
60.2

 
$
62.3

 
$
17.9

 
$
(80.2
)
 
$
60.2

Consolidated comprehensive income (loss)
$
52.1

 
$
58.0

 
$
22.5

 
$
(78.5
)
 
$
54.1

 
$
1.2

 
$
64.0

 
$
(30.4
)
 
$
(33.0
)
 
$
1.8

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
2.0

 

 
2.0

 

 

 
0.6

 

 
0.6

Comprehensive income (loss) (2)
$
52.1

 
$
58.0

 
$
20.5

 
$
(78.5
)
 
$
52.1

 
$
1.2

 
$
64.0

 
$
(31.0
)
 
$
(33.0
)
 
$
1.2


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
















Condensed Consolidating Balance Sheets
 
March 31, 2016
 
September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
0.9

 
$
6.7

 
$
35.6

 
$

 
$
43.2

 
$
0.3

 
$
7.1

 
$
40.9

 
$

 
$
48.3

Trade receivables, net

 
108.3

 
87.7

 

 
196.0

 

 
113.4

 
74.5

 

 
187.9

Unbilled receivables from long-term
  manufacturing contracts

 
8.3

 
114.1

 

 
122.4

 

 
13.5

 
131.4

 

 
144.9

Inventories

 
73.3

 
91.2

 
(2.4
)
 
162.1

 

 
69.0

 
87.1

 
(2.5
)
 
153.6

Deferred income taxes
3.0

 
15.8

 
2.7

 

 
21.5

 
1.8

 
15.7

 
4.4

 

 
21.9

Prepaid expense
2.6

 
9.4

 
12.2

 

 
24.2

 
2.8

 
6.5

 
14.5

 

 
23.8

Intercompany receivables

 
907.5

 
47.6

 
(955.1
)
 

 

 
921.8

 
60.2

 
(982.0
)
 

Other current assets

 
2.0

 
15.6

 
0.4

 
18.0

 
0.6

 
1.9

 
20.8

 
0.4

 
23.7

Total current assets
6.5

 
1,131.3

 
406.7

 
(957.1
)
 
587.4

 
5.5

 
1,148.9

 
433.8

 
(984.1
)
 
604.1

Property, plant and equipment, net
5.5

 
67.2

 
85.8

 

 
158.5

 
6.3

 
66.2

 
85.8

 

 
158.3

Intangible assets, net
3.3

 
229.1

 
331.5

 

 
563.9

 
2.2

 
175.6

 
281.8

 

 
459.6

Goodwill

 
271.8

 
370.8

 

 
642.6

 

 
211.7

 
332.3

 

 
544.0

Investment in consolidated subsidiaries
2,218.9

 
842.7

 

 
(3,061.6
)
 

 
2,082.7

 
836.1

 

 
(2,918.8
)
 

Other assets
22.5

 
28.0

 
1.0

 
(12.9
)
 
38.6

 
24.5

 
31.0

 
0.9

 
(14.3
)
 
42.1

Total Assets
$
2,256.7

 
$
2,570.1

 
$
1,195.8

 
$
(4,031.6
)
 
$
1,991.0

 
$
2,121.2

 
$
2,469.5

 
$
1,134.6

 
$
(3,917.2
)
 
$
1,808.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.1

 
$
19.5

 
$
85.5

 
$
0.5

 
$
105.6

 
$
0.5

 
$
22.7

 
$
81.3

 
$
(0.2
)
 
$
104.3

Liabilities from long-term
  manufacturing contracts and advances

 
11.0

 
60.9

 

 
71.9

 

 
13.5

 
66.2

 

 
79.7

Current portion of long-term debt
11.3

 

 
0.7

 

 
12.0

 
9.0

 

 
0.4

 

 
9.4

Accrued compensation
2.7

 
15.3

 
31.5

 

 
49.5

 
3.9

 
23.0

 
35.4

 

 
62.3

Deferred income taxes

 

 
23.1

 

 
23.1

 

 

 
25.4

 

 
25.4

Intercompany payables
953.7

 
3.8

 

 
(957.5
)
 

 
979.7

 
4.8

 

 
(984.5
)
 

Other current liabilities
10.1

 
42.9

 
62.0

 
0.4

 
115.4

 
18.1

 
46.0

 
58.6

 
0.4

 
123.1

Total current liabilities
977.9

 
92.5

 
263.7

 
(956.6
)
 
377.5

 
1,011.2

 
110.0

 
267.3

 
(984.3
)
 
404.2

Long-term debt
654.4

 

 
45.6

 

 
700.0

 
513.1

 

 
5.6

 

 
518.7

Accrued pension and
  postretirement healthcare
1.1

 
120.3

 
97.4

 

 
218.8

 
1.1

 
119.8

 
97.8

 

 
218.7

Deferred income taxes

 
17.4

 
28.7

 
(13.4
)
 
32.7

 

 
17.0

 
26.5

 
(14.1
)
 
29.4

Other long-term liabilities
2.7

 
17.7

 
8.4

 

 
28.8

 
1.7

 
20.4

 
9.2

 

 
31.3

Total Liabilities
1,636.1

 
247.9

 
443.8

 
(970.0
)
 
1,357.8

 
1,527.1

 
267.2

 
406.4

 
(998.4
)
 
1,202.3

Total Hillenbrand Shareholders’ Equity
620.6

 
2,322.2

 
739.4

 
(3,061.6
)
 
620.6

 
594.1

 
2,202.3

 
716.5

 
(2,918.8
)
 
594.1

Noncontrolling interests

 

 
12.6

 

 
12.6

 

 

 
11.7

 

 
11.7

Total Equity
620.6

 
2,322.2

 
752.0

 
(3,061.6
)
 
633.2

 
594.1

 
2,202.3

 
728.2

 
(2,918.8
)
 
605.8

Total Liabilities and Equity
$
2,256.7

 
$
2,570.1

 
$
1,195.8

 
$
(4,031.6
)
 
$
1,991.0

 
$
2,121.2

 
$
2,469.5

 
$
1,134.6

 
$
(3,917.2
)
 
$
1,808.1




Condensed Consolidating Statements of Cash Flow
 
 
Six Months Ended March 31, 2016
 
Six Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
     operating activities
$
(112.7
)
 
$
238.4

 
$
71.5

 
$
(110.0
)
 
$
87.2

 
$
12.7

 
$
84.8

 
$
(1.7
)
 
$
(85.6
)
 
$
10.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(1.3
)
 
(3.4
)
 
(4.4
)
 

 
(9.1
)
 
(0.8
)
 
(7.2
)
 
(3.9
)
 

 
(11.9
)
Proceeds from sales of property, plant, and
     equipment

 
0.5

 
0.4

 

 
0.9

 

 
0.5

 

 

 
0.5

Acquisition of business, net of cash
     acquired

 
(131.3
)
 
(105.7
)
 

 
(237.0
)
 

 

 

 

 

Other, net

 

 

 

 

 

 
(0.9
)
 
(0.2
)
 

 
(1.1
)
Net cash used in investing activities
(1.3
)
 
(134.2
)
 
(109.7
)
 

 
(245.2
)
 
(0.8
)
 
(7.6
)
 
(4.1
)
 

 
(12.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(4.5
)
 

 

 

 
(4.5
)
 
(4.5
)
 

 

 

 
(4.5
)
Proceeds from revolving credit facilities
262.0

 

 
125.5

 

 
387.5

 
191.0

 

 
63.4

 

 
254.4

Repayments on revolving credit facilities
(113.9
)
 


 
(85.2
)
 

 
(199.1
)
 
(268.5
)
 

 
(63.5
)
 

 
(332.0
)
Proceeds from unsecured Series A Notes,
      net of financing costs

 

 

 

 

 
99.6

 

 

 

 
99.6

Payment of dividends on intercompany

 
(104.6
)
 
(5.4
)
 
110.0

 

 

 
(80.3
)
 
(5.3
)
 
85.6

 

Payment of dividends on common stock
(25.4
)
 

 

 

 
(25.4
)
 
(25.2
)
 

 

 

 
(25.2
)
Repurchases of common stock
(4.0
)
 

 

 

 
(4.0
)
 
(9.2
)
 

 

 

 
(9.2
)
Net proceeds on stock plans
(0.5
)
 

 

 

 
(0.5
)
 
3.4

 

 

 

 
3.4

Other, net
0.9

 

 
(0.4
)
 

 
0.5

 
1.2

 

 

 

 
1.2

Net cash provided by
     financing activities
114.6

 
(104.6
)
 
34.5

 
110.0

 
154.5

 
(12.2
)
 
(80.3
)
 
(5.4
)
 
85.6

 
(12.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
     cash equivalents

 

 
(1.6
)
 

 
(1.6
)
 

 

 
(0.4
)
 

 
(0.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
0.6

 
(0.4
)
 
(5.3
)
 

 
(5.1
)
 
(0.3
)
 
(3.1
)
 
(11.6
)
 

 
(15.0
)
Cash and equivalents at beginning of
     period
0.3

 
7.1

 
40.9

 

 
48.3

 
0.4

 
10.6

 
47.0

 

 
58.0

Cash and equivalents at end of period
$
0.9

 
$
6.7

 
$
35.6

 
$

 
$
43.2

 
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

Restructuring
Restructuring
Restructuring
 
The following schedule details the restructuring charges by segment and the classification of those charges on the income statement.
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Cost of goods sold
 
Operating expenses
 
Total
 
Cost of goods sold
 
Operating expenses
 
Total
Process Equipment Group
$
0.8

 
$
1.9

 
$
2.7

 
$
0.1

 
$
0.4

 
$
0.5

Batesville
0.1

 
0.7

 
0.8

 

 

 

Corporate

 
0.1

 
0.1

 

 
0.2

 
0.2

Total
$
0.9

 
$
2.7

 
$
3.6

 
$
0.1

 
$
0.6

 
$
0.7


 
Six Months Ended March 31, 2016
 
Six Months Ended March 31, 2015
 
Cost of goods sold
 
Operating expenses
 
Total
 
Cost of goods sold
 
Operating expenses
 
Total
Process Equipment Group
$
2.8

 
$
3.1

 
$
5.9

 
$
0.1

 
$
0.7

 
$
0.8

Batesville
0.1

 
0.7

 
0.8

 
1.2

 

 
1.2

Corporate

 
0.3

 
0.3

 

 
0.6

 
0.6

Total
$
2.9

 
$
4.1

 
$
7.0

 
$
1.3

 
$
1.3

 
$
2.6


These costs are related primarily to severance costs at the Process Equipment Group and Batesville as we continue to integrate and streamline the business operations within the segments; disposal of equipment in 2015 at Batesville; and corporate compensation costs related to changes in the Company’s executive management team. At March 31, 2016, $2.4 of restructuring costs were accrued and will be paid in 2016.
Business Acquisitions (Notes)
Business Combination Disclosure [Text Block]
3.
Business Acquisitions

We incurred $1.1 and $2.8 of business acquisition and integration costs during the three and six months ended March 31, 2016, recorded in operating expenses.



Abel
 
We completed the acquisition of Abel Pumps LP and Abel GmbH & Co. KG and certain of their affiliates (collectively “Abel”) on October 2, 2015 for €95 in cash.  We utilized borrowings under our $700.0 revolving credit facility and $180.0 term loan (the “Facility”), to fund this acquisition. Based in Büchen, Germany, Abel is a globally-recognized leader in positive displacement pumps. Abel specializes in designing, developing, and manufacturing piston and piston diaphragm pumps as well as pumping solutions and in providing related parts and service. This equipment is sold under the ABEL® Pump Technology brand into the power generation, wastewater treatment, mining, general industry, and marine markets. The results of Abel are reported in our Process Equipment Group segment.

Based on the preliminary purchase allocation, we recorded goodwill of $36, and acquired identifiable intangible assets of $58 which consisted of $5 of trade names not subject to amortization, $9 of developed technology, $3 of backlog, and $41 of customer relationships. Goodwill is expected to be deductible for tax purposes in Germany. Supplemental proforma information has not been provided as the acquisition did not have a material impact on consolidated results of operations.

Red Valve

On February 1, 2016, we completed the acquisition of Red Valve Company, Inc. (“Red Valve”) for $131.9 in cash. We utilized borrowings under our Facility, to fund this acquisition. Based in Carnegie, Pennsylvania, Red Valve is a global leader in highly-engineered valves designed to operate in the harshest municipal and industrial wastewater environments. Its products support mission critical applications in water/wastewater, power and mining, and other general industrial markets. The results of Red Valve are reported in our Process Equipment Group segment.

Based on the preliminary purchase allocation, we recorded goodwill of $60, and acquired identifiable intangible assets of $61 which consisted of $4 of trade names not subject to amortization, $8 of developed technology, $1 of backlog, and $48 of customer relationships. Supplemental proforma information has not been provided as the acquisition did not have a material impact on consolidated results of operations.
Summary of Significant Accounting Policies (Policies)
Recently Issued Accounting Standard
The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for 2015.

Summary of Significant Accounting Policies
 
The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for 2015.

Recently Adopted Accounting Standards

In April 2014, the FASB issued ASU 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which includes amendments that change the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations.  Under ASU 2014-8, only disposals representing a strategic shift in operations should be presented as discontinued operations.  ASU 2014-8 became effective and was adopted for our fiscal year beginning October 1, 2015.  The adoption of this standard did not have a significant impact on our consolidated financial statements.




Recently Issued Accounting Standards
 
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for our fiscal year beginning October 1, 2018, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption, with early adoption permitted on October 1, 2017. We are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements.
 
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  ASU 2014-12 states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition.  ASU 2014-12 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted.  We do not expect the adoption of ASU 2014-12 to have a material impact on our consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We do not expect the adoption of ASU 2014-15 to have a material impact on our consolidated financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement—Extraordinary and Unusual Items. ASU 2015-01 eliminates from GAAP the concept of extraordinary items. ASU 2015-01 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We do not expect the adoption of ASU 2015-01 to have a material impact on our consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. The new standard amends the consolidation guidance in ASC 810 and significantly changes the consolidation analysis required under current generally accepted accounting principles. ASU 2015-02 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We are currently evaluating the impact that ASU 2015-02 will have on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest. ASU 2015-03 simplifies the presentation of debt issuance costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. This standard permits an entity to defer and present debt issuance costs related to line-of-credit arrangements as an asset and to subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. These new standards do not affect the recognition and measurement of debt issuance costs. ASU 2015-03 and ASU 2015-15 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We do not expect the adoption of ASU 2015-03 and ASU 2015-15 to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software. ASU 2015-05 helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 will be effective for our fiscal year beginning October 1, 2016, with early adoption permitted. We are currently evaluating the impact that ASU 2015-05 will have on our consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330). Under current FASB standards, an entity is required to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. ASU 2015-11 requires an entity to measure inventory within the scope of this update at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. ASU 2015-11 will be effective for our fiscal year beginning October 1, 2017, with early adoption permitted. We do not expect the adoption of ASU 2015-11 to have a material impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations. ASU 2015-16 simplifies the accounting for adjustments made to provisional amounts. The amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is also required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 will be effective for our fiscal year beginning on October 1, 2016, with early adoption permitted. We are currently evaluating the impact that ASU 2015-16 will have on our consolidated financial statements.

In November 2015, the FASB issued ASU 2015-17, Income Taxes. ASU 2015-17 requires that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position in order to simplify the presentation of deferred income taxes. ASU 2015-17 will be effective for our fiscal year beginning on October 1, 2017, with early adoption permitted. We expect that ASU 2015-17 will have a financial statement presentation impact only, as all deferred income tax assets and liabilities will be classified as noncurrent on the consolidated balance sheet.

In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires lessees to recognize a right of use asset and related lease liability for leases that have lease terms of more than twelve months.  For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance, with the classifications based on criteria that are similar to those applied under the current lease guidance, without the explicit bright lines.  ASU 2016-02 will be effective for our fiscal year beginning on October 1, 2019, with early adoption permitted. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments. ASU 2016-06 clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. ASU 2016-06 will be effective for our fiscal year beginning on October 1, 2017, with early adoption permitted. We are currently evaluating the impact that ASU 2016-06 will have on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 reduces complexity in the accounting for several aspects of share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification of certain share-based payment transactions on the statement of cash flows.
Accounting for Income Taxes: All excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement. Excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows.
Forfeitures: An entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur.
Minimum Statutory Tax Withholding Requirements: The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Cash paid when directly withholding shares for tax-withholding purposes should be classified as a financing activity in the statement of cash flows.
ASU 2016-09 will be effective for our fiscal year beginning on October 1, 2017, with early adoption permitted. We are currently evaluating the impact that ASU 2016-09 will have on our consolidated financial statements.
Supplemental Balance Sheet Information (Tables)
Schedule of supplemental balance sheet information
 
March 31,
2016
 
September 30,
2015
Trade accounts receivable reserves
$
21.6

 
$
20.0

 
 
 
 
Accumulated depreciation on property, plant, and equipment
$
303.0

 
$
295.2

 
 
 
 
Accumulated amortization on intangible assets
$
165.4

 
$
144.8

 
 
 
 
Inventories:
 

 
 

Raw materials and components
$
52.6

 
$
40.1

Work in process
60.8

 
63.9

Finished goods
48.7

 
49.6

Total inventories
$
162.1

 
$
153.6

Financing Agreements (Tables)
Schedule of borrowings under financing agreements
 
March 31,
2016
 
September 30, 2015
$700 revolving credit facility (excluding outstanding letters of credit)
$
295.6

 
$
107.6

$180 term loan
166.5

 
171.0

$150 senior unsecured notes, net of discount
149.2

 
149.1

$100 Series A Notes
100.0

 
100.0

Other
0.7

 
0.4

Total debt
712.0

 
528.1

Less: current portion
12.0

 
9.4

Total long-term debt
$
700.0

 
$
518.7

Retirement Benefits (Tables)
Components of net pension costs
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Three Months Ended March 31,
 
Three Months Ended March 31,
 
2016
 
2015
 
2016
 
2015
Service costs
$
1.0

 
$
1.1

 
$
0.5

 
$
0.5

Interest costs
2.3

 
3.6

 
0.3

 
0.6

Expected return on plan assets
(2.4
)
 
(3.7
)
 
(0.2
)
 
(0.2
)
Amortization of unrecognized prior service costs, net
0.2

 
0.3

 

 

Amortization of net loss
0.9

 
1.4

 
0.2

 

Net pension costs
$
2.0

 
$
2.7

 
$
0.8

 
$
0.9

 
 
 
 
 
 
 
 
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Six Months Ended March 31,
 
Six Months Ended March 31,
 
2016
 
2015
 
2016
 
2015
Service costs
$
2.0

 
$
2.2

 
$
1.1

 
$
0.9

Interest costs
4.7

 
7.2

 
0.9

 
1.4

Expected return on plan assets
(4.8
)
 
(7.2
)
 
(0.5
)
 
(0.5
)
Amortization of unrecognized prior service costs, net
0.3

 
0.5

 

 

Amortization of net loss
1.8

 
2.6

 
0.4

 

Net pension costs
$
4.0

 
$
5.3

 
$
1.9

 
$
1.8

 
Earnings Per Share (Tables)
Schedule of computation of basic and diluted earnings per share
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Net income(1)
$
26.1

 
$
30.7

 
$
46.1

 
$
60.2

Weighted average shares outstanding (basic - in millions)
63.3

 
63.3

 
63.3

 
63.2

Effect of dilutive stock options and other unvested equity awards (in millions)
0.5

 
0.6

 
0.5

 
0.6

Weighted average shares outstanding (diluted - in millions)
63.8

 
63.9

 
63.8

 
63.8

 
 
 
 
 
 
 
 
Basic earnings per share
$
0.41

 
$
0.49

 
$
0.73

 
$
0.95

Diluted earnings per share
$
0.41

 
$
0.48

 
$
0.72

 
$
0.94

 
 
 
 
 
 
 
 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
1.3

 
0.7

 
0.7

 
0.7

 
(1) Net income attributable to Hillenbrand
Other Comprehensive Income (Loss) (Tables)
 
Pension and
Postretirement
 
Currency
Translation
 
Net
Unrealized
Gain (Loss)
on Derivative
Instruments
 
Total
Attributable
to
Hillenbrand,
Inc.
 
Noncontrolling
Interests
 
Total
Balance at September 30, 2014
$
(46.0
)
 
$
(4.9
)
 
$
(1.3
)
 
$
(52.2
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount

 
(56.5
)
 
(8.5
)
 
(65.0
)
 
$
(0.1
)
 
$
(65.1
)
Tax expense

 

 
2.5

 
2.5

 

 
2.5

After tax amount

 
(56.5
)
 
(6.0
)
 
(62.5
)
 
(0.1
)
 
(62.6
)
Amounts reclassified from accumulated other comprehensive income(1)
1.8

 

 
1.7

 
3.5

 

 
3.5

Net current period other comprehensive income (loss)
1.8

 
(56.5
)
 
(4.3
)
 
(59.0
)
 
$
(0.1
)
 
$
(59.1
)
Balance at March 31, 2015
$
(44.2
)
 
$
(61.4
)
 
$
(5.6
)
 
$
(111.2
)
 
 

 
 

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

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount

 
4.5

 
1.3

 
5.8

 
$
(0.1
)
 
$
5.7

Tax expense

 

 
(0.6
)
 
(0.6
)
 

 
(0.6
)
After tax amount

 
4.5

 
0.7

 
5.2

 
(0.1
)
 
5.1

Amounts reclassified from accumulated other comprehensive income(1)
0.5

 

 
0.3

 
0.8

 

 
0.8

Net current period other comprehensive income (loss)
0.5

 
4.5

 
1.0

 
6.0

 
$
(0.1
)
 
$
5.9

Balance at March 31, 2016
$
(53.9
)
 
$
(47.6
)
 
$
(0.4
)
 
$
(101.9
)
 
 

 
 

(1)  Amounts are net of tax.
Reclassifications out of Accumulated Other Comprehensive Income include: 
 
Three Months Ended March 31, 2015
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.8

 
$
0.8

Cost of goods sold
0.8

 
0.2

 
0.1

 
1.1

Operating expenses
0.4

 

 

 
0.4

Other income (expense), net

 

 
0.8

 
0.8

Total before tax
$
1.2

 
$
0.2

 
$
1.7

 
$
3.1

Tax expense
 

 
 

 
 

 
(0.9
)
Total reclassifications for the period, net of tax
 

 
 

 
 

 
$
2.2


 
Six Months Ended March 31, 2015
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
1.3

 
$
1.3

Cost of goods sold
1.7

 
0.3

 

 
2.0

Operating expenses
0.7

 
0.1

 

 
0.8

Other income (expense), net

 

 
1.1

 
1.1

Total before tax
$
2.4

 
$
0.4

 
$
2.4

 
$
5.2

Tax expense
 
 
 
 
 
 
(1.7
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
3.5


 
Three Months Ended March 31, 2016
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.2
)
 
$
(0.2
)
Cost of goods sold
0.6

 

 

 
0.6

Operating expenses
0.2

 
0.1

 

 
0.3

Other income (expense), net

 

 
(0.1
)
 
(0.1
)
Total before tax
$
0.8

 
$
0.1

 
$
(0.3
)
 
$
0.6

Tax expense
 
 
 
 
 
 
(1.1
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
(0.5
)
 
Six Months Ended March 31, 2016
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
Derivative
Instruments
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
0.3

 
$
0.3

Cost of goods sold
1.2

 
0.1

 

 
1.3

Operating expenses
0.4

 
0.1

 

 
0.5

Other income (expense), net

 

 
0.2

 
0.2

Total before tax
$
1.6

 
$
0.2

 
$
0.5

 
$
2.3

Tax expense
 
 
 
 
 
 
(1.5
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
0.8


(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 6).
Share-Based Compensation (Tables)
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Share-based compensation costs
$
3.1

 
$
4.1

 
$
3.7

 
$
6.3

Less impact of income tax benefit
1.2

 
1.5

 
1.4

 
2.3

Share-based compensation costs, net of tax
$
1.9

 
$
2.6

 
$
2.3

 
$
4.0

During the six months ended March 31, 2016, we made the following grants:
 
 
Number of
Units
Stock options
497,774

Time-based stock awards
42,262

Performance-based stock awards (maximum that can be earned)
378,158

Other Income (Expense), Net (Tables)
Other income and expense
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Equity in net loss of affiliates
$
(0.1
)
 
$
(1.7
)
 
$
(0.5
)
 
$
(1.4
)
Foreign currency exchange gain (loss), net
0.2

 
(3.3
)
 
0.1

 
(4.1
)
Other, net
(1.0
)
 

 
(1.2
)
 
0.5

Other income (expense), net
$
(0.9
)
 
$
(5.0
)
 
$
(1.6
)
 
$
(5.0
)
Fair Value Measurements (Tables)
Schedule of financial assets and liabilities at carrying value and fair value and the level within the fair value hierarchy
 
Carrying Value at
March 31, 2016
 
 
 
 
 
 
 
 
Fair Value at March 31, 2016
Using Inputs Considered as:
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
43.2

 
$
43.2

 
$

 
$

Investments in rabbi trust
3.7

 
3.7

 

 

Derivative instruments
3.2

 

 
3.2

 

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.2

 
162.0

 

 

Revolving credit facility
295.6

 

 
295.6

 

Term loan
166.5

 

 
166.5

 

  $100 Series A Notes
100.0

 

 
107.0

 

Derivative instruments
5.0

 

 
5.0

 

Segment and Geographical Information (Tables)
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2016
 
2015
 
2016
 
2015
Net revenue
 

 
 

 
 

 
 

Process Equipment Group
$
235.8

 
$
240.8

 
$
449.8

 
$
497.2

Batesville
151.2

 
163.8

 
288.9

 
308.9

Total
$
387.0

 
$
404.6

 
$
738.7

 
$
806.1

 
 
 
 
 
 
 
 
Adjusted EBITDA
 

 
 

 
 

 
 

Process Equipment Group
$
35.0

 
$
34.6

 
$
67.9

 
$
72.7

Batesville
43.0

 
44.0

 
74.9

 
76.6

Corporate
(10.2
)
 
(13.1
)
 
(17.2
)
 
(20.4
)
 
 
 
 
 
 
 
 
Net revenue (1)
 

 
 

 
 

 
 

United States
$
220.0

 
$
236.2

 
$
419.0

 
$
452.8

International
167.0

 
168.4

 
319.7

 
353.3

Total
$
387.0

 
$
404.6

 
$
738.7

 
$
806.1

 
(1) We attribute revenue to a geography based upon the location of the legal entity that consummates the external sale.
 
March 31,
2016
 
September 30, 2015
Total assets assigned
 

 
 

Process Equipment Group
$
1,746.3

 
$
1,537.3

Batesville
217.8

 
224.9

Corporate
26.9

 
45.9

Total
$
1,991.0

 
$
1,808.1

 
 
 
 
Tangible long-lived assets, net
 

 
 

United States
$
94.1

 
$
95.7

International
64.4

 
62.6

Total
$
158.5

 
$
158.3

The following schedule reconciles segment adjusted EBITDA to consolidated net income.
 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2016
 
2015
 
2016
 
2015
Adjusted EBITDA:
 

 
 

 
 

 
 

Process Equipment Group
$
35.0

 
$
34.6

 
$
67.9

 
$
72.7

Batesville
43.0

 
44.0

 
74.9

 
76.6

Corporate
(10.2
)
 
(13.1
)
 
(17.2
)
 
(20.4
)
Less:
 

 
 

 
 

 
 

Interest income
(0.2
)
 
(0.4
)
 
(0.5
)
 
(0.7
)
Interest expense
6.4

 
6.4

 
12.3

 
12.1

Income tax expense
12.3

 
14.3

 
21.0

 
26.1

Depreciation and amortization
15.9

 
13.4

 
31.9

 
28.4

Business acquisition and integration
1.1

 
(0.1
)
 
2.8

 
0.2

Inventory step-up
1.1

 

 
2.5

 

Restructuring and restructuring related
4.0

 
0.7

 
7.4

 
1.4

Litigation

 

 

 
0.5

Consolidated net income
$
27.2

 
$
31.2

 
$
48.2

 
$
60.9

Condensed Consolidating Information (Tables)
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
217.8

 
$
218.3

 
$
(49.1
)
 
$
387.0

 
$

 
$
235.7

 
$
220.0

 
$
(51.1
)
 
$
404.6

Cost of goods sold

 
108.6

 
159.1

 
(23.4
)
 
244.3

 

 
119.2

 
162.2

 
(25.4
)
 
256.0

Gross profit

 
109.2

 
59.2

 
(25.7
)
 
142.7

 

 
116.5

 
57.8

 
(25.7
)
 
148.6

Operating expenses
7.7

 
63.7

 
41.6

 
(25.7
)
 
87.3

 
10.6

 
60.9

 
38.6

 
(25.7
)
 
84.4

Amortization expense

 
4.5

 
4.1

 

 
8.6

 
0.1

 
2.9

 
4.3

 

 
7.3

Interest expense
5.6

 
0.1

 
0.7

 

 
6.4

 
5.2

 
0.4

 
0.8

 

 
6.4

Other income (expense), net
(0.3
)
 
(1.1
)
 
0.5

 

 
(0.9
)
 
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
Equity in net income (loss) of subsidiaries
32.0

 
2.7

 

 
(34.7
)
 

 
40.9

 
3.0

 

 
(43.9
)
 

Income (loss) before income taxes
18.4

 
42.5

 
13.3

 
(34.7
)
 
39.5

 
23.3

 
54.7

 
11.4

 
(43.9
)
 
45.5

Income tax expense (benefit)
(7.7
)
 
15.9

 
4.1

 

 
12.3

 
(7.4
)
 
19.2

 
2.5

 

 
14.3

Consolidated net income (loss)
26.1

 
26.6

 
9.2

 
(34.7
)
 
27.2

 
30.7

 
35.5

 
8.9

 
(43.9
)
 
31.2

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
1.1

 

 
1.1

 

 

 
0.5

 

 
0.5

Net income (loss) (1)
$
26.1

 
$
26.6

 
$
8.1

 
$
(34.7
)
 
$
26.1

 
$
30.7

 
$
35.5

 
$
8.4

 
$
(43.9
)
 
$
30.7

Consolidated comprehensive income (loss)
$
45.9

 
$
27.2

 
$
29.3

 
$
(55.4
)
 
$
47.0

 
$
(8.6
)
 
$
36.4

 
$
(32.7
)
 
$
(3.2
)
 
$
(8.1
)
Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
1.1

 

 
1.1

 

 

 
0.5

 

 
0.5

Comprehensive income (loss) (2)
$
45.9

 
$
27.2

 
$
28.2

 
$
(55.4
)
 
$
45.9

 
$
(8.6
)
 
$
36.4

 
$
(33.2
)
 
$
(3.2
)
 
$
(8.6
)

 
Six Months Ended March 31, 2016
 
Six Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
415.1

 
$
423.5

 
$
(99.9
)
 
$
738.7

 
$

 
$
452.4

 
$
453.5

 
$
(99.8
)
 
$
806.1

Cost of goods sold

 
210.8

 
305.8

 
(48.8
)
 
467.8

 

 
233.5

 
335.0

 
(49.4
)
 
519.1

Gross profit

 
204.3

 
117.7

 
(51.1
)
 
270.9

 

 
218.9

 
118.5

 
(50.4
)
 
287.0

Operating expenses
14.9

 
123.8

 
81.8

 
(51.1
)
 
169.4

 
18.5

 
120.9

 
78.9

 
(50.4
)
 
167.9

Amortization expense

 
6.8

 
11.6

 

 
18.4

 
0.3

 
5.8

 
8.9

 

 
15.0

Interest expense
10.8

 
0.1

 
1.4

 

 
12.3

 
10.1

 
0.4

 
1.6

 

 
12.1

Other income (expense), net
(0.2
)
 
(2.1
)
 
0.7

 

 
(1.6
)
 
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
Equity in net income (loss) of subsidiaries
58.4

 
4.9

 

 
(63.3
)
 

 
75.0

 
5.2

 

 
(80.2
)
 

Income (loss) before income taxes
32.5

 
76.4

 
23.6

 
(63.3
)
 
69.2

 
44.4

 
96.4

 
26.4

 
(80.2
)
 
87.0

Income tax expense (benefit)
(13.6
)
 
27.9

 
6.7

 

 
21.0

 
(15.8
)
 
34.1

 
7.8

 

 
26.1

Consolidated net income (loss)
46.1

 
48.5

 
16.9

 
(63.3
)
 
48.2

 
60.2

 
62.3

 
18.6

 
(80.2
)
 
60.9

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
2.1

 

 
2.1

 

 

 
0.7

 

 
0.7

Net income (loss) (1)
$
46.1

 
$
48.5

 
$
14.8

 
$
(63.3
)
 
$
46.1

 
$
60.2

 
$
62.3

 
$
17.9

 
$
(80.2
)
 
$
60.2

Consolidated comprehensive income (loss)
$
52.1

 
$
58.0

 
$
22.5

 
$
(78.5
)
 
$
54.1

 
$
1.2

 
$
64.0

 
$
(30.4
)
 
$
(33.0
)
 
$
1.8

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
2.0

 

 
2.0

 

 

 
0.6

 

 
0.6

Comprehensive income (loss) (2)
$
52.1

 
$
58.0

 
$
20.5

 
$
(78.5
)
 
$
52.1

 
$
1.2

 
$
64.0

 
$
(31.0
)
 
$
(33.0
)
 
$
1.2


(1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand
 
March 31, 2016
 
September 30, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and cash equivalents
$
0.9

 
$
6.7

 
$
35.6

 
$

 
$
43.2

 
$
0.3

 
$
7.1

 
$
40.9

 
$

 
$
48.3

Trade receivables, net

 
108.3

 
87.7

 

 
196.0

 

 
113.4

 
74.5

 

 
187.9

Unbilled receivables from long-term
  manufacturing contracts

 
8.3

 
114.1

 

 
122.4

 

 
13.5

 
131.4

 

 
144.9

Inventories

 
73.3

 
91.2

 
(2.4
)
 
162.1

 

 
69.0

 
87.1

 
(2.5
)
 
153.6

Deferred income taxes
3.0

 
15.8

 
2.7

 

 
21.5

 
1.8

 
15.7

 
4.4

 

 
21.9

Prepaid expense
2.6

 
9.4

 
12.2

 

 
24.2

 
2.8

 
6.5

 
14.5

 

 
23.8

Intercompany receivables

 
907.5

 
47.6

 
(955.1
)
 

 

 
921.8

 
60.2

 
(982.0
)
 

Other current assets

 
2.0

 
15.6

 
0.4

 
18.0

 
0.6

 
1.9

 
20.8

 
0.4

 
23.7

Total current assets
6.5

 
1,131.3

 
406.7

 
(957.1
)
 
587.4

 
5.5

 
1,148.9

 
433.8

 
(984.1
)
 
604.1

Property, plant and equipment, net
5.5

 
67.2

 
85.8

 

 
158.5

 
6.3

 
66.2

 
85.8

 

 
158.3

Intangible assets, net
3.3

 
229.1

 
331.5

 

 
563.9

 
2.2

 
175.6

 
281.8

 

 
459.6

Goodwill

 
271.8

 
370.8

 

 
642.6

 

 
211.7

 
332.3

 

 
544.0

Investment in consolidated subsidiaries
2,218.9

 
842.7

 

 
(3,061.6
)
 

 
2,082.7

 
836.1

 

 
(2,918.8
)
 

Other assets
22.5

 
28.0

 
1.0

 
(12.9
)
 
38.6

 
24.5

 
31.0

 
0.9

 
(14.3
)
 
42.1

Total Assets
$
2,256.7

 
$
2,570.1

 
$
1,195.8

 
$
(4,031.6
)
 
$
1,991.0

 
$
2,121.2

 
$
2,469.5

 
$
1,134.6

 
$
(3,917.2
)
 
$
1,808.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.1

 
$
19.5

 
$
85.5

 
$
0.5

 
$
105.6

 
$
0.5

 
$
22.7

 
$
81.3

 
$
(0.2
)
 
$
104.3

Liabilities from long-term
  manufacturing contracts and advances

 
11.0

 
60.9

 

 
71.9

 

 
13.5

 
66.2

 

 
79.7

Current portion of long-term debt
11.3

 

 
0.7

 

 
12.0

 
9.0

 

 
0.4

 

 
9.4

Accrued compensation
2.7

 
15.3

 
31.5

 

 
49.5

 
3.9

 
23.0

 
35.4

 

 
62.3

Deferred income taxes

 

 
23.1

 

 
23.1

 

 

 
25.4

 

 
25.4

Intercompany payables
953.7

 
3.8

 

 
(957.5
)
 

 
979.7

 
4.8

 

 
(984.5
)
 

Other current liabilities
10.1

 
42.9

 
62.0

 
0.4

 
115.4

 
18.1

 
46.0

 
58.6

 
0.4

 
123.1

Total current liabilities
977.9

 
92.5

 
263.7

 
(956.6
)
 
377.5

 
1,011.2

 
110.0

 
267.3

 
(984.3
)
 
404.2

Long-term debt
654.4

 

 
45.6

 

 
700.0

 
513.1

 

 
5.6

 

 
518.7

Accrued pension and
  postretirement healthcare
1.1

 
120.3

 
97.4

 

 
218.8

 
1.1

 
119.8

 
97.8

 

 
218.7

Deferred income taxes

 
17.4

 
28.7

 
(13.4
)
 
32.7

 

 
17.0

 
26.5

 
(14.1
)
 
29.4

Other long-term liabilities
2.7

 
17.7

 
8.4

 

 
28.8

 
1.7

 
20.4

 
9.2

 

 
31.3

Total Liabilities
1,636.1

 
247.9

 
443.8

 
(970.0
)
 
1,357.8

 
1,527.1

 
267.2

 
406.4

 
(998.4
)
 
1,202.3

Total Hillenbrand Shareholders’ Equity
620.6

 
2,322.2

 
739.4

 
(3,061.6
)
 
620.6

 
594.1

 
2,202.3

 
716.5

 
(2,918.8
)
 
594.1

Noncontrolling interests

 

 
12.6

 

 
12.6

 

 

 
11.7

 

 
11.7

Total Equity
620.6

 
2,322.2

 
752.0

 
(3,061.6
)
 
633.2

 
594.1

 
2,202.3

 
728.2

 
(2,918.8
)
 
605.8

Total Liabilities and Equity
$
2,256.7

 
$
2,570.1

 
$
1,195.8

 
$
(4,031.6
)
 
$
1,991.0

 
$
2,121.2

 
$
2,469.5

 
$
1,134.6

 
$
(3,917.2
)
 
$
1,808.1

 
Six Months Ended March 31, 2016
 
Six Months Ended March 31, 2015
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
     operating activities
$
(112.7
)
 
$
238.4

 
$
71.5

 
$
(110.0
)
 
$
87.2

 
$
12.7

 
$
84.8

 
$
(1.7
)
 
$
(85.6
)
 
$
10.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(1.3
)
 
(3.4
)
 
(4.4
)
 

 
(9.1
)
 
(0.8
)
 
(7.2
)
 
(3.9
)
 

 
(11.9
)
Proceeds from sales of property, plant, and
     equipment

 
0.5

 
0.4

 

 
0.9

 

 
0.5

 

 

 
0.5

Acquisition of business, net of cash
     acquired

 
(131.3
)
 
(105.7
)
 

 
(237.0
)
 

 

 

 

 

Other, net

 

 

 

 

 

 
(0.9
)
 
(0.2
)
 

 
(1.1
)
Net cash used in investing activities
(1.3
)
 
(134.2
)
 
(109.7
)
 

 
(245.2
)
 
(0.8
)
 
(7.6
)
 
(4.1
)
 

 
(12.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(4.5
)
 

 

 

 
(4.5
)
 
(4.5
)
 

 

 

 
(4.5
)
Proceeds from revolving credit facilities
262.0

 

 
125.5

 

 
387.5

 
191.0

 

 
63.4

 

 
254.4

Repayments on revolving credit facilities
(113.9
)
 


 
(85.2
)
 

 
(199.1
)
 
(268.5
)
 

 
(63.5
)
 

 
(332.0
)
Proceeds from unsecured Series A Notes,
      net of financing costs

 

 

 

 

 
99.6

 

 

 

 
99.6

Payment of dividends on intercompany

 
(104.6
)
 
(5.4
)
 
110.0

 

 

 
(80.3
)
 
(5.3
)
 
85.6

 

Payment of dividends on common stock
(25.4
)
 

 

 

 
(25.4
)
 
(25.2
)
 

 

 

 
(25.2
)
Repurchases of common stock
(4.0
)
 

 

 

 
(4.0
)
 
(9.2
)
 

 

 

 
(9.2
)
Net proceeds on stock plans
(0.5
)
 

 

 

 
(0.5
)
 
3.4

 

 

 

 
3.4

Other, net
0.9

 

 
(0.4
)
 

 
0.5

 
1.2

 

 

 

 
1.2

Net cash provided by
     financing activities
114.6

 
(104.6
)
 
34.5

 
110.0

 
154.5

 
(12.2
)
 
(80.3
)
 
(5.4
)
 
85.6

 
(12.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
     cash equivalents

 

 
(1.6
)
 

 
(1.6
)
 

 

 
(0.4
)
 

 
(0.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
0.6

 
(0.4
)
 
(5.3
)
 

 
(5.1
)
 
(0.3
)
 
(3.1
)
 
(11.6
)
 

 
(15.0
)
Cash and equivalents at beginning of
     period
0.3

 
7.1

 
40.9

 

 
48.3

 
0.4

 
10.6

 
47.0

 

 
58.0

Cash and equivalents at end of period
$
0.9

 
$
6.7

 
$
35.6

 
$

 
$
43.2

 
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

Restructuring (Tables)
Restructuring and Related Costs [Table Text Block]
The following schedule details the restructuring charges by segment and the classification of those charges on the income statement.
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Cost of goods sold
 
Operating expenses
 
Total
 
Cost of goods sold
 
Operating expenses
 
Total
Process Equipment Group
$
0.8

 
$
1.9

 
$
2.7

 
$
0.1

 
$
0.4

 
$
0.5

Batesville
0.1

 
0.7

 
0.8

 

 

 

Corporate

 
0.1

 
0.1

 

 
0.2

 
0.2

Total
$
0.9

 
$
2.7

 
$
3.6

 
$
0.1

 
$
0.6

 
$
0.7


 
Six Months Ended March 31, 2016
 
Six Months Ended March 31, 2015
 
Cost of goods sold
 
Operating expenses
 
Total
 
Cost of goods sold
 
Operating expenses
 
Total
Process Equipment Group
$
2.8

 
$
3.1

 
$
5.9

 
$
0.1

 
$
0.7

 
$
0.8

Batesville
0.1

 
0.7

 
0.8

 
1.2

 

 
1.2

Corporate

 
0.3

 
0.3

 

 
0.6

 
0.6

Total
$
2.9

 
$
4.1

 
$
7.0

 
$
1.3

 
$
1.3

 
$
2.6


Background and Basis of Presentation - Narrative (Details)
6 Months Ended
Mar. 31, 2016
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of reportable segments
Acquired entity subsidiary investments owned percent
100.00% 
Supplemental Balance Sheet Information - Schedule of supplemental balance sheet information (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Sep. 30, 2015
Balance Sheet Related Disclosures [Abstract]
 
 
Trade accounts receivable reserves
$ 21.6 
$ 20.0 
Accumulated depreciation on property, plant, and equipment
303.0 
295.2 
Accumulated amortization on intangible assets
165.4 
144.8 
Inventories:
 
 
Raw materials and components
52.6 
40.1 
Work in process
60.8 
63.9 
Finished goods
48.7 
49.6 
Total Inventories
$ 162.1 
$ 153.6 
Financing Agreements - Schedule of borrowings (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Sep. 30, 2015
Dec. 15, 2014
Financing Agreements
 
 
 
Total debt
$ 712.0 
$ 528.1 
 
Less: current portion
(12.0)
(9.4)
 
Long-term debt
700.0 
518.7 
 
$700 revolving credit facility (excluding outstanding letters of credit)
 
 
 
Financing Agreements
 
 
 
Total debt
295.6 
107.6 
 
$180 term loan
 
 
 
Financing Agreements
 
 
 
Total debt
166.5 
171.0 
 
$150 senior unsecured notes, net of discount
 
 
 
Financing Agreements
 
 
 
Total debt
149.2 
149.1 
 
$100 Series A Notes
 
 
 
Financing Agreements
 
 
 
Total debt
100.0 
100.0 
 
Stated interest rate
 
 
4.60% 
Borrowings [Member]
 
 
 
Financing Agreements
 
 
 
Total debt
$ 0.7 
$ 0.4 
 
Financing Agreements - Narrative (Details) (USD $)
6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2016
Sep. 30, 2015
Mar. 31, 2016
$700 revolving credit facility (excluding outstanding letters of credit)
Mar. 31, 2015
$700 revolving credit facility (excluding outstanding letters of credit)
Mar. 31, 2016
$700 revolving credit facility (excluding outstanding letters of credit)
Mar. 31, 2015
$700 revolving credit facility (excluding outstanding letters of credit)
Sep. 30, 2015
$700 revolving credit facility (excluding outstanding letters of credit)
Dec. 19, 2014
$700 revolving credit facility (excluding outstanding letters of credit)
Mar. 31, 2016
Term loan
Mar. 31, 2015
Term loan
Mar. 31, 2016
Term loan
Mar. 31, 2015
Term loan
Sep. 30, 2015
Term loan
Dec. 19, 2014
Term loan
Mar. 31, 2016
Other financing agreements
Mar. 31, 2016
$100 Series A Notes
Mar. 24, 2016
$100 Series A Notes
Sep. 30, 2015
$100 Series A Notes
Dec. 31, 2014
$100 Series A Notes
Dec. 15, 2014
$100 Series A Notes
Mar. 31, 2016
Syndicated credit facility
Mar. 31, 2016
Interest Rate Swap [Member]
Cash flow hedging
Debt instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
$ 712,000,000 
$ 528,100,000 
$ 295,600,000 
 
$ 295,600,000 
 
$ 107,600,000 
 
$ 166,500,000 
 
$ 166,500,000 
 
$ 171,000,000 
 
 
$ 100,000,000 
 
$ 100,000,000 
 
 
 
 
Stated interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.60% 
 
 
Line of credit facility, maximum borrowing capacity
 
 
282,600,000 
 
282,600,000 
 
 
700.0 
 
 
 
 
 
 
219,900,000 
 
 
 
 
 
150,000,000 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
180.0 
 
100,000,000 
 
 
100,000,000 
100.0 
 
 
Maximum ratio of Indebtedness to EBITDA allowed
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum ratio of EBITDA to interest expense allowed
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding, amount
 
 
10,600,000 
 
10,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
393,800,000 
 
393,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rates
 
 
1.46% 
1.30% 
1.35% 
1.29% 
 
 
1.76% 
1.55% 
1.61% 
1.54% 
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average facility fee
 
 
0.21% 
0.23% 
0.19% 
0.24% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, amount utilized for bank guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
124,800,000 
 
 
 
 
 
 
 
Restricted cash and cash equivalent
800,000 
800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private Shelf Facility, Accordion Feature, Maximum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 200.0 
 
 
$ 150.0 
 
 
Retirement Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
U.S. Pension Benefits
 
 
 
 
Retirement and Postemployment Benefits
 
 
 
 
Service costs
$ 1.0 
$ 1.1 
$ 2.0 
$ 2.2 
Interest costs
2.3 
3.6 
4.7 
7.2 
Expected return on plan assets
(2.4)
(3.7)
(4.8)
(7.2)
Amortization of unrecognized prior service costs, net
0.2 
0.3 
0.3 
0.5 
Amortization of net loss
0.9 
1.4 
1.8 
2.6 
Net pension costs
2.0 
2.7 
4.0 
5.3 
Non-U.S. Pension Benefits
 
 
 
 
Retirement and Postemployment Benefits
 
 
 
 
Service costs
0.5 
0.5 
1.1 
0.9 
Interest costs
0.3 
0.6 
0.9 
1.4 
Expected return on plan assets
(0.2)
(0.2)
(0.5)
(0.5)
Amortization of unrecognized prior service costs, net
Amortization of net loss
0.2 
0.4 
Net pension costs
$ 0.8 
$ 0.9 
$ 1.9 
$ 1.8 
Retirement Benefits - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Compensation and Retirement Disclosure [Abstract]
 
 
 
 
Postemployment Benefits, Period Expense
$ 0.1 
$ 0.1 
$ 0.2 
$ 0.2 
Defined Contribution Plan, Cost Recognized
$ 2.3 
$ 2.4 
$ 4.6 
$ 4.5 
Income Taxes (Details)
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
 
Effective income tax rate (as a percent)
31.10% 
31.40% 
30.30% 
30.00% 
Earnings Per Share (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Income per common share
 
 
 
 
Net income
$ 26.1 1
$ 30.7 1
$ 46.1 1
$ 60.2 1
Weighted average shares outstanding (basic - in millions)
63,300,000 
63,300,000 
63,300,000 
63,200,000 
Effect of dilutive stock options and other unvested equity awards (in millions)
500,000 
600,000 
500,000 
600,000 
Weighted average shares outstanding (diluted - in millions)
63,800,000 
63,900,000 
63,800,000 
63,800,000 
Basic earnings per share
$ 0.41 
$ 0.49 
$ 0.73 
$ 0.95 
Diluted earnings per share
$ 0.41 
$ 0.48 
$ 0.72 
$ 0.94 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
1,300,000 
700,000 
700,000 
700,000 
Performance-based stock awards
 
 
 
 
Income per common share
 
 
 
 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
 
 
800,000 
1,400,000 
Earnings Per Share - Narrative (Details)
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Antidilutive securities excluded from computation of earnings per share [Line Items]
 
 
 
 
Antidilutive securities excluded from computation of earnings per share, amount
1,300,000 
700,000 
700,000 
700,000 
Performance-based stock awards (maximum that can be earned)
 
 
 
 
Antidilutive securities excluded from computation of earnings per share [Line Items]
 
 
 
 
Antidilutive securities excluded from computation of earnings per share, amount
 
 
800,000 
1,400,000 
Shareholders' Equity - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Class of Stock [Line Items]
 
 
Cash dividends paid on common stock
$ 25.4 
$ 25.2 
Shares repurchased
145,000 
 
Amount of shares repurchased
$ 4.0 
$ 9.2 
Common stock, shares issued
136,000 
 
Treasury Stock
 
 
Class of Stock [Line Items]
 
 
Common stock, shares issued
241,000 
 
Other Comprehensive Income (Loss) - Schedule of changes in accumulated other comprehensive income (loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
$ (107.9)
 
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
5.7 
(65.1)
Tax expense
 
 
(0.6)
2.5 
After tax amount
 
 
5.1 
(62.6)
Amounts reclassified from accumulated other comprehensive income(1)
 
 
0.8 1
3.5 1
Total changes in other comprehensive income (loss), net of tax
19.8 
(39.3)
5.9 
(59.1)
Balance at the end of the period
(101.9)
 
(101.9)
 
Pension and Postretirement
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(54.4)
(46.0)
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
Tax expense
 
 
After tax amount
 
 
Amounts reclassified from accumulated other comprehensive income(1)
 
 
0.5 1
1.8 1
Total changes in other comprehensive income (loss), net of tax
 
 
0.5 
1.8 
Balance at the end of the period
(53.9)
(44.2)
(53.9)
(44.2)
Currency Translation
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(52.1)
(4.9)
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
4.5 
(56.5)
Tax expense
 
 
After tax amount
 
 
4.5 
(56.5)
Amounts reclassified from accumulated other comprehensive income(1)
 
 
1
1
Total changes in other comprehensive income (loss), net of tax
 
 
4.5 
(56.5)
Balance at the end of the period
(47.6)
(61.4)
(47.6)
(61.4)
Net Unrealized Gain (Loss) on Derivative Instruments
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(1.4)
(1.3)
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
1.3 
(8.5)
Tax expense
 
 
(0.6)
2.5 
After tax amount
 
 
0.7 
(6.0)
Amounts reclassified from accumulated other comprehensive income(1)
 
 
0.3 1
1.7 1
Total changes in other comprehensive income (loss), net of tax
 
 
1.0 
(4.3)
Balance at the end of the period
(0.4)
(5.6)
(0.4)
(5.6)
Total Attributable to Hillenbrand, Inc.
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(107.9)
(52.2)
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
5.8 
(65.0)
Tax expense
 
 
(0.6)
2.5 
After tax amount
 
 
5.2 
(62.5)
Amounts reclassified from accumulated other comprehensive income(1)
 
 
0.8 1
3.5 1
Total changes in other comprehensive income (loss), net of tax
 
 
6.0 
(59.0)
Balance at the end of the period
(101.9)
(111.2)
(101.9)
(111.2)
Noncontrolling Interests
 
 
 
 
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
(0.1)
(0.1)
Tax expense
 
 
After tax amount
 
 
(0.1)
(0.1)
Amounts reclassified from accumulated other comprehensive income(1)
 
 
1
1
Total changes in other comprehensive income (loss), net of tax
 
 
$ (0.1)
$ (0.1)
Other Comprehensive Income (Loss) - Schedule of reclassifications (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
$ (387.0)1
$ (404.6)1
$ (738.7)
$ (806.1)
Cost of goods sold
244.3 
256.0 
467.8 
519.1 
Operating expenses
87.3 
84.4 
169.4 
167.9 
Other income (expense), net
0.9 
5.0 
1.6 
5.0 
Total before tax
(39.5)
(45.5)
(69.2)
(87.0)
Tax expense
(12.3)
(14.3)
(21.0)
(26.1)
Total reclassifications for the period, net of tax
(26.1)2
(30.7)2
(46.1)2
(60.2)2
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
(0.2)
0.8 
0.3 
1.3 
Cost of goods sold
0.6 
1.1 
1.3 
2.0 
Operating expenses
0.3 
0.4 
0.5 
0.8 
Other income (expense), net
(0.1)
0.8 
0.2 
1.1 
Total before tax
0.6 
3.1 
2.3 
5.2 
Tax expense
1.1 
0.9 
1.5 
1.7 
Total reclassifications for the period, net of tax
(0.5)
2.2 
0.8 
3.5 
Net Loss Recognized |
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
Cost of goods sold
0.6 
0.8 
1.2 
1.7 
Operating expenses
0.2 
0.4 
0.4 
0.7 
Other income (expense), net
Total before tax
0.8 
1.2 
1.6 
2.4 
Prior Service Costs Recognized |
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
Cost of goods sold
0.2 
0.1 
0.3 
Operating expenses
0.1 
0.1 
0.1 
Other income (expense), net
Total before tax
0.1 
0.2 
0.2 
0.4 
Derivative Instruments |
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
(0.2)
0.8 
0.3 
1.3 
Cost of goods sold
0.1 
Operating expenses
Other income (expense), net
(0.1)
0.8 
0.2 
1.1 
Total before tax
$ (0.3)
$ 1.7 
$ 0.5 
$ 2.4 
Share-Based Compensation - Schedule of stock-based compensation costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Compensation Related Costs [Abstract]
 
 
 
 
Share-based compensation costs
$ 3.1 
$ 4.1 
$ 3.7 
$ 6.3 
Less impact of income tax benefit
1.2 
1.5 
1.4 
2.3 
Share-based compensation costs, net of tax
$ 1.9 
$ 2.6 
$ 2.3 
$ 4.0 
Share-Based Compensation - Schedule of stock-based awards granted (Details)
6 Months Ended
Mar. 31, 2016
Stock options
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Options granted in period
497,774 
Time-based stock awards
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Stock awards granted in period
42,262 
Performance-based stock awards (maximum that can be earned)
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Stock awards granted in period
378,158 
Share-Based Compensation - Narrative (Details) (USD $)
6 Months Ended
Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Performance-based targets for target period
3 years 
Stock options
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Stock option granted, weighted-average exercise price
$ 31.11 
Stock option granted, weighted-average grant date fair value
$ 7.80 
Time-based stock awards
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Equity instruments other than options, grant date fair value
$ 30.54 
Performance-based stock awards (maximum that can be earned)
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Equity instruments other than options, grant date fair value
$ 33.03 
Performance-based stock awards granted, number of units
199,372 
Award performance measurement period
3 years 
Other Income (Expense), Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Accumulated other comprehensive income (loss) [Line Items]
 
 
 
 
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions
$ (0.1)
$ (1.7)
$ (0.5)
$ (1.4)
Foreign currency exchange gain (loss), net
0.2 
(3.3)
0.1 
(4.1)
Other, net
(1.0)
(1.2)
0.5 
Other income (expense), net
$ (0.9)
$ (5.0)
$ (1.6)
$ (5.0)
Commitments and Contingencies - Narrative (Details) (General claims and lawsuits, Minimum, USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 31, 2016
General claims and lawsuits |
Minimum
 
Commitments and Contingencies
 
Deductibles and self-insured retentions per occurrence or per claim
$ 0.5 
Fair Value Measurements - Schedule of financial assets and liabilities (Details) (USD $)
Mar. 31, 2016
Sep. 30, 2015
Mar. 31, 2015
Sep. 30, 2014
Mar. 31, 2016
Level 1
Mar. 31, 2016
Level 2
Mar. 31, 2016
Level 3
Mar. 31, 2016
$150 senior unsecured notes
Sep. 30, 2015
$150 senior unsecured notes
Dec. 31, 2014
$150 senior unsecured notes
Mar. 31, 2016
$150 senior unsecured notes
Level 1
Mar. 31, 2016
$150 senior unsecured notes
Level 2
Mar. 31, 2016
$150 senior unsecured notes
Level 3
Mar. 31, 2016
Revolving credit facility
Sep. 30, 2015
Revolving credit facility
Mar. 31, 2016
Revolving credit facility
Level 1
Mar. 31, 2016
Revolving credit facility
Level 2
Mar. 31, 2016
Revolving credit facility
Level 3
Mar. 31, 2016
Term loan
Sep. 30, 2015
Term loan
Dec. 19, 2014
Term loan
Mar. 31, 2016
Term loan
Level 1
Mar. 31, 2016
Term loan
Level 2
Mar. 31, 2016
Term loan
Level 3
Mar. 31, 2016
$100 Series A Notes
Sep. 30, 2015
$100 Series A Notes
Dec. 31, 2014
$100 Series A Notes
Dec. 15, 2014
$100 Series A Notes
Mar. 31, 2016
$100 Series A Notes
Level 1
Mar. 31, 2016
$100 Series A Notes
Level 2
Mar. 31, 2016
$100 Series A Notes
Level 3
Mar. 31, 2016
Derivatives
Cash flow hedging
Mar. 31, 2016
Carrying value
Financial assets and liabilities at carrying value and fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$ 43,200,000 
$ 48,300,000 
$ 43,000,000 
$ 58,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
150,000,000 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
180.0 
 
 
 
100,000,000 
 
100,000,000 
100.0 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
209,600,000 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
43,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in rabbi trust
 
 
 
 
3,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,700,000 
Derivative instruments
 
 
 
 
3,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,200,000 
Long-term Debt
712,000,000 
528,100,000 
 
 
 
 
 
149,200,000 
149,100,000 
 
 
 
 
295,600,000 
107,600,000 
 
 
 
166,500,000 
171,000,000 
 
 
 
 
100,000,000 
100,000,000 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instruments
 
 
 
 
 
 
 
 
 
 
162,000,000 
 
 
295,600,000 
 
 
 
166,500,000 
 
 
 
 
107,000,000 
 
 
Derivative instruments
 
 
 
 
$ 0 
$ 5,000,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 5,000,000 
Segment and Geographical Information - Schedule of net revenue and assets by segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Sep. 30, 2015
Segment and Geographical Information
 
 
 
 
 
Net revenue
$ 387.0 1
$ 404.6 1
$ 738.7 
$ 806.1 
 
Total assets assigned
1,991.0 
 
1,991.0 
 
1,808.1 
Property, plant, and equipment, net
158.5 
 
158.5 
 
158.3 
United States
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
220.0 
236.2 
419.0 
452.8 
 
Property, plant, and equipment, net
94.1 
 
94.1 
 
95.7 
International
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
167.0 
168.4 
319.7 
353.3 
 
Property, plant, and equipment, net
64.4 
 
64.4 
 
62.6 
Operating segments
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
387.0 
404.6 
738.7 
806.1 
 
Corporate
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Adjusted EBITDA
(10.2)
(13.1)
(17.2)
(20.4)
 
Total assets assigned
26.9 
 
26.9 
 
45.9 
Process Equipment Group
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
235.8 
240.8 
449.8 
497.2 
 
Process Equipment Group |
Operating segments
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Adjusted EBITDA
35.0 
34.6 
67.9 
72.7 
 
Total assets assigned
1,746.3 
 
1,746.3 
 
1,537.3 
Batesville
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
151.2 
163.8 
288.9 
308.9 
 
Batesville |
Operating segments
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Adjusted EBITDA
43.0 
44.0 
74.9 
76.6 
 
Total assets assigned
$ 217.8 
 
$ 217.8 
 
$ 224.9 
Segment and Geographical Information - Schedule of reconciliation of segment (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Segment and Geographical Information
 
 
 
 
Interest income
$ 0.2 
$ 0.4 
$ 0.5 
$ 0.7 
Interest expense
6.4 
6.4 
12.3 
12.1 
Income tax expense
12.3 
14.3 
21.0 
26.1 
Depreciation and amortization
15.9 
13.4 
31.9 
28.4 
Business acquisition and integration
1.1 
(0.1)
2.8 
0.2 
Business Combination, Inventory Step Up Costs
1.1 
2.5 
Restructuring and restructuring related
4.0 
0.7 
7.4 
1.4 
Litigation
0.5 
Consolidated net income
27.2 
31.2 
48.2 
60.9 
Corporate
 
 
 
 
Segment and Geographical Information
 
 
 
 
Adjusted EBITDA
(10.2)
(13.1)
(17.2)
(20.4)
Process Equipment Group |
Operating segments
 
 
 
 
Segment and Geographical Information
 
 
 
 
Adjusted EBITDA
35.0 
34.6 
67.9 
72.7 
Batesville |
Operating segments
 
 
 
 
Segment and Geographical Information
 
 
 
 
Adjusted EBITDA
$ 43.0 
$ 44.0 
$ 74.9 
$ 76.6 
Condensed Consolidating Information - Consolidating statements of income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
 
 
 
 
Percentage ownership of subsidiaries with indebtedness guaranteed by the parent
100.00% 
 
100.00% 
 
Condensed Consolidating Statements of Income
 
 
 
 
Net revenue
$ 387.0 1
$ 404.6 1
$ 738.7 
$ 806.1 
Cost of goods sold
244.3 
256.0 
467.8 
519.1 
Gross profit
142.7 
148.6 
270.9 
287.0 
Operating expenses
87.3 
84.4 
169.4 
167.9 
Amortization of Intangible Assets
8.6 
7.3 
18.4 
15.0 
Interest expense
6.4 
6.4 
12.3 
12.1 
Other income (expense), net
(0.9)
(5.0)
(1.6)
(5.0)
Income before income taxes
39.5 
45.5 
69.2 
87.0 
Income tax expense (benefit)
12.3 
14.3 
21.0 
26.1 
Consolidated net income
27.2 
31.2 
48.2 
60.9 
Less: Net income attributable to noncontrolling interests
1.1 
0.5 
2.1 
0.7 
Total reclassifications for the period, net of tax
26.1 2
30.7 2
46.1 2
60.2 2
Consolidated comprehensive income
47.0 
(8.1)
54.1 
1.8 
Less: Comprehensive income attributable to noncontrolling interests
1.1 
0.5 
2.0 
0.6 
Comprehensive income (loss)
45.9 3
(8.6)3
52.1 3
1.2 3
Reportable legal entities |
Parent
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Operating expenses
7.7 
10.6 
14.9 
18.5 
Amortization of Intangible Assets
0.1 
0.3 
Interest expense
5.6 
5.2 
10.8 
10.1 
Other income (expense), net
(0.3)
(1.7)
(0.2)
(1.7)
Equity in net income (loss) of subsidiaries
32.0 
40.9 
58.4 
75.0 
Income before income taxes
18.4 
23.3 
32.5 
44.4 
Income tax expense (benefit)
(7.7)
(7.4)
(13.6)
(15.8)
Consolidated net income
26.1 
30.7 
46.1 
60.2 
Total reclassifications for the period, net of tax
26.1 2
30.7 2
46.1 2
60.2 2
Consolidated comprehensive income
45.9 
(8.6)
52.1 
1.2 
Comprehensive income (loss)
45.9 3
(8.6)3
52.1 3
1.2 3
Reportable legal entities |
Guarantors
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Net revenue
217.8 
235.7 
415.1 
452.4 
Cost of goods sold
108.6 
119.2 
210.8 
233.5 
Gross profit
109.2 
116.5 
204.3 
218.9 
Operating expenses
63.7 
60.9 
123.8 
120.9 
Amortization of Intangible Assets
4.5 
2.9 
6.8 
5.8 
Interest expense
0.1 
0.4 
0.1 
0.4 
Other income (expense), net
(1.1)
(0.6)
(2.1)
(0.6)
Equity in net income (loss) of subsidiaries
2.7 
3.0 
4.9 
5.2 
Income before income taxes
42.5 
54.7 
76.4 
96.4 
Income tax expense (benefit)
15.9 
19.2 
27.9 
34.1 
Consolidated net income
26.6 
35.5 
48.5 
62.3 
Total reclassifications for the period, net of tax
26.6 2
35.5 2
48.5 2
62.3 2
Consolidated comprehensive income
27.2 
36.4 
58.0 
64.0 
Comprehensive income (loss)
27.2 3
36.4 3
58.0 3
64.0 3
Reportable legal entities |
Non-Guarantors
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Net revenue
218.3 
220.0 
423.5 
453.5 
Cost of goods sold
159.1 
162.2 
305.8 
335.0 
Gross profit
59.2 
57.8 
117.7 
118.5 
Operating expenses
41.6 
38.6 
81.8 
78.9 
Amortization of Intangible Assets
4.1 
4.3 
11.6 
8.9 
Interest expense
0.7 
0.8 
1.4 
1.6 
Other income (expense), net
0.5 
(2.7)
0.7 
(2.7)
Equity in net income (loss) of subsidiaries
 
 
 
Income before income taxes
13.3 
11.4 
23.6 
26.4 
Income tax expense (benefit)
4.1 
2.5 
6.7 
7.8 
Consolidated net income
9.2 
8.9 
16.9 
18.6 
Less: Net income attributable to noncontrolling interests
1.1 
0.5 
2.1 
0.7 
Total reclassifications for the period, net of tax
8.1 2
8.4 2
14.8 2
17.9 2
Consolidated comprehensive income
29.3 
(32.7)
22.5 
(30.4)
Less: Comprehensive income attributable to noncontrolling interests
1.1 
0.5 
2.0 
0.6 
Comprehensive income (loss)
28.2 3
(33.2)3
20.5 3
(31.0)3
Eliminations
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Net revenue
(49.1)
(51.1)
(99.9)
(99.8)
Cost of goods sold
(23.4)
(25.4)
(48.8)
(49.4)
Gross profit
(25.7)
(25.7)
(51.1)
(50.4)
Operating expenses
(25.7)
(25.7)
(51.1)
(50.4)
Amortization of Intangible Assets
 
 
 
Interest expense
 
 
 
Other income (expense), net
 
 
Equity in net income (loss) of subsidiaries
(34.7)
(43.9)
(63.3)
(80.2)
Income before income taxes
(34.7)
(43.9)
(63.3)
(80.2)
Consolidated net income
(34.7)
(43.9)
(63.3)
(80.2)
Total reclassifications for the period, net of tax
(34.7)2
(43.9)2
(63.3)2
(80.2)2
Consolidated comprehensive income
(55.4)
(3.2)
(78.5)
(33.0)
Comprehensive income (loss)
$ (55.4)3
$ (3.2)3
$ (78.5)3
$ (33.0)3
Condensed Consolidating Information - Consolidating balance sheet (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Sep. 30, 2015
Mar. 31, 2015
Sep. 30, 2014
ASSETS
 
 
 
 
Cash and cash equivalents
$ 43.2 
$ 48.3 
$ 43.0 
$ 58.0 
Trade receivables, net
196.0 
187.9 
 
 
Unbilled receivables from long-term manufacturing contracts
122.4 
144.9 
 
 
Inventories
162.1 
153.6 
 
 
Deferred income taxes
21.5 
21.9 
 
 
Prepaid expense
24.2 
23.8 
 
 
Other current assets
18.0 
23.7 
 
 
Total current assets
587.4 
604.1 
 
 
Property, plant, and equipment, net
158.5 
158.3 
 
 
Intangible assets, net
563.9 
459.6 
 
 
Goodwill
642.6 
544.0 
 
 
Other assets
38.6 
42.1 
 
 
Total Assets
1,991.0 
1,808.1 
 
 
LIABILITIES
 
 
 
 
Trade accounts payable
105.6 
104.3 
 
 
Liabilities from long-term manufacturing contracts and advances
71.9 
79.7 
 
 
Current portion of long-term debt
12.0 
9.4 
 
 
Accrued compensation
49.5 
62.3 
 
 
Deferred income taxes
23.1 
25.4 
 
 
Other current liabilities
115.4 
123.1 
 
 
Total current liabilities
377.5 
404.2 
 
 
Long-term debt
700.0 
518.7 
 
 
Accrued pension and postretirement healthcare
218.8 
218.7 
 
 
Deferred income taxes
32.7 
29.4 
 
 
Other long-term liabilities
28.8 
31.3 
 
 
Total Liabilities
1,357.8 
1,202.3 
 
 
Hillenbrand Shareholders’ Equity
620.6 
594.1 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
Noncontrolling interests
12.6 
11.7 
 
 
Total Shareholders’ Equity
633.2 
605.8 
 
 
Total Liabilities and Equity
1,991.0 
1,808.1 
 
 
Reportable legal entities |
Parent
 
 
 
 
ASSETS
 
 
 
 
Cash and cash equivalents
0.9 
0.3 
0.1 
0.4 
Deferred income taxes
3.0 
1.8 
 
 
Prepaid expense
2.6 
2.8 
 
 
Intercompany receivables
 
 
Other current assets
0.6 
 
 
Total current assets
6.5 
5.5 
 
 
Property, plant, and equipment, net
5.5 
6.3 
 
 
Intangible assets, net
3.3 
2.2 
 
 
Investment in consolidated subsidiaries
2,218.9 
2,082.7 
 
 
Other assets
22.5 
24.5 
 
 
Total Assets
2,256.7 
2,121.2 
 
 
LIABILITIES
 
 
 
 
Trade accounts payable
0.1 
0.5 
 
 
Current portion of long-term debt
11.3 
9.0 
 
 
Accrued compensation
2.7 
3.9 
 
 
Intercompany payables
953.7 
979.7 
 
 
Other current liabilities
10.1 
18.1 
 
 
Total current liabilities
977.9 
1,011.2 
 
 
Long-term debt
654.4 
513.1 
 
 
Accrued pension and postretirement healthcare
1.1 
1.1 
 
 
Deferred income taxes
 
 
Other long-term liabilities
2.7 
1.7 
 
 
Total Liabilities
1,636.1 
1,527.1 
 
 
Hillenbrand Shareholders’ Equity
620.6 
594.1 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
Total Shareholders’ Equity
620.6 
594.1 
 
 
Total Liabilities and Equity
2,256.7 
2,121.2 
 
 
Reportable legal entities |
Guarantors
 
 
 
 
ASSETS
 
 
 
 
Cash and cash equivalents
6.7 
7.1 
7.5 
10.6 
Trade receivables, net
108.3 
113.4 
 
 
Unbilled receivables from long-term manufacturing contracts
8.3 
13.5 
 
 
Inventories
73.3 
69.0 
 
 
Deferred income taxes
15.8 
15.7 
 
 
Prepaid expense
9.4 
6.5 
 
 
Intercompany receivables
907.5 
921.8 
 
 
Other current assets
2.0 
1.9 
 
 
Total current assets
1,131.3 
1,148.9 
 
 
Property, plant, and equipment, net
67.2 
66.2 
 
 
Intangible assets, net
229.1 
175.6 
 
 
Goodwill
271.8 
211.7 
 
 
Investment in consolidated subsidiaries
842.7 
836.1 
 
 
Other assets
28.0 
31.0 
 
 
Total Assets
2,570.1 
2,469.5 
 
 
LIABILITIES
 
 
 
 
Trade accounts payable
19.5 
22.7 
 
 
Liabilities from long-term manufacturing contracts and advances
11.0 
13.5 
 
 
Accrued compensation
15.3 
23.0 
 
 
Deferred income taxes
 
 
 
Intercompany payables
3.8 
4.8 
 
 
Other current liabilities
42.9 
46.0 
 
 
Total current liabilities
92.5 
110.0 
 
 
Accrued pension and postretirement healthcare
120.3 
119.8 
 
 
Deferred income taxes
17.4 
17.0 
 
 
Other long-term liabilities
17.7 
20.4 
 
 
Total Liabilities
247.9 
267.2 
 
 
Hillenbrand Shareholders’ Equity
2,322.2 
2,202.3 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
Total Shareholders’ Equity
2,322.2 
2,202.3 
 
 
Total Liabilities and Equity
2,570.1 
2,469.5 
 
 
Reportable legal entities |
Non-Guarantors
 
 
 
 
ASSETS
 
 
 
 
Cash and cash equivalents
35.6 
40.9 
35.4 
47.0 
Trade receivables, net
87.7 
74.5 
 
 
Unbilled receivables from long-term manufacturing contracts
114.1 
131.4 
 
 
Inventories
91.2 
87.1 
 
 
Deferred income taxes
2.7 
4.4 
 
 
Prepaid expense
12.2 
14.5 
 
 
Intercompany receivables
47.6 
60.2 
 
 
Other current assets
15.6 
20.8 
 
 
Total current assets
406.7 
433.8 
 
 
Property, plant, and equipment, net
85.8 
85.8 
 
 
Intangible assets, net
331.5 
281.8 
 
 
Goodwill
370.8 
332.3 
 
 
Other assets
1.0 
0.9 
 
 
Total Assets
1,195.8 
1,134.6 
 
 
LIABILITIES
 
 
 
 
Trade accounts payable
85.5 
81.3 
 
 
Liabilities from long-term manufacturing contracts and advances
60.9 
66.2 
 
 
Current portion of long-term debt
0.7 
0.4 
 
 
Accrued compensation
31.5 
35.4 
 
 
Deferred income taxes
23.1 
25.4 
 
 
Other current liabilities
62.0 
58.6 
 
 
Total current liabilities
263.7 
267.3 
 
 
Long-term debt
45.6 
5.6 
 
 
Accrued pension and postretirement healthcare
97.4 
97.8 
 
 
Deferred income taxes
28.7 
26.5 
 
 
Other long-term liabilities
8.4 
9.2 
 
 
Total Liabilities
443.8 
406.4 
 
 
Hillenbrand Shareholders’ Equity
739.4 
716.5 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
Noncontrolling interests
12.6 
11.7 
 
 
Total Shareholders’ Equity
752.0 
728.2 
 
 
Total Liabilities and Equity
1,195.8 
1,134.6 
 
 
Consolidation, Eliminations [Member]
 
 
 
 
ASSETS
 
 
 
 
Inventories
(2.4)
(2.5)
 
 
Intercompany receivables
(955.1)
(982.0)
 
 
Other current assets
0.4 
0.4 
 
 
Total current assets
(957.1)
(984.1)
 
 
Investment in consolidated subsidiaries
(3,061.6)
(2,918.8)
 
 
Other assets
(12.9)
(14.3)
 
 
Total Assets
(4,031.6)
(3,917.2)
 
 
LIABILITIES
 
 
 
 
Trade accounts payable
0.5 
(0.2)
 
 
Intercompany payables
(957.5)
(984.5)
 
 
Other current liabilities
0.4 
0.4 
 
 
Total current liabilities
(956.6)
(984.3)
 
 
Deferred income taxes
(13.4)
(14.1)
 
 
Other long-term liabilities
 
 
 
Total Liabilities
(970.0)
(998.4)
 
 
Hillenbrand Shareholders’ Equity
(3,061.6)
(2,918.8)
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
Total Shareholders’ Equity
(3,061.6)
(2,918.8)
 
 
Total Liabilities and Equity
$ (4,031.6)
$ (3,917.2)
 
 
Condensed Consolidating Information - Consolidating cash flow statement (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
$ 87.2 
$ 10.2 
Investing activities:
 
 
Capital expenditures
(9.1)
(11.9)
Proceeds from sales of property, plant, and equipment
0.9 
0.5 
Payments to Acquire Businesses, Net of Cash Acquired
(237.0)
Other, net
(1.1)
Net cash used in investing activities
(245.2)
(12.5)
Financing activities:
 
 
Repayments on term loan
(4.5)
(4.5)
Proceeds from revolving credit facilities
387.5 
254.4 
Repayments on revolving credit facilities
(199.1)
(332.0)
Proceeds from Issuance of Unsecured Debt
99.6 
Payment of dividends on common stock
(25.4)
(25.2)
Repurchases of common stock
(4.0)
(9.2)
Net (payments) proceeds on stock plans
(0.5)
3.4 
Other, net
0.5 
1.2 
Net cash provided by (used in) financing activities
154.5 
(12.3)
Effect of exchange rates on cash and cash equivalents
(1.6)
(0.4)
Net cash flows
(5.1)
(15.0)
At beginning of period
48.3 
58.0 
At end of period
43.2 
43.0 
Reportable legal entities |
Parent
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
(112.7)
12.7 
Investing activities:
 
 
Capital expenditures
(1.3)
(0.8)
Proceeds from sales of property, plant, and equipment
 
Other, net
 
Net cash used in investing activities
(1.3)
(0.8)
Financing activities:
 
 
Repayments on term loan
(4.5)
(4.5)
Proceeds from revolving credit facilities
262.0 
191.0 
Repayments on revolving credit facilities
(113.9)
(268.5)
Proceeds from Issuance of Unsecured Debt
99.6 
Payment of dividends on common stock
(25.4)
(25.2)
Repurchases of common stock
(4.0)
(9.2)
Net (payments) proceeds on stock plans
(0.5)
3.4 
Other, net
0.9 
1.2 
Net cash provided by (used in) financing activities
114.6 
(12.2)
Net cash flows
0.6 
(0.3)
At beginning of period
0.3 
0.4 
At end of period
0.9 
0.1 
Reportable legal entities |
Guarantors
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
238.4 
84.8 
Investing activities:
 
 
Capital expenditures
(3.4)
(7.2)
Proceeds from sales of property, plant, and equipment
0.5 
0.5 
Payments to Acquire Businesses, Net of Cash Acquired
(131.3)
Other, net
(0.9)
Net cash used in investing activities
(134.2)
(7.6)
Financing activities:
 
 
Payment of Intercompany Dividends
(104.6)
(80.3)
Net cash provided by (used in) financing activities
(104.6)
(80.3)
Net cash flows
(0.4)
(3.1)
At beginning of period
7.1 
10.6 
At end of period
6.7 
7.5 
Reportable legal entities |
Non-Guarantors
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
71.5 
(1.7)
Investing activities:
 
 
Capital expenditures
(4.4)
(3.9)
Proceeds from sales of property, plant, and equipment
0.4 
 
Payments to Acquire Businesses, Net of Cash Acquired
(105.7)
 
Other, net
(0.2)
Net cash used in investing activities
(109.7)
(4.1)
Financing activities:
 
 
Proceeds from revolving credit facilities
125.5 
63.4 
Repayments on revolving credit facilities
(85.2)
(63.5)
Proceeds from Issuance of Unsecured Debt
 
Payment of Intercompany Dividends
(5.4)
(5.3)
Other, net
(0.4)
Net cash provided by (used in) financing activities
34.5 
(5.4)
Effect of exchange rates on cash and cash equivalents
(1.6)
(0.4)
Net cash flows
(5.3)
(11.6)
At beginning of period
40.9 
47.0 
At end of period
35.6 
35.4 
Eliminations
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
(110.0)
(85.6)
Financing activities:
 
 
Payment of Intercompany Dividends
110.0 
85.6 
Net cash provided by (used in) financing activities
$ 110.0 
$ 85.6 
Restructuring - Narrative (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Restructuring and Related Activities [Abstract]
 
Restructuring reserve, current
$ 2.4 
Restructuring - Schedule of restructuring charges by line and segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
$ 3.6 
$ 0.7 
$ 7.0 
$ 2.6 
Process Equipment Group [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
2.7 
0.5 
5.9 
0.8 
Batesville
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
0.8 
0.8 
1.2 
Corporate
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
0.1 
0.2 
0.3 
0.6 
Cost of Goods, Segment [Member] |
Process Equipment Group [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
0.8 
0.1 
2.8 
0.1 
Cost of Goods, Segment [Member] |
Batesville
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
0.1 
0.1 
1.2 
Cost of Goods, Segment [Member] |
Corporate
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
Operating Expense [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
2.7 
0.6 
4.1 
1.3 
Operating Expense [Member] |
Process Equipment Group [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
1.9 
0.4 
3.1 
0.7 
Operating Expense [Member] |
Batesville
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
0.7 
0.7 
Operating Expense [Member] |
Corporate
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
0.1 
0.2 
0.3 
0.6 
Cost of Goods, Total [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Restructuring and Related Cost, Incurred Cost
$ 0.9 
$ 0.1 
$ 2.9 
$ 1.3 
Business Acquisitions (Details)
3 Months Ended 6 Months Ended 0 Months Ended 0 Months Ended
Mar. 31, 2016
USD ($)
Mar. 31, 2015
USD ($)
Mar. 31, 2016
USD ($)
Mar. 31, 2015
USD ($)
Oct. 2, 2015
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
USD ($)
Oct. 2, 2015
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
EUR (€)
Oct. 2, 2015
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
USD ($)
Feb. 1, 2016
Red Valve Company, Inc. [Member] [Domain]
USD ($)
Feb. 1, 2016
Red Valve Company, Inc. [Member] [Domain]
USD ($)
Mar. 31, 2016
$700 revolving credit facility (excluding outstanding letters of credit)
USD ($)
Dec. 19, 2014
$700 revolving credit facility (excluding outstanding letters of credit)
USD ($)
Dec. 19, 2014
$180 term loan
USD ($)
Oct. 2, 2015
Technology [Member]
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
USD ($)
Oct. 2, 2015
Trade Names [Member]
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
USD ($)
Feb. 1, 2016
Trade Names [Member]
Red Valve Company, Inc. [Member] [Domain]
USD ($)
Oct. 2, 2015
Order or Production Backlog [Member]
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
USD ($)
Oct. 2, 2015
Customer Relationships [Member]
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
USD ($)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business acquisition and integration
$ 1,100,000 
$ (100,000)
$ 2,800,000 
$ 200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Gross
 
 
 
 
 
95,000,000 
 
131,900,000 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
 
 
 
 
 
 
282,600,000 
700.0 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
 
 
 
 
 
 
 
180.0 
 
 
 
 
 
Goodwill, Acquired During Period
 
 
 
 
36,000,000 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles
 
 
 
 
 
 
$ 58,000,000 
 
$ 0 
 
 
 
$ 9,000,000 
$ 5,000,000 
$ 0 
$ 3,000,000 
$ 41,000,000