HILLENBRAND, INC., 10-Q filed on 5/11/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Mar. 31, 2015
Apr. 27, 2015
Document and Entity Information
 
 
Entity Registrant Name
Hillenbrand, Inc. 
 
Entity Central Index Key
0001417398 
 
Document Type
10-Q 
 
Document Period End Date
Mar. 31, 2015 
 
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
 
62,929,118 
Document Fiscal Year Focus
2015 
 
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, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Income Statement [Abstract]
 
 
 
 
Net revenue
$ 404.6 1
$ 396.8 1
$ 806.1 
$ 781.7 
Cost of goods sold
256.0 
254.0 
519.1 
507.9 
Gross profit
148.6 
142.8 
287.0 
273.8 
Operating expenses
91.7 
99.9 
182.9 
193.9 
Operating profit
56.9 
42.9 
104.1 
79.9 
Interest expense
6.4 
5.6 
12.1 
11.9 
Other income (expense), net
(5.0)
9.7 
(5.0)
9.6 
Income before income taxes
45.5 
47.0 
87.0 
77.6 
Income tax expense
14.3 
13.7 
26.1 
22.7 
Consolidated net income
31.2 
33.3 
60.9 
54.9 
Less: Net income attributable to noncontrolling interests
0.5 
0.3 
0.7 
1.6 
Total reclassifications for the period, net of tax
$ 30.7 2
$ 33.0 2
$ 60.2 2
$ 53.3 2
Net income - per share of common stock:
 
 
 
 
Basic earnings per share
$ 0.49 2
$ 0.52 2
$ 0.95 2
$ 0.84 2
Diluted earnings per share
$ 0.48 
$ 0.51 
$ 0.94 
$ 0.83 
Weighted average shares outstanding (basic)
63.3 
63.3 
63.2 
63.2 
Weighted average shares outstanding (diluted)
63.9 
63.9 
63.8 
63.9 
Cash dividends declared per share
$ 0.2 
$ 0.1975 
$ 0.4 
$ 0.3950 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Consolidated net income
$ 31.2 
$ 33.3 
$ 60.9 
$ 54.9 
Changes in other comprehensive income (loss), net of tax
 
 
 
 
Currency translation adjustment
(36.5)
(56.6)
8.6 
Pension and postretirement (net of quarter-to-date tax of $- and $0.5 and year-to-date tax of $0.5 and $1.5)
1.0 
0.9 
1.8 
3.1 
Change in net unrealized gain (loss) on derivative instruments (net of quarter-to-date tax of $1.4 and $0.3 and year-to-date tax of $1.6 and $0.1)
(3.8)
(0.2)
(4.3)
0.3 
Total changes in other comprehensive income (loss), net of tax
(39.3)
0.7 
(59.1)
12.0 
Consolidated comprehensive income
(8.1)
34.0 
1.8 
66.9 
Less: Comprehensive income attributable to noncontrolling interests
0.5 
0.5 
0.6 
1.7 
Comprehensive income (loss)
$ (8.6)1
$ 33.5 1
$ 1.2 1
$ 65.2 1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Pension and postretirement, tax
$ 0 
$ 0.5 
$ 0.5 
$ 1.5 
Change in net unrealized gain (loss) on derivative instruments, tax
$ 1.4 
$ 0.3 
$ 1.6 
$ 0.1 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Sep. 30, 2014
Current Assets
 
 
Cash and cash equivalents
$ 43.0 
$ 58.0 
Trade receivables, net
172.3 
191.0 
Unbilled receivables from long-term manufacturing contracts
134.3 
149.3 
Inventories
174.9 
168.5 
Deferred income taxes
28.7 
30.5 
Prepaid expenses
21.4 
19.0 
Other current assets
17.8 
21.5 
Total current assets
592.4 
637.8 
Property, plant, and equipment, net
152.7 
159.5 
Intangible assets, net
464.8 
510.5 
Goodwill
535.8 
570.7 
Other assets
42.6 
40.0 
Total Assets
1,788.3 
1,918.5 
Current Liabilities
 
 
Trade accounts payable
118.0 
192.6 
Liabilities from long-term manufacturing contracts and advances
79.3 
76.1 
Current portion of long-term debt
9.0 
15.0 
Accrued compensation
51.1 
69.6 
Deferred income taxes
21.4 
20.7 
Other current liabilities
107.4 
117.1 
Total current liabilities
386.2 
491.1 
Long-term debt
561.8 
543.5 
Long-term portion of accrued pension and postretirement healthcare
185.1 
200.9 
Deferred income taxes
49.1 
55.4 
Other long-term liabilities
33.7 
33.8 
Total Liabilities
1,215.9 
1,324.7 
Commitments and contingencies
   
   
SHAREHOLDERS’ EQUITY
 
 
Common stock, no par value (63.6 and 63.5 shares issued, 62.9 and 62.9 shares outstanding)
Additional paid-in capital
346.1 
342.1 
Retained earnings
346.6 
311.7 
Treasury stock (0.7 and 0.6 shares)
(20.2)
(18.3)
Accumulated other comprehensive loss
(111.2)
(52.2)
Hillenbrand Shareholders’ Equity
561.3 
583.3 
Noncontrolling interests
11.1 
10.5 
Total Shareholders’ Equity
572.4 
593.8 
Total Liabilities and Equity
$ 1,788.3 
$ 1,918.5 
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2015
Sep. 30, 2014
Statement of Financial Position [Abstract]
 
 
Common stock, par value (in dollars per share)
   
   
Common stock, shares issued
63,600,000.0 
63,500,000.0 
Common stock, shares outstanding
62,900,000.0 
62,900,000.0 
Treasury stock, shares
700,000.0 
600,000.0 
Consolidated Statements of Cash Flow (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Operating Activities
 
 
Consolidated net income
$ 60.9 
$ 54.9 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
Depreciation and amortization
28.4 
29.0 
Deferred income taxes
4.2 
3.4 
Share-based compensation
6.3 
5.1 
Net (gain) loss on investments
1.4 
(7.9)
Trade accounts receivable and receivables on long-term manufacturing contracts
5.6 
36.2 
Inventories
(16.8)
(4.3)
Other current assets
1.2 
(11.7)
Trade accounts payable
(60.7)
(8.3)
Accrued expenses and other current liabilities
(19.2)
1.4 
Income taxes payable
3.6 
(14.6)
Defined benefit plan and postretirement funding
(5.2)
(8.3)
Defined benefit plan and postretirement expense
7.3 
7.2 
Other, net
(6.8)
0.1 
Net cash provided by operating activities
10.2 
82.2 
Investing Activities
 
 
Capital expenditures
(11.9)
(11.4)
Proceeds from sales of property, plant, and equipment
0.5 
0.7 
Proceeds from investments
5.7 
Other, net
(1.1)
0.9 
Net cash used in investing activities
(12.5)
(4.1)
Financing Activities
 
 
Repayments on term loan
(4.5)
(5.0)
Proceeds from revolving credit facilities
254.4 
182.6 
Repayments on revolving credit facilities
(332.0)
(218.6)
Proceeds from unsecured Series A Notes, net of financing costs
99.6 
Proceeds from other borrowings
1.0 
Payments of dividends on common stock
(25.2)
(24.8)
Repurchases of common stock
(9.2)
(16.5)
Net proceeds on stock plans
3.4 
12.7 
Other, net
1.2 
0.1 
Net cash used in financing activities
(12.3)
(68.5)
Effect of exchange rates on cash and cash equivalents
(0.4)
(1.3)
Net cash flows
(15.0)
8.3 
Cash and cash equivalents:
 
 
At beginning of period
58.0 
42.7 
At end of period
$ 43.0 
$ 51.0 
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 pursue profitable growth and meaningful dividends for our shareholders by leveraging our leading brands and robust cash generation capabilities, as well as our Hillenbrand Business System (HBS), which we utilize to drive results across the enterprise by deploying management practices including Lean, Talent Development, and Strategy Management. Hillenbrand is composed of two segments:  the Process Equipment Group and Batesville®.  The Process Equipment Group has multiple market-leading brands of process and material handling equipment and systems serving a wide variety of industries across the globe.  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 a number of 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.
 
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, 2014, as filed with the SEC.  The September 30, 2014 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
Summary of Significant Accounting Policies
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 2014.
 
Recently Issued Accounting Standard
 
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 to in exchange for those goods or services. ASU 2014-09 will be effective for our fiscal year beginning October 1, 2017, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption, with early adoption not permitted. We are currently evaluating the impact that ASU 2014-09 will have 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 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. ASU 2015-03 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 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 will help 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.
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
 
 
March 31,
2015
 
September 30,
2014
Trade accounts receivable reserves
$
20.2

 
$
19.2

 
 
 
 
Accumulated depreciation on property, plant, and equipment
$
289.5

 
$
278.3

 
 
 
 
Accumulated amortization on intangible assets
$
140.4

 
$
127.4

 
 
 
 
Inventories:
 

 
 

Raw materials and components
$
50.0

 
$
53.2

Work in process
70.2

 
73.3

Finished goods
54.7

 
42.0

Total inventories
$
174.9

 
$
168.5

Financing Agreements
Financing Agreements
Financing Agreements
 
March 31,
2015
 
September 30,
2014
$700 revolving credit facility, maturing December 19, 2019
$
146.3

 
$
229.6

$200 term loan, final maturity December 19, 2019
175.5

 
180.0

$150 senior unsecured notes, due July 15, 2020, net of discount
149.0

 
148.9

$100 unsecured Series A Notes, due December 15, 2024
100.0

 

Total debt
570.8

 
558.5

Less: current portion
9.0

 
15.0

Total long-term debt
$
561.8

 
$
543.5


 
On February 18, 2015, we entered into an Amendment Agreement (the “Amendment Agreement”), amending and restating our €150.0 Syndicated Letter of Guarantee Facility (as amended, “LG Facility ”), dated as of June 3, 2013, under which unsecured letters of credit, bank guarantees, or other surety bonds may be issued.  The Amendment Agreement extends the maturity date of the LG Facility until at least December 19, 2019, and, among other things, amends a financial covenant contained in the LG Facility to provide the Company and its subsidiaries greater flexibility to consummate acquisitions.  The financial covenant amendment allows for an increase in the Company’s permitted maximum leverage ratio during the three quarters subsequent to an acquisition valued in excess of $75.0. We are allowed this increase up to two times during the term of the LG Facility (each, a “Leverage Holiday”).

On December 15, 2014, we issued $100.0 in 4.60% Series A unsecured notes (“Series A Notes”) pursuant to the Private Shelf Agreement, dated as of December 6, 2012 (as amended, the “Shelf Agreement”), among the Company, Prudential Investment Management, Inc. (“Prudential”) and each Prudential Affiliate (as defined therein) that becomes a purchaser thereunder. The Series A Notes are unsecured, mature on December 15, 2024, and bear interest at 4.60% payable semi-annually in arrears. The Company may at any time upon providing notice, prepay all or part of the Series A Notes at 100% of the principal amount prepaid plus a Make-Whole Amount (as defined therein). Consistent with our revolving credit facility, term loan, senior unsecured notes, and LG facility, the Series A Notes are fully and unconditionally guaranteed by certain of the Company’s domestic subsidiaries (the “Guarantors”). Deferred financing costs of $0.5 related to the Series A Notes are being amortized to interest expense over the term of the Series A Notes.

On December 15, 2014, the Company and the Guarantors entered into an amendment (the “First Amendment”) to the Shelf Agreement and on December 19, 2014, entered into a separate amendment (the “Second Amendment” and, collectively with the First Amendment, the “Prudential Amendments”) to the Shelf Agreement. The Prudential Amendments, among other things, amend a financial covenant contained in the Shelf Agreement to provide for Leverage Holidays similar to those discussed above regarding the LG Facility. If a Leverage Holiday is elected, in addition to the interest accruing on the Series A Notes, the Company must pay to each holder of a Series A Note a fee equivalent to 0.75% per annum.

On December 19, 2014, the Company entered into a Second Amendment (the “JPM Amendment”) to the Amended and Restated Credit Agreement, dated as of November 19, 2012, which governs our revolving credit facility and term loan (the “Facility”), by and among the Company and certain of its affiliates, the lenders party thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent. The JPM Amendment provides for revolving loans of up to $700 and a term loan in the amount of $180.0, extends the maturity date of the Facility to December 19, 2019, and, among other amendments, amends the Facility to provide for Leverage Holidays similar to those discussed above regarding the LG Facility. New deferred financing costs related to the JPM Amendment were $1.7, which along with existing costs of $1.8, are being amortized to interest expense over the term of the Facility.

With respect to the Facility, as of March 31, 2015, we had $15.9 in outstanding letters of credit issued and $537.8 of maximum borrowing capacity, of which $402.9 of borrowing capacity is immediately available based on our leverage covenant at March 31, 2015, with additional amounts available in the event of a qualifying acquisition.  The weighted-average interest rates on borrowings under the Facility were 1.30% and 1.29% for the three and six months ended March 31, 2015, and 1.37% and 1.36% for the same periods in the prior year.  The Facility carries a leverage-based facility fee, assessed on the entire facility amount. The weighted average facility fee was 0.23% and 0.24% for the three months and six months ended March 31, 2015.
 
The weighted average interest rates on the term loan were 1.55% and 1.54% for the three and six months ended March 31, 2015, and 1.66% and 1.67% for the same periods in the prior year.
 
In the normal course of business, the Process Equipment Group provides customers with bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations.  This form of trade finance is customary in the industry and, as a result, we maintain adequate capacity to provide the guarantees, under the LG Facility and other arrangements.  As of March 31, 2015, we had guarantee arrangements with capacity totaling $210.0 of which $153.3 was utilized for this purpose. 
 
The availability of borrowings under the Facility and the LG Facility 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 such terms defined in the relevant agreements) of 3.5 to 1.0 and a minimum ratio of EBITDA (as defined in the agreements) to interest expense of 3.5 to 1.0. As of March 31, 2015, we were in compliance with all covenants.
 
We had restricted cash of $0.7 and $0.4 at March 31, 2015 and September 30, 2014.
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,
 
2015
 
2014
 
2015
 
2014
Service costs
$
1.1

 
$
1.0

 
$
0.5

 
$
0.4

Interest costs
3.6

 
3.6

 
0.6

 
1.0

Expected return on plan assets
(3.7
)
 
(3.5
)
 
(0.2
)
 
(0.2
)
Amortization of unrecognized prior service costs, net
0.3

 
0.2

 

 

Amortization of net loss
1.4

 
1.0

 

 

Net pension costs
$
2.7

 
$
2.3

 
$
0.9

 
$
1.2

 
 
 
 
 
 
 
 
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Six Months Ended March 31,
 
Six Months Ended March 31,
 
2015
 
2014
 
2015
 
2014
Service costs
$
2.2

 
$
2.0

 
$
0.9

 
$
0.8

Interest costs
7.2

 
7.3

 
1.4

 
2.1

Expected return on plan assets
(7.2
)
 
(7.0
)
 
(0.5
)
 
(0.5
)
Amortization of unrecognized prior service costs, net
0.5

 
0.4

 

 

Amortization of net loss
2.6

 
1.9

 

 

Net pension costs
$
5.3

 
$
4.6

 
$
1.8

 
$
2.4

 
 Postretirement Healthcare Plans — Net postretirement healthcare costs were $0.1 and $0.1 for the three months ended March 31, 2015 and 2014, and $0.2 and $0.2 for the six months ended March 31, 2015 and 2014.

Defined Contribution Plans — Expenses related to our defined contribution plans were $2.4 and $2.2 for the three months ended March 31, 2015 and 2014
Income Taxes
Income Taxes
Income Taxes
 
The effective tax rates for the three months ended March 31, 2015 and 2014 were 31.4% and 29.1%. The effective tax rates for the six months ended March 31, 2015 and 2014 were 30.0% and 29.3%. The increase in the effective tax rate during the three months and six months ended March 31, 2015 was primarily due to the less favorable geographic mix of pre-tax income in 2015, net of a reduction in the reserve for uncertain tax positions in 2015.
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, 2015 and 2014, potential dilutive effects, representing approximately 1,400,000 and 1,800,000 shares were excluded from the computation of diluted earnings per share as the related performance criteria were not yet met, although we expect to meet various levels of criteria in the future.
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015
 
2014
 
2015
 
2014
Net income(1)
$
30.7

 
$
33.0

 
$
60.2

 
$
53.3

Weighted average shares outstanding (basic - in millions)
63.3

 
63.3

 
63.2

 
63.2

Effect of dilutive stock options and other unvested equity awards (in millions)
0.6

 
0.6

 
0.6

 
0.7

Weighted average shares outstanding (diluted - in millions)
63.9

 
63.9

 
63.8

 
63.9

 
 
 
 
 
 
 
 
Basic earnings per share
$
0.49

 
$
0.52

 
$
0.95

 
$
0.84

Diluted earnings per share
$
0.48

 
$
0.51

 
$
0.94

 
$
0.83

 
 
 
 
 
 
 
 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
0.7

 
0.4

 
0.7

 
0.4

 
(1) Net income attributable to Hillenbrand
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity
 
During the six months ended March 31, 2015, we paid approximately $25.2 of cash dividends.  We also repurchased approximately 305,000 shares of our common stock during the six months ended March 31, 2015, for a total cost of approximately $9.2. In connection with our share based compensation plans discussed further in Note 10, we also issued approximately 317,000 shares of common stock, of which approximately 245,000 shares were issued using 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, 2013
$
(33.0
)
 
$
31.4

 
$
0.2

 
$
(1.4
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
2.4

 
8.5

 
1.2

 
12.1

 
$
0.1

 
$
12.2

Tax expense
(0.7
)
 

 
(0.3
)
 
(1.0
)
 

 
(1.0
)
After tax amount
1.7

 
8.5

 
0.9

 
11.1

 
0.1

 
11.2

Amounts reclassified from accumulated other comprehensive income(1)
1.4

 

 
(0.6
)
 
0.8

 

 
0.8

Net current period other comprehensive income (loss)
3.1

 
8.5

 
0.3

 
11.9

 
$
0.1

 
$
12.0

Balance at March 31, 2014
$
(29.9
)
 
$
39.9

 
$
0.5

 
$
10.5

 
 

 
 

 (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, 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.
 
Reclassifications out of Accumulated Other Comprehensive Income include: 
 
Three Months Ended March 31, 2014
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.5
)
 
$
(0.5
)
Cost of goods sold
0.7

 
0.2

 
(0.2
)
 
0.7

Operating expenses
0.2

 

 

 
0.2

Other income (expense), net

 

 
(0.4
)
 
(0.4
)
Total before tax
$
0.9

 
$
0.2

 
$
(1.1
)
 
$

Tax expense
 

 
 

 
 

 

Total reclassifications for the period, net of tax
 

 
 

 
 

 
$

 
Six Months Ended March 31, 2014
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.4
)
 
$
(0.4
)
Cost of goods sold
1.3

 
0.3

 
(0.3
)
 
1.3

Operating expenses
0.5

 
0.1

 

 
0.6

Other income (expense), net

 

 
(0.3
)
 
(0.3
)
Total before tax
$
1.8

 
$
0.4

 
$
(1.0
)
 
$
1.2

Tax expense
 
 
 
 
 
 
(0.4
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
0.8

 


 
Three Months Ended March 31, 2015
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
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
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
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



(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).
Share-Based Compensation
Share-Based Compensation
Share-Based Compensation
 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015
 
2014
 
2015
 
2014
Share-based compensation costs
$
4.1

 
$
3.4

 
$
6.3

 
$
5.1

Less impact of income tax benefit
1.5

 
1.3

 
2.3

 
1.9

Share-based compensation costs, net of tax
$
2.6

 
$
2.1

 
$
4.0

 
$
3.2


 
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, 2015, we made the following grants:
 
 
Number of
Units
Stock options
360,903

Time-based stock awards
49,219

Performance-based stock awards (maximum that can be earned)
474,599


 
Stock options granted during fiscal 2015 had a weighted-average exercise price of $32.66 and a weighted-average grant date fair value of $8.38.  Our time-based stock awards and performance-based stock awards granted during fiscal 2015 had weighted-average grant date fair values of $31.61 and $33.44.  Included in the performance-based stock awards granted during 2015 are 150,464 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,
 
2015
 
2014
 
2015
 
2014
Equity in net income (loss) of affiliates
$
(1.7
)
 
$
2.9

 
$
(1.4
)
 
$
2.7

Foreign currency exchange loss, net
(3.3
)
 
(0.4
)
 
(4.1
)
 
(0.7
)
Gain on exercise of warrants

 
5.2

 

 
5.2

Service agreement cancellation

 
2.5

 

 
2.5

Other, net

 
(0.5
)
 
0.5

 
(0.1
)
Other income and (expense), net
$
(5.0
)
 
$
9.7

 
$
(5.0
)
 
$
9.6


 
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
 
General — Like most companies, from time to time we are involved 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 be incurred.  Legal fees associated with claims and lawsuits are generally expensed as incurred.
 
Claims other than employment and related matters have deductibles and self-insured retentions ranging from $0.5 to $1.0 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,
 
Fair Value at March 31, 2015
Using Inputs Considered as:
 
2015
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
43.0

 
$
43.0

 
$

 
$

Investments in rabbi trust
4.8

 
4.8

 

 

Derivative instruments
3.3

 

 
3.3

 

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.0

 
159.9

 

 

Revolving credit facility
146.3

 

 
146.3

 

Term loan
175.5

 

 
175.5

 

  $100 Series A Notes
100.0

 

 
103.9

 

Derivative instruments
12.1

 

 
12.1

 


 
The fair values of the revolving credit facility and term loan approximated carrying value at March 31, 2015.  The fair values of the revolving credit facility, term loan, and Series A Notes are estimated based on internally developed models, using current market interest rate data for similar issues as there is no active market for our revolving credit facility, term loan, or Series A Notes.

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 these derivatives was $118.9 at March 31, 2015.
Segment and Geographical Information
Segment and Geographical Information
Segment and Geographical Information
 
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2015
 
2014
 
2015
 
2014
Net revenue
 

 
 

 
 

 
 

Process Equipment Group
$
240.8

 
$
239.5

 
$
497.2

 
$
481.7

Batesville
163.8

 
157.3

 
308.9

 
300.0

Total
$
404.6

 
$
396.8

 
$
806.1

 
$
781.7

 
 
 
 
 
 
 
 
Adjusted EBITDA
 

 
 

 
 

 
 

Process Equipment Group
$
34.6

 
$
26.0

 
$
72.7

 
$
52.7

Batesville
44.0

 
44.9

 
76.6

 
79.4

Corporate
(13.1
)
 
(1.7
)
 
(20.4
)
 
(9.7
)
 
 
 
 
 
 
 
 
Net revenue (1)
 

 
 

 
 

 
 

United States
$
236.2

 
$
215.9

 
$
452.8

 
$
418.3

International
168.4

 
180.9

 
353.3

 
363.4

Total
$
404.6

 
$
396.8

 
$
806.1

 
$
781.7

 
(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.
 
 
March 31,
2015
 
September 30,
2014
Total assets assigned
 

 
 

Process Equipment Group
$
1,500.2

 
$
1,632.8

Batesville
225.4

 
237.8

Corporate
62.7

 
47.9

Total
$
1,788.3

 
$
1,918.5

 
 
 
 
Tangible long-lived assets, net
 

 
 

United States
$
94.5

 
$
93.7

International
58.2

 
65.8

Total
$
152.7

 
$
159.5



The following schedule reconciles segment adjusted EBITDA to consolidated net income.
 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015
 
2014
 
2015
 
2014
Adjusted EBITDA:
 

 
 

 
 

 
 

Process Equipment Group
$
34.6

 
$
26.0

 
$
72.7

 
$
52.7

Batesville
44.0

 
44.9

 
76.6

 
79.4

Corporate
(13.1
)
 
(1.7
)
 
(20.4
)
 
(9.7
)
Less:
 

 
 

 
 

 
 

Interest income
(0.4
)
 
(0.1
)
 
(0.7
)
 
(0.3
)
Interest expense
6.4

 
5.6

 
12.1

 
11.9

Income tax expense
14.3

 
13.7

 
26.1

 
22.7

Depreciation and amortization
13.4

 
14.7

 
28.4

 
29.0

Business acquisition and integration
(0.1
)
 
1.1

 
0.2

 
3.0

Restructuring
0.7

 
0.9

 
1.4

 
1.2

Litigation

 

 
0.5

 

Consolidated net income
$
31.2

 
$
33.3

 
$
60.9

 
$
54.9

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 our revolving credit facility, term loan, 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, 2015
 
Three Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
235.7

 
$
220.0

 
$
(51.1
)
 
$
404.6

 
$

 
$
212.4

 
$
227.4

 
$
(43.0
)
 
$
396.8

Cost of goods sold

 
119.2

 
162.2

 
(25.4
)
 
256.0

 

 
104.8

 
165.6

 
(16.4
)
 
254.0

Gross profit

 
116.5

 
57.8

 
(25.7
)
 
148.6

 

 
107.6

 
61.8

 
(26.6
)
 
142.8

Operating expenses
10.7

 
63.8

 
42.9

 
(25.7
)
 
91.7

 
11.8

 
63.3

 
51.4

 
(26.6
)
 
99.9

Operating profit
(10.7
)
 
52.7

 
14.9

 

 
56.9

 
(11.8
)
 
44.3

 
10.4

 

 
42.9

Interest expense
5.2

 
0.4

 
0.8

 

 
6.4

 
4.8

 

 
0.8

 

 
5.6

Other income (expense), net
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
 
0.2

 
10.1

 
(0.6
)
 

 
9.7

Equity in net income (loss) of subsidiaries
40.9

 
3.0

 

 
(43.9
)
 

 
40.9

 
3.0

 

 
(43.9
)
 

Income (loss) before income taxes
23.3

 
54.7

 
11.4

 
(43.9
)
 
45.5

 
24.5

 
57.4

 
9.0

 
(43.9
)
 
47.0

Income tax expense (benefit)
(7.4
)
 
19.2

 
2.5

 

 
14.3

 
(8.5
)
 
19.9

 
2.3

 

 
13.7

Consolidated net income
30.7

 
35.5

 
8.9

 
(43.9
)
 
31.2

 
33.0

 
37.5

 
6.7

 
(43.9
)
 
33.3

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.5

 

 
0.5

 

 

 
0.3

 

 
0.3

Net income (1)
$
30.7

 
$
35.5

 
$
8.4

 
$
(43.9
)
 
$
30.7

 
$
33.0

 
$
37.5

 
$
6.4

 
$
(43.9
)
 
$
33.0

Consolidated comprehensive income
$
(8.6
)
 
$
36.4

 
$
(32.7
)
 
$
(3.2
)
 
$
(8.1
)
 
$
33.5

 
$
38.2

 
$
6.7

 
$
(44.4
)
 
$
34.0

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.5

 

 
0.5

 

 

 
0.5

 

 
0.5

Comprehensive income (2)
$
(8.6
)
 
$
36.4

 
$
(33.2
)
 
$
(3.2
)
 
$
(8.6
)
 
$
33.5

 
$
38.2

 
$
6.2

 
$
(44.4
)
 
$
33.5

 
Six Months Ended March 31, 2015
 
Six Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
452.4

 
$
453.5

 
$
(99.8
)
 
$
806.1

 
$

 
$
412.7

 
$
452.4

 
$
(83.4
)
 
$
781.7

Cost of goods sold

 
233.5

 
335.0

 
(49.4
)
 
519.1

 

 
207.3

 
332.2

 
(31.6
)
 
507.9

Gross profit

 
218.9

 
118.5

 
(50.4
)
 
287.0

 

 
205.4

 
120.2

 
(51.8
)
 
273.8

Operating expenses
18.8

 
126.7

 
87.8

 
(50.4
)
 
182.9

 
20.8

 
125.2

 
99.7

 
(51.8
)
 
193.9

Operating profit
(18.8
)
 
92.2

 
30.7

 

 
104.1

 
(20.8
)
 
80.2

 
20.5

 

 
79.9

Interest expense
10.1

 
0.4

 
1.6

 

 
12.1

 
9.7

 
0.1

 
2.1

 

 
11.9

Other income (expense), net
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
 
0.1

 
9.4

 
0.1

 

 
9.6

Equity in net income (loss) of subsidiaries
75.0

 
5.2

 

 
(80.2
)
 

 
69.5

 
4.9

 

 
(74.4
)
 

Income (loss) before income taxes
44.4

 
96.4

 
26.4

 
(80.2
)
 
87.0

 
39.1

 
94.4

 
18.5

 
(74.4
)
 
77.6

Income tax expense (benefit)
(15.8
)
 
34.1

 
7.8

 

 
26.1

 
(14.2
)
 
33.1

 
3.8

 

 
22.7

Consolidated net income
60.2

 
62.3

 
18.6

 
(80.2
)
 
60.9

 
53.3

 
61.3

 
14.7

 
(74.4
)
 
54.9

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.7

 

 
0.7

 

 

 
1.6

 

 
1.6

Net income (1)
$
60.2

 
$
62.3

 
$
17.9

 
$
(80.2
)
 
$
60.2

 
$
53.3

 
$
61.3

 
$
13.1

 
$
(74.4
)
 
$
53.3

Consolidated comprehensive income
$
1.2

 
$
64.0

 
$
(30.4
)
 
$
(33.0
)
 
$
1.8

 
$
65.2

 
$
62.7

 
$
25.3

 
$
(86.3
)
 
$
66.9

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.6

 

 
0.6

 

 

 
1.7

 

 
1.7

Comprehensive income (2)
$
1.2

 
$
64.0

 
$
(31.0
)
 
$
(33.0
)
 
$
1.2

 
$
65.2

 
$
62.7

 
$
23.6

 
$
(86.3
)
 
$
65.2



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















Condensed Consolidating Balance Sheets
 
March 31, 2015
 
September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and equivalents
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

 
$
0.4

 
$
10.6

 
$
47.0

 
$

 
$
58.0

Trade receivables, net

 
102.6

 
69.7

 

 
172.3

 

 
113.2

 
77.8

 

 
191.0

Unbilled receivables from long-term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
manufacturing contracts

 
6.5

 
127.8

 

 
134.3

 

 
4.0

 
145.3

 

 
149.3

Inventories

 
80.9

 
97.1

 
(3.1
)
 
174.9

 

 
69.7

 
101.8

 
(3.0
)
 
168.5

Deferred income taxes
8.5

 
17.2

 
3.0

 

 
28.7

 
10.6

 
17.3

 
2.6

 

 
30.5

Prepaid expense
3.0

 
8.2

 
10.2

 

 
21.4

 
2.5

 
4.9

 
11.6

 

 
19.0

Intercompany receivables
283.8

 
1,129.0

 
36.6

 
(1,449.4
)
 

 
291.0

 
1,189.9

 
5.3

 
(1,486.2
)
 

Other current assets
0.5

 
1.7

 
14.9

 
0.7

 
17.8

 
1.2

 
2.1

 
17.8

 
0.4

 
21.5

Total current assets
295.9

 
1,353.6

 
394.7

 
(1,451.8
)
 
592.4

 
305.7

 
1,411.7

 
409.2

 
(1,488.8
)
 
637.8

Property, plant and equipment, net
6.7

 
65.6

 
80.4

 

 
152.7

 
6.7

 
65.4

 
87.4

 

 
159.5

Intangible assets, net
2.3

 
180.4

 
282.1

 

 
464.8

 
2.5

 
186.1

 
321.9

 

 
510.5

Goodwill

 
211.7

 
324.1

 

 
535.8

 

 
211.7

 
359.0

 

 
570.7

Investment in consolidated subsidiaries
1,983.8

 
645.9

 

 
(2,629.7
)
 

 
2,000.2

 
644.0

 

 
(2,644.2
)
 

Other assets
33.9

 
25.9

 
3.8

 
(21.0
)
 
42.6

 
25.8

 
9.9

 
4.3

 

 
40.0

Total Assets
$
2,322.6

 
$
2,483.1

 
$
1,085.1

 
$
(4,102.5
)
 
$
1,788.3

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.4

 
$
25.9

 
$
91.4

 
$
0.3

 
$
118.0

 
$
3.0

 
$
32.8

 
$
156.8

 
$

 
$
192.6

Liabilities from long-term manufacturing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
contracts and advances

 
22.8

 
56.5

 

 
79.3

 

 
20.4

 
55.7

 

 
76.1

Current portion of long-term debt
9.0

 

 

 

 
9.0

 
15.0

 

 

 

 
15.0

Accrued compensation
22.6

 
20.5

 
8.0

 

 
51.1

 
5.0

 
55.3

 
9.3

 

 
69.6

Deferred income taxes

 

 
21.4

 

 
21.4

 

 
1.6

 
19.1

 

 
20.7

Intercompany payables
1,174.9

 
277.6

 

 
(1,452.5
)
 

 
1,202.7

 
286.5

 

 
(1,489.2
)
 

Other current liabilities
3.2

 
48.9

 
74.7

 
(19.4
)
 
107.4

 
4.1

 
61.6

 
51.0

 
0.4

 
117.1

Total current liabilities
1,210.1

 
395.7

 
252.0

 
(1,471.6
)
 
386.2

 
1,229.8

 
458.2

 
291.9

 
(1,488.8
)
 
491.1

Long-term debt
550.0

 

 
11.8

 

 
561.8

 
525.9

 

 
17.6

 

 
543.5

Accrued pension and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
postretirement healthcare
1.1

 
95.7

 
88.3

 

 
185.1

 
1.0

 
94.2

 
105.7

 

 
200.9

Deferred income taxes

 
19.9

 
29.5

 
(0.3
)
 
49.1

 
0.8

 
15.1

 
39.5

 

 
55.4

Other long-term liabilities
0.1

 
23.4

 
11.1

 
(0.9
)
 
33.7

 
0.1

 
27.7

 
6.0

 

 
33.8

Total Liabilities
1,761.3

 
534.7

 
392.7

 
(1,472.8
)
 
1,215.9

 
1,757.6

 
595.2

 
460.7

 
(1,488.8
)
 
1,324.7

Total Hillenbrand Shareholders’ Equity
561.3

 
1,948.4

 
681.3

 
(2,629.7
)
 
561.3

 
583.3

 
1,933.6

 
710.6

 
(2,644.2
)
 
583.3

Noncontrolling interests

 

 
11.1

 

 
11.1

 

 

 
10.5

 

 
10.5

Total Equity
561.3

 
1,948.4

 
692.4

 
(2,629.7
)
 
572.4

 
583.3

 
1,933.6

 
721.1

 
(2,644.2
)
 
593.8

Total Liabilities and Equity
$
2,322.6

 
$
2,483.1

 
$
1,085.1

 
$
(4,102.5
)
 
$
1,788.3

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5




Condensed Consolidating Statements of Cash Flows
 
 
Six Months Ended March 31, 2015
 
Six Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operating activities
$
12.7

 
$
84.8

 
$
(1.7
)
 
$
(85.6
)
 
$
10.2

 
$
13.0

 
$
37.2

 
$
79.3

 
$
(47.3
)
 
$
82.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(0.8
)
 
(7.2
)
 
(3.9
)
 

 
(11.9
)
 
(0.8
)
 
(6.4
)
 
(4.2
)
 

 
(11.4
)
Proceeds from sales of property, plant,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and equipment

 
0.5

 

 

 
0.5

 

 
0.7

 

 

 
0.7

Proceeds from warrant exercise

 

 

 

 

 

 
5.7

 

 

 
5.7

Other, net

 
(0.9
)
 
(0.2
)
 

 
(1.1
)
 

 

 
0.9

 

 
0.9

Net cash used in investing activities
(0.8
)
 
(7.6
)
 
(4.1
)
 

 
(12.5
)
 
(0.8
)
 

 
(3.3
)
 

 
(4.1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(4.5
)
 

 

 

 
(4.5
)
 
(5.0
)
 

 

 

 
(5.0
)
Proceeds from revolving credit facilities
191.0

 

 
63.4

 

 
254.4

 
158.0

 

 
24.6

 

 
182.6

Repayments on revolving credit facilities
(268.5
)
 

 
(63.5
)
 

 
(332.0
)
 
(137.5
)
 

 
(81.1
)
 

 
(218.6
)
Proceeds from unsecured Series A Notes,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
net of financing costs
99.6

 

 

 

 
99.6

 

 

 

 

 

Proceeds from other borrowings

 

 

 

 

 

 

 
1.0

 

 
1.0

Payment of dividends on common stock
(25.2
)
 

 

 

 
(25.2
)
 
(24.8
)
 

 

 

 
(24.8
)
Payment of dividends - intercompany

 
(80.3
)
 
(5.3
)
 
85.6

 

 

 
(38.4
)
 
(8.9
)
 
47.3

 

Repurchases of common stock
(9.2
)
 

 

 

 
(9.2
)
 
(16.5
)
 

 

 

 
(16.5
)
Net proceeds on stock plans
3.4

 

 

 

 
3.4

 
12.7

 

 

 

 
12.7

Other, net
1.2

 

 

 

 
1.2

 
0.9

 

 
(0.8
)
 

 
0.1

Net cash (used in) provided by
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
financing activities
(12.2
)
 
(80.3
)
 
(5.4
)
 
85.6

 
(12.3
)
 
(12.2
)
 
(38.4
)
 
(65.2
)
 
47.3

 
(68.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
cash equivalents

 

 
(0.4
)
 

 
(0.4
)
 

 

 
(1.3
)
 

 
(1.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(0.3
)
 
(3.1
)
 
(11.6
)
 

 
(15.0
)
 

 
(1.2
)
 
9.5

 

 
8.3

Cash and equivalents at beginning of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
period
0.4

 
10.6

 
47.0

 

 
58.0

 
0.6

 
8.7

 
33.4

 

 
42.7

Cash and equivalents at end of period
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

 
$
0.6

 
$
7.5

 
$
42.9

 
$

 
$
51.0

Restructuring
Restructuring
Restructuring
 
During the three months ended March 31, 2015, Hillenbrand incurred $0.7 of restructuring costs ($0.5 expense at the Process Equipment Group, with $0.4 classified as operating expenses and $0.1 classified as cost of goods sold, and $0.2 expense at Corporate classified as operating expenses).  During the six months ended March 31, 2015, Hillenbrand incurred $2.6 of restructuring costs ($0.8 expense at the Process Equipment Group, with $0.7 classified as operating expenses and $0.1 classified as cost of goods sold, $1.2 expense at Batesville classified as cost of goods sold, and $0.6 expense at Corporate classified as operating expenses).  These costs related primarily to severance costs at the Process Equipment Group as we continue to integrate and streamline the business operations within the segment, disposal of equipment at Batesville, and corporate compensation costs related to changes in the Company’s executive management team. At March 31, 2015, $1.4 of restructuring costs were accrued and will be paid in 2015.
Summary of Significant Accounting Policies (Policies)
Recently Issued Accounting Standard
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 to in exchange for those goods or services. ASU 2014-09 will be effective for our fiscal year beginning October 1, 2017, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption, with early adoption not permitted. We are currently evaluating the impact that ASU 2014-09 will have 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 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. ASU 2015-03 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 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 will help 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.
Supplemental Balance Sheet Information (Tables)
Schedule of supplemental balance sheet information
 
March 31,
2015
 
September 30,
2014
Trade accounts receivable reserves
$
20.2

 
$
19.2

 
 
 
 
Accumulated depreciation on property, plant, and equipment
$
289.5

 
$
278.3

 
 
 
 
Accumulated amortization on intangible assets
$
140.4

 
$
127.4

 
 
 
 
Inventories:
 

 
 

Raw materials and components
$
50.0

 
$
53.2

Work in process
70.2

 
73.3

Finished goods
54.7

 
42.0

Total inventories
$
174.9

 
$
168.5

Financing Agreements (Tables)
Schedule of borrowings under financing agreements
 
March 31,
2015
 
September 30,
2014
$700 revolving credit facility, maturing December 19, 2019
$
146.3

 
$
229.6

$200 term loan, final maturity December 19, 2019
175.5

 
180.0

$150 senior unsecured notes, due July 15, 2020, net of discount
149.0

 
148.9

$100 unsecured Series A Notes, due December 15, 2024
100.0

 

Total debt
570.8

 
558.5

Less: current portion
9.0

 
15.0

Total long-term debt
$
561.8

 
$
543.5

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,
 
2015
 
2014
 
2015
 
2014
Service costs
$
1.1

 
$
1.0

 
$
0.5

 
$
0.4

Interest costs
3.6

 
3.6

 
0.6

 
1.0

Expected return on plan assets
(3.7
)
 
(3.5
)
 
(0.2
)
 
(0.2
)
Amortization of unrecognized prior service costs, net
0.3

 
0.2

 

 

Amortization of net loss
1.4

 
1.0

 

 

Net pension costs
$
2.7

 
$
2.3

 
$
0.9

 
$
1.2

 
 
 
 
 
 
 
 
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Six Months Ended March 31,
 
Six Months Ended March 31,
 
2015
 
2014
 
2015
 
2014
Service costs
$
2.2

 
$
2.0

 
$
0.9

 
$
0.8

Interest costs
7.2

 
7.3

 
1.4

 
2.1

Expected return on plan assets
(7.2
)
 
(7.0
)
 
(0.5
)
 
(0.5
)
Amortization of unrecognized prior service costs, net
0.5

 
0.4

 

 

Amortization of net loss
2.6

 
1.9

 

 

Net pension costs
$
5.3

 
$
4.6

 
$
1.8

 
$
2.4

 
Earnings Per Share (Tables)
Schedule of computation of basic and diluted earnings per share
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015
 
2014
 
2015
 
2014
Net income(1)
$
30.7

 
$
33.0

 
$
60.2

 
$
53.3

Weighted average shares outstanding (basic - in millions)
63.3

 
63.3

 
63.2

 
63.2

Effect of dilutive stock options and other unvested equity awards (in millions)
0.6

 
0.6

 
0.6

 
0.7

Weighted average shares outstanding (diluted - in millions)
63.9

 
63.9

 
63.8

 
63.9

 
 
 
 
 
 
 
 
Basic earnings per share
$
0.49

 
$
0.52

 
$
0.95

 
$
0.84

Diluted earnings per share
$
0.48

 
$
0.51

 
$
0.94

 
$
0.83

 
 
 
 
 
 
 
 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
0.7

 
0.4

 
0.7

 
0.4

 
(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, 2013
$
(33.0
)
 
$
31.4

 
$
0.2

 
$
(1.4
)
 
 

 
 

Other comprehensive income before reclassifications
 

 
 

 
 

 
 

 
 

 
 

Before tax amount
2.4

 
8.5

 
1.2

 
12.1

 
$
0.1

 
$
12.2

Tax expense
(0.7
)
 

 
(0.3
)
 
(1.0
)
 

 
(1.0
)
After tax amount
1.7

 
8.5

 
0.9

 
11.1

 
0.1

 
11.2

Amounts reclassified from accumulated other comprehensive income(1)
1.4

 

 
(0.6
)
 
0.8

 

 
0.8

Net current period other comprehensive income (loss)
3.1

 
8.5

 
0.3

 
11.9

 
$
0.1

 
$
12.0

Balance at March 31, 2014
$
(29.9
)
 
$
39.9

 
$
0.5

 
$
10.5

 
 

 
 

 (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, 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.
Reclassifications out of Accumulated Other Comprehensive Income include: 
 
Three Months Ended March 31, 2014
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.5
)
 
$
(0.5
)
Cost of goods sold
0.7

 
0.2

 
(0.2
)
 
0.7

Operating expenses
0.2

 

 

 
0.2

Other income (expense), net

 

 
(0.4
)
 
(0.4
)
Total before tax
$
0.9

 
$
0.2

 
$
(1.1
)
 
$

Tax expense
 

 
 

 
 

 

Total reclassifications for the period, net of tax
 

 
 

 
 

 
$

 
Six Months Ended March 31, 2014
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
Total
Affected Line in the Consolidated Statement of Operations:
 

 
 

 
 

 
 

Net revenue
$

 
$

 
$
(0.4
)
 
$
(0.4
)
Cost of goods sold
1.3

 
0.3

 
(0.3
)
 
1.3

Operating expenses
0.5

 
0.1

 

 
0.6

Other income (expense), net

 

 
(0.3
)
 
(0.3
)
Total before tax
$
1.8

 
$
0.4

 
$
(1.0
)
 
$
1.2

Tax expense
 
 
 
 
 
 
(0.4
)
Total reclassifications for the period, net of tax
 
 
 
 
 
 
$
0.8

 


 
Three Months Ended March 31, 2015
 
Amortization of Pension and
Postretirement (1)
 
(Gain)/Loss on
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
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
 
 
 
Net Loss
Recognized
 
Prior Service Costs
Recognized
 
Derivative
Instruments
 
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



(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 5).
Share-Based Compensation (Tables)
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015
 
2014
 
2015
 
2014
Share-based compensation costs
$
4.1

 
$
3.4

 
$
6.3

 
$
5.1

Less impact of income tax benefit
1.5

 
1.3

 
2.3

 
1.9

Share-based compensation costs, net of tax
$
2.6

 
$
2.1

 
$
4.0

 
$
3.2

During the six months ended March 31, 2015, we made the following grants:
 
 
Number of
Units
Stock options
360,903

Time-based stock awards
49,219

Performance-based stock awards (maximum that can be earned)
474,599

Other Income (Expense), Net (Tables)
Other income and expense
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015
 
2014
 
2015
 
2014
Equity in net income (loss) of affiliates
$
(1.7
)
 
$
2.9

 
$
(1.4
)
 
$
2.7

Foreign currency exchange loss, net
(3.3
)
 
(0.4
)
 
(4.1
)
 
(0.7
)
Gain on exercise of warrants

 
5.2

 

 
5.2

Service agreement cancellation

 
2.5

 

 
2.5

Other, net

 
(0.5
)
 
0.5

 
(0.1
)
Other income and (expense), net
$
(5.0
)
 
$
9.7

 
$
(5.0
)
 
$
9.6

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,
 
Fair Value at March 31, 2015
Using Inputs Considered as:
 
2015
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
43.0

 
$
43.0

 
$

 
$

Investments in rabbi trust
4.8

 
4.8

 

 

Derivative instruments
3.3

 

 
3.3

 

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.0

 
159.9

 

 

Revolving credit facility
146.3

 

 
146.3

 

Term loan
175.5

 

 
175.5

 

  $100 Series A Notes
100.0

 

 
103.9

 

Derivative instruments
12.1

 

 
12.1

 

Segment and Geographical Information (Tables)
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2015
 
2014
 
2015
 
2014
Net revenue
 

 
 

 
 

 
 

Process Equipment Group
$
240.8

 
$
239.5

 
$
497.2

 
$
481.7

Batesville
163.8

 
157.3

 
308.9

 
300.0

Total
$
404.6

 
$
396.8

 
$
806.1

 
$
781.7

 
 
 
 
 
 
 
 
Adjusted EBITDA
 

 
 

 
 

 
 

Process Equipment Group
$
34.6

 
$
26.0

 
$
72.7

 
$
52.7

Batesville
44.0

 
44.9

 
76.6

 
79.4

Corporate
(13.1
)
 
(1.7
)
 
(20.4
)
 
(9.7
)
 
 
 
 
 
 
 
 
Net revenue (1)
 

 
 

 
 

 
 

United States
$
236.2

 
$
215.9

 
$
452.8

 
$
418.3

International
168.4

 
180.9

 
353.3

 
363.4

Total
$
404.6

 
$
396.8

 
$
806.1

 
$
781.7

 
(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.
 
March 31,
2015
 
September 30,
2014
Total assets assigned
 

 
 

Process Equipment Group
$
1,500.2

 
$
1,632.8

Batesville
225.4

 
237.8

Corporate
62.7

 
47.9

Total
$
1,788.3

 
$
1,918.5

 
 
 
 
Tangible long-lived assets, net
 

 
 

United States
$
94.5

 
$
93.7

International
58.2

 
65.8

Total
$
152.7

 
$
159.5

The following schedule reconciles segment adjusted EBITDA to consolidated net income.
 
 
Three Months Ended
March 31,
 
Six Months Ended
March 31,
 
2015
 
2014
 
2015
 
2014
Adjusted EBITDA:
 

 
 

 
 

 
 

Process Equipment Group
$
34.6

 
$
26.0

 
$
72.7

 
$
52.7

Batesville
44.0

 
44.9

 
76.6

 
79.4

Corporate
(13.1
)
 
(1.7
)
 
(20.4
)
 
(9.7
)
Less:
 

 
 

 
 

 
 

Interest income
(0.4
)
 
(0.1
)
 
(0.7
)
 
(0.3
)
Interest expense
6.4

 
5.6

 
12.1

 
11.9

Income tax expense
14.3

 
13.7

 
26.1

 
22.7

Depreciation and amortization
13.4

 
14.7

 
28.4

 
29.0

Business acquisition and integration
(0.1
)
 
1.1

 
0.2

 
3.0

Restructuring
0.7

 
0.9

 
1.4

 
1.2

Litigation

 

 
0.5

 

Consolidated net income
$
31.2

 
$
33.3

 
$
60.9

 
$
54.9

Condensed Consolidating Information (Tables)
 
Three Months Ended March 31, 2015
 
Three Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
235.7

 
$
220.0

 
$
(51.1
)
 
$
404.6

 
$

 
$
212.4

 
$
227.4

 
$
(43.0
)
 
$
396.8

Cost of goods sold

 
119.2

 
162.2

 
(25.4
)
 
256.0

 

 
104.8

 
165.6

 
(16.4
)
 
254.0

Gross profit

 
116.5

 
57.8

 
(25.7
)
 
148.6

 

 
107.6

 
61.8

 
(26.6
)
 
142.8

Operating expenses
10.7

 
63.8

 
42.9

 
(25.7
)
 
91.7

 
11.8

 
63.3

 
51.4

 
(26.6
)
 
99.9

Operating profit
(10.7
)
 
52.7

 
14.9

 

 
56.9

 
(11.8
)
 
44.3

 
10.4

 

 
42.9

Interest expense
5.2

 
0.4

 
0.8

 

 
6.4

 
4.8

 

 
0.8

 

 
5.6

Other income (expense), net
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
 
0.2

 
10.1

 
(0.6
)
 

 
9.7

Equity in net income (loss) of subsidiaries
40.9

 
3.0

 

 
(43.9
)
 

 
40.9

 
3.0

 

 
(43.9
)
 

Income (loss) before income taxes
23.3

 
54.7

 
11.4

 
(43.9
)
 
45.5

 
24.5

 
57.4

 
9.0

 
(43.9
)
 
47.0

Income tax expense (benefit)
(7.4
)
 
19.2

 
2.5

 

 
14.3

 
(8.5
)
 
19.9

 
2.3

 

 
13.7

Consolidated net income
30.7

 
35.5

 
8.9

 
(43.9
)
 
31.2

 
33.0

 
37.5

 
6.7

 
(43.9
)
 
33.3

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.5

 

 
0.5

 

 

 
0.3

 

 
0.3

Net income (1)
$
30.7

 
$
35.5

 
$
8.4

 
$
(43.9
)
 
$
30.7

 
$
33.0

 
$
37.5

 
$
6.4

 
$
(43.9
)
 
$
33.0

Consolidated comprehensive income
$
(8.6
)
 
$
36.4

 
$
(32.7
)
 
$
(3.2
)
 
$
(8.1
)
 
$
33.5

 
$
38.2

 
$
6.7

 
$
(44.4
)
 
$
34.0

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.5

 

 
0.5

 

 

 
0.5

 

 
0.5

Comprehensive income (2)
$
(8.6
)
 
$
36.4

 
$
(33.2
)
 
$
(3.2
)
 
$
(8.6
)
 
$
33.5

 
$
38.2

 
$
6.2

 
$
(44.4
)
 
$
33.5

 
Six Months Ended March 31, 2015
 
Six Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net revenue
$

 
$
452.4

 
$
453.5

 
$
(99.8
)
 
$
806.1

 
$

 
$
412.7

 
$
452.4

 
$
(83.4
)
 
$
781.7

Cost of goods sold

 
233.5

 
335.0

 
(49.4
)
 
519.1

 

 
207.3

 
332.2

 
(31.6
)
 
507.9

Gross profit

 
218.9

 
118.5

 
(50.4
)
 
287.0

 

 
205.4

 
120.2

 
(51.8
)
 
273.8

Operating expenses
18.8

 
126.7

 
87.8

 
(50.4
)
 
182.9

 
20.8

 
125.2

 
99.7

 
(51.8
)
 
193.9

Operating profit
(18.8
)
 
92.2

 
30.7

 

 
104.1

 
(20.8
)
 
80.2

 
20.5

 

 
79.9

Interest expense
10.1

 
0.4

 
1.6

 

 
12.1

 
9.7

 
0.1

 
2.1

 

 
11.9

Other income (expense), net
(1.7
)
 
(0.6
)
 
(2.7
)
 

 
(5.0
)
 
0.1

 
9.4

 
0.1

 

 
9.6

Equity in net income (loss) of subsidiaries
75.0

 
5.2

 

 
(80.2
)
 

 
69.5

 
4.9

 

 
(74.4
)
 

Income (loss) before income taxes
44.4

 
96.4

 
26.4

 
(80.2
)
 
87.0

 
39.1

 
94.4

 
18.5

 
(74.4
)
 
77.6

Income tax expense (benefit)
(15.8
)
 
34.1

 
7.8

 

 
26.1

 
(14.2
)
 
33.1

 
3.8

 

 
22.7

Consolidated net income
60.2

 
62.3

 
18.6

 
(80.2
)
 
60.9

 
53.3

 
61.3

 
14.7

 
(74.4
)
 
54.9

Less: Net income attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests

 

 
0.7

 

 
0.7

 

 

 
1.6

 

 
1.6

Net income (1)
$
60.2

 
$
62.3

 
$
17.9

 
$
(80.2
)
 
$
60.2

 
$
53.3

 
$
61.3

 
$
13.1

 
$
(74.4
)
 
$
53.3

Consolidated comprehensive income
$
1.2

 
$
64.0

 
$
(30.4
)
 
$
(33.0
)
 
$
1.8

 
$
65.2

 
$
62.7

 
$
25.3

 
$
(86.3
)
 
$
66.9

Less: Comprehensive income attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     to noncontrolling interests

 

 
0.6

 

 
0.6

 

 

 
1.7

 

 
1.7

Comprehensive income (2)
$
1.2

 
$
64.0

 
$
(31.0
)
 
$
(33.0
)
 
$
1.2

 
$
65.2

 
$
62.7

 
$
23.6

 
$
(86.3
)
 
$
65.2



 (1) Net income attributable to Hillenbrand
(2) Comprehensive income attributable to Hillenbrand
 
March 31, 2015
 
September 30, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Cash and equivalents
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

 
$
0.4

 
$
10.6

 
$
47.0

 
$

 
$
58.0

Trade receivables, net

 
102.6

 
69.7

 

 
172.3

 

 
113.2

 
77.8

 

 
191.0

Unbilled receivables from long-term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
manufacturing contracts

 
6.5

 
127.8

 

 
134.3

 

 
4.0

 
145.3

 

 
149.3

Inventories

 
80.9

 
97.1

 
(3.1
)
 
174.9

 

 
69.7

 
101.8

 
(3.0
)
 
168.5

Deferred income taxes
8.5

 
17.2

 
3.0

 

 
28.7

 
10.6

 
17.3

 
2.6

 

 
30.5

Prepaid expense
3.0

 
8.2

 
10.2

 

 
21.4

 
2.5

 
4.9

 
11.6

 

 
19.0

Intercompany receivables
283.8

 
1,129.0

 
36.6

 
(1,449.4
)
 

 
291.0

 
1,189.9

 
5.3

 
(1,486.2
)
 

Other current assets
0.5

 
1.7

 
14.9

 
0.7

 
17.8

 
1.2

 
2.1

 
17.8

 
0.4

 
21.5

Total current assets
295.9

 
1,353.6

 
394.7

 
(1,451.8
)
 
592.4

 
305.7

 
1,411.7

 
409.2

 
(1,488.8
)
 
637.8

Property, plant and equipment, net
6.7

 
65.6

 
80.4

 

 
152.7

 
6.7

 
65.4

 
87.4

 

 
159.5

Intangible assets, net
2.3

 
180.4

 
282.1

 

 
464.8

 
2.5

 
186.1

 
321.9

 

 
510.5

Goodwill

 
211.7

 
324.1

 

 
535.8

 

 
211.7

 
359.0

 

 
570.7

Investment in consolidated subsidiaries
1,983.8

 
645.9

 

 
(2,629.7
)
 

 
2,000.2

 
644.0

 

 
(2,644.2
)
 

Other assets
33.9

 
25.9

 
3.8

 
(21.0
)
 
42.6

 
25.8

 
9.9

 
4.3

 

 
40.0

Total Assets
$
2,322.6

 
$
2,483.1

 
$
1,085.1

 
$
(4,102.5
)
 
$
1,788.3

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$
0.4

 
$
25.9

 
$
91.4

 
$
0.3

 
$
118.0

 
$
3.0

 
$
32.8

 
$
156.8

 
$

 
$
192.6

Liabilities from long-term manufacturing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
contracts and advances

 
22.8

 
56.5

 

 
79.3

 

 
20.4

 
55.7

 

 
76.1

Current portion of long-term debt
9.0

 

 

 

 
9.0

 
15.0

 

 

 

 
15.0

Accrued compensation
22.6

 
20.5

 
8.0

 

 
51.1

 
5.0

 
55.3

 
9.3

 

 
69.6

Deferred income taxes

 

 
21.4

 

 
21.4

 

 
1.6

 
19.1

 

 
20.7

Intercompany payables
1,174.9

 
277.6

 

 
(1,452.5
)
 

 
1,202.7

 
286.5

 

 
(1,489.2
)
 

Other current liabilities
3.2

 
48.9

 
74.7

 
(19.4
)
 
107.4

 
4.1

 
61.6

 
51.0

 
0.4

 
117.1

Total current liabilities
1,210.1

 
395.7

 
252.0

 
(1,471.6
)
 
386.2

 
1,229.8

 
458.2

 
291.9

 
(1,488.8
)
 
491.1

Long-term debt
550.0

 

 
11.8

 

 
561.8

 
525.9

 

 
17.6

 

 
543.5

Accrued pension and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
postretirement healthcare
1.1

 
95.7

 
88.3

 

 
185.1

 
1.0

 
94.2

 
105.7

 

 
200.9

Deferred income taxes

 
19.9

 
29.5

 
(0.3
)
 
49.1

 
0.8

 
15.1

 
39.5

 

 
55.4

Other long-term liabilities
0.1

 
23.4

 
11.1

 
(0.9
)
 
33.7

 
0.1

 
27.7

 
6.0

 

 
33.8

Total Liabilities
1,761.3

 
534.7

 
392.7

 
(1,472.8
)
 
1,215.9

 
1,757.6

 
595.2

 
460.7

 
(1,488.8
)
 
1,324.7

Total Hillenbrand Shareholders’ Equity
561.3

 
1,948.4

 
681.3

 
(2,629.7
)
 
561.3

 
583.3

 
1,933.6

 
710.6

 
(2,644.2
)
 
583.3

Noncontrolling interests

 

 
11.1

 

 
11.1

 

 

 
10.5

 

 
10.5

Total Equity
561.3

 
1,948.4

 
692.4

 
(2,629.7
)
 
572.4

 
583.3

 
1,933.6

 
721.1

 
(2,644.2
)
 
593.8

Total Liabilities and Equity
$
2,322.6

 
$
2,483.1

 
$
1,085.1

 
$
(4,102.5
)
 
$
1,788.3

 
$
2,340.9

 
$
2,528.8

 
$
1,181.8

 
$
(4,133.0
)
 
$
1,918.5

 
Six Months Ended March 31, 2015
 
Six Months Ended March 31, 2014
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
Parent
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operating activities
$
12.7

 
$
84.8

 
$
(1.7
)
 
$
(85.6
)
 
$
10.2

 
$
13.0

 
$
37.2

 
$
79.3

 
$
(47.3
)
 
$
82.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
(0.8
)
 
(7.2
)
 
(3.9
)
 

 
(11.9
)
 
(0.8
)
 
(6.4
)
 
(4.2
)
 

 
(11.4
)
Proceeds from sales of property, plant,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and equipment

 
0.5

 

 

 
0.5

 

 
0.7

 

 

 
0.7

Proceeds from warrant exercise

 

 

 

 

 

 
5.7

 

 

 
5.7

Other, net

 
(0.9
)
 
(0.2
)
 

 
(1.1
)
 

 

 
0.9

 

 
0.9

Net cash used in investing activities
(0.8
)
 
(7.6
)
 
(4.1
)
 

 
(12.5
)
 
(0.8
)
 

 
(3.3
)
 

 
(4.1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Repayments on term loan
(4.5
)
 

 

 

 
(4.5
)
 
(5.0
)
 

 

 

 
(5.0
)
Proceeds from revolving credit facilities
191.0

 

 
63.4

 

 
254.4

 
158.0

 

 
24.6

 

 
182.6

Repayments on revolving credit facilities
(268.5
)
 

 
(63.5
)
 

 
(332.0
)
 
(137.5
)
 

 
(81.1
)
 

 
(218.6
)
Proceeds from unsecured Series A Notes,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
net of financing costs
99.6

 

 

 

 
99.6

 

 

 

 

 

Proceeds from other borrowings

 

 

 

 

 

 

 
1.0

 

 
1.0

Payment of dividends on common stock
(25.2
)
 

 

 

 
(25.2
)
 
(24.8
)
 

 

 

 
(24.8
)
Payment of dividends - intercompany

 
(80.3
)
 
(5.3
)
 
85.6

 

 

 
(38.4
)
 
(8.9
)
 
47.3

 

Repurchases of common stock
(9.2
)
 

 

 

 
(9.2
)
 
(16.5
)
 

 

 

 
(16.5
)
Net proceeds on stock plans
3.4

 

 

 

 
3.4

 
12.7

 

 

 

 
12.7

Other, net
1.2

 

 

 

 
1.2

 
0.9

 

 
(0.8
)
 

 
0.1

Net cash (used in) provided by
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
financing activities
(12.2
)
 
(80.3
)
 
(5.4
)
 
85.6

 
(12.3
)
 
(12.2
)
 
(38.4
)
 
(65.2
)
 
47.3

 
(68.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rates on cash and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
cash equivalents

 

 
(0.4
)
 

 
(0.4
)
 

 

 
(1.3
)
 

 
(1.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash flow
(0.3
)
 
(3.1
)
 
(11.6
)
 

 
(15.0
)
 

 
(1.2
)
 
9.5

 

 
8.3

Cash and equivalents at beginning of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
period
0.4

 
10.6

 
47.0

 

 
58.0

 
0.6

 
8.7

 
33.4

 

 
42.7

Cash and equivalents at end of period
$
0.1

 
$
7.5

 
$
35.4

 
$

 
$
43.0

 
$
0.6

 
$
7.5

 
$
42.9

 
$

 
$
51.0

Background and Basis of Presentation - Narrative (Details)
6 Months Ended
Mar. 31, 2015
segment
Correction of Errors
 
Number of reportable segments
Coperion
 
Correction of Errors
 
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, 2015
Sep. 30, 2014
Balance Sheet Related Disclosures [Abstract]
 
 
Trade accounts receivable reserves
$ 20.2 
$ 19.2 
Accumulated depreciation on property, plant, and equipment
289.5 
278.3 
Accumulated amortization on intangible assets
140.4 
127.4 
Inventories:
 
 
Raw materials and components
50.0 
53.2 
Work in process
70.2 
73.3 
Finished goods
54.7 
42.0 
Total inventories
$ 174.9 
$ 168.5 
Financing Agreements - Schedule of borrowings (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 15, 2014
Sep. 30, 2014
Financing Agreements
 
 
 
Total debt
$ 570.8 
 
$ 558.5 
Less: current portion
(9.0)
 
(15.0)
Long-term debt
561.8 
 
543.5 
$700 revolving credit facility, maturing December 19, 2019
 
 
 
Financing Agreements
 
 
 
Total debt
146.3 
 
229.6 
$200 term loan, final maturity December 19, 2019
 
 
 
Financing Agreements
 
 
 
Total debt
175.5 
 
180.0 
$150 senior unsecured notes, due July 15, 2020, net of discount
 
 
 
Financing Agreements
 
 
 
Total debt
149.0 
 
148.9 
$100 unsecured Series A Notes, due December 15, 2024
 
 
 
Financing Agreements
 
 
 
Total debt
$ 100.0 
$ 100.0 
$ 0 
Stated interest rate
 
4.60% 
 
Financing Agreements - Narrative (Details)
In Millions, unless otherwise specified
0 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Dec. 15, 2014
Mar. 31, 2015
USD ($)
Dec. 15, 2014
Sep. 30, 2014
USD ($)
Mar. 31, 2015
$700 revolving credit facility, maturing December 19, 2019
USD ($)
Mar. 31, 2014
$700 revolving credit facility, maturing December 19, 2019
Mar. 31, 2015
$700 revolving credit facility, maturing December 19, 2019
USD ($)
Mar. 31, 2014
$700 revolving credit facility, maturing December 19, 2019
Sep. 30, 2014
$700 revolving credit facility, maturing December 19, 2019
USD ($)
Nov. 19, 2012
$700 revolving credit facility, maturing December 19, 2019
USD ($)
Mar. 31, 2015
Term loan
USD ($)
Dec. 19, 2014
Term loan
USD ($)
Sep. 30, 2014
Term loan
USD ($)
Mar. 31, 2015
Other financing agreements
USD ($)
Mar. 31, 2015
$100 unsecured Series A Notes, due December 15, 2024
USD ($)
Mar. 31, 2014
$100 unsecured Series A Notes, due December 15, 2024
Mar. 31, 2015
$100 unsecured Series A Notes, due December 15, 2024
USD ($)
Mar. 31, 2014
$100 unsecured Series A Notes, due December 15, 2024
Dec. 15, 2014
$100 unsecured Series A Notes, due December 15, 2024
USD ($)
Sep. 30, 2014
$100 unsecured Series A Notes, due December 15, 2024
USD ($)
Mar. 31, 2015
Syndicated credit facility
EUR (€)
Dec. 19, 2014
Second JPM Amendment
$700 revolving credit facility, maturing December 19, 2019
USD ($)
Dec. 19, 2014
Original and First Amendment of JPM Credit Facility
$700 revolving credit facility, maturing December 19, 2019
USD ($)
Debt instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
 
$ 570.8 
 
$ 558.5 
$ 146.3 
 
$ 146.3 
 
$ 229.6 
 
$ 175.5 
 
$ 180.0 
 
$ 100.0 
 
$ 100.0 
 
$ 100.0 
$ 0 
 
 
 
Stated interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.60% 
 
 
 
 
Redemption price, percentage
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred financing costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.5 
 
 
1.7 
 
Debt covenant, business acquisition value threshold
 
75.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage holiday fee
 
 
0.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
700.0 
 
 
 
210.0 
 
 
 
 
 
 
150.0 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
100 
 
100 
 
 
 
 
 
 
Maximum ratio of Indebtedness to EBITDA allowed
 
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum ratio of EBITDA to interest expense allowed
 
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred financing costs, existing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.8 
Letters of credit outstanding, amount
 
 
 
 
15.9 
 
15.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, remaining borrowing capacity
 
 
 
 
537.8 
 
537.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, current borrowing capacity
 
 
 
 
402.9 
 
402.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rates
 
 
 
 
1.30% 
1.37% 
1.29% 
1.36% 
 
 
 
 
 
 
1.55% 
1.66% 
1.54% 
1.67% 
 
 
 
 
 
Weighted average facility fee
 
 
 
 
0.23% 
 
0.24% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, amount utilized for bank guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
153.3 
 
 
 
 
 
 
 
 
 
Restricted cash and cash equivalent
 
$ 0.7 
 
$ 0.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retirement Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
U.S. Pension Benefits
 
 
 
 
Retirement and Postemployment Benefits
 
 
 
 
Service costs
$ 1.1 
$ 1.0 
$ 2.2 
$ 2.0 
Interest costs
3.6 
3.6 
7.2 
7.3 
Expected return on plan assets
(3.7)
(3.5)
(7.2)
(7.0)
Amortization of unrecognized prior service costs, net
0.3 
0.2 
0.5 
0.4 
Amortization of net loss
1.4 
1.0 
2.6 
1.9 
Net pension costs
2.7 
2.3 
5.3 
4.6 
Non-U.S. Pension Benefits
 
 
 
 
Retirement and Postemployment Benefits
 
 
 
 
Service costs
0.5 
0.4 
0.9 
0.8 
Interest costs
0.6 
1.0 
1.4 
2.1 
Expected return on plan assets
(0.2)
(0.2)
(0.5)
(0.5)
Amortization of unrecognized prior service costs, net
Amortization of net loss
Net pension costs
$ 0.9 
$ 1.2 
$ 1.8 
$ 2.4 
Retirement Benefits - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Compensation and Retirement Disclosure [Abstract]
 
 
 
 
Postemployment Benefits, Period Expense
$ 0.1 
$ 0.1 
$ 0.2 
$ 0.2 
Defined Contribution Plan, Cost Recognized
$ 2.4 
$ 2.2 
$ 4.5 
$ 4.3 
Income Taxes (Details)
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
 
Effective income tax rate (as a percent)
31.40% 
29.10% 
30.00% 
29.30% 
Earnings Per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Income per common share
 
 
 
 
Net income
$ 30.7 1
$ 33.0 1
$ 60.2 1
$ 53.3 1
Weighted average shares outstanding (basic - in millions)
63.3 
63.3 
63.2 
63.2 
Effect of dilutive stock options and other unvested equity awards (in millions)
0.6 
0.6 
0.6 
0.7 
Weighted average shares outstanding (diluted - in millions)
63.9 
63.9 
63.8 
63.9 
Basic earnings per share
$ 0.49 1
$ 0.52 1
$ 0.95 1
$ 0.84 1
Diluted earnings per share
$ 0.48 
$ 0.51 
$ 0.94 
$ 0.83 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
0.7 
0.4 
0.7 
0.4 
Performance-based stock awards
 
 
 
 
Income per common share
 
 
 
 
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)
 
 
1.4 
1.8 
Earnings Per Share - Narrative (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Antidilutive securities excluded from computation of earnings per share [Line Items]
 
 
 
 
Antidilutive securities excluded from computation of earnings per share, amount
0.7 
0.4 
0.7 
0.4 
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
 
 
1.4 
1.8 
Shareholders' Equity - Narrative (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2015
Mar. 31, 2014
Class of Stock [Line Items]
 
 
 
Cash dividends paid on common stock
 
$ 25.2 
$ 24.8 
Shares repurchased
 
305 
 
Amount of shares repurchased
 
$ 9.2 
$ 16.5 
Common stock, shares issued
245 
 
 
Treasury Stock
 
 
 
Class of Stock [Line Items]
 
 
 
Common stock, shares issued
317 
 
 
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, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
$ (52.2)
 
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
(65.1)
12.2 
Tax expense
 
 
2.5 
(1.0)
After tax amount
 
 
(62.6)
11.2 
Amounts reclassified from accumulated other comprehensive income(1)
 
 
3.5 1
0.8 1
Total changes in other comprehensive income (loss), net of tax
(39.3)
0.7 
(59.1)
12.0 
Balance at the end of the period
(111.2)
 
(111.2)
 
Pension and Postretirement
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(46.0)
(33.0)
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
2.4 
Tax expense
 
 
(0.7)
After tax amount
 
 
1.7 
Amounts reclassified from accumulated other comprehensive income(1)
 
 
1.8 1
1.4 1
Total changes in other comprehensive income (loss), net of tax
 
 
1.8 
3.1 
Balance at the end of the period
(44.2)
(29.9)
(44.2)
(29.9)
Currency Translation
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(4.9)
31.4 
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
(56.5)
8.5 
Tax expense
 
 
After tax amount
 
 
(56.5)
8.5 
Amounts reclassified from accumulated other comprehensive income(1)
 
 
1
1
Total changes in other comprehensive income (loss), net of tax
 
 
(56.5)
8.5 
Balance at the end of the period
(61.4)
39.9 
(61.4)
39.9 
Net Unrealized Gain (Loss) on Derivative Instruments
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(1.3)
0.2 
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
(8.5)
1.2 
Tax expense
 
 
2.5 
(0.3)
After tax amount
 
 
(6.0)
0.9 
Amounts reclassified from accumulated other comprehensive income(1)
 
 
1.7 1
(0.6)1
Total changes in other comprehensive income (loss), net of tax
 
 
(4.3)
0.3 
Balance at the end of the period
(5.6)
0.5 
(5.6)
0.5 
Total Attributable to Hillenbrand, Inc.
 
 
 
 
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(52.2)
(1.4)
Other comprehensive income before reclassifications
 
 
 
 
Before tax amount
 
 
(65.0)
12.1 
Tax expense
 
 
2.5 
(1.0)
After tax amount
 
 
(62.5)
11.1 
Amounts reclassified from accumulated other comprehensive income(1)
 
 
3.5 1
0.8 1
Total changes in other comprehensive income (loss), net of tax
 
 
(59.0)
11.9 
Balance at the end of the period
(111.2)
10.5 
(111.2)
10.5 
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, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
$ (404.6)1
$ (396.8)1
$ (806.1)
$ (781.7)
Cost of goods sold
256.0 
254.0 
519.1 
507.9 
Operating expenses
91.7 
99.9 
182.9 
193.9 
Other income (expense), net
5.0 
(9.7)
5.0 
(9.6)
Total before tax
(45.5)
(47.0)
(87.0)
(77.6)
Tax expense
(14.3)
(13.7)
(26.1)
(22.7)
Total reclassifications for the period, net of tax
(30.7)2
(33.0)2
(60.2)2
(53.3)2
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
0.8 
(0.5)
1.3 
(0.4)
Cost of goods sold
1.1 
0.7 
2.0 
1.3 
Operating expenses
0.4 
0.2 
0.8 
0.6 
Other income (expense), net
0.8 
(0.4)
1.1 
(0.3)
Total before tax
3.1 
5.2 
1.2 
Tax expense
0.9 
1.7 
0.4 
Total reclassifications for the period, net of tax
2.2 
3.5 
0.8 
Net Loss Recognized |
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
 
3
Cost of goods sold
0.8 3
0.7 
1.7 3
1.3 
Operating expenses
0.4 3
0.2 
0.7 3
0.5 
Other income (expense), net
 
3
Total before tax
1.2 3
0.9 
2.4 3
1.8 
Prior Service Costs Recognized |
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
 
3
Cost of goods sold
0.2 3
0.2 
0.3 3
0.3 
Operating expenses
3
0.1 3
0.1 
Other income (expense), net
 
3
Total before tax
0.2 3
0.2 
0.4 3
0.4 
Derivative Instruments |
Reclassifications out of accumulated other comprehensive income (loss)
 
 
 
 
Affected Line in the Consolidated Statement of Operations:
 
 
 
 
Net revenue
0.8 
(0.5)
1.3 
(0.4)
Cost of goods sold
0.1 
(0.2)
(0.3)
Operating expenses
Other income (expense), net
0.8 
(0.4)
1.1 
(0.3)
Total before tax
$ 1.7 
$ (1.1)
$ 2.4 
$ (1.0)
Share-Based Compensation - Schedule of stock-based compensation costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Compensation Related Costs [Abstract]
 
 
 
 
Share-based compensation costs
$ 4.1 
$ 3.4 
$ 6.3 
$ 5.1 
Less impact of income tax benefit
1.5 
1.3 
2.3 
1.9 
Share-based compensation costs, net of tax
$ 2.6 
$ 2.1 
$ 4.0 
$ 3.2 
Share-Based Compensation - Schedule of stock-based awards granted (Details)
6 Months Ended
Mar. 31, 2015
Stock options
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Options granted in period
360,903 
Time-based stock awards
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Stock awards granted in period
49,219 
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
474,599 
Share-Based Compensation - Narrative (Details) (USD $)
6 Months Ended
Mar. 31, 2015
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
$ 32.66 
Stock option granted, weighted-average grant date fair value
$ 8.38 
Time-based stock awards
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Equity instruments other than options, grant date fair value
$ 31.61 
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
$ 33.44 
Performance-based stock awards granted, number of units
150,464 
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, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Accumulated other comprehensive income (loss) [Line Items]
 
 
 
 
Equity in net income (loss) of affiliates
$ (1.7)
$ 2.9 
$ (1.4)
$ 2.7 
Foreign currency exchange loss, net
(3.3)
(0.4)
(4.1)
(0.7)
Gain on exercise of warrants
5.2 
5.2 
Service agreement cancellation
2.5 
2.5 
Other, net
(0.5)
0.5 
(0.1)
Other income and (expense), net
(5.0)
9.7 
(5.0)
9.6 
Proceeds from warrant exercise
 
 
 
5.7 
Forethought Financial Group, Inc
 
 
 
 
Accumulated other comprehensive income (loss) [Line Items]
 
 
 
 
Gain on exercise of warrants
 
 
5.2 
 
Proceeds from warrant exercise
 
 
6.2 
 
Batesville
 
 
 
 
Accumulated other comprehensive income (loss) [Line Items]
 
 
 
 
Service agreement cancellation
 
$ 2.5 
 
 
Commitments and Contingencies - Narrative (Details) (General claims and lawsuits, USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 31, 2015
Minimum
 
Commitments and Contingencies
 
Deductibles and self-insured retentions per occurrence or per claim
$ 0.5 
Maximum
 
Commitments and Contingencies
 
Deductibles and self-insured retentions per occurrence or per claim
$ 1.0 
Fair Value Measurements - Schedule of financial assets and liabilities (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Level 1
Mar. 31, 2015
Level 2
Mar. 31, 2015
Level 3
Mar. 31, 2015
$150 senior unsecured notes
Mar. 31, 2015
$150 senior unsecured notes
Level 1
Mar. 31, 2015
$150 senior unsecured notes
Level 2
Mar. 31, 2015
$150 senior unsecured notes
Level 3
Mar. 31, 2015
Revolving credit facility
Level 1
Mar. 31, 2015
Revolving credit facility
Level 2
Mar. 31, 2015
Revolving credit facility
Level 3
Dec. 19, 2014
Term loan
Mar. 31, 2015
Term loan
Level 1
Mar. 31, 2015
Term loan
Level 2
Mar. 31, 2015
Term loan
Level 3
Mar. 31, 2015
$100 Series A Notes
Mar. 31, 2015
$100 Series A Notes
Level 1
Mar. 31, 2015
$100 Series A Notes
Level 2
Mar. 31, 2015
$100 Series A Notes
Level 3
Mar. 31, 2015
Derivatives
Cash flow hedging
Mar. 31, 2015
Carrying value
Mar. 31, 2015
Carrying value
$150 senior unsecured notes
Mar. 31, 2015
Carrying value
Revolving credit facility
Mar. 31, 2015
Carrying value
Term loan
Mar. 31, 2015
Carrying value
$100 Series A Notes
Financial assets and liabilities at carrying value and fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
$ 150 
 
 
 
 
 
 
$ 0 
 
 
 
$ 100 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
118.9 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
43.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
43.0 
 
 
 
 
Investments in rabbi trust
4.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.8 
 
 
 
 
Derivative instruments
3.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.3 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instruments
 
 
 
 
159.9 
146.3 
 
175.5 
 
103.9 
 
 
149.0 
146.3 
175.5 
100.0 
Derivative instruments
$ 0 
$ 12.1 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 12.1 
 
 
 
 
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, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Sep. 30, 2014
Segment and Geographical Information
 
 
 
 
 
Net revenue
$ 404.6 1
$ 396.8 1
$ 806.1 
$ 781.7 
 
Total assets assigned
1,788.3 
 
1,788.3 
 
1,918.5 
Property, plant, and equipment, net
152.7 
 
152.7 
 
159.5 
United States
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
236.2 
215.9 
452.8 
418.3 
 
Property, plant, and equipment, net
94.5 
 
94.5 
 
93.7 
International
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
168.4 
180.9 
353.3 
363.4 
 
Property, plant, and equipment, net
58.2 
 
58.2 
 
65.8 
Operating segments
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
404.6 
396.8 
806.1 
781.7 
 
Corporate
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Adjusted EBITDA
(13.1)
(1.7)
(20.4)
(9.7)
 
Total assets assigned
62.7 
 
62.7 
 
47.9 
Process Equipment Group
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
240.8 
239.5 
497.2 
481.7 
 
Process Equipment Group |
Operating segments
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Adjusted EBITDA
34.6 
26.0 
72.7 
52.7 
 
Total assets assigned
1,500.2 
 
1,500.2 
 
1,632.8 
Batesville
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Net revenue
163.8 
157.3 
308.9 
300.0 
 
Batesville |
Operating segments
 
 
 
 
 
Segment and Geographical Information
 
 
 
 
 
Adjusted EBITDA
44.0 
44.9 
76.6 
79.4 
 
Total assets assigned
$ 225.4 
 
$ 225.4 
 
$ 237.8 
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, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
Segment and Geographical Information
 
 
 
 
Interest income
$ (0.4)
$ (0.1)
$ (0.7)
$ (0.3)
Interest expense
6.4 
5.6 
12.1 
11.9 
Income tax expense
14.3 
13.7 
26.1 
22.7 
Depreciation and amortization
13.4 
14.7 
28.4 
29.0 
Business acquisition and integration
(0.1)
1.1 
0.2 
3.0 
Restructuring
0.7 
0.9 
1.4 
1.2 
Litigation
0.5 
Consolidated net income
31.2 
33.3 
60.9 
54.9 
Corporate
 
 
 
 
Segment and Geographical Information
 
 
 
 
Adjusted EBITDA
(13.1)
(1.7)
(20.4)
(9.7)
Process Equipment Group |
Operating segments
 
 
 
 
Segment and Geographical Information
 
 
 
 
Adjusted EBITDA
34.6 
26.0 
72.7 
52.7 
Batesville |
Operating segments
 
 
 
 
Segment and Geographical Information
 
 
 
 
Adjusted EBITDA
$ 44.0 
$ 44.9 
$ 76.6 
$ 79.4 
Condensed Consolidating Information - Consolidating statements of income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Mar. 31, 2014
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
$ 404.6 1
$ 396.8 1
$ 806.1 
$ 781.7 
Cost of goods sold
256.0 
254.0 
519.1 
507.9 
Gross profit
148.6 
142.8 
287.0 
273.8 
Operating expenses
91.7 
99.9 
182.9 
193.9 
Operating profit
56.9 
42.9 
104.1 
79.9 
Interest expense
6.4 
5.6 
12.1 
11.9 
Other income (expense), net
(5.0)
9.7 
(5.0)
9.6 
Equity in net income (loss) of subsidiaries
(1.7)
2.9 
(1.4)
2.7 
Income before income taxes
45.5 
47.0 
87.0 
77.6 
Income tax expense (benefit)
14.3 
13.7 
26.1 
22.7 
Consolidated net income
31.2 
33.3 
60.9 
54.9 
Less: Net income attributable to noncontrolling interests
0.5 
0.3 
0.7 
1.6 
Total reclassifications for the period, net of tax
30.7 2
33.0 2
60.2 2
53.3 2
Consolidated comprehensive income
(8.1)
34.0 
1.8 
66.9 
Less: Comprehensive income attributable to noncontrolling interests
0.5 
0.5 
0.6 
1.7 
Comprehensive income (loss)
(8.6)3
33.5 3
1.2 3
65.2 3
Reportable legal entities |
Parent
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Operating expenses
10.7 
11.8 
18.8 
20.8 
Operating profit
(10.7)
(11.8)
(18.8)
(20.8)
Interest expense
5.2 
4.8 
10.1 
9.7 
Other income (expense), net
(1.7)
0.2 
(1.7)
0.1 
Equity in net income (loss) of subsidiaries
40.9 
40.9 
75.0 
69.5 
Income before income taxes
23.3 
24.5 
44.4 
39.1 
Income tax expense (benefit)
(7.4)
(8.5)
(15.8)
(14.2)
Consolidated net income
30.7 
33.0 
60.2 
53.3 
Total reclassifications for the period, net of tax
30.7 2
33.0 2
60.2 2
53.3 2
Consolidated comprehensive income
(8.6)
33.5 
1.2 
65.2 
Comprehensive income (loss)
(8.6)3
33.5 3
1.2 3
65.2 3
Reportable legal entities |
Guarantors
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Net revenue
235.7 
212.4 
452.4 
412.7 
Cost of goods sold
119.2 
104.8 
233.5 
207.3 
Gross profit
116.5 
107.6 
218.9 
205.4 
Operating expenses
63.8 
63.3 
126.7 
125.2 
Operating profit
52.7 
44.3 
92.2 
80.2 
Interest expense
0.4 
0.4 
0.1 
Other income (expense), net
(0.6)
10.1 
(0.6)
9.4 
Equity in net income (loss) of subsidiaries
3.0 
3.0 
5.2 
4.9 
Income before income taxes
54.7 
57.4 
96.4 
94.4 
Income tax expense (benefit)
19.2 
19.9 
34.1 
33.1 
Consolidated net income
35.5 
37.5 
62.3 
61.3 
Total reclassifications for the period, net of tax
35.5 2
37.5 2
62.3 2
61.3 2
Consolidated comprehensive income
36.4 
38.2 
64.0 
62.7 
Comprehensive income (loss)
36.4 3
38.2 3
64.0 3
62.7 3
Reportable legal entities |
Non-Guarantors
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Net revenue
220.0 
227.4 
453.5 
452.4 
Cost of goods sold
162.2 
165.6 
335.0 
332.2 
Gross profit
57.8 
61.8 
118.5 
120.2 
Operating expenses
42.9 
51.4 
87.8 
99.7 
Operating profit
14.9 
10.4 
30.7 
20.5 
Interest expense
0.8 
0.8 
1.6 
2.1 
Other income (expense), net
(2.7)
(0.6)
(2.7)
0.1 
Income before income taxes
11.4 
9.0 
26.4 
18.5 
Income tax expense (benefit)
2.5 
2.3 
7.8 
3.8 
Consolidated net income
8.9 
6.7 
18.6 
14.7 
Less: Net income attributable to noncontrolling interests
0.5 
0.3 
0.7 
1.6 
Total reclassifications for the period, net of tax
8.4 2
6.4 2
17.9 2
13.1 2
Consolidated comprehensive income
(32.7)
6.7 
(30.4)
25.3 
Less: Comprehensive income attributable to noncontrolling interests
0.5 
0.5 
0.6 
1.7 
Comprehensive income (loss)
(33.2)3
6.2 3
(31.0)3
23.6 3
Eliminations
 
 
 
 
Condensed Consolidating Statements of Income
 
 
 
 
Net revenue
(51.1)
(43.0)
(99.8)
(83.4)
Cost of goods sold
(25.4)
(16.4)
(49.4)
(31.6)
Gross profit
(25.7)
(26.6)
(50.4)
(51.8)
Operating expenses
(25.7)
(26.6)
(50.4)
(51.8)
Other income (expense), net
 
 
Equity in net income (loss) of subsidiaries
(43.9)
(43.9)
(80.2)
(74.4)
Income before income taxes
(43.9)
(43.9)
(80.2)
(74.4)
Consolidated net income
(43.9)
(43.9)
(80.2)
(74.4)
Total reclassifications for the period, net of tax
(43.9)2
(43.9)2
(80.2)2
(74.4)2
Consolidated comprehensive income
(3.2)
(44.4)
(33.0)
(86.3)
Comprehensive income (loss)
$ (3.2)3
$ (44.4)3
$ (33.0)3
$ (86.3)3
Condensed Consolidating Information - Consolidating balance sheet (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
ASSETS
 
 
 
 
 
 
Cash and equivalents
$ 43.0 
$ 58.0 
$ 58.0 
$ 51.0 
$ 42.7 
$ 42.7 
Trade receivables, net
172.3 
 
191.0 
 
 
 
Unbilled receivables from long-term manufacturing contracts
134.3 
 
149.3 
 
 
 
Inventories
174.9 
 
168.5 
 
 
 
Deferred income taxes
28.7 
 
30.5 
 
 
 
Prepaid expense
21.4 
 
19.0 
 
 
 
Other current assets
17.8 
 
21.5 
 
 
 
Total current assets
592.4 
 
637.8 
 
 
 
Property, plant, and equipment, net
152.7 
 
159.5 
 
 
 
Intangible assets, net
464.8 
 
510.5 
 
 
 
Goodwill
535.8 
 
570.7 
 
 
 
Other assets
42.6 
 
40.0 
 
 
 
Total Assets
1,788.3 
 
1,918.5 
 
 
 
LIABILITIES
 
 
 
 
 
 
Trade accounts payable
118.0 
 
192.6 
 
 
 
Liabilities from long-term manufacturing contracts and advances
79.3 
 
76.1 
 
 
 
Current portion of long-term debt
9.0 
 
15.0 
 
 
 
Accrued compensation
51.1 
 
69.6 
 
 
 
Deferred income taxes
21.4 
 
20.7 
 
 
 
Other current liabilities
107.4 
 
117.1 
 
 
 
Total current liabilities
386.2 
 
491.1 
 
 
 
Long-term debt
561.8 
 
543.5 
 
 
 
Long-term portion of accrued pension and postretirement healthcare
185.1 
 
200.9 
 
 
 
Deferred income taxes
49.1 
 
55.4 
 
 
 
Other long-term liabilities
33.7 
 
33.8 
 
 
 
Total Liabilities
1,215.9 
 
1,324.7 
 
 
 
Hillenbrand Shareholders’ Equity
561.3 
 
583.3 
 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
 
 
Noncontrolling interests
11.1 
 
10.5 
 
 
 
Total Shareholders’ Equity
572.4 
 
593.8 
 
 
 
Total Liabilities and Equity
1,788.3 
 
1,918.5 
 
 
 
Reportable legal entities |
Parent
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Cash and equivalents
0.1 
0.4 
0.4 
0.6 
0.6 
 
Deferred income taxes
8.5 
 
10.6 
 
 
 
Prepaid expense
3.0 
 
2.5 
 
 
 
Intercompany receivables
283.8 
 
291.0 
 
 
 
Other current assets
0.5 
 
1.2 
 
 
 
Total current assets
295.9 
 
305.7 
 
 
 
Property, plant, and equipment, net
6.7 
 
6.7 
 
 
 
Intangible assets, net
2.3 
 
2.5 
 
 
 
Investment in consolidated subsidiaries
1,983.8 
 
2,000.2 
 
 
 
Other assets
33.9 
 
25.8 
 
 
 
Total Assets
2,322.6 
 
2,340.9 
 
 
 
LIABILITIES
 
 
 
 
 
 
Trade accounts payable
0.4 
 
3.0 
 
 
 
Current portion of long-term debt
9.0 
 
15.0 
 
 
 
Accrued compensation
22.6 
 
5.0 
 
 
 
Intercompany payables
1,174.9 
 
1,202.7 
 
 
 
Other current liabilities
3.2 
 
4.1 
 
 
 
Total current liabilities
1,210.1 
 
1,229.8 
 
 
 
Long-term debt
550.0 
 
525.9 
 
 
 
Long-term portion of accrued pension and postretirement healthcare
1.1 
 
1.0 
 
 
 
Deferred income taxes
 
0.8 
 
 
 
Other long-term liabilities
0.1 
 
0.1 
 
 
 
Total Liabilities
1,761.3 
 
1,757.6 
 
 
 
Hillenbrand Shareholders’ Equity
561.3 
 
583.3 
 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
 
 
Total Shareholders’ Equity
561.3 
 
583.3 
 
 
 
Total Liabilities and Equity
2,322.6 
 
2,340.9 
 
 
 
Reportable legal entities |
Guarantors
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Cash and equivalents
7.5 
10.6 
10.6 
7.5 
8.7 
 
Trade receivables, net
102.6 
 
113.2 
 
 
 
Unbilled receivables from long-term manufacturing contracts
6.5 
 
4.0 
 
 
 
Inventories
80.9 
 
69.7 
 
 
 
Deferred income taxes
17.2 
 
17.3 
 
 
 
Prepaid expense
8.2 
 
4.9 
 
 
 
Intercompany receivables
1,129.0 
 
1,189.9 
 
 
 
Other current assets
1.7 
 
2.1 
 
 
 
Total current assets
1,353.6 
 
1,411.7 
 
 
 
Property, plant, and equipment, net
65.6 
 
65.4 
 
 
 
Intangible assets, net
180.4 
 
186.1 
 
 
 
Goodwill
211.7 
 
211.7 
 
 
 
Investment in consolidated subsidiaries
645.9 
 
644.0 
 
 
 
Other assets
25.9 
 
9.9 
 
 
 
Total Assets
2,483.1 
 
2,528.8 
 
 
 
LIABILITIES
 
 
 
 
 
 
Trade accounts payable
25.9 
 
32.8 
 
 
 
Liabilities from long-term manufacturing contracts and advances
22.8 
 
20.4 
 
 
 
Accrued compensation
20.5 
 
55.3 
 
 
 
Deferred income taxes
 
 
1.6 
 
 
 
Intercompany payables
277.6 
 
286.5 
 
 
 
Other current liabilities
48.9 
 
61.6 
 
 
 
Total current liabilities
395.7 
 
458.2 
 
 
 
Long-term portion of accrued pension and postretirement healthcare
95.7 
 
94.2 
 
 
 
Deferred income taxes
19.9 
 
15.1 
 
 
 
Other long-term liabilities
23.4 
 
27.7 
 
 
 
Total Liabilities
534.7 
 
595.2 
 
 
 
Hillenbrand Shareholders’ Equity
1,948.4 
 
1,933.6 
 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
 
 
Total Shareholders’ Equity
1,948.4 
 
1,933.6 
 
 
 
Total Liabilities and Equity
2,483.1 
 
2,528.8 
 
 
 
Reportable legal entities |
Non-Guarantors
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Cash and equivalents
35.4 
47.0 
47.0 
42.9 
33.4 
 
Trade receivables, net
69.7 
 
77.8 
 
 
 
Unbilled receivables from long-term manufacturing contracts
127.8 
 
145.3 
 
 
 
Inventories
97.1 
 
101.8 
 
 
 
Deferred income taxes
3.0 
 
2.6 
 
 
 
Prepaid expense
10.2 
 
11.6 
 
 
 
Intercompany receivables
36.6 
 
5.3 
 
 
 
Other current assets
14.9 
 
17.8 
 
 
 
Total current assets
394.7 
 
409.2 
 
 
 
Property, plant, and equipment, net
80.4 
 
87.4 
 
 
 
Intangible assets, net
282.1 
 
321.9 
 
 
 
Goodwill
324.1 
 
359.0 
 
 
 
Other assets
3.8 
 
4.3 
 
 
 
Total Assets
1,085.1 
 
1,181.8 
 
 
 
LIABILITIES
 
 
 
 
 
 
Trade accounts payable
91.4 
 
156.8 
 
 
 
Liabilities from long-term manufacturing contracts and advances
56.5 
 
55.7 
 
 
 
Current portion of long-term debt
 
 
 
 
 
Accrued compensation
8.0 
 
9.3 
 
 
 
Deferred income taxes
21.4 
 
19.1 
 
 
 
Other current liabilities
74.7 
 
51.0 
 
 
 
Total current liabilities
252.0 
 
291.9 
 
 
 
Long-term debt
11.8 
 
17.6 
 
 
 
Long-term portion of accrued pension and postretirement healthcare
88.3 
 
105.7 
 
 
 
Deferred income taxes
29.5 
 
39.5 
 
 
 
Other long-term liabilities
11.1 
 
6.0 
 
 
 
Total Liabilities
392.7 
 
460.7 
 
 
 
Hillenbrand Shareholders’ Equity
681.3 
 
710.6 
 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
 
 
Noncontrolling interests
11.1 
 
10.5 
 
 
 
Total Shareholders’ Equity
692.4 
 
721.1 
 
 
 
Total Liabilities and Equity
1,085.1 
 
1,181.8 
 
 
 
Eliminations
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Inventories
(3.1)
 
(3.0)
 
 
 
Intercompany receivables
(1,449.4)
 
(1,486.2)
 
 
 
Other current assets
0.7 
 
0.4 
 
 
 
Total current assets
(1,451.8)
 
(1,488.8)
 
 
 
Investment in consolidated subsidiaries
(2,629.7)
 
(2,644.2)
 
 
 
Other assets
(21.0)
 
 
 
 
Total Assets
(4,102.5)
 
(4,133.0)
 
 
 
LIABILITIES
 
 
 
 
 
 
Trade accounts payable
0.3 
 
 
 
 
 
Intercompany payables
(1,452.5)
 
(1,489.2)
 
 
 
Other current liabilities
(19.4)
 
0.4 
 
 
 
Total current liabilities
(1,471.6)
 
(1,488.8)
 
 
 
Deferred income taxes
(0.3)
 
 
 
 
Other long-term liabilities
(0.9)
 
 
 
 
 
Total Liabilities
(1,472.8)
 
(1,488.8)
 
 
 
Hillenbrand Shareholders’ Equity
(2,629.7)
 
(2,644.2)
 
 
 
Stockholders' Equity Attributable to Parent [Abstract]
 
 
 
 
 
 
Total Shareholders’ Equity
(2,629.7)
 
(2,644.2)
 
 
 
Total Liabilities and Equity
$ (4,102.5)
 
$ (4,133.0)
 
 
 
Condensed Consolidating Information - Consolidating cash flow statement (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
$ 10.2 
$ 82.2 
Investing activities:
 
 
Capital expenditures
(11.9)
(11.4)
Proceeds from sales of property, plant, and equipment
0.5 
0.7 
Proceeds from warrant exercise
 
5.7 
Other, net
(1.1)
0.9 
Net cash used in investing activities
(12.5)
(4.1)
Financing activities:
 
 
Repayments on term loan
(4.5)
(5.0)
Proceeds from revolving credit facilities
254.4 
182.6 
Repayments on revolving credit facilities
(332.0)
(218.6)
Proceeds from unsecured Series A Notes, net of financing costs
99.6 
Proceeds from other borrowings
1.0 
Payment of dividends on common stock
(25.2)
(24.8)
Repurchases of common stock
(9.2)
(16.5)
Net proceeds on stock plans
3.4 
12.7 
Other, net
1.2 
0.1 
Net cash used in financing activities
(12.3)
(68.5)
Effect of exchange rates on cash and cash equivalents
(0.4)
(1.3)
Net cash flows
(15.0)
8.3 
At beginning of period
58.0 
42.7 
At end of period
43.0 
51.0 
Reportable legal entities |
Parent
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
12.7 
13.0 
Investing activities:
 
 
Capital expenditures
(0.8)
(0.8)
Proceeds from sales of property, plant, and equipment
 
Other, net
 
Net cash used in investing activities
(0.8)
(0.8)
Financing activities:
 
 
Repayments on term loan
(4.5)
(5.0)
Proceeds from revolving credit facilities
191.0 
158.0 
Repayments on revolving credit facilities
(268.5)
(137.5)
Proceeds from unsecured Series A Notes, net of financing costs
99.6 
 
Payment of dividends on common stock
(25.2)
(24.8)
Repurchases of common stock
(9.2)
(16.5)
Net proceeds on stock plans
3.4 
12.7 
Other, net
1.2 
0.9 
Net cash used in financing activities
(12.2)
(12.2)
Net cash flows
(0.3)
At beginning of period
0.4 
 
At end of period
0.1 
0.6 
Reportable legal entities |
Guarantors
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
84.8 
37.2 
Investing activities:
 
 
Capital expenditures
(7.2)
(6.4)
Proceeds from sales of property, plant, and equipment
0.5 
0.7 
Proceeds from warrant exercise
 
5.7 
Other, net
(0.9)
 
Net cash used in investing activities
(7.6)
Financing activities:
 
 
Payment of dividends - intercompany
(80.3)
(38.4)
Net cash used in financing activities
(80.3)
(38.4)
Net cash flows
(3.1)
(1.2)
At beginning of period
10.6 
 
At end of period
7.5 
7.5 
Reportable legal entities |
Non-Guarantors
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
(1.7)
79.3 
Investing activities:
 
 
Capital expenditures
(3.9)
(4.2)
Other, net
(0.2)
0.9 
Net cash used in investing activities
(4.1)
(3.3)
Financing activities:
 
 
Proceeds from revolving credit facilities
63.4 
24.6 
Repayments on revolving credit facilities
(63.5)
(81.1)
Proceeds from unsecured Series A Notes, net of financing costs
 
Proceeds from other borrowings
 
1.0 
Payment of dividends - intercompany
(5.3)
(8.9)
Other, net
(0.8)
Net cash used in financing activities
(5.4)
(65.2)
Effect of exchange rates on cash and cash equivalents
(0.4)
(1.3)
Net cash flows
(11.6)
9.5 
At beginning of period
47.0 
 
At end of period
35.4 
42.9 
Eliminations
 
 
Condensed Cash Flow Statements
 
 
Net cash provided by (used in) operating activities
(85.6)
(47.3)
Financing activities:
 
 
Payment of dividends - intercompany
85.6 
47.3 
Net cash used in financing activities
$ 85.6 
$ 47.3 
Restructuring - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Mar. 31, 2015
Mar. 31, 2015
Restructuring and Related Cost
 
 
Restructuring charges
$ 0.7 
$ 2.6 
Restructuring reserve, current
1.4 
1.4 
Corporate
 
 
Restructuring and Related Cost
 
 
Restructuring charges
0.2 
0.6 
Process Equipment Group
 
 
Restructuring and Related Cost
 
 
Restructuring charges
0.5 
0.8 
Operating expense |
Process Equipment Group
 
 
Restructuring and Related Cost
 
 
Restructuring charges
0.4 
0.7 
Cost of goods, segment |
Process Equipment Group
 
 
Restructuring and Related Cost
 
 
Restructuring charges
0.1 
0.1 
Cost of goods, segment |
Batesville
 
 
Restructuring and Related Cost
 
 
Restructuring charges
 
$ 1.2