Condensed Consolidating Information (Tables)

3 Months Ended

Dec. 31, 2013

Condensed Consolidating Information

Schedule of condensed consolidating statements of income

	Three months ended December 31, 2013														Three months ended December 31, 2012
	Parent			Guarantors			Non- Guarantors		Eliminations			Consolidated			Parent			Guarantors			Non- Guarantors		Eliminations			Consolidated
Net revenue	$	—		$	200.3		$	225.0	$	(40.4	)	$	384.9		$	—		$	198.7		$	148.2	$	(41.7	)	$	305.2
Cost of goods sold	—			102.5			166.6		(15.2		)	253.9			—			98.5			110.9		(14.7		)	194.7
Gross profit	—			97.8			58.4		(25.2		)	131.0			—			100.2			37.3		(27.0		)	110.5
Operating expenses	9.0			61.9			48.3		(25.2		)	94.0			18.1			60.8			34.5		(27.0		)	86.4
Operating profit	(9.0		)	35.9			10.1		—			37.0			(18.1		)	39.4			2.8		—			24.1
Interest expense	4.9			0.1			1.3		—			6.3			4.1			—			0.4		—			4.5
Other income (expense), net	(0.1		)	(0.7		)	0.7		—			(0.1		)	1.5			(0.9		)	0.3		—			0.9
Equity in net income (loss) of subsidiaries	28.6			1.9			—		(30.5		)	—			25.1			1.5			—		(26.6		)	—
Income (loss) before income taxes	14.6			37.0			9.5		(30.5		)	30.6			4.4			40.0			2.7		(26.6		)	20.5
Income tax expense (benefit)	(5.7		)	13.2			1.5		—			9.0			(9.9		)	14.4			1.4		—			5.9
Consolidated net income	20.3			23.8			8.0		(30.5		)	21.6			14.3			25.6			1.3		(26.6		)	14.6
Less: Net income attributable to noncontrolling interests	—			—			1.3		—			1.3			—			—			0.3		—			0.3
Net income (loss)(1)	$	20.3		$	23.8		$	6.7	$	(30.5	)	$	20.3		$	14.3		$	25.6		$	1.0	$	(26.6	)	$	14.3
Consolidated comprehensive income (loss)	$	31.8		$	24.5		$	18.7	$	(42.0	)	$	33.0		$	25.6		$	25.6		$	15.2	$	(40.5	)	$	25.9
Less: Comprehensive income attributable to noncontrolling interests	—			—			1.2		—			1.2			—			—			0.3		—			0.3
Comprehensive income (loss)(2)	$	31.8		$	24.5		$	17.5	$	(42.0	)	$	31.8		$	25.6		$	25.6		$	14.9	$	(40.5	)	$	25.6

(1) Net income attributable to Hillenbrand

(2) Comprehensive income attributable to Hillenbrand

Schedule of condensed consolidating balance sheets

	As of December 31, 2013											As of September 30, 2013
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated		Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Cash and equivalents	$	1.2	$	9.0	$	52.1	$	—		$	62.3	$	0.6	$	8.7	$	33.4	$	—		$	42.7
Trade receivables, net	—		92.7		96.9		—			189.6		—		97.0		116.4		—			213.4
Unbilled receivables from long-term manufacturing contracts	—		9.6		121.4		—			131.0		—		15.2		126.9		—			142.1
Inventories	—		75.6		105.9		(2.9		)	178.6		—		72.4		107.8		(2.7		)	177.5
Deferred income taxes	9.1		11.4		2.9		—			23.4		9.1		8.3		4.9		—			22.3
Prepaid expense	1.5		4.6		22.8		—			28.9		1.0		4.4		15.0		—			20.4
Intercompany receivables	238.3		1,019.9		71.7		(1,329.9		)	—		222.5		1,011.3		33.3		(1,267.1		)	—
Other current assets	0.5		2.7		14.3		(0.8		)	16.7		0.4		4.3		17.0		(0.7		)	21.0
Total current assets	250.6		1,225.5		488.0		(1,333.6		)	630.5		233.6		1,221.6		454.7		(1,270.5		)	639.4
Property, plant and equipment, net	7.4		67.8		96.7		—			171.9		7.4		69.0		95.5		—			171.9
Intangible assets, net	2.6		191.6		361.9		—			556.1		2.7		194.3		361.6		—			558.6
Goodwill	—		209.1		390.3		—			599.4		—		209.3		376.5		—			585.8
Investment in consolidated subsidiaries	1,987.2		644.0		—		(2,631.2		)	—		1,938.9		644.0		—		(2,582.9		)	—
Other assets	13.1		19.4		13.5		—			46.0		13.9		19.0		15.5		(0.9		)	47.5
Total Assets	$	2,260.9	$	2,357.4	$	1,350.4	$	(3,964.8	)	$	2,003.9	$	2,196.5	$	2,357.2	$	1,303.8	$	(3,854.3	)	$	2,003.2
Trade accounts payable	$	0.3	$	21.0	$	148.3	$	—		$	169.6	$	0.6	$	25.8	$	156.8	$	—		$	183.2
Liabilities from long-term manufacturing contracts and advances	—		13.8		83.3		—			97.1		—		12.3		68.6		—			80.9
Current portion of long-term debt	11.2		—		—		—			11.2		10.0		—		—		—			10.0
Accrued compensation	1.0		14.7		28.4		(0.8		)	43.3		3.6		22.3		33.7		—			59.6
Deferred income taxes	—		—		11.0		—			11.0		—		—		12.1		—			12.1
Intercompany payables	1,091.0		233.1		8.7		(1,332.8		)	—		1,048.1		221.7		—		(1,269.8		)	—
Other current liabilities	5.0		62.6		50.0		—			117.6		3.6		69.3		47.5		(0.7		)	119.7
Total current liabilities	1,108.5		345.2		329.7		(1,333.6		)	449.8		1,065.9		351.4		318.7		(1,270.5		)	465.5
Long-term debt	555.1		—		85.4		—			640.5		562.3		—		92.0		—			654.3
Accrued pension and postretirement healthcare	1.0		84.9		107.1		—			193.0		—		86.1		104.2		—			190.3
Deferred income taxes	—		21.8		52.2		—			74.0		—		46.2		30.1		(0.9		)	75.4
Other long-term liabilities	—		23.6		16.2		—			39.8		—		24.4		17.0		—			41.4
Total Liabilities	1,664.6		475.5		590.6		(1,333.6		)	1,397.1		1,628.2		508.1		562.0		(1,271.4		)	1,426.9
Total Hillenbrand Shareholders’ Equity	596.3		1,881.9		749.3		(2,631.2		)	596.3		568.3		1,849.1		733.8		(2,582.9		)	568.3
Noncontrolling interests	—		—		10.5		—			10.5		—		—		8.0		—			8.0
Total Equity	596.3		1,881.9		759.8		(2,631.2		)	606.8		568.3		1,849.1		741.8		(2,582.9		)	576.3
Total Liabilities and Equity	$	2,260.9	$	2,357.4	$	1,350.4	$	(3,964.8	)	$	2,003.9	$	2,196.5	$	2,357.2	$	1,303.8	$	(3,854.3	)	$	2,003.2

Schedule of condensed consolidating statements of cash flows

	Three months ended December 31, 2013														Three months ended December 31, 2012
	Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	11.8		$	2.2		$	31.9		$	—	$	45.9		$	(12.1	)	$	26.9		$	4.9		$	—	$	19.7
Investing activities:
Capital expenditures	(0.3		)	(1.9		)	(3.4		)	—		(5.6		)	(0.9		)	(2.7		)	(2.0		)	—		(5.6		)
Proceeds from property, plant, and equipment	—			—			—			—		—			1.1			0.1			—			—		1.2
Proceeds from sales of investments	—			—			—			—		—			1.4			—			—			—		1.4
Acquisition of business, net of cash acquired	—			—			—			—		—			(404.2		)	(0.5		)	(10.9		)	—		(415.6		)
Other, net	(0.6		)	—			—			—		(0.6		)	—			—			—			—		—
Net cash used in investing activities	(0.9		)	(1.9		)	(3.4		)	—		(6.2		)	(402.6		)	(3.1		)	(12.9		)	—		(418.6		)
Financing activities:
Proceeds from term loan	—			—			—			—		—			200.0			—			—			—		200.0
Repayments on term loan	(2.5		)	—			—			—		(2.5		)	(2.5		)	—			—			—		(2.5		)
Proceeds from revolving credit facilities, net of financing costs	76.5			—			17.7			—		94.2			484.1			—			51.2			—		535.3
Repayments on revolving credit facilities	(80.0		)	—			(25.9		)	—		(105.9		)	(238.0		)	—			—			—		(238.0		)
Payment of dividends on common stock	(12.4		)	—			—			—		(12.4		)	(12.1		)	—			—			—		(12.1		)
Net proceeds (payments) on stock plans	7.6			—			—			—		7.6			(2.7		)	—			—			—		(2.7		)
Other, net	0.5			—			(0.8		)	—		(0.3		)	—			—			—			—		—
Net cash (used in) provided by financing activities	(10.3		)	—			(9.0		)	—		(19.3		)	428.8			—			51.2			—		480.0
Effect of exchange rates on cash and cash equivalents	—			—			(0.8		)	—		(0.8		)	—			—			0.8			—		0.8
Net cash flow	0.6			0.3			18.7			—		19.6			14.1			23.8			44.0			—		81.9
Cash and equivalents at beginning of period	0.6			8.7			33.4			—		42.7			3.9			6.3			10.0			—		20.2
Cash and equivalents at end of period	$	1.2		$	9.0		$	52.1		$	—	$	62.3		$	18.0		$	30.1		$	54.0		$	—	$	102.1