10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended December 31, 2016

Commission File No. 001-33794

HILLENBRAND, INC.

(Exact name of registrant as specified in its charter)

Indiana (State of incorporation)	26-1342272 (I.R.S. Employer Identification No.)
One Batesville Boulevard
Batesville, IN	47006
(Address of principal executive offices)	(Zip Code)

(812) 934-7500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ý  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No ý

The registrant had 63,692,587 shares of common stock, no par value per share, outstanding as of January 27, 2017.

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HILLENBRAND, INC.

INDEX TO FORM 10-Q

		Page
	PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Income for the Three Months Ended December 31, 2016 and 2015	2
	Consolidated Statements of Comprehensive Income for the Three Months Ended December 31, 2016 and 2015	3
	Consolidated Balance Sheets at December 31, 2016, and September 30, 2016	4
	Consolidated Statements of Cash Flow for the Three Months Ended December 31, 2016 and 2015	5
	Condensed Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30
	PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 6.	Exhibits	30
SIGNATURES

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PART I — FINANCIAL INFORMATION

Item 1.FINANCIAL STATEMENTS

Hillenbrand, Inc.

Consolidated Statements of Income (Unaudited)

(in millions, except per share data)

	Three Months Ended December 31,
	2016			2015
Net revenue	$	356.1		$	351.7
Cost of goods sold	230.1			223.5
Gross profit	126.0			128.2
Operating expenses	82.8			82.1
Amortization expense	7.2			9.8
Interest expense	6.1			5.9
Other (expense) income, net	(1.3		)	(0.7		)
Income before income taxes	28.6			29.7
Income tax expense	6.7			8.7
Consolidated net income	21.9			21.0
Less: Net income attributable to noncontrolling interests	0.2			1.0
Net income(1)	$	21.7		$	20.0
Net income(1)  — per share of common stock:
Basic earnings per share	$	0.34		$	0.32
Diluted earnings per share	$	0.34		$	0.31
Weighted average shares outstanding (basic)	63.7			63.2
Weighted average shares outstanding (diluted)	64.1			63.8
Cash dividends declared per share	$	0.2050		$	0.2025

(1) Net income attributable to Hillenbrand

See Condensed Notes to Consolidated Financial Statements

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Hillenbrand, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

(in millions)

	Three Months Ended December 31,
	2016			2015
Consolidated net income	$	21.9		$	21.0
Changes in other comprehensive income (loss), net of tax
Currency translation adjustment	(20.9		)	(15.2		)
Pension and postretirement (net of tax of $2.5 and $0.4)	4.4			0.7
Change in net unrealized gain (loss) on derivative instruments (net of tax of $0.3 and $—)	0.4			0.6
Total changes in other comprehensive income (loss), net of tax	(16.1		)	(13.9		)
Consolidated comprehensive income	5.8			7.1
Less: Comprehensive income attributable to noncontrolling interests	0.1			0.9
Comprehensive income (2)	$	5.7		$	6.2

(2) Comprehensive income attributable to Hillenbrand

See Condensed Notes to Consolidated Financial Statements

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Hillenbrand, Inc.

Consolidated Balance Sheets (Unaudited)

(in millions) 

	December 31, 2016			September 30, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	46.6		$	52.0
Trade receivables, net	178.9			205.0
Unbilled receivables from long-term manufacturing contracts	138.2			125.8
Inventories	153.9			153.1
Deferred income taxes	—			23.9
Prepaid expenses	19.2			18.2
Other current assets	23.4			22.3
Total current assets	560.2			600.3
Property, plant, and equipment, net	146.0			152.5
Intangible assets, net	519.9			541.5
Goodwill	616.3			634.3
Other assets	35.3			31.1
Total Assets	$	1,877.7		$	1,959.7
LIABILITIES
Current Liabilities
Trade accounts payable	$	120.3		$	135.7
Liabilities from long-term manufacturing contracts and advances	77.5			78.6
Current portion of long-term debt	16.4			13.8
Accrued compensation	47.6			57.3
Deferred income taxes	—			22.8
Other current liabilities	123.4			125.5
Total current liabilities	385.2			433.7
Long-term debt	637.9			595.1
Accrued pension and postretirement healthcare	139.6			232.7
Deferred income taxes	36.8			22.6
Other long-term liabilities	27.7			29.4
Total Liabilities	1,227.2			1,313.5
Commitments and contingencies (Note 14)
SHAREHOLDERS’ EQUITY
Common stock, no par value (63.8 and 63.7 shares issued, 63.7 and 63.0 shares outstanding)	—			—
Additional paid-in capital	344.1			348.7
Retained earnings	442.1			433.3
Treasury stock (0.1 and 0.7 shares)	(3.9		)	(19.9		)
Accumulated other comprehensive loss	(145.8		)	(129.8		)
Hillenbrand Shareholders’ Equity	636.5			632.3
Noncontrolling interests	14.0			13.9
Total Shareholders’ Equity	650.5			646.2
Total Liabilities and Equity	$	1,877.7		$	1,959.7

See Condensed Notes to Consolidated Financial Statements

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Hillenbrand, Inc.

Consolidated Statements of Cash Flow (Unaudited)

(in millions)

	Three Months Ended December 31,
	2016			2015
Operating Activities
Consolidated net income	$	21.9		$	21.0
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	15.0			16.0
Deferred income taxes	11.4			0.5
Share-based compensation	2.6			0.6
Trade accounts receivable and receivables on long-term manufacturing contracts	4.2			34.6
Inventories	(4.7		)	(7.6		)
Prepaid expenses and other current assets	(3.3		)	4.4
Trade accounts payable	(10.3		)	(1.6		)
Accrued expenses and other current liabilities	4.0			(33.5		)
Income taxes payable	(8.8		)	(5.0		)
Defined benefit plan and postretirement funding	(82.9		)	(3.1		)
Defined benefit plan and postretirement expense	1.7			3.1
Other, net	0.5			6.3
Net cash (used in) provided by operating activities	(48.7		)	35.7
Investing Activities
Capital expenditures	(4.6		)	(6.5		)
Proceeds from sales of property, plant, and equipment	—			0.1
Acquisition of business, net of cash acquired	—			(105.7		)
Other, net	0.1			—
Net cash used in investing activities	(4.5		)	(112.1		)
Financing Activities
Repayments on term loan	(3.4		)	(3.4		)
Proceeds from revolving credit facilities	182.1			182.3
Repayments on revolving credit facilities	(125.9		)	(81.5		)
Payments of dividends on common stock	(13.0		)	(12.7		)
Repurchases of common stock	—			(3.0		)
Net proceeds (payments) on stock plans	8.6			(0.8		)
Other, net	1.1			0.8
Net cash provided by financing activities	49.5			81.7
Effect of exchange rates on cash and cash equivalents	(1.7		)	1.5
Net cash flows	(5.4		)	6.8
Cash and cash equivalents:
At beginning of period	52.0			48.3
At end of period	$	46.6		$	55.1

See Condensed Notes to Consolidated Financial Statements

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Hillenbrand, Inc.

Condensed Notes to Consolidated Financial Statements (Unaudited)

(in millions, except share and per share data)

1. Background and Basis of Presentation

Hillenbrand, Inc. (“Hillenbrand”) is a global diversified industrial company with multiple market-leading brands that serve a wide variety of industries across the globe.  We strive to provide superior return for our shareholders, exceptional value for our customers, and great professional opportunities for our employees through deployment of the Hillenbrand Operating Model (“HOM”). The HOM is a consistent and repeatable framework designed to produce sustainable and predictable results.  The HOM describes our mission, vision, values, and mindset as leaders; applies our management practices in Strategy Management, Segmentation, Lean, Talent Development, and Acquisitions; and prescribes three steps (Understand, Focus and Grow) designed to make our businesses both bigger and better.  Our goal is to continue developing Hillenbrand as a world-class global diversified industrial company through the deployment of the HOM. Hillenbrand is composed of two segments:  the Process Equipment Group and Batesville^®.  The Process Equipment Group businesses design, develop, manufacture, and service highly engineered industrial equipment around the world.  Batesville is a recognized leader in the North American death care industry.  “Hillenbrand,” “the Company,” “we,” “us,” “our,” and similar words refer to Hillenbrand and its subsidiaries.

The accompanying unaudited consolidated financial statements include the accounts of Hillenbrand and its subsidiaries.  They also include two minor subsidiaries where the Company’s ownership percentage is less than 100%.  The Company’s fiscal year ends on September 30.  Unless otherwise stated, references to years relate to fiscal years.

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, 2016, as filed with the SEC.  The September 30, 2016 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 incentive compensation programs.

2. 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 2016.

Recently Adopted Accounting Standards

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  ASU 2014-12 states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition.  ASU 2014-12 became effective and was adopted for our fiscal year beginning October 1, 2016.  The adoption of this standard did not have a significant impact on our consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

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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 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. The new standard amends the consolidation guidance in ASC 810 and significantly changes the consolidation analysis required under current generally accepted accounting principles. ASU 2015-02 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant 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. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. This standard permits an entity to defer and present debt issuance costs related to line-of-credit arrangements as an asset and to subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. These new standards do not affect the recognition and measurement of debt issuance costs. ASU 2015-03 and ASU 2015-15 became effective and were retrospectively adopted for our fiscal year beginning October 1, 2016. The retrospective adoption resulted in $1.2 of debt issuance costs being reclassified from other assets to a reduction of the carrying value of long-term debt as of September 30, 2016.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software. ASU 2015-05 helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations. ASU 2015-16 simplifies the accounting for adjustments made to provisional amounts. The amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is also required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In November 2015, the FASB issued ASU 2015-17, Income Taxes. ASU 2015-17 requires that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position in order to simplify the presentation of deferred income taxes. ASU 2015-17 was early adopted for our fiscal year beginning October 1, 2016.  The adoption of this standard resulted in a reclassification of $2.7 from current deferred income taxes to non-current deferred income taxes on the Consolidated Balance Sheets as of December 31, 2016. No prior periods were retrospectively adjusted.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires significant disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 will be effective for our fiscal year beginning October 1, 2018, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption, with early adoption permitted on October 1, 2017. We have not yet selected a

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transition method, and we have begun the assessment process and are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements.

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

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-17 will be effective for our fiscal year beginning on October 1, 2018, with early adoption permitted. We expect the adoption of ASU 2016-18 to have a financial statement presentation and disclosure impact only.

3. Business Acquisitions

We incurred $0.3 and $1.7 of business acquisition and integration costs during the three months ended December 31, 2016 and 2015 recorded in operating expenses.

Abel

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

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

Red Valve

On February 1, 2016, we completed the acquisition of Red Valve Company, Inc. (“Red Valve”) for $130.4 in cash, net of certain adjustments. We utilized borrowings under our Facility to fund this acquisition. Based in Carnegie, Pennsylvania, Red Valve is a global leader in highly-engineered valves designed to operate in the harshest municipal and industrial wastewater environments. Its products support mission critical applications in water/wastewater, power and mining, and other general industrial markets. The results of Red Valve are reported in our Process Equipment Group segment for the relevant periods.

Based on the preliminary purchase allocation, we recorded goodwill of $60, and acquired identifiable intangible assets of $61, which consisted of $4 of trade names not subject to amortization, $8 of developed technology, $1 of backlog, and $48 of customer relationships. Goodwill is expected to be deductible for tax purposes. Supplemental proforma information has not been provided as the acquisition did not have a material impact on consolidated results of operations.

Both of these acquisitions continue Hillenbrand’s strategy to transform into a world-class global diversified industrial company by increasing our ability to expand into new markets and geographies within the highly attractive flow control space.

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4. Supplemental Balance Sheet Information

	December 31, 2016		September 30, 2016
Trade accounts receivable reserves	$	20.8	$	21.0
Accumulated depreciation on property, plant, and equipment	$	300.7	$	299.4
Accumulated amortization on intangible assets	$	178.4	$	174.2
Inventories:
Raw materials and components	$	49.7	$	51.4
Work in process	54.3		54.0
Finished goods	49.9		47.7
Total inventories	$	153.9	$	153.1

5. Intangible Assets and Goodwill

Intangible Assets

Intangible assets are stated at the lower of cost or fair value.  With the exception of most trade names, intangible assets are amortized on a straight-line basis over periods ranging from three to 21 years, representing the period over which we expect to receive future economic benefits from these assets.  We assess the carrying value of most trade names annually, or more often if events or changes in circumstances indicate there may be impairment.  

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2016 and September 30, 2016.

	December 31, 2016					September 30, 2016
	Cost		Accumulated Amortization			Cost		Accumulated Amortization
Finite-lived assets:
Trade names	$	0.2	$	(0.1	)	$	0.2	$	(0.1	)
Customer relationships	448.1		(104.0		)	459.5		(100.7		)
Technology, including patents	75.1		(34.0		)	77.9		(33.3		)
Software	47.3		(40.0		)	47.4		(39.8		)
Other	0.4		(0.3		)	0.4		(0.3		)
	571.1		(178.4		)	585.4		(174.2		)
Indefinite-lived assets:
Trade names	127.2		—			130.3		—
Total	$	698.3	$	(178.4	)	$	715.7	$	(174.2	)

The net change in intangible assets during the three months ended December 31, 2016 was driven by normal amortization and foreign currency adjustments.

Goodwill

Goodwill is not amortized, but is subject to annual impairment tests.  Goodwill has been assigned to reporting units.  We assess the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment.  Impairment testing is performed at a reporting unit level.

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	Process Equipment Group			Batesville		Total
Balance September 30, 2016	$	626.0		$	8.3	$	634.3
Foreign currency adjustments	(18.0		)	—		(18.0		)
Balance December 31, 2016	$	608.0		$	8.3	$	616.3

6. Financing Agreements

	December 31, 2016		September 30, 2016
$700 revolving credit facility (excluding outstanding letters of credit)	$	245.7	$	198.5
$180 term loan	158.6		162.0
$150 senior unsecured notes, net of discount (1)	148.6		148.5
$100 Series A Notes (2)	99.6		99.6
Other	1.8		0.3
Total debt	654.3		608.9
Less: current portion	16.4		13.8
Total long-term debt	$	637.9	$	595.1
(1) Includes debt issuance costs of $0.7 and $0.8 at December 31, 2016 and September 30, 2016.
(2) Includes debt issuance costs of $0.4 and $0.4 at December 31, 2016 and September 30, 2016.

With respect to the Facility, as of December 31, 2016, we had $9.3 in outstanding letters of credit issued and $445.0 of maximum borrowing capacity. $309.6 of borrowing capacity is immediately available based on our leverage covenant at December 31, 2016, with additional amounts available in the event of a qualifying acquisition.  The weighted-average interest rates on borrowings under the revolving credit facility were 1.40% and 1.21% for the three months ended December 31, 2016 and 2015. The weighted average facility fee was 0.23% and 0.18% for the three months ended December 31, 2016 and 2015. The weighted average interest rate on the term loan was 1.94% and 1.46% for the three months ended December 31, 2016 and 2015. We have interest rate swaps on $50.0 of outstanding borrowings under the Facility in order to manage exposure to our variable interest payments.

In the normal course of business, the Process Equipment Group provides to certain customers bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations. This form of trade finance is customary in the industry and, as a result, we are required to maintain adequate capacity to provide the guarantees. As of December 31, 2016, we had credit arrangements totaling $202.0, under which $106.9 was utilized for this purpose. These arrangements include our €150.0 Syndicated Letter of Guarantee Facility (as amended, the “LG Facility”) and other ancillary credit facilities.

The availability of borrowings or guarantees under the Facility, the LG Facility, and the Private Shelf Agreement, dated as of December 6, 2012 (the “Shelf Agreement”), among the Company, Prudential Investment Management and each Prudential Affiliate (as defined thereunder), governing the 4.60% Series A unsecured notes (the “Series A Notes”), is subject to our ability to meet certain conditions including compliance with covenants, absence of default, and continued accuracy of certain representations and warranties. Financial covenants include a maximum ratio of Indebtedness to EBITDA (as defined in the agreements) of 3.5 to 1.0 and a minimum ratio of EBITDA (as defined in the agreements) to interest expense of 3.5 to 1.0. As of December 31, 2016, we were in compliance with all covenants.

The Facility, senior unsecured notes, Series A Notes, and LG Facility are fully and unconditionally guaranteed by certain of the

Company’s domestic subsidiaries.

We had restricted cash of $0.8 and $0.8 included in other current assets in the Consolidated Balance Sheets at December 31, 2016 and September 30, 2016.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest, which requires that debt issuance costs related a 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. The Company adopted ASU 2015-03 for the three months ended December 31, 2016. As of December 31, 2016 and September 30, 2016, there were $1.1 and$1.2 in debt issuance costs recorded as a reduction in

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the carrying value of the related debt liability under the senior unsecured notes and Series A Notes. The $1.1 in debt issuance costs as of December 31, 2016 will be amortized over the remaining term of the senior unsecured notes and Series A Notes. The retrospective adoption resulted in $1.2 of debt issuance costs being reclassified from other assets to a reduction of the carrying value of long-term debt as of September 30, 2016. The Company also adopted ASU 2015-15, Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, and elected not to reclassify the debt issuance costs related to line-of-credit arrangements for the Facility and LG Facility.

7. Retirement Benefits

Defined Benefit Plans

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Three Months Ended December 31,						Three Months Ended December 31,
	2016			2015			2016			2015
Service costs	$	1.0		$	1.0		$	0.4		$	0.6
Interest costs	2.2			2.4			0.2			0.6
Expected return on plan assets	(3.3		)	(2.4		)	(0.1		)	(0.3		)
Amortization of unrecognized prior service costs, net	0.1			0.1			—			—
Amortization of net loss	1.1			0.9			—			0.2
Net pension costs	$	1.1		$	2.0		$	0.5		$	1.1

During the first quarter of 2017, we made an $80.0 contribution to our U.S. defined benefit pension plan (the “Plan”) using cash on hand and funds borrowed from our Facility. Although this action increased Plan assets and reduces expected 2017 pension expense, the majority of the pension expense savings in 2017 from this action is expected to be offset by the additional interest expense on the funds borrowed and certain tax effects from the transaction.

Also during the first quarter of 2017, we began implementing a plan to transition our non-bargaining U.S. employees from a defined benefit-based model to a defined contribution structure over a three-year sunset period. This change caused a remeasurement for the Plan for the affected population. The remeasurement did not cause a material change as the assumptions did not materially differ from the assumptions at September 30, 2016.

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

Defined Contribution Plans — Expenses related to our defined contribution plans were $2.6 and $2.3 for the three months ended December 31, 2016 and 2015.

8. Income Taxes

The effective tax rates for the three months ended December 31, 2016 and 2015 were 23.4% and 29.3%. The decrease in the effective tax rate during the three months ended December 31, 2016 was primarily due to the tax benefit recognized on share-based compensation and the favorable geographic mix of pretax income. These favorable items were partially offset by a reduction of the tax benefit from the domestic manufacturer’s deduction that resulted from the funding of our U.S. defined benefit pension plan.

9. 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 December 31, 2016 and 2015, potential dilutive effects, representing approximately 600,000 and 1,300,000 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.

11

	Three Months Ended December 31,
	2016		2015
Net income(1)	$	21.7	$	20.0
Weighted average shares outstanding (basic - in millions)	63.7		63.2
Effect of dilutive stock options and other unvested equity awards (in millions)	0.4		0.6
Weighted average shares outstanding (diluted - in millions)	64.1		63.8
Basic earnings per share	$	0.34	$	0.32
Diluted earnings per share	$	0.34	$	0.31
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)	0.7		0.5

(1) Net income attributable to Hillenbrand

10. Shareholders’ Equity

During the three months ended December 31, 2016, we paid approximately $13.0 of cash dividends.  In connection with our share-based compensation plans discussed further in Note 12, we also issued approximately 616,000 shares of common stock, of which approximately 526,000 shares were from treasury stock.

11. 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, 2015	$	(54.4	)	$	(52.1	)	$	(1.4	)	$	(107.9	)
Other comprehensive income before reclassifications
Before tax amount	—			(15.1		)	(0.2		)	(15.3		)	$	(0.1	)	$	(15.4	)
Tax expense	—			—			0.2			0.2			—			0.2
After tax amount	—			(15.1		)	—			(15.1		)	(0.1		)	(15.2		)
Amounts reclassified from accumulated other comprehensive income(1)	0.7			—			0.6			1.3			—			1.3
Net current period other comprehensive income (loss)	0.7			(15.1		)	0.6			(13.8		)	$	(0.1	)	$	(13.9	)
Balance at December 31, 2015	$	(53.7	)	$	(67.2	)	$	(0.8	)	$	(121.7	)

 (1)  Amounts are net of tax.

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	Pension and Postretirement			Currency Translation			Net Unrealized Gain (Loss) on Derivative Instruments			Total Attributable to Hillenbrand, Inc.			Noncontrolling Interests			Total
Balance at September 30, 2016	$	(67.5	)	$	(61.6	)	$	(0.7	)	$	(129.8	)
Other comprehensive income before reclassifications
Before tax amount	5.7			(20.8		)	0.6			(14.5		)	$	(0.1	)	$	(14.6	)
Tax expense	(2.1		)	—			(0.3		)	(2.4		)	—			(2.4		)
After tax amount	3.6			(20.8		)	0.3			(16.9		)	(0.1		)	(17.0		)
Amounts reclassified from accumulated other comprehensive income(1)	0.8			—			0.1			0.9			—			0.9
Net current period other comprehensive income (loss)	4.4			(20.8		)	0.4			(16.0		)	$	(0.1	)	$	(16.1	)
Balance at December 31, 2016	$	(63.1	)	$	(82.4	)	$	(0.3	)	$	(145.8	)

(1)  Amounts are net of tax.

Reclassifications out of Accumulated Other Comprehensive Income include: 

	Three Months Ended December 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	$	—	$	—	$	0.5	$	0.5
Cost of goods sold	0.6		0.1		—		0.7
Operating expenses	0.2		—		—		0.2
Other income (expense), net	—		—		0.3		0.3
Total before tax	$	0.8	$	0.1	$	0.8	$	1.7
Tax expense							(0.4		)
Total reclassifications for the period, net of tax							$	1.3

	Three Months Ended December 31, 2016
	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	$	—	$	—	$	0.1	$	0.1
Cost of goods sold	0.8		0.1		—		0.9
Operating expenses	0.3		—		—		0.3
Other income (expense), net	—		—		0.1		0.1
Total before tax	$	1.1	$	0.1	$	0.2	$	1.4
Tax expense							(0.5		)
Total reclassifications for the period, net of tax							$	0.9

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7).

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12. Share-Based Compensation

	Three Months Ended December 31,
	2016		2015
Share-based compensation costs	$	2.6	$	0.6
Less impact of income tax benefit	1.0		0.2
Share-based compensation costs, net of tax	$	1.6	$	0.4

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. Relative total shareholder return is determined by comparing our total shareholder return during a three-year period to the respective total shareholder returns of companies in a designated performance peer group of 16 companies. Creation of shareholder value is measured by the cumulative cash returns and final period net operating profit after tax compared to the established hurdle rate 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 three months ended December 31, 2016, we made the following grants:

	Number of Units
Stock options	473,658
Time-based stock awards	35,329
Performance-based stock awards (maximum that can be earned)	299,429

Stock options granted during fiscal 2017 had a weighted-average exercise price of $36.08 and a weighted-average grant date fair value of $8.37.  Our time-based stock awards and performance-based stock awards granted during fiscal 2017 had weighted-average grant date fair values of $36.15 and $39.70.  Included in the performance-based stock awards granted during 2017 are 156,994 units whose payout level is based upon the Company’s relative total shareholder return over the three-year measurement period, as described above.  These units will be expensed on a straight-line basis over the measurement period and are not subsequently adjusted after the grant date.

13. Other Income (Expense), Net

	Three Months Ended December 31,
	2016			2015
Equity in net income (loss) of affiliates	$	0.7		$	(0.4	)
Foreign currency exchange loss, net	(0.8		)	(0.1		)
Other, net	(1.2		)	(0.2		)
Other income (expense), net	$	(1.3	)	$	(0.7	)

14. Commitments and Contingencies

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

Claims other than employment and employment-related matters have deductibles and self-funded retentions up to $0.5 per occurrence or per claim, depending upon the type of coverage and policy period.  Outside insurance companies and third-party claims administrators assist in establishing individual claim reserves, and an independent outside actuary provides estimates of

14

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.

15. 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 December 31,		Fair Value at December 31, 2016 Using Inputs Considered as:
	2016		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	46.6	$	46.6	$	—	$	—
Investments in rabbi trust	4.2		4.2		—		—
Derivative instruments	2.0		—		2.0		—
Liabilities:
$150 senior unsecured notes	149.3		160.5		—		—
Revolving credit facility	245.7		—		245.7		—
Term loan	158.6		—		158.6		—
$100 Series A Notes	100.0		—		104.9		—
Derivative instruments	5.4		—		5.4		—

The fair values of the revolving credit facility and term loan approximated carrying value at December 31, 2016.  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 foreign currency derivatives was $202.7 at December 31, 2016. The derivatives are included in other current assets and other current liabilities on the balance sheet.

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16. Segment and Geographical Information

	Three Months Ended December 31,
	2016			2015
Net revenue
Process Equipment Group	$	221.6		$	214.0
Batesville	134.5			137.7
Total	$	356.1		$	351.7
Adjusted EBITDA
Process Equipment Group	$	32.7		$	33.0
Batesville	31.0			31.8
Corporate	(7.3		)	(7.0		)
Net revenue (1)
United States	$	201.3		$	198.9
Germany	104.4			93.4
All other foreign business units	50.4			59.4
Total	$	356.1		$	351.7

(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.

	December 31, 2016		September 30, 2016
Total assets assigned
Process Equipment Group	$	1,640.9	$	1,694.6
Batesville	205.8		211.8
Corporate	31.0		53.3
Total	$	1,877.7	$	1,959.7
Tangible long-lived assets, net
United States	$	86.1	$	89.5
Germany	33.7		35.8
All other foreign business units	26.2		27.2
Total	$	146.0	$	152.5

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The following schedule reconciles segment adjusted EBITDA to consolidated net income.

	Three Months Ended December 31,
	2016			2015
Adjusted EBITDA:
Process Equipment Group	$	32.7		$	33.0
Batesville	31.0			31.8
Corporate	(7.3		)	(7.0		)
Less:
Interest income	(0.2		)	(0.3		)
Interest expense	6.1			5.9
Income tax expense	6.7			8.7
Depreciation and amortization	15.0			16.0
Business acquisition and integration	0.3			1.7
Inventory step-up	—			1.4
Restructuring and restructuring related	6.6			3.4
Consolidated net income	$	21.9		$	21.0

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17. 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 December 31, 2016														Three Months Ended December 31, 2015
	Parent			Guarantors		Non- Guarantors			Eliminations			Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net revenue	$	—		$	202.7	$	202.9		$	(49.5	)	$	356.1		$	—		$	197.3		$	205.2		$	(50.8	)	$	351.7
Cost of goods sold	—			109.2		145.5			(24.6		)	230.1			—			102.2			146.7			(25.4		)	223.5
Gross profit	—			93.5		57.4			(24.9		)	126.0			—			95.1			58.5			(25.4		)	128.2
Operating expenses	9.6			58.7		39.4			(24.9		)	82.8			7.2			60.1			40.2			(25.4		)	82.1
Amortization expense	—			3.4		3.8			—			7.2			—			2.3			7.5			—			9.8
Interest expense	5.4			—		0.7			—			6.1			5.2			—			0.7			—			5.9
Other income (expense), net	—			—		(1.3		)	—			(1.3		)	0.1			(1.0		)	0.2			—			(0.7		)
Equity in net income (loss) of subsidiaries	28.8			2.2		—			(31.0		)	—			26.4			2.2			—			(28.6		)	—
Income (loss) before income taxes	13.8			33.6		12.2			(31.0		)	28.6			14.1			33.9			10.3			(28.6		)	29.7
Income tax expense (benefit)	(7.9		)	11.7		2.9			—			6.7			(5.9		)	12.0			2.6			—			8.7
Consolidated net income	21.7			21.9		9.3			(31.0		)	21.9			20.0			21.9			7.7			(28.6		)	21.0
Less: Net income attributable to
noncontrolling interests	—			—		0.2			—			0.2			—			—			1.0			—			1.0
Net income (loss) (1)	$	21.7		$	21.9	$	9.1		$	(31.0	)	$	21.7		$	20.0		$	21.9		$	6.7		$	(28.6	)	$	20.0
Consolidated comprehensive income (loss)	$	5.7		$	21.5	$	(11.6	)	$	(9.8	)	$	5.8		$	6.2		$	30.8		$	(6.8	)	$	(23.1	)	$	7.1
Less: Comprehensive income attributable
to noncontrolling interests	—			—		0.1			—			0.1			—			—			0.9			—			0.9
Comprehensive income (loss) (2)	$	5.7		$	21.5	$	(11.7	)	$	(9.8	)	$	5.7		$	6.2		$	30.8		$	(7.7	)	$	(23.1	)	$	6.2

(1) Net income attributable to Hillenbrand

(2) Comprehensive income attributable to Hillenbrand

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Condensed Consolidating Balance Sheets

	December 31, 2016											September 30, 2016
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated		Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Cash and cash equivalents	$	—	$	7.2	$	39.4	$	—		$	46.6	$	4.4	$	5.6	$	42.0	$	—		$	52.0
Trade receivables, net	—		105.8		73.1		—			178.9		—		120.6		84.4		—			205.0
Unbilled receivables from long-term
manufacturing contracts	—		10.2		128.0		—			138.2		—		10.6		115.2		—			125.8
Inventories	—		73.6		82.9		(2.6		)	153.9		—		69.8		86.1		(2.8		)	153.1
Deferred income taxes	—		—		—		—			—		1.6		17.4		—		4.9			23.9
Prepaid expense	2.7		6.7		9.8		—			19.2		2.2		6.5		9.5		—			18.2
Intercompany receivables	—		974.3		84.6		(1,058.9		)	—		—		1,003.1		97.4		(1,100.5		)	—
Other current assets	5.3		1.5		16.3		0.3			23.4		4.6		1.5		15.9		0.3			22.3
Total current assets	8.0		1,179.3		434.1		(1,061.2		)	560.2		12.8		1,235.1		450.5		(1,098.1		)	600.3
Property, plant and equipment, net	4.8		63.8		77.4		—			146.0		4.9		65.7		81.9		—			152.5
Intangible assets, net	3.9		221.4		294.6		—			519.9		4.1		220.4		317.0		—			541.5
Goodwill	—		284.3		332.0		—			616.3		—		271.8		362.5		—			634.3
Investment in consolidated subsidiaries	2,169.1		664.1		—		(2,833.2		)	—		2,143.4		820.2		—		(2,963.6		)	—
Other assets	24.6		22.8		3.8		(15.9		)	35.3		18.9		22.7		0.8		(11.3		)	31.1
Total Assets	$	2,210.4	$	2,435.7	$	1,141.9	$	(3,910.3	)	$	1,877.7	$	2,184.1	$	2,635.9	$	1,212.7	$	(4,073.0	)	$	1,959.7
Trade accounts payable	$	0.2	$	24.9	$	95.2	$	—		$	120.3	$	0.4	$	28.4	$	106.9	$	—		$	135.7
Liabilities from long-term manufacturing
contracts and advances	—		21.0		56.5		—			77.5		—		14.0		64.6		—			78.6
Current portion of long-term debt	14.6		—		1.8		—			16.4		13.5		—		0.3		—			13.8
Accrued compensation	2.8		17.1		27.7		—			47.6		4.7		17.3		35.3		—			57.3
Deferred income taxes	—		—		—		—			—		—		—		18.1		4.7			22.8
Intercompany payables	1,056.5		5.0		—		(1,061.5		)	—		1,098.8		4.5		—		(1,103.3		)	—
Other current liabilities	9.3		41.3		72.2		0.6			123.4		13.9		39.8		71.6		0.2			125.5
Total current liabilities	1,083.4		109.3		253.4		(1,060.9		)	385.2		1,131.3		104.0		296.8		(1,098.4		)	433.7
Long-term debt	488.2		—		149.7		—			637.9		416.6		—		178.5		—			595.1
Accrued pension and
postretirement healthcare	1.1		40.3		98.2		—			139.6		1.1		127.0		104.6		—			232.7
Deferred income taxes	—		6.0		47.0		(16.2		)	36.8		—		5.8		27.8		(11.0		)	22.6
Other long-term liabilities	1.2		16.9		9.6		—			27.7		2.8		16.3		10.3		—			29.4
Total Liabilities	1,573.9		172.5		557.9		(1,077.1		)	1,227.2		1,551.8		253.1		618.0		(1,109.4		)	1,313.5
Total Hillenbrand Shareholders’ Equity	636.5		2,263.2		570.0		(2,833.2		)	636.5		632.3		2,382.8		580.8		(2,963.6		)	632.3
Noncontrolling interests	—		—		14.0		—			14.0		—		—		13.9		—			13.9
Total Equity	636.5		2,263.2		584.0		(2,833.2		)	650.5		632.3		2,382.8		594.7		(2,963.6		)	646.2
Total Liabilities and Equity	$	2,210.4	$	2,435.7	$	1,141.9	$	(3,910.3	)	$	1,877.7	$	2,184.1	$	2,635.9	$	1,212.7	$	(4,073.0	)	$	1,959.7

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Condensed Consolidating Statements of Cash Flow

	Three Months Ended December 31, 2016														Three Months Ended December 31, 2015
	Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated
Net cash provided by (used in)      operating activities	$	(72.6	)	$	3.6		$	20.3		$	—	$	(48.7	)	$	(1.7	)	$	3.2		$	34.2		$	—	$	35.7
Investing activities:
Capital expenditures	(0.2		)	(2.0		)	(2.4		)	—		(4.6		)	(0.3		)	(3.8		)	(2.4		)	—		(6.5		)
Proceeds from sales of property, plant, and      equipment	—			—			—			—		—			—			—			0.1			—		0.1
Acquisition of business, net of cash      acquired	—			—			—			—		—			—			—			(105.7		)	—		(105.7		)
Other, net	0.2			—			(0.1		)	—		0.1			—			—			—			—		—
Net cash used in investing activities	—			(2.0		)	(2.5		)	—		(4.5		)	(0.3		)	(3.8		)	(108.0		)	—		(112.1		)
Financing activities:
Repayments on term loan	(3.4		)	—			—			—		(3.4		)	(3.4		)	—			—			—		(3.4		)
Proceeds from revolving credit facilities	135.0			—			47.1			—		182.1			79.0			—			103.3			—		182.3
Repayments on revolving credit facilities	(59.0		)	—			(66.9		)	—		(125.9		)	(57.5		)	—			(24.0		)	—		(81.5		)
Payment of dividends on common stock	(13.0		)	—			—			—		(13.0		)	(12.7		)	—			—			—		(12.7		)
Repurchases of common stock	—			—			—			—		—			(3.0		)	—			—			—		(3.0		)
Net proceeds (payments) on stock plans	8.6			—			—			—		8.6			(0.8		)	—			—			—		(0.8		)
Other, net	—			—			1.1			—		1.1			0.8			—			—			—		0.8
Net cash provided by (used in)      financing activities	68.2			—			(18.7		)	—		49.5			2.4			—			79.3			—		81.7
Effect of exchange rates on cash and      cash equivalents	—			—			(1.7		)	—		(1.7		)	—			—			1.5			—		1.5
Net cash flow	(4.4		)	1.6			(2.6		)	—		(5.4		)	0.4			(0.6		)	7.0			—		6.8
Cash and equivalents at beginning of      period	4.4			5.6			42.0			—		52.0			0.3			7.1			40.9			—		48.3
Cash and equivalents at end of period	$	—		$	7.2		$	39.4		$	—	$	46.6		$	0.7		$	6.5		$	47.9		$	—	$	55.1

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18. Restructuring

The following schedule details the restructuring charges by segment and the classification of those charges on the income statement.

	Three Months Ended December 31, 2016						Three Months Ended December 31, 2015
	Cost of goods sold		Operating expenses		Total		Cost of goods sold		Operating expenses		Total
Process Equipment Group	$	—	$	—	$	—	$	2.0	$	1.2	$	3.2
Batesville	6.3		—		6.3		—		—		—
Corporate	—		1.6		1.6		—		0.2		0.2
Total	$	6.3	$	1.6	$	7.9	$	2.0	$	1.4	$	3.4

The 2017 charges related primarily to the closure of a plant at Batesville and corporate functional restructuring. The 2016 charges primarily related to severance costs at the Process Equipment Group as we integrated and streamlined the business operations within the segment. At December 31, 2016, $6.9 of restructuring costs were accrued and expected to be paid in 2017.

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Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF

OPERATIONS

FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS

Throughout this Form 10-Q, we make a number of “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  As the words imply, these are statements about future plans, objectives, beliefs, and expectations that might or might not happen in the future, as contrasted with historical information.  Forward-looking statements are based on assumptions that we believe are reasonable, but by their very nature are subject to a wide range of risks.

Accordingly, in this Form 10-Q, we may say something like:

“We expect that future revenue associated with the Process Equipment Group will be influenced by order backlog.”

That is a forward-looking statement, as indicated by the word “expect” and by the clear meaning of the sentence.

Other words that could indicate we are making forward-looking statements include:

intend	believe	plan	expect	may	goal	would
become	pursue	estimate	will	forecast	continue	could
targeted	encourage	promise	improve	progress	potential	should

This is not an exhaustive list, but is intended to give you an idea of how we try to identify forward-looking statements.  The absence of any of these words, however, does not mean that the statement is not forward-looking.

Here is the key point:  Forward-looking statements are not guarantees of future performance, and our actual results could differ materially from those set forth in any forward-looking statements.

Any number of factors, many of which are beyond our control, could cause our performance to differ significantly from what is described in the forward-looking statements. For a discussion of factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading “Risk Factors” in Item 1A of Part I of the Company’s Form 10-K filed with the SEC on November 16, 2016, and in Item 1A of Part II of this Form 10-Q.  We assume no obligation to update or revise any forward-looking statements.

OPERATING PERFORMANCE MEASURES

The following discussion compares our results for the three months ended December 31, 2016, to the same period in fiscal year 2016.  The Company’s fiscal year ends on September 30.  Unless otherwise stated, references to years relate to fiscal years.  We begin the discussion at a consolidated level and then provide separate detail about the Process Equipment Group, Batesville, and Corporate.  These financial results are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

We also provide certain non-GAAP operating performance measures.  These non-GAAP measures are referred to as “adjusted” and exclude expenses associated with backlog intangible amortization, inventory step-up, business acquisition and integration, and restructuring and restructuring related charges.  The related income tax for all of these items is also excluded.  This non-GAAP information is provided as a supplement, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.

We use this non-GAAP information internally to make operating decisions and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of our ongoing operating results.  The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by these types of items.  We believe this information provides a higher degree of transparency.

An important non-GAAP measure that we use is adjusted earnings before interest, income tax, depreciation, and amortization

(“adjusted EBITDA”). A part of Hillenbrand’s strategy is to selectively acquire companies that we believe can benefit from the HOM to spur faster and more profitable growth. Given that strategy, it is a natural consequence to incur related expenses, such

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as amortization from acquired intangible assets and additional interest expense from debt-funded acquisitions. Accordingly, we use adjusted EBITDA, among other measures, to monitor our business performance.

Another important non-GAAP operational measure used is backlog. Backlog is not a term recognized under GAAP; however, it is a common measurement used in industries with extended lead times for order fulfillment (long-term contracts), like those in which our Process Equipment Group competes. Order backlog represents the amount of consolidated revenue that we expect to realize on contracts awarded related to the Process Equipment Group. For purposes of calculating backlog, 100% of estimated revenue attributable to consolidated subsidiaries is included. Backlog includes expected revenue from large systems and equipment, as well as replacement parts, components, and service. The length of time that projects remain in backlog can span from days for replacement parts or service to approximately 18 months for larger system sales. Backlog includes expected revenue from the remaining portion of firm orders not yet completed, as well as revenue from change orders to the extent that they are reasonably expected to be realized. We include in backlog the full contract award, including awards subject to further customer approvals, which we expect to result in revenue in future periods. In accordance with industry practice, our contracts may include provisions for cancellation, termination or suspension at the discretion of the customer.

We expect that future revenue associated with the Process Equipment Group will be influenced by backlog because of the lead time involved in fulfilling engineered-to-order equipment for customers. Although backlog can be an indicator of future revenue, it does not include projects and parts orders that are booked and shipped within the same quarter. The timing of order placement, size, extent of customization, and customer delivery dates can create fluctuations in backlog and revenue. Revenue attributable to backlog may also be affected by foreign exchange fluctuations for orders denominated in currencies other than U.S. dollars.

We calculate the foreign currency impact on net revenue, gross profit, and operating expenses in order to better measure the comparability of results between periods. We calculate the foreign currency impact by translating current year results at prior year foreign exchange rates. This information is provided because exchange rates can distort the underlying change in sales, either positively or negatively. The cost structures for Corporate and Batesville are generally not significantly impacted by the fluctuation in foreign exchange rates, and we do not disclose the foreign currency impact in the Operations Review below where the impact is not significant.

See page 27 for reconciliation of adjusted EBITDA to consolidated net income, the most directly comparable GAAP measure. Our use of other non-GAAP measures in certain other instances includes information reconciling such non-GAAP measures to the respective most directly comparable GAAP measure. Given that there is no GAAP financial measure comparable to backlog, a quantitative reconciliation is not provided.

CRITICAL ACCOUNTING ESTIMATES

For the three months ended December 31, 2016, there were no significant changes to our critical accounting estimates, as outlined in our Annual Report on Form 10-K for 2016.

EXECUTIVE OVERVIEW

(financial amounts in millions, except share and per share data, throughout Management’s Discussion and Analysis)

Hillenbrand is a global diversified industrial company with multiple market-leading brands that serve a wide variety of industries around the globe. Hillenbrand’s portfolio is composed of two business segments: the Process Equipment Group and Batesville^®. The Process Equipment Group businesses design, develop, manufacture, and service highly engineered industrial equipment around the world. Batesville is a recognized leader in the North American death care industry.

We strive to provide superior return for our shareholders, exceptional value for our customers, and great professional opportunities for our employees through deployment of the Hillenbrand Operating Model (“HOM”). The HOM is a consistent and repeatable framework designed to produce sustainable and predictable results. The HOM describes our mission, vision, values and mindset as leaders; applies our management practices in Strategy Management, Segmentation, Lean, Talent Development, and Acquisitions; and prescribes three steps (Understand, Focus and Grow) designed to make our businesses both bigger and better. Our goal is to continue developing Hillenbrand as a world-class global diversified industrial company through the deployment of the HOM.

Our strategy is to leverage our historically strong financial foundation and the HOM to deliver sustainable profit growth, revenue expansion and substantial free cash flow and then reinvest available cash in new growth initiatives that are focused on

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building leadership positions in our core markets and near adjacencies, both organically and inorganically, in order to create shareholder value.

OPERATIONS REVIEW — CONSOLIDATED

	Three Months Ended December 31,
	2016				2015
	Amount			% of Net Revenue	Amount			% of Net Revenue
Net revenue	$	356.1		100.0	$	351.7		100.0
Gross profit	126.0			35.4	128.2			36.5
Operating expenses	82.8			23.3	82.1			23.3
Amortization expense	7.2			2.0	9.8			2.8
Interest expense	6.1			1.7	5.9			1.7
Other (expense) income, net	(1.3		)	0.4	(0.7		)	0.2
Income taxes	6.7			1.9	8.7			2.5
Net income(1)	21.7			6.1	20.0			5.7

(1) Net income attributable to Hillenbrand.

Three Months Ended December 31, 2016 Compared to Three Months Ended December 31, 2015

Net revenueincreased $4.4 (1%), which includes unfavorable foreign currency impact of $3.3.

•The Process Equipment Group’s net revenue increased $7.6 (4%), primarily due to the increased revenue associated with the acquisition of Red Valve ($10.4) and increased demand for large plastics projects, partially offset by unfavorable foreign currency impact ($3.2) and lower demand for industrial equipment in other end markets.

•Batesville’s net revenue decreased $3.2 (2%), primarily due to a decrease in volume ($4.8), partially offset by an increase in average selling price. Lower volume was driven by a decrease in burial sales resulting from product line simplification and what we estimate to be a decrease in North American burials, driven by the increased rate at which families opted for cremation.

Gross profitdecreased $2.2 (2%), which includes unfavorable foreign currency impact of $1.2. Gross profit margin decreased110 basis points to 35.4%. 

•The Process Equipment Group’s gross profit increased $6.6 (9%), primarily driven by increased profits associated with the acquisition of Red Valve, increased demand for large plastics projects, restructuring and restructuring related charges in fiscal 2016 that did not repeat in fiscal 2017, and inventory step-up charges related to the Abel acquisition in fiscal 2016 that did not repeat in fiscal 2017, partially offset by unfavorable foreign currency impact ($1.1) and lower demand for industrial equipment in other end markets. Gross profit margin improved180 basis points to 37.0% in 2017, primarily driven by a decrease in restructuring and restructuring related charges, productivity and pricing improvements, the higher margin associated with Red Valve, and inventory step-up charges related to the Abel acquisition in fiscal 2016 that did not repeat in fiscal 2017, partially offset by unfavorable product mix.

Gross profit included restructuring and restructuring related charges ($2.0 in 2016) and inventory step-up charges related to the Abel acquisition ($1.4 in 2016). Excluding these items, adjusted gross profit increased $3.2 (4%) and adjusted gross profit margin improved 20 basis points to 37.0% in 2017.

•Batesville’s gross profit decreased$8.8 (17%) and gross profit margin decreased560 basis points to 32.7%.  The decrease in gross profit and gross profit margin was primarily due to an increase in restructuring and restructuring related charges and the decline in volume.

Gross profit included restructuring and restructuring related charges ($6.4 in 2017). Excluding these charges, adjusted gross profit decreased $2.4 (5%) and adjusted gross profit margin decreased 80 basis points to 37.5%, primarily driven by the decline in volume.

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Operating expensesincreased $0.7 (1%), which included favorable foreign currency impact of $0.7. The increase was primarily driven by the addition of operating expenses from Red Valve and an increase in variable compensation, partially offset by lower compensation and benefits resulting from fiscal 2016 restructuring actions, current year productivity initiatives, and a decrease in acquisition and integration costs.  The operating expenses as a percentage of net revenue remained flat at 23.3%.  Operating expenses included the following items:

	Three Months Ended December 31,
	2016		2015
Business acquisition and integration costs	$	0.3	$	1.7
Restructuring and restructuring related charges	1.7		1.4

On an adjusted basis, which excluded business acquisition and integration costs and restructuring and restructuring related charges, operating expenses increased $1.8 (2%), which included favorable foreign currency impact of $0.7. The increase in adjusted operating expenses was primarily driven by the addition of operating expenses from Red Valve and an increase in variable compensation, partially offset by lower compensation and benefits resulting from fiscal 2016 restructuring actions and current year productivity initiatives. The adjusted operating expenses as a percentage of net revenue increased20 basis points in 2017 to 22.7%.

Amortization expensedecreased$2.6, primarily due to backlog amortization related to Abel in fiscal 2016 that did not repeat in fiscal 2017, partially offset by amortization on the acquired intangibles of Red Valve.

Interest expenseincreased $0.2, due to an increase in variable interest rates.

Other (expense) income, net was $1.3 of other expense in fiscal 2017, compared to $0.7 of other expense in fiscal 2016. The increase was driven primarily by increased foreign currency exchange losses.

The effective tax rate was 23.4% in fiscal 2017 compared to 29.3% in fiscal 2016.  The improvement in the effective tax rate was primarily due to the tax benefit recognized on share-based compensation and the favorable geographic mix of pretax income. These favorable items were partially offset by a reduction of the tax benefit from the domestic manufacturer’s deduction that resulted from the funding of our U.S. defined benefit pension plan. Our adjusted effective income tax rate was 26.5% in fiscal 2017 compared to 30.5% in fiscal 2016, which excludes the tax impact of adjustments discussed above.

OPERATIONS REVIEW — PROCESS EQUIPMENT GROUP

	Three Months Ended December 31,
	2016			2015
	Amount		% of Net Revenue	Amount		% of Net Revenue
Net revenue	$	221.6	100.0	$	214.0	100.0
Gross profit	82.0		37.0	75.4		35.2
Operating expenses	51.2		23.1	49.8		23.3
Amortization expense	7.1		3.2	9.7		4.5

Three Months Ended December 31, 2016 Compared to Three Months Ended December 31, 2015

Net revenueincreased $7.6 (4%), primarily due to the increased revenue associated with the acquisition of Red Valve ($10.4) and increased demand for large plastics projects, partially offset by unfavorable foreign currency impact ($3.2) and lower demand for industrial equipment in other end markets. Order backlog increased $14.7 (3%) from $505.1 on December 31, 2015, to $519.8 on December 31, 2016, which included unfavorable foreign currency impact of $13.6. Order backlog increased due to an increase in large orders in the plastics industry and the addition of Red Valve.

On a sequential basis, order backlog increased $19.6 (4%) at December 31, 2016 to $519.8, up from $500.2 at September 30, 2016.

Gross profitincreased $6.6 (9%), primarily driven by increased profits associated with the acquisition of Red Valve, increased demand for large plastics projects, restructuring and restructuring related charges in fiscal 2016 that did not repeat in fiscal

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2017, and inventory step-up charges related to the Abel acquisition in fiscal 2016 that did not repeat in fiscal 2017, partially offset by unfavorable foreign currency impact ($1.1) and lower demand for industrial equipment in other end markets. Gross profit margin improved180 basis points to 37.0% in 2017, primarily driven by a decrease in restructuring and restructuring related charges, productivity and pricing improvements, the higher margin associated with Red Valve, and inventory step-up charges related to the Abel acquisition in fiscal 2016 that did not repeat in fiscal 2017, partially offset by unfavorable product mix.

Gross profit included restructuring and restructuring related charges ($2.0 in 2016) and inventory step-up charges related to the Abel acquisition ($1.4 in 2016). Excluding these items, adjusted gross profit increased $3.2 (4%) and adjusted gross profit margin improved 20 basis points to 37.0% in 2017.

Operating expensesincreased $1.4 (3%), primarily driven by the addition of operating expenses from Red Valve, partially offset by favorable foreign currency impact of $0.7 and a decrease in restructuring and restructuring related charges. The operating expenses as a percentage of net revenue improved by 20 basis points to 23.1% in 2017.

Operating expenses included restructuring and restructuring related charges ($0.1 in 2017 and $1.2 in 2016).  Excluding these items, adjusted operating expenses increased $2.6 (5%), which was primarily driven by the addition of operating expenses from Red Valve, partially offset by favorable foreign currency impact of $0.7. Adjusted operating expenses as a percentage of net revenue increased40 basis points to 23.1% in 2017.

Amortization expensedecreased$2.6 primarily due to backlog amortization related to Abel in fiscal 2016 that did not repeat in fiscal 2017, partially offset by amortization on the acquired intangibles of Red Valve.

OPERATIONS REVIEW — BATESVILLE

	Three Months Ended December 31,
	2016			2015
	Amount		% of Net Revenue	Amount		% of Net Revenue
Net revenue	$	134.5	100.0	$	137.7	100.0
Gross profit	44.0		32.7	52.8		38.3
Operating expenses	21.3		15.8	23.4		17.0
Amortization expense	0.1		0.1	0.1		0.1

Three Months Ended December 31, 2016 Compared to Three Months Ended December 31, 2015

Net revenuedecreased $3.2 (2%), primarily due to a decrease in volume ($4.8), partially offset by an increase in average selling price. Lower volume was driven by a decrease in burial sales resulting from product line simplification and what we estimate to be a decrease in North American burials, driven by the increased rate at which families opted for cremation.

Gross profitdecreased$8.8 (17%) and gross profit margin decreased560 basis points to 32.7%.  The decrease in gross profit and gross profit margin was primarily due to an increase in restructuring and restructuring related charges and the decline in volume.

Gross profit included restructuring and restructuring related charges ($6.4 in 2017). Excluding these charges, adjusted gross profit decreased $2.4 (5%) and adjusted gross profit margin decreased 80 basis points to 37.5%, primarily driven by the decline in volume.

Operating expensesimproved $2.1 (9%) to $21.3 and operating expenses as a percentage of net revenue improved120 basis points to 15.8%, primarily due to lower compensation and benefits resulting from fiscal 2016 restructuring actions and current year productivity initiatives.

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REVIEW OF CORPORATE EXPENSES

	Three Months Ended December 31,
	2016			2015
	Amount		% of Net Revenue	Amount		% of Net Revenue
Core operating expenses	$	8.4	2.4	$	7.0	2.0
Business acquisition and integration costs	0.3		0.1	1.7		0.4
Restructuring and restructuring related charges	1.6		0.4	0.2		0.1
Operating expenses	$	10.3	2.9	$	8.9	2.5

Core operating expenses primarily represent operating expenses excluding restructuring and restructuring related charges and costs related to business acquisition and integration, which we incur as a result of our strategy to grow through selective acquisitions.

Three Months Ended December 31, 2016 Compared to Three Months Ended December 31, 2015

Operating expenses increased $1.4 (16%), primarily due to an increase in variable compensation and restructuring and restructuring related charges, partially offset by a decrease in business acquisition and integration costs. These expenses as a percentage of net revenue were 2.9%, an increase of 40 basis points from fiscal 2016.

Core operating expenses increased$1.4 (20%), primarily due to an increase in variable compensation.  These expenses as a percentage of net revenue were 2.4%, an increase of 40 basis points from fiscal 2016.

NON-GAAP OPERATING PERFORMANCE MEASURES

The following is a reconciliation from the most directly comparable GAAP operating performance measure to our non-GAAP adjusted EBITDA.

	Three Months Ended December 31,
	2016			2015
Consolidated net income	$	21.9		$	21.0
Interest income	(0.2		)	(0.3		)
Interest expense	6.1			5.9
Income tax expense	6.7			8.7
Depreciation and amortization	15.0			16.0
EBITDA	$	49.5		$	51.3
Business acquisition and integration	0.3			1.7
Inventory step-up	—			1.4
Restructuring and restructuring related	6.6			3.4
Adjusted EBITDA	$	56.4		$	57.8

Consolidated net income for 2017 compared to 2016 increased$0.9 (4%), primarily driven by the increased earnings associated with the acquisition of Red Valve, backlog amortization related to Abel in fiscal 2016 that did not repeat in fiscal 2017, improvement in the effective tax rate, increased demand for large plastics projects, savings related to restructuring actions taken in 2016, various process improvement initiatives, a reduction in business acquisition and integration costs, and inventory step-up charges related to Abel in 2016 that did not repeat in 2017. This increase in consolidated net income was partially offset by unfavorable foreign currency impact ($0.2), lower demand for industrial equipment in other end markets, an increase in restructuring and restructuring related charges, a decrease in volume at Batesville, and an increase in variable compensation.

Consolidated adjusted EBITDA for 2017 compared to 2016 decreased $1.4 (2%), primarily due to unfavorable foreign currency impact ($0.4), lower demand for industrial equipment in end markets other than plastics, a decrease in volume at Batesville, and an increase in variable compensation, partially offset by the increased earnings associated with the acquisition of Red

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Valve, increased demand for large plastics projects, savings related to restructuring actions taken in 2016, and various process improvement initiatives.

LIQUIDITY AND CAPITAL RESOURCES

In this section, we discuss our ability to access cash to meet business needs. We discuss how we see cash flow being affected for the next twelve months and how we intend to use it. We describe actual results in generating and utilizing cash by comparing the first three months of 2017 to the same period last year. Finally, we identify other significant matters that could affect liquidity on an ongoing basis.

Ability to Access Cash

Our debt financing includes long-term notes, including the Series A Notes, and our revolving credit facility and term loan (the “Facility”) as part of our overall financing strategy. We believe we have ready access to capital markets and regularly review the optimal mix of fixed-rate and variable-rate debt. In addition to cash balances and our ability to access additional long-term financing, we had $445 of maximum borrowing capacity available under the Facility as of December 31, 2016, of which $309.6 of borrowing capacity is immediately available based on our leverage covenant at December 31, 2016, with additional amounts available in the event of a qualifying acquisition. The available borrowing capacity reflects a reduction of $9.3 for outstanding letters of credit issued under the Facility. The Company may request an increase of up to $300.0 in the total borrowing capacity under the Facility, subject to approval of the lenders.

In the normal course of business, the Process Equipment Group provides to certain customers bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations. This form of trade finance is customary in the industry and, as a result, we are required to maintain adequate capacity to provide the guarantees. As of December 31, 2016, we had guarantee arrangements totaling $202.0, under which $106.9 was utilized for this purpose. These arrangements include a €150.0 Syndicated Letter of Guarantee Facility (as amended, the “LG Facility”) under which unsecured letters of credit, bank guarantees, or other surety bonds may be issued. The Company may request an increase to the total capacity under the LG Facility by an additional €70.0, subject to approval of the lenders.

We have significant operations outside the U.S. The majority of foreign earnings is considered to be indefinitely reinvested in foreign jurisdictions where the Company has made, and intends to continue to make, substantial investments to support the ongoing development and growth of our international operations. Accordingly, no U.S. federal and state income taxes have been accrued on the portion of our foreign earnings that is considered to be indefinitely reinvested in foreign jurisdictions. The cash at our international subsidiaries totaled $38.9 at December 31, 2016. We do not intend, nor do we foresee a need, to repatriate these funds; however, repatriation of these funds under current regulatory and tax law for use in domestic operations would expose us to additional taxes.

12-month Outlook

We believe the 12-month outlook for our business remains positive. Although cash flow from operations in the Process Equipment Group naturally experiences substantial fluctuations driven by changes in working capital requirements at Coperion (due to the type of product and geography of customer projects in process at any point in time), we believe we have significant flexibility to meet our financial commitments, including working capital needs, capital expenditures, and financing obligations. We expect to continue to use a combination of some of our cash flows from operations and our Facility to fund acquisitions. In considering attractive targets, we often look for companies with a relatively low physical asset base, in order to limit the need to invest significant additional cash into targets post-acquisition.

Our anticipated contribution to our pension plans in 2017 is $89.5, of which $82.9 was made during the three months endedDecember 31, 2016, utilizing borrowings under our Facility. We will continue to monitor plan funding levels, performance of the assets within the plans, and overall economic activity, and we may make additional discretionary funding decisions based on the net impact of the above factors.

We currently expect to pay quarterly cash dividends in the future comparable to those we paid in 2016, which will require approximately $13.0 each quarter based on our outstanding common stock at December 31, 2016. We increased our quarterly dividend in 2017 to $0.2050 per common share from $0.2025 per common share paid in 2016.

We believe existing cash, cash flows from operations, and the issuance of debt will be sufficient to fund our operating activities and cash commitments for investing and financing activities. Based on these factors, we believe our current liquidity position is strong and will continue to meet all of our financial commitments for the foreseeable future.

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Cash Flows

	Three Months Ended December 31,
(in millions)	2016			2015
Cash flows provided by (used in)
Operating activities	$	(48.7	)	$	35.7
Investing activities	(4.5		)	(112.1		)
Financing activities	49.5			81.7
Effect of exchange rates on cash and cash equivalents	(1.7		)	1.5
(Decrease) increase in cash and cash equivalents	$	(5.4	)	$	6.8

Operating Activities

Operating activities used$48.7 of cash during the first three months of fiscal year 2017, and provided$35.7 of cash during the first three months of fiscal year 2016, an $84.4 (236%) decrease.  The decrease in operating cash flow was primarily due to our $80.0 contribution to the Company’s U.S. defined benefit pension plan in 2017 and the timing of working capital requirements at Coperion, partially offset by a decrease of $9.8 in cash paid for taxes.

Working capital requirements for the Process Equipment Group may continue to fluctuate this way in the future due primarily to the type of product and geography of customer projects in process at any point in time.  Working capital needs are lower when advance payments from customers are more heavily weighted toward the beginning of the project. Conversely, working capital needs are higher when a larger portion of the cash is to be received in later stages of manufacturing.  

Investing Activities

The $107.6decrease in cash used in investing activities in the first three months of fiscal 2017 was primarily due to the acquisition of Abel in October 2015.

Financing Activities

Cash provided by financing activities was largely impacted by net borrowing activity.  Our general practice is to utilize our cash to pay down debt unless it is needed for an acquisition.  Cash provided by financing activities during the first three months of 2017 was $49.5, including $52.8 of proceeds, net of debt repayments.  Cash provided by financing activities in the first three months of fiscal 2016 was $81.7. The decrease in cash provided by financing activities was primarily due to borrowings used to fund the acquisition of Abel in fiscal 2016 that did not repeat in fiscal 2017, partially offset by the borrowings used to fund the $80.0 contribution to the Company’s U.S. defined benefit pension plan in 2017, the increased borrowings used to fund the working capital requirements at Coperion, and an increase in proceeds received from stock plans.

We returned approximately $13.0 to shareholders during the first three months of 2017 in the form of quarterly dividends.  We increased our quarterly dividend in 2017 to $0.2050 per common share from $0.2025 per common share paid during 2016. 

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements.

Recently Adopted and Issued Accounting Standards

For a summary of recently issued and adopted accounting standards applicable to us, see Item 1, Note 2 of Part I of this Form 10-Q.

Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

A discussion of quantitative and qualitative disclosures about market risk may be found in Item 7A of our 2016 Form 10-K filed with the SEC on November 16, 2016.  There have been no material changes in this information since the filing of our 2016 Form 10-K.

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Item 4.CONTROLS AND PROCEDURES

Our management, with the participation of our President and Chief Executive Officer and our Senior Vice President and Chief Financial Officer (the “Certifying Officers”), evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).  Based upon that evaluation, the Certifying Officers concluded that our disclosure controls and procedures as of the end of the period covered by this report are effective.

There have been no changes in internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) for the period covered by this report that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1.LEGAL PROCEEDINGS

Information pertaining to legal proceedings can be found in Note 14 to the interim consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

Item 1A.RISK FACTORS

For information regarding the risks we face, see the discussion under Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2016, and the additional risk factor below.

Changes in the United States political environment could negatively impact our business.

The recent presidential and congressional elections in the United States could result in significant changes in, and uncertainty with respect to, legislation, regulation and government policy. While it is not possible to predict whether and when any such changes will occur, changes at the local, state or federal level could significantly impact our business and the industries in which we compete.  Specific legislative and regulatory proposals discussed during and after the election that could have a material impact on us include, but are not limited to, changes to existing trade agreements, import and export regulations, tariffs and customs duties, income tax regulations and the federal tax code, public company reporting requirements, environmental regulation and antitrust enforcement.  To the extent changes in the political environments have a negative impact on our markets, it may materially and adversely impact our business, results of operations and financial condition in the periods to come.

Item 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no unregistered sales of equity securities during the three months ended December 31, 2016.

Item 6.EXHIBITS

The exhibits filed with this report are listed on the Exhibit Index, which is incorporated herein by reference.  In reviewing any agreements included as exhibits to this report, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about us or the other parties to the agreements.  The agreements may contain representations and warranties by the parties to the agreements, including us.  Except where explicitly stated otherwise, these representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

•should not necessarily be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

•may have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

•may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and

30

•were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time.

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HILLENBRAND, INC.
Date: February 1, 2017	BY:	/s/ Kristina A. Cerniglia
		Kristina A. Cerniglia
		Senior Vice President and Chief Financial Officer
Date: February 1, 2017		/s/ Eric M. Teegarden
		Eric M. Teegarden
		Vice President, Controller, and Chief Accounting Officer

32

EXHIBIT INDEX

Exhibit 3.1	Restated and Amended Articles of Incorporation of Hillenbrand, Inc., effective March 31, 2008 (Incorporated by reference to Exhibit 3.1 to Quarterly Report on Form 10-Q filed August 12, 2008)
Exhibit 3.2	Articles of Correction of the Restated and Amended Articles of Incorporation of Hillenbrand, Inc., effective March 31, 2008 (Incorporated by reference to Exhibit 3.2 to Quarterly Report on Form 10-Q filed August 12, 2008)
Exhibit 3.3	Articles of Amendment of the Restated and Amended Articles of Incorporation of Hillenbrand, Inc., effective February 27, 2015 (Incorporated by reference to Exhibit 3.3 to Quarterly Report on Form 10-Q filed May 11, 2015)
Exhibit 3.4	Amended and Restated Code of By-laws of Hillenbrand, Inc. (Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed February 26, 2015)
Exhibit 31.1*	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1*	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2*	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101.INS	Instance document
Exhibit 101.SCH	Schema document
Exhibit 101.CAL	Calculation linkbase document
Exhibit 101.LAB	Labels linkbase document
Exhibit 101.PRE	Presentation linkbase document
Exhibit 101.DEF	Definition linkbase document

* Filed herewith.

33

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Joe A. Raver, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Hillenbrand, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  February 1, 2017

/s/ Joe A. Raver

Joe A. Raver

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Kristina A. Cerniglia certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Hillenbrand, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  February 1, 2017

/s/ Kristina A. Cerniglia

Kristina A. Cerniglia

Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hillenbrand, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joe A. Raver, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Joe A. Raver

Joe A. Raver

President and Chief Executive Officer

February 1, 2017

A signed original of this written statement required by Section 906 has been provided to Hillenbrand, Inc. and will be retained by Hillenbrand, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hillenbrand, Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kristina A. Cerniglia, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Kristina A. Cerniglia

Kristina A. Cerniglia

Senior Vice President and Chief Financial Officer

February 1, 2017

A signed original of this written statement required by Section 906 has been provided to Hillenbrand, Inc. and will be retained by Hillenbrand, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Jan. 27, 2017
Document and Entity Information
Entity Registrant Name	Hillenbrand, Inc.
Entity Central Index Key	0001417398
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		63,692,587
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

XML

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net revenue	[1]	$ 356.1	$ 351.7
Cost of goods sold		230.1	223.5
Gross profit		126.0	128.2
Operating expenses		82.8	82.1
Amortization of Intangible Assets		7.2	9.8
Interest expense		6.1	5.9
Other (expense) income, net		(1.3)	(0.7)
Income before income taxes		28.6	29.7
Income tax expense		6.7	8.7
Consolidated net income		21.9	21.0
Less: Net income attributable to noncontrolling interests		0.2	1.0
Total reclassifications for the period, net of tax	[2]	$ 21.7	$ 20.0
Net income - per share of common stock:
Basic earnings per share		$ 0.34	$ 0.32
Diluted earnings per share		$ 0.34	$ 0.31
Weighted average shares outstanding (basic)		63.7	63.2
Weighted average shares outstanding (diluted)		64.1	63.8
Cash dividends declared per share		$ 0.2050	$ 0.2025

[1] We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.

[2] Net income attributable to Hillenbrand

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Consolidated net income		$ 21.9	$ 21.0
Changes in other comprehensive income (loss), net of tax
Currency translation adjustment		(20.9)	(15.2)
Pension and postretirement (net of tax of $2.5 and $0.4)		4.4	0.7
Change in net unrealized gain (loss) on derivative instruments (net of tax of $0.3 and $—)		0.4	0.6
Total changes in other comprehensive income (loss), net of tax		(16.1)	(13.9)
Consolidated comprehensive income		5.8	7.1
Less: Comprehensive income attributable to noncontrolling interests		0.1	0.9
Comprehensive income (loss)	[1],[2]	$ 5.7	$ 6.2

[1] Comprehensive income attributable to Hillenbrand

[2] Comprehensive income attributable to Hillenbrand

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Pension and postretirement, tax	$ 2.5	$ 0.4
Change in net unrealized gain (loss) on derivative instruments, tax	$ 0.3	$ 0.0

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Current Assets
Cash and cash equivalents	$ 46.6	$ 52.0
Trade receivables, net	178.9	205.0
Unbilled receivables from long-term manufacturing contracts	138.2	125.8
Inventories	153.9	153.1
Deferred income taxes	0.0	23.9
Prepaid expenses	19.2	18.2
Other current assets	23.4	22.3
Total current assets	560.2	600.3
Property, plant, and equipment, net	146.0	152.5
Intangible assets, net	519.9	541.5
Goodwill	616.3	634.3
Other assets	35.3	31.1
Total Assets	1,877.7	1,959.7
Current Liabilities
Trade accounts payable	120.3	135.7
Liabilities from long-term manufacturing contracts and advances	77.5	78.6
Current portion of long-term debt	16.4	13.8
Accrued compensation	47.6	57.3
Deferred income taxes	0.0	22.8
Other current liabilities	123.4	125.5
Total current liabilities	385.2	433.7
Long-term debt	637.9	595.1
Accrued pension and postretirement healthcare	139.6	232.7
Deferred income taxes	36.8	22.6
Other long-term liabilities	27.7	29.4
Total Liabilities	1,227.2	1,313.5
Commitments and contingencies (Note 14)
SHAREHOLDERS’ EQUITY
Common stock, no par value (63.8 and 63.7 shares issued, 63.7 and 63.0 shares outstanding)	0.0	0.0
Additional paid-in capital	344.1	348.7
Retained earnings	442.1	433.3
Treasury stock (0.1 and 0.7 shares)	(3.9)	(19.9)
Accumulated other comprehensive loss	(145.8)	(129.8)
Hillenbrand Shareholders’ Equity	636.5	632.3
Noncontrolling interests	14.0	13.9
Total Shareholders’ Equity	650.5	646.2
Total Liabilities and Equity	$ 1,877.7	$ 1,959.7

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Sep. 30, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)
Common stock, shares issued	63,800,000.0	63,700,000.0
Common stock, shares outstanding	63,700,000.0	63,000,000.0
Treasury stock, shares	100,000.0	700,000.0

XML

Consolidated Statements of Cash Flow - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating Activities
Consolidated net income	$ 21.9	$ 21.0
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	15.0	16.0
Deferred income taxes	11.4	0.5
Share-based compensation	2.6	0.6
Trade accounts receivable and receivables on long-term manufacturing contracts	4.2	34.6
Inventories	(4.7)	(7.6)
Prepaid expenses and other current assets	(3.3)	4.4
Trade accounts payable	(10.3)	(1.6)
Accrued expenses and other current liabilities	4.0	(33.5)
Income taxes payable	(8.8)	(5.0)
Defined benefit plan and postretirement funding	(82.9)	(3.1)
Defined benefit plan and postretirement expense	1.7	3.1
Other, net	0.5	6.3
Net cash (used in) provided by operating activities	(48.7)	35.7
Investing Activities
Capital expenditures	(4.6)	(6.5)
Proceeds from sales of property, plant, and equipment	0.0	0.1
Payments to Acquire Businesses, Net of Cash Acquired	0.0	(105.7)
Other, net	0.1	0.0
Net cash used in investing activities	(4.5)	(112.1)
Financing Activities
Repayments on term loan	(3.4)	(3.4)
Proceeds from revolving credit facilities	182.1	182.3
Repayments on revolving credit facilities	(125.9)	(81.5)
Payments of dividends on common stock	(13.0)	(12.7)
Repurchases of common stock	0.0	(3.0)
Net proceeds (payments) on stock plans	8.6	(0.8)
Other, net	1.1	0.8
Net cash provided by financing activities	49.5	81.7
Effect of exchange rates on cash and cash equivalents	(1.7)	1.5
Net cash flows	(5.4)	6.8
Cash and cash equivalents:
At beginning of period	52.0	48.3
At end of period	$ 46.6	$ 55.1

XML

Background and Basis of Presentation

3 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Background and Basis of Presentation

Background and Basis of Presentation

Hillenbrand, Inc. (“Hillenbrand”) is a global diversified industrial company with multiple market-leading brands that serve a wide variety of industries across the globe.  We strive to provide superior return for our shareholders, exceptional value for our customers, and great professional opportunities for our employees through deployment of the Hillenbrand Operating Model (“HOM”). The HOM is a consistent and repeatable framework designed to produce sustainable and predictable results.  The HOM describes our mission, vision, values, and mindset as leaders; applies our management practices in Strategy Management, Segmentation, Lean, Talent Development, and Acquisitions; and prescribes three steps (Understand, Focus and Grow) designed to make our businesses both bigger and better.  Our goal is to continue developing Hillenbrand as a world-class global diversified industrial company through the deployment of the HOM. Hillenbrand is composed of two segments:  the Process Equipment Group and Batesville^®.  The Process Equipment Group businesses design, develop, manufacture, and service highly engineered industrial equipment around the world.  Batesville is a recognized leader in the North American death care industry.  “Hillenbrand,” “the Company,” “we,” “us,” “our,” and similar words refer to Hillenbrand and its subsidiaries.

The accompanying unaudited consolidated financial statements include the accounts of Hillenbrand and its subsidiaries.  They also include two minor subsidiaries where the Company’s ownership percentage is less than 100%.  The Company’s fiscal year ends on September 30.  Unless otherwise stated, references to years relate to fiscal years.

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, 2016, as filed with the SEC.  The September 30, 2016 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 incentive compensation programs.

XML

Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Recently Issued Accounting Standard

The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for 2016.

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 2016.

Recently Adopted Accounting Standards

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  ASU 2014-12 states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition.  ASU 2014-12 became effective and was adopted for our fiscal year beginning October 1, 2016.  The adoption of this standard did not have a significant impact on our consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant 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 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. The new standard amends the consolidation guidance in ASC 810 and significantly changes the consolidation analysis required under current generally accepted accounting principles. ASU 2015-02 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant 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. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. This standard permits an entity to defer and present debt issuance costs related to line-of-credit arrangements as an asset and to subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. These new standards do not affect the recognition and measurement of debt issuance costs. ASU 2015-03 and ASU 2015-15 became effective and were retrospectively adopted for our fiscal year beginning October 1, 2016. The retrospective adoption resulted in $1.2 of debt issuance costs being reclassified from other assets to a reduction of the carrying value of long-term debt as of September 30, 2016.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software. ASU 2015-05 helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations. ASU 2015-16 simplifies the accounting for adjustments made to provisional amounts. The amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is also required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In November 2015, the FASB issued ASU 2015-17, Income Taxes. ASU 2015-17 requires that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position in order to simplify the presentation of deferred income taxes. ASU 2015-17 was early adopted for our fiscal year beginning October 1, 2016.  The adoption of this standard resulted in a reclassification of $2.7 from current deferred income taxes to non-current deferred income taxes on the Consolidated Balance Sheets as of December 31, 2016. No prior periods were retrospectively adjusted.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires significant disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 will be effective for our fiscal year beginning October 1, 2018, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption, with early adoption permitted on October 1, 2017. We have not yet selected a transition method, and we have begun the assessment process and are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements.

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

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-17 will be effective for our fiscal year beginning on October 1, 2018, with early adoption permitted. We expect the adoption of ASU 2016-18 to have a financial statement presentation and disclosure impact only.

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Supplemental Balance Sheet Information

3 Months Ended

Dec. 31, 2016

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

	December 31, 2016		September 30, 2016
Trade accounts receivable reserves	$	20.8	$	21.0
Accumulated depreciation on property, plant, and equipment	$	300.7	$	299.4
Accumulated amortization on intangible assets	$	178.4	$	174.2
Inventories:
Raw materials and components	$	49.7	$	51.4
Work in process	54.3		54.0
Finished goods	49.9		47.7
Total inventories	$	153.9	$	153.1

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Intangible Assets and Goodwill (Notes)

3 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Intangible Assets and Goodwill

Intangible Assets

Intangible assets are stated at the lower of cost or fair value.  With the exception of most trade names, intangible assets are amortized on a straight-line basis over periods ranging from three to 21 years, representing the period over which we expect to receive future economic benefits from these assets.  We assess the carrying value of most trade names annually, or more often if events or changes in circumstances indicate there may be impairment.  

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of December 31, 2016 and September 30, 2016.

	December 31, 2016					September 30, 2016
	Cost		Accumulated Amortization			Cost		Accumulated Amortization
Finite-lived assets:
Trade names	$	0.2	$	(0.1	)	$	0.2	$	(0.1	)
Customer relationships	448.1		(104.0		)	459.5		(100.7		)
Technology, including patents	75.1		(34.0		)	77.9		(33.3		)
Software	47.3		(40.0		)	47.4		(39.8		)
Other	0.4		(0.3		)	0.4		(0.3		)
	571.1		(178.4		)	585.4		(174.2		)
Indefinite-lived assets:
Trade names	127.2		—			130.3		—
Total	$	698.3	$	(178.4	)	$	715.7	$	(174.2	)

The net change in intangible assets during the three months ended December 31, 2016 was driven by normal amortization and foreign currency adjustments.

Goodwill

Goodwill is not amortized, but is subject to annual impairment tests.  Goodwill has been assigned to reporting units.  We assess the carrying value of goodwill annually, or more often if events or changes in circumstances indicate there may be impairment.  Impairment testing is performed at a reporting unit level.

	Process Equipment Group			Batesville		Total
Balance September 30, 2016	$	626.0		$	8.3	$	634.3
Foreign currency adjustments	(18.0		)	—		(18.0		)
Balance December 31, 2016	$	608.0		$	8.3	$	616.3

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Financing Agreements

3 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Financing Agreements

Financing Agreements

	December 31, 2016		September 30, 2016
$700 revolving credit facility (excluding outstanding letters of credit)	$	245.7	$	198.5
$180 term loan	158.6		162.0
$150 senior unsecured notes, net of discount (1)	148.6		148.5
$100 Series A Notes (2)	99.6		99.6
Other	1.8		0.3
Total debt	654.3		608.9
Less: current portion	16.4		13.8
Total long-term debt	$	637.9	$	595.1
(1) Includes debt issuance costs of $0.7 and $0.8 at December 31, 2016 and September 30, 2016.
(2) Includes debt issuance costs of $0.4 and $0.4 at December 31, 2016 and September 30, 2016.

With respect to the Facility, as of December 31, 2016, we had $9.3 in outstanding letters of credit issued and $445.0 of maximum borrowing capacity. $309.6 of borrowing capacity is immediately available based on our leverage covenant at December 31, 2016, with additional amounts available in the event of a qualifying acquisition.  The weighted-average interest rates on borrowings under the revolving credit facility were 1.40% and 1.21% for the three months ended December 31, 2016 and 2015. The weighted average facility fee was 0.23% and 0.18% for the three months ended December 31, 2016 and 2015. The weighted average interest rate on the term loan was 1.94% and 1.46% for the three months ended December 31, 2016 and 2015. We have interest rate swaps on $50.0 of outstanding borrowings under the Facility in order to manage exposure to our variable interest payments.

In the normal course of business, the Process Equipment Group provides to certain customers bank guarantees and other credit arrangements in support of performance, warranty, advance payment, and other contractual obligations. This form of trade finance is customary in the industry and, as a result, we are required to maintain adequate capacity to provide the guarantees. As of December 31, 2016, we had credit arrangements totaling $202.0, under which $106.9 was utilized for this purpose. These arrangements include our €150.0 Syndicated Letter of Guarantee Facility (as amended, the “LG Facility”) and other ancillary credit facilities.

The availability of borrowings or guarantees under the Facility, the LG Facility, and the Private Shelf Agreement, dated as of December 6, 2012 (the “Shelf Agreement”), among the Company, Prudential Investment Management and each Prudential Affiliate (as defined thereunder), governing the 4.60% Series A unsecured notes (the “Series A Notes”), is subject to our ability to meet certain conditions including compliance with covenants, absence of default, and continued accuracy of certain representations and warranties. Financial covenants include a maximum ratio of Indebtedness to EBITDA (as defined in the agreements) of 3.5 to 1.0 and a minimum ratio of EBITDA (as defined in the agreements) to interest expense of 3.5 to 1.0. As of December 31, 2016, we were in compliance with all covenants.

The Facility, senior unsecured notes, Series A Notes, and LG Facility are fully and unconditionally guaranteed by certain of the

Company’s domestic subsidiaries.

We had restricted cash of $0.8 and $0.8 included in other current assets in the Consolidated Balance Sheets at December 31, 2016 and September 30, 2016.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest, which requires that debt issuance costs related a 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. The Company adopted ASU 2015-03 for the three months ended December 31, 2016. As of December 31, 2016 and September 30, 2016, there were $1.1 and$1.2 in debt issuance costs recorded as a reduction in the carrying value of the related debt liability under the senior unsecured notes and Series A Notes. The $1.1 in debt issuance costs as of December 31, 2016 will be amortized over the remaining term of the senior unsecured notes and Series A Notes. The retrospective adoption resulted in $1.2 of debt issuance costs being reclassified from other assets to a reduction of the carrying value of long-term debt as of September 30, 2016. The Company also adopted ASU 2015-15, Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, and elected not to reclassify the debt issuance costs related to line-of-credit arrangements for the Facility and LG Facility.

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Retirement Benefits

3 Months Ended

Dec. 31, 2016

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Retirement Benefits

Retirement Benefits

Defined Benefit Plans

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Three Months Ended December 31,						Three Months Ended December 31,
	2016			2015			2016			2015
Service costs	$	1.0		$	1.0		$	0.4		$	0.6
Interest costs	2.2			2.4			0.2			0.6
Expected return on plan assets	(3.3		)	(2.4		)	(0.1		)	(0.3		)
Amortization of unrecognized prior service costs, net	0.1			0.1			—			—
Amortization of net loss	1.1			0.9			—			0.2
Net pension costs	$	1.1		$	2.0		$	0.5		$	1.1

During the first quarter of 2017, we made an $80.0 contribution to our U.S. defined benefit pension plan (the “Plan”) using cash on hand and funds borrowed from our Facility. Although this action increased Plan assets and reduces expected 2017 pension expense, the majority of the pension expense savings in 2017 from this action is expected to be offset by the additional interest expense on the funds borrowed and certain tax effects from the transaction.

Also during the first quarter of 2017, we began implementing a plan to transition our non-bargaining U.S. employees from a defined benefit-based model to a defined contribution structure over a three-year sunset period. This change caused a remeasurement for the Plan for the affected population. The remeasurement did not cause a material change as the assumptions did not materially differ from the assumptions at September 30, 2016.

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

Defined Contribution Plans — Expenses related to our defined contribution plans were $2.6 and $2.3 for the three months ended December 31, 2016 and 2015.

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Income Taxes

3 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rates for the three months ended December 31, 2016 and 2015 were 23.4% and 29.3%. The decrease in the effective tax rate during the three months ended December 31, 2016 was primarily due to the tax benefit recognized on share-based compensation and the favorable geographic mix of pretax income. These favorable items were partially offset by a reduction of the tax benefit from the domestic manufacturer’s deduction that resulted from the funding of our U.S. defined benefit pension plan.

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Earnings Per Share

3 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

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 December 31, 2016 and 2015, potential dilutive effects, representing approximately 600,000 and 1,300,000 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 December 31,
	2016		2015
Net income(1)	$	21.7	$	20.0
Weighted average shares outstanding (basic - in millions)	63.7		63.2
Effect of dilutive stock options and other unvested equity awards (in millions)	0.4		0.6
Weighted average shares outstanding (diluted - in millions)	64.1		63.8
Basic earnings per share	$	0.34	$	0.32
Diluted earnings per share	$	0.34	$	0.31
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)	0.7		0.5

(1) Net income attributable to Hillenbrand

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Shareholders' Equity

3 Months Ended

Dec. 31, 2016

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

During the three months ended December 31, 2016, we paid approximately $13.0 of cash dividends.  In connection with our share-based compensation plans discussed further in Note 12, we also issued approximately 616,000 shares of common stock, of which approximately 526,000 shares were from treasury stock.

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Other Comprehensive Income (Loss)

3 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

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, 2015	$	(54.4	)	$	(52.1	)	$	(1.4	)	$	(107.9	)
Other comprehensive income before reclassifications
Before tax amount	—			(15.1		)	(0.2		)	(15.3		)	$	(0.1	)	$	(15.4	)
Tax expense	—			—			0.2			0.2			—			0.2
After tax amount	—			(15.1		)	—			(15.1		)	(0.1		)	(15.2		)
Amounts reclassified from accumulated other comprehensive income(1)	0.7			—			0.6			1.3			—			1.3
Net current period other comprehensive income (loss)	0.7			(15.1		)	0.6			(13.8		)	$	(0.1	)	$	(13.9	)
Balance at December 31, 2015	$	(53.7	)	$	(67.2	)	$	(0.8	)	$	(121.7	)

 (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, 2016	$	(67.5	)	$	(61.6	)	$	(0.7	)	$	(129.8	)
Other comprehensive income before reclassifications
Before tax amount	5.7			(20.8		)	0.6			(14.5		)	$	(0.1	)	$	(14.6	)
Tax expense	(2.1		)	—			(0.3		)	(2.4		)	—			(2.4		)
After tax amount	3.6			(20.8		)	0.3			(16.9		)	(0.1		)	(17.0		)
Amounts reclassified from accumulated other comprehensive income(1)	0.8			—			0.1			0.9			—			0.9
Net current period other comprehensive income (loss)	4.4			(20.8		)	0.4			(16.0		)	$	(0.1	)	$	(16.1	)
Balance at December 31, 2016	$	(63.1	)	$	(82.4	)	$	(0.3	)	$	(145.8	)

(1)  Amounts are net of tax.

Reclassifications out of Accumulated Other Comprehensive Income include: 

	Three Months Ended December 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	$	—	$	—	$	0.5	$	0.5
Cost of goods sold	0.6		0.1		—		0.7
Operating expenses	0.2		—		—		0.2
Other income (expense), net	—		—		0.3		0.3
Total before tax	$	0.8	$	0.1	$	0.8	$	1.7
Tax expense							(0.4		)
Total reclassifications for the period, net of tax							$	1.3

	Three Months Ended December 31, 2016
	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	$	—	$	—	$	0.1	$	0.1
Cost of goods sold	0.8		0.1		—		0.9
Operating expenses	0.3		—		—		0.3
Other income (expense), net	—		—		0.1		0.1
Total before tax	$	1.1	$	0.1	$	0.2	$	1.4
Tax expense							(0.5		)
Total reclassifications for the period, net of tax							$	0.9

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7).

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Share-Based Compensation

3 Months Ended

Dec. 31, 2016

Compensation Related Costs [Abstract]

Share-Based Compensation

Share-Based Compensation

	Three Months Ended December 31,
	2016		2015
Share-based compensation costs	$	2.6	$	0.6
Less impact of income tax benefit	1.0		0.2
Share-based compensation costs, net of tax	$	1.6	$	0.4

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. Relative total shareholder return is determined by comparing our total shareholder return during a three-year period to the respective total shareholder returns of companies in a designated performance peer group of 16 companies. Creation of shareholder value is measured by the cumulative cash returns and final period net operating profit after tax compared to the established hurdle rate 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 three months ended December 31, 2016, we made the following grants:

	Number of Units
Stock options	473,658
Time-based stock awards	35,329
Performance-based stock awards (maximum that can be earned)	299,429

Stock options granted during fiscal 2017 had a weighted-average exercise price of $36.08 and a weighted-average grant date fair value of $8.37.  Our time-based stock awards and performance-based stock awards granted during fiscal 2017 had weighted-average grant date fair values of $36.15 and $39.70.  Included in the performance-based stock awards granted during 2017 are 156,994 units whose payout level is based upon the Company’s relative total shareholder return over the three-year measurement period, as described above.  These units will be expensed on a straight-line basis over the measurement period and are not subsequently adjusted after the grant date.

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Other Income (Expense), Net

3 Months Ended

Dec. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

Other Income and Other Expense

Other Income (Expense), Net

	Three Months Ended December 31,
	2016			2015
Equity in net income (loss) of affiliates	$	0.7		$	(0.4	)
Foreign currency exchange loss, net	(0.8		)	(0.1		)
Other, net	(1.2		)	(0.2		)
Other income (expense), net	$	(1.3	)	$	(0.7	)

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Commitments and Contingencies

3 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

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

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

The recorded amounts represent our best estimate of the costs we will incur in relation to such exposures, but it is possible that actual costs will differ from those estimates.

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Fair Value Measurements

3 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

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 December 31,		Fair Value at December 31, 2016 Using Inputs Considered as:
	2016		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	46.6	$	46.6	$	—	$	—
Investments in rabbi trust	4.2		4.2		—		—
Derivative instruments	2.0		—		2.0		—
Liabilities:
$150 senior unsecured notes	149.3		160.5		—		—
Revolving credit facility	245.7		—		245.7		—
Term loan	158.6		—		158.6		—
$100 Series A Notes	100.0		—		104.9		—
Derivative instruments	5.4		—		5.4		—

The fair values of the revolving credit facility and term loan approximated carrying value at December 31, 2016.  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 foreign currency derivatives was $202.7 at December 31, 2016. The derivatives are included in other current assets and other current liabilities on the balance sheet.

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Segment and Geographical Information

3 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Geographical Information

Segment and Geographical Information

	Three Months Ended December 31,
	2016			2015
Net revenue
Process Equipment Group	$	221.6		$	214.0
Batesville	134.5			137.7
Total	$	356.1		$	351.7
Adjusted EBITDA
Process Equipment Group	$	32.7		$	33.0
Batesville	31.0			31.8
Corporate	(7.3		)	(7.0		)
Net revenue (1)
United States	$	201.3		$	198.9
Germany	104.4			93.4
All other foreign business units	50.4			59.4
Total	$	356.1		$	351.7

(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.

	December 31, 2016		September 30, 2016
Total assets assigned
Process Equipment Group	$	1,640.9	$	1,694.6
Batesville	205.8		211.8
Corporate	31.0		53.3
Total	$	1,877.7	$	1,959.7
Tangible long-lived assets, net
United States	$	86.1	$	89.5
Germany	33.7		35.8
All other foreign business units	26.2		27.2
Total	$	146.0	$	152.5

The following schedule reconciles segment adjusted EBITDA to consolidated net income.

	Three Months Ended December 31,
	2016			2015
Adjusted EBITDA:
Process Equipment Group	$	32.7		$	33.0
Batesville	31.0			31.8
Corporate	(7.3		)	(7.0		)
Less:
Interest income	(0.2		)	(0.3		)
Interest expense	6.1			5.9
Income tax expense	6.7			8.7
Depreciation and amortization	15.0			16.0
Business acquisition and integration	0.3			1.7
Inventory step-up	—			1.4
Restructuring and restructuring related	6.6			3.4
Consolidated net income	$	21.9		$	21.0

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Condensed Consolidating Information

3 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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 December 31, 2016														Three Months Ended December 31, 2015
	Parent			Guarantors		Non- Guarantors			Eliminations			Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net revenue	$	—		$	202.7	$	202.9		$	(49.5	)	$	356.1		$	—		$	197.3		$	205.2		$	(50.8	)	$	351.7
Cost of goods sold	—			109.2		145.5			(24.6		)	230.1			—			102.2			146.7			(25.4		)	223.5
Gross profit	—			93.5		57.4			(24.9		)	126.0			—			95.1			58.5			(25.4		)	128.2
Operating expenses	9.6			58.7		39.4			(24.9		)	82.8			7.2			60.1			40.2			(25.4		)	82.1
Amortization expense	—			3.4		3.8			—			7.2			—			2.3			7.5			—			9.8
Interest expense	5.4			—		0.7			—			6.1			5.2			—			0.7			—			5.9
Other income (expense), net	—			—		(1.3		)	—			(1.3		)	0.1			(1.0		)	0.2			—			(0.7		)
Equity in net income (loss) of subsidiaries	28.8			2.2		—			(31.0		)	—			26.4			2.2			—			(28.6		)	—
Income (loss) before income taxes	13.8			33.6		12.2			(31.0		)	28.6			14.1			33.9			10.3			(28.6		)	29.7
Income tax expense (benefit)	(7.9		)	11.7		2.9			—			6.7			(5.9		)	12.0			2.6			—			8.7
Consolidated net income	21.7			21.9		9.3			(31.0		)	21.9			20.0			21.9			7.7			(28.6		)	21.0
Less: Net income attributable to
noncontrolling interests	—			—		0.2			—			0.2			—			—			1.0			—			1.0
Net income (loss) (1)	$	21.7		$	21.9	$	9.1		$	(31.0	)	$	21.7		$	20.0		$	21.9		$	6.7		$	(28.6	)	$	20.0
Consolidated comprehensive income (loss)	$	5.7		$	21.5	$	(11.6	)	$	(9.8	)	$	5.8		$	6.2		$	30.8		$	(6.8	)	$	(23.1	)	$	7.1
Less: Comprehensive income attributable
to noncontrolling interests	—			—		0.1			—			0.1			—			—			0.9			—			0.9
Comprehensive income (loss) (2)	$	5.7		$	21.5	$	(11.7	)	$	(9.8	)	$	5.7		$	6.2		$	30.8		$	(7.7	)	$	(23.1	)	$	6.2

(1) Net income attributable to Hillenbrand

(2) Comprehensive income attributable to Hillenbrand

Condensed Consolidating Balance Sheets

	December 31, 2016											September 30, 2016
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated		Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Cash and cash equivalents	$	—	$	7.2	$	39.4	$	—		$	46.6	$	4.4	$	5.6	$	42.0	$	—		$	52.0
Trade receivables, net	—		105.8		73.1		—			178.9		—		120.6		84.4		—			205.0
Unbilled receivables from long-term
manufacturing contracts	—		10.2		128.0		—			138.2		—		10.6		115.2		—			125.8
Inventories	—		73.6		82.9		(2.6		)	153.9		—		69.8		86.1		(2.8		)	153.1
Deferred income taxes	—		—		—		—			—		1.6		17.4		—		4.9			23.9
Prepaid expense	2.7		6.7		9.8		—			19.2		2.2		6.5		9.5		—			18.2
Intercompany receivables	—		974.3		84.6		(1,058.9		)	—		—		1,003.1		97.4		(1,100.5		)	—
Other current assets	5.3		1.5		16.3		0.3			23.4		4.6		1.5		15.9		0.3			22.3
Total current assets	8.0		1,179.3		434.1		(1,061.2		)	560.2		12.8		1,235.1		450.5		(1,098.1		)	600.3
Property, plant and equipment, net	4.8		63.8		77.4		—			146.0		4.9		65.7		81.9		—			152.5
Intangible assets, net	3.9		221.4		294.6		—			519.9		4.1		220.4		317.0		—			541.5
Goodwill	—		284.3		332.0		—			616.3		—		271.8		362.5		—			634.3
Investment in consolidated subsidiaries	2,169.1		664.1		—		(2,833.2		)	—		2,143.4		820.2		—		(2,963.6		)	—
Other assets	24.6		22.8		3.8		(15.9		)	35.3		18.9		22.7		0.8		(11.3		)	31.1
Total Assets	$	2,210.4	$	2,435.7	$	1,141.9	$	(3,910.3	)	$	1,877.7	$	2,184.1	$	2,635.9	$	1,212.7	$	(4,073.0	)	$	1,959.7
Trade accounts payable	$	0.2	$	24.9	$	95.2	$	—		$	120.3	$	0.4	$	28.4	$	106.9	$	—		$	135.7
Liabilities from long-term manufacturing
contracts and advances	—		21.0		56.5		—			77.5		—		14.0		64.6		—			78.6
Current portion of long-term debt	14.6		—		1.8		—			16.4		13.5		—		0.3		—			13.8
Accrued compensation	2.8		17.1		27.7		—			47.6		4.7		17.3		35.3		—			57.3
Deferred income taxes	—		—		—		—			—		—		—		18.1		4.7			22.8
Intercompany payables	1,056.5		5.0		—		(1,061.5		)	—		1,098.8		4.5		—		(1,103.3		)	—
Other current liabilities	9.3		41.3		72.2		0.6			123.4		13.9		39.8		71.6		0.2			125.5
Total current liabilities	1,083.4		109.3		253.4		(1,060.9		)	385.2		1,131.3		104.0		296.8		(1,098.4		)	433.7
Long-term debt	488.2		—		149.7		—			637.9		416.6		—		178.5		—			595.1
Accrued pension and
postretirement healthcare	1.1		40.3		98.2		—			139.6		1.1		127.0		104.6		—			232.7
Deferred income taxes	—		6.0		47.0		(16.2		)	36.8		—		5.8		27.8		(11.0		)	22.6
Other long-term liabilities	1.2		16.9		9.6		—			27.7		2.8		16.3		10.3		—			29.4
Total Liabilities	1,573.9		172.5		557.9		(1,077.1		)	1,227.2		1,551.8		253.1		618.0		(1,109.4		)	1,313.5
Total Hillenbrand Shareholders’ Equity	636.5		2,263.2		570.0		(2,833.2		)	636.5		632.3		2,382.8		580.8		(2,963.6		)	632.3
Noncontrolling interests	—		—		14.0		—			14.0		—		—		13.9		—			13.9
Total Equity	636.5		2,263.2		584.0		(2,833.2		)	650.5		632.3		2,382.8		594.7		(2,963.6		)	646.2
Total Liabilities and Equity	$	2,210.4	$	2,435.7	$	1,141.9	$	(3,910.3	)	$	1,877.7	$	2,184.1	$	2,635.9	$	1,212.7	$	(4,073.0	)	$	1,959.7

Condensed Consolidating Statements of Cash Flow

	Three Months Ended December 31, 2016														Three Months Ended December 31, 2015
	Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated
Net cash provided by (used in)      operating activities	$	(72.6	)	$	3.6		$	20.3		$	—	$	(48.7	)	$	(1.7	)	$	3.2		$	34.2		$	—	$	35.7
Investing activities:
Capital expenditures	(0.2		)	(2.0		)	(2.4		)	—		(4.6		)	(0.3		)	(3.8		)	(2.4		)	—		(6.5		)
Proceeds from sales of property, plant, and      equipment	—			—			—			—		—			—			—			0.1			—		0.1
Acquisition of business, net of cash      acquired	—			—			—			—		—			—			—			(105.7		)	—		(105.7		)
Other, net	0.2			—			(0.1		)	—		0.1			—			—			—			—		—
Net cash used in investing activities	—			(2.0		)	(2.5		)	—		(4.5		)	(0.3		)	(3.8		)	(108.0		)	—		(112.1		)
Financing activities:
Repayments on term loan	(3.4		)	—			—			—		(3.4		)	(3.4		)	—			—			—		(3.4		)
Proceeds from revolving credit facilities	135.0			—			47.1			—		182.1			79.0			—			103.3			—		182.3
Repayments on revolving credit facilities	(59.0		)	—			(66.9		)	—		(125.9		)	(57.5		)	—			(24.0		)	—		(81.5		)
Payment of dividends on common stock	(13.0		)	—			—			—		(13.0		)	(12.7		)	—			—			—		(12.7		)
Repurchases of common stock	—			—			—			—		—			(3.0		)	—			—			—		(3.0		)
Net proceeds (payments) on stock plans	8.6			—			—			—		8.6			(0.8		)	—			—			—		(0.8		)
Other, net	—			—			1.1			—		1.1			0.8			—			—			—		0.8
Net cash provided by (used in)      financing activities	68.2			—			(18.7		)	—		49.5			2.4			—			79.3			—		81.7
Effect of exchange rates on cash and      cash equivalents	—			—			(1.7		)	—		(1.7		)	—			—			1.5			—		1.5
Net cash flow	(4.4		)	1.6			(2.6		)	—		(5.4		)	0.4			(0.6		)	7.0			—		6.8
Cash and equivalents at beginning of      period	4.4			5.6			42.0			—		52.0			0.3			7.1			40.9			—		48.3
Cash and equivalents at end of period	$	—		$	7.2		$	39.4		$	—	$	46.6		$	0.7		$	6.5		$	47.9		$	—	$	55.1

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Restructuring

3 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

The following schedule details the restructuring charges by segment and the classification of those charges on the income statement.

	Three Months Ended December 31, 2016						Three Months Ended December 31, 2015
	Cost of goods sold		Operating expenses		Total		Cost of goods sold		Operating expenses		Total
Process Equipment Group	$	—	$	—	$	—	$	2.0	$	1.2	$	3.2
Batesville	6.3		—		6.3		—		—		—
Corporate	—		1.6		1.6		—		0.2		0.2
Total	$	6.3	$	1.6	$	7.9	$	2.0	$	1.4	$	3.4

The 2017 charges related primarily to the closure of a plant at Batesville and corporate functional restructuring. The 2016 charges primarily related to severance costs at the Process Equipment Group as we integrated and streamlined the business operations within the segment. At December 31, 2016, $6.9 of restructuring costs were accrued and expected to be paid in 2017.

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Business Acquisitions (Notes)

3 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

3. Business Acquisitions

We incurred $0.3 and $1.7 of business acquisition and integration costs during the three months ended December 31, 2016 and 2015 recorded in operating expenses.

Abel

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

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

Red Valve

On February 1, 2016, we completed the acquisition of Red Valve Company, Inc. (“Red Valve”) for $130.4 in cash, net of certain adjustments. We utilized borrowings under our Facility to fund this acquisition. Based in Carnegie, Pennsylvania, Red Valve is a global leader in highly-engineered valves designed to operate in the harshest municipal and industrial wastewater environments. Its products support mission critical applications in water/wastewater, power and mining, and other general industrial markets. The results of Red Valve are reported in our Process Equipment Group segment for the relevant periods.

Based on the preliminary purchase allocation, we recorded goodwill of $60, and acquired identifiable intangible assets of $61, which consisted of $4 of trade names not subject to amortization, $8 of developed technology, $1 of backlog, and $48 of customer relationships. Goodwill is expected to be deductible for tax purposes. Supplemental proforma information has not been provided as the acquisition did not have a material impact on consolidated results of operations.

Both of these acquisitions continue Hillenbrand’s strategy to transform into a world-class global diversified industrial company by increasing our ability to expand into new markets and geographies within the highly attractive flow control space.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Recently Issued Accounting Standard

The significant accounting policies used in preparing these consolidated financial statements are consistent with the accounting policies described in our Annual Report on Form 10-K for 2016.

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 2016.

Recently Adopted Accounting Standards

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  ASU 2014-12 states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition.  ASU 2014-12 became effective and was adopted for our fiscal year beginning October 1, 2016.  The adoption of this standard did not have a significant impact on our consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant 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 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. The new standard amends the consolidation guidance in ASC 810 and significantly changes the consolidation analysis required under current generally accepted accounting principles. ASU 2015-02 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant 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. In August 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. This standard permits an entity to defer and present debt issuance costs related to line-of-credit arrangements as an asset and to subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. These new standards do not affect the recognition and measurement of debt issuance costs. ASU 2015-03 and ASU 2015-15 became effective and were retrospectively adopted for our fiscal year beginning October 1, 2016. The retrospective adoption resulted in $1.2 of debt issuance costs being reclassified from other assets to a reduction of the carrying value of long-term debt as of September 30, 2016.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software. ASU 2015-05 helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations. ASU 2015-16 simplifies the accounting for adjustments made to provisional amounts. The amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is also required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 became effective and was adopted for our fiscal year beginning October 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements.

In November 2015, the FASB issued ASU 2015-17, Income Taxes. ASU 2015-17 requires that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position in order to simplify the presentation of deferred income taxes. ASU 2015-17 was early adopted for our fiscal year beginning October 1, 2016.  The adoption of this standard resulted in a reclassification of $2.7 from current deferred income taxes to non-current deferred income taxes on the Consolidated Balance Sheets as of December 31, 2016. No prior periods were retrospectively adjusted.

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has also issued several updates to ASU 2014-09. The new standard supersedes U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards. It also requires significant disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 will be effective for our fiscal year beginning October 1, 2018, including interim periods within that reporting period, and allows for either full retrospective adoption or modified retrospective adoption, with early adoption permitted on October 1, 2017. We have not yet selected a transition method, and we have begun the assessment process and are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements.

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

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-17 will be effective for our fiscal year beginning on October 1, 2018, with early adoption permitted. We expect the adoption of ASU 2016-18 to have a financial statement presentation and disclosure impact only.

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Supplemental Balance Sheet Information (Tables)

3 Months Ended

Dec. 31, 2016

Balance Sheet Related Disclosures [Abstract]

Schedule of supplemental balance sheet information

	December 31, 2016		September 30, 2016
Trade accounts receivable reserves	$	20.8	$	21.0
Accumulated depreciation on property, plant, and equipment	$	300.7	$	299.4
Accumulated amortization on intangible assets	$	178.4	$	174.2
Inventories:
Raw materials and components	$	49.7	$	51.4
Work in process	54.3		54.0
Finished goods	49.9		47.7
Total inventories	$	153.9	$	153.1

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Intangible Assets and Goodwill (Tables)

3 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

	Process Equipment Group			Batesville		Total
Balance September 30, 2016	$	626.0		$	8.3	$	634.3
Foreign currency adjustments	(18.0		)	—		(18.0		)
Balance December 31, 2016	$	608.0		$	8.3	$	616.3

Schedule of Intangible Assets and Goodwill [Table Text Block]

	December 31, 2016					September 30, 2016
	Cost		Accumulated Amortization			Cost		Accumulated Amortization
Finite-lived assets:
Trade names	$	0.2	$	(0.1	)	$	0.2	$	(0.1	)
Customer relationships	448.1		(104.0		)	459.5		(100.7		)
Technology, including patents	75.1		(34.0		)	77.9		(33.3		)
Software	47.3		(40.0		)	47.4		(39.8		)
Other	0.4		(0.3		)	0.4		(0.3		)
	571.1		(178.4		)	585.4		(174.2		)
Indefinite-lived assets:
Trade names	127.2		—			130.3		—
Total	$	698.3	$	(178.4	)	$	715.7	$	(174.2	)

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Financing Agreements (Tables)

3 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of borrowings under financing agreements

Financing Agreements

	December 31, 2016		September 30, 2016
$700 revolving credit facility (excluding outstanding letters of credit)	$	245.7	$	198.5
$180 term loan	158.6		162.0
$150 senior unsecured notes, net of discount (1)	148.6		148.5
$100 Series A Notes (2)	99.6		99.6
Other	1.8		0.3
Total debt	654.3		608.9
Less: current portion	16.4		13.8
Total long-term debt	$	637.9	$	595.1
(1) Includes debt issuance costs of $0.7 and $0.8 at December 31, 2016 and September 30, 2016.
(2) Includes debt issuance costs of $0.4 and $0.4 at December 31, 2016 and September 30, 2016.

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Retirement Benefits (Tables)

3 Months Ended

Dec. 31, 2016

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Components of net pension costs

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Three Months Ended December 31,						Three Months Ended December 31,
	2016			2015			2016			2015
Service costs	$	1.0		$	1.0		$	0.4		$	0.6
Interest costs	2.2			2.4			0.2			0.6
Expected return on plan assets	(3.3		)	(2.4		)	(0.1		)	(0.3		)
Amortization of unrecognized prior service costs, net	0.1			0.1			—			—
Amortization of net loss	1.1			0.9			—			0.2
Net pension costs	$	1.1		$	2.0		$	0.5		$	1.1

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Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per share

	Three Months Ended December 31,
	2016		2015
Net income(1)	$	21.7	$	20.0
Weighted average shares outstanding (basic - in millions)	63.7		63.2
Effect of dilutive stock options and other unvested equity awards (in millions)	0.4		0.6
Weighted average shares outstanding (diluted - in millions)	64.1		63.8
Basic earnings per share	$	0.34	$	0.32
Diluted earnings per share	$	0.34	$	0.31
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)	0.7		0.5

(1) Net income attributable to Hillenbrand

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Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of changes in accumulated other comprehensive income (loss) by component

	Pension and Postretirement			Currency Translation			Net Unrealized Gain (Loss) on Derivative Instruments			Total Attributable to Hillenbrand, Inc.			Noncontrolling Interests			Total
Balance at September 30, 2015	$	(54.4	)	$	(52.1	)	$	(1.4	)	$	(107.9	)
Other comprehensive income before reclassifications
Before tax amount	—			(15.1		)	(0.2		)	(15.3		)	$	(0.1	)	$	(15.4	)
Tax expense	—			—			0.2			0.2			—			0.2
After tax amount	—			(15.1		)	—			(15.1		)	(0.1		)	(15.2		)
Amounts reclassified from accumulated other comprehensive income(1)	0.7			—			0.6			1.3			—			1.3
Net current period other comprehensive income (loss)	0.7			(15.1		)	0.6			(13.8		)	$	(0.1	)	$	(13.9	)
Balance at December 31, 2015	$	(53.7	)	$	(67.2	)	$	(0.8	)	$	(121.7	)

 (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, 2016	$	(67.5	)	$	(61.6	)	$	(0.7	)	$	(129.8	)
Other comprehensive income before reclassifications
Before tax amount	5.7			(20.8		)	0.6			(14.5		)	$	(0.1	)	$	(14.6	)
Tax expense	(2.1		)	—			(0.3		)	(2.4		)	—			(2.4		)
After tax amount	3.6			(20.8		)	0.3			(16.9		)	(0.1		)	(17.0		)
Amounts reclassified from accumulated other comprehensive income(1)	0.8			—			0.1			0.9			—			0.9
Net current period other comprehensive income (loss)	4.4			(20.8		)	0.4			(16.0		)	$	(0.1	)	$	(16.1	)
Balance at December 31, 2016	$	(63.1	)	$	(82.4	)	$	(0.3	)	$	(145.8	)

(1)  Amounts are net of tax.

Schedule of reclassifications of AOCI

Reclassifications out of Accumulated Other Comprehensive Income include: 

	Three Months Ended December 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	$	—	$	—	$	0.5	$	0.5
Cost of goods sold	0.6		0.1		—		0.7
Operating expenses	0.2		—		—		0.2
Other income (expense), net	—		—		0.3		0.3
Total before tax	$	0.8	$	0.1	$	0.8	$	1.7
Tax expense							(0.4		)
Total reclassifications for the period, net of tax							$	1.3

	Three Months Ended December 31, 2016
	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	$	—	$	—	$	0.1	$	0.1
Cost of goods sold	0.8		0.1		—		0.9
Operating expenses	0.3		—		—		0.3
Other income (expense), net	—		—		0.1		0.1
Total before tax	$	1.1	$	0.1	$	0.2	$	1.4
Tax expense							(0.5		)
Total reclassifications for the period, net of tax							$	0.9

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 7).

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Share-Based Compensation (Tables)

3 Months Ended

Dec. 31, 2016

Compensation Related Costs [Abstract]

Schedule of stock-based compensation costs

	Three Months Ended December 31,
	2016		2015
Share-based compensation costs	$	2.6	$	0.6
Less impact of income tax benefit	1.0		0.2
Share-based compensation costs, net of tax	$	1.6	$	0.4

Schedule of stock-based awards granted in the period

During the three months ended December 31, 2016, we made the following grants:

	Number of Units
Stock options	473,658
Time-based stock awards	35,329
Performance-based stock awards (maximum that can be earned)	299,429

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Other Income (Expense), Net (Tables)

3 Months Ended

Dec. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

Other income and expense

	Three Months Ended December 31,
	2016			2015
Equity in net income (loss) of affiliates	$	0.7		$	(0.4	)
Foreign currency exchange loss, net	(0.8		)	(0.1		)
Other, net	(1.2		)	(0.2		)
Other income (expense), net	$	(1.3	)	$	(0.7	)

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities at carrying value and fair value and the level within the fair value hierarchy

	Carrying
	Value at December 31,		Fair Value at December 31, 2016 Using Inputs Considered as:
	2016		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	46.6	$	46.6	$	—	$	—
Investments in rabbi trust	4.2		4.2		—		—
Derivative instruments	2.0		—		2.0		—
Liabilities:
$150 senior unsecured notes	149.3		160.5		—		—
Revolving credit facility	245.7		—		245.7		—
Term loan	158.6		—		158.6		—
$100 Series A Notes	100.0		—		104.9		—
Derivative instruments	5.4		—		5.4		—

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Segment and Geographical Information (Tables)

3 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of net revenue, adjusted EBITDA, and depreciation and amortization by segment and geographic location

	Three Months Ended December 31,
	2016			2015
Net revenue
Process Equipment Group	$	221.6		$	214.0
Batesville	134.5			137.7
Total	$	356.1		$	351.7
Adjusted EBITDA
Process Equipment Group	$	32.7		$	33.0
Batesville	31.0			31.8
Corporate	(7.3		)	(7.0		)
Net revenue (1)
United States	$	201.3		$	198.9
Germany	104.4			93.4
All other foreign business units	50.4			59.4
Total	$	356.1		$	351.7

(1) We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.

Schedule of assets by segment and tangible long-lived assets, net by geographic location

	December 31, 2016		September 30, 2016
Total assets assigned
Process Equipment Group	$	1,640.9	$	1,694.6
Batesville	205.8		211.8
Corporate	31.0		53.3
Total	$	1,877.7	$	1,959.7
Tangible long-lived assets, net
United States	$	86.1	$	89.5
Germany	33.7		35.8
All other foreign business units	26.2		27.2
Total	$	146.0	$	152.5

Schedule of reconciliation of segment adjusted EBITDA to consolidated net income

The following schedule reconciles segment adjusted EBITDA to consolidated net income.

	Three Months Ended December 31,
	2016			2015
Adjusted EBITDA:
Process Equipment Group	$	32.7		$	33.0
Batesville	31.0			31.8
Corporate	(7.3		)	(7.0		)
Less:
Interest income	(0.2		)	(0.3		)
Interest expense	6.1			5.9
Income tax expense	6.7			8.7
Depreciation and amortization	15.0			16.0
Business acquisition and integration	0.3			1.7
Inventory step-up	—			1.4
Restructuring and restructuring related	6.6			3.4
Consolidated net income	$	21.9		$	21.0

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Condensed Consolidating Information (Tables)

3 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed consolidating statements of income

	Three Months Ended December 31, 2016														Three Months Ended December 31, 2015
	Parent			Guarantors		Non- Guarantors			Eliminations			Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net revenue	$	—		$	202.7	$	202.9		$	(49.5	)	$	356.1		$	—		$	197.3		$	205.2		$	(50.8	)	$	351.7
Cost of goods sold	—			109.2		145.5			(24.6		)	230.1			—			102.2			146.7			(25.4		)	223.5
Gross profit	—			93.5		57.4			(24.9		)	126.0			—			95.1			58.5			(25.4		)	128.2
Operating expenses	9.6			58.7		39.4			(24.9		)	82.8			7.2			60.1			40.2			(25.4		)	82.1
Amortization expense	—			3.4		3.8			—			7.2			—			2.3			7.5			—			9.8
Interest expense	5.4			—		0.7			—			6.1			5.2			—			0.7			—			5.9
Other income (expense), net	—			—		(1.3		)	—			(1.3		)	0.1			(1.0		)	0.2			—			(0.7		)
Equity in net income (loss) of subsidiaries	28.8			2.2		—			(31.0		)	—			26.4			2.2			—			(28.6		)	—
Income (loss) before income taxes	13.8			33.6		12.2			(31.0		)	28.6			14.1			33.9			10.3			(28.6		)	29.7
Income tax expense (benefit)	(7.9		)	11.7		2.9			—			6.7			(5.9		)	12.0			2.6			—			8.7
Consolidated net income	21.7			21.9		9.3			(31.0		)	21.9			20.0			21.9			7.7			(28.6		)	21.0
Less: Net income attributable to
noncontrolling interests	—			—		0.2			—			0.2			—			—			1.0			—			1.0
Net income (loss) (1)	$	21.7		$	21.9	$	9.1		$	(31.0	)	$	21.7		$	20.0		$	21.9		$	6.7		$	(28.6	)	$	20.0
Consolidated comprehensive income (loss)	$	5.7		$	21.5	$	(11.6	)	$	(9.8	)	$	5.8		$	6.2		$	30.8		$	(6.8	)	$	(23.1	)	$	7.1
Less: Comprehensive income attributable
to noncontrolling interests	—			—		0.1			—			0.1			—			—			0.9			—			0.9
Comprehensive income (loss) (2)	$	5.7		$	21.5	$	(11.7	)	$	(9.8	)	$	5.7		$	6.2		$	30.8		$	(7.7	)	$	(23.1	)	$	6.2

(1) Net income attributable to Hillenbrand

(2) Comprehensive income attributable to Hillenbrand

Schedule of condensed consolidating balance sheets

	December 31, 2016											September 30, 2016
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated		Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Cash and cash equivalents	$	—	$	7.2	$	39.4	$	—		$	46.6	$	4.4	$	5.6	$	42.0	$	—		$	52.0
Trade receivables, net	—		105.8		73.1		—			178.9		—		120.6		84.4		—			205.0
Unbilled receivables from long-term
manufacturing contracts	—		10.2		128.0		—			138.2		—		10.6		115.2		—			125.8
Inventories	—		73.6		82.9		(2.6		)	153.9		—		69.8		86.1		(2.8		)	153.1
Deferred income taxes	—		—		—		—			—		1.6		17.4		—		4.9			23.9
Prepaid expense	2.7		6.7		9.8		—			19.2		2.2		6.5		9.5		—			18.2
Intercompany receivables	—		974.3		84.6		(1,058.9		)	—		—		1,003.1		97.4		(1,100.5		)	—
Other current assets	5.3		1.5		16.3		0.3			23.4		4.6		1.5		15.9		0.3			22.3
Total current assets	8.0		1,179.3		434.1		(1,061.2		)	560.2		12.8		1,235.1		450.5		(1,098.1		)	600.3
Property, plant and equipment, net	4.8		63.8		77.4		—			146.0		4.9		65.7		81.9		—			152.5
Intangible assets, net	3.9		221.4		294.6		—			519.9		4.1		220.4		317.0		—			541.5
Goodwill	—		284.3		332.0		—			616.3		—		271.8		362.5		—			634.3
Investment in consolidated subsidiaries	2,169.1		664.1		—		(2,833.2		)	—		2,143.4		820.2		—		(2,963.6		)	—
Other assets	24.6		22.8		3.8		(15.9		)	35.3		18.9		22.7		0.8		(11.3		)	31.1
Total Assets	$	2,210.4	$	2,435.7	$	1,141.9	$	(3,910.3	)	$	1,877.7	$	2,184.1	$	2,635.9	$	1,212.7	$	(4,073.0	)	$	1,959.7
Trade accounts payable	$	0.2	$	24.9	$	95.2	$	—		$	120.3	$	0.4	$	28.4	$	106.9	$	—		$	135.7
Liabilities from long-term manufacturing
contracts and advances	—		21.0		56.5		—			77.5		—		14.0		64.6		—			78.6
Current portion of long-term debt	14.6		—		1.8		—			16.4		13.5		—		0.3		—			13.8
Accrued compensation	2.8		17.1		27.7		—			47.6		4.7		17.3		35.3		—			57.3
Deferred income taxes	—		—		—		—			—		—		—		18.1		4.7			22.8
Intercompany payables	1,056.5		5.0		—		(1,061.5		)	—		1,098.8		4.5		—		(1,103.3		)	—
Other current liabilities	9.3		41.3		72.2		0.6			123.4		13.9		39.8		71.6		0.2			125.5
Total current liabilities	1,083.4		109.3		253.4		(1,060.9		)	385.2		1,131.3		104.0		296.8		(1,098.4		)	433.7
Long-term debt	488.2		—		149.7		—			637.9		416.6		—		178.5		—			595.1
Accrued pension and
postretirement healthcare	1.1		40.3		98.2		—			139.6		1.1		127.0		104.6		—			232.7
Deferred income taxes	—		6.0		47.0		(16.2		)	36.8		—		5.8		27.8		(11.0		)	22.6
Other long-term liabilities	1.2		16.9		9.6		—			27.7		2.8		16.3		10.3		—			29.4
Total Liabilities	1,573.9		172.5		557.9		(1,077.1		)	1,227.2		1,551.8		253.1		618.0		(1,109.4		)	1,313.5
Total Hillenbrand Shareholders’ Equity	636.5		2,263.2		570.0		(2,833.2		)	636.5		632.3		2,382.8		580.8		(2,963.6		)	632.3
Noncontrolling interests	—		—		14.0		—			14.0		—		—		13.9		—			13.9
Total Equity	636.5		2,263.2		584.0		(2,833.2		)	650.5		632.3		2,382.8		594.7		(2,963.6		)	646.2
Total Liabilities and Equity	$	2,210.4	$	2,435.7	$	1,141.9	$	(3,910.3	)	$	1,877.7	$	2,184.1	$	2,635.9	$	1,212.7	$	(4,073.0	)	$	1,959.7

Schedule of condensed consolidating statements of cash flows

	Three Months Ended December 31, 2016														Three Months Ended December 31, 2015
	Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated
Net cash provided by (used in)      operating activities	$	(72.6	)	$	3.6		$	20.3		$	—	$	(48.7	)	$	(1.7	)	$	3.2		$	34.2		$	—	$	35.7
Investing activities:
Capital expenditures	(0.2		)	(2.0		)	(2.4		)	—		(4.6		)	(0.3		)	(3.8		)	(2.4		)	—		(6.5		)
Proceeds from sales of property, plant, and      equipment	—			—			—			—		—			—			—			0.1			—		0.1
Acquisition of business, net of cash      acquired	—			—			—			—		—			—			—			(105.7		)	—		(105.7		)
Other, net	0.2			—			(0.1		)	—		0.1			—			—			—			—		—
Net cash used in investing activities	—			(2.0		)	(2.5		)	—		(4.5		)	(0.3		)	(3.8		)	(108.0		)	—		(112.1		)
Financing activities:
Repayments on term loan	(3.4		)	—			—			—		(3.4		)	(3.4		)	—			—			—		(3.4		)
Proceeds from revolving credit facilities	135.0			—			47.1			—		182.1			79.0			—			103.3			—		182.3
Repayments on revolving credit facilities	(59.0		)	—			(66.9		)	—		(125.9		)	(57.5		)	—			(24.0		)	—		(81.5		)
Payment of dividends on common stock	(13.0		)	—			—			—		(13.0		)	(12.7		)	—			—			—		(12.7		)
Repurchases of common stock	—			—			—			—		—			(3.0		)	—			—			—		(3.0		)
Net proceeds (payments) on stock plans	8.6			—			—			—		8.6			(0.8		)	—			—			—		(0.8		)
Other, net	—			—			1.1			—		1.1			0.8			—			—			—		0.8
Net cash provided by (used in)      financing activities	68.2			—			(18.7		)	—		49.5			2.4			—			79.3			—		81.7
Effect of exchange rates on cash and      cash equivalents	—			—			(1.7		)	—		(1.7		)	—			—			1.5			—		1.5
Net cash flow	(4.4		)	1.6			(2.6		)	—		(5.4		)	0.4			(0.6		)	7.0			—		6.8
Cash and equivalents at beginning of      period	4.4			5.6			42.0			—		52.0			0.3			7.1			40.9			—		48.3
Cash and equivalents at end of period	$	—		$	7.2		$	39.4		$	—	$	46.6		$	0.7		$	6.5		$	47.9		$	—	$	55.1

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Restructuring Schedule of restructuring charges by line and segment (Tables)

3 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs [Table Text Block]

The following schedule details the restructuring charges by segment and the classification of those charges on the income statement.

	Three Months Ended December 31, 2016						Three Months Ended December 31, 2015
	Cost of goods sold		Operating expenses		Total		Cost of goods sold		Operating expenses		Total
Process Equipment Group	$	—	$	—	$	—	$	2.0	$	1.2	$	3.2
Batesville	6.3		—		6.3		—		—		—
Corporate	—		1.6		1.6		—		0.2		0.2
Total	$	6.3	$	1.6	$	7.9	$	2.0	$	1.4	$	3.4

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Background and Basis of Presentation - Narrative (Details)	3 Months Ended
	Dec. 31, 2016 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2
Acquired entity subsidiary investments owned percent	100.00%

XML

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase (Decrease) in Deferred Income Taxes	$ (11,400,000)	$ (500,000)
New Accounting Pronouncement, Early Adoption, Effect [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase (Decrease) in Deferred Income Taxes	2,700,000
Adjustments for New Accounting Pronouncement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt Issuance Costs, Net	$ 1,100,000		$ 1,200,000.0

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Supplemental Balance Sheet Information - Schedule of supplemental balance sheet information (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Balance Sheet Related Disclosures [Abstract]
Trade accounts receivable reserves	$ 20.8	$ 21.0
Accumulated depreciation on property, plant, and equipment	300.7	299.4
Accumulated amortization on intangible assets	178.4	174.2
Inventories:
Raw materials and components	49.7	51.4
Work in process	54.3	54.0
Finished goods	49.9	47.7
Total inventories	$ 153.9	$ 153.1

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Intangible Assets and Goodwill Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 571.1	$ 585.4
Accumulated amortization on intangible assets	(178.4)	(174.2)
Indefinite and Finite Lived Intangible Assets, Gross	698.3	715.7
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	0.2	0.2
Accumulated amortization on intangible assets	(0.1)	(0.1)
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	448.1	459.5
Accumulated amortization on intangible assets	(104.0)	(100.7)
Technology-Based Intangible Assets [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	75.1	77.9
Accumulated amortization on intangible assets	(34.0)	(33.3)
Computer Software, Intangible Asset [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	47.3	47.4
Accumulated amortization on intangible assets	(40.0)	(39.8)
Other Intangible Assets [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	0.4	0.4
Accumulated amortization on intangible assets	(0.3)	(0.3)
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 127.2	$ 130.3
Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	21 years

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Intangible Assets and Goodwill Goodwill (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Goodwill [Line Items]
Goodwill	$ 616.3	$ 634.3
Goodwill, Foreign Currency Translation Gain (Loss)	(18.0)
Process Equipment Group
Goodwill [Line Items]
Goodwill	608.0	626.0
Goodwill, Foreign Currency Translation Gain (Loss)	(18.0)
Batesville Services Inc [Member]
Goodwill [Line Items]
Goodwill	8.3	$ 8.3
Goodwill, Foreign Currency Translation Gain (Loss)	$ 0.0

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Financing Agreements - Schedule of borrowings (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Dec. 15, 2014
Financing Agreements
Total debt	$ 654.3		$ 608.9
Less: current portion	(16.4)		(13.8)
Long-term debt	637.9		595.1
$700 revolving credit facility (excluding outstanding letters of credit)
Financing Agreements
Long-term Debt, Gross	$ 245.7
Debt Instrument, Interest Rate During Period	1.40%	1.21%
Total debt			198.5
Term loan
Financing Agreements
Long-term Debt, Gross	$ 158.6
Debt Instrument, Interest Rate During Period	1.94%	1.46%
Total debt			162.0
$150 senior unsecured notes, net of discount (1)
Financing Agreements
Long-term Debt, Gross	$ 149.3
Total debt	148.6		148.5
$100 Series A Notes (2)
Financing Agreements
Long-term Debt, Gross	100.0
Total debt	99.6		99.6
Stated interest rate				4.60%
Borrowings [Member]
Financing Agreements
Total debt	$ 1.8		$ 0.3

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Financing Agreements - Narrative (Details)	3 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2016 USD ($)	Dec. 19, 2014 USD ($)	Dec. 15, 2014
Debt instrument [Line Items]
Maximum ratio of Indebtedness to EBITDA allowed	3.5
Minimum ratio of EBITDA to interest expense allowed	3.5
Restricted cash and cash equivalent	$ 800,000		$ 800,000
$700 revolving credit facility (excluding outstanding letters of credit)
Debt instrument [Line Items]
Line of credit facility, maximum borrowing capacity	309,600,000			$ 700,000,000.0
Letters of Credit Outstanding, Amount	9,300,000
Line of credit facility, remaining borrowing capacity	$ 445,000,000
Weighted average interest rates	1.40%	1.21%
Weighted average facility fee	0.23%	0.18%
Term loan
Debt instrument [Line Items]
Debt instrument, face amount				$ 180,000,000.0
Weighted average interest rates	1.94%	1.46%
$150 senior unsecured notes, net of discount (1)
Debt instrument [Line Items]
Debt instrument, face amount	$ 150,000,000	$ 150,000,000
Debt Issuance Costs, Net	700,000		800,000
Other Financing Agreements
Debt instrument [Line Items]
Line of credit facility, maximum borrowing capacity	202,000,000
Line of credit facility, amount utilized for bank guarantees	106,900,000
$100 Series A Notes (2)
Debt instrument [Line Items]
Stated interest rate					4.60%
Debt instrument, face amount	100,000,000	$ 100,000,000
Debt Issuance Costs, Net	400,000		400,000
Syndicated credit facility
Debt instrument [Line Items]
Line of credit facility, maximum borrowing capacity	150,000,000
Adjustments for New Accounting Pronouncement [Member]
Debt instrument [Line Items]
Debt Issuance Costs, Net	1,100,000		$ 1,200,000.0
Foreign Exchange Forward [Member] | Cash flow hedging
Debt instrument [Line Items]
Derivative, notional amount	$ 50,000,000

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Retirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
U.S. Pension Benefits
Retirement and Postemployment Benefits
Service costs	$ 1.0	$ 1.0
Interest costs	2.2	2.4
Expected return on plan assets	(3.3)	(2.4)
Amortization of unrecognized prior service costs, net	0.1	0.1
Amortization of net loss	1.1	0.9
Net pension costs	1.1	2.0
Non-U.S. Pension Benefits
Retirement and Postemployment Benefits
Service costs	0.4	0.6
Interest costs	0.2	0.6
Expected return on plan assets	(0.1)	(0.3)
Amortization of unrecognized prior service costs, net	0.0	0.0
Amortization of net loss	0.0	0.2
Net pension costs	$ 0.5	$ 1.1

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Retirement Benefits - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension Contributions	$ 80.0
Postemployment Benefits, Period Expense	0.1	$ 0.1
Defined Contribution Plan, Cost Recognized	$ 2.6	$ 2.3

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Income Taxes (Details)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	23.40%	29.30%

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Income per common share
Net income	[1]	$ 21.7	$ 20.0
Weighted average shares outstanding (basic - in millions)		63,700,000	63,200,000
Effect of dilutive stock options and other unvested equity awards (in millions)		400,000	600,000
Weighted average shares outstanding (diluted - in millions)		64,100,000	63,800,000
Basic earnings per share		$ 0.34	$ 0.32
Diluted earnings per share		$ 0.34	$ 0.31
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)		700,000	500,000
Performance-based stock awards
Income per common share
Shares with anti-dilutive effect excluded from the computation of diluted earnings per share (in millions)		600,000	1,300,000

[1] Net income attributable to Hillenbrand

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Earnings Per Share - Narrative (Details) - shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Antidilutive securities excluded from computation of earnings per share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	700,000	500,000
Performance-based stock awards (maximum that can be earned)
Antidilutive securities excluded from computation of earnings per share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	600,000	1,300,000

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Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Cash dividends paid on common stock	$ 13.0	$ 12.7
Amount of shares repurchased	$ 0.0	$ 3.0
Common stock, shares issued	616,000
Treasury Stock
Class of Stock [Line Items]
Common stock, shares issued	526,000

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Other Comprehensive Income (Loss) - Schedule of changes in accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
Balance at the beginning of the period		$ (129.8)
Other comprehensive income before reclassifications
Before tax amount		(14.6)	$ (15.4)
Tax expense		(2.4)	0.2
After tax amount		(17.0)	(15.2)
Amounts reclassified from accumulated other comprehensive income(1)	[1]	0.9	1.3
Total changes in other comprehensive income (loss), net of tax		(16.1)	(13.9)
Balance at the end of the period		(145.8)
Pension and Postretirement
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
Balance at the beginning of the period		(67.5)	(54.4)
Other comprehensive income before reclassifications
Before tax amount		5.7	0.0
Tax expense		(2.1)	0.0
After tax amount		3.6	0.0
Amounts reclassified from accumulated other comprehensive income(1)	[1]	0.8	0.7
Total changes in other comprehensive income (loss), net of tax		4.4	0.7
Balance at the end of the period		(63.1)	(53.7)
Currency Translation
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
Balance at the beginning of the period		(61.6)	(52.1)
Other comprehensive income before reclassifications
Before tax amount		(20.8)	(15.1)
Tax expense		0.0	0.0
After tax amount		(20.8)	(15.1)
Amounts reclassified from accumulated other comprehensive income(1)	[1]	0.0	0.0
Total changes in other comprehensive income (loss), net of tax		(20.8)	(15.1)
Balance at the end of the period		(82.4)	(67.2)
Net Unrealized Gain (Loss) on Derivative Instruments
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
Balance at the beginning of the period		(0.7)	(1.4)
Other comprehensive income before reclassifications
Before tax amount		0.6	(0.2)
Tax expense		(0.3)	0.2
After tax amount		0.3	0.0
Amounts reclassified from accumulated other comprehensive income(1)	[1]	0.1	0.6
Total changes in other comprehensive income (loss), net of tax		0.4	0.6
Balance at the end of the period		(0.3)	(0.8)
Total Attributable to Hillenbrand, Inc.
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward]
Balance at the beginning of the period		(129.8)	(107.9)
Other comprehensive income before reclassifications
Before tax amount		(14.5)	(15.3)
Tax expense		(2.4)	0.2
After tax amount		(16.9)	(15.1)
Amounts reclassified from accumulated other comprehensive income(1)	[1]	0.9	1.3
Total changes in other comprehensive income (loss), net of tax		(16.0)	(13.8)
Balance at the end of the period		(145.8)	(121.7)
Noncontrolling Interests
Other comprehensive income before reclassifications
Before tax amount		(0.1)	(0.1)
Tax expense		0.0	0.0
After tax amount		(0.1)	(0.1)
Amounts reclassified from accumulated other comprehensive income(1)	[1]	0.0	0.0
Total changes in other comprehensive income (loss), net of tax		$ (0.1)	$ (0.1)

[1] Amounts are net of tax.

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Other Comprehensive Income (Loss) - Schedule of reclassifications (Details) - USD ($) $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Affected Line in the Consolidated Statement of Operations:
Net revenue	[1]	$ 356.1	$ 351.7
Cost of goods sold		(230.1)	(223.5)
Operating expenses		(82.8)	(82.1)
Other income (expense), net		(1.3)	(0.7)
Tax expense		(6.7)	(8.7)
Total reclassifications for the period, net of tax	[2]	0.9	1.3
Amortization of Pension and Postretirement
Affected Line in the Consolidated Statement of Operations:
Total reclassifications for the period, net of tax	[2]	0.8	0.7
Derivative Instruments
Affected Line in the Consolidated Statement of Operations:
Total reclassifications for the period, net of tax	[2]	0.1	0.6
Reclassifications out of accumulated other comprehensive income (loss)
Affected Line in the Consolidated Statement of Operations:
Net revenue		0.1	0.5
Cost of goods sold		0.9	0.7
Operating expenses		0.3	0.2
Other income (expense), net		0.1	0.3
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax		(1.4)	(1.7)
Tax expense		(0.5)	(0.4)
Total reclassifications for the period, net of tax		0.9	1.3
Reclassifications out of accumulated other comprehensive income (loss) | Net Loss Recognized
Affected Line in the Consolidated Statement of Operations:
Net revenue		0.0	0.0
Cost of goods sold		0.8	0.6
Operating expenses		0.3	0.2
Other income (expense), net		0.0	0.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax		(1.1)	(0.8)
Reclassifications out of accumulated other comprehensive income (loss) | Prior Service Costs Recognized
Affected Line in the Consolidated Statement of Operations:
Net revenue		0.0	0.0
Cost of goods sold		0.1	0.1
Operating expenses		0.0	0.0
Other income (expense), net		0.0	0.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax		(0.1)	(0.1)
Reclassifications out of accumulated other comprehensive income (loss) | Derivative Instruments
Affected Line in the Consolidated Statement of Operations:
Net revenue		0.1	0.5
Cost of goods sold		0.0	0.0
Operating expenses		0.0	0.0
Other income (expense), net		0.1	0.3
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax		$ (0.2)	$ (0.8)

[1] We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.

[2] Amounts are net of tax.

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Share-Based Compensation - Schedule of stock-based compensation costs (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Compensation Related Costs [Abstract]
Share-based compensation costs	$ 2.6	$ 0.6
Less impact of income tax benefit	1.0	0.2
Share-based compensation costs, net of tax	$ 1.6	$ 0.4

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Share-Based Compensation - Schedule of stock-based awards granted (Details)	3 Months Ended
	Dec. 31, 2016 shares
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period	473,658
Time-based stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted in period	35,329
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	299,429

XML

Share-Based Compensation - Narrative (Details)	3 Months Ended
	Dec. 31, 2016 $ / shares shares
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	$ 36.08
Stock option granted, weighted-average grant date fair value	8.37
Time-based stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, grant date fair value	36.15
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	$ 39.70
Performance-based stock awards granted, number of units | shares	156,994
Award performance measurement period	3 years

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Other Income (Expense), Net (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accumulated other comprehensive income (loss) [Line Items]
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions	$ 0.7	$ (0.4)
Foreign currency exchange loss, net	(0.8)	(0.1)
Other, net	(1.2)	(0.2)
Other income (expense), net	$ (1.3)	$ (0.7)

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Commitments and Contingencies - Narrative (Details) $ in Millions	3 Months Ended
	Dec. 31, 2016 USD ($)
General claims and lawsuits | Minimum
Commitments and Contingencies
Deductibles and self-insured retentions per occurrence or per claim	$ 0.5

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Fair Value Measurements - Schedule of financial assets and liabilities (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 19, 2014
Financial assets and liabilities at carrying value and fair value
Cash and cash equivalents	$ 46,600,000	$ 52,000,000	$ 55,100,000	$ 48,300,000
Level 1
Assets:
Cash and cash equivalents	46,600,000
Investments in rabbi trust	4,200,000
Derivative instruments	0
Liabilities:
Derivative instruments	0
Level 2
Assets:
Cash and cash equivalents	0
Investments in rabbi trust	0
Derivative instruments	2,000,000
Liabilities:
Derivative instruments	5,400,000
Level 3
Assets:
Cash and cash equivalents	0
Investments in rabbi trust	0
Derivative instruments	0
Liabilities:
Derivative instruments	0
$150 senior unsecured notes
Financial assets and liabilities at carrying value and fair value
Debt instrument, face amount	150,000,000		150,000,000
Assets:
Long-term Debt, Gross	149,300,000
$150 senior unsecured notes | Level 1
Liabilities:
Debt instruments	160,500,000
$150 senior unsecured notes | Level 2
Liabilities:
Debt instruments	0
$150 senior unsecured notes | Level 3
Liabilities:
Debt instruments	0
Revolving credit facility
Assets:
Long-term Debt, Gross	245,700,000
Revolving credit facility | Level 1
Liabilities:
Debt instruments	0
Revolving credit facility | Level 2
Liabilities:
Debt instruments	245,700,000
Revolving credit facility | Level 3
Liabilities:
Debt instruments	0
Term loan
Financial assets and liabilities at carrying value and fair value
Debt instrument, face amount					$ 180,000,000.0
Assets:
Long-term Debt, Gross	158,600,000
Term loan | Level 1
Liabilities:
Debt instruments	0
Term loan | Level 2
Liabilities:
Debt instruments	158,600,000
Term loan | Level 3
Liabilities:
Debt instruments	0
$100 Series A Notes
Financial assets and liabilities at carrying value and fair value
Debt instrument, face amount	100,000,000		$ 100,000,000
Assets:
Long-term Debt, Gross	100,000,000
$100 Series A Notes | Level 1
Liabilities:
Debt instruments	0
$100 Series A Notes | Level 2
Liabilities:
Debt instruments	104,900,000
$100 Series A Notes | Level 3
Liabilities:
Debt instruments	0
Derivatives | Cash flow hedging
Financial assets and liabilities at carrying value and fair value
Derivative, notional amount	202,700,000
Reported Value Measurement
Financial assets and liabilities at carrying value and fair value
Cash and cash equivalents	46,600,000
Assets:
Investments in rabbi trust	4,200,000
Derivative instruments	2,000,000
Liabilities:
Derivative instruments	$ 5,400,000

XML

Segment and Geographical Information - Schedule of net revenue and assets by segment (Details) - USD ($) $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Segment and Geographical Information
Net revenue	[1]	$ 356.1	$ 351.7
Total assets assigned		1,877.7		$ 1,959.7
Property, plant, and equipment, net		146.0		152.5
United States
Segment and Geographical Information
Net revenue		201.3	198.9
Property, plant, and equipment, net		86.1		89.5
GERMANY
Segment and Geographical Information
Net revenue		104.4	93.4
Property, plant, and equipment, net		33.7		35.8
All other foreign business units
Segment and Geographical Information
Net revenue		50.4	59.4
Property, plant, and equipment, net		26.2		27.2
Operating segments
Segment and Geographical Information
Net revenue		356.1	351.7
Corporate
Segment and Geographical Information
Adjusted EBITDA		(7.3)	(7.0)
Total assets assigned		31.0		53.3
Process Equipment Group
Segment and Geographical Information
Net revenue		221.6	214.0
Process Equipment Group | Operating segments
Segment and Geographical Information
Adjusted EBITDA		32.7	33.0
Total assets assigned		1,640.9		1,694.6
Batesville
Segment and Geographical Information
Net revenue		134.5	137.7
Batesville | Operating segments
Segment and Geographical Information
Adjusted EBITDA		31.0	$ 31.8
Total assets assigned		$ 205.8		$ 211.8

[1] We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.

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Segment and Geographical Information - Schedule of reconciliation of segment (Details 2) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Segment and Geographical Information
Interest income	$ (0.2)	$ (0.3)
Interest expense	6.1	5.9
Income tax expense	6.7	8.7
Depreciation and amortization	15.0	16.0
Business acquisition and integration	0.3	1.7
Business Combination, Inventory Step Up Costs	0.0	1.4
Restructuring and restructuring related	6.6	3.4
Consolidated net income	21.9	21.0
Corporate
Segment and Geographical Information
Adjusted EBITDA	(7.3)	(7.0)
Process Equipment Group | Operating segments
Segment and Geographical Information
Adjusted EBITDA	32.7	33.0
Batesville | Operating segments
Segment and Geographical Information
Adjusted EBITDA	$ 31.0	$ 31.8

XML

Condensed Consolidating Information - Consolidating statements of income (Details) - USD ($) $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Percentage ownership of subsidiaries with indebtedness guaranteed by the parent		100.00%
Condensed Consolidating Statements of Income
Net revenue	[1]	$ 356.1	$ 351.7
Cost of goods sold		230.1	223.5
Gross profit		126.0	128.2
Operating expenses		82.8	82.1
Amortization of Intangible Assets		7.2	9.8
Interest expense		6.1	5.9
Other income (expense), net		(1.3)	(0.7)
Income before income taxes		28.6	29.7
Income tax expense (benefit)		6.7	8.7
Consolidated net income		21.9	21.0
Less: Net income attributable to noncontrolling interests		0.2	1.0
Total reclassifications for the period, net of tax	[2]	21.7	20.0
Consolidated comprehensive income		5.8	7.1
Less: Comprehensive income attributable to noncontrolling interests		0.1	0.9
Comprehensive income (loss)	[3],[4]	5.7	6.2
Reportable legal entities | Parent
Condensed Consolidating Statements of Income
Operating expenses		9.6	7.2
Amortization of Intangible Assets		0.0	0.0
Interest expense		5.4	5.2
Other income (expense), net		0.0	0.1
Equity in net income (loss) of subsidiaries		28.8	26.4
Income before income taxes		13.8	14.1
Income tax expense (benefit)		(7.9)	(5.9)
Consolidated net income		21.7	20.0
Total reclassifications for the period, net of tax	[2]	21.7	20.0
Consolidated comprehensive income		5.7	6.2
Comprehensive income (loss)	[4]	5.7	6.2
Reportable legal entities | Guarantors
Condensed Consolidating Statements of Income
Net revenue		202.7	197.3
Cost of goods sold		109.2	102.2
Gross profit		93.5	95.1
Operating expenses		58.7	60.1
Amortization of Intangible Assets		3.4	2.3
Interest expense		0.0	0.0
Other income (expense), net		0.0	(1.0)
Equity in net income (loss) of subsidiaries		2.2	2.2
Income before income taxes		33.6	33.9
Income tax expense (benefit)		11.7	12.0
Consolidated net income		21.9	21.9
Total reclassifications for the period, net of tax	[2]	21.9	21.9
Consolidated comprehensive income		21.5	30.8
Comprehensive income (loss)	[4]	21.5	30.8
Reportable legal entities | Non-Guarantors
Condensed Consolidating Statements of Income
Net revenue		202.9	205.2
Cost of goods sold		145.5	146.7
Gross profit		57.4	58.5
Operating expenses		39.4	40.2
Amortization of Intangible Assets		3.8	7.5
Interest expense		0.7	0.7
Other income (expense), net		(1.3)	0.2
Income before income taxes		12.2	10.3
Income tax expense (benefit)		2.9	2.6
Consolidated net income		9.3	7.7
Less: Net income attributable to noncontrolling interests		0.2	1.0
Total reclassifications for the period, net of tax	[2]	9.1	6.7
Consolidated comprehensive income		(11.6)	(6.8)
Less: Comprehensive income attributable to noncontrolling interests		0.1	0.9
Comprehensive income (loss)	[4]	(11.7)	(7.7)
Eliminations
Condensed Consolidating Statements of Income
Net revenue		(49.5)	(50.8)
Cost of goods sold		(24.6)	(25.4)
Gross profit		(24.9)	(25.4)
Operating expenses		(24.9)	(25.4)
Other income (expense), net		0.0
Equity in net income (loss) of subsidiaries		(31.0)	(28.6)
Income before income taxes		(31.0)	(28.6)
Consolidated net income		(31.0)	(28.6)
Total reclassifications for the period, net of tax	[2]	(31.0)	(28.6)
Consolidated comprehensive income		(9.8)	(23.1)
Comprehensive income (loss)	[4]	$ (9.8)	$ (23.1)

[1] We attribute revenue to a geography based upon the location of the business unit that consummates the external sale.

[2] Net income attributable to Hillenbrand

[3] Comprehensive income attributable to Hillenbrand

[4] Comprehensive income attributable to Hillenbrand

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Condensed Consolidating Information - Consolidating balance sheet (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
ASSETS
Cash and cash equivalents	$ 46.6	$ 52.0	$ 55.1	$ 48.3
Trade receivables, net	178.9	205.0
Unbilled receivables from long-term manufacturing contracts	138.2	125.8
Inventories	153.9	153.1
Deferred income taxes	0.0	23.9
Prepaid expense	19.2	18.2
Other current assets	23.4	22.3
Total current assets	560.2	600.3
Property, plant, and equipment, net	146.0	152.5
Intangible assets, net	519.9	541.5
Goodwill	616.3	634.3
Other assets	35.3	31.1
Total Assets	1,877.7	1,959.7
LIABILITIES
Trade accounts payable	120.3	135.7
Liabilities from long-term manufacturing contracts and advances	77.5	78.6
Current portion of long-term debt	16.4	13.8
Accrued compensation	47.6	57.3
Deferred income taxes	0.0	22.8
Other current liabilities	123.4	125.5
Total current liabilities	385.2	433.7
Long-term debt	637.9	595.1
Accrued pension and postretirement healthcare	139.6	232.7
Deferred income taxes	36.8	22.6
Other long-term liabilities	27.7	29.4
Total Liabilities	1,227.2	1,313.5
Hillenbrand Shareholders’ Equity	636.5	632.3
Stockholders' Equity Attributable to Parent [Abstract]
Noncontrolling interests	14.0	13.9
Total Shareholders’ Equity	650.5	646.2
Total Liabilities and Equity	1,877.7	1,959.7
Reportable legal entities | Parent
ASSETS
Cash and cash equivalents	0.0	4.4	0.7	0.3
Deferred income taxes	0.0	1.6
Prepaid expense	2.7	2.2
Intercompany receivables	0.0	0.0
Other current assets	5.3	4.6
Total current assets	8.0	12.8
Property, plant, and equipment, net	4.8	4.9
Intangible assets, net	3.9	4.1
Investment in consolidated subsidiaries	2,169.1	2,143.4
Other assets	24.6	18.9
Total Assets	2,210.4	2,184.1
LIABILITIES
Trade accounts payable	0.2	0.4
Current portion of long-term debt	14.6	13.5
Accrued compensation	2.8	4.7
Intercompany payables	1,056.5	1,098.8
Other current liabilities	9.3	13.9
Total current liabilities	1,083.4	1,131.3
Long-term debt	488.2	416.6
Accrued pension and postretirement healthcare	1.1	1.1
Deferred income taxes	0.0	0.0
Other long-term liabilities	1.2	2.8
Total Liabilities	1,573.9	1,551.8
Hillenbrand Shareholders’ Equity	636.5	632.3
Stockholders' Equity Attributable to Parent [Abstract]
Total Shareholders’ Equity	636.5	632.3
Total Liabilities and Equity	2,210.4	2,184.1
Reportable legal entities | Guarantors
ASSETS
Cash and cash equivalents	7.2	5.6	6.5	7.1
Trade receivables, net	105.8	120.6
Unbilled receivables from long-term manufacturing contracts	10.2	10.6
Inventories	73.6	69.8
Deferred income taxes	0.0	17.4
Prepaid expense	6.7	6.5
Intercompany receivables	974.3	1,003.1
Other current assets	1.5	1.5
Total current assets	1,179.3	1,235.1
Property, plant, and equipment, net	63.8	65.7
Intangible assets, net	221.4	220.4
Goodwill	284.3	271.8
Investment in consolidated subsidiaries	664.1	820.2
Other assets	22.8	22.7
Total Assets	2,435.7	2,635.9
LIABILITIES
Trade accounts payable	24.9	28.4
Liabilities from long-term manufacturing contracts and advances	21.0	14.0
Accrued compensation	17.1	17.3
Deferred income taxes		0.0
Intercompany payables	5.0	4.5
Other current liabilities	41.3	39.8
Total current liabilities	109.3	104.0
Accrued pension and postretirement healthcare	40.3	127.0
Deferred income taxes	6.0	5.8
Other long-term liabilities	16.9	16.3
Total Liabilities	172.5	253.1
Hillenbrand Shareholders’ Equity	2,263.2	2,382.8
Stockholders' Equity Attributable to Parent [Abstract]
Total Shareholders’ Equity	2,263.2	2,382.8
Total Liabilities and Equity	2,435.7	2,635.9
Reportable legal entities | Non-Guarantors
ASSETS
Cash and cash equivalents	39.4	42.0	$ 47.9	$ 40.9
Trade receivables, net	73.1	84.4
Unbilled receivables from long-term manufacturing contracts	128.0	115.2
Inventories	82.9	86.1
Deferred income taxes	0.0	0.0
Prepaid expense	9.8	9.5
Intercompany receivables	84.6	97.4
Other current assets	16.3	15.9
Total current assets	434.1	450.5
Property, plant, and equipment, net	77.4	81.9
Intangible assets, net	294.6	317.0
Goodwill	332.0	362.5
Other assets	3.8	0.8
Total Assets	1,141.9	1,212.7
LIABILITIES
Trade accounts payable	95.2	106.9
Liabilities from long-term manufacturing contracts and advances	56.5	64.6
Current portion of long-term debt	1.8	0.3
Accrued compensation	27.7	35.3
Deferred income taxes	0.0	18.1
Other current liabilities	72.2	71.6
Total current liabilities	253.4	296.8
Long-term debt	149.7	178.5
Accrued pension and postretirement healthcare	98.2	104.6
Deferred income taxes	47.0	27.8
Other long-term liabilities	9.6	10.3
Total Liabilities	557.9	618.0
Hillenbrand Shareholders’ Equity	570.0	580.8
Stockholders' Equity Attributable to Parent [Abstract]
Noncontrolling interests	14.0	13.9
Total Shareholders’ Equity	584.0	594.7
Total Liabilities and Equity	1,141.9	1,212.7
Consolidation, Eliminations [Member]
ASSETS
Inventories	(2.6)	(2.8)
Deferred income taxes		4.9
Intercompany receivables	(1,058.9)	(1,100.5)
Other current assets	0.3	0.3
Total current assets	(1,061.2)	(1,098.1)
Investment in consolidated subsidiaries	(2,833.2)	(2,963.6)
Other assets	(15.9)	(11.3)
Total Assets	(3,910.3)	(4,073.0)
LIABILITIES
Trade accounts payable	0.0	0.0
Deferred income taxes		4.7
Intercompany payables	(1,061.5)	(1,103.3)
Other current liabilities	0.6	0.2
Total current liabilities	(1,060.9)	(1,098.4)
Deferred income taxes	(16.2)	(11.0)
Other long-term liabilities	0.0
Total Liabilities	(1,077.1)	(1,109.4)
Hillenbrand Shareholders’ Equity	(2,833.2)	(2,963.6)
Stockholders' Equity Attributable to Parent [Abstract]
Total Shareholders’ Equity	(2,833.2)	(2,963.6)
Total Liabilities and Equity	$ (3,910.3)	$ (4,073.0)

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Condensed Consolidating Information - Consolidating cash flow statement (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Condensed Cash Flow Statements
Net cash provided by (used in) operating activities	$ (48.7)	$ 35.7
Investing activities:
Capital expenditures	(4.6)	(6.5)
Proceeds from sales of property, plant, and equipment	0.0	0.1
Payments to Acquire Businesses, Net of Cash Acquired	0.0	(105.7)
Other, net	0.1	0.0
Net cash used in investing activities	(4.5)	(112.1)
Financing activities:
Repayments on term loan	(3.4)	(3.4)
Proceeds from revolving credit facilities	182.1	182.3
Repayments on revolving credit facilities	(125.9)	(81.5)
Payment of dividends on common stock	(13.0)	(12.7)
Repurchases of common stock	0.0	(3.0)
Net proceeds (payments) on stock plans	8.6	(0.8)
Other, net	1.1	0.8
Net cash provided by financing activities	49.5	81.7
Effect of exchange rates on cash and cash equivalents	(1.7)	1.5
Net cash flows	(5.4)	6.8
At beginning of period	52.0	48.3
At end of period	46.6	55.1
Reportable legal entities | Parent
Condensed Cash Flow Statements
Net cash provided by (used in) operating activities	(72.6)	(1.7)
Investing activities:
Capital expenditures	(0.2)	(0.3)
Proceeds from sales of property, plant, and equipment		0.0
Other, net	0.2	0.0
Net cash used in investing activities	0.0	(0.3)
Financing activities:
Repayments on term loan	(3.4)	(3.4)
Proceeds from revolving credit facilities	135.0	79.0
Repayments on revolving credit facilities	(59.0)	(57.5)
Payment of dividends on common stock	(13.0)	(12.7)
Repurchases of common stock	0.0	(3.0)
Net proceeds (payments) on stock plans	8.6	(0.8)
Other, net	0.0	0.8
Net cash provided by financing activities	68.2	2.4
Net cash flows	(4.4)	0.4
At beginning of period	4.4	0.3
At end of period	0.0	0.7
Reportable legal entities | Guarantors
Condensed Cash Flow Statements
Net cash provided by (used in) operating activities	3.6	3.2
Investing activities:
Capital expenditures	(2.0)	(3.8)
Proceeds from sales of property, plant, and equipment	0.0	0.0
Other, net	0.0	0.0
Net cash used in investing activities	(2.0)	(3.8)
Financing activities:
Net cash provided by financing activities	0.0	0.0
Net cash flows	1.6	(0.6)
At beginning of period	5.6	7.1
At end of period	7.2	6.5
Reportable legal entities | Non-Guarantors
Condensed Cash Flow Statements
Net cash provided by (used in) operating activities	20.3	34.2
Investing activities:
Capital expenditures	(2.4)	(2.4)
Proceeds from sales of property, plant, and equipment	0.0	0.1
Payments to Acquire Businesses, Net of Cash Acquired	0.0	(105.7)
Other, net	(0.1)	0.0
Net cash used in investing activities	(2.5)	(108.0)
Financing activities:
Proceeds from revolving credit facilities	47.1	103.3
Repayments on revolving credit facilities	(66.9)	(24.0)
Other, net	1.1	0.0
Net cash provided by financing activities	(18.7)	79.3
Effect of exchange rates on cash and cash equivalents	(1.7)	1.5
Net cash flows	(2.6)	7.0
At beginning of period	42.0	40.9
At end of period	39.4	47.9
Eliminations
Condensed Cash Flow Statements
Net cash provided by (used in) operating activities	0.0	0.0
Financing activities:
Net cash provided by financing activities	$ 0.0	$ 0.0

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Restructuring - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Restructuring and Related Cost
Restructuring charges	$ 7.9	$ 3.4
Restructuring and restructuring related	6.6	3.4
Restructuring reserve, current	6.9
Corporate
Restructuring and Related Cost
Restructuring charges	1.6	0.2
Process Equipment Group
Restructuring and Related Cost
Restructuring charges	0.0	3.2
Batesville
Restructuring and Related Cost
Restructuring charges	6.3	0.0
Operating expense
Restructuring and Related Cost
Restructuring charges	1.6	1.4
Operating expense | Process Equipment Group
Restructuring and Related Cost
Restructuring charges	0.0	1.2
Operating expense | Batesville
Restructuring and Related Cost
Restructuring charges	0.0	0.0
Operating expense | Corporate
Restructuring and Related Cost
Restructuring charges	1.6	0.2
Cost of goods, segment | Process Equipment Group
Restructuring and Related Cost
Restructuring charges	0.0	2.0
Cost of goods, segment | Batesville
Restructuring and Related Cost
Restructuring charges	6.3	0.0
Cost of goods, segment | Corporate
Restructuring and Related Cost
Restructuring charges	0.0	0.0
Cost of Goods, Total [Member]
Restructuring and Related Cost
Restructuring charges	$ 6.3	$ 2.0

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Business Acquisitions (Details) € in Millions	Feb. 01, 2016 USD ($)	Oct. 02, 2015 USD ($)	Oct. 02, 2015 EUR (€)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 19, 2014 USD ($)
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs				$ 300,000	$ 1,700,000
ABEL Pumps LP and Abel GmbH & Co. KG [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross | €			€ 95.0
Goodwill, Acquired During Period		$ 36,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		58,000,000
Red Valve Company, Inc. [Member] [Domain]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 130,400,000
Goodwill, Acquired During Period	60,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	61,000,000
$700 revolving credit facility (excluding outstanding letters of credit)
Business Acquisition [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 309,600,000		$ 700,000,000.0
$180 term loan
Business Acquisition [Line Items]
Debt Instrument, Face Amount						$ 180,000,000.0
Technology [Member] | ABEL Pumps LP and Abel GmbH & Co. KG [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		9,000,000
Technology [Member] | Red Valve Company, Inc. [Member] [Domain]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	8,000,000
Trade Names [Member] | ABEL Pumps LP and Abel GmbH & Co. KG [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		5,000,000
Trade Names [Member] | Red Valve Company, Inc. [Member] [Domain]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	4,000,000
Order or Production Backlog [Member] | ABEL Pumps LP and Abel GmbH & Co. KG [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		3,000,000
Order or Production Backlog [Member] | Red Valve Company, Inc. [Member] [Domain]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	1,000,000
Customer Relationships [Member] | ABEL Pumps LP and Abel GmbH & Co. KG [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 41,000,000
Customer Relationships [Member] | Red Valve Company, Inc. [Member] [Domain]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 48,000,000