Condensed Consolidating Information

3 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Certain 100% owned domestic subsidiaries of Hillenbrand fully and unconditionally, jointly and severally, agreed to guarantee all of the indebtedness and guarantee obligations relating to obligations under its senior unsecured notes. The following are the condensed consolidating financial statements, including the guarantors, which present the statements of operations, 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 Operations



	Three Months Ended December 31, 2019														Three Months Ended December 31, 2018
	Parent			Guarantors			Non- Guarantors		Eliminations			Consolidated			Parent			Guarantors		Non- Guarantors		Eliminations			Consolidated
Net revenue	$	—		$	205.5		$	417.0	$	(55.6	)	$	566.9		$	—		$	216.1	$	247.8	$	(53.6	)	$	410.3
Cost of goods sold	—			117.7			306.3		(28.9		)	395.1			—			115.8		174.4		(26.9		)	263.3
Gross profit	—			87.8			110.7		(26.7		)	171.8			—			100.3		73.4		(26.7		)	147.0
Operating expenses	48.6			58.5			77.0		(26.7		)	157.4			10.2			61.4		45.8		(26.7		)	90.7
Amortization expense	—			3.3			11.5		—			14.8			—			3.3		4.5		—			7.8
Interest expense	5.2			—			9.5		—			14.7			4.5			—		1.0		—			5.5
Other income (expense), net	0.9			(0.9		)	1.9		—			1.9			(0.3		)	—		0.8		—			0.5
Equity in net income of subsidiaries	25.6			1.8			—		(27.4		)	—			42.0			2.2		—		(44.2		)	—
(Loss) income before income taxes	(27.3		)	26.9			14.6		(27.4		)	(13.2		)	27.0			37.8		22.9		(44.2		)	43.5
Income tax (benefit) expense	(24.2		)	6.2			5.6		—			(12.4		)	(1.3		)	9.9		5.9		—			14.5
Consolidated net (loss) income	(3.1		)	20.7			9.0		(27.4		)	(0.8		)	28.3			27.9		17.0		(44.2		)	29.0
Less: Net income attributable to
noncontrolling interests	—			—			2.3		—			2.3			—			—		0.7		—			0.7
Net (loss) income attributable to Hillenbrand	$	(3.1	)	$	20.7		$	6.7	$	(27.4	)	$	(3.1	)	$	28.3		$	27.9	$	16.3	$	(44.2	)	$	28.3
Consolidated comprehensive income	$	16.8		$	18.9		$	25.9	$	(42.6	)	$	19.0		$	18.2		$	27.8	$	11.8	$	(38.7	)	$	19.1
Less: Comprehensive income attributable
to noncontrolling interests	—			—			2.2		—			2.2			—			—		0.9		—			0.9
Comprehensive income attributable to Hillenbrand	$	16.8		$	18.9		$	23.7	$	(42.6	)	$	16.8		$	18.2		$	27.8	$	10.9	$	(38.7	)	$	18.2

Condensed Consolidating Balance Sheets



	December 31, 2019											September 30, 2019
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated		Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Cash and cash equivalents	$	1.3	$	1.7	$	139.4	$	—		$	142.4	$	283.1	$	9.6	$	106.3	$	—		$	399.0
Trade receivables, net	—		100.7		243.6		—			344.3		—		113.6		103.8		—			217.4
Receivables from long-term manufacturing contracts	—		11.7		194.2		—			205.9		—		9.8		171.3		—			181.1
Inventories	—		79.0		365.9		(2.8		)	442.1		—		78.2		101.2		(2.8		)	176.6
Intercompany receivables	70.5		1,225.4		—		(1,295.9		)	—		—		1,179.7		—		(1,179.7		)	—
Prepaid expenses and other current assets	6.3		8.0		72.5		0.6			87.4		2.5		6.1		40.1		0.4			49.1
Total current assets	78.1		1,426.5		1,015.6		(1,298.1		)	1,222.1		285.6		1,397.0		522.7		(1,182.1		)	1,023.2
Property, plant and equipment, net	3.4		60.9		333.8		—			398.1		3.8		61.2		75.3		—			140.3
Operating lease right-of-use assets	0.8		13.4		158.3		—			172.5		—		—		—		—			—
Intangible assets, net	2.4		177.8		1,137.5		—			1,317.7		2.4		181.4		271.1		—			454.9
Goodwill	—		225.0		1,031.9		—			1,256.9		—		225.0		353.0		—			578.0
Investment in consolidated subsidiaries	2,913.7		655.1		—		(3,568.8		)	—		2,266.4		655.2		—		(2,921.6		)	—
Other long-term assets	48.3		24.6		37.0		(56.5		)	53.4		33.8		20.5		3.1		(25.2		)	32.2
Total Assets	$	3,046.7	$	2,583.3	$	3,714.1	$	(4,923.4	)	$	4,420.7	$	2,592.0	$	2,540.3	$	1,225.2	$	(4,128.9	)	$	2,228.6

Trade accounts payable	$	5.0	$	67.0	$	277.0	$	—		$	349.0	$	2.6	$	59.0	$	174.6	$	—		$	236.2
Liabilities from long-term manufacturing contracts and advances	—		17.3		165.8		—			183.1		—		13.5		144.7		—			158.2
Current portion of long-term debt	36.2		—		5.9		—			42.1		—		—		—		—			—
Accrued compensation	2.6		15.1		68.5		—			86.2		6.9		20.8		45.5		—			73.2
Intercompany payables	—		—		1,298.7		(1,298.7		)	—		1,167.0		10.2		5.3		(1,182.5		)	—
Other current liabilities	29.8		58.1		148.4		(16.9		)	219.4		19.2		45.0		67.1		(9.6		)	121.7
Total current liabilities	73.6		157.5		1,964.3		(1,315.6		)	879.8		1,195.7		148.5		437.2		(1,192.1		)	589.3
Long-term debt	1,822.4		—		0.2		—			1,822.6		619.5		—		—		—			619.5
Accrued pension and postretirement healthcare	1.0		31.1		129.9		—			162.0		0.8		32.1		98.4		—			131.3
Operating lease liabilities	0.4		10.5		126.2		—			137.1		—		—		—		—			—
Deferred income taxes	—		20.4		234.0		(39.0		)	215.4		—		24.0		64.8		(15.2		)	73.6
Other long-term liabilities	22.2		16.6		21.2		—			60.0		21.9		12.5		10.7		—			45.1
Total Liabilities	1,919.6		236.1		2,475.8		(1,354.6		)	3,276.9		1,837.9		217.1		611.1		(1,207.3		)	1,458.8
Hillenbrand Shareholders’ Equity	1,127.1		2,347.2		1,221.6		(3,568.8		)	1,127.1		754.1		2,323.2		598.4		(2,921.6		)	754.1
Noncontrolling interests	—		—		16.7		—			16.7		—		—		15.7		—			15.7
Total Shareholders’ Equity	1,127.1		2,347.2		1,238.3		(3,568.8		)	1,143.8		754.1		2,323.2		614.1		(2,921.6		)	769.8
Total Liabilities and Shareholders’ Equity	$	3,046.7	$	2,583.3	$	3,714.1	$	(4,923.4	)	$	4,420.7	$	2,592.0	$	2,540.3	$	1,225.2	$	(4,128.9	)	$	2,228.6

Condensed Consolidating Statements of Cash Flows



	Three Months Ended December 31, 2019														Three Months Ended December 31, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated			Parent			Guarantors			Non- Guarantors			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	3.6		$	(5.6	)	$	19.8		$	—	$	17.8		$	(17.5	)	$	0.1		$	52.9		$	—	$	35.5

Investing activities:
Capital expenditures	(0.2		)	(2.3		)	(3.8		)	—		(6.3		)	—			(1.7		)	(1.9		)	—		(3.6		)
Proceeds from sales of property, plant, and equipment	—			—			13.3			—		13.3			—			—			—			—		—
Acquisition of business, net of cash acquired	(1,503.1		)	—			—			—		(1,503.1		)	—			—			(26.2		)	—		(26.2		)
Net cash (used in) provided by investing activities	(1,503.3		)	(2.3		)	9.5			—		(1,496.1		)	—			(1.7		)	(28.1		)	—		(29.8		)

Financing activities:
Proceeds from issuance of long-term debt	725.0			—			—			—		725.0			—			—			—			—		—
Repayments on term loan	(9.1		)	—			—			—		(9.1		)	—			—			—			—		—
Proceeds from revolving credit facilities, net of financing costs	747.3			—			0.2			—		747.5			106.0			—			54.2			—		160.2
Repayments on revolving credit facilities	(222.5		)	—			—			—		(222.5		)	(72.3		)	—			(67.3		)	—		(139.6		)
Payment of deferred financing costs	(5.4		)	—			—			—		(5.4		)	—			—			—			—		—
Payment of dividends on common stock	(15.8		)	—			—			—		(15.8		)	(13.1		)	—			—			—		(13.1		)
Proceeds from stock option exercises and other	0.2			—			—			—		0.2			0.3			—			—			—		0.3
Payments for employee taxes on net settlement equity awards	(1.8		)	—			—			—		(1.8		)	(4.1		)	—			—			—		(4.1		)
Other, net	—			—			3.3			—		3.3			—			—			(0.9		)	—		(0.9		)
Net cash provided by (used in) financing activities	1,217.9			—			3.5			—		1,221.4			16.8			—			(14.0		)	—		2.8

Effect of exchange rates on cash and cash equivalents	—			—			0.4			—		0.4			—			—			0.3			—		0.3

Net cash flow	(281.8		)	(7.9		)	33.2			—		(256.5		)	(0.7		)	(1.6		)	11.1			—		8.8
Cash, cash equivalents and restricted cash at beginning of period	283.1			9.6			106.7			—		399.4			1.1			5.8			49.6			—		56.5
Cash, cash equivalents and restricted cash at end of period	$	1.3		$	1.7		$	139.9		$	—	$	142.9		$	0.4		$	4.2		$	60.7		$	—	$	65.3