Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 14, 2017 | Mar. 31, 2017 | |
Document And Entity Information Abstract | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2017 | ||
Entity Registrant Name | Hill-Rom Holdings, Inc. | ||
Entity Central Index Key | 47,518 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 65,820,999 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 4.6 | ||
Trading Symbol | HRC |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Revenue | |||
Product sales and service | $ 2,358.1 | $ 2,263.4 | $ 1,604.5 |
Rental revenue | 385.6 | 391.8 | 383.7 |
Total revenue | 2,743.7 | 2,655.2 | 1,988.2 |
Cost of Revenue | |||
Cost of goods sold | 1,235.8 | 1,209.4 | 921.2 |
Rental expenses | 187.3 | 188.8 | 186.7 |
Total cost of revenue | 1,423.1 | 1,398.2 | 1,107.9 |
Gross Profit | 1,320.6 | 1,257 | 880.3 |
Research and development expenses | 133.7 | 133.5 | 91.8 |
Selling and administrative expenses | 876.1 | 853.3 | 664.2 |
Special charges (Note 8) | 37.4 | 39.9 | 41.2 |
Operating Profit | 273.4 | 230.3 | 83.1 |
Interest expense | (88.9) | (90.4) | (18.4) |
Loss on extinguishment of debt | 0 | (10.8) | 0 |
Investment income and other, net | (1.5) | 9.2 | 0.4 |
Income Before Income Taxes | 183 | 138.3 | 65.1 |
Income tax expense (Note 9) | 50.7 | 15.5 | 18.3 |
Net Income | 132.3 | 122.8 | 46.8 |
Less: Net loss attributable to noncontrolling interests | (1.3) | (1.3) | (0.9) |
Net Income Attributable to Common Shareholders | $ 133.6 | $ 124.1 | $ 47.7 |
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) | $ 2.04 | $ 1.90 | $ 0.83 |
Net Income Attributable to Common Shareholders per Common Share - Diluted (usd per share) | 1.99 | 1.86 | 0.82 |
Dividends per Common Share (usd per share) | $ 0.71 | $ 0.67 | $ 0.6325 |
Average Common Shares Outstanding - Basic (in shares) | 65,599 | 65,333 | 57,249 |
Average Common Shares Outstanding - Diluted (in shares) | 67,225 | 66,596 | 58,536 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 132.3 | $ 122.8 | $ 46.8 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Available-for-sale securities and hedges | 7.4 | (3.1) | 0 |
Foreign currency translation adjustment | 33.9 | (22.4) | (58.6) |
Change in pension and postretirement defined benefit plans | 17.8 | (2.8) | (8.1) |
Total Other Comprehensive Income (Loss), Net of Tax | 59.1 | (28.3) | (66.7) |
Total Comprehensive Income (Loss) | 191.4 | 94.5 | (19.9) |
Less: Comprehensive loss attributable to noncontrolling interests | (1.3) | (1.3) | (0.9) |
Total Comprehensive Income (Loss) Attributable to Common Shareholders | $ 192.7 | $ 95.8 | $ (19) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 231.8 | $ 232.2 |
Trade accounts receivable, less allowances of $25.1 in 2017 and $26.8 in 2016 (Note 1) | 579.3 | 515.1 |
Inventories (Note 1) | 284.5 | 252 |
Other current assets | 70.6 | 82.8 |
Total current assets | 1,166.2 | 1,082.1 |
Property, plant, and equipment (Note 1) | 979.6 | 961.8 |
Less accumulated depreciation | (624.2) | (611.8) |
Property, plant, and equipment, net | 355.4 | 350 |
Intangible assets: | ||
Goodwill (Notes 1, 2 and 3) | 1,759.6 | 1,584.4 |
Other intangible assets and software, net (Notes 1, 2 and 3) | 1,144 | 1,143.3 |
Deferred income taxes (Notes 1 and 9) | 40.9 | 43.1 |
Other assets | 62.6 | 59.5 |
Total Assets | 4,528.7 | 4,262.4 |
Current Liabilities | ||
Trade accounts payable | 167.9 | 136 |
Short-term borrowings (Note 4) | 188.9 | 210.1 |
Accrued compensation | 126.9 | 127 |
Accrued product warranties (Note 1) | 25.5 | 27.5 |
Accrued rebates | 39.7 | 40.8 |
Other current liabilities | 109.8 | 120.9 |
Total current liabilities | 658.7 | 662.3 |
Long-term debt (Note 4) | 2,120.4 | 1,938.4 |
Accrued pension and postretirement benefits (Note 6) | 78.1 | 99 |
Deferred income taxes (Notes 1 and 9) | 266.2 | 287.8 |
Other long-term liabilities | 39.7 | 39 |
Total Liabilities | 3,163.1 | 3,026.5 |
Commitments and Contingencies (Note 13) | ||
Capital Stock: | ||
Preferred stock - without par value: Authorized - 1,000,000 shares; none issued or outstanding | ||
Common stock - without par value: Authorized - 199,000,000; Issued - 88,457,634 shares in 2017 and 2016 | 4.4 | 4.4 |
Additional paid-in capital | 584.4 | 575.9 |
Retained earnings | 1,676.2 | 1,589.7 |
Accumulated other comprehensive loss | (110) | (169.1) |
Treasury stock, common shares at cost: 22,643,840 and 22,752,381 | (796.8) | (773.7) |
Total Shareholders' Equity Attributable to Common Shareholders | 1,358.2 | 1,227.2 |
Noncontrolling interests | 7.4 | 8.7 |
Total Shareholders' Equity | 1,365.6 | 1,235.9 |
Total Liabilities and Shareholders' Equity | $ 4,528.7 | $ 4,262.4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 25.1 | $ 26.8 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 199,000,000 | 199,000,000 |
Common stock, issued (in shares) | 88,457,634 | 88,457,634 |
Treasury stock (in shares) | 22,643,840 | 22,752,381 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | |||
Net income | $ 132.3 | $ 122.8 | $ 46.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 82 | 86.2 | 73.6 |
Amortization | 20.4 | 26.9 | 10.5 |
Acquisition-related intangible asset amortization | 108.4 | 95.9 | 34.1 |
Loss on extinguishment of debt | 0 | 10.8 | 0 |
Provision for deferred income taxes | (32.8) | (0.5) | (22.3) |
Loss on disposal of property, equipment leased to others, intangible assets and impairments | 24.7 | 1.9 | 0.5 |
Pension settlement charge | 0 | 0 | 9.6 |
Pension contribution to master pension plan | 0 | (30) | 0 |
Gain on sale of businesses | (1) | (10.1) | 0 |
Stock compensation | 23 | 23.1 | 25 |
Excess tax benefits from employee stock plans | 0 | (3.6) | (3.6) |
Change in working capital excluding cash, current debt, acquisitions and dispositions: | |||
Trade accounts receivable | (42.5) | (15.8) | (39.7) |
Inventories | (14.9) | 21.3 | 11 |
Other current assets | 15 | 27.7 | (7.7) |
Trade accounts payable | 21.6 | (0.5) | 0.7 |
Accrued expenses and other liabilities | (32.3) | (73) | 53.8 |
Other, net | 7.2 | (1.9) | 21.5 |
Net cash provided by operating activities | 311.1 | 281.2 | 213.8 |
Investing Activities | |||
Capital expenditures and purchases of intangible assets | (97.5) | (83.3) | (121.3) |
Proceeds on sale of property and equipment leased to others | 15.1 | 2.2 | 1.5 |
Payment for acquisition of businesses, net of cash acquired | (311.4) | (25.3) | (1,638.7) |
Proceeds on sale of businesses | 5.8 | 10.3 | 0 |
Other | (1.4) | (1.6) | 2.1 |
Net cash used in investing activities | (389.4) | (97.7) | (1,756.4) |
Financing Activities | |||
Proceeds from borrowings on long-term debt | 300 | 530.4 | 2,225 |
Payment of long-term debt | (73.2) | (767.9) | (401.6) |
Net change in short-term debt | 0 | 0 | (0.7) |
Borrowings on Revolving Credit Facility | 180 | 156.9 | 95 |
Payments on Revolving Credit Facility | (325.8) | (20) | (135) |
Borrowings on Securitization Program | 124.5 | 0 | 0 |
Payments on Securitization Program | (45.4) | 0 | 0 |
Repurchase of registered debentures | 0 | 0 | (5.9) |
Debt issuance costs | (5.1) | (2.3) | (50.3) |
Purchase of noncontrolling interest of former joint venture | 0 | (0.4) | (1.9) |
Payment of cash dividends | (46.6) | (43.8) | (37.1) |
Proceeds from exercise of stock options | 17.8 | 6.2 | 12.1 |
Proceeds from stock issuance | 5 | 3.8 | 2.8 |
Excess tax benefits from employee stock plans | 0 | 3.6 | 3.6 |
Treasury stock acquired | (60.6) | (8.4) | (63.3) |
Net cash provided by (used in) financing activities | 70.6 | (141.9) | 1,642.7 |
Effect of exchange rate changes on cash | 7.3 | (2.2) | (6.6) |
Net Cash Flows | (0.4) | 39.4 | 93.5 |
Cash and Cash Equivalents | |||
At beginning of period | 232.2 | 192.8 | 99.3 |
At end of period | 231.8 | 232.2 | 192.8 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 70.4 | 10.9 | 49.1 |
Cash paid for interest | 81.3 | 80.9 | 6.3 |
Non-cash investing and financing activities: | |||
Treasury stock issued under stock compensation plans | 37.5 | 23.3 | 32.4 |
Common stock issued for acquisition of businesses | $ 0 | $ 0 | $ 416.3 |
STATEMENTS OF CONSOLIDATED SHAR
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock in Treasury [Member] | Total Equity Attributable to Common Shareholders [Member] | Noncontrolling Interests [Member] |
Balance (in shares) at Sep. 30, 2014 | 57,439,911 | 22,884,001 | ||||||
Balance at Sep. 30, 2014 | $ 806.5 | $ 4.4 | $ 134.1 | $ 1,499.8 | $ (74.1) | $ (757.7) | $ 806.5 | $ 0 |
Net income | 46.8 | 47.7 | 47.7 | (0.9) | ||||
Consolidation of noncontrolling interest | 10.9 | 10.9 | ||||||
Other comprehensive income (loss) | (66.7) | (66.7) | (66.7) | |||||
Dividends | (37.1) | 0.5 | (37.6) | (37.1) | ||||
Issuance of common stock (in shares) | 8,133,722 | |||||||
Issuance of common stock | 416.3 | 416.3 | 416.3 | |||||
Treasury shares acquired (in shares) | (1,373,321) | 1,373,321 | ||||||
Treasury shares acquired | (63.3) | $ (63.3) | (63.3) | |||||
Stock awards and option exercises (in shares) | 965,584 | (965,584) | ||||||
Stock awards and option exercises | 43.5 | 11.1 | $ 32.4 | 43.5 | ||||
Balance (in shares) at Sep. 30, 2015 | 65,165,896 | 23,291,738 | ||||||
Balance at Sep. 30, 2015 | 1,156.9 | $ 4.4 | 562 | 1,509.9 | (140.8) | $ (788.6) | 1,146.9 | 10 |
Net income | 122.8 | 124.1 | 124.1 | (1.3) | ||||
Other comprehensive income (loss) | (28.3) | (28.3) | (28.3) | |||||
Dividends | (43.8) | 0.5 | (44.3) | (43.8) | ||||
Treasury shares acquired (in shares) | (148,203) | 148,203 | ||||||
Treasury shares acquired | (8.4) | $ (8.4) | (8.4) | |||||
Stock awards and option exercises (in shares) | 687,560 | (687,560) | ||||||
Stock awards and option exercises | 36.7 | 13.4 | $ 23.3 | 36.7 | ||||
Balance (in shares) at Sep. 30, 2016 | 65,705,253 | 22,752,381 | ||||||
Balance at Sep. 30, 2016 | 1,235.9 | $ 4.4 | 575.9 | 1,589.7 | (169.1) | $ (773.7) | 1,227.2 | 8.7 |
Net income | 132.3 | 133.6 | 133.6 | (1.3) | ||||
Other comprehensive income (loss) | 59.1 | 59.1 | 59.1 | |||||
Dividends | (46.6) | 0.5 | (47.1) | (46.6) | ||||
Treasury shares acquired (in shares) | (976,473) | 976,473 | ||||||
Treasury shares acquired | (60.6) | $ (60.6) | (60.6) | |||||
Stock awards and option exercises (in shares) | 1,085,014 | (1,085,014) | ||||||
Stock awards and option exercises | 45.5 | 8 | $ 37.5 | 45.5 | ||||
Balance (in shares) at Sep. 30, 2017 | 65,813,794 | 22,643,840 | ||||||
Balance at Sep. 30, 2017 | $ 1,365.6 | $ 4.4 | $ 584.4 | $ 1,676.2 | $ (110) | $ (796.8) | $ 1,358.2 | $ 7.4 |
STATEMENTS OF CONSOLIDATED SHA8
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Comprehensive loss, tax | $ (14.6) | $ 3.2 | $ 5.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Hill-Rom Holdings, Inc. (the "Company," "Hill-Rom," "we," "us," or "our") was incorporated on August 7, 1969 in the State of Indiana and is headquartered in Chicago, Illinois. We are a leading global medical technology company with more than 10,000 employees worldwide. We partner with health care providers in more than 100 countries, across all care settings, by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Patient Monitoring and Diagnostics, Surgical Safety and Efficiency and Respiratory Health. We have three reportable segments, each of which is generally aligned by region and/or product type. Around the world, Hill-Rom's people, products, and programs work towards one mission: Enhancing outcomes for patients and their caregivers. Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. In addition, we also consolidate variable interest entities ("VIEs") where Hill-Rom is deemed to have a controlling financial interest. Intercompany accounts and transactions have been eliminated in consolidation, including the intercompany transactions with consolidated VIEs. Where our ownership interest is less than 100 %, the noncontrolling interests are reported in our Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to current year presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Examples of such estimates include our accounts receivable reserves (Note 1), accrued warranties (Note 1), the impairment of intangibles and goodwill (Note 3), use of the spot yield curve approach for pension expense (Note 6), income taxes (Notes 1 and 9) and commitments and contingencies (Note 13), among others. Cash and Cash Equivalents We consider investments in marketable securities and other highly liquid instruments with a maturity of three months or less at date of purchase to be cash equivalents. All of our marketable securities may be freely traded. Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest, unless the transaction is an installment sale with extended payment terms. Reserves for uncollectible accounts represent our best estimate of the amount of probable credit losses and collection risk in our existing accounts receivable. We determine such reserves based on historical write-off experience by industry and reimbursement platform. Receivables are generally reviewed on a pooled basis based on historical collection experience for each reimbursement and receivable type. Receivables for sales transactions are also reviewed individually for collectability. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. If circumstances change, such as higher than expected claims denials, payment defaults, changes in our business composition or processes, adverse changes in general economic conditions, unfavorable impacts of austerity measures initiated by some governmental authorities, instability or disruption of credit markets, or an unexpected material adverse change in a major customer’s or payer’s ability to meet its obligations, our estimates of the realizability of trade receivables could be reduced by a material amount. Within rental revenue, the domestic third-party payers’ reimbursement process requires extensive documentation, which has had the effect of slowing both the billing and cash collection cycles relative to the rest of the business, and therefore, increasing total accounts receivable. Because of the extensive documentation required and the requirement to settle a claim with the primary payer prior to billing the secondary and/or patient portion of the claim, the collection period for a claim in a portion of our business may, in some cases, be extended. We generally hold our trade accounts receivable until they are paid. Certain long-term receivables are occasionally sold to third parties; however, any recognized gain or loss on such sales has historically not been material. Inventories Inventories are valued at the lower of cost or market. Inventory costs are determined by the last-in, first-out ("LIFO") method for approximately 21% and 26% of our inventories at September 30, 2017 and 2016 . Costs for other inventories have been determined principally by the first-in, first-out ("FIFO") method. Inventories consist of the following: September 30 2017 2016 Finished products $ 147.5 $ 124.2 Work in process 38.8 35.7 Raw materials 98.2 92.1 Total $ 284.5 $ 252.0 If the FIFO method of inventory accounting, which approximates current cost, had been used for all inventories, they would have been approximately $2.0 million and $2.1 million higher than reported at September 30, 2017 and 2016 . Property, Plant and Equipment Property, plant and equipment is recorded at cost and depreciated over the estimated useful life of the assets using principally the straight-line method. Ranges of estimated useful lives are as follows: Useful Life Land improvements 6 - 15 years Buildings and building equipment 10 - 40 years Machinery and equipment 3 - 10 years Equipment leased to others 2 -10 years When property, plant and equipment is retired from service or otherwise disposed of, the cost and related amount of depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds on sale are charged or credited to income. Total depreciation expense for fiscal years 2017 , 2016 and 2015 was $82.0 million , $86.2 million and $73.6 million , respectively. The major components of property and the related accumulated depreciation were as follows: September 30 2017 2016 Cost Accumulated Depreciation Cost Accumulated Depreciation Land and land improvements $ 18.4 $ 3.3 $ 21.5 $ 3.1 Buildings and building equipment 196.1 84.7 186.9 91.9 Machinery and equipment 402.6 265.1 380.6 239.2 Equipment leased to others 362.5 271.1 372.8 277.6 Total $ 979.6 $ 624.2 $ 961.8 $ 611.8 Intangible Assets Intangible assets are stated at cost and consist predominantly of goodwill, software, patents, acquired technology, trademarks, and acquired customer relationship assets. With the exception of goodwill and certain trademarks, our intangible assets are amortized on a straight-line basis over periods generally ranging from 1 to 20 years. We assess the carrying value of goodwill and non-amortizable intangibles annually, during the third quarter of each fiscal year, or more often if events or changes in circumstances indicate there may be impairment. The majority of our goodwill and many of our intangible assets are not deductible for income tax purposes. A summary of intangible assets and the related accumulated amortization and impairment losses follows: September 30 2017 2016 Cost Amortization and Impairment Cost Amortization and Impairment Goodwill $ 2,232.4 $ 472.8 $ 2,057.2 $ 472.8 Software 166.1 133.0 174.1 140.0 Patents and Trademarks 504.2 16.4 497.1 19.2 Other 966.0 342.9 870.4 239.1 Total $ 3,868.7 $ 965.1 $ 3,598.8 $ 871.1 Amortization expense for fiscal years 2017 , 2016 and 2015 was $128.8 million , $122.8 million and $44.6 million , respectively. As further discussed in Note 3 of our Consolidated Financial Statements, we have various indefinite-lived intangible assets representing trade names with a carrying value of $466.9 million at September 30, 2017 and September 30, 2016 . Amortization expense for all other intangibles is expected to approximate the following for each of the next five fiscal years and thereafter: Amount 2018 $ 119.5 2019 $ 109.7 2020 $ 98.0 2021 $ 89.0 2022 $ 76.1 2023 and beyond $ 184.8 Software consists mainly of capitalized costs associated with internal use software, including applicable costs associated with the implementation/upgrade of our Enterprise Resource Planning systems. In addition, software includes capitalized development costs for software products to be sold. Capitalized software costs are amortized on a straight-line basis over periods ranging from three to ten years. Software amortization expense approximated $12.8 million , $17.0 million and $9.8 million for fiscal years 2017 , 2016 and 2015 and is included in the total intangibles amortization presented earlier. Other includes mainly customer relationships and developed technology at Welch Allyn and Mortara. The cost and amortization amounts of customer relationships at Welch Allyn were $517.4 million and $125.5 million as of September 30, 2017 and $514.1 million and $62.1 million as of September 30, 2016 . The cost and amortization amounts of developed technology at Welch Allyn were $54.0 million and $16.6 million as of September 30, 2017 and $54.0 million and $8.6 million as of September 30, 2016 . The cost and amortization amounts of customer relationships at Mortara were $52.3 million and $4.6 million as of September 30, 2017 . The cost and amortization amounts of developed technology at Mortara were $37.9 million and $2.9 million as of September 30, 2017 . Fair Value Measurements Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: Financial instruments with unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. • Level 2: Financial instruments with observable inputs other than those included in Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Financial instruments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs reflect our own assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include our own data. We record cash and cash equivalents, as disclosed on our Consolidated Balance Sheets, as Level 1 instruments and certain other investments and derivatives as either Level 2 or 3 instruments. Except for the adoption of revised disclosure guidance related to investments held by our pension plan as discussed in Note 6, there have been no significant changes in our classification among assets and liabilities. Refer to Note 4 of our Consolidated Financial Statements for disclosure of our debt instrument fair values. Guarantees We routinely grant limited warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year ; however, certain components and products have substantially longer warranty periods. We recognize a reserve with respect to these obligations at the time of product sale, with subsequent warranty claims recorded directly against the reserve. The amount of the warranty reserve is determined based on historical trend experience for the covered products. For more significant warranty-related matters which might require a broad-based correction, separate reserves are established when such events are identified and the cost of correction can be reasonably estimated. A reconciliation of changes in our warranty reserve is as follows: 2017 2016 2015 Balance at October 1 $ 27.5 $ 32.1 $ 28.4 Provision for warranties during the period 13.9 13.9 14.7 Warranty reserves acquired 1.5 2.6 7.1 Warranty claims incurred during the period (17.4 ) (21.1 ) (18.1 ) Balance at September 30 $ 25.5 $ 27.5 $ 32.1 In the normal course of business, we enter into various other guarantees and indemnities in our relationships with suppliers, service providers, customers, business partners and others. Examples of these arrangements would include guarantees of product performance, indemnifications to service providers and indemnifications of our actions to business partners. These guarantees and indemnifications have not historically nor do we expect them to have a material impact on our financial condition or results of operations, although indemnifications associated with our actions generally have no dollar limitations. In conjunction with our acquisition and divestiture activities, we have entered into select guarantees and indemnifications of performance with respect to the fulfillment of our commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. With respect to sale transactions, we also routinely enter into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on our financial condition and results of operations. Accrued Rebates We provide rebates and sales incentives to certain customer groups and distributors. Provisions for rebates are recorded as a reduction in net revenue when revenue is recognized. In some cases, rebates may be payable directly to the customer or distributor. We also have arrangements where we provide rebates to certain distributors that sell to end-user customers at prices determined under a contract between us and the end-user customer. Retirement Plans We sponsor retirement and postretirement plans covering select employees. Expense recognized in relation to these defined benefit retirement plans and postretirement health care plans in the U.S. is based upon actuarial valuations and inherent in those valuations are key assumptions including discount rates, and where applicable, expected returns on assets, projected future salary rates and projected health care cost trends. The discount rates used in the valuation of our defined benefit pension and postretirement plans are evaluated annually based on current market conditions. In setting these rates we utilize long-term bond indices and yield curves as a preliminary indication of interest rate movements, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our obligations. Our overall expected long-term rate of return on pension assets is based on historical and expected future returns, which are inflation adjusted and weighted for the expected return for each component of the investment portfolio. Our rate of assumed compensation increase is also based on our specific historical trends of wage adjustments. We account for our defined benefit pension and other postretirement plans by recognizing the funded status of a benefit plan in the statement of financial position. We also recognize in accumulated other comprehensive income (loss) certain gains and losses that arose during the period. See Note 6 of our Consolidated Financial Statements for key assumptions and further discussion related to our pension and postretirement plans. Environmental Liabilities Expenditures that relate to an existing condition caused by past operations, and which do not contribute to future revenue generation, are expensed. A reserve is established when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These reserves are determined without consideration of possible loss recoveries from third parties. Specific costs included in environmental expense and reserves include site assessment, development of a remediation plan, clean-up costs, post-remediation expenditures, monitoring, fines, penalties and legal fees. Reserve amounts represent the expected undiscounted future cash outflows associated with such plans and actions. Self Insurance We are involved in various claims, including product and general liability, workers’ compensation, auto liability and employment related matters. Refer to Note 13 of our Consolidated Financial Statements for additional information. Treasury Stock Treasury stock consists of our common shares that have been issued, but subsequently reacquired. We account for treasury stock purchases under the cost method. When these shares are reissued, we use an average-cost method to determine cost. Proceeds in excess of cost are credited to additional paid-in capital. Revenue Recognition — Sales and Rentals Revenue is presented in the Statements of Consolidated Income net of sales discounts and allowances, rebates and customer returns for product sales and rental revenue reserves. Revenue is evaluated under the following criteria and recognized when each is met: • Evidence of an arrangement: An agreement with the customer reflecting the terms and conditions to deliver products or services serves as evidence of an arrangement. • Delivery: For products, delivery is generally considered to occur upon transfer of title and risk of loss per the respective sales terms. For rental services, delivery is considered to occur when the services are rendered. • Fixed or determinable price: The sales price is considered fixed or determinable if it is not subject to refund or measurable adjustment. • Collection is deemed probable: At or prior to the time of a transaction, credit reviews of each customer are performed to determine the creditworthiness of the customer. Collection is deemed probable if the customer is expected to be able to pay amounts under the arrangement as those amounts become due. If collection is not probable, revenue is recognized when collection becomes probable, generally upon cash collection. As a general interpretation of the above guidelines, revenue for health care and surgical products are generally recognized upon delivery of the products to the customer and their assumption of risk of loss and other risks and rewards of ownership. Local business customs and sales terms specific to certain customers or products can sometimes result in deviations to this normal practice; however, in no case is revenue recognized prior to the transfer of risk of loss and rewards of ownership. For non-invasive therapy products and medical equipment management services, the majority of product offerings are rental products for which revenue is recognized consistent with the rendering of the service and use of products. For The Vest ® product, revenue is generally recognized at the time of receipt of authorization for billing from the applicable paying entity as this serves as evidence of the arrangement and sets a fixed or determinable price. For health care products and services aimed at improving operational efficiency and asset utilization, various revenue recognition techniques are used, depending on the offering. Arrangements to provide services, routinely under separately sold service and maintenance contracts, result in the deferral of revenue until specified services are performed. Service contract revenue is generally recognized ratably over the contract period, if applicable, or as services are rendered. Product-related goods are generally recognized upon delivery to the customer. For product sales, we record reserves resulting in a reduction of revenue for contractual discounts, as well as price concessions and product returns. Likewise, rental revenue reserves, reflecting contractual and other routine billing adjustments, are recorded as a reduction of revenue. Reserves for revenue are estimated based upon historical rates for revenue adjustments. Taxes Collected from Customers and Remitted to Governmental Units Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between us and our customers, including but not limited to sales taxes, use taxes, and value added taxes, are accounted for on a net (excluded from revenue and cost) basis. Cost of Revenue Cost of goods sold for product sales consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, overhead costs and costs associated with the distribution and delivery of products to our customers. Rental expenses consist of costs associated directly with rental revenue, including depreciation, maintenance, logistics and service center facility and personnel costs. Research and Development Costs Research and development costs are expensed as incurred. Costs were $133.7 million , $133.5 million and $91.8 million for fiscal years 2017 , 2016 and 2015 . In addition, certain costs for software development technology held for sale are capitalized as intangibles and are amortized over a period of three to five years once the software is ready for its intended use. The amount capitalized during fiscal years 2017 , 2016 and 2015 was approximately $2.3 million , $2.4 million and $2.6 million . Advertising Costs Advertising costs are expensed as incurred. Costs were $13.8 million , $10.4 million and $6.8 million for fiscal years 2017 , 2016 and 2015 . Comprehensive Income We include the net-of-tax effect of unrealized gains or losses on our available-for-sale securities, interest and foreign currency hedges, foreign currency translation adjustments and pension or other defined benefit postretirement plans’ actuarial gains or losses and prior service costs or credits in comprehensive income. See Note 5 of our Consolidated Financial Statements for further details. Foreign Currency Translation The functional currency of foreign operations is generally the local currency in the country of domicile. Assets and liabilities of foreign operations are primarily translated into U.S. dollars at year-end rates of exchange and the income statements are translated at the average rates of exchange prevailing during the year. Adjustments resulting from translation of the financial statements of foreign operations into U.S. dollars are excluded from the determination of net income, but included as a component of accumulated other comprehensive income (loss). Foreign currency gains and losses resulting from foreign currency transactions are included in our results of operations and are not material. Stock-Based Compensation We account for stock-based compensation under fair value provisions. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options and other performance-based stock awards on the date of grant, we utilize a Binomial model. Inherent in this model are assumptions related to a volatility factor, expected life, risk-free interest rate, dividend yield and expected forfeitures. The risk-free interest rate is based on factual data derived from public sources. The volatility factor, expected life, dividend yield and expected forfeiture assumptions require judgment utilizing historical information, peer data and future expectations. Deferred stock (also known as restricted stock units ("RSUs")) is measured based on the fair market price of our common stock on the date of grant, as reported by the New York Stock Exchange, multiplied by the number of units granted. See Note 7 of our Consolidated Financial Statements for further details. Income Taxes Hill-Rom and its eligible domestic subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. Deferred income taxes are computed using an asset and liability approach to reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. We have a variety of deferred tax assets in numerous tax jurisdictions. These deferred tax assets are subject to periodic assessment as to recoverability. If it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recognized. In evaluating whether it is more likely than not that we would recover these deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies are considered. As of September 30, 2017 , we had $58.2 million of valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to certain foreign deferred tax attributes that are not expected to be utilized. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances. We account for uncertain income tax positions using a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The difference between the tax benefit recognized in the financial statements for an uncertain income tax position and the tax benefit claimed in the tax return is referred to as an unrecognized tax benefit. See Note 9 of our Consolidated Financial Statements for further details. Derivative Instruments and Hedging Activity We use derivative financial instruments to manage the economic impact of fluctuations in currency exchange and interest rates. Derivative financial instruments related to currency exchange rates include forward purchase and sale agreements which generally have terms no greater than 15 months . Additionally, interest rate swaps are sometimes used to convert some or all of our long-term debt to either a fixed or variable rate. Derivative financial instruments are recognized on the Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in the Statement of Consolidated Income or the Statement of Consolidated Comprehensive Income, depending on whether a derivative is designated and considered effective as part of a hedge transaction, and if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income (loss) are subsequently included in the Statement of Consolidated Income in the periods in which earnings are affected by the hedged item. These activities have not had a material effect on our financial position or results of operations for the periods presented herein. Dispositions During the fourth quarter of fiscal 2017, we sold our Völker business. We recorded impairment charges of $25.4 million during the third quarter, relating mainly to non-cash write-downs of long-lived assets and working capital associated with the Völker brand portfolio, and fiscal 2017 transaction related costs of approximately $3.0 million in Special charges. We do not expect a majority of the impairment related to the disposition to be tax deductible. During the first quarter of fiscal 2017, we sold our Architectural Products business for $4.5 million in cash proceeds and recorded an immaterial gain in Investment income and other, net. During the fourth quarter of 2016, we sold our perinatal data management system for $10.5 million and recorded a gain of $10.1 million in Investment income and other, net. All businesses recently disposed were part of our Patient Support Systems segment. Recently Issued Accounting Guidance In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). From the lessee’s perspective, the new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor’s perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. ASU 2016-02 is effective for our first quarter of fiscal 2020. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently in the process of evaluating the impact of the amended guidance on our Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which delayed the effective date of the new revenue guidance by one year, while permitting companies to early adopt the new standard as of the original effective date. As a result, the provisions of ASU 2014-09 and subsequent amendments, are effective for us in the first quarter of fiscal 2019 using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption. We plan to adopt the new standard effective October 1, 2018 and are continuing to evaluate the impact of adoption on our Consolidated Financial Statements and the implementation approach to be used. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Mortara Instrument On February 14, 2017, we completed the acquisition of Mortara Instrument, Inc. ("Mortara") for consideration of $330.0 million in cash ( $311.2 million , net of cash acquired), primarily financed through a private offering of $300.0 million of senior unsecured notes (see Note 4 of our Consolidated Financial Statements). Mortara provides a portfolio of diagnostic cardiology devices designed to serve the full continuum of clinical care, from acute care to primary care and clinical research organizations. The results of Mortara are included in the Consolidated Financial Statements since the date of acquisition. The impact to reported revenue and net income was not significant. The impact to our year to date revenue and net income on an unaudited proforma basis, as if the Mortara acquisition had been consummated at the beginning of our fiscal 2016 year, would not have been significant. The following summarizes the preliminary estimate of the fair value of assets acquired and liabilities assumed at the date of the Mortara acquisition. During fiscal 2017, we made certain adjustments to the opening balance sheet as of the acquisition date which were insignificant. The fair value of assets acquired and liabilities assumed are still considered to be preliminary, however we do not expect further adjustments to be significant. Amount Trade receivables $ 16.4 Inventory 22.1 Other current assets 2.8 Property, plant and equipment 18.2 Goodwill 164.8 Trade names (7-year weighted average useful life) 15.8 Customer relationships (8-year useful life) 37.9 Developed technology (7-year useful life) 52.3 Other noncurrent assets 4.7 Current liabilities (22.5 ) Noncurrent liabilities (1.3 ) Total purchase price, net of cash acquired $ 311.2 Goodwill in connection with the Mortara acquisition was allocated entirely to our Front Line Care segment. The preliminary fair value attributes a majority of the goodwill to the acquired U.S. operations which is deductible for tax purposes. Tridien Medical On September 21, 2016, we acquired all of the outstanding shares of Tridien for a purchase price of $26.0 million , net of cash acquired. Tridien develops, manufactures and markets support surfaces and patient positioning devices. We funded the transaction primarily with borrowings under our Senior Secured Revolving Credit Facility ("Revolving Credit Facility"). The fair value of assets acquired included $10.4 million of working capital consisting primarily of inventories and accounts receivable, $7.4 million of goodwill and $6.3 million of acquisition-related intangible assets. The results of Tridien are included in the Consolidated Financial Statements since the date of acquisition. Goodwill in connection with the Tridien acquisition was allocated entirely to our Patient Support Systems segment and is not deductible for tax purposes. During fiscal 2017 , we made certain adjustments to the opening balance sheet as of the acquisition date which were insignificant. Welch Allyn On September 8, 2015, we completed the acquisition of Welch Allyn Holdings, Inc. and its subsidiaries (collectively, "Welch Allyn") for consideration of $1,686.8 million in cash ( $1,633.1 million , net of cash acquired) and 8,133,722 shares of Hill-Rom common stock for a total combined purchase price of approximately $2.1 billion. Welch Allyn is a leading manufacturer of medical diagnostic equipment and offers a diversified portfolio of devices that assess, diagnose, treat, and manage a wide variety of illnesses and diseases. The transaction was funded with new borrowings, including $1.8 billion in term loans and $425.0 million of senior notes issued in a private placement debt offering. Refer to Note 4 of our Consolidated Financial Statements for additional information regarding our debt obligations. The following summarizes the fair value of assets acquired and liabilities assumed at the date of the acquisition. These results are considered final. Amount Trade receivables $ 62.9 Inventory 110.5 Other current assets 53.8 Property, plant, and equipment 91.5 Goodwill 1,179.8 Trade name (indefinite life) 434.0 Customer relationships (12-year useful life) 516.8 Developed technology (7-year weighted average useful life) 54.0 Other intangibles 19.5 Other noncurrent assets 26.5 Current liabilities (166.1 ) Noncurrent deferred income taxes (309.0 ) Other noncurrent liabilities (24.8 ) Total purchase price, net of cash acquired $ 2,049.4 Fair value of common stock issued $ 416.3 Cash payment, net of cash acquired 1,633.1 Total consideration $ 2,049.4 Final purchase accounting adjustments were made in fiscal 2016 reducing goodwill by $23.7 million primarily due to the finalization of deferred income taxes. These adjustments are reflected in the table above. Goodwill from the Welch Allyn acquisition, which is not deductible for tax purposes, is primarily due to enhanced customer relevance and a stronger competitive position resulting from the business combination, including a complementary commercial position, product portfolio, and enhanced synergies. The goodwill from the Welch Allyn acquisition has been allocated entirely to our Front Line Care segment. Our total revenue on an unaudited proforma basis, as if the Welch Allyn acquisition had been consummated at the beginning of our 2014 fiscal year, would have been higher by approximately $638 million for the year ended September 30, 2015. On the same unaudited proforma basis, our net income would have been lower by approximately $59 million for the year ended September 30, 2015. The proforma net income for fiscal 2015 has been adversely impacted by significant costs related to the transaction including deal costs, financing costs, restructuring costs incurred in relation to our synergy initiatives, costs associated with triggering the change-in-control provisions of certain equity-based compensation programs at Welch Allyn, and purchase price accounting, including the nonrecurring effects of the inventory step-up. These results are not indicative of expected future performance. The unaudited proforma results are based on the Company’s historical financial statements and those of the Welch Allyn business and do not necessarily indicate the results of operations that would have resulted had the acquisition been completed at the beginning of the comparable period presented and are not indicative of the results of operations in future periods. |
Goodwill and Indefinite-Lived I
Goodwill and Indefinite-Lived Intangible Assets | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets The following summarizes goodwill activity by reportable segment: Patient Support Systems Front Line Care Surgical Solutions Total Balances at September 30, 2015 Goodwill $ 536.0 $ 1,232.2 $ 315.1 $ 2,083.3 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net at September 30, 2015 63.2 1,232.2 315.1 1,610.5 Changes in Goodwill during the period: Goodwill related to acquisitions 7.9 (23.7 ) 1.1 (14.7 ) Currency translation effect 0.2 (3.0 ) (8.6 ) (11.4 ) Balances at September 30, 2016 Goodwill 544.1 1,205.5 307.6 2,057.2 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net at September 30, 2016 71.3 1,205.5 307.6 1,584.4 Changes in Goodwill during the period: Goodwill related to acquisitions (0.5 ) 164.8 — 164.3 Currency translation effect 1.4 5.3 4.2 10.9 Balances at September 30, 2017 Goodwill 545.0 1,375.6 311.8 2,232.4 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net at September 30, 2017 $ 72.2 $ 1,375.6 $ 311.8 $ 1,759.6 We acquired Mortara, Tridien and Welch Allyn during 2017 , 2016 and 2015 , respectively. All goodwill associated with Mortara and Welch Allyn was assigned to the Front Line Care segment and all goodwill associated Tridien was assigned to the Patient Support Systems segment. During fiscal 2017 and 2016, we recorded adjustments to goodwill related to the Mortara, Tridien, and Welch Allyn acquisitions. Refer to Note 2 of our Consolidated Financial Statements for additional information regarding these acquisitions. As discussed in Note 11 of our Consolidated Financial Statements, we operate in three reportable business segments. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded and is reallocated as necessary based on the restructuring of reporting units over time. Once goodwill is assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Testing for impairment must be performed annually, or on an interim basis upon the occurrence of a triggering event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The annual evaluation of goodwill performed during the third quarter of fiscal 2017 and 2016 did not result in any impairments. Indefinite-lived intangible assets We have various indefinite-lived intangible assets representing trade names with a carrying value of $466.9 million as of September 30, 2017 and September 30, 2016 . Testing for impairment must be performed annually, or on an interim basis upon the occurrence of a triggering event or change in circumstances that would more likely than not reduce the fair value of an indefinite-lived intangible asset below its carrying amount. The annual evaluation of indefinite-lived intangible assets performed during the third quarter of fiscal 2017 and 2016 did not result in impairment. |
Financing Agreements
Financing Agreements | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements Total debt consists of the following: September 30, September 30, Revolving credit facilities $ 90.0 $ 235.8 Current portion of long-term debt 109.8 73.2 Senior secured Term Loan A, long-term portion 1,266.7 1,372.3 Senior unsecured 5.75% notes due on September 1, 2023 419.9 419.1 Senior unsecured 5.00% notes due on February 14, 2025 295.8 — Unsecured 7.00% debentures due on February 15, 2024 13.6 13.7 Unsecured 6.75% debentures due on December 15, 2027 29.6 29.6 Securitization Program 79.1 — Other 4.8 4.8 Total debt 2,309.3 2,148.5 Less Short-term borrowings 188.9 210.1 Total Long-term debt $ 2,120.4 $ 1,938.4 In May 2017, we entered into a 364 -day $110.0 million accounts receivable securitization program (the "Securitization Program") with certain financial institutions. Under the terms of the Securitization Program, certain of our accounts receivable secure the amounts borrowed and cannot be used to pay our other debts or liabilities. The amount that we may borrow at a given point in time is determined based on the amount of qualifying accounts receivable that are present at such point in time. As of September 30, 2017 , $79.1 million was outstanding under the Securitization Program. Such outstanding borrowings under the Securitization Program bear interest at London Interbank Offered Rate ("LIBOR") plus the applicable margin of 0.675% and are included as a component of Short-term borrowings, while the accounts receivable securing these obligations remain as a component of Trade accounts receivable, net of allowances in our Consolidated Balance Sheets. In addition, the agreement governing the Securitization Program contains various customary affirmative and negative covenants, and customary default and termination provisions. As of September 30, 2017 , we were in compliance with these covenants and provisions. In February 2017, we entered into $300.0 million of senior unsecured notes maturing February 2025 for purposes of financing the Mortara acquisition. These notes bear interest at a fixed rate of 5.00% annually. We also have outstanding senior unsecured notes of $425.0 million maturing in September 2023 that bear interest at a fixed rate of 5.75% annually (collectively, the "Senior Notes"). These Senior Notes were issued at par in a private placement offering and are not registered securities on any public market. All of the notes were outstanding as of September 30, 2017 . We are not required to make any mandatory redemption or sinking fund payments with respect to the Senior Notes, other than in certain circumstances such as a change in control or material sale of assets. We may redeem the 5.75% and 5.00% notes prior to maturity, but doing so prior to September 1, 2021 and February 15, 2020 would require payment of a premium on any amounts redeemed, the amount of which varies based on the timing of the redemption. The indentures governing the Senior Notes contain certain covenants which impose limitations on the amount of dividends we may pay and the amount of common shares we may repurchase in the open market, but we do not expect these covenants to affect our current dividend policy or open share repurchase program. The terms of these indentures also impose certain restrictions on the amount and type of additional indebtedness we may obtain in the future, as well as the types of liens and guarantees we may provide. In September 2016, we entered into an amended and restated senior credit agreement ("Senior Credit Agreement") for purposes of refinancing our credit facilities (originally entered into as part of the Welch Allyn acquisition) and funding the payoff of our then outstanding senior secured Term Loan B facility. The Senior Credit Agreement consists of two facilities as follows: • $1,462.5 million senior secured Term Loan A facility ("TLA Facility"), maturing in September 2021 • Revolving Credit Facility, providing borrowing capacity of up to $700.0 million , maturing in September 2021 The TLA Facility and Revolving Credit Facility (collectively, the "Senior Secured Credit Facilities") bear interest at variable rates which are currently less than 3.0% . These interest rates are based primarily on the LIBOR, but under certain conditions could also be based on the U.S. Federal Funds Rate or the U.S. Prime Rate, at our option. We are able to voluntarily prepay outstanding loans under the TLA Facility at any time. The following table summarizes the scheduled maturities of the TLA Facility for fiscal years 2018 through 2022 : Amount 2018 $ 109.7 2019 $ 146.3 2020 $ 146.3 2021 $ 987.2 2022 $ — On September 30, 2017 , there were $90.0 million of outstanding borrowings on the Revolving Credit Facility, and available borrowing capacity was $601.6 million after giving effect to $8.4 million of outstanding standby letters of credit. The availability of borrowings under our Revolving Credit Facility is subject to our ability at the time of borrowing to meet certain specified conditions, including compliance with covenants contained in the Senior Credit Agreement. The Senior Secured Credit Facilities are held with a syndicate of banks, which includes over 30 institutions. Our general corporate assets, including those of certain of our subsidiaries, collateralize these obligations. The Senior Credit Agreement contains financial covenants which specify a maximum secured net leverage ratio and a minimum interest coverage ratio, as such terms are defined in the Senior Credit Agreement. These financial covenants are measured at the end of each fiscal quarter. The required ratios vary providing a gradually decreasing maximum secured net leverage ratio and a gradually increasing minimum interest coverage ratio, as set forth in the following table: Fiscal Quarter Ended Maximum Minimum December 31, 2017 4.00x 3.50x December 31, 2018 3.50x 3.75x December 31, 2019 and thereafter 3.00x 4.00x We are in compliance with all applicable financial covenants under the Senior Credit Agreement as of September 30, 2017 . In conjunction with the amendment of the Senior Secured Credit Facilities in September 2016, we recorded a $10.8 million loss on extinguishment of debt related to a majority of the debt issuance costs previously capitalized for the Term Loan B facility. We also incurred $6.5 million of costs related to the amendment, $4.5 million of which were capitalized as part of the new Senior Secured Credit Facilities. We are exposed to market risk from fluctuations in interest rates. We sometimes manage our exposure to interest rate fluctuations through the use of interest rate swaps. As of September 30, 2017 , we had nine interest rate swap agreements, with notional amounts of $750.0 million , in aggregate, to hedge the variability of cash flows associated with a portion of the variable interest rate payments through September 2021 on the Senior Secured Credit Facilities. The interest rate swaps have effective start dates ranging between December 31, 2016 and September 8, 2020 and are designated as cash flow hedges. At September 30, 2017 , these swaps were in a net asset position with an aggregate fair value of $7.3 million , of which $8.5 million were classified as Other assets and $1.2 million were classified as Other current liabilities. We classify fair value measurements on our interest rate swaps as Level 2, as described in Note 1. The fair value of our debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities. The book values of our short-term debt instruments approximate fair value. The estimated fair values of our long-term debt instruments are described in the table below: September 30, September 30, Senior secured Term Loan A $ 1,364.8 $ 1,441.0 Senior unsecured 5.75% notes due on September 1, 2023 449.3 454.0 Senior unsecured 5.00% notes due on February 14, 2025 311.9 — Unsecured debentures 46.8 45.8 Total debt $ 2,172.8 $ 1,940.8 The estimated fair values of our long-term unsecured debentures were based on observable inputs such as quoted prices in markets that are not active. The estimated fair values of our term loans and the Senior Notes were based on quoted prices for similar liabilities. These fair value measurements were classified as Level 2, as described in Note 1 of our Consolidated Financial Statements. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The following tables represent the changes in accumulated other comprehensive loss by component for the fiscal years ended September 30, 2017 and 2016 : Year Ended September 30, 2017 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending Derivative instruments and hedges $ 12.7 $ (0.9 ) $ 11.8 $ (4.4 ) $ 7.4 $ (3.1 ) $ 7.4 $ 4.3 Foreign currency translation adjustment 32.9 1.0 33.9 — 33.9 (115.2 ) 33.9 (81.3 ) Change in pension and postretirement defined benefit plans 22.1 5.9 28.0 (10.2 ) 17.8 (50.8 ) 17.8 (33.0 ) Total $ 67.7 $ 6.0 $ 73.7 $ (14.6 ) $ 59.1 $ (169.1 ) $ 59.1 $ (110.0 ) Year Ended September 30, 2016 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Derivative instruments and hedges $ (4.9 ) $ (0.1 ) $ (5.0 ) $ 1.9 $ (3.1 ) $ — $ (3.1 ) $ (3.1 ) Foreign currency translation adjustment (22.4 ) — (22.4 ) — (22.4 ) (92.8 ) (22.4 ) (115.2 ) Change in pension and postretirement defined benefit plans (8.5 ) 4.4 (4.1 ) 1.3 (2.8 ) (48.0 ) (2.8 ) (50.8 ) Total $ (35.8 ) $ 4.3 $ (31.5 ) $ 3.2 $ (28.3 ) $ (140.8 ) $ (28.3 ) $ (169.1 ) The following table represents the items reclassified out of accumulated other comprehensive loss and the related tax effects during fiscal 2017 and 2016 : Year Ended September 30 2017 2016 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Derivative instruments and hedges (a) $ (0.9 ) $ 0.3 $ (0.6 ) $ (0.1 ) $ — $ (0.1 ) Foreign currency translation adjustment (b) $ 1.0 $ — $ 1.0 $ — $ — $ — Change in pension and postretirement defined benefit plans (c) $ 5.9 $ (2.2 ) $ 3.7 $ 4.4 $ (1.3 ) $ 3.1 (a) Reclassified from accumulated other comprehensive income (loss) into Interest expense. (b) Reclassified from accumulated other comprehensive income (loss) into Special charges. (c) Reclassified from accumulated other comprehensive income (loss) into Cost of goods sold and Selling and administrative expenses. These components are included in the computation of net periodic pension expense. |
Retirement and Postretirement B
Retirement and Postretirement Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement and Postretirement Benefit Plans | Retirement and Postretirement Benefit Plans Our retirement plans consist of defined benefit plans, postretirement healthcare plans and defined contribution savings plans. Plans cover certain employees both in and outside of the U.S. Retirement Plans We sponsor five defined benefit plans. Those plans include a master defined benefit retirement plan, a nonqualified supplemental executive defined benefit retirement plan and three defined benefit retirement plans covering employees in Germany and France. Benefits for such plans are based primarily on years of service and the employee’s level of compensation during specific periods of employment. We contribute funds to trusts as necessary to provide for current service and for any unfunded projected future benefit obligation over a reasonable period of time. All of our plans have a September 30 measurement date. Effect on Operations The components of net periodic benefit cost for our defined benefit retirement plans were as follows: Year Ended September 30 2017 2016 2015 Service cost $ 5.8 $ 5.0 $ 5.4 Interest cost 9.9 10.9 14.6 Expected return on plan assets (14.6 ) (13.0 ) (16.7 ) Amortization of unrecognized prior service cost, net 0.2 0.3 0.6 Amortization of net loss 6.1 4.5 5.2 Net periodic benefit cost 7.4 7.7 9.1 Settlement charge — — 9.6 Special termination benefits 0.1 — — Net pension expense $ 7.5 $ 7.7 $ 18.7 Beginning in the first quarter of fiscal 2016, we elected to change the method we use to estimate the service and interest cost components of net periodic benefit cost for our defined benefit pension plans to a spot yield curve approach. Previously, we estimated the service and interest cost components of pension expense using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Under the new approach, we apply discounting using individual spot rates from a yield curve composed of the rates of return on several hundred high-quality, fixed income corporate bonds available at the measurement date. These spot rates align to each of the projected benefit obligations and service cost cash flows. The service cost component relates to the active participants in the plan, so the relevant cash flows on which to apply the yield curve are considerably longer in duration on average than the total projected benefit obligation cash flows, which also include benefit payments to retirees. Interest cost is computed by multiplying each spot rate by the corresponding discounted projected benefit obligation cash flows. The spot yield curve approach reduces any actuarial gains and losses based upon interest rate expectations (e.g., built-in gains in interest cost in an upward sloping yield curve scenario), or gains and losses merely resulting from the timing and magnitude of cash outflows associated with our benefit obligations. The change does not affect the measurement of the total benefit obligations as the change in service and interest costs offsets the actuarial gains and losses recorded in other comprehensive income. We made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a better measurement of service and interest costs. This change is considered a change in estimate and is accounted for on a prospective basis starting in fiscal year 2016. In April 2015, we offered all terminated vested participants of our domestic master defined benefit retirement plan an option to receive a lump sum cash payout in lieu of their right to future periodic benefit payments under the plan upon their retirement. Lump sums of $42.3 million were paid to participants in September 2015, triggering a plan settlement charge of $9.6 million , which is recorded as a component of Special charges on the Statements of Consolidated Income. Obligations and Funded Status The change in benefit obligations, plan assets and funded status, along with amounts recognized in the Consolidated Balance Sheets for our defined benefit retirement plans were as follows: Year Ended September 30 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 347.1 $ 315.5 Service cost 5.8 5.0 Interest cost 9.9 10.9 Actuarial loss (gain) (5.7 ) 27.4 Benefits paid (12.5 ) (11.9 ) Special termination benefits 0.1 — Exchange rate loss 1.1 0.2 Benefit obligation at end of year 345.8 347.1 Change in plan assets: Fair value of plan assets at beginning of year 267.0 219.1 Actual return on plan assets 28.8 28.8 Employer contributions 1.1 31.0 Benefits paid (12.5 ) (11.9 ) Fair value of plan assets at end of year 284.4 267.0 Funded status and net amounts recognized $ (61.4 ) $ (80.1 ) Amounts recorded in the Consolidated Balance Sheets: Accrued pension benefits, current portion $ (1.2 ) $ (1.1 ) Accrued pension benefits, long-term (60.2 ) (79.0 ) Net amount recognized $ (61.4 ) $ (80.1 ) In addition to the amounts above, net actuarial losses of $59.9 million and prior service costs of $0.6 million , less an applicable aggregate tax effect of $22.8 million are included as components of accumulated other comprehensive loss at September 30, 2017 . In addition to the amounts above, net actuarial losses of $85.7 million and prior service costs of $0.8 million , less an applicable aggregate tax effect of $32.2 million are included as components of accumulated other comprehensive loss at September 30, 2016 . The estimated net actuarial loss and prior service cost for our defined benefit retirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $4.5 million and $0.1 million , respectively. Accumulated Benefit Obligation The accumulated benefit obligation for all defined benefit pension plans was $325.7 million and $326.3 million at September 30, 2017 and 2016 . Selected information for our plans, including plans with accumulated benefit obligations exceeding plan assets, was as follows: September 30 2017 2016 PBO ABO Plan Assets PBO ABO Plan Assets Master plan $ 319.8 $ 301.5 $ 284.1 $ 319.6 $ 300.7 $ 266.8 International plans 20.8 19.0 0.3 22.2 20.3 0.2 Supplemental executive plan 5.2 5.2 — 5.3 5.3 — $ 345.8 $ 325.7 $ 284.4 $ 347.1 $ 326.3 $ 267.0 Actuarial Assumptions The weighted average assumptions used in accounting for our domestic pension plans were as follows: 2017 2016 2015 Weighted average assumptions to determine benefit obligations at the measurement date: Discount rate for obligation 3.9% 3.7% 4.4% Rate of compensation increase 3.0% 3.0% 3.0% Weighted average assumptions to determine benefit cost for the year: Discount rate for expense 3.7% 4.4% 4.5% Expected rate of return on plan assets 5.8% 5.8% 6.8% Rate of compensation increase 3.0% 3.0% 3.0% The discount rates used in the valuation of our defined benefit pension plans are evaluated annually based on current market conditions. In setting these rates we utilize long-term bond indices and yield curves as a preliminary indication of interest rate movements, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our pension obligations. The overall expected long-term rate of return is based on historical and expected future returns, which are inflation adjusted and weighted for the expected return for each component of the investment portfolio, as well as taking into consideration economic and capital market conditions. The rate of assumed compensation increase is also based on our specific historical trends of past wage adjustments. The weighted average discount rate assumptions used for our international plans are lower than our domestic plan assumptions and do not significantly affect the consolidated net benefit obligation or net periodic benefit cost balances. Plan Assets The weighted average asset allocations of our master defined benefit retirement plan at September 30, 2017 and 2016 , by asset category, along with target allocations, are as follows: 2017 Target Allocation 2016 Target Allocation 2017 Actual Allocation 2016 Actual Allocation Equity securities 37% - 45% 39 - 49% 42% 43% Fixed income securities 55% - 63% 51 - 61% 58% 57% Total 100% 100% We have a Plan Committee that sets investment guidelines with the assistance of an external consultant. These guidelines are established based on market conditions, risk tolerance, funding requirements and expected benefit payments. The Plan Committee also oversees the investment allocation process and monitors asset performance. As pension liabilities are long-term in nature, we employ a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent level of risk. Target allocations are guidelines, not limitations, and plan fiduciaries may occasionally approve allocations above or below a target range or elect to rebalance the portfolio within the targeted range. The investment portfolio contains a diversified portfolio of primarily equities and fixed income securities. Securities are also diversified in terms of domestic and international securities, short- and long-term securities, growth and value styles, large cap and small cap stocks. The primary investment strategy is a dynamic target allocation method that periodically rebalances among various investment categories depending on the current funded positions. This program is designed to actively move from return-seeking investments (such as equities) toward liability-hedging investments (such as long-duration fixed income) as funding levels improve. Trust assets are invested subject to the following policy restrictions: short-term securities must be rated A2/P2 or higher; all fixed-income securities shall have a credit quality rating "BBB" or higher; investments in equities in any one company may not exceed 10% of the equity portfolio. Fair Value Measurements of Plan Assets The following table summarizes the valuation of our pension plan assets by pricing categories: Balance at September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 7.2 $ 7.2 $ — $ — Equities (a) U.S. companies 58.6 — — — International companies 59.4 — — — Fixed income securities (a) 159.2 — — — Total plan assets at fair value $ 284.4 $ 7.2 $ — $ — Balance at September 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 3.7 $ 3.7 $ — $ — Equities (a) U.S. companies 59.3 — — — International companies 56.4 — — — Fixed income securities (a) 147.6 — — — Total plan assets at fair value $ 267.0 $ 3.7 $ — $ — (a) These investments are commingled funds and/or collective trusts valued using the net asset value ("NAV") unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund. During fiscal 2017, we adopted revised disclosure guidance related to investments measured at NAV as a practical expedient, under which they are no longer categorized in the fair value hierarchy. For further descriptions of the asset Levels used in the above chart, refer to Note 1 of our Consolidated Financial Statements. Cash Flows Our U.S. qualified defined benefit plan is funded in excess of 89% , as measured under the requirements of the Pension Protection Act of 2006, and therefore we expect that the plan will not be subject to the "at risk" funding requirements of this legislation. During 2017 and 2016 , we contributed cash of $1.1 million and $31.0 million to our defined benefit retirement plans. We will not be required to contribute to our master defined benefit retirement plan for fiscal year 2018 due to the current funding level; however, minimal contributions will be required for our unfunded plans. Estimated Future Benefit Payments The benefit payments, which are expected to be funded through plan assets and company contributions and reflect expected future service, are expected to be paid as follows: Pension Benefits 2018 $ 13.7 2019 $ 13.8 2020 $ 14.6 2021 $ 15.4 2022 $ 16.0 2023-2027 $ 91.4 Defined Contribution Savings Plans We have defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings. Company contributions to the plans are based on eligibility and employee contributions. Expense under these plans was $26.8 million in fiscal years 2017 and 2016 . During fiscal 2015 , the expense was $17.4 million . Postretirement Health Care Plans In addition to defined benefit retirement plans, we also offer two domestic postretirement health care plans, one of which was assumed in the acquisition of Welch Allyn, that provide health care benefits to qualified retirees and their dependents. The plans are closed to new participants and include retiree cost sharing provisions and generally extends retiree coverage for medical and prescription benefits beyond the COBRA continuation period to the date of Medicare eligibility. We use a measurement date of September 30, for these plans. The expense related to postretirement health care plans, including the Welch Allyn plan on a post-acquisition basis, has not been significant during fiscal years 2017 , 2016 or 2015 . The change in the accumulated postretirement benefit obligation was as follows: Year Ended September 30 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 21.6 $ 25.1 Service cost 0.4 0.3 Interest cost 0.5 0.8 Plan amendments (0.7 ) — Actuarial gain (1.8 ) (3.7 ) Benefits paid (0.9 ) (1.5 ) Retiree contributions 0.3 0.6 Benefit obligation at end of year $ 19.4 $ 21.6 Amounts recorded in the Consolidated Balance Sheets: Accrued benefits obligation, current portion $ 1.5 $ 1.6 Accrued benefits obligation, long-term 17.9 20.0 Net amount recognized $ 19.4 $ 21.6 We contributed approximately $0.9 million to the plans in fiscal 2017 , compared with $1.5 million in fiscal 2016 . In addition to the amounts above, net actuarial gains of $7.3 million and prior service credits of $1.0 million , less an applicable aggregate tax effect of $3.1 million are included as components of accumulated other comprehensive loss at September 30, 2017 . Net actuarial gains of $5.9 million and prior service credits of $0.5 million , less an applicable aggregate tax effect of $2.4 million are included as components of accumulated other comprehensive loss at September 30, 2016 . The estimated net actuarial gain and prior service benefit for our postretirement health care plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $(0.6) million and $(0.2) million . The discount rate used to determine the net periodic benefit cost for the postretirement health care plans during the fiscal years ended September 30, 2017 , 2016 and 2015 was 3.0% , 3.5% and 3.7% , respectively. The discount rate used to determine the benefit obligation as of September 30, 2017 was 3.3% . For fiscal year ended 2016 the discount rate ranged from 2.9% to 3.0% . For the fiscal year ended 2015 the discount rate was 3.5% . As of September 30, 2017 , the health care cost trend rates for the plans were generally assumed to be in the ranges of 6.9% to 8.7% , trending down to a rate of 4.5% over the long-term. A one-percentage-point increase/decrease in the assumed health care cost trend rates as of September 30, 2017 would cause an increase/decrease in service and interest costs of less than $0.1 million , along with an increase in the benefit obligation of $1.3 million and a decrease of $1.2 million . We fund the postretirement health care plans as benefits are paid, and current plan benefits are expected to require net company contributions of approximately $1.6 million in fiscal 2017 and approximately $2.0 million per fiscal year thereafter. |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2017 | |
Class of Stock Disclosures [Abstract] | |
Common Stock | Common Stock Share Repurchases As part of the $190.0 million share repurchase program approved by the Board of Directors in September 2013, we repurchased 0.8 million shares of our common stock in the open market during fiscal year 2017 valued at $50.0 million . We did no t repurchase shares in fiscal year 2016 in the open market. We repurchased 1.2 million shares of our common stock in the open market during fiscal year 2015 valued at $54.8 million . As of September 30, 2017 , a cumulative total of $175.3 million had been used under the then existing authorization. Repurchases may be made on the open market or via private transactions, and are used for general business purposes. On November 6, 2017, the Board of Directors approved an increase to the share repurchase program in an amount of $150.0 million , leaving the company approximately $165.0 million of availability under the share repurchase program as of such date. This program does not have an expiration date and there are no plans to terminate this program in the future. Stock-Based Compensation We have stock-based compensation plans under which employees and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. In addition to stock options, we grant performance share units ("PSUs") and RSUs to certain management level employees and vested deferred stock to non-employee directors. We also offer eligible employees the opportunity to buy shares of our common stock at a discount via an Employee Stock Purchase Plan ("ESPP"). Our primary stock-based compensation program is the Stock Incentive Plan, which has been approved by our shareholders. Under the Stock Incentive Plan, we have a total of 15.3 million authorized shares. As of September 30, 2017 , approximately 3.0 million shares were available for future grants under our stock-based compensation plans. We generally settle our stock-based awards with treasury shares. As of September 30, 2017 , we had 22.6 million treasury shares available for use to settle stock-based awards. The following table sets forth a summary of the annual stock-based compensation cost that was charged against income for all types of awards: Year Ended September 30 2017 2016 2015 Total stock-based compensation cost (pre-tax) $ 23.0 $ 23.1 $ 25.0 Total income tax benefit (16.5 ) (7.9 ) (7.5 ) Total stock-based compensation cost, net of tax $ 6.5 $ 15.2 $ 17.5 In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation – Stock Compensation (Topic 718), "Improvements to Employee Share-Based Payment Accounting." During the first quarter of fiscal 2017, we elected to early adopt ASU 2016-09, as permitted. Under ASU 2016-09, the tax effects of stock compensation will be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards will be treated as discrete items in the reporting period in which they occur. Amendments related to accounting for excess tax benefits have been adopted prospectively, resulting in recognition of excess tax benefits against income tax expense rather than additional paid-in capital of $8.9 million in the year ended September 30, 2017 . As a result of the adoption, we did not record an adjustment to retained earnings as we did not have net operating loss carryforwards attributable to excess tax benefits on stock compensation that had not been previously recognized to additional paid-in capital. Excess tax benefits for share-based payments are now included as net operating activities rather than net financing activities in the Statements of Consolidated Cash Flows. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. Cash paid by an employer when directly withholding shares for tax withholding purposes will continue to be classified as financing activities. We elected not to change our accounting policy for forfeitures. The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. Stock Options Stock options granted by our Compensation Committee of our Board under the Stock Incentive Plan are non-qualified stock options. These awards are generally granted with exercise prices equal to the average of the high and low prices of our common stock on the date of grant. They vest in equal annual installments over a three or four -year period and the maximum contractual term is ten years. We use a Binomial option-pricing model to estimate the fair value of stock options, and compensation cost is recognized on a straight-line basis over the requisite service period. The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values: Year Ended September 30 2017 2016 2015 Weighted average fair value per share $15.05 $14.07 $12.83 Valuation assumptions: Risk-free interest rate 1.7% 1.6% 1.6% Expected dividend yield 1.3% 1.2% 1.4% Expected volatility 33.2% 33.1% 35.0% Weighted average expected life (years) 4.9 4.9 4.9 The risk-free interest rate is based upon observed U.S. Treasury interest rates appropriate for the term of our employee stock options. Expected dividend yield is based on the history and our expectation of dividend payouts. Expected volatility was based on our historical stock price volatility. Expected life represents the weighted average period the stock options are expected to remain outstanding and is a derived output of the Binomial model. The expected life of employee stock options is impacted by the above assumptions as well as the post-vesting forfeiture rate and the exercise factor used in the Binomial model. These two variables are based on the history of exercises and forfeitures for previous stock options granted by us. The following table summarizes transactions under our stock option plans for fiscal year 2017 : Weighted Weighted Weighted Aggregate Balance Outstanding at October 1, 2016 2,006 $ 37.31 Granted 353 53.81 Exercised (556 ) 31.94 Cancelled/Forfeited (98 ) 49.28 Balance Outstanding at September 30, 2017 1,705 $ 41.79 6.2 $ 54.9 Exercisable at September 30, 2017 981 $ 35.29 4.6 $ 38.0 Options Expected to Vest 623 $ 50.36 8.2 $ 14.7 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $74.00 , as reported by the New York Stock Exchange on September 30, 2017 . This amount, which changes continuously based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date. The total intrinsic value of options exercised during fiscal years 2017 , 2016 and 2015 was $19.4 million , $4.0 million and $6.3 million , respectively. As of September 30, 2017 , there was $5.2 million of unrecognized compensation expense related to stock options granted under the Stock Incentive Plan. This unrecognized compensation expense does not reflect a reduction for our estimate of potential forfeitures, and is expected to be recognized over a weighted average period of 2.1 years. Restricted Stock Units RSUs are granted to certain employees with fair values equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. RSU grants are contingent upon continued employment and vest over periods ranging from one to four years. Dividends, payable in common stock equivalents, accrue on the grants and are subject to the same specified terms as the original grants, including the risk of forfeiture. The following table summarizes transactions for our nonvested RSUs for fiscal year 2017 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested RSUs at October 1, 2016 556 $ 46.32 Granted 255 57.47 Vested (241) 45.86 Forfeited (49) 49.14 Nonvested RSUs at September 30, 2017 521 $ 51.39 As of September 30, 2017 , there was $12.3 million of total unrecognized compensation expense related to nonvested RSUs granted under the Stock Incentive Plan. This unrecognized compensation expense does not reflect a reduction for our estimate of potential forfeitures, and is expected to be recognized over a weighted average period of 2 years. The total vest date fair value of shares that vested during fiscal years 2017 , 2016 and 2015 was $14.5 million , $14.4 million and $4.3 million , respectively. Performance Share Units Our Compensation Committee grants PSUs to certain employees and these awards are subject to any stock dividends, stock splits, and other similar rights inuring to common stock, but unlike our RSUs are not entitled to dividend reinvestment. Vesting of the grants is contingent upon achievement of performance targets and corresponding service requirements. The fair value of the PSUs is equal to the average of the high and low prices of our common stock on the date of grant, multiplied by the number of units granted. For PSUs with a market condition such as total shareholder return, the Monte-Carlo simulation method is used to determine fair value. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of stock price paths in order to develop a reasonable estimate of the range of our and the Peer Group’s future expected stock prices. The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted in fiscal 2017 , 2016 and 2015 are based on company-specific performance targets, with a total shareholder return collar. Year Ended September 30 2017 2016 2015 Weighted average fair value per share $55.95 $50.51 $47.82 Valuation assumptions: Risk-free interest rate 1.2% 1.1% 0.9% Expected dividend yield 0.0% 0.0% 0.0% Expected volatility 22.6% 22.3% 23.5% The basis for the assumptions listed above is similar to the valuation assumptions used for stock options, as discussed previously. The following table summarizes transactions for our nonvested PSUs for fiscal 2017 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested PSUs as of October 1, 2016 455 $ 49.50 Granted 143 55.95 Vested (196) 48.46 Forfeited (57) 49.92 Nonvested PSUs at September 30, 2017 345 $ 53.40 As of September 30, 2017 , there was $14.0 million of unrecognized compensation expense related to PSUs granted under the Stock Incentive Plan based on the expected achievement of certain performance targets or market conditions. This unrecognized compensation expense as of September 30, 2017 does not reflect a reduction for our estimate of potential forfeitures, and is expected to be recognized by the end of fiscal 2019. The total vest date fair value of shares that vested during fiscal 2017 , 2016 and 2015 was $14.2 million , $10.2 million and $20.5 million . |
Special Charges
Special Charges | 12 Months Ended |
Sep. 30, 2017 | |
Special Charges [Abstract] | |
Special Charges | Special Charges In connection with various organizational changes to improve our business alignment and cost structure, as well as legal settlements, we recognized special charges of $ 37.4 million , $ 39.9 million and $41.2 million for the year to date periods ended September 30, 2017 , 2016 and 2015 . These charges are summarized as follows: Dispositions During the fourth quarter of fiscal 2017, we sold our Völker business. We recorded impairment charges of $25.4 million during the third quarter, relating mainly to non-cash write-downs of long-lived assets and working capital associated with the Völker brand portfolio, and fiscal 2017 transaction related costs of approximately $3.0 million in Special charges. During the first quarter of fiscal 2017, we sold our Architectural Products business and recorded special charges of $1.1 million , primarily related to severance. Legal Settlements During the fourth quarter of fiscal 2017, we entered into a confidential agreement with Stryker Corporation, resolving alleged infringement of certain Hill-Rom patents covering proprietary communications networks whereby Stryker Corporation paid the Company $15.1 million . Integration and Business Realignment We recently acquired Mortara and Tridien and initiated integration activities to optimize the available synergies of our combined company. Additionally, with the acquisition of Welch Allyn in September 2015, we initiated plans to realign our business structure to facilitate the integration, take full advantage of available synergies, and position our existing businesses to capitalize on opportunities for growth. We also incurred costs, including severance and benefit costs, associated with other business realignment and integration activities. During the year ended September 30, 2017 , we incurred total integration and business realignment charges of approximately $ 7.6 million , of which $3.5 million were severance and benefit costs. These amounts compare to charges of $ 19.0 million , of which $14.0 million were severance and benefit costs during the year ended September 30, 2016 . Additionally, we recorded special charges of $14.4 million in the fourth quarter of fiscal 2015 related to the acquisition of Welch Allyn. We continue to evaluate additional actions related to integration and business realignment and expect additional special charges to be incurred. However, it is not practicable to estimate the amount of these future expected costs until such time as the evaluations are complete. Site Consolidation In the third quarter of fiscal 2015, we initiated a plan to streamline our operations and simplify our supply chain by consolidating certain manufacturing and distribution operations ("Site Consolidation"). As part of this action, we have announced the closure of five sites. During the year ended September 30, 2017 , we recorded total charges of $19.7 million , related to these efforts, of which $5.1 million were severance and benefit costs. During fiscal 2016, we recorded total charges related to the combined activities of $15.9 million related to these actions, including $7.2 million of severance and benefit costs. During fiscal 2015, we recorded severance and benefit charges of $2.7 million , as well as $1.8 million of other related costs. During the second quarter of fiscal 2017, we sold our Charleston property for $6.1 million in cash proceeds and recorded a gain of $5.2 million . Since the inception of the Site Consolidation program through September 30, 2017 , we have recognized aggregate special charges of $34.9 million . We continue to evaluate our facilities footprint and expect to incur additional costs with respect to other actions in the future, however, it is not practicable to estimate the amount of these future expected costs until such time as the evaluations are complete. 2014 Global Transformation During the second quarter of fiscal 2014, we announced a global transformation program focused on improving our cost structure. The domestic portion of this action was completed in fiscal 2015. Part of this program included reducing our European manufacturing capacity and streamlining our global operations by, among other things, executing a back office process transformation program in Europe. The restructuring in Europe is complete and, for the year to date period ended September 30, 2017 , resulted in charges of $0.9 million for legal and professional fees, temporary labor, project management, severance and benefit costs, and other administrative functions. These amounts compare to charges of $5.1 million and $12.7 million (net of reversals) in the prior year to date periods ended 2016 and 2015 . Since the inception of the 2014 global transformation program through September 30, 2017 , we have recognized aggregate special charges of $43.6 million . We do not expect to incur further costs related to this action. Pension Settlement Charge As disclosed in Note 6 of our Consolidated Financial Statements, we offered lump sum settlements to all terminated vested participants in our domestic master defined benefit retirement plan, which resulted in a settlement charge of $9.6 million . This charge was recorded as a component of special charges in fiscal 2015. For all accrued severance and other benefit charges described above, we record restructuring reserves within other current liabilities. The reserve activity for severance and other benefits during the year to date period ended September 30, 2017 was as follows: Balance at September 30, 2016 $ 14.7 Expenses 9.7 Cash Payments (14.3 ) Reversals (1.1 ) Balance at September 30, 2017 $ 9.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of income before income taxes and the consolidated income tax provision were as follows: Year Ended September 30 2017 2016 2015 Income before income taxes: Domestic $ 129.0 $ 92.2 $ 49.2 Foreign 54.0 46.1 15.9 Total $ 183.0 $ 138.3 $ 65.1 Income tax expense: Current provision Federal $ 61.6 $ 4.7 $ 35.3 State 8.6 2.2 3.6 Foreign 13.3 9.1 1.7 Total current provision 83.5 16.0 40.6 Deferred provision: Federal (34.9 ) 21.8 (18.1 ) State 1.3 1.2 (1.3 ) Foreign 0.8 (23.5 ) (2.9 ) Total deferred provision (32.8 ) (0.5 ) (22.3 ) Income tax expense $ 50.7 $ 15.5 $ 18.3 Differences between income tax expense reported for financial reporting purposes and that computed based upon the application of the statutory U.S. Federal tax rate to the reported income before income taxes were as follows: Year Ended September 30 2017 2016 2015 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Federal income tax (a) $ 64.1 35.0 % $ 48.4 35.0 % $ 22.8 35.0 % State income tax (b) 4.1 2.2 % 2.9 2.1 % 1.6 2.4 % Foreign income tax (c) (35.6 ) (19.4 )% (14.0 ) (10.1 )% (10.2 ) (15.7 )% Application of federal research tax credits (3.6 ) (2.0 )% (5.6 ) (4.0 )% (2.2 ) (3.4 )% Application of foreign tax credits (15.0 ) (8.2 )% (0.5 ) (0.4 )% (0.2 ) (0.3 )% Adjustment of estimated income tax accruals (0.8 ) (0.4 )% 0.3 0.2 % (1.6 ) (2.4 )% Valuation of tax attributes 36.3 19.8 % (14.4 ) (10.4 )% 4.0 6.2 % Foreign Inclusions 11.5 6.3 % 0.9 0.6 % 0.3 0.5 % Domestic manufacturer's deduction (4.4 ) (2.4 )% (1.8 ) (1.3 )% (1.5 ) (2.3 )% Excess tax benefits from share based awards (8.9 ) (4.9 )% — — % — — % Capitalized transaction costs — — % — — % 2.5 3.8 % Other, net 3.0 1.7 % (0.7 ) (0.5 )% 2.8 4.3 % Income tax expense $ 50.7 27.7 % $ 15.5 11.2 % $ 18.3 28.1 % (a) At statutory rate. (b) Net of Federal benefit. (c) Federal tax rate differential. The tax effect of temporary differences that gave rise to the deferred tax balance sheet accounts were as follows: Year Ended September 30 2017 2016 Deferred tax assets: Employee benefit accruals $ 64.5 $ 76.5 Inventory 16.6 13.9 Net operating loss carryforwards 70.7 47.1 Tax credit carryforwards 23.3 14.2 Other, net 41.4 46.4 216.5 198.1 Less: Valuation allowance (58.2 ) (26.9 ) Total deferred tax assets 158.3 171.2 Deferred tax liabilities: Depreciation (28.6 ) (41.6 ) Amortization (349.7 ) (371.2 ) Other, net (5.3 ) (3.1 ) Total deferred tax liabilities (383.6 ) (415.9 ) Deferred tax asset (liability) - net $ (225.3 ) $ (244.7 ) At September 30, 2017 , we had $68.6 million of deferred tax assets related to operating loss carryforwards in foreign jurisdictions that are subject to various carryforward periods with the majority eligible to be carried forward for an unlimited period. Additionally, we had $1.8 million of deferred tax assets related to federal net operating loss carryforwards which will expire between 2019 and 2033 and $0.3 million of deferred tax assets related to state net operating loss carryforwards, which expire between 2018 and 2035 . We had $15.0 million of deferred tax assets related to state tax credits, some of which will be carried forward for an unlimited period and some of which will expire between 2018 and 2031 . Additionally, we had $8.3 million of deferred tax assets related to foreign tax credits, which will expire between 2026 and 2027 .We had $3.8 million of deferred tax assets related to capital loss carryforwards, which will expire in 2021 . The gross deferred tax assets as of September 30, 2017 were reduced by valuation allowances of $58.2 million primarily related to certain foreign deferred tax attributes and state tax credit carryforwards as it is more likely than not that some portion or all of these tax attributes will not be realized. In evaluating whether it is more likely than not that we would recover our deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies were considered. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances. In connection with our integration of recent acquisitions, in 2017 the Company completed a restructuring to further align its capital and debt structure. As a result, non-US NOLs were generated for which a full valuation allowance was recorded. This was the primary driver of the increase in the valuation allowance from the prior year end. We operate under tax holidays in both Singapore and Puerto Rico. The Singapore tax holiday is effective through 2018 while the Puerto Rico tax holiday is effective through 2025 . Both incentives are conditional on meeting certain employment and/or investment thresholds. The impact of these tax holidays decreased foreign taxes by $3.6 million in fiscal 2017 , $4.1 million for fiscal 2016 and $4.3 million for fiscal 2015 . The benefit of the tax holidays on net income per share (diluted) was $0.05 , $0.06 and $0.07 for fiscal 2017 , 2016 and 2015 , respectively. With regard to our non-U.S. subsidiaries, it is our practice and intention to reinvest the earnings in those businesses, to fund capital expenditures and other operating cash needs. Because the undistributed earnings of non-U.S. subsidiaries are considered to be permanently reinvested, no U.S. deferred income taxes or foreign withholding taxes have been provided. As of September 30, 2017 , we have approximately $335.9 million of undistributed earnings in our non-U.S. subsidiaries that are considered to be permanently reinvested. If such earnings were repatriated, additional tax expense may result. It is not practicable to estimate the amount of deferred tax liability related to these undistributed earnings due to the assumptions necessary to compute the tax. We file a consolidated federal income tax return as well as multiple state, local and foreign jurisdiction tax returns. In the normal course of business, we are subject to examination by the taxing authorities in each of the jurisdictions where we file tax returns. During fiscal 2017, the Internal Revenue Service ("IRS") concluded its audit for fiscal year 2015 and initiated its post-filing examination of the fiscal 2016 consolidated federal return. We continue to participate in the IRS Compliance Assurance Program ("CAP") for fiscal year 2017 and 2018 and have submitted the application to remain in the CAP for fiscal year 2019. The CAP provides the opportunity for the IRS to review certain tax matters prior to us filing our tax return for the year, thereby reducing the time it takes to complete the post-filing examination. We are also subject to state and local or foreign income tax examinations by taxing authorities for years back to fiscal 2013. We also have on-going audits in various stages of completion in several state and foreign jurisdictions, one or more of which may conclude within the next 12 months . Such settlements could involve some or all of the following: the payment of additional taxes, the adjustment of certain deferred taxes and/or the recognition of unrecognized tax benefits. The resolution of these matters, in combination with the expiration of certain statutes of limitations in various jurisdictions, make it reasonably possible that our unrecognized tax benefits may decrease as a result of either payment or recognition by approximately $0.5 million to $1.0 million in the next twelve months, excluding interest. The total amount of gross unrecognized tax benefits as of September 30, 2017 , 2016 and 2015 was $4.5 million , $5.1 million and $5.8 million , which includes $3.3 million , $3.6 million and $3.3 million that, if recognized, would impact the effective tax rate in future periods. The remaining amount relates to items which, if recognized, would not impact our effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended September 30 2017 2016 2015 Balance at October 1 5.1 5.8 4.1 Increases in tax position of prior years 0.1 0.8 0.4 Decreases in tax position of prior years — (0.1 ) (1.3 ) Settlements with taxing authorities — (0.3 ) (1.2 ) Lapse of applicable statute of limitations (0.8 ) (0.5 ) (1.3 ) Change in positions due to acquisitions — (0.6 ) 5.5 Foreign currency adjustments 0.1 — (0.4 ) Total change (0.6 ) (0.7 ) 1.7 Balance at September 30 $ 4.5 $ 5.1 $ 5.8 We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Accrued interest and penalties, which are not presented in the reconciliation table above, were $2.6 million , $3.0 million and $3.0 million at September 30, 2017 , 2016 and 2015 , respectively. Related to interest and penalties, we recognized an income tax benefit of $0.4 million in 2017 and $0.2 million in 2015 . There was no income tax impact of interest or penalties in 2016. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is calculated based upon the weighted average number of outstanding common shares for the period, plus the effect of deferred vested shares. Diluted earnings per share is calculated consistent with the basic earnings per share calculation plus the effect of dilutive unissued common shares related to stock-based employee compensation programs. For all periods presented, anti-dilutive stock options were excluded from the calculation of diluted earnings per share. Cumulative treasury stock acquired, less cumulative shares reissued, have been excluded in determining the average number of shares outstanding. Earnings per share are calculated as follows (share information in thousands): Year Ended September 30 2017 2016 2015 Net income attributable to common shareholders $ 133.6 $ 124.1 $ 47.7 Average shares outstanding - Basic 65,599 65,333 57,249 Add potential effect of exercise of stock options 1,626 1,263 1,287 Average shares outstanding - Diluted 67,225 66,596 58,536 Net income attributable to common shareholders per common share - Basic $ 2.04 $ 1.90 $ 0.83 Net income attributable to common shareholders per common share - Diluted $ 1.99 $ 1.86 $ 0.82 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We disclose segment information that is consistent with the way in which management operates and views the business. During our first quarter of fiscal 2017, we changed our segment reporting to reflect changes in our organizational structure and management’s operation and view of the business. We combined the prior year North America Patient Support Systems segment and International Patient Support Systems segment into a new segment called Patient Support Systems. Our Patient Support Systems segment now also includes an additional component of global marketing spend that was previously unallocated. The prior year segment information included in this Form 10-K has been updated to reflect these changes. Our revised operating structure contains the following reporting segments: • Patient Support Systems – globally provides our specialty bed frames and surfaces and mobility solutions, as well as our clinical workflow solutions which specializes in software and information technologies to improve care and deliver actionable insight to caregivers and patients. • Front Line Care – globally provides respiratory care products, and sells medical diagnostic monitoring equipment and a diversified portfolio of physical assessment tools that assess, diagnose, treat, and manage a wide variety of illnesses and diseases. • Surgical Solutions – globally provides products that improve surgical safety and efficiency in the operating room including tables, lights, pendants, positioning devices and various other surgical products and accessories. Under our revised segments, our performance within each reportable segment continues to be measured on a divisional income basis before non-allocated operating and administrative costs, litigation, special charges, acquisition and integration costs, acquisition-related intangible asset amortization, and other unusual events. Divisional income generally represents the division’s gross profit less its direct operating costs along with an allocation of manufacturing and distribution costs, research and development and certain corporate functional expenses. Non-allocated operating costs, administrative costs, and other includes functional expenses that support the entire organization such as administration, finance, legal and human resources, expenses associated with strategic developments, acquisition-related intangible asset amortization, and other events that are not indicative of operating trends. We exclude such amounts from divisional income to allow management to evaluate and understand divisional operating trends. The chief operating decision maker does not receive any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Year Ended September 30 2017 2016 2015 Revenue: Patient Support Systems $ 1,423.9 $ 1,437.2 $ 1,426.6 Front Line Care 885.3 809.7 139.0 Surgical Solutions 434.5 408.3 422.6 Total revenue $ 2,743.7 $ 2,655.2 $ 1,988.2 Divisional income: Patient Support Systems $ 249.6 $ 245.2 $ 206.5 Front Line Care 231.8 202.1 41.5 Surgical Solutions 42.5 46.2 56.0 Other operating costs: Non-allocated operating costs, administrative costs, and other 213.1 223.3 179.7 Special charges 37.4 39.9 41.2 Operating profit 273.4 230.3 83.1 Interest expense (88.9 ) (90.4 ) (18.4 ) Loss on extinguishment of debt — (10.8 ) — Investment income and other, net (1.5 ) 9.2 0.4 Income before income taxes $ 183.0 $ 138.3 $ 65.1 Geographic Information Geographic data for net revenue and long-lived assets (which consist mainly of property and equipment leased to others) were as follows: Year Ended September 30 2017 2016 2015 Net revenue to unaffiliated customers: (a) United States $ 1,895.2 $ 1,829.4 $ 1,273.0 Foreign 848.5 825.8 715.2 Total revenue $ 2,743.7 $ 2,655.2 $ 1,988.2 Long-lived assets: (b) United States $ 243.9 $ 234.2 $ 263.9 Foreign 111.5 115.8 114.5 Total long-lived assets $ 355.4 $ 350.0 $ 378.4 (a) Net revenue is attributed to geographic areas based on the location of the customer. (b) Includes property and equipment leased to others. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following table presents selected consolidated financial data by quarter for each of the last two fiscal years. 2017 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 637.4 $ 678.9 $ 689.1 $ 738.3 Gross Profit $ 302.6 $ 324.4 $ 331.1 $ 362.5 Net Income Attributable to Common Shareholders $ 23.8 $ 34.4 $ 6.0 $ 69.4 Net Income Attributable to Common Shareholders per Common Share - Basic $ 0.36 $ 0.52 $ 0.09 $ 1.06 Net Income Attributable to Common Shareholders per Common Share - Diluted $ 0.36 $ 0.51 $ 0.09 $ 1.03 2016 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 661.2 $ 632.6 $ 655.4 $ 706.0 Gross Profit $ 290.7 $ 304.2 $ 315.4 $ 346.7 Net Income Attributable to Common Shareholders $ 4.8 $ 22.3 $ 45.3 $ 51.7 Net Income Attributable to Common $ 0.07 $ 0.34 $ 0.69 $ 0.79 Net Income Attributable to Common $ 0.07 $ 0.33 $ 0.68 $ 0.77 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments Rental expense for fiscal years 2017 , 2016 and 2015 was $30.5 million , $31.7 million and $25.2 million , respectively. The table below indicates the minimum annual rental commitments (excluding renewable periods) aggregating $105.1 million , for manufacturing facilities, warehouse distribution centers, service centers and sales offices, under non-cancelable operating leases. Amount 2018 $ 31.7 2019 $ 23.4 2020 $ 15.7 2021 $ 11.9 2022 $ 8.8 2023 and beyond $ 13.6 Self Insurance We are involved in various claims, including product and general liability, workers’ compensation, auto liability and employment related matters. Such claims in the United States have deductibles and self-insured retentions ranging from $25.0 thousand to $1.0 million per occurrence or per claim, depending upon the type of coverage and policy period. International deductibles and self-insured retentions are lower. We are also generally self-insured up to certain stop-loss limits for certain employee health benefits, including medical, drug and dental. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims and outside actuarial analysis, which are based on historical information along with certain assumptions about future events. Such estimated reserves are classified as Other Current Liabilities and Other Long-Term Liabilities within the Consolidated Balance Sheets. Legal Proceedings General We are subject to various other claims and contingencies arising out of the normal course of business, including those relating to governmental investigations and proceedings, commercial transactions, product liability, employee related matters, antitrust, safety, health, taxes, environmental and other matters. Litigation is subject to many uncertainties and the outcome of individual litigated matters is not predictable with assurance. It is possible that some litigation matters for which reserves have not been established could be decided unfavorably to us, and that any such unfavorable decisions could have a material adverse effect on our financial condition, results of operations and cash flows. Universal Hospital Services, Inc. Litigation On January 13, 2015, Universal Hospital Services, Inc. filed a complaint against us in the United States District Court for the Western District of Texas. The plaintiff alleges, among other things, that we engaged in certain customer contracting practices in violation of state and federal antitrust laws. The plaintiff also has asserted claims for tortious interference with business relationships. The plaintiff seeks injunctive relief and money damages in an unspecified amount. No trial date has been set. We believe that the allegations are without merit and intend to defend this matter vigorously. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts For The Fiscal Years Ended September 30, 2017 , 2016 and 2015 (Dollars in millions) ADDITIONS DESCRIPTION BALANCE AT BEGINNING OF PERIOD CHARGED TO COSTS AND EXPENSES CHARGED TO OTHER ACCOUNTS DEDUCTIONS NET OF RECOVERIES BALANCE AT END OF PERIOD Reserves deducted from assets to which they apply: Allowance for possible losses and sales returns - accounts receivable: Period Ended: September 30, 2017 $ 26.8 $ 4.3 $ 2.0 (a) $ (8.0 ) (b) $ 25.1 September 30, 2016 $ 26.0 $ 2.1 $ 2.2 (a) $ (3.5 ) (b) $ 26.8 September 30, 2015 $ 31.4 $ 1.8 $ 0.1 (a) $ (7.3 ) (b) $ 26.0 Valuation allowance against deferred tax assets: Period Ended: September 30, 2017 $ 26.9 $ 30.8 $ — (c) $ 0.5 (d) $ 58.2 September 30, 2016 $ 40.7 $ (14.9 ) $ — (c) $ 1.1 (d) $ 26.9 September 30, 2015 $ 28.3 $ 4.0 $ 11.1 $ (2.7 ) (d) $ 40.7 (a) Reduction of gross revenue for uncollectible health care rental reimbursements, cash discounts and other adjustments in determining net revenue. Also includes the effect of acquired businesses, if any. (b) Generally reflects the write-off of specific receivables against recorded reserves. (c) Generally reflects the effect of acquired businesses, if any. (d) Primarily reflects write-offs of deferred tax assets against the valuation allowance. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Hill-Rom Holdings, Inc. (the "Company," "Hill-Rom," "we," "us," or "our") was incorporated on August 7, 1969 in the State of Indiana and is headquartered in Chicago, Illinois. We are a leading global medical technology company with more than 10,000 employees worldwide. We partner with health care providers in more than 100 countries, across all care settings, by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Patient Monitoring and Diagnostics, Surgical Safety and Efficiency and Respiratory Health. We have three reportable segments, each of which is generally aligned by region and/or product type. Around the world, Hill-Rom's people, products, and programs work towards one mission: Enhancing outcomes for patients and their caregivers. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements include the accounts of Hill-Rom and its wholly-owned subsidiaries. In addition, we also consolidate variable interest entities ("VIEs") where Hill-Rom is deemed to have a controlling financial interest. Intercompany accounts and transactions have been eliminated in consolidation, including the intercompany transactions with consolidated VIEs. Where our ownership interest is less than 100 %, the noncontrolling interests are reported in our Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Examples of such estimates include our accounts receivable reserves (Note 1), accrued warranties (Note 1), the impairment of intangibles and goodwill (Note 3), use of the spot yield curve approach for pension expense (Note 6), income taxes (Notes 1 and 9) and commitments and contingencies (Note 13), among others. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider investments in marketable securities and other highly liquid instruments with a maturity of three months or less at date of purchase to be cash equivalents. All of our marketable securities may be freely traded. |
Trade Accounts Receivable | Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest, unless the transaction is an installment sale with extended payment terms. Reserves for uncollectible accounts represent our best estimate of the amount of probable credit losses and collection risk in our existing accounts receivable. We determine such reserves based on historical write-off experience by industry and reimbursement platform. Receivables are generally reviewed on a pooled basis based on historical collection experience for each reimbursement and receivable type. Receivables for sales transactions are also reviewed individually for collectability. Account balances are charged against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. If circumstances change, such as higher than expected claims denials, payment defaults, changes in our business composition or processes, adverse changes in general economic conditions, unfavorable impacts of austerity measures initiated by some governmental authorities, instability or disruption of credit markets, or an unexpected material adverse change in a major customer’s or payer’s ability to meet its obligations, our estimates of the realizability of trade receivables could be reduced by a material amount. Within rental revenue, the domestic third-party payers’ reimbursement process requires extensive documentation, which has had the effect of slowing both the billing and cash collection cycles relative to the rest of the business, and therefore, increasing total accounts receivable. Because of the extensive documentation required and the requirement to settle a claim with the primary payer prior to billing the secondary and/or patient portion of the claim, the collection period for a claim in a portion of our business may, in some cases, be extended. We generally hold our trade accounts receivable until they are paid. Certain long-term receivables are occasionally sold to third parties; however, any recognized gain or loss on such sales has historically not been material. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Inventory costs are determined by the last-in, first-out ("LIFO") method for approximately 21% and 26% of our inventories at September 30, 2017 and 2016 . Costs for other inventories have been determined principally by the first-in, first-out ("FIFO") method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost and depreciated over the estimated useful life of the assets using principally the straight-line method. Ranges of estimated useful lives are as follows: Useful Life Land improvements 6 - 15 years Buildings and building equipment 10 - 40 years Machinery and equipment 3 - 10 years Equipment leased to others 2 -10 years When property, plant and equipment is retired from service or otherwise disposed of, the cost and related amount of depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds on sale are charged or credited to income. Total depreciation expense for fiscal years 2017 , 2016 and 2015 was $82.0 million , $86.2 million and $73.6 million , respectively. The major components of property and the related accumulated depreciation were as follows: September 30 2017 2016 Cost Accumulated Depreciation Cost Accumulated Depreciation Land and land improvements $ 18.4 $ 3.3 $ 21.5 $ 3.1 Buildings and building equipment 196.1 84.7 186.9 91.9 Machinery and equipment 402.6 265.1 380.6 239.2 Equipment leased to others 362.5 271.1 372.8 277.6 Total $ 979.6 $ 624.2 $ 961.8 $ 611.8 |
Intangible Assets | Intangible Assets Intangible assets are stated at cost and consist predominantly of goodwill, software, patents, acquired technology, trademarks, and acquired customer relationship assets. With the exception of goodwill and certain trademarks, our intangible assets are amortized on a straight-line basis over periods generally ranging from 1 to 20 years. We assess the carrying value of goodwill and non-amortizable intangibles annually, during the third quarter of each fiscal year, or more often if events or changes in circumstances indicate there may be impairment. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: Financial instruments with unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. • Level 2: Financial instruments with observable inputs other than those included in Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Financial instruments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs reflect our own assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include our own data. We record cash and cash equivalents, as disclosed on our Consolidated Balance Sheets, as Level 1 instruments and certain other investments and derivatives as either Level 2 or 3 instruments. Except for the adoption of revised disclosure guidance related to investments held by our pension plan as discussed in Note 6, there have been no significant changes in our classification among assets and liabilities. Refer to Note 4 of our Consolidated Financial Statements for disclosure of our debt instrument fair values. |
Guarantees | Guarantees We routinely grant limited warranties on our products with respect to defects in material and workmanship. The terms of these warranties are generally one year ; however, certain components and products have substantially longer warranty periods. We recognize a reserve with respect to these obligations at the time of product sale, with subsequent warranty claims recorded directly against the reserve. The amount of the warranty reserve is determined based on historical trend experience for the covered products. For more significant warranty-related matters which might require a broad-based correction, separate reserves are established when such events are identified and the cost of correction can be reasonably estimated. In the normal course of business, we enter into various other guarantees and indemnities in our relationships with suppliers, service providers, customers, business partners and others. Examples of these arrangements would include guarantees of product performance, indemnifications to service providers and indemnifications of our actions to business partners. These guarantees and indemnifications have not historically nor do we expect them to have a material impact on our financial condition or results of operations, although indemnifications associated with our actions generally have no dollar limitations. In conjunction with our acquisition and divestiture activities, we have entered into select guarantees and indemnifications of performance with respect to the fulfillment of our commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. With respect to sale transactions, we also routinely enter into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on our financial condition and results of operations. |
Accrued Rebates | Accrued Rebates We provide rebates and sales incentives to certain customer groups and distributors. Provisions for rebates are recorded as a reduction in net revenue when revenue is recognized. In some cases, rebates may be payable directly to the customer or distributor. We also have arrangements where we provide rebates to certain distributors that sell to end-user customers at prices determined under a contract between us and the end-user customer. |
Retirement Plans | Retirement Plans We sponsor retirement and postretirement plans covering select employees. Expense recognized in relation to these defined benefit retirement plans and postretirement health care plans in the U.S. is based upon actuarial valuations and inherent in those valuations are key assumptions including discount rates, and where applicable, expected returns on assets, projected future salary rates and projected health care cost trends. The discount rates used in the valuation of our defined benefit pension and postretirement plans are evaluated annually based on current market conditions. In setting these rates we utilize long-term bond indices and yield curves as a preliminary indication of interest rate movements, and then make adjustments to the respective indices to reflect differences in the terms of the bonds covered under the indices in comparison to the projected outflow of our obligations. Our overall expected long-term rate of return on pension assets is based on historical and expected future returns, which are inflation adjusted and weighted for the expected return for each component of the investment portfolio. Our rate of assumed compensation increase is also based on our specific historical trends of wage adjustments. We account for our defined benefit pension and other postretirement plans by recognizing the funded status of a benefit plan in the statement of financial position. We also recognize in accumulated other comprehensive income (loss) certain gains and losses that arose during the period. See Note 6 of our Consolidated Financial Statements for key assumptions and further discussion related to our pension and postretirement plans. |
Environmental Liabilities | Environmental Liabilities Expenditures that relate to an existing condition caused by past operations, and which do not contribute to future revenue generation, are expensed. A reserve is established when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These reserves are determined without consideration of possible loss recoveries from third parties. Specific costs included in environmental expense and reserves include site assessment, development of a remediation plan, clean-up costs, post-remediation expenditures, monitoring, fines, penalties and legal fees. Reserve amounts represent the expected undiscounted future cash outflows associated with such plans and actions. |
Self Insurance | Self Insurance We are involved in various claims, including product and general liability, workers’ compensation, auto liability and employment related matters. |
Treasury Stock | Treasury Stock Treasury stock consists of our common shares that have been issued, but subsequently reacquired. We account for treasury stock purchases under the cost method. When these shares are reissued, we use an average-cost method to determine cost. Proceeds in excess of cost are credited to additional paid-in capital. |
Revenue Recognition - Sales and Rentals | Revenue Recognition — Sales and Rentals Revenue is presented in the Statements of Consolidated Income net of sales discounts and allowances, rebates and customer returns for product sales and rental revenue reserves. Revenue is evaluated under the following criteria and recognized when each is met: • Evidence of an arrangement: An agreement with the customer reflecting the terms and conditions to deliver products or services serves as evidence of an arrangement. • Delivery: For products, delivery is generally considered to occur upon transfer of title and risk of loss per the respective sales terms. For rental services, delivery is considered to occur when the services are rendered. • Fixed or determinable price: The sales price is considered fixed or determinable if it is not subject to refund or measurable adjustment. • Collection is deemed probable: At or prior to the time of a transaction, credit reviews of each customer are performed to determine the creditworthiness of the customer. Collection is deemed probable if the customer is expected to be able to pay amounts under the arrangement as those amounts become due. If collection is not probable, revenue is recognized when collection becomes probable, generally upon cash collection. As a general interpretation of the above guidelines, revenue for health care and surgical products are generally recognized upon delivery of the products to the customer and their assumption of risk of loss and other risks and rewards of ownership. Local business customs and sales terms specific to certain customers or products can sometimes result in deviations to this normal practice; however, in no case is revenue recognized prior to the transfer of risk of loss and rewards of ownership. For non-invasive therapy products and medical equipment management services, the majority of product offerings are rental products for which revenue is recognized consistent with the rendering of the service and use of products. For The Vest ® product, revenue is generally recognized at the time of receipt of authorization for billing from the applicable paying entity as this serves as evidence of the arrangement and sets a fixed or determinable price. For health care products and services aimed at improving operational efficiency and asset utilization, various revenue recognition techniques are used, depending on the offering. Arrangements to provide services, routinely under separately sold service and maintenance contracts, result in the deferral of revenue until specified services are performed. Service contract revenue is generally recognized ratably over the contract period, if applicable, or as services are rendered. Product-related goods are generally recognized upon delivery to the customer. For product sales, we record reserves resulting in a reduction of revenue for contractual discounts, as well as price concessions and product returns. Likewise, rental revenue reserves, reflecting contractual and other routine billing adjustments, are recorded as a reduction of revenue. Reserves for revenue are estimated based upon historical rates for revenue adjustments. |
Taxes Collected from Customers and Remitted to Governmental Units | Taxes Collected from Customers and Remitted to Governmental Units Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between us and our customers, including but not limited to sales taxes, use taxes, and value added taxes, are accounted for on a net (excluded from revenue and cost) basis. |
Cost of Revenue | Cost of Revenue Cost of goods sold for product sales consists primarily of purchased material costs, fixed manufacturing expense, variable direct labor, overhead costs and costs associated with the distribution and delivery of products to our customers. Rental expenses consist of costs associated directly with rental revenue, including depreciation, maintenance, logistics and service center facility and personnel costs. |
Research and Development Costs | In addition, certain costs for software development technology held for sale are capitalized as intangibles and are amortized over a period of three to five years once the software is ready for its intended use. Research and Development Costs Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Comprehensive Income | Comprehensive Income We include the net-of-tax effect of unrealized gains or losses on our available-for-sale securities, interest and foreign currency hedges, foreign currency translation adjustments and pension or other defined benefit postretirement plans’ actuarial gains or losses and prior service costs or credits in comprehensive income. See Note 5 of our Consolidated Financial Statements for further details. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of foreign operations is generally the local currency in the country of domicile. Assets and liabilities of foreign operations are primarily translated into U.S. dollars at year-end rates of exchange and the income statements are translated at the average rates of exchange prevailing during the year. Adjustments resulting from translation of the financial statements of foreign operations into U.S. dollars are excluded from the determination of net income, but included as a component of accumulated other comprehensive income (loss). Foreign currency gains and losses resulting from foreign currency transactions are included in our results of operations and are not material. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation under fair value provisions. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. In order to determine the fair value of stock options and other performance-based stock awards on the date of grant, we utilize a Binomial model. Inherent in this model are assumptions related to a volatility factor, expected life, risk-free interest rate, dividend yield and expected forfeitures. The risk-free interest rate is based on factual data derived from public sources. The volatility factor, expected life, dividend yield and expected forfeiture assumptions require judgment utilizing historical information, peer data and future expectations. Deferred stock (also known as restricted stock units ("RSUs")) is measured based on the fair market price of our common stock on the date of grant, as reported by the New York Stock Exchange, multiplied by the number of units granted. See Note 7 of our Consolidated Financial Statements for further details. |
Income Taxes | Income Taxes Hill-Rom and its eligible domestic subsidiaries file a consolidated U.S. income tax return. Foreign operations file income tax returns in a number of jurisdictions. Deferred income taxes are computed using an asset and liability approach to reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. We have a variety of deferred tax assets in numerous tax jurisdictions. These deferred tax assets are subject to periodic assessment as to recoverability. If it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recognized. In evaluating whether it is more likely than not that we would recover these deferred tax assets, future taxable income, the reversal of existing temporary differences and tax planning strategies are considered. As of September 30, 2017 , we had $58.2 million of valuation allowances on deferred tax assets, on a tax-effected basis, primarily related to certain foreign deferred tax attributes that are not expected to be utilized. We believe that our estimates for the valuation allowances recorded against deferred tax assets are appropriate based on current facts and circumstances. We account for uncertain income tax positions using a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The difference between the tax benefit recognized in the financial statements for an uncertain income tax position and the tax benefit claimed in the tax return is referred to as an unrecognized tax benefit. See Note 9 of our Consolidated Financial Statements for further details. |
Derivative Instruments and Hedging Activity | Derivative Instruments and Hedging Activity We use derivative financial instruments to manage the economic impact of fluctuations in currency exchange and interest rates. Derivative financial instruments related to currency exchange rates include forward purchase and sale agreements which generally have terms no greater than 15 months . Additionally, interest rate swaps are sometimes used to convert some or all of our long-term debt to either a fixed or variable rate. Derivative financial instruments are recognized on the Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in the Statement of Consolidated Income or the Statement of Consolidated Comprehensive Income, depending on whether a derivative is designated and considered effective as part of a hedge transaction, and if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income (loss) are subsequently included in the Statement of Consolidated Income in the periods in which earnings are affected by the hedged item. These activities have not had a material effect on our financial position or results of operations for the periods presented herein. |
Dispositions | Dispositions During the fourth quarter of fiscal 2017, we sold our Völker business. We recorded impairment charges of $25.4 million during the third quarter, relating mainly to non-cash write-downs of long-lived assets and working capital associated with the Völker brand portfolio, and fiscal 2017 transaction related costs of approximately $3.0 million in Special charges. We do not expect a majority of the impairment related to the disposition to be tax deductible. During the first quarter of fiscal 2017, we sold our Architectural Products business for $4.5 million in cash proceeds and recorded an immaterial gain in Investment income and other, net. During the fourth quarter of 2016, we sold our perinatal data management system for $10.5 million and recorded a gain of $10.1 million in Investment income and other, net. All businesses recently disposed were part of our Patient Support Systems segment. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). From the lessee’s perspective, the new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor’s perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor does not convey risks and rewards or control, an operating lease results. ASU 2016-02 is effective for our first quarter of fiscal 2020. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently in the process of evaluating the impact of the amended guidance on our Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which delayed the effective date of the new revenue guidance by one year, while permitting companies to early adopt the new standard as of the original effective date. As a result, the provisions of ASU 2014-09 and subsequent amendments, are effective for us in the first quarter of fiscal 2019 using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption. We plan to adopt the new standard effective October 1, 2018 and are continuing to evaluate the impact of adoption on our Consolidated Financial Statements and the implementation approach to be used. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Inventories | Inventories consist of the following: September 30 2017 2016 Finished products $ 147.5 $ 124.2 Work in process 38.8 35.7 Raw materials 98.2 92.1 Total $ 284.5 $ 252.0 |
Schedule of Ranges of Estimated Useful Lives | Ranges of estimated useful lives are as follows: Useful Life Land improvements 6 - 15 years Buildings and building equipment 10 - 40 years Machinery and equipment 3 - 10 years Equipment leased to others 2 -10 years |
Schedule of Major Components of Property and Related Accumulated Depreciation | The major components of property and the related accumulated depreciation were as follows: September 30 2017 2016 Cost Accumulated Depreciation Cost Accumulated Depreciation Land and land improvements $ 18.4 $ 3.3 $ 21.5 $ 3.1 Buildings and building equipment 196.1 84.7 186.9 91.9 Machinery and equipment 402.6 265.1 380.6 239.2 Equipment leased to others 362.5 271.1 372.8 277.6 Total $ 979.6 $ 624.2 $ 961.8 $ 611.8 |
Schedule of Intangible Assets and Related Accumulated Amortization and Impairment Losses | A summary of intangible assets and the related accumulated amortization and impairment losses follows: September 30 2017 2016 Cost Amortization and Impairment Cost Amortization and Impairment Goodwill $ 2,232.4 $ 472.8 $ 2,057.2 $ 472.8 Software 166.1 133.0 174.1 140.0 Patents and Trademarks 504.2 16.4 497.1 19.2 Other 966.0 342.9 870.4 239.1 Total $ 3,868.7 $ 965.1 $ 3,598.8 $ 871.1 |
Schedule of Expected Amortization Expense | Amortization expense for all other intangibles is expected to approximate the following for each of the next five fiscal years and thereafter: Amount 2018 $ 119.5 2019 $ 109.7 2020 $ 98.0 2021 $ 89.0 2022 $ 76.1 2023 and beyond $ 184.8 |
Reconciliation of Changes in Warranty Reserve | A reconciliation of changes in our warranty reserve is as follows: 2017 2016 2015 Balance at October 1 $ 27.5 $ 32.1 $ 28.4 Provision for warranties during the period 13.9 13.9 14.7 Warranty reserves acquired 1.5 2.6 7.1 Warranty claims incurred during the period (17.4 ) (21.1 ) (18.1 ) Balance at September 30 $ 25.5 $ 27.5 $ 32.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Mortara [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The following summarizes the preliminary estimate of the fair value of assets acquired and liabilities assumed at the date of the Mortara acquisition. During fiscal 2017, we made certain adjustments to the opening balance sheet as of the acquisition date which were insignificant. The fair value of assets acquired and liabilities assumed are still considered to be preliminary, however we do not expect further adjustments to be significant. Amount Trade receivables $ 16.4 Inventory 22.1 Other current assets 2.8 Property, plant and equipment 18.2 Goodwill 164.8 Trade names (7-year weighted average useful life) 15.8 Customer relationships (8-year useful life) 37.9 Developed technology (7-year useful life) 52.3 Other noncurrent assets 4.7 Current liabilities (22.5 ) Noncurrent liabilities (1.3 ) Total purchase price, net of cash acquired $ 311.2 |
Welch Allyn Holdings, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The following summarizes the fair value of assets acquired and liabilities assumed at the date of the acquisition. These results are considered final. Amount Trade receivables $ 62.9 Inventory 110.5 Other current assets 53.8 Property, plant, and equipment 91.5 Goodwill 1,179.8 Trade name (indefinite life) 434.0 Customer relationships (12-year useful life) 516.8 Developed technology (7-year weighted average useful life) 54.0 Other intangibles 19.5 Other noncurrent assets 26.5 Current liabilities (166.1 ) Noncurrent deferred income taxes (309.0 ) Other noncurrent liabilities (24.8 ) Total purchase price, net of cash acquired $ 2,049.4 Fair value of common stock issued $ 416.3 Cash payment, net of cash acquired 1,633.1 Total consideration $ 2,049.4 |
Goodwill and Indefinite-Lived26
Goodwill and Indefinite-Lived Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Activity | The following summarizes goodwill activity by reportable segment: Patient Support Systems Front Line Care Surgical Solutions Total Balances at September 30, 2015 Goodwill $ 536.0 $ 1,232.2 $ 315.1 $ 2,083.3 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net at September 30, 2015 63.2 1,232.2 315.1 1,610.5 Changes in Goodwill during the period: Goodwill related to acquisitions 7.9 (23.7 ) 1.1 (14.7 ) Currency translation effect 0.2 (3.0 ) (8.6 ) (11.4 ) Balances at September 30, 2016 Goodwill 544.1 1,205.5 307.6 2,057.2 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net at September 30, 2016 71.3 1,205.5 307.6 1,584.4 Changes in Goodwill during the period: Goodwill related to acquisitions (0.5 ) 164.8 — 164.3 Currency translation effect 1.4 5.3 4.2 10.9 Balances at September 30, 2017 Goodwill 545.0 1,375.6 311.8 2,232.4 Accumulated impairment losses (472.8 ) — — (472.8 ) Goodwill, net at September 30, 2017 $ 72.2 $ 1,375.6 $ 311.8 $ 1,759.6 |
Financing Agreements (Tables)
Financing Agreements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Total debt consists of the following: September 30, September 30, Revolving credit facilities $ 90.0 $ 235.8 Current portion of long-term debt 109.8 73.2 Senior secured Term Loan A, long-term portion 1,266.7 1,372.3 Senior unsecured 5.75% notes due on September 1, 2023 419.9 419.1 Senior unsecured 5.00% notes due on February 14, 2025 295.8 — Unsecured 7.00% debentures due on February 15, 2024 13.6 13.7 Unsecured 6.75% debentures due on December 15, 2027 29.6 29.6 Securitization Program 79.1 — Other 4.8 4.8 Total debt 2,309.3 2,148.5 Less Short-term borrowings 188.9 210.1 Total Long-term debt $ 2,120.4 $ 1,938.4 |
Schedule of Maturities of Long-term Debt | The following table summarizes the scheduled maturities of the TLA Facility for fiscal years 2018 through 2022 : Amount 2018 $ 109.7 2019 $ 146.3 2020 $ 146.3 2021 $ 987.2 2022 $ — |
Schedule of Facility Covenants | The required ratios vary providing a gradually decreasing maximum secured net leverage ratio and a gradually increasing minimum interest coverage ratio, as set forth in the following table: Fiscal Quarter Ended Maximum Minimum December 31, 2017 4.00x 3.50x December 31, 2018 3.50x 3.75x December 31, 2019 and thereafter 3.00x 4.00x |
Schedule of Long-term Debt Instruments | The estimated fair values of our long-term debt instruments are described in the table below: September 30, September 30, Senior secured Term Loan A $ 1,364.8 $ 1,441.0 Senior unsecured 5.75% notes due on September 1, 2023 449.3 454.0 Senior unsecured 5.00% notes due on February 14, 2025 311.9 — Unsecured debentures 46.8 45.8 Total debt $ 2,172.8 $ 1,940.8 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in OCL by Component | The following tables represent the changes in accumulated other comprehensive loss by component for the fiscal years ended September 30, 2017 and 2016 : Year Ended September 30, 2017 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending Derivative instruments and hedges $ 12.7 $ (0.9 ) $ 11.8 $ (4.4 ) $ 7.4 $ (3.1 ) $ 7.4 $ 4.3 Foreign currency translation adjustment 32.9 1.0 33.9 — 33.9 (115.2 ) 33.9 (81.3 ) Change in pension and postretirement defined benefit plans 22.1 5.9 28.0 (10.2 ) 17.8 (50.8 ) 17.8 (33.0 ) Total $ 67.7 $ 6.0 $ 73.7 $ (14.6 ) $ 59.1 $ (169.1 ) $ 59.1 $ (110.0 ) Year Ended September 30, 2016 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to reclassification Reclassification from Pre-tax Tax effect Net of tax Beginning balance Net activity Ending balance Derivative instruments and hedges $ (4.9 ) $ (0.1 ) $ (5.0 ) $ 1.9 $ (3.1 ) $ — $ (3.1 ) $ (3.1 ) Foreign currency translation adjustment (22.4 ) — (22.4 ) — (22.4 ) (92.8 ) (22.4 ) (115.2 ) Change in pension and postretirement defined benefit plans (8.5 ) 4.4 (4.1 ) 1.3 (2.8 ) (48.0 ) (2.8 ) (50.8 ) Total $ (35.8 ) $ 4.3 $ (31.5 ) $ 3.2 $ (28.3 ) $ (140.8 ) $ (28.3 ) $ (169.1 ) |
Schedule of Items Reclassified out of AOCL | The following table represents the items reclassified out of accumulated other comprehensive loss and the related tax effects during fiscal 2017 and 2016 : Year Ended September 30 2017 2016 Amount reclassified Tax effect Net of tax Amount reclassified Tax effect Net of tax Derivative instruments and hedges (a) $ (0.9 ) $ 0.3 $ (0.6 ) $ (0.1 ) $ — $ (0.1 ) Foreign currency translation adjustment (b) $ 1.0 $ — $ 1.0 $ — $ — $ — Change in pension and postretirement defined benefit plans (c) $ 5.9 $ (2.2 ) $ 3.7 $ 4.4 $ (1.3 ) $ 3.1 (a) Reclassified from accumulated other comprehensive income (loss) into Interest expense. (b) Reclassified from accumulated other comprehensive income (loss) into Special charges. (c) Reclassified from accumulated other comprehensive income (loss) into Cost of goods sold and Selling and administrative expenses. These components are included in the computation of net periodic pension expense. |
Retirement and Postretirement29
Retirement and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Master Defined Benefit Retirement Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Components of Net Pension Expense | The components of net periodic benefit cost for our defined benefit retirement plans were as follows: Year Ended September 30 2017 2016 2015 Service cost $ 5.8 $ 5.0 $ 5.4 Interest cost 9.9 10.9 14.6 Expected return on plan assets (14.6 ) (13.0 ) (16.7 ) Amortization of unrecognized prior service cost, net 0.2 0.3 0.6 Amortization of net loss 6.1 4.5 5.2 Net periodic benefit cost 7.4 7.7 9.1 Settlement charge — — 9.6 Special termination benefits 0.1 — — Net pension expense $ 7.5 $ 7.7 $ 18.7 |
Schedule of Changes in Obligations, Assets and Funded Status | The change in benefit obligations, plan assets and funded status, along with amounts recognized in the Consolidated Balance Sheets for our defined benefit retirement plans were as follows: Year Ended September 30 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 347.1 $ 315.5 Service cost 5.8 5.0 Interest cost 9.9 10.9 Actuarial loss (gain) (5.7 ) 27.4 Benefits paid (12.5 ) (11.9 ) Special termination benefits 0.1 — Exchange rate loss 1.1 0.2 Benefit obligation at end of year 345.8 347.1 Change in plan assets: Fair value of plan assets at beginning of year 267.0 219.1 Actual return on plan assets 28.8 28.8 Employer contributions 1.1 31.0 Benefits paid (12.5 ) (11.9 ) Fair value of plan assets at end of year 284.4 267.0 Funded status and net amounts recognized $ (61.4 ) $ (80.1 ) Amounts recorded in the Consolidated Balance Sheets: Accrued pension benefits, current portion $ (1.2 ) $ (1.1 ) Accrued pension benefits, long-term (60.2 ) (79.0 ) Net amount recognized $ (61.4 ) $ (80.1 ) |
Schedule of Accumulated Benefit Obligation | Selected information for our plans, including plans with accumulated benefit obligations exceeding plan assets, was as follows: September 30 2017 2016 PBO ABO Plan Assets PBO ABO Plan Assets Master plan $ 319.8 $ 301.5 $ 284.1 $ 319.6 $ 300.7 $ 266.8 International plans 20.8 19.0 0.3 22.2 20.3 0.2 Supplemental executive plan 5.2 5.2 — 5.3 5.3 — $ 345.8 $ 325.7 $ 284.4 $ 347.1 $ 326.3 $ 267.0 |
Schedule of Actuarial Assumptions | The weighted average assumptions used in accounting for our domestic pension plans were as follows: 2017 2016 2015 Weighted average assumptions to determine benefit obligations at the measurement date: Discount rate for obligation 3.9% 3.7% 4.4% Rate of compensation increase 3.0% 3.0% 3.0% Weighted average assumptions to determine benefit cost for the year: Discount rate for expense 3.7% 4.4% 4.5% Expected rate of return on plan assets 5.8% 5.8% 6.8% Rate of compensation increase 3.0% 3.0% 3.0% |
Schedule of Allocation of Plan Assets | The weighted average asset allocations of our master defined benefit retirement plan at September 30, 2017 and 2016 , by asset category, along with target allocations, are as follows: 2017 Target Allocation 2016 Target Allocation 2017 Actual Allocation 2016 Actual Allocation Equity securities 37% - 45% 39 - 49% 42% 43% Fixed income securities 55% - 63% 51 - 61% 58% 57% Total 100% 100% |
Schedule of Fair Value Measurements of Plan Assets | The following table summarizes the valuation of our pension plan assets by pricing categories: Balance at September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 7.2 $ 7.2 $ — $ — Equities (a) U.S. companies 58.6 — — — International companies 59.4 — — — Fixed income securities (a) 159.2 — — — Total plan assets at fair value $ 284.4 $ 7.2 $ — $ — Balance at September 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 3.7 $ 3.7 $ — $ — Equities (a) U.S. companies 59.3 — — — International companies 56.4 — — — Fixed income securities (a) 147.6 — — — Total plan assets at fair value $ 267.0 $ 3.7 $ — $ — (a) These investments are commingled funds and/or collective trusts valued using the net asset value ("NAV") unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund. During fiscal 2017, we adopted revised disclosure guidance related to investments measured at NAV as a practical expedient, under which they are no longer categorized in the fair value hierarchy. For further descriptions of the asset Levels used in the above chart, refer to Note 1 of our Consolidated Financial Statements. |
Schedule of Estimated Future Benefit Payments | The benefit payments, which are expected to be funded through plan assets and company contributions and reflect expected future service, are expected to be paid as follows: Pension Benefits 2018 $ 13.7 2019 $ 13.8 2020 $ 14.6 2021 $ 15.4 2022 $ 16.0 2023-2027 $ 91.4 |
Postretirement Health Care Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Obligations, Assets and Funded Status | The change in the accumulated postretirement benefit obligation was as follows: Year Ended September 30 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 21.6 $ 25.1 Service cost 0.4 0.3 Interest cost 0.5 0.8 Plan amendments (0.7 ) — Actuarial gain (1.8 ) (3.7 ) Benefits paid (0.9 ) (1.5 ) Retiree contributions 0.3 0.6 Benefit obligation at end of year $ 19.4 $ 21.6 Amounts recorded in the Consolidated Balance Sheets: Accrued benefits obligation, current portion $ 1.5 $ 1.6 Accrued benefits obligation, long-term 17.9 20.0 Net amount recognized $ 19.4 $ 21.6 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Stock-Based Compensation Cost | The following table sets forth a summary of the annual stock-based compensation cost that was charged against income for all types of awards: Year Ended September 30 2017 2016 2015 Total stock-based compensation cost (pre-tax) $ 23.0 $ 23.1 $ 25.0 Total income tax benefit (16.5 ) (7.9 ) (7.5 ) Total stock-based compensation cost, net of tax $ 6.5 $ 15.2 $ 17.5 |
Schedule of Weighted Average Fair Value per Share of Stock Options and Related Valuation Assumptions | The following table sets forth the weighted average fair value per share of stock options and the related valuation assumptions used in the determination of those fair values: Year Ended September 30 2017 2016 2015 Weighted average fair value per share $15.05 $14.07 $12.83 Valuation assumptions: Risk-free interest rate 1.7% 1.6% 1.6% Expected dividend yield 1.3% 1.2% 1.4% Expected volatility 33.2% 33.1% 35.0% Weighted average expected life (years) 4.9 4.9 4.9 |
Schedule of Transactions under Stock Option Plans | The following table summarizes transactions under our stock option plans for fiscal year 2017 : Weighted Weighted Weighted Aggregate Balance Outstanding at October 1, 2016 2,006 $ 37.31 Granted 353 53.81 Exercised (556 ) 31.94 Cancelled/Forfeited (98 ) 49.28 Balance Outstanding at September 30, 2017 1,705 $ 41.79 6.2 $ 54.9 Exercisable at September 30, 2017 981 $ 35.29 4.6 $ 38.0 Options Expected to Vest 623 $ 50.36 8.2 $ 14.7 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $74.00 , as reported by the New York Stock Exchange on September 30, 2017 . This amount, which changes continuously based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date. |
Schedule of Transactions for Nonvested RSUs | The following table summarizes transactions for our nonvested RSUs for fiscal year 2017 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested RSUs at October 1, 2016 556 $ 46.32 Granted 255 57.47 Vested (241) 45.86 Forfeited (49) 49.14 Nonvested RSUs at September 30, 2017 521 $ 51.39 |
Schedule of Weighted Average Fair Value per Share of PSUs and Related Valuation Assumptions | The following table sets forth the weighted average fair value per share for PSUs and the related valuation assumptions used in the determination of those fair values. PSUs granted in fiscal 2017 , 2016 and 2015 are based on company-specific performance targets, with a total shareholder return collar. Year Ended September 30 2017 2016 2015 Weighted average fair value per share $55.95 $50.51 $47.82 Valuation assumptions: Risk-free interest rate 1.2% 1.1% 0.9% Expected dividend yield 0.0% 0.0% 0.0% Expected volatility 22.6% 22.3% 23.5% |
Schedule of Transactions for Nonvested PSUs | The following table summarizes transactions for our nonvested PSUs for fiscal 2017 : Number of Share Units (in thousands) Weighted Average Grant Date Fair Value Nonvested PSUs as of October 1, 2016 455 $ 49.50 Granted 143 55.95 Vested (196) 48.46 Forfeited (57) 49.92 Nonvested PSUs at September 30, 2017 345 $ 53.40 |
Special Charges (Tables)
Special Charges (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Special Charges [Abstract] | |
Restructuring Activity | The reserve activity for severance and other benefits during the year to date period ended September 30, 2017 was as follows: Balance at September 30, 2016 $ 14.7 Expenses 9.7 Cash Payments (14.3 ) Reversals (1.1 ) Balance at September 30, 2017 $ 9.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income before Income Taxes | The significant components of income before income taxes and the consolidated income tax provision were as follows: Year Ended September 30 2017 2016 2015 Income before income taxes: Domestic $ 129.0 $ 92.2 $ 49.2 Foreign 54.0 46.1 15.9 Total $ 183.0 $ 138.3 $ 65.1 |
Schedule of Income Tax Expense | Income tax expense: Current provision Federal $ 61.6 $ 4.7 $ 35.3 State 8.6 2.2 3.6 Foreign 13.3 9.1 1.7 Total current provision 83.5 16.0 40.6 Deferred provision: Federal (34.9 ) 21.8 (18.1 ) State 1.3 1.2 (1.3 ) Foreign 0.8 (23.5 ) (2.9 ) Total deferred provision (32.8 ) (0.5 ) (22.3 ) Income tax expense $ 50.7 $ 15.5 $ 18.3 |
Reconciliation of Income Tax Expense to Income Tax at Statutory Rate | Differences between income tax expense reported for financial reporting purposes and that computed based upon the application of the statutory U.S. Federal tax rate to the reported income before income taxes were as follows: Year Ended September 30 2017 2016 2015 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Federal income tax (a) $ 64.1 35.0 % $ 48.4 35.0 % $ 22.8 35.0 % State income tax (b) 4.1 2.2 % 2.9 2.1 % 1.6 2.4 % Foreign income tax (c) (35.6 ) (19.4 )% (14.0 ) (10.1 )% (10.2 ) (15.7 )% Application of federal research tax credits (3.6 ) (2.0 )% (5.6 ) (4.0 )% (2.2 ) (3.4 )% Application of foreign tax credits (15.0 ) (8.2 )% (0.5 ) (0.4 )% (0.2 ) (0.3 )% Adjustment of estimated income tax accruals (0.8 ) (0.4 )% 0.3 0.2 % (1.6 ) (2.4 )% Valuation of tax attributes 36.3 19.8 % (14.4 ) (10.4 )% 4.0 6.2 % Foreign Inclusions 11.5 6.3 % 0.9 0.6 % 0.3 0.5 % Domestic manufacturer's deduction (4.4 ) (2.4 )% (1.8 ) (1.3 )% (1.5 ) (2.3 )% Excess tax benefits from share based awards (8.9 ) (4.9 )% — — % — — % Capitalized transaction costs — — % — — % 2.5 3.8 % Other, net 3.0 1.7 % (0.7 ) (0.5 )% 2.8 4.3 % Income tax expense $ 50.7 27.7 % $ 15.5 11.2 % $ 18.3 28.1 % (a) At statutory rate. (b) Net of Federal benefit. (c) Federal tax rate differential. |
Schedule of Deferred Taxes | The tax effect of temporary differences that gave rise to the deferred tax balance sheet accounts were as follows: Year Ended September 30 2017 2016 Deferred tax assets: Employee benefit accruals $ 64.5 $ 76.5 Inventory 16.6 13.9 Net operating loss carryforwards 70.7 47.1 Tax credit carryforwards 23.3 14.2 Other, net 41.4 46.4 216.5 198.1 Less: Valuation allowance (58.2 ) (26.9 ) Total deferred tax assets 158.3 171.2 Deferred tax liabilities: Depreciation (28.6 ) (41.6 ) Amortization (349.7 ) (371.2 ) Other, net (5.3 ) (3.1 ) Total deferred tax liabilities (383.6 ) (415.9 ) Deferred tax asset (liability) - net $ (225.3 ) $ (244.7 ) |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended September 30 2017 2016 2015 Balance at October 1 5.1 5.8 4.1 Increases in tax position of prior years 0.1 0.8 0.4 Decreases in tax position of prior years — (0.1 ) (1.3 ) Settlements with taxing authorities — (0.3 ) (1.2 ) Lapse of applicable statute of limitations (0.8 ) (0.5 ) (1.3 ) Change in positions due to acquisitions — (0.6 ) 5.5 Foreign currency adjustments 0.1 — (0.4 ) Total change (0.6 ) (0.7 ) 1.7 Balance at September 30 $ 4.5 $ 5.1 $ 5.8 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculated Earnings per share | Earnings per share are calculated as follows (share information in thousands): Year Ended September 30 2017 2016 2015 Net income attributable to common shareholders $ 133.6 $ 124.1 $ 47.7 Average shares outstanding - Basic 65,599 65,333 57,249 Add potential effect of exercise of stock options 1,626 1,263 1,287 Average shares outstanding - Diluted 67,225 66,596 58,536 Net income attributable to common shareholders per common share - Basic $ 2.04 $ 1.90 $ 0.83 Net income attributable to common shareholders per common share - Diluted $ 1.99 $ 1.86 $ 0.82 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Consolidated Financial Information | Year Ended September 30 2017 2016 2015 Revenue: Patient Support Systems $ 1,423.9 $ 1,437.2 $ 1,426.6 Front Line Care 885.3 809.7 139.0 Surgical Solutions 434.5 408.3 422.6 Total revenue $ 2,743.7 $ 2,655.2 $ 1,988.2 Divisional income: Patient Support Systems $ 249.6 $ 245.2 $ 206.5 Front Line Care 231.8 202.1 41.5 Surgical Solutions 42.5 46.2 56.0 Other operating costs: Non-allocated operating costs, administrative costs, and other 213.1 223.3 179.7 Special charges 37.4 39.9 41.2 Operating profit 273.4 230.3 83.1 Interest expense (88.9 ) (90.4 ) (18.4 ) Loss on extinguishment of debt — (10.8 ) — Investment income and other, net (1.5 ) 9.2 0.4 Income before income taxes $ 183.0 $ 138.3 $ 65.1 |
Schedule of Geographic Information | Geographic data for net revenue and long-lived assets (which consist mainly of property and equipment leased to others) were as follows: Year Ended September 30 2017 2016 2015 Net revenue to unaffiliated customers: (a) United States $ 1,895.2 $ 1,829.4 $ 1,273.0 Foreign 848.5 825.8 715.2 Total revenue $ 2,743.7 $ 2,655.2 $ 1,988.2 Long-lived assets: (b) United States $ 243.9 $ 234.2 $ 263.9 Foreign 111.5 115.8 114.5 Total long-lived assets $ 355.4 $ 350.0 $ 378.4 (a) Net revenue is attributed to geographic areas based on the location of the customer. (b) Includes property and equipment leased to others. |
Quarterly Financial Informati35
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Consolidated Financial Data | The following table presents selected consolidated financial data by quarter for each of the last two fiscal years. 2017 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 637.4 $ 678.9 $ 689.1 $ 738.3 Gross Profit $ 302.6 $ 324.4 $ 331.1 $ 362.5 Net Income Attributable to Common Shareholders $ 23.8 $ 34.4 $ 6.0 $ 69.4 Net Income Attributable to Common Shareholders per Common Share - Basic $ 0.36 $ 0.52 $ 0.09 $ 1.06 Net Income Attributable to Common Shareholders per Common Share - Diluted $ 0.36 $ 0.51 $ 0.09 $ 1.03 2016 Quarter Ended December 31, March 31, June 30, September 30, Net Revenue $ 661.2 $ 632.6 $ 655.4 $ 706.0 Gross Profit $ 290.7 $ 304.2 $ 315.4 $ 346.7 Net Income Attributable to Common Shareholders $ 4.8 $ 22.3 $ 45.3 $ 51.7 Net Income Attributable to Common $ 0.07 $ 0.34 $ 0.69 $ 0.79 Net Income Attributable to Common $ 0.07 $ 0.33 $ 0.68 $ 0.77 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | The table below indicates the minimum annual rental commitments (excluding renewable periods) aggregating $105.1 million , for manufacturing facilities, warehouse distribution centers, service centers and sales offices, under non-cancelable operating leases. Amount 2018 $ 31.7 2019 $ 23.4 2020 $ 15.7 2021 $ 11.9 2022 $ 8.8 2023 and beyond $ 13.6 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Nature of Operations) (Details) | 12 Months Ended |
Sep. 30, 2017employeescore_areacountriessegment | |
Accounting Policies [Abstract] | |
Number of employees (more than) | employees | 10,000 |
Number of countries | countries | 100 |
Number of core areas | core_area | 5 |
Number of reportable business segments | segment | 3 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Inventories | ||
Percentage of inventories determined by LIFO method | 21.00% | 26.00% |
Inventory, Net [Abstract] | ||
Finished products | $ 147.5 | $ 124.2 |
Work in process | 38.8 | 35.7 |
Raw materials | 98.2 | 92.1 |
Total | 284.5 | 252 |
Inventories if FIFO method were used | $ 2 | $ 2.1 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 82 | $ 86.2 | $ 73.6 |
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | 979.6 | 961.8 | |
Accumulated Depreciation | $ 624.2 | 611.8 | |
Land improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 6 years | ||
Land improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Land and land improvements [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | $ 18.4 | 21.5 | |
Accumulated Depreciation | 3.3 | 3.1 | |
Buildings and building equipment [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | 196.1 | 186.9 | |
Accumulated Depreciation | $ 84.7 | 91.9 | |
Buildings and building equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Buildings and building equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Machinery and equipment [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | $ 402.6 | 380.6 | |
Accumulated Depreciation | $ 265.1 | 239.2 | |
Machinery and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Machinery and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Equipment leased to others | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Cost | $ 362.5 | 372.8 | |
Accumulated Depreciation | $ 271.1 | $ 277.6 | |
Equipment leased to others | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 2 years | ||
Equipment leased to others | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill: | |||
Cost | $ 2,232.4 | $ 2,057.2 | $ 2,083.3 |
Impairment | 472.8 | 472.8 | 472.8 |
Total | |||
Total cost | 3,868.7 | 3,598.8 | |
Total amortization and impairment | 965.1 | 871.1 | |
Amortization expense | 128.8 | 122.8 | 44.6 |
Carrying value of trade names | 466.9 | 466.9 | |
Software amortization expense | 12.8 | 17 | $ 9.8 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,018 | 119.5 | ||
2,019 | 109.7 | ||
2,020 | 98 | ||
2,021 | 89 | ||
2,022 | 76.1 | ||
2023 and beyond | $ 184.8 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 20 years | ||
Software [Member] | |||
Total | |||
Cost | $ 166.1 | 174.1 | |
Amortization and Impairment | $ 133 | 140 | |
Software [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 3 years | ||
Software [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 5 years | ||
Patents and Trademarks [Member] | |||
Total | |||
Cost | $ 504.2 | 497.1 | |
Amortization and Impairment | 16.4 | 19.2 | |
Other [Member] | |||
Total | |||
Cost | 966 | 870.4 | |
Amortization and Impairment | $ 342.9 | 239.1 | |
Capitalized Software Costs [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 3 years | ||
Capitalized Software Costs [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 10 years | ||
Customer relationships [Member] | Welch Allyn Holdings, Inc. [Member] | |||
Total | |||
Cost | $ 517.4 | 514.1 | |
Amortization and Impairment | 125.5 | 62.1 | |
Customer relationships [Member] | Mortara [Member] | |||
Total | |||
Cost | 52.3 | ||
Amortization and Impairment | 4.6 | ||
Developed technology [Member] | Welch Allyn Holdings, Inc. [Member] | |||
Total | |||
Cost | 54 | 54 | |
Amortization and Impairment | 16.6 | $ 8.6 | |
Developed technology [Member] | Mortara [Member] | |||
Total | |||
Cost | 37.9 | ||
Amortization and Impairment | $ 2.9 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Guarantees) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | |||
Warranty term, generally | 1 year | ||
Guarantees | |||
Balance at October 1 | $ 27.5 | $ 32.1 | $ 28.4 |
Provision for warranties during the period | 13.9 | 13.9 | 14.7 |
Warranty reserves acquired | 1.5 | 2.6 | 7.1 |
Warranty claims incurred during the period | (17.4) | (21.1) | (18.1) |
Balance at September 30 | $ 25.5 | $ 27.5 | $ 32.1 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Other Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Research and Development Costs | ||||||
Research and development expenses | $ 133.7 | $ 133.5 | $ 91.8 | |||
Software costs capitalized | 2.3 | 2.4 | 2.6 | |||
Advertising Costs | ||||||
Advertising costs | 13.8 | 10.4 | 6.8 | |||
Income Taxes | ||||||
Valuation allowances on deferred tax assets | $ 26.9 | $ 58.2 | 26.9 | |||
Derivative Instruments and Hedging Activity | ||||||
Derivative term, generally (no greater than) | 15 months | |||||
Dispositions | ||||||
Impairment charges relating to non-cash write-downs of long-lived assets and working capital | $ 25.4 | |||||
Transaction related costs for businesses to be disposed of | $ 3 | |||||
Proceeds on sale of businesses | $ 4.5 | 5.8 | 10.3 | 0 | ||
Sale of non-core products | 10.5 | 10.5 | ||||
Gain on sale of perinatal data management system | $ 10.1 | $ 1 | $ 10.1 | $ 0 | ||
Minimum [Member] | ||||||
Research and Development Costs | ||||||
Useful life of intangible assets | 1 year | |||||
Maximum [Member] | ||||||
Research and Development Costs | ||||||
Useful life of intangible assets | 20 years | |||||
Software [Member] | Minimum [Member] | ||||||
Research and Development Costs | ||||||
Useful life of intangible assets | 3 years | |||||
Software [Member] | Maximum [Member] | ||||||
Research and Development Costs | ||||||
Useful life of intangible assets | 5 years |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) | Feb. 14, 2017 | Sep. 21, 2016 | Sep. 08, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Feb. 28, 2017 |
Business Acquisition [Line Items] | |||||||
Cash payment, net of cash acquired | $ 311,400,000 | $ 25,300,000 | $ 1,638,700,000 | ||||
Goodwill | $ 1,759,600,000 | 1,584,400,000 | 1,610,500,000 | ||||
Loans Payable [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from issuance of senior notes | $ 1,800,000,000 | ||||||
Senior Notes [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from issuance of senior notes | 425,000,000 | ||||||
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Senior unsecured notes | $ 300,000,000 | ||||||
Mortara [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 330,000,000 | ||||||
Cash payment, net of cash acquired | 311,200,000 | ||||||
Goodwill | $ 164,800,000 | ||||||
Tridien Medical [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment, net of cash acquired | $ 26,000,000 | ||||||
Working capital | 10,400,000 | ||||||
Goodwill | 7,400,000 | ||||||
Intangible assets | $ 6,300,000 | ||||||
Welch Allyn Holdings, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | 1,686,800,000 | ||||||
Cash payment, net of cash acquired | 1,633,100,000 | ||||||
Goodwill | $ 1,179,800,000 | ||||||
Shares of common stock in acquisition | 8,133,722 | ||||||
Total combined purchase price | $ 2,049,400,000 | ||||||
Goodwill adjustment | $ 23,700,000 | ||||||
Pro forma revenue higher by | 638,000,000 | ||||||
Pro forma net income lower by | $ 59,000,000 |
Acquisitions (Schedule of Fair
Acquisitions (Schedule of Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Feb. 14, 2017 | Sep. 08, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | $ 1,759.6 | $ 1,584.4 | $ 1,610.5 | ||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract] | |||||
Fair value of common stock issued | 0 | 0 | 416.3 | ||
Cash payment, net of cash acquired | $ 311.4 | $ 25.3 | $ 1,638.7 | ||
Mortara [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Trade receivables | $ 16.4 | ||||
Inventory | 22.1 | ||||
Other current assets | 2.8 | ||||
Property, plant and equipment | 18.2 | ||||
Goodwill | 164.8 | ||||
Other noncurrent assets | 4.7 | ||||
Current liabilities | (22.5) | ||||
Noncurrent liabilities | (1.3) | ||||
Total purchase price, net of cash acquired | 311.2 | ||||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract] | |||||
Cash payment, net of cash acquired | 311.2 | ||||
Mortara [Member] | Trade names [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangibles (finite-lived) | $ 15.8 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Weighted-average useful life | 7 years | ||||
Mortara [Member] | Customer relationships [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangibles (finite-lived) | $ 37.9 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Weighted-average useful life | 8 years | ||||
Mortara [Member] | Developed technology [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangibles (finite-lived) | $ 52.3 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Weighted-average useful life | 7 years | ||||
Welch Allyn Holdings, Inc. [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Trade receivables | $ 62.9 | ||||
Inventory | 110.5 | ||||
Other current assets | 53.8 | ||||
Property, plant and equipment | 91.5 | ||||
Goodwill | 1,179.8 | ||||
Other noncurrent assets | 26.5 | ||||
Current liabilities | (166.1) | ||||
Noncurrent deferred income taxes | (309) | ||||
Noncurrent liabilities | (24.8) | ||||
Total purchase price, net of cash acquired | 2,049.4 | ||||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract] | |||||
Fair value of common stock issued | 416.3 | ||||
Cash payment, net of cash acquired | 1,633.1 | ||||
Total consideration | 2,049.4 | ||||
Welch Allyn Holdings, Inc. [Member] | Trade names [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Trade names | 434 | ||||
Welch Allyn Holdings, Inc. [Member] | Customer relationships [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangibles (finite-lived) | $ 516.8 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Weighted-average useful life | 12 years | ||||
Welch Allyn Holdings, Inc. [Member] | Developed technology [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangibles (finite-lived) | $ 54 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Weighted-average useful life | 7 years | ||||
Welch Allyn Holdings, Inc. [Member] | Other intangibles [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Intangibles (finite-lived) | $ 19.5 |
Goodwill and Indefinite-Lived45
Goodwill and Indefinite-Lived Intangible Assets (Schedule of Goodwill Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Line Items] | |||
Goodwill | $ 2,232.4 | $ 2,057.2 | $ 2,083.3 |
Accumulated impairment losses | (472.8) | (472.8) | (472.8) |
Goodwill [Roll Forward] | |||
Goodwill, net | 1,584.4 | 1,610.5 | |
Goodwill related to acquisitions | 164.3 | (14.7) | |
Currency translation effect | 10.9 | (11.4) | |
Goodwill, net | 1,759.6 | 1,584.4 | |
Patient Support Systems [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 545 | 544.1 | 536 |
Accumulated impairment losses | (472.8) | (472.8) | (472.8) |
Goodwill [Roll Forward] | |||
Goodwill, net | 71.3 | 63.2 | |
Goodwill related to acquisitions | (0.5) | 7.9 | |
Currency translation effect | 1.4 | 0.2 | |
Goodwill, net | 72.2 | 71.3 | |
Front Line Care [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 1,375.6 | 1,205.5 | 1,232.2 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill [Roll Forward] | |||
Goodwill, net | 1,205.5 | 1,232.2 | |
Goodwill related to acquisitions | 164.8 | (23.7) | |
Currency translation effect | 5.3 | (3) | |
Goodwill, net | 1,375.6 | 1,205.5 | |
Surgical Solutions [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 311.8 | 307.6 | 315.1 |
Accumulated impairment losses | 0 | 0 | $ 0 |
Goodwill [Roll Forward] | |||
Goodwill, net | 307.6 | 315.1 | |
Goodwill related to acquisitions | 0 | 1.1 | |
Currency translation effect | 4.2 | (8.6) | |
Goodwill, net | $ 311.8 | $ 307.6 |
Goodwill and Indefinite-Lived46
Goodwill and Indefinite-Lived Intangible Assets (Narrative) (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 466.9 | |
Number of reportable business segments | segment | 3 | |
Indefinite-lived intangible assets | $ 466.9 | $ 466.9 |
Financing Agreements (Schedule
Financing Agreements (Schedule of Total Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Current portion of long-term debt | $ 109.8 | $ 73.2 |
Long-term debt | 2,120.4 | 1,938.4 |
Total debt | 2,309.3 | 2,148.5 |
Less Short-term borrowings | 188.9 | 210.1 |
Revolving credit facilities [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Revolving credit facilities | 90 | 235.8 |
Senior secured Term Loan A [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Long-term debt | 1,266.7 | 1,372.3 |
Senior unsecured 5.75% Notes due on September 1, 2023 [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Long-term debt | $ 419.9 | 419.1 |
Stated interest rate (percent) | 5.75% | |
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Long-term debt | $ 295.8 | 0 |
Stated interest rate (percent) | 5.00% | |
Unsecured 7.00% debentures due on February 15, 2024 [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | $ 13.6 | 13.7 |
Stated interest rate (percent) | 7.00% | |
Unsecured 6.75% debentures due on December 15, 2027 [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | $ 29.6 | 29.6 |
Stated interest rate (percent) | 6.75% | |
Securitization Program [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Securitization Program | $ 79.1 | 0 |
Other [Member] | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||
Total debt | $ 4.8 | $ 4.8 |
Financing Agreements (Narrative
Financing Agreements (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)derivative | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Feb. 28, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 10,800,000 | $ 0 | $ 10,800,000 | $ 0 | ||
Costs incurred related to amendment of facility | 6,500,000 | |||||
Capitalized debt costs | 4,500,000 | |||||
Interest Rate Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative agreements | derivative | 9 | |||||
Interest rate swap agreement, notional amount | $ 750,000,000 | |||||
Interest rate swap, fair value | 7,300,000 | |||||
Interest Rate Swap [Member] | Other assets [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swap, fair value | 8,500,000 | |||||
Interest Rate Swap [Member] | Other current liabilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swap, fair value | 1,200,000 | |||||
Securitization Program [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable securitization program | 364 days | |||||
Accounts receivable securitization program, amount | $ 110,000,000 | |||||
Securitization program outstanding amount | 0 | $ 79,100,000 | 0 | |||
Securitization Program [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 0.675% | |||||
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable securitization program, amount | $ 300,000,000 | |||||
Stated interest rate (percent) | 5.00% | |||||
Senior unsecured 5.75% Notes due on September 1, 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accounts receivable securitization program, amount | $ 425,000,000 | |||||
Stated interest rate (percent) | 5.75% | |||||
Debt maturity date | Sep. 1, 2023 | |||||
Senior secured Term Loan A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity date | Sep. 30, 2021 | |||||
Senior revolving credit facility, maximum borrowing amount | $ 1,462,500,000 | |||||
Revolving credit facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity date | Sep. 30, 2021 | |||||
Senior revolving credit facility, maximum borrowing amount | $ 700,000,000 | |||||
Revolving credit facilities | $ 235,800,000 | 90,000,000 | $ 235,800,000 | |||
Available borrowing capacity | 601,600,000 | |||||
Outstanding letters of credit | $ 8,400,000 | |||||
Senior secured credit facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate during period (less than) | 3.00% |
Financing Agreements (Schedul49
Financing Agreements (Schedule of Maturities of Long-Term Debt) (Details) - Senior secured Term Loan A [Member] $ in Millions | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 109.7 |
2,019 | 146.3 |
2,020 | 146.3 |
2,021 | 987.2 |
2,022 | $ 0 |
Financing Agreements (Schedul50
Financing Agreements (Schedule of Covenants) (Details) - Scenario, Forecast [Member] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Maximum Secured Net Leverage Ratio | 3 | 3.50 | 4 |
Minimum Interest Coverage Ratio | 4 | 3.75 | 3.50 |
Financing Agreements (Schedul51
Financing Agreements (Schedule of Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 2,172.8 | $ 1,940.8 |
Unsecured debentures [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured, fair value | 46.8 | 45.8 |
Senior secured Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Secured, fair value | 1,364.8 | 1,441 |
Senior unsecured 5.75% Notes due on September 1, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured, fair value | $ 449.3 | 454 |
Stated interest rate (percent) | 5.75% | |
Senior unsecured 5.00% Notes due on February 14, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured, fair value | $ 311.9 | $ 0 |
Stated interest rate (percent) | 5.00% |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Changes in AOCL by Component) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | $ 67.7 | $ (35.8) | |
Reclassification from | 6 | 4.3 | |
Pre-tax | 73.7 | (31.5) | |
Tax effect | (14.6) | 3.2 | $ 5.1 |
Total Other Comprehensive Income (Loss), Net of Tax | 59.1 | (28.3) | (66.7) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 1,227.2 | ||
Net activity | 59.1 | (28.3) | (66.7) |
Ending balance | 1,358.2 | 1,227.2 | |
Derivative Instruments and Hedges [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | 12.7 | (4.9) | |
Reclassification from | (0.9) | (0.1) | |
Pre-tax | 11.8 | (5) | |
Tax effect | (4.4) | 1.9 | |
Total Other Comprehensive Income (Loss), Net of Tax | 7.4 | (3.1) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (3.1) | 0 | |
Net activity | 7.4 | (3.1) | |
Ending balance | 4.3 | (3.1) | 0 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | 32.9 | (22.4) | |
Reclassification from | 1 | 0 | |
Pre-tax | 33.9 | (22.4) | |
Tax effect | 0 | 0 | |
Total Other Comprehensive Income (Loss), Net of Tax | 33.9 | (22.4) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (115.2) | (92.8) | |
Net activity | 33.9 | (22.4) | |
Ending balance | (81.3) | (115.2) | (92.8) |
Change in Pension and Postretiremen Defined Benefit Plans [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Prior to reclassification | 22.1 | (8.5) | |
Reclassification from | 5.9 | 4.4 | |
Pre-tax | 28 | (4.1) | |
Tax effect | (10.2) | 1.3 | |
Total Other Comprehensive Income (Loss), Net of Tax | 17.8 | (2.8) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (50.8) | (48) | |
Net activity | 17.8 | (2.8) | |
Ending balance | (33) | (50.8) | (48) |
AOCI Attributable to Parent [Member] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Total Other Comprehensive Income (Loss), Net of Tax | 59.1 | (28.3) | (66.7) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (169.1) | (140.8) | |
Net activity | 59.1 | (28.3) | (66.7) |
Ending balance | $ (110) | $ (169.1) | $ (140.8) |
Other Comprehensive Income (S53
Other Comprehensive Income (Schedule of Items Reclassified out of AOCL) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amount reclassified | $ (183) | $ (138.3) | $ (65.1) | ||||||||
Tax effect | 50.7 | 15.5 | 18.3 | ||||||||
Net of tax | $ (69.4) | $ (6) | $ (34.4) | $ (23.8) | $ (51.7) | $ (45.3) | $ (22.3) | $ (4.8) | (133.6) | (124.1) | $ (47.7) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments and Hedges [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amount reclassified | (0.9) | (0.1) | |||||||||
Tax effect | 0.3 | 0 | |||||||||
Net of tax | (0.6) | (0.1) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amount reclassified | 1 | 0 | |||||||||
Tax effect | 0 | 0 | |||||||||
Net of tax | 1 | 0 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in Pension and Postretirement Defined Benefit Plans [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amount reclassified | 5.9 | 4.4 | |||||||||
Tax effect | (2.2) | (1.3) | |||||||||
Net of tax | $ 3.7 | $ 3.1 |
Retirement and Postretirement54
Retirement and Postretirement Benefit Plans (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement charge | $ 0 | $ 0 | $ 9.6 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5.8 | 5 | 5.4 | |
Interest cost | 9.9 | 10.9 | 14.6 | |
Expected return on plan assets | (14.6) | (13) | (16.7) | |
Amortization of unrecognized prior service cost, net | 0.2 | 0.3 | 0.6 | |
Amortization of net loss | 6.1 | 4.5 | 5.2 | |
Net periodic benefit cost | 7.4 | 7.7 | 9.1 | |
Settlement charge | $ 9.6 | 0 | 0 | 9.6 |
Special termination benefits | 0.1 | 0 | 0 | |
Net pension expense | $ 7.5 | $ 7.7 | $ 18.7 |
Retirement and Postretirement55
Retirement and Postretirement Benefit Plans (Schedule of Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 347.1 | ||
Special termination benefits | 0.1 | $ 0 | |
Benefit obligation at end of year | 345.8 | 347.1 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 267 | ||
Fair value of plan assets at end of year | 284.4 | 267 | |
Amounts recorded in the Consolidated Balance Sheets: | |||
Accrued pension benefits, long-term | (78.1) | (99) | |
Pension Plan [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 347.1 | 315.5 | |
Service cost | 5.8 | 5 | $ 5.4 |
Interest cost | 9.9 | 10.9 | 14.6 |
Actuarial loss (gain) | (5.7) | 27.4 | |
Benefits paid | (12.5) | (11.9) | |
Exchange rate loss | 1.1 | 0.2 | |
Benefit obligation at end of year | 345.8 | 347.1 | 315.5 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 267 | 219.1 | |
Actual return on plan assets | 28.8 | 28.8 | |
Employer contributions | 1.1 | 31 | |
Benefits paid | (12.5) | (11.9) | |
Fair value of plan assets at end of year | 284.4 | 267 | $ 219.1 |
Funded status and net amounts recognized | (61.4) | (80.1) | |
Amounts recorded in the Consolidated Balance Sheets: | |||
Accrued pension benefits, current portion | (1.2) | (1.1) | |
Accrued pension benefits, long-term | (60.2) | (79) | |
Net amount recognized | $ (61.4) | $ (80.1) |
Retirement and Postretirement56
Retirement and Postretirement Benefit Plans (Narrative) (Details) $ in Millions | Sep. 08, 2015plan | Sep. 30, 2015USD ($) | Sep. 30, 2017USD ($)plan | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of retirement plans | plan | 5 | ||||
Settlement charge | $ 0 | $ 0 | $ 9.6 | ||
Estimated net actuarial loss that will be amortized over the next fiscal year | 4.5 | ||||
Estimated prior service cost that will be amortized over the next fiscal year | 0.1 | ||||
Accumulated Benefit Obligation | |||||
Accumulated benefit obligation | 325.7 | 326.3 | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||||
Defined contribution savings plans expense | $ 26.8 | 26.8 | 17.4 | ||
Welch Allyn Holdings, Inc. [Member] | |||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||
Number of retirement plans assumed in acquisition | plan | 1 | ||||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of retirement plans | plan | 1 | ||||
Lump sum payments | $ 42.3 | ||||
Settlement charge | $ 9.6 | $ 0 | 0 | $ 9.6 | |
Net actuarial gains (losses) included in Accumulated Other Comprehensive Income (Loss) | (59.9) | (85.7) | |||
Prior service (credits) costs included in Accumulated Other Comprehensive Income (Loss) | 0.6 | 0.8 | |||
Pension items in AOCI, aggregate tax effect | $ 22.8 | 32.2 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Equity securities of one entity, maximum percentage of portfolio | 10.00% | ||||
Cash Flows | |||||
Funded percentage (in excess of) | 89.00% | ||||
Employer contributions | $ 1.1 | $ 31 | |||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||
Discount rate for expense | 3.70% | 4.40% | 4.50% | ||
Discount rate for obligation | 4.40% | 3.90% | 3.70% | 4.40% | |
Postretirement Health Coverage [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of retirement plans | plan | 2 | ||||
Net actuarial gains (losses) included in Accumulated Other Comprehensive Income (Loss) | $ 7.3 | $ 5.9 | |||
Prior service (credits) costs included in Accumulated Other Comprehensive Income (Loss) | (1) | (0.5) | |||
Pension items in AOCI, aggregate tax effect | 3.1 | 2.4 | |||
Estimated net actuarial loss that will be amortized over the next fiscal year | (0.6) | ||||
Estimated prior service cost that will be amortized over the next fiscal year | (0.2) | ||||
Cash Flows | |||||
Employer contributions | $ 0.9 | $ 1.5 | |||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||
Discount rate for expense | 3.00% | 3.50% | 3.70% | ||
Discount rate for obligation | 3.50% | 3.30% | 3.50% | ||
Ultimate health care cost trend rate | 4.50% | ||||
Effect of one-percentage-point increase/decrease on service and interest costs | $ 0.1 | ||||
Effect of one-percentage-point increase on service and benefit obligation | 1.3 | ||||
Effect of one-percentage-point decrease on service and benefit obligation | 1.2 | ||||
Expected employer contributions required in next year | 1.6 | ||||
Defined benefit plan estimated future employer contributions in next fiscal, per year, thereafter | $ 2 | ||||
Postretirement Health Coverage [Member] | Minimum [Member] | |||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||
Discount rate for obligation | 2.90% | ||||
Health care cost trend rate | 6.90% | ||||
Postretirement Health Coverage [Member] | Maximum [Member] | |||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||
Discount rate for obligation | 3.00% | ||||
Health care cost trend rate | 8.70% | ||||
Germany and France [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of retirement plans | plan | 3 | ||||
Executives [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of retirement plans | plan | 1 |
Retirement and Postretirement57
Retirement and Postretirement Benefit Plans (Schedule of Accumulated Benefit Obligation) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | $ 345.8 | $ 347.1 |
ABO | 325.7 | 326.3 |
Plan Assets | 284.4 | 267 |
Master Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 319.8 | 319.6 |
ABO | 301.5 | 300.7 |
Plan Assets | 284.1 | 266.8 |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 20.8 | 22.2 |
ABO | 19 | 20.3 |
Plan Assets | 0.3 | 0.2 |
Supplemental Executive Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 5.2 | 5.3 |
ABO | 5.2 | 5.3 |
Plan Assets | $ 0 | $ 0 |
Retirement and Postretirement58
Retirement and Postretirement Benefit Plans (Schedule of Actuarial Assumptions) (Details) - Pension Plan [Member] | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Weighted average assumptions to determine benefit obligations at the measurement date: | |||
Discount rate for obligation | 3.90% | 3.70% | 4.40% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Weighted average assumptions to determine benefit cost for the year: | |||
Discount rate for expense | 3.70% | 4.40% | 4.50% |
Expected rate of return on plan assets | 5.80% | 5.80% | 6.80% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Retirement and Postretirement59
Retirement and Postretirement Benefit Plans (Schedule of Allocation of Plan Assets) (Details) - Pension Plan [Member] | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (minimum) | 37.00% | 39.00% |
Target Allocation (maximum) | 45.00% | 49.00% |
Actual Allocation | 42.00% | 43.00% |
Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation (minimum) | 55.00% | 51.00% |
Target Allocation (maximum) | 63.00% | 61.00% |
Actual Allocation | 58.00% | 57.00% |
Retirement and Postretirement60
Retirement and Postretirement Benefit Plans (Schedule of Fair Value Measurements of Plan Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | $ 284.4 | $ 267 | |
Pension Plan [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 284.4 | 267 | $ 219.1 |
Pension Plan [Member] | Cash [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 7.2 | 3.7 | |
Pension Plan [Member] | U.S. companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 58.6 | 59.3 | |
Pension Plan [Member] | International companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 59.4 | 56.4 | |
Pension Plan [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 159.2 | 147.6 | |
Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 7.2 | 3.7 | |
Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | Cash [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 7.2 | 3.7 | |
Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | U.S. companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | International companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | Cash [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | U.S. companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | International companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | Cash [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | U.S. companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | International companies [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | Fixed income securities [Member] | |||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Techniques and Inputs [Abstract] | |||
Plan Assets | $ 0 | $ 0 |
Retirement and Postretirement61
Retirement and Postretirement Benefit Plans (Schedule of Estimated Future Benefit Payments) (Details) - Pension Plan [Member] $ in Millions | Sep. 30, 2017USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,018 | $ 13.7 |
2,019 | 13.8 |
2,020 | 14.6 |
2,021 | 15.4 |
2,022 | 16 |
2023-2027 | $ 91.4 |
Retirement and Postretirement62
Retirement and Postretirement Benefit Plans (Schedule of Postretirement Health Care Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of year | $ 347.1 | |
Special termination benefits | 0.1 | $ 0 |
Benefit obligation at end of year | 345.8 | 347.1 |
Amounts recorded in the Consolidated Balance Sheets: | ||
Accrued benefits obligation, long-term | 78.1 | 99 |
Postretirement Health Coverage [Member] | ||
Change in benefit obligation: | ||
Benefit obligation at beginning of year | 21.6 | 25.1 |
Service cost | 0.4 | 0.3 |
Interest cost | 0.5 | 0.8 |
Plan amendments | (0.7) | 0 |
Actuarial gain | (1.8) | (3.7) |
Benefits paid | (0.9) | (1.5) |
Retiree contributions | 0.3 | 0.6 |
Benefit obligation at end of year | 19.4 | 21.6 |
Amounts recorded in the Consolidated Balance Sheets: | ||
Accrued benefits obligation, current portion | 1.5 | 1.6 |
Accrued benefits obligation, long-term | 17.9 | 20 |
Net amount recognized | $ 19.4 | $ 21.6 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - USD ($) | Nov. 06, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share repurchase authorization | $ 190,000,000 | |||||
Number of shares authorized (in shares) | 15,300,000 | 15,300,000 | ||||
Shares available for future grants (in shares) | 3,000,000 | 3,000,000 | ||||
Treasury stock (in shares) | 22,600,000 | 22,643,840 | 22,752,381 | 22,600,000 | ||
Recognition of excess tax benefits against income tax expense | $ 8,900,000 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum contractual term | 10 years | |||||
Total intrinsic value of options exercised | $ 19,400,000 | $ 4,000,000 | $ 6,300,000 | |||
Unrecognized compensation expense | $ 5,200,000 | $ 5,200,000 | ||||
Unrecognized compensation expense, weighted-average recognition period | 2 years 1 month 6 days | |||||
Employee Stock Option [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Employee Stock Option [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 12,300,000 | 12,300,000 | ||||
Unrecognized compensation expense, weighted-average recognition period | 2 years | |||||
Total vest date fair value of shares that vested | $ 14,500,000 | 14,400,000 | 4,300,000 | |||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense | $ 14,000,000 | 14,000,000 | ||||
Total vest date fair value of shares that vested | $ 14,200,000 | $ 10,200,000 | $ 20,500,000 | |||
Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in share repurchase authorization | $ 150,000,000 | |||||
Remaining availability | $ 165,000,000 | |||||
Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares repurchased (in shares) | 800,000 | 0 | 1,200,000 | |||
Value of shares repurchased | $ 50,000,000 | $ 54,800,000 | $ 175,300,000 |
Common Stock (Schedule of Stock
Common Stock (Schedule of Stock-Based Compensation Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Class of Stock Disclosures [Abstract] | |||
Total stock-based compensation cost (pre-tax) | $ 23 | $ 23.1 | $ 25 |
Total income tax benefit | (16.5) | (7.9) | (7.5) |
Total stock-based compensation cost, net of tax | $ 6.5 | $ 15.2 | $ 17.5 |
Common Stock (Schedule of Weigh
Common Stock (Schedule of Weighted Average Fair Value per Share of Stock Options and Related Valuation Assumptions) (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |||
Weighted average fair value per share (usd per share) | $ 15.05 | $ 14.07 | $ 12.83 |
Valuation assumptions: | |||
Risk-free interest rate | 1.70% | 1.60% | 1.60% |
Expected dividend yield | 1.30% | 1.20% | 1.40% |
Expected volatility | 33.20% | 33.10% | 35.00% |
Weighted average expected life (years) | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
Common Stock (Schedule of Trans
Common Stock (Schedule of Transactions under Stock Option Plans) (Details) - Employee Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Weighted Average Number of Shares | |
Balance Outstanding (in shares) | shares | 2,006 |
Granted (in shares) | shares | 353 |
Exercised (in shares) | shares | (556) |
Cancelled/Forfeited (in shares) | shares | (98) |
Balance Outstanding (in shares) | shares | 1,705 |
Exercisable (in shares) | shares | 981 |
Options Expected to Vest (in shares) | shares | 623 |
Weighted Average Exercise Price | |
Balance Outstanding (usd per share) | $ 37.31 |
Granted (usd per share) | 53.81 |
Exercised (usd per share) | 31.94 |
Cancelled/Forfeited (usd per share) | 49.28 |
Balance Outstanding (usd per share) | 41.79 |
Exercisable at September 30, 2017 (usd per share) | 35.29 |
Options Expected to Vest (usd per share) | $ 50.36 |
Weighted Average Remaining Contractual Term | |
Balance Outstanding | 6 years 2 months 12 days |
Exercisable | 4 years 7 months 6 days |
Options Expected to Vest | 8 years 2 months 12 days |
Aggregate Intrinsic Value | |
Balance Outstanding (usd per share) | $ | $ 54.9 |
Exercisable (usd per share) | $ | 38 |
Options Expected to Vest (usd per share) | $ | $ 14.7 |
Closing stock price (usd per share) | $ 74 |
Common Stock (Schedule of Tra67
Common Stock (Schedule of Transactions for Nonvested RSUs) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Share Units | |
Nonvested (in shares) | shares | 556 |
Granted (in shares) | shares | 255 |
Vested (in shares) | shares | (241) |
Forfeited (in shares) | shares | (49) |
Nonvested (in shares) | shares | 521 |
Weighted Average Grant Date Fair Value | |
Nonvested (usd per share) | $ / shares | $ 46.32 |
Granted (usd per share) | $ / shares | 57.47 |
Vested (usd per share) | $ / shares | 45.86 |
Forfeited (usd per share) | $ / shares | 49.14 |
Nonvested (usd per share) | $ / shares | $ 51.39 |
Common Stock (Schedule of Wei68
Common Stock (Schedule of Weighted Average Fair Value per Share PSUs and Related Valuation Assumptions) (Details) - Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Performance Share Units | |||
Weighted average fair value per share (usd per share) | $ 55.95 | $ 50.51 | $ 47.82 |
Valuation assumptions: | |||
Risk-free interest rate | 1.20% | 1.10% | 0.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 22.60% | 22.30% | 23.50% |
Common Stock (Schedule of Tra69
Common Stock (Schedule of Transactions for Nonvested PSUs) (Details) - Performance Shares [Member] shares in Thousands | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Share Units | |
Nonvested (in shares) | shares | 455 |
Granted (in shares) | shares | 143 |
Vested (in shares) | shares | (196) |
Forfeited (in shares) | shares | (57) |
Nonvested (in shares) | shares | 345 |
Weighted Average Grant Date Fair Value | |
Nonvested (usd per share) | $ / shares | $ 49.50 |
Granted (usd per share) | $ / shares | 55.95 |
Vested (usd per share) | $ / shares | 48.46 |
Forfeited (usd per share) | $ / shares | 49.92 |
Nonvested (usd per share) | $ / shares | $ 53.40 |
Special Charges (Narrative) (De
Special Charges (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015site | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | $ 37.4 | $ 39.9 | $ 41.2 | ||||||
Impairment charges relating to non-cash write-downs of long-lived assets and working capital | $ 25.4 | ||||||||
Transaction related costs for businesses to be disposed of | 3 | ||||||||
Restructuring charges | 9.7 | ||||||||
Proceeds from legal settlement | $ 15.1 | ||||||||
Number of site closures | site | 5 | ||||||||
Cash proceeds from sale of property | $ 6.1 | ||||||||
Gain recorded from sale of property | $ 5.2 | ||||||||
Settlement charge | 0 | 0 | 9.6 | ||||||
Integration and Business Realignment [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | 7.6 | 19 | |||||||
Welch Allyn Integration [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | $ 14.4 | ||||||||
Employee Severance [Member] | Integration and Business Realignment [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | 3.5 | 14 | |||||||
Employee Severance [Member] | Site Consolidation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | 5.1 | 7.2 | 2.7 | ||||||
Facility Closing [Member] | Site Consolidation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | 19.7 | 15.9 | |||||||
Aggregate special charges recognized | 34.9 | 34.9 | |||||||
Other Restructuring [Member] | Site Consolidation [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | 1.8 | ||||||||
Other Restructuring [Member] | Global Restructuring Program [Member] | Europe [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special charge | 0.9 | $ 5.1 | $ 12.7 | ||||||
Aggregate special charges recognized | $ 43.6 | $ 43.6 | |||||||
Architectural Products Business [Member] | Employee Severance [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring charges | $ 1.1 |
Special Charges (Schedule of Re
Special Charges (Schedule of Restructuring Activity) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance | $ 14.7 |
Expenses | 9.7 |
Cash Payments | (14.3) |
Reversals | (1.1) |
Balance | $ 9 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income before Income Taxes and the Consolidated Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income before income taxes: | |||
Domestic | $ 129 | $ 92.2 | $ 49.2 |
Foreign | 54 | 46.1 | 15.9 |
Total | 183 | 138.3 | 65.1 |
Current provision | |||
Federal | 61.6 | 4.7 | 35.3 |
State | 8.6 | 2.2 | 3.6 |
Foreign | 13.3 | 9.1 | 1.7 |
Total current provision | 83.5 | 16 | 40.6 |
Deferred provision: | |||
Federal | (34.9) | 21.8 | (18.1) |
State | 1.3 | 1.2 | (1.3) |
Foreign | 0.8 | (23.5) | (2.9) |
Total deferred provision | (32.8) | (0.5) | (22.3) |
Income tax expense | $ 50.7 | $ 15.5 | $ 18.3 |
Income Taxes (Schedule of Diffe
Income Taxes (Schedule of Differences between Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal income tax | $ 64.1 | $ 48.4 | $ 22.8 |
State income tax | 4.1 | 2.9 | 1.6 |
Foreign income tax | (35.6) | (14) | (10.2) |
Application of federal research tax credits | (3.6) | (5.6) | (2.2) |
Application of foreign tax credits | (15) | (0.5) | (0.2) |
Adjustment of estimated income tax accruals | (0.8) | 0.3 | (1.6) |
Valuation of tax attributes | 36.3 | (14.4) | 4 |
Foreign Inclusions | 11.5 | 0.9 | 0.3 |
Domestic manufacturer's deduction | (4.4) | (1.8) | (1.5) |
Excess tax benefits from share based awards | (8.9) | 0 | 0 |
Capitalized transaction costs | 0 | 0 | 2.5 |
Other, net | 3 | (0.7) | 2.8 |
Income tax expense | $ 50.7 | $ 15.5 | $ 18.3 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal income tax | 35.00% | 35.00% | 35.00% |
State income tax | 2.20% | 2.10% | 2.40% |
Foreign income tax | (19.40%) | (10.10%) | (15.70%) |
Application of federal research tax credits | (2.00%) | (4.00%) | (3.40%) |
Application of foreign tax credits | (8.20%) | (0.40%) | (0.30%) |
Adjustment of estimated income tax accruals | (0.40%) | 0.20% | (2.40%) |
Valuation of tax attributes | 19.80% | (10.40%) | 6.20% |
Foreign Inclusions | 6.30% | 0.60% | 0.50% |
Domestic manufacturer's deduction | (2.40%) | (1.30%) | (2.30%) |
Excess tax benefits from share based awards | (4.90%) | (0.00%) | (0.00%) |
Capitalized transaction costs | 0.00% | 0.00% | 3.80% |
Other, net | 1.70% | (0.50%) | 4.30% |
Income tax expense | 27.70% | 11.20% | 28.10% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Taxes) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Employee benefit accruals | $ 64.5 | $ 76.5 |
Inventory | 16.6 | 13.9 |
Net operating loss carryforwards | 70.7 | 47.1 |
Tax credit carryforwards | 23.3 | 14.2 |
Other, net | 41.4 | 46.4 |
Deferred tax assets, gross | 216.5 | 198.1 |
Less: Valuation allowance | (58.2) | (26.9) |
Total deferred tax assets | 158.3 | 171.2 |
Deferred tax liabilities: | ||
Depreciation | (28.6) | (41.6) |
Amortization | (349.7) | (371.2) |
Other, net | (5.3) | (3.1) |
Total deferred tax liabilities | (383.6) | (415.9) |
Deferred tax asset (liability) - net | $ (225.3) | $ (244.7) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosures [Line Items] | ||||
Deferred tax assets related to operating loss carryforwards in foreign jurisdictions | $ 68.6 | |||
Deferred tax assets related to domestic federal net operating loss carryforwards | 1.8 | |||
Deferred tax assets related to state net operating loss carryforwards | 0.3 | |||
Deferred tax assets related to state credits | 15 | |||
Deferred tax assets related to credits in foreign jurisdictions | 8.3 | |||
Capital loss carryforwards | 3.8 | |||
Valuation allowances on deferred tax assets | 58.2 | $ 26.9 | ||
Impact of tax holidays | $ 3.6 | $ 4.1 | $ 4.3 | |
Benefit of tax holidays on net income per share (diluted) (usd per share) | $ 0.05 | $ 0.06 | $ 0.07 | |
Undistributed earnings in our non-U.S. subsidiaries | $ 335.9 | |||
Total gross unrecognized tax benefits | 4.5 | $ 5.1 | $ 5.8 | $ 4.1 |
Unrecognized tax benefits that would impact effective tax rate, if recognized | 3.3 | 3.6 | 3.3 | |
Accrued interest and penalties related to unrecognized tax benefits | 2.6 | 3 | 3 | |
Income tax benefit for interest and penalties | 0.4 | $ 0 | $ 0.2 | |
Minimum [Member] | ||||
Income Tax Disclosures [Line Items] | ||||
Amount of reasonably possible decrease | 0.5 | |||
Maximum [Member] | ||||
Income Tax Disclosures [Line Items] | ||||
Amount of reasonably possible decrease | $ 1 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at October 1 | $ 5.1 | $ 5.8 | $ 4.1 |
Increases in tax position of prior years | 0.1 | 0.8 | 0.4 |
Decreases in tax position of prior years | 0 | (0.1) | (1.3) |
Settlements with taxing authorities | 0 | (0.3) | (1.2) |
Lapse of applicable statute of limitations | (0.8) | (0.5) | (1.3) |
Change in positions due to acquisitions | 0 | (0.6) | 5.5 |
Foreign currency adjustments | 0.1 | 0 | (0.4) |
Total change | (0.6) | (0.7) | 1.7 |
Balance at September 30 | $ 4.5 | $ 5.1 | $ 5.8 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to common shareholders | $ 69.4 | $ 6 | $ 34.4 | $ 23.8 | $ 51.7 | $ 45.3 | $ 22.3 | $ 4.8 | $ 133.6 | $ 124.1 | $ 47.7 |
Average shares outstanding - Basic (in shares) | 65,599 | 65,333 | 57,249 | ||||||||
Add potential effect of exercise of stock options and other unvested equity awards (in shares) | 1,626 | 1,263 | 1,287 | ||||||||
Average shares outstanding - Diluted (in shares) | 67,225 | 66,596 | 58,536 | ||||||||
Basic net income attributable to common shareholders per common share | $ 1.06 | $ 0.09 | $ 0.52 | $ 0.36 | $ 0.79 | $ 0.69 | $ 0.34 | $ 0.07 | $ 2.04 | $ 1.90 | $ 0.83 |
Diluted net income attributable to common shareholders per common share | $ 1.03 | $ 0.09 | $ 0.51 | $ 0.36 | $ 0.77 | $ 0.68 | $ 0.33 | $ 0.07 | $ 1.99 | $ 1.86 | $ 0.82 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||||||||||||
Revenue | $ 738.3 | $ 689.1 | $ 678.9 | $ 637.4 | $ 706 | $ 655.4 | $ 632.6 | $ 661.2 | $ 2,743.7 | $ 2,655.2 | $ 1,988.2 | |
Divisional income: | ||||||||||||
Divisional income | 273.4 | 230.3 | 83.1 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 273.4 | 230.3 | 83.1 | |||||||||
Special charge | 37.4 | 39.9 | 41.2 | |||||||||
Interest expense | (88.9) | (90.4) | (18.4) | |||||||||
Loss on extinguishment of debt | $ (10.8) | 0 | (10.8) | 0 | ||||||||
Investment income and other, net | (1.5) | 9.2 | 0.4 | |||||||||
Income before income taxes | 183 | 138.3 | 65.1 | |||||||||
Operating Segments [Member] | ||||||||||||
Revenue: | ||||||||||||
Revenue | 2,743.7 | 2,655.2 | 1,988.2 | |||||||||
Operating Segments [Member] | Patient Support Systems [Member] | ||||||||||||
Revenue: | ||||||||||||
Revenue | 1,423.9 | 1,437.2 | 1,426.6 | |||||||||
Divisional income: | ||||||||||||
Divisional income | 249.6 | 245.2 | 206.5 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 249.6 | 245.2 | 206.5 | |||||||||
Operating Segments [Member] | Front Line Care [Member] | ||||||||||||
Revenue: | ||||||||||||
Revenue | 885.3 | 809.7 | 139 | |||||||||
Divisional income: | ||||||||||||
Divisional income | 231.8 | 202.1 | 41.5 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 231.8 | 202.1 | 41.5 | |||||||||
Operating Segments [Member] | Surgical Solutions [Member] | ||||||||||||
Revenue: | ||||||||||||
Revenue | 434.5 | 408.3 | 422.6 | |||||||||
Divisional income: | ||||||||||||
Divisional income | 42.5 | 46.2 | 56 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | 42.5 | 46.2 | 56 | |||||||||
Corporate and Other [Member] | ||||||||||||
Divisional income: | ||||||||||||
Divisional income | 213.1 | 223.3 | 179.7 | |||||||||
Other operating costs: | ||||||||||||
Other operating costs | $ 213.1 | $ 223.3 | $ 179.7 |
Segment Reporting (Schedule o79
Segment Reporting (Schedule of Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Revenue | $ 738.3 | $ 689.1 | $ 678.9 | $ 637.4 | $ 706 | $ 655.4 | $ 632.6 | $ 661.2 | $ 2,743.7 | $ 2,655.2 | $ 1,988.2 |
Long-lived assets | 355.4 | 350 | 355.4 | 350 | 378.4 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Revenue | 1,895.2 | 1,829.4 | 1,273 | ||||||||
Long-lived assets | 243.9 | 234.2 | 243.9 | 234.2 | 263.9 | ||||||
Foreign [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Revenue | 848.5 | 825.8 | 715.2 | ||||||||
Long-lived assets | $ 111.5 | $ 115.8 | $ 111.5 | $ 115.8 | $ 114.5 |
Quarterly Financial Informati80
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Revenue | $ 738.3 | $ 689.1 | $ 678.9 | $ 637.4 | $ 706 | $ 655.4 | $ 632.6 | $ 661.2 | $ 2,743.7 | $ 2,655.2 | $ 1,988.2 |
Gross Profit | 362.5 | 331.1 | 324.4 | 302.6 | 346.7 | 315.4 | 304.2 | 290.7 | 1,320.6 | 1,257 | 880.3 |
Net Income Attributable to Common Shareholders | $ 69.4 | $ 6 | $ 34.4 | $ 23.8 | $ 51.7 | $ 45.3 | $ 22.3 | $ 4.8 | $ 133.6 | $ 124.1 | $ 47.7 |
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) | $ 1.06 | $ 0.09 | $ 0.52 | $ 0.36 | $ 0.79 | $ 0.69 | $ 0.34 | $ 0.07 | $ 2.04 | $ 1.90 | $ 0.83 |
Net Income Attributable to Common Shareholders per Common Share - Diluted (usd per share) | $ 1.03 | $ 0.09 | $ 0.51 | $ 0.36 | $ 0.77 | $ 0.68 | $ 0.33 | $ 0.07 | $ 1.99 | $ 1.86 | $ 0.82 |
Commitments and Contingencies81
Commitments and Contingencies (Lease Commitments and Long-Term Agreement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Leases, Operating [Abstract] | |||
Rent expense | $ 30.5 | $ 31.7 | $ 25.2 |
Minimum annual rental commitments | 105.1 | ||
2,018 | 31.7 | ||
2,019 | 23.4 | ||
2,020 | 15.7 | ||
2,021 | 11.9 | ||
2,022 | 8.8 | ||
2023 and beyond | $ 13.6 |
Commitments and Contingencies82
Commitments and Contingencies (Self Insurance and Legal Proceedings) (Details) - Uninsured Risk [Member] | Sep. 30, 2017USD ($) |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Deductibles and self-insured retentions | $ 25,000 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Deductibles and self-insured retentions | $ 1,000,000 |
Valuation and Qualifying Acco83
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for possible losses and sales returns - accounts receivable [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | $ 26.8 | $ 26 | $ 31.4 |
CHARGED TO COSTS AND EXPENSES | 4.3 | 2.1 | 1.8 |
CHARGED TO OTHER ACCOUNTS | 2 | 2.2 | 0.1 |
DEDUCTIONS NET OF RECOVERIES | (8) | (3.5) | (7.3) |
BALANCE AT END OF PERIOD | 25.1 | 26.8 | 26 |
Valuation allowance against deferred tax assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | 26.9 | 40.7 | 28.3 |
CHARGED TO COSTS AND EXPENSES | 30.8 | (14.9) | 4 |
CHARGED TO OTHER ACCOUNTS | 0 | 0 | 11.1 |
DEDUCTIONS NET OF RECOVERIES | 0.5 | 1.1 | (2.7) |
BALANCE AT END OF PERIOD | $ 58.2 | $ 26.9 | $ 40.7 |