Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Jul. 29, 2020 | |
Document And Entity Information Abstract | ||
Document Type | 10-Q | |
Title of 12(b) Security | Common Stock, without par value | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-6651 | |
Entity Registrant Name | HILL-ROM HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1160484 | |
Entity Address, State or Province | IL | |
Entity Address, City or Town | Chicago | |
Entity Address, Postal Zip Code | 60601 | |
Trading Symbol | HRC | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Entity Central Index Key | 0000047518 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,362,046 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Information [Line Items] | ||
Entity Voluntary Filers | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Product sales and service revenue | $ 652,500,000 | $ 614,300,000 |
Rental revenue | 88,600,000 | 70,700,000 |
Revenues | 741,100,000 | 685,000,000 |
Total cost of net revenue (excludes acquisition-related intangible asset amortization) | 324,200,000 | 306,300,000 |
Rental expenses | 37,700,000 | 37,000,000 |
Cost of Revenue | 361,900,000 | 343,300,000 |
Research and development expenses | 34,800,000 | 31,500,000 |
Selling and administrative expenses | 209,000,000 | 196,800,000 |
Amortization of Intangible Assets | 25,900,000 | 26,700,000 |
Special charges | 27,100,000 | 7,800,000 |
Operating Profit | 82,400,000 | 78,900,000 |
Interest expense | (17,800,000) | (19,400,000) |
Gain (Loss) on Extinguishment of Debt | 0 | (15,600,000) |
Investment income (expense) and other, net | 7,000,000 | (1,300,000) |
Income Before Income Taxes | 71,600,000 | 42,600,000 |
Income Tax Expense (Benefit) | 12,800,000 | 2,800,000 |
Net Income | $ 58,800,000 | $ 39,800,000 |
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) | $ 0.88 | $ 0.60 |
Earnings Per Share, Diluted | $ 0.88 | $ 0.59 |
Average Common Shares Outstanding - Basic (thousands) (Note 10) (in shares) | 66,497 | 66,792 |
Average Common Shares Outstanding - Diluted (thousands) (Note 10) (in shares) | 66,925 | 67,329 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 58.8 | $ 39.8 |
Other Comprehensive (Loss) Income, net of tax (Note 7): | ||
Derivative instruments designated as hedges | (4.9) | (2.6) |
Foreign currency translation adjustment | 41.3 | 23.1 |
Change in pension and postretirement defined benefit plans | 0.5 | 0.7 |
Other Comprehensive Income (Loss), Net of Tax, Total | 36.9 | 21.2 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 95.7 | $ 61 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 294,600,000 | $ 296,500,000 |
Trade accounts receivable, net of allowances of $27.7 and $25.9 as of December 31, 2020 and September 30, 2020 | 598,000,000 | 594,900,000 |
Inventory, Net | 335,900,000 | 352,000,000 |
Other current assets | 111,500,000 | 121,500,000 |
Total current assets | 1,340,000,000 | 1,364,900,000 |
Property, plant and equipment | 878,100,000 | 858,200,000 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (569,600,000) | (552,100,000) |
Property, Plant and Equipment, Net | 308,500,000 | 306,100,000 |
Goodwill | 1,847,900,000 | 1,835,500,000 |
Other intangible assets and software, net | 958,600,000 | 976,700,000 |
Deferred Income Tax Assets, Net | 34,700,000 | 32,900,000 |
Other assets | 153,800,000 | 155,000,000 |
Assets | 4,643,500,000 | 4,671,100,000 |
Current Liabilities | ||
Trade accounts payable | 202,900,000 | 236,500,000 |
Short-term borrowings | 222,300,000 | 222,300,000 |
Accrued compensation | 97,600,000 | 144,900,000 |
Accrued product warranties | 30,000,000 | 30,800,000 |
Accrued rebates | 54,400,000 | 44,800,000 |
Deferred Revenue | 112,300,000 | 110,100,000 |
Other current liabilities | 180,700,000 | 162,800,000 |
Total current liabilities | 900,200,000 | 952,200,000 |
Long-term debt | 1,643,800,000 | 1,655,700,000 |
Accrued pension and postretirement benefits | 94,700,000 | 89,300,000 |
Deferred Income Tax Liabilities, Net | 108,700,000 | 113,000,000 |
Other long-term liabilities | 133,000,000 | 134,800,000 |
Total Liabilities | 2,880,400,000 | 2,945,000,000 |
SHAREHOLDERS' EQUITY | ||
Common Stock, Value, Issued | 4,400,000 | 4,400,000 |
Additional paid-in capital | 668,500,000 | 667,000,000 |
Retained earnings | 2,174,100,000 | 2,132,200,000 |
Accumulated other comprehensive income (loss) | (143,300,000) | (180,200,000) |
Treasury stock, common shares at cost: 22,103,626 as of December 31, 2020 and 21,816,802 as of September 30, 2020 | (940,600,000) | (897,300,000) |
Total Shareholders’ Equity | 1,763,100,000 | 1,726,100,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,763,100,000 | 1,726,100,000 |
Total Liabilities and Shareholders' Equity | 4,643,500,000 | 4,671,100,000 |
Allowance for possible losses and discounts on trade receivables | $ 27.7 | $ 25.9 |
Shares authorized | 1,000,000 | |
Common Stock, Shares Authorized | 199,000,000 | |
Common Stock, Shares, Issued | 88,457,634 | |
Common Stock, Shares, Outstanding | 66,354,008 | 66,640,832 |
Treasury Stock, Common, Shares | 22,103,626 | 21,816,802 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | ||
Net Income (Loss) Attributable to Parent | $ 58.8 | $ 39.8 |
Adjustments to reconcile net income to net cash, cash equivalents and restricted cash provided by operating activities: | ||
Depreciation and Amortization of PP&E and Software | 18.4 | 16.6 |
Acquisition-related intangible asset amortization | 25.9 | 26.7 |
Amortization of Debt Issuance Costs and Discounts | 1.1 | 1 |
Gain (Loss) on Extinguishment of Debt | 0 | 15.6 |
Benefit for deferred income taxes | (3.3) | (3.9) |
Loss on disposal of property, equipment, intangible assets and impairments | 0.1 | 1.1 |
Stock compensation | 11 | 8.3 |
Other Operating Activities, Cash Flow Statement | 4.5 | (5.1) |
Change in working capital excluding cash, current debt, acquisitions and dispositions: | ||
Trade accounts receivable | (6.2) | (74.8) |
Inventories | (15.4) | 9.8 |
Other current assets | (9.7) | 15.8 |
Trade accounts payable | (35.7) | (9) |
Accrued expenses and other liabilities | (16.1) | (60.2) |
Increase (Decrease) in Accounts Receivable | 6.2 | 74.8 |
Increase (Decrease) in Inventories | 15.4 | (9.8) |
Increase (Decrease) in Other Operating Assets | 9.7 | (15.8) |
Increase (Decrease) in Accounts Payable, Trade | (35.7) | (9) |
Accrued expenses and other liabilities | (16.1) | (60.2) |
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net | 4.2 | (3.1) |
Net Cash Provided by (Used in) Operating Activities, Total | 100.2 | 77 |
Investing Activities | ||
Purchases of property, plant, equipment and software | (29.3) | (24.3) |
Proceeds on sale of property and equipment | 0.3 | 0.5 |
Net Cash Provided by (Used in) Investing Activities | (29) | (23.8) |
Financing Activities | ||
Repayments of Long-term Debt | (12.5) | (12.6) |
Borrowings on Revolving Credit Facility | 0 | (50) |
Payments on Revolving Credit Facility | 0 | (55) |
Payments on Securitization Facility | 0 | (7.5) |
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | 0 | 11.4 |
Payments on Note Securitization Facility | 0 | (12.6) |
Payment for Debt Extinguishment or Debt Prepayment Cost | 0 | (437.2) |
Cash dividends | (14.6) | (14.1) |
Proceeds on exercise of stock options | 0.5 | 3.7 |
Payment, Tax Withholding, Share-based Payment Arrangement | (8.3) | (15.1) |
Payments for Repurchase of Common Stock | (47.4) | 0 |
Proceeds from (Payments for) Other Financing Activities | 2.3 | 1.7 |
Net Cash Provided by (Used in) Financing Activities, Total | (80) | (487.3) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 6.9 | 4.7 |
Net Cash Flows | (1.9) | (429.4) |
Cash, Cash Equivalents and Restricted Cash: | ||
At beginning of period | 296.5 | 633.8 |
At end of period | $ 294.6 | $ 204.4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (unaudited) Statement - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] |
Common Stock, Shares, Outstanding, Beginning Balance at Sep. 30, 2019 | 88,457,634 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Sep. 30, 2019 | $ 1,573,300,000 | $ 4,400,000 | $ 637,400,000 | $ 1,967,400,000 | $ (182,500,000) | $ (853,400,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
New Accounting Standard Adjustment | Accounting Standards Update 2016-13 [Member] | 800,000 | |||||
Net Income (Loss) Attributable to Parent | 39,800,000 | 39,800,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | 21,200,000 | 21,200,000 | ||||
Dividends | (14,100,000) | (14,100,000) | ||||
Payment, Tax Withholding, Share-based Payment Arrangement | (15,100,000) | (15,100,000) | ||||
Payments for Repurchase of Common Stock | 0 | |||||
Share-based Payment Arrangement, Increase for Cost Recognition | 8,300,000 | 8,300,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | (3,700,000) | (1,100,000) | (2,600,000) | |||
Stock Issued During Period, Value | 0 | (15,400,000) | 15,400,000 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 1,900,000 | 1,300,000 | 600,000 | |||
Other Comprehensive Income (Loss), Tax | (400,000) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.21 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2019 | $ 1,619,000,000 | $ 4,400,000 | 632,700,000 | 1,993,100,000 | (161,300,000) | (849,900,000) |
Common Stock, Shares, Outstanding, Beginning Balance at Sep. 30, 2020 | 66,640,832 | 88,457,634 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Sep. 30, 2020 | $ 1,726,100,000 | $ 4,400,000 | 667,000,000 | 2,132,200,000 | (180,200,000) | (897,300,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
New Accounting Standard Adjustment | Accounting Standards Update 2016-13 [Member] | (2,200,000) | (2,200,000) | ||||
Net Income (Loss) Attributable to Parent | 58,800,000 | 58,800,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | 36,900,000 | 36,900,000 | ||||
Dividends | (14,600,000) | 100,000 | (14,700,000) | |||
Payment, Tax Withholding, Share-based Payment Arrangement | (8,300,000) | (8,300,000) | ||||
Payments for Repurchase of Common Stock | (47,400,000) | (47,400,000) | ||||
Share-based Payment Arrangement, Increase for Cost Recognition | 10,700,000 | 10,700,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | (500,000) | (200,000) | (300,000) | |||
Stock Issued During Period, Value | 0 | (11,000,000) | 11,000,000 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 2,600,000 | 1,500,000 | 1,100,000 | |||
Other Comprehensive Income (Loss), Tax | (1,300,000) | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.22 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2020 | $ 1,763,100,000 | $ 4,400,000 | $ 668,500,000 | $ 2,174,100,000 | $ (143,300,000) | $ (940,600,000) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Hill-Rom Holdings, Inc. (the “Company,” “Hillrom,” “we,” “us,” or “our”) was incorporated on August 7, 1969, in the State of Indiana and is headquartered in Chicago, Illinois. We are a global medical technology leader whose approximately 10,000 employees have a single purpose: enhancing outcomes for patients and their caregivers by Advancing Connected Care™. Around the world, our innovations touch over 7 million patients each day. Our products and services help enable earlier diagnosis and treatment, optimize surgical efficiency and accelerate patient recovery while simplifying clinical communication and shifting care closer to home. We make these outcomes possible through digital and connected care solutions and collaboration tools, including smart bed systems, patient monitoring and diagnostic technologies, respiratory health devices, advanced equipment for the surgical space and more, delivering actionable, real-time insights at the point of care. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited Condensed Consolidated Financial Statements and related notes have been prepared in accordance with the rules and regulations of the SEC for interim unaudited Condensed Consolidated Financial Statements. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete Condensed Consolidated Financial Statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the results of the interim periods presented. Quarterly results are not necessarily indicative of annual results. The unaudited Condensed Consolidated Financial Statements appearing in this Quarterly Report on Form 10-Q should be read in conjunction with the audited Condensed Consolidated Financial Statements and notes thereto included in Hillrom’s fiscal 2020 Form 10-K as filed with the SEC. The Condensed Consolidated Financial Statements include the accounts of Hillrom and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Company makes a number of significant estimates, assumptions, and judgments in the preparation of its financial statements. Additionally, the Company measures and classifies fair value measurements in accordance with the level hierarchy in conformity with GAAP. As of December 31, 2020, the Company's significant accounting policies and estimates and valuation techniques used to measure fair value have not changed from September 30, 2020. See Note 1. Summary of Significant Accounting Policies within the 2020 Form 10-K for the fiscal year ended September 30, 2020 for further information. Revenue Recognition — Sales and Rentals Disaggregation of Revenue The Company disaggregates revenue recognized from contracts with customers by geography and reportable segments consistent with the way in which management operates and views the business. See Note 11. Segment Reporting for the presentation of the Company's revenue disaggregation. Contract Balances Contract liabilities represent deferred revenues that arise as a result of cash received from customers at inception of contracts or where the timing of billing for services precedes satisfaction of our performance obligations. Such remaining performance obligations represent the portion of the contract price for which work has not been performed and are primarily related to our installation and service contracts. These contract liabilities are recorded in Deferred revenue and Other long-term liabilities. We expect to satisfy the majority of the remaining performance obligations and recognize revenue related to installation and service contracts within 12 to 24 months. The nature of our products and services does not give rise to contract assets as we typically do not have instances where a right to payment for goods and services already transferred to a customer exists that is conditional on something other than the passage of time. The following table summarizes contract liability activity for the three months ended December 31, 2020. The contract liability balance represents the transaction price allocated to the remaining performance obligations. Contract Liabilities Balance as of October 1, 2020 $ 138.1 New revenue deferrals 99.0 Revenue recognized upon satisfaction of performance obligations (97.2) Foreign currency translation adjustment 1.3 Balance as of December 31, 2020 $ 141.2 Rental Revenue We make certain products available to customers under short-term lease arrangements. Rental usage of these products is provided as an alternative to product sales and is short-term in nature. Products primarily include smart beds, including, but not limited to, bariatric, intensive care unit, maternity, and home care beds, as well as surfaces. These lease arrangements provide our customers with our products during periods of peak demand or often times for specialty purposes. Additionally, we provide wearable, non-invasive ventilation products to patients covered by monthly medical insurance reimbursements, which are considered month-to-month leasing arrangements. Income arising from these lease arrangements where we are the lessor is recognized within Rental revenue. We accounted for these lease arrangements as operating leases. Warranties and 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 field corrective action, 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 had a material impact on our financial condition or results of operations, nor do we expect them to although indemnifications associated with our actions generally have no dollar limitations. In conjunction with our acquisition and divestiture activities, we 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 divestitures, 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 an adverse impact on our Condensed Consolidated Financial Statements. The following summarizes accrued product warranty activity for the three months ended December 31, 2020: Three Months Ended December 31 2020 Balance as of beginning of period $ 30.8 Provision for warranties in the period 5.4 Warranty claims in the period (6.4) Foreign currency translation adjustment 0.2 Balance as of end of period $ 30.0 Government Programs Related to COVID-19 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 3 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplementary Balance Sheet Information | Supplementary Financial Statement Information December 31, September 30, 2020 Inventories, net of reserves: Finished products $ 156.1 $ 167.6 Work in process 51.7 48.4 Raw materials 128.1 136.0 Total inventories, net of reserves $ 335.9 $ 352.0 Accumulated amortization of software and other intangible assets $ 703.6 $ 667.3 Investments included in Other assets $ 50.5 $ 49.0 Supplemental Cash Flow Information Three Months Ended 2020 2019 Non-cash operating activities Operating cash flows paid for amounts included in the measurement of lease liabilities $ 7.0 $ 7.1 Non-cash investing activities: Change in capital expenditures not paid $ (4.2) $ (1.8) Non-cash financing activities: Distribution of shares issued under stock-based compensation plans $ 31.7 $ 25.1 Non-cash investing and financing activities: Right of use assets obtained in exchange for new lease liabilities $ 1.8 $ 6.5 |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Business Combinations Acquisitions Assets acquired and liabilities assumed in a business combination are recorded at their estimated fair values on the date of acquisition. The difference between the purchase price amount and the net fair value of assets acquired and liabilities assumed is recognized as goodwill on the balance sheet if the purchase price exceeds the estimated net fair value or as a bargain purchase gain on the income statement if the purchase price is less than the estimated net fair value. The allocation of the purchase price may be modified up to one year after the acquisition date as more information is obtained about the fair value of assets acquired and liabilities assumed. During fiscal 2020 we acquired the following companies: Company Name Description of the Business Description of the Acquisition Excel Medical Clinical communications software company located in the United States Purchased all of the outstanding equity interest. Connecta Clinical communications software company based in Mexico. Purchased the multiplatform medical device integration and connectivity software programs, products, and solutions of the company. Videomed Developer of integrated video solutions in operating rooms located in Italy. Purchased all of the outstanding equity interest. The purchase price for the acquisitions listed above includes contingent consideration for which the performance periods have not yet expired. For the three months ended December 31, 2020, we recorded a reduction in the contingent consideration obligations of $1.7 million in Selling and administrative expenses primarily related to Excel Medical as a certain commercial milestone was not met. The related contingent consideration liabilities are included in Other current liabilities and Other long-term liabilities. For the three months ended December 31, 2020, we did not close on any new acquisitions. For additional information on Acquisitions, see Note 3. Business Combinations within the 2020 Form 10-K. Bardy Diagnostics, Inc. On January 15, 2021, we entered into a definitive merger agreement with Bardy Diagnostics, Inc. (“Bardy”), a Delaware company that develops and delivers cardiac arrhythmia monitoring devices, for initial cash consideration of $375.0 million, subject to closing conditions and certain post-closing adjustments. Additionally, contingent consideration will be payable based on the revenue generated from the acquired cardiac monitoring product during the first two calendar years starting with the calendar year in which the transaction is closed. The contingent consideration payable for the first calendar year in which the transaction closes will equal 50% of the revenue generated if less than $45.0 million, 100% of revenue generated if between $45.0 million and $57.0 million, and 150% of revenue generated if greater than $57.0 million during calendar year 2021. The contingent consideration payable for the second calendar year will equal 50% of the revenue generated if less than $70.0 million, 100% of the revenue generated if between $70.0 million and $89.0 million, and 125% of the revenue generated if greater than $89.0 million during the calendar year 2022. On January 29, 2021, the Medicare Administrative Contractor, Novitas Solutions, published newly established, Category 1 reimbursement rates applicable to the Current Procedural Terminology ("CPT") codes for the extended holter cardiac monitoring category, including CPT codes 93241, 93243, 93245 and 93247. Hillrom is currently assessing the recent reimbursement rate decision and the potential impacts of that decision on the Bardy busines s. Asset Acquisition On January 28, 2021, we acquired the contact-free continuous monitoring intellectual property and technology from EarlySense Ltd. in exchange for cash of $30.0 million, a portion of our non-marketable equity investment in EarlySense Ltd. of $25.5 million and forgiveness of a prepayment of approximately $2.0 million. The investment will be transferred to EarlySense Ltd. at a future date upon the satisfaction of certain conditions outlined in the purchase agreement. Additionally, contingent consideration of up to $10.0 million will be payable if commercial milestones defined in the purchase agreement are achieved through September 2023. The intangible asset acquired will be presented in Other intangible assets and software, net. |
Financing Agreements
Financing Agreements | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements Short-Term Borrowings Securitization Facilities We have our 364-day accounts receivable securitization progra m (the " Securitization Facility ") with certain financial institutions for borrowings up to $110.0 million. Additionally, we have our 364-day facility for borrowings up to $90.0 million (the " Note Securitization Facility"). Both facilities mature in April 2021. As of December 31, 2020, outstanding borrowings were $82.2 million on the Securitization Facility and $90.0 million on the Note Securitization Facility. See Note 5. Financing Agreements within the 2020 Form 10-K for the fiscal year ended September 30, 2020 for further information. Long-Term Debt As of December 31, 2020 and September 30, 2020, there were no outstanding borrowings on the Revolving Credit Facility, and available borrowing capacity was $1,191.0 million after giving effect to the $9.0 million of outstanding standby letters of credit. Long-Term Debt Redemption On October 7, 2019, we redeemed the senior unsecured 5.75% notes due September 2023 for $425.0 million and paid the prepayment premium of $12.2 million using the net proceeds from the senior unsecured 4.375% notes of $425.0 million maturing September 2027 that were issued in September 2019, along with funds borrowed from the Revolving Credit Facility. For the three months ended December 31, 2019, we recorded a loss on extinguishment of debt of $15.6 million, which was comprised of a $12.2 million prepayment premium and $3.4 million of debt issuance costs previously capitalized. See Note 5. Financing Agreements included within our 2020 Form 10-K for the fiscal year ended September 30, 2020 for further information. Fair Value 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 Securitization Facility, Note Securitization Facility, Term Loan A facility (“TLA Facility”) maturing in August 2024, and Revolving Credit Facility approximate fair value . The estimated fair values of our long-term debt instruments are described in the table below: December 31, September 30, 2020 Senior unsecured 5.00% notes due on February 15, 2025 $ 309.3 $ 310.1 Senior unsecured 4.375% notes due on September 15, 2027 450.0 441.2 Unsecured debentures 47.9 48.0 Total $ 807.2 $ 799.3 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 the Senior Notes were based on quoted prices for similar liabilities. These fair value measurements were classified as Level 2. Debt Covenants As of December 31, 2020, we were in compliance with all debt covenants under our financing agreements. |
Derivatives
Derivatives | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments and Hedging Activity We are exposed to various market risks, including fluctuations in interest rates and variability in foreign currency exchange rates. We have established policies, procedures, and internal processes governing our management of market risks and the use of financial instruments to manage our exposure to such risks. We employ cash flow hedges, net investment hedges, and other derivative instruments not designated for hedge accounting to manage these risks. Cash Flow Hedges To manage our exposure to market risk from fluctuations in interest rates, we enter into interest rate swaps that are designated as cash flow hedges. As of December 31, 2020 and September 30, 2020, we had interest rate swap agreements with an aggregate notional amount of $750.0 million to hedge the variability of cash flows through August 2024 associated with a portion of the variable interest rate payments on outstanding borrowings under our Senior Credit Agreement. We are subject to variability in foreign currency exchange rates due to our international operations. We enter into currency exchange contracts that are designated as cash flow hedges to manage our exposure arising from fluctuating exchange rates related to specific and projected transactions. We operate this program pursuant to documented corporate risk management policies and do not enter into derivative transactions for speculative purposes. The sensitivity of earnings and cash flows to variability in exchange rates is assessed by applying an appropriate range of potential rate fluctuations to our assets, obligations, and projected results of operations denominated in foreign currencies. Our currency risk consists primarily of foreign currency denominated firm commitments and projected foreign currency denominated intercompany and third-party transactions. As of December 31, 2020 and September 30, 2020, the notional amount of outstanding currency exchange contracts was $42.2 million and $64.4 million, respectively. The maximum length of time over which we hedge transaction exposures is generally 12 months. Derivative gains and losses, initially reported as a component of Accumulated other comprehensive income (loss), are reclassified to earnings in the period when the underlying transaction affects earnings. Net Investment Hedges As of December 31, 2020, we had cross-currency swap agreements, with an aggregate notional amount of $198.3 million, to hedge the variability of net assets due to changes in the U.S. dollar-Euro spot exchange rates through July 2023. These cross-currency swaps are designated as net investment hedges of subsidiaries using the Euro as their functional currency. We assess hedge effectiveness under the spot-to-spot method and record changes in fair value attributable to the translation of foreign currencies through Accumulated other comprehensive income (loss). We amortize the impact of all other changes in fair value of the derivatives through Interest expense, which was an income of $1.3 million for both the three months ended December 31, 2020 and 2019. Undesignated Derivative Instruments We use forward contracts to mitigate the foreign exchange revaluation risk associated with recorded monetary assets and liabilities that are denominated in a non-functional currency. These derivative instruments are not formally designated as hedges and the terms of these instruments generally do not exceed one month. As of December 31, 2020 and September 30, 2020, we had forward contracts not designated as hedges with aggregate notional amounts of $157.5 million and $169.9 million, respectively. The following table summarizes unrealized and realized gains and losses for forward contracts not designated as hedges, which are recorded in Investment income (expense) and other, net. Three Months Ended December 31 2020 2019 Unrealized gain $ 0.5 $ 0.2 Realized gain 2.1 0.4 Fair Value We classify fair value measurements on our derivative instruments as Level 2. The estimated fair values of our derivative instruments are described in the table below: Derivative Instruments December 31, 2020 Consolidated Balance Sheet Position September 30, 2020 Consolidated Balance Sheet Position Interest Rate Swaps $ (41.0) Other current liabilities $ (46.3) Other current liabilities Currency Exchange Contracts (2.6) Other current liabilities (0.4) Other current liabilities Cross-Currency Swaps 1.5 Other assets 9.7 Other assets Undesignated Forward Contracts 0.5 Other assets 0.0 Other assets Total $ (41.6) $ (37.0) |
Retirement and Postretirement P
Retirement and Postretirement Plans | 3 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans | Retirement and Postretirement Benefit Plans We sponsor five defined benefit retirement plans. Those plans include a master defined benefit retirement plan in the United States, 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 in 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. The following table provides the components of net pension expense for our defined benefit retirement plans. Three Months Ended Consolidated Statements of Income Item 2020 2019 Service cost $ 0.5 $ 0.4 Cost of goods sold Service cost 0.8 0.8 Selling and administrative expenses Interest cost 1.9 2.5 Investment income (expense) and other, net Expected return on plan assets (3.0) (3.7) Investment income (expense) and other, net Amortization of unrecognized prior service cost, net — 0.1 Investment income (expense) and other, net Amortization of net loss 1.5 1.5 Investment income (expense) and other, net Net periodic benefit cost 1.7 1.6 Special termination benefits 1 3.3 — Special charges Net pension expense $ 5.0 $ 1.6 1 In September 2020, we offered certain employees in the United States the option to participate in a voluntary early retirement plan. The employees who accepted the offer received special termination benefits during the three months ended December 31, 2020, which were recorded as a component of Special charges in the Consolidated Statements of Income. See Note 8. Special Charges for further information. In addition to defined benefit retirement plans, we also offer two postretirement health care plans in the United States 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 extend retiree coverage for medical and prescription benefits beyond the COBRA continuation period to the date of Medicare eligibility. Annual costs related to these plans are not significant. In connection with the voluntary early retirement plan offered in September 2020, we incurred $0.2 million of special termination benefits related to our postretirement health care plan. The amount was recorded as a recorded as a component of Special charges in the Consolidated Statements of Income. See Note 8. Special Charges for further information. 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 in retirement by providing employees with an incentive to regularly save a portion of their earnings. Our contributions to the plans are based on eligibility and, in some cases, employee contributions. Expense under these plans was $7.8 million and $6.2 million for the quarterly periods ended December 31, 2020 and 2019. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following tables represent the changes in Other comprehensive income (loss) and Accumulated other comprehensive income (loss) by component for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending balance 2 Derivative instruments designated as hedges 1 : Currency exchange contracts $ (1.4) $ (0.8) $ (2.2) $ 0.5 $ (1.7) $ (0.3) $ (1.7) $ (2.0) Interest rate swaps 8.0 (2.6) 5.4 (1.2) 4.2 (35.7) 4.2 (31.5) Cross-currency swaps (9.6) — (9.6) 2.2 (7.4) 6.7 (7.4) (0.7) Derivative instruments designated as hedges total $ (3.0) $ (3.4) $ (6.4) $ 1.5 $ (4.9) $ (29.3) $ (4.9) $ (34.2) Foreign currency translation adjustment 41.3 — 41.3 — 41.3 (110.7) 41.3 (69.4) Change in pension and postretirement defined benefit plans (0.5) 1.2 0.7 (0.2) 0.5 (40.2) 0.5 (39.7) Total $ 37.8 $ (2.2) $ 35.6 $ 1.3 $ 36.9 $ (180.2) $ 36.9 $ (143.3) Three Months Ended December 31, 2019 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending balance Derivative instruments designated as hedges 1 : Currency exchange contracts $ (0.3) $ 0.1 $ (0.2) $ — $ (0.2) $ 0.2 $ (0.2) $ — Interest rate swaps 0.9 0.8 1.7 (0.4) 1.3 (5.2) 1.3 (3.9) Cross-currency swaps (4.8) — (4.8) 1.1 (3.7) 12.2 (3.7) 8.5 Derivative instruments designated as hedges total $ (4.2) $ 0.9 $ (3.3) $ 0.7 $ (2.6) $ 7.2 $ (2.6) $ 4.6 Foreign currency translation adjustment 23.1 — 23.1 — 23.1 (145.4) 23.1 (122.3) Change in pension and postretirement defined benefit plans (0.2) 1.2 1.0 (0.3) 0.7 (44.3) 0.7 (43.6) Total $ 18.7 $ 2.1 $ 20.8 $ 0.4 $ 21.2 $ (182.5) $ 21.2 $ (161.3) 1 See Note 5. Derivative Instruments and Hedging Activity for information regarding our hedging strategies. 2 The estimated net amount of gains and losses reported in Accumulated other comprehensive income (loss) related to our derivative instruments designated as hedges as of December 31, 2020 that are expected to be reclassified into earnings within the next 12 months is expense of $8.8 million. The following table represents the items reclassified out of Accumulated other comprehensive income (loss) and the related tax effects for the three months ended December 31, 2020 and 2019: Three Months Ended December 31 2020 2019 Amount Tax effect Net of tax Amount Tax effect Net of tax Derivative instruments designated as hedges: Currency exchange contracts 1 $ (0.8) $ 0.2 $ (0.6) $ 0.1 $ (0.1) $ — Interest rate swaps 2 (2.6) 0.6 (2.0) 0.8 (0.2) 0.6 Derivative instruments designated as hedges total $ (3.4) $ 0.8 $ (2.6) $ 0.9 $ (0.3) $ 0.6 Change in pension and postretirement defined benefit plans 3 $ 1.2 $ (0.2) $ 1.0 $ 1.2 $ (0.3) $ 0.9 1 Reclassified from Accumulated other comprehensive income (loss) into Investment income (expense) and other, net. 2 Reclassified from Accumulated other comprehensive income (loss) into Interest expense. |
Special Charges
Special Charges | 3 Months Ended |
Dec. 31, 2020 | |
Special Charges [Abstract] | |
Special Charges | Special Charges Special charges are incurred in connection with various transformative initiatives, exit activities, and organizational changes to improve our business alignment and cost structure. Although these charges are infrequent and unusual in nature, additional Special charges are expected to be incurred. It is not practicable to estimate the amount of these future expected costs until such time as the evaluations are complete. The following table summarizes the Special charges recognized for the three months ended December 31, 2020 and 2019. Special Charges Three Months Ended December 31 2020 2019 Global information technology transformation $ 1.3 $ 4.1 Workforce reduction plan 22.7 — Integration-related activities 3.1 3.2 Site consolidation and other cost optimization activities, including related severance cost — 0.5 Total Special Charges $ 27.1 $ 7.8 Global Information Technology Transformation In fiscal 2019, management initiated a global information technology transformation, including rationalizing and transforming our enterprise resource planning software solutions and other complementary information technology systems. The objective of this initiative is to consolidate and streamline our key workstreams that interact with customers and vendors and support our financial reporting processes while maintaining the security of our data. The solutions designed under this initiative will be implemented over the next five to seven years. Workforce Reduction Plan On September 15, 2020, we committed to a workforce reduction plan as part of the continued business optimization initiatives to advance our strategy and growth platforms and improve our operations and cost structure. The workforce reduction plan includes a voluntary retirement program and involuntary severance actions. For the three months ended December 31, 2020, we incurred $22.7 million related to this initiative within Special charges. Integration-Related Activities We incurred costs, including severance and benefit costs, associated with business realignment and integration activities focused on reducing complexity, increasing efficiency, and improving our cost structure. We acquired several businesses as disclosed within Note 3. Business Combinations within the 2020 Form 10-K for the fiscal year ended September 30, 2020 for which we also continue to incur integration-related costs and severance costs. Site Consolidation and Other Cost Optimization Activities, Including Related Severance Cost We continue to streamline our operations and simplify our supply chain by transforming and consolidating certain manufacturing and distribution operations. For all accrued severance and other benefit charges described above, we record reserves within Other current liabilities. The following table summarizes the reserve activity for severance and other benefits for the three months ended December 31, 2020. Balance as of September 30, 2020 $ 11.3 Expenses 20.0 Cash payments (9.7) Reversals (0.1) Balance as of December 31, 2020 $ 21.5 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended December 31, 2020 wa s 17.9% com pared to 6.6% for the comparable period in the prior year. The rate was lower in the prior year period primarily due to the favorable impact of excess tax benefits on deductible stock compensation compared to the current year period. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (“EPS”) 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: Three Months Ended December 31 2020 2019 Net Income $ 58.8 $ 39.8 Net Income per Basic Common Share $ 0.88 $ 0.60 Net Income per Diluted Common Share $ 0.88 $ 0.59 Average Basic Common Shares Outstanding (in thousands) 66,497 66,792 Add potential effect of exercise of stock options and other unvested equity awards 428 537 Average Diluted Common Shares Outstanding (in thousands) 66,925 67,329 Shares with anti-dilutive effect excluded from the computation of diluted EPS 639 291 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 31, 2020 | |
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. Our operating structure contains the following reportable segments: • Patient Support Systems – globally provides an ecosystem of our digital and connected care solutions: devices, software, communications and integration technologies that improve care and deliver actionable insights to caregivers and patients in the acute care setting. Key products include care communications and mobility solutions, connected med-surg and ICU bed systems, sensors and surfaces, safe patient handling equipment and services. • Front Line Care – globally provides integrated patient monitoring and diagnostic technologies – from hospital to home – that enable and support Hillrom’s connected care strategy. Our diverse portfolio includes secure, connected, digital assessment technologies to help diagnose, treat and manage a wide variety of illnesses and diseases, including respiratory therapy, cardiology, vision screening and physical assessment. • Surgical Solutions – globally enables peak procedural performance, connectivity and video integration products that improve collaboration, workflow, safety and efficiency in the operating room, such as surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories. 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, excluding acquisition-related intangible asset amortization, 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 reportable segment and, accordingly, we do not report asset information by reportable segment. Three Months Ended December 31 2020 2019 Net Revenue - United States: Patient Support Systems $ 268.9 $ 266.6 Front Line Care 184.5 178.1 Surgical Solutions 34.2 37.1 Total net revenue - United States $ 487.6 $ 481.8 Net Revenue - Outside of the United States (“OUS”): Patient Support Systems $ 108.5 $ 77.6 Front Line Care 85.4 76.5 Surgical Solutions 59.6 49.1 Total net revenue - OUS $ 253.5 $ 203.2 Net Revenue: Patient Support Systems $ 377.4 $ 344.2 Front Line Care 269.9 254.6 Surgical Solutions 93.8 86.2 Total net revenue $ 741.1 $ 685.0 Divisional Income: Patient Support Systems $ 87.3 $ 58.4 Front Line Care 81.9 73.5 Surgical Solutions 17.5 12.8 Other Operating Costs: Non-allocated operating costs, administrative costs, and other 77.2 58.0 Special charges 27.1 7.8 Operating Profit 82.4 78.9 Interest expense (17.8) (19.4) Loss on extinguishment of debt — (15.6) Investment income (expense) and other, net 7.0 (1.3) Income Before Income Taxes $ 71.6 $ 42.6 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General We are subject to various 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 materially adverse effect on our financial condition, results of operations and cash flows. 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 at various limits up 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Nature of Operations (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses of Financial Instruments and has subsequently issued related amendments, collectively referred to as “Topic 326”. Topic 326 requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses rather than incurred losses. This adoption primarily impacted our trade accounts receivables. Under the current expected credit loss model, we review receivables for collectability based on an assessment of various factors, including historical collection experience for each receivable type and expectations of forward-looking loss estimates, and individual receivables are also reviewed for collectability based on unique circumstances. Any adjustments made to our historical loss experience reflect current differences in asset-specific risk characteristics, including, customer type (public or government entity versus private entity) and geographic location of the customer. We adopted ASU 2016-13 in the first quarter of fiscal 2021 using the modified retrospective transition method with a cumulative effect adjustment directly to retained earnings. The cumulative effect of applying Topic 326 were an increase to the allowance for credit losses of $3.0 million and deferred tax assets of $0.8 million with a corresponding decrease to the opening balance of Retained earnings of $2.2 million. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . The purpose of the standard is to improve the overall usefulness of fair value disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. ASU 2018-13 requires the application of the prospective method of transition (for only the most recent interim or annual period presented in the initial fiscal year of adoption) to the new disclosure requirements for (1) changes in unrealized gains and losses included in other comprehensive income and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 also requires prospective application to any modifications to disclosures made because of the change to the requirements for the narrative description of measurement uncertainty. The effects of all other amendments made by ASU 2018-13 must be applied retrospectively to all periods presented. We adopted ASU 2018-13 in the first quarter of fiscal 2021. The adoption of ASU 2018-13 had no impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) : Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement to be consistent with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). We adopted ASU 2018-15 in the first quarter of fiscal 2021 using the prospective transition method approach. The Company’s cloud computing hosting arrangements are primarily information technology agreements that support the Company’s operations and infrastructure. The adoption of ASU 2018-15 did not have a significant impact on our Condensed Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . The purpose of the standard is to (1) clarify that transactions between participants in a collaborative agreement should be accounted for under Topic 606 and (2) add unit-of-account guidance in Topic 808 to align with Topic 606. We retrospectively adopted ASU 2018-18 in the first quarter of fiscal 2021. The adoption of ASU 2018-18 had no impact on our Condensed Consolidated Financial Statements. Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The purpose of the standard is to improve the overall usefulness of defined benefit pension and other postretirement plan disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. ASU 2018-14 is effective for our annual disclosures for fiscal 2021 and requires a retrospective transition method. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption on our Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The purpose of the standard is to remove certain exceptions to the general principles of Topic 740: Income Taxes in order to reduce the cost and complexity of its application and to maintain or improve the usefulness of the information provided to users of financial statements. ASU 2019-12 is effective for our first quarter of fiscal 2022 and will be applied either retrospectively or prospectively depending on the specific Topic 740 exception affected. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption on our Condensed Consolidated Financial Statements. Except as noted above, there are no significant changes to our assessment of the impact of recently issued accounting standards included in Note 1. Summary of Significant Accounting Policies of our Condensed Consolidated Financial Statements in our 2020 Form 10-K. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited Condensed Consolidated Financial Statements and related notes have been prepared in accordance with the rules and regulations of the SEC for interim unaudited Condensed Consolidated Financial Statements. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete Condensed Consolidated Financial Statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the results of the interim periods presented. Quarterly results are not necessarily indicative of annual results. The unaudited Condensed Consolidated Financial Statements appearing in this Quarterly Report on Form 10-Q should be read in conjunction with the audited Condensed Consolidated Financial Statements and notes thereto included in Hillrom’s fiscal 2020 Form 10-K as filed with the SEC. The Condensed Consolidated Financial Statements include the accounts of Hillrom and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Company makes a number of significant estimates, assumptions, and judgments in the preparation of its financial statements. Additionally, the Company measures and classifies fair value measurements in accordance with the level hierarchy in conformity with GAAP. As of December 31, 2020, the Company's significant accounting policies and estimates and valuation techniques used to measure fair value have not changed from September 30, 2020. See Note 1. Summary of Significant Accounting Policies within the 2020 Form 10-K for the fiscal year ended September 30, 2020 for further information. Revenue Recognition — Sales and Rentals Disaggregation of Revenue The Company disaggregates revenue recognized from contracts with customers by geography and reportable segments consistent with the way in which management operates and views the business. See Note 11. Segment Reporting for the presentation of the Company's revenue disaggregation. Contract Balances Contract liabilities represent deferred revenues that arise as a result of cash received from customers at inception of contracts or where the timing of billing for services precedes satisfaction of our performance obligations. Such remaining performance obligations represent the portion of the contract price for which work has not been performed and are primarily related to our installation and service contracts. These contract liabilities are recorded in Deferred revenue and Other long-term liabilities. We expect to satisfy the majority of the remaining performance obligations and recognize revenue related to installation and service contracts within 12 to 24 months. The nature of our products and services does not give rise to contract assets as we typically do not have instances where a right to payment for goods and services already transferred to a customer exists that is conditional on something other than the passage of time. The following table summarizes contract liability activity for the three months ended December 31, 2020. The contract liability balance represents the transaction price allocated to the remaining performance obligations. Contract Liabilities Balance as of October 1, 2020 $ 138.1 New revenue deferrals 99.0 Revenue recognized upon satisfaction of performance obligations (97.2) Foreign currency translation adjustment 1.3 Balance as of December 31, 2020 $ 141.2 Rental Revenue We make certain products available to customers under short-term lease arrangements. Rental usage of these products is provided as an alternative to product sales and is short-term in nature. Products primarily include smart beds, including, but not limited to, bariatric, intensive care unit, maternity, and home care beds, as well as surfaces. These lease arrangements provide our customers with our products during periods of peak demand or often times for specialty purposes. Additionally, we provide wearable, non-invasive ventilation products to patients covered by monthly medical insurance reimbursements, which are considered month-to-month leasing arrangements. Income arising from these lease arrangements where we are the lessor is recognized within Rental revenue. We accounted for these lease arrangements as operating leases. Warranties and 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 field corrective action, 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 had a material impact on our financial condition or results of operations, nor do we expect them to although indemnifications associated with our actions generally have no dollar limitations. In conjunction with our acquisition and divestiture activities, we 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 divestitures, 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 an adverse impact on our Condensed Consolidated Financial Statements. The following summarizes accrued product warranty activity for the three months ended December 31, 2020: Three Months Ended December 31 2020 Balance as of beginning of period $ 30.8 Provision for warranties in the period 5.4 Warranty claims in the period (6.4) Foreign currency translation adjustment 0.2 Balance as of end of period $ 30.0 Government Programs Related to COVID-19 |
Supplementary Balance Sheet I_2
Supplementary Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplementary Balance Sheet Information | December 31, September 30, 2020 Inventories, net of reserves: Finished products $ 156.1 $ 167.6 Work in process 51.7 48.4 Raw materials 128.1 136.0 Total inventories, net of reserves $ 335.9 $ 352.0 Accumulated amortization of software and other intangible assets $ 703.6 $ 667.3 Investments included in Other assets $ 50.5 $ 49.0 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information Three Months Ended 2020 2019 Non-cash operating activities Operating cash flows paid for amounts included in the measurement of lease liabilities $ 7.0 $ 7.1 Non-cash investing activities: Change in capital expenditures not paid $ (4.2) $ (1.8) Non-cash financing activities: Distribution of shares issued under stock-based compensation plans $ 31.7 $ 25.1 Non-cash investing and financing activities: Right of use assets obtained in exchange for new lease liabilities $ 1.8 $ 6.5 |
Financing Agreements (Tables)
Financing Agreements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Fair Values of Long-Term Debt Instruments | The estimated fair values of our long-term debt instruments are described in the table below: December 31, September 30, 2020 Senior unsecured 5.00% notes due on February 15, 2025 $ 309.3 $ 310.1 Senior unsecured 4.375% notes due on September 15, 2027 450.0 441.2 Unsecured debentures 47.9 48.0 Total $ 807.2 $ 799.3 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Three Months Ended December 31 2020 2019 Unrealized gain $ 0.5 $ 0.2 Realized gain 2.1 0.4 Fair Value We classify fair value measurements on our derivative instruments as Level 2. The estimated fair values of our derivative instruments are described in the table below: Derivative Instruments December 31, 2020 Consolidated Balance Sheet Position September 30, 2020 Consolidated Balance Sheet Position Interest Rate Swaps $ (41.0) Other current liabilities $ (46.3) Other current liabilities Currency Exchange Contracts (2.6) Other current liabilities (0.4) Other current liabilities Cross-Currency Swaps 1.5 Other assets 9.7 Other assets Undesignated Forward Contracts 0.5 Other assets 0.0 Other assets Total $ (41.6) $ (37.0) |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location |
Retirement and Postretirement_2
Retirement and Postretirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Pension Expense | The following table provides the components of net pension expense for our defined benefit retirement plans. Three Months Ended Consolidated Statements of Income Item 2020 2019 Service cost $ 0.5 $ 0.4 Cost of goods sold Service cost 0.8 0.8 Selling and administrative expenses Interest cost 1.9 2.5 Investment income (expense) and other, net Expected return on plan assets (3.0) (3.7) Investment income (expense) and other, net Amortization of unrecognized prior service cost, net — 0.1 Investment income (expense) and other, net Amortization of net loss 1.5 1.5 Investment income (expense) and other, net Net periodic benefit cost 1.7 1.6 Special termination benefits 1 3.3 — Special charges Net pension expense $ 5.0 $ 1.6 1 In September 2020, we offered certain employees in the United States the option to participate in a voluntary early retirement plan. The employees who accepted the offer received special termination benefits during the three months ended December 31, 2020, which were recorded as a component of Special charges in the Consolidated Statements of Income. See Note 8. Special Charges for further information. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in AOCL by Component | The following tables represent the changes in Other comprehensive income (loss) and Accumulated other comprehensive income (loss) by component for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending balance 2 Derivative instruments designated as hedges 1 : Currency exchange contracts $ (1.4) $ (0.8) $ (2.2) $ 0.5 $ (1.7) $ (0.3) $ (1.7) $ (2.0) Interest rate swaps 8.0 (2.6) 5.4 (1.2) 4.2 (35.7) 4.2 (31.5) Cross-currency swaps (9.6) — (9.6) 2.2 (7.4) 6.7 (7.4) (0.7) Derivative instruments designated as hedges total $ (3.0) $ (3.4) $ (6.4) $ 1.5 $ (4.9) $ (29.3) $ (4.9) $ (34.2) Foreign currency translation adjustment 41.3 — 41.3 — 41.3 (110.7) 41.3 (69.4) Change in pension and postretirement defined benefit plans (0.5) 1.2 0.7 (0.2) 0.5 (40.2) 0.5 (39.7) Total $ 37.8 $ (2.2) $ 35.6 $ 1.3 $ 36.9 $ (180.2) $ 36.9 $ (143.3) Three Months Ended December 31, 2019 Other comprehensive income (loss) Accumulated other comprehensive income (loss) Prior to Reclassification Pre-tax Tax effect Net of tax Beginning Net activity Ending balance Derivative instruments designated as hedges 1 : Currency exchange contracts $ (0.3) $ 0.1 $ (0.2) $ — $ (0.2) $ 0.2 $ (0.2) $ — Interest rate swaps 0.9 0.8 1.7 (0.4) 1.3 (5.2) 1.3 (3.9) Cross-currency swaps (4.8) — (4.8) 1.1 (3.7) 12.2 (3.7) 8.5 Derivative instruments designated as hedges total $ (4.2) $ 0.9 $ (3.3) $ 0.7 $ (2.6) $ 7.2 $ (2.6) $ 4.6 Foreign currency translation adjustment 23.1 — 23.1 — 23.1 (145.4) 23.1 (122.3) Change in pension and postretirement defined benefit plans (0.2) 1.2 1.0 (0.3) 0.7 (44.3) 0.7 (43.6) Total $ 18.7 $ 2.1 $ 20.8 $ 0.4 $ 21.2 $ (182.5) $ 21.2 $ (161.3) 1 See Note 5. Derivative Instruments and Hedging Activity for information regarding our hedging strategies. 2 The estimated net amount of gains and losses reported in Accumulated other comprehensive income (loss) related to our derivative instruments designated as hedges as of December 31, 2020 that are expected to be reclassified into earnings within the next 12 months is expense of $8.8 million. |
Schedule of Items Reclassified out of AOCL | The following table represents the items reclassified out of Accumulated other comprehensive income (loss) and the related tax effects for the three months ended December 31, 2020 and 2019: Three Months Ended December 31 2020 2019 Amount Tax effect Net of tax Amount Tax effect Net of tax Derivative instruments designated as hedges: Currency exchange contracts 1 $ (0.8) $ 0.2 $ (0.6) $ 0.1 $ (0.1) $ — Interest rate swaps 2 (2.6) 0.6 (2.0) 0.8 (0.2) 0.6 Derivative instruments designated as hedges total $ (3.4) $ 0.8 $ (2.6) $ 0.9 $ (0.3) $ 0.6 Change in pension and postretirement defined benefit plans 3 $ 1.2 $ (0.2) $ 1.0 $ 1.2 $ (0.3) $ 0.9 1 Reclassified from Accumulated other comprehensive income (loss) into Investment income (expense) and other, net. 2 Reclassified from Accumulated other comprehensive income (loss) into Interest expense. |
Special Charges (Tables)
Special Charges (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Special Charges [Abstract] | |
Restructuring Activity | three months ended December 31, 2020. Balance as of September 30, 2020 $ 11.3 Expenses 20.0 Cash payments (9.7) Reversals (0.1) Balance as of December 31, 2020 $ 21.5 |
Special Charges, Net | The following table summarizes the Special charges recognized for the three months ended December 31, 2020 and 2019. Special Charges Three Months Ended December 31 2020 2019 Global information technology transformation $ 1.3 $ 4.1 Workforce reduction plan 22.7 — Integration-related activities 3.1 3.2 Site consolidation and other cost optimization activities, including related severance cost — 0.5 Total Special Charges $ 27.1 $ 7.8 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculated Earnings per Share | Earnings per share are calculated as follows: Three Months Ended December 31 2020 2019 Net Income $ 58.8 $ 39.8 Net Income per Basic Common Share $ 0.88 $ 0.60 Net Income per Diluted Common Share $ 0.88 $ 0.59 Average Basic Common Shares Outstanding (in thousands) 66,497 66,792 Add potential effect of exercise of stock options and other unvested equity awards 428 537 Average Diluted Common Shares Outstanding (in thousands) 66,925 67,329 Shares with anti-dilutive effect excluded from the computation of diluted EPS 639 291 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Consolidated Financial Information | Three Months Ended December 31 2020 2019 Net Revenue - United States: Patient Support Systems $ 268.9 $ 266.6 Front Line Care 184.5 178.1 Surgical Solutions 34.2 37.1 Total net revenue - United States $ 487.6 $ 481.8 Net Revenue - Outside of the United States (“OUS”): Patient Support Systems $ 108.5 $ 77.6 Front Line Care 85.4 76.5 Surgical Solutions 59.6 49.1 Total net revenue - OUS $ 253.5 $ 203.2 Net Revenue: Patient Support Systems $ 377.4 $ 344.2 Front Line Care 269.9 254.6 Surgical Solutions 93.8 86.2 Total net revenue $ 741.1 $ 685.0 Divisional Income: Patient Support Systems $ 87.3 $ 58.4 Front Line Care 81.9 73.5 Surgical Solutions 17.5 12.8 Other Operating Costs: Non-allocated operating costs, administrative costs, and other 77.2 58.0 Special charges 27.1 7.8 Operating Profit 82.4 78.9 Interest expense (17.8) (19.4) Loss on extinguishment of debt — (15.6) Investment income (expense) and other, net 7.0 (1.3) Income Before Income Taxes $ 71.6 $ 42.6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Selling and administrative expenses | $ 209,000,000 | $ 196,800,000 | |
Acquisition-related intangible asset amortization | 25,900,000 | $ 26,700,000 | |
Cares Act | 21,200,000 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 200,000 | ||
Standard Product Warranty Accrual, Increase for Warranties Issued | 5,400,000 | ||
Standard Product Warranty Accrual, Decrease for Payments | (6,400,000) | ||
Retained Earnings (Accumulated Deficit) | 2,174,100,000 | $ 2,132,200,000 | |
Accounting Standards Update 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 800,000 | ||
Retained Earnings (Accumulated Deficit) | 3,000,000 | ||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 2,200,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Other Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | |||
Revenues | $ 741.1 | $ 685 | |
Net Income (Loss) Attributable to Parent | 58.8 | 39.8 | |
Net Income | $ 58.8 | $ 39.8 | |
Net Income Attributable to Common Shareholders per Common Share - Basic (usd per share) | $ 0.88 | $ 0.60 | |
Earnings Per Share, Diluted | $ 0.88 | $ 0.59 | |
Other Liabilities and Deferred Revenue, Noncurrent | $ 141.2 | $ 138.1 | |
Deferred Revenue, Additions | 99 | ||
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized | (97.2) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 1.3 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Other Liabilities and Deferred Revenue, Noncurrent | $ 141.2 | $ 138.1 |
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized | (97.2) | |
Deferred Revenue | 112.3 | $ 110.1 |
Deferred Revenue, Additions | 99 | |
Capitalized Contract Cost [Line Items] | ||
Deferred Revenue, Additions | $ 99 |
Supplementary Balance Sheet I_3
Supplementary Balance Sheet Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Inventories, net of reserves: | |||
Finished products | $ 156,100,000 | $ 167,600,000 | |
Inventory, Work in Process, Gross | 51,700,000 | 48,400,000 | |
Inventory, Raw Materials, Net of Reserves | 128,100,000 | 136,000,000 | |
Total inventories, net of reserves | 335,900,000 | 352,000,000 | |
Accumulated amortization of software and other intangible assets | 703.6 | 667,300,000 | |
Investments | 50,500,000 | $ 49,000,000 | |
Capital Expenditures Incurred but Not yet Paid | (4,200,000) | $ (1,800,000) | |
Restricted Stock or Unit Expense | 31,700,000 | 25,100,000 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,800,000 | 6,500,000 | |
Operating Lease, Payments | $ 7,000,000 | $ 7,100,000 |
Business Combinations Acquisiti
Business Combinations Acquisitions (Details) - USD ($) | Jan. 27, 2021 | Jan. 15, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 15, 2022 | Sep. 30, 2020 |
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 8,400,000 | |||||
Goodwill | $ 1,847,900,000 | $ 1,835,500,000 | ||||
Selling, General and Administrative Expenses [Member] | Excel Medical | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 1,700,000 | |||||
Bardy [Member] | Bardy [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 45,000,000 | $ 70,000,000 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 57,000,000 | $ 89,000,000 | ||||
Payments to Acquire Businesses, Gross | $ 375,000,000 | |||||
Evergreen [Member] | Evergreen [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 10,000,000 | |||||
Payments to Acquire Businesses, Gross | 30,000,000 | |||||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination | 25,500,000 | |||||
Business Combination, Consideration Transferred, Other | $ 2,000,000 |
Financing Agreements (Schedule
Financing Agreements (Schedule of Total Debt) (Details) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | May 01, 2020 | Oct. 07, 2019 | |
Debt Instrument [Line Items] | |||||
Repayments of Long-term Debt | $ (12,500,000) | $ (12,600,000) | |||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Unsecured debenture interest rate | 4.375% | ||||
Debt Instrument, Face Amount | $ 425,000,000 | ||||
Revolving credit facility, matures September 2021 | 222,300,000 | $ 222,300,000 | |||
Total Long-term debt | 1,643,800,000 | $ 1,655,700,000 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | 9,000,000 | ||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,191,000,000 | ||||
Senior Unsecured 5.00% Notes due on February 14, 2025 [Member] | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Unsecured debenture interest rate | 5.00% | ||||
Securitization Program [Member] | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Revolving credit facility, matures September 2021 | 82,200,000 | ||||
Debt Instrument, Face Amount | $ 110,000,000 | ||||
Note Securitization Facility [Member] | |||||
Long-term Debt, by Current and Noncurrent [Abstract] | |||||
Revolving credit facility, matures September 2021 | $ 90,000,000 | ||||
Debt Instrument, Face Amount | $ 90,000,000 |
Financing Agreements (Narrative
Financing Agreements (Narrative) (Details) - USD ($) | May 01, 2020 | Oct. 07, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||||
Payment of long-term debt | $ (12,500,000) | $ (12,600,000) | |||
Aggregate value of debt | $ 425,000,000 | ||||
Unsecured debenture interest rate | 4.375% | ||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 12,200,000 | 0 | (437,200,000) | ||
Gain (Loss) on Extinguishment of Debt | 0 | 15,600,000 | |||
Securitization Program [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Term | 364 days | ||||
Revolving credit facility, matures September 2021 | 82,200,000 | ||||
Aggregate value of debt | $ 110,000,000 | ||||
Note Securitization Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Term | 364 days | ||||
Revolving credit facility, matures September 2021 | 90,000,000 | ||||
Aggregate value of debt | $ 90,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior revolving credit facility, maximum borrowing amount | 1,191,000,000 | ||||
Outstanding letters of credit | $ 9,000,000 | ||||
Senior Unsecured 5.75% Notes due on September 1, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 12,200,000 | ||||
Gain (Loss) on Extinguishment of Debt | 15,600,000 | ||||
Write off of Deferred Debt Issuance Cost | $ 3,400,000 | ||||
Senior Unsecured 5.00% Notes due on February 14, 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured debenture interest rate | 5.00% | ||||
Senior Unsecured 4.375% Notes due September 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured debenture interest rate | 4.375% |
Financing Agreements (Schedul_2
Financing Agreements (Schedule of Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 | Oct. 07, 2019 |
Debt Instrument [Line Items] | |||
Total | $ 807.2 | $ 799.3 | |
Unsecured debenture interest rate | 4.375% | ||
Unsecured Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Fair value of unsecured notes | 47.9 | 48 | |
Senior Unsecured 5.00% Notes due on February 14, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Fair value of unsecured notes | 309.3 | $ 310.1 | |
Unsecured debenture interest rate | 5.00% | ||
Senior Unsecured 4.375% Notes due September 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Fair value of unsecured notes | $ 450 | $ 441.2 | |
Unsecured debenture interest rate | 4.375% |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Fair Value, Net | $ (41,600,000) | $ (37,000,000) | |
Cash Flow Hedging [Member] | Other Current Liabilities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Fair Value, Net | (41,000,000) | (46,300,000) | |
Currency Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | 42,200,000 | 64,400,000 | |
Currency Swap [Member] | Other Current Liabilities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Fair Value, Net | (2,600,000) | ||
Currency Swap [Member] | Other Current Assets [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Fair Value, Net | (400,000) | ||
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | 157,500,000 | 169,900,000 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 500,000 | $ 200,000 | |
Derivative, Gain on Derivative | 2,100,000 | ||
Derivative, Loss on Derivative | $ 400,000 | ||
Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Fair Value, Net | 500,000 | 0 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | 750,000,000 | ||
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | 198,300,000 | ||
Net Investment Hedging [Member] | Other Assets [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Fair Value, Net | 1,500,000 | $ 9,700,000 | |
Net Investment Hedging [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 1,300,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Rental expenses | $ 37.7 | $ 37 |
Retirement and Postretirement_3
Retirement and Postretirement Plans (Defined Benefit Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1.9 | $ 2.5 |
Expected return on plan assets | (3) | (3.7) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0.1 |
Amortization of net loss | 1.5 | 1.5 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement | 3.3 | |
Net pension expense | 5 | 1.6 |
Defined contribution savings plans expense | 7.8 | 6.2 |
Cost of Goods and Service Benchmark [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.5 | 0.4 |
Selling, General and Administrative Expenses [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.8 | $ 0.8 |
Retirement and Postretirement_4
Retirement and Postretirement Plans (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Defined contribution savings plans expense | $ 7.8 | $ 6.2 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Schedule of Changes in AOCL by Component) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 8,800,000 | |
Other comprehensive income (loss) | ||
Other Comprehensive Income (Loss), Net of Tax, Total | 36,900,000 | $ 21,200,000 |
Accumulated other comprehensive loss | ||
Beginning balance | 1,726,100,000 | |
Net activity | 36,900,000 | 21,200,000 |
Ending balance | 1,763,100,000 | |
Income Tax Expense (Benefit) | 12,800,000 | 2,800,000 |
Net Income (Loss) Attributable to Parent | 58,800,000 | 39,800,000 |
Available-for-sale Securities and Hedges [Member] | ||
Other comprehensive income (loss) | ||
Prior to reclassification | (3,000,000) | (4,200,000) |
Reclassification from | (3,400,000) | 900,000 |
Pre-tax | (6,400,000) | (3,300,000) |
Tax effect | 1,500,000 | 700,000 |
Other Comprehensive Income (Loss), Net of Tax, Total | (4,900,000) | (2,600,000) |
Accumulated other comprehensive loss | ||
Beginning balance | (29,300,000) | 7,200,000 |
Net activity | (4,900,000) | (2,600,000) |
Ending balance | (34,200,000) | 4,600,000 |
Net Income (Loss) Attributable to Parent | 2,600,000 | (600,000) |
Foreign Currency Translation Adjustment [Member] | ||
Other comprehensive income (loss) | ||
Prior to reclassification | 41,300,000 | 23,100,000 |
Reclassification from | 0 | 0 |
Pre-tax | 41,300,000 | 23,100,000 |
Tax effect | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Total | 41,300,000 | 23,100,000 |
Accumulated other comprehensive loss | ||
Beginning balance | (110,700,000) | (145,400,000) |
Net activity | 41,300,000 | 23,100,000 |
Ending balance | (69,400,000) | (122,300,000) |
Change in Pension and Postretirement Defined Benefit Plans [Member] | ||
Other comprehensive income (loss) | ||
Prior to reclassification | (500,000) | (200,000) |
Reclassification from | 1,200,000 | 1,200,000 |
Pre-tax | 700,000 | 1,000,000 |
Tax effect | 200,000 | 300,000 |
Other Comprehensive Income (Loss), Net of Tax, Total | 500,000 | 700,000 |
Accumulated other comprehensive loss | ||
Beginning balance | (40,200,000) | (44,300,000) |
Net activity | 500,000 | 700,000 |
Ending balance | (39,700,000) | (43,600,000) |
Income Tax Expense (Benefit) | (200,000) | (300,000) |
Change in Pension and Postretirement Defined Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated other comprehensive loss | ||
Net Income (Loss) Attributable to Parent | (1,000,000) | (900,000) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Other comprehensive income (loss) | ||
Prior to reclassification | 37,800,000 | 18,700,000 |
Reclassification from | (2,200,000) | 2,100,000 |
Pre-tax | 35,600,000 | 20,800,000 |
Tax effect | 1,300,000 | 400,000 |
Other Comprehensive Income (Loss), Net of Tax, Total | 36,900,000 | 21,200,000 |
Accumulated other comprehensive loss | ||
Beginning balance | (180,200,000) | (182,500,000) |
Net activity | 36,900,000 | 21,200,000 |
Ending balance | (143,300,000) | (161,300,000) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Other comprehensive income (loss) | ||
Reclassification from | 3,400,000 | (900,000) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated other comprehensive loss | ||
Income Tax Expense (Benefit) | 800,000 | (300,000) |
Foreign Exchange Forward [Member] | Available-for-sale Securities and Hedges [Member] | ||
Other comprehensive income (loss) | ||
Pre-tax | (2,200,000) | (200,000) |
Other Comprehensive Income (Loss), Net of Tax, Total | (1,700,000) | (200,000) |
Accumulated other comprehensive loss | ||
Beginning balance | (300,000) | 200,000 |
Net activity | (1,700,000) | (200,000) |
Ending balance | (2,000,000) | 0 |
Foreign Exchange Forward [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Other comprehensive income (loss) | ||
Tax effect | (500,000) | 0 |
Interest Rate Swap [Member] | Available-for-sale Securities and Hedges [Member] | ||
Other comprehensive income (loss) | ||
Pre-tax | 5,400,000 | 1,700,000 |
Other Comprehensive Income (Loss), Net of Tax, Total | 4,200,000 | 1,300,000 |
Accumulated other comprehensive loss | ||
Beginning balance | (35,700,000) | (5,200,000) |
Net activity | 4,200,000 | 1,300,000 |
Ending balance | (31,500,000) | (3,900,000) |
Interest Rate Swap [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Other comprehensive income (loss) | ||
Prior to reclassification | 8,000,000 | 900,000 |
Reclassification from | 2,600,000 | (800,000) |
Tax effect | 1,200,000 | 400,000 |
Accumulated other comprehensive loss | ||
Income Tax Expense (Benefit) | 600,000 | (200,000) |
Net Income (Loss) Attributable to Parent | (2,000,000) | 600,000 |
Currency Swap [Member] | Available-for-sale Securities and Hedges [Member] | ||
Accumulated other comprehensive loss | ||
Beginning balance | 6,700,000 | 12,200,000 |
Currency Swap [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Other comprehensive income (loss) | ||
Prior to reclassification | (9,600,000) | (4,800,000) |
Reclassification from | 0 | 0 |
Tax effect | (2,200,000) | (1,100,000) |
Foreign Exchange Contract [Member] | Available-for-sale Securities and Hedges [Member] | ||
Other comprehensive income (loss) | ||
Pre-tax | (9,600,000) | (4,800,000) |
Other Comprehensive Income (Loss), Net of Tax, Total | (7,400,000) | (3,700,000) |
Accumulated other comprehensive loss | ||
Net activity | (7,400,000) | (3,700,000) |
Ending balance | (700,000) | 8,500,000 |
Foreign Exchange | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Other comprehensive income (loss) | ||
Prior to reclassification | (1,400,000) | (300,000) |
Reclassification from | 800,000 | (100,000) |
Accumulated other comprehensive loss | ||
Income Tax Expense (Benefit) | 200,000 | (100,000) |
Net Income (Loss) Attributable to Parent | $ (600,000) | $ 0 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Schedule of Items Reclassified out of AOCL) (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified | $ (71,600,000) | $ (42,600,000) | ||
Tax effect | 12,800,000 | 2,800,000 | ||
Net of tax | (58,800,000) | (39,800,000) | ||
Net activity | 36,900,000 | 21,200,000 | ||
Stockholders' Equity Attributable to Parent | 1,763,100,000 | $ 1,726,100,000 | ||
Available-for-sale Securities and Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (3,400,000) | 900,000 | ||
Net of tax | (2,600,000) | 600,000 | ||
Prior to reclassification | (3,000,000) | (4,200,000) | ||
Other Comprehensive Income (Loss), before Tax | (6,400,000) | (3,300,000) | ||
Other Comprehensive Income (Loss), Tax | (1,500,000) | (700,000) | ||
Net activity | (4,900,000) | (2,600,000) | ||
Stockholders' Equity Attributable to Parent | (34,200,000) | 4,600,000 | (29,300,000) | $ 7,200,000 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||
Prior to reclassification | 41,300,000 | 23,100,000 | ||
Other Comprehensive Income (Loss), before Tax | 41,300,000 | 23,100,000 | ||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||
Net activity | 41,300,000 | 23,100,000 | ||
Stockholders' Equity Attributable to Parent | (69,400,000) | (122,300,000) | (110,700,000) | (145,400,000) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,200,000 | 1,200,000 | ||
Tax effect | (200,000) | (300,000) | ||
Prior to reclassification | (500,000) | (200,000) | ||
Other Comprehensive Income (Loss), before Tax | 700,000 | 1,000,000 | ||
Other Comprehensive Income (Loss), Tax | (200,000) | (300,000) | ||
Net activity | 500,000 | 700,000 | ||
Stockholders' Equity Attributable to Parent | (39,700,000) | (43,600,000) | (40,200,000) | (44,300,000) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3,400,000 | (900,000) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (2,200,000) | 2,100,000 | ||
Prior to reclassification | 37,800,000 | 18,700,000 | ||
Other Comprehensive Income (Loss), before Tax | 35,600,000 | 20,800,000 | ||
Other Comprehensive Income (Loss), Tax | (1,300,000) | (400,000) | ||
Net activity | 36,900,000 | 21,200,000 | ||
Stockholders' Equity Attributable to Parent | (143,300,000) | (161,300,000) | (180,200,000) | (182,500,000) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax | 1,000,000 | 900,000 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax effect | 800,000 | (300,000) | ||
Foreign Exchange Forward [Member] | Available-for-sale Securities and Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax | (2,200,000) | (200,000) | ||
Net activity | (1,700,000) | (200,000) | ||
Stockholders' Equity Attributable to Parent | (2,000,000) | 0 | (300,000) | 200,000 |
Foreign Exchange Forward [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax | 500,000 | 0 | ||
Interest Rate Swap [Member] | Available-for-sale Securities and Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax | 5,400,000 | 1,700,000 | ||
Net activity | 4,200,000 | 1,300,000 | ||
Stockholders' Equity Attributable to Parent | (31,500,000) | (3,900,000) | (35,700,000) | (5,200,000) |
Interest Rate Swap [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2,600,000 | (800,000) | ||
Tax effect | 600,000 | (200,000) | ||
Net of tax | 2,000,000 | (600,000) | ||
Prior to reclassification | 8,000,000 | 900,000 | ||
Other Comprehensive Income (Loss), Tax | (1,200,000) | (400,000) | ||
Foreign Exchange | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 800,000 | (100,000) | ||
Tax effect | 200,000 | (100,000) | ||
Net of tax | 600,000 | 0 | ||
Prior to reclassification | (1,400,000) | (300,000) | ||
Currency Swap [Member] | Available-for-sale Securities and Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | $ 6,700,000 | $ 12,200,000 | ||
Currency Swap [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||
Prior to reclassification | (9,600,000) | (4,800,000) | ||
Other Comprehensive Income (Loss), Tax | 2,200,000 | 1,100,000 | ||
Foreign Exchange Contract [Member] | Available-for-sale Securities and Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax | (9,600,000) | (4,800,000) | ||
Net activity | (7,400,000) | (3,700,000) | ||
Stockholders' Equity Attributable to Parent | $ (700,000) | $ 8,500,000 |
Special Charges (Narrative) (De
Special Charges (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Special charges | $ 27,100,000 | $ 7,800,000 |
Restructuring charges | 20,000,000 | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 3,100,000 | 3,200,000 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 22,700,000 | |
Site Consolidation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 500,000 | |
Global Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | $ 1,300,000 | $ 4,100,000 |
Special Charges (Schedule of Re
Special Charges (Schedule of Restructuring Activity) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | $ 11,300,000 | |
Expenses | 20,000,000 | |
Cash payments | (9,700,000) | |
Restructuring Reserve, Accrual Adjustment | (100,000) | |
Ending Balance | 21,500,000 | |
Special charges | 27,100,000 | $ 7,800,000 |
Global Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 1,300,000 | 4,100,000 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | 3,100,000 | $ 3,200,000 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Special charges | $ 22,700,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective tax rate | 17.90% | 6.60% |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 8.4 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ 58.8 | $ 39.8 |
Net income attributable to common shareholders per common share - Basic (usd per share) | $ 0.88 | $ 0.60 |
Net income attributable to common shareholders per common share - Diluted (usd per share) | $ 0.88 | $ 0.59 |
Average Common Shares Outstanding - Basic (in shares) | 66,497 | 66,792 |
Add potential effect of exercise of stock options and other unvested equity awards (in shares) | 428 | 537 |
Average shares outstanding - Diluted (in shares) | 66,925 | 67,329 |
Shares with anti-dilutive effect excluded from the computation of Diluted EPS (in shares) | 639 | 291 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | ||
Share-based Payment Arrangement, Noncash Expense | $ 11 | $ 8.3 |
Common Stock Common Stock (Shar
Common Stock Common Stock (Share Repurchase Program) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||
Payments for Repurchase of Common Stock | $ (47.4) | $ 0 |
Common Stock Common Stock (Narr
Common Stock Common Stock (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ (8.3) | $ (15.1) |
Payments for Repurchase of Common Stock | $ (47.4) | $ 0 |
Guarantees (Details)
Guarantees (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance at beginning of period | $ 30.8 |
Standard Product Warranty Accrual, Increase for Warranties Issued | 5.4 |
Standard Product Warranty Accrual, Decrease for Payments | 6.4 |
Balance at end of period | $ 30 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 741,100,000 | $ 685,000,000 |
Special charges | 27,100,000 | 7,800,000 |
Operating profit | 82,400,000 | 78,900,000 |
Interest expense | 17,800,000 | 19,400,000 |
Gain (Loss) on Extinguishment of Debt | 0 | (15,600,000) |
Investment income (expense) and other, net | 7,000,000 | (1,300,000) |
Income Before Income Taxes | 71,600,000 | 42,600,000 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-allocated operating costs, administrative and other | 77,200,000 | 58,000,000 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 741,100,000 | 685,000,000 |
Operating Segments [Member] | Patient Support Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 377,400,000 | 344,200,000 |
Divisional Income | 87,300,000 | 58,400,000 |
Operating Segments [Member] | Front Line Care [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 269,900,000 | 254,600,000 |
Divisional Income | 81,900,000 | 73,500,000 |
Operating Segments [Member] | Surgical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 93,800,000 | 86,200,000 |
Divisional Income | 17,500,000 | 12,800,000 |
Geographic Distribution, Domestic [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 487,600,000 | 481,800,000 |
Geographic Distribution, Domestic [Member] | Operating Segments [Member] | Patient Support Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 268,900,000 | 266,600,000 |
Geographic Distribution, Domestic [Member] | Operating Segments [Member] | Front Line Care [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 184,500,000 | 178,100,000 |
Geographic Distribution, Domestic [Member] | Operating Segments [Member] | Surgical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 34,200,000 | 37,100,000 |
Non-US [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 253,500,000 | 203,200,000 |
Non-US [Member] | Operating Segments [Member] | Patient Support Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 108,500,000 | 77,600,000 |
Non-US [Member] | Operating Segments [Member] | Front Line Care [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 85,400,000 | 76,500,000 |
Non-US [Member] | Operating Segments [Member] | Surgical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 59,600,000 | $ 49,100,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2020USD ($) |
Uninsured Risk [Member] | Maximum [Member] | |
Loss Contingencies [Line Items] | |
Deductibles and self-insured retentions | $ 1 |
Uncategorized Items - hrc-20201
Label | Element | Value |
Common Stock [Member] | ||
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 88,457,634 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 88,457,634 |