Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2019 | Apr. 23, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | OSHKOSH CORP | |
Entity Central Index Key | 0000775158 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 69,915,542 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,990.2 | $ 1,886.4 | $ 3,793.6 | $ 3,472.7 |
Cost of sales | 1,632.3 | 1,550.4 | 3,107.4 | 2,893.7 |
Gross income | 357.9 | 336 | 686.2 | 579 |
Operating expenses: | ||||
Selling, general and administrative | 173 | 170.4 | 331.6 | 328.3 |
Amortization of purchased intangibles | 9.3 | 9.2 | 18.5 | 19.8 |
Total operating expenses | 182.3 | 179.6 | 350.1 | 348.1 |
Operating income | 175.6 | 156.4 | 336.1 | 230.9 |
Other income (expense): | ||||
Interest expense | (13.7) | (16.1) | (27.4) | (31.5) |
Interest income | 2 | 8.1 | 4.2 | 9.8 |
Miscellaneous, net | 1.2 | (1.3) | 0 | (1.5) |
Income before income taxes and earnings (losses) of unconsolidated affiliates | 165.1 | 147.1 | 312.9 | 207.7 |
Provision for income taxes | 36.2 | 36.2 | 75.9 | 40.9 |
Income before earnings (losses) of unconsolidated affiliates | 128.9 | 110.9 | 237 | 166.8 |
Equity in earnings (losses) of unconsolidated affiliates | (0.4) | (0.1) | 0.5 | 0.4 |
Net income | $ 128.5 | $ 110.8 | $ 237.5 | $ 167.2 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 1.84 | $ 1.49 | $ 3.37 | $ 2.24 |
Diluted earnings per share (in dollars per share) | 1.82 | 1.47 | 3.33 | 2.21 |
Cash dividends declared per share on common stock (in dollars per share) | $ 0.27 | $ 0.24 | $ 0.54 | $ 0.48 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 128.5 | $ 110.8 | $ 237.5 | $ 167.2 |
Other comprehensive income (loss), net of tax: | ||||
Employee pension and postretirement benefits | (3.8) | 0.5 | (3.8) | 1 |
Currency translation adjustments | (6.9) | 16.5 | (15.7) | 18.6 |
Change in fair value of derivative instruments | (0.2) | 0.3 | (0.2) | 0.3 |
Total other comprehensive income (loss), net of tax | (10.9) | 17.3 | (19.7) | 19.9 |
Comprehensive income | $ 117.6 | $ 128.1 | $ 217.8 | $ 187.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 321.9 | $ 454.6 |
Receivables, net | 1,077.8 | 1,521.6 |
Unbilled receivables, net | 384.5 | 0 |
Inventories, net | 1,503.5 | 1,227.7 |
Other current assets | 82 | 66 |
Total current assets | 3,369.7 | 3,269.9 |
Property, plant and equipment, net | 504 | 481.1 |
Goodwill | 1,001.6 | 1,007.9 |
Purchased intangible assets, net | 450.9 | 469.4 |
Other long-term assets | 143.2 | 65.9 |
Total assets | 5,469.4 | 5,294.2 |
Current liabilities: | ||
Revolving credit facilities and current maturities of long-term debt | 0 | 0 |
Accounts payable | 825.4 | 776.9 |
Customer advances | 497.8 | 444.9 |
Payroll-related obligations | 142.5 | 192.5 |
Other current liabilities | 344.4 | 275.8 |
Total current liabilities | 1,810.1 | 1,690.1 |
Long-term debt, less current maturities | 818.5 | 818 |
Other long-term liabilities | 341.1 | 272.6 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred Stock ($0.01 par value; 2,000,000 shares authorized; none issued and outstanding) | 0 | 0 |
Common Stock ($0.01 par value; 300,000,000 shares authorized; 75,101,465 shares issued) | 0.7 | 0.7 |
Additional paid-in capital | 798.1 | 814.8 |
Retained earnings | 2,200.3 | 2,007.9 |
Accumulated other comprehensive loss | (135.6) | (106.8) |
Common Stock in treasury, at cost (5,202,448 and 2,730,707 shares, respectively) | (363.8) | (203.1) |
Total shareholders’ equity | 2,499.7 | 2,513.5 |
Total liabilities and shareholders’ equity | $ 5,469.4 | $ 5,294.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Sep. 30, 2018 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock, shares issued | 75,101,465 | 75,101,465 |
Common Stock in treasury, shares | 5,202,448 | 2,730,707 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury, at Cost |
Balance at Sep. 30, 2017 | $ 2,307.4 | $ 0.9 | $ 802.2 | $ 2,399.8 | $ (125) | $ (770.5) |
Changes in Equity | ||||||
Net income | 167.2 | 167.2 | ||||
Employee pension and postretirement benefits, net of tax | 1 | 1 | ||||
Currency translation adjustments | 18.6 | 18.6 | ||||
Cash dividends | (35.9) | (35.9) | ||||
Repurchases of Common Stock | (128.7) | (128.7) | ||||
Exercise of stock options | 12.5 | (3.1) | 15.6 | |||
Stock-based compensation expense | 13.8 | 13.8 | ||||
Payment of stock-based restricted and performance shares | 0 | (8.9) | 8.9 | |||
Shares tendered for taxes on stock-based compensation | (7.5) | (7.5) | ||||
Other | 1.2 | 0.3 | 0.3 | 0.6 | ||
Balance at Mar. 31, 2018 | 2,349.6 | 0.9 | 804.3 | 2,531.1 | (105.1) | (881.6) |
Balance at Dec. 31, 2017 | 2,293.4 | 0.9 | 799.3 | 2,438.2 | (122.4) | (822.6) |
Changes in Equity | ||||||
Net income | 110.8 | 110.8 | ||||
Employee pension and postretirement benefits, net of tax | 0.5 | 0.5 | ||||
Currency translation adjustments | 16.5 | 16.5 | ||||
Cash dividends | (17.9) | (17.9) | ||||
Repurchases of Common Stock | (65) | (65) | ||||
Exercise of stock options | 3.9 | (1.3) | 5.2 | |||
Stock-based compensation expense | 6.3 | 6.3 | ||||
Payment of stock-based restricted and performance shares | 0 | (0.3) | 0.3 | |||
Shares tendered for taxes on stock-based compensation | (0.1) | (0.1) | ||||
Other | 1.2 | 0.3 | 0.3 | 0.6 | ||
Balance at Mar. 31, 2018 | 2,349.6 | 0.9 | 804.3 | 2,531.1 | (105.1) | (881.6) |
Balance at Sep. 30, 2018 | 2,513.5 | 0.7 | 814.8 | 2,007.9 | (106.8) | (203.1) |
Changes in Equity | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2014-09 [Member] | (60.4) | (60.4) | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-16 [Member] | 44.5 | 44.5 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2018-02 [Member] | 0 | 9.1 | (9.1) | |||
Balance at Oct. 01, 2018 | 2,497.6 | 0.7 | 814.8 | 2,001.1 | (115.9) | (203.1) |
Balance at Sep. 30, 2018 | 2,513.5 | 0.7 | 814.8 | 2,007.9 | (106.8) | (203.1) |
Changes in Equity | ||||||
Net income | 237.5 | 237.5 | ||||
Employee pension and postretirement benefits, net of tax | (3.8) | (3.8) | ||||
Currency translation adjustments | (15.7) | (15.7) | ||||
Cash dividends | (38.3) | (38.3) | ||||
Repurchases of Common Stock | (195) | (195) | ||||
Exercise of stock options | 8.6 | (7.4) | 16 | |||
Stock-based compensation expense | 15.3 | 15.3 | ||||
Payment of stock-based restricted and performance shares | 0 | (24.2) | 24.2 | |||
Shares tendered for taxes on stock-based compensation | (7.3) | (7.3) | ||||
Other | 0.8 | (0.4) | (0.2) | 1.4 | ||
Balance at Mar. 31, 2019 | 2,499.7 | 0.7 | 798.1 | 2,200.3 | (135.6) | (363.8) |
Balance at Dec. 31, 2018 | 2,411.2 | 0.7 | 797.6 | 2,090.8 | (124.7) | (353.2) |
Changes in Equity | ||||||
Net income | 128.5 | 128.5 | ||||
Employee pension and postretirement benefits, net of tax | (3.8) | (3.8) | ||||
Currency translation adjustments | (6.9) | (6.9) | ||||
Cash dividends | (19) | (19) | ||||
Repurchases of Common Stock | (25) | (25) | ||||
Exercise of stock options | 6.9 | (5.6) | 12.5 | |||
Stock-based compensation expense | 7.4 | 7.4 | ||||
Payment of stock-based restricted and performance shares | 0 | (0.9) | 0.9 | |||
Shares tendered for taxes on stock-based compensation | (0.4) | (0.4) | ||||
Other | 0.8 | (0.4) | (0.2) | 1.4 | ||
Balance at Mar. 31, 2019 | $ 2,499.7 | $ 0.7 | $ 798.1 | $ 2,200.3 | $ (135.6) | $ (363.8) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Employee pension and postretirement benefits, net of tax | $ 0.9 | $ 0.2 | $ 1 | $ 0.4 |
Cash dividends declared per share on common stock (in dollars per share) | $ 0.27 | $ 0.24 | $ 0.54 | $ 0.48 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income | $ 237.5 | $ 167.2 |
Depreciation and amortization | 57.1 | 61.3 |
Stock-based compensation expense | 15.3 | 13.8 |
Deferred income taxes | 3.4 | (21.8) |
(Gain) loss on sale of assets | 0.7 | (0.6) |
Foreign currency transaction (gains) losses | 1.7 | (0.7) |
Other non-cash adjustments | (0.5) | 1.1 |
Changes in operating assets and liabilities | (162.2) | (176.4) |
Net cash provided by operating activities | 153 | 43.9 |
Investing activities: | ||
Additions to property, plant and equipment | (50.6) | (37.9) |
Additions to equipment held for rental | (12.2) | (2.9) |
Proceeds from sale of equipment held for rental | 6.6 | 4.4 |
Other investing activities | (0.1) | (0.5) |
Net cash used by investing activities | (56.3) | (36.9) |
Financing activities: | ||
Proceeds from issuance of debt (original maturities greater than three months) | 0 | 13.1 |
Repayments of debt (original maturities greater than three months) | 0 | (17.9) |
Repurchases of Common Stock | (202.3) | (136.2) |
Dividends paid | (38.3) | (35.9) |
Proceeds from exercise of stock options | 8.6 | 12.5 |
Net cash used by financing activities | (232) | (164.4) |
Effect of exchange rate changes on cash | 2.6 | (1.7) |
Decrease in cash and cash equivalents | (132.7) | (159.1) |
Cash and cash equivalents at beginning of period | 454.6 | 447 |
Cash and cash equivalents at end of period | 321.9 | 287.9 |
Supplemental disclosures: | ||
Cash paid for interest | 28.3 | 29.7 |
Cash paid for income taxes | $ 47.5 | $ 24 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (which include normal recurring adjustments, unless otherwise noted) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. These Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K of Oshkosh Corporation for the year ended September 30, 2018 . The interim results are not necessarily indicative of results for the full year. “Oshkosh” refers to Oshkosh Corporation not including its subsidiaries and “the Company” refers to Oshkosh Corporation and its subsidiaries. Certain reclassifications have been made to the fiscal 2018 financial statements to conform to the fiscal 2019 presentation. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance (Accounting Standard Codification (ASC) 606) to provide a single, comprehensive revenue recognition model for all contracts with customers, Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) . This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard supersedes all existing U.S. GAAP guidance on revenue recognition and is expected to require the use of more judgment and result in additional disclosures. The Company adopted the new guidance on October 1, 2018 following the modified retrospective method of transition. The Company applied the new guidance to contracts that were not completed at the date of initial adoption, resulting in a reduction of retained earnings by $60.4 million , after-tax, at that date. For contracts that were modified prior to October 1, 2018, the Company considered the aggregate impact of all modifications that occurred prior to the effective date of the standard for purposes of identifying performance obligations, determining transaction price and allocating transaction price to performance obligations. Prior period comparative information was not recast to reflect the impact of the new guidance and therefore continues to be reported under the accounting guidance in effect during those periods. Under the new guidance, the majority of the Company’s contracts with the U.S. government follow an over time model that uses the cost-to-cost method to measure performance. Previously the Company had recognized revenue from these contracts on the percentage of completion method using either the cost-to-cost or the units-complete method. In addition, the new guidance changes the definition of a contract, resulting in the Company no longer considering unexercised government options in the measurement of completion and profitability. The new guidance is expected to result in additional volatility in the Company’s earnings based upon the date of receipt of contract orders. In the fire & emergency segment, the point in time at which “control transfers” to the customer differs from when the Company no longer maintains “risk of loss”, which under the new guidance delays the point in time at which the Company will recognize revenue on contracts for which the end user, rather than the Company’s dealer, is the Company’s customer. In the commercial segment, the Company builds certain units on chassis owned by the end customer. Revenue related to these arrangements moved from a point in time revenue recognition model to an over time model that is measured using the cost-to-cost method of percentage-of-completion as the Company is enhancing a customer asset. In addition, under the new guidance, the Company defers revenue, including the estimated profit, for service warranties instead of recording a liability for estimated costs. See Note 3 of the Notes to Condensed Consolidated Financial Statements for additional information regarding the Company’s revenue recognition method under the new revenue guidance. The cumulative effect of initially applying the new revenue recognition guidance to the Company’s Condensed Consolidated Financial Statements as of October 1, 2018 was as follows (in millions): Balance as of September 30, 2018 Cumulative Impact from Adopting New Revenue Standard Balance as of October 1, 2018 Assets Receivables, net $ 1,521.6 $ (248.9 ) $ 1,272.7 Unbilled receivables, net — 309.7 309.7 Inventories, net 1,227.7 (75.9 ) 1,151.8 Other current assets 66.0 0.3 66.3 Total current assets 3,269.9 (14.8 ) 3,255.1 Other long-term assets 65.9 18.7 84.6 Total assets 5,294.2 3.9 5,298.1 Liabilities and Shareholders ’ Equity Customer advances $ 444.9 $ 27.2 $ 472.1 Other current liabilities 275.8 6.4 282.2 Total current liabilities 1,690.1 33.6 1,723.7 Other long-term liabilities 272.6 30.7 303.3 Retained earnings 2,007.9 (60.4 ) 1,947.5 Total shareholders ’ equity 2,513.5 (60.4 ) 2,453.1 Total liabilities and shareholders ’ equity 5,294.2 3.9 5,298.1 The impact from adopting the new revenue recognition guidance on the Company’s Condensed Consolidated Financial Statements as of and for the three and six months ended March 31, 2019 was as follows (in millions): Three Months Ended March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Statement of Income Net sales $ 1,990.2 $ 1,974.7 $ 15.5 Cost of sales 1,632.3 1,623.6 8.7 Gross income $ 357.9 $ 351.1 $ 6.8 Operating income $ 175.6 $ 168.8 $ 6.8 Income before income taxes and earnings of unconsolidated affiliates $ 165.1 $ 158.3 $ 6.8 Provision for income taxes 36.2 34.6 1.6 Income before earnings of unconsolidated affiliates 128.9 123.7 5.2 Equity in earnings of unconsolidated affiliates (0.4 ) (0.4 ) — Net income $ 128.5 $ 123.3 $ 5.2 Earnings per share: Basic $ 1.84 $ 1.76 $ 0.08 Diluted 1.82 1.74 0.08 Six Months Ended March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Statement of Income Net sales $ 3,793.6 $ 3,740.0 $ 53.6 Cost of sales 3,107.4 3,085.8 21.6 Gross income $ 686.2 $ 654.2 $ 32.0 Operating income $ 336.1 $ 304.1 $ 32.0 Income before income taxes and earnings of unconsolidated affiliates $ 312.9 $ 280.9 $ 32.0 Provision for income taxes 75.9 68.3 7.6 Income before earnings of unconsolidated affiliates 237.0 212.6 24.4 Equity in earnings of unconsolidated affiliates 0.5 0.5 — Net income $ 237.5 $ 213.1 $ 24.4 Earnings per share: Basic $ 3.37 $ 3.02 $ 0.35 Diluted 3.33 2.99 0.34 March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Balance Sheet Assets Receivables, net $ 1,077.8 $ 1,376.0 $ (298.2 ) Unbilled receivables, net 384.5 — 384.5 Inventories, net 1,503.5 1,572.4 (68.9 ) Other current assets 82.0 82.0 — Total current assets 3,369.7 3,352.3 17.4 Other long-term assets 143.2 132.1 11.1 Total assets 5,469.4 5,440.9 28.5 Liabilities and Shareholders ’ Equity Customer advances $ 497.8 $ 491.6 $ 6.2 Other current liabilities 344.4 321.9 22.5 Total current liabilities 1,810.1 1,781.4 28.7 Other long-term liabilities 341.1 305.3 35.8 Retained earnings 2,200.3 2,236.3 (36.0 ) Total shareholders ’ equity 2,499.7 2,535.7 (36.0 ) Total liabilities and shareholders ’ equity 5,469.4 5,440.9 28.5 In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory . The standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset when the transfer occurs as opposed to when the asset is transferred to an outside party. The standard does not apply to intra-entity transfers of inventory. The Company adopted ASU 2016-16 on October 1, 2018 following the modified retrospective approach through a cumulative effect adjustment, which resulted in an increase to retained earnings of $44.5 million . In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The standard requires that an entity report the service cost component of net periodic pension and postretirement cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The remaining components of net benefit costs are required to be presented in the income statement separately from the service component and outside a subtotal of income from operations. The amendment further allows only the service cost component of net periodic pension and postretirement costs to be eligible for capitalization, when applicable. The Company adopted ASU 2017-07 on October 1, 2018. The impact of this standard was a reclassification of $0.5 million and $1.2 million of other components of net periodic pension cost to “Miscellaneous, net” on the Condensed Consolidated Statement of Income for the three and six months ended March 31, 2018 , respectively. The Company utilized a practical expedient included in the ASU which allowed the Company to use amounts previously disclosed in its Employee Benefit Plans footnote for the prior period as the estimation basis for applying the required retrospective presentation requirements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act enacted in the United States in December 2017 (the “Tax Reform Act”), thereby eliminating the resulting stranded tax effect. The Company adopted ASU 2018-02 on October 1, 2018. The Company increased retained earnings by $9.1 million upon adoption of ASU 2018-02 to eliminate the tax effects stranded in accumulated other comprehensive income resulting from the Tax Reform Act. Standards not yet adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and has since issued amendments to this standard, which requires lessees to reflect most leases on their balance sheet as lease liabilities with corresponding right-of-use assets, while leaving presentation of lease expense in the statement of income largely unchanged. The standard also eliminates the real-estate specific provisions that exist under current U.S. GAAP and modifies the classification criteria and accounting lessors must apply to sales-type and direct financing leases. Entities have the option to adopt the new guidance using a modified retrospective approach through a cumulative effect adjustment to retained earnings applied either to the beginning of the earliest period presented or the beginning of the period of adoption. In addition, the new guidance provides for certain practical expedients. The Company will be required to adopt ASU 2016-02 and related amendments to the standard as of October 1, 2019. The Company is currently evaluating its lease landscape to assess the effect of the new guidance on the Company’s consolidated financial statements. It is also focused on designing new processes, controls and a system solution to support the Company’s implementation and compliance with the requirements of the new standard. The Company plans to adopt the new guidance effective October 1, 2019 using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. The Company will be required to adopt ASU 2016-13 as of October 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment . The standard simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The standard also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The Company will be required to adopt ASU 2017-04 as of October 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-04 on the Company’s consolidated financial statements. |
Sales and Revenue Recognition S
Sales and Revenue Recognition Sales and Revenue Recognition | 6 Months Ended |
Mar. 31, 2019 | |
Sales and Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition Revenue is recognized when control of the goods or services promised under a contract are transferred to the customer either at a point in time (e.g., upon delivery) or over time (e.g., as the Company performs under the contract) in an amount that reflects the consideration to which the Company expects to be entitled in exchange for the goods or services. The Company accounts for a contract when it has approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has commercial substance and collectability of consideration is probable. If collectability is not probable, the sale is deferred until collection becomes probable or payment is received. Contracts are reviewed to determine whether there is one or multiple performance obligations. A performance obligation is a promise to transfer a distinct good or service to a customer and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected consideration (e.g., the transaction price) is allocated to each performance obligation identified in the contract based on the relative standalone selling price of each performance obligation, which are determinable based on observable standalone selling prices or are estimated using an expected cost plus a margin approach. Revenue is then recognized for the transaction price allocated to the performance obligation when control of the promised goods or services underlying the performance obligation is transferred. When the amount of consideration allocated to a performance obligation through this process differs from the invoiced amount, it results in a contract asset or liability. The identification of performance obligations within a contract requires significant judgment. The following is a description of the primary activities from which the Company generates revenue. Access equipment, Fire & emergency and Commercial segments revenue The Company derives revenue in the access equipment, fire & emergency and commercial segments (non-defense segments) through the sale of machinery, vehicles and related aftermarket parts and services. Customers include distributors and end-users. Contracts with customers generally exist upon the approval of a quote and/or purchase order by the Company and customer. Each contract is also assessed at inception to determine whether it is necessary to combine the contract with other contracts. The Company’s non-defense segments offer various customer incentives within contracts, such as sales and marketing rebates, volume discounts and interest subsidies, some of which are variable and therefore must be estimated by the Company. Transaction prices may also be impacted by rights of return, primarily within the aftermarket parts business, which requires the Company to record a liability and asset representing its rights and obligations in the event a return occurs. The estimated return liability is based on historical experience rates. Revenue for performance obligations consisting of machinery, vehicle and after-market parts (together, “product”) is recognized when the customer obtains control of the product, which typically occurs at a point in time, based on the shipping terms within the contract. In the commercial segment, concrete mixer and refuse collection products are sold on both Company owned chassis and customer owned chassis. When performing work on a customer owned chassis, revenue is recognized over time based on the cost-to-cost method, as the Company is enhancing a customer owned asset. All non-defense segments offer aftermarket services related to their respective products such as repair, refurbishment and maintenance (together, “services”). The Company generally recognizes revenue on service performance obligations over time using the method that results in the most faithful depiction of transfer of control to the customer. Non-defense segments also offer extended warranty coverage as an option on most products. The Company considers extended warranties to be service-type warranties and therefore a performance obligation. Service-type warranties differ from the Company’s standard, or assurance-type warranties, as they are generally separately priced and negotiated as part of the contract and/or provide additional coverage beyond what the customer or customer group that purchases the product would receive under an assurance-type warranty. The Company has concluded that its extended warranties are stand-ready obligations to perform and therefore recognizes revenue ratably over the coverage period. The Company also provides a standard warranty on its products and services at no additional cost to its customers in most instances. See Note 13 of the Notes to Condensed Consolidated Financial Statements for further discussion on product assurance warranties. Defense segment revenue The majority of the Company’s defense segment net sales are derived through long-term contracts with the U.S. government to design, develop, manufacture or modify defense products. These contracts, which also include those under the U.S. Government-sponsored Foreign Military Sales (FMS) program, accounted for approximately 90% of defense segment revenue in fiscal 2018. Contracts with defense segment customers are generally fixed-price or cost-reimbursement type contracts. Under fixed-price contracts, the price paid to the Company is generally not adjusted to reflect the Company’s actual costs except for costs incurred as a result of contract modifications. Certain fixed-price contracts include an incentive component under which the price paid to the Company is subject to adjustment based on the actual costs incurred. Under cost-reimbursement contracts, the price paid to the Company is determined based on the allowable costs incurred to perform plus a fee. The fee component of cost-reimbursement contracts can be fixed based on negotiations at contract inception or can vary based on performance against target costs established at the time of contract inception. The Company also designs, develops, manufactures or modifies defense products for international customers through Direct Commercial Sale contracts. The defense segment supports its products through the sale of aftermarket parts and services. Aftermarket contracts can range from long-term supply agreements to ad hoc purchase orders for replacement parts. The Company evaluates the promised goods and services within defense segment contracts at inception to identify performance obligations. The goods and services in defense segment contracts are typically not distinct from one another as they are generally customized and have complex inter-relationships and the Company is responsible for overall management of the contract. As a result, defense segment contracts are typically accounted for as a single performance obligation. The defense segment provides standard warranties for its products for periods that typically range from one to two years. These assurance-type warranties typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation. See Note 13 of the Notes to Condensed Consolidated Financial Statements for further discussion on product assurance warranties. The Company determines the transaction price for each contract at inception based on the consideration that it expects to receive for the goods and services promised under the contract. This determination is made based on the Company’s current rights, excluding the impact of any subsequent contract modifications (including unexercised options) until they become legally enforceable. Contract modifications frequently occur within the defense segment. The Company evaluates each modification to identify changes that impact price or scope of its contracts, which are then assessed to determine if the modification should be accounted for as an adjustment to an existing contract or as a separate contract. Contract modifications within the defense segment are generally accounted for as a cumulative effect adjustment to existing contracts as they are not distinct from the goods and services within the existing contract. For defense segment contracts that include a variable component of the sale price, the Company estimates variable consideration. Variable consideration is included within the contract’s transaction price to the extent it is probable that a significant reversal of revenue will not occur. The Company evaluates its estimates of variable consideration on an ongoing basis and any adjustments are accounted for as changes in estimates in the period identified. Common forms of variable consideration within defense segment contracts include cost reimbursement contracts that contain incentives, customer reimbursement rights and regulatory or customer negotiated penalties tied to contract performance. The Company recognizes revenue on defense segment contracts as performance obligations are satisfied and control of the underlying goods and services is transferred to the customer. In making this evaluation, the defense segment considers contract terms, payment terms and whether there is an alternative future use for the good or service. Through this process the Company has concluded that substantially all of the defense segment’s performance obligations, including a majority of performance obligations for aftermarket goods and services, transfer to the customer continuously during the contract term and therefore revenue is recognized over time. For U.S. government and FMS program contracts, this determination is supported by the inclusion of clauses within contracts that allow the customer to terminate a contract at its convenience. When the clause is present, the Company is entitled to compensation for the work performed through the date of notification at a price that reflects actual costs plus a reasonable margin in exchange for transferring its work in process to the customer. For contracts that do not contain termination for convenience provisions, the Company is generally able to support the continuous transfer of control determination as a result of the customized nature of its goods and services and contractual rights. The defense segment recognizes revenue on its performance obligations that are satisfied over time by measuring progress using the cost-to-cost method of percentage-of-completion because it best depicts the transfer of control to the customer. Under the cost-to-cost method of percentage-of-completion, the defense segment measures progress based on the ratio of costs incurred to date to total estimated costs for the performance obligation. The Company recognizes changes in estimated sales or costs and the resulting profit or loss on a cumulative basis. Cumulative estimate-at completion (EAC) adjustments represent the cumulative effect of the changes on prior periods. If a loss is expected on a performance obligation, the complete estimated loss is recorded in the period in which the loss is identified. For contracts with only aftermarket parts performance obligations, revenue is recognized at the time the parts are physically committed to the order or based on shipping terms depending on whether the contracts contain a termination for convenience clause. For performance obligations consisting solely of services, revenue is recognized either by using the cost-to-cost method of percentage-of-completion method or as the Company has the right to bill the customer in instances that billing rights approximates timing of transfer of control to the customer. There is significant judgment involved in estimating sales and costs within the defense segment. Each contract is evaluated at contract inception to identify risks and estimate revenue and costs. In performing this evaluation, the defense segment considers risks of contract performance such as technical requirements, schedule, duration and key contract dependencies. These considerations are then factored into the Company’s estimated revenue and costs. Preliminary contract estimates are subject to change throughout the duration of the contract as additional information becomes available that impacts risks and estimated revenue and costs. In addition, as contract modifications (e.g., new orders) are received, the additional units are factored into the overall contract estimate of costs and transaction price. Contract adjustments in the defense segment increased net sales, operating income, net income and diluted earnings per share by $18.0 million , $11.3 million , $8.7 million and $0.13 per share, respectively, during the three months ended March 31, 2019 and $49.6 million , $41.6 million , $31.9 million and $0.45 per share, respectively, during the six months ended March 31, 2019 . Disaggregation of Revenue The table below presents consolidated net sales disaggregated by segment and timing of revenue recognition (in millions): Three Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Corporate and Intersegment Eliminations Total Point in time $ 968.9 $ 1.4 $ 274.3 $ 148.1 $ (5.2 ) $ 1,387.5 Over time 18.7 485.3 8.9 89.8 — 602.7 $ 987.6 $ 486.7 $ 283.2 $ 237.9 $ (5.2 ) $ 1,990.2 Six Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Corporate and Intersegment Eliminations Total Point in time $ 1,776.7 $ 1.7 $ 565.2 $ 269.3 $ (10.1 ) $ 2,602.8 Over time 37.4 949.1 13.5 190.8 — 1,190.8 $ 1,814.1 $ 950.8 $ 578.7 $ 460.1 $ (10.1 ) $ 3,793.6 See Note 19 of the Notes to Condensed Consolidated Financial Statements for further disaggregated sales information. Contract Assets and Contract Liabilities The Company is generally entitled to bill its customers upon satisfaction of its performance obligations, with the exception of its long-term contracts in the defense segment which typically allow for billing upon acceptance of the finished good, advance payments from customers primarily within the fire & emergency segment and extended warranties that are usually billed in advance of the warranty coverage period. Customer payment is usually received shortly after billing and payment terms generally do not exceed one year. With the exception of the fire & emergency segment, the Company’s contracts typically do not contain a significant financing component. In the fire & emergency segment, customers earn interest on customer advances at a rate determined in a separate financing transaction between the fire & emergency segment and the customer at contract inception. Interest due on customer advances of $3.7 million and $7.3 million was recorded in “Interest expense” in the Condensed Consolidated Statements of Income for the three and six months ended March 31, 2019 , respectively. Interest due on customer advances of $4.8 million and $9.4 million was recorded in “Interest expense” in the Condensed Consolidated Statements of Income for the three and six months ended March 31, 2018 , respectively. The timing of billing does not always match the timing of revenue recognition. In instances where a customer pays consideration in advance or when the Company is entitled to bill a customer in advance of recognizing the related revenue, the Company records a contract liability within “Customer advances”, “Other current liabilities” or “Other long-term liabilities” in the Condensed Consolidated Balance Sheet. Total contract liabilities were $608.8 million as of March 31, 2019 , of which $497.8 million , $62.8 million and $48.2 million was included in “Customer advances”, “Other current liabilities” and “Other long-term liabilities”, respectively. Total contract liabilities were $594.4 million as of October 1, 2018, of which $472.1 million , $75.0 million and $47.3 million was included in “Customer advances”, “Other current liabilities” and “Other long-term liabilities”, respectively. The Company reduces contract liabilities when revenue is recognized. The Company recognized $237.4 million and $473.4 million of revenue that was recorded as a contract liability as of the beginning of the period during the three and six months ended March 31, 2019 , respectively. In instances where the Company recognizes revenue prior to having an unconditional right to payment, the Company records a contract asset within “Unbilled receivables, net” in the Condensed Consolidated Balance Sheet. The Company reduces contract assets when the Company has an unconditional right to payment. The Company periodically assesses its contract assets for impairment. Contract assets and liabilities are determined on a net basis for each contract. The Company did not record any impairment losses on contracts from customers during the three or six months ended March 31, 2019 . See Note 8 of the Notes to Condensed Consolidated Financial Statements for additional information on the Company’s receivable balances. The Company offers a variety of service-type warranties, including optionally priced extended warranty programs. Outstanding balances related to service-type warranties are included within contract liabilities disclosed above. Revenue related to service warranties is deferred until after the expiration of the standard warranty period. The revenue is then recognized in income over the term of the extended warranty period in proportion to the costs that are expected to be incurred. Changes in the Company’s service-type warranties were as follows (in millions): Six Months Ended 2019 2018 Balance at beginning of period $ 30.7 $ 30.8 Adoption of ASC 606 35.7 — Deferred revenue for new service warranties 12.8 5.6 Amortization of deferred revenue (12.5 ) (5.0 ) Changes in liability for pre-existing warranties, net 0.1 (0.5 ) Foreign currency translation (0.3 ) 0.2 Balance at end of period $ 66.5 $ 31.1 Remaining Performance Obligations As of March 31, 2019 , the Company had unsatisfied performance obligations for contracts with an original duration greater than one year totaling $4.61 billion , of which $1.95 billion is expected to be satisfied and revenue recognized in the remaining six months of fiscal 2019, $2.19 billion is expected to be satisfied and revenue recognized in fiscal 2020 and $464.3 million is expected to be satisfied and revenue recognized beyond fiscal 2020. The Company has elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Practical Expedients and Policy Elections The Company has elected to apply the following practical expedients and accounting policy elections when determining revenue from contracts with customers and capitalization of related costs: • Shipping and handling costs incurred after control of the related product has transferred to the customer are considered costs to fulfill the related promise and are included in “Cost of Sales” in the Condensed Consolidated Statement of Income when incurred or when the related product revenue is recognized, whichever is earlier. • Except for the fire & emergency segment, the Company has elected to not adjust revenue for the effects of a significant finance component when the timing difference between receipt of payment and recognition of revenue is less than one year. • Sales and similar taxes that are collected from customers are excluded from the transaction price. • The Company has elected to expense incremental costs to obtain a contract when the amortization period of the related asset is expected to be less than one year. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In February 2017, the Company’s shareholders approved the 2017 Incentive Stock and Awards Plan (the “2017 Stock Plan”). The 2017 Stock Plan replaced the 2009 Incentive Stock and Awards Plan (as amended, the “2009 Stock Plan”). While no new awards will be granted under the 2009 Stock Plan or its predecessor, the 2004 Incentive Stock and Awards Plan, awards previously made under these two plans that were outstanding as of the approval date of the 2017 Stock Plan will remain outstanding and continue to be governed by the provisions of the respective stock plan under which they were issued. At March 31, 2019 , the Company had reserved 6,979,736 shares of Common Stock available for issuance to provide for the exercise of outstanding stock options and the issuance of Common Stock under incentive compensation awards, including awards issued prior to the effective date of the 2017 Stock Plan. The Company recognizes stock-based compensation expense over the requisite service period for vesting of an award, or to an employee’s eligible retirement date, if earlier and applicable. Total stock-based compensation expense, including cash-based liability awards, for the three and six months ended March 31, 2019 was $8.3 million ( $6.7 million net of tax) and $15.9 million ( $13.2 million net of tax), respectively. Total stock-based compensation expense, including cash-based liability awards, for the three and six months ended March 31, 2018 was $5.7 million ( $4.4 million net of tax) and $14.2 million ( $11.0 million net of tax), respectively. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Components of net periodic pension benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 3.0 $ 3.1 $ 6.0 $ 6.2 Interest cost 4.7 4.5 9.4 9.0 Expected return on plan assets (5.0 ) (5.1 ) (10.0 ) (10.1 ) Amortization of prior service cost 0.5 0.5 0.9 0.9 Curtailment 1.2 — 1.2 — Amortization of net actuarial loss 0.1 0.4 0.1 0.9 Net periodic benefit cost $ 4.5 $ 3.4 $ 7.6 $ 6.9 Components of net periodic other post-employment benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 0.7 $ 0.9 $ 1.5 $ 1.8 Interest cost 0.5 0.4 1.0 0.9 Amortization of prior service benefit (0.3 ) (0.3 ) (0.7 ) (0.5 ) Amortization of net actuarial gain — 0.1 (0.1 ) 0.1 Net periodic benefit cost $ 0.9 $ 1.1 $ 1.7 $ 2.3 Components of net periodic benefit cost other than service cost are included in “Miscellaneous, net” in the Condensed Consolidated Statements of Income. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $36.2 million for the three months ended March 31, 2019 , or 21.9% of pre-tax income, compared to $36.2 million , or 24.6% of pre-tax income, for the three months ended March 31, 2018 . As a result of the Tax Reform Act, results for the three months ended March 31, 2019 were subject to a federal income tax rate of 21% versus the 24.5% blended rate applicable to results for the three months ended March 31, 2018 . Results for the three months ended March 31, 2019 were favorably impacted by $0.2 million of net discrete tax benefits, including a $1.5 million benefit related to receiving tax incentives in a foreign jurisdiction and a $1.3 million charge related to remeasuring deferred tax assets and liabilities in response to a corporate tax rate change in a foreign jurisdiction. Results for the three months ended March 31, 2018 were favorably impacted by $1.1 million of net discrete tax benefits, including a $1.2 million benefit related to employee share-based payments. The Company recorded income tax expense of $75.9 million for the six months ended March 31, 2019 , or 24.3% of pre-tax income, compared to $40.9 million , or 19.7% of pre-tax income for the six months ended March 31, 2018 . Due to the Tax Reform Act, results for the six months ended March 31, 2019 were subject to a federal income tax rate of 21% versus the 24.5% blended rate applicable to results for the six months ended March 31, 2018 . Results for the six months ended March 31, 2019 were unfavorably impacted by $7.1 million of net discrete tax charges, including $6.2 million of tax charges related to uncertain tax position reserves, a $1.5 million benefit related to receiving tax incentives in a foreign jurisdiction, a $1.3 million charge related to remeasuring deferred tax assets and liabilities in response to a corporate tax rate change in a foreign jurisdiction and a $0.8 million charge related to adjustments to the repatriation tax required under the Tax Reform Act. Results for the six months ended March 31, 2018 were favorably impacted by $11.4 million of net discrete tax benefits, including $4.5 million of tax benefits related to employee share-based payments and a $6.5 million net tax benefit related to the Tax Reform Act. On December 22, 2017, the Tax Reform Act was signed into law by President Trump. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities, implementing a territorial tax system, imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries (the “Transition Tax”), and creating new taxes on certain foreign-sourced earnings. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. The U.S. Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) No. 118, which provided guidance on how to account for the effects of the Tax Reform Act under ASC 740, Income Taxes . SAB No. 118 enabled companies to record a provisional amount for the effects for the Tax Reform Act based on a reasonable estimate, subject to adjustment during a measurement period of up to one year. The Company recorded a tax benefit of $30.2 million during fiscal 2018 as a result of the remeasurement of deferred tax assets and liabilities required as a result of the Tax Reform Act, which completed the Company’s remeasurement of deferred taxes under the Tax Reform Act. To-date, the Company has recorded net total expense of $20.3 million with respect to the Transition Tax. The Company’s liability for gross unrecognized tax benefits, excluding related interest and penalties, was $90.9 million and $33.7 million as of March 31, 2019 and September 30, 2018 , respectively. Included in the Company’s March 31, 2019 liability for gross unrecognized tax benefits is a $4.4 million reserve related to the Transition Tax liability and a $53.1 million reserve recorded with respect to a temporary deferred position that the Company anticipates taking on its fiscal year 2019 federal income tax return. As of March 31, 2019 , net unrecognized tax benefits, excluding interest and penalties, of $22.9 million would affect the Company’s net income if recognized. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in the “Provision for income taxes” in the Condensed Consolidated Statements of Income. During each of the six months ended March 31, 2019 and 2018 , the Company recognized an expense of $0.6 million related to interest and penalties. At March 31, 2019 , the Company had accruals for the payment of interest and penalties of $5.8 million . During the next twelve months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce net unrecognized tax benefits by approximately $6.3 million because the Company’s tax positions are sustained on audit, the Company agrees to their disallowance or the statutes of limitations close. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding was as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Basic weighted-average common shares outstanding 70,042,761 74,519,741 70,761,437 74,685,082 Dilutive stock options and other equity-based compensation awards 714,033 977,808 675,685 1,077,722 Diluted weighted-average common shares outstanding 70,756,794 75,497,549 71,437,122 75,762,804 Options not included in the computation of diluted earnings per share attributable to common shareholders because they would have been anti-dilutive were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Stock options 608,698 254,000 775,894 257,837 |
Receivables
Receivables | 6 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following (in millions): March 31, 2019 September 30, 2018 U.S. government: Amounts billed $ 81.0 $ 156.3 Costs and profits not billed — 235.4 81.0 391.7 Other trade receivables 975.4 1,089.4 Finance receivables 11.3 11.7 Notes receivable 0.7 1.4 Other receivables 31.4 48.6 1,099.8 1,542.8 Less allowance for doubtful accounts (11.2 ) (9.9 ) $ 1,088.6 $ 1,532.9 Classification of receivables in the Condensed Consolidated Balance Sheets consisted of the following (in millions): March 31, 2019 September 30, 2018 Current receivables $ 1,077.8 $ 1,521.6 Long-term receivables 10.8 11.3 $ 1,088.6 $ 1,532.9 Due to the adoption of ASC 606, certain contracts in the defense and commercial segments are now recognized on the cost-to-cost method of percentage-of-completion. Costs and profits not billed under these contracts are now recognized as “Unbilled receivables, net” on the Company’s Condensed Consolidated Balance Sheets. Finance and notes receivable accrual status consisted of the following (in millions): Finance Receivables Notes Receivable March 31, 2019 September 30, 2018 March 31, 2019 September 30, 2018 Receivables on nonaccrual status $ 2.7 $ 10.2 $ — $ — Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 8.0 1.5 — — Allowance for doubtful accounts — — — — Receivables subject to specific reserves 3.3 10.2 0.7 1.4 Allowance for doubtful accounts (2.4 ) (2.8 ) — — Finance Receivables: Finance receivables represent sales-type leases resulting from the sale of the Company’s products and the purchase of finance receivables from lenders pursuant to customer defaults under program agreements with finance companies. As of March 31, 2019 , approximately 81% of the outstanding finance receivables balance was due from three parties. Finance receivables originated by the Company generally include a residual value component. Residual values are determined based on the expectation that the underlying equipment will have a minimum fair market value at the end of the lease term. This residual value accrues to the Company at the end of the lease. The Company uses its experience and knowledge as an original equipment manufacturer and participant in end markets for the related products along with third-party studies to estimate residual values. The Company monitors these values for impairment on a periodic basis and reflects any resulting reductions in value in current earnings. Delinquency is the primary indicator of credit quality of finance receivables. The Company maintains a general allowance for finance receivables considered doubtful of future collection based upon historical experience. Additional allowances are established based upon the Company’s perception of the quality of the finance receivables, including the length of time the receivables are past due, past experience of collectability and underlying economic conditions. In circumstances where the Company believes collectability is no longer reasonably assured, a specific allowance is recorded to reduce the net recognized receivable to the amount reasonably expected to be collected. Finance receivables are written off if management determines that the specific borrower does not have the ability to repay the loan amounts due in full. The terms of the finance agreements generally give the Company the ability to take possession of the underlying collateral. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers’ financial obligations is not realized. Notes Receivable: Notes receivable include amounts related to refinancing of trade accounts and finance receivables. The Company routinely evaluates the creditworthiness of its customers and establishes reserves where the Company believes collectability is no longer reasonably assured. Certain notes receivable are collateralized by a security interest in the underlying assets and/or other assets owned by the debtor. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers’ financial obligations is not realized. Quality of Finance and Notes Receivable: The Company does not accrue interest income on finance and notes receivable in circumstances where the Company believes collectability is no longer reasonably assured. Any cash payments received on nonaccrual finance and notes receivable are applied first to the principal balances. The Company does not resume accrual of interest income until the customer has shown that it is capable of meeting its financial obligations by making timely payments over a sustained period of time. The Company determines past due or delinquency status based upon the due date of the receivable. Receivables subject to specific reserves also include loans that the Company has modified in troubled debt restructurings as a concession to customers experiencing financial difficulty. To minimize the economic loss, the Company may modify certain finance and notes receivable. Modifications generally consist of restructured payment terms and time frames in which no payments are required. Losses on troubled debt restructurings were not significant during the three and six months ended March 31, 2019 and 2018 . Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance at beginning of period $ 2.7 $ — $ 7.8 $ 10.5 $ 1.5 $ 6.1 $ 6.9 $ 14.5 Provision for doubtful accounts, net of recoveries (0.3 ) — 1.1 0.8 0.2 (4.5 ) 0.6 (3.7 ) Charge-off of accounts — — (0.1 ) (0.1 ) — 2.0 (0.1 ) 1.9 Foreign currency translation — — — — — 0.2 — 0.2 Allowance at end of period $ 2.4 $ — $ 8.8 $ 11.2 $ 1.7 $ 3.8 $ 7.4 $ 12.9 Six Months Ended March 31, 2019 Six Months Ended March 31, 2018 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance at beginning of period $ 2.8 $ — $ 7.1 $ 9.9 $ 1.5 $ 10.0 $ 6.8 $ 18.3 Provision for doubtful accounts, net of recoveries (0.4 ) — 1.8 1.4 0.2 (8.5 ) 0.8 (7.5 ) Charge-off of accounts — — (0.1 ) (0.1 ) — 2.0 (0.2 ) 1.8 Foreign currency translation — — — — — 0.3 — 0.3 Allowance at end of period $ 2.4 $ — $ 8.8 $ 11.2 $ 1.7 $ 3.8 $ 7.4 $ 12.9 |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in millions): March 31, 2019 September 30, 2018 Raw materials $ 766.3 $ 639.2 Partially finished products 278.5 354.3 Finished products 559.4 330.2 Inventories at FIFO cost 1,604.2 1,323.7 Less: Excess of FIFO cost over LIFO cost (100.7 ) (96.0 ) $ 1,503.5 $ 1,227.7 Due to the adoption of ASC 606, certain contracts in the defense and commercial segments are now recognized on the cost-to-cost method of percentage-of-completion. Costs incurred under these contracts are now recognized as “Unbilled receivables, net” on the Company’s Condensed Consolidated Balance Sheets. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in millions): March 31, 2019 September 30, 2018 Land and land improvements $ 54.4 $ 54.2 Buildings 310.9 297.6 Machinery and equipment 682.4 673.0 Software and related costs 172.9 164.4 Equipment on operating lease to others 29.2 22.1 Construction in progress 27.7 11.4 1,277.5 1,222.7 Less accumulated depreciation (773.5 ) (741.6 ) $ 504.0 $ 481.1 Depreciation expense was $18.7 million and $19.9 million for the three months ended March 31, 2019 and 2018 , respectively. Depreciation expense was $37.8 million and $40.0 million for the six months ended March 31, 2019 and 2018 , respectively. Capitalized interest was insignificant for all reported periods. Equipment on operating lease to others represents the cost of equipment shipped to customers for whom the Company has guaranteed the residual value and equipment on short-term leases. These transactions are accounted for as operating leases with the related assets capitalized and depreciated over their estimated economic lives of five to ten years. Cost less accumulated depreciation for equipment on operating lease at March 31, 2019 and September 30, 2018 was $23.0 million and $17.2 million , respectively. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 6 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill and other indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually or more frequently if potential interim indicators exist that could result in impairment. The Company performs its annual impairment test in the fourth quarter of its fiscal year. The following table presents changes in goodwill during the six months ended March 31, 2019 (in millions): Access equipment Fire & emergency Commercial Total Net goodwill at September 30, 2018 $ 880.9 $ 106.1 $ 20.9 $ 1,007.9 Foreign currency translation (6.2 ) — (0.1 ) (6.3 ) Net goodwill at March 31, 2019 $ 874.7 $ 106.1 $ 20.8 $ 1,001.6 The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions): March 31, 2019 September 30, 2018 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access equipment $ 1,806.8 $ (932.1 ) $ 874.7 $ 1,813.0 $ (932.1 ) $ 880.9 Fire & emergency 108.1 (2.0 ) 106.1 108.1 (2.0 ) 106.1 Commercial 196.7 (175.9 ) 20.8 196.8 (175.9 ) 20.9 $ 2,111.6 $ (1,110.0 ) $ 1,001.6 $ 2,117.9 $ (1,110.0 ) $ 1,007.9 Details of the Company’s total purchased intangible assets are as follows (in millions): March 31, 2019 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (31.6 ) $ 23.8 Technology-related 11.9 104.7 (102.2 ) 2.5 Customer relationships 12.8 555.0 (519.6 ) 35.4 Other 16.3 16.4 (14.9 ) 1.5 14.7 731.5 (668.3 ) 63.2 Non-amortizable trade names 387.7 — 387.7 $ 1,119.2 $ (668.3 ) $ 450.9 September 30, 2018 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (30.9 ) $ 24.5 Technology-related 11.9 104.7 (101.8 ) 2.9 Customer relationships 12.8 555.0 (502.3 ) 52.7 Other 16.2 16.4 (14.8 ) 1.6 14.7 731.5 (649.8 ) 81.7 Non-amortizable trade names 387.7 — 387.7 $ 1,119.2 $ (649.8 ) $ 469.4 The estimated future amortization expense of purchased intangible assets for the remainder of fiscal 2019 and the five years succeeding September 30, 2019 are as follows: 2019 (remaining six months) - $18.4 million ; 2020 - $11.0 million ; 2021 - $5.3 million ; 2022 - $4.9 million ; 2023 - $3.5 million ; and 2024 - $1.7 million . |
Credit Agreements
Credit Agreements | 6 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreements The Company was obligated under the following debt instruments (in millions): March 31, 2019 Principal Debt Issuance Costs Debt, Net Senior Term Loan $ 275.0 $ (0.7 ) $ 274.3 5.375% Senior Notes due March 2025 250.0 (2.2 ) 247.8 4.600% Senior Notes due May 2028 300.0 (3.6 ) 296.4 $ 825.0 $ (6.5 ) $ 818.5 September 30, 2018 Principal Debt Issuance Costs Debt, Net Senior Term Loan $ 275.0 $ (0.8 ) $ 274.2 5.375% Senior Notes due March 2025 250.0 (2.4 ) 247.6 4.600% Senior Notes due May 2028 300.0 (3.8 ) 296.2 $ 825.0 $ (7.0 ) $ 818.0 On April 3, 2018, the Company entered into a Second Amended and Restated Credit Agreement with various lenders (the “Credit Agreement”). The Credit Agreement provides for (i) an unsecured revolving credit facility (the “Revolving Credit Facility”) that matures in April 2023 with an initial maximum aggregate amount of availability of $850 million and (ii) an unsecured $325 million term loan (the “Term Loan”) due in quarterly principal installments of $4.1 million commencing September 30, 2019 with a balloon payment of $264.1 million due at maturity in April 2023. During fiscal 2018, the Company prepaid all required quarterly principal installments on the Term Loan through June 2022. At March 31, 2019 , outstanding letters of credit of $65.2 million reduced available capacity under the Revolving Credit Facility to $784.8 million . Under the Credit Agreement, the Company is obligated to pay (i) an unused commitment fee ranging from 0.125% to 0.275% per annum of the average daily unused portion of the aggregate revolving credit commitments under the Credit Agreement and (ii) a fee ranging from 0.563% to 1.75% per annum of the maximum amount available to be drawn for each letter of credit issued and outstanding under the Credit Agreement. Borrowings under the Credit Agreement bear interest at a variable rate equal to (i) LIBOR plus a specified margin, which may be adjusted upward or downward depending on whether certain criteria are satisfied, or (ii) for dollar-denominated loans only, the base rate (which is the highest of (a) the administrative agent’s prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin, which may be adjusted upward or downward depending on whether certain criteria are satisfied. At March 31, 2019 , the interest spread on the Revolving Credit Facility and Term Loan was 125 basis points . The weighted-average interest rate on borrowings outstanding under the Term Loan at March 31, 2019 was 3.75% . The Credit Agreement contains various restrictions and covenants, including requirements that the Company maintain certain financial ratios at prescribed levels and restrictions, subject to certain exceptions, on the ability of the Company and certain of its subsidiaries to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, consummate acquisitions and make investments in joint ventures and foreign subsidiaries. The Credit Agreement contains the following financial covenants: • Leverage Ratio: A maximum leverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated indebtedness to consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and certain other items (EBITDA)) as of the last day of any fiscal quarter of 3.75 to 1.00 . • Interest Coverage Ratio: A minimum interest coverage ratio (defined as, with certain adjustments, the ratio of the Company’s consolidated EBITDA to the Company’s consolidated cash interest expense) as of the last day of any fiscal quarter of 2.50 to 1.00 . With certain exceptions, the Credit Agreement limits the ability of the Company to pay dividends and other distributions, including repurchases of shares of its Common Stock. However, so long as no event of default exists under the Credit Agreement or would result from such payment, the Company may pay dividends and other distributions after April 3, 2018, in an aggregate amount not exceeding the sum of: i. $1.46 billion ; ii. 50% of the consolidated net income of the Company and its subsidiaries (or if such consolidated net income is a deficit, minus 100% of such deficit), accrued on a cumulative basis during the period beginning on April 3, 2018 and ending on the last day of the fiscal quarter immediately preceding the date of the applicable proposed dividend or distribution; and iii. 100% of the aggregate net proceeds received by the Company subsequent to April 3, 2018 either as a contribution to its common equity capital or from the issuance and sale of its Common Stock. The Company was in compliance with the financial covenants contained in the Credit Agreement as of March 31, 2019 . In March 2015, the Company issued $250.0 million of 5.375% unsecured senior notes due March 1, 2025 (the “2025 Senior Notes”). The proceeds of the note issuance were used to repay existing outstanding notes of the Company. On May 17, 2018, the Company issued $300.0 million of 4.600% unsecured senior notes due May 15, 2028 (the “2028 Senior Notes”). The Company used the net proceeds from the sale of the 2028 Senior Notes to repay certain outstanding notes of the Company and to pre-pay $49.2 million of quarterly principal installment payments under the Term Loan. The 2025 Senior Notes and the 2028 Senior Notes were issued pursuant to separate indentures (the “Indentures”) between the Company and a trustee. The Indentures contain customary affirmative and negative covenants. The Company has the option to redeem the 2025 Senior Notes for a premium after March 1, 2020. The Company has the option to redeem the 2028 Senior Notes at any time for a premium. The fair value of the long-term debt is estimated based upon Level 2 inputs to reflect market rate of the Company’s debt. At March 31, 2019 , the fair value of the 2025 Senior Notes and the 2028 Senior Notes was estimated to be $254 million ( $257 million at September 30, 2018 ) and $304 million ( $299 million at September 30, 2018 ), respectively. The fair value of the Term Loan approximated book value at both March 31, 2019 and September 30, 2018 . See Note 18 of the Notes to Condensed Consolidated Financial Statements for the definition of a Level 2 input. |
Warranties
Warranties | 6 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Warranties The Company’s products generally carry explicit warranties that extend from six months to five years, based on terms that are generally accepted in the marketplace. Selected components (such as engines, transmissions, tires, etc.) included in the Company’s end products may include manufacturers’ warranties. These manufacturers’ warranties are generally passed on to the end customer of the Company’s products, and the customer would generally deal directly with the component manufacturer. Provisions for estimated warranty and other related costs are recorded at the time of sale and are periodically adjusted to reflect actual experience. Certain warranty and other related claims involve matters of dispute that ultimately are resolved by negotiation, arbitration or litigation. At times, warranty issues arise that are beyond the scope of the Company’s historical experience. It is reasonably possible that additional warranty and other related claims could arise from disputes or other matters in excess of amounts accrued; however, the Company does not expect that any such amounts, while not determinable, would have a material effect on the Company’s consolidated financial condition, results of operations or cash flows. Changes in the Company’s warranty liability were as follows (in millions): Six Months Ended 2019 2018 Balance at beginning of period $ 75.3 $ 68.0 Adoption of ASC 606 (14.3 ) — Warranty provisions 21.2 24.7 Settlements made (22.8 ) (23.8 ) Changes in liability for pre-existing warranties, net (0.3 ) 2.0 Foreign currency translation (0.2 ) 0.1 Balance at end of period $ 58.9 $ 71.0 Due to the adoption of ASC 606, the Company determined that certain warranties previously classified as assurance-type warranties are service-type warranties. The liabilities associated with service-type warranties are disclosed in Note 3 of the Notes to Condensed Consolidated Financial Statements. |
Guarantee Arrangements
Guarantee Arrangements | 6 Months Ended |
Mar. 31, 2019 | |
Guarantees [Abstract] | |
Guarantee Arrangements | Guarantee Arrangements Customers of the Company, from time to time, may fund purchases of the Company’s equipment through third-party finance companies. In certain instances, the Company may be requested to provide support for these arrangements through credit or residual value guarantees, by which the Company agrees to make payments to the finance companies in certain circumstances as further described below. Credit Guarantees: The Company is party to multiple agreements whereby at March 31, 2019 the Company guaranteed an aggregate of $652.1 million in indebtedness of customers. The Company estimated that its maximum loss exposure under these contracts at March 31, 2019 was $121.9 million . Terms of these guarantees coincide with the financing arranged by the customer and generally do not exceed five years. Under the terms of these agreements and upon the occurrence of certain events, the Company generally has the ability to, among other things, take possession of the underlying collateral. If the financial condition of the customers were to deteriorate and result in their inability to make payments, then loss provisions in excess of amounts provided for at inception may be required. Given the Company’s position as original equipment manufacturer and its knowledge of end markets, the Company, when called upon to fulfill a guarantee, generally has been able to liquidate the financed equipment at a minimal loss, if any, to the Company. While the Company does not expect to experience losses under these agreements that are materially in excess of the amounts reserved, it cannot provide any assurance that the financial condition of the third parties will not deteriorate resulting in the third parties ’ inability to meet their obligations. In the event that this occurs, the Company cannot guarantee that the collateral underlying the agreements will be sufficient to avoid losses materially in excess of the amounts reserved. Any losses under these guarantees would generally be mitigated by the value of any underlying collateral, including financed equipment. During periods of economic weakness, collateral values generally decline and can contribute to higher exposure to losses. Residual Value Guarantees: The Company is party to multiple agreements whereby at March 31, 2019 the Company guaranteed to support an aggregate of $107.4 million of customer equipment value. The Company estimated that its maximum loss exposure under these contracts at March 31, 2019 was $10.7 million . Terms of these guarantees coincide with the financing arranged by the customer and generally do not exceed five years. Under the terms of these agreements, the Company guarantees that a piece of equipment will have a minimum residual value at a future date. If the counterparty is not able to recover the agreed upon residual value through sale, or alternative disposition, the Company is responsible for a portion of the shortfall. The Company is generally able to mitigate a portion of the risk associated with these guarantees by staggering the maturity terms of the guarantees, diversification of the portfolio and leveraging knowledge gained through the Company’s own experience in the used equipment markets. There can be no assurance the Company’s historical experience in used equipment markets will be indicative of future results. The Company’s ability to recover losses experienced from its guarantees may be affected by economic conditions in used equipment markets at the time of loss. During periods of economic weakness, residual values generally decline and can contribute to higher exposure to losses. Changes in the Company’s guarantee liabilities were as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Balance at beginning of period $ 10.1 $ 9.8 $ 10.4 $ 9.1 Provision for new credit guarantees 3.1 0.4 4.4 1.7 Changes for pre-existing guarantees, net 1.0 (0.6 ) 0.1 (0.6 ) Amortization of previous guarantees (1.3 ) (0.6 ) (2.0 ) (1.2 ) Foreign currency translation — 0.1 — 0.1 Balance at end of period $ 12.9 $ 9.1 $ 12.9 $ 9.1 |
Contingencies, Significant Esti
Contingencies, Significant Estimates and Concentrations | 6 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Significant Estimates and Concentrations | Contingencies, Significant Estimates and Concentrations Personal Injury Actions and Other - Product and general liability claims are made against the Company from time to time in the ordinary course of business. The Company is generally self-insured for future claims up to $5.0 million per claim. Accordingly, a reserve is maintained for the estimated costs of such claims. At March 31, 2019 and September 30, 2018 , the estimated net liabilities for product and general liability claims totaled $37.8 million and $36.0 million , respectively. There is inherent uncertainty as to the eventual resolution of unsettled claims. Management, however, believes that any losses in excess of established reserves will not have a material effect on the Company’s financial condition, results of operations or cash flows. Market Risks - The Company was contingently liable under bid, performance and specialty bonds totaling $693.6 million and $599.2 million at March 31, 2019 and September 30, 2018 , respectively. Open standby letters of credit issued by the Company’s banks in favor of third parties totaled $65.2 million and $91.1 million at March 31, 2019 and September 30, 2018 , respectively. Other Matters - The Company is subject to environmental matters and legal proceedings and claims, including patent, antitrust, product liability, breach of contract, warranty and state dealership regulation compliance proceedings, that arise in the ordinary course of business. Although the final results of all such matters and claims cannot be predicted with certainty, management believes that the ultimate resolution of all such matters and claims will not have a material effect on the Company’s financial condition, results of operations or cash flows. Actual results could vary, among other things, due to the uncertainties involved in litigation. Major contracts for military systems are performed over extended periods of time and are subject to changes in scope of work and delivery schedules. Pricing negotiations on changes and settlement of claims often extend over prolonged periods of time. The Company’s ultimate profitability on such contracts may depend on the eventual outcome of an equitable settlement of contractual issues with the Company’s customers. On February 24, 2019, one of the Company’s manufacturing facilities in Dodge Center, Minnesota, suffered a partial roof collapse as a result of heavy snow accumulation. The Company has worked to find alternative sources for production activities that were impacted as a result of the collapse. The Company has insurance coverage for the repair or replacement of assets that suffered damage or loss, and the Company is working closely with its insurance carriers and claims adjusters to ascertain the full amount of insurance recoveries due as a result of the damage and loss. The Company’s insurance policies also provide business interruption coverage, including lost profits, and the reimbursement of other expenses and costs that have been incurred relating to the damages and losses suffered. For the three months ended March 31, 2019, the Company incurred expenses of $3.3 million related to physical damages, which included the write-off of the damaged plant, equipment and inventory, wages paid to employees while the facility was closed and professional fees to secure and maintain the facility. The Company estimates the replacement cost associated with damaged equipment will be approximately $10 million . An advance payment of $5.0 million was received from the insurer during the second quarter of fiscal 2019. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders ’ Equity On August 31, 2015, the Company’s Board of Directors increased the Company’s Common Stock repurchase authorization by 10,000,000 shares, increasing the repurchase authorization to 10,299,198 shares. The Company repurchased 2,876,713 shares of Common Stock under this authorization during the six months ended March 31, 2019 at a cost of $195.0 million . The Company repurchased 1,587,013 shares of Common Stock under this authorization during the six months ended March 31, 2018 at a cost of $128.7 million . As of March 31, 2019 , the Company had repurchased 8,936,377 shares under this authorization, leaving 1,362,821 shares of Common Stock remaining. The Company is restricted by its Credit Agreement from repurchasing shares in certain situations. See Note 12 of the Notes to Condensed Consolidated Financial Statements for information regarding these restrictions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows (in millions): Three Months Ended March 31, 2019 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (20.0 ) $ (105.0 ) $ 0.3 $ (124.7 ) Other comprehensive income (loss) before reclassifications (3.9 ) (6.9 ) (0.2 ) (11.0 ) Amounts reclassified from accumulated other comprehensive income (loss) 0.1 — — 0.1 Net current period other comprehensive income (loss) (3.8 ) (6.9 ) (0.2 ) (10.9 ) Balance at end of period $ (23.8 ) $ (111.9 ) $ 0.1 $ (135.6 ) Three Months Ended March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (45.7 ) $ (76.5 ) $ (0.2 ) $ (122.4 ) Other comprehensive income (loss) before reclassifications — 16.5 0.3 16.8 Amounts reclassified from accumulated other comprehensive income (loss) 0.5 — — 0.5 Net current period other comprehensive income (loss) 0.5 16.5 0.3 17.3 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) Six Months Ended March 31, 2019 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2018 $ (10.9 ) $ (96.2 ) $ 0.3 $ (106.8 ) Tax impact of U.S. tax reform on Accumulated Other Comprehensive Income (ASU 2018-02) (9.1 ) — — (9.1 ) Balance at October 1, 2018 (20.0 ) (96.2 ) 0.3 (115.9 ) Other comprehensive income (loss) before reclassifications (3.9 ) (15.7 ) (0.2 ) (19.8 ) Amounts reclassified from accumulated other comprehensive income (loss) 0.1 — — 0.1 Net current period other comprehensive income (loss) (3.8 ) (15.7 ) (0.2 ) (19.7 ) Balance at end of period $ (23.8 ) $ (111.9 ) $ 0.1 $ (135.6 ) Six Months Ended March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (46.2 ) $ (78.6 ) $ (0.2 ) $ (125.0 ) Other comprehensive income (loss) before reclassifications — 18.6 0.3 18.9 Amounts reclassified from accumulated other comprehensive income (loss) 1.0 — — 1.0 Net current period other comprehensive income (loss) 1.0 18.6 0.3 19.9 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) The effects of the reclassifications out of Accumulated other comprehensive income (loss) on the Condensed Consolidated Statements of Income were as follows (in millions): Classification of income (expense) Three Months Ended Six Months Ended 2019 2018 2019 2018 Amortization of employee pension and postretirement benefits items Prior service costs Miscellaneous, net $ 0.2 $ 0.2 $ 0.2 $ 0.4 Actuarial (gains) losses Miscellaneous, net 0.1 0.5 — 1.0 Total before tax 0.3 0.7 0.2 1.4 Tax provision (benefit) (0.2 ) (0.2 ) (0.1 ) (0.4 ) Net of tax $ 0.1 $ 0.5 $ 0.1 $ 1.0 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement FASB ASC Topic 820, Fair Value Measurements and Disclosures , defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than quoted prices in active markets for identical assets or liabilities, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. There were no transfers of assets between levels during the three and six months ended March 31, 2019 . The fair values of the Company’s financial assets and liabilities were as follows (in millions): Level 1 Level 2 Level 3 Total March 31, 2019 Assets: SERP plan assets (a) $ 21.4 $ — $ — $ 21.4 Foreign currency exchange derivatives (b) — 0.3 — 0.3 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.4 $ — $ 0.4 Level 1 Level 2 Level 3 Total September 30, 2018 Assets: SERP plan assets (a) $ 22.1 $ — $ — $ 22.1 Foreign currency exchange derivatives (b) — 0.8 — 0.8 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.2 $ — $ 0.2 _____________________________ (a) Represents investments in a rabbi trust for the Company’s non-qualified supplemental executive retirement plan (SERP). The fair values of these investments are determined using a market approach. Investments include mutual funds for which quoted prices in active markets are available. The Company records changes in the fair value of investments in “Miscellaneous, net” in the Condensed Consolidated Statements of Income. (b) Based on observable market transactions of forward currency prices. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company is organized into four reportable segments based on the internal organization used by the President and Chief Executive Officer for making operating decisions and measuring performance and based on the similarity of customers served, common management, common use of facilities and economic results attained. In accordance with FASB ASC Topic 280, Segment Reporting , for purposes of business segment performance measurement, the Company does not allocate to individual business segments costs or items that are of a non-operating nature or organizational or functional expenses of a corporate nature. The caption “Corporate” includes corporate office expenses, share-based compensation, costs of certain business initiatives and shared services or operations benefiting multiple segments, and results of insignificant operations. Identifiable assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, certain property, plant and equipment, and certain other assets pertaining to corporate activities. Intersegment sales generally include amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed and agreed-upon pricing, which is intended to be reflective of the contribution made by the supplying business segment. Selected financial information concerning the Company’s reportable segments and product lines is as follows (in millions): Three Months Ended March 31, 2019 2018 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 463.5 $ — $ 463.5 $ 487.2 $ — $ 487.2 Telehandlers 319.5 — 319.5 234.9 — 234.9 Other 204.6 — 204.6 205.8 — 205.8 Total access equipment 987.6 — 987.6 927.9 — 927.9 Defense 486.2 0.5 486.7 427.8 0.4 428.2 Fire & emergency 279.0 4.2 283.2 269.1 4.0 273.1 Commercial Concrete placement 115.3 — 115.3 114.6 — 114.6 Refuse collection 92.0 — 92.0 117.8 — 117.8 Other 29.8 0.8 30.6 29.1 2.4 31.5 Total commercial 237.1 0.8 237.9 261.5 2.4 263.9 Corporate and intersegment eliminations 0.3 (5.5 ) (5.2 ) 0.1 (6.8 ) (6.7 ) Consolidated $ 1,990.2 $ — $ 1,990.2 $ 1,886.4 $ — $ 1,886.4 Six Months Ended March 31, 2019 2018 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 801.2 $ — $ 801.2 $ 810.7 $ — $ 810.7 Telehandlers 589.0 — 589.0 364.4 — 364.4 Other 423.9 — 423.9 381.0 — 381.0 Total access equipment 1,814.1 — 1,814.1 1,556.1 — 1,556.1 Defense 950.0 0.8 950.8 921.0 0.7 921.7 Fire & emergency 570.2 8.5 578.7 494.0 8.2 502.2 Commercial Concrete placement 197.0 — 197.0 226.1 — 226.1 Refuse collection 201.2 — 201.2 219.0 — 219.0 Other 60.5 1.4 61.9 56.1 4.1 60.2 Total commercial 458.7 1.4 460.1 501.2 4.1 505.3 Corporate and intersegment eliminations 0.6 (10.7 ) (10.1 ) 0.4 (13.0 ) (12.6 ) Consolidated $ 3,793.6 $ — $ 3,793.6 $ 3,472.7 $ — $ 3,472.7 Three Months Ended Six Months Ended As adjusted As adjusted 2019 2018 2019 2018 Operating income (loss): Access equipment $ 119.8 $ 97.6 $ 186.2 $ 111.3 Defense 52.2 48.4 123.3 114.2 Fire & emergency 36.6 36.0 76.5 61.3 Commercial 7.8 16.4 26.5 24.7 Corporate (40.8 ) (42.0 ) (76.4 ) (80.6 ) Consolidated 175.6 156.4 336.1 230.9 Interest expense, net of interest income (11.7 ) (8.0 ) (23.2 ) (21.7 ) Miscellaneous income (expense), net 1.2 (1.3 ) — (1.5 ) Income before income taxes and earnings (losses) of unconsolidated affiliates $ 165.1 $ 147.1 $ 312.9 $ 207.7 March 31, 2019 September 30, 2018 Identifiable assets: Access equipment: U.S. $ 2,341.2 $ 2,207.2 Europe 415.0 406.6 Rest of the World 254.4 215.2 Total access equipment 3,010.6 2,829.0 Defense: U.S. 829.2 824.2 Rest of the World 7.2 5.1 Total defense 836.4 829.3 Fire & emergency - U.S. 549.6 564.9 Commercial: U.S. 434.4 364.3 Rest of the World 46.7 45.4 Total commercial 481.1 409.7 Corporate: U.S. (a) 481.5 548.6 Rest of the World (b) 110.2 112.7 Total corporate 591.7 661.3 Consolidated $ 5,469.4 $ 5,294.2 _________________________ (a) Primarily includes cash and short-term investments. (b) Primarily includes a corporate-led manufacturing facility that supports multiple operating segments. The following table presents net sales by geographic region based on product shipment destination (in millions): Three Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 724.0 $ 465.6 $ 274.0 $ 230.1 $ (5.3 ) $ 1,688.4 Europe, Africa and Middle East 163.2 21.0 0.9 0.3 — 185.4 Rest of the World 100.4 0.1 8.3 7.5 0.1 116.4 $ 987.6 $ 486.7 $ 283.2 $ 237.9 $ (5.2 ) $ 1,990.2 Three Months Ended March 31, 2018 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 709.3 $ 409.5 $ 258.9 $ 256.8 $ (6.6 ) $ 1,627.9 Europe, Africa and Middle East 150.7 18.6 1.1 0.1 (0.1 ) 170.4 Rest of the World 67.9 0.1 13.1 7.0 — 88.1 $ 927.9 $ 428.2 $ 273.1 $ 263.9 $ (6.7 ) $ 1,886.4 Six Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 1,370.2 $ 913.8 $ 547.0 $ 447.7 $ (10.1 ) $ 3,268.6 Europe, Africa and Middle East 276.9 36.9 11.9 2.2 — 327.9 Rest of the World 167.0 0.1 19.8 10.2 — 197.1 $ 1,814.1 $ 950.8 $ 578.7 $ 460.1 $ (10.1 ) $ 3,793.6 Six Months Ended March 31, 2018 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 1,171.5 $ 780.7 $ 475.5 $ 489.7 $ (12.7 ) $ 2,904.7 Europe, Africa and Middle East 263.2 140.9 1.2 0.6 — 405.9 Rest of the World 121.4 0.1 25.5 15.0 0.1 162.1 $ 1,556.1 $ 921.7 $ 502.2 $ 505.3 $ (12.6 ) $ 3,472.7 |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance (Accounting Standard Codification (ASC) 606) to provide a single, comprehensive revenue recognition model for all contracts with customers, Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) . This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard supersedes all existing U.S. GAAP guidance on revenue recognition and is expected to require the use of more judgment and result in additional disclosures. The Company adopted the new guidance on October 1, 2018 following the modified retrospective method of transition. The Company applied the new guidance to contracts that were not completed at the date of initial adoption, resulting in a reduction of retained earnings by $60.4 million , after-tax, at that date. For contracts that were modified prior to October 1, 2018, the Company considered the aggregate impact of all modifications that occurred prior to the effective date of the standard for purposes of identifying performance obligations, determining transaction price and allocating transaction price to performance obligations. Prior period comparative information was not recast to reflect the impact of the new guidance and therefore continues to be reported under the accounting guidance in effect during those periods. Under the new guidance, the majority of the Company’s contracts with the U.S. government follow an over time model that uses the cost-to-cost method to measure performance. Previously the Company had recognized revenue from these contracts on the percentage of completion method using either the cost-to-cost or the units-complete method. In addition, the new guidance changes the definition of a contract, resulting in the Company no longer considering unexercised government options in the measurement of completion and profitability. The new guidance is expected to result in additional volatility in the Company’s earnings based upon the date of receipt of contract orders. In the fire & emergency segment, the point in time at which “control transfers” to the customer differs from when the Company no longer maintains “risk of loss”, which under the new guidance delays the point in time at which the Company will recognize revenue on contracts for which the end user, rather than the Company’s dealer, is the Company’s customer. In the commercial segment, the Company builds certain units on chassis owned by the end customer. Revenue related to these arrangements moved from a point in time revenue recognition model to an over time model that is measured using the cost-to-cost method of percentage-of-completion as the Company is enhancing a customer asset. In addition, under the new guidance, the Company defers revenue, including the estimated profit, for service warranties instead of recording a liability for estimated costs. See Note 3 of the Notes to Condensed Consolidated Financial Statements for additional information regarding the Company’s revenue recognition method under the new revenue guidance. The cumulative effect of initially applying the new revenue recognition guidance to the Company’s Condensed Consolidated Financial Statements as of October 1, 2018 was as follows (in millions): Balance as of September 30, 2018 Cumulative Impact from Adopting New Revenue Standard Balance as of October 1, 2018 Assets Receivables, net $ 1,521.6 $ (248.9 ) $ 1,272.7 Unbilled receivables, net — 309.7 309.7 Inventories, net 1,227.7 (75.9 ) 1,151.8 Other current assets 66.0 0.3 66.3 Total current assets 3,269.9 (14.8 ) 3,255.1 Other long-term assets 65.9 18.7 84.6 Total assets 5,294.2 3.9 5,298.1 Liabilities and Shareholders ’ Equity Customer advances $ 444.9 $ 27.2 $ 472.1 Other current liabilities 275.8 6.4 282.2 Total current liabilities 1,690.1 33.6 1,723.7 Other long-term liabilities 272.6 30.7 303.3 Retained earnings 2,007.9 (60.4 ) 1,947.5 Total shareholders ’ equity 2,513.5 (60.4 ) 2,453.1 Total liabilities and shareholders ’ equity 5,294.2 3.9 5,298.1 The impact from adopting the new revenue recognition guidance on the Company’s Condensed Consolidated Financial Statements as of and for the three and six months ended March 31, 2019 was as follows (in millions): Three Months Ended March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Statement of Income Net sales $ 1,990.2 $ 1,974.7 $ 15.5 Cost of sales 1,632.3 1,623.6 8.7 Gross income $ 357.9 $ 351.1 $ 6.8 Operating income $ 175.6 $ 168.8 $ 6.8 Income before income taxes and earnings of unconsolidated affiliates $ 165.1 $ 158.3 $ 6.8 Provision for income taxes 36.2 34.6 1.6 Income before earnings of unconsolidated affiliates 128.9 123.7 5.2 Equity in earnings of unconsolidated affiliates (0.4 ) (0.4 ) — Net income $ 128.5 $ 123.3 $ 5.2 Earnings per share: Basic $ 1.84 $ 1.76 $ 0.08 Diluted 1.82 1.74 0.08 Six Months Ended March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Statement of Income Net sales $ 3,793.6 $ 3,740.0 $ 53.6 Cost of sales 3,107.4 3,085.8 21.6 Gross income $ 686.2 $ 654.2 $ 32.0 Operating income $ 336.1 $ 304.1 $ 32.0 Income before income taxes and earnings of unconsolidated affiliates $ 312.9 $ 280.9 $ 32.0 Provision for income taxes 75.9 68.3 7.6 Income before earnings of unconsolidated affiliates 237.0 212.6 24.4 Equity in earnings of unconsolidated affiliates 0.5 0.5 — Net income $ 237.5 $ 213.1 $ 24.4 Earnings per share: Basic $ 3.37 $ 3.02 $ 0.35 Diluted 3.33 2.99 0.34 March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Balance Sheet Assets Receivables, net $ 1,077.8 $ 1,376.0 $ (298.2 ) Unbilled receivables, net 384.5 — 384.5 Inventories, net 1,503.5 1,572.4 (68.9 ) Other current assets 82.0 82.0 — Total current assets 3,369.7 3,352.3 17.4 Other long-term assets 143.2 132.1 11.1 Total assets 5,469.4 5,440.9 28.5 Liabilities and Shareholders ’ Equity Customer advances $ 497.8 $ 491.6 $ 6.2 Other current liabilities 344.4 321.9 22.5 Total current liabilities 1,810.1 1,781.4 28.7 Other long-term liabilities 341.1 305.3 35.8 Retained earnings 2,200.3 2,236.3 (36.0 ) Total shareholders ’ equity 2,499.7 2,535.7 (36.0 ) Total liabilities and shareholders ’ equity 5,469.4 5,440.9 28.5 In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory . The standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset when the transfer occurs as opposed to when the asset is transferred to an outside party. The standard does not apply to intra-entity transfers of inventory. The Company adopted ASU 2016-16 on October 1, 2018 following the modified retrospective approach through a cumulative effect adjustment, which resulted in an increase to retained earnings of $44.5 million . In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The standard requires that an entity report the service cost component of net periodic pension and postretirement cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The remaining components of net benefit costs are required to be presented in the income statement separately from the service component and outside a subtotal of income from operations. The amendment further allows only the service cost component of net periodic pension and postretirement costs to be eligible for capitalization, when applicable. The Company adopted ASU 2017-07 on October 1, 2018. The impact of this standard was a reclassification of $0.5 million and $1.2 million of other components of net periodic pension cost to “Miscellaneous, net” on the Condensed Consolidated Statement of Income for the three and six months ended March 31, 2018 , respectively. The Company utilized a practical expedient included in the ASU which allowed the Company to use amounts previously disclosed in its Employee Benefit Plans footnote for the prior period as the estimation basis for applying the required retrospective presentation requirements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act enacted in the United States in December 2017 (the “Tax Reform Act”), thereby eliminating the resulting stranded tax effect. The Company adopted ASU 2018-02 on October 1, 2018. The Company increased retained earnings by $9.1 million upon adoption of ASU 2018-02 to eliminate the tax effects stranded in accumulated other comprehensive income resulting from the Tax Reform Act. Standards not yet adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and has since issued amendments to this standard, which requires lessees to reflect most leases on their balance sheet as lease liabilities with corresponding right-of-use assets, while leaving presentation of lease expense in the statement of income largely unchanged. The standard also eliminates the real-estate specific provisions that exist under current U.S. GAAP and modifies the classification criteria and accounting lessors must apply to sales-type and direct financing leases. Entities have the option to adopt the new guidance using a modified retrospective approach through a cumulative effect adjustment to retained earnings applied either to the beginning of the earliest period presented or the beginning of the period of adoption. In addition, the new guidance provides for certain practical expedients. The Company will be required to adopt ASU 2016-02 and related amendments to the standard as of October 1, 2019. The Company is currently evaluating its lease landscape to assess the effect of the new guidance on the Company’s consolidated financial statements. It is also focused on designing new processes, controls and a system solution to support the Company’s implementation and compliance with the requirements of the new standard. The Company plans to adopt the new guidance effective October 1, 2019 using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. The Company will be required to adopt ASU 2016-13 as of October 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment . The standard simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The standard also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The Company will be required to adopt ASU 2017-04 as of October 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2017-04 on the Company’s consolidated financial statements. |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The cumulative effect of initially applying the new revenue recognition guidance to the Company’s Condensed Consolidated Financial Statements as of October 1, 2018 was as follows (in millions): Balance as of September 30, 2018 Cumulative Impact from Adopting New Revenue Standard Balance as of October 1, 2018 Assets Receivables, net $ 1,521.6 $ (248.9 ) $ 1,272.7 Unbilled receivables, net — 309.7 309.7 Inventories, net 1,227.7 (75.9 ) 1,151.8 Other current assets 66.0 0.3 66.3 Total current assets 3,269.9 (14.8 ) 3,255.1 Other long-term assets 65.9 18.7 84.6 Total assets 5,294.2 3.9 5,298.1 Liabilities and Shareholders ’ Equity Customer advances $ 444.9 $ 27.2 $ 472.1 Other current liabilities 275.8 6.4 282.2 Total current liabilities 1,690.1 33.6 1,723.7 Other long-term liabilities 272.6 30.7 303.3 Retained earnings 2,007.9 (60.4 ) 1,947.5 Total shareholders ’ equity 2,513.5 (60.4 ) 2,453.1 Total liabilities and shareholders ’ equity 5,294.2 3.9 5,298.1 |
New Accounting Standards New _2
New Accounting Standards New Accounting Standards - Previous Guidance (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Item Effected [Line Items] | |
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] | The impact from adopting the new revenue recognition guidance on the Company’s Condensed Consolidated Financial Statements as of and for the three and six months ended March 31, 2019 was as follows (in millions): Three Months Ended March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Statement of Income Net sales $ 1,990.2 $ 1,974.7 $ 15.5 Cost of sales 1,632.3 1,623.6 8.7 Gross income $ 357.9 $ 351.1 $ 6.8 Operating income $ 175.6 $ 168.8 $ 6.8 Income before income taxes and earnings of unconsolidated affiliates $ 165.1 $ 158.3 $ 6.8 Provision for income taxes 36.2 34.6 1.6 Income before earnings of unconsolidated affiliates 128.9 123.7 5.2 Equity in earnings of unconsolidated affiliates (0.4 ) (0.4 ) — Net income $ 128.5 $ 123.3 $ 5.2 Earnings per share: Basic $ 1.84 $ 1.76 $ 0.08 Diluted 1.82 1.74 0.08 Six Months Ended March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Statement of Income Net sales $ 3,793.6 $ 3,740.0 $ 53.6 Cost of sales 3,107.4 3,085.8 21.6 Gross income $ 686.2 $ 654.2 $ 32.0 Operating income $ 336.1 $ 304.1 $ 32.0 Income before income taxes and earnings of unconsolidated affiliates $ 312.9 $ 280.9 $ 32.0 Provision for income taxes 75.9 68.3 7.6 Income before earnings of unconsolidated affiliates 237.0 212.6 24.4 Equity in earnings of unconsolidated affiliates 0.5 0.5 — Net income $ 237.5 $ 213.1 $ 24.4 Earnings per share: Basic $ 3.37 $ 3.02 $ 0.35 Diluted 3.33 2.99 0.34 March 31, 2019 As Reported Previous Accounting Guidance Impact of New Revenue Recognition Standard Condensed Consolidated Balance Sheet Assets Receivables, net $ 1,077.8 $ 1,376.0 $ (298.2 ) Unbilled receivables, net 384.5 — 384.5 Inventories, net 1,503.5 1,572.4 (68.9 ) Other current assets 82.0 82.0 — Total current assets 3,369.7 3,352.3 17.4 Other long-term assets 143.2 132.1 11.1 Total assets 5,469.4 5,440.9 28.5 Liabilities and Shareholders ’ Equity Customer advances $ 497.8 $ 491.6 $ 6.2 Other current liabilities 344.4 321.9 22.5 Total current liabilities 1,810.1 1,781.4 28.7 Other long-term liabilities 341.1 305.3 35.8 Retained earnings 2,200.3 2,236.3 (36.0 ) Total shareholders ’ equity 2,499.7 2,535.7 (36.0 ) Total liabilities and shareholders ’ equity 5,469.4 5,440.9 28.5 |
Sales and Revenue Recognition_2
Sales and Revenue Recognition Sales and Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The table below presents consolidated net sales disaggregated by segment and timing of revenue recognition (in millions): Three Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Corporate and Intersegment Eliminations Total Point in time $ 968.9 $ 1.4 $ 274.3 $ 148.1 $ (5.2 ) $ 1,387.5 Over time 18.7 485.3 8.9 89.8 — 602.7 $ 987.6 $ 486.7 $ 283.2 $ 237.9 $ (5.2 ) $ 1,990.2 Six Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Corporate and Intersegment Eliminations Total Point in time $ 1,776.7 $ 1.7 $ 565.2 $ 269.3 $ (10.1 ) $ 2,602.8 Over time 37.4 949.1 13.5 190.8 — 1,190.8 $ 1,814.1 $ 950.8 $ 578.7 $ 460.1 $ (10.1 ) $ 3,793.6 |
Schedule of changes in warranty liability and unearned extended warranty premiums | Changes in the Company’s service-type warranties were as follows (in millions): Six Months Ended 2019 2018 Balance at beginning of period $ 30.7 $ 30.8 Adoption of ASC 606 35.7 — Deferred revenue for new service warranties 12.8 5.6 Amortization of deferred revenue (12.5 ) (5.0 ) Changes in liability for pre-existing warranties, net 0.1 (0.5 ) Foreign currency translation (0.3 ) 0.2 Balance at end of period $ 66.5 $ 31.1 Changes in the Company’s warranty liability were as follows (in millions): Six Months Ended 2019 2018 Balance at beginning of period $ 75.3 $ 68.0 Adoption of ASC 606 (14.3 ) — Warranty provisions 21.2 24.7 Settlements made (22.8 ) (23.8 ) Changes in liability for pre-existing warranties, net (0.3 ) 2.0 Foreign currency translation (0.2 ) 0.1 Balance at end of period $ 58.9 $ 71.0 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic benefit cost | Components of net periodic pension benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 3.0 $ 3.1 $ 6.0 $ 6.2 Interest cost 4.7 4.5 9.4 9.0 Expected return on plan assets (5.0 ) (5.1 ) (10.0 ) (10.1 ) Amortization of prior service cost 0.5 0.5 0.9 0.9 Curtailment 1.2 — 1.2 — Amortization of net actuarial loss 0.1 0.4 0.1 0.9 Net periodic benefit cost $ 4.5 $ 3.4 $ 7.6 $ 6.9 Components of net periodic other post-employment benefit cost were as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 0.7 $ 0.9 $ 1.5 $ 1.8 Interest cost 0.5 0.4 1.0 0.9 Amortization of prior service benefit (0.3 ) (0.3 ) (0.7 ) (0.5 ) Amortization of net actuarial gain — 0.1 (0.1 ) 0.1 Net periodic benefit cost $ 0.9 $ 1.1 $ 1.7 $ 2.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding was as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Basic weighted-average common shares outstanding 70,042,761 74,519,741 70,761,437 74,685,082 Dilutive stock options and other equity-based compensation awards 714,033 977,808 675,685 1,077,722 Diluted weighted-average common shares outstanding 70,756,794 75,497,549 71,437,122 75,762,804 |
Schedule of antidilutive securities excluded from computation of earnings per share | Options not included in the computation of diluted earnings per share attributable to common shareholders because they would have been anti-dilutive were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Stock options 608,698 254,000 775,894 257,837 |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of receivables | Receivables consisted of the following (in millions): March 31, 2019 September 30, 2018 U.S. government: Amounts billed $ 81.0 $ 156.3 Costs and profits not billed — 235.4 81.0 391.7 Other trade receivables 975.4 1,089.4 Finance receivables 11.3 11.7 Notes receivable 0.7 1.4 Other receivables 31.4 48.6 1,099.8 1,542.8 Less allowance for doubtful accounts (11.2 ) (9.9 ) $ 1,088.6 $ 1,532.9 |
Classification of receivables in the condensed consolidated balance sheets | Classification of receivables in the Condensed Consolidated Balance Sheets consisted of the following (in millions): March 31, 2019 September 30, 2018 Current receivables $ 1,077.8 $ 1,521.6 Long-term receivables 10.8 11.3 $ 1,088.6 $ 1,532.9 |
Schedule of finance and notes receivable aging and accrual status | Finance and notes receivable accrual status consisted of the following (in millions): Finance Receivables Notes Receivable March 31, 2019 September 30, 2018 March 31, 2019 September 30, 2018 Receivables on nonaccrual status $ 2.7 $ 10.2 $ — $ — Receivables past due 90 days or more and still accruing — — — — Receivables subject to general reserves 8.0 1.5 — — Allowance for doubtful accounts — — — — Receivables subject to specific reserves 3.3 10.2 0.7 1.4 Allowance for doubtful accounts (2.4 ) (2.8 ) — — |
Schedule of allowance for doubtful accounts | Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance at beginning of period $ 2.7 $ — $ 7.8 $ 10.5 $ 1.5 $ 6.1 $ 6.9 $ 14.5 Provision for doubtful accounts, net of recoveries (0.3 ) — 1.1 0.8 0.2 (4.5 ) 0.6 (3.7 ) Charge-off of accounts — — (0.1 ) (0.1 ) — 2.0 (0.1 ) 1.9 Foreign currency translation — — — — — 0.2 — 0.2 Allowance at end of period $ 2.4 $ — $ 8.8 $ 11.2 $ 1.7 $ 3.8 $ 7.4 $ 12.9 Six Months Ended March 31, 2019 Six Months Ended March 31, 2018 Finance Notes Trade and Other Total Finance Notes Trade and Other Total Allowance at beginning of period $ 2.8 $ — $ 7.1 $ 9.9 $ 1.5 $ 10.0 $ 6.8 $ 18.3 Provision for doubtful accounts, net of recoveries (0.4 ) — 1.8 1.4 0.2 (8.5 ) 0.8 (7.5 ) Charge-off of accounts — — (0.1 ) (0.1 ) — 2.0 (0.2 ) 1.8 Foreign currency translation — — — — — 0.3 — 0.3 Allowance at end of period $ 2.4 $ — $ 8.8 $ 11.2 $ 1.7 $ 3.8 $ 7.4 $ 12.9 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following (in millions): March 31, 2019 September 30, 2018 Raw materials $ 766.3 $ 639.2 Partially finished products 278.5 354.3 Finished products 559.4 330.2 Inventories at FIFO cost 1,604.2 1,323.7 Less: Excess of FIFO cost over LIFO cost (100.7 ) (96.0 ) $ 1,503.5 $ 1,227.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following (in millions): March 31, 2019 September 30, 2018 Land and land improvements $ 54.4 $ 54.2 Buildings 310.9 297.6 Machinery and equipment 682.4 673.0 Software and related costs 172.9 164.4 Equipment on operating lease to others 29.2 22.1 Construction in progress 27.7 11.4 1,277.5 1,222.7 Less accumulated depreciation (773.5 ) (741.6 ) $ 504.0 $ 481.1 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents changes in goodwill during the six months ended March 31, 2019 (in millions): Access equipment Fire & emergency Commercial Total Net goodwill at September 30, 2018 $ 880.9 $ 106.1 $ 20.9 $ 1,007.9 Foreign currency translation (6.2 ) — (0.1 ) (6.3 ) Net goodwill at March 31, 2019 $ 874.7 $ 106.1 $ 20.8 $ 1,001.6 |
Schedule of company's goodwill allocated to the reportable segments | The following table presents details of the Company’s goodwill allocated to the reportable segments (in millions): March 31, 2019 September 30, 2018 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Access equipment $ 1,806.8 $ (932.1 ) $ 874.7 $ 1,813.0 $ (932.1 ) $ 880.9 Fire & emergency 108.1 (2.0 ) 106.1 108.1 (2.0 ) 106.1 Commercial 196.7 (175.9 ) 20.8 196.8 (175.9 ) 20.9 $ 2,111.6 $ (1,110.0 ) $ 1,001.6 $ 2,117.9 $ (1,110.0 ) $ 1,007.9 |
Schedule of purchased intangible assets | Details of the Company’s total purchased intangible assets are as follows (in millions): March 31, 2019 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (31.6 ) $ 23.8 Technology-related 11.9 104.7 (102.2 ) 2.5 Customer relationships 12.8 555.0 (519.6 ) 35.4 Other 16.3 16.4 (14.9 ) 1.5 14.7 731.5 (668.3 ) 63.2 Non-amortizable trade names 387.7 — 387.7 $ 1,119.2 $ (668.3 ) $ 450.9 September 30, 2018 Weighted- Average Life (in years) Gross Accumulated Amortization Net Amortizable intangible assets: Distribution network 39.1 $ 55.4 $ (30.9 ) $ 24.5 Technology-related 11.9 104.7 (101.8 ) 2.9 Customer relationships 12.8 555.0 (502.3 ) 52.7 Other 16.2 16.4 (14.8 ) 1.6 14.7 731.5 (649.8 ) 81.7 Non-amortizable trade names 387.7 — 387.7 $ 1,119.2 $ (649.8 ) $ 469.4 |
Credit Agreements (Tables)
Credit Agreements (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | The Company was obligated under the following debt instruments (in millions): March 31, 2019 Principal Debt Issuance Costs Debt, Net Senior Term Loan $ 275.0 $ (0.7 ) $ 274.3 5.375% Senior Notes due March 2025 250.0 (2.2 ) 247.8 4.600% Senior Notes due May 2028 300.0 (3.6 ) 296.4 $ 825.0 $ (6.5 ) $ 818.5 September 30, 2018 Principal Debt Issuance Costs Debt, Net Senior Term Loan $ 275.0 $ (0.8 ) $ 274.2 5.375% Senior Notes due March 2025 250.0 (2.4 ) 247.6 4.600% Senior Notes due May 2028 300.0 (3.8 ) 296.2 $ 825.0 $ (7.0 ) $ 818.0 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in warranty liability and unearned extended warranty premiums | Changes in the Company’s service-type warranties were as follows (in millions): Six Months Ended 2019 2018 Balance at beginning of period $ 30.7 $ 30.8 Adoption of ASC 606 35.7 — Deferred revenue for new service warranties 12.8 5.6 Amortization of deferred revenue (12.5 ) (5.0 ) Changes in liability for pre-existing warranties, net 0.1 (0.5 ) Foreign currency translation (0.3 ) 0.2 Balance at end of period $ 66.5 $ 31.1 Changes in the Company’s warranty liability were as follows (in millions): Six Months Ended 2019 2018 Balance at beginning of period $ 75.3 $ 68.0 Adoption of ASC 606 (14.3 ) — Warranty provisions 21.2 24.7 Settlements made (22.8 ) (23.8 ) Changes in liability for pre-existing warranties, net (0.3 ) 2.0 Foreign currency translation (0.2 ) 0.1 Balance at end of period $ 58.9 $ 71.0 |
Guarantee Arrangements (Tables)
Guarantee Arrangements (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Guarantees [Abstract] | |
Schedule of provision for losses on customer guarantees | Changes in the Company’s guarantee liabilities were as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Balance at beginning of period $ 10.1 $ 9.8 $ 10.4 $ 9.1 Provision for new credit guarantees 3.1 0.4 4.4 1.7 Changes for pre-existing guarantees, net 1.0 (0.6 ) 0.1 (0.6 ) Amortization of previous guarantees (1.3 ) (0.6 ) (2.0 ) (1.2 ) Foreign currency translation — 0.1 — 0.1 Balance at end of period $ 12.9 $ 9.1 $ 12.9 $ 9.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Changes in accumulated other comprehensive income (loss) by component were as follows (in millions): Three Months Ended March 31, 2019 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (20.0 ) $ (105.0 ) $ 0.3 $ (124.7 ) Other comprehensive income (loss) before reclassifications (3.9 ) (6.9 ) (0.2 ) (11.0 ) Amounts reclassified from accumulated other comprehensive income (loss) 0.1 — — 0.1 Net current period other comprehensive income (loss) (3.8 ) (6.9 ) (0.2 ) (10.9 ) Balance at end of period $ (23.8 ) $ (111.9 ) $ 0.1 $ (135.6 ) Three Months Ended March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (45.7 ) $ (76.5 ) $ (0.2 ) $ (122.4 ) Other comprehensive income (loss) before reclassifications — 16.5 0.3 16.8 Amounts reclassified from accumulated other comprehensive income (loss) 0.5 — — 0.5 Net current period other comprehensive income (loss) 0.5 16.5 0.3 17.3 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) Six Months Ended March 31, 2019 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2018 $ (10.9 ) $ (96.2 ) $ 0.3 $ (106.8 ) Tax impact of U.S. tax reform on Accumulated Other Comprehensive Income (ASU 2018-02) (9.1 ) — — (9.1 ) Balance at October 1, 2018 (20.0 ) (96.2 ) 0.3 (115.9 ) Other comprehensive income (loss) before reclassifications (3.9 ) (15.7 ) (0.2 ) (19.8 ) Amounts reclassified from accumulated other comprehensive income (loss) 0.1 — — 0.1 Net current period other comprehensive income (loss) (3.8 ) (15.7 ) (0.2 ) (19.7 ) Balance at end of period $ (23.8 ) $ (111.9 ) $ 0.1 $ (135.6 ) Six Months Ended March 31, 2018 Employee Pension and Postretirement Benefits, Net of Tax Cumulative Translation Adjustments Derivative Instruments Accumulated Other Comprehensive Income (Loss) Balance at beginning of period $ (46.2 ) $ (78.6 ) $ (0.2 ) $ (125.0 ) Other comprehensive income (loss) before reclassifications — 18.6 0.3 18.9 Amounts reclassified from accumulated other comprehensive income (loss) 1.0 — — 1.0 Net current period other comprehensive income (loss) 1.0 18.6 0.3 19.9 Balance at end of period $ (45.2 ) $ (60.0 ) $ 0.1 $ (105.1 ) |
Schedule of amounts recognized in other comprehensive income (loss) | were as follows (in millions): Classification of income (expense) Three Months Ended Six Months Ended 2019 2018 2019 2018 Amortization of employee pension and postretirement benefits items Prior service costs Miscellaneous, net $ 0.2 $ 0.2 $ 0.2 $ 0.4 Actuarial (gains) losses Miscellaneous, net 0.1 0.5 — 1.0 Total before tax 0.3 0.7 0.2 1.4 Tax provision (benefit) (0.2 ) (0.2 ) (0.1 ) (0.4 ) Net of tax $ 0.1 $ 0.5 $ 0.1 $ 1.0 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values of financial assets and liabilities | The fair values of the Company’s financial assets and liabilities were as follows (in millions): Level 1 Level 2 Level 3 Total March 31, 2019 Assets: SERP plan assets (a) $ 21.4 $ — $ — $ 21.4 Foreign currency exchange derivatives (b) — 0.3 — 0.3 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.4 $ — $ 0.4 Level 1 Level 2 Level 3 Total September 30, 2018 Assets: SERP plan assets (a) $ 22.1 $ — $ — $ 22.1 Foreign currency exchange derivatives (b) — 0.8 — 0.8 Liabilities: Foreign currency exchange derivatives (b) $ — $ 0.2 $ — $ 0.2 _____________________________ (a) Represents investments in a rabbi trust for the Company’s non-qualified supplemental executive retirement plan (SERP). The fair values of these investments are determined using a market approach. Investments include mutual funds for which quoted prices in active markets are available. The Company records changes in the fair value of investments in “Miscellaneous, net” in the Condensed Consolidated Statements of Income. (b) Based on observable market transactions of forward currency prices. |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of net sales by product lines and reportable segments | Selected financial information concerning the Company’s reportable segments and product lines is as follows (in millions): Three Months Ended March 31, 2019 2018 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 463.5 $ — $ 463.5 $ 487.2 $ — $ 487.2 Telehandlers 319.5 — 319.5 234.9 — 234.9 Other 204.6 — 204.6 205.8 — 205.8 Total access equipment 987.6 — 987.6 927.9 — 927.9 Defense 486.2 0.5 486.7 427.8 0.4 428.2 Fire & emergency 279.0 4.2 283.2 269.1 4.0 273.1 Commercial Concrete placement 115.3 — 115.3 114.6 — 114.6 Refuse collection 92.0 — 92.0 117.8 — 117.8 Other 29.8 0.8 30.6 29.1 2.4 31.5 Total commercial 237.1 0.8 237.9 261.5 2.4 263.9 Corporate and intersegment eliminations 0.3 (5.5 ) (5.2 ) 0.1 (6.8 ) (6.7 ) Consolidated $ 1,990.2 $ — $ 1,990.2 $ 1,886.4 $ — $ 1,886.4 Six Months Ended March 31, 2019 2018 External Customers Inter- segment Net Sales External Customers Inter- segment Net Sales Access equipment Aerial work platforms $ 801.2 $ — $ 801.2 $ 810.7 $ — $ 810.7 Telehandlers 589.0 — 589.0 364.4 — 364.4 Other 423.9 — 423.9 381.0 — 381.0 Total access equipment 1,814.1 — 1,814.1 1,556.1 — 1,556.1 Defense 950.0 0.8 950.8 921.0 0.7 921.7 Fire & emergency 570.2 8.5 578.7 494.0 8.2 502.2 Commercial Concrete placement 197.0 — 197.0 226.1 — 226.1 Refuse collection 201.2 — 201.2 219.0 — 219.0 Other 60.5 1.4 61.9 56.1 4.1 60.2 Total commercial 458.7 1.4 460.1 501.2 4.1 505.3 Corporate and intersegment eliminations 0.6 (10.7 ) (10.1 ) 0.4 (13.0 ) (12.6 ) Consolidated $ 3,793.6 $ — $ 3,793.6 $ 3,472.7 $ — $ 3,472.7 |
Schedule of income (loss) from continuing operations by product lines and reportable segments | Three Months Ended Six Months Ended As adjusted As adjusted 2019 2018 2019 2018 Operating income (loss): Access equipment $ 119.8 $ 97.6 $ 186.2 $ 111.3 Defense 52.2 48.4 123.3 114.2 Fire & emergency 36.6 36.0 76.5 61.3 Commercial 7.8 16.4 26.5 24.7 Corporate (40.8 ) (42.0 ) (76.4 ) (80.6 ) Consolidated 175.6 156.4 336.1 230.9 Interest expense, net of interest income (11.7 ) (8.0 ) (23.2 ) (21.7 ) Miscellaneous income (expense), net 1.2 (1.3 ) — (1.5 ) Income before income taxes and earnings (losses) of unconsolidated affiliates $ 165.1 $ 147.1 $ 312.9 $ 207.7 |
Schedule of identifiable assets by business segments and by geographical segments | March 31, 2019 September 30, 2018 Identifiable assets: Access equipment: U.S. $ 2,341.2 $ 2,207.2 Europe 415.0 406.6 Rest of the World 254.4 215.2 Total access equipment 3,010.6 2,829.0 Defense: U.S. 829.2 824.2 Rest of the World 7.2 5.1 Total defense 836.4 829.3 Fire & emergency - U.S. 549.6 564.9 Commercial: U.S. 434.4 364.3 Rest of the World 46.7 45.4 Total commercial 481.1 409.7 Corporate: U.S. (a) 481.5 548.6 Rest of the World (b) 110.2 112.7 Total corporate 591.7 661.3 Consolidated $ 5,469.4 $ 5,294.2 _________________________ (a) Primarily includes cash and short-term investments. (b) Primarily includes a corporate-led manufacturing facility that supports multiple operating segments. |
Schedule of net sales by geographical segments | The following table presents net sales by geographic region based on product shipment destination (in millions): Three Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 724.0 $ 465.6 $ 274.0 $ 230.1 $ (5.3 ) $ 1,688.4 Europe, Africa and Middle East 163.2 21.0 0.9 0.3 — 185.4 Rest of the World 100.4 0.1 8.3 7.5 0.1 116.4 $ 987.6 $ 486.7 $ 283.2 $ 237.9 $ (5.2 ) $ 1,990.2 Three Months Ended March 31, 2018 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 709.3 $ 409.5 $ 258.9 $ 256.8 $ (6.6 ) $ 1,627.9 Europe, Africa and Middle East 150.7 18.6 1.1 0.1 (0.1 ) 170.4 Rest of the World 67.9 0.1 13.1 7.0 — 88.1 $ 927.9 $ 428.2 $ 273.1 $ 263.9 $ (6.7 ) $ 1,886.4 Six Months Ended March 31, 2019 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 1,370.2 $ 913.8 $ 547.0 $ 447.7 $ (10.1 ) $ 3,268.6 Europe, Africa and Middle East 276.9 36.9 11.9 2.2 — 327.9 Rest of the World 167.0 0.1 19.8 10.2 — 197.1 $ 1,814.1 $ 950.8 $ 578.7 $ 460.1 $ (10.1 ) $ 3,793.6 Six Months Ended March 31, 2018 Access equipment Defense Fire & emergency Commercial Eliminations Total Net sales: North America $ 1,171.5 $ 780.7 $ 475.5 $ 489.7 $ (12.7 ) $ 2,904.7 Europe, Africa and Middle East 263.2 140.9 1.2 0.6 — 405.9 Rest of the World 121.4 0.1 25.5 15.0 0.1 162.1 $ 1,556.1 $ 921.7 $ 502.2 $ 505.3 $ (12.6 ) $ 3,472.7 |
New Accounting Standards New _3
New Accounting Standards New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Receivables, net | $ 1,272.7 | $ 1,077.8 | $ 1,077.8 | $ 1,521.6 | ||
Unbilled receivables, net | 309.7 | 384.5 | 384.5 | 0 | ||
Inventories, net | 1,151.8 | 1,503.5 | 1,503.5 | 1,227.7 | ||
Other current assets | 66.3 | 82 | 82 | 66 | ||
Total current assets | 3,255.1 | 3,369.7 | 3,369.7 | 3,269.9 | ||
Other long-term assets | 84.6 | 143.2 | 143.2 | 65.9 | ||
Assets | 5,298.1 | 5,469.4 | 5,469.4 | 5,294.2 | ||
Customer advances | 472.1 | 497.8 | 497.8 | 444.9 | ||
Other current liabilities | 282.2 | 344.4 | 344.4 | 275.8 | ||
Total current liabilities | 1,723.7 | 1,810.1 | 1,810.1 | 1,690.1 | ||
Other long-term liabilities | 303.3 | 341.1 | 341.1 | 272.6 | ||
Retained earnings | 2,200.3 | 2,200.3 | 2,007.9 | |||
Total shareholders’ equity | 2,453.1 | 2,499.7 | 2,499.7 | 2,513.5 | ||
Total liabilities and shareholders’ equity | 5,298.1 | 5,469.4 | 5,469.4 | $ 5,294.2 | ||
Revenues | 1,990.2 | $ 1,886.4 | 3,793.6 | $ 3,472.7 | ||
Cost of sales | 1,632.3 | 1,550.4 | 3,107.4 | 2,893.7 | ||
Gross income | 357.9 | 336 | 686.2 | 579 | ||
Operating income | 175.6 | 156.4 | 336.1 | 230.9 | ||
Income before income taxes and earnings (losses) of unconsolidated affiliates | 165.1 | 147.1 | 312.9 | 207.7 | ||
Provision for income taxes | 36.2 | 36.2 | 75.9 | 40.9 | ||
Income before earnings (losses) of unconsolidated affiliates | 128.9 | 110.9 | 237 | 166.8 | ||
Equity in earnings (losses) of unconsolidated affiliates | (0.4) | (0.1) | 0.5 | 0.4 | ||
Net income | $ 128.5 | $ 110.8 | $ 237.5 | $ 167.2 | ||
Basic earnings per share (in dollars per share) | $ 1.84 | $ 1.49 | $ 3.37 | $ 2.24 | ||
Diluted earnings per share (in dollars per share) | $ 1.82 | $ 1.47 | $ 3.33 | $ 2.21 | ||
Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Receivables, net | (248.9) | $ (298.2) | $ (298.2) | |||
Unbilled receivables, net | 309.7 | 384.5 | 384.5 | |||
Inventories, net | (75.9) | (68.9) | (68.9) | |||
Other current assets | 0.3 | 0 | 0 | |||
Total current assets | (14.8) | 17.4 | 17.4 | |||
Other long-term assets | 18.7 | 11.1 | 11.1 | |||
Assets | 3.9 | 28.5 | 28.5 | |||
Customer advances | 27.2 | 6.2 | 6.2 | |||
Other current liabilities | 6.4 | 22.5 | 22.5 | |||
Total current liabilities | 33.6 | 28.7 | 28.7 | |||
Other long-term liabilities | 30.7 | 35.8 | 35.8 | |||
Retained earnings | (60.4) | (36) | (36) | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (60.4) | |||||
Total shareholders’ equity | (60.4) | (36) | (36) | |||
Total liabilities and shareholders’ equity | 3.9 | 28.5 | 28.5 | |||
Accounting Standards Update 2016-16 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 44.5 | |||||
Accounting Standards Update 2017-07 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0.5 | 1.2 | ||||
Balance Subsequent to Adoption of ASU 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 1,947.5 | |||||
Accounting Standards Update 2018-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 9.1 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | |||||
Previous Accounting Guidance [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Receivables, net | 1,376 | 1,376 | ||||
Unbilled receivables, net | 0 | 0 | ||||
Inventories, net | 1,572.4 | 1,572.4 | ||||
Other current assets | 82 | 82 | ||||
Total current assets | 3,352.3 | 3,352.3 | ||||
Other long-term assets | 132.1 | 132.1 | ||||
Assets | 5,440.9 | 5,440.9 | ||||
Customer advances | 491.6 | 491.6 | ||||
Other current liabilities | 321.9 | 321.9 | ||||
Total current liabilities | 1,781.4 | 1,781.4 | ||||
Other long-term liabilities | 305.3 | 305.3 | ||||
Retained earnings | 2,236.3 | 2,236.3 | ||||
Total shareholders’ equity | 2,535.7 | 2,535.7 | ||||
Total liabilities and shareholders’ equity | 5,440.9 | 5,440.9 | ||||
Revenues | 1,974.7 | 3,740 | ||||
Cost of sales | 1,623.6 | 3,085.8 | ||||
Gross income | 351.1 | 654.2 | ||||
Operating income | 168.8 | 304.1 | ||||
Income before income taxes and earnings (losses) of unconsolidated affiliates | 158.3 | 280.9 | ||||
Provision for income taxes | 34.6 | 68.3 | ||||
Income before earnings (losses) of unconsolidated affiliates | 123.7 | 212.6 | ||||
Equity in earnings (losses) of unconsolidated affiliates | (0.4) | 0.5 | ||||
Net income | $ 123.3 | $ 213.1 | ||||
Basic earnings per share (in dollars per share) | $ 1.76 | $ 3.02 | ||||
Diluted earnings per share (in dollars per share) | $ 1.74 | $ 2.99 | ||||
Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revenues | $ 15.5 | $ 53.6 | ||||
Cost of sales | 8.7 | 21.6 | ||||
Gross income | 6.8 | 32 | ||||
Operating income | 6.8 | 32 | ||||
Income before income taxes and earnings (losses) of unconsolidated affiliates | 6.8 | 32 | ||||
Provision for income taxes | 1.6 | 7.6 | ||||
Income before earnings (losses) of unconsolidated affiliates | 5.2 | 24.4 | ||||
Equity in earnings (losses) of unconsolidated affiliates | $ 0 | 0 | ||||
Net income | $ 24.4 | |||||
Basic earnings per share (in dollars per share) | $ 0.08 | $ 0.35 | ||||
Diluted earnings per share (in dollars per share) | $ 0.08 | $ 0.34 | ||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net income | $ 128.5 | $ 110.8 | $ 237.5 | $ 167.2 | ||
Retained Earnings | Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (60.4) | |||||
Retained Earnings | Accounting Standards Update 2016-16 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 44.5 | |||||
Retained Earnings | Accounting Standards Update 2018-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 9.1 |
Sales and Revenue Recognition_3
Sales and Revenue Recognition Sales and Revenue Recognition (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | Oct. 01, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 1,990.2 | $ 1,886.4 | $ 3,793.6 | $ 3,472.7 | |||
Contract with Customer, Liability | 608.8 | 608.8 | $ 594.4 | ||||
Customer advances | 497.8 | 497.8 | $ 444.9 | 472.1 | |||
Contract with Customer, Liability, Current | 62.8 | 62.8 | 75 | ||||
Contract with Customer, Liability, Noncurrent | 48.2 | 48.2 | $ 47.3 | ||||
Contract with Customer, Liability, Revenue Recognized | 237.4 | 473.4 | |||||
Extended Product Warranty Accrual | 66.5 | 31.1 | 66.5 | 31.1 | $ 30.7 | $ 30.8 | |
Extended Product Warranty Accrual, Increase for Adoption of ASU 2014-09 | 35.7 | 0 | |||||
Extended Product Warranty Accrual, Increase for Warranties Issued | 12.8 | 5.6 | |||||
Extended Product Warranty Accrual, Period Increase (Decrease) | (12.5) | (5) | |||||
Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 0.1 | (0.5) | |||||
Extended Product Warranty Accrual, Foreign Currency Translation Gain (Loss) | (0.3) | 0.2 | |||||
Revenue, Remaining Performance Obligation, Amount | 4,610 | 4,610 | |||||
Transaction price allocated to performance obligations to be satisfied during current fiscal year | 1,950 | 1,950 | |||||
Transaction price allocated to performance obligations expected to be satisfied during the subsequent fiscal year | 2,190 | 2,190 | |||||
Transaction price allocated to performance obligations expected to be satisfied beyond subsequent fiscal year | 464.3 | 464.3 | |||||
Transferred at Point in Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,387.5 | 2,602.8 | |||||
Transferred over Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 602.7 | 1,190.8 | |||||
Defense | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Increase in net sales due to margin rate adjustments | 18 | 49.6 | |||||
Increase in operating income due to margin rate adjustments | 11.3 | 41.6 | |||||
Increase in net income due to margin rate adjustments | $ 8.7 | $ 31.9 | |||||
Increase in earnings per share due to margin rate adjustments (in dollars per share) | $ 0.13 | $ 0.45 | |||||
Revenues | $ 486.2 | 427.8 | $ 950 | 921 | |||
Defense | Transferred at Point in Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1.4 | 1.7 | |||||
Defense | Transferred over Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 485.3 | 949.1 | |||||
Access Equipment [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 987.6 | 927.9 | 1,814.1 | 1,556.1 | |||
Access Equipment [Member] | Transferred at Point in Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 968.9 | 1,776.7 | |||||
Access Equipment [Member] | Transferred over Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 18.7 | 37.4 | |||||
Fire and Emergency [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 279 | 269.1 | 570.2 | 494 | |||
Interest Expense, Customer Deposits | 3.7 | 4.8 | 7.3 | 9.4 | |||
Fire and Emergency [Member] | Transferred at Point in Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 274.3 | 565.2 | |||||
Fire and Emergency [Member] | Transferred over Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 8.9 | 13.5 | |||||
Commercial [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 237.1 | 261.5 | 458.7 | 501.2 | |||
Commercial [Member] | Transferred at Point in Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 148.1 | 269.3 | |||||
Commercial [Member] | Transferred over Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 89.8 | 190.8 | |||||
Intersegment Eliminations [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0.3 | 0.1 | 0.6 | 0.4 | |||
Intersegment Eliminations [Member] | Transferred at Point in Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | (5.2) | (10.1) | |||||
Intersegment Eliminations [Member] | Transferred over Time [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | |||||
Operating Segments [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,990.2 | 1,886.4 | 3,793.6 | 3,472.7 | |||
Operating Segments [Member] | Defense | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 486.7 | 428.2 | 950.8 | 921.7 | |||
Operating Segments [Member] | Access Equipment [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 987.6 | 927.9 | 1,814.1 | 1,556.1 | |||
Operating Segments [Member] | Fire and Emergency [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 283.2 | 273.1 | 578.7 | 502.2 | |||
Operating Segments [Member] | Commercial [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 237.9 | 263.9 | 460.1 | 505.3 | |||
Operating Segments [Member] | Intersegment Eliminations [Member] | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ (5.2) | $ (6.7) | $ (10.1) | $ (12.6) | |||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Defense | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Concentration Risk, Percentage | 90.00% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Common stock reserved for issuance stock awards (in shares) | 6,979,736 | 6,979,736 | ||
Stock-based compensation expense | $ 8.3 | $ 5.7 | $ 15.9 | $ 14.2 |
Stock-based compensation expense, net of tax | $ 6.7 | $ 4.4 | $ 13.2 | $ 11 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Pension benefit | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 3 | $ 3.1 | $ 6 | $ 6.2 |
Interest cost | 4.7 | 4.5 | 9.4 | 9 |
Expected return on plan assets | (5) | (5.1) | (10) | (10.1) |
Amortization of prior service cost | 0.5 | 0.5 | 0.9 | 0.9 |
Curtailment | 1.2 | 0 | 1.2 | 0 |
Amortization of net actuarial gain | 0.1 | 0.4 | 0.1 | 0.9 |
Net periodic benefit cost | 4.5 | 3.4 | 7.6 | 6.9 |
Other post-employment benefit | ||||
Components of net periodic benefit cost | ||||
Service cost | 0.7 | 0.9 | 1.5 | 1.8 |
Interest cost | 0.5 | 0.4 | 1 | 0.9 |
Amortization of prior service cost | (0.3) | (0.3) | (0.7) | (0.5) |
Amortization of net actuarial gain | 0 | 0.1 | (0.1) | 0.1 |
Net periodic benefit cost | $ 0.9 | $ 1.1 | $ 1.7 | $ 2.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 15 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Mar. 31, 2019 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | 35.00% | 21.00% | 24.50% | 21.00% | ||
Effective income tax rate (as a percent) | 21.90% | 24.60% | 24.30% | 19.70% | ||||
Income tax expense | $ 36.2 | $ 36.2 | $ 75.9 | $ 40.9 | ||||
Income tax expense (benefit), tax credit, discrete items | (0.2) | (1.1) | 7.1 | (11.4) | ||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 6.2 | |||||||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 1.5 | 1.5 | ||||||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | 0.8 | $ 20.3 | ||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 1.2 | 4.5 | ||||||
Other Tax Expense (Benefit) | (6.5) | |||||||
Tax Cuts and Jobs Act, Change in Tax Rate, Income Tax Expense (Benefit) | $ 30.2 | |||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 1.3 | 1.3 | ||||||
Gross unrecognized tax benefits, excluding income tax penalties and interest | 90.9 | 90.9 | $ 33.7 | $ 33.7 | 90.9 | |||
Net unrecognized tax benefits, excluding interest and penalties that would affect the Company's net income if recognized | 22.9 | 22.9 | 22.9 | |||||
Interest and penalties benefit (cost) | 0.6 | $ 0.6 | ||||||
Accruals for payment of interest and penalties | 5.8 | 5.8 | 5.8 | |||||
Estimated reduction in unrecognized tax benefits due to tax audit resolutions during the next twelve months | 6.3 | 6.3 | 6.3 | |||||
Transition Tax [Member] | ||||||||
Unrecognized Tax Benefits | 4.4 | 4.4 | 4.4 | |||||
Deferred Tax [Member] | ||||||||
Unrecognized Tax Benefits | $ 53.1 | $ 53.1 | $ 53.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Weighted-Average Common Shares Outstanding | ||||
Basic weighted-average common shares outstanding (in shares) | 70,042,761 | 74,519,741 | 70,761,437 | 74,685,082 |
Dilutive stock options and other equity-based compensation awards (in shares) | 714,033 | 977,808 | 675,685 | 1,077,722 |
Diluted weighted-average common shares outstanding (in shares) | 70,756,794 | 75,497,549 | 71,437,122 | 75,762,804 |
Earnings Per Share (Details 2)
Earnings Per Share (Details 2) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Stock options (in shares) | 608,698 | 254,000 | 775,894 | 257,837 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
U.S. government: | |||||||
Amounts billed | $ 81 | $ 156.3 | |||||
Costs and profits not billed | 0 | 235.4 | |||||
Contract receivables | 81 | 391.7 | |||||
Other trade receivables | 975.4 | 1,089.4 | |||||
Finance receivables | 11.3 | 11.7 | |||||
Notes receivable | 0.7 | 1.4 | |||||
Other receivables | 31.4 | 48.6 | |||||
Receivables, gross | 1,099.8 | 1,542.8 | |||||
Less allowance for doubtful accounts | (11.2) | $ (10.5) | (9.9) | $ (12.9) | $ (14.5) | $ (18.3) | |
Receivables, net | 1,088.6 | 1,532.9 | |||||
Classification of receivables | |||||||
Current receivables | 1,077.8 | $ 1,272.7 | 1,521.6 | ||||
Long-term receivables | $ 10.8 | $ 11.3 |
Receivables (Details 2)
Receivables (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Change in allowance for doubtful accounts | |||||
Allowance at beginning of period | $ 10.5 | $ 14.5 | $ 9.9 | $ 18.3 | |
Provision for doubtful accounts, net of recoveries | 0.8 | (3.7) | 1.4 | (7.5) | |
Charge-off of accounts | (0.1) | 1.9 | (0.1) | 1.8 | |
Foreign currency translation | 0 | 0.2 | 0 | 0.3 | |
Allowance at end of period | 11.2 | 12.9 | 11.2 | 12.9 | |
Finance Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables on nonaccrual status | 2.7 | 2.7 | $ 10.2 | ||
Receivables past due 90 days or more and still accruing | 0 | 0 | 0 | ||
Receivables subject to general reserves | 8 | 8 | 1.5 | ||
Allowance for doubtful accounts | 0 | 0 | 0 | ||
Receivables subject to specific reserves | 3.3 | 3.3 | 10.2 | ||
Allowance for doubtful accounts | (2.4) | (2.4) | (2.8) | ||
Change in allowance for doubtful accounts | |||||
Allowance at beginning of period | 2.7 | 1.5 | 2.8 | 1.5 | |
Provision for doubtful accounts, net of recoveries | (0.3) | 0.2 | (0.4) | 0.2 | |
Charge-off of accounts | 0 | 0 | 0 | 0 | |
Foreign currency translation | 0 | 0 | 0 | 0 | |
Allowance at end of period | 2.4 | 1.7 | 2.4 | 1.7 | |
Notes Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables on nonaccrual status | 0 | 0 | 0 | ||
Receivables past due 90 days or more and still accruing | 0 | 0 | 0 | ||
Receivables subject to general reserves | 0 | 0 | 0 | ||
Allowance for doubtful accounts | 0 | 0 | 0 | ||
Receivables subject to specific reserves | 0.7 | 0.7 | 1.4 | ||
Allowance for doubtful accounts | 0 | 0 | $ 0 | ||
Change in allowance for doubtful accounts | |||||
Allowance at beginning of period | 0 | 6.1 | 0 | 10 | |
Provision for doubtful accounts, net of recoveries | 0 | (4.5) | 0 | (8.5) | |
Charge-off of accounts | 0 | 2 | 0 | 2 | |
Foreign currency translation | 0 | 0.2 | 0 | 0.3 | |
Allowance at end of period | 0 | 3.8 | 0 | 3.8 | |
Trade and Other Receivable | |||||
Change in allowance for doubtful accounts | |||||
Allowance at beginning of period | 7.8 | 6.9 | 7.1 | 6.8 | |
Provision for doubtful accounts, net of recoveries | 1.1 | 0.6 | 1.8 | 0.8 | |
Charge-off of accounts | (0.1) | (0.1) | (0.1) | (0.2) | |
Foreign currency translation | 0 | 0 | 0 | 0 | |
Allowance at end of period | $ 8.8 | $ 7.4 | $ 8.8 | $ 7.4 |
Receivables (Details 3)
Receivables (Details 3) - Finance Receivable - Credit concentration | 6 Months Ended |
Mar. 31, 2019Party | |
Finance and notes receivables | |
Receivables due from third parties (as a percent) | 81.00% |
Finance Receivable, Concentration Risk, Number of Parties | 3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 766.3 | $ 639.2 | |
Partially finished products | 278.5 | 354.3 | |
Finished products | 559.4 | 330.2 | |
Inventories at FIFO cost | 1,604.2 | 1,323.7 | |
Less: Excess of FIFO cost over LIFO cost | (100.7) | (96) | |
Inventory net | $ 1,503.5 | $ 1,151.8 | $ 1,227.7 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 1,277.5 | $ 1,277.5 | $ 1,222.7 | ||
Less accumulated depreciation | (773.5) | (773.5) | (741.6) | ||
Property, plant and equipment, net | 504 | 504 | 481.1 | ||
Depreciation expenses | 18.7 | $ 19.9 | 37.8 | $ 40 | |
Land and land improvements | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 54.4 | 54.4 | 54.2 | ||
Buildings | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 310.9 | 310.9 | 297.6 | ||
Machinery and equipment | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 682.4 | 682.4 | 673 | ||
Software and related costs | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 172.9 | 172.9 | 164.4 | ||
Equipment on operating lease to others | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 29.2 | 29.2 | 22.1 | ||
Equipment on operating lease, net | 23 | $ 23 | 17.2 | ||
Equipment on operating lease to others | Minimum | |||||
Property, plant and equipment | |||||
Estimated useful life (in years) | 5 years | ||||
Equipment on operating lease to others | Maximum | |||||
Property, plant and equipment | |||||
Estimated useful life (in years) | 10 years | ||||
Construction in Progress [Member] | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 27.7 | $ 27.7 | $ 11.4 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2019USD ($) | |
Changes in goodwill | |
Net goodwill at the beginning of the period | $ 1,007.9 |
Foreign currency translation | (6.3) |
Net goodwill at the end of the period | 1,001.6 |
Access equipment | |
Changes in goodwill | |
Net goodwill at the beginning of the period | 880.9 |
Foreign currency translation | (6.2) |
Net goodwill at the end of the period | 874.7 |
Fire & emergency | |
Changes in goodwill | |
Net goodwill at the beginning of the period | 106.1 |
Foreign currency translation | 0 |
Net goodwill at the end of the period | 106.1 |
Commercial | |
Changes in goodwill | |
Net goodwill at the beginning of the period | 20.9 |
Foreign currency translation | (0.1) |
Net goodwill at the end of the period | $ 20.8 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets (Details 2) - USD ($) $ in Millions | Mar. 31, 2019 | Sep. 30, 2018 |
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | $ 2,111.6 | $ 2,117.9 |
Accumulated Impairment | (1,110) | (1,110) |
Net | 1,001.6 | 1,007.9 |
Access equipment | ||
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | 1,806.8 | 1,813 |
Accumulated Impairment | (932.1) | (932.1) |
Net | 874.7 | 880.9 |
Fire & emergency | ||
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | 108.1 | 108.1 |
Accumulated Impairment | (2) | (2) |
Net | 106.1 | 106.1 |
Commercial | ||
Details of the Company's goodwill allocated to the reportable segments | ||
Gross | 196.7 | 196.8 |
Accumulated Impairment | (175.9) | (175.9) |
Net | $ 20.8 | $ 20.9 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets (Details 3) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Sep. 30, 2018 | |
Purchased intangible assets | ||
Weighted- Average Life (in years) | 14 years 8 months | 14 years 8 months |
Gross | $ 731.5 | $ 731.5 |
Accumulated Amortization | (668.3) | (649.8) |
Net | 63.2 | 81.7 |
Non-amortizable trade names | 387.7 | 387.7 |
Intangible assets excluding goodwill, gross | 1,119.2 | 1,119.2 |
Purchased intangible assets, net | 450.9 | $ 469.4 |
Future amortization expense of purchased intangible assets for the five years succeeding fiscal year 2019 | ||
2019 (remaining six months) | 18.4 | |
2020 | 11 | |
2021 | 5.3 | |
2022 | 4.9 | |
2023 | 3.5 | |
2024 | $ 1.7 | |
Distribution network | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 39 years 1 month | 39 years 1 month |
Gross | $ 55.4 | $ 55.4 |
Accumulated Amortization | (31.6) | (30.9) |
Net | $ 23.8 | $ 24.5 |
Technology-related | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 11 years 11 months | 11 years 11 months |
Gross | $ 104.7 | $ 104.7 |
Accumulated Amortization | (102.2) | (101.8) |
Net | $ 2.5 | $ 2.9 |
Customer relationships | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 12 years 10 months | 12 years 10 months |
Gross | $ 555 | $ 555 |
Accumulated Amortization | (519.6) | (502.3) |
Net | $ 35.4 | $ 52.7 |
Other | ||
Purchased intangible assets | ||
Weighted- Average Life (in years) | 16 years 3 months | 16 years 2 months |
Gross | $ 16.4 | $ 16.4 |
Accumulated Amortization | (14.9) | (14.8) |
Net | $ 1.5 | $ 1.6 |
Credit Agreements (Details)
Credit Agreements (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 31, 2018USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | May 15, 2018 | Apr. 03, 2018USD ($) | Mar. 02, 2015 | |
Long term debt | |||||||
Principal | $ 825,000,000 | $ 825,000,000 | |||||
Debt Issuance Costs, Net | (6,500,000) | (7,000,000) | |||||
Debt, Net | 818,500,000 | 818,000,000 | |||||
Long term debt net of current maturities | 818,500,000 | 818,000,000 | |||||
Revolving line of credit and current maturities of long-term debt | 0 | 0 | |||||
Senior Term Loan Member [Member] | |||||||
Debt instruments | |||||||
Debt Instrument, Fair Value Disclosure | 275,000,000 | 275,000,000 | |||||
Debt Instrument, Periodic Payment | 49,200,000 | ||||||
Long term debt | |||||||
Principal | 275,000,000 | 275,000,000 | |||||
Debt Issuance Costs, Net | (700,000) | (800,000) | |||||
Debt, Net | 274,300,000 | 274,200,000 | $ 325,000,000 | ||||
Quarterly principal installment, at commencement | 4,100,000 | ||||||
Payment due at maturity | $ 264,100,000 | ||||||
Weighted-average interest rate (as a percent) | 3.75% | ||||||
5.375% Senior Notes due March 2025 | |||||||
Debt instruments | |||||||
Debt Instrument, Fair Value Disclosure | $ 254,000,000 | 257,000,000 | |||||
Long term debt | |||||||
Principal | 250,000,000 | 250,000,000 | |||||
Debt Issuance Costs, Net | (2,200,000) | (2,400,000) | |||||
Debt, Net | $ 247,800,000 | $ 247,600,000 | |||||
Debt issued | $ 250,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 5.375% | ||||
4.600% Senior notes due May 2028 [Member] | |||||||
Debt instruments | |||||||
Debt Instrument, Fair Value Disclosure | $ 304,000,000 | $ 299,000,000 | |||||
Long term debt | |||||||
Principal | 300,000,000 | 300,000,000 | |||||
Debt Issuance Costs, Net | (3,600,000) | (3,800,000) | |||||
Debt, Net | $ 296,400,000 | $ 296,200,000 | |||||
Debt issued | $ 300,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | 4.60% | 4.60% | ||||
Revolving Credit Facility | |||||||
Long term debt | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 850,000,000 | ||||||
Available borrowing capacity | $ 784,800,000 | ||||||
Senior Credit Agreement Member [Member] | |||||||
Long term debt | |||||||
Interest spread in basis points (as a percent) | 1.25% | ||||||
Maximum leverage ratio | 3.75 | ||||||
Minimum interest coverage ratio | 2.50 | ||||||
Debt Instrument, Dividends and Other Distributions Restrictions, Dollar Restriction | $ 1,460,000,000 | ||||||
Dividend payment restriction under credit agreement | |||||||
Percentage of consolidated net income of the Company and its subsidiaries accrued on a cumulative basis during the period beginning per the credit agreement and ending on the last day of the fiscal quarter | 50.00% | ||||||
Percentage of consolidated net deficit of the Company and its subsidiaries accrued on a cumulative basis during the period beginning per the credit agreement and ending on the last day of the fiscal quarter | 100.00% | ||||||
Percentage of aggregate net proceeds received by the Company subsequent to the date defined in the credit agreement as a contribution to its common equity or from the issuance and sale of its Common Stock | 100.00% | ||||||
Senior Credit Agreement Member [Member] | Minimum | |||||||
Long term debt | |||||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.125% | ||||||
Senior Credit Agreement Member [Member] | Maximum | |||||||
Long term debt | |||||||
Revolving credit facility, unused commitment fee rate (as a percent) | 0.275% | ||||||
Letter of credit | |||||||
Long term debt | |||||||
Letters of credit outstanding | $ 65,200,000 | ||||||
Letter of credit fees percentage on available borrowing capacity, low end of range (as a percent) | 0.563% | ||||||
Letter of credit fees percentage on available borrowing capacity, high end of range (as a percent) | 1.75% | ||||||
Credit agreement - dollar-denominated loans | Federal funds rate | |||||||
Long term debt | |||||||
Interest spread in basis points (as a percent) | 0.50% | ||||||
Credit agreement - dollar-denominated loans | LIBOR | |||||||
Long term debt | |||||||
Interest spread in basis points (as a percent) | 1.00% |
Warranties (Details)
Warranties (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in warranty liability | ||
Balance at beginning of period | $ 75.3 | $ 68 |
Standard Product Warranty Accrual Decrease, Adoption of ASU 2014-09 | (14.3) | 0 |
Warranty provisions | 21.2 | 24.7 |
Settlements made | (22.8) | (23.8) |
Changes in liability for pre-existing warranties, net | (0.3) | 2 |
Foreign currency translation | (0.2) | 0.1 |
Balance at end of period | $ 58.9 | $ 71 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Product warranty term | 6 months | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Product warranty term | 5 years |
Guarantee Arrangements (Details
Guarantee Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Indirect guarantee of deferred payment and lease payment agreements member | ||||
Guarantee Obligations | ||||
Guarantee obligations, maximum exposure | $ 652.1 | $ 652.1 | ||
Aggregate amount of indebtedness which the Company is a party to through guarantee agreements | 121.9 | 121.9 | ||
Changes in provision for loss on customer guarantees | ||||
Balance at beginning of period | 10.1 | $ 9.8 | 10.4 | $ 9.1 |
Provision for new credit guarantees | 3.1 | 0.4 | 4.4 | 1.7 |
Changes for pre-existing guarantees, net | 1 | (0.6) | 0.1 | (0.6) |
Amortization of previous guarantees | (1.3) | (0.6) | (2) | (1.2) |
Guarantee Obligations Currency Translation Increase (Decrease) | 0 | 0.1 | 0 | 0.1 |
Balance at end of period | 12.9 | $ 9.1 | 12.9 | $ 9.1 |
Residual Value Guarantee [Domain] | ||||
Guarantee Obligations | ||||
Guarantee obligations, maximum exposure | 107.4 | 107.4 | ||
Residual Value Guarantee Obligations - Aggregate | $ 10.7 | $ 10.7 |
Contingencies, Significant Es_2
Contingencies, Significant Estimates and Concentrations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | |
Loss contingencies | |||
Unusual or Infrequent Item, or Both, Loss, Gross | $ 3.3 | ||
Replacement cost of damaged property, plant and equipment | 10 | $ 10 | |
Unusual or Infrequent Item, or Both, Insurance Proceeds | 5 | ||
Personal injury actions and other | |||
Loss contingencies | |||
Maximum self-insurance available per claim | 5 | ||
Reserve for loss contingencies | 37.8 | 37.8 | $ 36 |
Performance and specialty bonds | |||
Loss contingencies | |||
Commitments and contingencies | 693.6 | 693.6 | 599.2 |
Standby letters of credit | |||
Loss contingencies | |||
Commitments and contingencies | $ 65.2 | $ 65.2 | $ 91.1 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 43 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Aug. 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||||||
Number of shares of common stock authorized for buyback (in shares) | 10,000,000 | |||||
Remaining number of shares authorized to be repurchased (in shares) | 1,362,821 | 1,362,821 | 1,362,821 | 10,299,198 | ||
Treasury stock, shares, acquired (in shares) | 2,876,713 | 1,587,013 | 8,936,377 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 25 | $ 65 | $ 195 | $ 128.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Balance at beginning of period | $ 2,513.5 | $ 2,513.5 | |||
Total other comprehensive income (loss), net of tax | $ (10.9) | $ 17.3 | (19.7) | $ 19.9 | |
Balance at end of period | 2,453.1 | 2,499.7 | 2,499.7 | ||
Employee Pension and Postretirement Benefits, Net of Tax | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Balance at beginning of period | (10.9) | (20) | (45.7) | (10.9) | (46.2) |
Other comprehensive income (loss) before reclassifications | (3.9) | 0 | (3.9) | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.1 | 0.5 | 0.1 | 1 | |
Total other comprehensive income (loss), net of tax | (3.8) | 0.5 | (3.8) | 1 | |
Balance at end of period | (20) | (23.8) | (45.2) | (23.8) | (45.2) |
Cumulative Translation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Balance at beginning of period | (96.2) | (105) | (76.5) | (96.2) | (78.6) |
Other comprehensive income (loss) before reclassifications | (6.9) | 16.5 | (15.7) | 18.6 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss), net of tax | (6.9) | 16.5 | (15.7) | 18.6 | |
Balance at end of period | (96.2) | (111.9) | (60) | (111.9) | (60) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Balance at beginning of period | 0.3 | 0.3 | (0.2) | 0.3 | (0.2) |
Other comprehensive income (loss) before reclassifications | (0.2) | 0.3 | (0.2) | 0.3 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss), net of tax | (0.2) | 0.3 | (0.2) | 0.3 | |
Balance at end of period | 0.3 | 0.1 | 0.1 | 0.1 | 0.1 |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Balance at beginning of period | (106.8) | (124.7) | (122.4) | (106.8) | (125) |
Other comprehensive income (loss) before reclassifications | (11) | 16.8 | (19.8) | 18.9 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.1 | 0.5 | 0.1 | 1 | |
Total other comprehensive income (loss), net of tax | (10.9) | 17.3 | (19.7) | 19.9 | |
Balance at end of period | (115.9) | $ (135.6) | $ (105.1) | $ (135.6) | $ (105.1) |
Accounting Standards Update 2018-02 [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||||
Accounting Standards Update 2018-02 [Member] | Employee Pension and Postretirement Benefits, Net of Tax | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (9.1) | ||||
Accounting Standards Update 2018-02 [Member] | Cumulative Translation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||||
Accounting Standards Update 2018-02 [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | ||||
Accounting Standards Update 2018-02 [Member] | Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (9.1) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Pension and Postretirement Benefits, Net of Tax | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax provision (benefit) | $ (0.2) | $ (0.2) | $ (0.1) | $ (0.4) |
Net of tax | 0.1 | 0.5 | 0.1 | 1 |
Total before tax | 0.3 | 0.7 | 0.2 | 1.4 |
Prior service costs | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 0.2 | 0.2 | 0.2 | 0.4 |
Actuarial (gains) losses | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | $ 0.1 | $ 0.5 | $ 0 | $ 1 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Fair value measured on recurring basis - USD ($) $ in Millions | Mar. 31, 2019 | Sep. 30, 2018 | |
Assets: | |||
SERP plan assets | [1] | $ 21.4 | $ 22.1 |
Foreign currency exchange derivatives | [2] | 0.3 | 0.8 |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0.4 | 0.2 |
Level 1 | |||
Assets: | |||
SERP plan assets | [1] | 21.4 | 22.1 |
Foreign currency exchange derivatives | [2] | 0 | 0 |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0 | 0 |
Level 2 | |||
Assets: | |||
SERP plan assets | [1] | 0 | 0 |
Foreign currency exchange derivatives | [2] | 0.3 | 0.8 |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | 0.4 | 0.2 |
Level 3 | |||
Assets: | |||
SERP plan assets | [1] | 0 | 0 |
Foreign currency exchange derivatives | [2] | 0 | 0 |
Liabilities: | |||
Foreign currency exchange derivatives | [2] | $ 0 | $ 0 |
[1] | Represents investments in a rabbi trust for the Company’s non-qualified supplemental executive retirement plan (SERP). The fair values of these investments are determined using a market approach. Investments include mutual funds for which quoted prices in active markets are available. The Company records changes in the fair value of investments in “Miscellaneous, net” in the Condensed Consolidated Statements of Income. | ||
[2] | Based on observable market transactions of forward currency prices. |
Business Segment Information (D
Business Segment Information (Details) | 6 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments of entity (in segments) | 4 |
Business Segment Information _2
Business Segment Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | ||
Business Segment Information | |||||||
Assets | $ 5,469.4 | $ 5,469.4 | $ 5,298.1 | $ 5,294.2 | |||
Net sales: | |||||||
Revenues | 1,990.2 | $ 1,886.4 | 3,793.6 | $ 3,472.7 | |||
Operating income (loss) from continuing operations: | |||||||
Operating income (loss): | 175.6 | 156.4 | 336.1 | 230.9 | |||
Interest expense, net of interest income | (11.7) | (8) | (23.2) | (21.7) | |||
Miscellaneous income (expense), net | 1.2 | (1.3) | 0 | (1.5) | |||
Income before income taxes and earnings (losses) of unconsolidated affiliates | 165.1 | 147.1 | 312.9 | 207.7 | |||
Access equipment | |||||||
Net sales: | |||||||
Revenues | 987.6 | 927.9 | 1,814.1 | 1,556.1 | |||
Operating income (loss) from continuing operations: | |||||||
Operating income (loss): | 119.8 | 97.6 | 186.2 | 111.3 | |||
Access equipment | Aerial work platforms | |||||||
Net sales: | |||||||
Revenues | 463.5 | 487.2 | 801.2 | 810.7 | |||
Access equipment | Telehandlers | |||||||
Net sales: | |||||||
Revenues | 319.5 | 234.9 | 589 | 364.4 | |||
Access equipment | Other | |||||||
Net sales: | |||||||
Revenues | 204.6 | 205.8 | 423.9 | 381 | |||
Defense | |||||||
Net sales: | |||||||
Revenues | 486.2 | 427.8 | 950 | 921 | |||
Operating income (loss) from continuing operations: | |||||||
Operating income (loss): | 52.2 | 48.4 | 123.3 | 114.2 | |||
Fire & emergency | |||||||
Net sales: | |||||||
Revenues | 279 | 269.1 | 570.2 | 494 | |||
Operating income (loss) from continuing operations: | |||||||
Operating income (loss): | 36.6 | 36 | 76.5 | 61.3 | |||
Commercial | |||||||
Net sales: | |||||||
Revenues | 237.1 | 261.5 | 458.7 | 501.2 | |||
Operating income (loss) from continuing operations: | |||||||
Operating income (loss): | 7.8 | 16.4 | 26.5 | 24.7 | |||
Commercial | Concrete placement | |||||||
Net sales: | |||||||
Revenues | 115.3 | 114.6 | 197 | 226.1 | |||
Commercial | Refuse collection | |||||||
Net sales: | |||||||
Revenues | 92 | 117.8 | 201.2 | 219 | |||
Commercial | Other | |||||||
Net sales: | |||||||
Revenues | 29.8 | 29.1 | 60.5 | 56.1 | |||
Intersegment eliminations | |||||||
Net sales: | |||||||
Revenues | 0.3 | 0.1 | 0.6 | 0.4 | |||
Operating segments | |||||||
Net sales: | |||||||
Revenues | 1,990.2 | 1,886.4 | 3,793.6 | 3,472.7 | |||
Operating segments | Access equipment | |||||||
Business Segment Information | |||||||
Assets | 3,010.6 | 3,010.6 | 2,829 | ||||
Net sales: | |||||||
Revenues | 987.6 | 927.9 | 1,814.1 | 1,556.1 | |||
Operating segments | Access equipment | Aerial work platforms | |||||||
Net sales: | |||||||
Revenues | 463.5 | 487.2 | 801.2 | 810.7 | |||
Operating segments | Access equipment | Telehandlers | |||||||
Net sales: | |||||||
Revenues | 319.5 | 234.9 | 589 | 364.4 | |||
Operating segments | Access equipment | Other | |||||||
Net sales: | |||||||
Revenues | 204.6 | 205.8 | 423.9 | 381 | |||
Operating segments | Defense | |||||||
Business Segment Information | |||||||
Assets | 836.4 | 836.4 | 829.3 | ||||
Net sales: | |||||||
Revenues | 486.7 | 428.2 | 950.8 | 921.7 | |||
Operating segments | Fire & emergency | |||||||
Net sales: | |||||||
Revenues | 283.2 | 273.1 | 578.7 | 502.2 | |||
Operating segments | Commercial | |||||||
Business Segment Information | |||||||
Assets | 481.1 | 481.1 | 409.7 | ||||
Net sales: | |||||||
Revenues | 237.9 | 263.9 | 460.1 | 505.3 | |||
Operating segments | Commercial | Concrete placement | |||||||
Net sales: | |||||||
Revenues | 115.3 | 114.6 | 197 | 226.1 | |||
Operating segments | Commercial | Refuse collection | |||||||
Net sales: | |||||||
Revenues | 92 | 117.8 | 201.2 | 219 | |||
Operating segments | Commercial | Other | |||||||
Net sales: | |||||||
Revenues | 30.6 | 31.5 | 61.9 | 60.2 | |||
Operating segments | Intersegment eliminations | |||||||
Net sales: | |||||||
Revenues | (5.2) | (6.7) | (10.1) | (12.6) | |||
Corporate, non-segment | |||||||
Business Segment Information | |||||||
Assets | 591.7 | 591.7 | 661.3 | ||||
Operating income (loss) from continuing operations: | |||||||
Operating income (loss): | (40.8) | (42) | (76.4) | (80.6) | |||
Intersegment eliminations | |||||||
Net sales: | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Intersegment eliminations | Access equipment | |||||||
Net sales: | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Intersegment eliminations | Access equipment | Aerial work platforms | |||||||
Net sales: | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Intersegment eliminations | Access equipment | Telehandlers | |||||||
Net sales: | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Intersegment eliminations | Access equipment | Other | |||||||
Net sales: | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Intersegment eliminations | Defense | |||||||
Net sales: | |||||||
Revenues | 0.5 | 0.4 | 0.8 | 0.7 | |||
Intersegment eliminations | Fire & emergency | |||||||
Net sales: | |||||||
Revenues | 4.2 | 4 | 8.5 | 8.2 | |||
Intersegment eliminations | Commercial | |||||||
Net sales: | |||||||
Revenues | 0.8 | 2.4 | 1.4 | 4.1 | |||
Intersegment eliminations | Commercial | Concrete placement | |||||||
Net sales: | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Intersegment eliminations | Commercial | Refuse collection | |||||||
Net sales: | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Intersegment eliminations | Commercial | Other | |||||||
Net sales: | |||||||
Revenues | 0.8 | 2.4 | 1.4 | 4.1 | |||
Intersegment eliminations | Intersegment eliminations | |||||||
Net sales: | |||||||
Revenues | (5.5) | (6.8) | (10.7) | (13) | |||
UNITED STATES | Operating segments | Access equipment | |||||||
Business Segment Information | |||||||
Assets | 2,341.2 | 2,341.2 | 2,207.2 | ||||
UNITED STATES | Operating segments | Defense | |||||||
Business Segment Information | |||||||
Assets | 829.2 | 829.2 | 824.2 | ||||
UNITED STATES | Operating segments | Fire & emergency | |||||||
Business Segment Information | |||||||
Assets | 549.6 | 549.6 | 564.9 | ||||
UNITED STATES | Operating segments | Commercial | |||||||
Business Segment Information | |||||||
Assets | 434.4 | 434.4 | 364.3 | ||||
UNITED STATES | Corporate, non-segment | |||||||
Business Segment Information | |||||||
Assets | [1] | 481.5 | 481.5 | 548.6 | |||
Europe | Operating segments | Access equipment | |||||||
Business Segment Information | |||||||
Assets | 415 | 415 | 406.6 | ||||
Rest of the World | |||||||
Net sales: | |||||||
Revenues | 116.4 | 88.1 | 197.1 | 162.1 | |||
Rest of the World | Access equipment | |||||||
Net sales: | |||||||
Revenues | 100.4 | 67.9 | 167 | 121.4 | |||
Rest of the World | Defense | |||||||
Net sales: | |||||||
Revenues | 0.1 | 0.1 | 0.1 | 0.1 | |||
Rest of the World | Fire & emergency | |||||||
Net sales: | |||||||
Revenues | 8.3 | 13.1 | 19.8 | 25.5 | |||
Rest of the World | Commercial | |||||||
Net sales: | |||||||
Revenues | 7.5 | 7 | 10.2 | 15 | |||
Rest of the World | Intersegment eliminations | |||||||
Net sales: | |||||||
Revenues | 0.1 | $ 0 | 0 | $ 0.1 | |||
Rest of the World | Operating segments | Access equipment | |||||||
Business Segment Information | |||||||
Assets | 254.4 | 254.4 | 215.2 | ||||
Rest of the World | Operating segments | Defense | |||||||
Business Segment Information | |||||||
Assets | 7.2 | 7.2 | 5.1 | ||||
Rest of the World | Operating segments | Commercial | |||||||
Business Segment Information | |||||||
Assets | 46.7 | 46.7 | 45.4 | ||||
Rest of the World | Corporate, non-segment | |||||||
Business Segment Information | |||||||
Assets | [2] | $ 110.2 | $ 110.2 | $ 112.7 | |||
[1] | Primarily includes cash and short-term investments. | ||||||
[2] | Primarily includes a corporate-led manufacturing facility that supports multiple operating segments. |
Business Segment Information _3
Business Segment Information (Details 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | ||
Revenue and assets by geography | |||||||
Identifiable assets | $ 5,469.4 | $ 5,469.4 | $ 5,298.1 | $ 5,294.2 | |||
Revenues | 1,990.2 | $ 1,886.4 | 3,793.6 | $ 3,472.7 | |||
North America | |||||||
Revenue and assets by geography | |||||||
Revenues | 1,688.4 | 1,627.9 | 3,268.6 | 2,904.7 | |||
Europe, Africa and Middle East | |||||||
Revenue and assets by geography | |||||||
Revenues | 185.4 | 170.4 | 327.9 | 405.9 | |||
Rest of the World | |||||||
Revenue and assets by geography | |||||||
Revenues | 116.4 | 88.1 | 197.1 | 162.1 | |||
Access equipment | |||||||
Revenue and assets by geography | |||||||
Revenues | 987.6 | 927.9 | 1,814.1 | 1,556.1 | |||
Access equipment | North America | |||||||
Revenue and assets by geography | |||||||
Revenues | 724 | 709.3 | 1,370.2 | 1,171.5 | |||
Access equipment | Europe, Africa and Middle East | |||||||
Revenue and assets by geography | |||||||
Revenues | 163.2 | 150.7 | 276.9 | 263.2 | |||
Access equipment | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Revenues | 100.4 | 67.9 | 167 | 121.4 | |||
Defense | |||||||
Revenue and assets by geography | |||||||
Revenues | 486.2 | 427.8 | 950 | 921 | |||
Defense | North America | |||||||
Revenue and assets by geography | |||||||
Revenues | 465.6 | 409.5 | 913.8 | 780.7 | |||
Defense | Europe, Africa and Middle East | |||||||
Revenue and assets by geography | |||||||
Revenues | 21 | 18.6 | 36.9 | 140.9 | |||
Defense | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Revenues | 0.1 | 0.1 | 0.1 | 0.1 | |||
Fire & emergency | |||||||
Revenue and assets by geography | |||||||
Revenues | 279 | 269.1 | 570.2 | 494 | |||
Fire & emergency | North America | |||||||
Revenue and assets by geography | |||||||
Revenues | 274 | 258.9 | 547 | 475.5 | |||
Fire & emergency | Europe, Africa and Middle East | |||||||
Revenue and assets by geography | |||||||
Revenues | 0.9 | 1.1 | 11.9 | 1.2 | |||
Fire & emergency | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Revenues | 8.3 | 13.1 | 19.8 | 25.5 | |||
Commercial | |||||||
Revenue and assets by geography | |||||||
Revenues | 237.1 | 261.5 | 458.7 | 501.2 | |||
Commercial | North America | |||||||
Revenue and assets by geography | |||||||
Revenues | 230.1 | 256.8 | 447.7 | 489.7 | |||
Commercial | Europe, Africa and Middle East | |||||||
Revenue and assets by geography | |||||||
Revenues | 0.3 | 0.1 | 2.2 | 0.6 | |||
Commercial | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Revenues | 7.5 | 7 | 10.2 | 15 | |||
Intersegment Eliminations [Member] | |||||||
Revenue and assets by geography | |||||||
Revenues | 0.3 | 0.1 | 0.6 | 0.4 | |||
Intersegment Eliminations [Member] | North America | |||||||
Revenue and assets by geography | |||||||
Revenues | (5.3) | (6.6) | (10.1) | (12.7) | |||
Intersegment Eliminations [Member] | Europe, Africa and Middle East | |||||||
Revenue and assets by geography | |||||||
Revenues | 0 | (0.1) | 0 | 0 | |||
Intersegment Eliminations [Member] | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Revenues | 0.1 | 0 | 0 | 0.1 | |||
Operating segments | |||||||
Revenue and assets by geography | |||||||
Revenues | 1,990.2 | 1,886.4 | 3,793.6 | 3,472.7 | |||
Operating segments | Access equipment | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 3,010.6 | 3,010.6 | 2,829 | ||||
Revenues | 987.6 | 927.9 | 1,814.1 | 1,556.1 | |||
Operating segments | Access equipment | Europe | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 415 | 415 | 406.6 | ||||
Operating segments | Access equipment | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 254.4 | 254.4 | 215.2 | ||||
Operating segments | Defense | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 836.4 | 836.4 | 829.3 | ||||
Revenues | 486.7 | 428.2 | 950.8 | 921.7 | |||
Operating segments | Defense | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 7.2 | 7.2 | 5.1 | ||||
Operating segments | Fire & emergency | |||||||
Revenue and assets by geography | |||||||
Revenues | 283.2 | 273.1 | 578.7 | 502.2 | |||
Operating segments | Commercial | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 481.1 | 481.1 | 409.7 | ||||
Revenues | 237.9 | 263.9 | 460.1 | 505.3 | |||
Operating segments | Commercial | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 46.7 | 46.7 | 45.4 | ||||
Operating segments | Intersegment Eliminations [Member] | |||||||
Revenue and assets by geography | |||||||
Revenues | (5.2) | $ (6.7) | (10.1) | $ (12.6) | |||
Corporate, non-segment | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | 591.7 | 591.7 | 661.3 | ||||
Corporate, non-segment | Rest of the World | |||||||
Revenue and assets by geography | |||||||
Identifiable assets | [1] | $ 110.2 | $ 110.2 | $ 112.7 | |||
[1] | Primarily includes a corporate-led manufacturing facility that supports multiple operating segments. |