þ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
For the fiscal year ended September 30, 2012 | ||
OR | ||
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
For the transition period from ____ to ____ | ||
Commission File No. 1-6651 |
Indiana
|
35-1160484
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(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
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1069 State Route 46 East
Batesville, Indiana
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47006-8835
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(Address of principal executive offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, without par value
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New York Stock Exchange
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Page
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PART I | ||
3
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||
Item 1. |
3
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Item 1A. |
8
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Item 1B. |
12
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Item 2. |
13
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Item 3. |
13
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Item 4. |
13
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PART II | ||
Item 5. |
14
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Item 6. |
17
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Item 7. |
18
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Item 7A. |
36
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Item 8. |
37
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Item 9. |
78
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Item 9A. |
78
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Item 9B. |
78
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PART III | ||
Item 10. |
79
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Item 11. |
79
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Item 12. |
79
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Item 13. |
79
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Item 14. |
79
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PART IV | ||
Item 15. |
80
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82
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●
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North America - sells and rents our patient support and near-patient technologies and services, as well as our health information technology solutions, in the U.S. and Canada.
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●
|
Surgical and Respiratory Care - sells and rents our surgical and respiratory care products in all settings.
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●
|
International - sells and rents similar products as our North America segment in regions outside of the U.S. and Canada
|
Product Categories
|
Competitors
|
|
Patient Support Systems
|
Stryker Corporation
ArjoHuntleigh (Division of Getinge AB)
Linet
Stiegelmeyer
Invacare
Joerns Healthcare
|
|
Non-Invasive Therapeutic Products
|
SIZEWise Rentals, LLC
RecoverCare, LLC
ArjoHuntleigh (Division of Getinge AB)
|
|
Medical Equipment Management and Contract Services
|
Universal Hospital Services, Inc.
Freedom Medical, Inc.
|
|
Patient Environment and Mobility Solutions
|
ArjoHuntleigh (Division of Getinge AB)
Guldmann
Amico
Modular Services
Herman Miller Healthcare
|
|
Health Information Technology Solutions
|
Rauland-Borg Corporation
Ascom Holding
West-Com Nurse Call Systems, Inc.
Intego Systems, Inc.
SimplexGrinnell LP
Jeron Electronic Systems, Inc.
|
|
Surgical Products
|
MizuhoOSI
Tenet Medical (part of Smith & Nephew)
Schuerch Medical
Action Medical
Myco Medical
Swann-Morton
|
Location
|
Description and Primary Use
|
|
Acton, MA
|
Light manufacturing, development and distribution of health care equipment
Office administration
|
|
Batesville, IN
|
Manufacturing, development and distribution of health care equipment
Office administration
|
|
Caledonia, MI
|
Manufacturing, development and distribution of surgical products
Office administration
|
|
Cary, NC
|
Development of health care equipment
Office administration
|
|
Charleston, SC
|
Development and distribution of medical devices
Office administration
|
|
Chicago, IL
|
Office administration
|
|
St. Paul, MN
|
Office administration
|
|
Montpellier, France
|
Manufacturing and development of medical devices
|
|
Pluvigner, France
|
Manufacturing, development and distribution of health care equipment
Office administration
|
|
Hainichen, Germany
|
Manufacturing and distribution of health care equipment
|
|
Witten, Germany
|
Manufacturing, development and distribution of health care equipment
Office administration
|
|
Monterrey, Mexico
|
Manufacturing of health care equipment
|
|
Las Piedras, Puerto Rico
|
Manufacturing of surgical products
|
|
Singapore
|
Manufacturing and development of health care equipment
Office administration
|
|
Lulea, Sweden
|
Manufacturing, development and distribution of safe mobility and handling solutions
Office administration
|
|
Redditch, UK
|
Manufacturing and distribution of surgical products
Office administration
|
Years Ended September 30
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
Quarter Ended:
|
High
|
Low
|
Cash
Dividends
Declared
|
High
|
Low
|
Cash
Dividends
Declared
|
||||||||||||||||||
December 31
|
$ | 35.11 | $ | 28.63 | $ | 0.1125 | $ | 43.80 | $ | 35.49 | $ | 0.1025 | ||||||||||||
March 31
|
$ | 36.13 | $ | 29.44 | $ | 0.1250 | $ | 44.00 | $ | 34.89 | $ | 0.1025 | ||||||||||||
June 30
|
$ | 34.17 | $ | 28.08 | $ | 0.1250 | $ | 47.19 | $ | 37.92 | $ | 0.1125 | ||||||||||||
September 30
|
$ | 32.69 | $ | 24.69 | $ | 0.1250 | $ | 48.80 | $ | 26.90 | $ | 0.1125 |
Maximum
|
||||||||||||||||
Total Number
|
Number of
|
|||||||||||||||
of Shares
|
Shares That
|
|||||||||||||||
Total
|
Purchased as
|
May Yet Be
|
||||||||||||||
Number
|
Average
|
Part of Publicly
|
Purchased
|
|||||||||||||
of Shares
|
Price Paid
|
Announced Plans or
|
Under the Plans
|
|||||||||||||
Period
|
Purchased (1)
|
per Share
|
Programs (2)
|
or Programs (2)
|
||||||||||||
July 1, 2012 - July 31, 2012
|
- | $ | - | - | 1,980,000 | |||||||||||
August 1, 2012 - August 31, 2012
|
200,779 | 27.09 | 200,000 | 1,780,000 | ||||||||||||
September 1, 2012 - September 30, 2012
|
1,275,000 | 29.01 | 1,275,000 | 505,000 | ||||||||||||
Total
|
1,475,779 | $ | 28.75 | 1,475,000 |
(1)
|
Shares purchased during the quarter ended September 30, 2012 were in connection with the share repurchase program discussed below as well as employee payroll tax withholding for restricted and deferred stock distributions.
|
(2)
|
As of September 30, 2012 the total number of shares available for repurchase was 28.7 million shares of which a cumulative total of 28.2 million shares have been repurchased under this existing authorization. The plan does not have an expiration date and currently there are no plans to terminate this program in the future. In October 2012, the Board approved an expansion of its previously announced share repurchase authorization by 3.5 million shares, bringing the total number of shares available for repurchase to 32.2 million shares.
|
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
|||||||||||||||||||
HRC (HB through March 31, 2008)
|
$ | 100 | $ | 105 | $ | 78 | $ | 130 | $ | 110 | $ | 108 | ||||||||||||
S & P 500
|
100 | 75 | 68 | 74 | 73 | 93 | ||||||||||||||||||
Peer Group
|
100 | 90 | 85 | 100 | 100 | 127 |
April 1, 2008
|
September 30, 2008
|
September 30, 2009
|
September 30, 2010
|
September 30, 2011
|
September 30, 2012
|
|||||||||||||||||||
HRC
|
$ | 100 | $ | 115 | $ | 85 | $ | 142 | $ | 120 | $ | 118 | ||||||||||||
S & P 500
|
100 | 85 | 77 | 83 | 83 | 105 | ||||||||||||||||||
Peer Group
|
100 | 91 | 85 | 100 | 100 | 128 |
*
|
For purposes of the Stock Performance Graphs above, our Peer Group is comprised of: Alere Inc.; C.R. Bard, Inc.; CareFusion Corp.; Chemed Corp.; Conmed Corporation; Dentsply International Inc.; Edwards Lifesciences Corporation; Hologic, Inc.; Hospira, Inc.; IDEXX Laboratories, Inc.; Integra Lifesciences Holdings Corporation; Intuitive Surgical, Inc.; Invacare Corporation; Mednax, Inc.; Mettler-Toledo International Inc.; PerkinElmer, Inc.; ResMed Inc.; Sirona Dental Systems Labs, Inc.; Steris Corporation; Teleflex, Inc.; The Cooper Companies, Inc.; Varian Medical Systems, Inc; West Pharmaceutical Services, Inc.; and Zimmer Holdings, Inc.
|
(In millions except per share data)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||
Net revenues
|
$ | 1,634.3 | $ | 1,591.7 | $ | 1,469.6 | $ | 1,386.9 | $ | 1,507.7 | ||||||||||
Income (loss) from continuing operations
|
$ | 120.8 | $ | 133.5 | $ | 126.0 | $ | (405.0 | ) | $ | 67.1 | |||||||||
Income from discontinued operations
|
$ | - | $ | - | $ | - | $ | - | $ | 48.7 | ||||||||||
Net income (loss) attributable to common shareholders
|
$ | 120.8 | $ | 133.3 | $ | 125.3 | $ | (405.0 | ) | $ | 115.8 | |||||||||
Income (loss) attributable to common shareholders per share
|
||||||||||||||||||||
from continuing operations - Diluted
|
$ | 1.94 | $ | 2.09 | $ | 1.97 | $ | (6.47 | ) | $ | 1.07 | |||||||||
Income per share from discontinued operations - Diluted
|
$ | - | $ | - | $ | - | $ | - | $ | 0.78 | ||||||||||
Net income (loss) attributable to common shareholders per share - Diluted
|
$ | 1.94 | $ | 2.09 | $ | 1.97 | $ | (6.47 | ) | $ | 1.85 | |||||||||
Total assets
|
$ | 1,627.6 | $ | 1,299.1 | $ | 1,245.6 | $ | 1,232.6 | $ | 1,689.9 | ||||||||||
Long-term obligations
|
$ | 237.5 | $ | 50.8 | $ | 98.5 | $ | 99.7 | $ | 100.3 | ||||||||||
Cash flows from operating activities
|
$ | 261.7 | $ | 222.5 | $ | 139.8 | $ | 225.7 | $ | 270.5 | ||||||||||
Capital expenditures
|
$ | 77.8 | $ | 68.9 | $ | 64.7 | $ | 63.9 | $ | 102.6 | ||||||||||
Cash dividends per share
|
$ | 0.49 | $ | 0.43 | $ | 0.41 | $ | 0.41 | $ | 0.78 |
Years Ended September 30
|
||||||||||||||||||||||||
|
% of Related
|
|
% of Related
|
|
% of Related
|
|||||||||||||||||||
(In millions except per share data)
|
2012
|
Revenues
|
2011
|
Revenues
|
2010
|
Revenues
|
||||||||||||||||||
Net Revenues
|
||||||||||||||||||||||||
Capital sales
|
$ | 1,198.2 | 73.3 | % | $ | 1,119.0 | 70.3 | % | $ | 996.6 | 67.8 | % | ||||||||||||
Rental revenues
|
436.1 | 26.7 | % | 472.7 | 29.7 | % | 473.0 | 32.2 | % | |||||||||||||||
Total Revenues
|
1,634.3 | 100.0 | % | 1,591.7 | 100.0 | % | 1,469.6 | 100.0 | % | |||||||||||||||
Gross Profit
|
||||||||||||||||||||||||
Capital sales
|
507.8 | 42.4 | % | 512.2 | 45.8 | % | 448.0 | 45.0 | % | |||||||||||||||
Rental revenues
|
246.9 | 56.6 | % | 269.1 | 56.9 | % | 268.6 | 56.8 | % | |||||||||||||||
Total Gross Profit
|
754.7 | 46.2 | % | 781.3 | 49.1 | % | 716.6 | 48.8 | % | |||||||||||||||
Research and development expenses
|
66.9 | 4.1 | % | 63.8 | 4.0 | % | 58.3 | 4.0 | % | |||||||||||||||
Selling and administrative expenses
|
496.4 | 30.4 | % | 502.0 | 31.5 | % | 474.6 | 32.3 | % | |||||||||||||||
Litigation (credit) charge
|
(3.6 | ) | -0.2 | % | 47.3 | 3.0 | % | (21.2 | ) | -1.4 | % | |||||||||||||
Impairment of goodwill and other intangibles
|
8.0 | 0.5 | % | - | - | - | - | |||||||||||||||||
Special charges
|
18.2 | 1.1 | % | 1.4 | 0.1 | % | 13.2 | 0.9 | % | |||||||||||||||
Operating Profit
|
168.8 | 10.3 | % | 166.8 | 10.5 | % | 191.7 | 13.0 | % | |||||||||||||||
Other income (expense), net
|
(5.3 | ) | -0.3 | % | (7.1 | ) | -0.4 | % | (8.8 | ) | -0.6 | % | ||||||||||||
Income Before Income Taxes
|
163.5 | 10.0 | % | 159.7 | 10.0 | % | 182.9 | 12.4 | % | |||||||||||||||
Income tax expense
|
42.7 | 2.6 | % | 26.2 | 1.6 | % | 56.9 | 3.9 | % | |||||||||||||||
Net Income
|
120.8 | 7.4 | % | 133.5 | 8.4 | % | 126.0 | 8.6 | % | |||||||||||||||
Less: Net income attributable to noncontrolling interest
|
- | - | 0.2 | - | 0.7 | - | ||||||||||||||||||
Net Income Attributable to Common Shareholders
|
$ | 120.8 | 7.4 | % | $ | 133.3 | 8.4 | % | $ | 125.3 | 8.5 | % | ||||||||||||
Net Income Attributable to Common Shareholders
|
||||||||||||||||||||||||
per Common Share - Diluted
|
$ | 1.94 | $ | 2.09 | $ | 1.97 | ||||||||||||||||||
|
||||||||||||||||||||||||
Note: Certain percentage amounts may not add due to rounding.
|
Years Ended September 30
|
Percentage Change
|
|||||||||||||||
|
|
Constant
|
||||||||||||||
(Dollars in millions)
|
2012
|
2011
|
As Reported
|
Currency
|
||||||||||||
Revenues:
|
||||||||||||||||
Capital sales
|
$ | 1,198.2 | $ | 1,119.0 | 7.1 | 8.9 | ||||||||||
Rental revenues
|
436.1 | 472.7 | (7.7 | ) | (7.0 | ) | ||||||||||
Total Revenues
|
$ | 1,634.3 | $ | 1,591.7 | 2.7 | 4.2 |
Years Ended September 30
|
||||||||||||
Percentage
|
||||||||||||
(Dollars in millions)
|
2012
|
2011
|
Change
|
|||||||||
Gross Profit
|
||||||||||||
Capital sales
|
$ | 507.8 | $ | 512.2 | (0.9 | ) | ||||||
Percent of Related Revenues
|
42.4 | % | 45.8 | % | ||||||||
Rental revenues
|
$ | 246.9 | $ | 269.1 | (8.2 | ) | ||||||
Percent of Related Revenues
|
56.6 | % | 56.9 | % | ||||||||
Total Gross Profit
|
$ | 754.7 | $ | 781.3 | (3.4 | ) | ||||||
Percent of Related Revenues
|
46.2 | % | 49.1 | % |
Years Ended September 30
|
||||||||||||
|
|
Percentage
|
||||||||||
(Dollars in millions)
|
2012
|
2011
|
Change
|
|||||||||
Research and development expenses
|
$ | 66.9 | $ | 63.8 | 4.9 | |||||||
Percent of Total Revenues
|
4.1 | % | 4.0 | % | ||||||||
Selling and administrative expenses
|
$ | 496.4 | $ | 502.0 | (1.1 | ) | ||||||
Percent of Total Revenues
|
30.4 | % | 31.5 | % | ||||||||
Litigation (credit) charge
|
$ | (3.6 | ) | $ | 47.3 | n/a | ||||||
Impairment of goodwill and other intangibles
|
$ | 8.0 | $ | - | n/a | |||||||
Special charges
|
$ | 18.2 | $ | 1.4 | n/a | |||||||
Interest expense
|
$ | (6.5 | ) | $ | (8.5 | ) | (23.5 | ) | ||||
Investment income and other, net
|
$ | 1.2 | $ | 1.4 | (14.3 | ) |
Years Ended September 30
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
(Dollars in millions, except for per share amounts)
|
Income Before
Income Taxes |
Income Tax
Expense
|
Diluted EPS (1)
|
Income Before
Income Taxes
and NCI (1) (2)
|
Income Tax
Expense (1)
|
Diluted EPS
|
||||||||||||||||||
GAAP Earnings
|
$ | 163.5 | $ | 42.7 | $ | 1.94 | $ | 159.7 | $ | 26.2 | $ | 2.09 | ||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Vendor product recall
|
(6.5 | ) | (2.5 | ) | (0.06 | ) | (2.3 | ) | (0.9 | ) | (0.02 | ) | ||||||||||||
Acquisition and integration costs
|
11.7 | 2.9 | 0.14 | 1.0 | 0.4 | 0.01 | ||||||||||||||||||
Special charges
|
18.2 | 6.8 | 0.18 | 1.4 | 0.5 | 0.01 | ||||||||||||||||||
Impairment of other intangibles
|
8.0 | 2.1 | 0.09 | - | - | - | ||||||||||||||||||
Field corrective action
|
16.0 | 5.9 | 0.16 | - | - | - | ||||||||||||||||||
Litigation (credit) charge
|
(3.6 | ) | (1.3 | ) | (0.04 | ) | 47.3 | 14.2 | 0.52 | |||||||||||||||
International tax reorganization and recognition of
|
||||||||||||||||||||||||
unrecognized tax attributes
|
- | 11.0 | (0.18 | ) | - | 21.5 | (0.34 | ) | ||||||||||||||||
Adjusted Earnings
|
$ | 207.3 | $ | 67.6 | $ | 2.24 | $ | 207.2 | $ | 61.8 | $ | 2.27 | ||||||||||||
(1) May not add due to rounding.
|
||||||||||||||||||||||||
(2) NCI refers to our noncontrolling interest in our former Encompass joint venture.
|
Years Ended September 30
|
Percentage Change
|
|||||||||||||||
|
|
Constant
|
||||||||||||||
(Dollars in millions)
|
2012
|
2011
|
As Reported
|
Currency
|
||||||||||||
Revenues:
|
||||||||||||||||
North America
|
$ | 998.2 | $ | 1,057.2 | (5.6 | ) | (5.5 | ) | ||||||||
Surgical and Respiratory Care
|
153.2 | 132.9 | 15.3 | 15.3 | ||||||||||||
International
|
482.9 | 401.6 | 20.2 | 25.8 | ||||||||||||
Total revenues
|
$ | 1,634.3 | $ | 1,591.7 | 2.7 | 4.2 | ||||||||||
Divisional income:
|
||||||||||||||||
North America
|
$ | 198.9 | $ | 230.6 | (13.7 | ) | ||||||||||
Surgical and Respiratory Care
|
38.1 | 40.0 | (4.8 | ) | ||||||||||||
International
|
18.6 | 27.9 | (33.3 | ) | ||||||||||||
Corporate expenses
|
(64.2 | ) | (83.0 | ) | (22.7 | ) | ||||||||||
Total divisional income
|
$ | 191.4 | $ | 215.5 | (11.2 | ) |
Years Ended September 30
|
Percentage Change
|
|||||||||||||||
|
|
Constant
|
||||||||||||||
(Dollars in millions)
|
2011
|
2010
|
As Reported
|
Currency
|
||||||||||||
Revenues:
|
||||||||||||||||
Capital sales
|
$ | 1,119.0 | $ | 996.6 | 12.3 | 10.8 | ||||||||||
Rental revenues
|
472.7 | 473.0 | (0.1 | ) | (0.6 | ) | ||||||||||
Total Revenues
|
$ | 1,591.7 | $ | 1,469.6 | 8.3 | 7.2 |
Years Ended September 30
|
||||||||||||
Percentage
|
||||||||||||
(Dollars in millions)
|
2011
|
2010
|
Change
|
|||||||||
Gross Profit
|
||||||||||||
Capital sales
|
$ | 512.2 | $ | 448.0 | 14.3 | |||||||
Percent of Related Revenues
|
45.8 | % | 45.0 | % | ||||||||
Rental revenues
|
$ | 269.1 | $ | 268.6 | 0.2 | |||||||
Percent of Related Revenues
|
56.9 | % | 56.8 | % | ||||||||
Total Gross Profit
|
$ | 781.3 | $ | 716.6 | 9.0 | |||||||
Percent of Related Revenues
|
49.1 | % | 48.8 | % |
Years Ended September 30
|
||||||||||||
|
|
Percentage
|
||||||||||
(Dollars in millions)
|
2011
|
2010
|
Change
|
|||||||||
Research and development expenses
|
$ | 63.8 | $ | 58.3 | 9.4 | |||||||
Percent of Total Revenues
|
4.0 | % | 4.0 | % | ||||||||
Selling and administrative expenses
|
$ | 502.0 | $ | 474.6 | 5.8 | |||||||
Percent of Total Revenues
|
31.5 | % | 32.3 | % | ||||||||
Litigation charge (credit)
|
$ | 47.3 | $ | (21.2 | ) | n/a | ||||||
Special charges
|
$ | 1.4 | $ | 13.2 | n/a | |||||||
Interest expense
|
$ | (8.5 | ) | $ | (8.7 | ) | (2.3 | ) | ||||
Investment income and other, net
|
$ | 1.4 | $ | (0.1 | ) | n/a |
Years Ended September 30
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Income Before
Income Taxes
and NCI (1) (2)
|
||||||||||||||||||||||||
(Dollars in millions, except for per share amounts)
|
Income Tax
Expense (1)
|
Diluted EPS
|
Income Before
Income Taxes
and NCI (2)
|
Income Tax
Expense
|
Diluted EPS
(1)
|
|||||||||||||||||||
GAAP Earnings
|
$ | 159.7 | $ | 26.2 | $ | 2.09 | $ | 182.9 | $ | 56.9 | $ | 1.97 | ||||||||||||
Adjustments:
|
||||||||||||||||||||||||
Litigation charge (credit)
|
47.3 | 14.2 | 0.52 | (21.2 | ) | (8.3 | ) | (0.20 | ) | |||||||||||||||
Vendor product recall
|
(2.3 | ) | (0.9 | ) | (0.02 | ) | - | - | - | |||||||||||||||
Special charges
|
1.4 | 0.5 | 0.01 | 13.2 | 5.0 | 0.13 | ||||||||||||||||||
Acquisition and integration costs
|
1.0 | 0.4 | 0.01 | - | - | - | ||||||||||||||||||
Recognition of previously unrecognized tax attributes
|
- | 21.5 | (0.34 | ) | - | - | - | |||||||||||||||||
Gain on sale of non-strategic assets
|
- | - | - | - | 1.7 | (0.03 | ) | |||||||||||||||||
Tax settlement
|
- | - | - | - | 6.5 | (0.10 | ) | |||||||||||||||||
Adjusted Earnings
|
$ | 207.2 | $ | 61.8 | $ | 2.27 | $ | 174.9 | $ | 61.8 | $ | 1.76 | ||||||||||||
(1) May not add due to rounding.
|
||||||||||||||||||||||||
(2) NCI refers to our noncontrolling interest in our former Encompass joint venture.
|
Years Ended September 30
|
Percentage Change
|
|||||||||||||||
|
|
Constant
|
||||||||||||||
(Dollars in millions)
|
2011
|
2010
|
As Reported
|
Currency
|
||||||||||||
Revenues:
|
||||||||||||||||
North America
|
$ | 1,057.2 | $ | 958.2 | 10.3 | 10.0 | ||||||||||
Surgical and Respiratory
|
132.9 | 123.3 | 7.8 | 7.8 | ||||||||||||
International
|
401.6 | 388.1 | 3.5 | 0.1 | ||||||||||||
Total revenues
|
$ | 1,591.7 | $ | 1,469.6 | 8.3 | 7.2 | ||||||||||
Divisional income:
|
||||||||||||||||
North America
|
$ | 230.6 | $ | 185.7 | 24.2 | |||||||||||
Surgical and Respiratory
|
40.0 | 38.1 | 5.0 | |||||||||||||
International
|
27.9 | 29.9 | (6.7) | |||||||||||||
Corporate expenses
|
(83.0 | ) | (70.0 | ) | 18.6 | |||||||||||
Total divisional income
|
$ | 215.5 | $ | 183.7 | 17.3 |
Years Ended September 30
|
||||||||||||
(Dollars in millions)
|
2012
|
2011
|
2010
|
|||||||||
Cash Flows Provided By (Used In):
|
||||||||||||
Operating activities
|
$ | 261.7 | $ | 222.5 | $ | 139.8 | ||||||
Investing activities
|
(539.5 | ) | (78.0 | ) | (38.2 | ) | ||||||
Financing activities
|
135.6 | (101.9 | ) | (87.4 | ) | |||||||
Effect of exchange rate changes on cash
|
1.9 | (2.5 | ) | (0.3 | ) | |||||||
(Decrease) Increase in Cash and Cash Equivalents
|
$ | (140.3 | ) | $ | 40.1 | $ | 13.9 |
Payments Due by Period
|
||||||||||||||||||||
Less Than
|
1 - 3 | 4 - 5 |
After 5
|
|||||||||||||||||
(Dollars in millions)
|
Total
|
1 Year
|
Years
|
Years
|
Years
|
|||||||||||||||
Contractual Obligations
|
||||||||||||||||||||
Long-term debt obligations
|
$ | 247.5 | $ | 10.0 | $ | 27.5 | $ | 160.0 | $ | 50.0 | ||||||||||
Interest payments relating to long-term debt (1)
|
59.9 | 6.3 | 12.1 | 10.5 | 31.0 | |||||||||||||||
Operating lease obligations
|
59.8 | 19.7 | 23.2 | 12.4 | 4.5 | |||||||||||||||
Pension and postretirement
|
||||||||||||||||||||
health care benefit funding (2)
|
15.8 | 1.3 | 2.7 | 3.2 | 8.6 | |||||||||||||||
Purchase obligations (3)
|
44.6 | 32.7 | 11.5 | 0.4 | - | |||||||||||||||
Other long-term liabilities (4)
|
29.7 | - | 15.6 | 12.4 | 1.7 | |||||||||||||||
Total contractual cash obligations
|
$ | 458.3 | $ | 71.0 | $ | 92.6 | $ | 198.9 | $ | 95.8 |
(1)
|
Interest payments on our long-term debt are projected based on the contractual rates of remaining debt securities.
|
(2)
|
Given the significant funding contribution made during fiscal 2010, we currently do not anticipate any further contributions to our master pension plan in fiscal 2013.
|
(3)
|
Purchase obligations represent contractual obligations under various take-or-pay arrangements executed in the normal course of business. These commitments represent future purchases in line with expected usage to obtain favorable pricing. Also included are obligations arising from purchase orders for which we have made firm commitments. As a result, we believe that the purchase obligations portion of our contractual obligations is substantially those obligations for which we are certain to pay, regardless of future facts and circumstances. We expect to fund purchase obligations with operating cash flows and current cash balances.
|
(4)
|
Other long-term liabilities include deferred compensation arrangements, self-insurance reserves, and other various liabilities.
|
•
|
Evidence of an arrangement: An agreement with the customer reflecting the terms and conditions to deliver products or services serves as evidence of an arrangement.
|
•
|
Delivery: For products, delivery is considered to occur upon receipt by the customer and the transfer of title and risk of loss. For rental services, delivery is considered to occur when the services are rendered.
|
•
|
Fixed or determinable price: The sales price is considered fixed or determinable if it is not subject to refund or adjustment.
|
•
|
Collection is deemed probable: At or prior to the time of a transaction, credit reviews of each customer are performed to determine the creditworthiness of the customer. Collection is deemed probable if the customer is expected to be able to pay amounts under the arrangement as those amounts become due. If collection is not probable, revenue is recognized when collection becomes probable, generally upon cash collection.
|
|
Page
|
Financial Statements:
|
|
38
|
|
39
|
|
40
|
|
41
|
|
42
|
|
43
|
|
44
|
|
Financial Statement Schedule for the fiscal years ended September 30, 2012, 2011 and 2010:
|
|
81
|
|
All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or the notes thereto.
|
1)
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
|
2)
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of our Consolidated Financial Statements in accordance with generally accepted accounting principles and that our receipts and expenditures are being made only in accordance with authorizations of our management and our Board of Directors; and
|
3)
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our Consolidated Financial Statements.
|
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net Revenues
|
||||||||||||
Capital sales
|
$ | 1,198.2 | $ | 1,119.0 | $ | 996.6 | ||||||
Rental revenues
|
436.1 | 472.7 | 473.0 | |||||||||
Total revenues
|
1,634.3 | 1,591.7 | 1,469.6 | |||||||||
Cost of Revenues
|
||||||||||||
Cost of goods sold
|
690.4 | 606.8 | 548.6 | |||||||||
Rental expenses
|
189.2 | 203.6 | 204.4 | |||||||||
Total cost of revenues
|
879.6 | 810.4 | 753.0 | |||||||||
Gross Profit
|
754.7 | 781.3 | 716.6 | |||||||||
Research and development expenses
|
66.9 | 63.8 | 58.3 | |||||||||
Selling and administrative expenses
|
496.4 | 502.0 | 474.6 | |||||||||
Litigation (credit) charge (Note 13)
|
(3.6 | ) | 47.3 | (21.2 | ) | |||||||
Impairment of goodwill and other intangibles (Note 3)
|
8.0 | - | - | |||||||||
Special charges (Note 8)
|
18.2 | 1.4 | 13.2 | |||||||||
Operating Profit
|
168.8 | 166.8 | 191.7 | |||||||||
Interest expense
|
(6.5 | ) | (8.5 | ) | (8.7 | ) | ||||||
Investment income and other, net
|
1.2 | 1.4 | (0.1 | ) | ||||||||
Income Before Income Taxes
|
163.5 | 159.7 | 182.9 | |||||||||
Income tax expense (Note 9)
|
42.7 | 26.2 | 56.9 | |||||||||
Net Income
|
120.8 | 133.5 | 126.0 | |||||||||
Less: Net income attributable to noncontrolling interest
|
- | 0.2 | 0.7 | |||||||||
Net Income Attributable to Common Shareholders
|
$ | 120.8 | $ | 133.3 | $ | 125.3 | ||||||
Net Income Attributable to Common Shareholders
|
||||||||||||
per Common Share - Basic
|
$ | 1.94 | $ | 2.11 | $ | 1.99 | ||||||
Net Income Attributable to Common Shareholders
|
||||||||||||
per Common Share - Diluted
|
$ | 1.94 | $ | 2.09 | $ | 1.97 | ||||||
Dividends per Common Share
|
$ | 0.49 | $ | 0.43 | $ | 0.41 | ||||||
Average Common Shares Outstanding - Basic (thousands) (Note 10)
|
62,120 | 63,164 | 62,934 | |||||||||
Average Common Shares Outstanding - Diluted (thousands) (Note 10)
|
62,361 | 63,899 | 63,739 |
September 30
|
||||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 84.3 | $ | 224.6 | ||||
Trade accounts receivable, less allowances of $38.5 in 2012 and $26.7 in 2011 (Note 1)
|
392.6 | 386.2 | ||||||
Inventories (Note 1)
|
126.9 | 95.6 | ||||||
Deferred income taxes (Notes 1 and 9)
|
48.6 | 42.9 | ||||||
Other current assets
|
29.4 | 42.4 | ||||||
Total current assets
|
681.8 | 791.7 | ||||||
Property, plant and equipment (Note 1)
|
834.9 | 819.6 | ||||||
Less accumulated depreciation
|
(584.8 | ) | (596.8 | ) | ||||
Property, plant and equipment, net
|
250.1 | 222.8 | ||||||
Investments and investment securities (Notes 1 and 5)
|
7.3 | 11.1 | ||||||
Intangible assets:
|
||||||||
Goodwill (Notes 1, 2 and 3)
|
335.2 | 87.2 | ||||||
Software and other, net (Notes 1 and 2)
|
290.8 | 126.1 | ||||||
Deferred income taxes (Notes 1 and 9)
|
38.9 | 33.8 | ||||||
Other assets
|
23.5 | 26.4 | ||||||
Total Assets
|
$ | 1,627.6 | $ | 1,299.1 | ||||
LIABILITIES
|
||||||||
Current Liabilities
|
||||||||
Trade accounts payable
|
$ | 80.7 | $ | 64.8 | ||||
Short-term borrowings (Note 4)
|
115.2 | 100.3 | ||||||
Accrued compensation
|
73.4 | 92.7 | ||||||
Accrued product warranties (Note 1)
|
42.2 | 17.8 | ||||||
Other current liabilities
|
66.6 | 58.4 | ||||||
Total current liabilities
|
378.1 | 334.0 | ||||||
Long-term debt (Note 4)
|
237.5 | 50.8 | ||||||
Accrued pension and postretirement benefits (Note 6)
|
89.6 | 87.4 | ||||||
Deferred income taxes (Notes 1 and 9)
|
68.1 | 36.2 | ||||||
Other long-term liabilities
|
41.7 | 49.0 | ||||||
Total Liabilities
|
815.0 | 557.4 | ||||||
Commitments and Contingencies (Note 13)
|
||||||||
SHAREHOLDERS' EQUITY (Note 7)
|
||||||||
Capital Stock:
|
||||||||
Preferred stock - without par value:
|
||||||||
Authorized - 1,000,000 shares; none issued or outstanding
|
- | - | ||||||
Common stock - without par value:
|
||||||||
Authorized - 199,000,000
|
||||||||
Issued - 80,323,912 shares in 2012 and 2011
|
4.4 | 4.4 | ||||||
Additional paid-in-capital
|
116.8 | 114.1 | ||||||
Retained earnings
|
1,400.3 | 1,309.8 | ||||||
Accumulated other comprehensive loss (Note 1)
|
(78.0 | ) | (79.0 | ) | ||||
Treasury stock, common shares at cost: 2012 - 19,526,989 and 2011 - 18,637,540
|
(630.9 | ) | (607.6 | ) | ||||
Total Shareholders' Equity
|
812.6 | 741.7 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 1,627.6 | $ | 1,299.1 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Operating Activities
|
||||||||||||
Net income
|
$ | 120.8 | $ | 133.5 | $ | 126.0 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
111.7 | 103.9 | 99.7 | |||||||||
Litigation credit
|
- | - | (21.2 | ) | ||||||||
Provision for deferred income taxes
|
(32.3 | ) | (21.5 | ) | 21.2 | |||||||
Loss on disposal of property, equipment leased to others, intangible assets and impairments
|
8.1 | 1.3 | 7.3 | |||||||||
Stock compensation
|
11.6 | 12.2 | 12.0 | |||||||||
Tax settlement
|
- | (4.9 | ) | (8.2 | ) | |||||||
Defined benefit plan funding
|
(1.6 | ) | (1.4 | ) | (52.3 | ) | ||||||
Excess tax benefits from employee stock plans
|
(1.3 | ) | (6.8 | ) | - | |||||||
Change in working capital excluding cash, current investments, current debt, acquisitions and dispositions:
|
||||||||||||
Trade accounts receivable
|
20.1 | (24.7 | ) | (7.0 | ) | |||||||
Inventories
|
4.4 | 14.7 | (16.2 | ) | ||||||||
Other current assets
|
20.9 | 14.4 | (37.5 | ) | ||||||||
Trade accounts payable
|
0.3 | (18.0 | ) | (2.4 | ) | |||||||
Accrued expenses and other liabilities
|
(6.1 | ) | 10.0 | 12.5 | ||||||||
Other, net
|
5.1 | 9.8 | 5.9 | |||||||||
Net cash provided by operating activities
|
261.7 | 222.5 | 139.8 | |||||||||
Investing Activities
|
||||||||||||
Capital expenditures and purchase of intangibles
|
(77.8 | ) | (68.9 | ) | (64.7 | ) | ||||||
Proceeds on sales of property and equipment leased to others
|
10.6 | 5.9 | 2.5 | |||||||||
Payment for acquisition of businesses, net of cash acquired
|
(476.8 | ) | (15.5 | ) | (7.3 | ) | ||||||
Proceeds on investment sales and maturities
|
4.5 | 0.5 | 31.3 | |||||||||
Net cash used in investing activities
|
(539.5 | ) | (78.0 | ) | (38.2 | ) | ||||||
Financing Activities
|
||||||||||||
Net change in short-term debt
|
(7.8 | ) | (0.4 | ) | (4.1 | ) | ||||||
Net change in revolver
|
60.0 | (0.2 | ) | (45.0 | ) | |||||||
Proceeds from long-term debt
|
200.0 | - | - | |||||||||
Payment of long-term debt
|
(50.0 | ) | - | - | ||||||||
Debt issuance costs
|
(2.6 | ) | - | - | ||||||||
Purchase of noncontrolling interest
|
(1.6 | ) | (11.8 | ) | - | |||||||
Payment of cash dividends
|
(30.1 | ) | (27.0 | ) | (25.8 | ) | ||||||
Distribution to noncontrolling interest partner
|
- | - | (1.1 | ) | ||||||||
Proceeds from exercise of stock options
|
7.7 | 43.1 | 22.9 | |||||||||
Proceeds from stock issuance
|
2.9 | 2.9 | 2.6 | |||||||||
Excess tax benefits from employee stock plans
|
1.3 | 6.8 | - | |||||||||
Treasury stock acquired
|
(44.2 | ) | (115.3 | ) | (36.9 | ) | ||||||
Net cash provided by (used in) financing activities
|
135.6 | (101.9 | ) | (87.4 | ) | |||||||
Effect of Exchange Rate changes on Cash
|
1.9 | (2.5 | ) | (0.3 | ) | |||||||
Net Cash Flows
|
(140.3 | ) | 40.1 | 13.9 | ||||||||
Cash and Cash Equivalents
|
||||||||||||
At beginning of period
|
224.6 | 184.5 | 170.6 | |||||||||
At end of period
|
$ | 84.3 | $ | 224.6 | $ | 184.5 | ||||||
Supplemental cash flow information:
|
||||||||||||
Cash paid for income taxes
|
$ | 52.1 | $ | 30.3 | $ | 87.3 | ||||||
Cash paid for interest
|
$ | 6.6 | $ | 7.7 | $ | 7.7 | ||||||
Non-cash financing activities:
|
||||||||||||
Treasury stock issued under stock compensation plans
|
$ | 21.0 | $ | 65.7 | $ | 38.3 |
Accumulated
|
||||||||||||||||||||||||||||||||
Common Stock
|
Other
|
Common Stock
|
||||||||||||||||||||||||||||||
Shares
|
Additional
|
Retained
|
Comprehensive
|
in Treasury
|
||||||||||||||||||||||||||||
Outstanding
|
Amount
|
Paid-in-Capital
|
Earnings
|
Income (Loss)
|
Shares
|
Amount
|
Total
|
|||||||||||||||||||||||||
Balance at September 30, 2009
|
62,667,562 | $ | 4.4 | $ | 119.0 | $ | 1,105.2 | $ | (59.9 | ) | 17,656,350 | $ | (559.4 | ) | $ | 609.3 | ||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Net income
|
- | - | - | 126.0 | - | - | - | 126.0 | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax
|
||||||||||||||||||||||||||||||||
of $1.3 million
|
- | - | - | - | 0.7 | - | - | 0.7 | ||||||||||||||||||||||||
Net change in unrealized gain on available-for-sale
|
||||||||||||||||||||||||||||||||
securities, net of tax of ($0.1) million
|
- | - | - | - | 0.2 | - | - | 0.2 | ||||||||||||||||||||||||
Items not yet recognized as a component of net periodic
|
||||||||||||||||||||||||||||||||
pension costs, net of tax of $0.1 million
|
- | - | - | - | (2.8 | ) | - | - | (2.8 | ) | ||||||||||||||||||||||
Total comprehensive income
|
- | - | - | - | - | - | - | 124.1 | ||||||||||||||||||||||||
Dividends
|
- | - | 0.3 | (26.1 | ) | - | - | - | (25.8 | ) | ||||||||||||||||||||||
Treasury shares acquired
|
(1,092,469 | ) | - | - | - | - | 1,092,469 | (36.9 | ) | (36.9 | ) | |||||||||||||||||||||
Stock awards and option exercises
|
1,211,790 | - | (2.4 | ) | - | - | (1,211,790 | ) | 38.3 | 35.9 | ||||||||||||||||||||||
Impact of Joint Venture
|
- | - | 2.4 | (1.5 | ) | - | - | - | 0.9 | |||||||||||||||||||||||
Balance at September 30, 2010
|
62,786,883 | 4.4 | 119.3 | 1,203.6 | (61.8 | ) | 17,537,029 | (558.0 | ) | 707.5 | ||||||||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Net income
|
- | - | - | 133.5 | - | - | - | 133.5 | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax
|
||||||||||||||||||||||||||||||||
of $0.5 million
|
- | - | - | - | (3.8 | ) | - | - | (3.8 | ) | ||||||||||||||||||||||
Net change in unrealized gain on available-for-sale
|
||||||||||||||||||||||||||||||||
securities, net of tax of $0.0 million
|
- | - | - | - | (0.2 | ) | - | - | (0.2 | ) | ||||||||||||||||||||||
Items not yet recognized as a component of net periodic
|
||||||||||||||||||||||||||||||||
pension costs, net of tax of $8.9 million
|
- | - | - | - | (13.2 | ) | - | - | (13.2 | ) | ||||||||||||||||||||||
Total comprehensive income
|
- | - | - | - | - | - | - | 116.3 | ||||||||||||||||||||||||
Dividends
|
- | - | 0.1 | (27.1 | ) | - | - | - | (27.0 | ) | ||||||||||||||||||||||
Treasury shares acquired
|
(3,145,899 | ) | - | - | - | - | 3,145,899 | (115.3 | ) | (115.3 | ) | |||||||||||||||||||||
Stock awards and option exercises
|
2,045,388 | - | (0.4 | ) | - | - | (2,045,388 | ) | 65.7 | 65.3 | ||||||||||||||||||||||
Impact of Joint Venture
|
- | - | (4.9 | ) | (0.2 | ) | - | - | - | (5.1 | ) | |||||||||||||||||||||
Balance at September 30, 2011
|
61,686,372 | 4.4 | 114.1 | 1,309.8 | (79.0 | ) | 18,637,540 | (607.6 | ) | 741.7 | ||||||||||||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||||||
Net income
|
- | - | - | 120.8 | - | - | - | 120.8 | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax
|
||||||||||||||||||||||||||||||||
of $1.8 million
|
- | - | - | - | (1.5 | ) | - | - | (1.5 | ) | ||||||||||||||||||||||
Net change in unrealized gain on available-for-sale
|
||||||||||||||||||||||||||||||||
securities, net of tax of ($0.2) million
|
- | - | - | - | 0.5 | - | - | 0.5 | ||||||||||||||||||||||||
Items not yet recognized as a component of net periodic
|
||||||||||||||||||||||||||||||||
pension costs, net of tax of ($1.6) million
|
- | - | - | - | 2.0 | - | - | 2.0 | ||||||||||||||||||||||||
Total comprehensive income
|
- | - | - | - | - | - | - | 121.8 | ||||||||||||||||||||||||
Dividends
|
- | - | 0.2 | (30.3 | ) | - | - | - | (30.1 | ) | ||||||||||||||||||||||
Treasury shares acquired
|
(1,532,232 | ) | - | - | - | - | 1,532,232 | (44.2 | ) | (44.2 | ) | |||||||||||||||||||||
Stock awards and option exercises
|
642,783 | - | 2.5 | - | - | (642,783 | ) | 20.9 | 23.4 | |||||||||||||||||||||||
Balance at September 30, 2012
|
60,796,923 | $ | 4.4 | $ | 116.8 | $ | 1,400.3 | $ | (78.0 | ) | 19,526,989 | $ | (630.9 | ) | $ | 812.6 |
September 30
|
||||||||
2012
|
2011
|
|||||||
Finished products
|
$ | 71.8 | $ | 55.6 | ||||
Work in process
|
6.4 | 4.2 | ||||||
Raw materials
|
48.7 | 35.8 | ||||||
Total
|
$ | 126.9 | $ | 95.6 |
Useful Life
|
||
Land improvements
|
6 - 15 years
|
|
Buildings and building equipment
|
10 - 40 years
|
|
Machinery and equipment
|
3 - 10 years
|
|
Equipment leased to others
|
2 -10 years
|
September 30
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||
Cost
|
Depreciation
|
Cost
|
Depreciation
|
|||||||||||||
Land and land improvements
|
$ | 16.1 | $ | 4.4 | $ | 12.2 | $ | 3.9 | ||||||||
Buildings and building equipment
|
142.6 | 85.8 | 115.3 | 79.0 | ||||||||||||
Machinery and equipment
|
276.3 | 187.6 | 269.0 | 205.3 | ||||||||||||
Equipment leased to others
|
399.9 | 307.0 | 423.1 | 308.6 | ||||||||||||
Total
|
$ | 834.9 | $ | 584.8 | $ | 819.6 | $ | 596.8 |
September 30
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Amortization
|
Amortization
|
|||||||||||||||
Cost
|
and Impairment
|
Cost
|
and Impairment
|
|||||||||||||
Goodwill
|
$ | 808.0 | $ | 472.8 | $ | 560.0 | $ | 472.8 | ||||||||
Software
|
163.2 | 123.7 | 154.7 | 106.2 | ||||||||||||
Other
|
334.4 | 83.1 | 134.7 | 57.1 | ||||||||||||
Total
|
$ | 1,305.6 | $ | 679.6 | $ | 849.4 | $ | 636.1 |
Amount
|
||||
2013
|
$ | 45.9 | ||
2014
|
$ | 39.5 | ||
2015
|
$ | 34.7 | ||
2016
|
$ | 28.4 | ||
2017
|
$ | 20.8 | ||
2018 and beyond
|
$ | 88.6 |
2012
|
2011
|
2010
|
||||||||||
Balance at October 1
|
$ | 17.8 | $ | 15.8 | $ | 17.1 | ||||||
Provision for warranties during the period
|
31.8 | 17.0 | 16.0 | |||||||||
Warranty reserves acquired
|
9.7 | - | - | |||||||||
Warranty claims incurred during the period
|
(17.1 | ) | (15.0 | ) | (17.3 | ) | ||||||
Balance at September 30
|
$ | 42.2 | $ | 17.8 | $ | 15.8 |
|
•
|
Evidence of an arrangement: An agreement with the customer reflecting the terms and conditions to deliver products or services serves as evidence of an arrangement.
|
|
•
|
Delivery: For products, delivery is considered to occur upon receipt by the customer and the transfer of title and risk of loss. For rental services, delivery is considered to occur when the services are rendered.
|
|
•
|
Fixed or determinable price: The sales price is considered fixed or determinable if it is not subject to refund or adjustment.
|
|
•
|
Collection is deemed probable: At or prior to the time of a transaction, credit reviews of each customer are performed to determine the creditworthiness of the customer. Collection is deemed probable if the customer is expected to be able to pay amounts under the arrangement as those amounts become due. If collection is not probable, revenue is recognized when collection becomes probable, generally upon cash collection.
|
September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Available-for-sale securities and currency hedges, net of tax of
|
||||||||||||
$0.2, $0.4 and $0.4, respectively
|
$ | (0.4 | ) | $ | (0.9 | ) | $ | (0.7 | ) | |||
Foreign currency translation adjustment, net of tax of $0.1, ($1.7)
|
||||||||||||
and ($2.2), respectively
|
(17.2 | ) | (15.7 | ) | (11.9 | ) | ||||||
Items not yet recognized as a component of net periodic pension
|
||||||||||||
and postretirement healthcare costs, net of tax of $36.6, $38.2
|
||||||||||||
and $29.3, respectively
|
(60.4 | ) | (62.4 | ) | (49.2 | ) | ||||||
Total
|
$ | (78.0 | ) | $ | (79.0 | ) | $ | (61.8 | ) |
Amount
|
||||
Inventory
|
$ | 25.9 | ||
Other current assets
|
19.7 | |||
Property, plant, and equipment
|
24.0 | |||
Goodwill
|
215.3 | |||
Trade name (Indefinite Lived)
|
29.0 | |||
Trade name (15-year weighted-average useful life)
|
4.6 | |||
Customer relationships (13-year weighted-average useful life)
|
126.0 | |||
Technology (10-year weighted-average useful life)
|
9.1 | |||
Other noncurrent assets
|
1.6 | |||
Current liabilities
|
(9.6 | ) | ||
Deferred tax liability
|
(43.4 | ) | ||
Total purchase price
|
$ | 402.2 |
Amount
|
||||
Goodwill
|
$ | 34.8 | ||
Trade name (7-year useful life)
|
12.3 | |||
Customer relationships (8-year weighted average useful life)
|
17.5 | |||
Net assets acquired
|
21.9 | |||
Deferred tax liability
|
(9.8 | ) | ||
Total purchase price
|
$ | 76.7 |
Amount
|
||||
Goodwill
|
$ | 6.4 | ||
Customer relationships (5-year useful life)
|
7.9 | |||
Non-Compete agreements (2-year useful life)
|
0.6 | |||
Net assets acquired
|
10.3 | |||
Deferred tax liabilities
|
(2.7 | ) | ||
Total purchase price
|
$ | 22.5 |
Amount
|
||||
Goodwill
|
$ | 8.0 | ||
Trade Name (7-year useful life)
|
1.5 | |||
Customer relationships (7-year useful life)
|
7.7 | |||
Technology (5-year useful life)
|
2.4 | |||
Net liabilities assumed
|
(0.7 | ) | ||
Noncontrolling interest
|
(7.5 | ) | ||
Additional paid-in-capital
|
(3.9 | ) | ||
Total purchase price
|
$ | 7.5 |
North America
|
Surgical and
Respiratory Care
|
International
|
Total
|
|||||||||||||
Balances at September 30, 2010:
|
||||||||||||||||
Goodwill
|
$ | 383.0 | $ | 56.2 | $ | 114.7 | $ | 553.9 | ||||||||
Accumulated impairment losses
|
(358.1 | ) | - | (114.7 | ) | (472.8 | ) | |||||||||
Goodwill, net at September 30, 2010
|
24.9 | 56.2 | - | 81.1 | ||||||||||||
Changes in Goodwill during the period:
|
||||||||||||||||
Goodwill related to acquisitions
|
- | - | 6.1 | 6.1 | ||||||||||||
Balances at September 30, 2011:
|
||||||||||||||||
Goodwill
|
383.0 | 56.2 | 120.8 | 560.0 | ||||||||||||
Accumulated impairment losses
|
(358.1 | ) | - | (114.7 | ) | (472.8 | ) | |||||||||
Goodwill, net at September 30, 2011
|
24.9 | 56.2 | 6.1 | 87.2 | ||||||||||||
Changes in Goodwill during the period:
|
||||||||||||||||
Goodwill related to acquisition
|
- | 215.3 | 35.1 | 250.4 | ||||||||||||
Currency translation effect
|
- | - | (2.4 | ) | (2.4 | ) | ||||||||||
Balances at September 30, 2012:
|
||||||||||||||||
Goodwill
|
383.0 | 271.5 | 153.5 | 808.0 | ||||||||||||
Accumulated impairment losses
|
(358.1 | ) | - | (114.7 | ) | (472.8 | ) | |||||||||
Goodwill, net at September 30, 2012
|
$ | 24.9 | $ | 271.5 | $ | 38.8 | $ | 335.2 |
Years Ended September 30
|
||||||||
2012
|
2011
|
|||||||
Outstanding finance credit lines
|
$ | 0.2 | $ | 7.8 | ||||
Revolving credit facility
|
105.0 | 45.0 | ||||||
Term loan current portion
|
10.0 | - | ||||||
Term loan long-term portion
|
187.5 | - | ||||||
Unsecured 8.50% debentures due on December 1, 2011
|
- | 47.5 | ||||||
Unsecured 7.00% debentures due on February 15, 2024
|
19.6 | 19.7 | ||||||
Unsecured 6.75% debentures due on December 15, 2027
|
29.8 | 29.8 | ||||||
Other
|
0.6 | 1.3 | ||||||
Total debt
|
352.7 | 151.1 | ||||||
Less current portion of debt
|
115.2 | 100.3 | ||||||
Total long-term debt
|
$ | 237.5 | $ | 50.8 |
Term Loan
|
||||
2013
|
10.0 | |||
2014
|
11.3 | |||
2015
|
16.2 | |||
2016
|
20.0 | |||
2017
|
140.0 |
|
·
|
Level 1: Financial instruments with unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities.
|
|
·
|
Level 2: Financial instruments with observable inputs other than those included in Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
|
·
|
Level 3: Financial instruments with unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs reflect our own assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs shall be developed based on the best information available in the circumstances, which might include our own data.
|
Quoted Prices in
|
Significant Other
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Balance at
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
September 30, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Cash and cash equivalents
|
$ | 84.3 | $ | 84.3 | $ | - | $ | - | ||||||||
Available-for-sale marketable securities
|
7.3 | - | - | 7.3 | ||||||||||||
Total assets at fair value
|
$ | 91.6 | $ | 84.3 | $ | - | $ | 7.3 |
Quoted Prices in
|
Significant Other
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Balance at
|
Identical Assets
|
Inputs
|
Inputs
|
|||||||||||||
September 30, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Cash and cash equivalents
|
$ | 224.6 | $ | 224.6 | $ | - | $ | - | ||||||||
Available-for-sale marketable securities
|
11.1 | - | - | 11.1 | ||||||||||||
Total assets at fair value
|
$ | 235.7 | $ | 224.6 | $ | - | $ | 11.1 |
Available-For-Sale
|
AOCL
|
(Gain)/Loss
|
||||||||||
Balance at October 1, 2011
|
$ | 11.1 | $ | 1.3 | $ | - | ||||||
Change in fair value
|
- | - | - | |||||||||
Sales or redemptions
|
(3.8 | ) | (0.8 | ) | 0.1 | |||||||
Balance at September 30, 2012
|
$ | 7.3 | $ | 0.5 | $ | 0.1 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Unrealized gains (losses) on available-for sale securities:
|
||||||||||||
Unrealized holding gains (losses) arising during period, net-of-tax
|
$ | 0.7 | $ | (0.2 | ) | $ | 0.2 | |||||
Less: Reclassification adjustment for losses (gains) realized in net income, net-of-tax
|
0.1 | - | (0.1 | ) | ||||||||
Net change in unrealized gains (losses), net-of-tax
|
$ | 0.8 | $ | (0.2 | ) | $ | 0.1 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Service cost
|
$ | 5.5 | $ | 5.2 | $ | 5.1 | ||||||
Interest cost
|
13.3 | 13.2 | 13.2 | |||||||||
Expected return on plan assets
|
(16.7 | ) | (16.7 | ) | (13.1 | ) | ||||||
Amortization of unrecognized prior service cost, net
|
0.6 | 0.6 | 0.6 | |||||||||
Amortization of net loss
|
6.1 | 4.0 | 2.6 | |||||||||
Net periodic benefit cost
|
$ | 8.8 | $ | 6.3 | $ | 8.4 |
September 30
|
||||||||
2012
|
2011
|
|||||||
Change in benefit obligation:
|
||||||||
Benefit obligation at beginning of year
|
$ | 295.9 | $ | 266.5 | ||||
Service cost
|
5.5 | 5.2 | ||||||
Interest cost
|
13.3 | 13.2 | ||||||
Actuarial loss
|
21.7 | 19.4 | ||||||
Benefits paid
|
(8.5 | ) | (8.2 | ) | ||||
Acquisitions
|
0.1 | - | ||||||
Exchange rate gain
|
(0.6 | ) | (0.2 | ) | ||||
Benefit obligation at end of year
|
327.4 | 295.9 | ||||||
Change in plan assets:
|
||||||||
Fair value of plan assets at beginning of year
|
217.3 | 215.7 | ||||||
Actual return on plan assets
|
37.0 | 8.8 | ||||||
Employer contributions
|
1.0 | 1.0 | ||||||
Benefits paid
|
(8.5 | ) | (8.2 | ) | ||||
Fair value of plan assets at end of year
|
246.8 | 217.3 | ||||||
Funded status and net amounts recognized
|
$ | (80.6 | ) | $ | (78.6 | ) | ||
Amounts recorded in the Consolidated Balance Sheets:
|
||||||||
Accrued pension benefits, current portion
|
$ | (0.1 | ) | $ | (0.1 | ) | ||
Accrued pension benefits, long-term
|
(80.5 | ) | (78.5 | ) | ||||
Net amount recognized
|
$ | (80.6 | ) | $ | (78.6 | ) |
September 30
|
||||||||||||||||||||||||
2012
|
2011
|
|||||||||||||||||||||||
PBO
|
ABO
|
Plan Assets
|
PBO
|
ABO
|
Plan Assets
|
|||||||||||||||||||
Supplemental executive plan
|
$ | 4.4 | $ | 4.2 | $ | - | $ | 4.4 | $ | 3.7 | $ | - | ||||||||||||
Master plan
|
309.5 | 285.7 | 246.4 | 278.5 | 255.7 | 216.9 | ||||||||||||||||||
German plan
|
10.4 | 10.4 | - | 10.5 | 10.5 | - | ||||||||||||||||||
French plan
|
3.1 | 2.1 | 0.4 | 2.5 | 1.7 | 0.4 | ||||||||||||||||||
$ | 327.4 | $ | 302.4 | $ | 246.8 | $ | 295.9 | $ | 271.6 | $ | 217.3 |
2012
|
2011
|
2010
|
||||||||||
Weighted average assumptions to determined benefit
|
||||||||||||
obligations at the measurement date:
|
||||||||||||
Discount rate for obligation
|
4.1 | % | 4.6 | % | 5.1 | % | ||||||
Rate of compensation increase
|
3.3 | % | 3.5 | % | 3.5 | % | ||||||
Weighted average assumptions to determined benefit
|
||||||||||||
cost for the year:
|
||||||||||||
Discount rate for expense
|
4.6 | % | 5.1 | % | 5.5 | % | ||||||
Expected rate of return on plan assets
|
7.5 | % | 7.5 | % | 7.5 | % | ||||||
Rate of compensation increase
|
3.5 | % | 3.5 | % | 4.0 | % |
2012
|
2011
|
2012
|
2011
|
||||||
Target
|
Target
|
Actual
|
Actual
|
||||||
Allocation
|
Allocation
|
Allocation
|
Allocation
|
||||||
Equity securities
|
40 - 60%
|
40 - 60%
|
50%
|
47%
|
|||||
Fixed income securities
|
40 - 60%
|
40 - 60%
|
50%
|
53%
|
|||||
Total
|
100%
|
100%
|
Quoted Prices in
|
Significant
|
|||||||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||||||
Balance at
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
|
September 30, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Cash
|
$ | 2.3 | $ | 2.3 | $ | - | $ | - | ||||||||
Equities
|
||||||||||||||||
US companies
|
87.8 | 87.8 | - | - | ||||||||||||
International companies
|
34.9 | 34.9 | - | - | ||||||||||||
Fixed income securities
|
121.4 | 64.1 | 57.3 | - | ||||||||||||
Other
|
0.4 | 0.4 | - | - | ||||||||||||
Total plan assets at fair value
|
$ | 246.8 | $ | 189.5 | $ | 57.3 | $ | - | ||||||||
Quoted Prices in
|
Significant
|
|||||||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||||||
Balance at
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
|
September 30, 2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Cash
|
$ | 2.3 | $ | 2.3 | $ | - | $ | - | ||||||||
Equities
|
||||||||||||||||
US companies
|
70.3 | 70.3 | - | - | ||||||||||||
International companies
|
30.7 | 30.7 | - | - | ||||||||||||
Fixed income securities
|
113.6 | 58.4 | 55.2 | - | ||||||||||||
Other
|
0.4 | 0.4 | - | - | ||||||||||||
Total plan assets at fair value
|
$ | 217.3 | $ | 162.1 | $ | 55.2 | $ | - |
Pension Benefits
|
||||
2013
|
$ | 10.2 | ||
2014
|
10.8 | |||
2015
|
11.6 | |||
2016
|
12.5 | |||
2017
|
13.4 | |||
2018-2022
|
82.4 |
Years Ended September 30
|
||||||||
2012
|
2011
|
|||||||
Change in benefit obligation:
|
||||||||
Benefit obligation at beginning of year
|
$ | 9.5 | $ | 9.7 | ||||
Service cost
|
0.4 | 0.4 | ||||||
Interest cost
|
0.3 | 0.4 | ||||||
Actuarial gain
|
- | (0.6 | ) | |||||
Benefits paid
|
(0.9 | ) | (0.7 | ) | ||||
Retiree contributions
|
0.3 | 0.3 | ||||||
Benefit obligation at end of year
|
$ | 9.6 | $ | 9.5 | ||||
Amounts recorded in the Consolidated Balance Sheets:
|
||||||||
Accrued benefits obligation, current portion
|
$ | 0.5 | $ | 0.6 | ||||
Accrued benefits obligation, long-term
|
9.1 | 8.9 | ||||||
Net amount recognized
|
$ | 9.6 | $ | 9.5 |
2012
|
2011
|
2010
|
||||
Year 1
|
6.75%
|
7.25%
|
7.75%
|
|||
Year 2
|
6.25%
|
6.75%
|
7.25%
|
|||
Year 3
|
5.75%
|
6.25%
|
6.75%
|
|||
Year 4
|
5.25%
|
5.75%
|
6.25%
|
|||
Year 5
|
5.00%
|
5.25%
|
5.75%
|
|||
Year 6
|
5.00%
|
5.00%
|
5.25%
|
|||
Year 7
|
5.00%
|
5.00%
|
5.00%
|
|||
Year 8 and beyond
|
5.00%
|
5.00%
|
5.00%
|
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Total stock-based compensation cost (pre-tax)
|
$ | 11.6 | $ | 12.2 | $ | 12.0 | ||||||
Total income tax benefit
|
(4.2 | ) | (4.5 | ) | (4.4 | ) | ||||||
Total stock-based compensation cost, net of tax
|
$ | 7.4 | $ | 7.7 | $ | 7.6 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Weighted average fair value per share
|
$ | 9.79 | $ | 12.31 | $ | 7.86 | ||||||
Valuation assumptions:
|
||||||||||||
Risk-free interest rate
|
1.0% | 1.2% | 2.4% | |||||||||
Expected dividend yield
|
1.4% | 1.1% | 1.7% | |||||||||
Expected volatility
|
41.2% | 37.3% | 37.2% | |||||||||
Weighted average expected life
|
4.8 years
|
5.3 years
|
5.6 years
|
Weighted
|
Weighted
|
||||||||||||
Average
|
Weighted
|
Average
|
Aggregate
|
||||||||||
Number of
|
Average
|
Remaining
|
Intrinsic
|
||||||||||
Shares
|
Exercise
|
Contractual
|
Value (1)
|
||||||||||
(in thousands)
|
Price
|
Term
|
(in millions)
|
||||||||||
Balance Outstanding at October 1, 2011
|
1,704 | $ | 30.05 | ||||||||||
Granted
|
825 | 30.65 | |||||||||||
Exercised
|
(144 | ) | 24.00 | ||||||||||
Cancelled/Forfeited
|
(282 | ) | 32.28 | ||||||||||
Balance Outstanding at September 30, 2012
|
2,103 | $ | 30.41 |
7.4 years
|
$ | 3.9 | |||||||
Exercisable at September 30, 2012
|
731 | $ | 28.60 |
5.4 years
|
$ | 2.1 | |||||||
Options Expected to Vest
|
1,184 | $ | 31.26 |
8.4 years
|
$ | 1.7 |
(1)
|
The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $29.06, as reported by the New York Stock Exchange on September 30, 2012. This amount, which changes continuously based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date.
|
Weighted
|
Weighted
|
||||||||||||
Average
|
Weighted
|
Average
|
Aggregate | ||||||||||
Number of
|
Average
|
Remaining
|
Intrinsic | ||||||||||
Shares
|
Exercise
|
Contractual
|
Value (1) | ||||||||||
(in thousands)
|
Price
|
Term
|
(in millions) | ||||||||||
Balance Outstanding at October 1, 2011
|
524 | $ | 19.39 | ||||||||||
Granted
|
- | - | |||||||||||
Exercised
|
(217 | ) | 19.39 | ||||||||||
Cancelled/Forfeited
|
(131 | ) | 19.39 | ||||||||||
Balance Outstanding at September 30, 2012
|
176 | $ | 19.39 |
3.7 years
|
$ |
1.7
|
|
(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $29.06 as reported by the New York Stock Exchange on September 30, 2012. This amount, which changes continuously based on the fair value of our common stock, would have been received by the option holders had all option holders exercised their options as of the balance sheet date.
|
Weighted
|
||||||||
Number of
|
Average
|
|||||||
Share Units
|
Grant Date
|
|||||||
(in thousands)
|
Fair Value
|
|||||||
Nonvested RSUs at October 1, 2011
|
406 | $ | 29.03 | |||||
Granted
|
108 | 30.76 | ||||||
Vested
|
(139 | ) | 26.77 | |||||
Forfeited
|
(68 | ) | 30.45 | |||||
Nonvested RSUs at September 30, 2012
|
307 | $ | 30.38 |
Years Ended September 30
|
||||||
2012
|
2011
|
|||||
Weighted average fair value per share
|
$23.26 | $31.13 | ||||
Valuation assumptions:
|
||||||
Risk-free interest rate
|
0.4% | 0.8% | ||||
Expected dividend yield
|
0.0% | 1.1% | ||||
Expected volatility
|
35.6% | 39.8 - 41.7% |
Weighted
|
||||||||
Number of
|
Average
|
|||||||
Share Units
|
Grant Date
|
|||||||
(in thousands)
|
Fair Value
|
|||||||
Nonvested PSUs as of October 1, 2011
|
242 | $ | 22.52 | |||||
Granted
|
265 | 23.26 | ||||||
Vested
|
(36 | ) | 13.20 | |||||
Forfeited
|
(79 | ) | 21.30 | |||||
Nonvested PSUs at September 30, 2012
|
392 | $ | 25.40 |
|
·
|
During the fourth quarter of fiscal 2012, we recorded a non-cash impairment charge of $4.7 million for certain tangible assets for which the carrying values could not be fully recovered as a result of strategic decisions made relative to the exiting of underperforming portions of our home care business. Also associated with this action was the elimination of approximately 100 positions and the related charge of $1.0 million, primarily related to severance and other benefits to be provided to the effected employees. These actions and the related cash expenditures are expected to be completed by the end of fiscal year 2013.
|
|
·
|
During the second quarter of fiscal 2012, we announced a plan to improve our cost structure and streamline our organization by, among other things, eliminating approximately 200 positions across the Company resulting in a special charge of $9.3 million, net of reversals, recognized throughout fiscal 2012 primarily related to severance and other benefits to be provided to the effected employees. We also recorded an impairment of certain tangible assets for which the carrying values could not be fully recovered as a result of various strategic decisions, which resulted in a non-cash charge of $3.2 million. In addition, we recorded a non-cash impairment charge of $8.0 million related to a previously acquired trade name whose assessment was triggered by strategic changes in how the asset would be utilized on a go forward basis. These actions and the related cash expenditures were substantially complete by the end of fiscal year 2012, but some will be paid in fiscal 2013.
|
|
·
|
During the second quarter of fiscal 2011, we recorded an additional special charge of $2.6 million related to our fiscal 2010 fourth quarter action. The majority of the charge related to additional severance and other benefits provided to affected employees of that action as well as a write-down of assets held for sale. During the third quarter of fiscal 2011, we recorded a benefit of $1.2 million primarily related to the net reversal of severance recorded in relation to our fourth quarter of fiscal 2010 restructuring action, partially offset by an additional write-down of assets held for sale. The remainder of the cash expenditures associated with the severance will be completed before the end of fiscal 2013.
|
|
·
|
During the fourth quarter of fiscal 2010, we announced plans to eliminate approximately 100 positions which resulted in a special charge of $4.3 million primarily related to severance and other benefits provided to affected employees. We also recorded a charge of $3.9 million related to write-downs associated with the planned disposal of two aircraft from our corporate aviation assets, which are jointly owned with Hillenbrand, Inc. The loss was recognized net of management’s estimate of amounts to be recovered. The assets held for sale are recorded in other current assets in the Consolidated Balance Sheet.
|
|
·
|
During the second quarter of fiscal 2010, we announced organizational changes including the elimination of approximately 160 positions across the Company. The result was a special charge of $5.0 million primarily related to severance and other benefits provided to affected employees. The majority of the cash expenditures associated with the severance was completed by the end of our 2011 fiscal year.
|
Beginning
|
Ending
|
|||||||||||||||||||
Balance
|
|
Balance
|
||||||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||||||
2011
|
Expenses
|
Cash Payments
|
Reversals
|
2012
|
||||||||||||||||
Fiscal Year 2012
|
||||||||||||||||||||
Q2 Action - Restructuring
|
$ | - | $ | 8.4 | $ | (5.0 | ) | $ | - | $ | 3.4 | |||||||||
Q4 Action - Restructuring
|
- | 1.0 | - | - | 1.0 | |||||||||||||||
Total Fiscal Year 2012
|
$ | - | $ | 9.4 | $ | (5.0 | ) | $ | - | $ | 4.4 | |||||||||
Fiscal Year 2010
|
||||||||||||||||||||
Q2 Action - Restructuring
|
$ | 0.4 | $ | - | $ | (0.4 | ) | $ | - | $ | - | |||||||||
Q4 Action - Restructuring
|
1.5 | - | (0.9 | ) | (0.3 | ) | 0.3 | |||||||||||||
Total Fiscal Year 2010
|
$ | 1.9 | $ | - | $ | (1.3 | ) | $ | (0.3 | ) | $ | 0.3 | ||||||||
Total
|
$ | 1.9 | $ | 9.4 | $ | (6.3 | ) | $ | (0.3 | ) | $ | 4.7 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Income before income taxes:
|
||||||||||||
Domestic
|
$ | 148.6 | $ | 122.5 | $ | 169.4 | ||||||
Foreign
|
14.9 | 37.2 | 13.5 | |||||||||
Total
|
$ | 163.5 | $ | 159.7 | $ | 182.9 | ||||||
Income tax expense:
|
||||||||||||
Current provision
|
||||||||||||
Federal
|
$ | 65.9 | $ | 41.1 | $ | 35.9 | ||||||
State
|
4.3 | 2.3 | (5.3 | ) | ||||||||
Foreign
|
4.8 | 4.3 | 7.0 | |||||||||
Total current provision
|
75.0 | 47.7 | 37.6 | |||||||||
Deferred provision:
|
||||||||||||
Federal
|
(29.2 | ) | (0.8 | ) | 15.2 | |||||||
State
|
0.1 | (0.2 | ) | 4.4 | ||||||||
Foreign
|
(3.2 | ) | (20.5 | ) | (0.3 | ) | ||||||
Total deferred provision
|
(32.3 | ) | (21.5 | ) | 19.3 | |||||||
Income tax expense
|
$ | 42.7 | $ | 26.2 | $ | 56.9 |
Years Ended September 30
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
% of
|
% of
|
% of
|
||||||||||||||||||||||
Pretax
|
Pretax
|
Pretax
|
||||||||||||||||||||||
Amount
|
Income
|
Amount
|
Income
|
Amount
|
Income
|
|||||||||||||||||||
Federal income tax (a)
|
$ | 57.2 | 35.0 | $ | 55.9 | 35.0 | $ | 64.0 | 35.0 | |||||||||||||||
State income tax (b)
|
3.5 | 2.2 | 2.4 | 1.5 | 4.8 | 2.6 | ||||||||||||||||||
Foreign income tax (c)
|
(3.4 | ) | (2.1 | ) | (8.0 | ) | (5.0 | ) | (0.6 | ) | (0.3 | ) | ||||||||||||
International tax restructuring
|
(11.0 | ) | (6.7 | ) | - | - | - | - | ||||||||||||||||
Application of federal tax credits
|
(0.6 | ) | (0.4 | ) | (4.1 | ) | (2.5 | ) | (0.6 | ) | (0.3 | ) | ||||||||||||
Adjustment of estimated income tax accruals
|
(2.1 | ) | (1.3 | ) | 2.3 | 1.4 | (9.7 | ) | (5.4 | ) | ||||||||||||||
Valuation of tax attributes
|
0.3 | 0.2 | (19.5 | ) | (12.2 | ) | - | - | ||||||||||||||||
Other, net
|
(1.2 | ) | (0.8 | ) | (2.8 | ) | (1.8 | ) | (1.0 | ) | (0.5 | ) | ||||||||||||
Income tax expense
|
$ | 42.7 | 26.1 | $ | 26.2 | 16.4 | $ | 56.9 | 31.1 |
(a)
|
At statutory rate.
|
(b)
|
Net of Federal benefit.
|
(c)
|
Federal tax rate differential.
|
Years Ended September 30
|
||||||||
2012
|
2011
|
|||||||
Deferred tax assets:
|
||||||||
Employee benefit accruals
|
$ | 53.9 | $ | 58.5 | ||||
Reserve for bad debts
|
12.4 | 9.3 | ||||||
Accrued warranty
|
10.5 | 5.5 | ||||||
Net operating loss carryforwards
|
39.4 | 22.8 | ||||||
Tax credit carryforwards
|
1.8 | 1.9 | ||||||
Other, net
|
26.7 | 30.4 | ||||||
144.7 | 128.4 | |||||||
Less: Valuation allowance
|
(8.6 | ) | (8.1 | ) | ||||
Total deferred tax assets
|
136.1 | 120.3 | ||||||
Deferred tax liabilities:
|
||||||||
Depreciation
|
(33.9 | ) | (41.2 | ) | ||||
Amortization
|
(81.1 | ) | (33.9 | ) | ||||
Other, net
|
(2.0 | ) | (4.7 | ) | ||||
Total deferred tax liabilities
|
(117.0 | ) | (79.8 | ) | ||||
Deferred tax asset - net
|
$ | 19.1 | $ | 40.5 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Balance at October 1
|
$ | 17.8 | $ | 24.0 | $ | 35.5 | ||||||
Increases in tax position of prior years
|
0.5 | 0.4 | 3.9 | |||||||||
Decreases in tax position of prior years
|
(2.7 | ) | (3.0 | ) | (6.8 | ) | ||||||
Increases in tax positions related to the current year
|
- | 5.1 | 1.4 | |||||||||
Settlements with taxing authorities
|
(3.8 | ) | (5.2 | ) | (6.0 | ) | ||||||
Lapse of applicable statute of limitations
|
(1.9 | ) | (3.5 | ) | (4.0 | ) | ||||||
Foreign currency adjustments
|
(0.1 | ) | - | - | ||||||||
Total change
|
(8.0 | ) | (6.2 | ) | (11.5 | ) | ||||||
Balance at September 30
|
$ | 9.8 | $ | 17.8 | $ | 24.0 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net income attributable to common shareholders
|
$ | 120.8 | $ | 133.3 | $ | 125.3 | ||||||
Average shares outstanding - Basic (thousands)
|
62,120 | 63,164 | 62,934 | |||||||||
Add potential effect of exercise of stock options
|
||||||||||||
and other unvested equity awards (thousands)
|
241 | 735 | 805 | |||||||||
Average shares outstanding - Diluted (thousands)
|
62,361 | 63,899 | 63,739 | |||||||||
Net income attributable to common shareholders
|
||||||||||||
per common share - Basic
|
$ | 1.94 | $ | 2.11 | $ | 1.99 | ||||||
Net income attributable to common shareholders
|
||||||||||||
per common share - Diluted
|
$ | 1.94 | $ | 2.09 | $ | 1.97 |
|
·
|
North America - sells and rents our patient support and near-patient technologies and services, as well as our health information technology solutions, in the U.S. and Canada.
|
|
·
|
Surgical and Respiratory Care - sells and rents our surgical and respiratory care products in all settings.
|
|
·
|
International - sells and rents similar products as our North America segment in regions outside of the U.S. and Canada.
|
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Revenues:
|
||||||||||||
North America
|
$ | 998.2 | $ | 1,057.2 | $ | 958.2 | ||||||
Surgical and Respiratory Care
|
153.2 | 132.9 | 123.3 | |||||||||
International
|
482.9 | 401.6 | 388.1 | |||||||||
Total revenues
|
$ | 1,634.3 | $ | 1,591.7 | $ | 1,469.6 | ||||||
Divisional income:
|
||||||||||||
North America
|
$ | 198.9 | $ | 230.6 | $ | 185.7 | ||||||
Surgical and Respiratory Care
|
38.1 | 40.0 | 38.1 | |||||||||
International
|
18.6 | 27.9 | 29.9 | |||||||||
Corporate expenses
|
(64.2 | ) | (83.0 | ) | (70.0 | ) | ||||||
Total divisional income
|
191.4 | 215.5 | 183.7 | |||||||||
Impairment of goodwill and other intangibles
|
8.0 | - | - | |||||||||
Litigation (credit) charge
|
(3.6 | ) | 47.3 | (21.2 | ) | |||||||
Special charges
|
18.2 | 1.4 | 13.2 | |||||||||
Operating profit
|
168.8 | 166.8 | 191.7 | |||||||||
Interest expense
|
(6.5 | ) | (8.5 | ) | (8.7 | ) | ||||||
Investment income and other, net
|
1.2 | 1.4 | (0.1 | ) | ||||||||
Income before income taxes
|
$ | 163.5 | $ | 159.7 | $ | 182.9 |
Years Ended September 30
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net revenues to unaffiliated customers: (a)
|
||||||||||||
United States
|
$ | 1,077.8 | $ | 1,105.0 | $ | 1,027.1 | ||||||
Foreign
|
556.5 | 486.7 | 442.5 | |||||||||
Total revenues
|
$ | 1,634.3 | $ | 1,591.7 | $ | 1,469.6 | ||||||
Long-lived assets: (b)
|
||||||||||||
United States
|
$ | 172.5 | $ | 180.2 | $ | 200.3 | ||||||
Foreign
|
77.6 | 42.6 | 43.4 | |||||||||
Total long-lived assets
|
$ | 250.1 | $ | 222.8 | $ | 243.7 |
(a)
|
Net revenues are attributed to geographic areas based on the location of the customer.
|
(b)
|
Includes property and equipment leased to others.
|
2012 Quarter Ended
|
||||||||||||||||
|
December 31,
2011
|
March 31,
2012
|
June 30,
2012
|
September 30,
2012
|
||||||||||||
Net revenues
|
$ | 381.1 | $ | 415.1 | $ | 406.5 | $ | 431.6 | ||||||||
Gross profit
|
$ | 185.1 | $ | 195.8 | $ | 172.7 | $ | 201.1 | ||||||||
Net income attributable to common shareholders
|
$ | 32.9 | $ | 25.3 | $ | 23.4 | $ | 39.2 | ||||||||
Basic net income attributable to common
|
||||||||||||||||
shareholders per common share
|
$ | 0.53 | $ | 0.41 | $ | 0.38 | $ | 0.63 | ||||||||
Diluted net income attributable to common
|
||||||||||||||||
shareholders per common share
|
$ | 0.53 | $ | 0.40 | $ | 0.37 | $ | 0.63 | ||||||||
2011 Quarter Ended
|
||||||||||||||||
|
December 31,
2010
|
March 31,
2011
|
June 30,
2011
|
September 30,
2011
|
||||||||||||
Net revenues
|
$ | 374.2 | $ | 402.1 | $ | 384.8 | $ | 430.6 | ||||||||
Gross profit
|
$ | 184.5 | $ | 198.6 | $ | 187.6 | $ | 210.6 | ||||||||
Net income attributable to common shareholders
|
$ | 35.2 | $ | 33.1 | $ | 1.5 | $ | 63.5 | ||||||||
Basic net income attributable to common
|
||||||||||||||||
shareholders per common share
|
$ | 0.56 | $ | 0.53 | $ | 0.02 | $ | 1.01 | ||||||||
Diluted net income attributable to common
|
||||||||||||||||
shareholders per common share
|
$ | 0.55 | $ | 0.52 | $ | 0.02 | $ | 1.01 |
Amount
|
||||
2013
|
$ | 19.7 | ||
2014
|
$ | 13.2 | ||
2015
|
$ | 10.0 | ||
2016
|
$ | 7.1 | ||
2017
|
$ | 5.3 | ||
2018 and beyond
|
$ | 4.5 |
(a)
|
The following documents have been filed as a part of this Form 10-K or, where noted, incorporated by reference:
|
|
(1)
|
Financial Statements
|
|
(2)
|
Financial Statement Schedules
|
|
(3)
|
Exhibits (See changes to Exhibit Index below):
|
|
·
|
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
|
|
·
|
may have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
|
|
·
|
may apply standards of materiality in a way that is different from what may be viewed as material to certain investors; and
|
|
·
|
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
|
ADDITIONS
|
||||||||||||||||||||||
BALANCE AT
|
CHARGED TO
|
CHARGED TO
|
DEDUCTIONS
|
BALANCE
|
||||||||||||||||||
BEGINNING
|
COSTS AND
|
OTHER
|
NET OF
|
AT END
|
||||||||||||||||||
DESCRIPTION
|
OF PERIOD
|
EXPENSES
|
ACCOUNTS
|
RECOVERIES
|
OF PERIOD
|
|||||||||||||||||
Reserves deducted from assets to which they apply:
|
||||||||||||||||||||||
Allowance for possible losses and sales returns -
|
||||||||||||||||||||||
accounts receivable:
|
||||||||||||||||||||||
Period Ended:
|
||||||||||||||||||||||
September 30, 2012
|
$ | 26.7 | $ | 1.6 | $ | 18.5 |
(a)
|
$ | (8.3 | ) |
(b)
|
$ | 38.5 | |||||||||
September 30, 2011
|
$ | 29.0 | $ | 1.5 | $ | 3.1 |
(a)
|
$ | (6.9 | ) |
(b)
|
$ | 26.7 | |||||||||
September 30, 2010
|
$ | 27.5 | $ | 0.8 | $ | 7.2 |
(a)
|
$ | (6.5 | ) |
(b)
|
$ | 29.0 | |||||||||
Allowance for inventory valuation:
|
||||||||||||||||||||||
Period Ended:
|
||||||||||||||||||||||
September 30, 2012
|
$ | 22.9 | $ | 2.2 | $ | 1.6 |
(c)
|
$ | (4.7 | ) |
(d)
|
$ | 22.0 | |||||||||
September 30, 2011
|
$ | 24.7 | $ | 3.7 | $ | - |
(c)
|
$ | (5.5 | ) |
(d)
|
$ | 22.9 | |||||||||
September 30, 2010
|
$ | 28.3 | $ | 0.2 | $ | - |
(c)
|
$ | (3.8 | ) |
(d)
|
$ | 24.7 | |||||||||
Valuation allowance against deferred tax assets:
|
||||||||||||||||||||||
Period Ended:
|
||||||||||||||||||||||
September 30, 2012
|
$ | 8.1 | $ | 0.4 | $ | - | $ | 0.1 |
(e)
|
$ | 8.6 | |||||||||||
September 30, 2011
|
$ | 28.5 | $ | (19.5 | ) | $ | - | $ | (0.9 | ) |
(e)
|
$ | 8.1 | |||||||||
September 30, 2010
|
$ | 37.5 | $ | (0.8 | ) | $ | - | $ | (8.2 | ) |
(e)
|
$ | 28.5 | |||||||||
(a)
|
Reduction of gross revenues for uncollectible health care rental reimbursements, cash discounts and other adjustments in determining
net revenue. Also includes the effect of acquired businesses, if any.
|
|
|
(b)
|
Generally reflects the write-off of specific receivables against recorded reserves.
|
(c)
|
Generally reflects the effect of acquired businesses, if any.
|
(d)
|
Generally reflects the write-off of specific inventory against recorded reserves.
|
(e)
|
Primarily reflects write-offs of deferred tax assets against the valuation allowance and other movement of the valuation allowance
offset by an opposing change in deferred tax assets.
|
HILL-ROM HOLDINGS, INC.
|
|||
By:
|
/s/ John J. Greisch | ||
John J. Greisch
|
|||
President and Chief Executive Officer
|
/s/ |
Rolf A. Classon
|
/s/ |
James R. Giertz
|
|
Rolf A. Classon
Chairman of the Board
|
James R. Giertz
Director
|
|||
/s/ |
John J. Greisch
|
/s/ |
Charles E. Golden
|
|
John J. Greisch
President and Chief Executive Officer and Director
(Principal Executive Officer)
|
Charles E. Golden
Director
|
|||
/s/ |
Mark J. Guinan
|
/s/ |
W August Hillenbrand
|
|
Mark J. Guinan
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
|
W August Hillenbrand
Director
|
|||
/s/ |
Richard G. Keller
|
/s/ |
Ronald A. Malone
|
|
Richard G. Keller
Vice President — Controller and
Chief Accounting Officer
(Principal Accounting Officer)
|
Ronald A. Malone
Director
|
|||
/s/ |
Joanne C. Smith, M.D.
|
/s/ |
Eduardo R. Menascé
|
|
Joanne C. Smith, M.D.
Director
|
Eduardo R. Menascé
Director
|
|||
Katherine S. Napier
Director
|
2.1
|
Distribution Agreement dated as of March 14, 2008 by and between Hill-Rom Holdings, Inc. (formerly Hillenbrand Industries, Inc.) and Hillenbrand, Inc. (formerly Batesville Holdings, Inc.) (Incorporated herein by reference to Exhibit 2.1 filed with Form 8-K dated April 1, 2008)
|
2.2
|
Letter Agreement dated as of March 31, 2008 between Hill-Rom Holdings, Inc. and Hillenbrand, Inc. regarding interpretation of Distribution Agreement (Incorporated herein by reference to Exhibit 2.2 filed with Form 10-Q dated May 14, 2008.)
|
2.3
|
Share Sale and Purchase Agreement dated as of December 15, 2011 between Völker GmbH and Hill-Rom Holdings, Inc. (Incorporated herein by reference to Exhibit 99.1 filed with Form 8-K dated February 14, 2012)
|
2.4
|
Stock Purchase Agreement dated as of July 23, 2012 between Roundtable Healthcare Partners II, L.P. and Hill-Rom Inc. regarding the purchase of Aspen Surgical Products Holding, Inc. (Incorporated herein by reference to Exhibit 2.1 filed with Form 8-K dated July 26, 2012)
|
3.1
|
Restated and Amended Articles of Incorporation of Hill-Rom Holdings, Inc., as currently in effect (Incorporated herein by reference to Exhibit 3.1 filed with Form 8-K dated March 10, 2010)
|
3.2
|
Amended and Restated Code of By-Laws of Hill-Rom Holdings, Inc., as currently in effect (Incorporated herein by reference to Exhibit 3.2 filed with Form 8-K dated March 10, 2010)
|
4.1
|
Indenture dated as of December 1, 1991, between Hill-Rom Holdings, Inc. and Union Bank, N.A. (as successor to LaSalle Bank National Association and Harris Trust and Savings Bank) as Trustee (Incorporated herein by reference to Exhibit (4) (a) to Registration Statement on Form S-3, Registration No. 33-44086)
|
*10.1
|
Hill-Rom Holdings, Inc. Amended and Restated Short Term Incentive Compensation Program (Incorporated herein by reference to Exhibit 10.1 filed with Form 10-K dated November 24, 2009)
|
*10.2
|
Form of Director Indemnity Agreement (Incorporated herein by reference to Exhibit 10.6 filed with Form 10-K dated December 23, 2003)
|
*10.3
|
Form of Indemnity Agreement between Hill-Rom Holdings, Inc. and certain executive officers (Incorporated herein by reference to Exhibit 10.6 filed with Form 10-K dated November 16, 2011)
|
*10.4
|
Hill-Rom Holdings, Inc. Board of Directors’ Deferred Compensation Plan (Incorporated herein by reference to Exhibit 10.10 filed with Form 10-Q dated July 13, 2001)
|
*10.5
|
Hill-Rom Holdings, Inc. Director Phantom Stock Plan and form of award (Incorporated herein by reference to Exhibit 10.11 filed with Form 10-Q dated July 13, 2001)
|
*10.6
|
Hill-Rom Holdings, Inc. Supplemental Executive Retirement Plan (Incorporated herein by reference to Exhibit 10.14 filed with Form 10-K dated December 23, 2003)
|
*10.7
|
Form of Non-Qualified Stock Option Agreement under Amended and Restated Hill-Rom Holdings, Inc. Stock Incentive Plan (Incorporated herein by reference to Exhibit 10.11 filed with Form 10-K dated November 16, 2011)
|
*10.8
|
Form of Non-Qualified Stock Option Agreement (CEO version) under Amended and Restated Hill-Rom Holdings, Inc. Stock Incentive Plan (Incorporated herein by reference to Exhibit 10.12 filed with Form 10-K dated November 16, 2011)
|
*10.9
|
Form of Performance Based Stock Award granted December 3, 2009 to certain executive officers, including the named executive officers, under the Stock Incentive Plan (Incorporated herein by reference to Exhibit 10.18 filed with Form 10-K dated November 17, 2010)
|
10.10
|
Credit Agreement dated as of March 28, 2008 among Hill-Rom Holdings, Inc., the lenders named therein, and Citibank, N.A. as agent for the lenders (Incorporated herein by reference to Exhibit 10.1 to the Form 8-K dated April 1, 2008)
|
*10.11
|
Employment Agreement dated as of March 31, 2008 between Hill-Rom Holdings, Inc. and Peter H. Soderberg (Incorporated herein by reference to Exhibit 10.2 filed with Form 8-K dated April 1, 2008)
|
*10.12
|
Employment Agreement dated as of March 31, 2008 between Hill-Rom Holdings, Inc. and John H. Dickey (Incorporated herein by reference to Exhibit 10.5 filed with Form 8-K dated April 1, 2008)
|
*10.13
|
Form of Change in Control Agreement between Hill-Rom Holdings, Inc. and Peter H. Soderberg (Incorporated herein by reference to Exhibit 10.6 filed with Form 8-K dated April 1, 2008)
|
10.14
|
Judgment Sharing Agreement dated as of March 14, 2008 among Hill-Rom Holdings, Inc., Hillenbrand, Inc. and Batesville Casket Company, Inc. (Incorporated herein by reference to Exhibit 10.8 filed with Form 8-K dated April 1, 2008)
|
10.15
|
Tax Sharing Agreement dated as of March 31, 2008 between Hill-Rom Holdings, Inc. and Hillenbrand, Inc. (Incorporated herein by reference to Exhibit 10.10 filed with Form 8-K dated April 1, 2008)
|
*10.16
|
Amended and Restated Hill-Rom Holdings, Inc. Stock Incentive Plan, as currently in effect (Incorporated herein by reference to Exhibit 10.30 filed with Form 10-K dated November 24, 2009)
|
*10.17
|
Employment Agreement dated as of March 31, 2008 between Hill-Rom Company, Inc. and Richard G. Keller (Incorporated herein by reference to Exhibit 10.12 filed with Form 10-Q dated May 14, 2008)
|
*10.18
|
Letter Agreement dated September 27, 2009 between Hill-Rom Holdings, Inc. and Peter H. Soderberg (Incorporated herein by reference to Exhibit 10.1 filed with Form 8-K dated September 27, 2009)
|
*10.19
|
Hill-Rom Holdings, Inc. Employee Stock Purchase Plan (Incorporated by reference to Appendix I to the Company’s definitive Proxy Statement on Schedule 14A dated January 7, 2009)
|
*10.20
|
Employment Agreement dated January 6, 2010 between Hill-Rom Holdings, Inc. and John J. Greisch (Incorporated herein by reference to Exhibit 10.1 filed with Form 8-K dated January 7, 2010)
|
*10.21
|
Change in Control Agreement between Hill-Rom Holdings, Inc. and John J. Greisch dated January 6, 2010 (Incorporated herein by reference to Exhibit 10.2 filed with Form 8-K dated January 7, 2010)
|
*10.22
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and John J. Greisch dated January 6, 2010 (Incorporated herein by reference to Exhibit 10.4 filed with Form 8-K dated January 7, 2010)
|
*10.23
|
Employment Agreement between Hill-Rom Holdings, Inc. and Alejandro Infante-Saracho dated May 6, 2010 (Incorporated herein by reference to Exhibit 10.5 filed with Form 10-Q dated May 6, 2010)
|
|
|
*10.24
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Alejandro Infante-Saracho dated May 6, 2010 (Incorporated herein by reference to Exhibit 10.6 filed with Form 10-Q dated May 6, 2010)
|
|
|
*10.25
|
Employment Agreement between Hill-Rom Holdings, Inc. and Susan R. Lichtenstein dated May 10, 2010 (Incorporated herein by reference to Exhibit 10.7 filed with Form 10-Q dated May 6, 2010)
|
|
|
*10.26
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Susan R. Lichtenstein dated May 10, 2010 (Incorporated herein by reference to Exhibit 10.8 filed with Form 10-Q dated May 6, 2010)
|
*10.27
|
Employment Agreement between Hill-Rom Holdings, Inc. and Philip D. Settimi dated May 6, 2010 (Incorporated herein by reference to Exhibit 10.9 filed with Form 10-Q dated May 6, 2010)
|
|
|
*10.28
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Philip D. Settimi dated May 6, 2010 (Incorporated herein by reference to Exhibit 10.10 filed with Form 10-Q dated May 6, 2010)
|
*10.29
|
Employment Agreement between Hill-Rom Holdings, Inc. and Martha G. Aronson dated August 1, 2010 (Incorporated by reference to Exhibit 10.50 filed with the Company’s Form 10-K dated November 17, 2010)
|
|
|
*10.30
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Martha G. Aronson dated August 1, 2010 (Incorporated by reference to Exhibit 10.51 filed with the Company’s Form 10-K dated November 17, 2010)
|
|
|
*10.31
|
Employment Agreement between Hill-Rom Holdings, Inc. and Scott R. Jeffers dated September 13, 2010 (Incorporated by reference to Exhibit 10.54 filed with the Company’s Form 10-K dated November 17, 2010)
|
|
|
*10.32
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Scott R. Jeffers dated September 13, 2010 (Incorporated by reference to Exhibit 10.55 filed with the Company’s Form 10-K dated November 17, 2010)
|
*10.33
|
Form of Change in Control Agreement between Hill-Rom Holdings, Inc. and certain of its officers, including Named Executive Officers (other than the CEO) (Incorporated by reference to Exhibit 10.58 filed with the Company’s Form 10-K dated November 17, 2010)
|
*10.34
|
Amended Change in Control Agreement between Hill-Rom Holdings, Inc. and John J. Greisch dated September 30, 2010 (Incorporated by reference to Exhibit 10.59 filed with the Company’s Form 10-K dated November 17, 2010)
|
*10.35
|
2011 Non-Employee Director Compensation Policy (Incorporated by reference to Exhibit 10.61 filed with the Company’s Form 10-K dated November 17, 2010)
|
*10.36
|
2013 Non-Employee Director Compensation Policy
|
*10.37
|
Form of Restricted Stock Unit Agreement under Amended and Restated Hill-Rom Holdings, Inc. Stock Incentive Plan (Incorporated by reference to Exhibit 10.63 filed with the Company’s Form 10-K dated November 17, 2010)
|
*10.38
|
Form of Restricted Stock Unit Agreement (CEO version) under Amended and Restated Hill-Rom Holdings, Inc. Stock Incentive Plan (Incorporated by reference to Exhibit 10.65 filed with the Company’s Form 10-K dated November 17, 2010)
|
*10.39
|
Employment Agreement between Hill-Rom Holdings, Inc. and Mark Guinan, dated November 1, 2010 (Incorporated by reference to Exhibit 10.1 filed with the Company’s Form 8-K dated November 1, 2010)
|
*10.40
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Mark Guinan, dated November 1, 2010 (Incorporated by reference to Exhibit 10.4 filed with the Company’s Form 8-K dated November 1, 2010)
|
*10.41
|
FY 2011 Form of Performance Based Stock Award under the Stock Incentive Plan (Incorporated by reference to Exhibit 10.61 filed with the Company’s Form 10-K dated November 16, 2011)
|
*10.42
|
FY 2011 Form of Performance Based Stock Award under the Stock Incentive Plan (CEO version) (Incorporated by reference to Exhibit 10.62 filed with the Company’s Form 10-K dated November 16, 2011)
|
*10.43
|
Employment Agreement between Hill-Rom Holdings, Inc. and Brian Lawrence, dated December 6, 2010 (Incorporated by reference to Exhibit 10.12 filed with the Company’s Form 10-Q dated January 27, 2011)
|
*10.44
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Brian Lawrence, dated December 6, 2010 (Incorporated by reference to Exhibit 10.13 filed with the Company’s Form 10-Q dated January 27, 2011)
|
*10.45
|
Employment Agreement between Hill-Rom Holdings, Inc. and Michael O. Oliver, dated March 14, 2011 (Incorporated by reference to Exhibit 10.1 filed with the Company’s Form 10-Q dated April 28, 2011)
|
*10.46
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Michael O. Oliver, dated March 14, 2011 (Incorporated by reference to Exhibit 10.2 filed with the Company’s Form 10-Q dated April 28, 2011)
|
*10.47
|
Hill-Rom Holdings, Inc. Short-Term Incentive Plan (Incorporated by reference to Appendix 1 to the Hill-Rom Holdings, Inc. Definitive Proxy Statement on Schedule 14A dated January 18, 2011)
|
*10.48
|
Hill-Rom Holdings, Inc. Amended and Restated Supplemental Executive Retirement Plan (Incorporated by reference to Exhibit 10.69 filed with the Company’s Form 10-K dated November 16, 2011)
|
*10.49
|
Employment Agreement between Hill-Rom Holdings, Inc. and Michael Murphy, dated July 14, 2012
|
*10.50
|
Employment Agreement between Hill-Rom Holdings, Inc. and Alton Shader, dated July 11, 2011 (Incorporated by reference to Exhibit 10.2 filed with the Company’s Form 10-Q dated July 28, 2011)
|
*10.51
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Alton Shader, dated July 11, 2011 (Incorporated by reference to Exhibit 10.3 filed with the Company’s Form 10-Q dated July 28, 2011)
|
*10.52
|
Employment Agreement between Hill-Rom Holdings, Inc. and Andreas Frank, dated October 3, 2011 (Incorporated by reference to Exhibit 10.72 filed with the Company’s Form 10-K dated November 16, 2011)
|
*10.53
|
Limited Recapture Agreement between Hill-Rom Holdings, Inc. and Andreas Frank, dated October 3, 2011 (Incorporated by reference to Exhibit 10.73 filed with the Company’s Form 10-K dated November 16, 2011)
|
*10.54
|
Employment Agreement between Hill-Rom Holdings, Inc. and Edward Gregory Pritchard, dated July 23, 2012
|
*10.55
|
Officer Indemnity Agreement between Hill-Rom Holdings, Inc. and Edward Gregory Pritchard, dated July 23, 2012
|
*10.56
|
Change in Control Agreement between Hill-Rom Holdings, Inc. and Edward Gregory Pritchard, dated July 23, 2012
|
*10.57
|
Credit Agreement dated as of August 24, 2012 among Hill-Rom Holdings, Inc., the lenders named therein, and JPMorgan Chase Bank N.A. as agent for the lenders (Incorporated herein by reference to Exhibit 10.1 to the Form 8-K dated August 24, 2012)
|
99.1
|
Schedules showing the effect of changes in reportable segments for quarterly periods in fiscal year 2009 and 2010 (Incorporated by reference to Exhibit 99.1 filed with the Company’s Form 10-Q on April 28, 2011)
|
21
|
Subsidiaries of the Registrant
|
23
|
Consent of Independent Registered Public Accounting Firm
|
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Extension Labels Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|