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Supplemental Balance Sheet Information | 3 Months Ended
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Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract] |
Supplemental Balance Sheet Information | Supplemental Consolidated Balance Sheet Information
| December 31, 2025 |  | September 30, 2025
Allowance for credit losses | $ | 11.8 |  |  | $ | 11.3 |
Warranty reserves | $ | 43.1 |  |  | $ | 46.0 |
Accumulated depreciation on property, plant, and equipment | $ | 251.8 |  |  | $ | 245.0 |
Inventories, net: |  |  |
Raw materials and components | $ | 165.8 |  |  | $ | 164.7 |
Work in process | 86.4 |  |  | 81.9 |
Finished goods | 97.2 |  |  | 97.4 |
Total inventories, net | $ | 349.4 |  |  | $ | 344.0 |
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:
| December 31, 2025 |  | December 31, 2024
Cash and cash equivalents | $ | 173.1 |  |  | $ | 208.0 |
Short-term restricted cash included in other current assets | 6.5 |  |  | 6.9 |
Long-term restricted cash included in other long-term assets | 18.7 |  |  | 23.6 |
Total cash and cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ | 198.3 |  |  | $ | 238.5 |
Equity Method Investment The Consolidated Financial Statements include our 48.74% interest in Milacron Holdings, which is accounted for using the equity method of accounting as we have significant influence over the operating and financial policies but not controlling interests. When we record our proportionate share of net income, we record it as a reduction or increase to selling, general and administrative expenses in the Consolidated Statements of Operations and adjust the carrying value of our equity method investment. The value of our equity method investments, which is recorded in Equity method investments in the Consolidated Balance Sheet, was $62.6 and $68.8 at December 31, 2025 and September 30, 2025, respectively. We recorded our proportionate share of net (loss) income from equity method investments of $(6.2) and $2.8 for the three months ended December 31, 2025 and 2024, respectively, as a component of selling, general and administrative expenses. Supplier Finance Program The Company has an agreement with a third-party to facilitate a supply chain finance (“SCF”) program with participating financial institutions. The SCF program allows qualifying suppliers to sell their receivables, on an invoice level at the selection of the supplier, from the Company to the financial institutions and negotiate their outstanding receivable arrangements and associated fees directly with the financial institutions. Hillenbrand is not party to the agreements between the supplier and the financial institutions. The supplier invoices that have been confirmed as valid under the SCF program require payment in full by the financial institutions to the supplier by the original maturity date of the invoice, or discounted payment at an earlier date as agreed upon with the supplier. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a supplier’s participation in the SCF program. All outstanding amounts related to suppliers participating in the SCF program are recorded upon confirmation with the third-party financial institutions in trade accounts payable in the Consolidated Balance Sheets, and associated payments are included in cash used in operating activities in the Consolidated Statements of Cash Flows. The Company’s outstanding obligations included in trade accounts payable as of December 31, 2025 and September 30, 2025, were $12.5 and $13.7, respectively. Trade Receivables Financing Agreements The Company sells a small percentage of its trade receivables to outside financial institutions in the normal course of business. These trade receivable financing agreements are accounted for as a true sale of assets under the provisions of Accounting Standards Codification (“ASC”) 860, Transfer and Servicing (“ASC 860”). For one of the Company’s trade receivable financing agreement with a financial institution (the “Agreement”), we receive the majority of the proceeds of the trade receivables sold to the financial institution upon sale in cash (level 1 fair value measurement) with the remaining portion of the proceeds held by the financial institution as a deferred purchase price (“DPP”) (level 2 fair value measurement) until the collection of the trade receivables sold. The DPP receivables are ultimately realized by the Company following the collection of the underlying trade receivables sold to the financial institution (typically within 90 - 120 days). As defined in the Agreement, the financial institution is responsible for any credit risk associated with the sold trade receivables. There is no limit on the amount of trade receivables that can be sold under the Agreement; however, all trade receivables must be accepted by the financial institution prior to sale. Sales of trade receivables under the Agreement and other trade receivable factoring arrangements were $76.7 and $70.8 for the three months ended December 31, 2025 and 2024, respectively, and cash collections from customers on trade receivables sold were $75.7 and $71.7 during the three months ended December 31, 2025 and 2024, respectively. The Company acts as a servicer (collects customer cash on behalf of the financial institution) for one of its trade receivables factoring arrangements. The servicing fee associated with this trade receivables factoring arrangement was not material to the Company for the three months ended December 31, 2025 or 2024, respectively. Amounts collected on behalf of the financial institution under this trade receivables factoring arrangement and owed to the financial institution were $0.6 and $4.2 at December 31, 2025 and September 30, 2025, respectively. The loss on the sale of trade receivables under the Agreement and other trade receivables factoring arrangements was not material to the Company for the three months ended December 31, 2025 or 2024. As of December 31, 2025 and September 30, 2025, trade receivables in the amount of $26.5 and $28.3, respectively were sold to the financial institution and are not reflected in trade receivables in the Consolidated Balance Sheets. The following roll forward summarizes the activity related to the DPP receivables:
| Three Months Ended December 31, 2025 |  | Three Months Ended December 31, 2024 |  |
Beginning DPP receivables balance | $ | 3.7 |  |  | $ | 6.7 |  |  |
Non-cash additions to DPP receivables | 3.4 |  |  | 9.2 |  |  |
Cash collections on DPP receivables | (2.4) |  |  | (10.1) |  |  |
Ending DPP receivables balance | $ | 4.7 |  |  | $ | 5.8 |  |  |

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