Divestment

9 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

As discussed in Note 1, the Divestment Business was classified as held for sale in the accompanying Consolidated (Condensed) Balance Sheets and as discontinued operations in the accompanying Consolidated (Condensed) Statement of Earnings and Comprehensive Income.

On May 29, 2019, the Company entered into a definitive agreement with VARTA AG to sell the Divestment Business for €180.0, subject to approval by the European Commission and certain purchase price adjustments. Pursuant to the terms of the Battery Acquisition agreement, Spectrum will be contributing an additional $200.0 to Energizer in connection with the divestiture. The total proceeds anticipated prior to contractual purchase price adjustments with VARTA AG is approximately $405. The Company estimates the contractual adjustments could be up to $100. The Divestment Business is expected to be sold by the end of calendar year 2019 and the Company anticipates recording a loss at the time of divestment, which would include the impact of any contractual adjustments.

The following table summarizes the assets and liabilities of the Divestment Business classified as held for sale as of June 30, 2019. As the Company did not own the business as of September 30, 2018, there are no Divestment Business assets or liabilities as of that period:



	June 30, 2019
Assets
Trade receivables	$	41.1
Inventories	60.8
Other current assets	30.4
Property, plant and equipment, net	77.5
Goodwill	15.5
Other intangible assets, net	565.7
Other assets	16.6
Assets held for sale	$	807.6

Liabilities
Current portion of capital leases	$	5.4
Accounts payable	32.0
Notes payable	2.5
Other current liabilities	78.9
Long-term debt	26.7
Other liabilities (1)	239.4
Liabilities held for sale	$	384.9

(1) Included in other liabilities is deferred tax liabilities of $198.2 and pension liabilities of $40.3 related to the Divestment Business.

The following table summarizes the components of Loss from discontinued operations in the accompanying Consolidated (Condensed) Statement of Earnings and Comprehensive Income for the quarter and nine months ended June 30, 2019. As the Company acquired the business on January 2, 2019, there is no activity on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income for the three and nine months ended June 30, 2018:



	For the Quarter Ended			For the Nine Months Ended
	June 30, 2019			June 30, 2019
Net sales	$	69.9		$	150.1
Cost of products sold	52.5			122.3
Gross profit	17.4			27.8
Selling, general and administrative expense	18.1			39.2
Advertising and sales promotion expense	0.2			0.5
Research and development expense	0.2			0.2
Interest expense	3.7			10.4
Other items, net	(3.4		)	(7.2		)
Loss before income taxes from discontinued operations	(1.4		)	(15.3		)
Income tax expense (benefit)	0.4			(2.5		)
Net loss from discontinued operations	$	(1.8	)	$	(12.8	)

Included in the loss from discontinued operations for the quarter ended June 30, 2019 are divestment related pre-tax costs of $4.2 and allocated pre-tax interest expense of $3.7. The nine months ended June 30, 2019 include the inventory fair value pre-tax adjustment of $11.2, divestment related pre-tax costs of $9.9, and allocated pre-tax interest expense of $9.9.