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SEGMENT RESULTS | 9 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
SEGMENT RESULTS | SEGMENT RESULTS The Company operates through strategic business units (SBUs) which are organized into operating segments. Operating segments are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. Corporate and Other includes certain non-allocated administrative costs and various other non-operating income and expenses, as well as the results of the Vitamins, Minerals and Supplements (VMS) business. Assets in Corporate and Other include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes, as well as the assets related to the VMS business. The principle measure of segment profitability used by management is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental charges relating to the cyberattack, asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions / divestitures and other nonrecurring or unusual items impacting comparability). The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings (losses) before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate and Other.
|  | Net sales
|  | Three months ended |  | Nine months ended
|  | 3/31/2024 |  | 3/31/2023 |  | 3/31/2024 |  | 3/31/2023
Health and Wellness |  | $ | 609 |  |  | $ | 647 |  |  | $ | 1,833 |  |  | $ | 1,881 |
Household |  | 526 |  |  | 550 |  |  | 1,353 |  |  | 1,435 |
Lifestyle |  | 315 |  |  | 353 |  |  | 947 |  |  | 1,005 |
International |  | 310 |  |  | 305 |  |  | 891 |  |  | 876 |
Corporate and Other |  | 54 |  |  | 60 |  |  | 166 |  |  | 173 |
Total |  | $ | 1,814 |  |  | $ | 1,915 |  |  | $ | 5,190 |  |  | $ | 5,370 |
|  | Segment adjusted EBIT
|  | Three months ended |  | Nine months ended
|  | 3/31/2024 |  | 3/31/2023 |  | 3/31/2024 |  | 3/31/2023
Health and Wellness |  | $ | 154 |  |  | $ | 161 |  |  | $ | 517 |  |  | $ | 418 |
Household |  | 74 |  |  | 99 |  |  | 162 |  |  | 165 |
Lifestyle |  | 64 |  |  | 83 |  |  | 192 |  |  | 217 |
International |  | 38 |  |  | 27 |  |  | 104 |  |  | 74 |
Corporate and Other |  | (70) |  |  | (101) |  |  | (238) |  |  | (251) |
Total |  | $ | 260 |  |  | $ | 269 |  |  | $ | 737 |  |  | $ | 623 |
Interest income |  | 4 |  |  | 4 |  |  | 21 |  |  | 9 |
Interest expense |  | (22) |  |  | (24) |  |  | (69) |  |  | (69) |
Loss on divestiture (1) |  | (240) |  |  | — |  |  | (240) |  |  | — |
Pension settlement charge (2) |  | — |  |  | — |  |  | (171) |  |  | — |
Cyberattack costs (3) |  | (8) |  |  | — |  |  | (57) |  |  | — |
VMS impairment (4) |  | — |  |  | (445) |  |  | — |  |  | (445) |
Streamlined operating model (5) |  | (10) |  |  | (21) |  |  | (13) |  |  | (44) |
Digital capabilities and productivity enhancements investment (6) |  | (26) |  |  | (28) |  |  | (85) |  |  | (73) |
Earnings (losses) before income taxes |  | $ | (42) |  |  | $ | (245) |  |  | $ | 123 |  |  | $ | 1 |
(1)Represents loss on divestiture of the Argentina business corresponding to International. See Note 2 for additional details related to the divestiture. (2)Represents costs related to the settlement of the domestic qualified pension plan corresponding to Corporate and Other. See Note 14 for additional details relating to the pension settlement. (3)Represents incremental costs related to the cyberattack of $8 and $57 for the three and nine months ended March 31, 2024, respectively. See Note 3 for additional details relating to the cyberattack. For informational purposes, the following table provides the approximate cyberattack costs corresponding to the Company’s reportable segments as a percentage of total costs:
| Three months ended |  | Nine months ended |  |
| 3/31/2024 |  |  |  | 3/31/2024 |  |  |  |
Health and Wellness | 18 | % |  |  |  | 15 | % |  |  |  |
Household | 12 |  |  |  |  | 11 |  |  |  |  |
Lifestyle | — |  |  |  |  | 11 |  |  |  |  |
International | — |  |  |  |  | 4 |  |  |  |  |
Corporate and Other | 70 |  |  |  |  | 59 |  |  |  |  |
Total | 100 | % |  |  |  | 100 | % |  |  |  |
(4)Represents noncash impairment charge of $445 related to the VMS business recorded in both the three and nine months ended March 31, 2023. See Note 7 for additional details relating to the impairment. (5)Represents restructuring and related implementation costs, net for the streamlined operating model of $10 and $13 for the three and nine months ended March 31, 2024, respectively and $21 and $44 for the three and nine months ended March 31, 2023, respectively. For informational purposes, the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company’s reportable segments as a percentage of the total costs:
| Three months ended |  | Nine months ended |  | Inception to date ended
| 3/31/2024 |  | 3/31/2023 |  | 3/31/2024 |  | 3/31/2023 |  | 3/31/2024
Health and Wellness | 4 | % |  | 7 | % |  | 4 | % |  | 6 | % |  | 5 | %
Household | — |  |  | 4 |  |  | — |  |  | 2 |  |  | 1 |
Lifestyle | — |  |  | 2 |  |  | — |  |  | 3 |  |  | 3 |
International | — |  |  | 21 |  |  | — |  |  | 19 |  |  | 13 |
Corporate and Other | 96 |  |  | 66 |  |  | 96 |  |  | 70 |  |  | 78 |
Total | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
(6)Represents expenses related to the Company’s digital capabilities and productivity enhancements investment corresponding to Corporate and Other. All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales. Net sales to the Company’s largest customer, Walmart Inc. and its affiliates, as a percentage of consolidated net sales, were 25% for both the three and nine months ended March 31, 2024 and 26% for both the three and nine months ended March 31, 2023. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment, for the periods indicated:
|  | Net sales |
|  | Three months ended |  | Nine months ended
|  | 3/31/2024 |  | 3/31/2023 |  | 3/31/2024 |  | 3/31/2023
Cleaning |  | 29 |  | % |  | 30 |  | % |  | 30 |  | % |  | 30 |  | %
Professional Products |  | 5 |  |  |  | 4 |  |  |  | 5 |  |  |  | 5 |  |
Health and Wellness |  | 34 |  | % |  | 34 |  | % |  | 35 |  | % |  | 35 |  | %
Bags and Wraps |  | 12 |  |  |  | 12 |  |  |  | 12 |  |  |  | 12 |  |
Cat Litter |  | 8 |  |  |  | 9 |  |  |  | 9 |  |  |  | 9 |  |
Grilling |  | 9 |  |  |  | 8 |  |  |  | 6 |  |  |  | 6 |  |
Household |  | 29 |  | % |  | 29 |  | % |  | 27 |  | % |  | 27 |  | %
Food |  | 10 |  |  |  | 10 |  |  |  | 10 |  |  |  | 11 |  |
Natural Personal Care |  | 3 |  |  |  | 4 |  |  |  | 4 |  |  |  | 4 |  |
Water Filtration |  | 4 |  |  |  | 4 |  |  |  | 4 |  |  |  | 4 |  |
Lifestyle |  | 17 |  | % |  | 18 |  | % |  | 18 |  | % |  | 19 |  | %
International |  | 17 |  | % |  | 16 |  | % |  | 17 |  | % |  | 16 |  | %
Corporate and Other |  | 3 |  | % |  | 3 |  | % |  | 3 |  | % |  | 3 |  | %
Total |  | 100 |  | % |  | 100 |  | % |  | 100 |  | % |  | 100 |  | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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