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Segment Information | 12 Months Ended
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Sep. 30, 2018
Segment Information [Abstract] |
Segment Information | NOTE 19 - SEGMENT INFORMATION ﻿ Spectrum identifies its segments based upon the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company’s reportable segments. As of the date of the merger effective July 13, 2018, the Company changed its operating and reporting segments to be consistent with the segment reporting of Spectrum. In addition, as a result of the GBL and GAC planned divestitures, and changes to the Company’s plan to sell its HPC division, the manner in which management views its business activities and the reportable segments changed. Spectrum had historically recognized GBL and HPC as components to Global Batteries and Appliances (GBA) as a separate reportable segment. Effective December 29, 2017, the Company had an approved a plan to sell its GBA segment and had classified it as held for sale up and excluded it from segment reporting until November 2018, when the decision was made to change its plan to sell HPC and recognize it as a component of continuing operations. See Note 3 – Divestitures for further details on GBL and GAC divestitures, and the change in plan to sell HPC. HPC has been recognized as a component of continuing operations and as a separate operating and reportable segment. ﻿ Spectrum manages its continuing operations in vertically integrated, product-focused reporting segments: (i) HHI, which consists of the Spectrum’s worldwide hardware, security and plumbing business; (ii) PET, which consists of the Spectrum’s worldwide pet supplies business; (iii) H&G, which consists of the Spectrum’s home and garden and insect control business and (iv) HPC, which consists of the Spectrum’s small kitchen and personal care appliances businesses. Global strategic initiatives and financial objectives for each reportable segment are determined at the corporate level. Each segment is responsible for implementing defined strategic initiatives and achieving certain financial objectives and has a president or general manager responsible for the sales and marketing initiatives and financial results for product lines within the segment. Net sales attributable to foreign countries are determined based on the domiciled country of the customer. ﻿ Net sales relating to the segments of the Company for the years ended September 30, 2018, 2017 and 2016 are as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿(in millions) |  | 2018 |  | 2017 |  | 2016
﻿HHI |  | $ | 1,377.7 |  | $ | 1,276.1 |  | $ | 1,241.0
﻿HPC |  |  | 1,110.4 |  |  | 1,132.3 |  |  | 1,169.6
﻿PET |  |  | 820.5 |  |  | 793.2 |  |  | 825.7
﻿H&G |  |  | 500.1 |  |  | 503.8 |  |  | 509.0
﻿Net sales |  | $ | 3,808.7 |  | $ | 3,705.4 |  | $ | 3,745.3
﻿ ﻿ The Chief Operating Decision Maker uses Adjusted EBITDA as the primary operating metric in evaluating the business and making operating decisions. EBITDA is calculated by excluding the Company’s income tax expense, interest expense, depreciation expense and amortization expense (from intangible assets) from net income. Adjusted EBITDA further excludes: ﻿
| · |  | ﻿Share based compensation expense as it is a non-cash based compensation cost, see Note 17 - Share Based Compensation to the Consolidated Financial Statements for further details;
| · |  | Acquisition and integration charges that consist of transaction costs from acquisition transactions during the period or subsequent integration related project costs directly associated with the acquired business, see Note 4 – Acquisitions to the Consolidated Financial Statements for further details;
| · |  | Restructuring and related charges, which consist of project costs associated with restructuring initiatives across the segments, see Note 5 - Restructuring and Related Charges to the Consolidated Financial Statements for further details;
| · |  | Non-cash purchase accounting inventory adjustments recognized in earnings subsequent to an acquisition (when applicable);
| · |  | Non-cash asset impairments or write-offs realized on goodwill, intangible assets, and property plant and equipment (when applicable). See Note 10 – Goodwill and Intangible Assets for further details;
| · |  | Incremental costs associated with a safety recall in PET. See Note 18 – Commitments and Contingencies to the Consolidated Financial Statements for further details;
| · |  | Transactions costs directly associated with the Spectrum Merger. See Note 4 – Acquisitions to the Consolidated Financial Statements for further details;
| · |  | Non-recurring HRG net operating costs considered to be redundant or duplicative as a result of the Spectrum Merger and not considered a component of the continuing commercial products company post-merger, including compensation and benefits, directors fees, professional fees, insurance, public company costs, amongst others, and including interest and other non-recurring income that will ultimately be eliminated following the transaction; including a one-time cost for the termination of a legacy HRG pension plan of $1.2 million and one-time lease termination cost for the HRG New York based corporate office of $3.1 million during the year ended September 30, 2018.
| · |  | Net operating results of Salus as they are not considered a component of the continuing commercial products company; and
| · |  | Other adjustments as further discussed.
During the fiscal year ended September 30, 2018, other adjustments consist of incremental costs for separation of key senior executives and costs attributable to flood damage at the Company’s corporate headquarters in Wisconsin. During the fiscal year ended September 30, 2017, other adjustments consists of an adjustment for the devaluation of cash and cash equivalents denominated in Venezuelan currency. During the fiscal year ended September 30, 2016, other adjustments consist of onboarding costs of a key executive. ﻿ NOTE 19 - SEGMENT INFORMATION (continued) ﻿ Segment Adjusted EBITDA in relation to the Company’s reportable segments for SBH and SB/RH for the years ended September 30, 2018, 2017 and 2016, is as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿SBH (in millions) |  | 2018 |  | 2017 |  | 2016
﻿HHI |  | $ | 254.7 |  | $ | 254.4 |  | $ | 241.6
﻿HPC |  |  | 119.4 |  |  | 147.8 |  |  | 141.3
﻿PET |  |  | 136.7 |  |  | 142.7 |  |  | 140.1
﻿H&G |  |  | 107.5 |  |  | 133.0 |  |  | 138.3
﻿Total Segment Adjusted EBITDA |  |  | 618.3 |  |  | 677.9 |  |  | 661.3
﻿Corporate expenses |  |  | 36.3 |  |  | 39.3 |  |  | 31.9
﻿Interest expense |  |  | 264.0 |  |  | 310.4 |  |  | 336.9
﻿Depreciation and amortization |  |  | 125.3 |  |  | 147.3 |  |  | 136.7
﻿Share-based compensation |  |  | 11.9 |  |  | 54.2 |  |  | 71.1
﻿Acquisition and integration related charges |  |  | 15.3 |  |  | 17.7 |  |  | 22.1
﻿Restructuring and related charges |  |  | 75.6 |  |  | 37.5 |  |  | 10.2
﻿HPC divestiture related charges |  |  | 14.9 |  |  | — |  |  | —
﻿Write-off from impairment of intangible assets |  |  | 20.3 |  |  | 16.3 |  |  | 4.7
﻿Inventory acquisition step-up |  |  | 0.8 |  |  | 3.3 |  |  | —
﻿Pet safety recall |  |  | 18.9 |  |  | 35.8 |  |  | —
﻿Spectrum merger related transaction charges |  |  | 45.9 |  |  | 7.6 |  |  | —
﻿Non-recurring HRG operating costs |  |  | 20.0 |  |  | 36.1 |  |  | 55.1
﻿Other |  |  | 4.8 |  |  | 0.3 |  |  | 0.5
﻿Loss from operations before income taxes |  | $ | (35.7) |  | $ | (27.9) |  | $ | (7.9)
﻿ ﻿ ﻿ ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿SB/RH (in millions) |  | 2018 |  | 2017 |  | 2016
﻿HHI |  | $ | 254.7 |  | $ | 254.4 |  | $ | 241.6
﻿PET |  |  | 136.7 |  |  | 142.7 |  |  | 140.1
﻿H&G |  |  | 107.5 |  |  | 133.0 |  |  | 138.3
﻿HPC |  |  | 119.4 |  |  | 147.8 |  |  | 141.3
﻿Total Segment Adjusted EBITDA |  |  | 618.3 |  |  | 677.9 |  |  | 661.3
﻿Corporate expenses |  |  | 35.9 |  |  | 38.6 |  |  | 31.4
﻿Interest expense |  |  | 167.0 |  |  | 161.8 |  |  | 184.4
﻿Depreciation and amortization |  |  | 124.6 |  |  | 146.8 |  |  | 136.0
﻿Share-based compensation |  |  | 8.8 |  |  | 46.2 |  |  | 52.5
﻿Acquisition and integration related charges |  |  | 15.3 |  |  | 17.7 |  |  | 22.2
﻿Restructuring and related charges |  |  | 75.6 |  |  | 37.5 |  |  | 10.2
﻿HPC divestiture related charges |  |  | 14.9 |  |  | — |  |  | —
﻿Write-off from impairment of intangible assets |  |  | 20.3 |  |  | 16.3 |  |  | 4.7
﻿Inventory acquisition step-up |  |  | 0.8 |  |  | 3.3 |  |  | —
﻿Pet safety recall |  |  | 18.9 |  |  | 35.8 |  |  | —
﻿Other |  |  | 6.1 |  |  | 0.3 |  |  | 0.3
﻿Income from continuing operations before income taxes |  | $ | 130.1 |  | $ | 173.6 |  | $ | 219.6
﻿ ﻿ NOTE 19 - SEGMENT INFORMATION (continued) ﻿ Other financial information relating to the segments of SBH and SB/RH are as follows for the years ended September 30, 2018, 2017 and 2016 and as of September 30, 2018 and 2017: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | SBH |  | SB/RH
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Depreciation and amortization (in millions) |  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
﻿HHI |  |  | 40.0 |  |  | 38.3 |  |  | 35.4 |  |  | 40.0 |  |  | 38.3 |  |  | 35.4
﻿PET |  |  | 42.3 |  |  | 43.1 |  |  | 42.7 |  |  | 42.3 |  |  | 43.1 |  |  | 42.7
﻿H&G |  |  | 18.8 |  |  | 17.6 |  |  | 15.2 |  |  | 18.8 |  |  | 17.6 |  |  | 15.2
﻿HPC |  |  | 8.8 |  |  | 34.8 |  |  | 32.8 |  |  | 8.8 |  |  | 34.8 |  |  | 32.8
﻿Total segments |  |  | 109.9 |  |  | 133.8 |  |  | 126.1 |  |  | 109.9 |  |  | 133.8 |  |  | 126.1
﻿Corporate |  |  | 15.4 |  |  | 13.5 |  |  | 10.6 |  |  | 14.7 |  |  | 13.0 |  |  | 9.9
﻿Total depreciation and amortization |  | $ | 125.3 |  | $ | 147.3 |  | $ | 136.7 |  | $ | 124.6 |  | $ | 146.8 |  | $ | 136.0
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | SBH |  | SB/RH
﻿Capital expenditures (in millions) |  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
﻿HHI |  |  | 15.6 |  |  | 25.5 |  |  | 22.3 |  |  | 15.6 |  |  | 25.5 |  |  | 22.3
﻿PET |  |  | 24.6 |  |  | 20.2 |  |  | 14.4 |  |  | 24.6 |  |  | 20.2 |  |  | 14.4
﻿H&G |  |  | 6.4 |  |  | 6.5 |  |  | 6.9 |  |  | 6.4 |  |  | 6.5 |  |  | 6.9
﻿HPC |  |  | 14.8 |  |  | 15.3 |  |  | 12.9 |  |  | 14.8 |  |  | 15.3 |  |  | 12.9
﻿Total segment capital expenditures |  |  | 61.4 |  |  | 67.5 |  |  | 56.5 |  |  | 61.4 |  |  | 67.5 |  |  | 56.5
﻿Corporate |  |  | 14.5 |  |  | 14.3 |  |  | 17.2 |  |  | 14.5 |  |  | 14.3 |  |  | 17.0
﻿Total capital expenditures |  | $ | 75.9 |  | $ | 81.8 |  | $ | 73.7 |  | $ | 75.9 |  | $ | 81.8 |  | $ | 73.5
﻿ ﻿ ﻿ ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | SBH |  | SB/RH
﻿Segment total assets (in millions) |  | 2018 |  | 2017 |  | 2018 |  | 2017
﻿HHI |  |  | 1,640.7 |  |  | 1,698.3 |  |  | 1,640.7 |  |  | 1,698.3
﻿PET |  |  | 1,367.6 |  |  | 1,397.5 |  |  | 1,367.6 |  |  | 1,397.5
﻿H&G |  |  | 528.4 |  |  | 546.7 |  |  | 528.4 |  |  | 546.7
﻿HPC |  |  | 970.9 |  |  | 1,003.1 |  |  | 970.9 |  |  | 1,003.1
﻿Total segment assets |  |  | 4,507.6 |  |  | 4,645.6 |  |  | 4,507.6 |  |  | 4,645.6
﻿Corporate |  |  | 888.8 |  |  | 394.4 |  |  | 727.2 |  |  | 274.8
﻿Total assets |  | $ | 5,396.4 |  | $ | 5,040.0 |  | $ | 5,234.8 |  | $ | 4,920.4
﻿ Net sales SBH and SB/RH for the years ended September 30, 2018, 2017 and 2016 and long-lived asset information as of September 30, 2018 and 2017 by geographic area are as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | SBH/SBRH
﻿Net sales to external parties - Geographic Disclosure (in millions) |  | 2018 |  | 2017 |  | 2016
﻿United States |  | $ | 2,627.2 |  | $ | 2,543.2 |  | $ | 2,523.3
﻿Europe/MEA |  |  | 669.4 |  |  | 653.2 |  |  | 703.6
﻿Latin America |  |  | 212.1 |  |  | 207.5 |  |  | 232.3
﻿North America - Other |  |  | 173.9 |  |  | 174.4 |  |  | 164.7
﻿Asia-Pacific |  |  | 126.1 |  |  | 127.1 |  |  | 121.4
﻿Net sales |  | $ | 3,808.7 |  | $ | 3,705.4 |  | $ | 3,745.3
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | SBH |  | SB/RH
﻿Long-lived assets - Geographic Disclosure (in millions) |  | 2018 |  | 2017 |  | 2018 |  | 2017
﻿United States |  | $ | 345.1 |  | $ | 335.0 |  | $ | 345.1 |  | $ | 334.2
﻿Europe/MEA |  |  | 84.3 |  |  | 90.6 |  |  | 84.3 |  |  | 90.6
﻿Latin America |  |  | 26.7 |  |  | 26.2 |  |  | 26.7 |  |  | 26.2
﻿North America - Other |  |  | 1.3 |  |  | 1.8 |  |  | 1.3 |  |  | 1.8
﻿Asia-Pacific |  |  | 42.6 |  |  | 45.4 |  |  | 42.6 |  |  | 45.4
﻿Total long-lived assets |  | $ | 500.0 |  | $ | 499.0 |  | $ | 500.0 |  | $ | 498.2
﻿ ﻿ ﻿

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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