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Segment Information | 9 Months Ended
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Jun. 28, 2020
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION Net sales relating to the segments for the three and nine month periods ended June 28, 2020 and June 30, 2019 are as follows:
|  | Three Month Periods Ended |  |  |  | Nine Month Periods Ended |  |
(in millions) |  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
HHI |  | $ | 281.6 |  |  | $ | 354.6 |  |  | $ | 908.4 |  |  | $ | 990.7 |
HPC |  | 250.6 |  |  | 243.4 |  |  | 805.4 |  |  | 782.3 |
GPC |  | 241.5 |  |  | 221.7 |  |  | 684.2 |  |  | 641.3 |
H&G |  | 210.6 |  |  | 202.5 |  |  | 395.6 |  |  | 394.9 |
Net sales |  | $ | 984.3 |  |  | $ | 1,022.2 |  |  | $ | 2,793.6 |  |  | $ | 2,809.2 |
The Chief Operating Decision Maker of the Company 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: •Stock based and other incentive compensation costs that consist of costs associated with long-term compensation arrangements and other equity based compensation based upon achievement of long-term performance metrics; and generally consist of non-cash, stock-based compensation. During the year ending September 30, 2019, the Company issued certain incentive bridge awards due to changes in the Company’s long-term compensation plans that allow for cash based payment upon employee election which have been included in the adjustment but do not qualify for shared-based compensation. See Note 16 - Share Based Compensation for further discussion; •Restructuring and related charges, which consist of project costs associated with restructuring initiatives across the segments. See Note 4 - Restructuring and Related Charges for further details; •Transaction related charges that consist of (1) transaction costs from qualifying acquisition transactions during the period, or subsequent integration related project costs directly associated with an acquired business; and (2) divestiture related transaction costs that are recognized in continuing operations and post-divestiture separation costs consisting of incremental costs to facilitate separation of shared operations, development of transferred shared service operations, platforms and personnel transferred as part of the divestitures and exiting of TSAs. See Note 1 – Basis of Presentation & Significant Accounting Policies for additional details; •Gains and losses attributable to the Company’s investment in Energizer common stock, acquired as part of consideration received from the Company’s sale and divestiture of GAC. See Note 2 – Divestitures and Note 13 – Fair Value of Financial Instruments for further discussion; •Non-cash purchase accounting inventory adjustments recognized in earnings from continuing operations subsequent to an acquisition (when applicable); •Non-cash asset impairments or write-offs realized and recognized in earnings from continuing operations (when applicable); •Foreign currency gains and losses attributable to multicurrency loans for the three and nine month periods ended June 28, 2020 and June 30, 2019, that were entered into with foreign subsidiaries in exchange for receipt of divestiture proceeds by the parent company and the distribution of the respective foreign subsidiaries’ net assets as part of the GBL and GAC divestures during the year ended September 30, 2019. The Company has entered into various hedging arrangements to mitigate the volatility of foreign exchange risk associated with such loans; •Legal and litigation costs associated with Salus during the three and nine month periods ended June 28, 2020 and June 30, 2019 as they are not considered a component of the continuing commercial products company, but continue to be consolidated by the Company until the Salus operations can be wholly dissolved and/or deconsolidated; •Gain on extinguishment of the Salus CLO debt due to the discharge of the obligation during the three month period ended June 28, 2020. See Note 10 - Debt for further details; and •Other adjustments primarily consisting of costs attributable to (1) expenses and cost recovery for flood damage at Company facilities in Middleton, Wisconsin during the three and nine month periods ended June 28, 2020 and June 30, 2019; (2) incremental costs for separation of a key executive during the three and nine month periods ended June 28, 2020 and June 30, 2019; (3) incremental costs associated with a safety recall in GPC during the three and nine month periods ended June 30, 2019; (4) operating margin on H&G sales to GAC discontinued operations during the three and nine month period ended June 30, 2019; and (5) certain fines and penalties for delayed shipments following the completion of a GPC distribution center consolidation in EMEA during the nine month period ended June 30, 2019. Segment Adjusted EBITDA for the reportable segments for SBH for the three and nine month periods ended June 28, 2020 and June 30, 2019, are as follows:
|  | Three Month Periods Ended |  |  |  | Nine Month Periods Ended |  |
SBH (in millions) |  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
HHI |  | $ | 43.6 |  |  | $ | 67.7 |  |  | $ | 156.0 |  |  | $ | 175.9 |
HPC |  | 25.0 |  |  | 18.2 |  |  | 69.4 |  |  | 57.7 |
GPC |  | 50.6 |  |  | 39.0 |  |  | 122.1 |  |  | 100.9 |
H&G |  | 55.5 |  |  | 53.3 |  |  | 80.6 |  |  | 85.9 |
Total Segment Adjusted EBITDA |  | 174.7 |  |  | 178.2 |  |  | 428.1 |  |  | 420.4 |
Corporate |  | 10.3 |  |  | 5.3 |  |  | 21.1 |  |  | 16.7 |
Interest expense |  | 36.1 |  |  | 33.9 |  |  | 106.5 |  |  | 185.1 |
Depreciation and amortization |  | 35.0 |  |  | 35.9 |  |  | 113.1 |  |  | 138.4 |
Share and incentive based compensation |  | 14.2 |  |  | 15.6 |  |  | 43.3 |  |  | 38.7 |
Restructuring and related charges |  | 12.2 |  |  | 20.7 |  |  | 61.6 |  |  | 42.2 |
Transaction related charges |  | 6.1 |  |  | 4.8 |  |  | 17.4 |  |  | 16.4 |
Loss on assets held for sale |  | 1.1 |  |  | — |  |  | 26.8 |  |  | — |
Write-off from impairment of intangible assets |  | — |  |  | — |  |  | 24.2 |  |  | — |
(Gain) loss on Energizer investment |  | (60.1) |  |  | 33.2 |  |  | 8.2 |  |  | 38.2 |
Foreign currency translation on multicurrency divestiture loans |  | 4.5 |  |  | 7.7 |  |  | 5.0 |  |  | 29.5 |
GPC safety recall |  | — |  |  | — |  |  | — |  |  | 0.7 |
Salus |  | 0.2 |  |  | — |  |  | 0.6 |  |  | — |
Salus CLO debt extinguishment |  | (76.2) |  |  | — |  |  | (76.2) |  |  | — |
Other |  | 0.1 |  |  | 1.6 |  |  | 0.4 |  |  | 3.9 |
Income from operations before income taxes |  | $ | 191.2 |  |  | $ | 19.5 |  |  | $ | 76.1 |  |  | $ | (89.4) |
Segment Adjusted EBITDA for reportable segments for SB/RH for the three and nine month periods ended June 28, 2020 and June 30, 2019 are as follows:
|  | Three Month Periods Ended |  |  |  | Nine Month Periods Ended |  |
SB/RH (in millions) |  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
HHI |  | $ | 43.6 |  |  | $ | 67.7 |  |  | $ | 156.0 |  |  | $ | 175.9 |
HPC |  | 25.0 |  |  | 18.2 |  |  | 69.4 |  |  | 57.7 |
GPC |  | 50.6 |  |  | 39.0 |  |  | 122.1 |  |  | 100.9 |
H&G |  | 55.5 |  |  | 53.3 |  |  | 80.6 |  |  | 85.9 |
Total Segment Adjusted EBITDA |  | 174.7 |  |  | 178.2 |  |  | 428.1 |  |  | 420.4 |
Corporate |  | 9.3 |  |  | 5.6 |  |  | 16.6 |  |  | 15.4 |
Interest expense |  | 36.0 |  |  | 33.7 |  |  | 106.0 |  |  | 125.2 |
Depreciation and amortization |  | 35.0 |  |  | 35.9 |  |  | 113.1 |  |  | 138.4 |
Share and incentive based compensation |  | 13.8 |  |  | 15.2 |  |  | 42.3 |  |  | 37.6 |
Restructuring and related charges |  | 12.2 |  |  | 20.7 |  |  | 61.6 |  |  | 42.2 |
Transaction related charges |  | 6.1 |  |  | 4.8 |  |  | 17.4 |  |  | 16.4 |
Loss on assets held for sale |  | 1.1 |  |  | — |  |  | 26.8 |  |  | — |
Write-off from impairment of intangible assets |  | — |  |  | — |  |  | 24.2 |  |  | — |
(Gain) loss on Energizer investment |  | (60.1) |  |  | 33.2 |  |  | 8.2 |  |  | 38.2 |
Foreign currency translation on multicurrency divestiture loans |  | 4.5 |  |  | 7.7 |  |  | 4.9 |  |  | 29.5 |
GPC safety recall |  | — |  |  | — |  |  | — |  |  | 0.7 |
Other |  | 0.1 |  |  | 0.4 |  |  | 0.4 |  |  | 2.8 |
Income (loss) from operations before income taxes |  | $ | 116.7 |  |  | $ | 21.0 |  |  | $ | 6.6 |  |  | $ | (26.0) |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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