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SEGMENT INFORMATION | 12 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company identifies its segments based upon the internal organization that is used by management for making operating decisions and assessing performance as the source of its reportable segments. The Company manages its continuing operations in three vertically integrated, product-focused reporting segments: (i) GPC, which consists of the Company’s worldwide pet care business; (ii) H&G, which consists of the Company’s home and garden and insect control business and (iii) HPC, which consists of the Company’s worldwide 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 responsible for the sales and marketing initiatives and financial results for product lines within the segment. The segments are supported through center-led corporate shared service operations consisting of finance and accounting, information technology, legal and human resource, supply chain and commercial operations. Net sales relating to the segments for the years ended September 30, 2021, 2020 and 2019 are as follows:
(in millions) |  | 2021 |  | 2020 |  | 2019
HPC |  | $ | 1,260.1 |  |  | $ | 1,107.6 |  |  | $ | 1,068.1 |
GPC |  | 1,129.9 |  |  | 962.6 |  |  | 870.2 |
H&G |  | 608.1 |  |  | 551.9 |  |  | 508.1 |
Net sales |  | $ | 2,998.1 |  |  | $ | 2,622.1 |  |  | $ | 2,446.4 |
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 under the Company's Long-Term Incentive Plan ("LTIP"); and generally consist of non-cash, stock-based compensation. During the years ended September 30, 2021, 2020, and 2019, other incentive compensation also includes incentive bridge awards issued due to changes in the Company’s LTIP that allowed for cash based payment upon employee election but does not qualify for share-based compensation. All bridge awards fully vested in November 2020. See Note 19 - Share Based Compensation for further details. •Restructuring and related charges, which consist of project costs associated with the restructuring initiatives across the Company's segments. See Note 5 - Restructuring and Related Charges for further details; •Transaction related charges that consist of (1) transaction costs from acquisitions or subsequent project costs directly associated with integration of an acquired business with the consolidated group; and (2) transaction costs from divestitures and subsequent project costs to facilitate separation of shared operations, including development of transferred shared service operations, platforms and personnel transferred and exiting of transition service arrangements (TSAs) and reverse TSAs. See Note 2 – Significant Accounting Policies and Practices for further details; •Unallocated shared costs associated with discontinued operations from certain shared and center-led administrative functions supporting the Company's business units excluded from income from discontinued operations as they are not a direct cost of the discontinued business but a result of indirect allocations, including but not limited to, information technology, human resources, finance and accounting, supply chain, and commercial operations. Amounts attributable to unallocated shared costs would be mitigated through subsequent strategic or restructuring initiatives, TSAs, elimination of extraneous costs or re-allocation or absorption by existing continuing operations following the completed sale of the discontinued operations. See Note 3 - Divestitures for further details; •Gains and losses attributable to the Company’s investment in Energizer common stock. During the year ended September 30, 2021, the Company sold its remaining shares in Energizer common stock. See Note 7 – Fair Value of Financial Instruments for further details; •Non-cash asset impairments or write-offs realized and recognized in earnings from continuing operations; •Non-cash purchase accounting inventory adjustments recognized in earnings from continuing operations after an acquisition; •Incremental reserves for non-recurring litigation or environmental remediation activity including (1) proposed settlement on outstanding litigation matters at our H&G division attributable to significant and unusual nonrecurring claims with no previous history or precedent recognized during the year ended September 30, 2021, (2) environmental remediation reserves realized during the year ended September 30, 2019 on legacy properties and former manufacturing sites assumed by the organization which had previously been exited by the Company, and (3) legal settlement costs associated with retained litigation from the Company's divested GAC operations realized during the year ended September 30, 2019. See Note 21 – Commitments and Contingencies for further details; •Incremental costs realized under a three-year tolling agreement entered into with the buyer in consideration with the divestiture of the Coevorden Operations on March 29, 2020, for the continued production of dog and cat food products purchased to support GPC commercial operations and distribution in Europe. See Note 3 - Divestitures for further details; •Gain on extinguishment of the Salus CLO debt due to the discharge of the obligation during the year ended September 30, 2020. See Note 12 - Debt for further details; •Foreign currency gains and losses attributable to multicurrency loans for the years ended September 30, 2020 and 2019, that were entered into with foreign subsidiaries in exchange for the 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 divestitures; and •Other adjustments primarily consisting of costs attributable to (1) incremental fines and penalties realized for delayed shipments following the transition of a third-party logistics service provider in GPC during the year ended September 30, 2021; (2) costs associated with Salus operations during the years ended September 30, 2021, 2020 and 2019 as they are not considered a component of continuing commercial products company; (3) expenses and cost recovery for flood damage at the Company's facilities in Middleton, Wisconsin recognized during the years ended September 30, 2020 and 2019; (4) incremental costs for separation of a key executives during the years ended September 30, 2020 and 2019; (5) costs associated with a safety recall in GPC during the year ended September 30, 2019; (6) operating margin on H&G sales to GAC discontinued operations during the year ended September 30, 2019; and (7) certain fines and penalties for delayed shipments following the completion of a GPC distribution center consolidation in EMEA during the year ended September 30, 2019. Segment Adjusted EBITDA in relation to the Company’s reportable segments for SBH and SB/RH for the years ended September 30, 2021, 2020, and 2019, is as follows:
SBH (in millions) |  | 2021 |  | 2020 |  | 2019
HPC |  | $ | 102.6 |  |  | $ | 92.2 |  |  | $ | 87.2 |
GPC |  | 212.1 |  |  | 172.0 |  |  | 142.6 |
H&G |  | 124.0 |  |  | 112.1 |  |  | 105.5 |
Total Segment Adjusted EBITDA |  | 438.7 |  |  | 376.3 |  |  | 335.3 |
Corporate |  | 46.9 |  |  | 52.4 |  |  | 22.0 |
Interest expense |  | 116.5 |  |  | 93.7 |  |  | 158.4 |
Depreciation and amortization |  | 117.0 |  |  | 114.7 |  |  | 147.3 |
Share and incentive based compensation |  | 29.4 |  |  | 36.1 |  |  | 47.6 |
Restructuring and related charges |  | 40.3 |  |  | 71.6 |  |  | 61.0 |
Transaction related charges |  | 56.3 |  |  | 23.1 |  |  | 20.9 |
Unallocated shared costs |  | 26.9 |  |  | 17.4 |  |  | 15.7 |
(Gain) loss on Energizer investment |  | (6.9) |  |  | 16.8 |  |  | 12.1 |
Inventory acquisition step-up |  | 7.3 |  |  | — |  |  | — |
Loss on sale of Coevorden operations |  | — |  |  | 26.8 |  |  | — |
Write-off from impairment of goodwill |  | — |  |  | — |  |  | 116.0 |
Write-off from impairment of intangible assets |  | — |  |  | 24.2 |  |  | 35.4 |
Legal and environmental remediation reserves |  | 6.0 |  |  | — |  |  | 10.0 |
Foreign currency loss on multicurrency divestiture loans |  | — |  |  | 3.8 |  |  | 36.2 |
Salus CLO debt extinguishment |  | — |  |  | (76.2) |  |  | — |
Coevorden tolling related charges |  | 6.2 |  |  | — |  |  | — |
Other |  | 3.9 |  |  | (3.0) |  |  | 6.9 |
Loss from operations before income taxes |  | $ | (11.1) |  |  | $ | (25.1) |  |  | $ | (354.2) |
SB/RH (in millions) |  | 2021 |  | 2020 |  | 2019
HPC |  | $ | 102.6 |  |  | $ | 92.2 |  |  | $ | 87.2 |
GPC |  | 212.1 |  |  | 172.0 |  |  | 142.6 |
H&G |  | 124.0 |  |  | 112.1 |  |  | 105.5 |
Total Segment Adjusted EBITDA |  | 438.7 |  |  | 376.3 |  |  | 335.3 |
Corporate |  | 44.9 |  |  | 47.5 |  |  | 20.7 |
Interest expense |  | 116.8 |  |  | 93.2 |  |  | 106.1 |
Depreciation and amortization |  | 117.0 |  |  | 114.7 |  |  | 147.3 |
Share and incentive based compensation |  | 27.7 |  |  | 34.8 |  |  | 47.2 |
Restructuring and related charges |  | 40.3 |  |  | 71.6 |  |  | 61.0 |
Transaction related charges |  | 56.3 |  |  | 23.1 |  |  | 20.9 |
Unallocated shared costs |  | 26.9 |  |  | 17.4 |  |  | 15.7 |
(Gain) loss on Energizer investment |  | (6.9) |  |  | 16.8 |  |  | 12.1 |
Inventory acquisition step-up |  | 7.3 |  |  | — |  |  | — |
Loss on sale of Coevorden operations |  | — |  |  | 26.8 |  |  | — |
Write-off from impairment of goodwill |  | — |  |  | — |  |  | 116.0 |
Write-off from impairment of intangible assets |  | — |  |  | 24.2 |  |  | 35.4 |
Legal and environmental remediation reserves |  | 6.0 |  |  | — |  |  | 10.0 |
Foreign currency loss on multicurrency divestiture loans |  | — |  |  | 3.8 |  |  | 36.2 |
Coevorden tolling related charges |  | 6.2 |  |  | — |  |  | — |
Other |  | 3.9 |  |  | (3.7) |  |  | 4.1 |
Loss from operations before income taxes |  | $ | (7.7) |  |  | $ | (93.9) |  |  | $ | (297.4) |
Other financial information relating to the segments of SBH and SB/RH are as follows for the years ended September 30, 2021, 2020 and 2019 and as of September 30, 2021 and 2020:
Depreciation and amortization (in millions) |  | 2021 |  | 2020 |  | 2019 |  |  |  |  |  |
HPC |  | $ | 44.0 |  |  | $ | 35.2 |  |  | $ | 64.6 |  |  |  |  |  |  |
GPC |  | 39.3 |  |  | 44.4 |  |  | 48.8 |  |  |  |  |  |  |
H&G |  | 19.2 |  |  | 20.4 |  |  | 19.3 |  |  |  |  |  |  |
Total segments |  | 102.5 |  |  | 100.0 |  |  | 132.7 |  |  |  |  |  |  |
Corporate and shared operations |  | 14.5 |  |  | 14.7 |  |  | 14.6 |  |  |  |  |  |  |
Total depreciation and amortization |  | $ | 117.0 |  |  | $ | 114.7 |  |  | $ | 147.3 |  |  |  |  |  |  |
Capital expenditures (in millions) |  | 2021 |  | 2020 |  | 2019 |  |  |  |  |  |
HPC |  | $ | 9.3 |  |  | $ | 10.7 |  |  | $ | 11.0 |  |  |  |  |  |  |
GPC |  | 18.6 |  |  | 14.5 |  |  | 16.0 |  |  |  |  |  |  |
H&G |  | 3.6 |  |  | 3.5 |  |  | 5.9 |  |  |  |  |  |  |
Total segment capital expenditures |  | 31.5 |  |  | 28.7 |  |  | 32.9 |  |  |  |  |  |  |
Corporate and shared operations |  | 12.1 |  |  | 15.4 |  |  | 7.5 |  |  |  |  |  |  |
Total capital expenditures |  | $ | 43.6 |  |  | $ | 44.1 |  |  | $ | 40.4 |  |  |  |  |  |  |
|  | SBH |  | SB/RH
Segment total assets (in millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
HPC |  | $ | 879.4 |  |  | $ | 824.6 |  |  | $ | 879.4 |  |  | $ | 824.6 |
GPC |  | 1,456.9 |  |  | 1,200.3 |  |  | 1,456.9 |  |  | 1,200.3 |
H&G |  | 853.1 |  |  | 546.5 |  |  | 853.1 |  |  | 546.5 |
Total segment assets |  | 3,189.4 |  |  | 2,571.4 |  |  | 3,189.4 |  |  | 2,571.4 |
Corporate and shared operations |  | 341.0 |  |  | 742.1 |  |  | 418.3 |  |  | 819.1 |
Total assets |  | $ | 3,530.4 |  |  | $ | 3,313.5 |  |  | $ | 3,607.7 |  |  | $ | 3,390.5 |
Net sales SBH and SB/RH for the years ended September 30, 2021, 2020 and 2019 and long-lived asset information as of September 30, 2021 and 2020 by geographic area are as follows:
Net sales to external parties - Geographic Disclosure (in millions) |  | 2021 |  | 2020 |  | 2019
United States |  | $ | 1,750.8 |  |  | $ | 1,627.4 |  |  | $ | 1,478.8 |
Europe/MEA |  | 877.8 |  |  | 683.9 |  |  | 655.8 |
Latin America |  | 193.4 |  |  | 147.9 |  |  | 157.2 |
Asia-Pacific |  | 112.0 |  |  | 101.8 |  |  | 97.9 |
North America - Other |  | 64.1 |  |  | 61.1 |  |  | 56.7 |
Net sales |  | $ | 2,998.1 |  |  | $ | 2,622.1 |  |  | $ | 2,446.4 |
Long-lived assets - Geographic Disclosure (in millions) |  | 2021 |  | 2020 |  |  |  |
United States |  | $ | 234.3 |  |  | $ | 236.4 |  |  |  |  |
Europe/MEA |  | 64.4 |  |  | 58.3 |  |  |  |  |
Latin America |  | 3.8 |  |  | 3.1 |  |  |  |  |
Asia-Pacific |  | 14.2 |  |  | 15.8 |  |  |  |  |
Total long-lived assets |  | $ | 316.7 |  |  | $ | 313.6 |  |  |  |  |

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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