Fair Value of Financial Instruments

6 Months Ended

Apr. 04, 2021

The Company has not changed the valuation techniques used in measuring the fair value of any financial assets and liabilities during the year. The carrying value and estimated fair value of financial and derivative instruments as of April 4, 2021 and September 30, 2020 according to the fair value hierarchy are as follows.


	April 4, 2021										September 30, 2020
(in millions)	Level 1		Level 2		Level 3		Fair Value		Carrying Amount		Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Investments	$	—	$	—	$	—	$	—	$	—	$	66.9	$	—	$	—	$	66.9	$	—
Derivative Assets	—		5.8		—		5.8		—		—		1.2		—		1.2		—
Derivative Liabilities	—		9.8		—		9.8		—		—		14.2		—		14.2		—
Debt - SBH	—		2,665.5		—		2,665.5		2,570.2		—		2,595.4		—		2,595.4		2,476.3
Debt - SB/RH	—		2,665.5		—		2,665.5		2,570.2		—		2,595.4		—		2,595.4		2,476.3

Investments consist of our investment in Energizer common stock, which is valued at quoted market prices for identical instruments in an active market. Unrealized income (loss) from changes in fair value, realized income (loss) from sale of equity investments, plus dividend income from equity investments, are recognized as components of Other Non-Operating Income, Net on the Condensed Consolidated Statements of Income. During the three and six month periods ended April 4, 2021, the Company sold 0.3 million and 1.7 million shares of Energizer common stock, respectively, for proceeds of $12.6 million and $73.1 million, respectively. During the three and six month periods ended March 29, 2020, the Company sold 1.0 million shares of Energizer common stock for proceeds of $28.6 million. As of April 4, 2021, the company held no shares of Energizer common stock.

The following is a summary of income from equity investments recognized as a component of Other Non-Operating Income in the Company's Condensed Consolidated Statements of Income:


	Three Month Periods Ended				Six Month Periods Ended
(in millions)	April 4, 2021		March 29, 2020		April 4, 2021		March 29, 2020
Unrealized loss on equity investments held	$	—	$	(84.5)	$	—	$	(53.3)
Realized gain (loss) on equity investments sold	0.9		(22.3)		6.9		(15.0)
Gain (loss) on equity investments	0.9		(106.8)		6.9		(68.3)
Dividend income from equity investments	—		1.6		0.2		3.2
Gain (loss) from equity investments	$	0.9	$	(105.2)	$	7.1	$	(65.1)

The fair value measurements of the Company’s debt represent non-active market exchanged traded securities which are valued at quoted input prices that are directly observable or indirectly observable through corroboration with observable market data. See Note 10 – Debt for additional detail on outstanding debt of SBH and SB/RH. See Note 12 – Derivatives for additional detail on derivative assets and liabilities.

The carrying value of cash and cash equivalents, receivables, accounts payable and short term debt approximate fair value based on the short-term nature of these assets and liabilities. Goodwill, intangible assets and other long-lived assets are tested annually or more frequently if an event occurs that indicates an impairment loss may have been incurred using fair value measurements with unobservable inputs (Level 3).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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