XML 46 R26.htm IDEA: XBRL DOCUMENT v3.21.1
Segment Information
 6 Months Ended
Apr. 04, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Net sales relating to the segments for the three and six month periods ended April 4, 2021 and March 29, 2020 are as follows:
Three Month Periods EndedSix Month Periods Ended
(in millions)April 4, 2021March 29, 2020April 4, 2021March 29, 2020
HHI$389.5 $329.1 $798.2 $626.8 
HPC297.9 232.7 676.4 554.8 
GPC293.6 236.9 569.1 442.7 
H&G168.8 139.1 251.0 185.0 
Net sales$1,149.8 $937.8 $2,294.7 $1,809.3 
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 six month period ended April 4, 2021 and three and six month periods ended March 29, 2020, other incentive compensation includes certain incentive bridge awards issued due to changes in the Company’s LTIP that allow for cash based payment upon employee election but do not qualify for shared-based compensation. All bridge awards fully vested in November 2020. See Note 16 - Share Based Compensation in the Notes to the Condensed Consolidated Financial Statements, included elsewhere in this Quarterly Report, for further details;
•Restructuring and related charges, which consist of project costs associated with the restructuring initiatives across the Company's segments. See Note 4 - Restructuring and Related Charges in the Notes to the Condensed Consolidated Financial Statements, included elsewhere in this Quarterly Report, 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, including development of transferred shared service operations, platforms and personnel transferred and exiting of transition service arrangements (TSAs) and reverse TSAs. See Note 1 – Basis of Presentation & Significant Accounting Policies in the Notes to the Condensed Consolidated Financial Statements, included elsewhere in this Quarterly Report, for further details;
•Gains and losses attributable to the Company’s investment in Energizer common stock. During the three month period ended April 4, 2021, the Company sold its remaining shares in Energizer common stock. See Note 13 – Fair Value of Financial Instruments in the Notes to the Condensed Consolidated Financial Statements, included elsewhere in this Quarterly Report, for further details;
•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);
•Other adjustments primarily consisting of costs attributable to (1) proposed settlement on outstanding litigation matters at our H&G division attributable to significant and unusual non-recurring claims with no previous history or precedent realized during the six month period ended April 4, 2021; (2) legal and litigation costs associated with Salus during the three and six month periods ended April 4, 2021 and March 29, 2020 as they are not considered a component of the continuing commercial products company; (3) foreign currency attributable to multicurrency loans for the three and six month periods ended March 29, 2020, 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 divestitures; (4) expenses and cost recovery for flood damage at Company facilities in Middleton, Wisconsin during the three and six month periods ended March 29, 2020 and (5) incremental costs for separation of a key executive during the three and six month periods ended March 29, 2020;
Segment Adjusted EBITDA for the reportable segments for SBH for the three and six month periods ended April 4, 2021 and March 29, 2020, are as follows:
Three Month Periods EndedSix Month Periods Ended
SBH (in millions)April 4, 2021March 29, 2020April 4, 2021March 29, 2020
HHI$73.4 $69.5 $171.6 $112.3 
HPC25.4 8.0 76.3 44.4 
GPC55.6 40.0 109.2 71.5 
H&G34.8 28.4 45.3 25.1 
Total Segment Adjusted EBITDA189.2 145.9 402.4 253.3 
Corporate8.3 5.5 17.5 10.8 
Interest expense65.5 35.5 102.2 70.4 
Depreciation and amortization38.7 36.4 74.4 78.0 
Share and incentive based compensation8.5 14.6 16.7 29.1 
Restructuring and related charges4.1 21.9 13.3 49.4 
Transaction related charges9.7 7.2 30.3 11.3 
(Gain) loss on Energizer investment(0.9)106.8 (6.9)68.3 
(Gain) loss on assets held for sale— (7.0)— 25.7 
Write-off from impairment of intangible assets— — — 24.2 
Inventory acquisition step-up2.6 — 3.4 — 
Other0.2 3.2 6.0 1.3 
Income (loss) from operations before income taxes$52.5 $(78.2)$145.5 $(115.2)
Segment Adjusted EBITDA for reportable segments for SB/RH for the three and six month periods ended April 4, 2021 and March 29, 2020 are as follows:
Three Month Periods EndedSix Month Periods Ended
SB/RH (in millions)
April 4, 2021March 29, 2020April 4, 2021March 29, 2020
HHI$73.4 $69.5 $171.6 $112.3 
HPC25.4 8.0 76.3 44.4 
GPC55.6 40.0 109.2 71.5 
H&G34.8 28.4 45.3 25.1 
Total Segment Adjusted EBITDA189.2 145.9 402.4 253.3 
Corporate8.1 2.3 16.7 7.2 
Interest expense65.6 35.3 102.4 70.0 
Depreciation and amortization38.7 36.4 74.4 78.0 
Share and incentive based compensation8.0 14.1 16.1 28.5 
Restructuring and related charges4.1 21.9 13.3 49.4 
Transaction related charges9.7 7.2 30.3 11.3 
(Gain) loss on Energizer investment(0.9)106.8 (6.9)68.3 
(Gain) loss on assets held for sale— (7.0)— 25.7 
Write-off from impairment of intangible assets— — — 24.2 
Inventory acquisition step-up2.6 — 3.4 — 
Other0.1 3.0 5.9 0.8 
Income (loss) from operations before income taxes$53.2 $(74.1)$146.8 $(110.1)