XML 81 R52.htm IDEA: XBRL DOCUMENT
v3.22.2.2

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Expense | Income tax expense was calculated based upon the following components of income (loss) from operations before income taxes for the years ended September 30, 2022, 2021 and 2020:
|  | SBH |  | SB/RH
(in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
United States |  | $ | (263.0) |  |  | $ | (147.2) |  |  | $ | (42.0) |  |  | $ | (260.6) |  |  | $ | (143.8) |  |  | $ | (110.8) |
Outside the United States |  | 172.7 |  |  | 136.1 |  |  | 16.9 |  |  | 172.7 |  |  | 136.1 |  |  | 16.9 |
Loss from continuing operations before income taxes |  | $ | (90.3) |  |  | $ | (11.1) |  |  | $ | (25.1) |  |  | $ | (87.9) |  |  | $ | (7.7) |  |  | $ | (93.9) |
Schedule of Components of Income Tax Expense | The components of income tax expense for the years ended September 30, 2022, 2021 and 2020 are as follows:
|  | SBH |  | SB/RH
(in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
Current tax expense: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 7.7 |  |  | $ | 3.0 |  |  | $ | 0.3 |  |  | $ | 7.7 |  |  | $ | 3.0 |  |  | $ | 0.3 |
Foreign |  | 24.7 |  |  | 32.6 |  |  | 2.2 |  |  | 24.7 |  |  | 32.6 |  |  | 2.2 |
State and local |  | (1.1) |  |  | 2.4 |  |  | 0.2 |  |  | (1.1) |  |  | 2.4 |  |  | 0.2 |
Total current tax expense |  | 31.3 |  |  | 38.0 |  |  | 2.7 |  |  | 31.3 |  |  | 38.0 |  |  | 2.7 |
Deferred tax (benefit) expense: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | (26.5) |  |  | (64.8) |  |  | 9.1 |  |  | (25.8) |  |  | (63.4) |  |  | (5.1) |
Foreign |  | (1.2) |  |  | 5.9 |  |  | 1.1 |  |  | (1.2) |  |  | 5.9 |  |  | 1.1 |
State and local |  | (16.9) |  |  | (5.5) |  |  | 14.4 |  |  | (17.2) |  |  | (5.5) |  |  | 15.8 |
Total deferred tax (benefit) expense |  | (44.6) |  |  | (64.4) |  |  | 24.6 |  |  | (44.2) |  |  | (63.0) |  |  | 11.8 |
Income tax (benefit) expense |  | $ | (13.3) |  |  | $ | (26.4) |  |  | $ | 27.3 |  |  | $ | (12.9) |  |  | $ | (25.0) |  |  | $ | 14.5 |
Schedule of Reconciliation of Income Tax Expense | The following reconciles the total income tax expense, based on the U.S. Federal statutory income tax rate of 21% with the Company’s recognized income tax expense:
|  | SBH |  | SB/RH
(in millions) |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
U.S. Statutory federal income tax benefit |  | $ | (19.0) |  |  | $ | (2.3) |  |  | $ | (5.3) |  |  | $ | (18.5) |  |  | $ | (1.6) |  |  | $ | (19.7) |
Permanent items |  | (1.7) |  |  | 13.9 |  |  | 13.6 |  |  | (1.7) |  |  | 13.9 |  |  | 13.6 |
Goodwill impairment |  | — |  |  | — |  |  | 2.8 |  |  | — |  |  | — |  |  | 2.8 |
Foreign statutory rate vs. U.S. statutory rate |  | (4.7) |  |  | (6.2) |  |  | (13.8) |  |  | (4.7) |  |  | (6.2) |  |  | (13.8) |
State income taxes, net of federal effect |  | (8.3) |  |  | (8.7) |  |  | (0.6) |  |  | (8.6) |  |  | (8.7) |  |  | (3.1) |
State effective rate change |  | 1.2 |  |  | 2.6 |  |  | 7.2 |  |  | 1.2 |  |  | 2.6 |  |  | 7.8 |
UK effective rate change |  | — |  |  | 8.2 |  |  | — |  |  | — |  |  | 8.2 |  |  | — |
GILTI |  | 16.5 |  |  | 4.9 |  |  | 3.7 |  |  | 16.5 |  |  | 4.9 |  |  | 3.7 |
GILTI impact of retroactive law changes |  | (3.2) |  |  | (18.1) |  |  | — |  |  | (3.2) |  |  | (18.1) |  |  | — |
Residual tax on foreign earnings |  | 4.8 |  |  | 2.6 |  |  | 6.0 |  |  | 4.8 |  |  | 2.6 |  |  | 6.0 |
Change in valuation allowance |  | 3.6 |  |  | (27.1) |  |  | 9.9 |  |  | 4.3 |  |  | (27.1) |  |  | 9.8 |
Unrecognized tax expense (benefit) |  | 2.2 |  |  | 0.2 |  |  | (8.5) |  |  | 2.2 |  |  | 0.2 |  |  | (8.5) |
Share based compensation adjustments |  | (5.6) |  |  | (0.7) |  |  | 0.1 |  |  | (5.3) |  |  | 0.1 |  |  | 0.5 |
Research and development tax credits |  | (1.9) |  |  | (2.4) |  |  | (1.6) |  |  | (1.9) |  |  | (2.4) |  |  | (1.6) |
Foreign rate differential on intercompany transfer of intangibles |  | — |  |  | — |  |  | 4.6 |  |  | — |  |  | — |  |  | 4.6 |
Partnership outside basis adjustment |  | 1.2 |  |  | 5.5 |  |  | 5.9 |  |  | 1.2 |  |  | 5.5 |  |  | 5.9 |
Return to provision adjustments and other, net |  | 1.6 |  |  | 1.2 |  |  | 3.3 |  |  | 0.8 |  |  | 1.1 |  |  | 6.5 |
Income tax (benefit) expense |  | $ | (13.3) |  |  | $ | (26.4) |  |  | $ | 27.3 |  |  | $ | (12.9) |  |  | $ | (25.0) |  |  | $ | 14.5 |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of September 30, 2022 and 2021 are as follows:
|  | SBH |  | SB/RH
(in millions) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Deferred tax assets |  |  |  |  |  |  |  |
Employee benefits |  | $ | 25.9 |  |  | $ | 36.7 |  |  | $ | 25.9 |  |  | $ | 36.6 |
Inventories and receivables |  | 42.0 |  |  | 25.1 |  |  | 42.0 |  |  | 25.1 |
Marketing and promotional accruals |  | 16.0 |  |  | 17.0 |  |  | 16.0 |  |  | 17.0 |
Property, plant and equipment |  | 0.9 |  |  | 0.6 |  |  | 0.9 |  |  | 0.6 |
Unrealized losses |  | 31.9 |  |  | 19.1 |  |  | 31.9 |  |  | 19.1 |
Intangibles |  | 11.1 |  |  | 10.0 |  |  | 11.1 |  |  | 10.0 |
Operating lease liabilities |  | 23.0 |  |  | 25.9 |  |  | 23.0 |  |  | 25.9 |
Net operating loss and other carry forwards |  | 577.4 |  |  | 563.5 |  |  | 255.6 |  |  | 245.5 |
Other |  | 29.4 |  |  | 36.1 |  |  | 27.5 |  |  | 32.9 |
Total deferred tax assets |  | 757.6 |  |  | 734.0 |  |  | 433.9 |  |  | 412.7 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Property, plant and equipment |  | 18.1 |  |  | 9.4 |  |  | 18.1 |  |  | 9.4 |
Unrealized gains |  | 24.4 |  |  | 10.5 |  |  | 24.4 |  |  | 10.5 |
Intangibles |  | 303.3 |  |  | 287.9 |  |  | 303.3 |  |  | 287.9 |
Operating lease assets |  | 22.4 |  |  | 23.5 |  |  | 22.4 |  |  | 23.5 |
Investment in partnership |  | 73.7 |  |  | 69.6 |  |  | 73.4 |  |  | 69.3 |
Taxes on unremitted foreign earnings |  | 2.0 |  |  | 1.8 |  |  | 2.0 |  |  | 1.8 |
Other |  | 12.0 |  |  | 24.1 |  |  | 12.0 |  |  | 24.0 |
Total deferred tax liabilities |  | 455.9 |  |  | 426.8 |  |  | 455.6 |  |  | 426.4 |
Net deferred tax liabilities |  | 301.7 |  |  | 307.2 |  |  | (21.7) |  |  | (13.7) |
Valuation allowance |  | (337.4) |  |  | (349.4) |  |  | (233.7) |  |  | (245.1) |
Net deferred tax liabilities, net valuation allowance |  | $ | (35.7) |  |  | $ | (42.2) |  |  | $ | (255.4) |  |  | $ | (258.8) |
Reported as: |  |  |  |  |  |  |  |
Deferred charges and other |  | $ | 24.4 |  |  | $ | 17.3 |  |  | $ | 23.9 |  |  | $ | 13.6 |
Deferred taxes (noncurrent liability) |  | 60.1 |  |  | 59.5 |  |  | 279.3 |  |  | 272.4 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the changes to the amount of unrecognized tax benefits for the years ended September 30, 2022, 2021 and 2020:
(in millions) |  | 2022 |  | 2021 |  | 2020
Unrecognized tax benefits, beginning of year |  | $ | 18.0 |  |  | $ | 13.8 |  |  | $ | 20.7 |
Gross increase – tax positions in prior period |  | 84.4 |  |  | 4.1 |  |  | 1.0 |
Gross decrease – tax positions in prior period |  | (2.9) |  |  | (0.2) |  |  | (4.4) |
Gross increase – tax positions in current period |  | 1.7 |  |  | 1.2 |  |  | 2.4 |
Settlements |  | — |  |  | (0.2) |  |  | (1.6) |
Lapse of statutes of limitations |  | (0.3) |  |  | (0.7) |  |  | (4.3) |
Unrecognized tax benefits, end of year |  | $ | 100.9 |  |  | $ | 18.0 |  |  | $ | 13.8 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration