XML 63 R34.htm IDEA: XBRL DOCUMENT v3.22.2.2
SEGMENT INFORMATION
 12 Months Ended
Sep. 30, 2022
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 global pet care business; (ii) H&G, which consists of the Company’s home and garden, insect control and cleaning products business and (iii) HPC, which consists of the Company’s global 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, 2022, 2021 and 2020 are as follows:
(in millions)202220212020
HPC$1,370.1 $1,260.1 $1,107.6 
GPC1,175.3 1,129.9 962.6 
H&G587.1 608.1 551.9 
Net sales$3,132.5 $2,998.1 $2,622.1 
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 compensation costs consist of costs associated with long-term compensation arrangements that generally consist of non-cash stock based compensation. During the years ended September 30, 2021 and 2020, compensation costs included incentive bridge awards previously issued due to changes in the Company's LTIP that allowed for cash based payment upon employee election but do not quality for share based compensation, which were fully vested in November 2020. See Note 18 - Share Based Compensation for further details;
•Incremental amounts attributable to strategic transactions and business development initiatives including, but not limited to, the acquisition or divestitures of a business, costs to effect and facilitate a transaction, including such cost to integrate or separate the respective business. These amounts are excluded from our performance metrics as they are reflective of incremental investment by the Company towards business development activities, incremental costs attributable to such transactions and are not considered recurring or reflective of the continuing ongoing operations of the consolidated group or segments;
•Incremental amounts realized towards restructuring and optimization projects including, but not limited to, costs towards the development and implementation of strategies to optimize operations and improve efficiency, reduce costs, increase revenues, increase or maintain our current profit margins, including recognition of one-time exit or disposal costs. These amounts are excluded from our ongoing performance metrics as they are reflective of incremental investment by the Company towards significant initiatives controlled by management, incremental costs directly attributable to such initiatives, indirect impact or disruption to operating performance during implementation, and are not considered recurring or reflective of the continuing ongoing operations of the consolidated group or segments;
•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-allocations or absorption of existing continuing operations following the completed sale of the discontinued operations. See Note 3 - Divestitures for further details;
•Non-cash purchase accounting adjustments recognized in earnings from continuing operations subsequent to an acquisition, including, but not limited to, the costs attributable to the step-up in inventory value and the incremental value in operating lease assets with below market rent, among others;
•Non-cash gain from the remeasurement of the contingent consideration liability recognized during the year ended September 30, 2022, associated with the Tristar Business acquisition. See Note 4 - Acquisitions for further details;
•Non-cash asset impairments or write-offs realized and recognized in earnings from continuing operations;
•Gains 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;
•Incremental reserves for non-recurring litigation or environmental remediation activity including the 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 years ended September 30, 2022 and 2021. See Note 20 – Commitments and Contingencies for further detail;
•Early settlement on certain foreign currency cash flow hedges in our EMEA region prior to their stated maturity due to changes in the Company's legal entity organizational structure and forecasted purchasing strategy of HPC finished goods inventory within the region, resulting in the recognition of realized gains during the third quarter ended July 3, 2022, plus the proforma effect of assumed losses following the early settlement date for subsequent settlement periods through the original stated maturities. See Note 14- Derivatives for further details;
•Incremental costs recognized by the HPC segment attributable to the realization of product recalls initiated by the Company during the year ended September 30, 2022. See Note 20 - Commitments and Contingencies 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;
•Other adjustments primarily attributable to (1) costs associated with Salus as they are not considered a components of the continuing commercial products company (2) other key executive severance related costs; (3) asset write-off for exit of certain GPC brands within China during year ended September 30, 2022, and (4) write-off of cost based investment previously held by the GPC segment during the year ended September 30, 2022. (5) expenses and cost recovery for flood damage at the Company's facilities in Middleton, Wisconsin recognized during the years ended September 30, 2020 (6) foreign currency gains and losses attributable to multicurrency loans for the year ended September 30, 2020, 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.
Segment Adjusted EBITDA in relation to the Company’s reportable segments for SBH for the years ended September 30, 2022, 2021, and 2020, is as follows:
SBH (in millions)202220212020
HPC$69.6 $102.6 $92.2 
GPC168.6 212.1 172.0 
H&G86.2 124.0 112.1 
Total Segment Adjusted EBITDA324.4 438.7 376.3 
Corporate41.3 46.9 52.4 
Interest expense99.4 116.5 93.7 
Depreciation49.0 51.9 59.3 
Amortization50.3 65.1 55.3 
Share based compensation10.2 29.4 36.1 
Tristar acquisition and integration24.3 0.1 — 
Rejuvenate acquisition and integration6.8 10.8 — 
Armitage acquisition and integration1.4 10.9 — 
Omega production integration4.6 1.3 — 
HHI divestiture6.3 9.6 — 
HPC separation initiatives19.1 14.2 — 
Coevorden operations divestiture8.8 11.6 5.5 
Fiscal 2022 restructuring9.8 — — 
Global ERP transformation13.1 4.3 — 
GPC distribution center transition35.8 15.2 — 
Global productivity improvement program5.1 21.2 71.1 
Russia closing initiative1.9 — — 
HPC brand portfolio transitions1.3 — — 
Other project costs12.1 7.4 18.1 
Unallocated shared costs27.6 26.9 17.4 
Non-cash purchase accounting adjustments8.3 7.3 — 
Gain from remeasurement of contingent consideration liability(28.5)— — 
Loss on sale of Coevorden operations— — 26.8 
Write-off from impairment of intangible assets— — 24.2 
(Gain) loss on Energizer investment— (6.9)16.8 
Legal and environmental1.5 6.0 — 
Salus CLO debt extinguishment— — (76.2)
Early settlement of foreign currency cash flow hedges(5.1)— — 
HPC product recall5.5 — — 
Salus and other4.8 0.1 0.9 
Loss from operations before income taxes$(90.3)$(11.1)$(25.1)
Segment Adjusted EBITDA in relation to the Company’s reportable segments for SB/RH for the years ended September 30, 2022, 2021, and 2020, is as follows:
SB/RH (in millions)202220212020
HPC$69.6 $102.6 $92.2 
GPC168.6 212.1 172.0 
H&G86.2 124.0 112.1 
Total Segment Adjusted EBITDA324.4 438.7 376.3 
Corporate39.9 44.9 47.5 
Interest expense99.8 116.8 93.2 
Depreciation49.0 51.9 59.3 
Amortization50.3 $65.1 55.3 
Share and incentive based compensation9.1 27.7 34.8 
Tristar acquisition and integration24.3 0.1 — 
Rejuvenate acquisition and integration6.8 10.8 — 
Armitage acquisition and integration1.4 10.9 — 
Omega production integration4.6 1.3 — 
HHI divestiture6.3 9.6 — 
HPC separation initiatives19.1 14.2 — 
Coevorden operations divestiture8.8 11.6 5.5 
Fiscal 2022 restructuring9.8 — — 
Global ERP transformation13.1 4.3 — 
GPC distribution center transition35.8 15.2 — 
Global productivity improvement program5.1 21.2 71.1 
Russia closing initiative1.9 — — 
HPC brand portfolio transitions1.3 — — 
Other project costs12.1 7.4 18.1 
Unallocated shared costs27.6 26.9 17.4 
Non-cash purchase adjustment8.3 7.3 — 
Gain from remeasurement of contingent consideration liability(28.5)— — 
Loss on sale of Coevorden operations— — 26.8 
Write-off from impairment of intangible assets— — 24.2 
(Gain) loss on Energizer investment— (6.9)16.8 
Legal and environmental1.5 6.0 — 
Gain on early settlement of cash flow hedges(5.1)— — 
HPC Product Recall5.5 — — 
Other4.5 0.1 0.2 
Loss from operations before income taxes$(87.9)$(7.7)$(93.9)
Other financial information relating to the segments of SBH and SB/RH are as follows for the years ended September 30, 2022, 2021 and 2020 and as of September 30, 2022 and 2021:
Depreciation and amortization (in millions)
202220212020
HPC$28.7 $44.0 $35.2 
GPC37.4 39.2 44.4 
H&G18.6 19.2 20.4 
Total segments84.7 102.4 100.0 
Corporate and shared operations14.6 14.6 14.6 
Total depreciation and amortization$99.3 $117.0 $114.6 

Capital expenditures (in millions)
202220212020
HPC$11.6 $9.3 $10.7 
GPC17.7 18.6 14.5 
H&G8.2 3.6 3.5 
Total segment capital expenditures37.5 31.5 28.7 
Corporate and shared operations26.5 12.1 15.4 
Total capital expenditures$64.0 $43.6 $44.1 
SBH
SB/RH
Segment total assets (in millions)
2022202120222021
HPC$1,231.0 $879.4 $1,231.0 $879.4 
GPC1,461.8 1,456.9 1,461.8 1,456.9 
H&G846.5 853.1 846.5 853.1 
Total segment assets3,539.3 3,189.4 3,539.3 3,189.4 
Corporate and shared operations419.6 341.0 505.1 418.3 
Total assets$3,958.9 $3,530.4 $4,044.4 $3,607.7 
Net sales SBH and SB/RH for the years ended September 30, 2022, 2021 and 2020 and long-lived asset information as of September 30, 2022 and 2021 by geographic area are as follows:
Net sales to external parties - Geographic Disclosure (in millions)
202220212020
United States$1,901.6 $1,750.8 $1,627.4 
Europe/MEA820.0 877.8 683.9 
Latin America243.3 193.4 147.9 
Asia-Pacific108.5 112.0 101.8 
North America - Other59.1 64.1 61.1 
Net sales$3,132.5 $2,998.1 $2,622.1 
Long-lived assets - Geographic Disclosure (in millions)
20222021
United States$279.7 $234.3 
Europe/MEA52.8 64.4 
Latin America3.2 3.8 
Asia-Pacific10.6 14.2 
Total long-lived assets$346.3 $316.7