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SEGMENT INFORMATION | 6 Months Ended
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Apr. 03, 2022
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Net sales relating to the segments for the three and six month periods ended April 3, 2022 and April 4, 2021 are as follows:
|  | Three Month Periods Ended |  | Six Month Periods Ended
(in millions) |  | April 3, 2022 |  | April 4, 2021 |  | April 3, 2022 |  | April 4, 2021
HPC |  | $ | 316.1 |  |  | $ | 297.9 |  |  | 695.8 |  |  | 676.4 |
GPC |  | 295.1 |  |  | 293.6 |  |  | 597.3 |  |  | 569.1 |
H&G |  | 196.6 |  |  | 168.8 |  |  | 271.9 |  |  | 251.0 |
Net sales |  | $ | 807.8 |  |  | $ | 760.3 |  |  | $ | 1,565.0 |  |  | $ | 1,496.5 |
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 incentive compensation arrangements that generally consist of non-cash, stock-based compensation. During the six month period ended April 4, 2021, 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 qualify for shared-based compensation, which were fully vested in November 2020. See Note 14 – Share Based Compensation for further details; •Restructuring and related charges consist of project costs associated with the restructuring initiatives across the Company's segments. See Note 4 – Restructuring and Related Charges for further details; •Transaction related charges are attributable to costs from qualifying strategic transaction or business opportunities, including an acquisition or divestiture, whether or not consummated, subsequent integration related project costs, divestiture support and incremental separation costs. See Note 1 – Basis of Presentation & Significant Accounting Policies for further details; •Incremental costs towards the SAP S/4 HANA ERP transformation to implement our enterprise-wide operating systems to SAP S/4 HANA on a global basis. This is a multi-year project that includes various costs, including software configuration and implementation costs that would be recognized as capital expenditures or deferred costs in accordance with applicable accounting policies, with certain costs recognized as operating expense associated with project development and management costs, and professional services with business partners engaged towards planning, design and business process review that would not qualify as software implementation costs. The Company has substantially completed the design phase of the project and is currently moving into the build phase; •Unallocated shared costs associated with discontinued operations from certain shared and center-led administrative functions 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 2 – 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 ROU operating lease assets with below market rent, among others; •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 three and six month periods ended April 4, 2021, with such remaining shares sold in January 2021. See Note 12 – 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 six month period ended April 4, 2021 and the subsequent remeasurement during the six month period ended April 3, 2022; •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 the GPC commercial operations and distribution in Europe; and •Other adjustments are primarily attributable to: (1) incremental trade spend reserves realized from the transition and integration of the Rejuvenate business into the H&G segment and the Company's systems and processes during the three and six month periods ended April 3, 2022, (2) incremental fines and penalties realized for delayed shipments attributable to the GPC distribution transition initiative during the three and six month periods ended April 3, 2022, and (3) costs associated with Salus as they are not considered a component of the continuing commercial products company. Segment Adjusted EBITDA for the reportable segments for SBH for the three and six month periods ended April 3, 2022 and April 4, 2021, are as follows:
|  | Three Month Periods Ended |  | Six Month Periods Ended
SBH (in millions) |  | April 3, 2022 |  | April 4, 2021 |  | April 3, 2022 |  | April 4, 2021
HPC |  | $ | 10.6 |  |  | $ | 25.4 |  |  | 38.0 |  |  | 76.3 |
GPC |  | 40.6 |  |  | 55.6 |  |  | 79.3 |  |  | 109.2 |
H&G |  | 37.7 |  |  | 34.8 |  |  | 30.4 |  |  | 45.3 |
Total Segment Adjusted EBITDA |  | 88.9 |  |  | 115.8 |  |  | 147.7 |  |  | 230.8 |
Corporate |  | 9.9 |  |  | 8.3 |  |  | 19.4 |  |  | 17.5 |
Interest expense |  | 24.7 |  |  | 52.8 |  |  | 46.4 |  |  | 76.0 |
Depreciation and amortization |  | 25.7 |  |  | 30.2 |  |  | 51.1 |  |  | 57.2 |
Share and incentive based compensation |  | 6.6 |  |  | 7.2 |  |  | 12.2 |  |  | 14.2 |
Restructuring and related charges |  | 16.4 |  |  | 4.3 |  |  | 33.8 |  |  | 13.3 |
Transaction related charges |  | 20.2 |  |  | 8.2 |  |  | 35.1 |  |  | 27.2 |
Global ERP Transformation |  | 3.2 |  |  | — |  |  | 3.2 |  |  | — |
Unallocated shared costs |  | 6.9 |  |  | 6.7 |  |  | 13.8 |  |  | 13.4 |
Non-cash purchase accounting adjustments |  | 3.5 |  |  | 2.6 |  |  | 3.5 |  |  | 3.4 |
Gain on Energizer investment |  | — |  |  | (0.9) |  |  | — |  |  | (6.9) |
Legal and environmental remediation reserves |  | — |  |  | — |  |  | (0.5) |  |  | 6.0 |
Coevorden tolling related charges |  | 1.5 |  |  | 1.5 |  |  | 3.0 |  |  | 3.1 |
Other |  | 2.2 |  |  | 0.2 |  |  | 4.8 |  |  | 0.1 |
(Loss) income from continuing operations before income taxes |  | $ | (31.9) |  |  | $ | (5.3) |  |  | $ | (78.1) |  |  | $ | 6.3 |
Segment Adjusted EBITDA for reportable segments for SB/RH for the three and six month periods ended April 3, 2022 and April 4, 2021 are as follows:
|  | Three Month Periods Ended |  | Six Month Periods Ended
SB/RH (in millions) |  | April 3, 2022 |  | April 4, 2021 |  | April 3, 2022 |  | April 4, 2021
HPC |  | $ | 10.6 |  |  | $ | 25.4 |  |  | 38.0 |  |  | 76.3 |
GPC |  | 40.6 |  |  | 55.6 |  |  | 79.3 |  |  | 109.2 |
H&G |  | 37.7 |  |  | 34.8 |  |  | 30.4 |  |  | 45.3 |
Total Segment Adjusted EBITDA |  | 88.9 |  |  | 115.8 |  |  | 147.7 |  |  | 230.8 |
Corporate |  | 9.6 |  |  | 8.1 |  |  | 18.9 |  |  | 16.7 |
Interest expense |  | 24.8 |  |  | 52.9 |  |  | 46.7 |  |  | 76.1 |
Depreciation and amortization |  | 25.7 |  |  | 30.2 |  |  | 51.1 |  |  | 57.2 |
Share and incentive based compensation |  | 6.2 |  |  | 6.8 |  |  | 11.8 |  |  | 13.6 |
Restructuring and related charges |  | 16.4 |  |  | 4.3 |  |  | 33.8 |  |  | 13.3 |
Transaction related charges |  | 20.2 |  |  | 8.2 |  |  | 35.1 |  |  | 27.2 |
SAP S/4 HANA ERP Transformation |  | 3.2 |  |  | — |  |  | 3.2 |  |  | — |
Unallocated shared costs |  | 6.9 |  |  | 6.7 |  |  | 13.8 |  |  | 13.4 |
Non-cash purchase accounting adjustments |  | 3.5 |  |  | 2.6 |  |  | 3.5 |  |  | 3.4 |
Gain on Energizer investment |  | — |  |  | (0.9) |  |  | — |  |  | (6.9) |
Legal and environmental remediation reserves |  | — |  |  | — |  |  | (0.5) |  |  | 6.0 |
Coevorden tolling related charges |  | 1.5 |  |  | 1.5 |  |  | 3.0 |  |  | 3.1 |
Other |  | 2.1 |  |  | 0.1 |  |  | 4.4 |  |  | 0.1 |
(Loss) income from continuing operations before income taxes |  | $ | (31.2) |  |  | $ | (4.7) |  |  | $ | (77.1) |  |  | $ | 7.6 |

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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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