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REVENUE RECOGNITION | 9 Months Ended
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Jul. 03, 2022
Revenue from Contract with Customer [Abstract] |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company generates all of its revenue from contracts with customers. The following table disaggregates our revenue for the three and nine month periods ended July 3, 2022 and July 4, 2021, by the Company’s key revenue streams, segments and geographic region (based upon destination):
|  | Three Month Period Ended July 3, 2022 |  | Three Month Period Ended July 4, 2021
(in millions) |  | HPC |  | GPC |  | H&G |  | Total |  | HPC |  | GPC |  | H&G |  | Total
Product Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NA |  | $ | 170.2 |  |  | $ | 191.4 |  |  | $ | 195.6 |  |  | $ | 557.2 |  |  | $ | 111.3 |  |  | $ | 147.8 |  |  | $ | 209.3 |  |  | $ | 468.4 |
EMEA |  | 93.0 |  |  | 81.1 |  |  | — |  |  | 174.1 |  |  | 101.9 |  |  | 91.2 |  |  | — |  |  | 193.1 |
LATAM |  | 47.2 |  |  | 4.6 |  |  | 1.9 |  |  | 53.7 |  |  | 43.9 |  |  | 3.5 |  |  | 1.8 |  |  | 49.2 |
APAC |  | 15.8 |  |  | 9.8 |  |  | — |  |  | 25.6 |  |  | 15.0 |  |  | 10.5 |  |  | — |  |  | 25.5 |
Licensing |  | 2.6 |  |  | 1.9 |  |  | 1.0 |  |  | 5.5 |  |  | 2.3 |  |  | 2.9 |  |  | 1.0 |  |  | 6.2 |
Other |  | 0.5 |  |  | 1.4 |  |  | — |  |  | 1.9 |  |  | — |  |  | 1.4 |  |  | — |  |  | 1.4 |
Total Revenue |  | $ | 329.3 |  |  | $ | 290.2 |  |  | $ | 198.5 |  |  | $ | 818.0 |  |  | $ | 274.4 |  |  | $ | 257.3 |  |  | $ | 212.1 |  |  | $ | 743.8 |
|  | Nine Month Period Ended July 3, 2022 |  | Nine Month Period Ended July 4, 2021
(in millions) |  | HPC |  | GPC |  | H&G |  | Total |  | HPC |  | GPC |  | H&G |  | Total
Product Sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NA |  | $ | 434.3 |  |  | $ | 561.3 |  |  | $ | 462.4 |  |  | $ | 1,458.0 |  |  | $ | 369.3 |  |  | $ | 508.4 |  |  | $ | 456.4 |  |  | $ | 1,334.1 |
EMEA |  | 361.5 |  |  | 270.8 |  |  | — |  |  | 632.3 |  |  | 392.7 |  |  | 266.6 |  |  | — |  |  | 659.3 |
LATAM |  | 167.4 |  |  | 13.8 |  |  | 6.0 |  |  | 187.2 |  |  | 126.9 |  |  | 11.9 |  |  | 5.0 |  |  | 143.8 |
APAC |  | 53.7 |  |  | 29.9 |  |  | — |  |  | 83.6 |  |  | 53.2 |  |  | 28.3 |  |  | — |  |  | 81.5 |
Licensing |  | 7.4 |  |  | 7.0 |  |  | 1.9 |  |  | 16.3 |  |  | 8.7 |  |  | 6.8 |  |  | 1.8 |  |  | 17.3 |
Other |  | 0.9 |  |  | 4.7 |  |  | — |  |  | 5.6 |  |  | — |  |  | 4.3 |  |  | — |  |  | 4.3 |
Total Revenue |  | $ | 1,025.2 |  |  | $ | 887.5 |  |  | $ | 470.3 |  |  | $ | 2,383.0 |  |  | $ | 950.8 |  |  | $ | 826.3 |  |  | $ | 463.2 |  |  | $ | 2,240.3 |
The Company offers standard warranty coverage on certain products that it sells and accounts for this as an assurance warranty. As such, no transaction price is allocated to the standard warranty, and the Company records a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. See Note 17 - Commitments and Contingencies for further information regarding the Company’s standard warranties. With the acquisition of the Tristar Business, the Company also sells extended warranty coverage for certain Tristar products that are sold directly to consumers, which it accounts for as service warranties. In most cases, the extended warranty is sold as a separate contract and separate performance obligation that is distinct from the product. The extended warranty transaction revenue is initially recognized as deferred revenue and amortized on a straight-line basis to Net Sales over the life of the contracts following the standard warranty period. Revenue attributable to extended warranties was first recognized with the acquisition of the Tristar Business on February 18, 2022. See Note 3 - Acquisitions for more details. As of July 3, 2022, the Company had $1.2 million service warranty revenue deferred and included in Other Current Liabilities on the Condensed Consolidated Statements of Financial Position. The Company has a broad range of customers including many large mass retail customers. During the three month period ended July 3, 2022 there were two large retail customers each exceeding 10% of consolidated Net Sales and representing 34.3% of consolidated Net Sales. During the three month period ended July 4, 2021 there was one large retail customer exceeding 10% of consolidated Net Sales and representing 20.4% of consolidated Net Sales. During the nine month periods ended July 3, 2022 and July 4, 2021, there were two large retail customers each exceeding 10% of consolidated Net Sales and representing 33.3% and 31.4% of consolidated Net Sales, respectively. A significant portion of our product sales from our HPC segment, primarily in the NA and LATAM regions, are subject to the continued use and access to the Black & Decker ("B&D") brand through a license agreement with Stanley Black and Decker. The license agreement was renewed through June 30, 2025, including a sell-off period from April 1, 2025 to June 30, 2025 whereby the Company can continue to sell and distribute but no longer produce products subject to the license agreement. Net sales from B&D product sales consist of $102.4 million and $91.9 million for the three month periods ended July 3, 2022 and July 4, 2021, respectively. Net sales from B&D product sales consist of $332.4 million and $297.2 million for the nine month periods ended July 3, 2022 and July 4, 2021, respectively. All other significant brands and tradenames used in the Company’s commercial operations are directly owned and not subject to further restrictions. In the normal course of business, the Company may allow customers to return product or take credit for product returns per the provisions in a sale agreement. Estimated product returns are recorded as a reduction in reported revenues at the time of sale based upon historical product return experience, adjusted for known trends, to arrive at the amount of consideration expected to be received. The allowance for product returns as of July 3, 2022, and September 30, 2021 was $20.2 million and $11.8 million, respectively. The increase in allowance for product returns is due to the acquisition of the Tristar Business on February 18, 2022. See Note 3 - Acquisitions for further discussion on the Tristar Business acquisition.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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