XML 45 R29.htm IDEA: XBRL DOCUMENT v3.22.2
SEGMENT INFORMATION
 9 Months Ended
Jul. 03, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Net sales relating to the segments for the three and nine month periods ended July 3, 2022 and July 4, 2021 are as follows:
Three Month Periods EndedNine Month Periods Ended
(in millions)July 3, 2022July 4, 2021July 3, 2022July 4, 2021
HPC$329.3 $274.4 1,025.2 950.8 
GPC290.2 257.3 887.5 826.3 
H&G198.5 212.1 470.3 463.2 
Net sales$818.0 $743.8 $2,383.0 $2,240.3 
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 compensation costs consist of costs associated with long-term incentive compensation arrangements that generally consist of non-cash, stock-based compensation. During the nine month period ended July 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;
•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 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 operating lease assets with below market rent, among others;
•Non-cash gain from the reduction in the contingent consideration liability recognized during the three and nine month periods ended July 3, 2022 associated with the Tristar Business acquisition. See Note 3 - Acquisitions in the Notes to the Condensed Consolidated Financial Statements 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 nine month period ended July 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 nine month period ended July 4, 2021 and the subsequent remeasurement during the nine month period ended July 3, 2022;
•Proforma adjustment for operating losses of the Company's in-country Russia operations that were directly attributable to the Company's closing initiatives in Russia and constraints applied to the in-country commercial operations resulting in a substantial decrease to in-country sales and incremental operating losses being realized;
•Realized gain from early settlement on certain cash flow hedges in our EMEA region prior to their stated maturity during the three and nine month periods ended July 3, 2022 due to change in the Company's legal entity organizational structure and forecasted purchasing strategy of HPC finished goods inventory within the region. See Note 11- Derivatives in Notes to the Condensed Consolidated Financial Statement for further details;
•Other adjustments are primarily attributable to: (1) costs associated with Salus as they are not considered a component of the continuing commercial products company and (2) other key executive severance related costs.
Segment Adjusted EBITDA for the reportable segments for SBH for the three and nine month periods ended July 3, 2022 and July 4, 2021, are as follows:
Three Month Periods EndedNine Month Periods Ended
SBH (in millions)July 3, 2022July 4, 2021July 3, 2022July 4, 2021
HPC$3.6 $11.8 41.6 88.1 
GPC40.9 49.2 120.2 158.5 
H&G42.8 53.4 73.1 98.6 
Total Segment Adjusted EBITDA87.3 114.4 234.9 345.2 
Corporate7.2 15.0 26.5 32.4 
Interest expense26.0 20.4 72.4 96.4 
Depreciation12.3 12.8 36.6 39.2 
Amortization13.1 17.4 39.9 48.2 
Share and incentive based compensation(0.7)7.7 11.4 21.9 
Tristar acquisition and integration5.6 — 20.0 — 
Rejuvenate acquisition and integration— 5.8 7.0 5.8 
Armitage acquisition and integration0.1 1.0 1.4 7.7 
Omega integration0.1 — 1.5 — 
HHI divestiture0.6 — 6.1 — 
HPC separation initiatives10.7 (0.5)15.4 14.2 
Coevorden operations separation1.9 2.9 7.3 7.7 
Fiscal 2022 restructuring8.1 — 8.1 — 
Global ERP transformation3.4 0.9 9.4 1.6 
GPC distribution center transition8.4 7.7 28.3 7.7 
Global productivity improvement program1.2 4.8 5.2 15.7 
HPC brand portfolio transitions0.3 — 0.3 — 
Russia closing initiatives— — 3.6 — 
Other project costs4.1 2.4 10.7 8.1 
Unallocated shared costs7.0 6.7 20.7 20.2 
Non-cash purchase accounting adjustments4.3 1.3 7.8 4.7 
Gain from contingent consideration liability(25.0)— (25.0)— 
Gain on Energizer investment— — — (6.9)
Legal and environmental remediation reserves— — (0.5)6.0 
Proforma in-country Russia operations0.4 — 0.4 — 
Gain on early settlement of cash flow hedges(8.2)— (8.2)— 
Salus and other1.4 — 1.7 0.1 
Income (loss) from continuing operations before income taxes$5.0 $8.1 $(73.1)$14.5 
Segment Adjusted EBITDA for reportable segments for SB/RH for the three and nine month periods ended July 3, 2022 and July 4, 2021 are as follows:
Three Month Periods EndedNine Month Periods Ended
SB/RH (in millions)
July 3, 2022July 4, 2021July 3, 2022July 4, 2021
HPC$3.6 $11.8 41.6 88.1 
GPC40.9 49.2 120.2 158.5 
H&G42.8 53.4 73.1 98.6 
Total Segment Adjusted EBITDA87.3 114.4 234.9 345.2 
Corporate6.7 14.0 25.5 30.8 
Interest expense26.1 20.5 72.7 96.6 
Depreciation12.3 12.8 36.6 39.2 
Amortization13.1 17.4 39.9 48.2 
Share and incentive based compensation(1.1)7.1 10.7 20.7 
Tristar acquisition and integration5.6 — 20.0 — 
Rejuvenate acquisition and integration— 5.8 7.0 5.8 
Armitage acquisition and integration0.1 1.0 1.4 7.7 
Omega integration0.1 — 1.5 — 
HHI divestiture0.6 — 6.1 — 
HPC separation initiatives10.7 (0.5)15.4 14.2 
Coevorden operations separation1.9 2.9 7.3 7.7 
Fiscal 2022 restructuring8.1 — 8.1 — 
Global ERP transformation3.4 0.9 9.4 1.6 
GPC distribution center transition8.4 7.7 28.3 7.7 
Global productivity improvement program1.2 4.8 5.2 15.7 
HPC brand portfolio transitions0.3 — 0.3 — 
Russia in-country closing initiatives— — 3.6 — 
Other project costs4.1 2.4 10.7 8.1 
Unallocated shared costs7.0 6.7 20.7 20.2 
Non-cash purchase accounting adjustments4.3 1.3 7.8 4.7 
Gain from contingent consideration liability(25.0)— (25.0)— 
Gain on Energizer investment— — — (6.9)
Legal and environmental remediation reserves— — (0.5)6.0 
Proforma in-country Russia operations0.4 — 0.4 — 
Gain on early settlement of cash flow hedges(8.2)— (8.2)— 
Other1.5 — 1.4 0.1 
Income (loss) from continuing operations before income taxes$5.7 $9.6 $(71.4)$17.1