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SEGMENT INFORMATION | 9 Months Ended
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Jul. 02, 2023
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Net sales relating to the segments for the three and nine month periods ended July 2, 2023 and July 3, 2022, are as follows:
|  | Three Month Periods Ended |  | Nine Month Periods Ended
(in millions) |  | July 2, 2023 |  | July 3, 2022 |  | July 2, 2023 |  | July 3, 2022
GPC |  | $ | 272.3 |  |  | $ | 290.2 |  |  | $ | 846.5 |  |  | $ | 887.5 |
H&G |  | 186.6 |  |  | 198.5 |  |  | 411.3 |  |  | 470.3 |
HPC |  | 276.6 |  |  | 329.3 |  |  | 920.3 |  |  | 1,025.2 |
Net sales |  | $ | 735.5 |  |  | $ | 818.0 |  |  | $ | 2,178.1 |  |  | $ | 2,383.0 |
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: •Share based compensation costs consist of costs associated with long-term incentive compensation arrangements that generally consist of non-cash, stock-based compensation. See Note 13 – 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 associated with the Tristar Business acquisition in the prior year; •Non-cash asset impairments or write-offs realized and recognized in earnings from continuing operations, including impairments from property, plant and equipment, operating and finance leases, and goodwill and other intangible assets. See Note 7 - Property Plant and Equipment and Note 8 - Goodwill and Intangible Assets for further details; •Impact from the early settlement of foreign currency cash flow hedges in the prior year, resulting in subsequent assumed losses at the original stated maturities of foreign currency cash flow hedges in our EMEA region that were settled early in the prior year 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 excluded gains in the prior year intended to mitigate costs through the year ending September 30, 2023; •Incremental costs recognized by the HPC segment attributable to the realization of product recalls initiated in the prior year. See Note 16 - Commitments and Contingencies 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 and HPC segments attributable to significant and unusual nonrecurring matters with no previous history or precedent and any subsequent changes in estimate or remeasurement realized upon settlement; and •Other adjustments are primarily attributable to: (1) costs associated with Salus as they are not considered a component of the continuing commercial products company; (2) key executive severance related costs; and (3) insurable losses associated with hurricane damages at a key supplier of our Glofish business and loss realized from misapplied funds during the three and nine month periods ended July 2, 2023. Segment Adjusted EBITDA for the reportable segments for SBH for the three and nine month periods ended July 2, 2023 and July 3, 2022, are as follows:
|  | Three Month Periods Ended |  | Nine Month Periods Ended
SBH (in millions) |  | July 2, 2023 |  | July 3, 2022 |  | July 2, 2023 |  | July 3, 2022
GPC |  | $ | 53.6 |  |  | $ | 40.9 |  |  | $ | 137.1 |  |  | $ | 120.2 |
H&G |  | 38.6 |  |  | 42.8 |  |  | 51.4 |  |  | 73.1 |
HPC |  | 11.4 |  |  | 3.6 |  |  | 22.7 |  |  | 41.6 |
Total segment adjusted EBITDA |  | 103.6 |  |  | 87.3 |  |  | 211.2 |  |  | 234.9 |
Corporate |  | 5.1 |  |  | 7.2 |  |  | 21.9 |  |  | 26.5 |
Interest expense |  | 38.9 |  |  | 26.0 |  |  | 103.9 |  |  | 72.4 |
Depreciation |  | 12.1 |  |  | 12.3 |  |  | 36.2 |  |  | 36.6 |
Amortization |  | 10.5 |  |  | 13.1 |  |  | 31.4 |  |  | 39.9 |
Share and incentive based compensation |  | 4.8 |  |  | (0.7) |  |  | 12.5 |  |  | 11.4 |
Tristar acquisition and integration |  | 1.0 |  |  | 5.6 |  |  | 10.7 |  |  | 20.0 |
HHI divestiture |  | 4.0 |  |  | 0.6 |  |  | 6.9 |  |  | 6.1 |
HPC separation initiatives |  | 0.5 |  |  | 10.7 |  |  | 4.0 |  |  | 15.4 |
Coevorden operations separation |  | — |  |  | 1.9 |  |  | 2.7 |  |  | 7.3 |
Rejuvenate integration |  | — |  |  | — |  |  | — |  |  | 7.0 |
Armitage integration |  | — |  |  | 0.1 |  |  | — |  |  | 1.4 |
Omega integration |  | — |  |  | 0.1 |  |  | — |  |  | 1.5 |
Fiscal 2023 restructuring |  | 0.9 |  |  | — |  |  | 5.3 |  |  | — |
Fiscal 2022 restructuring |  | — |  |  | 8.1 |  |  | 0.7 |  |  | 8.1 |
Russia closing initiatives |  | 0.2 |  |  | 0.4 |  |  | 2.9 |  |  | 4.0 |
Global ERP transformation |  | 3.7 |  |  | 3.4 |  |  | 8.5 |  |  | 9.4 |
HPC brand portfolio transitions |  | 0.7 |  |  | 0.3 |  |  | 2.1 |  |  | 0.3 |
GPC distribution center transition |  | — |  |  | 8.4 |  |  | — |  |  | 28.3 |
Global productivity improvement program |  | — |  |  | 1.2 |  |  | — |  |  | 5.2 |
Other project costs |  | 1.2 |  |  | 4.1 |  |  | 8.9 |  |  | 10.7 |
Unallocated shared costs |  | 5.3 |  |  | 7.0 |  |  | 18.1 |  |  | 20.7 |
Non-cash purchase accounting adjustments |  | 0.5 |  |  | 4.3 |  |  | 1.4 |  |  | 7.8 |
Gain from remeasurement of contingent consideration liability |  | — |  |  | (25.0) |  |  | (1.5) |  |  | (25.0) |
Impairment of equipment and operating lease assets |  | 3.6 |  |  | — |  |  | 8.1 |  |  | — |
Impairment of goodwill |  | 111.1 |  |  | — |  |  | 111.1 |  |  | — |
Impairment of intangible assets |  | 53.7 |  |  | — |  |  | 120.7 |  |  | — |
Early settlement of foreign currency cash flow hedges |  | 0.7 |  |  | (8.2) |  |  | 4.6 |  |  | (8.2) |
Legal and environmental |  | 1.5 |  |  | — |  |  | 1.5 |  |  | (0.5) |
HPC product recall |  | 1.9 |  |  | — |  |  | 3.8 |  |  | — |
Salus and other |  | — |  |  | 1.4 |  |  | 5.0 |  |  | 1.7 |
(Loss) income from continuing operations before income taxes |  | $ | (158.3) |  |  | $ | 5.0 |  |  | $ | (320.2) |  |  | $ | (73.1) |
Segment Adjusted EBITDA for reportable segments for SB/RH for the three and nine month periods ended July 2, 2023 and July 3, 2022, are as follows:
|  | Three Month Periods Ended |  | Nine Month Periods Ended
SB/RH (in millions) |  | July 2, 2023 |  | July 3, 2022 |  | July 2, 2023 |  | July 3, 2022
GPC |  | $ | 53.6 |  |  | $ | 40.9 |  |  | $ | 137.1 |  |  | $ | 120.2 |
H&G |  | 38.6 |  |  | 42.8 |  |  | 51.4 |  |  | 73.1 |
HPC |  | 11.4 |  |  | 3.6 |  |  | 22.7 |  |  | 41.6 |
Total segment adjusted EBITDA |  | 103.6 |  |  | 87.3 |  |  | 211.2 |  |  | 234.9 |
Corporate |  | 4.8 |  |  | 6.7 |  |  | 21.5 |  |  | 25.5 |
Interest expense |  | 38.2 |  |  | 26.1 |  |  | 103.3 |  |  | 72.7 |
Depreciation |  | 12.1 |  |  | 12.3 |  |  | 36.2 |  |  | 36.6 |
Amortization |  | 10.5 |  |  | 13.1 |  |  | 31.4 |  |  | 39.9 |
Share and incentive based compensation |  | 4.3 |  |  | (1.1) |  |  | 11.4 |  |  | 10.7 |
Tristar acquisition and integration |  | 1.0 |  |  | 5.6 |  |  | 10.7 |  |  | 20.0 |
HHI divestiture |  | 4.0 |  |  | 0.6 |  |  | 6.9 |  |  | 6.1 |
HPC separation initiatives |  | 0.5 |  |  | 10.7 |  |  | 4.0 |  |  | 15.4 |
Coevorden operations separation |  | — |  |  | 1.9 |  |  | 2.7 |  |  | 7.3 |
Rejuvenate integration |  | — |  |  | — |  |  | — |  |  | 7.0 |
Armitage integration |  | — |  |  | 0.1 |  |  | — |  |  | 1.4 |
Omega integration |  | — |  |  | 0.1 |  |  | — |  |  | 1.5 |
Fiscal 2023 restructuring |  | 0.9 |  |  | — |  |  | 5.3 |  |  | — |
Fiscal 2022 restructuring |  | — |  |  | 8.1 |  |  | 0.7 |  |  | 8.1 |
Russia closing initiatives |  | 0.2 |  |  | 0.4 |  |  | 2.9 |  |  | 4.0 |
Global ERP transformation |  | 3.7 |  |  | 3.4 |  |  | 8.5 |  |  | 9.4 |
HPC brand portfolio transitions |  | 0.7 |  |  | 0.3 |  |  | 2.1 |  |  | 0.3 |
GPC distribution center transition |  | — |  |  | 8.4 |  |  | — |  |  | 28.3 |
Global productivity improvement program |  | — |  |  | 1.2 |  |  | — |  |  | 5.2 |
Other project costs |  | 1.2 |  |  | 4.1 |  |  | 8.9 |  |  | 10.7 |
Unallocated shared costs |  | 5.3 |  |  | 7.0 |  |  | 18.1 |  |  | 20.7 |
Non-cash purchase accounting adjustments |  | 0.5 |  |  | 4.3 |  |  | 1.4 |  |  | 7.8 |
Gain from remeasurement of contingent consideration liability |  | — |  |  | (25.0) |  |  | (1.5) |  |  | (25.0) |
Impairment of equipment and operating lease assets |  | 3.6 |  |  | — |  |  | 8.1 |  |  | — |
Impairment of goodwill |  | 111.1 |  |  | — |  |  | 111.1 |  |  | — |
Impairment of intangible assets |  | 53.7 |  |  | — |  |  | 120.7 |  |  | — |
Early settlement of foreign currency cash flow hedges |  | 0.7 |  |  | (8.2) |  |  | 4.6 |  |  | (8.2) |
Legal and environmental |  | 1.5 |  |  | — |  |  | 1.5 |  |  | (0.5) |
HPC product recall |  | 1.9 |  |  | — |  |  | 3.8 |  |  | — |
Other |  | — |  |  | 1.5 |  |  | 5.0 |  |  | 1.4 |
(Loss) income from continuing operations before income taxes |  | $ | (156.8) |  |  | $ | 5.7 |  |  | $ | (318.1) |  |  | $ | (71.4) |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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