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SEGMENT INFORMATION | 12 Months Ended
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Sep. 30, 2024
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, allocating capital and resources amongst the operations, 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. See Note 1 - Description of Business for further details. Net sales consists of revenue generated by contracts with external customers. The segments do not have significant or material intrasegment revenues. Net sales relating to the segments for the years ended September 30, 2024, 2023 and 2022 are as follows. See Note 5 - Revenue Recognition for revenue from product sales, licensing and service and other revenue streams, by segment.
(in millions) |  | 2024 |  | 2023 |  | 2022
GPC |  | $ | 1,151.5 |  |  | $ | 1,139.0 |  |  | $ | 1,175.3 |
H&G |  | 578.6 |  |  | 536.5 |  |  | 587.1 |
HPC |  | 1,233.8 |  |  | 1,243.3 |  |  | 1,370.1 |
Net sales |  | $ | 2,963.9 |  |  | $ | 2,918.8 |  |  | $ | 3,132.5 |
The Chief Operating Decision Maker of the Company uses Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) 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 also excludes certain non-cash adjustments including share based compensation (see Note 18 - Share Based Compensation for further detail); impairment charges on property, plant and equipment, operating and finance lease assets, and goodwill and other intangible assets (See Note 9 - Property, Plant and Equipment, Note 12 - Leases, and Note 10 - Goodwill and Intangible Assets and for further detail, respectively); gain or loss from the early extinguishment of debt through the repurchase or early redemption of outstanding debt (See Note 11 - Debt for further detail); and purchase accounting adjustments recognized in income subsequent to an acquisition attributable to the step in value on assets acquired, including, but not limited to, inventory or operating lease assets. Additionally, the Company will further recognize adjustments from Adjusted EBITDA for other costs, gains and losses that are considered significant, non-recurring, or otherwise not supporting the continuing operations and revenue generating activity of the segment or Company, including but not limited to, exit and disposal activities (See Note 4 - Exit and Disposal Activities for further detail), or incremental costs associated with strategic transactions, restructuring and optimization initiatives such as the acquisition or divestiture of a business, related integration or separation costs, or the development and implementation of strategies to optimize or restructure the Company and its operations. The segments are supported through center-led corporate shared service operations which are enabling functions to the segments consisting of finance and accounting, information technology, legal and human resource, supply chain and commercial operations. Costs attributable to such shared service operations are allocated to the segments based upon various metrics which are considered representative to the use and support provided by such enabling functions to each of the segments. The Company has not included the results from discontinued operations within the following segment reporting when the discontinued operations were previously reported as a segment in any prior period. Indirect costs from shared enabling functions supporting discontinued operations during the fiscal periods of the Company’s ownership of the divested segment, prior to the completion of the divestiture, are excluded from the reporting of income (loss) from discontinued operations and included within the income (loss) for continuing operations as they are not direct costs of the disposal group. The indirect costs are considered unallocated shared service costs and not allocated across the remaining segments of the Company during the respective periods. See Note 3 - Divestitures for further discussion. The Company also incurs costs attributable to corporate functions such as tax, treasury, internal audit, corporate finance, legal and corporate executive and board related governance costs which are considered corporate costs of the Company and not allocated to the segments. Interest costs attributable to external borrowings, including finance leases, are not recognized or allocated to segments. Interest income is generally not recognized or allocated to segments. The following is a summary of segment Adjusted EBITDA reconciled to the Company’s pre-tax operating income from continuing operation for the years ended September 30, 2024, 2023 and 2022.
(in millions) |  | 2024 |  | 2023 |  | 2022
GPC |  | $ | 216.1 |  |  | $ | 190.6 |  |  | $ | 168.6 |
H&G |  | 90.8 |  |  | 72.5 |  |  | 86.2 |
HPC |  | 75.3 |  |  | 43.1 |  |  | 69.6 |
Total segment adjusted EBITDA |  | 382.2 |  |  | 306.2 |  |  | 324.4 |
Interest expense |  | 58.5 |  |  | 116.1 |  |  | 99.4 |
Depreciation |  | 57.3 |  |  | 48.9 |  |  | 49.0 |
Amortization |  | 44.5 |  |  | 42.3 |  |  | 50.3 |
Corporate costs |  | 66.1 |  |  | 41.1 |  |  | 41.3 |
Unallocated shared service costs |  | — |  |  | 18.0 |  |  | 27.6 |
Interest income 1 |  | (55.7) |  |  | (37.9) |  |  | — |
Share based compensation |  | 17.5 |  |  | 17.2 |  |  | 10.2 |
Non-cash impairment charges |  | 50.3 |  |  | 242.6 |  |  | — |
Non-cash purchase accounting adjustments |  | 1.2 |  |  | 1.9 |  |  | 8.3 |
(Gain) loss from early extinguishment of debt |  | (2.6) |  |  | 3.0 |  |  | — |
Exit and disposal costs |  | 1.0 |  |  | 9.3 |  |  | 10.4 |
HHI separation costs 2 |  | 3.9 |  |  | 8.4 |  |  | 6.3 |
HPC separation initiatives 2 |  | 13.4 |  |  | 4.2 |  |  | 19.1 |
Global ERP transformation 2 |  | 15.0 |  |  | 11.4 |  |  | 13.1 |
Tristar Business acquisition and integration 2 |  | — |  |  | 11.5 |  |  | 24.3 |
Rejuvenate integration 2 |  | — |  |  | — |  |  | 6.8 |
Armitage integration 2 |  | — |  |  | — |  |  | 1.4 |
Omega production integration 2 |  | — |  |  | — |  |  | 4.6 |
Coevorden operations divestiture 2 |  | — |  |  | 2.7 |  |  | 8.8 |
GPC distribution center transition 2 |  | — |  |  | — |  |  | 35.8 |
HPC brand portfolio transition 2 |  | — |  |  | 2.5 |  |  | 1.3 |
HPC product recall 3 |  | 6.9 |  |  | 7.7 |  |  | 5.5 |
Gain from remeasurement of contingent consideration liability 4 |  | — |  |  | (1.5) |  |  | (28.5) |
Representation and warranty insurance proceeds 5 |  | (65.0) |  |  | — |  |  | — |
Litigation charges 6 |  | 2.9 |  |  | 3.0 |  |  | 1.5 |
HPC product disposal 7 |  | — |  |  | 20.6 |  |  | — |
Other 8 |  | 3.4 |  |  | 23.4 |  |  | 18.2 |
Income (loss) from continuing operations before income taxes |  | $ | 163.6 |  |  | $ | (290.2) |  |  | $ | (90.3) |
________________________________________ 1 Interest income is primarily associated with the corporate investment of cash proceeds from the HHI divestiture in June 2023. 2 Incremental costs associated with strategic transactions, restructuring and optimization initiatives, including, but not limited to, the acquisition or divestiture of a business, related integration or separation costs, or the development and implementation of strategies to optimize or restructure operations. 3 Incremental net costs from product recalls in the HPC segment. See Note 20 - Commitment and Contingencies for further detail. 4 Non-cash gain from the remeasurement of a contingent consideration liability associated with the Tristar Business acquisition during the years ended September 30, 2023 and 2022. 5 Gain from the receipt of insurance proceeds on representation and warranty policies associated with the Tristar Business acquisition. See Note 20 Commitment and Contingencies for further detail. 6 Litigation costs primarily associated with the Tristar Business acquisition. See Note 20 - Commitment and Contingencies for further detail. 7 Non-cash write-off from disposal of HPC inventory. See Note 8 - Inventory for further details. 8 Other is attributable to (1) other costs associated with strategic transaction, restructuring and optimization initiatives; (2) other foreign currency loss from the liquidation and deconsolidation of the Company's Russia operating entity during the year ended September 30, 2024; (3) key executive severance and other one-time compensatory costs, (4) non-recurring insurable losses, net insurance proceeds; and (5) impact from the early settlement of foreign currency cash flow hedges during September 30, 2023 and 2022, as previously reported. Depreciation and amortization relating to the segments are as follows for the years ended September 30, 2024, 2023 and 2022:
(in millions) |  | 2024 |  | 2023 |  | 2022
GPC |  | $ | 36.7 |  |  | $ | 37.4 |  |  | $ | 37.4 |
H&G |  | 19.4 |  |  | 18.8 |  |  | 18.6 |
HPC |  | 21.4 |  |  | 20.4 |  |  | 28.7 |
Total segments |  | 77.5 |  |  | 76.6 |  |  | 84.7 |
Corporate and shared operations |  | 24.3 |  |  | 14.6 |  |  | 14.6 |
Total depreciation and amortization |  | $ | 101.8 |  |  | $ | 91.2 |  |  | $ | 99.3 |
Segment assets consist of Inventories, net. The following is a summary of segment assets and a reconciliation of segment assets to total assets of the Company were as follows as of September 30, 2024 and 2023:
Segment total assets (in millions) |  | 2024 |  | 2023
GPC |  | $ | 159.4 |  |  | $ | 171.8 |
H&G |  | 85.6 |  |  | 90.7 |
HPC |  | 217.1 |  |  | 200.3 |
Total segment assets |  | 462.1 |  |  | 462.8 |
Other current assets |  | 1,116.5 |  |  | 2,463.1 |
Non-current assets |  | 2,263.7 |  |  | 2,332.5 |
Total assets |  | $ | 3,842.3 |  |  | $ | 5,258.4 |
Geographic Financial Information Net sales geographic regions (based upon destination) for the years ended September 30, 2024, 2023 and 2022 are as follows:
Net sales to external parties - Geographic Disclosure (in millions) |  | 2024 |  | 2023 |  | 2022
United States |  | $ | 1,715.8 |  |  | $ | 1,722.4 |  |  | $ | 1,901.6 |
Europe/MEA |  | 885.2 |  |  | 830.7 |  |  | 820.0 |
Latin America |  | 211.8 |  |  | 206.8 |  |  | 243.3 |
Asia-Pacific |  | 99.4 |  |  | 106.6 |  |  | 108.5 |
North America - Other |  | 51.7 |  |  | 52.3 |  |  | 59.1 |
Net sales |  | $ | 2,963.9 |  |  | $ | 2,918.8 |  |  | $ | 3,132.5 |
Long-lived asset information, consisting of Property Plant and Equipment, Net, and Operating Lease Assets, as of September 30, 2024 and 2023 by geographic area are as follows:
Long-lived assets - Geographic Disclosure (in millions) |  | 2024 |  | 2023
United States |  | $ | 285.7 |  |  | $ | 321.4 |
Europe/MEA |  | 73.0 |  |  | 53.7 |
Latin America |  | 2.4 |  |  | 2.6 |
North America - Other |  | 1.3 |  |  | — |
Asia-Pacific |  | 6.1 |  |  | 8.2 |
Total long-lived assets |  | $ | 368.5 |  |  | $ | 385.9 |

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- Definition The entire disclosure for reporting segments including data and tables. 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