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SEGMENT INFORMATION | 3 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Net sales relating to the segments for the three month periods ended December 31, 2023 and January 1, 2023, are as follows:
(in millions) |  | December 31, 2023 |  | January 1, 2023 |  |  |  |
GPC |  | $ | 276.9 |  |  | $ | 277.5 |  |  |  |  |
H&G |  | 72.0 |  |  | 71.4 |  |  |  |  |
HPC |  | 343.3 |  |  | 364.4 |  |  |  |  |
Net sales |  | $ | 692.2 |  |  | $ | 713.3 |  |  |  |  |
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: •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 12 – Share Based Compensation for further details; •Incremental amounts attributable to strategic transactions, restructuring and optimization 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, development and implementation of strategies to optimize operations, reduce costs, increase revenues, improve profit margins, including recognition of one-time exit or disposal costs. These amounts are excluded from our performance metrics as they are reflective of incremental investment by the Company towards strategic initiatives and business development activities, incremental costs directly attributable to such initiatives and are not considered recurring or reflective of the continuing ongoing operations of the consolidated group or segments; •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; •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, when applicable; •Incremental costs recognized by the HPC segment attributable to the realization of product recalls initiated in the prior year. See Note 15 - Commitments and Contingencies for further details; •Incremental reserves for non-recurring litigation or environmental remediation activity attributable to significant and unusual nonrecurring matters with no previous history or precedent; •Unallocated shared costs associated with discontinued operations from certain shared and center-led administrative functions, through the close of the HHI divestiture on June 20, 2023; 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. Subsequent to the close of the HHI divestiture, amounts attributable to unallocated shared costs would be mitigated through income from TSAs, subsequent strategic or restructuring initiatives, elimination of extraneous costs, or re-allocations or absorption of existing continuing operations. See Note 2 – Divestitures for further details; •Impact from the early settlement of foreign currency cash flow hedges, resulting in assumed losses at the original stated maturities of foreign currency cash flow hedges in our EMEA region that were settled early 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 excluded gains intended to mitigate costs during the year ending September 30, 2023; and •Other adjustments primarily attributable to: (1) key executive severance and other one-time compensatory costs; and (2) non-recurring unusual insurable losses. Segment Adjusted EBITDA for the reportable segments for SBH for the three month periods ended December 31, 2023 and January 1, 2023, are as follows:
(in millions) |  | December 31, 2023 |  | January 1, 2023 |  |  |  |
GPC |  | $ | 52.7 |  |  | $ | 37.2 |  |  |  |  |
H&G |  | (0.7) |  |  | (2.4) |  |  |  |  |
HPC |  | 26.7 |  |  | 13.2 |  |  |  |  |
Total segment adjusted EBITDA |  | 78.7 |  |  | 48.0 |  |  |  |  |
Corporate |  | (5.6) |  |  | 8.2 |  |  |  |  |
Interest expense |  | 19.2 |  |  | 33.4 |  |  |  |  |
Depreciation |  | 14.4 |  |  | 12.2 |  |  |  |  |
Amortization |  | 11.1 |  |  | 10.4 |  |  |  |  |
Share based compensation |  | 3.9 |  |  | 3.3 |  |  |  |  |
Tristar integration |  | — |  |  | 5.7 |  |  |  |  |
HHI separation costs |  | 1.3 |  |  | 1.5 |  |  |  |  |
HPC separation initiatives |  | 0.3 |  |  | 2.4 |  |  |  |  |
Fiscal 2023 restructuring |  | 0.5 |  |  | — |  |  |  |  |
Fiscal 2022 restructuring |  | — |  |  | 0.6 |  |  |  |  |
Russia closing initiatives |  | — |  |  | 2.9 |  |  |  |  |
Global ERP transformation |  | 3.0 |  |  | 1.6 |  |  |  |  |
Other project costs |  | — |  |  | 5.4 |  |  |  |  |
Unallocated shared costs |  | — |  |  | 6.3 |  |  |  |  |
Non-cash purchase accounting adjustments |  | 0.5 |  |  | 0.5 |  |  |  |  |
Gain from debt repurchase |  | (4.7) |  |  | — |  |  |  |  |
Gain from remeasurement of contingent consideration liability |  | — |  |  | (1.5) |  |  |  |  |
Impairment of intangible assets |  | 4.0 |  |  | — |  |  |  |  |
Early settlement of foreign currency cash flow hedges |  | — |  |  | 2.6 |  |  |  |  |
Legal and environmental |  | 1.2 |  |  | — |  |  |  |  |
HPC product recall |  | (0.7) |  |  | 0.3 |  |  |  |  |
Other |  | 0.4 |  |  | 4.3 |  |  |  |  |
Income (loss) from continuing operations before income taxes |  | $ | 29.9 |  |  | $ | (52.1) |  |  |  |  |
Segment Adjusted EBITDA for reportable segments for SB/RH for the three month periods ended December 31, 2023 and January 1, 2023, are as follows:
(in millions) |  | December 31, 2023 |  | January 1, 2023 |  |  |  |
GPC |  | $ | 52.7 |  |  | $ | 37.2 |  |  |  |  |
H&G |  | (0.7) |  |  | (2.4) |  |  |  |  |
HPC |  | 26.7 |  |  | 13.2 |  |  |  |  |
Total segment adjusted EBITDA |  | 78.7 |  |  | 48.0 |  |  |  |  |
Corporate |  | (5.9) |  |  | 8.3 |  |  |  |  |
Interest expense |  | 19.2 |  |  | 33.4 |  |  |  |  |
Depreciation |  | 14.4 |  |  | 12.2 |  |  |  |  |
Amortization |  | 11.1 |  |  | 10.4 |  |  |  |  |
Share based compensation |  | 3.8 |  |  | 3.1 |  |  |  |  |
Tristar integration |  | — |  |  | 5.7 |  |  |  |  |
HHI divestiture and separation costs |  | 1.3 |  |  | 1.5 |  |  |  |  |
HPC separation initiatives |  | 0.3 |  |  | 2.4 |  |  |  |  |
Fiscal 2023 restructuring |  | 0.5 |  |  | — |  |  |  |  |
Fiscal 2022 restructuring |  | — |  |  | 0.6 |  |  |  |  |
Russia closing initiatives |  | — |  |  | 2.9 |  |  |  |  |
Global ERP transformation |  | 3.0 |  |  | 1.6 |  |  |  |  |
Other project costs |  | — |  |  | 5.4 |  |  |  |  |
Unallocated shared costs |  | — |  |  | 6.3 |  |  |  |  |
Non-cash purchase accounting adjustments |  | 0.5 |  |  | 0.5 |  |  |  |  |
Gain from debt repurchase |  | (4.7) |  |  | — |  |  |  |  |
Gain from remeasurement of contingent consideration liability |  | — |  |  | (1.5) |  |  |  |  |
Impairment of intangible assets |  | 4.0 |  |  | — |  |  |  |  |
Early settlement of foreign currency cash flow hedges |  | — |  |  | 2.6 |  |  |  |  |
Legal and environmental |  | 1.2 |  |  | — |  |  |  |  |
HPC product recall |  | (0.7) |  |  | 0.3 |  |  |  |  |
Other |  | 0.3 |  |  | 4.3 |  |  |  |  |
Income (loss) from continuing operations before income taxes |  | $ | 30.4 |  |  | $ | (52.0) |  |  |  |  |

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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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