Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Jan. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EDGEWELL PERSONAL CARE COMPANY | |
Entity Central Index Key | 1,096,752 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | EPC | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 57,419,038 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 485 | $ 495.1 |
Cost of products sold | 257 | 267.6 |
Gross profit | 228 | 227.5 |
Selling, general and administrative expense | 93.8 | 100.4 |
Advertising and sales promotion expense | 50.6 | 46.6 |
Research and development expense | 16.3 | 16 |
Restructuring charges | 6.9 | 18.5 |
Interest expense associated with debt | 17.4 | 17.7 |
Other income, net | (1.9) | (2.4) |
Earnings before income taxes | 44.9 | 30.7 |
Income tax provision | 11.4 | 7 |
Net earnings | $ 33.5 | $ 23.7 |
Basic net earnings per share (in usd per share) | $ 0.58 | $ 0.40 |
Diluted net earnings per share (in usd per share) | $ 0.58 | $ 0.39 |
Condensed Consolidated Statements of Comprehensive Income | ||
Net earnings | $ 33.5 | $ 23.7 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | (38.7) | (10.5) |
Pension and postretirement activity, net of tax | 3.9 | 0.5 |
Deferred gain (loss) on hedging activity, net of tax | 7.9 | (1.9) |
Total other comprehensive loss, net of tax | (26.9) | (11.9) |
Total comprehensive income | $ 6.6 | $ 11.8 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Pension and postretirement activity, tax | $ 0.6 | $ 0.4 |
Deferred gain (loss) on hedging activity, tax | $ (4.1) | $ 0.9 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Current assets | ||
Cash and cash equivalents | $ 418.5 | $ 738.9 |
Trade receivables, less allowance for doubtful accounts | 228.4 | 260.7 |
Inventories | 339 | 309.2 |
Other current assets | 151.7 | 143.2 |
Total current assets | 1,137.6 | 1,452 |
Property, plant and equipment, net | 472.6 | 486.1 |
Goodwill | 1,429.1 | 1,420.3 |
Other intangible assets, net | 1,388.5 | 1,385.1 |
Other assets | 27.4 | 28 |
Total assets | 4,455.2 | 4,771.5 |
Current liabilities | ||
Current maturities of long-term debt | 0 | 281.8 |
Notes payable | 18.3 | 18.5 |
Accounts payable | 181.6 | 196.5 |
Other current liabilities | 273.4 | 371.4 |
Total current liabilities | 473.3 | 868.2 |
Long-term debt | 1,680.5 | 1,544.2 |
Deferred income tax liabilities | 255.8 | 255.3 |
Other liabilities | 267.6 | 274.8 |
Total liabilities | 2,677.2 | 2,942.5 |
Shareholders' equity | ||
Preferred shares | 0 | 0 |
Common shares | 0.7 | 0.7 |
Additional paid-in capital | 1,630.1 | 1,642.5 |
Retained earnings | 981.1 | 946 |
Common shares in treasury at cost | (609.8) | (563) |
Accumulated other comprehensive loss | (224.1) | (197.2) |
Total shareholders' equity | 1,778 | 1,829 |
Total liabilities and shareholders' equity | $ 4,455.2 | $ 4,771.5 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5.5 | $ 4.9 |
Preferred shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 300,000,000 | 300,000,000 |
Common shares, issued (in shares) | 65,251,989 | 65,251,989 |
Common shares, outstanding (in shares) | 57,305,242 | 57,914,448 |
Treasury shares (in shares) | 7,946,747 | 7,337,541 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 33.5 | $ 23.7 |
Non-cash restructuring costs | 1.7 | 0.7 |
Depreciation and amortization | 23.4 | 20.2 |
Non-cash items included in income, net | (0.5) | 7.2 |
Share-based compensation expense | 5.7 | 6.4 |
Other, net | (4.1) | (11.5) |
Changes in current assets and liabilities used in operations | (118.7) | (105.4) |
Net cash used by operating activities | (59) | (58.7) |
Cash Flow from Investing Activities | ||
Capital expenditures | (13.7) | (14.5) |
Acquisitions, net of cash acquired | (34) | 0 |
Net cash used by investing activities | (47.7) | (14.5) |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 146 | 347.8 |
Cash payments on debt with original maturities greater than 90 days | (287) | (203) |
Net decrease in debt with original maturities of 90 days or less | (0.4) | (2.2) |
Common shares purchased | (58) | (78.9) |
Net cash (used by) from financing activities | (199.4) | 63.7 |
Effect of exchange rate changes on cash | (14.3) | (8.4) |
Net decrease in cash and cash equivalents | (320.4) | (17.9) |
Cash and cash equivalents, beginning of period | 738.9 | 712.1 |
Cash and cash equivalents, end of period | $ 418.5 | $ 694.2 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Dec. 31, 2016 | |
Background and Basis of Presentation [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background Edgewell Personal Care Company, and its subsidiaries (collectively, "Edgewell" or the "Company"), is one of the world's largest manufacturers and marketers of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. Edgewell has a portfolio of over 25 brands and a global footprint in more than 50 countries. The Company conducts its business in the following four segments: • Wet Shave consists of products sold under the Schick®, Wilkinson Sword®, Edge®, Skintimate®, Shave Guard and Personna® brands, as well as non-branded products. The Company's wet shave products include razor handles and refillable blades, disposable shave products and shaving gels and creams. • Sun and Skin Care consists of Banana Boat® and Hawaiian Tropic® sun care products and Bulldog® men's skin care products, as well as Wet Ones® wipes and Playtex® household gloves. • Feminine Care includes tampons, pads and liners sold under the Playtex® Sport®, Stayfree®, Carefree® and o.b.® brands, as well as personal cleansing wipes under the Playtex® brand. • All Other includes infant care products, such as bottles, cups and pacifiers, under the Playtex®, OrthoPro® and Binky® brand names, as well as the Diaper Genie® and Litter Genie® disposal systems. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries and have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"), under the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ materially from those estimates. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in the interim results reported. The fiscal year-end balance sheet data was derived from audited consolidated financial statements, but do not include all of the annual disclosures required by GAAP; accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited annual consolidated financial statements included in its Annual Report on Form 10-K filed with the SEC on November 18, 2016. Acquisition of Bulldog Skincare. On October 31, 2016, the Company completed the acquisition of Bulldog Skincare Holdings Limited ("Bulldog"), a men's grooming and skincare products company based in the United Kingdom ("U.K."). The results of Bulldog for the post-acquisition period are included within the Company's results for the three months ended December 31, 2016. For more information on the acquisition, see Note 2 of Notes to Condensed Consolidated Financial Statements. Statement of Cash Flows Presentation. The net presentation of borrowings and repayments under the Company's U.S. revolving credit facility in the Condensed Consolidated Statement of Cash Flows for the three months ended December 31, 2015 has been revised in order to properly reflect borrowings and repayments on a gross basis, resulting in $203.0 of repayments presented gross that were previously netted against borrowings. Net cash from financing activities reported in the Condensed Consolidated Statement of Cash Flows for the three months ended December 31, 2015 was not impacted, and the Company has concluded that the correction was not material to its financial statements and that the error was not material to any other period. Recently Issued Accounting Pronouncements. In November 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. These amounts should be included within cash and cash equivalents when reconciling the beginning and ending balances for the periods shown on the statement of cash flows. The ASU requires retrospective application, and will be effective for the Company beginning October 1, 2018, with early adoption permitted. The Company does not expect to early adopt this guidance and the impact on the financial statements is not expected to be material. In January 2017, FASB issued new guidance clarifying the definition of a business, reducing the number of transactions that need to be further evaluated and providing a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments in the ASU specify that when the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the integrated set of assets and activities is not a business. The guidance also requires that an integrated set of assets and activities must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output to be considered a business, and removes the evaluation of whether a market participant could replace the missing elements. The ASU will be effective for transactions occurring after October 1, 2018, with early adoption permitted. In January 2017, FASB issued new guidance which simplifies the subsequent measurement of goodwill by eliminating step 2 from the goodwill impairment test. Under existing guidance, an entity performs procedures to determine the fair value at the impairment testing date of its assets and liabilities following the same procedures required when determining the fair value of assets acquired and liabilities assumed in a business combination. The amended guidance requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge to the extent the carrying amount exceeds the fair value and does not exceed the total amount of goodwill allocated to the reporting unit. The ASU will be effective for the Company beginning October 1, 2021, with early adoption permitted, and should be applied prospectively. The Company is in the process of determining what impact, if any, the new guidance will have on its annual impairment testing and whether or not it will early adopt the new guidance. |
Acquisition
Acquisition | 3 Months Ended |
Dec. 31, 2016 | |
Acquisition [Abstract] | |
Acquisition | Acquisition Bulldog Skincare Holdings, Limited On October 31, 2016, the Company completed the acquisition of Bulldog, a men's grooming and skincare products company based in the U.K., for £27.8 , or $34.0 , net of cash acquired. The acquisition creates opportunities to expand Edgewell's personal care portfolio into a growing global category where it can leverage its international geographic footprint. The acquisition was financed through available foreign cash. The Company has recognized the assets and liabilities of Bulldog based on preliminary estimates of their acquisition date fair values. The determination of the fair values of the acquired assets and assumed liabilities, including goodwill and other intangible assets, requires significant judgment. As of December 31, 2016, this valuation analysis was not complete, including the allocations to goodwill and other intangible assets, and the related deferred tax impacts. The Company expects to complete the final fair value determinations no later than the third quarter of fiscal 2017. As of December 31, 2016, net assets acquired totaled $35.2 and consisted of working capital and other net assets of $4.6 (including cash of $1.2 ), other intangible assets of $12.8 and goodwill of $17.8 , representing the value of expansion into new markets and the acquired workforce of Bulldog. Goodwill is not expected to be deductible for tax purposes. The intangible assets acquired consisted primarily of the Bulldog trade name, customer relationships and product formulations. Amortization expense for the current period was estimated using a weighted-average useful life of 13.5 years for those assets preliminarily identified as definite-lived; however, the Company is still in the process of evaluating the useful lives of the acquired intangible assets. All assets are included in the Company's Sun and Skin Care segment. Acquisition and integration costs related to the acquisition were not material. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges Spin Restructuring The Company initiated certain restructuring activities related to the July 1, 2015 separation of its Household Products business into a separate, publicly-traded company (the "Spin") in order to prepare both businesses to operate as stand-alone entities. The restructuring activities included efforts to adapt the global go-to-market footprint to adjust to the future strategies and scale of each stand-alone business; centralize certain back-office functions to increase efficiencies; outsource certain non-core transactional activities; and reduce headcount to optimize the cost structures of each stand-alone business. As of December 31, 2016 and September 30, 2016, $2.7 and $5.2 of accrued Spin restructuring charges were included in Other current liabilities. Restructuring In November 2012, the Company's Board of Directors (the "Board") authorized an enterprise-wide restructuring plan (the "Restructuring"). The Restructuring originally included several initiatives focused on reducing costs in general and administrative functions, as well as reducing manufacturing and operating costs associated with the Company's discontinued operations. In January 2014, the Board authorized an expansion of scope of the previously announced Restructuring, which included rationalization and streamlining of the Edgewell operating facilities and other cost saving initiatives. Restructuring charges specific to Edgewell have primarily related to plant closure and accelerated depreciation charges and severance and related benefit costs. Project-to-date restructuring costs total $147.0 . The Company now expects full year restructuring costs to total $20.0 to $25.0 for 2017, and does not currently expect costs in future periods to be material. Expenses incurred under the Restructuring plan are reflected below, including the estimated impact of allocating such charges to segment results. Restructuring charges were only allocated to the Company's Wet Shave and Feminine Care segments for the three months ended December 31, 2016 and 2015. The Company does not include restructuring costs in the results of its reportable segments. Three Months Ended December 31, 2016 Wet Feminine Total Restructuring Severance and related benefit costs $ 0.4 $ 1.5 $ 1.9 Asset impairment and accelerated depreciation — 1.7 1.7 Consulting, program management and other exit costs 1.7 1.6 3.3 Total Restructuring $ 2.1 $ 4.8 $ 6.9 Three Months Ended December 31, 2015 Wet Feminine Total Restructuring Severance and related benefit costs $ 10.5 $ 3.1 $ 13.6 Asset impairment and accelerated depreciation — 0.7 0.7 Consulting, program management and other exit costs 0.7 3.5 4.2 Total Restructuring $ 11.2 $ 7.3 $ 18.5 In addition, pre-tax costs of $0.3 for the three months ended December 31, 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring were included in Cost of products sold. There were no obsolescence charges recorded during the three months ended December 31, 2015. The following table summarizes the Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for the first three months of fiscal 2017: Utilized October 1, 2016 Charge to Other (1) Cash Non-Cash December 31, 2016 Restructuring Severance and termination related costs $ 16.7 $ 1.9 $ (0.7 ) $ (2.0 ) $ — $ 15.9 Asset impairment and accelerated depreciation — 1.7 — — (1.7 ) — Other related costs — 3.3 — (3.3 ) — — Total Restructuring $ 16.7 $ 6.9 $ (0.7 ) $ (5.3 ) $ (1.7 ) $ 15.9 (1) Includes the impact of currency translation. The following table summarizes the Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for fiscal 2016: Utilized October 1, 2015 Charge to Other (1) Cash Non-Cash September 30, 2016 Restructuring Severance and termination related costs $ 13.7 $ 17.0 $ 0.6 $ (14.6 ) $ — $ 16.7 Asset impairment and accelerated depreciation — 3.9 — — (3.9 ) — Other related costs — 16.1 — (16.1 ) — — Total Restructuring $ 13.7 $ 37.0 $ 0.6 $ (30.7 ) $ (3.9 ) $ 16.7 (1) Includes the impact of currency translation. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes For the three months ended December 31, 2016 and 2015, the Company had income tax expense of $11.4 and $7.0 , respectively, on Earnings before income taxes of $44.9 and $30.7 , respectively. The effective tax rate for the three months ended December 31, 2016 was 25.4% compared to 22.8% for the three months ended December 31, 2015 . The difference between the federal statutory rate and the effective rate for both periods is due to a higher mix of earnings in lower tax rate jurisdictions and was favorably impacted by Spin costs and Restructuring charges in higher tax rate jurisdictions. In addition, the effective tax rate for both periods was impacted by favorable tax adjustments, which reduced the effective rate by approximately 4% . |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share is based on the average number of common shares outstanding during the period. Diluted earnings per share is based on the average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of share options and restricted share equivalent ("RSE") awards. Following is the reconciliation between the number of weighted-average shares used in the basic and diluted earnings per share calculation: Three Months Ended December 31, 2016 2015 Basic weighted-average shares outstanding 57.7 59.7 Effect of dilutive securities: Share options — — RSE awards 0.4 0.2 Total dilutive securities 0.4 0.2 Diluted weighted-average shares outstanding 58.1 59.9 For the three months ended December 31, 2016 , the calculation of diluted weighted-average shares outstanding excludes 0.6 of share options because the effect of including these awards was anti-dilutive. For the three months ended December 31, 2016 , the number of RSE awards considered anti-dilutive was immaterial. For the three months ended December 31, 2015 , the calculation of diluted weighted-average shares outstanding excludes 0.4 of share options and 0.2 of RSE awards because the effect of including these awards was anti-dilutive. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangibles [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table sets forth goodwill by segment: Wet Sun and Feminine All Total Balance at October 1, 2016 $ 965.3 $ 178.0 $ 207.4 $ 69.6 $ 1,420.3 Acquisition of Bulldog — 17.8 — — 17.8 Cumulative translation adjustment (8.0 ) — (1.0 ) — (9.0 ) Balance at December 31, 2016 $ 957.3 $ 195.8 $ 206.4 $ 69.6 $ 1,429.1 Total amortizable intangible assets were as follows: December 31, 2016 September 30, 2016 Gross Accumulated Net Gross Accumulated Net Trade names and brands $ 45.4 $ 12.5 $ 32.9 $ 14.6 $ 12.2 $ 2.4 Technology and patents 77.0 70.3 6.7 76.9 69.8 7.1 Customer related and other 143.9 81.2 62.7 141.8 79.6 62.2 Total amortizable intangible assets $ 266.3 $ 164.0 $ 102.3 $ 233.3 $ 161.6 $ 71.7 The preliminary estimate of amortizable intangible assets related to the Bulldog acquisition was $4.4 , see Note 2 of Notes to Condensed Consolidated Financial Statements for more information. Amortization expense was $4.0 and $3.6 for the three months ended December 31, 2016 and 2015, respectively. Estimated amortization expense for amortizable intangible assets for the remainder of fiscal 2017 and for fiscal 2018, 2019, 2020, 2021 and 2022 is approximately $12.0 , $8.5 , $7.3 , $6.6 , $6.0 and $5.9 , respectively, and $56.0 thereafter. The Company had indefinite-lived intangible assets of $1,286.2 ( $223.0 in Wet Shave, $499.8 in Sun and Skin Care, $299.9 in Feminine Care and $263.5 in All Other) at December 31, 2016 , a decrease of $27.2 from September 30, 2016 . Indefinite-lived intangible assets decreased $30.9 due to the conversion of the Skintimate® brand name to a definite-lived intangible asset, as noted below, and changes in foreign currency translation rates. The preliminary estimate of indefinite-lived intangible assets related to the Bulldog acquisition was $8.4 ; however, the Company is still in the process of determining the useful lives of the acquired intangible assets. See Note 2 of Notes to Condensed Consolidated Financial Statements for more information on the Bulldog acquisition. Goodwill and intangible assets deemed to have an indefinite life are not amortized, but reviewed annually during the fourth fiscal quarter for impairment of value or when indicators of a potential impairment are present. The Company continuously monitors changing business conditions, which may indicate that the remaining useful life of goodwill and other intangible assets may warrant revision or carrying amounts may require adjustment. During fiscal 2016 and 2015, the Company recorded impairment charges of $6.5 and $29.6 , respectively, on its Skintimate® brand name, which were primarily related to the introduction of competing products in the market, resulting in share and margin declines. Based on the impairments taken in the past two years and continued competitive pressure on this brand, as of October 1, 2016 the Skintimate® brand name was converted to a definite-lived asset and assigned a useful life of 20 years . This conversion to a definite-lived intangible asset increased amortization expense by $0.4 for the three months ended December 31, 2016. During fiscal 2015, the Company also recorded impairment charges related to its Playtex® and Wet Ones® brand names. As such, the fair value of both brand names continues to be relatively close to the carrying value and these assets will continue to be sensitive in the future to changes in forecasted cash flows, as well as other assumptions used in an impairment analysis, including discount rates. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2016 | |
Supplemental Financial Statement Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information December 31, September 30, Inventories Raw materials and supplies $ 54.0 $ 50.8 Work in process 50.3 43.9 Finished products 234.7 214.5 Total inventories $ 339.0 $ 309.2 Other Current Assets Miscellaneous receivables $ 40.9 $ 29.1 Prepaid expenses 53.2 49.0 Value added tax collectible from customers 23.9 22.4 Income taxes receivable 25.2 39.3 Other 8.5 3.4 Total other current assets $ 151.7 $ 143.2 Property, Plant and Equipment Land $ 27.2 $ 27.8 Buildings 141.6 146.0 Machinery and equipment 904.7 913.7 Capitalized software costs 38.0 38.4 Construction in progress 43.2 36.2 Total gross property 1,154.7 1,162.1 Accumulated depreciation (682.1 ) (676.0 ) Total property, plant and equipment, net $ 472.6 $ 486.1 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 44.3 $ 46.8 Accrued trade allowances 24.4 30.1 Accrued salaries, vacations and incentive compensation 26.4 56.0 Income taxes payable 11.9 19.7 Returns reserve 27.4 49.9 Restructuring reserve 18.6 21.9 Value added tax payable 25.6 25.0 Deferred compensation 26.7 26.1 Other 68.1 95.9 Total other current liabilities $ 273.4 $ 371.4 Other Liabilities Pensions and other retirement benefits $ 150.0 $ 154.9 Deferred compensation 57.8 58.6 Other non-current liabilities 59.8 61.3 Total other liabilities $ 267.6 $ 274.8 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: December 31, September 30, Senior notes, fixed interest rate of 4.7%, due 2021, net (1) $ 597.9 $ 597.8 Senior notes, fixed interest rate of 4.7%, due 2022, net (1) (2) 497.0 496.9 U.S. revolving credit facility due 2020 401.0 265.0 Netherlands revolving credit facility due 2017 — 281.8 Term loan, due 2019, net (1) 184.6 184.5 Total long-term debt, including current maturities 1,680.5 1,826.0 Less current portion — 281.8 Total long-term debt $ 1,680.5 $ 1,544.2 (1) At December 31, 2016 , the balance for the senior notes due 2021, the senior notes due 2022 and the term loan are reflected net of debt issuance costs of $2.1 , $2.2 and $0.4 , respectively. At September 30, 2016, the balance for the senior notes due 2021, the senior notes due 2022 and the term loan are reflected net of debt issuance costs of $2.2 , $2.3 and $0.5 , respectively. (2) At December 31, 2016 and September 30, 2016, the balance for the senior notes due 2022 is reflected net of discount of $0.8 . The Company had outstanding international borrowings, recorded in Notes payable, of $18.3 and $18.5 as of December 31, 2016 and September 30, 2016 , respectively. Netherlands Revolving Credit Facility On October 20, 2016, the Company terminated its commitments under the Netherlands revolving credit facility and repaid all outstanding loans and other obligations in full, in the amount of €251.3 , or approximately $277.0 . |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 31, 2016 | |
Pension and Other Postretirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The Company has several defined benefit pension plans covering employees in the U.S. and certain employees in other countries. The plans provide retirement benefits based on years of service and earnings. The Company also sponsors or participates in a number of other non-U.S. pension and postretirement arrangements, including various retirement and termination benefit plans, some of which are required by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and, therefore, are not included in the information presented below. The Company's net periodic pension benefit (credit) cost for these plans was as follows: Three Months Ended December 31, 2016 2015 Service cost $ 1.8 $ 1.3 Interest cost 3.8 5.5 Expected return on plan assets (7.9 ) (6.9 ) Amortization of unrecognized prior service cost — — Recognized net actuarial loss 1.5 1.0 Settlement loss recognized 0.3 — Net periodic benefit (credit) cost $ (0.5 ) $ 0.9 In fiscal 2017, the Company changed the methodology used to estimate the service and interest components of net periodic benefit (credit) cost for its pension benefits, which will result in a decrease in expense of approximately $4 during fiscal 2017. The Company believes the spot discount rate approach, which applies the specific spot rates along the yield curve used in the determination of the benefit obligations to the relevant cash flows, is a more precise application of the yield curve spot rates used in the traditional single discount rate approach. The change was accounted for prospectively as a change in accounting estimate. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity In May 2015, the Board approved an authorization to repurchase up to 10.0 shares of the Company's common stock. This authorization replaced a prior share repurchase authorization. During the three months ended December 31, 2016 , the Company repurchased 0.8 shares of its common stock for $58.0 , all of which were purchased under this authorization. The Company has 4.7 shares remaining under the Board authorization to repurchase its common shares in the future. Future share repurchases, if any, would be made in the open market, privately negotiated transactions or otherwise, in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs and other factors. During the three months ended December 31, 2016 , 0.1 shares were purchased related to the surrender of shares of common stock to satisfy tax withholding obligations in connection with the vesting of RSE awards. During the three months ended December 31, 2016, the Company paid $0.8 cash dividends related to the vesting of RSE awards, which had been declared and accrued during prior fiscal years. The Company has not declared any dividends since the third quarter of fiscal 2015, and does not currently intend to declare dividends in the foreseeable future. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss ("AOCI"), net of tax, by component: Foreign Pension and Hedging Total Balance at October 1, 2016 $ (68.1 ) $ (126.3 ) $ (2.8 ) $ (197.2 ) OCI before reclassifications (1) (38.7 ) 2.7 8.1 (27.9 ) Reclassifications to earnings — 1.2 (0.2 ) 1.0 Balance at December 31, 2016 $ (106.8 ) $ (122.4 ) $ 5.1 $ (224.1 ) Foreign Pension and Hedging Total Balance at October 1, 2015 $ (69.1 ) $ (105.7 ) $ 3.3 $ (171.5 ) OCI before reclassifications (1) (10.5 ) (0.1 ) (4.4 ) (15.0 ) Reclassifications to earnings — 0.6 2.5 3.1 Balance at December 31, 2015 $ (79.6 ) $ (105.2 ) $ 1.4 $ (183.4 ) (1) OCI is defined as other comprehensive income (loss). The following table presents the reclassifications out of AOCI: For the Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Earnings Details of AOCI Components 2016 2015 Gains and losses on cash flow hedges Foreign exchange contracts $ (0.3 ) $ 3.6 Other income, net (0.3 ) 3.6 Total before tax 0.1 (1.1 ) Tax expense $ (0.2 ) $ 2.5 Net of tax Amortization of defined benefit pension and postretirement items Prior service costs $ — $ — (1) Actuarial losses 1.5 1.0 (1) Settlement loss recognized 0.3 — (1) 1.8 1.0 Total before tax (0.6 ) (0.4 ) Tax expense $ 1.2 $ 0.6 Net of tax Total reclassifications for the period $ 1.0 $ 3.1 Net of tax (1) These AOCI components are included in the computation of net periodic benefit (credit) cost. See Note 9 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2016 | |
Financial Instruments and Risk Management [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management At times, the Company enters into contractual arrangements (derivatives) to reduce its exposure to foreign currency and interest rate risks. The section below outlines the types of derivatives that existed at December 31, 2016 and September 30, 2016 , as well as the Company's objectives and strategies for holding derivative instruments. Foreign Currency Risk A significant share of the Company's sales are tied to currencies other than the U.S. dollar, the Company's reporting currency. As such, a weakening of currencies relative to the U.S. dollar can have a negative impact to reported earnings. Conversely, strengthening of currencies relative to the U.S. dollar can improve reported results. The primary currencies to which the Company is exposed include the Euro, the Japanese Yen, the British Pound, the Canadian Dollar and the Australian Dollar. Additionally, the Company's foreign subsidiaries enter into internal and external transactions that create non-functional currency balance sheet positions at the foreign subsidiary level. These exposures are generally the result of intercompany purchases, intercompany loans and, to a lesser extent, external purchases, and are revalued in the foreign subsidiary's local currency at the end of each period. Changes in the value of the non-functional currency balance sheet positions in relation to the foreign subsidiary's local currency results in an exchange gain or loss recorded in Other income, net. The primary currency to which the Company's foreign subsidiaries are exposed is the U.S. dollar. Interest Rate Risk The Company has interest rate risk with respect to interest expense on variable rate debt. At December 31, 2016 , the Company had $585.6 of variable rate debt outstanding, which consisted of outstanding borrowings under the Company's revolving credit facility in the U.S. and term loan. Cash Flow Hedges At December 31, 2016 , the Company maintained a cash flow hedging program related to foreign currency risk. These derivative instruments have a high correlation to the underlying exposure being hedged and have been deemed highly effective for accounting purposes in offsetting the associated risk. The Company entered into a series of forward currency contracts to hedge cash flow uncertainty associated with currency fluctuations. These transactions are accounted for as cash flow hedges. The Company had an unrealized pre-tax gain of $7.7 at December 31, 2016 compared to an unrealized loss of $4.3 at September 30, 2016 on these forward currency contracts accounted for as cash flow hedges included in AOCI. Assuming foreign exchange rates versus the U.S. dollar remain at December 31, 2016 levels over the next twelve months, approximately $7.4 of the pre-tax loss included in AOCI at December 31, 2016 is expected to be included in Other income, net. Contract maturities for these hedges extend into fiscal 2018. There were 72 open foreign currency contracts at December 31, 2016 with a total notional value of $132.0 . Derivatives not Designated as Hedges The Company entered into foreign currency derivative contracts which are not designated as cash flow hedges for accounting purposes to hedge balance sheet exposures. Any gains or losses on these contracts are expected to be offset by exchange gains or losses on the underlying exposures, thus they are not subject to significant market risk. The change in estimated fair value of the foreign currency contracts for the three months ended December 31, 2016 resulted in a gain of $2.6 and was recorded in Other income, net. The change in estimated fair value of the foreign currency contracts for the three months ended December 31, 2015 was immaterial. There were five open foreign currency derivative contracts, which were not designated as cash flow hedges at December 31, 2016 , with a total notional value of $84.8 . The following table provides estimated fair values and the amounts of gains and losses on derivative instruments classified as cash flow hedges: At December 31, 2016 For the Three Months Ended Derivatives designated as cash flow hedging relationships Estimated Fair Value, Asset (1) (2) Gain Recognized in OCI Loss Reclassified From OCI into Income (Effective Portion) (3) (4) Foreign currency contracts $ 7.7 $ 11.7 $ (0.3 ) At September 30, 2016 For the Three Months Ended Derivatives designated as cash flow hedging relationships Estimated (1) (2) Gain Recognized Gain Reclassified From OCI into Income (Effective (3) (4) Foreign currency contracts $ (4.3 ) $ 0.8 $ 3.6 (1) All derivative assets are presented in Other current assets or Other assets. (2) All derivative liabilities are presented in Other current liabilities or Other liabilities. (3) (Loss) gain reclassified to income was recorded in Other income, net. (4) Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and had been deemed highly effective in offsetting associated risk. The following table provides estimated fair values and the amounts of gains and losses on derivative instruments not classified as cash flow hedges: At December 31, 2016 For the Three Months Ended December 31, 2016 Derivatives not designated as cash flow hedging relationships Estimated Fair Value, Asset Gain Recognized in Income (1) Foreign currency contracts $ 2.8 $ 2.6 At September 30, 2016 For the Three Months Ended December 31, 2015 Derivatives not designated as cash flow hedging relationships Estimated Fair Value, Liability Gain Recognized in Income (1) Foreign currency contracts $ (1.3 ) $ — (1) Gain recognized in income was recorded in Other income, net. The following table provides financial assets and liabilities for balance sheet offsetting: Offsetting of derivative assets At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign currency contracts Other current assets, Other assets $ 11.9 $ (0.5 ) $ 11.4 $ 1.7 $ — $ 1.7 Offsetting of derivative liabilities At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign currency contracts Other current liabilities, Other liabilities $ (0.9 ) $ — $ (0.9 ) $ (6.2 ) $ 0.2 $ (6.0 ) Fair Value Hierarchy Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. Under the fair value accounting guidance hierarchy, an entity is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The following table sets forth the Company's financial assets and liabilities, which are carried at fair value and measured on a recurring basis during the period, all of which are classified as level 2 within the fair value hierarchy: December 31, September 30, Assets (Liabilities) at estimated fair value: Deferred compensation $ (84.3 ) $ (84.5 ) Derivatives - foreign currency contracts 10.5 (5.6 ) Net liabilities at estimated fair value $ (73.8 ) $ (90.1 ) At December 31, 2016 and September 30, 2016 , the Company had no level 1 or level 3 financial assets or liabilities, other than pension plan assets. At December 31, 2016 and September 30, 2016 , the fair market value of fixed rate long-term debt was $1,126.3 and $1,106.2 , respectively, compared to its carrying value of $1,094.9 and $ 1,094.7 , respectively. The estimated fair value of the long-term debt is estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. The estimated fair value of variable-rate debt, excluding revolving credit facilities, which consists of bank debt, was $185.0 compared to its carrying value of $184.6 and $184.5 at December 31, 2016 and September 30, 2016, respectively. The estimated fair value is equal to the face value of the debt. The estimated fair value of long-term debt, excluding revolving credit facilities, have been determined based on level 2 inputs. Due to the nature of cash and cash equivalents and short-term borrowings, including notes payable, carrying amounts on the balance sheets approximate fair value. Additionally, the carrying amounts of the Company's revolving credit facilities, which are classified as long-term debt on the balance sheet, approximate fair value due to the revolving nature of the balances. The estimated fair value of cash and cash equivalents, short-term borrowings and the revolving credit agreements have been determined based on level 2 inputs. At December 31, 2016 , the estimated fair value of foreign currency contracts is the amount that the Company would receive or pay to terminate the contracts, considering first the quoted market prices of comparable agreements or, in the absence of quoted market prices, factors such as interest rates, currency exchange rates and remaining maturities. The estimated fair value of the deferred compensation liability is determined based upon the quoted market prices of the investment options that are offered under the plan. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Legal Proceedings and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company and its affiliates are subject to a number of legal proceedings in various jurisdictions arising out of its operations during the ordinary course of business. Many of these legal matters are in preliminary stages and involve complex issues of law and fact, and may proceed for protracted periods of time. The amount of liability, if any, from these proceedings cannot be determined with certainty. The Company reviews its legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for those contingencies when the incurrence of a loss is probable and can be reasonably estimated, and discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements to not be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, if the amount cannot be reasonably estimated. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims and known potential legal claims, which are likely to be asserted, is not reasonably likely to be material to the Company's financial position, results of operations or cash flows, taking into account established accruals for estimated liabilities. |
Segment Data
Segment Data | 3 Months Ended |
Dec. 31, 2016 | |
Segments [Abstract] | |
Segment Data | Segment Data The Company conducts its business in the following four segments: • Wet Shave consists of products sold under the Schick®, Wilkinson Sword®, Edge®, Skintimate®, Shave Guard and Personna® brands, as well as non-branded products. The Company's wet shave products include razor handles and refillable blades, disposable shave products and shaving gels and creams. • Sun and Skin Care consists of Banana Boat® and Hawaiian Tropic® sun care products and Bulldog® men's skin care products, as well as Wet Ones® wipes and Playtex® household gloves. • Feminine Care includes tampons, pads and liners sold under the Playtex® Sport®, Stayfree®, Carefree® and o.b.® brands, as well as personal cleansing wipes under the Playtex® brand. • All Other includes infant care products, such as bottles, cups and pacifiers, under the Playtex®, OrthoPro® and Binky® brand names, as well as the Diaper Genie® and Litter Genie® disposal systems. Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with restructuring initiatives and the amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of such charges from segment results reflects management's view on how it evaluates segment performance. The Company's operating model includes some shared business functions across the segments, including product warehousing and distribution, transaction processing functions and in most cases a combined sales force and management teams. The Company applies a fully allocated cost basis, in which shared business functions are allocated between the segments. Such allocations are estimates, and do not represent the costs of such services if performed on a stand-alone basis. Segment net sales and profitability are presented below: Three Months Ended December 31, 2016 2015 Net Sales Wet Shave $ 306.2 $ 316.3 Sun and Skin Care 57.6 53.5 Feminine Care 89.1 92.5 All Other 32.1 32.8 Total net sales $ 485.0 $ 495.1 Segment Profit Wet Shave $ 72.0 $ 66.8 Sun and Skin Care 0.8 1.7 Feminine Care 8.3 17.6 All Other 6.9 7.2 Total segment profit 88.0 93.3 General corporate and other expenses (16.4 ) (17.7 ) Spin costs (1) — (7.5 ) Restructuring and related costs (2) (7.2 ) (18.5 ) Amortization of intangibles (4.0 ) (3.6 ) Interest and other expense, net (15.5 ) (15.3 ) Total earnings before income taxes $ 44.9 $ 30.7 (1) Includes pre-tax Selling, general and administrative expense of $7.3 and pre-tax Cost of products sold of $0.2 for the three months ended December 31, 2015 related to the separation of the Household Products business in July 2015. (2) Includes pre-tax Cost of products sold of $0.3 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring for the three months ended December 31, 2016. Supplemental product information is presented below for net sales: Three Months Ended 2016 2015 Razors and blades $ 271.3 $ 274.2 Tampons, pads and liners 89.1 92.5 Sun care products 37.7 36.9 Infant care and other 32.1 32.7 Shaving gels and creams 34.9 42.2 Skin care products 19.9 16.6 Total net sales $ 485.0 $ 495.1 |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Dec. 31, 2016 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | |
Guarantor and Non-Guarantor Financial Information | Guarantor and Non-Guarantor Financial Information The Company's senior notes issued in May 2011 and May 2012 (collectively, the "Notes") are fully and unconditionally guaranteed on a joint and several basis by the Company's existing and future direct and indirect domestic subsidiaries that are guarantors of any of the Company's credit agreements or other indebtedness for borrowed money (the "Guarantors"). The Guarantors are 100% owned either directly or indirectly by the Company and jointly and severally guarantee the Company's obligations under the Notes and substantially all of the Company's other outstanding indebtedness. The Company's subsidiaries organized outside of the U.S. and certain domestic subsidiaries which are not guarantors of any of the Company's other indebtedness (collectively, the "Non-Guarantors"), do not guarantee the Notes. The subsidiary guarantee with respect to the Notes is subject to release upon sale of all of the capital stock of the Subsidiary Guarantor; if the guarantee under the Company's credit agreements and other indebtedness for borrowed money is released or discharged (other than due to payment under such guarantee); or when the requirements for legal defeasance are satisfied or the obligations are discharged in accordance with the indenture. Set forth below are the condensed consolidating financial statements presenting the results of operations, financial position and cash flows of the Parent Company, Edgewell Personal Care Company, the Guarantors on a combined basis, the Non-Guarantors on a combined basis and eliminations necessary to arrive at the information for the Company, as reported on a consolidated basis. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among the Parent Company, the Guarantors and the Non-Guarantors. EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME Three Months Ended December 31, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 342.9 $ 232.3 $ (90.2 ) $ 485.0 Cost of products sold — 204.5 142.7 (90.2 ) 257.0 Gross profit — 138.4 89.6 — 228.0 Selling, general and administrative expense — 58.7 35.1 — 93.8 Advertising and sales promotion expense — 30.2 20.4 — 50.6 Research and development expense — 16.0 0.3 — 16.3 Restructuring charges — 2.7 4.2 — 6.9 Interest expense associated with debt 13.4 3.3 0.7 — 17.4 Other expense (income), net — 0.4 (2.3 ) — (1.9 ) Intercompany service fees — (4.4 ) 4.4 — — Equity in earnings of subsidiaries (41.9 ) (21.1 ) — 63.0 — Earnings before income taxes 28.5 52.6 26.8 (63.0 ) 44.9 Income tax (benefit) provision (5.0 ) 10.9 5.5 — 11.4 Net earnings $ 33.5 $ 41.7 $ 21.3 $ (63.0 ) $ 33.5 Statement of Comprehensive Income: Net earnings $ 33.5 $ 41.7 $ 21.3 $ (63.0 ) $ 33.5 Other comprehensive loss, net of tax (26.9 ) (3.2 ) (27.8 ) 31.0 (26.9 ) Total comprehensive income $ 6.6 $ 38.5 $ (6.5 ) $ (32.0 ) $ 6.6 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME Three Months Ended December 31, 2015 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 336.8 $ 269.5 $ (111.2 ) $ 495.1 Cost of products sold — 204.9 174.8 (112.1 ) 267.6 Gross profit — 131.9 94.7 0.9 227.5 Selling, general and administrative expense 3.1 60.7 36.6 — 100.4 Advertising and sales promotion expense — 27.5 19.2 (0.1 ) 46.6 Research and development expense — 15.6 0.4 — 16.0 Restructuring charges — 4.7 13.8 — 18.5 Interest expense associated with debt 16.2 — 1.5 — 17.7 Other income, net — (2.4 ) — — (2.4 ) Intercompany service fees — (5.5 ) 5.5 — — Equity in earnings of subsidiaries (35.8 ) (12.4 ) — 48.2 — Earnings before income taxes 16.5 43.7 17.7 (47.2 ) 30.7 Income tax (benefit) provision (7.2 ) 10.0 3.2 1.0 7.0 Net earnings $ 23.7 $ 33.7 $ 14.5 $ (48.2 ) $ 23.7 Statement of Comprehensive Income: Net earnings 23.7 33.7 14.5 (48.2 ) 23.7 Other comprehensive loss, net of tax (11.9 ) (1.9 ) (11.5 ) 13.4 (11.9 ) Total comprehensive income $ 11.8 $ 31.8 $ 3.0 $ (34.8 ) $ 11.8 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 5.1 $ 413.4 $ — $ 418.5 Trade receivables, net — 102.2 126.2 — 228.4 Inventories — 210.8 128.2 — 339.0 Other current assets — 41.8 109.9 — 151.7 Total current assets — 359.9 777.7 — 1,137.6 Investment in subsidiaries 3,500.2 841.9 — (4,342.1 ) — Intercompany receivables, net (1) — 579.0 42.7 (621.7 ) — Intercompany notes receivable (1) — 1.9 — (1.9 ) — Property, plant and equipment, net — 341.8 130.8 — 472.6 Goodwill — 1,061.9 367.2 — 1,429.1 Other intangible assets, net — 1,231.5 157.0 — 1,388.5 Other assets 1.8 0.2 25.4 — 27.4 Total assets $ 3,502.0 $ 4,418.1 $ 1,500.8 $ (4,965.7 ) $ 4,455.2 Liabilities and Shareholders' Equity Current liabilities $ 7.8 $ 236.3 $ 229.2 $ — $ 473.3 Intercompany payables, net (1) 621.7 — — (621.7 ) — Intercompany notes payable (1) — — 1.9 (1.9 ) — Long-term debt 1,094.5 586.0 — — 1,680.5 Deferred income tax liabilities — 229.7 26.1 — 255.8 Other liabilities — 231.6 36.0 — 267.6 Total liabilities 1,724.0 1,283.6 293.2 (623.6 ) 2,677.2 Total shareholders' equity 1,778.0 3,134.5 1,207.6 (4,342.1 ) 1,778.0 Total liabilities and shareholders' equity $ 3,502.0 $ 4,418.1 $ 1,500.8 $ (4,965.7 ) $ 4,455.2 (1) Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity and other intercompany activities in the normal course of business. EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 5.8 $ 733.1 $ — $ 738.9 Trade receivables, net — 108.9 151.8 — 260.7 Inventories — 187.7 121.5 — 309.2 Other current assets — 43.7 99.5 — 143.2 Total current assets — 346.1 1,105.9 — 1,452.0 Investment in subsidiaries 3,483.7 825.0 — (4,308.7 ) — Intercompany receivables, net (1) — 487.6 53.5 (541.1 ) — Intercompany notes receivable (1) — 1.9 — (1.9 ) — Property, plant and equipment, net — 343.8 142.3 — 486.1 Goodwill — 1,061.9 358.4 — 1,420.3 Other intangible assets, net — 1,235.1 150.0 — 1,385.1 Other assets 2.0 0.1 25.9 — 28.0 Total assets $ 3,485.7 $ 4,301.5 $ 1,836.0 $ (4,851.7 ) $ 4,771.5 Liabilities and Shareholders' Equity Current liabilities $ 21.4 $ 288.4 $ 558.4 $ — $ 868.2 Intercompany payables, net (1) 541.1 — — (541.1 ) — Intercompany notes payable (1) — — 1.9 (1.9 ) — Long-term debt 1,094.2 450.0 — — 1,544.2 Deferred income tax liabilities — 232.4 22.9 — 255.3 Other liabilities — 236.3 38.5 — 274.8 Total liabilities 1,656.7 1,207.1 621.7 (543.0 ) 2,942.5 Total shareholders' equity 1,829.0 3,094.4 1,214.3 (4,308.7 ) 1,829.0 Total liabilities and shareholders' equity $ 3,485.7 $ 4,301.5 $ 1,836.0 $ (4,851.7 ) $ 4,771.5 (1) Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity and other intercompany activities in the normal course of business. EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 58.0 $ (124.8 ) $ 7.8 $ — $ (59.0 ) Cash Flow from Investing Activities Capital expenditures — (11.0 ) (2.7 ) — (13.7 ) Acquisitions, net of cash acquired — — (34.0 ) — (34.0 ) Net cash used by investing activities — (11.0 ) (36.7 ) — (47.7 ) Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 146.0 — — 146.0 Cash payments on debt with original maturities greater than 90 days — (10.0 ) (277.0 ) — (287.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (0.9 ) 0.5 — (0.4 ) Common shares purchased (58.0 ) — — — (58.0 ) Net cash (used by) from financing activities (58.0 ) 135.1 (276.5 ) — (199.4 ) Effect of exchange rate changes on cash — — (14.3 ) — (14.3 ) Net decrease in cash and cash equivalents — (0.7 ) (319.7 ) — (320.4 ) Cash and cash equivalents, beginning of period — 5.8 733.1 — 738.9 Cash and cash equivalents, end of period $ — $ 5.1 $ 413.4 $ — $ 418.5 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2015 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 78.9 $ (123.7 ) $ (13.9 ) $ — $ (58.7 ) Cash Flow from Investing Activities Capital expenditures — (13.0 ) (1.5 ) — (14.5 ) Payment for equity contributions — (0.2 ) — 0.2 — Net cash used by investing activities — (13.2 ) (1.5 ) 0.2 (14.5 ) Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 345.0 2.8 — 347.8 Cash payments on debt with original maturities greater than 90 days — (203.0 ) — — (203.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (2.4 ) 0.2 — (2.2 ) Common shares purchased (78.9 ) — — — (78.9 ) Proceeds for equity contributions — — 0.2 (0.2 ) — Net cash (used by) from financing activities (78.9 ) 139.6 3.2 (0.2 ) 63.7 Effect of exchange rate changes on cash — — (8.4 ) — (8.4 ) Net increase (decrease) in cash and cash equivalents — 2.7 (20.6 ) — (17.9 ) Cash and cash equivalents, beginning of period — 2.9 709.2 — 712.1 Cash and cash equivalents, end of period $ — $ 5.6 $ 688.6 $ — $ 694.2 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |
Schedule of Charges Related to Restructuring Activities | Expenses incurred under the Restructuring plan are reflected below, including the estimated impact of allocating such charges to segment results. Restructuring charges were only allocated to the Company's Wet Shave and Feminine Care segments for the three months ended December 31, 2016 and 2015. The Company does not include restructuring costs in the results of its reportable segments. Three Months Ended December 31, 2016 Wet Feminine Total Restructuring Severance and related benefit costs $ 0.4 $ 1.5 $ 1.9 Asset impairment and accelerated depreciation — 1.7 1.7 Consulting, program management and other exit costs 1.7 1.6 3.3 Total Restructuring $ 2.1 $ 4.8 $ 6.9 Three Months Ended December 31, 2015 Wet Feminine Total Restructuring Severance and related benefit costs $ 10.5 $ 3.1 $ 13.6 Asset impairment and accelerated depreciation — 0.7 0.7 Consulting, program management and other exit costs 0.7 3.5 4.2 Total Restructuring $ 11.2 $ 7.3 $ 18.5 |
Schedule of Restructuring Activities and Related Accruals | The following table summarizes the Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for the first three months of fiscal 2017: Utilized October 1, 2016 Charge to Other (1) Cash Non-Cash December 31, 2016 Restructuring Severance and termination related costs $ 16.7 $ 1.9 $ (0.7 ) $ (2.0 ) $ — $ 15.9 Asset impairment and accelerated depreciation — 1.7 — — (1.7 ) — Other related costs — 3.3 — (3.3 ) — — Total Restructuring $ 16.7 $ 6.9 $ (0.7 ) $ (5.3 ) $ (1.7 ) $ 15.9 (1) Includes the impact of currency translation. The following table summarizes the Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for fiscal 2016: Utilized October 1, 2015 Charge to Other (1) Cash Non-Cash September 30, 2016 Restructuring Severance and termination related costs $ 13.7 $ 17.0 $ 0.6 $ (14.6 ) $ — $ 16.7 Asset impairment and accelerated depreciation — 3.9 — — (3.9 ) — Other related costs — 16.1 — (16.1 ) — — Total Restructuring $ 13.7 $ 37.0 $ 0.6 $ (30.7 ) $ (3.9 ) $ 16.7 (1) Includes the impact of currency translation. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | Following is the reconciliation between the number of weighted-average shares used in the basic and diluted earnings per share calculation: Three Months Ended December 31, 2016 2015 Basic weighted-average shares outstanding 57.7 59.7 Effect of dilutive securities: Share options — — RSE awards 0.4 0.2 Total dilutive securities 0.4 0.2 Diluted weighted-average shares outstanding 58.1 59.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangibles [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment: Wet Sun and Feminine All Total Balance at October 1, 2016 $ 965.3 $ 178.0 $ 207.4 $ 69.6 $ 1,420.3 Acquisition of Bulldog — 17.8 — — 17.8 Cumulative translation adjustment (8.0 ) — (1.0 ) — (9.0 ) Balance at December 31, 2016 $ 957.3 $ 195.8 $ 206.4 $ 69.6 $ 1,429.1 |
Schedule of Amortizable Intangible Assets | Total amortizable intangible assets were as follows: December 31, 2016 September 30, 2016 Gross Accumulated Net Gross Accumulated Net Trade names and brands $ 45.4 $ 12.5 $ 32.9 $ 14.6 $ 12.2 $ 2.4 Technology and patents 77.0 70.3 6.7 76.9 69.8 7.1 Customer related and other 143.9 81.2 62.7 141.8 79.6 62.2 Total amortizable intangible assets $ 266.3 $ 164.0 $ 102.3 $ 233.3 $ 161.6 $ 71.7 |
Supplemental Balance Sheet In25
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Supplemental Financial Statement Information [Abstract] | |
Supplement Balance Sheet Information | December 31, September 30, Inventories Raw materials and supplies $ 54.0 $ 50.8 Work in process 50.3 43.9 Finished products 234.7 214.5 Total inventories $ 339.0 $ 309.2 Other Current Assets Miscellaneous receivables $ 40.9 $ 29.1 Prepaid expenses 53.2 49.0 Value added tax collectible from customers 23.9 22.4 Income taxes receivable 25.2 39.3 Other 8.5 3.4 Total other current assets $ 151.7 $ 143.2 Property, Plant and Equipment Land $ 27.2 $ 27.8 Buildings 141.6 146.0 Machinery and equipment 904.7 913.7 Capitalized software costs 38.0 38.4 Construction in progress 43.2 36.2 Total gross property 1,154.7 1,162.1 Accumulated depreciation (682.1 ) (676.0 ) Total property, plant and equipment, net $ 472.6 $ 486.1 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 44.3 $ 46.8 Accrued trade allowances 24.4 30.1 Accrued salaries, vacations and incentive compensation 26.4 56.0 Income taxes payable 11.9 19.7 Returns reserve 27.4 49.9 Restructuring reserve 18.6 21.9 Value added tax payable 25.6 25.0 Deferred compensation 26.7 26.1 Other 68.1 95.9 Total other current liabilities $ 273.4 $ 371.4 Other Liabilities Pensions and other retirement benefits $ 150.0 $ 154.9 Deferred compensation 57.8 58.6 Other non-current liabilities 59.8 61.3 Total other liabilities $ 267.6 $ 274.8 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Schedule of Long-term Debt | The detail of long-term debt was as follows: December 31, September 30, Senior notes, fixed interest rate of 4.7%, due 2021, net (1) $ 597.9 $ 597.8 Senior notes, fixed interest rate of 4.7%, due 2022, net (1) (2) 497.0 496.9 U.S. revolving credit facility due 2020 401.0 265.0 Netherlands revolving credit facility due 2017 — 281.8 Term loan, due 2019, net (1) 184.6 184.5 Total long-term debt, including current maturities 1,680.5 1,826.0 Less current portion — 281.8 Total long-term debt $ 1,680.5 $ 1,544.2 (1) At December 31, 2016 , the balance for the senior notes due 2021, the senior notes due 2022 and the term loan are reflected net of debt issuance costs of $2.1 , $2.2 and $0.4 , respectively. At September 30, 2016, the balance for the senior notes due 2021, the senior notes due 2022 and the term loan are reflected net of debt issuance costs of $2.2 , $2.3 and $0.5 , respectively. (2) At December 31, 2016 and September 30, 2016, the balance for the senior notes due 2022 is reflected net of discount of $0.8 . |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Pension and Other Postretirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Benefit (Credit) Cost | The Company's net periodic pension benefit (credit) cost for these plans was as follows: Three Months Ended December 31, 2016 2015 Service cost $ 1.8 $ 1.3 Interest cost 3.8 5.5 Expected return on plan assets (7.9 ) (6.9 ) Amortization of unrecognized prior service cost — — Recognized net actuarial loss 1.5 1.0 Settlement loss recognized 0.3 — Net periodic benefit (credit) cost $ (0.5 ) $ 0.9 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss ("AOCI"), net of tax, by component: Foreign Pension and Hedging Total Balance at October 1, 2016 $ (68.1 ) $ (126.3 ) $ (2.8 ) $ (197.2 ) OCI before reclassifications (1) (38.7 ) 2.7 8.1 (27.9 ) Reclassifications to earnings — 1.2 (0.2 ) 1.0 Balance at December 31, 2016 $ (106.8 ) $ (122.4 ) $ 5.1 $ (224.1 ) Foreign Pension and Hedging Total Balance at October 1, 2015 $ (69.1 ) $ (105.7 ) $ 3.3 $ (171.5 ) OCI before reclassifications (1) (10.5 ) (0.1 ) (4.4 ) (15.0 ) Reclassifications to earnings — 0.6 2.5 3.1 Balance at December 31, 2015 $ (79.6 ) $ (105.2 ) $ 1.4 $ (183.4 ) (1) OCI is defined as other comprehensive income (loss). |
Schedule of Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents the reclassifications out of AOCI: For the Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Earnings Details of AOCI Components 2016 2015 Gains and losses on cash flow hedges Foreign exchange contracts $ (0.3 ) $ 3.6 Other income, net (0.3 ) 3.6 Total before tax 0.1 (1.1 ) Tax expense $ (0.2 ) $ 2.5 Net of tax Amortization of defined benefit pension and postretirement items Prior service costs $ — $ — (1) Actuarial losses 1.5 1.0 (1) Settlement loss recognized 0.3 — (1) 1.8 1.0 Total before tax (0.6 ) (0.4 ) Tax expense $ 1.2 $ 0.6 Net of tax Total reclassifications for the period $ 1.0 $ 3.1 Net of tax (1) These AOCI components are included in the computation of net periodic benefit (credit) cost. See Note 9 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Ris29
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Financial Instruments and Risk Management [Abstract] | |
Schedule of Derivative Instruments Designated as Cash Flow Hedges | The following table provides estimated fair values and the amounts of gains and losses on derivative instruments classified as cash flow hedges: At December 31, 2016 For the Three Months Ended Derivatives designated as cash flow hedging relationships Estimated Fair Value, Asset (1) (2) Gain Recognized in OCI Loss Reclassified From OCI into Income (Effective Portion) (3) (4) Foreign currency contracts $ 7.7 $ 11.7 $ (0.3 ) At September 30, 2016 For the Three Months Ended Derivatives designated as cash flow hedging relationships Estimated (1) (2) Gain Recognized Gain Reclassified From OCI into Income (Effective (3) (4) Foreign currency contracts $ (4.3 ) $ 0.8 $ 3.6 (1) All derivative assets are presented in Other current assets or Other assets. (2) All derivative liabilities are presented in Other current liabilities or Other liabilities. (3) (Loss) gain reclassified to income was recorded in Other income, net. (4) Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and had been deemed highly effective in offsetting associated risk. |
Schedule of Derivative Instruments Not Designated as Cash Flow Hedges | The following table provides estimated fair values and the amounts of gains and losses on derivative instruments not classified as cash flow hedges: At December 31, 2016 For the Three Months Ended December 31, 2016 Derivatives not designated as cash flow hedging relationships Estimated Fair Value, Asset Gain Recognized in Income (1) Foreign currency contracts $ 2.8 $ 2.6 At September 30, 2016 For the Three Months Ended December 31, 2015 Derivatives not designated as cash flow hedging relationships Estimated Fair Value, Liability Gain Recognized in Income (1) Foreign currency contracts $ (1.3 ) $ — (1) Gain recognized in income was recorded in Other income, net. |
Schedule of Offsetting Assets and Liabilities | The following table provides financial assets and liabilities for balance sheet offsetting: Offsetting of derivative assets At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign currency contracts Other current assets, Other assets $ 11.9 $ (0.5 ) $ 11.4 $ 1.7 $ — $ 1.7 Offsetting of derivative liabilities At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign currency contracts Other current liabilities, Other liabilities $ (0.9 ) $ — $ (0.9 ) $ (6.2 ) $ 0.2 $ (6.0 ) |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company's financial assets and liabilities, which are carried at fair value and measured on a recurring basis during the period, all of which are classified as level 2 within the fair value hierarchy: December 31, September 30, Assets (Liabilities) at estimated fair value: Deferred compensation $ (84.3 ) $ (84.5 ) Derivatives - foreign currency contracts 10.5 (5.6 ) Net liabilities at estimated fair value $ (73.8 ) $ (90.1 ) |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Segments [Abstract] | |
Schedule of Segment Sales and Profitability | Segment net sales and profitability are presented below: Three Months Ended December 31, 2016 2015 Net Sales Wet Shave $ 306.2 $ 316.3 Sun and Skin Care 57.6 53.5 Feminine Care 89.1 92.5 All Other 32.1 32.8 Total net sales $ 485.0 $ 495.1 Segment Profit Wet Shave $ 72.0 $ 66.8 Sun and Skin Care 0.8 1.7 Feminine Care 8.3 17.6 All Other 6.9 7.2 Total segment profit 88.0 93.3 General corporate and other expenses (16.4 ) (17.7 ) Spin costs (1) — (7.5 ) Restructuring and related costs (2) (7.2 ) (18.5 ) Amortization of intangibles (4.0 ) (3.6 ) Interest and other expense, net (15.5 ) (15.3 ) Total earnings before income taxes $ 44.9 $ 30.7 (1) Includes pre-tax Selling, general and administrative expense of $7.3 and pre-tax Cost of products sold of $0.2 for the three months ended December 31, 2015 related to the separation of the Household Products business in July 2015. (2) Includes pre-tax Cost of products sold of $0.3 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring for the three months ended December 31, 2016. |
Schedule of Supplemental Product Information | Supplemental product information is presented below for net sales: Three Months Ended 2016 2015 Razors and blades $ 271.3 $ 274.2 Tampons, pads and liners 89.1 92.5 Sun care products 37.7 36.9 Infant care and other 32.1 32.7 Shaving gels and creams 34.9 42.2 Skin care products 19.9 16.6 Total net sales $ 485.0 $ 495.1 |
Guarantor and Non-Guarantor F31
Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | |
Schedule of Condensed Consolidating Statements of Earnings and Comprehensive Income | EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME Three Months Ended December 31, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 342.9 $ 232.3 $ (90.2 ) $ 485.0 Cost of products sold — 204.5 142.7 (90.2 ) 257.0 Gross profit — 138.4 89.6 — 228.0 Selling, general and administrative expense — 58.7 35.1 — 93.8 Advertising and sales promotion expense — 30.2 20.4 — 50.6 Research and development expense — 16.0 0.3 — 16.3 Restructuring charges — 2.7 4.2 — 6.9 Interest expense associated with debt 13.4 3.3 0.7 — 17.4 Other expense (income), net — 0.4 (2.3 ) — (1.9 ) Intercompany service fees — (4.4 ) 4.4 — — Equity in earnings of subsidiaries (41.9 ) (21.1 ) — 63.0 — Earnings before income taxes 28.5 52.6 26.8 (63.0 ) 44.9 Income tax (benefit) provision (5.0 ) 10.9 5.5 — 11.4 Net earnings $ 33.5 $ 41.7 $ 21.3 $ (63.0 ) $ 33.5 Statement of Comprehensive Income: Net earnings $ 33.5 $ 41.7 $ 21.3 $ (63.0 ) $ 33.5 Other comprehensive loss, net of tax (26.9 ) (3.2 ) (27.8 ) 31.0 (26.9 ) Total comprehensive income $ 6.6 $ 38.5 $ (6.5 ) $ (32.0 ) $ 6.6 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME Three Months Ended December 31, 2015 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 336.8 $ 269.5 $ (111.2 ) $ 495.1 Cost of products sold — 204.9 174.8 (112.1 ) 267.6 Gross profit — 131.9 94.7 0.9 227.5 Selling, general and administrative expense 3.1 60.7 36.6 — 100.4 Advertising and sales promotion expense — 27.5 19.2 (0.1 ) 46.6 Research and development expense — 15.6 0.4 — 16.0 Restructuring charges — 4.7 13.8 — 18.5 Interest expense associated with debt 16.2 — 1.5 — 17.7 Other income, net — (2.4 ) — — (2.4 ) Intercompany service fees — (5.5 ) 5.5 — — Equity in earnings of subsidiaries (35.8 ) (12.4 ) — 48.2 — Earnings before income taxes 16.5 43.7 17.7 (47.2 ) 30.7 Income tax (benefit) provision (7.2 ) 10.0 3.2 1.0 7.0 Net earnings $ 23.7 $ 33.7 $ 14.5 $ (48.2 ) $ 23.7 Statement of Comprehensive Income: Net earnings 23.7 33.7 14.5 (48.2 ) 23.7 Other comprehensive loss, net of tax (11.9 ) (1.9 ) (11.5 ) 13.4 (11.9 ) Total comprehensive income $ 11.8 $ 31.8 $ 3.0 $ (34.8 ) $ 11.8 |
Schedule of Condensed Consolidating Balance Sheets | EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 5.1 $ 413.4 $ — $ 418.5 Trade receivables, net — 102.2 126.2 — 228.4 Inventories — 210.8 128.2 — 339.0 Other current assets — 41.8 109.9 — 151.7 Total current assets — 359.9 777.7 — 1,137.6 Investment in subsidiaries 3,500.2 841.9 — (4,342.1 ) — Intercompany receivables, net (1) — 579.0 42.7 (621.7 ) — Intercompany notes receivable (1) — 1.9 — (1.9 ) — Property, plant and equipment, net — 341.8 130.8 — 472.6 Goodwill — 1,061.9 367.2 — 1,429.1 Other intangible assets, net — 1,231.5 157.0 — 1,388.5 Other assets 1.8 0.2 25.4 — 27.4 Total assets $ 3,502.0 $ 4,418.1 $ 1,500.8 $ (4,965.7 ) $ 4,455.2 Liabilities and Shareholders' Equity Current liabilities $ 7.8 $ 236.3 $ 229.2 $ — $ 473.3 Intercompany payables, net (1) 621.7 — — (621.7 ) — Intercompany notes payable (1) — — 1.9 (1.9 ) — Long-term debt 1,094.5 586.0 — — 1,680.5 Deferred income tax liabilities — 229.7 26.1 — 255.8 Other liabilities — 231.6 36.0 — 267.6 Total liabilities 1,724.0 1,283.6 293.2 (623.6 ) 2,677.2 Total shareholders' equity 1,778.0 3,134.5 1,207.6 (4,342.1 ) 1,778.0 Total liabilities and shareholders' equity $ 3,502.0 $ 4,418.1 $ 1,500.8 $ (4,965.7 ) $ 4,455.2 (1) Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity and other intercompany activities in the normal course of business. EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 5.8 $ 733.1 $ — $ 738.9 Trade receivables, net — 108.9 151.8 — 260.7 Inventories — 187.7 121.5 — 309.2 Other current assets — 43.7 99.5 — 143.2 Total current assets — 346.1 1,105.9 — 1,452.0 Investment in subsidiaries 3,483.7 825.0 — (4,308.7 ) — Intercompany receivables, net (1) — 487.6 53.5 (541.1 ) — Intercompany notes receivable (1) — 1.9 — (1.9 ) — Property, plant and equipment, net — 343.8 142.3 — 486.1 Goodwill — 1,061.9 358.4 — 1,420.3 Other intangible assets, net — 1,235.1 150.0 — 1,385.1 Other assets 2.0 0.1 25.9 — 28.0 Total assets $ 3,485.7 $ 4,301.5 $ 1,836.0 $ (4,851.7 ) $ 4,771.5 Liabilities and Shareholders' Equity Current liabilities $ 21.4 $ 288.4 $ 558.4 $ — $ 868.2 Intercompany payables, net (1) 541.1 — — (541.1 ) — Intercompany notes payable (1) — — 1.9 (1.9 ) — Long-term debt 1,094.2 450.0 — — 1,544.2 Deferred income tax liabilities — 232.4 22.9 — 255.3 Other liabilities — 236.3 38.5 — 274.8 Total liabilities 1,656.7 1,207.1 621.7 (543.0 ) 2,942.5 Total shareholders' equity 1,829.0 3,094.4 1,214.3 (4,308.7 ) 1,829.0 Total liabilities and shareholders' equity $ 3,485.7 $ 4,301.5 $ 1,836.0 $ (4,851.7 ) $ 4,771.5 (1) Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity and other intercompany activities in the normal course of business. |
Schedule of Condensed Consolidating Statements of Cash Flows | EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2016 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 58.0 $ (124.8 ) $ 7.8 $ — $ (59.0 ) Cash Flow from Investing Activities Capital expenditures — (11.0 ) (2.7 ) — (13.7 ) Acquisitions, net of cash acquired — — (34.0 ) — (34.0 ) Net cash used by investing activities — (11.0 ) (36.7 ) — (47.7 ) Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 146.0 — — 146.0 Cash payments on debt with original maturities greater than 90 days — (10.0 ) (277.0 ) — (287.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (0.9 ) 0.5 — (0.4 ) Common shares purchased (58.0 ) — — — (58.0 ) Net cash (used by) from financing activities (58.0 ) 135.1 (276.5 ) — (199.4 ) Effect of exchange rate changes on cash — — (14.3 ) — (14.3 ) Net decrease in cash and cash equivalents — (0.7 ) (319.7 ) — (320.4 ) Cash and cash equivalents, beginning of period — 5.8 733.1 — 738.9 Cash and cash equivalents, end of period $ — $ 5.1 $ 413.4 $ — $ 418.5 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2015 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 78.9 $ (123.7 ) $ (13.9 ) $ — $ (58.7 ) Cash Flow from Investing Activities Capital expenditures — (13.0 ) (1.5 ) — (14.5 ) Payment for equity contributions — (0.2 ) — 0.2 — Net cash used by investing activities — (13.2 ) (1.5 ) 0.2 (14.5 ) Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 345.0 2.8 — 347.8 Cash payments on debt with original maturities greater than 90 days — (203.0 ) — — (203.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (2.4 ) 0.2 — (2.2 ) Common shares purchased (78.9 ) — — — (78.9 ) Proceeds for equity contributions — — 0.2 (0.2 ) — Net cash (used by) from financing activities (78.9 ) 139.6 3.2 (0.2 ) 63.7 Effect of exchange rate changes on cash — — (8.4 ) — (8.4 ) Net increase (decrease) in cash and cash equivalents — 2.7 (20.6 ) — (17.9 ) Cash and cash equivalents, beginning of period — 2.9 709.2 — 712.1 Cash and cash equivalents, end of period $ — $ 5.6 $ 688.6 $ — $ 694.2 |
Background and Basis of Prese32
Background and Basis of Presentation (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2016brandscountry | |
Background and Basis of Presentation [Abstract] | ||
Number of brands | brands | 25 | |
Number of countries in which Edgewell operates | country | 50 | |
Cash Payments on Debt | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Amount of misstatement | $ | $ 203 |
Acquisition (Details)
Acquisition (Details) £ in Millions, $ in Millions | Oct. 31, 2016USD ($) | Oct. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,429.1 | $ 1,420.3 | ||
Weighted-average useful life of acquired finite-lived intangible assets | 13 years 6 months | 13 years 6 months | ||
Bulldog | ||||
Business Acquisition [Line Items] | ||||
Purchase price, net of cash acquired | $ 34 | £ 27.8 | ||
Net assets acquired | 35.2 | |||
Working capital and other net assets | 4.6 | |||
Cash | 1.2 | |||
Other intangible assets | 12.8 | |||
Goodwill | $ 17.8 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 50 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related costs | [1] | $ 7.2 | $ 18.5 | |||
Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 15.9 | $ 15.9 | $ 16.7 | $ 13.7 | ||
Restructuring charges incurred to date | 147 | |||||
Minimum | Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges expected, fiscal 2017 | 20 | 20 | ||||
Maximum | Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges expected, fiscal 2017 | 25 | 25 | ||||
Spinoff | New Energizer | Spin Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 2.7 | $ 2.7 | $ 5.2 | |||
Obsolescence | Cost of products sold | Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related costs | $ 0.3 | $ 0 | ||||
[1] | Includes pre-tax Cost of products sold of $0.3 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring for the three months ended December 31, 2016. |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of Charges Related to Restructuring Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 6.9 | $ 18.5 |
Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 6.9 | 18.5 |
Restructuring Plan | Severance and related benefit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.9 | 13.6 |
Restructuring Plan | Asset impairment and accelerated depreciation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.7 | 0.7 |
Restructuring Plan | Consulting, program management and other exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3.3 | 4.2 |
Restructuring Plan | Wet Shave | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2.1 | 11.2 |
Restructuring Plan | Wet Shave | Severance and related benefit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.4 | 10.5 |
Restructuring Plan | Wet Shave | Asset impairment and accelerated depreciation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Restructuring Plan | Wet Shave | Consulting, program management and other exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.7 | 0.7 |
Restructuring Plan | Feminine Care | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4.8 | 7.3 |
Restructuring Plan | Feminine Care | Severance and related benefit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.5 | 3.1 |
Restructuring Plan | Feminine Care | Asset impairment and accelerated depreciation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.7 | 0.7 |
Restructuring Plan | Feminine Care | Consulting, program management and other exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1.6 | $ 3.5 |
Restructuring Charges (Schedu36
Restructuring Charges (Schedule of Restructuring Activities and Related Accruals) (Details) - Restructuring Plan - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 16.7 | $ 13.7 | ||
Charge to Income | 6.9 | 37 | ||
Other | (0.7) | [1] | 0.6 | [2] |
Utilized - Cash Payments | (5.3) | (30.7) | ||
Utilized - Non-Cash | (1.7) | (3.9) | ||
Ending Balance | 15.9 | |||
Severance and termination related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 16.7 | 13.7 | ||
Charge to Income | 1.9 | 17 | ||
Other | (0.7) | [1] | 0.6 | [2] |
Utilized - Cash Payments | (2) | (14.6) | ||
Utilized - Non-Cash | 0 | 0 | ||
Ending Balance | 15.9 | |||
Asset impairment and accelerated depreciation | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Charge to Income | 1.7 | 3.9 | ||
Other | 0 | [1] | 0 | [2] |
Utilized - Cash Payments | 0 | 0 | ||
Utilized - Non-Cash | (1.7) | (3.9) | ||
Ending Balance | 0 | |||
Other related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Charge to Income | 3.3 | 16.1 | ||
Other | 0 | [1] | 0 | [2] |
Utilized - Cash Payments | (3.3) | (16.1) | ||
Utilized - Non-Cash | 0 | $ 0 | ||
Ending Balance | $ 0 | |||
[1] | Includes the impact of currency translation. | |||
[2] | Includes the impact of currency translation. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||
Income tax provision | $ 11.4 | $ 7 |
Earnings before income taxes | $ 44.9 | $ 30.7 |
Effective tax rate | 25.40% | 22.80% |
Impact of favorable tax adjustments on the effective tax rate | 4.00% | 4.00% |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Earnings per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average shares outstanding (in shares) | 57.7 | 59.7 |
Effective of dilutive securities, share options (in shares) | 0 | 0 |
Effective of dilutive securities, RSEs (in shares) | 0.4 | 0.2 |
Total dilutive securities (in shares) | 0.4 | 0.2 |
Diluted weighted-average shares outstanding (in shares) | 58.1 | 59.9 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards excluded from the calculation of diluted weighted-average shares outstanding (in shares) | 0.6 | 0.4 |
RSE awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards excluded from the calculation of diluted weighted-average shares outstanding (in shares) | 0.2 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,420.3 |
Cumulative translation adjustment | (9) |
Ending balance | 1,429.1 |
Wet Shave | |
Goodwill [Roll Forward] | |
Beginning balance | 965.3 |
Cumulative translation adjustment | (8) |
Ending balance | 957.3 |
Sun and Skin Care | |
Goodwill [Roll Forward] | |
Beginning balance | 178 |
Cumulative translation adjustment | 0 |
Ending balance | 195.8 |
Feminine Care | |
Goodwill [Roll Forward] | |
Beginning balance | 207.4 |
Cumulative translation adjustment | (1) |
Ending balance | 206.4 |
All Other | |
Goodwill [Roll Forward] | |
Beginning balance | 69.6 |
Cumulative translation adjustment | 0 |
Ending balance | 69.6 |
Bulldog | |
Goodwill [Roll Forward] | |
Acquisition of Bulldog | 17.8 |
Bulldog | Wet Shave | |
Goodwill [Roll Forward] | |
Acquisition of Bulldog | 0 |
Bulldog | Sun and Skin Care | |
Goodwill [Roll Forward] | |
Acquisition of Bulldog | 17.8 |
Bulldog | Feminine Care | |
Goodwill [Roll Forward] | |
Acquisition of Bulldog | 0 |
Bulldog | All Other | |
Goodwill [Roll Forward] | |
Acquisition of Bulldog | $ 0 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets (Schedule of Amortizable Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | $ 266.3 | $ 233.3 | |
Amortizable intangible assets, accumulated amortization | 164 | 161.6 | |
Amortizable intangible assets, net | 102.3 | 71.7 | |
Amortization of intangibles | 4 | $ 3.6 | |
Amortizable intangible assets, amortization expense, remainder of 2017 | 12 | ||
Amortizable intangible assets, amortization expense, fiscal 2018 | 8.5 | ||
Amortizable intangible assets, amortization expense, fiscal 2019 | 7.3 | ||
Amortizable intangible assets, amortization expense, fiscal 2020 | 6.6 | ||
Amortizable intangible assets, amortization expense, fiscal 2021 | 6 | ||
Amortizable intangible assets, amortization expense, fiscal 2022 | 5.9 | ||
Amortizable intangible assets, amortization expense, thereafter | 56 | ||
Trade names and brands | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 45.4 | 14.6 | |
Amortizable intangible assets, accumulated amortization | 12.5 | 12.2 | |
Amortizable intangible assets, net | 32.9 | 2.4 | |
Technology and patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 77 | 76.9 | |
Amortizable intangible assets, accumulated amortization | 70.3 | 69.8 | |
Amortizable intangible assets, net | 6.7 | 7.1 | |
Customer related and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 143.9 | 141.8 | |
Amortizable intangible assets, accumulated amortization | 81.2 | 79.6 | |
Amortizable intangible assets, net | 62.7 | $ 62.2 | |
Skintimate brand name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 0.4 | ||
Useful life assigned to Skintimate brand name | 20 years | ||
Bulldog | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets acquired during period | $ 4.4 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 1,286.2 | ||
Indefinite-lived intangible assets, decrease | (27.2) | ||
Wet Shave | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 223 | ||
Sun and Skin Care | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 499.8 | ||
Feminine Care | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 299.9 | ||
All Other | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 263.5 | ||
Skintimate brand name | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charge | $ 6.5 | $ 29.6 | |
Skintimate brand name | Wet Shave | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, decrease due to Skintimate conversion to amortizable intangible asset | (30.9) | ||
Bulldog | Sun and Skin Care | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets acquired during the period | $ 8.4 |
Supplemental Balance Sheet In43
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Inventories | ||
Raw materials and supplies | $ 54 | $ 50.8 |
Work in process | 50.3 | 43.9 |
Finished products | 234.7 | 214.5 |
Inventories | 339 | 309.2 |
Other Current Assets | ||
Miscellaneous receivables | 40.9 | 29.1 |
Prepaid expenses | 53.2 | 49 |
Value added tax collectible from customers | 23.9 | 22.4 |
Income taxes receivable | 25.2 | 39.3 |
Other | 8.5 | 3.4 |
Other current assets | 151.7 | 143.2 |
Property, Plant and Equipment | ||
Land | 27.2 | 27.8 |
Buildings | 141.6 | 146 |
Machinery and equipment | 904.7 | 913.7 |
Capitalized software costs | 38 | 38.4 |
Construction in progress | 43.2 | 36.2 |
Total gross property | 1,154.7 | 1,162.1 |
Accumulated depreciation | (682.1) | (676) |
Property, plant and equipment, net | 472.6 | 486.1 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 44.3 | 46.8 |
Accrued trade allowances | 24.4 | 30.1 |
Accrued salaries, vacations and incentive compensation | 26.4 | 56 |
Income taxes payable | 11.9 | 19.7 |
Returns reserve | 27.4 | 49.9 |
Restructuring reserve | 18.6 | 21.9 |
Value added tax payable | 25.6 | 25 |
Deferred compensation | 26.7 | 26.1 |
Other | 68.1 | 95.9 |
Other current liabilities | 273.4 | 371.4 |
Other Liabilities | ||
Pensions and other retirement benefits | 150 | 154.9 |
Deferred compensation | 57.8 | 58.6 |
Other non-current liabilities | 59.8 | 61.3 |
Other liabilities | $ 267.6 | $ 274.8 |
Debt (Details)
Debt (Details) € in Millions, $ in Millions | Oct. 20, 2016USD ($) | Oct. 20, 2016EUR (€) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | $ 1,680.5 | $ 1,826 | |||
Current maturities of long-term debt | 0 | 281.8 | |||
Long-term debt | 1,680.5 | 1,544.2 | |||
Notes payable | 18.3 | 18.5 | |||
Senior notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount | 0.8 | 0.8 | |||
Senior notes | Senior notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | [1] | 597.9 | 597.8 | ||
Unamortized debt issuance costs | 2.1 | 2.2 | |||
Senior notes | Senior notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | [1],[2] | 497 | 496.9 | ||
Unamortized debt issuance costs | 2.2 | 2.3 | |||
Domestic line of credit | US revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | 401 | 265 | |||
Foreign line of credit | Netherlands revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | 0 | 281.8 | |||
Debt repayment, revolving credit facility | $ 277 | € 251.3 | |||
Loans payable | Term loan | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | [1] | 184.6 | 184.5 | ||
Unamortized debt issuance costs | $ 0.4 | $ 0.5 | |||
[1] | At December 31, 2016, the balance for the senior notes due 2021, the senior notes due 2022 and the term loan are reflected net of debt issuance costs of $2.1, $2.2 and $0.4, respectively. At September 30, 2016, the balance for the senior notes due 2021, the senior notes due 2022 and the term loan are reflected net of debt issuance costs of $2.2, $2.3 and $0.5, respectively. | ||||
[2] | At December 31, 2016 and September 30, 2016, the balance for the senior notes due 2022 is reflected net of discount of $0.8 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension and Other Postretirement Benefits [Abstract] | ||
Service cost | $ 1.8 | $ 1.3 |
Interest cost | 3.8 | 5.5 |
Expected return on plan assets | (7.9) | (6.9) |
Amortization of unrecognized prior service cost | 0 | 0 |
Recognized net actuarial loss | 1.5 | 1 |
Settlement loss recognized | 0.3 | 0 |
Net periodic benefit (credit) cost | (0.5) | $ 0.9 |
Expected decrease in interest and service cost for fiscal 2017 | $ 4 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | May 31, 2015 | |
Shareholders' Equity [Abstract] | ||
Shares authorized for repurchase (in shares) | 10 | |
Repurchase of shares (in shares) | 0.8 | |
Repurchase of shares (in usd) | $ 58 | |
Remaining shares authorized for repurchase (in shares) | 4.7 | |
Shares withheld for taxes on share based compensation (in shares) | 0.1 | |
Cash dividends paid related to RSE award vests | $ 0.8 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (197.2) | $ (171.5) | |
OCI before reclassifications | [1] | (27.9) | (15) |
Reclassifications to earnings | 1 | 3.1 | |
Ending balance | (224.1) | (183.4) | |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (68.1) | (69.1) | |
OCI before reclassifications | [1] | (38.7) | (10.5) |
Reclassifications to earnings | 0 | 0 | |
Ending balance | (106.8) | (79.6) | |
Pension and Post-retirement Activity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (126.3) | (105.7) | |
OCI before reclassifications | [1] | 2.7 | (0.1) |
Reclassifications to earnings | 1.2 | 0.6 | |
Ending balance | (122.4) | (105.2) | |
Hedging Activity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2.8) | 3.3 | |
OCI before reclassifications | [1] | 8.1 | (4.4) |
Reclassifications to earnings | (0.2) | 2.5 | |
Ending balance | $ 5.1 | $ 1.4 | |
[1] | OCI is defined as other comprehensive income (loss). |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (Schedule of Reclassifications out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications to earnings | $ (1) | $ (3.1) | |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gains and losses on cash flow hedges, foreign exchange contracts, before tax | (0.3) | 3.6 | |
Gains and losses on cash flow hedges, foreign exchange contracts, tax | 0.1 | (1.1) | |
Gains and losses on cash flow hedges, foreign exchange contracts, after tax | (0.2) | 2.5 | |
Amortization of defined benefit pension and postretirement items, prior service cost, before tax | [1] | 0 | 0 |
Amortization of defined benefit pension and postretirement items, actuarial losses, before tax | [1] | 1.5 | 1 |
Amortization of defined benefit pension and postretirement items, settlement loss recognized, before tax | [1] | 0.3 | 0 |
Amortization of defined benefit pension and postretirement items, before tax | 1.8 | 1 | |
Amortization of defined benefit pension and postretirement items, tax | (0.6) | (0.4) | |
Amortization of defined benefit pension and postretirement items, after tax | 1.2 | 0.6 | |
Reclassifications to earnings | 1 | 3.1 | |
Other income, net | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gains and losses on cash flow hedges, foreign exchange contracts, before tax | $ (0.3) | $ 3.6 | |
[1] | These AOCI components are included in the computation of net periodic benefit (credit) cost. See Note 9 of Notes to Condensed Consolidated Financial Statements |
Financial Instruments and Ris49
Financial Instruments and Risk Management (Narrative) (Details) $ in Millions | 3 Months Ended | |||
Dec. 31, 2016USD ($)contracts | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($) | ||
Derivative [Line Items] | ||||
Carrying value of long-term debt | $ 1,680.5 | $ 1,826 | ||
Variable rate | ||||
Derivative [Line Items] | ||||
Variable rate debt outstanding | 585.6 | |||
Not designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Estimated fair value of derivative | $ 2.8 | (1.3) | ||
Open foreign currency contracts | contracts | 5 | |||
Notional value | $ 84.8 | |||
Cash flow hedge | Designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Estimated fair value of derivative | [1],[2] | 7.7 | (4.3) | |
Portion of unrealized gain on cash flow hedges in AOCI to be recognized over next twelve months | $ 7.4 | |||
Open foreign currency contracts | contracts | 72 | |||
Notional value | $ 132 | |||
Other income, net | Not designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Change in estimate fair value of foreign currency contracts | [3] | 2.6 | $ 0 | |
Fixed rate | ||||
Derivative [Line Items] | ||||
Fair value of long-term debt | 1,126.3 | 1,106.2 | ||
Carrying value of long-term debt | 1,094.9 | 1,094.7 | ||
Term loan | ||||
Derivative [Line Items] | ||||
Fair value of long-term debt | $ 185 | $ 185 | ||
[1] | All derivative assets are presented in Other current assets or Other assets. | |||
[2] | All derivative liabilities are presented in Other current liabilities or Other liabilities. | |||
[3] | Gain recognized in income was recorded in Other income, net. |
Financial Instruments and Ris50
Financial Instruments and Risk Management (Schedule of Derivative Instruments Designated as Cash Flow Hedges) (Details) - Designated as hedge - Cash flow hedge - FX contract - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | ||
Derivative [Line Items] | ||||
Estimated fair value of derivative | [1],[2] | $ 7.7 | $ (4.3) | |
Gain recognized in OCI | 11.7 | $ 0.8 | ||
Other income, net | ||||
Derivative [Line Items] | ||||
(Loss) gain reclassified from OCI into income | [3],[4] | $ (0.3) | $ 3.6 | |
[1] | All derivative assets are presented in Other current assets or Other assets. | |||
[2] | All derivative liabilities are presented in Other current liabilities or Other liabilities. | |||
[3] | (Loss) gain reclassified to income was recorded in Other income, net. | |||
[4] | Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and had been deemed highly effective in offsetting associated risk. |
Financial Instruments and Ris51
Financial Instruments and Risk Management (Schedule of Derivative Instruments Not Designated as Cash Flow Hedges) (Details) - Not designated as hedge - FX contract - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | ||
Derivative [Line Items] | ||||
Estimated fair value of derivative | $ 2.8 | $ (1.3) | ||
Other income, net | ||||
Derivative [Line Items] | ||||
Gain recognized in income | [1] | $ 2.6 | $ 0 | |
[1] | Gain recognized in income was recorded in Other income, net. |
Financial Instruments and Ris52
Financial Instruments and Risk Management (Schedule of Offsetting Assets and Liabilities) (Details) - FX contract - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Other current assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | $ 11.9 | $ 1.7 |
Gross amounts of recognized assets offset in the Balance Sheet | (0.5) | 0 |
Net amounts of assets presented in the Balance Sheet | 11.4 | 1.7 |
Other current liabilities | ||
Derivative [Line Items] | ||
Gross amounts of recognized liabilities | (0.9) | (6.2) |
Gross amounts of recognized liabilities offset in the Balance Sheet | 0 | 0.2 |
Net amounts of liabilities presented in the Balance Sheet | $ (0.9) | $ (6) |
Financial Instruments and Ris53
Financial Instruments and Risk Management (Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring fair value measurement - Level 2 - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Derivative [Line Items] | ||
Deferred compensation | $ (84.3) | $ (84.5) |
Net liabilities at estimated fair value | (73.8) | (90.1) |
FX contract | ||
Derivative [Line Items] | ||
Derivatives - foreign currency contracts | $ 10.5 | $ (5.6) |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Sales and Profitability) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||
Net sales | $ 485 | $ 495.1 | |
Gross profit | 228 | 227.5 | |
Spin costs | [1] | 0 | 7.5 |
Restructuring and related costs | [2] | 7.2 | 18.5 |
Amortization of intangibles | 4 | 3.6 | |
Interest and other expense, net | 15.5 | 15.3 | |
Earnings before income taxes | 44.9 | 30.7 | |
Wet Shave | |||
Segment Reporting Information [Line Items] | |||
Net sales | 306.2 | 316.3 | |
Gross profit | 72 | 66.8 | |
Sun and Skin Care | |||
Segment Reporting Information [Line Items] | |||
Net sales | 57.6 | 53.5 | |
Gross profit | 0.8 | 1.7 | |
Feminine Care | |||
Segment Reporting Information [Line Items] | |||
Net sales | 89.1 | 92.5 | |
Gross profit | 8.3 | 17.6 | |
All Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 32.1 | 32.8 | |
Gross profit | 6.9 | 7.2 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Gross profit | 88 | 93.3 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
General corporate and other expenses | 16.4 | 17.7 | |
Spinoff | Selling, general and administrative expense | New Energizer | |||
Segment Reporting Information [Line Items] | |||
Spin costs | 7.3 | ||
Spinoff | Cost of products sold | New Energizer | |||
Segment Reporting Information [Line Items] | |||
Spin costs | 0.2 | ||
Obsolescence | Restructuring Plan | Cost of products sold | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related costs | $ 0.3 | $ 0 | |
[1] | Includes pre-tax Selling, general and administrative expense of $7.3 and pre-tax Cost of products sold of $0.2 for the three months ended December 31, 2015 related to the separation of the Household Products business in July 2015. | ||
[2] | Includes pre-tax Cost of products sold of $0.3 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring for the three months ended December 31, 2016. |
Segment Data (Schedule of Suppl
Segment Data (Schedule of Supplemental Product Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 485 | $ 495.1 |
Razors and blades | ||
Revenue from External Customer [Line Items] | ||
Net sales | 271.3 | 274.2 |
Tampons, pads and liners | ||
Revenue from External Customer [Line Items] | ||
Net sales | 89.1 | 92.5 |
Sun care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 37.7 | 36.9 |
Infant care and other | ||
Revenue from External Customer [Line Items] | ||
Net sales | 32.1 | 32.7 |
Shaving gels and creams | ||
Revenue from External Customer [Line Items] | ||
Net sales | 34.9 | 42.2 |
Skin care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 19.9 | $ 16.6 |
Guarantor and Non-Guarantor F56
Guarantor and Non-Guarantor Financial Information (Schedule of Condensed Consolidating Statements of Earnings and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 485 | $ 495.1 |
Cost of products sold | 257 | 267.6 |
Gross profit | 228 | 227.5 |
Selling, general and administrative expense | 93.8 | 100.4 |
Advertising and sales promotion expense | 50.6 | 46.6 |
Research and development expense | 16.3 | 16 |
Restructuring charges | 6.9 | 18.5 |
Interest expense associated with debt | 17.4 | 17.7 |
Other income, net | (1.9) | (2.4) |
Intercompany service fees | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 |
Earnings before income taxes | 44.9 | 30.7 |
Income tax (benefit) provision | 11.4 | 7 |
Net earnings | 33.5 | 23.7 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | 33.5 | 23.7 |
Other comprehensive loss, net of tax | (26.9) | (11.9) |
Total comprehensive income | 6.6 | 11.8 |
Eliminations | ||
Income Statement [Abstract] | ||
Net sales | (90.2) | (111.2) |
Cost of products sold | (90.2) | (112.1) |
Gross profit | 0 | 0.9 |
Selling, general and administrative expense | 0 | 0 |
Advertising and sales promotion expense | 0 | (0.1) |
Research and development expense | 0 | 0 |
Restructuring charges | 0 | 0 |
Interest expense associated with debt | 0 | 0 |
Other income, net | 0 | 0 |
Intercompany service fees | 0 | 0 |
Equity in earnings of subsidiaries | 63 | 48.2 |
Earnings before income taxes | (63) | (47.2) |
Income tax (benefit) provision | 0 | 1 |
Net earnings | (63) | (48.2) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | (63) | (48.2) |
Other comprehensive loss, net of tax | 31 | 13.4 |
Total comprehensive income | (32) | (34.8) |
Parent | ||
Income Statement [Abstract] | ||
Net sales | 0 | 0 |
Cost of products sold | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expense | 0 | 3.1 |
Advertising and sales promotion expense | 0 | 0 |
Research and development expense | 0 | 0 |
Restructuring charges | 0 | 0 |
Interest expense associated with debt | 13.4 | 16.2 |
Other income, net | 0 | 0 |
Intercompany service fees | 0 | 0 |
Equity in earnings of subsidiaries | (41.9) | (35.8) |
Earnings before income taxes | 28.5 | 16.5 |
Income tax (benefit) provision | (5) | (7.2) |
Net earnings | 33.5 | 23.7 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | 33.5 | 23.7 |
Other comprehensive loss, net of tax | (26.9) | (11.9) |
Total comprehensive income | 6.6 | 11.8 |
Guarantors | ||
Income Statement [Abstract] | ||
Net sales | 342.9 | 336.8 |
Cost of products sold | 204.5 | 204.9 |
Gross profit | 138.4 | 131.9 |
Selling, general and administrative expense | 58.7 | 60.7 |
Advertising and sales promotion expense | 30.2 | 27.5 |
Research and development expense | 16 | 15.6 |
Restructuring charges | 2.7 | 4.7 |
Interest expense associated with debt | 3.3 | 0 |
Other income, net | 0.4 | (2.4) |
Intercompany service fees | (4.4) | (5.5) |
Equity in earnings of subsidiaries | (21.1) | (12.4) |
Earnings before income taxes | 52.6 | 43.7 |
Income tax (benefit) provision | 10.9 | 10 |
Net earnings | 41.7 | 33.7 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | 41.7 | 33.7 |
Other comprehensive loss, net of tax | (3.2) | (1.9) |
Total comprehensive income | 38.5 | 31.8 |
Non-Guarantors | ||
Income Statement [Abstract] | ||
Net sales | 232.3 | 269.5 |
Cost of products sold | 142.7 | 174.8 |
Gross profit | 89.6 | 94.7 |
Selling, general and administrative expense | 35.1 | 36.6 |
Advertising and sales promotion expense | 20.4 | 19.2 |
Research and development expense | 0.3 | 0.4 |
Restructuring charges | 4.2 | 13.8 |
Interest expense associated with debt | 0.7 | 1.5 |
Other income, net | (2.3) | 0 |
Intercompany service fees | 4.4 | 5.5 |
Equity in earnings of subsidiaries | 0 | 0 |
Earnings before income taxes | 26.8 | 17.7 |
Income tax (benefit) provision | 5.5 | 3.2 |
Net earnings | 21.3 | 14.5 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net earnings | 21.3 | 14.5 |
Other comprehensive loss, net of tax | (27.8) | (11.5) |
Total comprehensive income | $ (6.5) | $ 3 |
Guarantor and Non-Guarantor F57
Guarantor and Non-Guarantor Financial Information (Schedule of Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | ||
Current assets | ||||||
Cash and cash equivalents | $ 418.5 | $ 738.9 | $ 694.2 | $ 712.1 | ||
Trade receivables, net | 228.4 | 260.7 | ||||
Inventories | 339 | 309.2 | ||||
Other current assets | 151.7 | 143.2 | ||||
Total current assets | 1,137.6 | 1,452 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany receivables, net | 0 | [1] | 0 | [2] | ||
Intercompany notes receivable | 0 | [1] | 0 | [2] | ||
Property, plant and equipment, net | 472.6 | 486.1 | ||||
Goodwill | 1,429.1 | 1,420.3 | ||||
Other intangible assets, net | 1,388.5 | 1,385.1 | ||||
Other assets | 27.4 | 28 | ||||
Total assets | 4,455.2 | 4,771.5 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 473.3 | 868.2 | ||||
Intercompany payables, net | 0 | [1] | 0 | [2] | ||
Intercompany notes payable | 0 | [1] | 0 | [2] | ||
Long-term debt | 1,680.5 | 1,544.2 | ||||
Deferred income tax liabilities | 255.8 | 255.3 | ||||
Other liabilities | 267.6 | 274.8 | ||||
Total liabilities | 2,677.2 | 2,942.5 | ||||
Shareholders' equity | ||||||
Total shareholders' equity | 1,778 | 1,829 | ||||
Total liabilities and shareholders' equity | 4,455.2 | 4,771.5 | ||||
Eliminations | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Trade receivables, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Investment in subsidiaries | (4,342.1) | (4,308.7) | ||||
Intercompany receivables, net | (621.7) | [1] | (541.1) | [2] | ||
Intercompany notes receivable | (1.9) | [1] | (1.9) | [2] | ||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Total assets | (4,965.7) | (4,851.7) | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 0 | 0 | ||||
Intercompany payables, net | (621.7) | [1] | (541.1) | [2] | ||
Intercompany notes payable | (1.9) | [1] | (1.9) | [2] | ||
Long-term debt | 0 | 0 | ||||
Deferred income tax liabilities | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | (623.6) | (543) | ||||
Shareholders' equity | ||||||
Total shareholders' equity | (4,342.1) | (4,308.7) | ||||
Total liabilities and shareholders' equity | (4,965.7) | (4,851.7) | ||||
Parent | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Trade receivables, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Investment in subsidiaries | 3,500.2 | 3,483.7 | ||||
Intercompany receivables, net | 0 | [1] | 0 | [2] | ||
Intercompany notes receivable | 0 | [1] | 0 | [2] | ||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Other assets | 1.8 | 2 | ||||
Total assets | 3,502 | 3,485.7 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 7.8 | 21.4 | ||||
Intercompany payables, net | 621.7 | [1] | 541.1 | [2] | ||
Intercompany notes payable | 0 | [1] | 0 | [2] | ||
Long-term debt | 1,094.5 | 1,094.2 | ||||
Deferred income tax liabilities | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | 1,724 | 1,656.7 | ||||
Shareholders' equity | ||||||
Total shareholders' equity | 1,778 | 1,829 | ||||
Total liabilities and shareholders' equity | 3,502 | 3,485.7 | ||||
Guarantors | ||||||
Current assets | ||||||
Cash and cash equivalents | 5.1 | 5.8 | 5.6 | 2.9 | ||
Trade receivables, net | 102.2 | 108.9 | ||||
Inventories | 210.8 | 187.7 | ||||
Other current assets | 41.8 | 43.7 | ||||
Total current assets | 359.9 | 346.1 | ||||
Investment in subsidiaries | 841.9 | 825 | ||||
Intercompany receivables, net | 579 | [1] | 487.6 | [2] | ||
Intercompany notes receivable | 1.9 | [1] | 1.9 | [2] | ||
Property, plant and equipment, net | 341.8 | 343.8 | ||||
Goodwill | 1,061.9 | 1,061.9 | ||||
Other intangible assets, net | 1,231.5 | 1,235.1 | ||||
Other assets | 0.2 | 0.1 | ||||
Total assets | 4,418.1 | 4,301.5 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 236.3 | 288.4 | ||||
Intercompany payables, net | 0 | [1] | 0 | [2] | ||
Intercompany notes payable | 0 | [1] | 0 | [2] | ||
Long-term debt | 586 | 450 | ||||
Deferred income tax liabilities | 229.7 | 232.4 | ||||
Other liabilities | 231.6 | 236.3 | ||||
Total liabilities | 1,283.6 | 1,207.1 | ||||
Shareholders' equity | ||||||
Total shareholders' equity | 3,134.5 | 3,094.4 | ||||
Total liabilities and shareholders' equity | 4,418.1 | 4,301.5 | ||||
Non-Guarantors | ||||||
Current assets | ||||||
Cash and cash equivalents | 413.4 | 733.1 | $ 688.6 | $ 709.2 | ||
Trade receivables, net | 126.2 | 151.8 | ||||
Inventories | 128.2 | 121.5 | ||||
Other current assets | 109.9 | 99.5 | ||||
Total current assets | 777.7 | 1,105.9 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany receivables, net | 42.7 | [1] | 53.5 | [2] | ||
Intercompany notes receivable | 0 | [1] | 0 | [2] | ||
Property, plant and equipment, net | 130.8 | 142.3 | ||||
Goodwill | 367.2 | 358.4 | ||||
Other intangible assets, net | 157 | 150 | ||||
Other assets | 25.4 | 25.9 | ||||
Total assets | 1,500.8 | 1,836 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 229.2 | 558.4 | ||||
Intercompany payables, net | 0 | [1] | 0 | [2] | ||
Intercompany notes payable | 1.9 | [1] | 1.9 | [2] | ||
Long-term debt | 0 | 0 | ||||
Deferred income tax liabilities | 26.1 | 22.9 | ||||
Other liabilities | 36 | 38.5 | ||||
Total liabilities | 293.2 | 621.7 | ||||
Shareholders' equity | ||||||
Total shareholders' equity | 1,207.6 | 1,214.3 | ||||
Total liabilities and shareholders' equity | $ 1,500.8 | $ 1,836 | ||||
[1] | Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity and other intercompany activities in the normal course of business. | |||||
[2] | Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity and other intercompany activities in the normal course of business. |
Guarantor and Non-Guarantor F58
Guarantor and Non-Guarantor Financial Information (Schedule of Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | $ (59) | $ (58.7) |
Cash Flow from Investing Activities | ||
Capital expenditures | (13.7) | (14.5) |
Acquisitions, net of cash acquired | (34) | 0 |
Payment for equity contributions | 0 | |
Net cash used by investing activities | (47.7) | (14.5) |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 146 | 347.8 |
Cash payments on debt with original maturities greater than 90 days | (287) | (203) |
Net decrease in debt with original maturities of 90 days or less | (0.4) | (2.2) |
Common shares purchased | (58) | (78.9) |
Proceeds for equity contributions | 0 | |
Net cash (used by) from financing activities | (199.4) | 63.7 |
Effect of exchange rate changes on cash | (14.3) | (8.4) |
Net decrease in cash and cash equivalents | (320.4) | (17.9) |
Cash and cash equivalents, beginning of period | 738.9 | 712.1 |
Cash and cash equivalents, end of period | 418.5 | 694.2 |
Parent | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | 58 | 78.9 |
Cash Flow from Investing Activities | ||
Capital expenditures | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Payment for equity contributions | 0 | |
Net cash used by investing activities | 0 | 0 |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 0 | 0 |
Cash payments on debt with original maturities greater than 90 days | 0 | 0 |
Net decrease in debt with original maturities of 90 days or less | 0 | 0 |
Common shares purchased | (58) | (78.9) |
Proceeds for equity contributions | 0 | |
Net cash (used by) from financing activities | (58) | (78.9) |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Guarantors | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | (124.8) | (123.7) |
Cash Flow from Investing Activities | ||
Capital expenditures | (11) | (13) |
Acquisitions, net of cash acquired | 0 | |
Payment for equity contributions | (0.2) | |
Net cash used by investing activities | (11) | (13.2) |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 146 | 345 |
Cash payments on debt with original maturities greater than 90 days | (10) | (203) |
Net decrease in debt with original maturities of 90 days or less | (0.9) | (2.4) |
Common shares purchased | 0 | 0 |
Proceeds for equity contributions | 0 | |
Net cash (used by) from financing activities | 135.1 | 139.6 |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | (0.7) | 2.7 |
Cash and cash equivalents, beginning of period | 5.8 | 2.9 |
Cash and cash equivalents, end of period | 5.1 | 5.6 |
Non-Guarantors | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | 7.8 | (13.9) |
Cash Flow from Investing Activities | ||
Capital expenditures | (2.7) | (1.5) |
Acquisitions, net of cash acquired | (34) | |
Payment for equity contributions | 0 | |
Net cash used by investing activities | (36.7) | (1.5) |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 0 | 2.8 |
Cash payments on debt with original maturities greater than 90 days | (277) | 0 |
Net decrease in debt with original maturities of 90 days or less | 0.5 | 0.2 |
Common shares purchased | 0 | 0 |
Proceeds for equity contributions | 0.2 | |
Net cash (used by) from financing activities | (276.5) | 3.2 |
Effect of exchange rate changes on cash | (14.3) | (8.4) |
Net decrease in cash and cash equivalents | (319.7) | (20.6) |
Cash and cash equivalents, beginning of period | 733.1 | 709.2 |
Cash and cash equivalents, end of period | 413.4 | 688.6 |
Eliminations | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | 0 | 0 |
Cash Flow from Investing Activities | ||
Capital expenditures | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Payment for equity contributions | 0.2 | |
Net cash used by investing activities | 0 | 0.2 |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 0 | 0 |
Cash payments on debt with original maturities greater than 90 days | 0 | 0 |
Net decrease in debt with original maturities of 90 days or less | 0 | 0 |
Common shares purchased | 0 | 0 |
Proceeds for equity contributions | (0.2) | |
Net cash (used by) from financing activities | 0 | (0.2) |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |