Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
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, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 54,117,516 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 457.1 | $ 468.3 |
Cost of products sold | 263.6 | 269 |
Gross profit | 193.5 | 199.3 |
Selling, general and administrative expense | 87.3 | 97.9 |
Advertising and sales promotion expense | 51.6 | 49 |
Research and development expense | 12.6 | 16.1 |
Gain on sale of Playtex gloves | 0 | (15.9) |
Restructuring charges | 17.1 | 0 |
Interest expense associated with debt | 16 | 17.8 |
Other expense, net | 1.3 | 1.3 |
Earnings before income taxes | 7.6 | 33.1 |
Income tax provision | 8 | 26.4 |
Net (loss) earnings | $ (0.4) | $ 6.7 |
Basic net (loss) earnings per share | $ (0.01) | $ 0.12 |
Diluted net (loss) earnings per share | $ (0.01) | $ 0.12 |
Condensed Consolidated Statements of Comprehensive Income | ||
Net (loss) earnings | $ (0.4) | $ 6.7 |
Other comprehensive (loss) income, net of tax | ||
Foreign currency translation adjustments | (10.8) | 9.5 |
Pension and postretirement activity, net of tax | 0 | 0.4 |
Deferred (loss) gain on hedging activity, net of tax | (1.3) | 0.2 |
Total other comprehensive (loss) income, net of tax | (12.1) | 10.1 |
Total comprehensive (loss) income | $ (12.5) | $ 16.8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Pension and postretirement activity, tax | $ 0.1 | $ 0.3 |
Deferred (loss) gain on hedging activity, tax | $ (0.7) | $ 0.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 239.9 | $ 266.4 |
Trade receivables, less allowance for doubtful accounts | 163.6 | 226.5 |
Inventories | 367.3 | 329.5 |
Other current assets | 128.8 | 128.8 |
Total current assets | 899.6 | 951.2 |
Property, plant and equipment, net | 410.4 | 424.1 |
Goodwill | 1,446.2 | 1,450.8 |
Other intangible assets, net | 1,092.8 | 1,099 |
Other assets | 32.3 | 28.2 |
Total assets | 3,881.3 | 3,953.3 |
Current liabilities | ||
Current maturities of long-term debt | 185 | 184.9 |
Notes payable | 10.1 | 8.2 |
Accounts payable | 207.3 | 238.4 |
Other current liabilities | 212.6 | 285.5 |
Total current liabilities | 615 | 717 |
Long-term debt | 1,136 | 1,103.8 |
Deferred income tax liabilities | 175.7 | 176.1 |
Other liabilities | 215.3 | 211.8 |
Total liabilities | 2,142 | 2,208.7 |
Shareholders’ equity | ||
Preferred shares | 0 | 0 |
Common shares | 0.7 | 0.7 |
Additional paid-in capital | 1,625 | 1,628.3 |
Retained earnings | 1,086.6 | 1,083.1 |
Common shares in treasury at cost | (812.6) | (819.2) |
Accumulated other comprehensive loss | (160.4) | (148.3) |
Total shareholders’ equity | 1,739.3 | 1,744.6 |
Total liabilities and shareholders’ equity | $ 3,881.3 | $ 3,953.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5.7 | $ 6 |
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) | 54,116,990 | 54,040,386 |
Treasury shares (in shares) | 11,134,999 | 11,211,603 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow from Operating Activities | ||
Net (loss) earnings | $ (0.4) | $ 6.7 |
Depreciation and amortization | 22.1 | 24.8 |
Share-based compensation expense | 4.9 | 4.8 |
Loss (gain) on sale of assets | 0.7 | (13.9) |
Deferred income taxes | (0.1) | (28.9) |
Other, net | 5.1 | (4.8) |
Changes in operating assets and liabilities | (78.7) | (12.8) |
Net cash used by operating activities | (46.4) | (24.1) |
Cash Flow from Investing Activities | ||
Capital expenditures | (9.4) | (11.6) |
Playtex gloves sale | 0 | 19 |
Proceeds from sale of assets | 4 | 2.1 |
Collection of deferred purchase price on accounts receivable sold | 2.5 | 1.7 |
Net cash (used by) from investing activities | (2.9) | 11.2 |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 137 | 253 |
Cash payments on debt with original maturities greater than 90 days | (105) | (100) |
Net decrease in debt with original maturities of 90 days or less | (0.9) | (1.3) |
Common shares purchased | 0 | (115.2) |
Net financing inflow (outflow) from the Accounts Receivable Facility | (5.1) | 1.4 |
Employee shares withheld for taxes | (1.5) | (2) |
Net cash from financing activities | 24.5 | 35.9 |
Effect of exchange rate changes on cash | (1.7) | 4 |
Net (decrease) increase in cash and cash equivalents | (26.5) | 27 |
Cash and cash equivalents, beginning of period | 266.4 | 502.9 |
Cash and cash equivalents, end of period | $ 239.9 | $ 529.9 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Shareholders' Equity Statement - USD ($) $ in Millions | Total | Common shares | Treasury shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares (in shares) | (9,200,000) | |||||
Common shares, issued (in shares) | 65,200,000 | |||||
Total shareholders' equity at Sep. 30, 2017 | $ 1,741.7 | $ 0.7 | $ (703.9) | $ 1,623.4 | $ 952.9 | $ (131.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | 6.7 | 6.7 | ||||
Foreign currency translation adjustments | 9.5 | 9.5 | ||||
Pension and postretirement activity, net of tax | 0.4 | (0.4) | ||||
Deferred (loss) gain on hedging activity, net of tax | 0.2 | 0.2 | ||||
Repurchase of shares (in shares) | (2,000,000) | |||||
Repurchase of shares (in usd) | (115.2) | $ (115.2) | ||||
Activity under share plans (in shares) | 100,000 | |||||
Activity under share plans (in usd) | (12.5) | $ (5.6) | (2.7) | (9.6) | ||
Total shareholders' equity at Dec. 31, 2017 | $ 1,655.8 | $ 0.7 | $ (813.5) | 1,620.7 | 969.2 | (121.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares (in shares) | (11,100,000) | |||||
Common shares, issued (in shares) | 65,200,000 | |||||
Treasury shares (in shares) | 11,211,603 | (11,200,000) | ||||
Common shares, issued (in shares) | 65,251,989 | 65,200,000 | ||||
Total shareholders' equity at Sep. 30, 2018 | $ 1,744.6 | $ 0.7 | $ (819.2) | 1,628.3 | 1,083.1 | (148.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | (0.4) | (0.4) | ||||
Foreign currency translation adjustments | (10.8) | (10.8) | ||||
Pension and postretirement activity, net of tax | 0 | 0 | ||||
Deferred (loss) gain on hedging activity, net of tax | (1.3) | (1.3) | ||||
Activity under share plans (in shares) | 100,000 | |||||
Activity under share plans (in usd) | (3.3) | $ (6.6) | (3.3) | 0 | ||
Total shareholders' equity at Dec. 31, 2018 | $ 1,739.3 | $ 0.7 | $ (812.6) | $ 1,625 | 1,086.6 | $ (160.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares (in shares) | 11,134,999 | (11,100,000) | ||||
Common shares, issued (in shares) | 65,251,989 | 65,200,000 | ||||
Impact of ASU 2016-16 | Accounting standards update 2016-06 | $ 3.9 | $ 3.9 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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, Jack Black® and Bulldog® men’s skin care products, Wet Ones® wipes, and, until its sale in October 2017, the Playtex® household gloves business. • Feminine Care includes tampons, pads, and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree®, and o.b.® brands. • All Other includes infant care products, such as bottles, cups, and pacifiers, sold 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 19, 2018. Recently Adopted Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. During 2016, the FASB issued three ASUs clarifying the revenue recognition implementation guidance on various topics included within the original ASU. The Company adopted the ASU for revenue recognition beginning October 1, 2018 using the modified retrospective method. Revenues are primarily generated from the sale of finished products to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks, and rewards transfer. As a result, the adoption of the ASU did not have a material impact on the timing of revenue recognition. The adoption resulted in the recognition of a $5.3 inventory return asset included in Miscellaneous receivables on the Condensed Consolidated Balance Sheet as of October 1, 2018 with an offsetting increase to the returns reserve in Other current liabilities. The adoption resulted in the recognition of a $1.3 liability for advanced payments from customers in Other current liabilities with a corresponding increase to Trade receivables to reclassify advanced payments from customers from contra-Trade receivables as of October 1, 2018. Refer to Note 2 in the Notes to the Condensed Consolidated Financial Statements for further discussion. In August 2016, the FASB issued an ASU intended to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on specific cash flow issues, including debt prepayment or debt extinguishment costs, the sale of accounts receivable, contingent consideration payments on business combinations, proceeds from the settlement of insurance claims, and distributions received from equity method investees, among others. The Company adopted the ASU beginning October 1, 2018. The Company noted that the adoption of the ASU resulted in the reclassification of approximately $2.5 and $1.7 in operating cash inflows for the quarters ended December 31, 2018 and 2017, respectively, associated with the $150 uncommitted master accounts receivable purchase agreement entered into on September 15, 2017 with The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the purchaser (the “Accounts Receivable Facility”) to investing cash inflows in the Consolidated Statement of Cash Flows. In October 2016, the FASB issued an ASU intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory, such as intellectual property and property, plant, and equipment, when the transfer occurs. The Company adopted the standard beginning October 1, 2018. The impact of the adoption of the ASU resulted in the recognition of a deferred tax asset and a credit to retained earnings of $3.9 . In January 2017, the FASB issued an ASU 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 set forth 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 similarly 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 Company adopted the ASU beginning October 1, 2018. The impact of the ASU will be dependent upon the nature of any future acquisitions or dispositions made by the Company. In March 2017, the FASB issued an ASU intended to improve the presentation of net periodic pension and postretirement benefit cost. The amendment changes these requirements so that only the service cost component is recorded in the same line item as other compensation costs for the applicable employees, and all other components of net periodic pension and postretirement benefit cost are recorded on a separate line item outside of income from operations. The amendments also specify that only the service cost component is eligible for capitalization. The Company adopted the ASU as of October 1, 2018, applied the ASU retrospectively for the presentation of the cost components, and applied the ASU prospectively for the capitalization of the service cost component. The adoption impacted the Consolidated Statement of Operations for the quarter ended December 31, 2017 and resulted in a reclassification that increased Cost of products sold, Selling, general and administrative expense (“SG&A”) and Other income, net by $1.0 , $0.7 , and $1.7 , respectively. In May 2017, the FASB issued an ASU that clarifies the scope of accounting for modifications of share-based payment awards. The amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted the ASU beginning October 1, 2018 and noted that the impact on its financial statements was not material. Recently Issued Accounting Pronouncements. In February 2016, the FASB issued an ASU which amends existing lease accounting guidance to require recognition of lease assets and lease liabilities on the balance sheet for leases previously classified as operating leases. Additionally, this update requires qualitative disclosure along with specific quantitative disclosures. Lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The update will be effective for the Company beginning October 1, 2019, with early adoption permitted. The Company has begun assessing the impact of the standard including identification of the lease portfolio and business process changes required to correctly apply the guidance. The Company does not expect to early adopt this guidance and is in the process of evaluating its impact on the financial statements; however, the Company believes the primary impacts will be a material increase in both assets and liabilities to include operating leases on the Consolidated Balance Sheets. No other new accounting pronouncement issued or effective during the fiscal 2019 which was not previously disclosed in our Annual Report on Form 10-K filed with the SEC on November 19, 2018 had or is expected to have a material impact on our consolidated financial statements or related disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | Revenue Recognition On October 1, 2018, the Company adopted ASU 2014-09 which provided guidance for accounting for revenue from contracts with customers. The Company adopted the standard beginning October 1, 2018 using the modified retrospective method and applied the standard to contracts not completed at the adoption date. No adjustment to retained earnings was required on October 1, 2018. The adoption resulted in changes to how the Company reflects returns and advanced payments received from customers on the Consolidated Balance Sheet. Results for periods ending after October 1, 2018 are recognized and presented in accordance with the new standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the prior accounting guidance. Other impacts related to the adoption of the standard were not material to the Consolidated Financial Statements. Refer to Note 15 in the Notes to the Condensed Consolidated Financial Statements for the Company’s disaggregation of revenue by operating segments and products. Practical Expedients The Company elected to apply the following practical expedients when adopting ASU 2014-09: • Accounting for shipping and handling costs that occur before the customer has obtained control of the goods as a fulfillment activity (i.e., expense) instead of as a promised service. • Performance obligations are completed at a point in time which is less than 12 months from when the costs to obtain the contract are incurred. As such, the Company will continue to expense any costs to obtain a contract. Principal Revenue Streams and Significant Judgments Our principal revenue streams can be distinguished into: i) sale of personal care products primarily through retailers in North America; ii) sale of personal care products through a combination of retailers and distributors internationally; and iii) production and sale of private brands products that are made to the specifications of customers. Performance Obligations The Company’s revenue is from the sale of its products. Revenue is recognized when the customer obtains control of the goods which occurs when the ability to use and obtain benefits from the goods are passed to the customer, most commonly upon the delivery of goods to the customer. Discounts are offered to customers for early payment and an estimate of the discounts is recorded as a reduction of Net sales in the same period as the sale. The Company’s standard sales terms are final and returns or exchanges are not permitted with the exception of end of season returns for Sun Care products. Reserves are established and recorded in cases where the right of return does exist for a particular sale. The Company assesses the goods promised in its customers’ purchase orders and identifies a performance obligation to transfer goods (or bundle of goods) that is distinct. To identify the performance obligations, the Company considers all the goods promised, whether explicitly stated or implied based on customary business practices. The Company’s purchase orders are short term in nature, lasting less than one year and contain a single delivery element. For a purchase order that has more than one performance obligation, the Company allocates the total consideration to each distinct performance obligation on a relative standalone selling price basis. The Company does not exclude variable consideration in determining the remaining value of performance obligations. Significant Judgments Under certain circumstances, the Company allows customers to return sun care products that have not been sold by the end of the sun care season, which is normal practice in the sun care industry. The Company records sales at the time that control of goods pass to the customer. The terms of these sales vary but, in all instances, the following conditions are met: (1) the sales arrangement is evidenced by purchase orders submitted by customers; (2) the selling price is fixed or determinable; (3) title to the product has transferred; (4) there is an obligation to pay at a specified date without any additional conditions or actions required by the Company; and (5) collectability is reasonably assured. Simultaneous with the sale, the Company reduces sales and cost of sales and reserves amounts on its Consolidated Balance Sheet for anticipated returns based upon an estimated return level in accordance with GAAP. Customers are required to pay for the sun care product purchased during the season under the required terms. The timing of returns of sun care products can vary in different regions based on climate and other factors. However, the majority of returns occur in the US from September through January following the summer sun care season. The Company estimates the level of sun care returns using a variety of inputs including historical experience, consumption trends during the sun care season, obsolescence factors, including expiration dates, and inventory positions at key retailers as the sun care season progresses. The Company monitors shipment activity and inventory levels at key retailers during the season in an effort to more accurately estimate potential returns. This allows the Company to manage shipment activity to its customers, especially in the latter stages of the sun care season, to reduce the potential for returned product. The Company also allows for returns of other products under limited circumstances. Non-Sun Care returns are evaluated each period based on communications with customers and other known issues as of period end. The Company had a reserve for returns of $31.3 and $58.6 at December 31, 2018 and September 30, 2018, respectively. The adoption of ASU 2014-09 required changes in the presentation of returns on the Condensed Consolidated Balance Sheet. The ASU indicated that a return asset should be recognized for returns expected to be resold, measured at the carrying amount of goods at the time of sale, less the expected costs to recover the goods and any expected reduction in value. The Company had an inventory return asset of $5.3 as of the adoption date. The Company has recorded an inventory return asset of $1.7 as of December 31, 2018. The recognition of an inventory return asset resulted in a corresponding increase to the reserve for returns as of December 31, 2018. The inventory return asset and the reserve for returns are included in Other current assets and Other current liabilities, respectively, on the Condensed Consolidated Balance Sheet. In addition, the Company offers a variety of programs, such as consumer coupons and rebate programs, primarily to its retail customers, designed to promote sales of its products. Such programs require periodic payments and allowances based on estimated results of specific programs and are recorded as a reduction to Net sales. The Company accrues, at the time of sale, the estimated total payments and allowances associated with each transaction. Additionally, the Company offers programs directly to consumers to promote the sale of its products. Promotions which reduce the ultimate consumer sale prices are recorded as a reduction of Net sales at the time the promotional offer is made using estimated redemption and participation levels. Taxes the Company collects on behalf of governmental authorities, which are generally included in the price to the customer, are also recorded as a reduction of Net sales. The Company continually assesses the adequacy of accruals for customer and consumer promotional program costs not yet paid. To the extent total program payments differ from estimates, adjustments may be necessary. Historically, these adjustments have not been material. Contract Balances The timing of revenue recognition is based on the customer’s receipt of goods. Standard payment terms with customers require payment after goods have been delivered and risk of ownership has transferred to the customer. The Company has contract liabilities as a result of advanced payments received from certain customers before goods have been delivered and all performance obligations have been completed. Contract liabilities as of the adoption date were $1.3 . Contract liabilities were $0.8 at December 31, 2018 and were classified within Other current liabilities on our Consolidated Balance Sheets. Of the amount deferred, substantially all will be recognized within a year, with the significant majority to be captured within a quarter following deferral. Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts, and other currently available information. |
Business Combinations and Dives
Business Combinations and Divestiture | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations and Divestiture | Business Combinations and Divestitures Jack Black, L.L.C. On March 1, 2018, the Company completed the acquisition of Jack Black, L.L.C. (“Jack Black”), a men’s luxury skincare products company based in the U.S., for $90.2 , net of cash acquired. The acquisition creates opportunities to expand the Company’s personal care portfolio into a growing global category where it can leverage its international geographic footprint. The acquisition was financed through available operating cash. The Company has recognized the assets and liabilities of Jack Black based on 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. The Company completed the final fair value determination during the fourth quarter of fiscal 2018. At March 1, 2018, the opening balance sheet for Jack Black included net assets acquired of $93.9 and consisted of working capital and other net assets of $11.9 (including cash of $3.7 ), other intangible assets of $47.7 and goodwill of $34.3 , representing the value of expansion into new markets. Goodwill is expected to be deductible for tax purposes. The intangible assets acquired consisted primarily of the Jack Black trade name, customer relationships and product formulations with a weighted average useful life of 17 years . All assets are included in the Company’s Sun and Skin Care segment. The Company noted the revenues and net earnings of Jack Black from the beginning of the period through the acquisition date were not material relative to the total revenues and net earnings of the Company during fiscal 2018. Acquisition and integration costs related to Jack Black totaling $0.5 in the three months ended December 31, 2018, were included in SG&A. Sale of Playtex Gloves Business On October 3, 2017, the Company entered into an agreement to sell its Playtex gloves business to a household products company (the “Acquirer”) for $19.0 to allow the Company to better focus and utilize its resources on its other product lines. The agreement also provided the Acquirer with indefinite and exclusive worldwide rights to the Playtex trademark for gloves. The sale was completed on October 26, 2017. Total assets sold were approximately $3.1 resulting in a pre-tax gain on sale of $15.9 in the first quarter of fiscal 2018. The gain on sale of Playtex gloves recognized for fiscal year 2018 was $15.3 . |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges Project Fuel In February 2018, the Company announced Project Fuel, an enterprise-wide transformational initiative that is designed to address all aspects of the Company’s business and cost structure, simplifying and transforming the organization, structure, and key processes that will enable the Company to achieve its desired future state operations. The project will incorporate the Company’s Zero-Based Spending (“ZBS”) and global productivity initiatives and will include a new global restructuring initiative. Initial costs for Project Fuel relate to efforts to fully define the scope and reach of the project. In addition, the Company has incurred global severance costs related to the reduction of overhead. While the Company incurred costs and realized savings for Project Fuel in fiscal 2018, most costs will be incurred, and savings will be achieved during fiscal 2019 through fiscal 2021. The Company does not include Project Fuel restructuring costs in the results of its reportable segments. The estimated impact of allocating such charges to segment results for fiscal 2019 would have been as follows: Three Months Ended December 31, 2018 Wet Sun and Skin Care Feminine Care All Other Corporate Total Project Fuel Severance and related benefit costs $ 7.3 $ 0.5 $ 0.3 $ 0.1 $ 1.0 $ 9.2 Asset impairment and accelerated depreciation — — — — 0.5 0.5 Consulting, project implementation and management and, other exit costs 2.3 — — — 6.5 8.8 Total Restructuring $ 9.6 $ 0.5 $ 0.3 $ 0.1 $ 8.0 $ 18.5 Pre-tax SG&A of $1.4 associated with certain information technology enablement expenses related to Project Fuel were included in Consulting, project implementation and management, and other exit costs. The following table summarizes the Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for fiscal 2019: Utilized October 1, 2018 Charge to Other (1) Cash Non-Cash December 31, 2018 Restructuring Severance and related benefit costs $ 5.1 $ 9.2 $ — $ (4.8 ) $ — $ 9.5 Asset impairment and accelerated depreciation — 0.5 — 4.0 (4.5 ) — Consulting, project implementation and management, and other exit costs 2.6 8.8 — (10.5 ) — 0.9 Total Restructuring $ 7.7 $ 18.5 $ — $ (11.3 ) $ (4.5 ) $ 10.4 (1) Includes the impact of currency translation. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended December 31, 2018, the Company had income tax expense of $8.0 on Earnings before income taxes of $7.6 . The effective tax rate for the three months ended December 31, 2018 was 105.7% . The difference between the federal statutory rate and the effective rate is primarily due to a $4.7 net transitional charge resulting from the enactment of the Tax Cuts and Jobs Act (the “Tax Act”), as discussed below. The rate was also unfavorably impacted by $18.5 of restructuring and other related costs in lower tax rate jurisdictions and unfavorable tax adjustments, including the impact of the share-based payment guidance. For the three months ended December 31, 2017, the Company had income tax expense of $26.4 on Earnings before income taxes of $33.1 . The effective tax rate for the three months ended December 31, 2017 was 79.8% . The difference between the federal statutory rate and the effective rate is primarily due to a $16.2 net charge related to the Tax Act, as discussed below. The rate was also affected by unfavorable tax adjustments, including the impact of the new share-based payment guidance and changes to prior year provision estimates, which increased the effective rate by 5% . U.S. Tax Reform On December 22, 2017, the U.S. government enacted the Tax Act. This new comprehensive tax legislation reduces the U.S. federal corporate tax rate from 35% to 21% but also limits and/or eliminates certain deductions while creating new taxes on certain foreign sourced earnings. Since the Company has a September 30 fiscal year end, the lower U.S. corporate income tax rate was phased in, resulting in a blended U.S. statutory federal rate of approximately 24.5% for the fiscal year ending September 30, 2018 and 21% for subsequent fiscal years. The reduction in the U.S. corporate tax rate required the Company to remeasure its U.S. deferred tax assets and liabilities to the lower federal rate of 21% . The Tax Act also imposed a one-time transition tax on historical earnings of certain foreign subsidiaries that were not previously taxed by the U.S. For the three months ended December 31, 2018, the discrete tax adjustment for the one-time transition tax on foreign earnings was $4.7 compared to $97.2 for the three months ended December 31, 2017. The December 31, 2017 transition tax expense was offset by the estimated benefit of remeasurement of U.S. deferred tax assets and liabilities of $81.0 , resulting in a net charge of $16.2 for the period, which was included as a component of income tax expense. The Company has tax loss carryforwards and tax credits, a portion of which are expected to be used to partially offset amounts payable over eight years related to the one-time transition tax on foreign earnings. Subsequent to the Tax Act, the SEC issued rules under Staff Accounting Bulletin (“SAB”) 118 that allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. As of December 31, 2018, the Company has completed the accounting analysis for the Tax Act under SAB 118 based on current guidance, interpretations, and data available. We will continue to monitor and assess the impact of any new guidance and legislative changes. Due to the Company’s fiscal year end, certain tax provisions of the new Tax Act impacted the Company in fiscal 2018 while others are effective for fiscal year 2019 and beyond. The significant provisions of the Tax Act which the Company is subject to beginning in fiscal 2019 include the full U.S. federal statutory rate reduction to 21% , the repeal of the domestic production activities deduction, tax on global intangible low-taxed income (“GILTI”), base erosion and anti-avoidance tax (“BEAT”), limitation of deductibility of certain executive compensation, limitation on business interest and a deduction for foreign derived intangible income (“FDII”). The Company has recorded tax liabilities/(benefits) for the various provisions during the first three months of fiscal 2019. The Tax Act subjects a U.S. corporation to tax on its GILTI. U.S. GAAP allows companies to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of deferred taxes (the “deferred method”). The Company has made an accounting policy election to treat GILTI taxes as a current period expense. The Company generally repatriates a portion of current year earnings from select non-US subsidiaries only if the economic cost of the repatriation is not considered material. The Company has historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested and, accordingly, no taxes have been provided on such earnings. We continue to evaluate our plans for reinvestment or repatriation of unremitted foreign earnings and have not changed our previous indefinite reinvestment determination following the enactment of the Tax Act. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, the Company may be subject to additional foreign withholding taxes, U.S. federal and state income taxes beyond the Tax Act’s one-time transition tax. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share is based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is based on the 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. The 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, 2018 2017 Basic weighted-average shares outstanding 54.1 55.4 Effect of dilutive securities: RSE awards — 0.2 Total dilutive securities — 0.2 Diluted weighted-average shares outstanding 54.1 55.6 For the three months ended December 31, 2018 and 2017, 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, 2018 , the calculation of diluted weighted-average shares outstanding excludes 0.2 of RSE awards that would have otherwise been dilutive, because the Company reported a net loss. For the three months ended December 31, 2017, the number of RSE awards considered anti-dilutive was immaterial. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table sets forth goodwill by segment: Wet Sun and Skin Feminine All Total Balance at October 1, 2018 $ 968.2 $ 229.4 $ 208.0 $ 45.2 $ 1,450.8 Cumulative translation adjustment (2.1 ) (0.3 ) (2.2 ) — (4.6 ) Balance at December 31, 2018 $ 966.1 $ 229.1 $ 205.8 $ 45.2 $ 1,446.2 Balances at October 1, 2018 and December 31, 2018 are net of accumulated goodwill impairment losses in the All Other segment totaling $24.4 . December 31, 2018 September 30, 2018 Gross Accumulated Net Gross Accumulated Net Trade names and brands $ 206.6 $ 27.8 $ 178.8 $ 206.7 $ 25.4 $ 181.3 Technology and patents 78.9 76.1 2.8 79.0 75.9 3.1 Customer related and other 178.5 97.7 80.8 179.3 96.2 83.1 Total amortizable intangible assets $ 464.0 $ 201.6 $ 262.4 $ 465.0 $ 197.5 $ 267.5 Amortization expense was $4.5 and $4.4 for the three months ended December 31, 2018 and 2017, respectively. Estimated amortization expense for amortizable intangible assets for the remainder of fiscal 2019 and for fiscal 2020, 2021, 2022, 2023, and 2024 is $13.3 , $17.1 , $16.5 , $16.3 , $16.3 , and $16.2 , respectively, and $166.7 thereafter. The Company had indefinite-lived intangible assets of $830.4 ( $181.3 in Wet Shave, $475.4 in Sun and Skin Care, $29.9 in Feminine Care, and $143.8 in All Other) at December 31, 2018 , a decrease of $1.1 from September 30, 2018, resulting from changes in foreign currency translation rates. The Company had indefinite-lived trade names and brands of $831.5 ( $182.2 in Wet Shave, $475.6 in Sun and Skin Care, $29.9 in Feminine Care, and $143.8 in All Other) at September 30, 2018. Goodwill and intangible assets deemed to have an indefinite life are not amortized but are instead reviewed annually for impairment of value or when indicators of a potential impairment are present. The Company’s annual impairment testing date is July 1. The Company continuously monitors events which could trigger an interim impairment analysis, such as changing business conditions and environmental factors. An interim impairment analysis may indicate that carrying amounts of goodwill and other intangible assets require adjustment or that remaining useful lives should be revised. Refer to the sensitivity analysis in Note 8 to the Company’s audited annual consolidated financial statements included in its Annual Report on Form 10-K filed with the SEC on November 19, 2018. During fiscal 2018, the Company recorded impairment charges of $24.4 on the goodwill of the Infant Care reporting unit. The value of the Infant Care reporting unit decreased and required an impairment because of higher discount rates, lower forecasted revenue growth rates, and earnings margins, which resulted in lower projected long-term future cash flows when interim impairment analysis was performed. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2018 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information December 31, September 30, Inventories Raw materials and supplies $ 59.6 $ 52.0 Work in process 71.2 67.5 Finished products 236.5 210.0 Total inventories $ 367.3 $ 329.5 Other Current Assets Miscellaneous receivables $ 14.4 $ 12.6 Prepaid expenses 70.4 68.4 Value added tax collectible from customers 19.1 25.2 Income taxes receivable 20.2 17.3 Other 4.7 5.3 Total other current assets $ 128.8 $ 128.8 Property, Plant and Equipment Land $ 19.1 $ 19.2 Buildings 136.7 141.9 Machinery and equipment 963.8 964.8 Capitalized software costs 50.9 48.4 Construction in progress 52.9 59.9 Total gross property, plant and equipment 1,223.4 1,234.2 Accumulated depreciation and amortization (813.0 ) (810.1 ) Total property, plant and equipment, net $ 410.4 $ 424.1 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 35.0 $ 28.2 Accrued trade allowances 22.3 29.9 Accrued salaries, vacations and incentive compensation 27.0 44.2 Income taxes payable 5.0 20.3 Returns reserve 31.3 58.6 Restructuring reserve 10.4 7.7 Value added tax payable 5.0 4.0 Deferred compensation 6.0 6.3 Other 70.6 86.3 Total other current liabilities $ 212.6 $ 285.5 Other Liabilities Pensions and other retirement benefits $ 90.2 $ 91.5 Deferred compensation 39.7 40.7 Other non-current liabilities 85.4 79.6 Total other liabilities $ 215.3 $ 211.8 |
Accounts Receivable Facility
Accounts Receivable Facility | 3 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Accounts receivable facility | Accounts Receivable Facility On September 15, 2017, the Company entered into the Accounts Receivable Facility. Transfers under this agreement are accounted for as sales of receivables, resulting in the receivables being de-recognized from the Consolidated Balance Sheet. The purchaser assumes the credit risk at the time of sale and has the right at any time to assign, transfer, or participate any of its rights under the purchased receivables to another bank or financial institution. The purchase and sale of receivables under the agreement is intended to be an absolute and irrevocable transfer without recourse by the purchaser to the Company for the creditworthiness of any obligor. The Company continues to have collection and servicing responsibilities for the receivables sold and receives separate compensation for their servicing. The compensation received is considered acceptable servicing compensation and, as such, the Company does not recognize a servicing asset or liability. As of December 31, 2018, the discount rate used to determine the purchase price for the subject receivables is based upon LIBOR plus a margin applicable to the specified obligor. Accounts receivables sold under this agreement for the quarter ended December 31, 2018 and 2017 were $213.9 and $210.1 , respectively. The trade receivables sold that remained outstanding under this agreement as of December 31, 2018 and September 30, 2018 were $78.2 and $77.9 , respectively. The net proceeds received were included in cash provided by operating activities and cash provided by investing activities on the Consolidated Statement of Cash Flows. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of receivables in Other expense (income), net in the Consolidated Statement of Earnings. For the three months ended December 31, 2018 and 2017, the loss on sale of trade receivables was $0.6 and $0.4 , respectively. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [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 $ 600.0 $ 600.0 Senior notes, fixed interest rate of 4.7%, due 2022 500.0 500.0 U.S. revolving credit facility due 2020 39.0 7.0 Term loan, due 2019 185.0 185.0 Total long-term debt, including current maturities 1,324.0 1,292.0 Less current portion 185.0 184.9 Less unamortized debt issuance costs and discount (1) (2) 3.0 3.3 Total long-term debt $ 1,136.0 $ 1,103.8 (1) At December 31, 2018 , the balance for the senior notes due 2021 and the senior notes due 2022 are reflected net of debt issuance costs of $1.1 and $1.4 , respectively. At September 30, 2018, 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 $1.2 , $1.5 and $0.1 , respectively. (2) At December 31, 2018 and September 30, 2018, the balance for the senior notes due 2022 was reflected net of discount of $0.5 and $0.5 , respectively. The Company had outstanding, variable-rate international borrowings, recorded in Notes payable, of $10.1 and $8.2 as of December 31, 2018 and September 30, 2018 , respectively. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 31, 2018 | |
Retirement 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, which are included in the information presented below. The plans provide retirement benefits based on years of service and earnings. The Company also sponsors or participates in several 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 and postretirement cost (benefit) for these plans was as follows: Three Months Ended December 31, 2018 2017 Service cost $ 0.7 $ 0.7 Interest cost 4.7 4.3 Expected return on plan assets (6.3 ) (7.1 ) Recognized net actuarial loss 1.0 1.1 Net periodic cost (benefit) $ 0.1 $ (1.0 ) The service cost component of the net periodic cost (benefit) associated with the Company’s retirement plans is recorded to Cost of products sold and SG&A on the Condensed Consolidated Statement of Earnings. The remaining net periodic cost (benefit) is recorded to Other expense, net on the Condensed Consolidated Statement of Earnings. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity In January 2018, the Board approved an authorization to repurchase up to 10.0 shares of the Company’s common stock, replacing the previous stock repurchase authorization from May 2015. The Company did not repurchase any shares under this authorization during the three months ended December 31, 2018. The Company has 10.0 shares of its common shares available for repurchase in the future under the Board’s authorization. Any future share repurchases may 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. 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, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive (Loss) Income The following table presents the changes in accumulated other comprehensive (loss) income (“AOCI”), net of tax, by component: Foreign Pension and Hedging Total Balance at October 1, 2018 $ (40.6 ) $ (110.3 ) $ 2.6 $ (148.3 ) OCI before reclassifications (1) (10.8 ) (0.7 ) (0.1 ) (11.6 ) Reclassifications to earnings — 0.7 (1.2 ) (0.5 ) Balance at December 31, 2018 $ (51.4 ) $ (110.3 ) $ 1.3 $ (160.4 ) Foreign Pension and Hedging Total Balance at October 1, 2017 $ (29.0 ) $ (101.3 ) $ (1.1 ) $ (131.4 ) OCI before reclassifications (1) 9.5 (0.3 ) (0.3 ) 8.9 Reclassifications to earnings — 0.7 0.5 1.2 Balance at December 31, 2017 $ (19.5 ) $ (100.9 ) $ (0.9 ) $ (121.3 ) (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 2018 2017 Gain / Loss on cash flow hedges Foreign exchange contracts $ 1.8 $ (0.7 ) Other expense, net 1.8 (0.7 ) Total before tax 0.6 (0.2 ) Income tax provision 1.2 (0.5 ) Net of tax Amortization of defined benefit pension and postretirement items Actuarial losses $ (1.0 ) $ (1.1 ) (1) (1.0 ) (1.1 ) Total before tax (0.3 ) (0.4 ) Income tax provision (0.7 ) (0.7 ) Net of tax Total reclassifications for the period $ 0.5 $ (1.2 ) Net of tax (1) These AOCI components are included in the computation of net periodic cost (benefit). See Note 11 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management At times, the Company enters into contractual arrangements (also referred to as derivatives), to reduce its exposure to foreign currency. The Company has master netting agreements with all of its counterparties that allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default. The Company manages counterparty risk through the utilization of investment grade commercial banks, diversification of counterparties, and its counterparty netting arrangements. The section below outlines the types of derivatives that existed at December 31, 2018 and September 30, 2018 , as well as the Company’s objectives and strategies for holding derivative instruments. Foreign Currency Risk A significant share of the Company’s sales is 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 on 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 expense, net. The primary currency to which the Company’s foreign subsidiaries are exposed is the U.S. dollar. Cash Flow Hedges At December 31, 2018 , 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 unrealized pre-tax gains of $1.9 and $3.9 at December 31, 2018 and September 30, 2018 , respectively, on these forward currency contracts, which are accounted for as cash flow hedges, and are included in AOCI. Assuming foreign exchange rates versus the U.S. dollar remain at December 31, 2018 levels over the next 12 months, most of the pre-tax gain included in AOCI at December 31, 2018 is expected to be included in Other (income) expense, net. Contract maturities for these hedges extend into fiscal 2020. At December 31, 2018, there were 61 open foreign currency contracts with a total notional value of $120.8 . 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 and thus 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, 2018 resulted in a loss of $1.3 , compared to a loss of $0.2 for the three months ended December 31, 2017, and was recorded in Other expense, net in the Condensed Consolidated Statements of Earnings. At December 31, 2018, there were five open foreign currency derivative contracts not designated as cash flow hedges, with a total notional value of $62.2 . The following table provides estimated fair values of derivative instruments: Fair Value of Asset (Liability) (1) December 31, 2018 September 30, 2018 Derivatives designated as cash flow hedging relationships: Foreign currency contracts $ 1.9 $ 3.9 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts $ (1.0 ) $ 1.3 (1) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities. The following table provides the amounts of gains and losses on derivative instruments: Three Months Ended December 31, 2018 2017 Derivatives designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in OCI (1) $ (0.2 ) $ (0.4 ) Gain (loss) reclassified from AOCI into income (effective portion) (1) (2) 1.8 (0.7 ) Derivatives not designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in income (2) $ (1.3 ) $ (0.2 ) (1) 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. (2) Gain (loss) was recorded in Other (income) expense, net. The following table provides financial assets and liabilities for balance sheet offsetting: At December 31, 2018 At September 30, 2018 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Foreign currency contracts Gross amounts of recognized assets (liabilities) $ 2.4 $ (1.5 ) $ 5.3 $ — Gross amounts offset in the balance sheet (0.2 ) 0.2 (0.1 ) — Net amounts of assets (liabilities) presented in the balance sheet $ 2.2 $ (1.3 ) $ 5.2 $ — (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. 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, Liabilities at estimated fair value: Deferred compensation $ (45.5 ) $ (46.9 ) Derivatives - foreign currency contracts 0.9 5.2 Net liabilities at estimated fair value $ (44.6 ) $ (41.7 ) At December 31, 2018 , 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. At December 31, 2018 and September 30, 2018 , the Company had no Level 1 or Level 3 financial assets or liabilities, other than pension plan assets. At December 31, 2018 and September 30, 2018 , the fair market value of fixed rate long-term debt was $1,042.1 and $1,061.2 , respectively, compared to its carrying value of $1,100.0 and $ 1,100.0 , respectively. The estimated fair value of the long-term debt was estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. The estimated fair value of variable-rate debt, which consists of bank debt and excludes revolving credit facilities, was $185.0 compared to its carrying value of $185.0 at December 31, 2018 and $184.9 at September 30, 2018. The estimated fair value was 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. |
Segment Data
Segment Data | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data For an overview of the Company’s segments, refer to Note 1 to Notes to Condensed Consolidated Financial Statements. Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with restructuring initiatives, the gain on the sale of the Playtex gloves business, 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, 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, 2018 2017 Net Sales Wet Shave $ 287.7 $ 294.1 Sun and Skin Care 66.7 59.1 Feminine Care 74.7 82.6 All Other 28.0 32.5 Total net sales $ 457.1 $ 468.3 Segment Profit Wet Shave $ 55.0 $ 53.7 Sun and Skin Care (0.6 ) (6.2 ) Feminine Care 7.5 4.8 All Other 1.2 7.1 Total segment profit 63.1 59.4 General corporate and other expenses (13.7 ) (18.7 ) Restructuring and related costs (1) (18.5 ) — Investor settlement expense (2) (0.9 ) — Jack Black acquisition and integration costs (3) (0.5 ) — Sun Care reformulation costs (4) (0.1 ) — Gain on sale of Playtex gloves — 15.9 Amortization of intangibles (4.5 ) (4.4 ) Interest and other expense, net (17.3 ) (19.1 ) Total earnings before income taxes $ 7.6 $ 33.1 (1) Includes pre-tax SG&A of $1.4 for the three months ended December 31, 2018, associated with certain information technology enablement expenses for Project Fuel. (2) Includes pre-tax SG&A of $0.9 for the three months ended December 31, 2018. (3) Includes pre-tax SG&A of $0.5 for the three months ended December 31, 2018. (4) Includes pre-tax Cost of products sold of $0.1 for the three months ended December 31, 2018, associated with supply chain changes on select Sun Care products. The following table presents the Company’s net sales by geographic area: Three Months Ended December 31, 2018 2017 Net Sales to Customers United States $ 251.3 $ 258.3 International 205.8 210.0 Total net sales $ 457.1 $ 468.3 Supplemental product information is presented below for net sales: Three Months Ended 2018 2017 Razors and blades $ 255.3 $ 261.5 Tampons, pads, and liners 74.7 82.6 Skin care products 33.5 20.8 Sun care products 33.2 38.3 Shaving gels and creams 32.4 32.6 Infant care and other 28.0 32.5 Total net sales $ 457.1 $ 468.3 |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Dec. 31, 2018 | |
Guarantor and Non-Guarantor Financial Information [Abstract] | |
Guarantor and Non-Guarantor Financial Information | Guarantor and Non-Guarantor Financial Information Set forth below are the condensed consolidating financial statements presenting the results of operations, financial position, and cash flows of Edgewell Personal Care Company (the “Parent 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, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 299.7 $ 236.7 $ (79.3 ) $ 457.1 Cost of products sold — 192.8 150.1 (79.3 ) 263.6 Gross profit — 106.9 86.6 — 193.5 Selling, general and administrative expense — 51.2 36.1 — 87.3 Advertising and sales promotion expense — 27.4 24.2 — 51.6 Research and development expense — 12.6 — — 12.6 Restructuring charges — 8.9 8.2 — 17.1 Interest expense associated with debt 13.4 2.5 0.1 — 16.0 Other expense, net — 0.6 0.7 — 1.3 Intercompany service fees — (3.6 ) 3.6 — — Equity in earnings of subsidiaries (9.7 ) (11.5 ) — 21.2 — Earnings before income taxes (3.7 ) 18.8 13.7 (21.2 ) 7.6 Income tax (benefit) provision (3.3 ) 9.1 2.2 — 8.0 Net (loss) earnings $ (0.4 ) $ 9.7 $ 11.5 $ (21.2 ) $ (0.4 ) Statements of Comprehensive Income: Net earnings $ (0.4 ) $ 9.7 $ 11.5 $ (21.2 ) $ (0.4 ) Other comprehensive income, net of tax (12.1 ) (12.1 ) (11.6 ) 23.7 (12.1 ) Total comprehensive income $ (12.5 ) $ (2.4 ) $ (0.1 ) $ 2.5 $ (12.5 ) EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME Three Months Ended December 31, 2017 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 312.1 $ 227.5 $ (71.3 ) $ 468.3 Cost of products sold — 195.4 144.9 (71.3 ) 269.0 Gross profit — 116.7 82.6 — 199.3 Selling, general and administrative expense — 62.2 35.7 — 97.9 Advertising and sales promotion expense — 26.5 22.5 — 49.0 Research and development expense — 16.1 — — 16.1 Gain on sale of Playtex gloves — (15.9 ) — — (15.9 ) Interest expense associated with debt 13.4 4.2 0.2 — 17.8 Other expense, net — (0.5 ) 1.8 — 1.3 Intercompany service fees — (6.9 ) 6.9 — — Equity in earnings of subsidiaries (16.5 ) (12.8 ) — 29.3 — Earnings before income taxes 3.1 43.8 15.5 (29.3 ) 33.1 Income tax (benefit) provision (3.6 ) 27.3 2.7 — 26.4 Net earnings $ 6.7 $ 16.5 $ 12.8 $ (29.3 ) $ 6.7 Statements of Comprehensive Income: Net earnings $ 6.7 $ 16.5 $ 12.8 $ (29.3 ) $ 6.7 Other comprehensive (loss), net of tax 10.1 10.1 9.6 (19.7 ) 10.1 Total comprehensive income (loss) $ 16.8 $ 26.6 $ 22.4 $ (49.0 ) $ 16.8 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 2.2 $ 237.7 $ — $ 239.9 Trade receivables, net — 30.3 133.3 — 163.6 Inventories — 207.8 159.5 — 367.3 Other current assets — 51.0 77.8 — 128.8 Total current assets — 291.3 608.3 — 899.6 Investment in subsidiaries 3,761.7 1,186.1 — (4,947.8 ) — Intercompany receivables, net (1) — 863.3 56.3 (919.6 ) — Property, plant and equipment, net — 306.7 103.7 — 410.4 Goodwill — 1,037.4 408.8 — 1,446.2 Other intangible assets, net — 883.2 209.6 — 1,092.8 Other assets 0.9 — 31.4 — 32.3 Total assets $ 3,762.6 $ 4,568.0 $ 1,418.1 $ (5,867.4 ) $ 3,881.3 Liabilities and Shareholders' Equity Current liabilities $ 6.7 $ 425.4 $ 182.9 $ — $ 615.0 Intercompany payables, net (1) 919.6 — — (919.6 ) — Long-term debt 1,097.0 39.0 — — 1,136.0 Deferred income tax liabilities — 142.4 33.3 — 175.7 Other liabilities — 199.5 15.8 — 215.3 Total liabilities 2,023.3 806.3 232.0 (919.6 ) 2,142.0 Total shareholders' equity 1,739.3 3,761.7 1,186.1 (4,947.8 ) 1,739.3 Total liabilities and shareholders' equity $ 3,762.6 $ 4,568.0 $ 1,418.1 $ (5,867.4 ) $ 3,881.3 (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, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 2.5 $ 263.9 $ — $ 266.4 Trade receivables, net — 46.1 180.4 — 226.5 Inventories — 175.4 154.1 — 329.5 Other current assets — 48.8 80.0 — 128.8 Total current assets — 272.8 678.4 — 951.2 Investment in subsidiaries 3,760.0 1,227.4 — (4,987.4 ) — Intercompany receivables, net (1) — 836.1 63.9 (900.0 ) — Property, plant and equipment, net — 316.7 107.4 — 424.1 Goodwill — 1,037.5 413.3 — 1,450.8 Other intangible assets, net — 886.5 212.5 — 1,099.0 Other assets 1.0 0.1 27.1 — 28.2 Total assets $ 3,761.0 $ 4,577.1 $ 1,502.6 $ (5,887.4 ) $ 3,953.3 Liabilities and Shareholders’ Equity Current liabilities $ 19.7 $ 471.8 $ 225.5 $ — $ 717.0 Intercompany payables, net (1) 900.0 — — (900.0 ) — Long-term debt 1,096.7 7.1 — — 1,103.8 Deferred income tax liabilities — 142.6 33.5 — 176.1 Other liabilities — 195.6 16.2 — 211.8 Total liabilities 2,016.4 817.1 275.2 (900.0 ) 2,208.7 Total shareholders’ equity 1,744.6 3,760.0 1,227.4 (4,987.4 ) 1,744.6 Total liabilities and shareholders’ equity $ 3,761.0 $ 4,577.1 $ 1,502.6 $ (5,887.4 ) $ 3,953.3 (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, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 1.5 $ (24.6 ) $ 21.7 $ (45.0 ) $ (46.4 ) Cash Flow from Investing Activities Capital expenditures — (6.5 ) (2.9 ) — (9.4 ) Collection of deferred purchase price from accounts receivable sold — 2.5 — — 2.5 Proceeds from sale of assets — 4.0 — — 4.0 Net cash used by investing activities — — (2.9 ) — (2.9 ) Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 137.0 — — 137.0 Cash payments on debt with original maturities greater than 90 days — (105.0 ) — — (105.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (2.6 ) 1.7 — (0.9 ) Intercompany dividend — — (45.0 ) 45.0 — Net financing outflow from the Accounts Receivable Facility — (5.1 ) — — (5.1 ) Employee shares withheld for taxes (1.5 ) — — — (1.5 ) Net cash (used by) from financing activities (1.5 ) 24.3 (43.3 ) 45.0 24.5 Effect of exchange rate changes on cash — — (1.7 ) — (1.7 ) Net decrease in cash and cash equivalents — (0.3 ) (26.2 ) — (26.5 ) Cash and cash equivalents, beginning of period — 2.5 263.9 — 266.4 Cash and cash equivalents, end of period $ — $ 2.2 $ 237.7 $ — $ 239.9 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2017 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 117.2 $ (171.3 ) $ 30.0 $ — $ (24.1 ) Cash Flow from Investing Activities Capital expenditures — (9.2 ) (2.4 ) — (11.6 ) Collection of deferred purchase price from accounts receivable sold — 1.7 — — 1.7 Playtex gloves sale — 19.0 — — 19.0 Proceeds from sale of assets — 2.1 — — 2.1 Net cash from investing activities — 13.6 (2.4 ) — 11.2 Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 253.0 — — 253.0 Cash payments on debt with original maturities greater than 90 days — (100.0 ) — — (100.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (2.5 ) 1.2 — (1.3 ) Common shares purchased (115.2 ) — — — (115.2 ) Net financing inflow from the Accounts Receivable Facility — 1.4 — — 1.4 Employee shares withheld for taxes (2.0 ) — — — (2.0 ) Net cash (used by) from financing activities (117.2 ) 151.9 1.2 — 35.9 Effect of exchange rate changes on cash — — 4.0 — 4.0 Net increase in cash and cash equivalents — (5.8 ) 32.8 — 27.0 Cash and cash equivalents, beginning of period — 6.4 496.5 — 502.9 Cash and cash equivalents, end of period $ — $ 0.6 $ 529.3 $ — $ 529.9 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent Event Early payment of Term Loan On February 6, 2019, the Company made a $185 prepayment to retire its term loan due April 2019 (the “Term Loan”). The Company funded the payment through additional borrowing on its U.S. revolving credit facility. Refer to Item 5, Part II for further information. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended | |
Dec. 31, 2018 | ||
Restructuring Charges [Abstract] | ||
Schedule of Charges Related to Restructuring Activities | The Company does not include Project Fuel restructuring costs in the results of its reportable segments. The estimated impact of allocating such charges to segment results for fiscal 2019 would have been as follows: Three Months Ended December 31, 2018 Wet Sun and Skin Care Feminine Care All Other Corporate Total Project Fuel Severance and related benefit costs $ 7.3 $ 0.5 $ 0.3 $ 0.1 $ 1.0 $ 9.2 Asset impairment and accelerated depreciation — — — — 0.5 0.5 Consulting, project implementation and management and, other exit costs 2.3 — — — 6.5 8.8 Total Restructuring $ 9.6 $ 0.5 $ 0.3 $ 0.1 $ 8.0 $ 18.5 Pre-tax SG&A of $1.4 associated with certain information technology enablement expenses related to Project Fuel were included in Consulting, project implementation and management, and other exit costs | |
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 fiscal 2019: Utilized October 1, 2018 Charge to Other (1) Cash Non-Cash December 31, 2018 Restructuring Severance and related benefit costs $ 5.1 $ 9.2 $ — $ (4.8 ) $ — $ 9.5 Asset impairment and accelerated depreciation — 0.5 — 4.0 (4.5 ) — Consulting, project implementation and management, and other exit costs 2.6 8.8 — (10.5 ) — 0.9 Total Restructuring $ 7.7 $ 18.5 $ — $ (11.3 ) $ (4.5 ) $ 10.4 (1) Includes the impact of currency translation. | [1] |
[1] | Includes the impact of currency translation. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Shares Outstanding | The 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, 2018 2017 Basic weighted-average shares outstanding 54.1 55.4 Effect of dilutive securities: RSE awards — 0.2 Total dilutive securities — 0.2 Diluted weighted-average shares outstanding 54.1 55.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment: Wet Sun and Skin Feminine All Total Balance at October 1, 2018 $ 968.2 $ 229.4 $ 208.0 $ 45.2 $ 1,450.8 Cumulative translation adjustment (2.1 ) (0.3 ) (2.2 ) — (4.6 ) Balance at December 31, 2018 $ 966.1 $ 229.1 $ 205.8 $ 45.2 $ 1,446.2 |
Schedule of Amortizable Intangible Assets | December 31, 2018 September 30, 2018 Gross Accumulated Net Gross Accumulated Net Trade names and brands $ 206.6 $ 27.8 $ 178.8 $ 206.7 $ 25.4 $ 181.3 Technology and patents 78.9 76.1 2.8 79.0 75.9 3.1 Customer related and other 178.5 97.7 80.8 179.3 96.2 83.1 Total amortizable intangible assets $ 464.0 $ 201.6 $ 262.4 $ 465.0 $ 197.5 $ 267.5 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplement Balance Sheet Information | December 31, September 30, Inventories Raw materials and supplies $ 59.6 $ 52.0 Work in process 71.2 67.5 Finished products 236.5 210.0 Total inventories $ 367.3 $ 329.5 Other Current Assets Miscellaneous receivables $ 14.4 $ 12.6 Prepaid expenses 70.4 68.4 Value added tax collectible from customers 19.1 25.2 Income taxes receivable 20.2 17.3 Other 4.7 5.3 Total other current assets $ 128.8 $ 128.8 Property, Plant and Equipment Land $ 19.1 $ 19.2 Buildings 136.7 141.9 Machinery and equipment 963.8 964.8 Capitalized software costs 50.9 48.4 Construction in progress 52.9 59.9 Total gross property, plant and equipment 1,223.4 1,234.2 Accumulated depreciation and amortization (813.0 ) (810.1 ) Total property, plant and equipment, net $ 410.4 $ 424.1 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 35.0 $ 28.2 Accrued trade allowances 22.3 29.9 Accrued salaries, vacations and incentive compensation 27.0 44.2 Income taxes payable 5.0 20.3 Returns reserve 31.3 58.6 Restructuring reserve 10.4 7.7 Value added tax payable 5.0 4.0 Deferred compensation 6.0 6.3 Other 70.6 86.3 Total other current liabilities $ 212.6 $ 285.5 Other Liabilities Pensions and other retirement benefits $ 90.2 $ 91.5 Deferred compensation 39.7 40.7 Other non-current liabilities 85.4 79.6 Total other liabilities $ 215.3 $ 211.8 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [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 $ 600.0 $ 600.0 Senior notes, fixed interest rate of 4.7%, due 2022 500.0 500.0 U.S. revolving credit facility due 2020 39.0 7.0 Term loan, due 2019 185.0 185.0 Total long-term debt, including current maturities 1,324.0 1,292.0 Less current portion 185.0 184.9 Less unamortized debt issuance costs and discount (1) (2) 3.0 3.3 Total long-term debt $ 1,136.0 $ 1,103.8 (1) At December 31, 2018 , the balance for the senior notes due 2021 and the senior notes due 2022 are reflected net of debt issuance costs of $1.1 and $1.4 , respectively. At September 30, 2018, 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 $1.2 , $1.5 and $0.1 , respectively. (2) At December 31, 2018 and September 30, 2018, the balance for the senior notes due 2022 was reflected net of discount of $0.5 and $0.5 , respectively. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension and Postretirement Cost (Benefit) | The Company’s net periodic pension and postretirement cost (benefit) for these plans was as follows: Three Months Ended December 31, 2018 2017 Service cost $ 0.7 $ 0.7 Interest cost 4.7 4.3 Expected return on plan assets (6.3 ) (7.1 ) Recognized net actuarial loss 1.0 1.1 Net periodic cost (benefit) $ 0.1 $ (1.0 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive (loss) income (“AOCI”), net of tax, by component: Foreign Pension and Hedging Total Balance at October 1, 2018 $ (40.6 ) $ (110.3 ) $ 2.6 $ (148.3 ) OCI before reclassifications (1) (10.8 ) (0.7 ) (0.1 ) (11.6 ) Reclassifications to earnings — 0.7 (1.2 ) (0.5 ) Balance at December 31, 2018 $ (51.4 ) $ (110.3 ) $ 1.3 $ (160.4 ) Foreign Pension and Hedging Total Balance at October 1, 2017 $ (29.0 ) $ (101.3 ) $ (1.1 ) $ (131.4 ) OCI before reclassifications (1) 9.5 (0.3 ) (0.3 ) 8.9 Reclassifications to earnings — 0.7 0.5 1.2 Balance at December 31, 2017 $ (19.5 ) $ (100.9 ) $ (0.9 ) $ (121.3 ) (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 2018 2017 Gain / Loss on cash flow hedges Foreign exchange contracts $ 1.8 $ (0.7 ) Other expense, net 1.8 (0.7 ) Total before tax 0.6 (0.2 ) Income tax provision 1.2 (0.5 ) Net of tax Amortization of defined benefit pension and postretirement items Actuarial losses $ (1.0 ) $ (1.1 ) (1) (1.0 ) (1.1 ) Total before tax (0.3 ) (0.4 ) Income tax provision (0.7 ) (0.7 ) Net of tax Total reclassifications for the period $ 0.5 $ (1.2 ) Net of tax (1) These AOCI components are included in the computation of net periodic cost (benefit). See Note 11 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The following table provides estimated fair values of derivative instruments: Fair Value of Asset (Liability) (1) December 31, 2018 September 30, 2018 Derivatives designated as cash flow hedging relationships: Foreign currency contracts $ 1.9 $ 3.9 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts $ (1.0 ) $ 1.3 (1) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities. |
Schedule of Gains and Losses on Derivative Instruments | The following table provides the amounts of gains and losses on derivative instruments: Three Months Ended December 31, 2018 2017 Derivatives designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in OCI (1) $ (0.2 ) $ (0.4 ) Gain (loss) reclassified from AOCI into income (effective portion) (1) (2) 1.8 (0.7 ) Derivatives not designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in income (2) $ (1.3 ) $ (0.2 ) (1) 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. (2) Gain (loss) was recorded in Other (income) expense, net. |
Schedule of Offsetting Assets and Liabilities | The following table provides financial assets and liabilities for balance sheet offsetting: At December 31, 2018 At September 30, 2018 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Foreign currency contracts Gross amounts of recognized assets (liabilities) $ 2.4 $ (1.5 ) $ 5.3 $ — Gross amounts offset in the balance sheet (0.2 ) 0.2 (0.1 ) — Net amounts of assets (liabilities) presented in the balance sheet $ 2.2 $ (1.3 ) $ 5.2 $ — (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. |
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, Liabilities at estimated fair value: Deferred compensation $ (45.5 ) $ (46.9 ) Derivatives - foreign currency contracts 0.9 5.2 Net liabilities at estimated fair value $ (44.6 ) $ (41.7 ) |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Sales and Profitability | Segment net sales and profitability are presented below: Three Months Ended December 31, 2018 2017 Net Sales Wet Shave $ 287.7 $ 294.1 Sun and Skin Care 66.7 59.1 Feminine Care 74.7 82.6 All Other 28.0 32.5 Total net sales $ 457.1 $ 468.3 Segment Profit Wet Shave $ 55.0 $ 53.7 Sun and Skin Care (0.6 ) (6.2 ) Feminine Care 7.5 4.8 All Other 1.2 7.1 Total segment profit 63.1 59.4 General corporate and other expenses (13.7 ) (18.7 ) Restructuring and related costs (1) (18.5 ) — Investor settlement expense (2) (0.9 ) — Jack Black acquisition and integration costs (3) (0.5 ) — Sun Care reformulation costs (4) (0.1 ) — Gain on sale of Playtex gloves — 15.9 Amortization of intangibles (4.5 ) (4.4 ) Interest and other expense, net (17.3 ) (19.1 ) Total earnings before income taxes $ 7.6 $ 33.1 (1) Includes pre-tax SG&A of $1.4 for the three months ended December 31, 2018, associated with certain information technology enablement expenses for Project Fuel. (2) Includes pre-tax SG&A of $0.9 for the three months ended December 31, 2018. (3) Includes pre-tax SG&A of $0.5 for the three months ended December 31, 2018. (4) Includes pre-tax Cost of products sold of $0.1 for the three months ended December 31, 2018, associated with supply chain changes on select Sun Care products. |
Schedule of Sales by Geographic Area | The following table presents the Company’s net sales by geographic area: Three Months Ended December 31, 2018 2017 Net Sales to Customers United States $ 251.3 $ 258.3 International 205.8 210.0 Total net sales $ 457.1 $ 468.3 |
Schedule of Supplemental Product Information | Supplemental product information is presented below for net sales: Three Months Ended 2018 2017 Razors and blades $ 255.3 $ 261.5 Tampons, pads, and liners 74.7 82.6 Skin care products 33.5 20.8 Sun care products 33.2 38.3 Shaving gels and creams 32.4 32.6 Infant care and other 28.0 32.5 Total net sales $ 457.1 $ 468.3 |
Guarantor and Non-Guarantor F_2
Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 299.7 $ 236.7 $ (79.3 ) $ 457.1 Cost of products sold — 192.8 150.1 (79.3 ) 263.6 Gross profit — 106.9 86.6 — 193.5 Selling, general and administrative expense — 51.2 36.1 — 87.3 Advertising and sales promotion expense — 27.4 24.2 — 51.6 Research and development expense — 12.6 — — 12.6 Restructuring charges — 8.9 8.2 — 17.1 Interest expense associated with debt 13.4 2.5 0.1 — 16.0 Other expense, net — 0.6 0.7 — 1.3 Intercompany service fees — (3.6 ) 3.6 — — Equity in earnings of subsidiaries (9.7 ) (11.5 ) — 21.2 — Earnings before income taxes (3.7 ) 18.8 13.7 (21.2 ) 7.6 Income tax (benefit) provision (3.3 ) 9.1 2.2 — 8.0 Net (loss) earnings $ (0.4 ) $ 9.7 $ 11.5 $ (21.2 ) $ (0.4 ) Statements of Comprehensive Income: Net earnings $ (0.4 ) $ 9.7 $ 11.5 $ (21.2 ) $ (0.4 ) Other comprehensive income, net of tax (12.1 ) (12.1 ) (11.6 ) 23.7 (12.1 ) Total comprehensive income $ (12.5 ) $ (2.4 ) $ (0.1 ) $ 2.5 $ (12.5 ) EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME Three Months Ended December 31, 2017 Parent Company Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 312.1 $ 227.5 $ (71.3 ) $ 468.3 Cost of products sold — 195.4 144.9 (71.3 ) 269.0 Gross profit — 116.7 82.6 — 199.3 Selling, general and administrative expense — 62.2 35.7 — 97.9 Advertising and sales promotion expense — 26.5 22.5 — 49.0 Research and development expense — 16.1 — — 16.1 Gain on sale of Playtex gloves — (15.9 ) — — (15.9 ) Interest expense associated with debt 13.4 4.2 0.2 — 17.8 Other expense, net — (0.5 ) 1.8 — 1.3 Intercompany service fees — (6.9 ) 6.9 — — Equity in earnings of subsidiaries (16.5 ) (12.8 ) — 29.3 — Earnings before income taxes 3.1 43.8 15.5 (29.3 ) 33.1 Income tax (benefit) provision (3.6 ) 27.3 2.7 — 26.4 Net earnings $ 6.7 $ 16.5 $ 12.8 $ (29.3 ) $ 6.7 Statements of Comprehensive Income: Net earnings $ 6.7 $ 16.5 $ 12.8 $ (29.3 ) $ 6.7 Other comprehensive (loss), net of tax 10.1 10.1 9.6 (19.7 ) 10.1 Total comprehensive income (loss) $ 16.8 $ 26.6 $ 22.4 $ (49.0 ) $ 16.8 |
Schedule of Condensed Consolidating Balance Sheets | EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 2.2 $ 237.7 $ — $ 239.9 Trade receivables, net — 30.3 133.3 — 163.6 Inventories — 207.8 159.5 — 367.3 Other current assets — 51.0 77.8 — 128.8 Total current assets — 291.3 608.3 — 899.6 Investment in subsidiaries 3,761.7 1,186.1 — (4,947.8 ) — Intercompany receivables, net (1) — 863.3 56.3 (919.6 ) — Property, plant and equipment, net — 306.7 103.7 — 410.4 Goodwill — 1,037.4 408.8 — 1,446.2 Other intangible assets, net — 883.2 209.6 — 1,092.8 Other assets 0.9 — 31.4 — 32.3 Total assets $ 3,762.6 $ 4,568.0 $ 1,418.1 $ (5,867.4 ) $ 3,881.3 Liabilities and Shareholders' Equity Current liabilities $ 6.7 $ 425.4 $ 182.9 $ — $ 615.0 Intercompany payables, net (1) 919.6 — — (919.6 ) — Long-term debt 1,097.0 39.0 — — 1,136.0 Deferred income tax liabilities — 142.4 33.3 — 175.7 Other liabilities — 199.5 15.8 — 215.3 Total liabilities 2,023.3 806.3 232.0 (919.6 ) 2,142.0 Total shareholders' equity 1,739.3 3,761.7 1,186.1 (4,947.8 ) 1,739.3 Total liabilities and shareholders' equity $ 3,762.6 $ 4,568.0 $ 1,418.1 $ (5,867.4 ) $ 3,881.3 (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, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Assets Current assets Cash and cash equivalents $ — $ 2.5 $ 263.9 $ — $ 266.4 Trade receivables, net — 46.1 180.4 — 226.5 Inventories — 175.4 154.1 — 329.5 Other current assets — 48.8 80.0 — 128.8 Total current assets — 272.8 678.4 — 951.2 Investment in subsidiaries 3,760.0 1,227.4 — (4,987.4 ) — Intercompany receivables, net (1) — 836.1 63.9 (900.0 ) — Property, plant and equipment, net — 316.7 107.4 — 424.1 Goodwill — 1,037.5 413.3 — 1,450.8 Other intangible assets, net — 886.5 212.5 — 1,099.0 Other assets 1.0 0.1 27.1 — 28.2 Total assets $ 3,761.0 $ 4,577.1 $ 1,502.6 $ (5,887.4 ) $ 3,953.3 Liabilities and Shareholders’ Equity Current liabilities $ 19.7 $ 471.8 $ 225.5 $ — $ 717.0 Intercompany payables, net (1) 900.0 — — (900.0 ) — Long-term debt 1,096.7 7.1 — — 1,103.8 Deferred income tax liabilities — 142.6 33.5 — 176.1 Other liabilities — 195.6 16.2 — 211.8 Total liabilities 2,016.4 817.1 275.2 (900.0 ) 2,208.7 Total shareholders’ equity 1,744.6 3,760.0 1,227.4 (4,987.4 ) 1,744.6 Total liabilities and shareholders’ equity $ 3,761.0 $ 4,577.1 $ 1,502.6 $ (5,887.4 ) $ 3,953.3 (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, 2018 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 1.5 $ (24.6 ) $ 21.7 $ (45.0 ) $ (46.4 ) Cash Flow from Investing Activities Capital expenditures — (6.5 ) (2.9 ) — (9.4 ) Collection of deferred purchase price from accounts receivable sold — 2.5 — — 2.5 Proceeds from sale of assets — 4.0 — — 4.0 Net cash used by investing activities — — (2.9 ) — (2.9 ) Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 137.0 — — 137.0 Cash payments on debt with original maturities greater than 90 days — (105.0 ) — — (105.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (2.6 ) 1.7 — (0.9 ) Intercompany dividend — — (45.0 ) 45.0 — Net financing outflow from the Accounts Receivable Facility — (5.1 ) — — (5.1 ) Employee shares withheld for taxes (1.5 ) — — — (1.5 ) Net cash (used by) from financing activities (1.5 ) 24.3 (43.3 ) 45.0 24.5 Effect of exchange rate changes on cash — — (1.7 ) — (1.7 ) Net decrease in cash and cash equivalents — (0.3 ) (26.2 ) — (26.5 ) Cash and cash equivalents, beginning of period — 2.5 263.9 — 266.4 Cash and cash equivalents, end of period $ — $ 2.2 $ 237.7 $ — $ 239.9 EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended December 31, 2017 Parent Company Guarantors Non-Guarantors Eliminations Total Net cash flow from (used by) operations $ 117.2 $ (171.3 ) $ 30.0 $ — $ (24.1 ) Cash Flow from Investing Activities Capital expenditures — (9.2 ) (2.4 ) — (11.6 ) Collection of deferred purchase price from accounts receivable sold — 1.7 — — 1.7 Playtex gloves sale — 19.0 — — 19.0 Proceeds from sale of assets — 2.1 — — 2.1 Net cash from investing activities — 13.6 (2.4 ) — 11.2 Cash Flow from Financing Activities Cash proceeds from debt with original maturities greater than 90 days — 253.0 — — 253.0 Cash payments on debt with original maturities greater than 90 days — (100.0 ) — — (100.0 ) Net (decrease) increase in debt with original maturities of 90 days or less — (2.5 ) 1.2 — (1.3 ) Common shares purchased (115.2 ) — — — (115.2 ) Net financing inflow from the Accounts Receivable Facility — 1.4 — — 1.4 Employee shares withheld for taxes (2.0 ) — — — (2.0 ) Net cash (used by) from financing activities (117.2 ) 151.9 1.2 — 35.9 Effect of exchange rate changes on cash — — 4.0 — 4.0 Net increase in cash and cash equivalents — (5.8 ) 32.8 — 27.0 Cash and cash equivalents, beginning of period — 6.4 496.5 — 502.9 Cash and cash equivalents, end of period $ — $ 0.6 $ 529.3 $ — $ 529.9 |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018USD ($)brandscountry | Dec. 31, 2017USD ($) | Oct. 01, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of brands | brands | 25 | ||
Number of countries in which Edgewell operates | country | 50 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Collection of deferred purchase price from accounts receivable sold | $ 2.5 | $ 1.7 | |
Cost of products sold | 263.6 | 269 | |
Selling, general and administrative expense | 87.3 | 97.9 | |
Other expense, net | (1.3) | (1.3) | |
Accounting standards update 2016-15 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Collection of deferred purchase price from accounts receivable sold | 2.5 | 1.7 | |
Accounting standards update 2016-06 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of ASU 2016-16 | 3.9 | ||
Accounting standards update 2017-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of products sold | 1 | ||
Selling, general and administrative expense | 0.7 | ||
Other expense, net | $ 1.7 | ||
Miscellaneous receivables | Accounting standards update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of ASU 2016-16 | $ 5.3 | ||
Other current liabilities | Accounting standards update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of ASU 2016-16 | $ 1.3 | ||
Retained earnings | Accounting standards update 2016-06 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of ASU 2016-16 | $ 3.9 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract liability | $ 0.8 | ||
Returns reserve | 31.3 | $ 58.6 | |
Miscellaneous receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Inventory return asset | $ 1.7 | ||
Accounting standards update 2014-09 | Miscellaneous receivables | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of ASU 2014-09 | $ 5.3 | ||
Accounting standards update 2014-09 | Other current liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of ASU 2014-09 | $ 1.3 |
Business Combinations and Div_2
Business Combinations and Divestiture (Details) - USD ($) $ in Millions | Mar. 01, 2018 | Oct. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,446.2 | $ 1,450.8 | ||||
Jack Black acquisition and integration costs | [1] | (0.5) | $ 0 | |||
Divestiture | ||||||
Playtex gloves sale | 0 | 19 | ||||
Jack Black | ||||||
Business Acquisition [Line Items] | ||||||
Acquisitions, net of cash acquired | $ 90.2 | |||||
Business combinations, net assets acquired | 93.9 | |||||
Business combinations, working capital and other net assets | 11.9 | |||||
Business combination, cash acquired | 3.7 | |||||
Business combination, other intangible assets | 47.7 | |||||
Goodwill | $ 34.3 | |||||
Weighted average useful life of intangible assets acquired | 17 years | |||||
Selling, general and administrative expenses | ||||||
Business Acquisition [Line Items] | ||||||
Jack Black acquisition and integration costs | (0.5) | |||||
Selling, general and administrative expenses | Jack Black | ||||||
Business Acquisition [Line Items] | ||||||
Jack Black acquisition and integration costs | $ 0.5 | |||||
Playtex gloves | Sale | ||||||
Divestiture | ||||||
Playtex gloves sale | $ 19 | |||||
Value of disposed assets | $ 3.1 | |||||
Gain on disposal | $ 15.9 | $ 15.3 | ||||
[1] | Includes pre-tax SG&A of $0.5 for the three months ended December 31, 2018. |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of Charges Related to Restructuring Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||
Total Restructuring | $ 17.1 | $ 0 | |
Restructuring and related costs | [1] | 18.5 | $ 0 |
Project Fuel | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and related benefit costs | 9.2 | ||
Asset impairment and accelerated depreciation | 0.5 | ||
Consulting, program management and other exit costs | 8.8 | ||
Total Restructuring | 18.5 | ||
Project Fuel | Wet Shave | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and related benefit costs | 7.3 | ||
Asset impairment and accelerated depreciation | 0 | ||
Consulting, program management and other exit costs | 2.3 | ||
Total Restructuring | 9.6 | ||
Project Fuel | Sun and Skin Care | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and related benefit costs | 0.5 | ||
Asset impairment and accelerated depreciation | 0 | ||
Consulting, program management and other exit costs | 0 | ||
Total Restructuring | 0.5 | ||
Project Fuel | Feminine Care | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and related benefit costs | 0.3 | ||
Asset impairment and accelerated depreciation | 0 | ||
Consulting, program management and other exit costs | 0 | ||
Total Restructuring | 0.3 | ||
Project Fuel | All Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and related benefit costs | 0.1 | ||
Asset impairment and accelerated depreciation | 0 | ||
Consulting, program management and other exit costs | 0 | ||
Total Restructuring | 0.1 | ||
Project Fuel | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and related benefit costs | 1 | ||
Asset impairment and accelerated depreciation | 0.5 | ||
Consulting, program management and other exit costs | 6.5 | ||
Total Restructuring | 8 | ||
IT enablement | Selling, general and administrative expenses | Project Fuel | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related costs | $ 1.4 | ||
[1] | Includes pre-tax SG&A of $1.4 for the three months ended December 31, 2018, associated with certain information technology enablement expenses for Project Fuel. |
Restructuring Charges (Schedu_2
Restructuring Charges (Schedule of Restructuring Activities and Related Accruals) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 17.1 | $ 0 | |
Project Fuel | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 7.7 | ||
Restructuring charges | 18.5 | ||
Other | [1] | 0 | |
Utilized - Cash Payments | (11.3) | ||
Utilized - Non-Cash | (4.5) | ||
Ending Balance | 10.4 | ||
Severance and termination related costs | Project Fuel | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 5.1 | ||
Restructuring charges | 9.2 | ||
Other | [1] | 0 | |
Utilized - Cash Payments | (4.8) | ||
Utilized - Non-Cash | 0 | ||
Ending Balance | 9.5 | ||
Asset impairment and accelerated depreciation | Project Fuel | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring charges | 0.5 | ||
Other | [1] | 0 | |
Utilized - Cash Payments | 4 | ||
Utilized - Non-Cash | (4.5) | ||
Ending Balance | 0 | ||
Other related costs | Project Fuel | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 2.6 | ||
Restructuring charges | 8.8 | ||
Other | [1] | 0 | |
Utilized - Cash Payments | (10.5) | ||
Utilized - Non-Cash | 0 | ||
Ending Balance | $ 0.9 | ||
[1] | Includes the impact of currency translation. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Earnings before income taxes | $ 7.6 | $ 33.1 | |
Effective tax rate | 105.70% | 79.80% | |
Income tax provision | $ 8 | $ 26.4 | |
Impact of favorable tax adjustments on effective tax rate | 5.00% | ||
Restructuring charges | 17.1 | $ 0 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax provision | $ 8 | $ 26.4 | |
Federal statutory income tax rate | 21.00% | 35.00% | |
Fiscal 2018 blended tax rate | 24.50% | ||
US Tax Act | |||
Income Tax Disclosure [Abstract] | |||
Income tax provision | $ 4.7 | $ 16.2 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income tax provision | 4.7 | 16.2 | |
Transition tax, repatriation of foreign earnings, provision | 97.2 | ||
Tax benefit, re-rate of DTAs for tax act | $ 81 | ||
Project Fuel | |||
Income Tax Disclosure [Abstract] | |||
Restructuring charges | $ 18.5 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Weighted-Average Shares Outstanding) (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Weighted Average Number Of Shares [Line Items] | ||
Basic weighted-average shares outstanding (in shares) | 54.1 | 55.4 |
Effect of dilutive securities (in shares) | 0 | 0.2 |
Diluted weighted-average shares outstanding (in shares) | 54.1 | 55.6 |
RSE awards | ||
Schedule Of Weighted Average Number Of Shares [Line Items] | ||
Effect of dilutive securities (in shares) | 0 | 0.2 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 0.6 |
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 Asset_2
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,450.8 |
Cumulative translation adjustment | (4.6) |
Ending balance | 1,446.2 |
Wet Shave | |
Goodwill [Roll Forward] | |
Beginning balance | 968.2 |
Cumulative translation adjustment | (2.1) |
Ending balance | 966.1 |
Sun and Skin Care | |
Goodwill [Roll Forward] | |
Beginning balance | 229.4 |
Cumulative translation adjustment | (0.3) |
Ending balance | 229.1 |
Feminine Care | |
Goodwill [Roll Forward] | |
Beginning balance | 208 |
Cumulative translation adjustment | (2.2) |
Ending balance | 205.8 |
All Other | |
Goodwill [Line Items] | |
Accumulated goodwill impairment loss | 24.4 |
Goodwill [Roll Forward] | |
Beginning balance | 45.2 |
Cumulative translation adjustment | 0 |
Ending balance | $ 45.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Amortizable Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | $ 464 | $ 465 | |
Amortizable intangible assets, accumulated amortization | 201.6 | 197.5 | |
Amortizable intangible assets, net | 262.4 | 267.5 | |
Amortization of intangibles | 4.5 | $ 4.4 | |
Amortizable intangible assets, amortization expense, remainder of 2019 | 13.3 | ||
Amortizable intangible assets, amortization expense, fiscal 2020 | 17.1 | ||
Amortizable intangible assets, amortization expense, fiscal 2021 | 16.5 | ||
Amortizable intangible assets, amortization expense, fiscal 2022 | 16.3 | ||
Amortizable intangible assets, amortization expense, fiscal 2023 | 16.3 | ||
Amortizable intangible assets, amortization expense, fiscal 2024 | 16.2 | ||
Amortizable intangible assets, amortization expense, thereafter | 166.7 | ||
Trade names and brands | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 206.6 | 206.7 | |
Amortizable intangible assets, accumulated amortization | 27.8 | 25.4 | |
Amortizable intangible assets, net | 178.8 | 181.3 | |
Technology and patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 78.9 | 79 | |
Amortizable intangible assets, accumulated amortization | 76.1 | 75.9 | |
Amortizable intangible assets, net | 2.8 | 3.1 | |
Customer related and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 178.5 | 179.3 | |
Amortizable intangible assets, accumulated amortization | 97.7 | 96.2 | |
Amortizable intangible assets, net | $ 80.8 | $ 83.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 830.4 | $ 831.5 |
Indefinite-lived intangible assets, increase | (1.1) | |
Wet Shave | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 181.3 | 182.2 |
Sun and Skin Care | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 475.4 | 475.6 |
Feminine Care | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 29.9 | 29.9 |
All Other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 143.8 | 143.8 |
Impairment loss | $ 24.4 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Inventories | ||
Raw materials and supplies | $ 59.6 | $ 52 |
Work in process | 71.2 | 67.5 |
Finished products | 236.5 | 210 |
Total inventories | 367.3 | 329.5 |
Other Current Assets | ||
Miscellaneous receivables | 14.4 | 12.6 |
Prepaid expenses | 70.4 | 68.4 |
Value added tax collectible from customers | 19.1 | 25.2 |
Income taxes receivable | 20.2 | 17.3 |
Other | 4.7 | 5.3 |
Total other current assets | 128.8 | 128.8 |
Property, Plant and Equipment | ||
Land | 19.1 | 19.2 |
Buildings | 136.7 | 141.9 |
Machinery and equipment | 963.8 | 964.8 |
Capitalized software costs | 50.9 | 48.4 |
Construction in progress | 52.9 | 59.9 |
Total gross property, plant and equipment | 1,223.4 | 1,234.2 |
Accumulated depreciation and amortization | (813) | (810.1) |
Total property, plant and equipment, net | 410.4 | 424.1 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 35 | 28.2 |
Accrued trade allowances | 22.3 | 29.9 |
Accrued salaries, vacations and incentive compensation | 27 | 44.2 |
Income taxes payable | 5 | 20.3 |
Returns reserve | 31.3 | 58.6 |
Restructuring reserve | 10.4 | 7.7 |
Value added tax payable | 5 | 4 |
Deferred compensation | 6 | 6.3 |
Other | 70.6 | 86.3 |
Total other current liabilities | 212.6 | 285.5 |
Other Liabilities | ||
Pensions and other retirement benefits | 90.2 | 91.5 |
Deferred compensation | 39.7 | 40.7 |
Long-term income taxes payable | 0 | 0 |
Other non-current liabilities | 85.4 | 79.6 |
Total other liabilities | $ 215.3 | $ 211.8 |
Accounts Receivable Facility (N
Accounts Receivable Facility (Narrative) (Details) - Accounts receivable sales agreement - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of accounts receivable, quarter to date sold | $ 213.9 | $ 210.1 | |
Transfer of accounts receivable, sales amount derecognized | 78.2 | $ 77.9 | |
Loss on sale of accounts receivable | $ 0.6 | $ 0.4 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 1,324 | $ 1,292 | |
Current maturities of long-term debt | 185 | 184.9 | |
Unamortized discount and debit issuance costs | [1],[2] | 3 | 3.3 |
Long-term debt | 1,136 | 1,103.8 | |
Notes payable | 10.1 | 8.2 | |
Senior notes | Senior notes due 2021 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 600 | 600 | |
Unamortized debt issuance costs | 1.1 | 1.2 | |
Senior notes | Senior notes due 2022 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 500 | 500 | |
Unamortized debt issuance costs | 1.4 | 1.5 | |
Unamortized discount | 0.5 | 0.5 | |
Domestic line of credit | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 39 | 7 | |
Loans payable | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 185 | 185 | |
Current maturities of long-term debt | $ 185 | 184.9 | |
Unamortized debt issuance costs | $ 0.1 | ||
[1] | At December 31, 2018 and September 30, 2018, the balance for the senior notes due 2022 was reflected net of discount of $0.5 and $0.5, respectively. | ||
[2] | At December 31, 2018, the balance for the senior notes due 2021 and the senior notes due 2022 are reflected net of debt issuance costs of $1.1 and $1.4, respectively. At September 30, 2018, 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 $1.2, $1.5 and $0.1, respectively. |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 0.7 | $ 0.7 |
Interest cost | 4.7 | 4.3 |
Expected return on plan assets | (6.3) | (7.1) |
Recognized net actuarial loss | 1 | 1.1 |
Net periodic cost (benefit) | $ 0.1 | $ (1) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) shares in Millions | Dec. 31, 2018shares |
Stockholders' Equity Note [Abstract] | |
Shares authorized for repurchase (in shares) | 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (148.3) | $ (131.4) | |
OCI before reclassifications | [1] | (11.6) | 8.9 |
Reclassifications to earnings | (0.5) | 1.2 | |
Ending balance | (160.4) | (121.3) | |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (40.6) | (29) | |
OCI before reclassifications | [1] | (10.8) | 9.5 |
Reclassifications to earnings | 0 | 0 | |
Ending balance | (51.4) | (19.5) | |
Pension and Post-retirement Activity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (110.3) | (101.3) | |
OCI before reclassifications | [1] | (0.7) | (0.3) |
Reclassifications to earnings | 0.7 | 0.7 | |
Ending balance | (110.3) | (100.9) | |
Hedging Activity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 2.6 | (1.1) | |
OCI before reclassifications | [1] | (0.1) | (0.3) |
Reclassifications to earnings | (1.2) | 0.5 | |
Ending balance | $ 1.3 | $ (0.9) | |
[1] | OCI is defined as other comprehensive income (loss). |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Schedule of Reclassifications out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications to earnings | $ 0.5 | $ (1.2) | |
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 | 1.8 | (0.7) | |
Gains and losses on cash flow hedges, foreign exchange contracts, tax | 0.6 | (0.2) | |
Gains and losses on cash flow hedges, foreign exchange contracts, after tax | 1.2 | (0.5) | |
Amortization of defined benefit pension and postretirement items, actuarial losses, before tax | [1] | (1) | (1.1) |
Amortization of defined benefit pension and postretirement items, before tax | (1) | (1.1) | |
Amortization of defined benefit pension and postretirement items, tax | (0.3) | (0.4) | |
Amortization of defined benefit pension and postretirement items, after tax | (0.7) | (0.7) | |
Reclassifications to earnings | 0.5 | (1.2) | |
Other (income) expense, 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 | $ 1.8 | $ (0.7) | |
[1] | These AOCI components are included in the computation of net periodic cost (benefit). See Note 11 of Notes to Condensed Consolidated Financial Statements |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) $ in Millions | 3 Months Ended | |||
Dec. 31, 2018USD ($)contracts | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | ||
Derivative [Line Items] | ||||
Long-term debt | $ 1,324 | $ 1,292 | ||
Current maturities of long-term debt | 185 | 184.9 | ||
Fixed rate | ||||
Derivative [Line Items] | ||||
Long-term debt | 1,100 | 1,100 | ||
Fair value of long-term debt | 1,042.1 | 1,061.2 | ||
Loans payable | ||||
Derivative [Line Items] | ||||
Long-term debt | 185 | 185 | ||
Fair value of long-term debt | 185 | 185 | ||
Current maturities of long-term debt | $ 185 | 184.9 | ||
Not designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Open foreign currency contracts | contracts | 5 | |||
Notional value | $ 62.2 | |||
Cash flow hedge | Designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Estimated fair value of derivative | $ 1.9 | $ 3.9 | ||
Open foreign currency contracts | contracts | 61 | |||
Notional value | $ 120.8 | |||
Other (income) expense, net | Not designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in income | [1] | $ (1.3) | $ (0.2) | |
[1] | Gain (loss) was recorded in Other (income) expense, net. |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Schedule of Fair Values of Derivative Instruments) (Details) - FX contract - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | |
Not designated as hedge | |||
Derivatives, Fair Value [Line Items] | |||
Estimated fair value of derivatives | [1] | $ (1) | $ 1.3 |
Cash flow hedge | Designated as hedge | |||
Derivatives, Fair Value [Line Items] | |||
Estimated fair value of derivatives | [1] | $ 1.9 | $ 3.9 |
[1] | All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities. |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Schedule of Gains and Losses on Derivative Instruments) (Details) - FX contract - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Designated as hedge | Cash flow hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI | [1] | $ (0.2) | $ (0.4) |
Other (income) expense, net | Designated as hedge | Cash flow hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from AOCI into income (effective portion) | [1],[2] | 1.8 | (0.7) |
Other (income) expense, net | Not designated as hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income | [2] | $ 1.3 | $ 0.2 |
[1] | 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. | ||
[2] | Gain (loss) was recorded in Other (income) expense, net. |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Schedule of Offsetting Assets and Liabilities) (Details) - FX contract - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | |
Derivative [Line Items] | |||
Gross amounts of recognized assets | [1] | $ 2.4 | $ 5.3 |
Gross amounts of recognized liabilities | [2] | (1.5) | 0 |
Gross amounts offset in the balance sheet | [1] | (0.2) | (0.1) |
Gross amounts offset in the balance sheet | [2] | 0.2 | 0 |
Net amounts of assets presented in the balance sheet | [1] | 2.2 | 5.2 |
Net amounts of liabilities presented in the balance sheet | [2] | $ (1.3) | $ 0 |
[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. |
Financial Instruments and Ris_7
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, 2018 | Sep. 30, 2018 |
Derivative [Line Items] | ||
Deferred compensation | $ (45.5) | $ (46.9) |
Net liabilities at estimated fair value | (44.6) | (41.7) |
FX contract | ||
Derivative [Line Items] | ||
Derivatives - foreign currency contracts | $ 0.9 | $ 5.2 |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Sales and Profitability) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Net sales | $ 457.1 | $ 468.3 | |
Gain on sale of of Playtex gloves | 0 | (15.9) | |
Restructuring and related costs | [1] | 18.5 | 0 |
Investor settlement expense | [2] | (0.9) | 0 |
Jack Black acquisition and integration costs | [3] | (0.5) | 0 |
Sun Care reformulation costs | [4] | (0.1) | 0 |
Amortization of intangibles | (4.5) | (4.4) | |
Interest and other expense, net | (17.3) | (19.1) | |
Earnings before income taxes | 7.6 | 33.1 | |
Wet Shave | |||
Segment Reporting Information [Line Items] | |||
Net sales | 287.7 | 294.1 | |
Segment profit | 55 | 53.7 | |
Sun and Skin Care | |||
Segment Reporting Information [Line Items] | |||
Net sales | 66.7 | 59.1 | |
Segment profit | (0.6) | (6.2) | |
Feminine Care | |||
Segment Reporting Information [Line Items] | |||
Net sales | 74.7 | 82.6 | |
Segment profit | 7.5 | 4.8 | |
All Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 28 | 32.5 | |
Segment profit | 1.2 | 7.1 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment profit | 63.1 | 59.4 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
General corporate and other expenses | (13.7) | $ 18.7 | |
Selling, general and administrative expenses | |||
Segment Reporting Information [Line Items] | |||
Investor settlement expense | 0.9 | ||
Jack Black acquisition and integration costs | (0.5) | ||
Cost of products sold | |||
Segment Reporting Information [Line Items] | |||
Sun Care reformulation costs | (0.1) | ||
IT enablement | Project Fuel | Selling, general and administrative expenses | |||
Segment Reporting Information [Line Items] | |||
Restructuring and related costs | $ 1.4 | ||
[1] | Includes pre-tax SG&A of $1.4 for the three months ended December 31, 2018, associated with certain information technology enablement expenses for Project Fuel. | ||
[2] | Includes pre-tax SG&A of $0.9 for the three months ended December 31, 2018. | ||
[3] | Includes pre-tax SG&A of $0.5 for the three months ended December 31, 2018. | ||
[4] | Includes pre-tax Cost of products sold of $0.1 for the three months ended December 31, 2018, associated with supply chain changes on select Sun Care products. |
Segment Data Segment Data (Sche
Segment Data Segment Data (Schedule of Sales by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 457.1 | $ 468.3 |
United States | ||
Revenue from External Customer [Line Items] | ||
Net sales | 251.3 | 258.3 |
International | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 205.8 | $ 210 |
Segment Data (Schedule of Suppl
Segment Data (Schedule of Supplemental Product Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 457.1 | $ 468.3 |
Razors and blades | ||
Revenue from External Customer [Line Items] | ||
Net sales | 255.3 | 261.5 |
Tampons, pads and liners | ||
Revenue from External Customer [Line Items] | ||
Net sales | 74.7 | 82.6 |
Skin care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 33.5 | 20.8 |
Sun care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 33.2 | 38.3 |
Shaving gels and creams | ||
Revenue from External Customer [Line Items] | ||
Net sales | 32.4 | 32.6 |
Infant care and other | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 28 | $ 32.5 |
Guarantor and Non-Guarantor F_3
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, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 457.1 | $ 468.3 |
Cost of products sold | 263.6 | 269 |
Gross profit | 193.5 | 199.3 |
Selling, general and administrative expense | 87.3 | 97.9 |
Advertising and sales promotion expense | 51.6 | 49 |
Research and development expense | 12.6 | 16.1 |
Restructuring charges | (17.1) | 0 |
Gain on sale of of Playtex gloves | 0 | (15.9) |
Interest expense associated with debt | 16 | 17.8 |
Other expense, net | 1.3 | 1.3 |
Intercompany service fees | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 |
Earnings before income taxes | 7.6 | 33.1 |
Income tax provision | 8 | 26.4 |
Net (loss) earnings | (0.4) | 6.7 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net (loss) earnings | (0.4) | 6.7 |
Other comprehensive income, net of tax | (12.1) | 10.1 |
Total comprehensive income | (12.5) | 16.8 |
Eliminations | ||
Income Statement [Abstract] | ||
Net sales | (79.3) | (71.3) |
Cost of products sold | (79.3) | (71.3) |
Gross profit | 0 | 0 |
Selling, general and administrative expense | 0 | 0 |
Advertising and sales promotion expense | 0 | 0 |
Research and development expense | 0 | 0 |
Restructuring charges | 0 | |
Gain on sale of of Playtex gloves | 0 | |
Interest expense associated with debt | 0 | 0 |
Other expense, net | 0 | 0 |
Intercompany service fees | 0 | 0 |
Equity in earnings of subsidiaries | 21.2 | 29.3 |
Earnings before income taxes | (21.2) | (29.3) |
Income tax provision | 0 | 0 |
Net (loss) earnings | (21.2) | (29.3) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net (loss) earnings | (21.2) | (29.3) |
Other comprehensive income, net of tax | 23.7 | (19.7) |
Total comprehensive income | 2.5 | (49) |
Parent | ||
Income Statement [Abstract] | ||
Net sales | 0 | 0 |
Cost of products sold | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expense | 0 | 0 |
Advertising and sales promotion expense | 0 | 0 |
Research and development expense | 0 | 0 |
Restructuring charges | 0 | |
Gain on sale of of Playtex gloves | 0 | |
Interest expense associated with debt | 13.4 | 13.4 |
Other expense, net | 0 | 0 |
Intercompany service fees | 0 | 0 |
Equity in earnings of subsidiaries | (9.7) | (16.5) |
Earnings before income taxes | (3.7) | 3.1 |
Income tax provision | (3.3) | (3.6) |
Net (loss) earnings | (0.4) | 6.7 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net (loss) earnings | (0.4) | 6.7 |
Other comprehensive income, net of tax | (12.1) | 10.1 |
Total comprehensive income | (12.5) | 16.8 |
Guarantors | ||
Income Statement [Abstract] | ||
Net sales | 299.7 | 312.1 |
Cost of products sold | 192.8 | 195.4 |
Gross profit | 106.9 | 116.7 |
Selling, general and administrative expense | 51.2 | 62.2 |
Advertising and sales promotion expense | 27.4 | 26.5 |
Research and development expense | 12.6 | 16.1 |
Restructuring charges | (8.9) | |
Gain on sale of of Playtex gloves | (15.9) | |
Interest expense associated with debt | 2.5 | 4.2 |
Other expense, net | 0.6 | (0.5) |
Intercompany service fees | (3.6) | (6.9) |
Equity in earnings of subsidiaries | (11.5) | (12.8) |
Earnings before income taxes | 18.8 | 43.8 |
Income tax provision | 9.1 | 27.3 |
Net (loss) earnings | 9.7 | 16.5 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net (loss) earnings | 9.7 | 16.5 |
Other comprehensive income, net of tax | (12.1) | 10.1 |
Total comprehensive income | (2.4) | 26.6 |
Non-Guarantors | ||
Income Statement [Abstract] | ||
Net sales | 236.7 | 227.5 |
Cost of products sold | 150.1 | 144.9 |
Gross profit | 86.6 | 82.6 |
Selling, general and administrative expense | 36.1 | 35.7 |
Advertising and sales promotion expense | 24.2 | 22.5 |
Research and development expense | 0 | 0 |
Restructuring charges | (8.2) | |
Gain on sale of of Playtex gloves | 0 | |
Interest expense associated with debt | 0.1 | 0.2 |
Other expense, net | 0.7 | 1.8 |
Intercompany service fees | 3.6 | 6.9 |
Equity in earnings of subsidiaries | 0 | 0 |
Earnings before income taxes | 13.7 | 15.5 |
Income tax provision | 2.2 | 2.7 |
Net (loss) earnings | 11.5 | 12.8 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net (loss) earnings | 11.5 | 12.8 |
Other comprehensive income, net of tax | (11.6) | 9.6 |
Total comprehensive income | $ (0.1) | $ 22.4 |
Guarantor and Non-Guarantor F_4
Guarantor and Non-Guarantor Financial Information (Schedule of Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | ||
Current assets | ||||||
Cash and cash equivalents | $ 239.9 | $ 266.4 | $ 529.9 | $ 502.9 | ||
Trade receivables, net | 163.6 | 226.5 | ||||
Inventories | 367.3 | 329.5 | ||||
Other current assets | 128.8 | 128.8 | ||||
Total current assets | 899.6 | 951.2 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany receivables, net | 0 | [1] | 0 | [2] | ||
Property, plant and equipment, net | 410.4 | 424.1 | ||||
Goodwill | 1,446.2 | 1,450.8 | ||||
Other intangible assets, net | 1,092.8 | 1,099 | ||||
Other assets | 32.3 | 28.2 | ||||
Total assets | 3,881.3 | 3,953.3 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 615 | 717 | ||||
Intercompany payables, net | 0 | [1] | 0 | [2] | ||
Long-term debt | 1,136 | 1,103.8 | ||||
Deferred income tax liabilities | 175.7 | 176.1 | ||||
Other liabilities | 215.3 | 211.8 | ||||
Total liabilities | 2,142 | 2,208.7 | ||||
Shareholders’ equity | ||||||
Total shareholders' equity | 1,739.3 | 1,744.6 | 1,655.8 | 1,741.7 | ||
Total liabilities and shareholders' equity | 3,881.3 | 3,953.3 | ||||
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 | (4,947.8) | (4,987.4) | ||||
Intercompany receivables, net | (919.6) | [1] | (900) | [2] | ||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Total assets | (5,867.4) | (5,887.4) | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 0 | 0 | ||||
Intercompany payables, net | (919.6) | [1] | (900) | [2] | ||
Long-term debt | 0 | 0 | ||||
Deferred income tax liabilities | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | (919.6) | (900) | ||||
Shareholders’ equity | ||||||
Total shareholders' equity | (4,947.8) | (4,987.4) | ||||
Total liabilities and shareholders' equity | (5,867.4) | (5,887.4) | ||||
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 | 3,761.7 | 3,760 | ||||
Intercompany receivables, net | 0 | [1] | 0 | [2] | ||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Other assets | 0.9 | 1 | ||||
Total assets | 3,762.6 | 3,761 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 6.7 | 19.7 | ||||
Intercompany payables, net | 919.6 | [1] | 900 | [2] | ||
Long-term debt | 1,097 | 1,096.7 | ||||
Deferred income tax liabilities | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | 2,023.3 | 2,016.4 | ||||
Shareholders’ equity | ||||||
Total shareholders' equity | 1,739.3 | 1,744.6 | ||||
Total liabilities and shareholders' equity | 3,762.6 | 3,761 | ||||
Guarantors | ||||||
Current assets | ||||||
Cash and cash equivalents | 2.2 | 2.5 | 0.6 | 6.4 | ||
Trade receivables, net | 30.3 | 46.1 | ||||
Inventories | 207.8 | 175.4 | ||||
Other current assets | 51 | 48.8 | ||||
Total current assets | 291.3 | 272.8 | ||||
Investment in subsidiaries | 1,186.1 | 1,227.4 | ||||
Intercompany receivables, net | 863.3 | [1] | 836.1 | [2] | ||
Property, plant and equipment, net | 306.7 | 316.7 | ||||
Goodwill | 1,037.4 | 1,037.5 | ||||
Other intangible assets, net | 883.2 | 886.5 | ||||
Other assets | 0 | 0.1 | ||||
Total assets | 4,568 | 4,577.1 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 425.4 | 471.8 | ||||
Intercompany payables, net | 0 | [1] | 0 | [2] | ||
Long-term debt | 39 | 7.1 | ||||
Deferred income tax liabilities | 142.4 | 142.6 | ||||
Other liabilities | 199.5 | 195.6 | ||||
Total liabilities | 806.3 | 817.1 | ||||
Shareholders’ equity | ||||||
Total shareholders' equity | 3,761.7 | 3,760 | ||||
Total liabilities and shareholders' equity | 4,568 | 4,577.1 | ||||
Non-Guarantors | ||||||
Current assets | ||||||
Cash and cash equivalents | 237.7 | 263.9 | $ 529.3 | $ 496.5 | ||
Trade receivables, net | 133.3 | 180.4 | ||||
Inventories | 159.5 | 154.1 | ||||
Other current assets | 77.8 | 80 | ||||
Total current assets | 608.3 | 678.4 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany receivables, net | 56.3 | [1] | 63.9 | [2] | ||
Property, plant and equipment, net | 103.7 | 107.4 | ||||
Goodwill | 408.8 | 413.3 | ||||
Other intangible assets, net | 209.6 | 212.5 | ||||
Other assets | 31.4 | 27.1 | ||||
Total assets | 1,418.1 | 1,502.6 | ||||
Liabilities [Abstract] | ||||||
Current liabilities | 182.9 | 225.5 | ||||
Intercompany payables, net | 0 | [1] | 0 | [2] | ||
Long-term debt | 0 | 0 | ||||
Deferred income tax liabilities | 33.3 | 33.5 | ||||
Other liabilities | 15.8 | 16.2 | ||||
Total liabilities | 232 | 275.2 | ||||
Shareholders’ equity | ||||||
Total shareholders' equity | 1,186.1 | 1,227.4 | ||||
Total liabilities and shareholders' equity | $ 1,418.1 | $ 1,502.6 | ||||
[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 F_5
Guarantor and Non-Guarantor Financial Information (Schedule of Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | $ (46.4) | $ (24.1) |
Cash Flow from Investing Activities | ||
Capital expenditures | (9.4) | (11.6) |
Collection of deferred purchase price from accounts receivable sold | 2.5 | 1.7 |
Playtex gloves sale | 0 | 19 |
Proceeds from sale of assets | 4 | 2.1 |
Net cash used by investing activities | (2.9) | 11.2 |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 137 | 253 |
Cash payments on debt with original maturities greater than 90 days | (105) | (100) |
Net decrease in debt with original maturities of 90 days or less | (0.9) | (1.3) |
Common shares purchased | 0 | 115.2 |
Intercompany dividend | 0 | |
Net financing inflow (outflow) from the Accounts Receivable Facility | (5.1) | 1.4 |
Employee shares withheld for taxes | (1.5) | (2) |
Net cash (used by) from financing activities | 24.5 | 35.9 |
Effect of exchange rate changes on cash | (1.7) | 4 |
Net decrease in cash and cash equivalents | (26.5) | 27 |
Cash and cash equivalents, beginning of period | 266.4 | 502.9 |
Cash and cash equivalents, end of period | 239.9 | 529.9 |
Eliminations | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | (45) | 0 |
Cash Flow from Investing Activities | ||
Capital expenditures | 0 | 0 |
Collection of deferred purchase price from accounts receivable sold | 0 | 0 |
Playtex gloves sale | 0 | |
Proceeds from sale of assets | 0 | 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 | 0 | |
Intercompany dividend | 45 | |
Net financing inflow (outflow) from the Accounts Receivable Facility | 0 | 0 |
Employee shares withheld for taxes | 0 | 0 |
Net cash (used by) from financing activities | 45 | 0 |
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 |
Parent | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | 1.5 | 117.2 |
Cash Flow from Investing Activities | ||
Capital expenditures | 0 | 0 |
Collection of deferred purchase price from accounts receivable sold | 0 | 0 |
Playtex gloves sale | 0 | |
Proceeds from sale of assets | 0 | 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 | 115.2 | |
Intercompany dividend | 0 | |
Net financing inflow (outflow) from the Accounts Receivable Facility | 0 | 0 |
Employee shares withheld for taxes | (1.5) | (2) |
Net cash (used by) from financing activities | (1.5) | (117.2) |
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 |
Guarantors | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | (24.6) | (171.3) |
Cash Flow from Investing Activities | ||
Capital expenditures | (6.5) | (9.2) |
Collection of deferred purchase price from accounts receivable sold | 2.5 | 1.7 |
Playtex gloves sale | 19 | |
Proceeds from sale of assets | 4 | 2.1 |
Net cash used by investing activities | 0 | 13.6 |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 137 | 253 |
Cash payments on debt with original maturities greater than 90 days | (105) | (100) |
Net decrease in debt with original maturities of 90 days or less | (2.6) | (2.5) |
Common shares purchased | 0 | |
Intercompany dividend | 0 | |
Net financing inflow (outflow) from the Accounts Receivable Facility | (5.1) | 1.4 |
Employee shares withheld for taxes | 0 | 0 |
Net cash (used by) from financing activities | 24.3 | 151.9 |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | (0.3) | (5.8) |
Cash and cash equivalents, beginning of period | 2.5 | 6.4 |
Cash and cash equivalents, end of period | 2.2 | 0.6 |
Non-Guarantors | ||
Cash Flow from Operating Activities | ||
Net cash flow from (used by) operations | 21.7 | 30 |
Cash Flow from Investing Activities | ||
Capital expenditures | (2.9) | (2.4) |
Collection of deferred purchase price from accounts receivable sold | 0 | 0 |
Playtex gloves sale | 0 | |
Proceeds from sale of assets | 0 | 0 |
Net cash used by investing activities | (2.9) | (2.4) |
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 | 1.7 | 1.2 |
Common shares purchased | 0 | |
Intercompany dividend | (45) | |
Net financing inflow (outflow) from the Accounts Receivable Facility | 0 | 0 |
Employee shares withheld for taxes | 0 | 0 |
Net cash (used by) from financing activities | (43.3) | 1.2 |
Effect of exchange rate changes on cash | (1.7) | 4 |
Net decrease in cash and cash equivalents | (26.2) | 32.8 |
Cash and cash equivalents, beginning of period | 263.9 | 496.5 |
Cash and cash equivalents, end of period | $ 237.7 | $ 529.3 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) $ in Millions | Feb. 06, 2019USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Prepayment of Term Loan | $ 185 |