Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-15401 | |
Entity Registrant Name | EDGEWELL PERSONAL CARE COMPANY | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 43-1863181 | |
Entity Address, Address Line One | 6 Research Drive | |
Entity Address, City or Town | Shelton, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06484 | |
City Area Code | (203) | |
Local Phone Number | 944-5500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | EPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,309,366 | |
Entity Central Index Key | 0001096752 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 647.8 | $ 650 | $ 1,736.1 | $ 1,717.5 |
Cost of products sold | 360.7 | 369.7 | 993.2 | 1,005.3 |
Gross profit | 287.1 | 280.3 | 742.9 | 712.2 |
Selling, general and administrative expense | 110.1 | 96.3 | 320.9 | 297.2 |
Advertising and sales promotion expense | 76.6 | 80 | 187.9 | 188.8 |
Research and development expense | 14.6 | 14.8 | 42.1 | 42.6 |
Restructuring charges | 3.1 | 3 | 13.1 | 8.7 |
Operating income | 82.7 | 86.2 | 178.9 | 174.9 |
Interest expense associated with debt | 18.8 | 19.2 | 59 | 59.8 |
Other expense (income), net | 1.4 | (3.8) | 4.4 | 0.7 |
Earnings before income taxes | 62.5 | 70.8 | 115.5 | 114.4 |
Income tax provision | 13.5 | 17.8 | 25.7 | 29.6 |
Net earnings | 49 | 53 | 89.8 | 84.8 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (13.1) | 7.5 | (2.1) | 67.6 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.5) | (0.4) | (1.1) | 3.9 |
Deferred gain (loss) on hedging activity, net of tax | $ 0.6 | $ 1.8 | $ (0.1) | $ (6.2) |
Basic net earnings per share | $ 0.99 | $ 1.04 | $ 1.80 | $ 1.65 |
Diluted net earnings per share | $ 0.98 | $ 1.02 | $ 1.79 | $ 1.63 |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net earnings | $ 49 | $ 53 | $ 89.8 | $ 84.8 |
Other comprehensive (loss) income, net of tax | ||||
Total other comprehensive (loss) income, net of tax | (13) | 8.9 | (3.3) | 65.3 |
Total comprehensive income | $ 36 | $ 61.9 | $ 86.5 | $ 150.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Pension and postretirement activity, tax | $ (0.1) | $ (0.6) | $ (0.9) | $ 0.9 |
Deferred gain on hedging activity, tax | $ 0.3 | $ 0.9 | $ 0 | $ (2.8) |
Diluted net earnings per share | $ 0.98 | $ 1.02 | $ 1.79 | $ 1.63 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 196.1 | $ 216.4 |
Trade receivables, less allowance for doubtful accounts | 155 | 106.2 |
Inventories | 455.9 | 492.4 |
Other current assets | 151.7 | 147.4 |
Total current assets | 958.7 | 962.4 |
Property, plant and equipment, net | 325.4 | 337.9 |
Goodwill | 1,333.2 | 1,331.4 |
Other intangible assets, net | 952.2 | 973.8 |
Other assets | 138.9 | 135.2 |
Total assets | 3,708.4 | 3,740.7 |
Current liabilities | ||
Notes payable | 21.4 | 19.5 |
Accounts payable | 208.7 | 194.4 |
Other current liabilities | 305 | 309.5 |
Total current liabilities | 535.1 | 523.4 |
Long-term debt | 1,290.4 | 1,360.7 |
Deferred income tax liabilities | 137.3 | 136.4 |
Other liabilities | 169 | 179.7 |
Liabilities, Total | 2,131.8 | 2,200.2 |
Shareholders’ equity | ||
Preferred shares | 0 | 0 |
Common shares | 0.7 | 0.7 |
Additional paid-in capital | 1,580.8 | 1,593.8 |
Retained earnings | 1,089 | 1,022.1 |
Common shares in treasury at cost | (920.6) | (906.1) |
Accumulated other comprehensive loss | (173.3) | (170) |
Total shareholders’ equity | 1,576.6 | 1,540.5 |
Total liabilities and shareholders’ equity | $ 3,708.4 | $ 3,740.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
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) | 49,386,629 | 50,118,789 |
Treasury Stock, Common, Shares | 15,865,360 | 15,133,200 |
Accounts Receivable, Allowance for Credit Loss | $ 5 | $ 5.6 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 89.8 | $ 84.8 |
Depreciation and amortization | 66.6 | 68.1 |
Share-based compensation expense | 20.4 | 19.8 |
Loss on sale of assets | 0.3 | 1.1 |
Deferred compensation payments | (1.6) | (4.9) |
Deferred income taxes | 1.3 | (0.6) |
Proceeds (payments) for other operating activities | (11) | (13.6) |
Other, net | (8.5) | 6.4 |
Net cash provided by operating activities | 157.3 | 168.3 |
Cash Flow from Investing Activities | ||
Capital expenditures | (30.6) | (31.1) |
Collection of deferred purchase price on accounts receivable sold | 0.2 | 1.5 |
Payments for (Proceeds from) Other Investing Activities | (6.5) | 2 |
Other, net | 6.5 | (2) |
Net cash used by investing activities | (36.9) | (31.6) |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 633 | 645 |
Cash payments on debt with original maturities greater than 90 days | (705) | (715) |
Proceeds from debt with original maturities of 90 days or less | 1.9 | 5.1 |
Repurchase of shares | (40.2) | (45.2) |
Dividends to common shareholders | (23.3) | (23.8) |
Net financing inflow from the Accounts Receivable Facility | 4.3 | 9.6 |
Employee shares withheld for taxes | (7.1) | (9) |
Proceeds (payments) for other financing activities | (2.9) | 1 |
Net cash used by financing activities | (139.3) | (132.3) |
Effect of exchange rate changes on cash | (1.4) | 14.3 |
Net decrease in cash and cash equivalents | (20.3) | 18.7 |
Cash and cash equivalents, beginning of period | 216.4 | 188.7 |
Cash and cash equivalents, end of period | $ 196.1 | $ 207.4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Shareholders' Equity Statement - USD ($) $ in Millions | Total | Reclassification out of Accumulated Other Comprehensive Income | Other expense (income), net Reclassification out of Accumulated Other Comprehensive Income | Common shares | Treasury Stock, Common | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Treasury Stock, Common, Shares | (13,700,000) | |||||||
Common shares, issued (in shares) | 65,200,000 | |||||||
Treasury Stock, Common, Shares | (13,700,000) | |||||||
Beginning shareholders' equity at Sep. 30, 2022 | $ 1,467.1 | $ 0.7 | $ (860.9) | $ 1,604.3 | $ 939.1 | $ (216.1) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 12.4 | 12.4 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 48 | 48 | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.2) | (0.2) | ||||||
Deferred gain (loss) on hedging activity, net of tax | (8.2) | (8.2) | ||||||
Dividends declared to common shareholders | (8) | (8) | ||||||
Treasury shares repurchased (in usd) | (15) | $ (15) | ||||||
Treasury shares repurchased (in shares) | (400,000) | |||||||
Activity under share plans (shares) | 400,000 | |||||||
Activity under share plans (in usd) | (1.5) | $ 25 | ||||||
APIC activity under share plans | (26.5) | |||||||
Ending shareholders' equity at Dec. 31, 2022 | 1,494.6 | 0.7 | (850.9) | 1,577.8 | 943.5 | (176.5) | ||
Beginning shareholders' equity at Sep. 30, 2022 | 1,467.1 | 0.7 | (860.9) | 1,604.3 | 939.1 | (216.1) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 84.8 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 67.6 | |||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 3.9 | |||||||
Deferred gain (loss) on hedging activity, net of tax | (6.2) | |||||||
Ending shareholders' equity at Jun. 30, 2023 | 1,559.9 | $ 0.7 | $ (876.3) | 1,586.3 | 1,000 | (150.8) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
OCI Cash flow hedges reclass to earnings, before tax | $ 6.8 | |||||||
Treasury Stock, Common, Shares | (13,700,000) | |||||||
Common shares, issued (in shares) | 65,200,000 | |||||||
Treasury Stock, Common, Shares | (13,700,000) | |||||||
Beginning shareholders' equity at Dec. 31, 2022 | 1,494.6 | $ 0.7 | $ (850.9) | 1,577.8 | 943.5 | (176.5) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 19.4 | 19.4 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 12.1 | 12.1 | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 4.5 | 4.5 | ||||||
Deferred gain (loss) on hedging activity, net of tax | 0.2 | 0.2 | ||||||
Dividends declared to common shareholders | (8.2) | (8.2) | ||||||
Treasury shares repurchased (in usd) | (15) | $ (15) | ||||||
Treasury shares repurchased (in shares) | (400,000) | |||||||
Activity under share plans (shares) | 0 | |||||||
Activity under share plans (in usd) | 7.7 | $ 2.3 | ||||||
APIC activity under share plans | 5.4 | |||||||
Ending shareholders' equity at Mar. 31, 2023 | 1,515.3 | $ 0.7 | $ (863.6) | 1,583.2 | 954.7 | (159.7) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Treasury Stock, Common, Shares | (14,100,000) | |||||||
Common shares, issued (in shares) | 65,200,000 | |||||||
Treasury Stock, Common, Shares | (14,100,000) | |||||||
Net earnings | 53 | 53 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 7.5 | 7.5 | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.4) | (0.4) | ||||||
Deferred gain (loss) on hedging activity, net of tax | 1.8 | 1.8 | ||||||
Dividends declared to common shareholders | (7.7) | (7.7) | ||||||
Treasury shares repurchased (in usd) | (15.2) | $ (15.2) | ||||||
Treasury shares repurchased (in shares) | (300,000) | |||||||
Activity under share plans (shares) | 0 | |||||||
Activity under share plans (in usd) | 5.6 | $ 2.5 | ||||||
APIC activity under share plans | 3.1 | |||||||
Ending shareholders' equity at Jun. 30, 2023 | $ 1,559.9 | $ 0.7 | $ (876.3) | 1,586.3 | 1,000 | (150.8) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
OCI Cash flow hedges reclass to earnings, before tax | $ 1 | |||||||
Treasury Stock, Common, Shares | (14,400,000) | |||||||
Common shares, issued (in shares) | 65,200,000 | |||||||
Treasury Stock, Common, Shares | (14,400,000) | |||||||
Treasury Stock, Common, Shares | 15,133,200 | (15,000,000) | ||||||
Common shares, issued (in shares) | 65,251,989 | 65,200,000 | ||||||
Treasury Stock, Common, Shares | 15,133,200 | (15,000,000) | ||||||
Beginning shareholders' equity at Sep. 30, 2023 | $ 1,540.5 | $ 0.7 | $ (906.1) | 1,593.8 | 1,022.1 | (170) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 4.8 | (4.8) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 27 | 27 | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.1) | (0.1) | ||||||
Deferred gain (loss) on hedging activity, net of tax | (3.4) | (3.4) | ||||||
Dividends declared to common shareholders | (7.6) | (7.6) | ||||||
Treasury shares repurchased (in usd) | (15.5) | $ (15.5) | ||||||
Treasury shares repurchased (in shares) | (400,000) | |||||||
Activity under share plans (shares) | 200,000 | |||||||
Activity under share plans (in usd) | 0.1 | $ 25 | ||||||
APIC activity under share plans | (24.9) | |||||||
Ending shareholders' equity at Dec. 31, 2023 | 1,545.8 | 0.7 | (896.6) | 1,568.9 | 1,019.3 | (146.5) | ||
Beginning shareholders' equity at Sep. 30, 2023 | 1,540.5 | 0.7 | (906.1) | 1,593.8 | 1,022.1 | (170) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 89.8 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2.1) | |||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1.1) | |||||||
Deferred gain (loss) on hedging activity, net of tax | $ (0.1) | |||||||
Treasury shares repurchased (in shares) | (1,100,000) | |||||||
Ending shareholders' equity at Jun. 30, 2024 | $ 1,576.6 | $ 0.7 | $ (920.6) | 1,580.8 | 1,089 | (173.3) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
OCI Cash flow hedges reclass to earnings, before tax | $ 4.4 | |||||||
Treasury Stock, Common, Shares | (15,200,000) | |||||||
Common shares, issued (in shares) | 65,200,000 | |||||||
Treasury Stock, Common, Shares | (15,200,000) | |||||||
Beginning shareholders' equity at Dec. 31, 2023 | 1,545.8 | $ 0.7 | $ (896.6) | 1,568.9 | 1,019.3 | (146.5) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 36 | 36 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (16) | (16) | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.5) | (0.5) | ||||||
Deferred gain (loss) on hedging activity, net of tax | 2.7 | 2.7 | ||||||
Dividends declared to common shareholders | (7.6) | (7.6) | ||||||
Treasury shares repurchased (in usd) | (15.4) | $ (15.4) | ||||||
Treasury shares repurchased (in shares) | (400,000) | |||||||
Activity under share plans (shares) | 0 | |||||||
Activity under share plans (in usd) | 6.3 | $ 0.9 | ||||||
APIC activity under share plans | 5.4 | |||||||
Ending shareholders' equity at Mar. 31, 2024 | 1,551.3 | $ 0.7 | $ (911.1) | 1,574.3 | 1,047.7 | (160.3) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Treasury Stock, Common, Shares | (15,600,000) | |||||||
Common shares, issued (in shares) | 65,200,000 | |||||||
Treasury Stock, Common, Shares | (15,600,000) | |||||||
Net earnings | 49 | 49 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (13.1) | (13.1) | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.5) | (0.5) | ||||||
Deferred gain (loss) on hedging activity, net of tax | 0.6 | 0.6 | ||||||
Dividends declared to common shareholders | (7.7) | (7.7) | ||||||
Treasury shares repurchased (in usd) | (9.9) | $ (9.9) | ||||||
Treasury shares repurchased (in shares) | (300,000) | |||||||
Activity under share plans (shares) | 0 | |||||||
Activity under share plans (in usd) | 6.9 | $ 0.4 | ||||||
APIC activity under share plans | 6.5 | |||||||
Ending shareholders' equity at Jun. 30, 2024 | $ 1,576.6 | $ 0.7 | $ (920.6) | $ 1,580.8 | $ 1,089 | $ (173.3) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
OCI Cash flow hedges reclass to earnings, before tax | $ 2 | |||||||
Treasury Stock, Common, Shares | 15,865,360 | (15,900,000) | ||||||
Common shares, issued (in shares) | 65,251,989 | 65,200,000 | ||||||
Treasury Stock, Common, Shares | 15,865,360 | (15,900,000) |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Jun. 30, 2024 | |
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, and feminine care categories. With operations in over 20 countries, the Company’s products are widely available in more than 50 countries. The Company conducts its business in the following three segments: • Wet Shave consists of products sold under the Schick®, Wilkinson Sword TM , Edge, Skintimate®, Billie®, Shave Guard and our custom brands group (formerly sold under our 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®, Bulldog® and Cremo® men’s and women’s grooming products, Billie women’s grooming products and Wet Ones® products. • Feminine Care includes tampons, pads and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree®, and o.b.® brands. 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 statement 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 28, 2023. Certain immaterial prior year amounts have been reclassified to conform with the current year’s presentation. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures to update income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The amendments may be applied prospectively or retrospectively and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to expand reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023. Interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. |
Supplier Finance Program | Recently Adopted Accounting Pronouncements In September 2022, the FASB issued Accounting Standards Update 2022-04, " Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations " which requires that a buyer in a supplier finance program disclose additional information about the program for financial statement users including a rollforward of those obligations. The Company adopted the standard as of October 1, 2023, except for amendments relating to the rollforward requirement, which is effective for fiscal years beginning after December 15, 2023. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Jun. 30, 2024 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges Operating Model Redesign In fiscal 2024, the Company continues to take actions to strengthen its operating model, simplify the organization’s ways of working and improve manufacturing and supply chain efficiency and productivity. As a result of these actions, the Company expects to incur restructuring and repositioning related charges of approximately $19 in fiscal 2024. The Company has incurred restructuring and repositioning related charges as follows: Three Months Ended June 30, Nine Months Ended June 30, 2024 2023 2024 2023 Severance and related costs $ 1.3 $ 1.3 $ 6.3 $ 4.1 Asset write-off and accelerated depreciation — 0.1 0.3 0.3 Consulting, project implementation and management, and other exit costs 1.9 1.7 6.6 4.7 Total restructuring and repositioning charges (1) (2) $ 3.2 $ 3.1 $ 13.2 $ 9.1 (1) Restructuring and repositioning charges of nil and $0.2 are included within Cost of products sold for the three and nine months ended June 30, 2023, respectively. (2) Restructuring and repositioning charges of $0.1 are included within Selling, general and administrative expense (“SG&A”) for the three and nine months ended June 30, 2024 and $0.1 and $0.2 for the three and nine months ended June 30, 2023, respectively. The following table summarizes the restructuring activities and related accrual for the nine months ended June 30, 2024: Utilized October 1, 2023 Charge to Cash June 30, Severance and related costs $ 3.9 $ 6.6 $ (8.7) $ 1.8 Consulting, project implementation and management, and other exit costs 0.7 6.6 (7.3) — Total restructuring activities and related accrual $ 4.6 $ 13.2 $ (16.0) $ 1.8 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and nine months ended June 30, 2024, the Company had income tax expenses of $13.5 and $25.7, respectively, on Earnings before income taxes of $62.5 and $115.5, respectively. The effective tax rate for the three and nine months ended June 30, 2024 w as 21.6% and 22.2%, respectively. The difference between the federal statutory rate and the effective rate is primarily due to an unfavorable mix of earnings in higher tax rate jurisdictions. For the three and nine months ended June 30, 2023, the Company had income tax expenses of $17.8 and $29.6 , respectively, on Earnings before income taxes of $70.8 and $114.4, respectively. The effective tax rate for the three and nine months ended June 30, 2023 was 25.3% and 25.9%, respectively. The difference between the federal statutory rate and the effective rate was primarily due to an unfavorable mix of earnings in higher tax rate jurisdictions. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2024 | |
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 net 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, restricted share equivalent (“RSE”) and performance restricted share equivalent (“PRSE”) awards. The following is the reconciliation between the number of weighted-average shares used in the basic and diluted net earnings per share calculation: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic weighted-average shares outstanding 49.5 51.1 49.8 51.3 Effect of dilutive securities: Options, RSE and PRSE awards 0.6 0.7 0.5 0.6 Total dilutive securities 0.6 0.7 0.5 0.6 Diluted weighted-average shares outstanding 50.1 51.8 50.3 51.9 The following weighted-average common shares were excluded from the calculation of diluted net earnings per share because the effect of including these awards was antidilutive. Three Months Ended Nine Months Ended 2024 2023 2024 2023 Options, RSE and PRSE awards 1.1 0.8 1.1 1.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 30, 2024 | |
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 Total Gross balance as of October 1, 2023 $ 1,140.5 $ 355.9 $ 206.0 $ 1,702.4 Accumulated goodwill impairment (369.0) (2.0) — (371.0) Net balance as of October 1, 2023 $ 771.5 $ 353.9 $ 206.0 $ 1,331.4 Changes in the nine months ended June 30, 2024 Cumulative translation adjustment $ 1.6 $ 0.5 $ (0.3) $ 1.8 Gross balance as of June 30, 2024 $ 1,142.1 $ 356.4 $ 205.7 $ 1,704.2 Accumulated goodwill impairment (369.0) (2.0) — (371.0) Net balance as of June 30, 2024 $ 773.1 $ 354.4 $ 205.7 $ 1,333.2 The following table sets forth intangible assets by class: June 30, 2024 September 30, 2023 Carrying Accumulated Net Carrying Accumulated Net Indefinite lived Trade names and brands $ 594.3 $ — $ 594.3 $ 592.9 $ — $ 592.9 Amortizable Trade names and brands $ 339.7 $ 100.0 $ 239.7 $ 339.6 $ 88.1 $ 251.5 Technology and patents 79.4 76.8 2.6 79.4 76.2 3.2 Customer related and other 270.6 155.0 115.6 269.8 143.6 126.2 Amortizable intangible assets 689.7 331.8 357.9 688.8 307.9 380.9 Total intangible assets $ 1,284.0 $ 331.8 $ 952.2 $ 1,281.7 $ 307.9 $ 973.8 Amortization expenses were $7.7 and $23.3 for the three and nine months ended June 30, 2024, respectively, and $7.8 and $23.2 for the three and nine months ended June 30, 2023, respectively. Estimated amortization expense for amortizable intangible assets is as follows: Estimated amortization expense Remainder of fiscal year 2024 $ 7.7 2025 31.1 2026 30.7 2027 30.5 2028 30.4 2029 30.3 Thereafter 197.2 Goodwill and intangible assets deemed to have an indefinite life are not amortized but are instead reviewed annually for impairment or when indicators of a potential impairment are present. The Company’s annual impairment testing date is July 1. 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. The Company determined there were no triggering events requiring an interim impairment analysis during the three and nine months ended June 30, 2024. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Jun. 30, 2024 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information June 30, September 30, Inventories Raw materials and supplies $ 80.3 $ 86.3 Work in process 88.8 91.1 Finished products 286.8 315.0 Total inventories $ 455.9 $ 492.4 Other Current Assets Prepaid expenses $ 76.1 $ 72.5 Value added tax receivables 44.8 43.7 Income taxes receivable 16.4 18.9 Other 14.4 12.3 Total other current assets $ 151.7 $ 147.4 Property, Plant and Equipment Land $ 18.6 $ 18.5 Buildings 144.2 142.6 Machinery and equipment 1,115.8 1,105.3 Capitalized software costs 61.9 60.2 Construction in progress 41.9 38.5 Total gross property, plant and equipment 1,382.4 1,365.1 Accumulated depreciation and amortization (1,057.0) (1,027.2) Total property, plant and equipment, net $ 325.4 $ 337.9 Other Current Liabilities Accrued advertising and sales promotion $ 51.0 $ 31.5 Accrued trade allowances 29.5 29.8 Accrued salaries, vacations and incentive compensation 53.3 65.4 Income taxes payable 18.2 11.9 Returns reserve 41.4 53.5 Value added tax payable 10.2 7.0 Accrued interest 9.6 25.0 Other 91.8 85.4 Total other current liabilities $ 305.0 $ 309.5 Other Liabilities Pensions and other retirement benefits $ 57.3 $ 58.2 Other 111.7 121.5 Total other liabilities $ 169.0 $ 179.7 |
Accounts Receivable Facility
Accounts Receivable Facility | 9 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Accounts receivable facility | Accounts Receivable Facilities The Company participates in accounts receivable facility programs both in the United States and Japan. These receivable agreements are between the Company and MUFG Bank, LTD, and the subsidiaries of both parties. Transfers under the accounts receivable repurchase agreements are accounted for as sales of accounts receivables, resulting in the receivables being derecognized from the Condensed 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 accounts receivable repurchase agreements 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 has considered its performance obligation to collect and service the receivables sold in the United States and Japan and has determined that the costs associated with such services are not material. The compensation received is considered acceptable servicing compensation and as such, the Company does not recognize a servicing asset or liability. On August 5, 2024, the Company entered into the Seventh Amendment to Master Accounts Receivable Purchase Agreement between Edgewell Personal Care, LLC and MUFG Bank, LTD., formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, (the “Accounts Receivable Facility”) which amended the pricing index used to determine the purchase price for subject receivables from the Bloomberg Short Term Bank Yield Index (“BSBY”) to Term Secured Overnight Financing Rate (“SOFR”). The applicable margin that is added to the SOFR pricing index specific for each obligor was unchanged. Except as noted above, all other material terms, conditions, obligations, covenants or agreements contained in the Accounts Receivable Facility are unmodified in all respects and continue in full force and effect. Accounts receivables sold were $353.5 and $886.0 for the three and nine months ended June 30, 2024, respectively, and $388.7 and $916.3 for the three and nine months ended June 30, 2023, respectively. The trade receivables sold that remained outstanding as of June 30, 2024 and September 30, 2023 were $158.5 and $82.1, respectively. The net proceeds received were included in both Cash provided by operating activities and Cash used by investing activities on the Condensed Consolidated Statements 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 Condensed Consolidated Statements of Earnings and Comprehensive Income. The loss on sale of trade receivables was $1.8 and $4.6 for the three and nine months ended June 30, 2024, respectively. The loss on sale of trade receivables was $2.1 and $4.5 for the three and nine months ended June 30, 2023 , respectively. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: June 30, September 30, Senior notes, fixed interest rate of 5.5%, due 2028 $ 750.0 $ 750.0 Senior notes, fixed interest rate of 4.1%, due 2029 500.0 500.0 U.S. Revolving Credit Facility 50.0 122.0 Total 1,300.0 1,372.0 Less unamortized debt issuance costs and discount (1) 9.6 11.3 Total long-term debt $ 1,290.4 $ 1,360.7 (1) As of June 30, 2024, debt issuance costs were $5.8 and $3.8 related to the Senior Notes due 2028 and the Senior Notes due 2029, respectively. As of September 30, 2023, debt issuance costs were $6.9 and $4.4 related to the Senior Notes due 2028 and the Senior Notes due 2029, respectively. As of June 30, 2024 and September 30, 2023 , the Company also had outstanding short-term notes payable with financial institutions with original maturities of less than 90 days of $21.4 a nd $19.5, respectively, with weighted-average interest rates of 3.8% and 3.9% as of June 30, 2024 and September 30, 2023, respectively. These notes were primarily outstanding international borrowings. U.S. Revolving Credit Facility On April 2, 2024, the Company and certain subsidiaries of the Company entered into a Restatement Agreement (the "Restatement Agreement") with Bank of America, N.A. as administrative agent and collateral agent, and the several lenders from time to time party thereto, which amended the Company’s Credit Agreement, dated as of March 28, 2020 (as previously amended by that certain Amendment No. 1 to Credit Agreement, dated as of February 6, 2023, and as otherwise amended, amended and restated, supplemented or otherwise modified prior to the Restatement Date, the “Credit Agreement”). Pursuant to the Restatement Agreement, all of the $425.0 of revolving facility commitments under the Credit Agreement (the “Existing Revolving Facility Commitments”) were replaced with an equal amount of new revolving facility commitments (the “Replacement Revolving Facility Commitments”, collectively, the “Revolving Credit Facility”) having substantially similar terms as the Existing Revolving Facility Commitments, except that the maturity date of the Replacement Revolving Facility Commitments will be the earlier of (i) April 2, 2029, and (ii) (a) March 2, 2028, if the aggregate outstanding amount of the Company’s 5.500% Senior Notes due 2028 is greater than $150.0 as of such date and (b) December 29, 2028, if the aggregate outstanding amount of the Company’s 4.125% Senior Notes due 2029 is greater than $150.0 of as such date, in each case, subject to certain exceptions. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jun. 30, 2024 | |
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. The plans provide retirement benefits based on years of service and compensation. 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 costs for its material plans were as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Service cost $ 0.5 $ 0.5 $ 1.4 $ 1.4 Interest cost 5.3 5.3 16.0 15.9 Expected return on plan assets (4.9) (5.4) (14.6) (16.3) Recognized net actuarial loss 0.4 0.4 1.1 1.2 Defined benefit settlement loss — — — 7.2 Net periodic cost $ 1.3 $ 0.8 $ 3.9 $ 9.4 The service cost component of the net periodic cost associated with the Company’s retirement plans is recorded to Cost of products sold and SG&A on the Condensed Consolidated Statement of Earnings and Comprehensive Income. The remaining net periodic cost is recorded to Other expense (income), net on the Condensed Consolidated Statement of Earnings and Comprehensive Income. The Company initiated the wind-up of its Canadian defined benefit pension plan (“Canada Plan”) in June 2021. On September 1, 2021, Edgewell Personal Care Canada ULC (“EPC Canada”) as administrator of the Canada Plan, entered into a buy-in annuity purchase agreement (“Buy-in Agreement”) with Brookfield Annuity Company (“Brookfield Annuity”) for certain members of the Canada Plan. On January 25, 2023, the Company received approval by the Financial Services Regulatory Authority of Ontario to wind-up the Canada Plan. Upon regulatory approval of the Canada Plan, EPC Canada proceeded with purchasing annuities for the remaining Canada Plan participants and converting the Buy-in Agreement to a buy-out annuity purchase agreement (“Buy-out Agreement”), which was purchased and funded by the Canada Plan on March 31, 2023. The Company was relieved of its defined benefit pension obligation through its irrevocable commitment under the Buy-out Agreement. As of the settlement date, the Company remeasured its assets and its project benefit obligation associated with the Canada Plan. Upon settlement, the Company derecognized the assets, projected benefit obligation and losses remaining in accumulated other comprehensive loss associated with the Canada Plan. A loss of $7.2 was recorded in Other expense (income), net on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended June 30, 2023. |
Equity
Equity | 9 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchases In January 2018, the Company’s Board of Directors (the “Board”) authorized the repurchase of up to 10.0 shares of the Company’s common stock, replacing the previous share repurchase authorization from May 2015. The Company repurchased 1.1 shares of its common stock for $40.2 during the nine months ended June 30, 2024. There are 3.5 shares of common stock available for repurchase in the future under the Board’s authorization as of June 30, 2024. Any future share repurchases may be made in the open market, privately negotiated transactions, or otherwise permitted, and in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs, and other factors. Dividends Dividend activity in the nine months ended June 30, 2024 are as follows: Date Declared Record Date Payable Date Amount Per Share August 1, 2023 September 7, 2023 October 4, 2023 $ 0.15 November 2, 2023 December 6, 2023 January 4, 2024 $ 0.15 February 1, 2024 March 7, 2024 April 4, 2024 $ 0.15 May 8, 2024 June 6, 2024 July 9, 2024 $ 0.15 On August 6, 2024, the Board declared a quarterly cash dividend of $0.15 per common share for the third fiscal quarter of 2024. The dividend will be payable on October 3, 2024 to shareholders of record as the close of business on September 4, 2024. Dividends declared during the nine months ended June 30, 2024 totaled $22.9. Payments made for dividends during the nine months ended June 30, 2024 totaled $23.3. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 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 as of October 1, 2023 $ (86.9) $ (86.0) $ 2.9 $ (170.0) Other comprehensive income (loss), net of tax (2.1) (1.9) 2.9 (1.1) Reclassifications to earnings — 0.8 (3.0) (2.2) Balance as of June 30, 2024 $ (89.0) $ (87.1) $ 2.8 $ (173.3) Foreign Pension and Hedging Total Balance as of October 1, 2022 $ (131.2) $ (92.6) $ 7.7 $ (216.1) Other comprehensive income (loss), net of tax 67.6 (2.3) (1.5) 63.8 Reclassifications to earnings — 6.2 (4.7) 1.5 Balance as of June 30, 2023 $ (63.6) $ (88.7) $ 1.5 $ (150.8) The following table presents the reclassifications out of AOCI: Three Months Ended Nine Months Ended Affected Line Item in the Details of AOCI Components 2024 2023 2024 2023 Gain on cash flow hedges Foreign exchange contracts $ 2.0 $ 1.0 $ 4.4 $ 6.8 Other expense (income), net Income tax expense 0.6 0.3 1.4 2.1 Income tax provision 1.4 0.7 3.0 4.7 Amortization of defined benefit pension and postretirement items Actuarial losses (1) $ (0.4) $ (0.4) $ (1.1) $ (1.2) Defined benefit settlement loss — — — (7.2) Other expense (income), net Income tax (benefit) (0.2) (0.1) (0.3) (2.2) Income tax provision (0.2) (0.3) (0.8) (6.2) Total reclassifications for the period $ 1.2 $ 0.4 $ 2.2 $ (1.5) (1) These AOCI components are included in the computation of net periodic cost. See Note 9 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management In the ordinary course of business, the Company may enter 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 in place as of June 30, 2024 and September 30, 2023, 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 an unfavorable 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 month. 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 (income), net in the Condensed Consolidated Statements of Earnings and Comprehensive Income. The primary currency to which the Company’s foreign subsidiaries are exposed is the U.S. dollar. Cash Flow Hedges As of June 30, 2024, the Company maintains 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 by the Company for accounting purposes in offsetting the associated risk. The Company has 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 $4.3 and $4.4 as of June 30, 2024 and September 30, 2023, respectively, on these forward currency contracts, which are accounted for as cash flow hedges and included in AOCI in the Condensed Consolidated Balance Sheets. Assuming foreign exchange rates versus the U.S. dollar remain at June 30, 2024 levels over the next 12 months, the majority of the pre-tax gain included in AOCI in the Condensed Consolidated Balance Sheets as of June 30, 2024 is expected to be included in Other expense (income), net in the Condensed Consolidated Statements of Earnings and Comprehensive Income. Contract maturities for these hedges extend into fiscal 2026. As of June 30, 2024, there were 64 open foreign currency contracts with a total notional value of $107.6. Derivatives not Designated as Hedges The Company has 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 expected to be subject to significant market risk. The change in the estimated fair value of the foreign currency contracts for the three and nine months ended June 30, 2024, resulted in a gain of $ 0.7 1.3 3.7 1.7 The following table provides estimated fair values of derivative instruments: Fair Value of Assets (Liabilities) as of (1) June 30, September 30, Derivatives designated as cash flow hedging relationships: Foreign currency contracts $ 4.3 $ 4.4 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts $ 0.2 $ 0.9 (1) Derivative assets are presented in Other current assets or Other assets. Derivative liabilities are presented in Other current liabilities or Other liabilities. The following table provides the pre-tax amounts of gains and losses on derivative instruments: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Derivatives designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in OCI (1) $ 2.9 $ 3.7 $ 4.4 $ (2.1) Gain reclassified from AOCI into income (1) (2) 2.0 1.0 4.4 6.8 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts Gain recognized in income (2) $ 0.7 $ 3.7 $ 1.3 $ 1.7 (1) Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and have been deemed highly effective by the Company in offsetting associated risk. (2) Gain was recorded in Other expense (income), net in the Condensed Consolidated Statements of Earnings and Comprehensive Income. The following table provides financial assets and liabilities for balance sheet offsetting: As of June 30, 2024 As of September 30, 2023 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Foreign currency contracts Gross amounts of recognized assets (liabilities) $ 4.7 $ (0.2) $ 6.1 $ (0.7) Gross amounts offset in the balance sheet — — (0.2) 0.4 Net amounts of assets (liabilities) presented in the balance sheet $ 4.7 $ (0.2) $ 5.9 $ (0.3) (1) All derivative assets are presented in Other current assets or Other assets on the Condensed Consolidated Balance Sheets. (2) All derivative liabilities are presented in Other current liabilities or Other liabilities on the Condensed Consolidated Balance Sheets. 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. 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: June 30, September 30, Assets (Liabilities) at estimated fair value: Deferred compensation liability $ (20.9) $ (19.4) Derivatives - foreign currency contracts asset 4.5 5.6 Net assets (liabilities) at estimated fair value $ (16.4) $ (13.8) 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. As of June 30, 2024 and September 30, 2023, 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. As of June 30, 2024 and September 30, 2023, the Company had no Level 1 financial assets or liabilities, other than pension plan assets, and no Level 3 financial assets or liabilities as of June 30, 2024 and September 30, 2023, respectively. As of June 30, 2024 and September 30, 2023, the fair market value of fixed rate long-term debt was $1,135.3 and $1,028.6, respectively, compared to its carrying value of $1,250.0 in each period. 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 long-term debt, excluding the Company’s credit agreement, dated as of April 2, 2024, by and among, inter alia, the Company, the subsidiaries of the Company from time to time parties thereto, the lenders from time to time parties thereto, Bank of America, N.A. as administrative agent and collateral agent, has been determined based on Level 2 inputs. |
Segment Data
Segment Data | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data For an overview of the Company’s segments, refer to Note 1 of the Notes to Condensed Consolidated Financial Statements. Segment performance is evaluated based on segment profit, excluding certain U.S. GAAP items that management does not believe are indicative of ongoing operating performance due to their unusual or non-recurring nature and which may have a disproportionate positive or negative impact on the Company’s financial results in any particular period. Financial items, such as interest income and expense, are managed on a global basis at the corporate level and therefore are excluded from segment profit. The exclusion of such charges from segment results reflects management’s view on how management monitors and evaluates segment operating performance, generates future operating plans and makes strategic decisions regarding the allocation of capital. 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. Segment net sales and profitability are presented below: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net Sales Wet Shave $ 316.3 $ 324.1 $ 911.1 $ 908.0 Sun and Skin Care 256.9 244.9 608.1 567.5 Feminine Care 74.6 81.0 216.9 242.0 Total net sales $ 647.8 $ 650.0 $ 1,736.1 $ 1,717.5 Segment Profit Wet Shave $ 47.6 $ 32.3 $ 141.7 $ 103.4 Sun and Skin Care 64.2 61.4 117.3 114.7 Feminine Care 6.6 14.0 22.6 38.1 Total segment profit 118.4 107.7 281.6 256.2 General corporate and other expenses (15.8) (15.8) (47.0) (48.7) Amortization of intangibles (7.7) (7.8) (23.3) (23.2) Interest and other expense, net (17.2) (15.4) (60.4) (53.3) Restructuring and repositioning expenses (1) (3.2) (3.1) (13.2) (8.9) Acquisition and integration costs (2) (0.7) (1.0) (2.1) (5.1) Sun Care reformulation costs (3) (1.3) (0.6) (2.2) (1.7) Wet Ones manufacturing plant fire (4) (2.7) — (8.0) — Legal matters (5) (2.5) 6.8 (3.9) 6.3 Loss on investment (6) (3.1) — (3.1) — Defined benefit settlement loss (7) — — — (7.2) Other project costs (8) (1.7) — (2.9) — Total earnings before income taxes $ 62.5 $ 70.8 $ 115.5 $ 114.4 (1) Includes pre-tax SG&A of $0.1 for both the three and nine months ended June 30, 2024, and $0.1 and $0.2 for the three and nine months ended June 30, 2023, respectively. Includes pre-tax Cost of products sold of nil and $0.2 for the three and nine months ended June 30, 2023, respectively. See Note 2 of the Notes to Condensed Consolidated Financial Statements. (2) Includes pre-tax SG&A of $0.7 and $2.1 for the three and nine months ended June 30, 2024, respectively, for the acquisition of Billie, Inc. on November 29, 2021. Includes pre-tax SG&A of $1.0 and $5.1 for the three and nine months ended June 30, 2023, respectively. (3) Includes pre-tax research and development costs of $1.3 and 2.2 for the three and nine months ended June 30, 2024, respectively, and $0.6 and $1.7 for the three and nine months ended June 30, 2023, respectively, related to the reformulation, recall and destruction of certain Sun Care products. (4) On December 1, 2023, a fire occurred at our Wet Ones manufacturing plant in Sidney, Ohio. There were no injuries reported and damage was limited to a single manufacturing process. As a consequence of the fire damage, there was a partial shutdown of the operations that manufacture Wet Ones raw materials. Through the three and nine months ended June 30, 2024, the Company has incurred $2.7 and $8.0, respectively, in costs related to incremental material charges, labor and absorption as a result of the fire. (5) Includes pre-tax SG&A of $2.5 and $3.9 for the three and nine months ended June 30, 2024, related to reserves for legal matters. Includes pre-tax income in SG&A of $7.1, net of other costs of $0.3 the three months ended June 30, 2023, and $7.1, net of other costs of $0.8 for the nine months ended June 30, 2023, related to the favorable resolution of legal matters. (6) Includes pre-tax loss of $3.1 for the three and nine months ended June 30, 2024, on an equity method investment and a related note receivable as a result of a new contractual agreement. (7) Includes pre-tax loss of nil and $7.2 for the three and nine months ended June 30, 2023, related to the settlement of the Canada Plan. See Note 9 of the Notes to Condensed Consolidated Financial Statements. (8) Includes pre-tax SG&A of $1.7 and $2.9 for the three and nine months ended June 30, 2024, related to certain corporate project costs. The following table presents the Company’s net sales by geographic area: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net Sales to Customers United States $ 373.7 $ 391.6 $ 983.0 $ 1,031.3 International 274.1 258.4 753.1 686.2 Total net sales $ 647.8 $ 650.0 $ 1,736.1 $ 1,717.5 Supplemental product information is presented below for net sales: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Razors and blades $ 287.4 $ 291.2 $ 822.7 $ 816.6 Tampons, pads, and liners 74.6 81.0 216.9 242.0 Sun care products 191.3 184.2 417.3 385.8 Grooming products 43.5 38.2 135.3 123.5 Wipes and other skin care 22.1 22.5 55.5 58.2 Shaving gels and creams 28.9 32.9 88.4 91.4 Total net sales $ 647.8 $ 650.0 $ 1,736.1 $ 1,717.5 |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Legal Proceedings The Company and its subsidiaries are subject to a number of legal proceedings in various jurisdictions arising out of its operations during the ordinary course of business. Many of these legal matters are in preliminary stages and involve complex issues of law and fact and may proceed for protracted periods of time. The amount of liability, if any, from these proceedings cannot be determined with certainty. The Company reviews its legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for those contingencies when the incurrence of a loss is probable and can be reasonably estimated and discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued if such disclosure is necessary for its financial statements to not be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims, and known potential legal claims which are likely to be asserted, is not reasonably likely to be material to its financial position, results of operations or cash flows, when taking into account established accruals for estimated liabilities. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net earnings | $ 49 | $ 36 | $ 4.8 | $ 53 | $ 19.4 | $ 12.4 | $ 89.8 | $ 84.8 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 9 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | 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, and feminine care categories. With operations in over 20 countries, the Company’s products are widely available in more than 50 countries. The Company conducts its business in the following three segments: • Wet Shave consists of products sold under the Schick®, Wilkinson Sword TM , Edge, Skintimate®, Billie®, Shave Guard and our custom brands group (formerly sold under our 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®, Bulldog® and Cremo® men’s and women’s grooming products, Billie women’s grooming products and Wet Ones® products. • Feminine Care includes tampons, pads and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree®, and o.b.® brands. |
Basis of Accounting, Policy | 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 statement 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 28, 2023. Certain immaterial prior year amounts have been reclassified to conform with the current year’s presentation. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures to update income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The amendments may be applied prospectively or retrospectively and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to expand reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023. Interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. Recently Adopted Accounting Pronouncements In September 2022, the FASB issued Accounting Standards Update 2022-04, " Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations " which requires that a buyer in a supplier finance program disclose additional information about the program for financial statement users including a rollforward of those obligations. The Company adopted the standard as of October 1, 2023, except for amendments relating to the rollforward requirement, which is effective for fiscal years beginning after December 15, 2023. |
Comparability of Prior Year Financial Data, Policy | Revision of Previously Issued Consolidated Financial Statements As previously disclosed in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on November 28, 2023, the Company evaluated aged accrued expenditures related to goods received but not yet invoiced by certain of its vendors (“GRNI”). Based upon an assessment, including evaluating the expiry of the applicable statute of limitations of the accrued expenditures, the Company concluded that $8.5 of aged accrued GRNI originating in years 2014 through 2018 were no longer required to be reflected as accounts payable on the Consolidated Balance Sheet as of September 30, 2023 and should have been reversed in prior fiscal years. The Company concluded that the misstatements were not material, either individually or in the aggregate, to its previously issued consolidated financial statements. To correct the immaterial misstatements, the Company has revised the Condensed Consolidated Statements of Earnings and Comprehensive Income and Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended June 30, 2023, the Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2023, as well as the associated Notes to the Condensed Consolidated Financial Statements to reflect the corrections of these immaterial misstatements as of and for the three and nine months ended June 30, 2023. There were no changes to previously issued total cash flows generated from (used by) operating, investing, or financing activities for nine months ended June 30, 2023. The following table reflects the revisions to the previously issued Condensed Consolidated Statements of Earnings and Comprehensive Income for the three and nine months ended June 30, 2023: Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Cost of products sold $ 370.3 $ (0.6) $ 369.7 $ 1,007.1 $ (1.8) $ 1,005.3 Gross profit 279.7 0.6 280.3 710.4 1.8 712.2 Operating income 85.6 0.6 86.2 173.1 1.8 174.9 Earnings before income taxes 70.2 0.6 70.8 112.6 1.8 114.4 Income tax provision 17.7 0.1 17.8 29.2 0.4 29.6 Net earnings 52.5 0.5 53.0 83.4 1.4 84.8 Earnings per share: Basic net earnings per share $ 1.03 $ 0.01 $ 1.04 $ 1.62 $ 0.03 $ 1.65 Dilutive net earnings per share 1.01 0.01 1.02 1.61 0.02 1.63 Total comprehensive income $ 61.4 $ 0.5 $ 61.9 $ 148.7 $ 1.4 $ 150.1 The following table reflects the revisions to the previously issued Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2023. As Previously Reported Adjustment As Revised Net earnings $ 83.4 $ 1.4 $ 84.8 Changes in operating assets and liabilities 7.8 (1.4) 6.4 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Restructuring Charges [Abstract] | |
Schedule of Charges Related to Restructuring Activities | Three Months Ended June 30, Nine Months Ended June 30, 2024 2023 2024 2023 Severance and related costs $ 1.3 $ 1.3 $ 6.3 $ 4.1 Asset write-off and accelerated depreciation — 0.1 0.3 0.3 Consulting, project implementation and management, and other exit costs 1.9 1.7 6.6 4.7 Total restructuring and repositioning charges (1) (2) $ 3.2 $ 3.1 $ 13.2 $ 9.1 (1) Restructuring and repositioning charges of nil and $0.2 are included within Cost of products sold for the three and nine months ended June 30, 2023, respectively. (2) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 net earnings per share calculation: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic weighted-average shares outstanding 49.5 51.1 49.8 51.3 Effect of dilutive securities: Options, RSE and PRSE awards 0.6 0.7 0.5 0.6 Total dilutive securities 0.6 0.7 0.5 0.6 Diluted weighted-average shares outstanding 50.1 51.8 50.3 51.9 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted-average common shares were excluded from the calculation of diluted net earnings per share because the effect of including these awards was antidilutive. Three Months Ended Nine Months Ended 2024 2023 2024 2023 Options, RSE and PRSE awards 1.1 0.8 1.1 1.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth intangible assets by class: June 30, 2024 September 30, 2023 Carrying Accumulated Net Carrying Accumulated Net Indefinite lived Trade names and brands $ 594.3 $ — $ 594.3 $ 592.9 $ — $ 592.9 Amortizable Trade names and brands $ 339.7 $ 100.0 $ 239.7 $ 339.6 $ 88.1 $ 251.5 Technology and patents 79.4 76.8 2.6 79.4 76.2 3.2 Customer related and other 270.6 155.0 115.6 269.8 143.6 126.2 Amortizable intangible assets 689.7 331.8 357.9 688.8 307.9 380.9 Total intangible assets $ 1,284.0 $ 331.8 $ 952.2 $ 1,281.7 $ 307.9 $ 973.8 |
Schedule of Amortizable Intangible Assets | The following table sets forth intangible assets by class: June 30, 2024 September 30, 2023 Carrying Accumulated Net Carrying Accumulated Net Indefinite lived Trade names and brands $ 594.3 $ — $ 594.3 $ 592.9 $ — $ 592.9 Amortizable Trade names and brands $ 339.7 $ 100.0 $ 239.7 $ 339.6 $ 88.1 $ 251.5 Technology and patents 79.4 76.8 2.6 79.4 76.2 3.2 Customer related and other 270.6 155.0 115.6 269.8 143.6 126.2 Amortizable intangible assets 689.7 331.8 357.9 688.8 307.9 380.9 Total intangible assets $ 1,284.0 $ 331.8 $ 952.2 $ 1,281.7 $ 307.9 $ 973.8 Amortization expenses were $7.7 and $23.3 for the three and nine months ended June 30, 2024, respectively, and $7.8 and $23.2 for the three and nine months ended June 30, 2023, respectively. Estimated amortization expense for amortizable intangible assets is as follows: Estimated amortization expense Remainder of fiscal year 2024 $ 7.7 2025 31.1 2026 30.7 2027 30.5 2028 30.4 2029 30.3 Thereafter 197.2 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplement Balance Sheet Information | June 30, September 30, Inventories Raw materials and supplies $ 80.3 $ 86.3 Work in process 88.8 91.1 Finished products 286.8 315.0 Total inventories $ 455.9 $ 492.4 Other Current Assets Prepaid expenses $ 76.1 $ 72.5 Value added tax receivables 44.8 43.7 Income taxes receivable 16.4 18.9 Other 14.4 12.3 Total other current assets $ 151.7 $ 147.4 Property, Plant and Equipment Land $ 18.6 $ 18.5 Buildings 144.2 142.6 Machinery and equipment 1,115.8 1,105.3 Capitalized software costs 61.9 60.2 Construction in progress 41.9 38.5 Total gross property, plant and equipment 1,382.4 1,365.1 Accumulated depreciation and amortization (1,057.0) (1,027.2) Total property, plant and equipment, net $ 325.4 $ 337.9 Other Current Liabilities Accrued advertising and sales promotion $ 51.0 $ 31.5 Accrued trade allowances 29.5 29.8 Accrued salaries, vacations and incentive compensation 53.3 65.4 Income taxes payable 18.2 11.9 Returns reserve 41.4 53.5 Value added tax payable 10.2 7.0 Accrued interest 9.6 25.0 Other 91.8 85.4 Total other current liabilities $ 305.0 $ 309.5 Other Liabilities Pensions and other retirement benefits $ 57.3 $ 58.2 Other 111.7 121.5 Total other liabilities $ 169.0 $ 179.7 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The detail of long-term debt was as follows: June 30, September 30, Senior notes, fixed interest rate of 5.5%, due 2028 $ 750.0 $ 750.0 Senior notes, fixed interest rate of 4.1%, due 2029 500.0 500.0 U.S. Revolving Credit Facility 50.0 122.0 Total 1,300.0 1,372.0 Less unamortized debt issuance costs and discount (1) 9.6 11.3 Total long-term debt $ 1,290.4 $ 1,360.7 (1) As of June 30, 2024, debt issuance costs were $5.8 and $3.8 related to the Senior Notes due 2028 and the Senior Notes due 2029, respectively. As of September 30, 2023, debt issuance costs were $6.9 and $4.4 related to the Senior Notes due 2028 and the Senior Notes due 2029, respectively. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension and Postretirement Cost (Benefit) | The Company’s net periodic pension and postretirement costs for its material plans were as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Service cost $ 0.5 $ 0.5 $ 1.4 $ 1.4 Interest cost 5.3 5.3 16.0 15.9 Expected return on plan assets (4.9) (5.4) (14.6) (16.3) Recognized net actuarial loss 0.4 0.4 1.1 1.2 Defined benefit settlement loss — — — 7.2 Net periodic cost $ 1.3 $ 0.8 $ 3.9 $ 9.4 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Dividends Declared | Dividends Dividend activity in the nine months ended June 30, 2024 are as follows: Date Declared Record Date Payable Date Amount Per Share August 1, 2023 September 7, 2023 October 4, 2023 $ 0.15 November 2, 2023 December 6, 2023 January 4, 2024 $ 0.15 February 1, 2024 March 7, 2024 April 4, 2024 $ 0.15 May 8, 2024 June 6, 2024 July 9, 2024 $ 0.15 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 as of October 1, 2023 $ (86.9) $ (86.0) $ 2.9 $ (170.0) Other comprehensive income (loss), net of tax (2.1) (1.9) 2.9 (1.1) Reclassifications to earnings — 0.8 (3.0) (2.2) Balance as of June 30, 2024 $ (89.0) $ (87.1) $ 2.8 $ (173.3) Foreign Pension and Hedging Total Balance as of October 1, 2022 $ (131.2) $ (92.6) $ 7.7 $ (216.1) Other comprehensive income (loss), net of tax 67.6 (2.3) (1.5) 63.8 Reclassifications to earnings — 6.2 (4.7) 1.5 Balance as of June 30, 2023 $ (63.6) $ (88.7) $ 1.5 $ (150.8) |
Schedule of Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents the reclassifications out of AOCI: Three Months Ended Nine Months Ended Affected Line Item in the Details of AOCI Components 2024 2023 2024 2023 Gain on cash flow hedges Foreign exchange contracts $ 2.0 $ 1.0 $ 4.4 $ 6.8 Other expense (income), net Income tax expense 0.6 0.3 1.4 2.1 Income tax provision 1.4 0.7 3.0 4.7 Amortization of defined benefit pension and postretirement items Actuarial losses (1) $ (0.4) $ (0.4) $ (1.1) $ (1.2) Defined benefit settlement loss — — — (7.2) Other expense (income), net Income tax (benefit) (0.2) (0.1) (0.3) (2.2) Income tax provision (0.2) (0.3) (0.8) (6.2) Total reclassifications for the period $ 1.2 $ 0.4 $ 2.2 $ (1.5) (1) These AOCI components are included in the computation of net periodic cost. See Note 9 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 Assets (Liabilities) as of (1) June 30, September 30, Derivatives designated as cash flow hedging relationships: Foreign currency contracts $ 4.3 $ 4.4 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts $ 0.2 $ 0.9 (1) Derivative assets are presented in Other current assets or Other assets. Derivative liabilities are presented in Other current liabilities or Other liabilities. |
Schedule of Gains and Losses on Derivative Instruments | The following table provides the pre-tax amounts of gains and losses on derivative instruments: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Derivatives designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in OCI (1) $ 2.9 $ 3.7 $ 4.4 $ (2.1) Gain reclassified from AOCI into income (1) (2) 2.0 1.0 4.4 6.8 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts Gain recognized in income (2) $ 0.7 $ 3.7 $ 1.3 $ 1.7 (1) Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and have been deemed highly effective by the Company in offsetting associated risk. (2) |
Schedule of Offsetting Assets and Liabilities | The following table provides financial assets and liabilities for balance sheet offsetting: As of June 30, 2024 As of September 30, 2023 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Foreign currency contracts Gross amounts of recognized assets (liabilities) $ 4.7 $ (0.2) $ 6.1 $ (0.7) Gross amounts offset in the balance sheet — — (0.2) 0.4 Net amounts of assets (liabilities) presented in the balance sheet $ 4.7 $ (0.2) $ 5.9 $ (0.3) (1) All derivative assets are presented in Other current assets or Other assets on the Condensed Consolidated Balance Sheets. (2) All derivative liabilities are presented in Other current liabilities or Other liabilities on the Condensed Consolidated Balance Sheets. |
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: June 30, September 30, Assets (Liabilities) at estimated fair value: Deferred compensation liability $ (20.9) $ (19.4) Derivatives - foreign currency contracts asset 4.5 5.6 Net assets (liabilities) at estimated fair value $ (16.4) $ (13.8) |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Sales and Profitability | Segment net sales and profitability are presented below: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net Sales Wet Shave $ 316.3 $ 324.1 $ 911.1 $ 908.0 Sun and Skin Care 256.9 244.9 608.1 567.5 Feminine Care 74.6 81.0 216.9 242.0 Total net sales $ 647.8 $ 650.0 $ 1,736.1 $ 1,717.5 Segment Profit Wet Shave $ 47.6 $ 32.3 $ 141.7 $ 103.4 Sun and Skin Care 64.2 61.4 117.3 114.7 Feminine Care 6.6 14.0 22.6 38.1 Total segment profit 118.4 107.7 281.6 256.2 General corporate and other expenses (15.8) (15.8) (47.0) (48.7) Amortization of intangibles (7.7) (7.8) (23.3) (23.2) Interest and other expense, net (17.2) (15.4) (60.4) (53.3) Restructuring and repositioning expenses (1) (3.2) (3.1) (13.2) (8.9) Acquisition and integration costs (2) (0.7) (1.0) (2.1) (5.1) Sun Care reformulation costs (3) (1.3) (0.6) (2.2) (1.7) Wet Ones manufacturing plant fire (4) (2.7) — (8.0) — Legal matters (5) (2.5) 6.8 (3.9) 6.3 Loss on investment (6) (3.1) — (3.1) — Defined benefit settlement loss (7) — — — (7.2) Other project costs (8) (1.7) — (2.9) — Total earnings before income taxes $ 62.5 $ 70.8 $ 115.5 $ 114.4 (1) Includes pre-tax SG&A of $0.1 for both the three and nine months ended June 30, 2024, and $0.1 and $0.2 for the three and nine months ended June 30, 2023, respectively. Includes pre-tax Cost of products sold of nil and $0.2 for the three and nine months ended June 30, 2023, respectively. See Note 2 of the Notes to Condensed Consolidated Financial Statements. (2) Includes pre-tax SG&A of $0.7 and $2.1 for the three and nine months ended June 30, 2024, respectively, for the acquisition of Billie, Inc. on November 29, 2021. Includes pre-tax SG&A of $1.0 and $5.1 for the three and nine months ended June 30, 2023, respectively. (3) Includes pre-tax research and development costs of $1.3 and 2.2 for the three and nine months ended June 30, 2024, respectively, and $0.6 and $1.7 for the three and nine months ended June 30, 2023, respectively, related to the reformulation, recall and destruction of certain Sun Care products. (4) On December 1, 2023, a fire occurred at our Wet Ones manufacturing plant in Sidney, Ohio. There were no injuries reported and damage was limited to a single manufacturing process. As a consequence of the fire damage, there was a partial shutdown of the operations that manufacture Wet Ones raw materials. Through the three and nine months ended June 30, 2024, the Company has incurred $2.7 and $8.0, respectively, in costs related to incremental material charges, labor and absorption as a result of the fire. (5) Includes pre-tax SG&A of $2.5 and $3.9 for the three and nine months ended June 30, 2024, related to reserves for legal matters. Includes pre-tax income in SG&A of $7.1, net of other costs of $0.3 the three months ended June 30, 2023, and $7.1, net of other costs of $0.8 for the nine months ended June 30, 2023, related to the favorable resolution of legal matters. (6) Includes pre-tax loss of $3.1 for the three and nine months ended June 30, 2024, on an equity method investment and a related note receivable as a result of a new contractual agreement. (7) Includes pre-tax loss of nil and $7.2 for the three and nine months ended June 30, 2023, related to the settlement of the Canada Plan. See Note 9 of the Notes to Condensed Consolidated Financial Statements. (8) Includes pre-tax SG&A of $1.7 and $2.9 for the three and nine months ended June 30, 2024, related to certain corporate project costs. |
Schedule of Sales by Geographic Area | The following table presents the Company’s net sales by geographic area: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net Sales to Customers United States $ 373.7 $ 391.6 $ 983.0 $ 1,031.3 International 274.1 258.4 753.1 686.2 Total net sales $ 647.8 $ 650.0 $ 1,736.1 $ 1,717.5 |
Schedule of Supplemental Product Information | Supplemental product information is presented below for net sales: Three Months Ended Nine Months Ended 2024 2023 2024 2023 Razors and blades $ 287.4 $ 291.2 $ 822.7 $ 816.6 Tampons, pads, and liners 74.6 81.0 216.9 242.0 Sun care products 191.3 184.2 417.3 385.8 Grooming products 43.5 38.2 135.3 123.5 Wipes and other skin care 22.1 22.5 55.5 58.2 Shaving gels and creams 28.9 32.9 88.4 91.4 Total net sales $ 647.8 $ 650.0 $ 1,736.1 $ 1,717.5 |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2024 USD ($) country $ / shares | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) country $ / shares | Jun. 30, 2023 USD ($) $ / shares | Sep. 30, 2023 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Number of countries in which Edgewell operates | country | 20 | 20 | |||||||
Number of countries with retail operations | country | 50 | 50 | |||||||
Repayments of Revolving Credit Facility | $ 705,000,000 | $ 715,000,000 | |||||||
Number of Reportable Segments | country | 3 | ||||||||
Cost of products sold | $ 360,700,000 | $ 369,700,000 | 993,200,000 | 1,005,300,000 | |||||
Segment profit | 82,700,000 | 86,200,000 | 178,900,000 | 174,900,000 | |||||
Earnings before income taxes | 62,500,000 | 70,800,000 | 115,500,000 | 114,400,000 | |||||
Income tax provision | 13,500,000 | 17,800,000 | 25,700,000 | 29,600,000 | |||||
Net earnings | $ 49,000,000 | $ 36,000,000 | $ 4,800,000 | $ 53,000,000 | $ 19,400,000 | $ 12,400,000 | $ 89,800,000 | $ 84,800,000 | |
Basic net earnings per share | $ / shares | $ 0.99 | $ 1.04 | $ 1.80 | $ 1.65 | |||||
Diluted net earnings per share | $ / shares | $ 0.98 | $ 1.02 | $ 1.79 | $ 1.63 | |||||
Gross Profit | $ 287,100,000 | $ 280,300,000 | $ 742,900,000 | $ 712,200,000 | |||||
Net sales | 647,800,000 | 650,000,000 | 1,736,100,000 | 1,717,500,000 | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 36,000,000 | 61,900,000 | 86,500,000 | 150,100,000 | |||||
Supplier Finance Program, Obligation | 22.4 | 22.4 | $ 21.8 | ||||||
Accounts Payable, Current | $ (208,700,000) | (208,700,000) | (194,400,000) | ||||||
Other, net | $ (8,500,000) | 6,400,000 | |||||||
Restatement Adjustment | |||||||||
Cost of products sold | (600,000) | (1,800,000) | |||||||
Segment profit | 600,000 | 1,800,000 | |||||||
Earnings before income taxes | 600,000 | 1,800,000 | |||||||
Income tax provision | 100,000 | 400,000 | |||||||
Net earnings | $ 500,000 | $ 1,400,000 | |||||||
Basic net earnings per share | $ / shares | $ 0.01 | $ 0.03 | |||||||
Diluted net earnings per share | $ / shares | $ 0.01 | $ 0.02 | |||||||
Gross Profit | $ 600,000 | $ 1,800,000 | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 500,000 | 1,400,000 | |||||||
Accounts Payable, Current | $ 8,500,000 | ||||||||
Other, net | (1,400,000) | ||||||||
Previously Reported | |||||||||
Cost of products sold | 370,300,000 | 1,007,100,000 | |||||||
Segment profit | 85,600,000 | 173,100,000 | |||||||
Earnings before income taxes | 70,200,000 | 112,600,000 | |||||||
Income tax provision | 17,700,000 | 29,200,000 | |||||||
Net earnings | $ 52,500,000 | $ 83,400,000 | |||||||
Basic net earnings per share | $ / shares | $ 1.03 | $ 1.62 | |||||||
Diluted net earnings per share | $ / shares | $ 1.01 | $ 1.61 | |||||||
Gross Profit | $ 279,700,000 | $ 710,400,000 | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 61,400,000 | 148,700,000 | |||||||
Other, net | $ 7,800,000 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of Charges Related to Restructuring Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 1.3 | $ 1.3 | $ 6.3 | $ 4.1 | |
Other Restructuring Costs | 1.9 | 1.7 | 6.6 | 4.7 | |
Restructuring and related costs | 3.2 | 3.1 | 13.2 | 9.1 | |
Restructuring Reserve | 1.8 | 1.8 | $ 4.6 | ||
Asset Impairment and Accelerated Depreciation | 0 | 0.1 | 0.3 | 0.3 | |
Restructuring Charges, including amounts included in Cost of Products Sold | 0 | 0.2 | |||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses | 8.9 | ||||
Selling, general and administrative expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.2 |
Restructuring Charges (Schedu_2
Restructuring Charges (Schedule of Restructuring Activities and Related Accruals) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 4,600,000 | |||
Restructuring and related costs | $ 3,200,000 | $ 3,100,000 | 13,200,000 | $ 9,100,000 |
Utilized - Cash Payments | (16,000,000) | |||
Ending Balance | 1,800,000 | 1,800,000 | ||
Restructuring and Related Cost, Expected Cost | 19 | 19 | ||
Restructuring Charges, including amounts included in Cost of Products Sold | $ 0 | $ 200,000 | ||
Employee Severance [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 3,900,000 | |||
Restructuring and related costs | 6,600,000 | |||
Utilized - Cash Payments | (8,700,000) | |||
Ending Balance | 1,800,000 | 1,800,000 | ||
Other Restructuring [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 700,000 | |||
Restructuring and related costs | 6,600,000 | |||
Utilized - Cash Payments | (7,300,000) | |||
Ending Balance | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 13.5 | $ 17.8 | $ 25.7 | $ 29.6 |
Earnings before income taxes | $ 62.5 | $ 70.8 | $ 115.5 | $ 114.4 |
Effective tax rate | 21.60% | 25.30% | 22.20% | 25.90% |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Weighted-Average Shares Outstanding) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule Of Weighted Average Number Of Shares [Line Items] | ||||
Basic weighted-average shares outstanding (in shares) | 49.5 | 51.1 | 49.8 | 51.3 |
Effect of dilutive securities (in shares) | 0.6 | 0.7 | 0.5 | 0.6 |
Diluted weighted-average shares outstanding (in shares) | 50.1 | 51.8 | 50.3 | 51.9 |
Share options | ||||
Schedule Of Weighted Average Number Of Shares [Line Items] | ||||
Anti-dilutive awards excluded from the calculation of diluted weighted-average shares outstanding (in shares) | 1.1 | 0.8 | 1.1 | 1 |
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) | 1.1 | 0.8 | 1.1 | 1 |
RSE and PRSE awards | ||||
Schedule Of Weighted Average Number Of Shares [Line Items] | ||||
Effect of dilutive securities (in shares) | 0.6 | 0.7 | 0.5 | 0.6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
Goodwill [Line Items] | ||
Goodwill, Gross | $ 1,704.2 | $ 1,702.4 |
Accumulated goodwill impairment loss | 371 | 371 |
Goodwill [Roll Forward] | ||
Beginning balance | 1,331.4 | |
Cumulative translation adjustment | (1.8) | |
Ending balance | 1,333.2 | |
Wet Shave | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 1,142.1 | 1,140.5 |
Accumulated goodwill impairment loss | 369 | 369 |
Goodwill [Roll Forward] | ||
Beginning balance | 771.5 | |
Cumulative translation adjustment | (1.6) | |
Ending balance | 773.1 | |
Sun and Skin Care | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 356.4 | 355.9 |
Accumulated goodwill impairment loss | 2 | 2 |
Goodwill [Roll Forward] | ||
Beginning balance | 353.9 | |
Cumulative translation adjustment | (0.5) | |
Ending balance | 354.4 | |
Feminine Care | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 205.7 | 206 |
Accumulated goodwill impairment loss | 0 | $ 0 |
Goodwill [Roll Forward] | ||
Beginning balance | 206 | |
Cumulative translation adjustment | 0.3 | |
Ending balance | $ 205.7 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Amortizable Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets, gross carrying amount | $ 689.7 | $ 689.7 | $ 688.8 | ||
Amortizable intangible assets, accumulated amortization | 331.8 | 331.8 | 307.9 | ||
Amortizable intangible assets, net | 357.9 | 357.9 | 380.9 | ||
Other intangible assets, net | 952.2 | 952.2 | 973.8 | ||
Intangible Assets, Gross (Excluding Goodwill) | 1,284 | 1,284 | 1,281.7 | ||
Amortization of intangibles | 7.7 | $ 7.8 | 23.3 | $ 23.2 | |
Amortizable intangible assets, amortization expense, remainder of 2023 | 7.7 | 7.7 | |||
Amortizable intangible assets, amortization expense, fiscal 2024 | 31.1 | 31.1 | |||
Amortizable intangible assets, amortization expense, fiscal 2025 | 30.7 | 30.7 | |||
Amortizable intangible assets, amortization expense, fiscal 2026 | 30.5 | 30.5 | |||
Amortizable intangible assets, amortization expense, fiscal 2027 | 30.4 | 30.4 | |||
Amortizable intangible assets, amortization expense, fiscal 2028 | 30.3 | 30.3 | |||
Amortizable intangible assets, amortization expense, after fiscal 2028 | 197.2 | 197.2 | |||
Indefinite-lived intangible assets | 594.3 | 594.3 | 592.9 | ||
Trade names and brands | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets, gross carrying amount | 339.7 | 339.7 | 339.6 | ||
Amortizable intangible assets, accumulated amortization | 100 | 100 | 88.1 | ||
Amortizable intangible assets, net | 239.7 | 239.7 | 251.5 | ||
Technology and patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets, gross carrying amount | 79.4 | 79.4 | 79.4 | ||
Amortizable intangible assets, accumulated amortization | 76.8 | 76.8 | 76.2 | ||
Amortizable intangible assets, net | 2.6 | 2.6 | 3.2 | ||
Customer related and other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets, gross carrying amount | 270.6 | 270.6 | 269.8 | ||
Amortizable intangible assets, accumulated amortization | 155 | 155 | 143.6 | ||
Amortizable intangible assets, net | $ 115.6 | $ 115.6 | $ 126.2 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Inventories | ||
Raw materials and supplies | $ 80.3 | $ 86.3 |
Work in process | 88.8 | 91.1 |
Finished products | 286.8 | 315 |
Total inventories | 455.9 | 492.4 |
Other Current Assets | ||
Prepaid expenses | 76.1 | 72.5 |
Value added tax receivables | 44.8 | 43.7 |
Income taxes receivable | 16.4 | 18.9 |
Other | 14.4 | 12.3 |
Total other current assets | 151.7 | 147.4 |
Property, Plant and Equipment | ||
Land | 18.6 | 18.5 |
Buildings | 144.2 | 142.6 |
Machinery and equipment | 1,115.8 | 1,105.3 |
Capitalized software costs | 61.9 | 60.2 |
Construction in progress | 41.9 | 38.5 |
Total gross property, plant and equipment | 1,382.4 | 1,365.1 |
Accumulated depreciation and amortization | (1,057) | (1,027.2) |
Total property, plant and equipment, net | 325.4 | 337.9 |
Other Current Liabilities | ||
Accrued advertising and sales promotion | 51 | 31.5 |
Accrued trade allowances | 29.5 | 29.8 |
Accrued salaries, vacations and incentive compensation | 53.3 | 65.4 |
Income taxes payable | 18.2 | 11.9 |
Returns reserve | 41.4 | 53.5 |
Value added tax payable | 10.2 | 7 |
Accrued interest | 9.6 | 25 |
Other | 91.8 | 85.4 |
Total other current liabilities | 305 | 309.5 |
Other Liabilities | ||
Pensions and other retirement benefits | 57.3 | 58.2 |
Other | 111.7 | 121.5 |
Total other liabilities | $ 169 | $ 179.7 |
Accounts Receivable Facility (N
Accounts Receivable Facility (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Accounts receivable sales agreement | |||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||||
Loss on sale of accounts receivable | $ 1.8 | $ 2.1 | $ 4.6 | $ 4.5 | |
Accounts receivable sales agreement | |||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||||
Accounts receivable sold through AR Facility | 353.5 | $ 388.7 | 886 | $ 916.3 | |
Transfer of accounts receivable, sales amount derecognized | $ 158.5 | $ 158.5 | $ 82.1 |
Debt (Details)
Debt (Details) - USD ($) | Jun. 30, 2024 | Apr. 02, 2024 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Total | $ 1,300,000,000 | $ 1,372,000,000 | ||
Long-term debt | 1,290,400,000 | 1,360,700,000 | ||
Notes payable | 21,400,000 | 19,500,000 | ||
Unamortized debt issuance costs | $ 9,600,000 | [1] | $ 11,300,000 | |
Short-Term Debt, Weighted Average Interest Rate, at Point in Time | 3.80% | 3.90% | ||
2024 Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit, Current | $ 425,000,000 | |||
Senior notes | Senior Notes, Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Total | $ 750,000,000 | $ 750,000,000 | ||
Unamortized debt issuance costs | $ 5,800,000 | 6,900,000 | ||
Long term debt, stated interest rate | 5.50% | |||
Minimum Debt amount | $ 150 | |||
Senior notes | Senior Notes, Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Total | 500,000,000 | 500,000,000 | ||
Unamortized debt issuance costs | $ 3,800,000 | 4,400,000 | ||
Long term debt, stated interest rate | 4.125% | |||
Minimum Debt amount | $ 150 | |||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Total | $ 50,000,000 | $ 122,000,000 | ||
[1] As of June 30, 2024, debt issuance costs were $5.8 and $3.8 related to the Senior Notes due 2028 and the Senior Notes due 2029, respectively. As of September 30, 2023, debt issuance costs were $6.9 and $4.4 related to the Senior Notes due 2028 and the Senior Notes due 2029, respectively. |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 0.5 | $ 0.5 | $ 1.4 | $ 1.4 |
Interest cost | 5.3 | 5.3 | 16 | 15.9 |
Expected return on plan assets | (4.9) | (5.4) | (14.6) | (16.3) |
Recognized net actuarial loss | 0.4 | 0.4 | 1.1 | 1.2 |
Net periodic cost | 1.3 | 0.8 | 3.9 | 9.4 |
Defined benefit settlement loss | 0 | (7.2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.5 | 0.5 | 1.4 | 1.4 |
Interest cost | 5.3 | 5.3 | 16 | 15.9 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 4.9 | 5.4 | 14.6 | 16.3 |
Defined Benefit Plan, Amortization of Gain (Loss) | (0.4) | (0.4) | (1.1) | (1.2) |
Defined benefit settlement loss | 0 | 7.2 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 1.3 | $ 0.8 | $ 3.9 | 9.4 |
Pension Plan | ||||
Retirement Benefits [Abstract] | ||||
Defined benefit settlement loss | 7.2 | 7.2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit settlement loss | $ (7.2) | $ (7.2) |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jan. 26, 2018 | |
Equity [Abstract] | ||||||||||
Share repurchase authorization | 10 | |||||||||
Treasury shares repurchased (in shares) | 1.1 | |||||||||
Treasury shares repurchased (in usd) | $ 9.9 | $ 15.4 | $ 15.5 | $ 15.2 | $ 15 | $ 15 | ||||
Share repurchase authorization, remaining | 3.5 | 3.5 | ||||||||
Dividends declared | $ 22.9 | |||||||||
Dividends to common shareholders | 23.3 | $ 23.8 | ||||||||
Dividends declared (per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | |||||
Dividends declared (per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | |||||
us-gaap_TreasuryStockValueAcquiredCostMethodlessexcisetax | $ 40.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (170) | $ (216.1) |
OCI before reclassifications | (1.1) | 63.8 |
Reclassifications to earnings | (2.2) | 1.5 |
Ending balance | (173.3) | (150.8) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (86.9) | (131.2) |
OCI before reclassifications | (2.1) | 67.6 |
Reclassifications to earnings | 0 | 0 |
Ending balance | (89) | (63.6) |
Pension and Post-retirement Activity | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (86) | (92.6) |
OCI before reclassifications | (1.9) | (2.3) |
Reclassifications to earnings | 0.8 | 6.2 |
Ending balance | (87.1) | (88.7) |
Hedging Activity | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2.9 | 7.7 |
OCI before reclassifications | 2.9 | (1.5) |
Reclassifications to earnings | (3) | (4.7) |
Ending balance | $ 2.8 | $ 1.5 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Schedule of Reclassifications out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Reclassifications to earnings | $ 2.2 | $ (1.5) | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
OCI Cash flow hedges reclass to earnings, before tax | $ 2 | $ 1 | ||||
OCI Cash flow hedge, reclassification to earnings, tax | 0.6 | 0.3 | 1.4 | 2.1 | ||
Other comprehensive income, reclassification to earnings, cash flow hedges, after tax | 1.4 | 0.7 | 3 | 4.7 | ||
Amortization of defined benefit pension and postretirement items, actuarial losses, before tax | (0.4) | [1] | (0.4) | [1] | (1.1) | (1.2) |
Amortization of defined benefit pension and postretirement items, tax | (0.2) | (0.1) | (0.3) | (2.2) | ||
Amortization of defined benefit pension and postretirement items, after tax | (0.2) | (0.3) | (0.8) | (6.2) | ||
Reclassifications to earnings | $ 1.2 | $ 0.4 | $ 2.2 | $ (1.5) | ||
[1] These AOCI components are included in the computation of net periodic cost. See Note 9 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 USD ($) contracts | Jun. 30, 2023 | Mar. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) contracts | Jun. 30, 2023 | Sep. 30, 2023 USD ($) | |
Derivative [Line Items] | ||||||
Long-term debt | $ 1,300 | $ 1,300 | $ 1,372 | |||
Fixed rate | ||||||
Derivative [Line Items] | ||||||
Long-term debt | 1,250 | 1,250 | 1,250 | |||
Fair value of long-term debt | $ 1,135.3 | $ 1,135.3 | $ 1,028.6 | |||
Not designated as hedge | FX contract | ||||||
Derivative [Line Items] | ||||||
Open foreign currency contracts | contracts | 1 | 1 | ||||
Derivative, notional amount | $ 9 | $ 9 | ||||
Not designated as hedge | FX contract | Other expense (income), net | ||||||
Derivative [Line Items] | ||||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | ||||||
Cash flow hedge | Designated as hedge | FX contract | ||||||
Derivative [Line Items] | ||||||
Open foreign currency contracts | contracts | 64 | 64 | ||||
Derivative, notional amount | $ 107.6 | $ 107.6 | ||||
Gain (loss) recognized in OCI | $ 4.4 | $ 4.3 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Schedule of Fair Values of Derivative Instruments) (Details) - FX contract - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 | |
Not designated as hedge | |||
Derivatives, Fair Value [Line Items] | |||
Estimated fair value of derivatives | [1] | $ 0.2 | $ 0.9 |
Cash flow hedge | Designated as hedge | |||
Derivatives, Fair Value [Line Items] | |||
Estimated fair value of derivatives | [1] | $ 4.3 | $ 4.4 |
[1]erivative assets are presented in Other current assets or Other assets. 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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) | |
FX contract | Designated as hedge | Cash flow hedge | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) recognized in OCI | $ 4.4 | $ 4.3 | |||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ 2.9 | $ 3.7 | $ 4.4 | $ (2.1) | |
FX contract | Not designated as hedge | Other expense (income), net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Schedule of Offsetting Assets and Liabilities) (Details) - FX contract - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Derivative [Line Items] | ||
Gross amounts of recognized assets | $ 4.7 | $ 6.1 |
Gross amounts of recognized liabilities | (0.2) | (0.7) |
Gross amounts offset in the balance sheet | 0 | (0.2) |
Gross amounts offset in the balance sheet | 0 | 0.4 |
Net amounts of assets presented in the balance sheet | 4.7 | 5.9 |
Net amounts of liabilities presented in the balance sheet | $ (0.2) | $ (0.3) |
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 | Jun. 30, 2024 | Sep. 30, 2023 |
Derivative [Line Items] | ||
Deferred compensation liability | $ (20.9) | $ (19.4) |
Derivatives - foreign currency contracts asset | 4.5 | 5.6 |
Net assets (liabilities) at estimated fair value | $ (16.4) | $ (13.8) |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Sales and Profitability) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 647,800,000 | $ 650,000,000 | $ 1,736,100,000 | $ 1,717,500,000 |
Segment profit | 82,700,000 | 86,200,000 | 178,900,000 | 174,900,000 |
Acquisition and integration costs | (700,000) | (1,000,000) | (2,100,000) | (5,100,000) |
Sun Care reformulation costs | (1,300,000) | (600,000) | (2,200,000) | (1,700,000) |
Wet Ones manufacturing plant fire | (2,700,000) | 0 | (8,000,000) | 0 |
Proceeds from legal settlement, net of other costs | 6,800,000 | 6,300,000 | ||
Loss Contingency, Damages Sought, Value | (2,500,000) | (3,900,000) | ||
Gain (Loss) on Investments | (3,100,000) | (3,100,000) | ||
Other project costs | (1,700,000) | 0 | (2,900,000) | 0 |
Amortization of Intangible Assets | (7,700,000) | (7,800,000) | (23,300,000) | (23,200,000) |
Interest Expense and Other Nonoperating (Income) Expense, Net | (17,200,000) | (15,400,000) | (60,400,000) | (53,300,000) |
Earnings before income taxes | 62,500,000 | 70,800,000 | 115,500,000 | 114,400,000 |
Pension settlement expense | 0 | 7,200,000 | ||
Restructuring Charges, including amounts included in Cost of Products Sold | 0 | 200,000 | ||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses | 8,900,000 | |||
Restructuring Charges | (3,200,000) | (3,100,000) | (13,200,000) | (9,100,000) |
us-gaap_LossContingencyDamagesSoughtValue | (7,100,000) | 7,100,000 | ||
Wet Shave | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 316,300,000 | 324,100,000 | 911,100,000 | 908,000,000 |
Segment profit | 47,600,000 | 32,300,000 | 141,700,000 | 103,400,000 |
Sun and Skin Care | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 256,900,000 | 244,900,000 | 608,100,000 | 567,500,000 |
Segment profit | 64,200,000 | 61,400,000 | 117,300,000 | 114,700,000 |
Feminine Care | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 74,600,000 | 81,000,000 | 216,900,000 | 242,000,000 |
Segment profit | 6,600,000 | 14,000,000 | 22,600,000 | 38,100,000 |
Total Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 118,400,000 | 107,700,000 | 281,600,000 | 256,200,000 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
General Corporate and Other Expenses | (15,800,000) | (15,800,000) | (47,000,000) | (48,700,000) |
Selling, general and administrative expenses | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration costs | (700,000) | (1,000,000) | (2,100,000) | (5,100,000) |
Other project costs | (1,700,000) | (2,900,000) | ||
Pension settlement expense | 7.2 | |||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses | $ 100,000 | 100,000 | $ 100,000 | 200,000 |
Cost of products sold | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring Charges, including amounts included in Cost of Products Sold | $ 0 | $ 200,000 |
Segment Data Segment Data (Sche
Segment Data Segment Data (Schedule of Sales by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 647.8 | $ 650 | $ 1,736.1 | $ 1,717.5 |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 373.7 | 391.6 | 983 | 1,031.3 |
International | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 274.1 | $ 258.4 | $ 753.1 | $ 686.2 |
Segment Data (Schedule of Suppl
Segment Data (Schedule of Supplemental Product Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 647.8 | $ 650 | $ 1,736.1 | $ 1,717.5 |
Razors and blades | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 287.4 | 291.2 | 822.7 | 816.6 |
Tampons, pads and liners | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 74.6 | 81 | 216.9 | 242 |
Sun care products | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 191.3 | 184.2 | 417.3 | 385.8 |
Grooming products | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 43.5 | 38.2 | 135.3 | 123.5 |
Wipes and other skin care products | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 22.1 | 22.5 | 55.5 | 58.2 |
Shaving gels and creams | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 28.9 | $ 32.9 | $ 88.4 | $ 91.4 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Legal Proceedings The Company and its subsidiaries are subject to a number of legal proceedings in various jurisdictions arising out of its operations during the ordinary course of business. Many of these legal matters are in preliminary stages and involve complex issues of law and fact and may proceed for protracted periods of time. The amount of liability, if any, from these proceedings cannot be determined with certainty. The Company reviews its legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for those contingencies when the incurrence of a loss is probable and can be reasonably estimated and discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued if such disclosure is necessary for its financial statements to not be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims, and known potential legal claims which are likely to be asserted, is not reasonably likely to be material to its financial position, results of operations or cash flows, when taking into account established accruals for estimated liabilities. |