Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Dec. 31, 2015 | Feb. 01, 2016 | |
Entity [Abstract] | ||
Entity Registrant Name | ENERGIZER HOLDINGS, INC. | |
Entity Central Index Key | 1,632,790 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | ENR | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common stock outstanding, shares | 61,829,820 |
COMBINED STATEMENTS OF EARNINGS
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 506.8 | $ 501.3 |
Cost of Goods Sold | 277 | 267.5 |
Gross profit | 229.8 | 233.8 |
Operating Expenses [Abstract] | ||
Selling, General and Administrative Expense | 83.7 | 110.6 |
Marketing and Advertising Expense | 30.1 | 34.4 |
Research and development expense | 6.1 | 6.2 |
Restructuring | 3.1 | 0 |
Interest expense | 12.9 | 12.5 |
Other financing items, net | (0.6) | (2.8) |
Total before tax | 94.5 | 81.4 |
Income taxes | 29 | 19.7 |
Net earnings | $ 65.5 | $ 61.7 |
Basic earnings per common share | $ 1.06 | $ 0.99 |
Diluted earnings per common share | $ 1.05 | $ 0.99 |
Statement of Comprehensive Income: | ||
Net earnings | $ 65.5 | $ 61.7 |
Other comprehensive income/(loss), net of tax expense/(benefit) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (4.6) | (29.9) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 2.1 | (0.3) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0.7 | 1.1 |
Total comprehensive income | 63.7 | 32.6 |
Spin-off | ||
Operating Expenses [Abstract] | ||
Restructuring | 0.9 | 1.1 |
2013 Restructuring | ||
Operating Expenses [Abstract] | ||
Restructuring | $ 2.2 | $ (9.6) |
COMBINED STATEMENTS OF EARNING3
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) Parenthetical - USD ($) shares in Millions, $ in Millions | Jul. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement [Abstract] | |||
Number of shares distributed | 62.2 | ||
Pension/postretirement activity, tax | $ 0.5 | $ (0.1) | |
Deferred (loss)/gain on hedging activity, tax | $ 0 | $ 0.4 |
COMBINED BALANCE SHEETS (Conden
COMBINED BALANCE SHEETS (Condensed) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 556.4 | $ 502.1 |
Trade receivables, less allowance for doubtful accounts of $6.6 and $7.0, respectively | 181.2 | 155.5 |
Inventories | 209 | 275.9 |
Other current assets | 139.5 | 143.4 |
Assets, Current | 1,086.1 | 1,076.9 |
Property, plant and equipment, net | 199.4 | 205.6 |
Goodwill | 37.7 | 38.1 |
Other intangible assets | 77.1 | 76.3 |
Deferred tax asset | 160.3 | 163.1 |
Other assets | 56.9 | 58.6 |
Total assets | 1,617.5 | 1,618.6 |
Current liabilities | ||
Current maturities of long-term debt | 4 | 3 |
Short-term Bank Loans and Notes Payable | 9.8 | 5.2 |
Accounts payable | 155.7 | 167 |
Other current liabilities | 277.3 | 291.2 |
Total current liabilities | 446.8 | 466.4 |
Long-term debt | 983.7 | 984.3 |
Other liabilities | 219.5 | 228 |
Total liabilities | 1,650 | 1,678.7 |
Shareholders' deficit | ||
Common stock | 0.6 | 0.6 |
Additional paid-in capital | 183.2 | 181.7 |
Retained earnings | 56.6 | 6.9 |
Treasury stock | (21.8) | 0 |
Accumulated other comprehensive loss | (251.1) | (249.3) |
Total shareholders' deficit | (32.5) | (60.1) |
Total liabilities and shareholders' deficit | $ 1,617.5 | $ 1,618.6 |
COMBINED BALANCE SHEETS (Conde5
COMBINED BALANCE SHEETS (Condensed) Parenthetical - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 6.6 | $ 7 |
COMBINED STATEMENTS OF CASH FLO
COMBINED STATEMENTS OF CASH FLOWS (Condensed) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 65.5 | $ 61.7 |
Non-cash restructuring costs | 3.1 | 0 |
Depreciation and amortization | 7.8 | 10.7 |
Deferred income taxes | 3.4 | 6.7 |
Share-based payments | 4.6 | 3.2 |
Non-cash items included in income, net | (1.5) | (9.6) |
Other, net | (4.7) | 5 |
Changes in current assets and liabilities used in operations | 13.4 | (17.6) |
Net cash from operating activities | 91.6 | 60.1 |
Cash Flow from Investing Activities | ||
Capital expenditures | (3.3) | (10) |
Proceeds from sale of assets | 0 | 1.5 |
Acquisitions, net of cash acquired | 0 | (11.1) |
Net cash used by investing activities | (3.3) | (19.6) |
Cash Flow from Financing Activities | ||
Net increase in debt with original maturities of 90 days or less | 5.4 | 0 |
Common stock purchased | (21.8) | 0 |
Dividends paid | 15.4 | 0 |
Excess tax benefits from share-based payments | 0.8 | 0 |
Net transfers to Edgewell | 0 | (37.3) |
Net cash used by financing activities | (31) | (37.3) |
Effect of exchange rate changes on cash | (3) | (0.3) |
Net increase in cash and cash equivalents | 54.3 | 2.9 |
Cash and cash equivalents, beginning of period | 502.1 | 89.6 |
Cash and cash equivalents, end of period | $ 556.4 | $ 92.5 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business - Energizer Holdings, Inc., including its subsidiaries, (Energizer or the Company) is a global manufacturer, marketer and distributer of household batteries, specialty batteries and portable lights under the Energizer and Eveready brand names. Energizer offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide technologies. On July 1, 2015, Energizer completed its legal separation from Edgewell Personal Care Company (Edgewell) via a tax free spin-off (the spin-off or spin). To effect the separation, Edgewell undertook a series of transactions to separate net assets and legal entities. As a result of these transactions, Energizer holds the Household Products' product group and Edgewell holds the Personal Care product group. As a result of the spin-off, Energizer operates as an independent, publicly traded company on the New York Stock Exchange trading under the symbol "ENR." In conjunction with the spin-off, Edgewell distributed 62,193,281 shares of Energizer common stock to its shareholders. Under the terms of the spin-off, Edgewell common shareholders of record as of the close of business on June 16, 2015, the record date for the distribution, received one share of Energizer for each share of Edgewell common stock they held. Edgewell completed the distribution of Energizer common stock to its shareholders on July 1, 2015, the distribution date. Edgewell structured the distribution to be tax-free to its U.S. shareholders for U.S. federal income tax purposes. Basis of Presentation - The accompanying unaudited Consolidated Condensed Financial Statements include the accounts of Energizer and its subsidiaries. All significant intercompany transactions are eliminated. Energizer has no material equity method investments, variable interests or non-controlling interests. For the three months ended December 31, 2014, which was prior to the spin-off, our financial statements were prepared on a combined standalone basis derived from the financial statements and accounting records of Edgewell and included expense allocations for: (1) certain product warehousing and distribution; (2) various transaction process functions; (3) a consolidated sales force and management for certain countries; (4) certain support functions that were provided on a centralized basis within Edgewell and not recorded at the business division level, including, but not limited to, finance, audit, legal, information technology, human resources, communications, facilities, and compliance; (5) employee benefits and compensation; (6) share-based compensation and (7) financing costs. These expenses were allocated to Energizer on the basis of direct usage where identifiable, with the remainder allocated on a basis of global net sales, cost of sales, operating income, headcount or other measures of Energizer and Edgewell. Management believes the assumptions regarding allocated expenses reasonably reflect the utilization of services provided to or the benefit received by Energizer during the periods prior to the spin-off. Nevertheless, the allocations may not include all of the actual expenses that would have been incurred by Energizer and may not reflect our results of operations, financial position and cash flows had we been an independent standalone company during that period. It is not practicable to estimate actual costs that would have been incurred had Energizer been a standalone company during the periods prior to the spin-off. Actual costs that would have been incurred if Energizer had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, such as information technology and infrastructure. The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The year-end condensed Consolidated Balance Sheet was derived from the audited financial statements included in Energizer's Report on Form 10-K, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain reclassifications have been made to the prior year financial statements to conform to the current presentation. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes thereto for Energizer for the year ended September 30, 2015 included in the Annual Report on Form 10-K dated November 20, 2015. Recently Adopted Accounting Pronouncements - During the quarter ended December 31, 2015, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes. This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet and results in each tax paying jurisdiction having either a noncurrent deferred tax asset or a noncurrent deferred tax liability. The netting of different jurisdictions' noncurrent deferred tax assets and liabilities is still prohibited. As of December 31, 2015, the Company had a long term deferred tax asset balance of $ 160.3 and a long term deferred tax liability balance of $ 10.5 . The Company applied this guidance retrospectively and the reclassification resulted in a long term deferred tax asset balance as of September 30, 2015 of $ 163.1 , an increase of $ 49.3 to the previously reported balance. Additionally, the long term deferred tax liability increased $1.2 , resulting in a balance of $ 8.8 , as of September 30, 2015. The current portion of the deferred tax asset and deferred tax liability had previously been reported in Other current assets and Other current liabilities, respectively. During the quarter ended December 31, 2015, the Company adopted FASB ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , and FASB ASU 2015-15 , Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These ASUs require most debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability rather than as an asset; however debt issuance costs relating to revolving credit facilities will remain in other assets. We adopted this standard for the first fiscal quarter of 2016 and applied it retrospectively to September 30, 2015. See Note 11, Debt . The balance for unamortized debt issuance costs that were reclassified to Debt and from Other assets were $10.3 and $10.7 at December 31, 2015 and September 30, 2015, respectively. |
Spin Costs
Spin Costs | 3 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Spin Costs | Spin Costs The Company incurred costs associated with the evaluation, planning and execution of the spin transaction. During the quarter ended December 31, 2015, the Company incurred $ 6.9 in spin costs including $ 6.0 recorded in SG&A and $ 0.9 recorded in spin restructuring. For the quarter ended December 31, 2014, the Company was allocated spin costs of $ 23.2 from Edgewell of which $ 22.1 was recorded in SG&A and $ 1.1 was recorded in spin restructuring. On a project to date basis, the total costs incurred and allocated to Energizer for the spin-off were $ 192.1 , inclusive of the costs of early debt retirement recorded in fiscal 2015. Energizer expects to incur approximately $3 of additional pre-tax spin costs through the end of fiscal year 2016. Energizer does not include the spin restructuring costs in the results of its reportable segments. The estimated impact of allocating such charges to segment results would have been as follows: Quarter Ended December 31, 2015 North America Latin America EMEA Asia Pacific Corporate Total Severance and termination related costs $ (1.4 ) $ — $ 0.6 $ 1.1 $ — $ 0.3 Other exit costs — 0.1 0.4 0.1 — 0.6 Total $ (1.4 ) $ 0.1 $ 1.0 $ 1.2 $ — $ 0.9 Quarter Ended December 31, 2014 North America Latin America EMEA Asia Pacific Corporate Total Severance and termination related costs $ 0.2 $ 0.2 $ — $ 0.3 $ 0.4 $ 1.1 Total $ 0.2 $ 0.2 $ — $ 0.3 $ 0.4 $ 1.1 The following table represents the spin restructuring accrual activity and ending accrual balance at December 31, 2015 and December 31, 2014 included in other current liabilities on the Consolidated Condensed Balance Sheet. Utilized October 1, 2015 Charge to Income Other (a) Cash Non-Cash December 31, 2015 Severance and termination related costs $ 12.0 $ 0.3 $ (0.2 ) $ (6.5 ) $ — $ 5.6 Other exit costs 0.3 0.6 — (0.7 ) — 0.2 Total $ 12.3 $ 0.9 $ (0.2 ) $ (7.2 ) $ — $ 5.8 Utilized October 1, 2014 Charge to Income Other (a) Cash Non-Cash December 31, 2014 Severance & Termination Related Costs $ — $ 1.1 $ — $ — $ — $ 1.1 Total $ — $ 1.1 $ — $ — $ — $ 1.1 (a) Includes the impact of currency translation. |
Restructuring
Restructuring | 3 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring 2013 Restructuring In November 2012, Edgewell's Board of Directors authorized an enterprise-wide restructuring plan and delegated authority to management to determine the final actions with respect to this plan (2013 restructuring project). This initiative impacted Edgewell's Household Products and Personal Care businesses. In January 2014, Edgewell's Board of Directors authorized an expansion of scope of the previously announced 2013 restructuring project. The pre-tax expense/(income) for charges and credits related to the 2013 restructuring project for Energizer for the three months ended December 31, 2015 and 2014 are noted in the tables below: Quarter Ended December 31, 2015 North America Latin America EMEA Asia Pacific Corporate Total Severance and related benefit costs $ 0.2 $ — $ — $ — $ — $ 0.2 Consulting, program management and other exit costs (0.2 ) — — 0.2 — — Net loss on asset sales 2.0 — — — — 2.0 Total $ 2.0 $ — $ — $ 0.2 $ — $ 2.2 Quarter Ended December 31, 2014 North America Latin America EMEA Asia Pacific Corporate Total Severance and related benefit costs $ 0.1 $ — $ — $ — $ — $ 0.1 Consulting, program management and other exit costs 0.8 0.1 0.2 0.2 — 1.3 Net gain on asset sales — — — (11.0 ) — (11.0 ) Total $ 0.9 $ 0.1 $ 0.2 $ (10.8 ) $ — $ (9.6 ) Total pre-tax restructuring charges since the inception of the project and through December 31, 2015 , have totaled approximately $200 . We expect the remaining costs for Energizer to be immaterial. For the three months ended December 31, 2015 , Energizer recorded pre-tax charges of $2.2 , related to the 2013 restructuring project. For the quarter ended December 31, 2014, Energizer recorded a pre-tax restructuring credit of $9.6 . Restructuring charges were reflected on a separate line in the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income. In addition, pretax costs of $0.1 associated with information technology enablement activities were recorded within SG&A on the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income for the quarter ended December 31, 2014 . These information technology costs are considered part of the total project costs incurred for the 2013 restructuring project. The following table summarizes the 2013 restructuring activities and related accrual (excluding certain information technology enablement charges related to the restructuring) for the quarter ended December 31, 2015 and 2014 . Utilized October 1, 2015 Charge to Income Other(a) Cash Non-Cash December 31, 2015 Severance & Termination Related Costs $ 1.9 $ 0.2 $ — $ (1.2 ) $ — $ 0.9 Other Related Costs 2.1 — — (0.7 ) — 1.4 Net loss on asset sales — 2.0 — — (2.0 ) — Total $ 4.0 $ 2.2 $ — $ (1.9 ) $ (2.0 ) $ 2.3 Utilized October 1, 2014 Charge to Income Other (a) Cash Non-Cash December 31, 2014 Severance & Termination Related Costs $ 12.4 $ 0.1 $ (7.3 ) $ (1.7 ) $ — $ 3.5 Other Related Costs — 1.3 — (1.3 ) — — Net (gain)/loss on asset sales — (11.0 ) 12.5 1.5 (3.0 ) — Total $ 12.4 $ (9.6 ) $ 5.2 $ (1.5 ) $ (3.0 ) $ 3.5 (a) Includes the impact of currency translation Other Activities The Company is also streamlining certain manufacturing operations. During the quarter ended December 31, 2015, the Company recorded $1.1 of accelerated depreciation in cost of products sold on the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income related to the streamlining of a plant in North America. The streamlining of this plant is expected to be completed in fiscal 2016 and the overall charges are not expected to be material to the consolidated operations. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On December 12, 2014, Edgewell, on behalf of Energizer, completed an acquisition of a battery manufacturing facility in China, primarily related to the purchase of fixed assets, for a total purchase price of $ 12.1 , $11.1 of which was paid during the three months ended December 31, 2014. The purchase price allocation was completed during fiscal 2015. We determined the fair values of assets acquired and liabilities assumed for purposes of allocating the purchase price in accordance with accounting guidance for business combinations. Based on the allocation of the purchase price, this transaction resulted in approximately $2.3 of goodwill. |
Venezuela
Venezuela | 3 Months Ended |
Dec. 31, 2015 | |
Foreign Currency [Abstract] | |
Venezuela | Venezuela Effective January 1, 2010 and through March 31, 2015, the financial statements for our Venezuela subsidiary were consolidated under the rules governing the translation of financial information in a highly inflationary economy based on the use of the blended National Consumer Price Index in Venezuela. Through March 31, 2015, the results of the Venezuela subsidiary were still included in our consolidated financial statements using the consolidation method of accounting. During the second fiscal quarter of 2015, Edgewell determined that the Venezuelan exchange control regulations resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and U.S. dollar, and have restricted the Company’s Venezuelan operations’ ability to pay dividends and settle intercompany obligations. The severe currency controls imposed by the Venezuelan government significantly limited management's ability to realize the benefits from earnings of the Company’s Venezuelan operations and access the resulting liquidity provided by those earnings. This lack of exchangeability resulted in a lack of control over the Venezuelan subsidiaries for accounting purposes. Edgewell deconsolidated its Venezuelan subsidiaries on March 31, 2015 and began accounting for its investment in its Venezuelan operations using the cost method of accounting. Since the deconsolidation as of March 31, 2015, the Company’s financial results do not include the operating results of the Venezuelan operations. Instead, Energizer records revenue for sales of inventory to our Venezuelan operations in our consolidated financial statements to the extent cash is received. Further, dividends from Energizer’s Venezuelan subsidiaries are recorded as other income upon receipt of the cash. The Company continues to evaluate its control over its Venezuela operations and does not believe that circumstances have changed in Venezuela's exchange control regulations that would lead to the Company having control over its operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On November 20, 2015, the FASB issued a new ASU which requires that all deferred taxes to be classified as either a non current asset or liability. During the quarter ended December 31, 2015, the Company early adopted the standard and applied it retroactively to September 30, 2015. See further discussion in Note 1, Description of Business and Basis of Presentation. The three month effective tax rate was 30.7% for the first fiscal quarter of 2016 as compared to 24.2% for the prior year comparative period. The higher rate in the current period was due to a mix of earnings in higher tax rate jurisdictions, such as the U.S. The prior year rate was also favorably impacted by restructuring and spin costs incurred primarily in tax jurisdictions with higher statutory tax rates, which positively impacts the effective tax rate. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments Total compensation cost charged against income for Energizer’s share-based compensation arrangements was $4.6 and $3.2 for three months ended December 31, 2015 and 2014, respectively, and was recorded in SG&A expense. The total income tax benefit recognized in the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income for share-based compensation arrangements was $1.7 and $1.2 , for the three months ended December 31, 2015 and 2014, respectively. Restricted Stock Equivalents (RSE)—(in whole dollars and total shares) In November 2015, the Company granted RSE awards to a group of key employees which included approximately 106,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 87,000 shares that vest on the third anniversary of the date of the grant. In addition, the Company granted approximately 290,000 performance shares to the group of key employees and key executives that will vest upon meeting target cumulative adjusted earnings per share and cumulative free cash flow as a percentage of sales metrics over the three year performance period. The closing stock price on the date of the grant used to determine the award fair value was $37.34 . |
Earnings per share
Earnings per share | 3 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share is based on the average number of common shares outstanding during the period. Diluted earnings per share is based on the average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of restricted stock equivalents. (in millions, except per share data) For the Quarter ended 2015 2014 Net earnings $ 65.5 $ 61.7 Basic average shares outstanding 62.0 62.2 Effect of dilutive restricted stock equivalents 0.3 — Diluted average shares outstanding 62.3 62.2 Basic earnings per common share $ 1.06 $ 0.99 Diluted earnings per common share $ 1.05 $ 0.99 For the quarter ended December 31, 2015, approximately 0.5 million anti-dilutive securities were not included in the diluted net earnings per share calculations. For the quarter ended December 31, 2014, basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of Energizer shares outstanding immediately following the spin-off. The same number of shares was used to calculate basic and diluted earnings per share since no Energizer equity awards were outstanding prior to the spin-off. |
Segments
Segments | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments | Segments Operations for Energizer are managed via four major geographic reportable segments: North America (the United States and Canada), Latin America, Europe, Middle East and Africa (“EMEA”), and Asia Pacific. Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with most restructuring initiatives, business realignment activities, research & development costs, and other items determined to be corporate in nature. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of substantially all restructuring and realignment costs from segment results reflects management’s view on how it evaluates segment performance. Energizer’s operating model includes a combination of standalone and shared business functions between the geographic segments, varying by country and region of the world. Shared functions include IT and finance shared service costs. Energizer applies a fully allocated cost basis, in which shared business functions are allocated between segments. Such allocations are estimates, and do not represent the costs of such services if performed on a standalone basis. Corporate assets shown in the following table include all cash, financial instruments and deferred tax assets that are managed outside of operating segments. Segment sales and profitability for the quarter ended December 31, 2015 and 2014 , respectively, are presented below. For the Quarter Ended December 31, 2015 2014 Net Sales North America $ 279.2 $ 251.4 Latin America 34.5 38.3 EMEA 117.9 125.9 Asia Pacific 75.2 85.7 Total net sales $ 506.8 $ 501.3 Segment Profit North America $ 90.8 $ 70.9 Latin America 7.9 4.7 EMEA 23.0 34.4 Asia Pacific 19.5 23.0 Total segment profit 141.2 133.0 General corporate and other expenses (15.9 ) (17.3 ) Global marketing expense (2.2 ) (4.3 ) Research and development expense (6.1 ) (6.2 ) Restructuring (1) (3.3 ) 9.5 Integration (2) — (0.4 ) Spin costs (2) (6.0 ) (22.1 ) Spin restructuring (0.9 ) (1.1 ) Interest expense (12.9 ) (12.5 ) Other financing items, net 0.6 2.8 Total earnings before income taxes $ 94.5 $ 81.4 (1) Includes pre-tax costs of $1.1 for the three months ended December 31, 2015 of accelerated depreciation related to our streamlining of plants recorded in cost of products sold and $0.1 for the three months ended December 31, 2014 , associated with certain information technology and related activities, which are included in SG&A on the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income. (2) Included in SG&A in the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income. Supplemental product information is presented below for revenues from external customers: For the Quarter Ended December 31, Net Sales 2015 2014 Alkaline batteries $ 341.0 $ 327.9 Other batteries and lighting products 165.8 173.4 Total net sales $ 506.8 $ 501.3 Total assets by segment are presented below: December 31, September 30, 2015 North America $ 399.6 $ 394.8 Latin America 62.7 63.3 EMEA 249.5 237.5 Asia Pacific 574.8 573.2 Total segment assets $ 1,286.6 $ 1,268.8 Corporate 216.1 235.4 Goodwill and other intangible assets 114.8 114.4 Total assets $ 1,617.5 $ 1,618.6 |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill and intangible assets deemed to have an indefinite life are not amortized, but are evaluated annually for impairment as part of our annual business planning cycle in the fourth fiscal quarter, or when indicators of a potential impairment are present. The following table sets forth goodwill by segment as of October 1, 2015 and December 31, 2015 : North America Latin America EMEA Asia Pacific Total Balance at October 1, 2015 $ 19.1 $ 1.6 $ 6.0 $ 11.4 $ 38.1 Cumulative translation adjustment — (0.1 ) (0.1 ) (0.2 ) (0.4 ) Balance at December 31, 2015 $ 19.1 $ 1.5 $ 5.9 $ 11.2 $ 37.7 Energizer had indefinite-lived intangible assets of $77.1 at December 31, 2015 and $76.3 at September 30, 2015. Changes in indefinite-lived intangible assets are due to changes in foreign currency translation. Energizer had no amortizable intangible assets at December 31, 2015 or September 30, 2015. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt On April 7, 2015, the FASB issued a new ASU, which requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. On August 18, 2015, the FASB issued a new ASU which confirmed that fees related to credit facilities meet the definition of an asset and should continue to be classified as an asset. During the quarter ended December 31, 2015, the Company early adopted these standards and applied them retroactively to September 30, 2015. See further discussion in Note 1, Description of Business and Basis of Presentation. The detail of long-term debt was as follows: December 31, 2015 September 30, 2015 Senior Secured Term Loan B Facility due 2022 $ 399.0 $ 399.0 5.50% Senior Notes due 2025 600.0 600.0 Total long-term debt, including current maturities 999.0 999.0 Less current portion (4.0 ) (3.0 ) Less unamortized debt discount and debt issuance fees (11.3 ) (11.7 ) Total long-term debt $ 983.7 $ 984.3 On June 1, 2015, the Company entered into a credit agreement which provides for a five -year $250.0 senior secured revolving credit facility (Revolving Facility) and a seven -year $400.0 senior secured term loan B facility (Term Loan) that became effective on June 30, 2015. Also on June 1, 2015, Energizer completed the issuance and sale of $600.0 of 5.50% Senior Notes due 2025 (Senior Notes), with proceeds placed in escrow and released June 30, 2015. The proceeds from the Term Loan and Senior Notes were transferred to Edgewell on June 30, 2015 in connection with the contribution of certain assets by Edgewell to the Company in connection with the separation. Borrowings under the Revolving Facility will bear interest at LIBOR or the Base Rate (as defined) plus the applicable margin based on total Company leverage. As of December 31, 2015, the Company did not have outstanding borrowings under the Revolving Facility and had $6.4 of outstanding letters of credit. Taking into account outstanding letters of credit, $243.6 remains available as of December 31, 2015. The $400.0 Term Loan was issued at a $1.0 discount and bears interest at LIBOR , plus 250 basis points or the Base Rate (as defined) plus the applicable margin subject to a 75 basis points floor. The loans and commitments under the Term Loan require quarterly principal payments at a rate of 0.25% of the original principal balance. Obligations under the Revolving Facility and Term Loan are jointly and severally guaranteed by certain of its existing and future direct and indirectly wholly-owned U.S. subsidiaries. There is a first priority perfected lien on substantially all of the assets and property of the Company and guarantors and proceeds therefrom excluding certain excluded assets. In August 2015, the Company entered into an interest rate swap agreement with one major financial institution that fixed the variable benchmark component (LIBOR) on $200.0 of Energizer's variable rate debt through June 2022 at an interest rate of 2.22% . For the quarter ended December 31, 2015, our weighted average interest rate on variable rate debt was 3.64% . The Senior Notes were sold to qualified institutional buyers and will not be registered under the Securities Act or applicable state securities laws. Interest is payable semi-annually on the Senior Notes, and payments began on December 15, 2015. The Senior Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by each of the Company's domestic restricted subsidiaries that is a borrower or guarantor under the Revolving Facility and Term Loan. Debt Covenants The agreements governing the Company's debt contain certain customary representations and warranties, affirmative covenants and provisions relating to events of default. If the Company fails to comply with these covenants or with other requirements of these debt agreements, the lenders may have the right to accelerate the maturity of the debt. Acceleration under one of these facilities would trigger cross defaults to other borrowings. As of December 31, 2015, the Company was, and expects to remain, in compliance with the provisions and covenants associated with its debt agreements. Aggregate maturities of long-term debt, including current maturities, at December 31, 2015 were as follows: $4.0 in one year, $4.0 in two years, $4.0 in three years, $4.0 in four years, $4.0 in five years and $979.0 thereafter. The counterparties to long-term committed borrowings consist of a number of major financial institutions. The Company consistently monitors positions with, and credit ratings of, counterparties both internally and by using outside ratings agencies. |
Pension Plans
Pension Plans | 3 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | Pension Plans The Company has a defined benefit pension plan covering substantially all of its employees in the United States (U.S.) and certain employees in other countries, which was frozen in fiscal year 2015. The Company also sponsors or participates in a number of other non-U.S. pension arrangements, including various retirement and termination benefit plans, some of which are required by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and, therefore, are not included in the information presented below. The Company’s net periodic pension benefit cost for these plans are as follows: For the Quarter Ended December 31, 2015 Service Cost $ 0.3 Interest Cost 6.7 Expected return on plan assets (10.6 ) Amortization of prior service cost — Amortization of unrecognized net losses 1.6 Settlement charge 0.1 Net periodic benefit cost / (credit) $ (1.9 ) Prior to the separation, certain of Energizer’s employees participated in defined benefit pension plans sponsored by Edgewell. The combined statement of earnings for the three months ended December 31, 2014 include expenses related to these Shared Plans including direct expenses related to Energizer employees as well as allocations of expenses related to corporate employees. Total defined benefit plan expenses from the direct plan were immaterial and total allocated expenses were $3.1 for the three months ended December 31, 2014 . |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholder's Equity In July 2015, the Company's Board of Directors approved an authorization for the Company to acquire up to 7.5 million shares of its common stock. Future share repurchases, if any, would be made on the open market and the timing and the amount of any purchases will be determined by the Company based on its evaluation of the market conditions, capital allocation objectives, legal and regulatory requirements and other factors. During the quarter ended December 31, 2015, the Company repurchased 600,000 shares for $21.8 , or an average price of $36.27 per share, under this authorization. On November 16, 2015, the Board of Directors declared a dividend for the first quarter of fiscal 2016 of $0.25 per share of common stock. The dividend was paid on December 16, 2015 to shareholders of record as of November 30, 2015, and totaled $15.4 . Subsequent to the quarter, on February 1, 2016, the Board of Directors declared a dividend for the second quarter of fiscal 2016 of $0.25 per share of Common Stock, which will be paid on March 16, 2016, to shareholders of record as of February 19, 2016. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management The market risk inherent in the Company's operations creates potential earnings volatility arising from changes in currency rates, interest rates and commodity prices. The Company's policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into hedges for trading or speculative purposes where the sole objective is to generate profits. Concentration of Credit Risk —The counterparties to derivative contracts consist of a number of major financial institutions and are generally institutions with which the Company maintains lines of credit. The Company does not enter into derivative contracts through brokers nor does it trade derivative contracts on any other exchange or over-the-counter markets. Risk of currency positions and mark-to-market valuation of positions are strictly monitored at all times. The Company continually monitors positions with, and credit ratings of, counterparties both internally and by using outside rating agencies. While nonperformance by these counterparties exposes Energizer to potential credit losses, such losses are not anticipated. In the ordinary course of business, the Company enters into contractual arrangements (derivatives) to reduce its exposure to commodity price and foreign currency risks. The section below outlines the types of derivatives that existed at December 31, 2015 and 2014, as well as the Company's objectives and strategies for holding these derivative instruments. Commodity Price Risk —Energizer uses raw materials that are subject to price volatility. At times, the Company has used, and may in the future use, hedging instruments to reduce exposure to variability in cash flows associated with future purchases of certain materials and commodities. At December 31, 2015 and September 30, 2015, there were no open derivative or hedging instruments for future purchases of raw materials or commodities. Foreign Currency Risk —A significant portion of Energizer’s product cost is more closely tied to the U.S. dollar than to the local currencies in which the product is sold. As such, a weakening of currencies relative to the U.S. dollar results in margin declines unless mitigated through pricing actions, which are not always available due to the economic or competitive environment. Conversely, a strengthening in currencies relative to the U.S. dollar can improve margins. The primary currencies to which Energizer is exposed include the Euro, the British pound, the Canadian dollar and the Australian dollar. Additionally, Energizer’s foreign subsidiaries enter into internal and external transactions that create nonfunctional currency balance sheet positions at the foreign subsidiary level. These exposures are generally the result of intercompany purchases, intercompany loans and, to a lesser extent, external purchases, and are revalued in the foreign subsidiary’s local currency at the end of each period. Changes in the value of the non-functional currency balance sheet positions in relation to the foreign subsidiary’s local currency results in a transaction gain or loss recorded in Other financing items, net on the Consolidated Statements of Earnings and Comprehensive Income. The primary currency to which Energizer’s foreign subsidiaries are exposed is the U.S. dollar. Interest Rate Risk —Energizer has interest rate risk with respect to interest expense on variable rate debt. At December 31, 2015 , Energizer had variable rate debt outstanding with an original principal balance of $400.0 under the Term Loan. During fiscal year 2015, Energizer entered into an interest rate swap agreement with one major financial institution that fixed the variable benchmark component (LIBOR) on $200.0 of Energizer's variable rate debt through June 2022 at an interest rate of 2.22% . This hedging instrument is considered a cash flow hedge for accounting purposes. At December 31, 2015 and September 30, 2015, Energizer had an unrecognized pre-tax loss on this interest rate swap agreement of $3.3 and $5.2 , respectively, included in Accumulated other comprehensive loss on the Consolidated Balance Sheets. Cash Flow Hedges The Company has entered into a series of forward currency contracts to hedge the cash flow uncertainty of forecasted inventory purchases due to short term currency fluctuations. Energizer’s primary foreign affiliates, which are exposed to U.S. dollar purchases, have the Euro, the British pound, the Canadian dollar and the Australian dollar as their local currencies. These foreign currencies represent a significant portion of Energizer's foreign currency exposure. At December 31, 2015 and September 30, 2015, Energizer had an unrealized pre-tax gain on these forward currency contracts accounted for as cash flow hedges of $3.6 and $4.5 , respectively, included in Accumulated other comprehensive loss on the unaudited Condensed Consolidated Balance Sheets. Assuming foreign exchange rates versus the U.S. dollar remain at December 31, 2015 levels, over the next 12 months, $3.5 of the pre-tax gain included in Accumulated other comprehensive loss is expected to be recognized in earnings. Contract maturities for these hedges extend into fiscal year 2017. Derivatives not Designated in Hedging Relationships Energizer enters into foreign currency derivative contracts which are not designated as cash flow hedges for accounting purposes, to hedge existing balance sheet exposures. Any gains or losses on these contracts may be offset by corresponding exchange losses or gains on the underlying exposures; and as such are not subject to significant market risk. In addition, Edgewell held a share option with a major financial institution to mitigate the impact of changes in certain of Edgewell’s unfunded deferred compensation liabilities, which were tied to Edgewell’s common stock price. The share option matured in November 2014 and was not subsequently renewed. Prior to the spin, Energizer received an allocation of an appropriate share of the impact of this financial instrument. The following table provides the Company's estimated fair values as of December 31, 2015 and 2014 , and the amounts of gains and losses on derivative instruments classified as cash flow hedges as of and for the quarter ended December 31, 2015 and 2014 , respectively: At December 31, 2015 For the Quarter Ended December 31, 2015 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value, Asset (Liability) (1) (2) Gain/(Loss) Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ 3.6 $ 1.9 $ 2.8 Interest rate contracts $ (3.3 ) $ 1.2 $ (0.7 ) Total $ 0.3 $ 3.1 $ 2.1 At September 30, 2015 For the Quarter Ended December 31, 2014 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value, Asset (Liability) (1) (2) Gain/(Loss) Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ 4.5 $ 3.5 $ 2.0 Interest rate contracts (5.2 ) — — Total $ (0.7 ) $ 3.5 $ 2.0 1. All derivative assets are presented in Other current assets or Other assets. 2. All derivative liabilities are presented in Other current liabilities or Other liabilities. 3. OCI is defined as other comprehensive income. 4. Gain/(loss) reclassified to Income was recorded as follows: Foreign currency contracts in other financing items, net and interest rate contracts in interest expense. 5. Each of these hedging relationships has derivative instruments with a high correlation to the underlying exposure being hedged and has been deemed highly effective in offsetting the underlying risk. The following table provides estimated fair values as of December 31, 2015 and September 30, 2015 and the gains and losses on derivative instruments not classified as cash flow hedges as of and for the quarter ended December 31, 2015 and 2014 , respectively. At December 31, 2015 For the Quarter Ended December 31, 2015 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (Liability) Gain/(Loss) Recognized in Income (1) Foreign currency contracts (0.7 ) (0.7 ) At September 30, 2015 For the Quarter Ended December 31, 2014 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (Liability) Gain/(Loss) Recognized in Income (1) Share option (2) $ — $ 0.3 Foreign currency contracts — 1.0 Total $ — $ 1.3 1. Gain/(loss) recognized in Income was recorded as follows: Share option in Selling, general and administrative expense and foreign currency and commodity contracts in Other financing, items, net. 2. Edgewell held a share option with a major financial institution, which matured in November 2014 and was subsequently not renewed. Energizer has the following recognized financial assets resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting. Offsetting of derivative assets At December 31, 2015 At September 30, 2015 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 4.0 $ (0.4 ) $ 3.6 $ 4.9 $ (0.4 ) $ 4.5 Offsetting of derivative liabilities At December 31, 2015 At September 30, 2015 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (0.7 ) $ — $ (0.7 ) $ — $ — $ — Fair Value Hierarchy —Acco unting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. Under the fair value accounting guidance hierarchy, an entity is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The following table sets forth the Company's financial assets and liabilities, which are carried at fair value, as of December 31, 2015 and September 31, 2015 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 (Liabilities)/Assets at estimated fair value: December 31, September 30, Deferred Compensation $ (55.3 ) $ (58.5 ) Derivatives - Foreign Currency Contracts 2.9 4.5 Derivatives - Interest Rate Swap (3.3 ) (5.2 ) Net Liabilities at estimated fair value $ (55.7 ) $ (59.2 ) Energizer had no Level 1 financial assets or liabilities, other than pension plan assets, and no Level 3 financial assets or liabilities at December 31, 2015 and at September 30, 2015. Due to the nature of cash and cash equivalents, carrying amounts on the balance sheets approximate estimated fair value. The estimated fair value of cash and cash equivalents has been determined based on Level 2 inputs. At December 31, 2015 , the estimated fair value of the Company's unfunded deferred compensation liability is determined based upon the quoted market prices of investment options that are offered under the plan. The estimated fair value of foreign currency contracts and interest rate swap as described above is the amount that the Company would receive or pay to terminate the contracts, considering first, quoted market prices of comparable agreements, or in the absence of quoted market prices, such factors as interest rates, currency exchange rates and remaining maturities. At December 31, 2015 and September 30, 2015, the fair market value of fixed rate long-term debt was $552.9 and $581.2 , respectively compared to its carrying value of $600.0 . The estimated fair value of the long-term debt is estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. The estimated fair value of fixed rate long-term debt has been determined based on Level 2 inputs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income The following table presents the changes in accumulated other comprehensive income (AOCI), net of tax by component: Foreign Currency Translation Adjustments Pension Activity Hedging Activity Interest Rate Swap Total Balance at September 30, 2015 $ (109.6 ) $ (139.8 ) $ 3.4 $ (3.3 ) $ (249.3 ) OCI before reclassifications (4.6 ) 0.9 1.5 0.9 (1.3 ) Reclassifications to earnings — 1.2 (2.1 ) 0.4 (0.5 ) Balance at December 31, 2015 $ (114.2 ) $ (137.7 ) $ 2.8 $ (2.0 ) $ (251.1 ) The following table presents the reclassifications out of AOCI: For the Quarter Ended December 31, 2015 For the Quarter Ended December 31, 2014 Details of AOCI Components Amount Reclassified Amount Reclassified Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign exchange contracts $ 2.8 $ 2.0 Other financing items, net Interest rate swap (0.7 ) — Interest expense 2.1 2.0 Total before tax (0.4 ) (0.5 ) Tax (expense)/benefit $ 1.7 $ 1.5 Net of tax Amortization of defined benefit pension items Actuarial loss (1.6 ) 0.1 (2) Settlement loss (0.1 ) — (2) (1.7 ) 0.1 Total before tax 0.5 — Tax (expense)/benefit $ (1.2 ) $ 0.1 Net of tax Total reclassifications for the period $ 0.5 $ 1.6 Net of tax (1) Amounts in parentheses indicate debits to Consolidated Statement of Earnings. (2) These AOCI components are included in the computation of net periodic benefit cost (see Note 12, Pension Plans, for further details). |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Suplemental Financial Statement Information | Supplemental Financial Statement Information December 31, September 30, Inventories Raw materials and supplies $ 29.7 $ 32.4 Work in process 61.0 73.0 Finished products 118.3 170.5 Total inventories $ 209.0 $ 275.9 Other Current Assets Miscellaneous receivables $ 32.5 $ 34.3 Due from Edgewell 17.5 30.4 Prepaid expenses 57.5 53.2 Value added tax collectible from customers 27.6 19.9 Other 4.4 5.6 Total other current assets $ 139.5 $ 143.4 Property, Plant and Equipment Land $ 9.8 $ 10.0 Buildings 138.3 162.8 Machinery and equipment 761.7 886.2 Construction in progress 15.5 12.1 Total gross property 925.3 1,071.1 Accumulated depreciation (725.9 ) (865.5 ) Total property, plant and equipment, net $ 199.4 $ 205.6 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 36.8 $ 29.7 Accrued trade allowances 65.1 41.7 Accrued salaries, vacations and incentive compensation 22.6 39.5 2013 restructuring reserve 2.3 4.0 Spin restructuring reserve 5.8 12.3 Income taxes payable 42.4 43.7 Other 102.3 120.3 Total other current liabilities $ 277.3 $ 291.2 Other Liabilities Pensions and other retirement benefits $ 111.8 $ 119.3 Deferred compensation 55.3 58.5 Other non-current liabilities 52.4 50.2 Total other liabilities $ 219.5 $ 228.0 |
Legal proceedings_contingencies
Legal proceedings/contingencies | 3 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal proceedings/contingencies | Legal proceedings/contingencies The Company and its affiliates are subject to a number of legal proceedings in various jurisdictions arising out of its operations. 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. We are a party to legal proceedings and claims that arise during the ordinary course of business. We review our legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follow appropriate accounting guidance when making accrual and disclosure decisions. We establish accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading. We do 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 the Company's financial position, results of operations, or cash flows, when taking into account established accruals for estimated liabilities. |
Description of Business and B24
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation - The accompanying unaudited Consolidated Condensed Financial Statements include the accounts of Energizer and its subsidiaries. All significant intercompany transactions are eliminated. Energizer has no material equity method investments, variable interests or non-controlling interests. For the three months ended December 31, 2014, which was prior to the spin-off, our financial statements were prepared on a combined standalone basis derived from the financial statements and accounting records of Edgewell and included expense allocations for: (1) certain product warehousing and distribution; (2) various transaction process functions; (3) a consolidated sales force and management for certain countries; (4) certain support functions that were provided on a centralized basis within Edgewell and not recorded at the business division level, including, but not limited to, finance, audit, legal, information technology, human resources, communications, facilities, and compliance; (5) employee benefits and compensation; (6) share-based compensation and (7) financing costs. These expenses were allocated to Energizer on the basis of direct usage where identifiable, with the remainder allocated on a basis of global net sales, cost of sales, operating income, headcount or other measures of Energizer and Edgewell. Management believes the assumptions regarding allocated expenses reasonably reflect the utilization of services provided to or the benefit received by Energizer during the periods prior to the spin-off. Nevertheless, the allocations may not include all of the actual expenses that would have been incurred by Energizer and may not reflect our results of operations, financial position and cash flows had we been an independent standalone company during that period. It is not practicable to estimate actual costs that would have been incurred had Energizer been a standalone company during the periods prior to the spin-off. Actual costs that would have been incurred if Energizer had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, such as information technology and infrastructure. The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The year-end condensed Consolidated Balance Sheet was derived from the audited financial statements included in Energizer's Report on Form 10-K, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain reclassifications have been made to the prior year financial statements to conform to the current presentation. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes thereto for Energizer for the year ended September 30, 2015 included in the Annual Report on Form 10-K dated November 20, 2015. |
Recently issued accounting pronouncements | Recently Adopted Accounting Pronouncements - During the quarter ended December 31, 2015, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes. This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet and results in each tax paying jurisdiction having either a noncurrent deferred tax asset or a noncurrent deferred tax liability. The netting of different jurisdictions' noncurrent deferred tax assets and liabilities is still prohibited. As of December 31, 2015, the Company had a long term deferred tax asset balance of $ 160.3 and a long term deferred tax liability balance of $ 10.5 . The Company applied this guidance retrospectively and the reclassification resulted in a long term deferred tax asset balance as of September 30, 2015 of $ 163.1 , an increase of $ 49.3 to the previously reported balance. Additionally, the long term deferred tax liability increased $1.2 , resulting in a balance of $ 8.8 , as of September 30, 2015. The current portion of the deferred tax asset and deferred tax liability had previously been reported in Other current assets and Other current liabilities, respectively. During the quarter ended December 31, 2015, the Company adopted FASB ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , and FASB ASU 2015-15 , Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These ASUs require most debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability rather than as an asset; however debt issuance costs relating to revolving credit facilities will remain in other assets. We adopted this standard for the first fiscal quarter of 2016 and applied it retrospectively to September 30, 2015. See Note 11, Debt . The balance for unamortized debt issuance costs that were reclassified to Debt and from Other assets were $10.3 and $10.7 at December 31, 2015 and September 30, 2015, respectively. |
Spin Costs (Tables)
Spin Costs (Tables) - Spin-off | 3 Months Ended |
Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | The estimated impact of allocating such charges to segment results would have been as follows: Quarter Ended December 31, 2015 North America Latin America EMEA Asia Pacific Corporate Total Severance and termination related costs $ (1.4 ) $ — $ 0.6 $ 1.1 $ — $ 0.3 Other exit costs — 0.1 0.4 0.1 — 0.6 Total $ (1.4 ) $ 0.1 $ 1.0 $ 1.2 $ — $ 0.9 Quarter Ended December 31, 2014 North America Latin America EMEA Asia Pacific Corporate Total Severance and termination related costs $ 0.2 $ 0.2 $ — $ 0.3 $ 0.4 $ 1.1 Total $ 0.2 $ 0.2 $ — $ 0.3 $ 0.4 $ 1.1 |
Schedule of Restructuring Reserve by Type of Cost | The following table represents the spin restructuring accrual activity and ending accrual balance at December 31, 2015 and December 31, 2014 included in other current liabilities on the Consolidated Condensed Balance Sheet. Utilized October 1, 2015 Charge to Income Other (a) Cash Non-Cash December 31, 2015 Severance and termination related costs $ 12.0 $ 0.3 $ (0.2 ) $ (6.5 ) $ — $ 5.6 Other exit costs 0.3 0.6 — (0.7 ) — 0.2 Total $ 12.3 $ 0.9 $ (0.2 ) $ (7.2 ) $ — $ 5.8 Utilized October 1, 2014 Charge to Income Other (a) Cash Non-Cash December 31, 2014 Severance & Termination Related Costs $ — $ 1.1 $ — $ — $ — $ 1.1 Total $ — $ 1.1 $ — $ — $ — $ 1.1 (a) Includes the impact of currency translation. |
Restructuring (Tables)
Restructuring (Tables) - 2013 Restructuring | 3 Months Ended |
Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | The pre-tax expense/(income) for charges and credits related to the 2013 restructuring project for Energizer for the three months ended December 31, 2015 and 2014 are noted in the tables below: Quarter Ended December 31, 2015 North America Latin America EMEA Asia Pacific Corporate Total Severance and related benefit costs $ 0.2 $ — $ — $ — $ — $ 0.2 Consulting, program management and other exit costs (0.2 ) — — 0.2 — — Net loss on asset sales 2.0 — — — — 2.0 Total $ 2.0 $ — $ — $ 0.2 $ — $ 2.2 Quarter Ended December 31, 2014 North America Latin America EMEA Asia Pacific Corporate Total Severance and related benefit costs $ 0.1 $ — $ — $ — $ — $ 0.1 Consulting, program management and other exit costs 0.8 0.1 0.2 0.2 — 1.3 Net gain on asset sales — — — (11.0 ) — (11.0 ) Total $ 0.9 $ 0.1 $ 0.2 $ (10.8 ) $ — $ (9.6 ) |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the 2013 restructuring activities and related accrual (excluding certain information technology enablement charges related to the restructuring) for the quarter ended December 31, 2015 and 2014 . Utilized October 1, 2015 Charge to Income Other(a) Cash Non-Cash December 31, 2015 Severance & Termination Related Costs $ 1.9 $ 0.2 $ — $ (1.2 ) $ — $ 0.9 Other Related Costs 2.1 — — (0.7 ) — 1.4 Net loss on asset sales — 2.0 — — (2.0 ) — Total $ 4.0 $ 2.2 $ — $ (1.9 ) $ (2.0 ) $ 2.3 Utilized October 1, 2014 Charge to Income Other (a) Cash Non-Cash December 31, 2014 Severance & Termination Related Costs $ 12.4 $ 0.1 $ (7.3 ) $ (1.7 ) $ — $ 3.5 Other Related Costs — 1.3 — (1.3 ) — — Net (gain)/loss on asset sales — (11.0 ) 12.5 1.5 (3.0 ) — Total $ 12.4 $ (9.6 ) $ 5.2 $ (1.5 ) $ (3.0 ) $ 3.5 (a) Includes the impact of currency translation |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share for the quarter ended December 31, 2015 and 2014, respectively. (in millions, except per share data) For the Quarter ended 2015 2014 Net earnings $ 65.5 $ 61.7 Basic average shares outstanding 62.0 62.2 Effect of dilutive restricted stock equivalents 0.3 — Diluted average shares outstanding 62.3 62.2 Basic earnings per common share $ 1.06 $ 0.99 Diluted earnings per common share $ 1.05 $ 0.99 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment sales and profitability for the quarter ended December 31, 2015 and 2014 , respectively, are presented below. For the Quarter Ended December 31, 2015 2014 Net Sales North America $ 279.2 $ 251.4 Latin America 34.5 38.3 EMEA 117.9 125.9 Asia Pacific 75.2 85.7 Total net sales $ 506.8 $ 501.3 Segment Profit North America $ 90.8 $ 70.9 Latin America 7.9 4.7 EMEA 23.0 34.4 Asia Pacific 19.5 23.0 Total segment profit 141.2 133.0 General corporate and other expenses (15.9 ) (17.3 ) Global marketing expense (2.2 ) (4.3 ) Research and development expense (6.1 ) (6.2 ) Restructuring (1) (3.3 ) 9.5 Integration (2) — (0.4 ) Spin costs (2) (6.0 ) (22.1 ) Spin restructuring (0.9 ) (1.1 ) Interest expense (12.9 ) (12.5 ) Other financing items, net 0.6 2.8 Total earnings before income taxes $ 94.5 $ 81.4 (1) Includes pre-tax costs of $1.1 for the three months ended December 31, 2015 of accelerated depreciation related to our streamlining of plants recorded in cost of products sold and $0.1 for the three months ended December 31, 2014 , associated with certain information technology and related activities, which are included in SG&A on the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income. (2) Included in SG&A in the unaudited Consolidated Condensed Statements of Earnings and Comprehensive Income. |
Revenue from External Customers by Products and Services | Supplemental product information is presented below for revenues from external customers: For the Quarter Ended December 31, Net Sales 2015 2014 Alkaline batteries $ 341.0 $ 327.9 Other batteries and lighting products 165.8 173.4 Total net sales $ 506.8 $ 501.3 |
Reconciliation of Assets from Segment to Consolidated | Total assets by segment are presented below: December 31, September 30, 2015 North America $ 399.6 $ 394.8 Latin America 62.7 63.3 EMEA 249.5 237.5 Asia Pacific 574.8 573.2 Total segment assets $ 1,286.6 $ 1,268.8 Corporate 216.1 235.4 Goodwill and other intangible assets 114.8 114.4 Total assets $ 1,617.5 $ 1,618.6 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment as of October 1, 2015 and December 31, 2015 : North America Latin America EMEA Asia Pacific Total Balance at October 1, 2015 $ 19.1 $ 1.6 $ 6.0 $ 11.4 $ 38.1 Cumulative translation adjustment — (0.1 ) (0.1 ) (0.2 ) (0.4 ) Balance at December 31, 2015 $ 19.1 $ 1.5 $ 5.9 $ 11.2 $ 37.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The detail of long-term debt was as follows: December 31, 2015 September 30, 2015 Senior Secured Term Loan B Facility due 2022 $ 399.0 $ 399.0 5.50% Senior Notes due 2025 600.0 600.0 Total long-term debt, including current maturities 999.0 999.0 Less current portion (4.0 ) (3.0 ) Less unamortized debt discount and debt issuance fees (11.3 ) (11.7 ) Total long-term debt $ 983.7 $ 984.3 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The Company’s net periodic pension benefit cost for these plans are as follows: For the Quarter Ended December 31, 2015 Service Cost $ 0.3 Interest Cost 6.7 Expected return on plan assets (10.6 ) Amortization of prior service cost — Amortization of unrecognized net losses 1.6 Settlement charge 0.1 Net periodic benefit cost / (credit) $ (1.9 ) |
Financial Instruments and Ris32
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table provides the Company's estimated fair values as of December 31, 2015 and 2014 , and the amounts of gains and losses on derivative instruments classified as cash flow hedges as of and for the quarter ended December 31, 2015 and 2014 , respectively: At December 31, 2015 For the Quarter Ended December 31, 2015 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value, Asset (Liability) (1) (2) Gain/(Loss) Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ 3.6 $ 1.9 $ 2.8 Interest rate contracts $ (3.3 ) $ 1.2 $ (0.7 ) Total $ 0.3 $ 3.1 $ 2.1 At September 30, 2015 For the Quarter Ended December 31, 2014 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value, Asset (Liability) (1) (2) Gain/(Loss) Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ 4.5 $ 3.5 $ 2.0 Interest rate contracts (5.2 ) — — Total $ (0.7 ) $ 3.5 $ 2.0 1. All derivative assets are presented in Other current assets or Other assets. 2. All derivative liabilities are presented in Other current liabilities or Other liabilities. 3. OCI is defined as other comprehensive income. 4. Gain/(loss) reclassified to Income was recorded as follows: Foreign currency contracts in other financing items, net and interest rate contracts in interest expense. 5. Each of these hedging relationships has derivative instruments with a high correlation to the underlying exposure being hedged and has been deemed highly effective in offsetting the underlying risk. |
Derivative Instruments, Gain (Loss) | The following table provides estimated fair values as of December 31, 2015 and September 30, 2015 and the gains and losses on derivative instruments not classified as cash flow hedges as of and for the quarter ended December 31, 2015 and 2014 , respectively. At December 31, 2015 For the Quarter Ended December 31, 2015 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (Liability) Gain/(Loss) Recognized in Income (1) Foreign currency contracts (0.7 ) (0.7 ) At September 30, 2015 For the Quarter Ended December 31, 2014 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (Liability) Gain/(Loss) Recognized in Income (1) Share option (2) $ — $ 0.3 Foreign currency contracts — 1.0 Total $ — $ 1.3 1. Gain/(loss) recognized in Income was recorded as follows: Share option in Selling, general and administrative expense and foreign currency and commodity contracts in Other financing, items, net. 2. Edgewell held a share option with a major financial institution, which matured in November 2014 and was subsequently not renewed. |
Offsetting Liabilities | Offsetting of derivative assets At December 31, 2015 At September 30, 2015 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 4.0 $ (0.4 ) $ 3.6 $ 4.9 $ (0.4 ) $ 4.5 Offsetting of derivative liabilities At December 31, 2015 At September 30, 2015 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (0.7 ) $ — $ (0.7 ) $ — $ — $ — |
Offsetting Assets | Offsetting of derivative assets At December 31, 2015 At September 30, 2015 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 4.0 $ (0.4 ) $ 3.6 $ 4.9 $ (0.4 ) $ 4.5 Offsetting of derivative liabilities At December 31, 2015 At September 30, 2015 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (0.7 ) $ — $ (0.7 ) $ — $ — $ — |
Schedule of Fair Value, 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, as of December 31, 2015 and September 31, 2015 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 (Liabilities)/Assets at estimated fair value: December 31, September 30, Deferred Compensation $ (55.3 ) $ (58.5 ) Derivatives - Foreign Currency Contracts 2.9 4.5 Derivatives - Interest Rate Swap (3.3 ) (5.2 ) Net Liabilities at estimated fair value $ (55.7 ) $ (59.2 ) |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive (Loss)/Income (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (AOCI), net of tax by component: Foreign Currency Translation Adjustments Pension Activity Hedging Activity Interest Rate Swap Total Balance at September 30, 2015 $ (109.6 ) $ (139.8 ) $ 3.4 $ (3.3 ) $ (249.3 ) OCI before reclassifications (4.6 ) 0.9 1.5 0.9 (1.3 ) Reclassifications to earnings — 1.2 (2.1 ) 0.4 (0.5 ) Balance at December 31, 2015 $ (114.2 ) $ (137.7 ) $ 2.8 $ (2.0 ) $ (251.1 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of AOCI: For the Quarter Ended December 31, 2015 For the Quarter Ended December 31, 2014 Details of AOCI Components Amount Reclassified Amount Reclassified Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign exchange contracts $ 2.8 $ 2.0 Other financing items, net Interest rate swap (0.7 ) — Interest expense 2.1 2.0 Total before tax (0.4 ) (0.5 ) Tax (expense)/benefit $ 1.7 $ 1.5 Net of tax Amortization of defined benefit pension items Actuarial loss (1.6 ) 0.1 (2) Settlement loss (0.1 ) — (2) (1.7 ) 0.1 Total before tax 0.5 — Tax (expense)/benefit $ (1.2 ) $ 0.1 Net of tax Total reclassifications for the period $ 0.5 $ 1.6 Net of tax (1) Amounts in parentheses indicate debits to Consolidated Statement of Earnings. (2) These AOCI components are included in the computation of net periodic benefit cost (see Note 12, Pension Plans, for further details). |
Supplemental Financial Statem34
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | December 31, September 30, Inventories Raw materials and supplies $ 29.7 $ 32.4 Work in process 61.0 73.0 Finished products 118.3 170.5 Total inventories $ 209.0 $ 275.9 Other Current Assets Miscellaneous receivables $ 32.5 $ 34.3 Due from Edgewell 17.5 30.4 Prepaid expenses 57.5 53.2 Value added tax collectible from customers 27.6 19.9 Other 4.4 5.6 Total other current assets $ 139.5 $ 143.4 Property, Plant and Equipment Land $ 9.8 $ 10.0 Buildings 138.3 162.8 Machinery and equipment 761.7 886.2 Construction in progress 15.5 12.1 Total gross property 925.3 1,071.1 Accumulated depreciation (725.9 ) (865.5 ) Total property, plant and equipment, net $ 199.4 $ 205.6 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 36.8 $ 29.7 Accrued trade allowances 65.1 41.7 Accrued salaries, vacations and incentive compensation 22.6 39.5 2013 restructuring reserve 2.3 4.0 Spin restructuring reserve 5.8 12.3 Income taxes payable 42.4 43.7 Other 102.3 120.3 Total other current liabilities $ 277.3 $ 291.2 Other Liabilities Pensions and other retirement benefits $ 111.8 $ 119.3 Deferred compensation 55.3 58.5 Other non-current liabilities 52.4 50.2 Total other liabilities $ 219.5 $ 228.0 |
Description of Business and B35
Description of Business and Basis of Presentation Narrative (Details) $ in Millions | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jul. 01, 2015shares | Jun. 16, 2015 |
Class of Stock [Line Items] | ||||
Common stock distribution ratio | 1 | |||
Deferred tax asset | $ 160.3 | $ 163.1 | ||
Long term deferred tax liability | 10.5 | 8.8 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares of common stock distributed | shares | 62,193,281 | |||
New Accounting Pronouncement, Early Adoption, Effect | ||||
Class of Stock [Line Items] | ||||
Deferred tax asset | 49.3 | |||
Long term deferred tax liability | 1.2 | |||
New Accounting Pronouncement, Early Adoption, Effect | Other Assets | ||||
Class of Stock [Line Items] | ||||
Deferred finance costs, net | (10.3) | (10.7) | ||
New Accounting Pronouncement, Early Adoption, Effect | Other Assets | ||||
Class of Stock [Line Items] | ||||
Deferred finance costs, net | $ 10.3 | $ 10.7 |
Spin Costs - Narrative (Details
Spin Costs - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 3.1 | $ 0 | |
Additional pre-tax spin costs expected to be incurred | 6.9 | 23.2 | |
Costs incurred and allocated for the spin-off | 192.1 | ||
Spin-off | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 0.9 | 1.1 | |
Additional pre-tax spin costs expected to be incurred | 0.9 | 1.1 | |
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional pre-tax spin costs expected to be incurred | $ 6 | $ 22.1 | |
Forecast | |||
Restructuring Cost and Reserve [Line Items] | |||
Additional pre-tax spin costs expected to be incurred | $ 3 |
Spin Costs, Restructuring and R
Spin Costs, Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Total Restructuring Charges | $ 3.1 | $ 0 |
Spin-off | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination related costs | 0.3 | 1.1 |
Other exit costs | 0.6 | |
Total Restructuring Charges | 0.9 | 1.1 |
Spin-off | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination related costs | 0 | 0.4 |
Other exit costs | 0 | |
Total Restructuring Charges | 0 | 0.4 |
Spin-off | North America | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination related costs | (1.4) | 0.2 |
Other exit costs | 0 | |
Total Restructuring Charges | (1.4) | 0.2 |
Spin-off | Latin America | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination related costs | 0 | 0.2 |
Other exit costs | 0.1 | |
Total Restructuring Charges | 0.1 | 0.2 |
Spin-off | EMEA | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination related costs | 0.6 | 0 |
Other exit costs | 0.4 | |
Total Restructuring Charges | 1 | 0 |
Spin-off | Asia Pacific | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and termination related costs | 1.1 | 0.3 |
Other exit costs | 0.1 | |
Total Restructuring Charges | $ 1.2 | $ 0.3 |
Spin Costs, Schedule of Restruc
Spin Costs, Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 3.1 | $ 0 |
Severance & Termination Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 12 | 0 |
Restructuring | 0.3 | 1.1 |
Other | (0.2) | 0 |
Cash | (6.5) | 0 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 5.6 | 1.1 |
Other exit costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 0.3 | |
Restructuring | 0.6 | |
Other | 0 | |
Cash | (0.7) | |
Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 0.2 | |
Spin-off | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 12.3 | 0 |
Restructuring | 0.9 | 1.1 |
Other | (0.2) | 0 |
Cash | (7.2) | 0 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | $ 5.8 | $ 1.1 |
Restructuring, Restructuring an
Restructuring, Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Total Restructuring Charges | $ 3.1 | $ 0 |
2013 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0.2 | 0.1 |
Consulting, program management and other exit costs | 0 | 1.3 |
Net loss on asset sales | 2 | (11) |
Total Restructuring Charges | 2.2 | (9.6) |
Corporate | 2013 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0 | 0 |
Consulting, program management and other exit costs | 0 | 0 |
Net loss on asset sales | 0 | 0 |
Total Restructuring Charges | 0 | 0 |
North America | Operating Segments | 2013 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0.2 | 0.1 |
Consulting, program management and other exit costs | (0.2) | 0.8 |
Net loss on asset sales | 2 | 0 |
Total Restructuring Charges | 2 | 0.9 |
Latin America | Operating Segments | 2013 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0 | 0 |
Consulting, program management and other exit costs | 0 | 0.1 |
Net loss on asset sales | 0 | 0 |
Total Restructuring Charges | 0 | 0.1 |
EMEA | Operating Segments | 2013 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0 | 0 |
Consulting, program management and other exit costs | 0 | 0.2 |
Net loss on asset sales | 0 | 0 |
Total Restructuring Charges | 0 | 0.2 |
Asia Pacific | Operating Segments | 2013 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0 | 0 |
Consulting, program management and other exit costs | 0.2 | 0.2 |
Net loss on asset sales | 0 | (11) |
Total Restructuring Charges | $ 0.2 | $ (10.8) |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ (3.1) | $ 0 |
North America | Cost of Products Sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Depreciation | 1.1 | |
2013 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax restructuring charges since inception of the project | 200 | |
Restructuring | (2.2) | 9.6 |
Net gain on asset sales | (2) | 11 |
2013 Restructuring | Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ (0.1) | |
2013 Restructuring | Cost of Products Sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ (1.1) |
Restructuring, Schedule of Rest
Restructuring, Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring | $ 3.1 | $ 0 |
Severance & Termination Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 12 | 0 |
Restructuring | 0.3 | 1.1 |
Other | (0.2) | 0 |
Cash | (6.5) | 0 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 5.6 | 1.1 |
Other Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0.3 | |
Restructuring | 0.6 | |
Other | 0 | |
Cash | (0.7) | |
Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 0.2 | |
2013 Restructuring | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 4 | 12.4 |
Restructuring | 2.2 | (9.6) |
Other | 0 | 5.2 |
Cash | (1.9) | (1.5) |
Non-Cash | 2 | 3 |
Restructuring Reserve, Ending Balance | 2.3 | 3.5 |
2013 Restructuring | Severance & Termination Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 1.9 | 12.4 |
Restructuring | 0.2 | 0.1 |
Other | 0 | (7.3) |
Cash | (1.2) | (1.7) |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 0.9 | 3.5 |
2013 Restructuring | Other Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 2.1 | 0 |
Restructuring | 0 | 1.3 |
Other | 0 | 0 |
Cash | (0.7) | (1.3) |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 1.4 | 0 |
2013 Restructuring | Net loss on asset sales | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0 | 0 |
Restructuring | 2 | (11) |
Other | 0 | 12.5 |
Cash | 0 | 1.5 |
Non-Cash | 2 | 3 |
Restructuring Reserve, Ending Balance | $ 0 | $ 0 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) - USD ($) $ in Millions | Dec. 12, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 0 | $ 11.1 | ||
Goodwill | $ 37.7 | $ 38.1 | ||
Battery Manufacturing Facility, China | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 12.1 | |||
Payments to acquire business | $ 11.1 | |||
Goodwill | $ 2.3 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | 30.70% | 24.20% |
Share-Based Payments Narrative
Share-Based Payments Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Income tax benefit | $ 1.7 | $ 1.2 | |
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation cost | $ 4.6 | $ 3.2 | |
Key Employees and Key Executives | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting period, years | 3 years | ||
RSE awards granted, shares | 290 |
Share-Based Payments, Restricte
Share-Based Payments, Restricted Stock Equivalents (Details) - ParentCo | 1 Months Ended |
Nov. 30, 2014$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Closing stock price | $ / shares | $ 37.34 |
Restricted Stock Equivalents | Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSE awards granted, shares | 106,000 |
Vesting period, years | 4 years |
Restricted Stock Equivalents | Key Executives | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSE awards granted, shares | 87,000 |
Earnings per share, Schedule of
Earnings per share, Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 65.5 | $ 61.7 |
Basic average shares outstanding | 62 | 62.2 |
Effect of dilutive restricted stock equivalents | 0.3 | 0 |
Diluted average shares outstanding | 62.3 | 62.2 |
Basic earnings per common share | $ 1.06 | $ 0.99 |
Diluted earnings per common share | $ 1.05 | $ 0.99 |
Earnings per share Narrative (D
Earnings per share Narrative (Details) | 3 Months Ended | ||
Dec. 31, 2015shares | Jul. 01, 2015shares | Jun. 16, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock distribution ratio | 1 | ||
Antidilutive securities excluded in calculation | 500,000 | ||
Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Number of shares of common stock distributed | 62,193,281 |
Segments Narrative (Details)
Segments Narrative (Details) | 3 Months Ended |
Dec. 31, 2015Segment | |
Noncontrolling Interest [Line Items] | |
Number of reportable segments | 4 |
Segments, Schedule of Segment R
Segments, Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 506.8 | $ 501.3 |
Segment Profit | 229.8 | 233.8 |
Research and development expense | (6.1) | (6.2) |
Spin-off costs | (6.9) | (23.2) |
Spin restructuring | (3.1) | 0 |
Nonoperating Income (Expense) | 0.6 | 2.8 |
Earnings before income taxes | 94.5 | 81.4 |
2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | (2.2) | 9.6 |
Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin-off costs | (0.9) | (1.1) |
Spin restructuring | (0.9) | (1.1) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Profit | 141.2 | 133 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
General corporate and other expenses | (15.9) | (17.3) |
Global marketing expense | (2.2) | (4.3) |
Research and development expense | (6.1) | (6.2) |
Spin-off costs | (6) | (22.1) |
Interest and other financing items | (12.9) | (12.5) |
Segment Reconciling Items | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
2013 restructuring | (3.3) | 9.5 |
Integration | 0 | (0.4) |
Segment Reconciling Items | Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | (0.9) | (1.1) |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 279.2 | 251.4 |
Segment Profit | 90.8 | 70.9 |
North America | Operating Segments | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | (2) | (0.9) |
North America | Operating Segments | Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | 1.4 | (0.2) |
Latin America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 34.5 | 38.3 |
Segment Profit | 7.9 | 4.7 |
Latin America | Operating Segments | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | 0 | (0.1) |
Latin America | Operating Segments | Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | (0.1) | (0.2) |
EMEA | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 117.9 | 125.9 |
Segment Profit | 23 | 34.4 |
EMEA | Operating Segments | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | 0 | (0.2) |
EMEA | Operating Segments | Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | (1) | 0 |
Asia Pacific | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 75.2 | 85.7 |
Segment Profit | 19.5 | 23 |
Asia Pacific | Operating Segments | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | (0.2) | 10.8 |
Asia Pacific | Operating Segments | Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | (1.2) | (0.3) |
Selling, General and Administrative Expenses | ||
Segment Reporting Information [Line Items] | ||
Spin-off costs | (6) | (22.1) |
Selling, General and Administrative Expenses | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | $ (0.1) | |
Cost of Products Sold | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | $ (1.1) |
Segments, Revenue from External
Segments, Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 506.8 | $ 501.3 |
Alkaline batteries | ||
Revenue from External Customer [Line Items] | ||
Net sales | 341 | 327.9 |
Other batteries and lighting products | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 165.8 | $ 173.4 |
Segments, Reconciliation of Ass
Segments, Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill and other intangible assets | $ 114.8 | $ 114.4 |
Total assets | 1,617.5 | 1,618.6 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 1,286.6 | 1,268.8 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 216.1 | 235.4 |
North America | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 399.6 | 394.8 |
Latin America | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 62.7 | 63.3 |
EMEA | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 249.5 | 237.5 |
Asia Pacific | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | $ 574.8 | $ 573.2 |
Goodwill and intangible assets,
Goodwill and intangible assets, Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 38.1 |
Cumulative translation adjustment | (0.4) |
Ending balance | 37.7 |
North America | |
Goodwill [Roll Forward] | |
Beginning balance | 19.1 |
Cumulative translation adjustment | 0 |
Ending balance | 19.1 |
Latin America | |
Goodwill [Roll Forward] | |
Beginning balance | 1.6 |
Cumulative translation adjustment | (0.1) |
Ending balance | 1.5 |
EMEA | |
Goodwill [Roll Forward] | |
Beginning balance | 6 |
Cumulative translation adjustment | (0.1) |
Ending balance | 5.9 |
Asia Pacific | |
Goodwill [Roll Forward] | |
Beginning balance | 11.4 |
Cumulative translation adjustment | (0.2) |
Ending balance | $ 11.2 |
Goodwill and intangible asset53
Goodwill and intangible assets Narrative (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible assets | $ 77,100,000 | $ 76,300,000 |
Amortizable intangible assets | $ 0 | $ 0 |
Debt, Schedule of Long-term Deb
Debt, Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | $ 999 | $ 999 |
Less current portion | (4) | (3) |
Less unamortized debt discount and debt issuance fees | (11.3) | (11.7) |
Long-term debt | 983.7 | 984.3 |
Secured Debt | Senior Secured Term Loan B Facility, Due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | 399 | 399 |
Senior Notes | 5.50% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | $ 600 | $ 600 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jun. 01, 2015 | Dec. 31, 2015 | Sep. 30, 2015 |
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.64% | ||
Senior Secured Term Loan B Facility, Due 2022 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Term of debt | 7 years | ||
Face amount of debt | $ 400,000,000 | ||
Discount amount | $ 1,000,000 | ||
Principal payments as a percentage of the original principal balance | 0.25% | ||
Senior Secured Term Loan B Facility, Due 2022 | Secured Debt | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Variable rate debt hedged | $ 200,000,000 | ||
Fixed interest rate | 2.22% | ||
Senior Secured Term Loan B Facility, Due 2022 | Secured Debt | LIBOR | |||
Debt Instrument [Line Items] | |||
LIBOR | LIBOR | ||
Basis points | 2.50% | ||
Basis points floor | 0.75% | ||
5.50% Senior Notes due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 600,000,000 | ||
Stated interest rate of debt | 5.50% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Term of debt | 5 years | ||
Maximum amount for line of credit | $ 250,000,000 | ||
Outstanding letters of credit | $ 0 | ||
Amount available remaining | 243,600,000 | ||
Revolving Credit Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
LIBOR | LIBOR | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit | 6,400,000 | ||
Estimate of Fair Value Measurement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Percentage Bearing Fixed Interest, Fair Value Amount | $ 552,900,000 | $ 0 |
Debt, Long-term Debt Maturities
Debt, Long-term Debt Maturities (Details) $ in Millions | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
Maturities of long term debt in one year | $ 4 |
Maturities of long term debt in two years | 4 |
Maturities of long term debt in three years | 4 |
Maturities of long term debt in four years | 4 |
Maturities of long term debt in five years | 4 |
Maturities of long term debt thereafter | $ 979 |
Pension Plans, Schedule of Net
Pension Plans, Schedule of Net Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Allocated expenses | $ 3.1 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 0.3 | |
Interest Cost | 6.7 | |
Expected return on plan assets | (10.6) | |
Amortization of prior service cost | 0 | |
Amortization of unrecognized net losses | 1.6 | |
Settlement charge | 0.1 | |
Net periodic benefit cost / (credit) | $ (1.9) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 01, 2016 | Dec. 16, 2015 | Nov. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 01, 2015 |
Class of Stock [Line Items] | ||||||
Number of shares repurchased | 600,000 | |||||
Payments for Repurchase of Common Stock | $ 21.8 | $ 0 | ||||
Average purchase price (in dollars per share) | $ 36.27 | |||||
Dividend declared (in dollars per share) | $ 0.25 | |||||
Dividends paid | $ 15.4 | $ 15.4 | $ 0 | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares authorized to be acquired | 7,500,000 | |||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Dividend declared (in dollars per share) | $ 0.25 |
Financial Instruments and Ris59
Financial Instruments and Risk Management Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Jun. 01, 2015 | |
Derivative [Line Items] | ||||
Unrecognized pre-tax loss | $ 3.3 | $ 5.2 | ||
Unrealized pre-tax gain | 3,600,000 | $ 4,500,000 | ||
Portion or pre-tax gain included in AOCI expected to be included in earnings | 3,500,000 | |||
Line of Credit | Senior Secured Term Loan B Facility, net of discount, due 2022 | ||||
Derivative [Line Items] | ||||
Face amount of debt | 400,000,000 | |||
Reported Value Measurement | ||||
Derivative [Line Items] | ||||
Fair market value of fixed rate long-term debt | 600,000,000 | |||
Estimate of Fair Value | ||||
Derivative [Line Items] | ||||
Fair market value of fixed rate long-term debt | 552,900,000 | $ 0 | ||
Senior Secured Term Loan B Facility, Due 2022 | Senior Secured Term Loan B Facility, net of discount, due 2022 | ||||
Derivative [Line Items] | ||||
Face amount of debt | $ 400,000,000 | |||
Senior Secured Term Loan B Facility, Due 2022 | Senior Secured Term Loan B Facility, net of discount, due 2022 | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Variable rate debt hedged | $ 200,000,000 | |||
Fixed interest rate | 2.22% |
Financial Instruments and Ris60
Financial Instruments and Risk Management, Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | $ 0.3 | $ (0.7) | |
Gain/(Loss) Recognized in OCI | 3.1 | $ 3.5 | |
Gain/(Loss) Reclassified From OCI into Income(Effective Portion) | 2.1 | 2 | |
Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | (3.3) | (5.2) | |
Gain/(Loss) Recognized in OCI | 1.2 | 0 | |
Gain/(Loss) Reclassified From OCI into Income(Effective Portion) | (0.7) | 0 | |
Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | 3.6 | $ 4.5 | |
Gain/(Loss) Recognized in OCI | 1.9 | 3.5 | |
Gain/(Loss) Reclassified From OCI into Income(Effective Portion) | $ 2 | ||
Reclassification out of Accumulated Other Comprehensive Income | Hedging Activity | Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) Reclassified From OCI into Income(Effective Portion) | $ 2.8 |
Financial Instruments and Ris61
Financial Instruments and Risk Management, Derivative Instruments, Gain (Loss) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Asset (Liability) | $ 0 | ||
Gain/(Loss) Recognized in Income | $ 1.3 | ||
Share option | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Asset (Liability) | 0 | ||
Gain/(Loss) Recognized in Income | 0.3 | ||
Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Asset (Liability) | $ (0.7) | $ 0 | |
Gain/(Loss) Recognized in Income | $ (0.7) | $ 1 |
Financial Instruments and Ris62
Financial Instruments and Risk Management, Offsetting Assets and Liabilities (Details) - Foreign currency contracts - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | $ 4 | $ 4.9 |
Gross amounts offset in the Balance Sheet | (0.4) | (0.4) |
Net amounts of assets presented in the Balance Sheet | 3.6 | 4.5 |
Gross amounts of recognized liability | 0.7 | 0 |
Gross amounts offset in the Balance Sheet | 0 | 0 |
Net amounts of liabilities presented in the Balance Sheet | $ 0.7 | $ 0 |
Financial Instruments and Ris63
Financial Instruments and Risk Management, Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Level 2 - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation | $ (55.3) | $ (58.5) |
Derivatives - Foreign Currency Contracts | 2.9 | 4.5 |
Net Liabilities at estimated fair value | (55.7) | (59.2) |
Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency Contracts | $ (3.3) | $ (5.2) |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ (249.3) |
OCI before reclassifications | (1.3) |
Reclassifications to earnings | (0.5) |
Ending balance | (251.1) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (109.6) |
OCI before reclassifications | (4.6) |
Ending balance | (114.2) |
Pension Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (139.8) |
OCI before reclassifications | 0.9 |
Reclassifications to earnings | 1.2 |
Ending balance | (137.7) |
Hedging Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 3.4 |
OCI before reclassifications | 1.5 |
Reclassifications to earnings | (2.1) |
Ending balance | 2.8 |
Interest Rate Swap | Hedging Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (3.3) |
OCI before reclassifications | 0.9 |
Reclassifications to earnings | (0.4) |
Ending balance | $ (2) |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other financing items, net | $ 0.6 | $ 2.8 |
Interest expense | (12.9) | (12.5) |
Total before tax | 94.5 | 81.4 |
Tax (expense)/benefit | (29) | (19.7) |
Net earnings | 65.5 | 61.7 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | 0.5 | 1.6 |
Gains and losses on cash flow hedges | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other financing items, net | 2.8 | 2 |
Interest expense | (0.7) | 0 |
Total before tax | 2.1 | 2 |
Tax (expense)/benefit | (0.4) | (0.5) |
Net earnings | 1.7 | 1.5 |
Amortization of defined benefit pension/postretirement items | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial loss | (1.6) | 0.1 |
Settlement loss | (0.1) | 0 |
Total before tax | (1.7) | 0.1 |
Tax (expense)/benefit | 0.5 | 0 |
Net earnings | $ (1.2) | $ 0.1 |
Supplemental Financial Statem66
Supplemental Financial Statement Information, Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 30, 2015 |
Inventories | ||
Raw materials and supplies | $ 29.7 | $ 32.4 |
Work in process | 61 | 73 |
Finished products | 118.3 | 170.5 |
Total inventories | 209 | 275.9 |
Other Current Assets | ||
Miscellaneous receivables | 32.5 | 34.3 |
Due from Edgewell | 17.5 | 30.4 |
Prepaid expenses | 57.5 | 53.2 |
Value added tax collectible from customers | 27.6 | 19.9 |
Other | 4.4 | 5.6 |
Total other current assets | 139.5 | 143.4 |
Property, Plant and Equipment, Gross | ||
Land | 9.8 | 10 |
Buildings | 138.3 | 162.8 |
Machinery and equipment | 761.7 | 886.2 |
Construction in progress | 15.5 | 12.1 |
Total gross property | 925.3 | 1,071.1 |
Accumulated depreciation | (725.9) | (865.5) |
Total property, plant and equipment, net | 199.4 | 205.6 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 36.8 | 29.7 |
Accrued trade allowances | 65.1 | 41.7 |
Accrued salaries, vacations and incentive compensation | 22.6 | 39.5 |
2013 restructuring reserve | 2.3 | 4 |
Spin restructuring reserve | 5.8 | 12.3 |
Income taxes payable | 42.4 | 43.7 |
Other | 102.3 | 120.3 |
Total other current liabilities | 277.3 | 291.2 |
Other Liabilities | ||
Pensions and other retirement benefits | 111.8 | 119.3 |
Deferred compensation | 55.3 | 58.5 |
Other non-current liabilities | 52.4 | 50.2 |
Total other liabilities | $ 219.5 | $ 228 |