Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Dec. 31, 2016 | Jan. 30, 2017 | |
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 | Large Accelerated Filer | |
Trading Symbol | ENR | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common stock outstanding, shares | 61,820,536 |
COMBINED STATEMENTS OF EARNINGS
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 559.6 | $ 506.8 |
Cost of products sold | 288 | 277 |
Gross profit | 271.6 | 229.8 |
Selling, general and administrative expense | 81.3 | 83.7 |
Advertising and sales promotion expense | 34.3 | 30.1 |
Research and development expense | 5.8 | 6.1 |
Amortization of intangible assets | 2.6 | 0 |
Restructuring | 0 | 3.1 |
Interest expense | 13.3 | 12.9 |
Other financing items, net | 1.5 | (0.6) |
Total before tax | 134.1 | 94.5 |
Income taxes provision | 38.5 | 29 |
Net earnings | $ 95.6 | $ 65.5 |
Basic earnings per common share (dollars per share) | $ 1.55 | $ 1.06 |
Diluted earnings per common share (dollars per share) | $ 1.52 | $ 1.05 |
Statement of Comprehensive Income: | ||
Net earnings | $ 95.6 | $ 65.5 |
Other comprehensive income/(loss), net of tax expense | ||
Foreign currency translation adjustments | (31.9) | (4.6) |
Pension activity, net of tax of $0.6 and $0.5, respectively | 3.8 | 2.1 |
Deferred gain on hedging activity, net of tax of $3.7 and $0.3, respectively | 8.2 | 0.7 |
Total comprehensive income | 75.7 | 63.7 |
Spin-off | ||
Restructuring | (1.3) | 0.9 |
2013 Restructuring | ||
Restructuring | $ 0 | $ 2.2 |
COMBINED STATEMENTS OF EARNING3
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) Parenthetical - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Pension/postretirement activity, tax | $ 0.6 | $ 0.5 |
Deferred (loss)/gain on hedging activity, tax | $ 3.7 | $ 0.3 |
COMBINED BALANCE SHEETS (Conden
COMBINED BALANCE SHEETS (Condensed) (Unaudited) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Current assets | ||
Cash and cash equivalents | $ 297.7 | $ 287.3 |
Trade receivables, less allowance for doubtful accounts of $4.9 and $6.9, respectively | 218.6 | 190.9 |
Inventories | 231.6 | 289.2 |
Other current assets | 126.9 | 122.1 |
Total current assets | 874.8 | 889.5 |
Property, plant and equipment, net | 188.9 | 201.7 |
Goodwill | 228.9 | 229.7 |
Other intangible assets, net | 231.1 | 234.7 |
Long term deferred tax asset | 40.8 | 63.7 |
Other assets | 118.2 | 112.2 |
Total assets | 1,682.7 | 1,731.5 |
Current liabilities | ||
Current maturities of long-term debt | 4 | 4 |
Note payable | 28.9 | 57.4 |
Accounts payable | 181.5 | 217 |
Other current liabilities | 243.9 | 254.7 |
Total current liabilities | 458.3 | 533.1 |
Long-term debt | 981.1 | 981.7 |
Other liabilities | 226 | 246.7 |
Total liabilities | 1,665.4 | 1,761.5 |
Shareholders' equity/(deficit) | ||
Common stock | 0.6 | 0.6 |
Additional paid-in capital | 182.6 | 194.6 |
Retained earnings | 145.7 | 70.9 |
Treasury stock | (25.6) | (30) |
Accumulated other comprehensive loss | (286) | (266.1) |
Total shareholders' equity/(deficit) | 17.3 | (30) |
Total liabilities and shareholders' equity/(deficit) | $ 1,682.7 | $ 1,731.5 |
COMBINED BALANCE SHEETS (Conde5
COMBINED BALANCE SHEETS (Condensed) (Unaudited) Parenthetical - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4.9 | $ 6.9 |
COMBINED STATEMENTS OF CASH FLO
COMBINED STATEMENTS OF CASH FLOWS (Condensed) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 95.6 | $ 65.5 |
Non-cash restructuring costs | 0 | 3.1 |
Depreciation and amortization | 10.6 | 7.8 |
Deferred income taxes | 4.8 | 3.4 |
Share-based payments | 5.2 | 4.6 |
Non-cash items included in income, net | (0.4) | (1.5) |
Other, net | (2.1) | (4.7) |
Changes in current assets and liabilities used in operations | (21.9) | 17.3 |
Net cash from operating activities | 91.8 | 95.5 |
Cash Flow from Investing Activities | ||
Capital expenditures | (4.9) | (3.3) |
Proceeds from sale of assets | 4.3 | 0 |
Net cash used by investing activities | (0.6) | (3.3) |
Cash Flow from Financing Activities | ||
Payments on debt with maturities greater than 90 days | (1) | 0 |
Net (decrease)/increase in debt with original maturities of 90 days or less | (27.9) | 5.4 |
Dividends paid | (18.1) | (15.4) |
Common stock purchased | (8.1) | (21.8) |
Taxes paid for withheld share-based payments | (8.1) | (3.9) |
Excess tax benefits from share-based payments | 0 | 0.8 |
Net cash used by financing activities | (63.2) | (34.9) |
Effect of exchange rate changes on cash | (17.6) | (3) |
Net increase in cash and cash equivalents | 10.4 | 54.3 |
Cash and cash equivalents, beginning of period | 287.3 | 502.1 |
Cash and cash equivalents, end of period | $ 297.7 | $ 556.4 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2016 | |
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 constructions. On July 1, 2016, Energizer expanded its portfolio of brands with the acquisition of HandStands Holding Corporation (the auto care acquisition), a leading designer and marketer of automotive fragrance and appearance products. With the auto care acquisition, the Company's brands now include Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL® and Eagle One®. 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. 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, consisting of normal recurring 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, 2016 included in the Annual Report on Form 10-K dated November 15, 2016. The auto care acquisition occurred during the fourth fiscal quarter of 2016 and the purchase price allocation was finalized as of September 30, 2016. The quarter ended December 31, 2015 does not include any activity from the auto care acquisition. The quarter ended December 31, 2016 includes revenues of $27.8 and earnings before income taxes of $4.2 related to the auto care acquisition. Recently Adopted Accounting Pronouncements - During the quarter ended December 31, 2016, the Company early adopted FASB ASU 2016-09, Compensation - Stock Compensation . ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences and classifications on the statement of cash flows. The provisions in ASU 2016-09 resulted in the following impacts upon adoption: Excess tax benefits created upon the vesting of restricted stock equivalent awards (RSEA) are now recorded as a discrete item within the income tax provision. These amounts were previously recorded as an adjustment to Additional paid in capital. During the quarter ended December 31, 2016, $1.4 was recorded as a discrete benefit in our income tax provision. This ASU provision was applied on a modified retrospective basis; however no cumulative effect adjustment was necessary to retained earnings. Excess tax benefits are now required to be classified with other income tax cash flows as a Cash Flow from Operating Activities. This was previously reported as a Cash Flow from Financing Activity. The $1.4 excess tax benefit for the current quarter is reflected within the Changes in current assets and liabilities used in operations line. The Company has applied this provision prospectively and the comparable prior year amount of $0.8 is reflected in Cash Flow from Financing Activities. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a Cash Flow from Financing Activities. For the quarter ended December 31, 2016, the Company has reported $8.1 for Taxes paid for withheld share payments as a Cash Flow used by Financing Activity. For the quarter ended December 31, 2015, this payment of $3.9 was included as a Cash Flow used by Operating Activity. The prior year balance has been retrospectively adjusted and this amount is now classified as a Cash Flow used by Financing Activities in the comparable period. No other provisions of this guidance had an impact on the financial statements. During the quarter ended December 31, 2016, the Company adopted ASU 2015-05, Intangibles Goodwill and other internal-use software (Subtopic 350-40), which provides criteria to review cloud computing arrangements to determine whether the arrangement contains a software license or is solely a service contract. If the arrangement is determined to be a software license, fees paid to the vendor would be within the scope of internal-use software guidance. If not, the fees paid would be expensed as incurred. The Company's historical accounting for cloud computing arrangements was consistent with this guidance and no change in accounting was required. During the quarter ended December 31, 2016, the Company adopted FASB ASU 2014-17, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern , which requires management to assess the Company's ability to continue as a going concern and to provide related disclosures in certain circumstances. Management's assessment discovered no uncertainties about the Company's ability to continue as a going concern. Recently Issued Accounting Pronouncements - On May 28, 2014, the FASB issued ASU2014-09, Revenue from Contracts with Customers which provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. On August 12, 2015, the FASB issued a one-year deferral of the effective date of the ASU. The update will now be effective for Energizer beginning October 1, 2018. Energizer is in the process of evaluating the impact the revised guidance will have on its financial statements. On October 24, 2016, the FASB issued ASU 2016-16, Intra-entity Transfers of Assets Other Than Inventory . This ASU requires tax expense to be recognized from the sale of intra-entity assets, other than inventory, when the transfer occurs, even though the effects of the transaction are eliminated in consolidation. Under the current guidance, the tax effects of transfers would have been deferred until the transferred asset was sold or otherwise recovered through use. Upon adoption, any deferred charge established upon the intra-company transfer would be recorded as a cumulative effect adjustment to retained earnings. The update will be effective for Energizer beginning October 1, 2018 with early adoption permitted in the first interim period of a fiscal year. The Company expects to adopt the new guidance during the first quarter of fiscal 2018. At September 30, 2016, the Company had a deferred charge of $51.2 included in Other assets. During the quarter ended December 31, 2016, new IRS regulations were passed that resulted in the recognition of an additional deferred charge. As of December 31, 2016, the total deferred charge increased to $63.0 . On January 5, 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business . This ASU creates a more practical definition and guidelines to determine whether a set of assets and activities is a business. This simplifies the decision making process of determining whether a purchase constitutes a business combination or an acquisition of assets. This ASU is effective for the Company for any new acquisitions starting October 1, 2018. On January 26, 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . This ASU eliminates the need to assign the fair value of a reporting unit to each of its assets and liabilities when quantifying an impairment charge. The impairment charge would now be determined based on the comparison of the fair value of a reporting unit to its carrying amount. The Company will adjust its goodwill testing procedures accordingly upon adoption. This ASU is effective for the Company starting with its annual goodwill impairment tests for fiscal year 2021. |
Spin Costs
Spin Costs | 3 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Spin Costs | Spin Costs 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). The Company incurred costs associated with the evaluation, planning and execution of the spin transaction. During the quarter ended December 31, 2016 , the Company sold a facility in North America that was previously closed as part of the spin and recorded a gain of $ 1.3 in spin restructuring. For the quarter ended December 31, 2015 , the Company incurred spin costs of $ 6.9 of which $ 6.0 was recorded in SG&A and $ 0.9 was recorded in spin restructuring. On a project to date basis, the total costs incurred and allocated to Energizer for the spin were $200.1 , inclusive of the costs of early debt retirement recorded in fiscal 2015. Energizer expects the remaining spin costs to be immaterial. The following table represents the spin restructuring accrual activity and ending accrual balance at December 31, 2016 and December 31, 2015 on the Consolidated Condensed Balance Sheet. At December 31, 2016, $2.2 of the liability was recorded in Other current liabilities and the remaining $2.1 was recorded in Other liabilities. At December 31, 2015, the balance was recorded in Other current liabilities. Utilized October 1, 2016 Charge to Income Other (a) Cash Non-Cash December 31, 2016 Severance and termination related costs $ 2.8 $ — $ — $ (1.8 ) $ — $ 1.0 Contract termination costs 3.6 — — (0.3 ) — 3.3 Net gain on asset sales — (1.3 ) — 1.3 — — Total $ 6.4 $ (1.3 ) $ — $ (0.8 ) $ — $ 4.3 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 (a) Includes the impact of currency translation. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The three month effective tax rate was 28.7% as compared to 30.7% for the prior year comparative period. The decrease in the current year rate is primarily due to a $1.4 discrete tax benefit recognized in our income tax provision as a result of the new stock compensation guidance adopted in the current quarter. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Dec. 31, 2016 | |
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 $5.2 for the quarter ended December 31, 2016 and $4.6 for the quarter ended December 31, 2015 and were 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 $2.0 for the quarter ended December 31, 2016 and $1.7 for the quarter ended December 31, 2015 . Restricted Stock Equivalents (RSE)—(in whole dollars and total shares) In November 2016, the Company granted RSE awards to a group of key employees which included approximately 92,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 73,000 shares that vest on the third anniversary of the date of the grant. In addition, the Company granted approximately 249,000 performance shares to a group of key employees and key executives that will vest subject to meeting targeted amounts for both cumulative adjusted earnings per share and cumulative free cash flow as a percentage of sales over the three year performance period. These performance measures are equally weighted in determining the final share award. The closing stock price on the date of the grant used to determine the award fair value was $43.84 . 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 a group of key employees and key executives that will vest subject to meeting targeted amounts for both cumulative adjusted earnings per share and cumulative free cash flow as a percentage of sales over the three year performance period. These performance measures are equally weighted in determining the final share award. 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, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share is based on the average number of common shares outstanding during the period. Diluted earnings per share is based on the average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of restricted stock equivalents and performance share awards. December 31, 2016 and 2015 , respectively. (in millions, except per share data) For the Quarter 2016 2015 Net earnings $ 95.6 $ 65.5 Basic average shares outstanding 61.8 62.0 Effect of dilutive restricted stock equivalents 0.6 0.3 Effect of dilutive performance shares 0.5 — Diluted average shares outstanding 62.9 62.3 Basic earnings per common share $ 1.55 $ 1.06 Diluted earnings per common share $ 1.52 $ 1.05 For the quarter ended December 31, 2016 , all restricted stock equivalents and performance shares were dilutive and included in the diluted net earnings per share calculations. 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. |
Segments
Segments | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segments | Segments As of October 1, 2016, the Company changed its internal reporting structure and is managing operations via three major geographic reportable segments: Americas (North America and Latin America), Europe, Middle East and Africa (EMEA), and Asia Pacific. Prior to this year, the Americas' segment was reported as two separate geographic reportable segments. The Company changed its reporting structure to better reflect how the Company is managing the operations as well as what the chief operating decision maker is reviewing to make organizational decisions about resource allocation. The prior period segment information has been restated to reflect the current reportable segment structure of the Company. Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with most restructuring initiatives, acquisition and integration activities, amortization costs, 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 acquisition, integration, 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, but are not limited to, IT, procurement and finance. 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. Segment sales and profitability for the quarter ended December 31, 2016 and 2015 , respectively, are presented below: For the Quarter Ended December 31, 2016 2015 Net Sales Americas $ 365.1 $ 313.7 EMEA 114.7 117.9 Asia Pacific 79.8 75.2 Total net sales $ 559.6 $ 506.8 Segment Profit Americas $ 123.1 $ 98.7 EMEA 26.1 23.0 Asia Pacific 24.7 19.5 Total segment profit 173.9 141.2 General corporate and other expenses (1) (14.1 ) (15.9 ) Global marketing expense (1) (3.0 ) (2.2 ) Research and development expense (5.8 ) (6.1 ) Amortization of intangible assets (2.6 ) — Restructuring (2) — (3.3 ) Acquisition and integration costs (1) (0.8 ) — Spin costs (1) — (6.0 ) Spin restructuring 1.3 (0.9 ) Interest expense (13.3 ) (12.9 ) Other financing items, net (1.5 ) 0.6 Total earnings before income taxes $ 134.1 $ 94.5 (1) Included in SG&A in the unaudited Consolidated Condensed Statement of Earnings and Comprehensive Income. (2) Includes pre-tax costs of $1.1 for the quarter ended December 31, 2015 of inventory obsolescence recorded in COGS on 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 2016 2015 Batteries $ 503.1 $ 473.5 Other 56.5 33.3 Total net sales $ 559.6 $ 506.8 During the fourth quarter of fiscal 2016, we realigned our supplemental product information. We have reclassified the fiscal year 2016 net sales categories to be consistent with our current presentation. Corporate assets shown in the following table include all cash, financial instruments, deferred tax assets and deferred charges that are managed outside of operating segments. Total assets by segment are presented below: December 31, 2016 September 30, 2016 Americas $ 464.7 $ 475.2 EMEA 251.6 242.0 Asia Pacific 367.1 390.8 Total segment assets $ 1,083.4 $ 1,108.0 Corporate 139.3 159.1 Goodwill and other intangible assets 460.0 464.4 Total assets $ 1,682.7 $ 1,731.5 |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Dec. 31, 2016 | |
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, 2016 and December 31, 2016 : Americas EMEA Asia Pacific Total Balance at October 1, 2016 $ 213.7 $ 5.3 $ 10.7 $ 229.7 Cumulative translation adjustment (0.2 ) (0.2 ) (0.4 ) (0.8 ) Balance at December 31, 2016 $ 213.5 $ 5.1 $ 10.3 $ 228.9 Energizer had indefinite-lived intangible assets of $77.0 at December 31, 2016 and $78.0 at September 30, 2016. Changes in indefinite-lived intangible assets are due to changes in foreign currency translation. Total amortizable intangible assets at December 31, 2016 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 40.1 $ 1.3 $ 38.8 Customer relationships 84.4 2.8 81.6 Patents 34.5 1.2 33.3 Non-compete 0.5 0.1 0.4 Total intangible assets at December 31, 2016 $ 159.5 $ 5.4 $ 154.1 Total amortizable intangible assets at September 30, 2016 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 40.1 $ 0.7 $ 39.4 Customer relationships 84.4 1.5 82.9 Patents 34.5 0.6 33.9 Non-compete 0.5 — 0.5 Total intangible assets at September 30, 2016 $ 159.5 $ 2.8 $ 156.7 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: December 31, 2016 September 30, 2016 Senior Secured Term Loan B Facility, net of discount due 2022 $ 395.0 $ 396.0 5.50% Senior Notes due 2025 600.0 600.0 Total long-term debt, including current maturities 995.0 996.0 Less current portion (4.0 ) (4.0 ) Less unamortized debt discount and debt issuance fees (9.9 ) (10.3 ) Total long-term debt $ 981.1 $ 981.7 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 exchange for the contribution of certain assets by Edgewell to the Company in connection with the separation. On July 8, 2016, the Company entered into an amendment to the existing credit agreement to increase capacity on the Revolving Facility to $350.0 . This additional capacity is available to be utilized for working capital and other general corporate purposes. There were no other changes to the terms of the Revolving Facility. 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, 2016 , the Company had $25.0 of outstanding borrowings under the Revolving Facility and had $6.7 of outstanding letters of credit. Taking into account outstanding letters of credit, $318.3 remains available as of December 31, 2016 . The $400.0 Term Loan was issued at a $1.0 discount and bears interest at LIBOR subject to a 75 basis points floor, plus 250 basis points. 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, 2016 , our weighted average interest rate on variable rate debt, inclusive of the interest rate swap, was 3.69% . 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. The notes payable balance was $28.9 at December 31, 2016 and $57.4 at September 30, 2016. The December 31, 2016 balance was comprised of $25.0 outstanding borrowings on the Revolving Facility as well as $3.9 of borrowings in certain foreign affiliates. The September 30, 2016 balance was comprised of $52.5 outstanding borrowings on the Revolving facility as well as $4.9 borrowings in certain foreign affiliates. Debt Covenants The agreements governing the Company's debt contain certain customary representations and warranties, affirmative, negative and financial 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, 2016 , 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, 2016 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 $975.0 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, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | Pension Plans The Company has several defined benefit pension plans covering substantially all of its employees in the United States (U.S.) and certain employees in other countries. The plans provide retirement benefits based on various factors including years of service and in certain circumstances, earnings. The U.S. plan was frozen in fiscal year 2015. The Company’s net periodic pension benefit cost for these plans are as follows: For the Quarter Ended December 31, 2016 For the Quarter Ended December 31, 2015 Service Cost $ 0.4 $ 0.3 Interest Cost 5.4 6.7 Expected return on plan assets (10.6 ) (10.6 ) Amortization of unrecognized net losses 2.1 1.6 Settlement charge — 0.1 Net periodic benefit cost / (credit) $ (2.7 ) $ (1.9 ) 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 above. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2016 | |
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, 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 three months ended December 31, 2016 , the Company repurchased 182,029 shares for $8.1 , at an average price of $44.43 per share, under this authorization. Subsequent to the end of the first quarter of fiscal 2017 and through the date of this report, the Company has repurchased 10,000 shares of its common stock at an average price of $46.68 per share. On November 14, 2016, the Board of Directors declared a dividend for the first quarter of fiscal 2017 of $0.275 per share of common stock. The dividend was paid on December 15, 2016 to all shareholders of record as of November 30, 2016 and totaled $17.0 . The incremental dividend payments of $ 1.1 made in the first quarter of fiscal 2017 were related to restricted stock awards that vested during the quarter. Subsequent to the fiscal quarter end, on January 30, 2017, the Board of Directors declared a dividend for the second quarter of 2017 of $0.275 per share of common stock, payable on March 14, 2017, to all shareholders of record as of the close of business February 21, 2017. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2016 | |
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. 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 may enter 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, 2016 and September 30, 2016, 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. 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, 2016 and September 30, 2016, 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. However, the Company also has significant exposures in many other currencies which, in the aggregate, may have a material impact on the Company's operations. 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, 2016 , 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, 2016 and September 30, 2016, Energizer had an unrecognized pre-tax loss on this interest rate swap agreement of $2.5 and $9.7 , 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 foreign affiliates, which have the largest exposure 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, 2016 and September 30, 2016, Energizer had an unrealized pre-tax gain of $3.6 and loss of $1.1 , respectively, on these forward currency contracts accounted for as cash flow hedges 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, 2016 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 2018. There were 60 open foreign currency contracts at December 31, 2016 , with a total notional value of $93 . 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 are expected to be offset by corresponding exchange losses or gains on the underlying exposures; and as such are not subject to significant market risk. There were 9 open foreign currency derivative contracts which are not designated as cash flow hedges at December 31, 2016 , with a total notional value of approximately $79 . The following table provides the Company's estimated fair values as of December 31, 2016 and September 30, 2016, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the three months ended December 31, 2016 and 2015 , respectively: At December 31, 2016 For the Quarter Ended December 31, 2016 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value, Asset (Liability) (1) (2) Gain Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ 3.6 $ 5.2 $ 0.5 Interest rate contracts (2.5 ) 6.5 (0.7 ) Total $ 1.1 $ 11.7 $ (0.2 ) At September 30, 2016 For the Quarter Ended December 31, 2015 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Liability (1) (2) Gain Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ (1.1 ) $ 1.9 $ 2.8 Interest rate contracts (9.7 ) 1.2 (0.7 ) Total $ (10.8 ) $ 3.1 $ 2.1 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, 2016 and September 30, 2016 and the gains and losses on derivative instruments not classified as cash flow hedges for the quarter ended December 31, 2016 and 2015 , respectively: At December 31, 2016 For the Quarter Ended December 31, 2016 Estimated Fair Value Liability Loss Recognized in Income (1) Foreign currency contracts $ (2.4 ) $ (1.9 ) At September 30, 2016 For the Quarter Ended December 31, 2015 Estimated Fair Value Liability Loss Recognized in Income (1) Foreign currency contracts $ (1.0 ) $ (0.7 ) 1. Loss recognized in Income was recorded as foreign currency in Other financing, items, net. 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, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 4.5 $ (0.2 ) $ 4.3 $ 0.8 $ — $ 0.8 Offsetting of derivative liabilities At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (3.1 ) $ — $ (3.1 ) $ (3.2 ) $ 0.3 $ (2.9 ) Fair Value Hierarchy —Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. Under the fair value accounting guidance hierarchy, an entity is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The following table sets forth the Company's financial assets and liabilities, which are carried at fair value, as of December 31, 2016 and September 30, 2016 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 $ (47.0 ) $ (47.6 ) Exit lease liability (3.3 ) (3.7 ) Derivatives - Foreign Currency Contracts 1.2 (2.1 ) Derivatives - Interest Rate Swap (2.5 ) (9.7 ) Net Liabilities at estimated fair value $ (51.6 ) $ (63.1 ) 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, 2016 and at September 30, 2016. 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, 2016 , 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 the exit lease liability is determined based on the discounted cash flows of the remaining lease rentals reduced by estimated sublease rentals that could be reasonably obtained for the property. 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, 2016 and September 30, 2016, the fair market value of fixed rate long-term debt was $607.1 and $600.1 , 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, 2016 | |
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, 2016 $ (99.4 ) $ (159.9 ) $ (0.7 ) $ (6.1 ) $ (266.1 ) OCI before reclassifications (31.9 ) 2.4 4.0 4.2 (21.3 ) Reclassifications to earnings — 1.4 (0.4 ) 0.4 1.4 Balance at December 31, 2016 $ (131.3 ) $ (156.1 ) $ 2.9 $ (1.5 ) $ (286.0 ) The following table presents the reclassifications out of AOCI: For the Quarter Ended December 31, 2016 2015 Details of AOCI Components Amount Reclassified from AOCI (1) Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign exchange contracts $ 0.5 $ 2.8 Other financing items, net Interest rate swap (0.7 ) (0.7 ) Interest expense (0.2 ) 2.1 Total before tax 0.2 (0.4 ) Tax (expense)/benefit $ — $ 1.7 Net of tax Amortization of defined benefit pension items Actuarial loss (2.0 ) (1.6 ) (2) Settlement loss — (0.1 ) (2) (2.0 ) (1.7 ) Total before tax 0.6 0.5 Tax (expense)/benefit $ (1.4 ) $ (1.2 ) Net of tax Total reclassifications for the period $ (1.4 ) $ 0.5 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 9, Pension Plans, for further details). |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Suplemental Financial Statement Information | Supplemental Financial Statement Information December 31, 2016 September 30, 2016 Inventories Raw materials and supplies $ 39.2 $ 46.1 Work in process 62.3 72.0 Finished products 130.1 171.1 Total inventories $ 231.6 $ 289.2 Other Current Assets Miscellaneous receivables $ 25.5 $ 27.7 Prepaid expenses 63.1 70.0 Value added tax collectible from customers 32.7 22.9 Other 5.6 1.5 Total other current assets $ 126.9 $ 122.1 Property, Plant and Equipment Land $ 8.9 $ 9.8 Buildings 124.1 138.2 Machinery and equipment 698.8 771.9 Construction in progress 16.1 16.6 Total gross property 847.9 936.5 Accumulated depreciation (659.0 ) (734.8 ) Total property, plant and equipment, net $ 188.9 $ 201.7 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 16.9 $ 16.9 Accrued trade allowances 65.7 54.0 Accrued salaries, vacations and incentive compensation 28.4 59.3 Spin restructuring reserve 2.2 4.0 Income taxes payable 29.3 15.0 Other 101.4 105.5 Total other current liabilities $ 243.9 $ 254.7 Other Liabilities Pensions and other retirement benefits $ 130.7 $ 139.4 Deferred compensation 47.0 47.6 Other non-current liabilities 48.3 59.7 Total other liabilities $ 226.0 $ 246.7 |
Legal proceedings_contingencies
Legal proceedings/contingencies | 3 Months Ended |
Dec. 31, 2016 | |
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 B21
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
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. 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, consisting of normal recurring 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, 2016 included in the Annual Report on Form 10-K dated November 15, 2016. |
Recently adopted accounting pronouncements | Recently Adopted Accounting Pronouncements - During the quarter ended December 31, 2016, the Company early adopted FASB ASU 2016-09, Compensation - Stock Compensation . ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences and classifications on the statement of cash flows. The provisions in ASU 2016-09 resulted in the following impacts upon adoption: Excess tax benefits created upon the vesting of restricted stock equivalent awards (RSEA) are now recorded as a discrete item within the income tax provision. These amounts were previously recorded as an adjustment to Additional paid in capital. During the quarter ended December 31, 2016, $1.4 was recorded as a discrete benefit in our income tax provision. This ASU provision was applied on a modified retrospective basis; however no cumulative effect adjustment was necessary to retained earnings. Excess tax benefits are now required to be classified with other income tax cash flows as a Cash Flow from Operating Activities. This was previously reported as a Cash Flow from Financing Activity. The $1.4 excess tax benefit for the current quarter is reflected within the Changes in current assets and liabilities used in operations line. The Company has applied this provision prospectively and the comparable prior year amount of $0.8 is reflected in Cash Flow from Financing Activities. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a Cash Flow from Financing Activities. For the quarter ended December 31, 2016, the Company has reported $8.1 for Taxes paid for withheld share payments as a Cash Flow used by Financing Activity. For the quarter ended December 31, 2015, this payment of $3.9 was included as a Cash Flow used by Operating Activity. The prior year balance has been retrospectively adjusted and this amount is now classified as a Cash Flow used by Financing Activities in the comparable period. No other provisions of this guidance had an impact on the financial statements. During the quarter ended December 31, 2016, the Company adopted ASU 2015-05, Intangibles Goodwill and other internal-use software (Subtopic 350-40), which provides criteria to review cloud computing arrangements to determine whether the arrangement contains a software license or is solely a service contract. If the arrangement is determined to be a software license, fees paid to the vendor would be within the scope of internal-use software guidance. If not, the fees paid would be expensed as incurred. The Company's historical accounting for cloud computing arrangements was consistent with this guidance and no change in accounting was required. During the quarter ended December 31, 2016, the Company adopted FASB ASU 2014-17, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern , which requires management to assess the Company's ability to continue as a going concern and to provide related disclosures in certain circumstances. Management's assessment discovered no uncertainties about the Company's ability to continue as a going concern. Recently Issued Accounting Pronouncements - On May 28, 2014, the FASB issued ASU2014-09, Revenue from Contracts with Customers which provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. On August 12, 2015, the FASB issued a one-year deferral of the effective date of the ASU. The update will now be effective for Energizer beginning October 1, 2018. Energizer is in the process of evaluating the impact the revised guidance will have on its financial statements. On October 24, 2016, the FASB issued ASU 2016-16, Intra-entity Transfers of Assets Other Than Inventory . This ASU requires tax expense to be recognized from the sale of intra-entity assets, other than inventory, when the transfer occurs, even though the effects of the transaction are eliminated in consolidation. Under the current guidance, the tax effects of transfers would have been deferred until the transferred asset was sold or otherwise recovered through use. Upon adoption, any deferred charge established upon the intra-company transfer would be recorded as a cumulative effect adjustment to retained earnings. The update will be effective for Energizer beginning October 1, 2018 with early adoption permitted in the first interim period of a fiscal year. The Company expects to adopt the new guidance during the first quarter of fiscal 2018. At September 30, 2016, the Company had a deferred charge of $51.2 included in Other assets. During the quarter ended December 31, 2016, new IRS regulations were passed that resulted in the recognition of an additional deferred charge. As of December 31, 2016, the total deferred charge increased to $63.0 . On January 5, 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business . This ASU creates a more practical definition and guidelines to determine whether a set of assets and activities is a business. This simplifies the decision making process of determining whether a purchase constitutes a business combination or an acquisition of assets. This ASU is effective for the Company for any new acquisitions starting October 1, 2018. On January 26, 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . This ASU eliminates the need to assign the fair value of a reporting unit to each of its assets and liabilities when quantifying an impairment charge. The impairment charge would now be determined based on the comparison of the fair value of a reporting unit to its carrying amount. The Company will adjust its goodwill testing procedures accordingly upon adoption. This ASU is effective for the Company starting with its annual goodwill impairment tests for fiscal year 2021. |
Spin Costs (Tables)
Spin Costs (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Spin-off | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | The following table represents the spin restructuring accrual activity and ending accrual balance at December 31, 2016 and December 31, 2015 on the Consolidated Condensed Balance Sheet. At December 31, 2016, $2.2 of the liability was recorded in Other current liabilities and the remaining $2.1 was recorded in Other liabilities. At December 31, 2015, the balance was recorded in Other current liabilities. Utilized October 1, 2016 Charge to Income Other (a) Cash Non-Cash December 31, 2016 Severance and termination related costs $ 2.8 $ — $ — $ (1.8 ) $ — $ 1.0 Contract termination costs 3.6 — — (0.3 ) — 3.3 Net gain on asset sales — (1.3 ) — 1.3 — — Total $ 6.4 $ (1.3 ) $ — $ (0.8 ) $ — $ 4.3 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 (a) Includes the impact of currency translation. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share for the quarter ended December 31, 2016 and 2015 , respectively. (in millions, except per share data) For the Quarter 2016 2015 Net earnings $ 95.6 $ 65.5 Basic average shares outstanding 61.8 62.0 Effect of dilutive restricted stock equivalents 0.6 0.3 Effect of dilutive performance shares 0.5 — Diluted average shares outstanding 62.9 62.3 Basic earnings per common share $ 1.55 $ 1.06 Diluted earnings per common share $ 1.52 $ 1.05 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment sales and profitability for the quarter ended December 31, 2016 and 2015 , respectively, are presented below: For the Quarter Ended December 31, 2016 2015 Net Sales Americas $ 365.1 $ 313.7 EMEA 114.7 117.9 Asia Pacific 79.8 75.2 Total net sales $ 559.6 $ 506.8 Segment Profit Americas $ 123.1 $ 98.7 EMEA 26.1 23.0 Asia Pacific 24.7 19.5 Total segment profit 173.9 141.2 General corporate and other expenses (1) (14.1 ) (15.9 ) Global marketing expense (1) (3.0 ) (2.2 ) Research and development expense (5.8 ) (6.1 ) Amortization of intangible assets (2.6 ) — Restructuring (2) — (3.3 ) Acquisition and integration costs (1) (0.8 ) — Spin costs (1) — (6.0 ) Spin restructuring 1.3 (0.9 ) Interest expense (13.3 ) (12.9 ) Other financing items, net (1.5 ) 0.6 Total earnings before income taxes $ 134.1 $ 94.5 (1) Included in SG&A in the unaudited Consolidated Condensed Statement of Earnings and Comprehensive Income. (2) Includes pre-tax costs of $1.1 for the quarter ended December 31, 2015 of inventory obsolescence recorded in COGS on 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 2016 2015 Batteries $ 503.1 $ 473.5 Other 56.5 33.3 Total net sales $ 559.6 $ 506.8 During the fourth quarter of fiscal 2016, we realigned our supplemental product information. We have reclassified the fiscal year 2016 net sales categories to b |
Reconciliation of Assets from Segment to Consolidated | Total assets by segment are presented below: December 31, 2016 September 30, 2016 Americas $ 464.7 $ 475.2 EMEA 251.6 242.0 Asia Pacific 367.1 390.8 Total segment assets $ 1,083.4 $ 1,108.0 Corporate 139.3 159.1 Goodwill and other intangible assets 460.0 464.4 Total assets $ 1,682.7 $ 1,731.5 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment as of October 1, 2016 and December 31, 2016 : Americas EMEA Asia Pacific Total Balance at October 1, 2016 $ 213.7 $ 5.3 $ 10.7 $ 229.7 Cumulative translation adjustment (0.2 ) (0.2 ) (0.4 ) (0.8 ) Balance at December 31, 2016 $ 213.5 $ 5.1 $ 10.3 $ 228.9 |
Schedule of Finite-Lived Intangible Assets | Total amortizable intangible assets at December 31, 2016 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 40.1 $ 1.3 $ 38.8 Customer relationships 84.4 2.8 81.6 Patents 34.5 1.2 33.3 Non-compete 0.5 0.1 0.4 Total intangible assets at December 31, 2016 $ 159.5 $ 5.4 $ 154.1 Total amortizable intangible assets at September 30, 2016 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 40.1 $ 0.7 $ 39.4 Customer relationships 84.4 1.5 82.9 Patents 34.5 0.6 33.9 Non-compete 0.5 — 0.5 Total intangible assets at September 30, 2016 $ 159.5 $ 2.8 $ 156.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The detail of long-term debt was as follows: December 31, 2016 September 30, 2016 Senior Secured Term Loan B Facility, net of discount due 2022 $ 395.0 $ 396.0 5.50% Senior Notes due 2025 600.0 600.0 Total long-term debt, including current maturities 995.0 996.0 Less current portion (4.0 ) (4.0 ) Less unamortized debt discount and debt issuance fees (9.9 ) (10.3 ) Total long-term debt $ 981.1 $ 981.7 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
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, 2016 For the Quarter Ended December 31, 2015 Service Cost $ 0.4 $ 0.3 Interest Cost 5.4 6.7 Expected return on plan assets (10.6 ) (10.6 ) Amortization of unrecognized net losses 2.1 1.6 Settlement charge — 0.1 Net periodic benefit cost / (credit) $ (2.7 ) $ (1.9 ) |
Financial Instruments and Ris28
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
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, 2016 and September 30, 2016, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the three months ended December 31, 2016 and 2015 , respectively: At December 31, 2016 For the Quarter Ended December 31, 2016 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value, Asset (Liability) (1) (2) Gain Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ 3.6 $ 5.2 $ 0.5 Interest rate contracts (2.5 ) 6.5 (0.7 ) Total $ 1.1 $ 11.7 $ (0.2 ) At September 30, 2016 For the Quarter Ended December 31, 2015 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Liability (1) (2) Gain Recognized in OCI (3) Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) Foreign currency contracts $ (1.1 ) $ 1.9 $ 2.8 Interest rate contracts (9.7 ) 1.2 (0.7 ) Total $ (10.8 ) $ 3.1 $ 2.1 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, 2016 and September 30, 2016 and the gains and losses on derivative instruments not classified as cash flow hedges for the quarter ended December 31, 2016 and 2015 , respectively: At December 31, 2016 For the Quarter Ended December 31, 2016 Estimated Fair Value Liability Loss Recognized in Income (1) Foreign currency contracts $ (2.4 ) $ (1.9 ) At September 30, 2016 For the Quarter Ended December 31, 2015 Estimated Fair Value Liability Loss Recognized in Income (1) Foreign currency contracts $ (1.0 ) $ (0.7 ) 1. Loss recognized in Income was recorded as foreign currency in Other financing, items, net. |
Offsetting Liabilities | Offsetting of derivative assets At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 4.5 $ (0.2 ) $ 4.3 $ 0.8 $ — $ 0.8 Offsetting of derivative liabilities At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (3.1 ) $ — $ (3.1 ) $ (3.2 ) $ 0.3 $ (2.9 ) |
Offsetting Assets | Offsetting of derivative assets At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 4.5 $ (0.2 ) $ 4.3 $ 0.8 $ — $ 0.8 Offsetting of derivative liabilities At December 31, 2016 At September 30, 2016 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (3.1 ) $ — $ (3.1 ) $ (3.2 ) $ 0.3 $ (2.9 ) |
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, 2016 and September 30, 2016 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 $ (47.0 ) $ (47.6 ) Exit lease liability (3.3 ) (3.7 ) Derivatives - Foreign Currency Contracts 1.2 (2.1 ) Derivatives - Interest Rate Swap (2.5 ) (9.7 ) Net Liabilities at estimated fair value $ (51.6 ) $ (63.1 ) |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive (Loss)/Income (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
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, 2016 $ (99.4 ) $ (159.9 ) $ (0.7 ) $ (6.1 ) $ (266.1 ) OCI before reclassifications (31.9 ) 2.4 4.0 4.2 (21.3 ) Reclassifications to earnings — 1.4 (0.4 ) 0.4 1.4 Balance at December 31, 2016 $ (131.3 ) $ (156.1 ) $ 2.9 $ (1.5 ) $ (286.0 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of AOCI: For the Quarter Ended December 31, 2016 2015 Details of AOCI Components Amount Reclassified from AOCI (1) Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign exchange contracts $ 0.5 $ 2.8 Other financing items, net Interest rate swap (0.7 ) (0.7 ) Interest expense (0.2 ) 2.1 Total before tax 0.2 (0.4 ) Tax (expense)/benefit $ — $ 1.7 Net of tax Amortization of defined benefit pension items Actuarial loss (2.0 ) (1.6 ) (2) Settlement loss — (0.1 ) (2) (2.0 ) (1.7 ) Total before tax 0.6 0.5 Tax (expense)/benefit $ (1.4 ) $ (1.2 ) Net of tax Total reclassifications for the period $ (1.4 ) $ 0.5 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 9, Pension Plans, for further details). |
Supplemental Financial Statem30
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | December 31, 2016 September 30, 2016 Inventories Raw materials and supplies $ 39.2 $ 46.1 Work in process 62.3 72.0 Finished products 130.1 171.1 Total inventories $ 231.6 $ 289.2 Other Current Assets Miscellaneous receivables $ 25.5 $ 27.7 Prepaid expenses 63.1 70.0 Value added tax collectible from customers 32.7 22.9 Other 5.6 1.5 Total other current assets $ 126.9 $ 122.1 Property, Plant and Equipment Land $ 8.9 $ 9.8 Buildings 124.1 138.2 Machinery and equipment 698.8 771.9 Construction in progress 16.1 16.6 Total gross property 847.9 936.5 Accumulated depreciation (659.0 ) (734.8 ) Total property, plant and equipment, net $ 188.9 $ 201.7 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 16.9 $ 16.9 Accrued trade allowances 65.7 54.0 Accrued salaries, vacations and incentive compensation 28.4 59.3 Spin restructuring reserve 2.2 4.0 Income taxes payable 29.3 15.0 Other 101.4 105.5 Total other current liabilities $ 243.9 $ 254.7 Other Liabilities Pensions and other retirement benefits $ 130.7 $ 139.4 Deferred compensation 47.0 47.6 Other non-current liabilities 48.3 59.7 Total other liabilities $ 226.0 $ 246.7 |
Description of Business and B31
Description of Business and Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Class of Stock [Line Items] | |||
Discrete benefit | $ 1.4 | ||
Excess tax benefits from share-based payments | 0 | $ 0.8 | |
Taxes paid for withheld share-based payments | 8.1 | $ 3.9 | |
Deferred charge | 63 | $ 51.2 | |
Handstands | |||
Class of Stock [Line Items] | |||
Revenues | 27.8 | ||
Earnings before income taxes | $ (4.2) |
Spin Costs - Narrative (Details
Spin Costs - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Spin-off costs | $ 6.9 | |||
Costs incurred and allocated for the spin-off | $ 200.1 | |||
Spin restructuring reserve | $ 2.2 | $ 4 | ||
Spin-off | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Spin-off costs | (1.3) | 0.9 | ||
Liability recorded in other liabilities | $ 2.1 | |||
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Spin-off costs | $ 6 |
Spin Costs - Schedule of Restru
Spin Costs - Schedule of Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring | $ 0 | $ 3.1 |
Severance & Termination Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 2.8 | 12 |
Restructuring | 0 | 0.3 |
Other | 0 | (0.2) |
Cash | (1.8) | (6.5) |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 1 | 5.6 |
Contract termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 3.6 | |
Restructuring | 0 | |
Other | 0 | |
Cash | (0.3) | |
Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 3.3 | |
Net (gain)/loss on asset sales | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0 | |
Restructuring | (1.3) | |
Other | 0 | |
Cash | 1.3 | |
Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 0 | |
Other exit 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 | |
Spin-off | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 6.4 | 12.3 |
Restructuring | (1.3) | 0.9 |
Other | 0 | (0.2) |
Cash | (0.8) | (7.2) |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | $ 4.3 | $ 5.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | 28.70% | 30.70% |
Discrete benefit | $ 1.4 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Income tax benefit | $ 2 | $ 1.7 | ||
ParentCo | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Closing stock price (in dollars per share) | $ 43.84 | $ 37.34 | ||
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation cost | $ 5.2 | $ 4.6 | ||
Key Employees | Restricted Stock Equivalents | ParentCo | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
RSE awards granted, shares | 92 | 106 | ||
Vesting period, years | 4 years | 4 years | ||
Key Executives | Restricted Stock Equivalents | ParentCo | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
RSE awards granted, shares | 73 | 87 | ||
Key Employees and Key Executives | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
RSE awards granted, shares | 249 | 290 | ||
Vesting period, years | 3 years | 3 years |
Earnings per share - Schedule o
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, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 95.6 | $ 65.5 |
Basic average shares outstanding (shares) | 61.8 | 62 |
Effect of dilutive restricted stock equivalents (shares) | 0.6 | 0.3 |
Effect of dilutive performance shares (shares) | 0.5 | 0 |
Diluted average shares outstanding (shares) | 62.9 | 62.3 |
Basic earnings per common share (dollars per share) | $ 1.55 | $ 1.06 |
Diluted earnings per common share (dollars per share) | $ 1.52 | $ 1.05 |
Securities not included in calculation (shares) | 0 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 3 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 559.6 | $ 506.8 |
Segment Profit | 271.6 | 229.8 |
Research and development expense | (5.8) | (6.1) |
Amortization of intangible assets | (2.6) | 0 |
Spin costs (1) | (6.9) | |
Spin restructuring | 0 | (3.1) |
Other financing items, net | (1.5) | 0.6 |
Total before tax | 134.1 | 94.5 |
2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | 0 | (2.2) |
Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin costs (1) | 1.3 | (0.9) |
Spin restructuring | 1.3 | (0.9) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Profit | 173.9 | 141.2 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
General corporate and other expenses | (14.1) | (15.9) |
Global marketing expense (1) | (3) | (2.2) |
Research and development expense | (5.8) | (6.1) |
Amortization of intangible assets | (2.6) | 0 |
Spin costs (1) | 0 | (6) |
Interest and other financing items | (13.3) | (12.9) |
Segment Reconciling Items | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Restructuring (2) | 0 | (3.3) |
Acquisition and integration costs (1) | (0.8) | 0 |
Segment Reconciling Items | Spin-off | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | 1.3 | (0.9) |
Americas | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 365.1 | 313.7 |
Segment Profit | 123.1 | 98.7 |
EMEA | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 114.7 | 117.9 |
Segment Profit | 26.1 | 23 |
Asia Pacific | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 79.8 | 75.2 |
Segment Profit | $ 24.7 | 19.5 |
Cost of Products Sold | 2013 Restructuring | ||
Segment Reporting Information [Line Items] | ||
Spin restructuring | $ (1.1) |
Segments - Revenue from Externa
Segments - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 559.6 | $ 506.8 |
Batteries | ||
Revenue from External Customer [Line Items] | ||
Net sales | 503.1 | 473.5 |
Other | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 56.5 | $ 33.3 |
Segments, Reconciliation of Ass
Segments, Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill and other intangible assets | $ 460 | $ 464.4 |
Total assets | 1,682.7 | 1,731.5 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 1,083.4 | 1,108 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 139.3 | 159.1 |
Americas | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 464.7 | 475.2 |
EMEA | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 251.6 | 242 |
Asia Pacific | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | $ 367.1 | $ 390.8 |
Goodwill and intangible asset41
Goodwill and intangible assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 229.7 |
Cumulative translation adjustment | (0.8) |
Ending balance | 228.9 |
Americas | |
Goodwill [Roll Forward] | |
Beginning balance | 213.7 |
Cumulative translation adjustment | (0.2) |
Ending balance | 213.5 |
EMEA | |
Goodwill [Roll Forward] | |
Beginning balance | 5.3 |
Cumulative translation adjustment | (0.2) |
Ending balance | 5.1 |
Asia Pacific | |
Goodwill [Roll Forward] | |
Beginning balance | 10.7 |
Cumulative translation adjustment | (0.4) |
Ending balance | $ 10.3 |
Goodwill and intangible asset42
Goodwill and intangible assets - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible assets | $ 77 | $ 78 |
Goodwill and intangible asset43
Goodwill and intangible assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 159.5 | $ 159.5 |
Accumulated Amortization | 5.4 | 2.8 |
Net Carrying Amount | 154.1 | 156.7 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 40.1 | 40.1 |
Accumulated Amortization | 1.3 | 0.7 |
Net Carrying Amount | 38.8 | 39.4 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 84.4 | 84.4 |
Accumulated Amortization | 2.8 | 1.5 |
Net Carrying Amount | 81.6 | 82.9 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34.5 | 34.5 |
Accumulated Amortization | 1.2 | 0.6 |
Net Carrying Amount | 33.3 | 33.9 |
Non-Compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0.5 | 0.5 |
Accumulated Amortization | 0.1 | 0 |
Net Carrying Amount | $ 0.4 | $ 0.5 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | $ 995 | $ 996 |
Less current portion | (4) | (4) |
Less unamortized debt discount and debt issuance fees | (9.9) | (10.3) |
Total long-term debt | 981.1 | 981.7 |
Secured Debt | Senior Secured Term Loan B Facility, Due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt including current maturities | 395 | 396 |
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, 2016 | Sep. 30, 2016 | Jul. 08, 2016 | Aug. 31, 2015 |
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 3.69% | ||||
Note payable | $ 28,900,000 | $ 57,400,000 | |||
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 | $ 200,000,000 | |||
Fixed interest rate | 2.22% | 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 | $ 350,000,000 | |||
Outstanding letters of credit | $ 25,000,000 | 52,500,000 | |||
Amount available remaining | $ 318,300,000 | ||||
Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
LIBOR | LIBOR | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | $ 6,700,000 | ||||
Non-US | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | $ 3,900,000 | $ 4,900,000 |
Debt, Long-term Debt Maturities
Debt, Long-term Debt Maturities (Details) | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
Maturities of long term debt in one year | $ 4,000,000 |
Maturities of long term debt in two years | 4,000,000 |
Maturities of long term debt in three years | 4,000,000 |
Maturities of long term debt in four years | 4,000,000 |
Maturities of long term debt in five years | 4,000,000 |
Maturities of long term debt thereafter | $ 975 |
Pension Plans - Schedule of Net
Pension Plans - Schedule of Net Benefit Costs (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 0.4 | $ 0.3 |
Interest Cost | 5.4 | 6.7 |
Expected return on plan assets | (10.6) | (10.6) |
Amortization of unrecognized net losses | 2.1 | 1.6 |
Settlement charge | 0 | 0.1 |
Net periodic benefit cost / (credit) | $ (2.7) | $ (1.9) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 30, 2017 | Dec. 15, 2016 | Nov. 14, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 30, 2017 | Jul. 01, 2015 |
Class of Stock [Line Items] | |||||||
Number of shares repurchased (shares) | 182,029 | ||||||
Payments to repurchase stock | $ 8.1 | $ 21.8 | |||||
Average purchase price (in dollars per share) | $ 44.43 | ||||||
Dividend declared (in dollars per share) | $ 0.275 | ||||||
Dividends paid | $ 17 | $ 18.1 | $ 15.4 | ||||
Incremental dividend payment | $ 1.1 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Number of shares authorized to be acquired (shares) | 7,500,000 | ||||||
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Number of shares repurchased (shares) | 10,000 | ||||||
Average purchase price (in dollars per share) | $ 46.68 | ||||||
Dividend declared (in dollars per share) | $ 0.275 |
Financial Instruments and Ris49
Financial Instruments and Risk Management - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($)derivative_instrument | Sep. 30, 2016USD ($) | Aug. 31, 2015USD ($) | Jun. 01, 2015USD ($) | |
Derivative [Line Items] | ||||
Unrecognized pre-tax loss | $ 2.5 | $ 9.7 | ||
Unrealized pre-tax gain | 3,600,000 | (1,100,000) | ||
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 | |||
Estimate of Fair Value | ||||
Derivative [Line Items] | ||||
Fair market value of fixed rate long-term debt | 0 | $ 0 | ||
Reported Value Measurement | ||||
Derivative [Line Items] | ||||
Fair market value of fixed rate long-term debt | 600,000,000 | |||
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 | $ 200,000,000 | ||
Fixed interest rate | 2.22% | 2.22% | ||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Number of open contracts | derivative_instrument | 60,000,000 | |||
Notional value | $ 92,500,000 | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Number of open contracts | derivative_instrument | 9,000,000 | |||
Notional value | $ 78,900,000 |
Financial Instruments and Ris50
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, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | $ 1.1 | $ (10.8) | |
Gain Recognized in OCI (3) | 11.7 | $ 3.1 | |
Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) | (0.2) | 2.1 | |
Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | 3.6 | (1.1) | |
Gain Recognized in OCI (3) | 5.2 | 1.9 | |
Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) | 0.5 | 2.8 | |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | (2.5) | $ (9.7) | |
Gain Recognized in OCI (3) | 6.5 | 1.2 | |
Gain/(Loss) Reclassified From OCI into Income(Effective Portion) (4) (5) | $ (0.7) | $ (0.7) |
Financial Instruments and Ris51
Financial Instruments and Risk Management - Derivative Instruments, Gain (Loss) (Details) - Not Designated as Hedging Instrument - Foreign currency contracts - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Liability | $ (2.4) | $ (1) | |
Loss Recognized in Income (1) | $ (1.9) | $ (0.7) |
Financial Instruments and Ris52
Financial Instruments and Risk Management - Offsetting Assets and Liabilities (Details) - Foreign currency contracts - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | $ 4.5 | $ 0.8 |
Gross amounts offset in the Balance Sheet | (0.2) | 0 |
Net amounts of assets presented in the Balance Sheet | 4.3 | 0.8 |
Gross amounts of recognized liabilities | (3.1) | (3.2) |
Gross amounts offset in the Balance Sheet | 0 | (0.3) |
Net amounts of liabilities presented in the Balance Sheet | $ (3.1) | $ (2.9) |
Financial Instruments and Ris53
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, 2016 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation | $ (47) | $ (47.6) |
Exit lease liability | (3.3) | (3.7) |
Derivatives - Foreign Currency Contracts | 1.2 | (2.1) |
Net Liabilities at estimated fair value | (51.6) | (63.1) |
Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency Contracts | $ (2.5) | $ (9.7) |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2016 | $ (266.1) |
OCI before reclassifications | (21.3) |
Reclassifications to earnings | 1.4 |
Balance at December 31, 2016 | (286) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2016 | (99.4) |
OCI before reclassifications | (31.9) |
Reclassifications to earnings | 0 |
Balance at December 31, 2016 | (131.3) |
Pension Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2016 | (159.9) |
OCI before reclassifications | 2.4 |
Reclassifications to earnings | 1.4 |
Balance at December 31, 2016 | (156.1) |
Hedging Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2016 | (0.7) |
OCI before reclassifications | 4 |
Reclassifications to earnings | (0.4) |
Balance at December 31, 2016 | 2.9 |
Interest Rate Swap | Hedging Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2016 | (6.1) |
OCI before reclassifications | 4.2 |
Reclassifications to earnings | (0.4) |
Balance at December 31, 2016 | $ (1.5) |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other financing items, net | $ (1.5) | $ 0.6 |
Interest expense | (13.3) | (12.9) |
Total before tax | 134.1 | 94.5 |
Tax (expense)/benefit | (38.5) | (29) |
Net earnings | 95.6 | 65.5 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | (1.4) | 0.5 |
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 | 0.5 | 2.8 |
Interest expense | (0.7) | (0.7) |
Total before tax | (0.2) | 2.1 |
Tax (expense)/benefit | 0.2 | (0.4) |
Net earnings | 0 | 1.7 |
Amortization of defined benefit pension items | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial loss | (2) | (1.6) |
Settlement loss | 0 | (0.1) |
Total before tax | (2) | (1.7) |
Tax (expense)/benefit | 0.6 | 0.5 |
Net earnings | $ (1.4) | $ (1.2) |
Supplemental Financial Statem56
Supplemental Financial Statement Information, Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Inventories | ||
Raw materials and supplies | $ 39.2 | $ 46.1 |
Work in process | 62.3 | 72 |
Finished products | 130.1 | 171.1 |
Total inventories | 231.6 | 289.2 |
Other Current Assets | ||
Miscellaneous receivables | 25.5 | 27.7 |
Prepaid expenses | 63.1 | 70 |
Value added tax collectible from customers | 32.7 | 22.9 |
Other | 5.6 | 1.5 |
Total other current assets | 126.9 | 122.1 |
Property, Plant and Equipment, Gross | ||
Land | 8.9 | 9.8 |
Buildings | 124.1 | 138.2 |
Machinery and equipment | 698.8 | 771.9 |
Construction in progress | 16.1 | 16.6 |
Total gross property | 847.9 | 936.5 |
Accumulated depreciation | (659) | (734.8) |
Total property, plant and equipment, net | 188.9 | 201.7 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 16.9 | 16.9 |
Accrued trade allowances | 65.7 | 54 |
Accrued salaries, vacations and incentive compensation | 28.4 | 59.3 |
2013 restructuring reserve | 0 | 0 |
Spin restructuring reserve | 2.2 | 4 |
Income taxes payable | 29.3 | 15 |
Other | 101.4 | 105.5 |
Total other current liabilities | 243.9 | 254.7 |
Other Liabilities | ||
Pensions and other retirement benefits | 130.7 | 139.4 |
Deferred compensation | 47 | 47.6 |
Other non-current liabilities | 48.3 | 59.7 |
Total other liabilities | $ 226 | $ 246.7 |