Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Dec. 31, 2018 | Feb. 01, 2019 | |
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, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common stock outstanding, shares | 69,874,672 |
COMBINED STATEMENTS OF EARNINGS
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 571.9 | $ 573.3 |
Cost of products sold | 296.4 | 295 |
Gross profit | 275.5 | 278.3 |
Selling, general and administrative expense | 104.6 | 99.2 |
Advertising and sales promotion expense | 40.9 | 37.3 |
Research and development expense | 5.5 | 5.3 |
Amortization of intangible assets | 3.2 | 2.8 |
Interest expense | 48.2 | 13.4 |
Total Other items, net | (16.9) | 1.3 |
Earnings before income taxes | 90 | 119 |
Income tax provision | 19.2 | 58.6 |
Net earnings | $ 70.8 | $ 60.4 |
Basic earnings per common share (dollars per share) | $ 1.19 | $ 1 |
Diluted earnings per common share (dollars per share) | $ 1.16 | $ 0.98 |
Weighted average shares of common stock - Basic (shares) | 59.7 | 60.2 |
Weighted average shares of common stock - Diluted (shares) | 61 | 61.5 |
Dividends per common share (in dollars per share) | $ 0.30 | $ 0.29 |
Statements of Comprehensive Income: | ||
Net earnings | $ 70.8 | $ 60.4 |
Other comprehensive (loss)/income, net of tax (benefit)/expense | ||
Foreign currency translation adjustments | (3.7) | 7.4 |
Pension activity, net of tax of $0.3 and $0.5, respectively. | 1.1 | 1.2 |
Deferred (loss)/gain on hedging activity, net of tax of ($1.0) and $1.1, respectively. | (3.3) | 2.5 |
Total comprehensive income | $ 64.9 | $ 71.5 |
COMBINED STATEMENTS OF EARNIN_2
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) Parenthetical - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Pension/postretirement activity, tax | $ 0.3 | $ 0.5 |
Deferred (loss)/gain on hedging activity, tax | $ (1) | $ 1.1 |
COMBINED BALANCE SHEETS (Conden
COMBINED BALANCE SHEETS (Condensed) (Unaudited) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 607.3 | $ 522.1 |
Trade receivables, less allowance for doubtful accounts of $3.9 and $4.0, respectively | 216 | 230.4 |
Inventories | 290.2 | 323.1 |
Other current assets | 95.3 | 95.5 |
Total current assets | 1,208.8 | 1,171.1 |
Restricted cash | 2,456.5 | 1,246.2 |
Property, plant and equipment, net | 162.6 | 166.7 |
Goodwill | 244 | 244.2 |
Other intangible assets, net | 229.3 | 232.7 |
Deferred tax asset | 35.1 | 36.9 |
Other assets | 79.8 | 81 |
Total assets | 4,416.1 | 3,178.8 |
Current liabilities | ||
Current maturities of long-term debt | 64 | 4 |
Notes payable | 275.1 | 247.3 |
Accounts payable | 231.6 | 228.9 |
Other current liabilities | 261.3 | 271 |
Total current liabilities | 832 | 751.2 |
Long-term debt | 975.4 | 976.1 |
Long-term debt held in escrow | 2,346.2 | 1,230.7 |
Other liabilities | 192.1 | 196.3 |
Total liabilities | 4,345.7 | 3,154.3 |
Shareholders' equity | ||
Common stock | 0.6 | 0.6 |
Additional paid-in capital | 208.2 | 217.8 |
Retained earnings | 226.1 | 177.3 |
Treasury stock | (116.8) | (129.4) |
Accumulated other comprehensive loss | (247.7) | (241.8) |
Total shareholders' equity | 70.4 | 24.5 |
Total liabilities and shareholders' equity | $ 4,416.1 | $ 3,178.8 |
COMBINED BALANCE SHEETS (Cond_2
COMBINED BALANCE SHEETS (Condensed) (Unaudited) Parenthetical - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3.9 | $ 4 |
COMBINED STATEMENTS OF CASH FLO
COMBINED STATEMENTS OF CASH FLOWS (Condensed) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 70.8 | $ 60.4 |
Depreciation and amortization | 11.6 | 12 |
Deferred income taxes | 2.3 | 12.2 |
Share-based compensation expense | 6.5 | 6.7 |
Mandatory transition tax | 1.5 | 30 |
Non-cash items included in income, net | (9.1) | 3 |
Other, net | (2.6) | 0.1 |
Changes in current assets and liabilities used in operations | 37.9 | 16.6 |
Net cash from operating activities | 118.9 | 141 |
Cash Flow from Investing Activities | ||
Capital expenditures | (4.8) | (5.5) |
Proceeds from sale of assets | 0.1 | 0 |
Net cash used by investing activities | (4.7) | (5.5) |
Cash Flow from Financing Activities | ||
Cash proceeds from issuance of debt with original maturities greater than 90 days | 1,200 | 0 |
Payments on debt with maturities greater than 90 days | (1) | (1) |
Net increase in debt with original maturities of 90 days or less | 28 | 6.5 |
Debt issuance costs | (16.5) | 0 |
Dividends paid | (19.8) | (17.6) |
Common stock purchased | 0 | (50) |
Taxes paid for withheld share-based payments | (7.1) | (1.8) |
Net cash from/(used by) financing activities | 1,183.6 | (63.9) |
Effect of exchange rate changes on cash | (2.3) | 4.7 |
Net increase in cash, cash equivalents, and restricted cash | 1,295.5 | 76.3 |
Cash, cash equivalents, and restricted cash, beginning of period | 1,768.3 | 378 |
Cash, cash equivalents, and restricted cash, end of period | $ 3,063.8 | $ 454.3 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (59.2) | $ (59.2) | ||||
Dividends per common share (in dollars per share) | $ 0.29 | |||||
Beginning Balance at Sep. 30, 2017 | $ 85.1 | $ 0.6 | $ 196.7 | 198.7 | $ (72.1) | $ (238.8) |
Beginning Balance (in shares) at Sep. 30, 2017 | 60,709,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 60.4 | 60.4 | ||||
Share based payments | 6.7 | 6.7 | ||||
Common stock purchased | (50) | (50) | ||||
Common stock purchased (in shares) | (1,126,000) | |||||
Activity under stock plans | (1.8) | (4.8) | (0.8) | 3.8 | ||
Activity under stock plans (in shares) | 91,000 | |||||
Dividends to shareholders ($0.30 per share) | (18.7) | (18.7) | ||||
Other comprehensive loss | 11.1 | 11.1 | ||||
Ending Balance at Dec. 31, 2017 | $ 33.6 | $ 0.6 | 198.6 | 180.4 | (118.3) | (227.7) |
Ending Balance (in shares) at Dec. 31, 2017 | 59,674,000 | |||||
Dividends per common share (in dollars per share) | $ 0.30 | |||||
Beginning Balance at Sep. 30, 2018 | $ 24.5 | $ 0.6 | 217.8 | 177.3 | (129.4) | (241.8) |
Beginning Balance (in shares) at Sep. 30, 2018 | 59,608,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 70.8 | 70.8 | ||||
Share based payments | $ 6.5 | 6.5 | ||||
Common stock purchased (in shares) | (1,126,379) | |||||
Activity under stock plans | $ (7.1) | (16.1) | (3.6) | 12.6 | ||
Activity under stock plans (in shares) | 290,000 | |||||
Dividends to shareholders ($0.30 per share) | (18.4) | (18.4) | ||||
Other comprehensive loss | (5.9) | (5.9) | ||||
Ending Balance at Dec. 31, 2018 | $ 70.4 | $ 0.6 | $ 208.2 | $ 226.1 | $ (116.8) | $ (247.7) |
Ending Balance (in shares) at Dec. 31, 2018 | 59,898,000 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business - Energizer Holdings, Inc. and 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 an acquisition of a leading designer and marketer of automotive fragrance and appearance products (2016 auto care acquisition). The Company's brands now include Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL® and Eagle One®. On July 2, 2018, Energizer acquired the Nu Finish® and Scratch Doctor® brands to add to its automotive appearance offerings (Nu Finish acquisition). 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 statement of our operations, financial position and cash flows 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, 2018 included in the Annual Report on Form 10-K dated November 16, 2018. Recently Adopted Accounting Pronouncements - Effective October 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers , on a modified retrospective basis for all contracts as of the effective date. This guidance provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. There was no material impact to retained earnings as a result of the adoption. See Note 2, Revenue Recognition, for additional discussion. Effective October 1, 2018, the Company early adopted ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . This update requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement similar to internal-use software guidance. The Company will defer and recognize allowable implementation costs for future projects. Capitalized implementation costs were not material for the quarter ended December 31, 2018. Effective October 1, 2018, the Company adopted ASU 2016-15, Statement of Cash Flows- Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statements of cash flows. The Company has determined that this new guidance has no immediate impact on the Company's consolidated financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements - On February 25, 2016, the FASB issued ASU 2016-02, Leases . This update aligns the measurement of leases under GAAP more closely with International Financial Reporting Standards by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update will be effective for Energizer beginning October 1, 2019 with early adoption permitted. Energizer is in the process of evaluating the impact the guidance will have on its financial statements. On August 28, 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities . This update intends to simplify hedge accounting and decrease complexity for both the preparation and understanding of hedging disclosures in the financial statements. This update is effective for the Company beginning October 1, 2019 with early adoption permitted. The Company is currently assessing the impact the revised guidance will have on its accounting practices and financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Effective for the Company October 1, 2018, ASU 2014-09, Revenue from Contracts with Customers, introduced a five-step model for revenue recognition. In this new model, each contract should be reviewed and analyzed to determine its performance obligations, items affecting the transaction price, how to allocate the transaction price to the performance obligations and when to recognize revenue. The Company performed a review of its contracts and accounting policies considering the new revenue model. Through this review the Company determined that there was no material impact to our financial statements. The Company's revenue recognition policy, controls and processes have been updated to align with the new revenue recognition model. Nature of Our Business The Company, through its operating subsidiaries, is one of the world’s largest manufacturers, marketers and distributors of household batteries, specialty batteries and lighting products, and a leading designer and marketer of automotive fragrance and appearance products. We distribute our products to consumers through numerous retail locations worldwide, including mass merchandisers and warehouse clubs, food, drug and convenience stores, electronics specialty stores and department stores, hardware and automotive centers, e-commerce and military stores. We sell to our customers through a combination of a direct sales force and exclusive and non-exclusive third-party distributors and wholesalers. Our Americas segment sales are comprised of North America and Latin America market groups. North America sales are generally through large retailers with nationally or regionally recognized brands. Latin America sales are generally through distributors or sales by wholesalers or small retailers who may not have national or regional presence. Our International segment sales are comprised of modern trade, developing and distributor market groups. Modern trade, which is most prevalent in Western Europe and more developed economies throughout the world, generally refers to sales through large retailers with nationally or regionally recognized brands. Developing markets generally include sales by wholesalers or small retailers who may not have a national or regional presence. Distributors are utilized in other markets where the Company does not have a direct sales force. Each market's determination is based on the predominant customer type or sales strategy utilized in the market. Supplemental product and market information is presented below for revenues from external customers: For the Quarter Ended December 31, Net Sales 2018 2017 Batteries $ 524.3 $ 524.5 Other 47.6 48.8 Total Net Sales $ 571.9 $ 573.3 For the Quarter Ended December 31, 2018 2017 Net Sales North America $ 341.0 $ 335.0 Latin America 32.5 38.1 Americas 373.5 373.1 Modern Markets 127.4 130.0 Developing Markets 49.7 46.6 Distributors Markets 21.3 23.6 International 198.4 200.2 Total Net Sales $ 571.9 $ 573.3 When Performance Obligations are Satisfied The Company’s revenue is primarily generated from the sale of finished product to customers. Sales predominantly contain a single delivery element, or performance obligation, and revenue is recognized at a single point in time when title, ownership and risk of loss pass to the customer. This typically occurs when finished goods are delivered to the customer or when finished goods are picked up by a customer or customer’s carrier, depending on contract terms. Transaction Price In accordance with the new guidance, the Company measures revenue as the amount of consideration for which it expects to be entitled in exchange for transferring goods. Net sales reflect the transaction prices for contracts, which include units shipped at selling list prices reduced by variable consideration as determined by the terms of each individual contracts. Discounts are offered to customers for early payment and an estimate of the discount is recorded as a reduction of net sales in the same period as the sale. The Company offers a variety of programs, primarily to its retail customers, designed to promote sales of its products. Such programs require periodic payments and allowances based on estimated results of specific programs. These programs are considered variable consideration and are recorded as a reduction to net sales at the time revenue is recognized. Methodologies for determining these provisions are dependent on specific customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company accrues, at the time of sale, the estimated total payments and allowances associated with each transaction. Customers redeem trade promotions in the form of payments from the accrued trade allowances or invoice credits against trade receivables. Additionally, the Company offers programs directly to consumers to promote the sale of its products. The Company continually assesses the adequacy of accruals for customer and consumer promotional program costs not yet paid. To the extent total program payments differ from estimates, adjustments may be necessary. Historically, these adjustments have not been material. Our standard sales terms generally include payments within 30 to 60 days and are final with returns or exchanges not permitted unless a special exception is made. Reserves are established based on historical data and recorded in cases where the right of return does exist for a particular sale. The Company does not offer warranties on products. The Company’s contracts with customers do not have significant financing components or non-cash consideration and the Company does not have unbilled revenue or significant amounts of prepayments from customers. Revenue is recorded net of the taxes we collect on behalf of governmental authorities which are generally included in the price to the customer. Shipping and handling activities are accounted for as contract fulfillment costs and recorded in Cost of products sold. |
Acquisition
Acquisition | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions Battery Acquisition - Subsequent to the quarter, on January 2, 2019, the Company completed its acquisition of Spectrum Brands Holdings, Inc.'s (Spectrum) global battery, lighting, and portable power business (Acquired Battery Business) with a contractual purchase price of $2,000.0 , subject to certain purchase price adjustments (Battery Acquisition). The initial cash paid after contractual and estimated working capital adjustments was $1,956.2 . Energizer funded the Battery Acquisition through net proceeds from the issuance of senior notes, term loans and cash on hand. See Note 9, Debt, for additional discussion on the senior notes and term loans issued and held in escrow at December 31, 2018. Success fees of $13.0 were earned by financial advisers in January 2019 after closing the acquisition. This was in addition to the $2.0 paid in January 2018 for services rendered on the transaction. On December 11, 2018, the European Commission approved the previously announced acquisition of the Acquired Battery Business conditioned on the divestiture of the Varta® consumer battery, chargers, portable power and portable lighting business in the Europe, Middle East and Africa region (EMEA), including manufacturing and distribution facilities in Germany. Energizer will retain the rights to the Varta brand in Latin America and Asia Pacific, as well as Spectrum’s global Rayovac®-branded consumer and hearing aid batteries business. Energizer began the formal divestiture process immediately after close and expects to complete the divestiture during the first half of calendar year 2019. Auto Care Acquisition - On November 15, 2018, Energizer entered into a definitive acquisition agreement to acquire Spectrum’s global auto care business, including the Armor All®, STP®, and A/C PRO® brands (Acquired Auto Care Business) for a contractual purchase price of $1,250.0 , subject to certain purchase price adjustments (Auto Care Acquisition). The contractual purchase price was comprised of $937.5 in cash and $312.5 of newly-issued Energizer common stock to Spectrum. Subsequent to the quarter, on January 28, 2019, the Company completed its acquisition of the Acquired Auto Care Business. The initial cash paid after contractual and estimated working capital adjustments was $938.7 . Per the acquisition agreement, the equity consideration to Spectrum was determined by dividing the contractually committed common stock amount of $312.5 by the volume weighted average sales price (VWAP) per share of the Company's common stock for the 10 consecutive trading days immediately preceding November 15, 2018, subject to certain potential adjustments under such agreement. As a result, 5.3 million shares were issued to Spectrum on January 28, 2019. The equity consideration paid to Spectrum was fair valued at $240.5 based on the 5.3 million shares at the Energizer closing stock price of $45.55 on January 28, 2019. In addition, per the terms of the agreement, additional consideration of $36.8 was included in the above cash consideration paid to Spectrum based on the difference between the 10 day VWAP and the 20 day VWAP beginning with the 10th trading day immediately preceding November 15, 2018. The Company funded a portion of the cash consideration of the Auto Care Acquisition with the issuance of new senior notes and the issuance of common stock and Series A mandatory convertible preferred stock in January 2019. On January 17, 2019, the Company finalized pricing of a senior note offering due in 2027 of $600.0 at 7.750% . The notes priced at 100.0% of the principal amount. The notes are 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 2018 Revolving Facility. The notes funded concurrently with the close of the Auto Care Acquisition on January 28, 2019. Refer to Note 11, Shareholders' Equity, for further information on the equity issuances. Success fees of $6.0 were earned by a financial adviser in January 2019 after closing the acquisition. This was in addition to the $2.0 earned in November 2018 for services rendered on the transaction. The Company incurred $51.3 and $5.7 of pre-tax acquisition and integration costs in the quarters ended December 31, 2018 and 2017, respectively. Pre-tax acquisition and integration costs of $18.9 and $5.7 were recorded in SG&A in the quarters ended December 31, 2018 and 2017, respectively, and primarily related to legal, consulting and advisory fees to assist with obtaining regulatory approval around the globe and to plan for the closing and integration of the Battery Acquisition and Auto Care Acquisition. Also included in the pre-tax acquisition costs for the quarter ended December 31, 2018 was $32.4 of interest expense, including ticking fees, related to the escrowed debt for the Battery Acquisition. The Company recorded a pre-tax gain in Other items, net of $9.0 related to the favorable movement in the escrowed USD restricted cash held in our European Euro functional entity during the quarter ended December 31, 2018. The Company also recorded interest income in Other items, net of $5.8 earned on the Restricted cash funds held in escrow associated with the Battery Acquisition during the quarter ended December 31, 2018. The preliminary purchase price allocation for the Battery Acquisition and Auto Care Acquisition are incomplete as of this filing date. Given the recent closure of the acquisitions, the Company is in the initial stages of the process to allocate the purchase price of the Battery Acquisition and the Auto Care Acquisition and does not yet have an initial allocation available. Nu Finish Acquisition - On July 2, 2018, the Company acquired all of the assets of Reed-Union Corporation's automotive appearance business, including Nu Finish Car Polish and Scratch Doctor brands (Nu Finish acquisition). The acquisition purchase price of $38.1 was funded through a combination of cash on hand and committed debt facilities. The revenue in the quarter ended December 31, 2018 associated with the Nu Finish acquisition was $1.0 and earnings before income taxes was immaterial. We have calculated fair values of assets and liabilities acquired for the Nu Finish acquisition based on our preliminary valuation analysis. For purposes of the allocation, the Company determined a preliminary fair value adjustment for inventory based on the estimated selling price of finished goods on hand at the closing date less the sum of (a) costs of disposal and (b) a reasonable profit allowance for the selling effort of the acquiring entity. The preliminary fair value adjustment for the inventory of $0.2 was recorded as expense to Cost of products sold in the fourth quarter 2018 as that inventory was sold. The preliminary fair values of the Nu Finish acquisition's identifiable intangible assets were estimated using variations of the income approach such as the relief from royalty method and the multi-period excess earnings method. The preliminary purchase price allocation is as follows: Accounts receivable $ 2.4 Inventory 0.9 Goodwill 14.7 Other identifiable intangible assets 21.8 Accounts payable (1.7 ) Net assets acquired $ 38.1 The break out of purchased identifiable assets of $21.8 is included in the table below: Total Weighted Average Useful Lives Customer relationships $ 15.2 15.0 Trademarks 4.2 14.0 Proprietary formula 2.4 11.0 Total other intangible assets $ 21.8 14.4 The goodwill acquired in this acquisition is attributable to the workforce of the acquired business and the synergies expected to arise with this transaction. The acquired goodwill has been allocated to the Americas' reportable segment. The goodwill is deductible for tax purposes. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The three month effective tax rate was 21.3% as compared to 49.2% for the prior year comparative period. The provisions included the impact of the U.S. tax legislation discussed below. On December 22, 2017, H.R. 1, formally known as the Tax Cuts and Jobs Act (the Tax Act) was enacted into law. The Tax Act provided for numerous significant tax law changes and modifications with varying effective dates, which included reducing the corporate income tax rate from 35% to 21% , creating a territorial tax system (with a mandatory transition tax on previously deferred foreign earnings) and allowing for immediate capital expensing of certain qualified property. As a fiscal year end taxpayer, certain provisions of the Tax Act began to impact us in the fiscal quarter ended December 31, 2017, while other provisions did not impact us until fiscal 2019. The corporate tax rate reduction was effective for Energizer as of January 1, 2018 and resulted in a fiscal year federal statutory blended rate of 24.5% for fiscal year 2018 with the full impact of the reduced rate to 21% beginning in fiscal year 2019. The changes included in the Tax Act are broad and complex. The Securities and Exchange Commission has issued rules (SAB 118) that allow taxpayers to record a reasonable estimate of the impact of the US legislation for a measurement period of up to one year after the enactment date of the Tax Act. As a result of the reduction of the Federal corporate income tax rate, the Company remeasured certain deferred tax assets and liabilities at the rate which they are expected to reverse in the future. The Company has finalized the remeasurement and did not have any adjustments to the $3.0 recorded in fiscal year 2018. The provision for the three months ended December 31, 2017 included approximately $1 . The mandatory transition tax is based on our total post-1986 earnings and profits (E&P) that we previously deferred from U.S. income taxes as well as the amount of non-U.S. income tax paid on such earnings. We have completed our accounting for the income tax effect of the mandatory transition tax in the first quarter of fiscal 2019. We have recorded an additional $1.5 recorded during the three months ended December 31, 2018 related to the anticipated state tax impact for a total tax of $37.5 . Included in the provision for the three months ended December 31, 2017 was an initial estimate of $30.0 related to the transition tax. Beginning in fiscal 2019, the Tax Act created a provision known as Global Intangible Low Taxed Income (GILTI) that imposes tax on certain earnings of foreign subsidiaries. The Company has elected to treat GILTI as a current period expense. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments Total compensation cost for Energizer’s share-based compensation arrangements was $6.5 for the quarter ended December 31, 2018 and $6.7 for the quarter ended December 31, 2017 and was recorded in SG&A expense. Restricted Stock Equivalents (RSE)—(in whole dollars and total shares) In November 2018, the Company granted RSE awards to a group of key employees of approximately 73,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 55,000 shares that vest on the third anniversary of the date of grant. In addition, the Company granted approximately 190,000 performance shares to a group of key employees and key executives that will vest subject to meeting target 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 with the maximum award payout of approximately 380,000 shares. The closing stock price on the date of the grant used to determine the award fair value was $60.25 . In November 2017, the Company granted RSE awards to a group of key employees of approximately 100,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 68,000 shares that vest on the third anniversary of the date of grant. In addition, the Company granted approximately 238,000 performance shares to a group of key employees and key executives that will vest subject to meeting target 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 with the maximum award payout of approximately 476,000 shares. The closing stock price on the date of the grant used to determine the award fair value was $44.20 . In November 2016, the Company granted RSE awards to a group of key employees of 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 with the maximum award payout of approximately 498,000 shares. 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 of approximately 106,000 shares that vest ratably over four years. 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, 2018 | |
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, performance share awards and deferred compensation equity plans. December 31, 2018 and 2017 : (in millions, except per share data) For the Quarter Ended December 31, 2018 2017 Net earnings $ 70.8 $ 60.4 Basic average shares outstanding 59.7 60.2 Effect of dilutive restricted stock equivalents 0.4 0.4 Effect of dilutive performance shares 0.7 0.9 Effect of stock based deferred compensation plan 0.2 — Diluted average shares outstanding 61.0 61.5 Basic earnings per common share $ 1.19 $ 1.00 Diluted earnings per common share $ 1.16 $ 0.98 For the quarter ended December 31, 2018 , 0.1 million restricted stock equivalents were anti-dilutive and not included in the diluted net earnings per share calculations. For the quarter ended December 31, 2017, all restricted stock equivalents were dilutive and included in the diluted net earnings per share calculations. |
Segments
Segments | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments Operations for Energizer are managed via two major geographic reportable segments: Americas and International. Prior to January 1, 2018, the International segment was reported as two separate geographic reportable segments: Europe, Middle East and Africa (EMEA) and Asia Pacific. The Company changed its reporting structure to 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 recast 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, acquisition and integration activities, amortization costs, 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 and integration 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 quarters ended December 31, 2018 and 2017 , respectively, are presented below: For the Quarter Ended December 31, 2018 2017 Net Sales Americas $ 373.5 $ 373.1 International 198.4 200.2 Total net sales $ 571.9 $ 573.3 Segment Profit Americas $ 116.1 $ 123.1 International 54.6 49.2 Total segment profit 170.7 172.3 General corporate and other expenses (1) (18.7 ) (21.6 ) Global marketing expense (2) (3.1 ) (3.2 ) Research and development expense (5.5 ) (5.3 ) Amortization of intangible assets (3.2 ) (2.8 ) Acquisition and integration costs (3) (36.5 ) (5.7 ) Interest expense (4) (15.8 ) (13.4 ) Other items, net (5) 2.1 (1.3 ) Total earnings before income taxes $ 90.0 $ 119.0 (1) Included in SG&A in the unaudited Consolidated Condensed Statement of Earnings and Comprehensive Income. (2) The quarter ended December 31, 2018 and 2017, includes $1.2 and $0.5 recorded in SG&A, respectively, and $1.9 and $2.7 recorded in Advertising and sales promotion expense, respectively, in the unaudited Consolidated Condensed Statement of Earnings and Comprehensive Income. (3) The quarter ended December 31, 2018 included $18.9 recorded in SG&A, $32.4 recorded in Interest expense and a gain of $14.8 recorded in Other items, net on the Consolidated Condensed Statement of Earnings and Comprehensive Income. The quarter ended December 31, 2017 included $ 5.7 recorded in SG&A on the Consolidated Condensed Statement of Earnings and Comprehensive Income. (4) The amount for the quarter ended December 31, 2018 on the Consolidated Condensed Statement of Earnings and Comprehensive Income included $32.4 of expense which has been reclassified to Acquisition and integration costs from Interest expense for purposes of the reconciliation above. (5) The amounts for the quarter ended December 31, 2018 on the Consolidated Condensed Statement of Earnings and Comprehensive Income included $14.8 of acquisition and integration related gains which have been reclassified for purposes of the reconciliation above. Corporate assets shown in the following table include all restricted cash related to the Battery Acquisition, financial instruments and deferred tax assets that are managed outside of operating segments. Total assets by segment are presented below: December 31, 2018 September 30, 2018 Americas $ 507.7 $ 504.2 International 891.2 851.5 Total segment assets $ 1,398.9 $ 1,355.7 Corporate 2,544.0 1,346.3 Goodwill and other intangible assets 473.2 476.8 Total assets $ 4,416.1 $ 3,178.8 |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets 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, 2018 and December 31, 2018 : Americas International Total Balance at October 1, 2018 $ 228.4 $ 15.8 $ 244.2 Cumulative translation adjustment (0.1 ) (0.1 ) (0.2 ) Balance at December 31, 2018 $ 228.3 $ 15.7 $ 244.0 Energizer had indefinite-lived intangible assets of $76.7 at December 31, 2018 and $76.9 at September 30, 2018. Changes in indefinite-lived intangible assets are due to changes in foreign currency translation. Total amortizable intangible assets at December 31, 2018 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 44.3 $ 6.8 $ 37.5 Customer relationships 99.6 15.1 84.5 Patents 34.5 6.4 28.1 Proprietary formulas 2.4 0.1 2.3 Non-compete 0.5 0.3 0.2 Total intangible assets at December 31, 2018 $ 181.3 $ 28.7 $ 152.6 Total amortizable intangible assets at September 30, 2018 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 44.3 $ 6.1 $ 38.2 Customer relationships 99.6 13.4 86.2 Patents 34.5 5.7 28.8 Proprietary formulas 2.4 0.1 2.3 Non-compete 0.5 0.2 0.3 Total intangible assets at September 30, 2018 $ 181.3 $ 25.5 $ 155.8 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: December 31, 2018 September 30, 2018 Senior Secured Term Loan B Facility due 2022 $ 387.0 $ 388.0 5.50% Senior Notes due 2025 600.0 600.0 Total long-term debt, including current maturities 987.0 988.0 Less current portion (4.0 ) (4.0 ) Less unamortized debt discount and debt issuance fees (7.6 ) (7.9 ) Total long-term debt $ 975.4 $ 976.1 Senior Secured Term Loan B Facility due 2025 $ 1,000.0 $ — Senior Secured Term Loan A Facility due 2021 200.0 — 6.375% Senior Notes due 2026 500.0 500.0 4.625% Senior Notes due 2026 (Euro Notes of €650.0) 745.2 754.2 Total gross long-term debt held in escrow 2,445.2 1,254.2 Less current portion (60.0 ) — Less unamortized debt issuance fees (39.0 ) (23.5 ) Total long-term debt held in escrow $ 2,346.2 $ 1,230.7 Long-term debt - At December 31, 2018, the Company had a credit agreement which provided for a five -year $350.0 senior secured revolving credit facility (Revolving Facility) which would mature in June 2020 and a seven -year $400.0 senior secured term loan B facility (Term Loan) which was due in June 2022. Borrowings under the Revolving Facility bear interest at LIBOR or the Base Rate (as defined) plus the applicable margin based on total Company leverage. As of December 31, 2018 , the Company had $260.0 of outstanding borrowings under the Revolving Facility and had $6.7 of outstanding letters of credit. Taking into account outstanding letters of credit, $83.3 remained available as of December 31, 2018 . As of December 31, 2018 and September 30, 2018, our weighted average interest rate on short-term borrowings was 4.7% and 4.3% , respectively. The $400.0 Term Loan was issued at a $1.0 discount which is amortized with a corresponding charge to interest expense over the remaining life of the loan. In March 2017, the Company repriced its Term Loan resulting in interest of LIBOR plus 200 basis points. The borrowings under the Term Loan require quarterly principal payments at a rate of 0.25% , or $1.0 , 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. No other terms were changed as a result of the Term Loan repricing. On January 2, 2019, with the funding of the debt financing for the Battery Acquisition discussed below, the Company repaid the borrowing outstanding under the Term Loan due in 2022 and the borrowings outstanding under the Revolving Facility. The Company's $600.0 of 5.50% Senior Notes due 2025 (2025 Notes) were sold to qualified institutional buyers and will not be registered under federal or applicable state securities laws. Interest is payable semi-annually on the 2025 Notes in December and June. The 2025 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. Long-term debt held in escrow - On December 17, 2018, the Company entered into a credit agreement which provided for a 5 -year $400.0 revolving credit facility (2018 Revolving Facility) and which provided for a $200.0 3 -year term loan A facility and $1,000.0 7 -year term loan B facility (2018 Term Loans). The borrowings under the term loan A require quarterly principal payments at a rate of 6.25% of the original principal balance, or $12.5 . The borrowings under the term loan B require quarterly principal payments at a rate of 0.25% of the original principal balance, or $2.5 . The borrowings will bear interest at a rate per annum equal to, at the option of the Company, LIBOR or the Base Rate (as defined) plus the applicable margin based on total Company leverage. The new credit agreement also contains customary affirmative and restrictive covenants. Debt issuances fees paid associated with the credit agreement were $ 16.5 . The new 2018 Term Loans began to accrue ticking fees in July 2018 and interest in December 2018 upon funding the Term Loans into escrow. The release of the 2018 Term Loan proceeds and the ability of the Company to borrow against the 2018 Revolving Facility were subject to the completion of the Battery Acquisition. The 2018 Term Loan proceeds were held in escrow at December 31, 2018 with the proceeds recorded on the balance sheet as Restricted cash. Obligations under the 2018 Revolving Facility and 2018 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 June 2018, the Company finalized the pricing of two senior note offerings due in 2026 of $500.0 at 6.375% (USD Notes) and €650.0 at 4.625% (Euro Notes and collectively with the USD Notes, the 2026 Notes), which were issued by wholly-owned subsidiaries. The 2026 Notes priced at 100% of the principal amount and the offering closed in July 2018. The funds were held in escrow at December 31, 2018 and are recorded on the balance sheet as Restricted cash. Interest on the 2026 Notes began to accrue in July 2018. The 2026 Notes were sold to qualified institutional buyers and will not be registered under federal or applicable state securities laws. Interest is payable semi-annually on the 2026 Notes in January and July. The 2026 Notes are jointly and severally guaranteed on an unsecured basis by the Company's domestic restricted subsidiaries that guarantee indebtedness of the Company under its 2018 Revolving Facility. On January 2, 2019, the proceeds of the 2018 Term Loans and the 2026 Notes were released from escrow and utilized to fund the Battery Acquisition, repay borrowings under the Term Loan due in 2022 and outstanding under the Revolving Facility, and pay acquisition related costs including debt issuance costs. Interest Rate Swaps - In March 2017, 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 2.03% . In February 2018, the Company entered into a forward starting interest rate swap with an effective date of October 1, 2018, with one major financial institution that fixed the variable benchmark component (LIBOR) on additional variable rate debt at an interest rate of 2.47% . The swap has a current notional value of $400.0 . Beginning April 1, 2019, the notional amount decreases $50.0 each quarter until its termination date of December 31, 2020. Notes payable - The notes payable balance was $275.1 at December 31, 2018 and $247.3 at September 30, 2018. The December 31, 2018 balance was comprised of $260.0 outstanding borrowings on the Revolving Facility as well as $15.1 of other borrowings, including those from foreign affiliates. The September 30, 2018 balance was comprised of $240.0 outstanding borrowings on the Revolving facility as well as $7.3 of other borrowings, including those from foreign affiliates. On January 2, 2019, the $260.0 of outstanding borrowings on the Revolving Facility were paid with the proceeds from the 2018 Term Loans and 2026 Notes. 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, 2018 , 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, 2018 were as follows: $64.0 in one year, $64.0 in two years, $114.0 in three years, $385.0 in four years, $10.0 in five years and $2,795.2 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, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans The Company has several defined benefit pension plans covering many of its employees in the 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, U.S. International 2018 2017 2018 2017 Service Cost $ — $ — $ 0.1 $ 0.2 Interest Cost 5.1 4.7 0.7 1.1 Expected return on plan assets (6.5 ) (7.5 ) (1.2 ) (1.6 ) Amortization of unrecognized net losses 1.0 1.0 0.3 0.5 Settlement charge — 0.1 — — Net periodic (benefit)/cost $ (0.4 ) $ (1.7 ) $ (0.1 ) $ 0.2 The service cost component of the net periodic (benefit)/cost above is recorded in Selling, general and administrative expense on the Consolidated Statement of Earnings and Comprehensive Income, while the remaining components are recorded to Other items, net. 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, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' 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. There were no shares repurchased during the first quarter of fiscal 2019. During the three months ended December 31, 2017 , the Company repurchased 1,126,379 shares for $50.0 , at an average price of $44.41 per share, under this authorization. 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. On November 12, 2018, the Board of Directors declared a dividend for the first quarter of fiscal 2019 of $0.30 per share of common stock. The dividend was paid on December 13, 2018, to all shareholders of record as of November 30, 2018. During the three months ended December 31, 2018, total dividends declared were $18.4 . The payments made of $19.8 included the cumulative dividends paid upon the vesting of restricted shares during the period. During the three months ended December 31, 2017, total dividends declared were $18.7 and dividends paid were $17.6 . The unpaid dividends were associated with unvested restricted shares and were recorded in other liabilities. Issuance of Common Stock - Subsequent to the end of the fiscal quarter, in January 2019, the Company issued 4,687,498 shares of common stock, which included the underwriters' exercise in full of their option to purchase 611,412 additional shares of common stock to cover over-allotments. The net proceeds from the sale of the common stock was $205.9 , after deducting the underwriting discounts, and were utilized to fund a portion of the cash consideration for the Auto Care Acquisition and related fees and expenses. On January 28, 2019, in connection with the Auto Care Acquisition, the Company issued 5,278,921 shares of common stock to Spectrum as partial consideration for the purchase of the Auto Care Acquisition. The equity consideration paid to Spectrum was valued at $240.5 based on the closing stock price of $45.55 on January 28, 2019. In association with the equity consideration paid to Spectrum, the Company entered into a Shareholder Agreement with Spectrum. The Shareholder Agreement includes a 24 month standstill provision and an 18 month period as of the date of the Auto Care Acquisition closing date (Closing Date), in which Spectrum is required to vote in agreement with the Company's Board of Directors. In addition, Spectrum is unable to sell any of its shares for the first 12 months after the Closing Date. After the 12 month period has ended, Spectrum can require the Company to file a shelf registration allowing for Spectrum to sell its common shares in one or more registered offerings. However, Spectrum can not transfer common shares to any entity that would result in the entity owning more than 4.9% of the Company's outstanding common shares, after giving effect to the sale. Following the 18 month anniversary of the Closing Date, the Company will have the right to repurchase any or all of the common shares then held by Spectrum for a purchase price per share equal to the greater of the VWAP per share for the ten consecutive trading days beginning on the 12th trading day immediately preceding notice of the repurchase from the Company, and $65.12 , which equals 110% of the Common Stock VWAP, as defined by the Auto Care Acquisition purchase agreement. On January 28, 2019, the Board of Directors declared a cash dividend for the second quarter of 2019 of $0.30 per share of common stock, payable on March 18, 2019, to all shareholders of record as of the close of business February 25, 2019. Issuance of Series A Mandatory Convertible Preferred Stock - Subsequent to the quarter, in January 2019, the Company issued 2,156,250 shares of Series A Mandatory Convertible Preferred Stock (MCPS), with a par value of $0.01 per share and liquidation preference of $100.00 per share, which included the underwriters' exercise in full of their option to purchase 281,250 additional shares of MCPS to cover over-allotments. The net proceeds from the sale of the MCPS was $209.1 , after deducting the underwriting discounts, and were utilized to fund the Auto Care Acquisition and related fees and expenses. Each outstanding share of MCPS will convert automatically on the mandatory conversion date, which is expected to be January 15, 2022, into between 1.7892 and 2.1739 shares of common stock, subject to certain anti-dilution and other adjustments. The number of shares of common stock issuable upon conversion will be determined based on the average VWAP per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to January 15, 2022. Dividends on the MCPS will be payable on a cumulative basis when, as and if declared, at an annual rate of 7.50% of the liquidation preference of $100.00 per share of MCPS, and may be paid in cash or, subject to certain limitations, in shares of common stock, or in any combination of cash and shares of common stock. If declared, dividends on the MCPS will be payable quarterly on January 15, April 15, July 15 and October 15 of each year, commencing on April 15, 2019 and ending on, and including, January 15, 2022. On January 28, 2019, the Board of Directors declared a cash dividend for the second quarter of 2019 of $1.8333 per share of MCPS, payable on April 15, 2019, to all shareholders of record as of the close of business April 1, 2019. No dividend or distributions may be declared or paid on shares of common stock, and no common stock shall be, directly or indirectly, purchased, redeemed, or otherwise acquired for consideration by the Company, or any of its subsidiaries, unless all accumulated and unpaid dividends for all preceding dividend periods have been declared and paid upon, or a sufficient sum of cash or number of shares of common stock has been set aside for the payment of such dividends upon, all outstanding shares of MCPS. In connection with the offering of the MCPS, the Company entered into capped call transactions with certain option counterparties. The capped call transactions are expected to reduce potential dilution to the Company’s Common Stock, subject to a cap, upon any conversion of MCPS. The Company paid $9.0 for the capped call transactions which further reduced the net proceeds received from the MCPS. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management 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, 2018 and September 30, 2018, 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, 2018 and September 30, 2018, 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 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, 2018 , Energizer had variable rate debt outstanding with an original principal balance of $1,600.0 under the Term Loan and 2018 Term Loans. In March 2017, 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 2.03% . In February 2018, the Company entered into a interest rate swap with an effective date of October 1, 2018, with one major financial institution that fixed the variable benchmark component (LIBOR) on additional variable rate debt of $400.0 at an interest rate of 2.47% . Beginning April 1, 2019, the notional amount decreases $50.0 each quarter until its termination date of December 31, 2020. These hedging instruments are considered cash flow hedges for accounting purposes. At December 31, 2018 and September 30, 2018, Energizer recorded an unrecognized pre-tax gain of $2.9 and $7.7 , respectively, on these interest rate swap contracts, both of which were included in Accumulated other comprehensive loss on the Consolidated Balance Sheet. 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, 2018 and September 30, 2018, Energizer had an unrealized pre-tax gain of $4.7 and $4.3 , 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, 2018 levels, over the next 12 months, $4.7 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 2020. There were 64 open foreign currency contracts at December 31, 2018 , with a total notional value of approximately $134 . 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 eight open foreign currency derivative contracts which are not designated as cash flow hedges at December 31, 2018 , with a total notional value of approximately $85 . The following table provides the Company's estimated fair values as of December 31, 2018 and September 30, 2018, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the quarters ended December 31, 2018 and 2017, respectively: At December 31, 2018 For the Quarter Ended December 31, 2018 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) Gain/(Loss) Recognized in OCI (2) Gain/(Loss) Reclassified From OCI into Income (Effective Portion) (3) (4) Foreign currency contracts $ 4.7 $ 3.2 $ 2.8 Interest rate contracts 2.9 (4.8 ) (0.1 ) Total $ 7.6 $ (1.6 ) $ 2.7 At September 30, 2018 For the Quarter Ended December 31, 2017 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) (Loss)/Gain Recognized in OCI (2) Loss Reclassified From OCI into Income (Effective Portion) (3) (4) Foreign currency contracts $ 4.3 $ (0.8 ) $ (2.4 ) Interest rate contracts 7.7 1.5 (0.5 ) Total $ 12.0 $ 0.7 $ (2.9 ) (1) All derivative assets are presented in Other current assets or Other assets. (2) OCI is defined as other comprehensive income. (3) Gain/(loss) reclassified to Income was recorded as follows: Foreign currency contracts in Other items, net and interest rate contracts in Interest expense. (4) 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, 2018 and September 30, 2018 and the gains and losses on derivative instruments not classified as cash flow hedges for the quarters ended December 31, 2018 and 2017 , respectively: At December 31, 2018 For the Quarter Ended December 31, 2018 Estimated Fair Value Asset (1) Gain Recognized in Income (2) Foreign currency contracts $ 0.2 $ 1.0 At September 30, 2018 For the Quarter Ended December 31, 2017 Estimated Fair Value Liability (1) Gain Recognized in Income (2) Foreign currency contracts $ (0.1 ) $ 0.3 (1) All derivative assets are presented in Other current assets or Other assets and derivative liabilities are presented in Other current liabilities or Other liabilities. (2) Gain/(loss) recognized in Income was recorded as foreign currency in Other 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, 2018 At September 30, 2018 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 $ 5.3 $ (0.1 ) $ 5.2 $ 4.7 $ (0.2 ) $ 4.5 Offsetting of derivative liabilities At December 31, 2018 At September 30, 2018 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (0.3 ) $ — $ (0.3 ) $ (0.3 ) $ — $ (0.3 ) 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, 2018 and September 30, 2018 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 Assets/(Liabilities) at estimated fair value: December 31, September 30, Deferred Compensation $ (28.5 ) $ (29.0 ) Derivatives - Foreign Currency Contracts 4.9 4.2 Derivatives - Interest Rate Contracts 2.9 7.7 Exit lease liability (0.6 ) (0.6 ) Net Liabilities at estimated fair value $ (21.3 ) $ (17.7 ) 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, 2018 and at September 30, 2018. Due to the nature of cash, cash equivalents and restricted cash, carrying amounts on the balance sheets approximate estimated fair value. The estimated fair value of cash was determined based on level 1 inputs and cash equivalents and restricted cash are determined based on level 2 inputs. At December 31, 2018 , the estimated fair value of the Company's unfunded deferred compensation liability is determined based upon the quoted market prices of investment options that are offered under the plan. The estimated fair value of foreign currency contracts and interest rate swap as described above is the amount that the Company would receive or pay to terminate the contracts, considering first, quoted market prices of comparable agreements, or in the absence of quoted market prices, such factors as interest rates, currency exchange rates and remaining maturities. The estimated fair value of the exit lease liability was 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. At December 31, 2018 and September 30, 2018, the fair market value of fixed rate long-term debt was $588.4 and $599.2 , respectively, compared to its carrying value of $600.0 and the fair market value of the fixed rate long-term debt held in escrow was $1,210.2 and $1,274.4 , respectively, compared to its carrying value of $1,245.2 and $1,254.2 , respectively. The estimated fair value of the long-term debt is estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. The estimated fair value of 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, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income The following table presents the changes in accumulated other comprehensive (loss)/income (AOCI), net of tax by component: Foreign Currency Translation Adjustments Pension Activity Hedging Activity Interest Rate Contracts Total Balance at September 30, 2018 $ (113.6 ) $ (136.4 ) $ 3.3 $ 4.9 $ (241.8 ) OCI before reclassifications (3.7 ) — 2.5 (3.7 ) (4.9 ) Reclassifications to earnings — 1.1 (2.2 ) 0.1 (1.0 ) Balance at December 31, 2018 $ (117.3 ) $ (135.3 ) $ 3.6 $ 1.3 $ (247.7 ) The following table presents the reclassifications out of AOCI to earnings: For the Quarter Ended December 31, 2018 2017 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 $ 2.8 $ (2.4 ) Other items, net Interest rate contracts (0.1 ) (0.5 ) Interest expense 2.7 (2.9 ) Earnings before income taxes (0.6 ) 0.6 Income tax provision $ 2.1 $ (2.3 ) Net earnings Amortization of defined benefit pension items Actuarial loss (1.3 ) (1.5 ) (2) Settlement loss — (0.1 ) (2) (1.3 ) (1.6 ) Earnings before income taxes 0.2 0.4 Income tax provision $ (1.1 ) $ (1.2 ) Net earnings Total reclassifications to earnings $ 1.0 $ (3.5 ) Net earnings (1) Amounts in parentheses indicate debits to Consolidated Statement of Earnings. (2) This AOCI component is included in the computation of net periodic pension (benefit)/cost (see Note 10, Pension Plans, for further details). |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Dec. 31, 2018 | |
Financial Statement Related Disclosures [Abstract] | |
Suplemental Financial Statement Information | Supplemental Financial Statement Information The components of certain income statement accounts are as follows: For the Quarters Ended December 31, 2018 2017 Other items, net Interest income $ (0.2 ) $ (0.5 ) Interest income on restricted cash (5.8 ) — Foreign currency exchange (gain)/loss (1.1 ) 4.1 Pension benefit other than service costs (0.7 ) (1.6 ) Acquisition foreign currency gains (9.0 ) — Other (0.1 ) (0.7 ) Total Other items, net $ (16.9 ) $ 1.3 The components of certain balance sheet accounts are as follows: December 31, 2018 September 30, 2018 Inventories Raw materials and supplies $ 47.7 $ 40.0 Work in process 80.6 86.5 Finished products 161.9 196.6 Total inventories $ 290.2 $ 323.1 Other Current Assets Miscellaneous receivables $ 11.3 $ 9.9 Prepaid expenses 45.0 52.2 Value added tax collectible from customers 27.5 20.8 Other 11.5 12.6 Total other current assets $ 95.3 $ 95.5 Property, Plant and Equipment Land $ 4.6 $ 4.5 Buildings 111.1 110.8 Machinery and equipment 686.4 696.2 Construction in progress 12.1 12.1 Total gross property 814.2 823.6 Accumulated depreciation (651.6 ) (656.9 ) Total property, plant and equipment, net $ 162.6 $ 166.7 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 16.5 $ 16.5 Accrued trade allowances 58.2 39.4 Accrued salaries, vacations and incentive compensation 23.0 48.8 Income taxes payable 23.7 23.4 Other 139.9 142.9 Total other current liabilities $ 261.3 $ 271.0 Other Liabilities Pensions and other retirement benefits $ 67.7 $ 70.2 Deferred compensation 28.5 29.0 Mandatory transition tax 33.1 33.1 Other non-current liabilities 62.8 64.0 Total other liabilities $ 192.1 $ 196.3 |
Legal proceedings_contingencies
Legal proceedings/contingencies | 3 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal proceedings/contingencies | Legal proceedings/contingencies and other obligations 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. Other obligations - In the ordinary course of business, the Company also enters into supply and service contracts. These contracts can include either volume commitments or fixed expiration dates, termination provisions and other standard contractual considerations. At December 31, 2018, the Company had approximately $49.7 of purchase obligations. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
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 statement of our operations, financial position and cash flows 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, 2018 included in the Annual Report on Form 10-K dated November 16, 2018. |
Recently adopted accounting pronouncements | Recently Adopted Accounting Pronouncements - Effective October 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers , on a modified retrospective basis for all contracts as of the effective date. This guidance provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries and across capital markets. There was no material impact to retained earnings as a result of the adoption. See Note 2, Revenue Recognition, for additional discussion. Effective October 1, 2018, the Company early adopted ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . This update requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement similar to internal-use software guidance. The Company will defer and recognize allowable implementation costs for future projects. Capitalized implementation costs were not material for the quarter ended December 31, 2018. Effective October 1, 2018, the Company adopted ASU 2016-15, Statement of Cash Flows- Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain transactions are classified in the statements of cash flows. The Company has determined that this new guidance has no immediate impact on the Company's consolidated financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements - On February 25, 2016, the FASB issued ASU 2016-02, Leases . This update aligns the measurement of leases under GAAP more closely with International Financial Reporting Standards by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this update will be effective for Energizer beginning October 1, 2019 with early adoption permitted. Energizer is in the process of evaluating the impact the guidance will have on its financial statements. On August 28, 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities . This update intends to simplify hedge accounting and decrease complexity for both the preparation and understanding of hedging disclosures in the financial statements. This update is effective for the Company beginning October 1, 2019 with early adoption permitted. The Company is currently assessing the impact the revised guidance will have on its accounting practices and financial statements. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Product and Market Information | Supplemental product and market information is presented below for revenues from external customers: For the Quarter Ended December 31, Net Sales 2018 2017 Batteries $ 524.3 $ 524.5 Other 47.6 48.8 Total Net Sales $ 571.9 $ 573.3 For the Quarter Ended December 31, 2018 2017 Net Sales North America $ 341.0 $ 335.0 Latin America 32.5 38.1 Americas 373.5 373.1 Modern Markets 127.4 130.0 Developing Markets 49.7 46.6 Distributors Markets 21.3 23.6 International 198.4 200.2 Total Net Sales $ 571.9 $ 573.3 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation is as follows: Accounts receivable $ 2.4 Inventory 0.9 Goodwill 14.7 Other identifiable intangible assets 21.8 Accounts payable (1.7 ) Net assets acquired $ 38.1 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The break out of purchased identifiable assets of $21.8 is included in the table below: Total Weighted Average Useful Lives Customer relationships $ 15.2 15.0 Trademarks 4.2 14.0 Proprietary formula 2.4 11.0 Total other intangible assets $ 21.8 14.4 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | he following table sets forth the computation of basic and diluted earnings per share for the quarters ended December 31, 2018 and 2017 : (in millions, except per share data) For the Quarter Ended December 31, 2018 2017 Net earnings $ 70.8 $ 60.4 Basic average shares outstanding 59.7 60.2 Effect of dilutive restricted stock equivalents 0.4 0.4 Effect of dilutive performance shares 0.7 0.9 Effect of stock based deferred compensation plan 0.2 — Diluted average shares outstanding 61.0 61.5 Basic earnings per common share $ 1.19 $ 1.00 Diluted earnings per common share $ 1.16 $ 0.98 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment sales and profitability for the quarters ended December 31, 2018 and 2017 , respectively, are presented below: For the Quarter Ended December 31, 2018 2017 Net Sales Americas $ 373.5 $ 373.1 International 198.4 200.2 Total net sales $ 571.9 $ 573.3 Segment Profit Americas $ 116.1 $ 123.1 International 54.6 49.2 Total segment profit 170.7 172.3 General corporate and other expenses (1) (18.7 ) (21.6 ) Global marketing expense (2) (3.1 ) (3.2 ) Research and development expense (5.5 ) (5.3 ) Amortization of intangible assets (3.2 ) (2.8 ) Acquisition and integration costs (3) (36.5 ) (5.7 ) Interest expense (4) (15.8 ) (13.4 ) Other items, net (5) 2.1 (1.3 ) Total earnings before income taxes $ 90.0 $ 119.0 (1) Included in SG&A in the unaudited Consolidated Condensed Statement of Earnings and Comprehensive Income. (2) The quarter ended December 31, 2018 and 2017, includes $1.2 and $0.5 recorded in SG&A, respectively, and $1.9 and $2.7 recorded in Advertising and sales promotion expense, respectively, in the unaudited Consolidated Condensed Statement of Earnings and Comprehensive Income. (3) The quarter ended December 31, 2018 included $18.9 recorded in SG&A, $32.4 recorded in Interest expense and a gain of $14.8 recorded in Other items, net on the Consolidated Condensed Statement of Earnings and Comprehensive Income. The quarter ended December 31, 2017 included $ 5.7 recorded in SG&A on the Consolidated Condensed Statement of Earnings and Comprehensive Income. (4) The amount for the quarter ended December 31, 2018 on the Consolidated Condensed Statement of Earnings and Comprehensive Income included $32.4 of expense which has been reclassified to Acquisition and integration costs from Interest expense for purposes of the reconciliation above. (5) The amounts for the quarter ended December 31, 2018 on the Consolidated Condensed Statement of Earnings and Comprehensive Income included $14.8 of acquisition and integration related gains which have been reclassified for purposes of the reconciliation above. |
Revenue from External Customers by Products and Services | |
Reconciliation of Assets from Segment to Consolidated | Total assets by segment are presented below: December 31, 2018 September 30, 2018 Americas $ 507.7 $ 504.2 International 891.2 851.5 Total segment assets $ 1,398.9 $ 1,355.7 Corporate 2,544.0 1,346.3 Goodwill and other intangible assets 473.2 476.8 Total assets $ 4,416.1 $ 3,178.8 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment as of October 1, 2018 and December 31, 2018 : Americas International Total Balance at October 1, 2018 $ 228.4 $ 15.8 $ 244.2 Cumulative translation adjustment (0.1 ) (0.1 ) (0.2 ) Balance at December 31, 2018 $ 228.3 $ 15.7 $ 244.0 |
Schedule of Finite-Lived Intangible Assets | Total amortizable intangible assets at December 31, 2018 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 44.3 $ 6.8 $ 37.5 Customer relationships 99.6 15.1 84.5 Patents 34.5 6.4 28.1 Proprietary formulas 2.4 0.1 2.3 Non-compete 0.5 0.3 0.2 Total intangible assets at December 31, 2018 $ 181.3 $ 28.7 $ 152.6 Total amortizable intangible assets at September 30, 2018 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks $ 44.3 $ 6.1 $ 38.2 Customer relationships 99.6 13.4 86.2 Patents 34.5 5.7 28.8 Proprietary formulas 2.4 0.1 2.3 Non-compete 0.5 0.2 0.3 Total intangible assets at September 30, 2018 $ 181.3 $ 25.5 $ 155.8 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The detail of long-term debt was as follows: December 31, 2018 September 30, 2018 Senior Secured Term Loan B Facility due 2022 $ 387.0 $ 388.0 5.50% Senior Notes due 2025 600.0 600.0 Total long-term debt, including current maturities 987.0 988.0 Less current portion (4.0 ) (4.0 ) Less unamortized debt discount and debt issuance fees (7.6 ) (7.9 ) Total long-term debt $ 975.4 $ 976.1 Senior Secured Term Loan B Facility due 2025 $ 1,000.0 $ — Senior Secured Term Loan A Facility due 2021 200.0 — 6.375% Senior Notes due 2026 500.0 500.0 4.625% Senior Notes due 2026 (Euro Notes of €650.0) 745.2 754.2 Total gross long-term debt held in escrow 2,445.2 1,254.2 Less current portion (60.0 ) — Less unamortized debt issuance fees (39.0 ) (23.5 ) Total long-term debt held in escrow $ 2,346.2 $ 1,230.7 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [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, U.S. International 2018 2017 2018 2017 Service Cost $ — $ — $ 0.1 $ 0.2 Interest Cost 5.1 4.7 0.7 1.1 Expected return on plan assets (6.5 ) (7.5 ) (1.2 ) (1.6 ) Amortization of unrecognized net losses 1.0 1.0 0.3 0.5 Settlement charge — 0.1 — — Net periodic (benefit)/cost $ (0.4 ) $ (1.7 ) $ (0.1 ) $ 0.2 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table provides the Company's estimated fair values as of December 31, 2018 and September 30, 2018, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the quarters ended December 31, 2018 and 2017, respectively: At December 31, 2018 For the Quarter Ended December 31, 2018 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) Gain/(Loss) Recognized in OCI (2) Gain/(Loss) Reclassified From OCI into Income (Effective Portion) (3) (4) Foreign currency contracts $ 4.7 $ 3.2 $ 2.8 Interest rate contracts 2.9 (4.8 ) (0.1 ) Total $ 7.6 $ (1.6 ) $ 2.7 At September 30, 2018 For the Quarter Ended December 31, 2017 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) (Loss)/Gain Recognized in OCI (2) Loss Reclassified From OCI into Income (Effective Portion) (3) (4) Foreign currency contracts $ 4.3 $ (0.8 ) $ (2.4 ) Interest rate contracts 7.7 1.5 (0.5 ) Total $ 12.0 $ 0.7 $ (2.9 ) (1) All derivative assets are presented in Other current assets or Other assets. (2) OCI is defined as other comprehensive income. (3) Gain/(loss) reclassified to Income was recorded as follows: Foreign currency contracts in Other items, net and interest rate contracts in Interest expense. (4) 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, 2018 and September 30, 2018 and the gains and losses on derivative instruments not classified as cash flow hedges for the quarters ended December 31, 2018 and 2017 , respectively: At December 31, 2018 For the Quarter Ended December 31, 2018 Estimated Fair Value Asset (1) Gain Recognized in Income (2) Foreign currency contracts $ 0.2 $ 1.0 At September 30, 2018 For the Quarter Ended December 31, 2017 Estimated Fair Value Liability (1) Gain Recognized in Income (2) Foreign currency contracts $ (0.1 ) $ 0.3 (1) All derivative assets are presented in Other current assets or Other assets and derivative liabilities are presented in Other current liabilities or Other liabilities. (2) Gain/(loss) recognized in Income was recorded as foreign currency in Other items, net. |
Offsetting Liabilities | Offsetting of derivative assets At December 31, 2018 At September 30, 2018 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 $ 5.3 $ (0.1 ) $ 5.2 $ 4.7 $ (0.2 ) $ 4.5 Offsetting of derivative liabilities At December 31, 2018 At September 30, 2018 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (0.3 ) $ — $ (0.3 ) $ (0.3 ) $ — $ (0.3 ) |
Offsetting Assets | Offsetting of derivative assets At December 31, 2018 At September 30, 2018 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 $ 5.3 $ (0.1 ) $ 5.2 $ 4.7 $ (0.2 ) $ 4.5 Offsetting of derivative liabilities At December 31, 2018 At September 30, 2018 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (0.3 ) $ — $ (0.3 ) $ (0.3 ) $ — $ (0.3 ) |
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, 2018 and September 30, 2018 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 Assets/(Liabilities) at estimated fair value: December 31, September 30, Deferred Compensation $ (28.5 ) $ (29.0 ) Derivatives - Foreign Currency Contracts 4.9 4.2 Derivatives - Interest Rate Contracts 2.9 7.7 Exit lease liability (0.6 ) (0.6 ) Net Liabilities at estimated fair value $ (21.3 ) $ (17.7 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive (loss)/income (AOCI), net of tax by component: Foreign Currency Translation Adjustments Pension Activity Hedging Activity Interest Rate Contracts Total Balance at September 30, 2018 $ (113.6 ) $ (136.4 ) $ 3.3 $ 4.9 $ (241.8 ) OCI before reclassifications (3.7 ) — 2.5 (3.7 ) (4.9 ) Reclassifications to earnings — 1.1 (2.2 ) 0.1 (1.0 ) Balance at December 31, 2018 $ (117.3 ) $ (135.3 ) $ 3.6 $ 1.3 $ (247.7 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of AOCI to earnings: For the Quarter Ended December 31, 2018 2017 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 $ 2.8 $ (2.4 ) Other items, net Interest rate contracts (0.1 ) (0.5 ) Interest expense 2.7 (2.9 ) Earnings before income taxes (0.6 ) 0.6 Income tax provision $ 2.1 $ (2.3 ) Net earnings Amortization of defined benefit pension items Actuarial loss (1.3 ) (1.5 ) (2) Settlement loss — (0.1 ) (2) (1.3 ) (1.6 ) Earnings before income taxes 0.2 0.4 Income tax provision $ (1.1 ) $ (1.2 ) Net earnings Total reclassifications to earnings $ 1.0 $ (3.5 ) Net earnings (1) Amounts in parentheses indicate debits to Consolidated Statement of Earnings. (2) This AOCI component is included in the computation of net periodic pension (benefit)/cost (see Note 10, Pension Plans, for further details). |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Financial Statement Related Disclosures [Abstract] | |
Supplemental Income Statement and Balance Sheet Information | The components of certain income statement accounts are as follows: For the Quarters Ended December 31, 2018 2017 Other items, net Interest income $ (0.2 ) $ (0.5 ) Interest income on restricted cash (5.8 ) — Foreign currency exchange (gain)/loss (1.1 ) 4.1 Pension benefit other than service costs (0.7 ) (1.6 ) Acquisition foreign currency gains (9.0 ) — Other (0.1 ) (0.7 ) Total Other items, net $ (16.9 ) $ 1.3 The components of certain balance sheet accounts are as follows: December 31, 2018 September 30, 2018 Inventories Raw materials and supplies $ 47.7 $ 40.0 Work in process 80.6 86.5 Finished products 161.9 196.6 Total inventories $ 290.2 $ 323.1 Other Current Assets Miscellaneous receivables $ 11.3 $ 9.9 Prepaid expenses 45.0 52.2 Value added tax collectible from customers 27.5 20.8 Other 11.5 12.6 Total other current assets $ 95.3 $ 95.5 Property, Plant and Equipment Land $ 4.6 $ 4.5 Buildings 111.1 110.8 Machinery and equipment 686.4 696.2 Construction in progress 12.1 12.1 Total gross property 814.2 823.6 Accumulated depreciation (651.6 ) (656.9 ) Total property, plant and equipment, net $ 162.6 $ 166.7 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 16.5 $ 16.5 Accrued trade allowances 58.2 39.4 Accrued salaries, vacations and incentive compensation 23.0 48.8 Income taxes payable 23.7 23.4 Other 139.9 142.9 Total other current liabilities $ 261.3 $ 271.0 Other Liabilities Pensions and other retirement benefits $ 67.7 $ 70.2 Deferred compensation 28.5 29.0 Mandatory transition tax 33.1 33.1 Other non-current liabilities 62.8 64.0 Total other liabilities $ 192.1 $ 196.3 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Product and Market Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 571.9 | $ 573.3 |
Modern Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 127.4 | 130 |
Developing Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 49.7 | 46.6 |
Distributors Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 21.3 | 23.6 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 341 | 335 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 32.5 | 38.1 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 373.5 | 373.1 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 198.4 | 200.2 |
Batteries | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 524.3 | 524.5 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 47.6 | $ 48.8 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 28, 2019 | Nov. 15, 2018 | Jul. 02, 2018 | Jan. 15, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | Jan. 17, 2019 | Jan. 31, 2018 |
Business Acquisition [Line Items] | ||||||||||
Acquisition and integration costs | $ 51.3 | |||||||||
Selling, General and Administrative Expenses | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition and integration costs | 18.9 | $ 5.7 | ||||||||
Interest Expense | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Interest and other financing items | 32.4 | |||||||||
Other Items, Net | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Combination, Separately Recognized Transactions, Net Gains and Losses | (9) | |||||||||
Spectrum Brands Holdings | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire business | $ 2,000 | |||||||||
Initial cash paid including estimated working capital adjustments | 1,956.2 | |||||||||
Success fees | $ 13 | $ 2 | ||||||||
Spectrum Brands Holdings | Other Items, Net | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Interest and other financing items | (5.8) | |||||||||
Spectrum Brands Holdings | Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Success fees | $ 6 | |||||||||
Spectrum Auto Care Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire business | $ 938 | |||||||||
Acquisition purchase price | 1,250 | |||||||||
Newly-issued common stock in acquisition | $ 313 | |||||||||
Spectrum Auto Care Acquisition | Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Initial cash paid including estimated working capital adjustments | $ 938.7 | |||||||||
Newly-issued common stock in acquisition (in shares) | 5,278,921 | |||||||||
Fair value of equity consideration | $ 240.5 | |||||||||
Opening stock price (in dollars per share) | $ 45.55 | |||||||||
Additional consideration (in dollars per share) | $ 36,800,000 | |||||||||
Spectrum Auto Care Acquisition | Senior Notes, 7.750%, Due 2027 | Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Face amount of debt | $ 600 | |||||||||
Stated interest rate of debt | 7.75% | |||||||||
Nu Finish Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition purchase price | $ 38.1 | |||||||||
Revenue | $ 1 | |||||||||
Inventory adjustment | $ 0.2 | |||||||||
Other identifiable intangible assets | $ 21.8 |
Acquisition - Schedule of Recog
Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 02, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 244 | $ 244.2 | |
Nu Finish Acquisition | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 2.4 | ||
Inventory | 0.9 | ||
Goodwill | 14.7 | ||
Other identifiable intangible assets | 21.8 | ||
Accounts payable | (1.7) | ||
Net assets acquired | $ 38.1 |
Acquisition - Schedule of Acqui
Acquisition - Schedule of Acquired Finite-Lived Intangible Assets by Major Class (Details) - Nu Finish Acquisition $ in Millions | Jul. 02, 2018USD ($) |
Business Acquisition [Line Items] | |
Intangible asset acquired | $ 21.8 |
Weighted Average Useful Lives | 14 years 4 months 24 days |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible asset acquired | $ 15.2 |
Weighted Average Useful Lives | 15 years |
Trademarks | |
Business Acquisition [Line Items] | |
Intangible asset acquired | $ 4.2 |
Weighted Average Useful Lives | 14 years |
Proprietary formula | |
Business Acquisition [Line Items] | |
Intangible asset acquired | $ 2.4 |
Weighted Average Useful Lives | 11 years |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||||
Effective tax rate, percent | 21.30% | 49.20% | |||
Corporate tax rate | 21.00% | 35.00% | 24.50% | ||
Tax expense | $ 37.5 | $ 0 | $ 3 | ||
State and Local Jurisdiction [Member] | |||||
Business Acquisition [Line Items] | |||||
Tax expense | $ 1.5 |
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, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | |
ParentCo | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Closing stock price (in dollars per share) | $ 60.25 | $ 44.20 | $ 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 | $ 6.5 | $ 6.7 | ||||
Key Employees | Restricted Stock Equivalents | ParentCo | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
RSE awards granted, shares | 73 | 100 | 92 | 106 | ||
Vesting period, years | 4 years | 4 years | 4 years | |||
Key Employees | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Maximum award payout (in shares) | 380 | 476 | 498 | |||
Key Executives | Restricted Stock Equivalents | ParentCo | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
RSE awards granted, shares | 55 | 68 | 73 | |||
Key Employees and Key Executives | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
RSE awards granted, shares | 190 | 238 | 249 | |||
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, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net earnings | $ 70.8 | $ 60.4 |
Basic average shares outstanding (shares) | 59.7 | 60.2 |
Effect of dilutive restricted stock equivalents (shares) | 0.4 | 0.4 |
Effect of dilutive performance shares (shares) | 0.2 | 0 |
Diluted average shares outstanding (shares) | 61 | 61.5 |
Basic earnings per common share (dollars per share) | $ 1.19 | $ 1 |
Diluted earnings per common share (dollars per share) | $ 1.16 | $ 0.98 |
Amount reclassified from liability based plan to equity compensation plan | $ 0.1 | |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0.7 | 0.9 |
Segments - Narrative (Details)
Segments - Narrative (Details) - Segment | Feb. 28, 2018 | Dec. 31, 2018 |
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | 2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 571,900,000 | $ 573,300,000 |
Segment Profit | 275,500,000 | 278,300,000 |
Research and development expense | (5,500,000) | (5,300,000) |
Amortization of intangible assets | (3,200,000) | (2,800,000) |
Acquisition and integration costs | 51,300,000 | |
Other items, net | 2,100,000 | (1,300,000) |
Earnings before income taxes | 90,000,000 | 119,000,000 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Profit | 170,700,000 | 172,300,000 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
General corporate and other expenses | (18,700,000) | (21,600,000) |
Global marketing expense | (3,100,000) | (3,200,000) |
Research and development expense | (5,500,000) | (5,300,000) |
Amortization of intangible assets | (3,200,000) | (2,800,000) |
Acquisition and integration costs | 36,500,000 | 5,700,000 |
Interest and other financing items | (15,800,000) | (13,400,000) |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 373,500,000 | 373,100,000 |
Americas | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 373,500,000 | 373,100,000 |
Segment Profit | 116,100,000 | 123,100,000 |
International | ||
Segment Reporting Information [Line Items] | ||
Net sales | 198,400,000 | 200,200,000 |
International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 198,400,000 | 200,200,000 |
Segment Profit | 54,600,000 | 49,200,000 |
Selling, General and Administrative Expenses | ||
Segment Reporting Information [Line Items] | ||
Global marketing expense | 0 | 0 |
Acquisition and integration costs | 18,900,000 | 5,700,000 |
Advertising and Sales Promotion Expense | ||
Segment Reporting Information [Line Items] | ||
Global marketing expense | 0 | $ 0 |
Interest Expense | ||
Segment Reporting Information [Line Items] | ||
Interest and other financing items | 32,400,000 | |
Acquisition-related Costs | ||
Segment Reporting Information [Line Items] | ||
Acquisition and integration costs | 0 | |
Other items, net | $ 14.8 |
Segments, Reconciliation of Ass
Segments, Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill and other intangible assets | $ 473.2 | $ 476.8 |
Total assets | 4,416.1 | 3,178.8 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 1,398.9 | 1,355.7 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 2,544 | 1,346.3 |
Americas | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 507.7 | 504.2 |
International | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | $ 891.2 | $ 851.5 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 244.2 |
Cumulative translation adjustment | (0.2) |
Ending balance | 244 |
Americas | |
Goodwill [Roll Forward] | |
Beginning balance | 228.4 |
Cumulative translation adjustment | (0.1) |
Ending balance | 228.3 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 15.8 |
Cumulative translation adjustment | (0.1) |
Ending balance | $ 15.7 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible assets | $ 76.7 | $ 76.9 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 181.3 | $ 181.3 |
Accumulated Amortization | 28.7 | 25.5 |
Net Carrying Amount | 152.6 | 155.8 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44.3 | 44.3 |
Accumulated Amortization | 6.8 | 6.1 |
Net Carrying Amount | 37.5 | 38.2 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 99.6 | 99.6 |
Accumulated Amortization | 15.1 | 13.4 |
Net Carrying Amount | 84.5 | 86.2 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34.5 | 34.5 |
Accumulated Amortization | 6.4 | 5.7 |
Net Carrying Amount | 28.1 | 28.8 |
Proprietary Formula | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2.4 | 2.4 |
Accumulated Amortization | 0.1 | 0.1 |
Net Carrying Amount | 2.3 | 2.3 |
Non-Compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0.5 | 0.5 |
Accumulated Amortization | 0.3 | 0.2 |
Net Carrying Amount | $ 0.2 | $ 0.3 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 21, 2018 |
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 987 | $ 988 | |
Less current portion | (4) | (4) | |
Less unamortized debt discount and debt issuance fees | (7.6) | (7.9) | |
Total long-term debt | 975.4 | 976.1 | |
Total gross long-term debt held in escrow | 2,445.2 | 1,254.2 | |
Less current portion | (60) | 0 | |
Less unamortized debt issuance fees | (39) | (23.5) | |
Long-term debt held in escrow | 2,346.2 | 1,230.7 | |
Secured Debt | Senior Secured Term Loan B Facility due 2022 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 387 | 388 | |
Secured Debt | Senior Secured Term Loan B Facility due 2025 | |||
Debt Instrument [Line Items] | |||
Total gross long-term debt held in escrow | 1,000 | 0 | |
Secured Debt | Senior Secured Term Loan A Facility due 2021 | |||
Debt Instrument [Line Items] | |||
Total gross long-term debt held in escrow | 200 | 0 | |
Senior Notes | 5.50% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 600 | 600 | |
Stated interest rate of debt | 5.50% | ||
Senior Notes | 6.375% Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Total gross long-term debt held in escrow | $ 500 | 500 | |
Stated interest rate of debt | 6.375% | 6.375% | |
Senior Notes | 4.625% Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Total gross long-term debt held in escrow | $ 745.2 | $ 754.2 | |
Stated interest rate of debt | 4.25% | 4.625% |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Millions | Dec. 17, 2018USD ($) | Jun. 21, 2018USD ($)debt_instrument | Mar. 13, 2017USD ($) | Jun. 01, 2015 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 01, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 21, 2018EUR (€) | Feb. 28, 2018USD ($) | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||
Maturities of long term debt in five years | $ 10,000,000 | ||||||||||
Number of senior note offerings | debt_instrument | 2 | ||||||||||
Short term borrowing interest rate | 4.70% | 4.27% | |||||||||
Payments of Debt Issuance Costs | $ 16,500,000 | $ 0 | |||||||||
Long-term debt | 987,000,000 | $ 988,000,000 | |||||||||
Notes payable | 275,100,000 | 247,300,000 | |||||||||
Interest Rate Contracts | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Forward interest rate | 2.47% | ||||||||||
Notional value | 400,000 | $ 0 | |||||||||
Interest Rate Contracts | Scenario, Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notional value | $ 50,000,000 | ||||||||||
Senior Secured Term Loan B Facility due 2022 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 400,000,000 | ||||||||||
Term of debt | 7 years | ||||||||||
Discount amount | $ 1,000,000 | ||||||||||
Principal payments as a percentage of the original principal balance | 0.25% | 0.25% | |||||||||
Debt Instrument, Periodic Payment, Principal | $ 2,500,000 | $ 1,000,000 | |||||||||
Long-term debt | $ 387,000,000 | 388,000,000 | |||||||||
Senior Secured Term Loan B Facility due 2022 | Secured Debt | Interest Rate Contracts | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate debt hedged | $ 0 | ||||||||||
Fixed interest rate | 2.034% | ||||||||||
5.50% Senior Notes due 2025 | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate of debt | 5.50% | ||||||||||
Long-term debt | $ 600,000,000 | 600,000,000 | |||||||||
6.375% Senior Notes due 2026 | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 500,000,000 | ||||||||||
Stated interest rate of debt | 6.375% | 6.375% | 6.375% | ||||||||
4.625% Senior Notes due 2026 | Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | € | € 650 | ||||||||||
Stated interest rate of debt | 4.625% | 4.25% | 4.625% | ||||||||
Term Loan A Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal payments as a percentage of the original principal balance | 6.25% | ||||||||||
Debt Instrument, Periodic Payment, Principal | $ 12,500,000 | ||||||||||
Term Loan A Facility | Spectrum Brands Holdings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 200,000,000 | ||||||||||
Term of debt | 3 years | ||||||||||
Term Loan B Facility | Spectrum Brands Holdings | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 1,000,000,000 | ||||||||||
Term of debt | 7 years | ||||||||||
Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term of debt | 5 years | 5 years | |||||||||
Maximum amount for line of credit | $ 400,000,000 | $ 350,000,000 | |||||||||
Outstanding letters of credit | 260,000,000 | 240,000,000 | |||||||||
Amount available remaining | 83,300,000 | ||||||||||
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 | $ 15,100,000 | $ 7,300,000 | |||||||||
LIBOR | Senior Secured Term Loan B Facility due 2022 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis points | 2.00% | 2.50% | |||||||||
Basis points floor | 0.75% | ||||||||||
LIBOR | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR |
Debt, Long-term Debt Maturities
Debt, Long-term Debt Maturities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
Maturities of long term debt in one year | $ 64 |
Maturities of long term debt in two years | 64 |
Maturities of long term debt in three years | 114 |
Maturities of long term debt in four years | 385 |
Maturities of long term debt in five years | 10 |
Maturities of long term debt thereafter | $ 2,795.2 |
Pension Plans - Schedule of Net
Pension Plans - Schedule of Net Benefit Costs (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 0 | $ 0 |
Interest Cost | 5.1 | 4.7 |
Expected return on plan assets | (6.5) | (7.5) |
Amortization of unrecognized net losses | 1 | 1 |
Settlement charge | 0 | 0.1 |
Net periodic (benefit)/cost | (0.4) | (1.7) |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 0.1 | 0.2 |
Interest Cost | 0.7 | 1.1 |
Expected return on plan assets | (1.2) | (1.6) |
Amortization of unrecognized net losses | 0.3 | 0.5 |
Settlement charge | 0 | 0 |
Net periodic (benefit)/cost | $ (0.1) | $ 0.2 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2022 | Jan. 28, 2019 | Jan. 31, 2019 | Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2015 |
Class of Stock [Line Items] | |||||||
Number of shares repurchased (shares) | 1,126,379 | ||||||
Shares repurchased | $ 50,000 | ||||||
Average purchase price (in dollars per share) | $ 44.41 | ||||||
Dividend declared (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.29 | ||||
Dividends to shareholders | $ 18,400 | $ 18,700 | |||||
Dividends paid | 19,800 | $ 17,600 | |||||
Minimum | Scenario, Forecast | |||||||
Class of Stock [Line Items] | |||||||
Conversion of preferred stock to common stock (in shares) | 1,789,200 | ||||||
Maximum | Scenario, Forecast | |||||||
Class of Stock [Line Items] | |||||||
Conversion of preferred stock to common stock (in shares) | 2,173,900 | ||||||
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Dividend declared (in dollars per share) | $ 0.30 | ||||||
Common stock isued (in shares) | 4,687,498 | ||||||
Net proceeds from sale of common stock | $ 205,900 | ||||||
Preferred stock issued (in shares) | 2,156,250 | ||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||||
Liquidation preference (in dollars per share) | $ 100 | ||||||
Net proceeds from sale of mandatory convertible preferred stock | $ 209,100 | ||||||
Mandatory convertible preferred stock annual rate | 7.50% | ||||||
Preferred stock dividend declared (in dollars per share) | $ 1.8333 | ||||||
Payments for capped call transactions | $ 9,000 | ||||||
Subsequent Event | Over-Allotment Option | |||||||
Class of Stock [Line Items] | |||||||
Common stock isued (in shares) | 611,412 | ||||||
Preferred stock issued (in shares) | 281,250 | ||||||
Subsequent Event | Spectrum Auto Care Acquisition | |||||||
Class of Stock [Line Items] | |||||||
Newly-issued common stock in acquisition (in shares) | 5,278,921 | ||||||
Fair value of equity consideration | $ 240,500 | ||||||
Opening stock price (in dollars per share) | $ 45.55 | ||||||
Percentage not transferable, limit | 4.90% | ||||||
Value of common stock in company acquired | $ 65,117 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Number of shares authorized to be acquired (shares) | 7,500,000 | ||||||
Number of shares repurchased (shares) | 1,126,000 | ||||||
Retained Earnings | |||||||
Class of Stock [Line Items] | |||||||
Dividends to shareholders | $ 18,400 | $ 18,700 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($)derivative_instrument | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Apr. 01, 2019USD ($) | Feb. 28, 2018USD ($) | Mar. 31, 2017USD ($) | |
Derivative [Line Items] | ||||||
Unrecognized pre-tax loss | $ 2,900,000 | $ (7,700,000) | ||||
Unrealized pre-tax gain | 4,700,000 | 4,300,000 | ||||
Portion or pre-tax gain included in AOCI expected to be included in earnings | 4,700,000 | |||||
Gain Recognized in Income | 9,000,000 | $ 0 | ||||
Amount reclassified from liability based plan to equity compensation plan | 100,000 | |||||
Interest Rate Contracts | ||||||
Derivative [Line Items] | ||||||
Forward interest rate | 2.47% | |||||
Notional value | 400,000 | $ 0 | ||||
Line of Credit | Senior Secured Term Loan B Facility, net of discount, due 2022 | ||||||
Derivative [Line Items] | ||||||
Face amount of debt | 1,600 | |||||
Estimate of Fair Value | ||||||
Derivative [Line Items] | ||||||
Fair market value of fixed rate long-term debt | 0 | 0 | ||||
Long-term debt held in escrow | 0 | 0 | ||||
Reported Value Measurement | ||||||
Derivative [Line Items] | ||||||
Fair market value of fixed rate long-term debt | 600,000,000 | |||||
Long-term debt held in escrow | 1,245,200,000 | $ 0 | ||||
Senior Secured Term Loan B Facility due 2022 | Senior Secured Term Loan B Facility, net of discount, due 2022 | ||||||
Derivative [Line Items] | ||||||
Face amount of debt | $ 400,000,000 | |||||
Senior Secured Term Loan B Facility due 2022 | Senior Secured Term Loan B Facility, net of discount, due 2022 | Interest Rate Contracts | ||||||
Derivative [Line Items] | ||||||
Variable rate debt hedged | $ 0 | |||||
Fixed interest rate | 2.034% | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Number of open contracts | derivative_instrument | 64,000,000 | |||||
Notional value | $ 134,100,000 | |||||
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Number of open contracts | derivative_instrument | 8 | |||||
Notional value | $ 85,200,000 | |||||
Scenario, Forecast | Interest Rate Contracts | ||||||
Derivative [Line Items] | ||||||
Notional value | $ 50,000,000 |
Financial Instruments and Ris_4
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, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | $ 7.6 | $ 12 | |
(Loss)/Gain Recognized in OCI | (1.6) | $ 0.7 | |
Loss Reclassified From OCI into Income(Effective Portion) | 2.7 | (2.9) | |
Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | 4.7 | 4.3 | |
(Loss)/Gain Recognized in OCI | 3.2 | (0.8) | |
Loss Reclassified From OCI into Income(Effective Portion) | 2.8 | (2.4) | |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency Contracts | 2.9 | $ 7.7 | |
(Loss)/Gain Recognized in OCI | (4.8) | 1.5 | |
Loss Reclassified From OCI into Income(Effective Portion) | $ (0.1) | $ (0.5) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain Recognized in Income | $ 9 | $ 0 | |
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Asset (1) | 0.2 | $ (0.1) | |
Gain Recognized in Income | $ 1 | $ 0.3 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Offsetting Assets and Liabilities (Details) - Foreign currency contracts - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | $ 5.3 | $ 4.7 |
Gross amounts offset in the Balance Sheet | (0.1) | (0.2) |
Net amounts of assets presented in the Balance Sheet | 5.2 | 4.5 |
Gross amounts of recognized liabilities | (0.3) | (0.3) |
Gross amounts offset in the Balance Sheet | 0 | 0 |
Net amounts of liabilities presented in the Balance Sheet | $ (0.3) | $ (0.3) |
Financial Instruments and Ris_7
Financial Instruments and Risk Management - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation | $ (28.5) | $ (29) |
Derivatives - Foreign Currency Contracts | 4.9 | 4.2 |
Exit lease liability | (0.6) | (0.6) |
Net Liabilities at estimated fair value | (21.3) | (17.7) |
Interest rate contracts | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency Contracts | 2.9 | 7.7 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Fair Value Amount | $ 0 | $ 0 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2018 | $ (241.8) |
OCI before reclassifications | (4.9) |
Reclassifications to earnings | (1) |
Balance at December 31, 2018 | (247.7) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2018 | (113.6) |
OCI before reclassifications | (3.7) |
Reclassifications to earnings | 0 |
Balance at December 31, 2018 | (117.3) |
Pension Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2018 | (136.4) |
OCI before reclassifications | 0 |
Reclassifications to earnings | 1.1 |
Balance at December 31, 2018 | (135.3) |
Hedging Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2018 | 3.3 |
OCI before reclassifications | 2.5 |
Reclassifications to earnings | (2.2) |
Balance at December 31, 2018 | 3.6 |
Interest Rate Contracts | Hedging Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2018 | 4.9 |
OCI before reclassifications | (3.7) |
Reclassifications to earnings | 0.1 |
Balance at December 31, 2018 | $ 1.3 |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other items, net | $ 16.9 | $ (1.3) |
Interest expense | (48.2) | (13.4) |
Earnings before income taxes | 90 | 119 |
Income tax provision | (19.2) | (58.6) |
Net earnings | 70.8 | 60.4 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | 1 | (3.5) |
Gains and losses on cash flow hedges | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other items, net | 2.8 | (2.4) |
Interest expense | (0.1) | (0.5) |
Earnings before income taxes | 2.7 | (2.9) |
Income tax provision | (0.6) | 0.6 |
Net earnings | 2.1 | (2.3) |
Amortization of defined benefit pension items | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial loss | (1.3) | (1.5) |
Settlement loss | 0 | (0.1) |
Earnings before income taxes | (1.3) | (1.6) |
Income tax provision | 0.2 | 0.4 |
Net earnings | $ (1.1) | $ (1.2) |
Supplemental Financial Statem_3
Supplemental Financial Statement Information, Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Income Statement Related Disclosures [Abstract] | |||
Interest income | $ (0.2) | $ (0.5) | |
Interest income on restricted cash | (5.8) | 0 | |
Interest income on restricted cash | (1.1) | 4.1 | |
Pension benefit other than service costs | (0.7) | (1.6) | |
Acquisition foreign currency gains | (9) | 0 | |
Other | (0.1) | (0.7) | |
Total Other items, net | (16.9) | $ 1.3 | |
Inventories | |||
Raw materials and supplies | 47.7 | $ 40 | |
Work in process | 80.6 | 86.5 | |
Finished products | 161.9 | 196.6 | |
Total inventories | 290.2 | 323.1 | |
Other Current Assets | |||
Miscellaneous receivables | 11.3 | 9.9 | |
Prepaid expenses | 45 | 52.2 | |
Value added tax collectible from customers | 27.5 | 20.8 | |
Other | 11.5 | 12.6 | |
Total other current assets | 95.3 | 95.5 | |
Property, Plant and Equipment | |||
Land | 4.6 | 4.5 | |
Buildings | 111.1 | 110.8 | |
Machinery and equipment | 686.4 | 696.2 | |
Construction in progress | 12.1 | 12.1 | |
Total gross property | 814.2 | 823.6 | |
Accumulated depreciation | (651.6) | (656.9) | |
Total property, plant and equipment, net | 162.6 | 166.7 | |
Other Current Liabilities | |||
Accrued advertising, sales promotion and allowances | 16.5 | 16.5 | |
Accrued trade allowances | 58.2 | 39.4 | |
Accrued salaries, vacations and incentive compensation | 23 | 48.8 | |
Income taxes payable | 23.7 | 23.4 | |
Other | 139.9 | 142.9 | |
Total other current liabilities | 261.3 | 271 | |
Other Liabilities | |||
Pensions and other retirement benefits | 67.7 | 70.2 | |
Deferred compensation | 28.5 | 29 | |
Mandatory transition tax | 33.1 | 33.1 | |
Other non-current liabilities | 62.8 | 64 | |
Total other liabilities | $ 192.1 | $ 196.3 |
Legal proceedings_contingenci_2
Legal proceedings/contingencies (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations | $ 49.7 |