Cover Page Cover Page
Cover Page Cover Page - shares | 3 Months Ended | |
Dec. 31, 2021 | Feb. 03, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36837 | |
Entity Registrant Name | ENERGIZER HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 36-4802442 | |
Entity Address, Address Line One | 533 Maryville University Drive | |
Entity Address, City or Town | St. Louis, | |
Entity Address, State or Province | MO | |
City Area Code | (314) | |
Local Phone Number | 985-2000 | |
Entity Address, Postal Zip Code | 63141 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0001632790 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | ENR | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common stock outstanding, shares | 71,250,127 |
COMBINED STATEMENTS OF EARNINGS
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 846.3 | $ 848.6 |
Cost of products sold | 534.7 | 510.7 |
Gross profit | 311.6 | 337.9 |
Selling, general and administrative expense | 122.1 | 124.1 |
Advertising and sales promotion expense | 51.7 | 49.6 |
Research and development expense | 8.9 | 7.6 |
Amortization of intangible assets | 15.2 | 15.5 |
Interest expense | 37 | 47.3 |
Loss on extinguishment of debt | 0 | 5.7 |
Total Other items, net | 0.2 | 0.8 |
Income tax provision | 16.5 | 20.2 |
Net earnings | 67.1 | |
Net earnings | 60 | 67.1 |
Mandatory preferred stock dividends | (4) | (4) |
Net earnings attributable to common shareholders | $ 56 | $ 63.1 |
Basic net (loss)/earnings per common share- continuing operations (in dollars per share) | $ 0.84 | $ 0.92 |
Basic net (loss)/earnings per common share (in dollars per share) | 0.84 | 0.92 |
Diluted net (loss)/earnings per common share- continuing operations (in dollars per share) | $ 0.83 | $ 0.91 |
Weighted average shares of common stock - Basic (shares) | 66.8 | 68.5 |
Weighted average shares of common stock - Diluted (shares) | 67.1 | 73.5 |
Statements of Comprehensive Income: | ||
Net earnings | $ 60 | $ 67.1 |
Other comprehensive income/(loss), net of tax (benefit)/expense | ||
Foreign currency translation adjustments | 12.3 | 5.5 |
Pension activity, net of tax of $(0.4) and $0.5, respectively. | 1.2 | (0.5) |
Total comprehensive income | $ 78.7 | $ 69.5 |
COMBINED STATEMENTS OF EARNIN_2
COMBINED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) Parenthetical - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (0.4) | $ 0.5 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 5.2 | (2.6) |
Deferred (loss)/gain on hedging activity, tax | 0.2 | (0.9) |
Net (loss)/earnings | $ 76.5 | $ 87.3 |
COMBINED BALANCE SHEETS (Conden
COMBINED BALANCE SHEETS (Condensed) (Unaudited) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 221.2 | $ 238.9 |
Trade receivables, less allowance for doubtful accounts of $2.6 and $2.9, respectively | 370.3 | 292.9 |
Inventories | 755.9 | 728.3 |
Other current assets | 202.9 | 179.4 |
Total current assets | 1,550.3 | 1,439.5 |
Property, plant and equipment, net | 381.9 | 382.9 |
Operating lease assets | 109.3 | 112.3 |
Goodwill | 1,053.3 | 1,053.8 |
Other intangible assets, net | 1,856.2 | 1,871.3 |
Deferred tax asset | 23.5 | 21.7 |
Other assets | 135.4 | 126 |
Total assets | 5,109.9 | 5,007.5 |
Current liabilities | ||
Current maturities of long-term debt | 12 | 12 |
Current portion of capital leases | 2.2 | 2.3 |
Notes payable | 183.4 | 105 |
Accounts payable | 420 | 454.8 |
Current operating lease liabilities | 15.3 | 15.5 |
Other current liabilities | 382.6 | 356.8 |
Total current liabilities | 1,015.5 | 946.4 |
Long-term debt | 3,318.3 | 3,333.4 |
Operating lease liabilities | 99.3 | 102.3 |
Deferred tax liability | 93.8 | 91.3 |
Other liabilities | 173.6 | 178.4 |
Total liabilities | 4,700.5 | 4,651.8 |
Shareholders' equity | ||
Common stock | 0.7 | 0.7 |
Mandatory convertible preferred stock | 0 | 0 |
Additional paid-in capital | 840 | 832 |
Retained earnings | 30.9 | (5) |
Treasury stock | (250.5) | (241.6) |
Accumulated other comprehensive loss | (211.7) | (230.4) |
Total shareholders' equity | 409.4 | 355.7 |
Total liabilities and shareholders' equity | $ 5,109.9 | $ 5,007.5 |
COMBINED BALANCE SHEETS (Cond_2
COMBINED BALANCE SHEETS (Condensed) (Unaudited) Parenthetical - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2.6 | $ 2.9 |
COMBINED STATEMENTS OF CASH FLO
COMBINED STATEMENTS OF CASH FLOWS (Condensed) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 60 | $ 67.1 |
Net earnings | 67.1 | |
Non-cash integration and restructuring charges | 3 | 1.9 |
Depreciation and amortization | 29.4 | 29.8 |
Deferred income taxes | 0 | 7.7 |
Share-based compensation expense | 1.3 | 4 |
Loss on extinguishment of debt | 0 | 5.7 |
Non-cash items included in income, net | 5.5 | 5.6 |
Other, net | (0.3) | (0.7) |
Changes in current assets and liabilities used in operations | (153.5) | (44.8) |
Net cash (used by)/from operating activities | (54.6) | 76.3 |
Cash Flow from Investing Activities | ||
Capital expenditures | (24.4) | (8.4) |
Acquisitions, net of cash acquired and working capital settlements | (0.4) | (66.4) |
Net cash used by investing activities | (24) | (74.8) |
Cash Flow from Financing Activities | ||
Cash proceeds from issuance of debt with original maturities greater than 90 days | 0 | 550 |
Payments on debt with maturities greater than 90 days | (3.6) | (1,383.3) |
Net increase in debt with original maturities of 90 days or less | 94.2 | 1.2 |
Premiums paid on extinguishment of debt | 0 | 55.9 |
Debt issuance costs | (2.5) | (12.5) |
Dividends paid on common stock | (20.5) | (22.7) |
Dividends paid on mandatory convertible preferred stock | (4) | (4) |
Common stock purchased | 0 | (21.3) |
Taxes paid for withheld share-based payments | (2.2) | (6.7) |
Net Cash Provided by (Used in) Financing Activities, Total | 61.4 | (955.2) |
Effect of exchange rate changes on cash | (0.5) | 9.5 |
Net decrease in cash, cash equivalents, and restricted cash | (17.7) | (944.2) |
Cash, cash equivalents, and restricted cash, beginning of period | 238.9 | 1,249.8 |
Cash, cash equivalents, and restricted cash, end of period | $ 221.2 | $ 305.6 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY/(DEFICIT) - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock |
Beginning Balance, Preferred Stock (in shares) at Jun. 30, 2020 | 2,156 | ||||||
Beginning Balance, Common Stock (in shares) at Jun. 30, 2020 | 68,354 | ||||||
Beginning Balance at Jun. 30, 2020 | $ 329.6 | $ 0 | $ 0.7 | $ 841.6 | $ (25) | $ (305.3) | $ (182.4) |
Ending Balance at Sep. 30, 2020 | $ 309.1 | $ 0 | $ 0.7 | 859.2 | (66.2) | (307.7) | (176.9) |
Ending Balance, Common Stock (in shares) at Sep. 30, 2020 | 68,518 | ||||||
Ending Balance, Preferred Stock (in shares) at Sep. 30, 2020 | 2,156 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends per common share (in dollars per share) | $ 0.30 | ||||||
Preferred stock dividend declared (in dollars per share) | $ 1.83 | ||||||
Ending Balance at Sep. 30, 2021 | $ 355.7 | $ 0 | $ 0.7 | 832 | (5) | (230.4) | (241.6) |
Ending Balance, Common Stock (in shares) at Sep. 30, 2021 | 66,864 | ||||||
Ending Balance, Preferred Stock (in shares) at Sep. 30, 2021 | 2,156 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends per common share (in dollars per share) | $ 0.30 | ||||||
Preferred stock dividend declared (in dollars per share) | $ 1.875 | ||||||
Beginning Balance, Preferred Stock (in shares) at Jun. 30, 2021 | 2,156 | ||||||
Beginning Balance, Common Stock (in shares) at Jun. 30, 2021 | 66,546 | ||||||
Beginning Balance at Jun. 30, 2021 | $ 409.4 | $ 0 | $ 0.7 | 840 | 30.9 | (211.7) | (250.5) |
Ending Balance at Sep. 30, 2021 | 355.7 | $ 0 | $ 0.7 | 832 | (5) | $ (230.4) | $ (241.6) |
Ending Balance, Common Stock (in shares) at Sep. 30, 2021 | 66,864 | ||||||
Ending Balance, Preferred Stock (in shares) at Sep. 30, 2021 | 2,156 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss)/earnings | 76.5 | $ 60 | |||||
Share-based compensation expense | 1.3 | ||||||
Common stock purchased | $ 15 | ||||||
Deferred compensation plan | 0.1 | ||||||
Dividends to common shareholders | (20.1) | ||||||
Ending Balance at Dec. 31, 2021 | 409.4 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Mandatory preferred stock dividends | $ (4) | ||||||
Preferred stock dividend declared (in dollars per share) | $ 1.88 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2021 | |
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 distributor of primary batteries, portable lights, and auto care appearance, performance, refrigerants and fragrance products. Batteries and lights are sold under the Energizer®, Eveready®, Rayovac® and Varta® brand names following the 2019 acquisition of Spectrum Holdings, Inc.'s (Spectrum) global battery, lighting, and portable power business (Battery Acquisition). Energizer offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions. Automotive appearance, performance, refrigerants and fragrance products are sold under the Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL®, Eagle One®, Armor All®, STP®, and A/C PRO® brands following the 2019 acquisition of Spectrum's global auto care business (Auto Care Acquisition). Basis of Presentation - The accompanying 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 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 Consolidated (Condensed) 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, including the recast of our segment related disclosures to align with our new reportable segments as of October 1, 2021. Refer to Note 6, Segments, for additional information. 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, 2021 included in the Annual Report on Form 10-K dated November 16, 2021. Recently Adopted Accounting Pronouncements – In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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 is a leading designer and marketer of automotive fragrance, appearance, performance and air conditioning recharge products. The Company distributes its 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. The Company sells to its customers through a combination of a direct sales force and exclusive and non-exclusive third-party distributors and wholesalers. 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. North America sales are generally through large retailers with nationally or regionally recognized brands. Our International sales, which includes Latin America, 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. As discussed in Note 6, Segments, following the completion of the Battery and Auto Care Acquisition integrations in fiscal 2022, the Company has changed its reportable segments to better reflect what the chief operating decision maker is reviewing to make organizational decisions and resource allocations. Therefore, the Company has recast the product and market information for the quarter ended December 31, 2020 by recasting the Battery and Auto Care licensing and other sales within each product category, and Latin America within the respective Modern, Developing and Distributors markets as appropriate. Supplemental product and market information is presented below for revenues from external customers for the quarters ended December 31, 2021 and 2020: For the Quarters Ended December 31, Net Sales by products 2021 2020 Batteries $ 701.7 $ 708.7 Auto Care 106.1 104.7 Lights 38.5 35.2 Total Net Sales $ 846.3 $ 848.6 For the Quarters Ended December 31, 2021 2020 Net Sales by markets North America $ 508.9 $ 516.9 Modern Markets 165.3 174.5 Developing Markets 115.4 108.3 Distributors Markets 56.7 48.9 Total Net Sales $ 846.3 $ 848.6 |
Acquisition
Acquisition | 3 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions Formulations Acquisition - During the first quarter of fiscal 2021, the Company entered into an agreement with Green Global Holdings, LLC to acquire a North Carolina-based company that specializes in developing formulations for cleaning tasks (Formulations Acquisition). On December 1, 2020, the Formulations Acquisition was completed for a cash purchase price of $51.2. During the first quarter of fiscal 2022, the working capital settlement was finalized, reducing the purchase price by $1.0, of which $0.4 was paid to the Company in December. The remaining amount will be settled in the second quarter of fiscal 2022. The product formulations acquired are both sold to customers directly and licensed to manufacturers. This acquisition is expected to bring significant innovation capabilities in formulations to the Company. The acquisition is being accounted for as a business combination using the acquisition method of accounting which requires assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. The fair value of proprietary technology acquired and customer relationships were determined by applying the multi-period excess earnings method under the income approach. The following table outlines the purchase price allocation: Trade receivables $ 1.3 Inventories 0.1 Goodwill 28.7 Other intangible assets, net 20.5 Operating lease assets 0.5 Accounts payable (0.2) Current operating lease liabilities (0.2) Other current liabilities (0.2) Operating lease liabilities (0.3) Net assets acquired $ 50.2 The table below identifies the purchased intangible assets of $20.5: Total Weighted Average Useful Lives Proprietary technology $ 19.5 7 Customer relationships 1.0 15 Total Other intangible assets, net $ 20.5 The Company finalized their purchase price accounting in the first quarter of fiscal 2022. The goodwill acquired in this acquisition is attributable to the value the Company expects to achieve from the significant innovation capabilities in formulations that the acquired company will bring to our organization, as well as the workforce acquired. The goodwill was allocated to the Americas segment prior to the Company's reorganization of our reportable segments on October 1, 2021. Refer to Note 7, Goodwill and intangible assets, for additional details. The goodwill is deductible for tax purposes. In conjunction with the acquisition, the Company entered into incentive compensation agreements with certain key personnel. These agreements allow for potential earn out payments of up to $35.0 based on the achievement of a combination of financial and product development and commercialization performance targets and continued employment with the Company. These agreements are not considered a component of the acquisition purchase price but rather as employee compensation arrangements. The Company has recognized $4.5 for the earn out achieved at December 31, 2021. During the first quarter of fiscal 2022, $1.1 of this earn-out was recorded on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income in Selling, general and administrative expense and in Other current liabilities on the Consolidated (Condensed) Balance Sheet. This portion of the potential earn out agreement will be paid in the second quarter of fiscal 2022. FDK Indonesia Acquisition - During the fourth quarter of fiscal 2020, the Company entered into an agreement with FDK Corporation to acquire its subsidiary PT FDK Indonesia, a battery manufacturing facility (FDK Indonesia Acquisition). On October 1, 2020, the Company completed the acquisition for a contractual purchase price of $18.2. After contractual and working capital adjustments, the Company initially paid cash of $16.9 and had a working capital adjustment of $0.7 in fiscal 2021. The acquisition of the FDK Indonesia facility increased the Company's alkaline battery production capacity and allows for the avoidance of future planned capital expenditures. The Company finalized their purchase price accounting in the fourth fiscal quarter of 2021. Pro Forma Financial Information- Pro forma results for the Formulations Acquisition and FDK Indonesia Acquisition were not considered material and, as such, are not included. Acquisition and Integration Costs- Acquisition and integration costs incurred during fiscal year 2022 and 2021 relate to the FDK Indonesia Acquisition, Formulations Acquisition, and the Battery and Auto Care Acquisitions which occurred in fiscal year 2019. The Company incurred pre-tax acquisition and integration costs of $16.5 in the three months ended December 31, 2021 and $18.3 in the three months ended December 31, 2020. Pre-tax costs recorded in Costs of products sold were $6.0 and $7.7 for the three months ended December 31, 2021 and 2020, respectively, primarily related to the facility exit and restructuring related costs, discussed in Note 4, Restructuring. Pre-tax acquisition and integration costs recorded in Selling, general and administrative expense (SG&A) were $9.4 and $10.4 for the three months ended December 31, 2021 and 2020, respectively. The SG&A expenses incurred during the three months ended December 31, 2021 primarily related to the integration of the acquired information technology systems, consulting costs, and retention-related compensation costs. The SG&A expenses incurred during the three months ended December 30, 2020 primarily related to the integration of the Battery and Auto Care acquisitions, including costs of integrating the auto care information technology systems of the businesses, and legal fees incurred for the fiscal year 2021 acquisitions. For the three months ended December 31, 2021 and 2020, the Company recorded $1.1 and $0.1, respectively, of pre-tax acquisition and integration related costs in research and development. The fiscal 2022 costs primarily related to severance and R&D asset write-offs. |
Restructuring
Restructuring | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the fourth fiscal quarter of 2019, the Company began implementing restructuring related integration plans for our manufacturing and distribution networks. These plans include the closure and combination of distribution and manufacturing facilities in order to reduce complexity and realize greater efficiencies in our manufacturing, packaging and distribution processes. All activities within these plans have been substantially completed by December 31, 2021, and the Company does not expect to incur additional material charges associated with these plans. I n the fourth fiscal quarter of 2020, the Company initiated a new restructuring program with a primary focus on reorganizing its global end-to-end supply chain network and ensuring accountability by category. This program included streamlining the Company’s end-to-end supply chain model to enable rapid response to category specific demands and enhancing our ability to better serve our customers. Planning and execution of this program began in fiscal ye ar 2021 and this program was substantially complete by December 31, 2021. The Company does not expect to incur additional material charges associated with this program. The pre-tax expense for charges related to the restructuring plans for the quarters ended December 31, 2021 and 2020 are noted in the table below and were reflected in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, 2021 2020 2019 Restructuring Program Costs of products sold Severance and related benefit costs $ (0.1) $ 0.1 Accelerated depreciation & asset write-offs 1.2 1.4 Other exit costs (1) 2.8 5.1 2019 Restructuring Total $ 3.9 $ 6.6 2020 Restructuring Program Costs of products sold Severance and related benefit costs $ 0.2 $ — Other restructuring related costs (2) 1.1 0.8 Selling, general and administrate expense Severance and related benefit costs 0.1 0.3 Other restructuring related costs (2) — 2.9 2020 Restructuring Total $ 1.4 $ 4.0 Total restructuring related expense $ 5.3 $ 10.6 (1) Includes charges primarily related to consulting, relocation, environmental investigatory and mitigation costs, and other facility exit costs. (2) Primarily includes consulting fees for the restructuring program. Although the Company's restructuring costs are recorded outside of segment profit, if allocated to our reportable segments, the restructuring costs noted above for the quarter ended December 31, 2021 would be incurred within the Battery & Lights segment in the amounts of $5.1 and the Auto Care segment in the amount of $0.2. All $10.6 of the restructuring costs in the quarter ended December 31, 2020 would have been incurred within the Battery & Lights segment. The following table summarizes the activity related to the 2019 restructuring program for the quarters ended December 31, 2020 and 2021: Utilized September 30, 2020 Charge to Income Cash Non-Cash December 31, 2020 1 Severance & termination related costs $ 5.3 $ 0.1 $ 3.4 $ — $ 2.0 Accelerated depreciation & asset write-offs — 1.4 — 1.4 — Other exit costs 2.9 5.1 5.3 — 2.7 Total $ 8.2 $ 6.6 $ 8.7 $ 1.4 $ 4.7 September 30, 2021 Charge to Income Cash Non-Cash December 31, 2021 1 Severance & termination related costs $ 1.4 $ (0.1) $ 1.0 $ — $ 0.3 Accelerated depreciation & asset write-offs — 1.2 — 1.2 — Other exit costs 2.2 2.8 4.5 — 0.5 Net gain on sale of fixed assets 0.5 — 0.5 — — Total $ 4.1 $ 3.9 $ 6.0 $ 1.2 $ 0.8 (1) At December 31, 2020 and 2021, the restructuring reserve is recorded on the Consolidated (Condensed) Balance Sheet in Other current liabilities. The following table summarizes the activity related to the 2020 restructuring program for the quarters ended December 31, 2020 and 2021: Utilized September 30, 2020 Charge to Income Cash Non-Cash December 31, 2020 1 Severance & termination related costs $ 0.4 $ 0.3 $ — $ — $ 0.7 Other restructuring related costs 0.8 3.7 3.3 — 1.2 Total $ 1.2 $ 4.0 $ 3.3 $ — $ 1.9 September 30, 2021 Charge to Income Cash Non-Cash December 31, 2021 1 Severance & termination related costs $ 0.9 $ 0.3 $ 0.2 $ — $ 1.0 Other restructuring related costs 0.7 1.1 1.4 — 0.4 Total $ 1.6 $ 1.4 $ 1.6 $ — $ 1.4 |
Earnings per share
Earnings per share | 3 Months Ended |
Dec. 31, 2021 | |
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 equivalent (RSE) awards, performance share awards and deferred compensation equity plans. Common shares issuable upon conversion of the Mandatory convertible preferred stock (MCPS) are included in the calculation of diluted earnings per share using the if-converted method and are only included if the conversion would be further dilutive to the calculation. The following table sets forth the computation of basic and diluted earnings per share for the quarters ended December 31, 2021 and 2020: (in millions, except per share data) For the Quarters Ended December 31, Basic net earnings per share 2021 2020 Net earnings $ 60.0 $ 67.1 Mandatory preferred stock dividends (4.0) (4.0) Net earnings attributable to common shareholders $ 56.0 $ 63.1 Weighted average common shares outstanding - Basic 66.8 68.5 Basic net earnings per common share $ 0.84 $ 0.92 Diluted net earnings per share Weighted average common shares outstanding - Basic 66.8 68.5 Dilutive effect of RSE 0.2 0.1 Dilutive effect of performance shares — 0.1 Dilutive effect of stock based deferred compensation plan 0.1 0.1 Dilutive effect of MCPS — 4.7 Weighted average common shares outstanding - Diluted 67.1 73.5 Diluted net earnings per common share $ 0.83 $ 0.91 For the quarters ended December 31, 2021 and 2020, 0.1 million and 0.5 million RSEs, respectively, were anti-dilutive and not included in the diluted net earnings per share calculation. Performance based RSE shares of 1.8 million and 1.5 million were excluded for the quarters ended December 31, 2021 and 2020, respectively, as the performance targets for those awards have not been achieved as of the end of the applicable period. |
Segments
Segments | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments As of October 1, 2021, the Company has changed its reportable operating segments from two geographical segments, previously Americas and International, to two product groupings, Battery & Lights and Auto Care. This change came with the completion of the Battery and Auto Care Acquisition integrations in fiscal 2022. The Company changed its reporting structure to better reflect what the chief operating decision maker is reviewing to make organizational decisions and resource allocations. The Company has recast the information for the quarter ended December 31, 2020 to align with this presentation Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses (including share-based compensation costs), amortization of intangibles, acquisition and integration activities, including restructuring charges, acquisition earn out and other items determined to be corporate in nature. Financial items, such as interest income and expense and loss on extinguishment of debt are managed on a global basis at the corporate level. The exclusion of 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 product segments, varying by country and region of the world. Shared functions include the sales and marketing functions, as well as human resources, IT and finance shared service costs. Energizer applies a fully allocated cost basis, in which shared business functions are allocated between segments. Such allocations are estimates, and do not represent the costs of such services if performed on a standalone basis. Segment sales and profitability for the quarters ended December 31, 2021 and 2020 are presented below: For the Quarters Ended December 31, 2021 2020 Net Sales Batteries & Lights $ 740.2 $ 743.9 Auto Care 106.1 104.7 Total net sales $ 846.3 $ 848.6 Segment Profit Batteries & Lights $ 168.4 $ 180.5 Auto Care (0.2) 18.3 Total segment profit 168.2 198.8 General corporate and other expenses (1) (21.7) (24.0) Amortization of intangible assets (15.2) (15.5) Acquisition and integration costs (2) (16.5) (18.3) Acquisition earn out (3) (1.1) — Interest expense (37.0) (47.3) Loss on extinguishment of debt — (5.7) Other items, net - Adjusted (4) (0.2) (0.7) Total earnings before income taxes $ 76.5 $ 87.3 Depreciation and amortization Batteries & Lights $ 12.2 $ 12.0 Auto Care 2.0 2.3 Total segment depreciation and amortization $ 14.2 $ 14.3 Amortization of intangible assets 15.2 15.5 Total depreciation and amortization $ 29.4 $ 29.8 (1) Included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) Acquisition and integration costs were included in the following lines in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, Acquisition and integration costs 2021 2020 Cost of products sold $ 6.0 $ 7.7 Selling, general and administrative expense 9.4 10.4 Research and development expense 1.1 0.1 Other items, net — 0.1 Total acquisition and integration costs $ 16.5 $ 18.3 (3) This represents the earn out achieved through December 31, 2021 under the incentive agreements entered into with the Formulations Acquisition and is recorded in SG&A on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (4) Other items, net for the quarter ended December 31, 2020 on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income included acquisition related costs of $0.1, which have been reclassified for the acquisition and integration costs reconciliation above. Corporate assets shown in the following table include cash, all financial instruments, pension assets, amounts indemnified by Spectrum per the purchase agreements and tax asset balances that are managed outside of operating segments. The asset balances as of September 30, 2021 have been recast to align with our new reportable segments. Total Assets December 31, 2021 September 30, 2021 Batteries & Lights $ 1,399.4 $ 1,302.7 Auto Care 386.9 367.8 Total segment assets $ 1,786.3 $ 1,670.5 Corporate 414.1 411.9 Goodwill and other intangible assets 2,909.5 2,925.1 Total assets $ 5,109.9 $ 5,007.5 |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 and December 31, 2021. The balances at October 1, 2021 have been recast to align with our new reportable segments: Batteries & Lights Auto Care Total Balance at October 1, 2021 $ 900.3 $ 153.5 $ 1,053.8 Formulations Acquisition working capital finalization — (1.0) (1.0) Cumulative translation adjustment 0.4 0.1 0.5 Balance at December 31, 2021 $ 900.7 $ 152.6 $ 1,053.3 Energizer had indefinite-lived intangible assets of $1,365.6 at December 31, 2021 and $1,365.7 at September 30, 2021. The difference between the periods is driven by currency adjustments. Total intangible assets at December 31, 2021 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.5 $ (18.8) $ 40.7 Customer relationships 395.2 (93.7) 301.5 Patents 34.5 (14.2) 20.3 Proprietary technology 172.5 (65.0) 107.5 Proprietary formulas 21.9 (3.8) 18.1 Vendor relationships 8.0 (5.5) 2.5 Total Amortizable intangible assets 691.6 (201.0) 490.6 Trademarks and trade names - indefinite lived 1,365.6 — 1,365.6 Total Other intangible assets, net $ 2,057.2 $ (201.0) $ 1,856.2 Total intangible assets at September 30, 2021 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.5 $ (17.8) $ 41.7 Customer relationships 395.0 (87.1) 307.9 Patents 34.5 (13.5) 21.0 Proprietary technology 172.5 (59.6) 112.9 Proprietary formulas 21.9 (3.0) 18.9 Vendor relationships 8.0 (4.8) 3.2 Total Amortizable intangible assets 691.4 (185.8) 505.6 Trademarks and trade names - indefinite lived 1,365.7 — 1,365.7 Total Other intangible assets, net $ 2,057.1 $ (185.8) $ 1,871.3 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: December 31, 2021 September 30, 2021 Senior Secured Term Loan Facility due 2027 $ 1,191.0 $ 1,194.0 4.750% Senior Notes due 2028 600.0 600.0 4.375% Senior Notes due 2029 800.0 800.0 3.50% Senior Notes due 2029 (Euro Notes of €650.0) 739.1 752.7 Capital lease obligations 43.6 44.3 Total long-term debt, including current maturities $ 3,373.7 $ 3,391.0 Less current portion (14.2) (14.3) Less unamortized debt premium and debt issuance fees (41.2) (43.3) Total long-term debt $ 3,318.3 $ 3,333.4 Credit Agreement - In December 2020, the Company entered in a Credit Agreement which provided for a 5-year $400.0 revolving credit facility (2020 Revolving Facility) and a $550.0 Term Loan due December 2027, which was then amended and increased to $1,200.0 in January 2021. The $550.0 of proceeds were used to pay down the remaining balances on the Term Loan A facility due in 2022, Term Loan B facility due in 2025 and the amounts outstanding on the existing 2018 Revolving Credit Facility. The pay down of the Term Loan A and B facilities were deemed to be extinguishments and the Company wrote-off $5.7 of deferred financing fees during the first fiscal quarter of 2021. On December 31, 2021, the Company amended the Credit Agreement to increase the 2020 Revolving Facility to $500.0. Debt issuances fees paid associated with the Credit Agreement were $2.5 and $12.5 in the three months ended December 31, 2021 and 2020, respectively. Borrowings under the Term Loan require quarterly principal payments at a rate of 0.25% of the original principal balance, or $3.0. Borrowings under the 2020 Revolving Facility 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. The Term Loan bears interest at a rate per annum equal to, at the option of the Company, LIBOR or Base Rate (as defined) plus the applicable margin. The Credit Agreement also contains customary affirmative and restrictive covenants. As of December 31, 2021, the Company had outstanding borrowings of $182.5 under the 2020 Revolving Facility and $8.0 of outstanding letters of credit. Taking into account outstanding letters of credit, $309.5 remained available under the 2020 Revolving Facility as of December 31, 2021. As of December 31, 2021 and September 30, 2021, the Company's weighted average interest rate on short-term borrowings was 2.5%. Senior Notes - On September 30, 2020, the Company completed a bond offering for $800.0 Senior Notes due in 2029 at 4.375% (2029 Notes). On October 16, 2020, the Company used the proceeds from the sale of the 2029 Notes to fund the redemption of all the $750.0 Senior Notes due in 2026 at 6.375%. The Company paid a redemption premium of $55.9 in the first fiscal quarter of 2021 related to this redemption. Interest Rate Swaps - In conjunction with the term loan refinance in December 2020, the Company entered into a new interest rate swap with an effective date of December 22, 2020, that fixed the variable benchmark component (LIBOR) at an interest rate of 0.95% on variable rate debt of $550.0. On January 22, 2021, the notional value increased to $700.0 and will stay at that value through December 22, 2024. The notional value will decrease by $100.0 on December 22, 2024 and by $100.0 each year thereafter until its termination date on December 22, 2027. Refer to Note 11, Financial Instruments and Risk Management, for additional information on the Company's interest rate swap transactions. Notes payable - The notes payable balance was $183.4 at December 31, 2021 and $105.0 at September 30, 2021. The December 31, 2021 balance was comprised of $182.5 of outstanding borrowings on the 2020 Revolving Facility as well as $0.9 of other borrowings, including those related to foreign affiliates. The September 30, 2021 balance was all outstanding borrowings on the 2020 Revolving Facility. 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 debt agreements would trigger cross defaults to other borrowings. As of December 31, 2021, the Company was in compliance with the provisions and covenants associated with its debt agreements. 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. Debt Maturities - Aggregate maturities of long-term debt as of December 31, 2021 are as follows: Long-term debt One year $ 12.0 Two year 12.0 Three year 12.0 Four year 12.0 Five year 12.0 Thereafter 3,270.1 Total long-term debt payments due $ 3,330.1 |
Pension Plans
Pension Plans | 3 Months Ended |
Dec. 31, 2021 | |
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 2014. The Company’s net periodic pension (benefit)/cost for these plans are as follows: For the Quarters Ended December 31, U.S. International 2021 2020 2021 2020 Service cost $ — $ — $ 0.2 $ 0.2 Interest cost 3.2 3.2 0.5 0.4 Expected return on plan assets (5.7) (5.5) (0.8) (0.8) Amortization of unrecognized net losses 1.6 1.8 0.1 0.4 Net periodic (benefit)/cost $ (0.9) $ (0.5) $ — $ 0.2 The service cost component of the net periodic (benefit)/cost above is recorded in Selling, general and administrative expense on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income, while the remaining components are recorded to Other items, net. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity In November 2020, the Board of Directors approved a share repurchase program for up to 7.5 million shares of its common stock. During the fourth quarter of fiscal 2021, the Company entered into a $75.0 accelerated share repurchase (ASR) program. Under the terms of the agreement, approximately 1.5 million shares were delivered in fiscal 2021 and an additional approximately 0.5 million shares were delivered upon termination of the agreement on November 18, 2021. The total number of shares delivered was based on the volume-weighted average stock prices (VWAP) of the Company’s common stock during the ASR period of $38.30. The Company paid the full amount of the ASR in fiscal 2021 and recorded $60.0 of treasury stock representing the approximately 1.5 million shares delivered in fiscal 2021 and the remaining $15.0 was recorded as Additional paid in capital. With the delivery of the additional shares, the $15.0 was reclassified to treasury stock on the Consolidated (Condensed) Balance sheet at December 31, 2021. 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 15, 2021, the Board of Directors declared a cash dividend for the first quarter of fiscal 2022 of $0.30 per share of common stock, payable on December 15, 2021, to all shareholders of record as of the close of business on November 30, 2021. During the quarters ended December 31, 2021 and 2020, total dividends declared were $20.1 and $21.0, respectively. The payments made of $20.5 and $22.7 during the quarters ended December 31, 2021 and 2020, respectively, included the cumulative dividends paid upon the vesting of restricted shares during the periods. The Company paid a cash dividend of $1.875 per share of MCPS on October 15, 2021 which had been declared in fiscal 2021. On November 15, 2021, the Board of Directors declared a cash dividend of $1.875 per share of MCPS to all shareholders of record as of the close of January 1, 2022, which was paid on January 15, 2022. This dividend totaling $4.0 was accrued as of December 31, 2021 and was paid on January 15, 2022. Subsequent to the quarter, all outstanding shares of the Company's 7.50% Series A MCPS automatically converted into shares of the Company's common stock, par value $0.01 per share, at a rate of 2.1739 shares of the Company's Common Stock for each share of Preferred Stock. This resulted in the issuance of approximately 4.7 million of common stock. Subsequent to the end of the fiscal quarter, on January 31, 2022, the Board of Directors declared a cash dividend for the first quarter of fiscal 2022 of $0.30 per share of common stock, payable on March 16, 2022, to all shareholders of record as of the close of business on February 22, 2022. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management The market risk inherent in the Company's operations creates potential earnings volatility arising from changes in currency rates, interest rates and commodity prices. The Company's policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into hedges for trading or speculative purposes where the sole objective is to generate profits. Concentration of Credit Risk —The counterparties to derivative contracts consist of a number of major financial institutions and are generally institutions with which the Company maintains lines of credit. The Company does not enter into derivative contracts through brokers nor does it trade derivative contracts on any other exchange or over-the-counter markets. Risk of currency positions and mark-to-market valuation of positions are strictly monitored at all times. The Company continually monitors positions with, and credit ratings of, counterparties both internally and by using outside rating agencies. While nonperformance by these counterparties exposes Energizer to potential credit losses, such losses are not anticipated. In the ordinary course of business, the Company 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, 2021 and September 30, 2021, as well as the Company's objectives and strategies for holding these derivative instruments. Commodity Price Risk —The Company uses raw materials that are subject to price volatility. At times, the Company uses hedging instruments to reduce exposure to variability in cash flows associated with future purchases of certain materials and 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 of 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 (Condensed) Statement of Earnings and Comprehensive Income. The primary currency to which Energizer’s foreign subsidiaries are exposed is the U.S. dollar. Interest Rate Risk —The Company has interest rate risk with respect to interest expense on variable rate debt. At December 31, 2021, the Company had variable rate debt outstanding of $1,373.5 under the 2020 Term Loan and the 2020 Revolving Facility. In December 2020, the Company entered into an interest rate swap (2020 Interest rate swap) with an effective date of December 22, 2020, that fixed the variable benchmark component (LIBOR) at an interest rate of 0.95% on variable rate debt of $550.0. The notional value increased to $700.0 on January 22, 2021 and will stay at that value through December 22, 2024. The notional value will decrease by $100.0 on December 22, 2024 and by $100.0 each year thereafter until its termination date on December 22, 2027. The notional value of the swap was $700.0 at December 31, 2021. Derivatives Designated as Cash Flow Hedging Relationships —The Company has entered into a series of forward currency contracts to hedge the cash flow uncertainty of the forecasted payment of 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, 2021 and September 30, 2021, Energizer had an unrealized pre-tax gain of $3.7 and $5.0, respectively, on these forward currency contracts accounted for as cash flow hedges included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheets. Assuming foreign exchange rates versus the U.S. dollar remain at December 31, 2021 levels, over the next 12 months, $3.8 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 2023. There were 62 open foreign currency contracts at December 31, 2021, with a total notional value of approximately $180. The Company has entered into hedging contracts on future zinc purchases to reduce exposure to variability in cash flows associated with price volatility. The contracts are determined to be cash flow hedges and qualify for hedge accounting. The contract maturities for these hedges extend into the third fiscal quarter of 2022. There were three open contracts at December 31, 2021, with a total notional value of approximately $7. The unrealized pre-tax gain recognized on the zinc contracts was $5.1 and $4.7 at December 31, 2021 and September 30, 2021, respectively, and was included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheet. At December 31, 2021 and September 30, 2021, Energizer recorded an unrealized pre-tax gain of $17.0 and $11.7, respectively, on the 2020 Interest rate swap agreement, both of which were included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheet. 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 ten open foreign currency derivative contracts which are not designated as cash flow hedges at December 31, 2021, with a total notional value of approximately $129. The following table provides the Company's estimated fair values as of December 31, 2021 and September 30, 2021, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the three months ended December 31, 2021 and 2020, respectively: At December 31, 2021 For the Quarters Ended December 31, 2021 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) (Loss)/Gain Recognized in OCI (2) Gain/(Loss) Reclassified From OCI into Income (3)(4) Foreign currency contracts $ 3.7 $ (0.3) $ 1.0 Interest rate swap 17.0 4.5 (1.8) Zinc contracts 5.1 3.0 2.6 Total $ 25.8 $ 7.2 $ 1.8 At September 30, 2021 For the Quarters Ended December 31, 2020 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) (Loss)/Gain Recognized in OCI (2) Loss Reclassified From OCI into Income (3)(4) Foreign currency contracts $ 5.0 $ (7.9) $ (2.6) Interest rate swap 11.7 (4.8) (1.3) Zinc contracts 4.7 4.5 (0.8) Total $ 21.4 $ (8.2) $ (4.7) (1) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities. (2) OCI is defined as other comprehensive income. (3) Gain/(Loss) reclassified to Income was recorded as follows: Foreign currency contracts in Cost of products sold, interest rate contracts in Interest expense, and commodity contracts in Cost of products sold. (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, 2021 and September 30, 2021 and the gains and losses on derivative instruments not classified as cash flow hedges for the three months ended December 31, 2021 and 2020, respectively: At December 31, 2021 For the Quarters Ended December 31, 2021 Estimated Fair Value Asset (1) Gain Recognized in Income (2) Foreign currency contracts $ 1.2 $ 1.9 At September 30, 2021 For the Quarters Ended December 31, 2020 Estimated Fair Value Liability (1) Loss Recognized in Income (2) Foreign currency contracts $ — $ (0.9) (1) All derivative assets and liabilities are presented in Other current assets or Other assets and Other current liabilities or Other liabilities, respectively. (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, 2021 At September 30, 2021 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 $ 5.7 $ (0.6) $ 5.1 $ 5.8 $ (0.6) $ 5.2 Offsetting of derivative liabilities At December 31, 2021 At September 30, 2021 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 $ (0.8) $ 0.6 $ (0.2) $ (0.8) $ 0.6 $ (0.2) 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, 2021 and September 30, 2021 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 (Liabilities)/Assets at estimated fair value: December 31, September 30, Deferred compensation $ (28.0) $ (25.1) Derivatives - Foreign Currency contracts 3.7 5.0 Derivatives - Foreign Currency contracts (non-hedge) 1.2 — Derivatives - Interest Rate Swap contracts 17.0 11.7 Derivatives - Zinc contracts 5.1 4.7 Net Liabilities at estimated fair value $ (1.0) $ (3.7) 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, 2021 and September 30, 2021. Due to the nature of cash and cash equivalents carrying amounts on the balance sheets approximate estimated fair value. The estimated fair value of cash was determined based on level 1 inputs and cash equivalents and restricted cash are determined based on Level 2 inputs. At December 31, 2021, 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, interest rate swap and zinc contracts, as described above, is the amount that the Company would receive or pay to terminate the contracts, considering first, quoted market prices of comparable agreements, or in the absence of quoted market prices, such factors as interest rates, currency exchange rates and remaining maturities. At December 31, 2021, the fair market value of fixed rate long-term debt was $2,115.9 compared to its carrying value of $2,139.1, and at September 30, 2021, the fair market value of fixed rate long-term debt was $2,156.1 compared to its carrying value of $2,152.7. 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, 2021 | |
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 Zinc Contracts Foreign Currency Contracts Interest Rate Contracts Total Balance at September 30, 2021 $ (109.8) $ (134.4) $ 3.6 $ 3.6 $ 6.6 $ (230.4) OCI before reclassifications 12.3 (0.1) 2.3 0.9 3.4 18.8 Reclassifications to earnings — 1.3 (2.0) (0.8) 1.4 (0.1) Balance at December 31, 2021 $ (97.5) $ (133.2) $ 3.9 $ 3.7 $ 11.4 $ (211.7) The following table presents the reclassifications out of AOCI to earnings: For the Quarters Ended December 31, 2021 2020 Details of AOCI Components Amount Reclassified Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign currency contracts $ (1.0) $ 2.6 Cost of products sold Interest rate contracts 1.8 1.3 Interest expense Zinc contracts (2.6) 0.8 Cost of products sold (1.8) 4.7 (Earnings) / loss before income taxes 0.4 (1.1) Income tax expense/(benefit) $ (1.4) $ 3.6 Net (earnings)/loss Amortization of defined benefit pension items Actuarial loss 1.7 2.2 (2) (0.4) (0.5) Income tax benefit $ 1.3 $ 1.7 Net loss Total reclassifications to earnings $ (0.1) $ 5.3 Net (earnings)/loss (1) Amounts in parentheses indicate credits to Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) This AOCI component is included in the computation of net periodic pension (benefit)/cost (see Note 9, Pension Plans, for further details). |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Other items, net Interest income $ (0.2) $ (0.1) Foreign currency exchange loss 1.3 1.3 Pension benefit other than service costs (1.1) (0.5) Other 0.2 0.1 Total Other items, net $ 0.2 $ 0.8 The components of certain balance sheet accounts are as follows: December 31, 2021 September 30, 2021 Inventories Raw materials and supplies $ 138.8 $ 118.8 Work in process 208.3 206.3 Finished products 408.8 403.2 Total inventories $ 755.9 $ 728.3 Other Current Assets Miscellaneous receivables $ 26.4 $ 21.4 Due from Spectrum 9.1 16.3 Prepaid expenses 110.3 98.3 Value added tax collectible from customers 41.8 28.3 Other 15.3 15.1 Total other current assets $ 202.9 $ 179.4 Property, Plant and Equipment Land $ 14.3 $ 14.4 Buildings 107.0 121.4 Machinery and equipment 838.1 822.9 Capital leases 71.7 62.4 Construction in progress 52.5 52.7 Total gross property 1,083.6 1,073.8 Accumulated depreciation (701.7) (690.9) Total property, plant and equipment, net $ 381.9 $ 382.9 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 31.5 $ 19.5 Accrued trade allowances 75.7 57.3 Accrued salaries, vacations and incentive compensation 31.3 65.4 Accrued interest expense 11.4 16.5 Restructuring reserve 2.2 5.7 Income taxes payable 48.3 30.3 Other 182.2 162.1 Total other current liabilities $ 382.6 $ 356.8 Other Liabilities Pensions and other retirement benefits $ 65.6 $ 66.2 Deferred compensation 24.5 25.1 Mandatory transition tax 16.7 16.7 Other non-current liabilities 66.8 70.4 Total other liabilities $ 173.6 $ 178.4 |
Legal proceedings_contingencies
Legal proceedings/contingencies and other obligations | 3 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal proceedings/contingencies and other obligations | 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. The Company and its affiliates are a party to legal proceedings and claims that arise during the ordinary course of business. The Company reviews our legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims and known potential legal claims which are likely to be asserted, is not reasonably likely to be material to 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, 2021, the Company had approximately $33.2 of purchase obligations under these contracts. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation - The accompanying 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 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 Consolidated (Condensed) 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 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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 quarters ended December 31, 2021 and 2020: For the Quarters Ended December 31, Net Sales by products 2021 2020 Batteries $ 701.7 $ 708.7 Auto Care 106.1 104.7 Lights 38.5 35.2 Total Net Sales $ 846.3 $ 848.6 For the Quarters Ended December 31, 2021 2020 Net Sales by markets North America $ 508.9 $ 516.9 Modern Markets 165.3 174.5 Developing Markets 115.4 108.3 Distributors Markets 56.7 48.9 Total Net Sales $ 846.3 $ 848.6 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table outlines the purchase price allocation: Trade receivables $ 1.3 Inventories 0.1 Goodwill 28.7 Other intangible assets, net 20.5 Operating lease assets 0.5 Accounts payable (0.2) Current operating lease liabilities (0.2) Other current liabilities (0.2) Operating lease liabilities (0.3) Net assets acquired $ 50.2 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The table below identifies the purchased intangible assets of $20.5: Total Weighted Average Useful Lives Proprietary technology $ 19.5 7 Customer relationships 1.0 15 Total Other intangible assets, net $ 20.5 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The pre-tax expense for charges related to the restructuring plans for the quarters ended December 31, 2021 and 2020 are noted in the table below and were reflected in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, 2021 2020 2019 Restructuring Program Costs of products sold Severance and related benefit costs $ (0.1) $ 0.1 Accelerated depreciation & asset write-offs 1.2 1.4 Other exit costs (1) 2.8 5.1 2019 Restructuring Total $ 3.9 $ 6.6 2020 Restructuring Program Costs of products sold Severance and related benefit costs $ 0.2 $ — Other restructuring related costs (2) 1.1 0.8 Selling, general and administrate expense Severance and related benefit costs 0.1 0.3 Other restructuring related costs (2) — 2.9 2020 Restructuring Total $ 1.4 $ 4.0 Total restructuring related expense $ 5.3 $ 10.6 (1) Includes charges primarily related to consulting, relocation, environmental investigatory and mitigation costs, and other facility exit costs. |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity related to the 2019 restructuring program for the quarters ended December 31, 2020 and 2021: Utilized September 30, 2020 Charge to Income Cash Non-Cash December 31, 2020 1 Severance & termination related costs $ 5.3 $ 0.1 $ 3.4 $ — $ 2.0 Accelerated depreciation & asset write-offs — 1.4 — 1.4 — Other exit costs 2.9 5.1 5.3 — 2.7 Total $ 8.2 $ 6.6 $ 8.7 $ 1.4 $ 4.7 September 30, 2021 Charge to Income Cash Non-Cash December 31, 2021 1 Severance & termination related costs $ 1.4 $ (0.1) $ 1.0 $ — $ 0.3 Accelerated depreciation & asset write-offs — 1.2 — 1.2 — Other exit costs 2.2 2.8 4.5 — 0.5 Net gain on sale of fixed assets 0.5 — 0.5 — — Total $ 4.1 $ 3.9 $ 6.0 $ 1.2 $ 0.8 (1) At December 31, 2020 and 2021, the restructuring reserve is recorded on the Consolidated (Condensed) Balance Sheet in Other current liabilities. The following table summarizes the activity related to the 2020 restructuring program for the quarters ended December 31, 2020 and 2021: Utilized September 30, 2020 Charge to Income Cash Non-Cash December 31, 2020 1 Severance & termination related costs $ 0.4 $ 0.3 $ — $ — $ 0.7 Other restructuring related costs 0.8 3.7 3.3 — 1.2 Total $ 1.2 $ 4.0 $ 3.3 $ — $ 1.9 September 30, 2021 Charge to Income Cash Non-Cash December 31, 2021 1 Severance & termination related costs $ 0.9 $ 0.3 $ 0.2 $ — $ 1.0 Other restructuring related costs 0.7 1.1 1.4 — 0.4 Total $ 1.6 $ 1.4 $ 1.6 $ — $ 1.4 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share for the quarters ended December 31, 2021 and 2020: (in millions, except per share data) For the Quarters Ended December 31, Basic net earnings per share 2021 2020 Net earnings $ 60.0 $ 67.1 Mandatory preferred stock dividends (4.0) (4.0) Net earnings attributable to common shareholders $ 56.0 $ 63.1 Weighted average common shares outstanding - Basic 66.8 68.5 Basic net earnings per common share $ 0.84 $ 0.92 Diluted net earnings per share Weighted average common shares outstanding - Basic 66.8 68.5 Dilutive effect of RSE 0.2 0.1 Dilutive effect of performance shares — 0.1 Dilutive effect of stock based deferred compensation plan 0.1 0.1 Dilutive effect of MCPS — 4.7 Weighted average common shares outstanding - Diluted 67.1 73.5 Diluted net earnings per common share $ 0.83 $ 0.91 |
Segments (Tables)
Segments (Tables) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | Segment sales and profitability for the quarters ended December 31, 2021 and 2020 are presented below: For the Quarters Ended December 31, 2021 2020 Net Sales Batteries & Lights $ 740.2 $ 743.9 Auto Care 106.1 104.7 Total net sales $ 846.3 $ 848.6 Segment Profit Batteries & Lights $ 168.4 $ 180.5 Auto Care (0.2) 18.3 Total segment profit 168.2 198.8 General corporate and other expenses (1) (21.7) (24.0) Amortization of intangible assets (15.2) (15.5) Acquisition and integration costs (2) (16.5) (18.3) Acquisition earn out (3) (1.1) — Interest expense (37.0) (47.3) Loss on extinguishment of debt — (5.7) Other items, net - Adjusted (4) (0.2) (0.7) Total earnings before income taxes $ 76.5 $ 87.3 Depreciation and amortization Batteries & Lights $ 12.2 $ 12.0 Auto Care 2.0 2.3 Total segment depreciation and amortization $ 14.2 $ 14.3 Amortization of intangible assets 15.2 15.5 Total depreciation and amortization $ 29.4 $ 29.8 (1) Included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) Acquisition and integration costs were included in the following lines in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, Acquisition and integration costs 2021 2020 Cost of products sold $ 6.0 $ 7.7 Selling, general and administrative expense 9.4 10.4 Research and development expense 1.1 0.1 Other items, net — 0.1 Total acquisition and integration costs $ 16.5 $ 18.3 (3) This represents the earn out achieved through December 31, 2021 under the incentive agreements entered into with the Formulations Acquisition and is recorded in SG&A on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (4) Other items, net for the quarter ended December 31, 2020 on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income included acquisition related costs of $0.1, which have been reclassified for the acquisition and integration costs reconciliation above. | |
Reconciliation of Assets from Segment to Consolidated | Total Assets December 31, 2021 September 30, 2021 Batteries & Lights $ 1,399.4 $ 1,302.7 Auto Care 386.9 367.8 Total segment assets $ 1,786.3 $ 1,670.5 Corporate 414.1 411.9 Goodwill and other intangible assets 2,909.5 2,925.1 Total assets $ 5,109.9 $ 5,007.5 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment as of October 1, 2021 and December 31, 2021. The balances at October 1, 2021 have been recast to align with our new reportable segments: Batteries & Lights Auto Care Total Balance at October 1, 2021 $ 900.3 $ 153.5 $ 1,053.8 Formulations Acquisition working capital finalization — (1.0) (1.0) Cumulative translation adjustment 0.4 0.1 0.5 Balance at December 31, 2021 $ 900.7 $ 152.6 $ 1,053.3 |
Schedule of Finite-Lived Intangible Assets | Total intangible assets at December 31, 2021 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.5 $ (18.8) $ 40.7 Customer relationships 395.2 (93.7) 301.5 Patents 34.5 (14.2) 20.3 Proprietary technology 172.5 (65.0) 107.5 Proprietary formulas 21.9 (3.8) 18.1 Vendor relationships 8.0 (5.5) 2.5 Total Amortizable intangible assets 691.6 (201.0) 490.6 Trademarks and trade names - indefinite lived 1,365.6 — 1,365.6 Total Other intangible assets, net $ 2,057.2 $ (201.0) $ 1,856.2 Total intangible assets at September 30, 2021 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.5 $ (17.8) $ 41.7 Customer relationships 395.0 (87.1) 307.9 Patents 34.5 (13.5) 21.0 Proprietary technology 172.5 (59.6) 112.9 Proprietary formulas 21.9 (3.0) 18.9 Vendor relationships 8.0 (4.8) 3.2 Total Amortizable intangible assets 691.4 (185.8) 505.6 Trademarks and trade names - indefinite lived 1,365.7 — 1,365.7 Total Other intangible assets, net $ 2,057.1 $ (185.8) $ 1,871.3 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The detail of long-term debt was as follows: December 31, 2021 September 30, 2021 Senior Secured Term Loan Facility due 2027 $ 1,191.0 $ 1,194.0 4.750% Senior Notes due 2028 600.0 600.0 4.375% Senior Notes due 2029 800.0 800.0 3.50% Senior Notes due 2029 (Euro Notes of €650.0) 739.1 752.7 Capital lease obligations 43.6 44.3 Total long-term debt, including current maturities $ 3,373.7 $ 3,391.0 Less current portion (14.2) (14.3) Less unamortized debt premium and debt issuance fees (41.2) (43.3) Total long-term debt $ 3,318.3 $ 3,333.4 |
Schedule of Maturities of Long-term Debt | Debt Maturities - Aggregate maturities of long-term debt as of December 31, 2021 are as follows: Long-term debt One year $ 12.0 Two year 12.0 Three year 12.0 Four year 12.0 Five year 12.0 Thereafter 3,270.1 Total long-term debt payments due $ 3,330.1 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The Company’s net periodic pension (benefit)/cost for these plans are as follows: For the Quarters Ended December 31, U.S. International 2021 2020 2021 2020 Service cost $ — $ — $ 0.2 $ 0.2 Interest cost 3.2 3.2 0.5 0.4 Expected return on plan assets (5.7) (5.5) (0.8) (0.8) Amortization of unrecognized net losses 1.6 1.8 0.1 0.4 Net periodic (benefit)/cost $ (0.9) $ (0.5) $ — $ 0.2 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 and September 30, 2021, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the three months ended December 31, 2021 and 2020, respectively: At December 31, 2021 For the Quarters Ended December 31, 2021 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) (Loss)/Gain Recognized in OCI (2) Gain/(Loss) Reclassified From OCI into Income (3)(4) Foreign currency contracts $ 3.7 $ (0.3) $ 1.0 Interest rate swap 17.0 4.5 (1.8) Zinc contracts 5.1 3.0 2.6 Total $ 25.8 $ 7.2 $ 1.8 At September 30, 2021 For the Quarters Ended December 31, 2020 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) (Loss)/Gain Recognized in OCI (2) Loss Reclassified From OCI into Income (3)(4) Foreign currency contracts $ 5.0 $ (7.9) $ (2.6) Interest rate swap 11.7 (4.8) (1.3) Zinc contracts 4.7 4.5 (0.8) Total $ 21.4 $ (8.2) $ (4.7) (1) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities. (2) OCI is defined as other comprehensive income. (3) Gain/(Loss) reclassified to Income was recorded as follows: Foreign currency contracts in Cost of products sold, interest rate contracts in Interest expense, and commodity contracts in Cost of products sold. (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, 2021 and September 30, 2021 and the gains and losses on derivative instruments not classified as cash flow hedges for the three months ended December 31, 2021 and 2020, respectively: At December 31, 2021 For the Quarters Ended December 31, 2021 Estimated Fair Value Asset (1) Gain Recognized in Income (2) Foreign currency contracts $ 1.2 $ 1.9 At September 30, 2021 For the Quarters Ended December 31, 2020 Estimated Fair Value Liability (1) Loss Recognized in Income (2) Foreign currency contracts $ — $ (0.9) (1) All derivative assets and liabilities are presented in Other current assets or Other assets and Other current liabilities or Other liabilities, respectively. (2) Gain / (Loss) recognized in Income was recorded as foreign currency in Other items, net. |
Offsetting Liabilities | Offsetting of derivative assets At December 31, 2021 At September 30, 2021 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 $ 5.7 $ (0.6) $ 5.1 $ 5.8 $ (0.6) $ 5.2 Offsetting of derivative liabilities At December 31, 2021 At September 30, 2021 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 $ (0.8) $ 0.6 $ (0.2) $ (0.8) $ 0.6 $ (0.2) |
Offsetting Assets | Offsetting of derivative assets At December 31, 2021 At September 30, 2021 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 $ 5.7 $ (0.6) $ 5.1 $ 5.8 $ (0.6) $ 5.2 Offsetting of derivative liabilities At December 31, 2021 At September 30, 2021 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 $ (0.8) $ 0.6 $ (0.2) $ (0.8) $ 0.6 $ (0.2) |
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, 2021 and September 30, 2021 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 (Liabilities)/Assets at estimated fair value: December 31, September 30, Deferred compensation $ (28.0) $ (25.1) Derivatives - Foreign Currency contracts 3.7 5.0 Derivatives - Foreign Currency contracts (non-hedge) 1.2 — Derivatives - Interest Rate Swap contracts 17.0 11.7 Derivatives - Zinc contracts 5.1 4.7 Net Liabilities at estimated fair value $ (1.0) $ (3.7) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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 Zinc Contracts Foreign Currency Contracts Interest Rate Contracts Total Balance at September 30, 2021 $ (109.8) $ (134.4) $ 3.6 $ 3.6 $ 6.6 $ (230.4) OCI before reclassifications 12.3 (0.1) 2.3 0.9 3.4 18.8 Reclassifications to earnings — 1.3 (2.0) (0.8) 1.4 (0.1) Balance at December 31, 2021 $ (97.5) $ (133.2) $ 3.9 $ 3.7 $ 11.4 $ (211.7) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of AOCI to earnings: For the Quarters Ended December 31, 2021 2020 Details of AOCI Components Amount Reclassified Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign currency contracts $ (1.0) $ 2.6 Cost of products sold Interest rate contracts 1.8 1.3 Interest expense Zinc contracts (2.6) 0.8 Cost of products sold (1.8) 4.7 (Earnings) / loss before income taxes 0.4 (1.1) Income tax expense/(benefit) $ (1.4) $ 3.6 Net (earnings)/loss Amortization of defined benefit pension items Actuarial loss 1.7 2.2 (2) (0.4) (0.5) Income tax benefit $ 1.3 $ 1.7 Net loss Total reclassifications to earnings $ (0.1) $ 5.3 Net (earnings)/loss (1) Amounts in parentheses indicate credits to Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) This AOCI component is included in the computation of net periodic pension (benefit)/cost (see Note 9, Pension Plans, for further details). |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Other items, net Interest income $ (0.2) $ (0.1) Foreign currency exchange loss 1.3 1.3 Pension benefit other than service costs (1.1) (0.5) Other 0.2 0.1 Total Other items, net $ 0.2 $ 0.8 The components of certain balance sheet accounts are as follows: December 31, 2021 September 30, 2021 Inventories Raw materials and supplies $ 138.8 $ 118.8 Work in process 208.3 206.3 Finished products 408.8 403.2 Total inventories $ 755.9 $ 728.3 Other Current Assets Miscellaneous receivables $ 26.4 $ 21.4 Due from Spectrum 9.1 16.3 Prepaid expenses 110.3 98.3 Value added tax collectible from customers 41.8 28.3 Other 15.3 15.1 Total other current assets $ 202.9 $ 179.4 Property, Plant and Equipment Land $ 14.3 $ 14.4 Buildings 107.0 121.4 Machinery and equipment 838.1 822.9 Capital leases 71.7 62.4 Construction in progress 52.5 52.7 Total gross property 1,083.6 1,073.8 Accumulated depreciation (701.7) (690.9) Total property, plant and equipment, net $ 381.9 $ 382.9 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 31.5 $ 19.5 Accrued trade allowances 75.7 57.3 Accrued salaries, vacations and incentive compensation 31.3 65.4 Accrued interest expense 11.4 16.5 Restructuring reserve 2.2 5.7 Income taxes payable 48.3 30.3 Other 182.2 162.1 Total other current liabilities $ 382.6 $ 356.8 Other Liabilities Pensions and other retirement benefits $ 65.6 $ 66.2 Deferred compensation 24.5 25.1 Mandatory transition tax 16.7 16.7 Other non-current liabilities 66.8 70.4 Total other liabilities $ 173.6 $ 178.4 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Product and Market Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | $ 846.3 | $ 848.6 |
Modern Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 165.3 | 174.5 |
Developing Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 115.4 | 108.3 |
Distributors Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 56.7 | 48.9 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 508.9 | 516.9 |
Batteries | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 701.7 | 708.7 |
Auto Care | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 106.1 | 104.7 |
Lights | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | $ 38.5 | $ 35.2 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) | Dec. 01, 2020 | Oct. 01, 2020 | Feb. 05, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 400,000 | $ 66,400,000 | |||
Acquisition and integration costs | 16,500,000 | 18,300,000 | |||
Other items, net | (200,000) | (700,000) | |||
Selling, general and administrate expense | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration costs | 9,400,000 | 10,400,000 | |||
Research and Development Expense | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration costs | 1,100,000 | 100,000 | |||
Acquisition and integration costs | 1,100,000 | 100,000 | |||
Other Items, Net | |||||
Business Acquisition [Line Items] | |||||
Pre-tax expenses | 100,000 | ||||
Favorable movement in escrowed USD restricted cash | 100,000 | ||||
Acquisition and integration costs | 0 | 100,000 | |||
Costs of products sold | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration costs | 6,000,000 | 7,700,000 | |||
Spectrum Brands Holdings | Selling, general and administrate expense | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration costs | 9,400,000 | 10,400,000 | |||
Formulations Acquisition | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 51,200,000 | ||||
Total potential payments recognized | 4,500,000 | ||||
Initial cash paid including estimated working capital adjustments | 1,000,000 | ||||
Intangible asset acquired | 20,500,000 | ||||
Net assets acquired | 50,200,000 | ||||
Business Combination, Contingent Consideration, Asset | $ 35,000,000 | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 1,100,000 | ||||
FDK Indonesia Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 16,900,000 | ||||
Initial cash paid including estimated working capital adjustments | $ 700,000 | ||||
Acquisition purchase price | $ 18,200,000 | ||||
FDK Indonesia Acquisition, Formulations Acquisition, Battery Acquisition and Auto Care Acquisition | |||||
Business Acquisition [Line Items] | |||||
Acquisition and integration costs | $ 16,500,000 | $ 18,300,000 |
Acquisition - Schedule of Recog
Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 01, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,053.3 | $ 1,053.8 | |
Formulations Acquisition | |||
Business Acquisition [Line Items] | |||
Trade receivables | $ 1.3 | ||
Inventories | 0.1 | ||
Goodwill | 28.7 | ||
Other intangible assets, net | 20.5 | ||
Operating lease assets | 0.5 | ||
Accounts payable | (0.2) | ||
Current operating lease liabilities | (0.2) | ||
Other current liabilities | (0.2) | ||
Operating lease liabilities | (0.3) | ||
Net assets acquired | $ 50.2 |
Acquisition - Schedule of Acqui
Acquisition - Schedule of Acquired Finite-Lived Intangible Assets by Major Class (Details) - Formulations Acquisition $ in Millions | Dec. 01, 2020USD ($) |
Business Acquisition [Line Items] | |
Intangible asset acquired | $ 20.5 |
Proprietary technology | |
Business Acquisition [Line Items] | |
Intangible asset acquired | $ 19.5 |
Weighted Average Useful Lives | 7 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible asset acquired | $ 1 |
Weighted Average Useful Lives | 15 years |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 5.3 | $ 10.6 |
Batteries & Lights | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 5.1 | 10.6 |
Auto Care | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 0.2 | |
2019 Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 3.9 | 6.6 |
2020 Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 1.4 | $ 4 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring related expense | $ 5.3 | $ 10.6 |
2019 Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring related expense | 3.9 | 6.6 |
2019 Restructuring Program | Costs of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | (0.1) | 0.1 |
Accelerated depreciation & asset write-offs | 1.2 | 1.4 |
Other exit costs | 2.8 | 5.1 |
2020 Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring related expense | 1.4 | 4 |
2020 Restructuring Program | Costs of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0.2 | 0 |
Other restructuring related costs | 1.1 | 0.8 |
2020 Restructuring Program | Selling, general and administrate expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0.1 | 0.3 |
Other restructuring related costs | $ 0 | $ 2.9 |
Restructuring, Reserve (Details
Restructuring, Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
2020 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | $ 1.6 | $ 1.2 |
Charge to Income | 1.4 | 4 |
Cash | 1.6 | 3.3 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 1.4 | 1.9 |
2019 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 4.1 | 8.2 |
Charge to Income | 3.9 | 6.6 |
Cash | 6 | 8.7 |
Non-Cash | 1.2 | 1.4 |
Restructuring Reserve, Ending Balance | 0.8 | 4.7 |
Severance & termination related costs | 2020 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0.9 | 0.4 |
Charge to Income | 0.3 | 0.3 |
Cash | 0.2 | 0 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 1 | 0.7 |
Severance & termination related costs | 2019 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 1.4 | 5.3 |
Charge to Income | (0.1) | 0.1 |
Cash | 1 | 3.4 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 0.3 | 2 |
Accelerated depreciation & asset write-offs | 2019 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0 | 0 |
Charge to Income | 1.2 | 1.4 |
Cash | 0 | 0 |
Non-Cash | 1.2 | 1.4 |
Restructuring Reserve, Ending Balance | 0 | 0 |
Other exit costs | 2020 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0.7 | 0.8 |
Charge to Income | 1.1 | 3.7 |
Cash | 1.4 | 3.3 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 0.4 | 1.2 |
Other exit costs | 2019 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 2.2 | 2.9 |
Charge to Income | 2.8 | 5.1 |
Cash | 4.5 | 5.3 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 0.5 | $ 2.7 |
Net gain on sale of fixed assets | 2019 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0.5 | |
Charge to Income | 0 | |
Cash | 0.5 | |
Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | $ 0 |
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, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net earnings | $ 67.1 | |
Mandatory preferred stock dividends | $ (4) | (4) |
Net earnings attributable to common shareholders | $ 56 | $ 63.1 |
Basic average shares outstanding (shares) | 66.8 | 68.5 |
Basic net (loss)/earnings per common share- continuing operations (in dollars per share) | $ 0.84 | $ 0.92 |
Basic net (loss)/earnings per common share (in dollars per share) | $ 0.84 | $ 0.92 |
Weighted average shares of common stock - Diluted (shares) | 67.1 | 73.5 |
Diluted net (loss)/earnings per common share- continuing operations (in dollars per share) | $ 0.83 | $ 0.91 |
Restricted stock equivalents that were anti-dilutive | $ 0.1 | $ 0 |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.8 | 1.5 |
Restricted Stock Equivalents | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.5 | |
Deferred Compensation, Share-based Payments | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0.1 | 0.1 |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0 | 0.1 |
Restricted Stock Equivalents | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0.2 | 0.1 |
MCPS | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0 | 4.7 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 846.3 | $ 848.6 | ||
Segment Profit | 311.6 | 337.9 | ||
Amortization of intangible assets | (15.2) | (15.5) | ||
Loss on extinguishment of debt | 0 | (5.7) | ||
Other items, net | (0.2) | (0.7) | ||
Net (loss)/earnings | 76.5 | $ 60 | 87.3 | $ 67.1 |
Depreciation and amortization | 29.4 | 29.8 | ||
Acquisition and integration costs | 16.5 | 18.3 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment Profit | 168.2 | 198.8 | ||
Depreciation and amortization | 14.2 | 14.3 | ||
Operating Segments | Batteries & Lights | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 740.2 | 743.9 | ||
Segment Profit | 168.4 | 180.5 | ||
Depreciation and amortization | 12.2 | 12 | ||
Operating Segments | Auto Care | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 106.1 | 104.7 | ||
Segment Profit | (0.2) | 18.3 | ||
Depreciation and amortization | 2 | 2.3 | ||
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
General corporate and other expenses | (21.7) | (24) | ||
Amortization of intangible assets | (15.2) | (15.5) | ||
Acquisition and integration costs | 16.5 | 18.3 | ||
Acquisition earn out | (1.1) | 0 | ||
Interest and other financing items | (37) | (47.3) | ||
Depreciation and amortization | 15.2 | 15.5 | ||
Selling, general and administrate expense | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration costs | 9.4 | 10.4 | ||
Research and Development Expense | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration costs | 1.1 | 0.1 | ||
Acquisition and integration costs | $ 1.1 | $ 0.1 |
Segments - Schedule of Acquisit
Segments - Schedule of Acquisition and Integration Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Acquisition and integration costs | $ 16.5 | $ 18.3 |
Other items, net | (0.2) | (0.7) |
Cost of products sold | ||
Segment Reporting Information [Line Items] | ||
Acquisition and integration costs | 6 | 7.7 |
Selling, general and administrative expense | ||
Segment Reporting Information [Line Items] | ||
Acquisition and integration costs | 9.4 | 10.4 |
Research and development expense | ||
Segment Reporting Information [Line Items] | ||
Acquisition and integration costs | 1.1 | 0.1 |
Other items, net | ||
Segment Reporting Information [Line Items] | ||
Acquisition and integration costs | $ 0 | 0.1 |
Pre-tax expenses | $ 0.1 |
Segments - Reconciliation of As
Segments - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill and other intangible assets | $ 2,909.5 | $ 2,925.1 |
Total assets | 5,109.9 | 5,007.5 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 1,786.3 | 1,670.5 |
Operating Segments | Batteries & Lights | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 1,399.4 | 1,302.7 |
Operating Segments | Auto Care | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 386.9 | 367.8 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | $ 414.1 | $ 411.9 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,053.8 |
Cumulative translation adjustment | 0.5 |
Ending balance | 1,053.3 |
Batteries & Lights | |
Goodwill [Roll Forward] | |
Beginning balance | 900.3 |
Cumulative translation adjustment | 0.4 |
Ending balance | 900.7 |
Auto Care | |
Goodwill [Roll Forward] | |
Beginning balance | 153.5 |
Cumulative translation adjustment | 0.1 |
Ending balance | 152.6 |
Formulations Acquisition | |
Goodwill [Roll Forward] | |
Goodwill acquired | (1) |
Formulations Acquisition | Batteries & Lights | |
Goodwill [Roll Forward] | |
Goodwill acquired | 0 |
Formulations Acquisition | Auto Care | |
Goodwill [Roll Forward] | |
Goodwill acquired | $ (1) |
Goodwill and intangible asset_3
Goodwill and intangible assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Goodwill [Line Items] | ||
Indefinite-lived intangible assets | $ 1,365.6 | $ 1,365.7 |
Cumulative translation adjustment | $ 0.5 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cumulative translation adjustment | $ 0.5 | |
Gross Carrying Amount | 691.6 | $ 691.4 |
Trademarks and trade names - indefinite lived | 1,365.6 | 1,365.7 |
Total Other intangible assets, net | 2,057.2 | 2,057.1 |
Accumulated Amortization | (201) | (185.8) |
Net Carrying Amount | 490.6 | 505.6 |
Total Other intangible assets, net | 1,856.2 | 1,871.3 |
Trademarks and trade names - indefinite lived | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trademarks and trade names - indefinite lived | 1,365.7 | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 59.5 | 59.5 |
Accumulated Amortization | (18.8) | (17.8) |
Net Carrying Amount | 40.7 | 41.7 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 395.2 | 395 |
Accumulated Amortization | (93.7) | (87.1) |
Net Carrying Amount | 301.5 | 307.9 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34.5 | 34.5 |
Accumulated Amortization | (14.2) | (13.5) |
Net Carrying Amount | 20.3 | 21 |
Proprietary technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 172.5 | 172.5 |
Accumulated Amortization | (65) | (59.6) |
Net Carrying Amount | 107.5 | 112.9 |
Proprietary Formula | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21.9 | 21.9 |
Accumulated Amortization | (3.8) | (3) |
Net Carrying Amount | 18.1 | 18.9 |
Vendor Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8 | 8 |
Accumulated Amortization | (5.5) | (4.8) |
Net Carrying Amount | $ 2.5 | $ 3.2 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) € in Millions | Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Oct. 16, 2020 | Dec. 27, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Capital lease obligations | $ 43,600,000 | $ 44,300,000 | |||
Long-term Debt and Lease Obligation | 3,373,700,000 | 3,391,000,000 | |||
Less current portion | (14,200,000) | (14,300,000) | |||
Less unamortized debt premium and debt issuance fees | (41,200,000) | (43,300,000) | |||
Total long-term debt | 3,318,300,000 | 3,333,400,000 | |||
Secured Debt | Senior Secured Term Loan A Facility due 2022 | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 550,000,000 | ||||
Secured Debt | Senior Secured Term Loan Facility due 2027 | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | $ 1,191,000,000 | 1,194,000,000 | |||
Stated interest rate of debt | 0.25% | 0.25% | |||
Face amount of debt | $ 3,000,000 | ||||
Senior Notes | 6.375% Senior Notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate of debt | 3.375% | 3.375% | 6.375% | ||
Senior Notes | 4.625% Senior Notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | $ 739,100,000 | 752,700,000 | |||
Stated interest rate of debt | 4.625% | 4.625% | |||
Face amount of debt | € | € 6.5 | ||||
Senior Notes | 7.750% Senior Notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate of debt | 7.75% | 7.75% | |||
Senior Notes | Senior Notes, 4.375%, Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | $ 800,000,000 | $ 800,000,000 | |||
Stated interest rate of debt | 4.375% | 4.375% | 4.375% | ||
Face amount of debt | $ 800,000,000 | ||||
Senior Notes | Senior Notes, 4.750%, Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt, including current maturities | $ 600,000,000 | $ 600,000,000 | |||
Stated interest rate of debt | 4.75% | 4.75% |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Millions | Dec. 22, 2020USD ($) | Oct. 16, 2020USD ($) | Dec. 27, 2019USD ($) | Mar. 13, 2017 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 22, 2024USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jan. 31, 2021USD ($) | Jan. 22, 2021USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Premiums paid on extinguishment of debt | $ 0 | $ 55,900,000 | ||||||||||
Write-off of deferred financing fees | $ 5,700,000 | |||||||||||
Maturities of long term debt in five years | $ 12,000,000 | |||||||||||
Short term borrowing interest rate | 2.50% | 2.50% | ||||||||||
Payments of Debt Issuance Costs | 2,500,000 | 12,500,000 | ||||||||||
Loss on extinguishment of debt | $ 0 | $ 5,700,000 | ||||||||||
Notes payable | $ 183,400,000 | $ 105,000,000 | ||||||||||
Scenario, Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional value | $ 100,000,000 | |||||||||||
Foreign Affiliate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding letters of credit | 900,000 | |||||||||||
Interest Rate Contracts | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional value | $ 550,000,000 | 550,000,000 | $ 700,000,000 | |||||||||
Senior Secured Term Loan A Facility due 2022 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 550,000,000 | |||||||||||
Senior Secured Term Loan Facility due 2027 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 3,000,000 | |||||||||||
Stated interest rate of debt | 0.25% | 0.25% | ||||||||||
Long-term debt | $ 1,191,000,000 | 1,194,000,000 | ||||||||||
6.375% Senior Notes due 2026 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate of debt | 6.375% | 3.375% | 3.375% | |||||||||
Redemption amount | $ 750,000,000 | |||||||||||
Premiums paid on extinguishment of debt | $ 55,900,000 | |||||||||||
Senior Notes, 4.750%, Due 2028 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate of debt | 4.75% | 4.75% | ||||||||||
Long-term debt | $ 600,000,000 | 600,000,000 | ||||||||||
4.625% Senior Notes due 2026 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | € | € 6.5 | |||||||||||
Stated interest rate of debt | 4.625% | 4.625% | ||||||||||
Long-term debt | $ 739,100,000 | 752,700,000 | ||||||||||
Senior Secured Term Loan B Facility due 2027 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 550,000,000 | $ 1,200,000 | ||||||||||
Senior Notes, 4.375%, Due 2029 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount of debt | $ 800,000,000 | |||||||||||
Stated interest rate of debt | 4.375% | 4.375% | 4.375% | |||||||||
Long-term debt | $ 800,000,000 | $ 800,000,000 | ||||||||||
7.750% Senior Notes due 2027 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate of debt | 7.75% | 7.75% | ||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding letters of credit | $ 182,500,000 | |||||||||||
Amount available remaining | 309,500,000 | |||||||||||
Notes payable | 182,500,000 | |||||||||||
Revolving Credit Facility | 2020 Revolving Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt term | 5 years | |||||||||||
Credit facility | $ 400,000,000 | 500,000,000 | ||||||||||
Letter of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding letters of credit | $ 8,000,000 | |||||||||||
LIBOR | Interest Rate Contracts | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fixed interest rate | 0.95% | 0.95% | 0.95% | |||||||||
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% | |||||||||||
Estimate of Fair Value | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Fair Value Amount | $ 2,115,900,000 | 2,156,100,000 | ||||||||||
Reported Value Measurement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Fair Value Amount | $ 2,139,100,000 | $ 2,152,700,000 |
Debt - Long-term Debt and Capit
Debt - Long-term Debt and Capital Lease Maturities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
Maturities of long term debt in one year | $ 12 |
Maturities of long term debt in two years | 12 |
Maturities of long term debt in three years | 12 |
Maturities of long term debt in four years | 12 |
Maturities of long term debt in five years | 12 |
Maturities of long term debt thereafter | 3,270.1 |
Total long-term debt payments due | $ 3,330.1 |
Pension Plans - Schedule of Net
Pension Plans - Schedule of Net Benefit Costs (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 3.2 | 3.2 |
Expected return on plan assets | (5.7) | (5.5) |
Amortization of unrecognized net losses | 1.6 | 1.8 |
Net periodic (benefit)/cost | (0.9) | (0.5) |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.2 | 0.2 |
Interest cost | 0.5 | 0.4 |
Expected return on plan assets | (0.8) | (0.8) |
Amortization of unrecognized net losses | 0.1 | 0.4 |
Net periodic (benefit)/cost | $ 0 | $ 0.2 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2022 | Nov. 18, 2021 | Aug. 02, 2021 | May 03, 2021 | Nov. 12, 2020 | Oct. 15, 2020 | Feb. 07, 2022 | Jan. 31, 2019 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 |
Class of Stock [Line Items] | |||||||||||||||
Common stock purchased | $ 0 | $ 21,300 | |||||||||||||
Dividends to common shareholders | $ 20,100 | $ 20,100 | $ 21,000 | ||||||||||||
Dividend declared (in dollars per share) | $ (0.30) | $ (0.30) | $ (0.30) | $ (0.30) | $ (0.30) | ||||||||||
Dividends paid on common stock | $ 20,500 | $ 22,700 | |||||||||||||
Preferred stock dividend declared (in dollars per share) | $ 1.875 | $ 1.875 | $ 1.88 | $ 1.875 | $ 1.83 | $ 1.875 | |||||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | $ 4,000 | $ 4,000 | |||||||||||||
Accelerated Share Repurchase, Volume-Weighted Average Stock Prices | $ 38.30 | ||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.50% | ||||||||||||||
Accelerated Share Repurchase Program | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock purchased (in shares) | 500,000 | 1,500,000 | 1,500,000 | ||||||||||||
Treasury Stock, Value | $ 60,000 | $ 60,000 | |||||||||||||
Subsequent Event | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Dividends, Preferred Stock, Stock | $ 4,000 | ||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2.1739 | ||||||||||||||
Subsequent Event | Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Conversion of Stock, Amount Issued | $ 4,700 | ||||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized to be acquired (shares) | 7,500,000 | ||||||||||||||
Common stock purchased (in shares) | 451,000 | 500,000 | |||||||||||||
Common Stock | Share Repurchase Program | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares authorized to be acquired (shares) | 75,000,000 | 75,000,000 | |||||||||||||
Retained Earnings | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Dividends to common shareholders | $ 20,100 | $ 21,000 | |||||||||||||
Additional Paid-in Capital | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock purchased | $ (15,000) | $ (15,000) |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021USD ($)derivative_instrumentContract | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Jan. 22, 2021USD ($) | Dec. 22, 2020USD ($) | |
Derivative [Line Items] | ||||||
Unrecognized pre-tax loss | $ 17,000,000 | $ (11,700,000) | ||||
Portion or pre-tax gain included in AOCI expected to be included in earnings | 3,800,000 | |||||
Interest Rate Contracts | ||||||
Derivative [Line Items] | ||||||
Notional value | $ 550,000,000 | $ 700,000,000 | $ 550,000,000 | |||
Notional value decrease each year | $ 100,000,000 | |||||
Interest Rate Contracts | LIBOR | ||||||
Derivative [Line Items] | ||||||
Fixed interest rate | 0.95% | 0.95% | ||||
Line of Credit | Senior Secured Term Loan B Facility, net of discount, due 2022 | ||||||
Derivative [Line Items] | ||||||
Face amount of debt | $ 1,373,500,000 | |||||
Estimate of Fair Value | ||||||
Derivative [Line Items] | ||||||
Fair market value of fixed rate long-term debt | 2,115,900,000 | $ 2,156,100,000 | ||||
Reported Value Measurement | ||||||
Derivative [Line Items] | ||||||
Fair market value of fixed rate long-term debt | 2,139,100,000 | 2,152,700,000 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Derivatives - Foreign Currency contracts | 25,800,000 | 21,400,000 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | Zinc contracts | ||||||
Derivative [Line Items] | ||||||
Derivatives - Foreign Currency contracts | $ 5,100,000 | 4,700,000 | ||||
Derivative, Number of Open Contracts | Contract | 3 | |||||
Notional value | $ 7,000,000 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | ||||||
Derivative [Line Items] | ||||||
Derivatives - Foreign Currency contracts | 3,700,000 | 5,000,000 | ||||
Notional value | $ 180,000,000 | |||||
Number of open contracts | derivative_instrument | 62 | |||||
Not Designated as Hedging Instrument | Foreign currency contracts | ||||||
Derivative [Line Items] | ||||||
Derivatives - Foreign Currency contracts | $ 1,200,000 | $ 0 | ||||
Gain (Loss) Recognized in Income | 1,900,000 | $ (900,000) | ||||
Not Designated as Hedging Instrument | Foreign currency contracts | ||||||
Derivative [Line Items] | ||||||
Notional value | $ 129,000,000 | |||||
Number of open contracts | derivative_instrument | 10 |
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, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | $ 25.8 | $ 21.4 | |
(Loss)/Gain Recognized in OCI | 7.2 | $ (8.2) | |
Loss Reclassified From OCI into Income(Effective Portion) | 1.8 | (4.7) | |
Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | 3.7 | 5 | |
(Loss)/Gain Recognized in OCI | (0.3) | (7.9) | |
Loss Reclassified From OCI into Income(Effective Portion) | 1 | (2.6) | |
Interest rate swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | 17 | 11.7 | |
(Loss)/Gain Recognized in OCI | 4.5 | (4.8) | |
Loss Reclassified From OCI into Income(Effective Portion) | (1.8) | (1.3) | |
Zinc contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | 5.1 | $ 4.7 | |
(Loss)/Gain Recognized in OCI | 3 | 4.5 | |
Loss Reclassified From OCI into Income(Effective Portion) | $ 2.6 | $ (0.8) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Derivative Instruments, Gain (Loss) (Details) - Not Designated as Hedging Instrument - Foreign currency contracts - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Liability | $ 1.2 | $ 0 | |
Gain (Loss) Recognized in Income | $ 1.9 | $ (0.9) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Offsetting Assets and Liabilities (Details) - Foreign currency contracts - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | $ 5.7 | $ 5.8 |
Gross amounts offset in the Balance Sheet | (0.6) | (0.6) |
Net amounts of assets presented in the Balance Sheet | 5.1 | 5.2 |
Gross amounts of recognized liabilities | (0.8) | (0.8) |
Gross amounts offset in the Balance Sheet | (0.6) | (0.6) |
Net amounts of liabilities presented in the Balance Sheet | $ (0.2) | $ (0.2) |
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, 2021 | Sep. 30, 2021 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | $ 28 | $ (25.1) |
Net Liabilities at estimated fair value | (1) | (3.7) |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 1.2 | 0 |
Foreign currency contracts | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 3.7 | 5 |
Foreign currency contracts | Level 2 | Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 1.2 | 0 |
Derivatives - Interest Rate Swap contracts | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 17 | 11.7 |
Commodity contract | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 5.1 | 4.7 |
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 | $ 2,115.9 | $ 2,156.1 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2021 | $ (230.4) |
OCI before reclassifications | 18.8 |
Reclassifications to earnings | (0.1) |
Balance at December 31, 2021 | (211.7) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2021 | (109.8) |
OCI before reclassifications | 12.3 |
Reclassifications to earnings | 0 |
Balance at December 31, 2021 | (97.5) |
Pension Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2021 | (134.4) |
OCI before reclassifications | (0.1) |
Reclassifications to earnings | 1.3 |
Balance at December 31, 2021 | (133.2) |
Foreign Currency Contracts | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2021 | 3.6 |
OCI before reclassifications | 0.9 |
Reclassifications to earnings | (0.8) |
Balance at December 31, 2021 | 3.7 |
Zinc contracts | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2021 | 3.6 |
OCI before reclassifications | 2.3 |
Reclassifications to earnings | (2) |
Balance at December 31, 2021 | 3.9 |
Interest Rate Contracts | Foreign Currency Contracts | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2021 | 6.6 |
OCI before reclassifications | 3.4 |
Reclassifications to earnings | 1.4 |
Balance at December 31, 2021 | $ 11.4 |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total Other items, net | $ (0.2) | $ (0.8) |
Interest expense | 37 | 47.3 |
Cost of products sold | 534.7 | 510.7 |
Income tax expense/(benefit) | (16.5) | (20.2) |
Net earnings | 60 | 67.1 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | (0.1) | 5.3 |
Gains and losses on cash flow hedges | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total Other items, net | (1) | 2.6 |
Interest expense | 1.8 | 1.3 |
Cost of products sold | (2.6) | 0.8 |
(Earnings) / loss before income taxes | (1.8) | 4.7 |
Income tax expense/(benefit) | (0.4) | (1.1) |
Net earnings | (1.4) | 3.6 |
Amortization of defined benefit pension items | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial loss | (1.7) | 2.2 |
Income tax expense/(benefit) | 0.4 | (0.5) |
Net earnings | $ 1.3 | $ 1.7 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information, Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Income Statement Related Disclosures [Abstract] | |||
Interest income | $ (0.2) | $ (0.1) | |
Foreign currency exchange loss | 1.3 | 1.3 | |
Pension benefit other than service costs | (1.1) | (0.5) | |
Other | 0.2 | 0.1 | |
Total Other items, net | 0.2 | $ 0.8 | |
Inventories | |||
Raw materials and supplies | 138.8 | $ 118.8 | |
Work in process | 208.3 | 206.3 | |
Finished products | 408.8 | 403.2 | |
Total inventories | 755.9 | 728.3 | |
Other Current Assets | |||
Miscellaneous receivables | 26.4 | 21.4 | |
Due from Spectrum | 9.1 | 16.3 | |
Prepaid expenses | 110.3 | 98.3 | |
Value added tax collectible from customers | 41.8 | 28.3 | |
Other | 15.3 | 15.1 | |
Total other current assets | 202.9 | 179.4 | |
Property, Plant and Equipment | |||
Land | 14.3 | 14.4 | |
Buildings | 107 | 121.4 | |
Machinery and equipment | 838.1 | 822.9 | |
Capital leases | 71.7 | 62.4 | |
Construction in progress | 52.5 | 52.7 | |
Total gross property | 1,083.6 | 1,073.8 | |
Accumulated depreciation | (701.7) | (690.9) | |
Total property, plant and equipment, net | 381.9 | 382.9 | |
Other Current Liabilities | |||
Accrued advertising, sales promotion and allowances | 31.5 | 19.5 | |
Accrued trade allowances | 75.7 | 57.3 | |
Accrued salaries, vacations and incentive compensation | 31.3 | 65.4 | |
Accrued interest expense | 11.4 | 16.5 | |
Restructuring reserve | 2.2 | 5.7 | |
Income taxes payable | 48.3 | 30.3 | |
Other | 182.2 | 162.1 | |
Total other current liabilities | 382.6 | 356.8 | |
Other Liabilities | |||
Pensions and other retirement benefits | 65.6 | 66.2 | |
Deferred compensation | 24.5 | 25.1 | |
Mandatory transition tax | 16.7 | 16.7 | |
Other non-current liabilities | 66.8 | 70.4 | |
Total other liabilities | $ 173.6 | $ 178.4 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Selling, general and administrative expense | $ 122.1 | $ 124.1 |
Cost of products sold | 534.7 | 510.7 |
Total Other items, net | (0.2) | (0.8) |
Net earnings | $ 60 | $ 67.1 |
Legal proceedings_contingenci_2
Legal proceedings/contingencies and other obligations (Details) $ in Millions | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
Purchase obligations | $ 33.2 |
Uncategorized Items - enr-20211
Label | Element | Value |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | $ 18,700,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 2,400,000 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | (2,200,000) |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | (6,700,000) |
Dividends, Preferred Stock | us-gaap_DividendsPreferredStock | 4,000,000 |
Dividends, Preferred Stock | us-gaap_DividendsPreferredStock | 4,000,000 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | $ 4,000,000 |
Common Stock [Member] | ||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross | 133,000 |
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross | 314,000 |
Additional Paid-in Capital [Member] | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | $ (20,600,000) |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | (8,300,000) |
Deferred Compensation, Plan Modification, Amount Reclassified From Liability To Equity | enr_DeferredCompensationPlanModificationAmountReclassifiedFromLiabilityToEquity | (1,000,000) |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 4,000,000 |
Share-based Payment Arrangement, Noncash Expense | us-gaap_ShareBasedCompensation | 1,300,000 |
Treasury Stock [Member] | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | 14,800,000 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | 6,100,000 |
Deferred Compensation, Plan Modification, Amount Reclassified From Liability To Equity | enr_DeferredCompensationPlanModificationAmountReclassifiedFromLiabilityToEquity | 1,000,000 |
Treasury Stock, Value, Acquired, Cost Method | us-gaap_TreasuryStockValueAcquiredCostMethod | 15,000,000 |
Treasury Stock, Value, Acquired, Cost Method | us-gaap_TreasuryStockValueAcquiredCostMethod | 21,300,000 |
AOCI Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 18,700,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 2,400,000 |
Retained Earnings [Member] | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | 0 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation | (900,000) |
Income (Loss) Attributable to Parent, before Tax | us-gaap_IncomeLossAttributableToParent | 67,100,000 |
Income (Loss) Attributable to Parent, before Tax | us-gaap_IncomeLossAttributableToParent | 60,000,000 |
Dividends, Preferred Stock | us-gaap_DividendsPreferredStock | 4,000,000 |
Dividends, Preferred Stock | us-gaap_DividendsPreferredStock | $ 4,000,000 |
Common Stock [Member] | Common Stock [Member] | ||
Deferred Compensation, Plan Modification, Shares Reclassified | enr_DeferredCompensationPlanModificationSharesReclassified | 22,000 |